<enum>I</enum><header display-inline="yes-display-inline">Commodity programs</header> <subtitle commented="no" id="id92182E68B5924F9CBA5CBDB9070AB978" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">Repeals and reforms</header> <section commented="no" display-inline="no-display-inline" id="id080E95CB72634AB4B1042D257E75C02D" section-type="subsequent-section"><enum>1101.</enum><header display-inline="yes-display-inline">Repeal of direct payments</header> <subsection commented="no" display-inline="no-display-inline" id="id8EC40D225CA348B8908C930AE432BC30"><enum>(a)</enum><header display-inline="yes-display-inline">Repeal</header><text display-inline="yes-display-inline">Sections 1103 and 1303 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 8753) are repealed.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="ID3575592f98634fb09f9466485381adf2"><enum>(b)</enum><header display-inline="yes-display-inline">Continued application for 2012 crop year</header><text display-inline="yes-display-inline">Sections 1103 and 1303 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 8753), as in effect on the day before the date of enactment of this Act, shall continue to apply through the 2012 crop year with respect to all covered commodities (as defined in section 1001 of that Act (7 U.S.C. 8702)) (except pulse crops) and peanuts on a farm.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id35EDB87755D2490785422B2452022836" section-type="subsequent-section"><enum>1102.</enum><header display-inline="yes-display-inline">Repeal of counter-cyclical payments</header> <subsection commented="no" display-inline="no-display-inline" id="idEC639812ABB246F69F6E23AB76BA257C"><enum>(a)</enum><header display-inline="yes-display-inline">Repeal</header><text display-inline="yes-display-inline">Sections 1104 and 1304 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8714, 8754) are repealed.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id87E9857EF8F449038131647CCCDC3114"><enum>(b)</enum><header display-inline="yes-display-inline">Continued application for 2012 crop year</header><text display-inline="yes-display-inline">Sections 1104 and 1304 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8714, 8754), as in effect on the day before the date of enactment of this Act, shall continue to apply through the 2012 crop year with respect to all covered commodities (as defined in section 1001 of that Act (7 U.S.C. 8702)) and peanuts on a farm.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="ID2c61e0cdd1d14aaa831f3d0fe3218081" section-type="subsequent-section"><enum>1103.</enum><header display-inline="yes-display-inline">Repeal of average crop revenue election program</header> <subsection commented="no" display-inline="no-display-inline" id="ID7f88baef13a143d08231ea989921aeae"><enum>(a)</enum><header display-inline="yes-display-inline">Repeal</header><text display-inline="yes-display-inline">Section 1105 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8715) is repealed.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="IDc0da1ebbf1964fcd9c78acbfc839391d"><enum>(b)</enum><header display-inline="yes-display-inline">Continued application for 2012 crop year</header><text display-inline="yes-display-inline">Section 1105 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8715), as in effect on the day before the date of enactment of this Act, shall continue to apply through the 2012 crop year with respect to all covered commodities (as defined in section 1001 of that Act (7 U.S.C. 8702)) and peanuts on a farm for which the irrevocable election under section 1105 of that Act is made before the date of enactment of this Act.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="IDf5a2b7084f3a4d818a0ee02e5abe4df1" section-type="subsequent-section"><enum>1104.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">In this subtitle, subtitle B, and subtitle F:</text> <paragraph commented="no" display-inline="no-display-inline" id="IDfa5143b32fc646d59f6e4dc9ce10f243"><enum>(1)</enum><header display-inline="yes-display-inline">Actual crop revenue</header><text display-inline="yes-display-inline">The term <term>actual crop revenue</term>, with respect to a covered commodity for a crop year, means the amount determined by the Secretary under section 1105(c)(3).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id374e818a843a482f83c57520850fd348"><enum>(2)</enum><header display-inline="yes-display-inline">Agriculture risk coverage guarantee</header><text display-inline="yes-display-inline">The term <term>agriculture risk coverage guarantee</term>, with respect to a covered commodity for a crop year, means the amount determined by the Secretary under section 1105(c)(4).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD45864179214491AA1C8CC6272BD324D"><enum>(3)</enum><header display-inline="yes-display-inline">Agriculture risk coverage payment</header><text display-inline="yes-display-inline">The term <term>agriculture risk coverage payment</term> means a payment under section 1105(c).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id342995EAD1AA406F8A762D65CD809E22"><enum>(4)</enum><header display-inline="yes-display-inline">Average individual yield</header><text display-inline="yes-display-inline">The term <term>average individual yield</term> means the yield reported by a producer for purposes of subtitle A of the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), to the maximum extent practicable.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id387EC7E0FC30431DA6B934D5CAD3275A"><enum>(5)</enum><header display-inline="yes-display-inline">County coverage</header><text display-inline="yes-display-inline">For the purposes of agriculture risk coverage under section 1105, the term <term>county coverage</term> means coverage determined using the total quantity of all acreage in a county of the covered commodity that is planted or prevented from being planted for harvest by a producer with the yield determined by the average county yield described in subsection (c) of that section.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2735f4db5a8e4f5da7c93520dade965b"><enum>(6)</enum><header display-inline="yes-display-inline">Covered commodity</header> <subparagraph commented="no" display-inline="no-display-inline" id="idFF8BF5F8DA1A45B3A61182BD4976F6C2"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>covered commodity</term> means wheat, corn, grain sorghum, barley, oats, long grain rice, medium grain rice, pulse crops, soybeans, other oilseeds, and peanuts.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id39bff4f148334a8db804ce130323f5ed"><enum>(B)</enum><header display-inline="yes-display-inline">Popcorn</header><text display-inline="yes-display-inline">The Secretary—</text> <clause commented="no" display-inline="no-display-inline" id="id6e6b09511c954bca810f24baacdd4fcc"><enum>(i)</enum><text display-inline="yes-display-inline">shall study the feasibility of including popcorn as a covered commodity by 2014; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="idfce45844f42446aba65a2eb738346eff"><enum>(ii)</enum><text display-inline="yes-display-inline">if the Secretary determines it to be feasible, shall designate popcorn as a covered commodity.</text> </clause></subparagraph></paragraph><paragraph id="id6679896b85684f79835247112e2404ba"><enum>(7)</enum><header>Eligible acres</header> <subparagraph id="idbaf12b6c3fe1443d8958d6e2868c5944"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraphs (B) through (D), the term <term>eligible acres</term> means all acres planted or prevented from being planted to all covered commodities on a farm in any crop year.</text> </subparagraph><subparagraph id="id2035d37b90e7451cb2791397f18f5a70"><enum>(B)</enum><header>Maximum</header><text>Except as provided in (C), the total quantity of eligible acres on a farm determined under subparagraph (A) shall not exceed the average total acres planted or prevented from being planted to covered commodities and upland cotton on the farm for the 2009 through 2012 crop years, as determined by the Secretary.</text> </subparagraph><subparagraph id="ide5896af3f47043e8815aa031dbca432a"><enum>(C)</enum><header>Adjustment</header><text>The Secretary shall provide for an adjustment, as appropriate, in the eligible acres for covered commodities for a farm if any of the following circumstances occurs:</text> <clause id="idc95ed13c709d4f1cafda0aa9ad74248e"><enum>(i)</enum><text>If a conservation reserve contract for a farm in a county entered into under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) expires or is voluntarily terminated or cropland is released from coverage under a conservation reserve contract, the Secretary shall provide for an adjustment, as appropriate, in the eligible acres for the farm to a total quantity that is the higher of—</text> <subclause id="id25915cfba99a4c96b23330da6178f385"><enum>(I)</enum><text>the total base acreage for the farm, less any upland cotton base acreage, that was suspended during the conservation reserve contract; or</text> </subclause><subclause id="idcd873151e4cb4894ae01387c629168b9"><enum>(II)</enum><text>the product obtained by multiplying—</text> <item id="id50693aefc3f04dde8a147a5631cdc170"><enum>(aa)</enum><text>the average proportion that—</text> <subitem id="id146526c95d5047c6aba4e70922cacfb6"><enum>(AA)</enum><text>the total number of acres planted to covered commodities and upland cotton in the county for crop years 2009 through 2012; bears to</text> </subitem><subitem id="id02c15a8d49be48668439e08861df777c"><enum>(BB)</enum><text>the total number of all acres of covered commodities, grassland, and upland cotton acres in the county for the same crop years; by</text> </subitem></item><item id="idcd632b2252a6443a9e26cb219b9c5a31"><enum>(bb)</enum><text>the total acres for which coverage has expired, voluntarily terminated, or been released under the conservation reserve contract.</text> </item></subclause></clause><clause id="idf7e22456806f45d0af3913df4d73d787"><enum>(ii)</enum><text>The producer has eligible oilseed acreage as the result of the Secretary designating additional oilseeds, which shall be determined in the same manner as eligible oilseed acreage under section 1101(a)(1)(D) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8711(a)(1)(D)).</text> </clause><clause id="id9a4ff7a3b1fe4eba90a87121f8087410"><enum>(iii)</enum><text>The producer has any acreage not cropped during the 2009 through 2012 crop years, but placed into an established rotation practice for the purposes of enriching land or conserving moisture for subsequent crop years, including summer fallow, as determined by the Secretary.</text> </clause></subparagraph><subparagraph id="id287bb65e710e4d1ea3ea049dc738b2d4"><enum>(D)</enum><header>Exclusion</header><text>The term <term>eligible acres</term> does not include any crop subsequently planted during the same crop year on the same land for which the first crop is eligible for payments under this subtitle, unless the crop was planted in an area approved for double cropping, as determined by the Secretary.</text> </subparagraph></paragraph><paragraph id="IDbb55f70e5b4d445aaf962bb83bc3085f"><enum>(8)</enum><header>Extra long staple cotton</header><text>The term <term>extra long staple cotton</term> means cotton that—</text> <subparagraph id="IDe690f9c571104927a4a1397dfb5e1c48"><enum>(A)</enum><text>is produced from pure strain varieties of the Barbadense species or any hybrid of the species, or other similar types of extra long staple cotton, designated by the Secretary, having characteristics needed for various end uses for which United States upland cotton is not suitable and grown in irrigated cotton-growing regions of the United States designated by the Secretary or other areas designated by the Secretary as suitable for the production of the varieties or types; and</text> </subparagraph><subparagraph id="IDb7fcb58a6edf4d8bbad4c815504ea4ba"><enum>(B)</enum><text>is ginned on a roller-type gin or, if authorized by the Secretary, ginned on another type gin for experimental purposes.</text> </subparagraph></paragraph><paragraph id="id9a98ad7b2c2e4d5ea212fcfee875d0fa"><enum>(9)</enum><header>Individual coverage</header><text>For purposes of agriculture risk coverage under section 1105, the term <term>individual coverage</term> means coverage determined using the total quantity of all acreage in a county of the covered commodity that is planted or prevented from being planted for harvest by a producer with the yield determined by the average individual yield of the producer described in subsection (c) of that section.</text> </paragraph><paragraph id="IDde704324827a4f98a687f592f5217d92"><enum>(10)</enum><header>Medium grain rice</header><text>The term <term>medium grain rice</term> includes short grain rice.</text> </paragraph><paragraph id="ID421485d5c9d34f4bbc8e6649d65b75af"><enum>(11)</enum><header>Midseason price</header><text>The term <term>midseason price</term> means the applicable national average market price received by producers for the first 5 months of the applicable marketing year, as determined by the Secretary.</text> </paragraph><paragraph id="IDedeec68a556343b492894af4b0c32bf2"><enum>(12)</enum><header>Other oilseed</header><text>The term <term>other oilseed</term> means a crop of sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe, sesame seed, or any oilseed designated by the Secretary.</text> </paragraph><paragraph id="ID9265f138326744a5a5c43f7a05adb822"><enum>(13)</enum><header>Producer</header> <subparagraph id="ID9a4e8c52d6234332a573bfb0f3d4dcbd"><enum>(A)</enum><header>In general</header><text>The term <term>producer</term> means an owner, operator, landlord, tenant, or sharecropper that shares in the risk of producing a crop and is entitled to share in the crop available for marketing from the farm, or would have shared had the crop been produced.</text> </subparagraph><subparagraph id="ID9789c79f8dd24a9fac0658a261f03b45"><enum>(B)</enum><header>Hybrid seed</header><text>In determining whether a grower of hybrid seed is a producer, the Secretary shall—</text> <clause id="IDe014f47124484494b0ab0d9dd0dde1b2"><enum>(i)</enum><text>not take into consideration the existence of a hybrid seed contract; and</text> </clause><clause id="IDb03a6aef268e4142bb46d9e60431fb04"><enum>(ii)</enum><text>ensure that program requirements do not adversely affect the ability of the grower to receive a payment under this title.</text> </clause></subparagraph></paragraph><paragraph id="ID3d3ec4ca747b430e8d93bc0e320f2685"><enum>(14)</enum><header>Pulse crop</header><text>The term <term>pulse crop</term> means dry peas, lentils, small chickpeas, and large chickpeas.</text> </paragraph><paragraph id="IDdf30d41a9f0d4eceb92cef04ef032c7d"><enum>(15)</enum><header>State</header><text>The term <term>State</term> means—</text> <subparagraph id="ID70707ecbc828418bbc7d1f52a26d5a71"><enum>(A)</enum><text>a State;</text> </subparagraph><subparagraph id="ID612583d5d7024ad08762e2d1f8e33868"><enum>(B)</enum><text>the District of Columbia;</text> </subparagraph><subparagraph id="ID956f5cb554bb4b94b3d27476bd1fa61e"><enum>(C)</enum><text>the Commonwealth of Puerto Rico; and</text> </subparagraph><subparagraph id="ID3e88f04f49244fddb0b8eb0e825ab61e"><enum>(D)</enum><text>any other territory or possession of the United States.</text> </subparagraph></paragraph><paragraph id="id050831D00A294C8390AC2037C06B4EA4"><enum>(16)</enum><header>Transitional yield</header><text>The term <term>transitional yield</term> has the meaning given the term in section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)).</text> </paragraph><paragraph id="IDaed6b14ece8b4bd0a9546b58b7e89a62"><enum>(17)</enum><header>United States</header><text>The term <term>United States</term>, when used in a geographical sense, means all of the States.</text> </paragraph><paragraph id="IDc1997ea51b6c443f91b22beaa962ddc5"><enum>(18)</enum><header>United States premium factor</header><text>The term <term>United States Premium Factor</term> means the percentage by which the difference in the United States loan schedule premiums for Strict Middling (SM) 1<fraction>1/8</fraction>-inch upland cotton and for Middling (M) 1<fraction>3/32</fraction>-inch upland cotton exceeds the difference in the applicable premiums for comparable international qualities.</text> </paragraph></section><section id="IDb58b1ab5494349ae9fde5e0b66e35648"><enum>1105.</enum><header>Agriculture risk coverage</header> <subsection id="IDc85496d6f6694d85af3c2f0e78a3ae2a"><enum>(a)</enum><header>Payments required</header><text>If the Secretary determines that payments are required under subsection (c), the Secretary shall make payments for each covered commodity available to producers in accordance with this section.</text> </subsection><subsection id="id713D40B33AB94E7CBD749727CB5A3589"><enum>(b)</enum><header>Coverage election</header> <paragraph id="idf416cd53925f4007a108c52106346865"><enum>(1)</enum><header>In general</header><text>For the period of crop years 2013 through 2017, the producers shall make a 1-time, irrevocable election to receive—</text> <subparagraph id="id436C3B1566F54EEE832195DA78334F8B"><enum>(A)</enum><text>individual coverage under this section, as determined by the Secretary; or</text> </subparagraph><subparagraph id="idDFA62029A59B4A498DCA5D5D83890CA6"><enum>(B)</enum><text>in the case of a county with sufficient data (as determined by the Secretary), county coverage under this section.</text> </subparagraph></paragraph><paragraph id="id0A78090069E14791AF60933FC6445534"><enum>(2)</enum><header>Effect of election</header><text>The election made under paragraph (1) shall be binding on the producers making the election, regardless of covered commodities planted, and applicable to all acres under the operational control of the producers, in a manner that—</text> <subparagraph id="id1d982dd11aa94c15927fc96c946c4d34"><enum>(A)</enum><text>acres brought under the operational control of the producers after the election are included; and</text> </subparagraph><subparagraph id="id8169b76bc1cc44b396c57f2d17c842bf"><enum>(B)</enum><text>acres no longer under the operational control of the producers after the election are no longer subject to the election of the producers but become subject to the election of the subsequent producers.</text> </subparagraph></paragraph><paragraph id="idDF3526112E5344FCBE4F5E8136A94313"><enum>(3)</enum><header>Duties of the Secretary</header><text>The Secretary shall ensure that producers are precluded from taking any action, including reconstitution, transfer, or other similar action, that would have the effect of altering or reversing the election made under paragraph (1).</text> </paragraph></subsection><subsection id="IDeced9e378c534f9eae8940db3474ec44"><enum>(c)</enum><header>Agriculture risk coverage</header> <paragraph id="idB93424EEA33D4CA89E09CB2E00372BEE"><enum>(1)</enum><header>Payments</header><text>The Secretary shall make agriculture risk coverage payments available under this subsection for each of the 2013 through 2017 crop years if the Secretary determines that—</text> <subparagraph id="id0C045AA8669F4CE7BF4138C6E1F7D90B"><enum>(A)</enum><text>the actual crop revenue for the crop year for the covered commodity; is less than</text> </subparagraph><subparagraph id="idCC3D18478F2B4FA9880B82034A0F78B7"><enum>(B)</enum><text>the agriculture risk coverage guarantee for the crop year for the covered commodity.</text> </subparagraph></paragraph><paragraph id="ID14959f78f6b74e5fa5c88e414e42fd6f"><enum>(2)</enum><header>Time for payments</header><text>If the Secretary determines under this subsection that agriculture risk coverage payments are required to be made for the covered commodity, the agriculture risk coverage payments shall be made as soon as practicable thereafter.</text> </paragraph><paragraph id="IDb5eab4df025444829108cd7a7db32bf0"><enum>(3)</enum><header>Actual crop revenue</header><text>The amount of the actual crop revenue for a crop year of a covered commodity shall be equal to the product obtained by multiplying—</text> <subparagraph id="ID3907d0a68f3846d78e43910351896f6b"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="id9EF558C66DF24B4BBE0FD8444F1C7BE7"><enum>(i)</enum><text>in the case of individual coverage, the actual average individual yield for the covered commodity, as determined by the Secretary; or</text> </clause><clause id="id6E765FA7637B4D34B384B409E3A4D7E5" indent="up1"><enum>(ii)</enum><text>in the case of county coverage, the actual average yield for the county for the covered commodity, as determined by the Secretary; and</text> </clause></subparagraph><subparagraph id="ID533077788cc2480ca1daef7881cbcc5b"><enum>(B)</enum><text>the higher of—</text> <clause id="IDa301079a1cbe4d2d8096b2d571d0f5a4"><enum>(i)</enum><text>the midseason price; or</text> </clause><clause id="IDa478231c35fe42adb82c9b08a513f526"><enum>(ii)</enum><text>if applicable, the national marketing assistance loan rate for the covered commodity under subtitle B.</text> </clause></subparagraph></paragraph><paragraph commented="no" id="ID3f07451af3cc4e28a0fd3e244feb7b77"><enum>(4)</enum><header>Agriculture risk coverage guarantee</header> <subparagraph commented="no" id="ID0ca6a3bd6dcc470082416490718f7fd7"><enum>(A)</enum><header>In general</header><text>The agriculture risk coverage guarantee for a crop year for a covered commodity shall equal 89 percent of the benchmark revenue.</text> </subparagraph><subparagraph id="ID2b0c2cd9631049329c1e544cf282bf6a"><enum>(B)</enum><header>Benchmark revenue</header> <clause id="idD84F035693FE4DD3BDEE6A796723BAA0"><enum>(i)</enum><header>In general</header><text>The benchmark revenue shall be the product obtained by multiplying—</text> <subclause id="IDb7c0e2ee5a664ed18d7d4a50a3e30c57"><enum>(I)</enum><item commented="no" display-inline="yes-display-inline" id="id99FD9A924436482E8B3064413725C55F"><enum>(aa)</enum><text>in the case of individual coverage, subject to clause (ii), the average individual yield, as determined by the Secretary, for the most recent 5 crop years, excluding each of the crop years with the highest and lowest yields; or</text> </item><item id="id117219057C4D4CE9A30EDA360B04CF52" indent="up1"><enum>(bb)</enum><text>in the case of county coverage, the average county yield, as determined by the Secretary, for the most recent 5 crop years, excluding each of the crop years with the highest and lowest yields; and</text> </item></subclause><subclause id="idb87cc4b14adf4d50be47d9d28bf18ebf"><enum>(II)</enum><text>subject to clause (iii), the average national marketing year average price for the most recent 5 crop years, excluding each of the crop years with the highest and lowest prices.</text> </subclause></clause><clause id="idDC2678A2D6534E259FDC33AA7902130E"><enum>(ii)</enum><header>Use of transitional yields</header><text>If the yield determined under clause (i)(I)(aa)—</text> <subclause id="id66a2cae9547b409796c0add6b4ffd543"><enum>(I)</enum><text>for the 2012 crop year or any prior crop year, is less than 60 percent of the applicable transitional yield, the Secretary shall use 60 percent of the applicable transitional yield for that crop year; and</text> </subclause><subclause id="id602908ca64e641fd865d30a637948d53"><enum>(II)</enum><text>for the 2013 crop year and any subsequent crop year, is less than 70 percent of the applicable transitional yield, the Secretary shall use 70 percent of the applicable transitional yield for that crop year.</text> </subclause></clause><clause id="id036d6d9025d441429a7e2975dc9613d6"><enum>(iii)</enum><header>Special rule for rice and peanuts</header><text>If the national marketing year average price under clause (i)(II) for any of the applicable crop years is lower than the price for the covered commodity listed below, the Secretary shall use the following price for that crop year:</text> <subclause id="id0655bd9f20b24cc6a29cb637816fb023"><enum>(I)</enum><text>For long grain rice, $13.00 per hundredweight.</text> </subclause><subclause id="id40002ea10a574670a90c2b3a5f280f7e"><enum>(II)</enum><text>For medium grain rice, $13.00 per hundredweight.</text> </subclause><subclause id="id4ff69f4c7f9043878410cf4432a408ac"><enum>(III)</enum><text>For peanuts, $530.00 per ton.</text> </subclause></clause></subparagraph></paragraph><paragraph id="IDa5339df66bee4eb1b44a1765ddac7ccd"><enum>(5)</enum><header>Payment rate</header><text>The payment rate for each covered commodity shall be equal to the lesser of—</text> <subparagraph id="IDd344da3713ca49e6917ef77623978fa2"><enum>(A)</enum><text>the amount that—</text> <clause id="IDfe7ed80ae50e4abbb33a64404bf7f868"><enum>(i)</enum><text>the agriculture risk coverage guarantee for the covered commodity; exceeds</text> </clause><clause id="IDa3fcb62f25914e57a5bb2eb7141de67d"><enum>(ii)</enum><text>the actual crop revenue for the crop year of the covered commodity; or</text> </clause></subparagraph><subparagraph id="IDa34b2a05170242f0906227ccb17fdce3"><enum>(B)</enum><text>10 percent of the benchmark revenue for the crop year of the covered commodity.</text> </subparagraph></paragraph><paragraph id="ID93f3069335de4c9c951fdedad5fda81c"><enum>(6)</enum><header>Payment amount</header><text>If agriculture risk coverage payments under this subsection are required to be paid for any of the 2013 through 2017 crop years of a covered commodity, the amount of the agriculture risk coverage payment for the crop year shall be equal to the product obtained by multiplying—</text> <subparagraph id="id96BDBBA508784101BFECE6C5CF49C96E"><enum>(A)</enum><text>the payment rate under paragraph (5); and</text> </subparagraph><subparagraph id="ID05a48e6842ba4bdbb2bb7aa39d0b276e"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="id3E2CC1B326264832A14A78A948F81919"><enum>(i)</enum><text>in the case of individual coverage the sum of—</text> <subclause id="id5C9C9A3F6A474EF98C4CAEEFCAAF3FB8" indent="up1"><enum>(I)</enum><text>65 percent of the planted eligible acres of the covered commodity; and</text> </subclause><subclause id="idBFF583D2811D44C39753712AF09F2DA7" indent="up1"><enum>(II)</enum><text>45 percent of the eligible acres that were prevented from being planted to the covered commodity; or</text> </subclause></clause><clause id="id3AFE505411CC4E57B4D6DA8FAA7FF4FA" indent="up1"><enum>(ii)</enum><text>in the case of county coverage—</text> <subclause id="idE36A4152ED354AEBA6D4CA69B57D781A"><enum>(I)</enum><text>80 percent of the planted eligible acres of the covered commodity; and</text> </subclause><subclause id="idCD9C1D88CFA84B9B941A5D81C5A38ACE"><enum>(II)</enum><text>45 percent of the eligible acres that were prevented from being planted to the covered commodity.</text> </subclause></clause></subparagraph></paragraph><paragraph id="ID6b50a9819bbf44249d00272d593ac590"><enum>(7)</enum><header>Duties of the Secretary</header><text>In carrying out the program under this subsection, the Secretary shall—</text> <subparagraph id="id0ecec55a13a5412483603f12204d07a8"><enum>(A)</enum><text>to the maximum extent practicable, use all available information and analysis to check for anomalies in the determination of payments under the program;</text> </subparagraph><subparagraph id="idd435151faeea424ea3d420e69b849d40"><enum>(B)</enum><text>to the maximum extent practicable, calculate a separate actual crop revenue and agriculture risk coverage guarantee for irrigated and nonirrigated covered commodities;</text> </subparagraph><subparagraph id="id53320d1ed9a04b31a0e3ca698fd76eb3"><enum>(C)</enum><text>differentiate by type or class the national average price of—</text> <clause id="id43b3968095d244b79d6df297c558c84a"><enum>(i)</enum><text>sunflower seeds;</text> </clause><clause id="id7b437a38ca9d49139c0e7824bf861227"><enum>(ii)</enum><text>barley, using malting barley values; and</text> </clause><clause id="id405ea5fc9afc42d19a8bcda18a2ae800"><enum>(iii)</enum><text>wheat; and</text> </clause></subparagraph><subparagraph id="IDf0a2f4e2768f4b11bd8e47146e735b52"><enum>(D)</enum><text>assign a yield for each acre planted or prevented from being planted for the crop year for the covered commodity on the basis of the yield history of representative farms in the State, region, or crop reporting district, as determined by the Secretary, if the Secretary cannot establish the yield as determined under paragraph (3)(A)(ii) or (4)(B)(i) or if the yield determined under paragraph (3)(A)(ii) or (4) is an unrepresentative average yield for the covered commodity as determined by the Secretary.</text> </subparagraph></paragraph></subsection></section><section id="IDaed30b34462b43ea8741cffba7ebd337"><enum>1106.</enum><header>Producer agreement required as condition of provision of payments</header> <subsection id="ID8c407cf0470b4b3ca47e3153764bb620"><enum>(a)</enum><header>Compliance with certain requirements</header> <paragraph id="IDe30ebb9207704ba180fc6245a4f1ab1a"><enum>(1)</enum><header>Requirements</header><text>Before the producers on a farm may receive agriculture risk coverage payments, the producers shall agree, during the crop year for which the payments are made and in exchange for the payments—</text> <subparagraph id="IDef35fbb8a88549608bfb3f2f7b5fb614"><enum>(A)</enum><text>to comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);</text> </subparagraph><subparagraph id="ID8f9b5ae4152d4ada878f0e5248f856e8"><enum>(B)</enum><text>to comply with applicable wetland protection requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.);</text> </subparagraph><subparagraph id="ID1d4387da590f489fbc7ceb5c1d5d0766"><enum>(C)</enum><text>to use the land on the farm for an agricultural or conserving use in a quantity equal to the attributable eligible acres of the farm, and not for a nonagricultural commercial, industrial, or residential use, as determined by the Secretary; and</text> </subparagraph><subparagraph id="ID6d353fd4cea748e9853d2c4678fe4f48"><enum>(D)</enum><text>to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any portion of the land referred to in subparagraph (C).</text> </subparagraph></paragraph><paragraph id="ID4ccef1d5d7734494af37bf1e3dbf6529"><enum>(2)</enum><header>Compliance</header><text>The Secretary may issue such rules as the Secretary considers necessary to ensure producer compliance with the requirements of paragraph (1).</text> </paragraph><paragraph id="ID507edac164314f3b83a07a651c93ca53"><enum>(3)</enum><header>Modification</header><text>At the request of the transferee or owner, the Secretary may modify the requirements of this subsection if the modifications are consistent with the objectives of this subsection, as determined by the Secretary.</text> </paragraph></subsection><subsection commented="no" id="ID646cb4ee753f4a64afef27bc8a4abb11"><enum>(b)</enum><header>Transfer or change of interest in farm</header> <paragraph commented="no" id="ID2140c928b830430f832cd6c6e3c6032e"><enum>(1)</enum><header>Termination</header> <subparagraph commented="no" id="ID3e4823d96f8043ecb0d2c685ba7f764e"><enum>(A)</enum><header>In general</header><text>Except as provided in paragraph (2), a transfer of (or change in) the interest of the producers on a farm for which agriculture risk coverage payments are made shall result in the termination of the agriculture risk coverage payments, unless the transferee or owner of the acreage agrees to assume all obligations under subsection (a).</text> </subparagraph><subparagraph commented="no" id="IDd925be27bea54ebf91fc37181cfe3b06"><enum>(B)</enum><header>Effective date</header><text>The termination shall take effect on the date determined by the Secretary.</text> </subparagraph></paragraph><paragraph id="ID70237646d86345c9a2f1716191c9a9b3"><enum>(2)</enum><header>Exception</header><text>If a producer entitled to an agriculture risk coverage payment dies, becomes incompetent, or is otherwise unable to receive the payment, the Secretary shall make the payment, in accordance with rules issued by the Secretary.</text> </paragraph></subsection><subsection commented="no" id="IDf29b69c78d69415eaa81eac5c342088b"><enum>(c)</enum><header>Reports</header> <paragraph commented="no" id="ID2a63d8f854684bed9b77a20ad2d117d7"><enum>(1)</enum><header>Acreage reports</header><text>As a condition on the receipt of any benefits under this subtitle or subtitle B, the Secretary shall require producers on a farm to submit to the Secretary annual acreage reports with respect to all cropland on the farm.</text> </paragraph><paragraph commented="no" id="IDba46bcfd722a41cb80fd6a876b64c1bf"><enum>(2)</enum><header>Production reports</header><text>As a condition on the receipt of any benefits under section 1105, the Secretary shall require producers on a farm to submit to the Secretary annual production reports with respect to all covered commodities produced on the farm.</text> </paragraph><paragraph commented="no" id="ID32fa06e3d7314345bf1ecc9ca732c7ee"><enum>(3)</enum><header>Penalties</header><text>No penalty with respect to benefits under this subtitle or subtitle B shall be assessed against the producers on a farm for an inaccurate acreage or production report unless the producers on the farm knowingly and willfully falsified the acreage or production report.</text> </paragraph><paragraph id="id134b5ed89dee4bfa94bda53b07579b74"><enum>(4)</enum><header>Data reporting</header><text>To the maximum extent practicable, the Secretary shall use data reported by the producer pursuant to requirements under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) to meet the obligations described in paragraphs (1) and (2), without additional submissions to the Department.</text> </paragraph></subsection><subsection commented="no" id="ID5ec853b0059d457bb21b8911646c99b4"><enum>(d)</enum><header>Tenants and sharecroppers</header><text>In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.</text> </subsection></section><section commented="no" id="id14EDE9886A3D4B8BBAB6761E55AFE6AE"><enum>1107.</enum><header>Period of effectiveness</header><text display-inline="no-display-inline">Sections 1104 through 1106 shall be effective beginning with the 2013 crop year of each covered commodity through the 2017 crop year.</text> </section><section id="id6581E4FF77894D0284AA5FADC0A93EFD"><enum>1108.</enum><header>Adjusted gross income limitation for conservation programs</header><text display-inline="no-display-inline">Section 1001D(b)(2)(A) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)(2)(A)) is amended—</text> <paragraph id="id9F382761A070407D93850C1D5C598E32"><enum>(1)</enum><text>by striking <quote><header-in-text level="subparagraph" style="OLC">Limits</header-in-text>.—</quote> and all that follows through <quote>clause (ii),</quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">Limits</header-in-text>.—Notwithstanding any other provision of law,</quote>; and</text> </paragraph><paragraph id="id60CE7BA62E654BD6BFFB2A053114F8C1"><enum>(2)</enum><text>by striking clause (ii).</text> </paragraph></section></subtitle><subtitle id="idD97ABA49AFB14C56B12A5D38182E002C"><enum>B</enum><header>Marketing assistance loans and loan deficiency payments</header> <section id="id2E1C0738AB36466BA88A0FBA5ADFF6DF"><enum>1201.</enum><header>Availability of nonrecourse marketing assistance loans for loan commodities</header> <subsection id="idD9DD79D4775B4581AE079E14E44EF815"><enum>(a)</enum><header>Definition of loan commodity</header><text>In this subtitle, the term <term>loan commodity</term> means wheat, corn, grain sorghum, barley, oats, upland cotton, extra long staple cotton, long grain rice, medium grain rice, peanuts, soybeans, other oilseeds, graded wool, nongraded wool, mohair, honey, dry peas, lentils, small chickpeas, and large chickpeas.</text> </subsection><subsection id="IDd63ef41a0c264bfd99b6cc5c077505be"><enum>(b)</enum><header>Nonrecourse loans available</header> <paragraph id="IDb9e718b397594db6a7286d6b5a6542ab"><enum>(1)</enum><header>In general</header><text>For each of the 2013 through 2017 crops of each loan commodity, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for loan commodities produced on the farm.</text> </paragraph><paragraph id="IDbc550ad6d14d49ce810711388533f1c4"><enum>(2)</enum><header>Terms and conditions</header><text>The marketing assistance loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under section 1202 for the loan commodity.</text> </paragraph></subsection><subsection id="IDde82a353e9cd4d81a40c405b94269559"><enum>(c)</enum><header>Eligible production</header><text>The producers on a farm shall be eligible for a marketing assistance loan under subsection (b) for any quantity of a loan commodity produced on the farm.</text> </subsection><subsection id="IDd5030d11304443d3aa52da21c5ff7a89"><enum>(d)</enum><header>Compliance with conservation and wetlands requirements</header> <paragraph id="id471997B4309642278E77E8FF564BA291"><enum>(1)</enum><header>Requirements</header><text>Before the producers on a farm may receive a marketing assistance loan or any other payment or benefit under this subtitle, the producers shall agree, for the crop year for which the payments are made and in exchange for the payments—</text> <subparagraph id="id6e44aba01f7f4d9eb098549a409cc6a9"><enum>(A)</enum><text>to comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);</text> </subparagraph><subparagraph id="idd64c86e6aeb4403c967924fa0542dcb1"><enum>(B)</enum><text>to comply with applicable wetland protection requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.);</text> </subparagraph><subparagraph id="id88bc56c3f5704fc995088d5254f94739"><enum>(C)</enum><text>to use the land on the farm for an agricultural or conserving use in a quantity equal to the attributable eligible acres of the farm, and not for a nonagricultural commercial, industrial, or residential use, as determined by the Secretary; and</text> </subparagraph><subparagraph id="id1a50cc7ead3941ca8ee9bde0ce6c5557"><enum>(D)</enum><text>to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any portion of the land referred to in subparagraph (C).</text> </subparagraph></paragraph><paragraph id="ide39b6dbb86754c869fe6c124d569a46c"><enum>(2)</enum><header>Compliance</header><text>The Secretary may issue such rules as the Secretary considers necessary to ensure producer compliance with paragraph (1).</text> </paragraph><paragraph id="id541836612f284e93bbd4fa2410effbab"><enum>(3)</enum><header>Modification</header><text>At the request of a transferee or owner, the Secretary may modify the requirements of this subsection if the modifications are consistent with the purposes of this subsection, as determined by the Secretary.</text> </paragraph></subsection><subsection id="ID2c19de2c8bd44b92a8a5f45073e8a3ee"><enum>(e)</enum><header>Special rules for peanuts</header> <paragraph id="id143D325544074EFBACAC0C104FDA0F1B"><enum>(1)</enum><header>In general</header><text>This subsection shall apply only to producers of peanuts.</text> </paragraph><paragraph id="ID8550f6db4db14dc5b336f8c75e7f56ec"><enum>(2)</enum><header>Options for obtaining loan</header><text>A marketing assistance loan under this section, and loan deficiency payments under section 1205, may be obtained at the option of the producers on a farm through—</text> <subparagraph id="ID440fad03d26940f2a2d4f3ee077ab966"><enum>(A)</enum><text>a designated marketing association or marketing cooperative of producers that is approved by the Secretary; or</text> </subparagraph><subparagraph id="ID84ec85bac0c94caa8e7c68bd5ce77234"><enum>(B)</enum><text>the Farm Service Agency.</text> </subparagraph></paragraph><paragraph id="IDa12467ade9014b049d066b35062da1a5"><enum>(3)</enum><header>Storage of loan peanuts</header><text>As a condition on the approval by the Secretary of an individual or entity to provide storage for peanuts for which a marketing assistance loan is made under this section, the individual or entity shall agree—</text> <subparagraph id="IDa6303ed5b0ac446b87432903db5aa6a2"><enum>(A)</enum><text>to provide the storage on a nondiscriminatory basis; and</text> </subparagraph><subparagraph id="IDdce93c16100a4c38b816c052c222faa7"><enum>(B)</enum><text>to comply with such additional requirements as the Secretary considers appropriate to accomplish the purposes of this section and promote fairness in the administration of the benefits of this section.</text> </subparagraph></paragraph><paragraph id="id3ac25b2551ff48b684d23d7ae6340939"><enum>(4)</enum><header>Storage, handling, and associated costs</header> <subparagraph id="id588d2cc448d54637ab27a9bcb26bad41"><enum>(A)</enum><header>In general</header><text>To ensure proper storage of peanuts for which a loan is made under this section, the Secretary shall pay handling and other associated costs (other than storage costs) incurred at the time at which the peanuts are placed under loan, as determined by the Secretary.</text> </subparagraph><subparagraph id="ida1f368c5d4544d28b6608b91a4a52f12"><enum>(B)</enum><header>Redemption and forfeiture</header><text>The Secretary shall—</text> <clause id="id70cd1276637f4cbcb0972cec6467ebc9"><enum>(i)</enum><text>require the repayment of handling and other associated costs paid under subparagraph (A) for all peanuts pledged as collateral for a loan that is redeemed under this section; and</text> </clause><clause id="id7382b79552ea412c9c08cd9c9a2247fa"><enum>(ii)</enum><text>pay storage, handling, and other associated costs for all peanuts pledged as collateral that are forfeited under this section.</text> </clause></subparagraph></paragraph><paragraph id="IDf7d2567592c64f8a8e58ae0a9573c827"><enum>(5)</enum><header>Marketing</header><text>A marketing association or cooperative may market peanuts for which a loan is made under this section in any manner that conforms to consumer needs, including the separation of peanuts by type and quality.</text> </paragraph><paragraph id="idCFBFA84AB2B845D396216BBB39AF3407"><enum>(6)</enum><header>Reimbursable agreements and payment of administrative expenses</header><text>The Secretary may implement any reimbursable agreements or provide for the payment of administrative expenses under this subsection only in a manner that is consistent with those activities in regard to other loan commodities.</text> </paragraph></subsection></section><section id="ID0784a31a0910428f868e98f57cd27431"><enum>1202.</enum><header>Loan rates for nonrecourse marketing assistance loans</header> <subsection id="IDd7fe02a3b03943eba07f1c9a4857190e"><enum>(a)</enum><header>In general</header><text>For purposes of each of the 2013 through 2017 crop years, the loan rate for a marketing assistance loan under section 1201 for a loan commodity shall be equal to the following:</text> <paragraph id="IDd9ee11e41ada44ad8c697c47cea20b8e"><enum>(1)</enum><text>In the case of wheat, $2.94 per bushel.</text> </paragraph><paragraph id="ID765467acfcc145b9abab09aa75808e27"><enum>(2)</enum><text>In the case of corn, $1.95 per bushel.</text> </paragraph><paragraph id="IDecaefcacd0034ae0901aa89d046df894"><enum>(3)</enum><text>In the case of grain sorghum, $1.95 per bushel.</text> </paragraph><paragraph id="ID7504d24a164d40cfa559bf57b5a0d3f9"><enum>(4)</enum><text>In the case of barley, $1.95 per bushel.</text> </paragraph><paragraph id="IDe55c3133d62841b0af79b0a4fb1e361b"><enum>(5)</enum><text>In the case of oats, $1.39 per bushel.</text> </paragraph><paragraph id="IDb4d1bdeb22e1416ab37ffbc65cb496b0"><enum>(6)</enum><text>In the case of base quality of upland cotton, for the 2013 and each subsequent crop year, the simple average of the adjusted prevailing world price for the 2 immediately preceding marketing years, as determined by the Secretary and announced October 1 preceding the next domestic plantings, but in no case less than $0.47 per pound or more than $0.52 per pound.</text> </paragraph><paragraph id="ID15c5ac1314054169bdd04af3812bf081"><enum>(7)</enum><text>In the case of extra long staple cotton, $0.7977 per pound.</text> </paragraph><paragraph id="ID3fea5b3670ec4d4081f790cd42432dfb"><enum>(8)</enum><text>In the case of long grain rice, $6.50 per hundredweight.</text> </paragraph><paragraph id="ID4f377dfef64a4ba592c5765c5e307d73"><enum>(9)</enum><text>In the case of medium grain rice, $6.50 per hundredweight.</text> </paragraph><paragraph id="ID4dc8cab6ff164cc39903d97e980076f6"><enum>(10)</enum><text>In the case of soybeans, $5.00 per bushel.</text> </paragraph><paragraph id="ID9d8e5bc95e324545accf5762a6e3e402"><enum>(11)</enum><text>In the case of other oilseeds, $10.09 per hundredweight for each of the following kinds of oilseeds:</text> <subparagraph id="ID28a3759c290b462d8faa1b78fd19279b"><enum>(A)</enum><text>Sunflower seed.</text> </subparagraph><subparagraph id="IDda7292874f284d27b9fcacbc35032625"><enum>(B)</enum><text>Rapeseed.</text> </subparagraph><subparagraph id="ID9226920cf4cf4affb01d51b3bbe7e870"><enum>(C)</enum><text>Canola.</text> </subparagraph><subparagraph id="ID47dfce492e7a41dba981680b2c279066"><enum>(D)</enum><text>Safflower.</text> </subparagraph><subparagraph id="ID42df1b10891b4f43acd69576a539b4e7"><enum>(E)</enum><text>Flaxseed.</text> </subparagraph><subparagraph id="ID162878ba4a294f9ba98b37812a199e75"><enum>(F)</enum><text>Mustard seed.</text> </subparagraph><subparagraph id="ID87091033fbfd479e89b8a704f64d0187"><enum>(G)</enum><text>Crambe.</text> </subparagraph><subparagraph id="ID52003e358d5a40f7bcd3c2005276f440"><enum>(H)</enum><text>Sesame seed.</text> </subparagraph><subparagraph id="ID962923ece00e4062aa3a6490efd3c4a9"><enum>(I)</enum><text>Other oilseeds designated by the Secretary.</text> </subparagraph></paragraph><paragraph id="ID92730e0b126b474ab406d8fba13de1ca"><enum>(12)</enum><text>In the case of dry peas, $5.40 per hundredweight.</text> </paragraph><paragraph id="ID6545743aba1146e6b331545d39c673bd"><enum>(13)</enum><text>In the case of lentils, $11.28 per hundredweight.</text> </paragraph><paragraph id="IDfe4734cff1a24947bb91b6563e1775c1"><enum>(14)</enum><text>In the case of small chickpeas, $7.43 per hundredweight.</text> </paragraph><paragraph id="ID374b9dc10c4b459eb31be3d7be733a80"><enum>(15)</enum><text>In the case of large chickpeas, $11.28 per hundredweight.</text> </paragraph><paragraph id="ID57a4989f38c64db2912c8d6ba80bb2de"><enum>(16)</enum><text>In the case of graded wool, $1.15 per pound.</text> </paragraph><paragraph id="ID02ddedf0078f49c6b5689549dc66fc22"><enum>(17)</enum><text>In the case of nongraded wool, $0.40 per pound.</text> </paragraph><paragraph id="IDf48fa528cd40481ba626e4740f0f98a3"><enum>(18)</enum><text>In the case of mohair, $4.20 per pound.</text> </paragraph><paragraph id="ID5ae9e82d09c347a5add81397e8dcff7b"><enum>(19)</enum><text>In the case of honey, $0.69 per pound.</text> </paragraph><paragraph id="ID277cd86526224665bdc8260cd88aed32"><enum>(20)</enum><text>In the case of peanuts, $355 per ton.</text> </paragraph></subsection><subsection id="ID470544ab8ea74a8b81e4ca64d34cdd18"><enum>(b)</enum><header>Single county loan rate for other oilseeds</header><text>The Secretary shall establish a single loan rate in each county for each kind of other oilseeds described in subsection (a)(11).</text> </subsection></section><section id="ID137967f1090144ceaf3fcab4c35c6638"><enum>1203.</enum><header>Term of loans</header> <subsection id="IDc48bf16d02dd41d2a995ac0fcad3e3a9"><enum>(a)</enum><header>Term of loan</header><text>In the case of each loan commodity, a marketing assistance loan under section 1201 shall have a term of 9 months beginning on the first day of the first month after the month in which the loan is made.</text> </subsection><subsection id="ID96d91f25324c40a9a981c3bdbe94fc69"><enum>(b)</enum><header>Extensions prohibited</header><text>The Secretary may not extend the term of a marketing assistance loan for any loan commodity.</text> </subsection></section><section id="IDf3d7a069f4f649c8a1067116e6c4a0e9"><enum>1204.</enum><header>Repayment of loans</header> <subsection id="IDb9a2b1cf22a34e3fa27fd1b045cc0415"><enum>(a)</enum><header>General rule</header><text>The Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 1201 for a loan commodity (other than upland cotton, long grain rice, medium grain rice, extra long staple cotton, peanuts and confectionery and each other kind of sunflower seed (other than oil sunflower seed)) at a rate that is the lesser of—</text> <paragraph id="ID43a60dc0da3a4fdcb51b35b2fd82fca6"><enum>(1)</enum><text>the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283));</text> </paragraph><paragraph id="ID7f0371cafc944a9b9b45045d90405eb7"><enum>(2)</enum><text>a rate (as determined by the Secretary) that—</text> <subparagraph id="ID365e5b1ec5b24ee989e772264004ea8d"><enum>(A)</enum><text>is calculated based on average market prices for the loan commodity during the preceding 30-day period; and</text> </subparagraph><subparagraph id="ID652e367f8dc94032ada8dcbb08c2f969"><enum>(B)</enum><text>will minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries; or</text> </subparagraph></paragraph><paragraph id="IDc05c9081acdd4bd9bed5feae417a7f0f"><enum>(3)</enum><text>a rate that the Secretary may develop using alternative methods for calculating a repayment rate for a loan commodity that the Secretary determines will—</text> <subparagraph id="ID8c23deee263644dea46259df2ee8e5c2"><enum>(A)</enum><text>minimize potential loan forfeitures;</text> </subparagraph><subparagraph id="ID7a17b44920e24029ba738e89a257831f"><enum>(B)</enum><text>minimize the accumulation of stocks of the commodity by the Federal Government;</text> </subparagraph><subparagraph id="ID85707cf7caf44c0fbb8faa5190ae01b4"><enum>(C)</enum><text>minimize the cost incurred by the Federal Government in storing the commodity;</text> </subparagraph><subparagraph id="IDef969f27336542e18e5e0eb8bbbe3639"><enum>(D)</enum><text>allow the commodity produced in the United States to be marketed freely and competitively, both domestically and internationally; and</text> </subparagraph><subparagraph id="ID94a84f1806b941788781dd7b975abef8"><enum>(E)</enum><text>minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries.</text> </subparagraph></paragraph></subsection><subsection id="IDf4a03b3575ac42689d0c436cf32b5127"><enum>(b)</enum><header>Repayment rates for upland cotton, long grain rice, and medium grain rice</header><text>The Secretary shall permit producers to repay a marketing assistance loan under section 1201 for upland cotton, long grain rice, and medium grain rice at a rate that is the lesser of—</text> <paragraph id="IDeb1e62a222f544c6ab5146011581b04c"><enum>(1)</enum><text>the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or</text> </paragraph><paragraph id="ID0ec788abbee2415aaad73d7b59a42035"><enum>(2)</enum><text>the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.</text> </paragraph></subsection><subsection id="IDf48dcf5587fc4fffad631c6ff9256aa2"><enum>(c)</enum><header>Repayment rates for extra long staple cotton</header><text>Repayment of a marketing assistance loan for extra long staple cotton shall be at the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).</text> </subsection><subsection id="IDea93bd5bbb15404f8c9f090c2f198049"><enum>(d)</enum><header>Prevailing world market price</header><text>For purposes of this section and section 1207, the Secretary shall prescribe by regulation—</text> <paragraph id="ID2781ab223f7447a7a3c0e112f92965e4"><enum>(1)</enum><text>a formula to determine the prevailing world market price for each of upland cotton, long grain rice, and medium grain rice; and</text> </paragraph><paragraph id="IDceb6d039cf9b4d7cb6a3884ddfb10d2b"><enum>(2)</enum><text>a mechanism by which the Secretary shall announce periodically those prevailing world market prices.</text> </paragraph></subsection><subsection id="ID2e9d24db59c1414c9fbf2349357c1e58"><enum>(e)</enum><header>Adjustment of prevailing world market price for upland cotton, long grain rice, and medium grain rice</header> <paragraph id="IDe27913aaf05c465887121e67912982dc"><enum>(1)</enum><header>Rice</header><text>The prevailing world market price for long grain rice and medium grain rice determined under subsection (d) shall be adjusted to United States quality and location.</text> </paragraph><paragraph id="ID7059bb5a03934ef1a4e1b2d63f1eb4bb"><enum>(2)</enum><header>Cotton</header><text>The prevailing world market price for upland cotton determined under subsection (d)—</text> <subparagraph id="ID3461fd9b48df4bf6be27929b2bdb73cc"><enum>(A)</enum><text>shall be adjusted to United States quality and location, with the adjustment to include—</text> <clause id="IDf074cc325e1e4475b52213d14d7c9877"><enum>(i)</enum><text>a reduction equal to any United States Premium Factor for upland cotton of a quality higher than Middling (M) 1<fraction>3/32</fraction>-inch; and</text> </clause><clause id="ID1c6a26f531e14418aafc6cf2d4a4bff9"><enum>(ii)</enum><text>the average costs to market the commodity, including average transportation costs, as determined by the Secretary; and</text> </clause></subparagraph><subparagraph id="IDb49e0eb18a254dbf8f5627a04e6c4ad3"><enum>(B)</enum><text>may be further adjusted, during the period beginning on the date of enactment of this Act and ending on July 31, 2018, if the Secretary determines the adjustment is necessary—</text> <clause id="ID819b6734780b45ebb6d0e8ee95b68f2f"><enum>(i)</enum><text>to minimize potential loan forfeitures;</text> </clause><clause id="IDc7c87c7f260d40d68862361fb508dd2e"><enum>(ii)</enum><text>to minimize the accumulation of stocks of upland cotton by the Federal Government;</text> </clause><clause id="IDd66fb5c77edf4a928164908d28f21802"><enum>(iii)</enum><text>to ensure that upland cotton produced in the United States can be marketed freely and competitively, both domestically and internationally; and</text> </clause><clause id="ID169d50a9eab44d3d8b7a2e0ae3f057d0"><enum>(iv)</enum><text>to ensure an appropriate transition between current-crop and forward-crop price quotations, except that the Secretary may use forward-crop price quotations prior to July 31 of a marketing year only if—</text> <subclause id="ID62a50a2412e843168fb12ec62aa0a47b"><enum>(I)</enum><text>there are insufficient current-crop price quotations; and</text> </subclause><subclause id="ID68df59d160b64196b329dbb3c35dcedb"><enum>(II)</enum><text>the forward-crop price quotation is the lowest such quotation available.</text> </subclause></clause></subparagraph></paragraph><paragraph id="IDae0fdfdc63db4b70bde34f6a2046e1bb"><enum>(3)</enum><header>Guidelines for additional adjustments</header><text>In making adjustments under this subsection, the Secretary shall establish a mechanism for determining and announcing the adjustments in order to avoid undue disruption in the United States market.</text> </paragraph></subsection><subsection id="ID5777f6941b81451bb73abf62b9924daa"><enum>(f)</enum><header>Repayment rates for confectionery and other kinds of sunflower seeds</header><text>The Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 1201 for confectionery and each other kind of sunflower seed (other than oil sunflower seed) at a rate that is the lesser of—</text> <paragraph id="ID2db3bc66ca5449fc80d3d8eb7fee40b2"><enum>(1)</enum><text>the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or</text> </paragraph><paragraph id="ID29118fe7874748849eb1ef278fd1924d"><enum>(2)</enum><text>the repayment rate established for oil sunflower seed.</text> </paragraph></subsection><subsection commented="no" id="ID8ede621bb43d42429cbde88073ce8c27"><enum>(g)</enum><header>Payment of cotton storage costs</header><text>Effective for each of the 2013 through 2017 crop years, the Secretary shall make cotton storage payments available in the same manner, and at the same rates as the Secretary provided storage payments for the 2006 crop of cotton, except that the rates shall be reduced by 20 percent.</text> </subsection><subsection id="ID6a7e36775dc747e3ba3644a74ff2932c"><enum>(h)</enum><header>Repayment rate for peanuts</header><text>The Secretary shall permit producers on a farm to repay a marketing assistance loan for peanuts under subsection (a) at a rate that is the lesser of—</text> <paragraph id="ID5307cd77da4d4051a1bda80b35cb179e"><enum>(1)</enum><text>the loan rate established for peanuts under subsection (b), plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or</text> </paragraph><paragraph id="ID152181b307b44969ac01b7d9135910f6"><enum>(2)</enum><text>a rate that the Secretary determines will—</text> <subparagraph id="ID24c0fdd35af048d9b5ebd0d688dcadeb"><enum>(A)</enum><text>minimize potential loan forfeitures;</text> </subparagraph><subparagraph id="IDcd0e1ba392a64bf9908c3903f423fa78"><enum>(B)</enum><text>minimize the accumulation of stocks of peanuts by the Federal Government;</text> </subparagraph><subparagraph id="ID8fb167e20967448aa19f1d76ff5bcaef"><enum>(C)</enum><text>minimize the cost incurred by the Federal Government in storing peanuts; and</text> </subparagraph><subparagraph id="ID584bd27d14f64cc7b093e20b934ca695"><enum>(D)</enum><text>allow peanuts produced in the United States to be marketed freely and competitively, both domestically and internationally.</text> </subparagraph></paragraph></subsection><subsection id="ID260ca848fbec4dc4aae3a9ffd3d80195"><enum>(i)</enum><header>Authority to temporarily adjust repayment rates</header> <paragraph id="ID4da77ad8ae104cc1bcaebe0459ae150c"><enum>(1)</enum><header>Adjustment authority</header><text>In the event of a severe disruption to marketing, transportation, or related infrastructure, the Secretary may modify the repayment rate otherwise applicable under this section for marketing assistance loans under section 1201 for a loan commodity.</text> </paragraph><paragraph id="ID1a255fb740e74882bae780ea3ae1019b"><enum>(2)</enum><header>Duration</header><text>Any adjustment made under paragraph (1) in the repayment rate for marketing assistance loans for a loan commodity shall be in effect on a short-term and temporary basis, as determined by the Secretary.</text> </paragraph></subsection></section><section id="ID233f404b76b4475ea9b2907d4931421e"><enum>1205.</enum><header>Loan deficiency payments</header> <subsection id="ID96b8eeca83a84862980f96e762dbdd69"><enum>(a)</enum><header>Availability of loan deficiency payments</header> <paragraph id="ID5927df61c0714cf68c4a5f48d756e480"><enum>(1)</enum><header>In general</header><text>Except as provided in subsection (d), the Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan under section 1201 with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for loan deficiency payments under this section.</text> </paragraph><paragraph id="ID0120bf9bf7d2443f93c39f42adbca341"><enum>(2)</enum><header>Unshorn pelts, hay, and silage</header> <subparagraph id="ID15eb21492c0f4681b5354525fa266c1b"><enum>(A)</enum><header>Marketing assistance loans</header><text>Subject to subparagraph (B), nongraded wool in the form of unshorn pelts and hay and silage derived from a loan commodity are not eligible for a marketing assistance loan under section 1201.</text> </subparagraph><subparagraph id="ID6cabf0a12efb4a80b5d58b57c26a16a8"><enum>(B)</enum><header>Loan deficiency payment</header><text>Effective for the 2013 through 2017 crop years, the Secretary may make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and silage derived from a loan commodity.</text> </subparagraph></paragraph></subsection><subsection id="ID44f4f879888f47369ff7d20dc047e3c4"><enum>(b)</enum><header>Computation</header><text>A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be equal to the product obtained by multiplying—</text> <paragraph id="IDd1ca75906ef14f5cbaefe10d27e1f45a"><enum>(1)</enum><text>the payment rate determined under subsection (c) for the commodity; by</text> </paragraph><paragraph id="ID931e9929c90d45a2b5df199de559ad28"><enum>(2)</enum><text>the quantity of the commodity produced by the eligible producers, excluding any quantity for which the producers obtain a marketing assistance loan under section 1201.</text> </paragraph></subsection><subsection id="ID31f57d3c542e47d996462209d3a30ee0"><enum>(c)</enum><header>Payment rate</header> <paragraph id="IDf6c597599f434b33bac725d565f7e327"><enum>(1)</enum><header>In general</header><text>In the case of a loan commodity, the payment rate shall be the amount by which—</text> <subparagraph id="ID2c3d55e6b5844c448097c80ef35a09fb"><enum>(A)</enum><text>the loan rate established under section 1202 for the loan commodity; exceeds</text> </subparagraph><subparagraph id="ID706e60e39e8f4c14b535163e28b3b199"><enum>(B)</enum><text>the rate at which a marketing assistance loan for the loan commodity may be repaid under section 1204.</text> </subparagraph></paragraph><paragraph id="ID8362b2bb9f644b0fa76bad192edf983f"><enum>(2)</enum><header>Unshorn pelts</header><text>In the case of unshorn pelts, the payment rate shall be the amount by which—</text> <subparagraph id="IDc4b7486e5c4b45d28df3cadd969ac24a"><enum>(A)</enum><text>the loan rate established under section 1202 for ungraded wool; exceeds</text> </subparagraph><subparagraph id="IDf41085f162cc4d33b70871f78024ea9d"><enum>(B)</enum><text>the rate at which a marketing assistance loan for ungraded wool may be repaid under section 1204.</text> </subparagraph></paragraph><paragraph id="ID8bab03f9b4b641089f9a052bdeb58979"><enum>(3)</enum><header>Hay and silage</header><text>In the case of hay or silage derived from a loan commodity, the payment rate shall be the amount by which—</text> <subparagraph id="ID4de737e8bd6240928fd311213b03974b"><enum>(A)</enum><text>the loan rate established under section 1202 for the loan commodity from which the hay or silage is derived; exceeds</text> </subparagraph><subparagraph id="ID2c0f35e0557a4655947f3085f5247750"><enum>(B)</enum><text>the rate at which a marketing assistance loan for the loan commodity may be repaid under section 1204.</text> </subparagraph></paragraph></subsection><subsection id="ID5418c0809e39405291ae442844bf2367"><enum>(d)</enum><header>Exception for extra long staple cotton</header><text>This section shall not apply with respect to extra long staple cotton.</text> </subsection><subsection id="ID038d541de523468bbaf138bfe5295b1f"><enum>(e)</enum><header>Effective date for payment rate determination</header><text>The Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm with respect to a quantity of a loan commodity or commodity referred to in subsection (a)(2) using the payment rate in effect under subsection (c) as of the date the producers request the payment.</text> </subsection></section><section id="ID63ca9cd520044aa2b858d0ec37d34179"><enum>1206.</enum><header>Payments in lieu of loan deficiency payments for grazed acreage</header> <subsection id="ID62fae58ea6314b45b43fc4825d08e403"><enum>(a)</enum><header>Eligible producers</header> <paragraph id="ID1da0a5dc696c4155967e93031e673fad"><enum>(1)</enum><header>In general</header><text>Effective for the 2013 through 2017 crop years, in the case of a producer that would be eligible for a loan deficiency payment under section 1205 for wheat, barley, or oats, but that elects to use acreage planted to the wheat, barley, or oats for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of the wheat, barley, or oats on that acreage.</text> </paragraph><paragraph id="ID002e9b047e5c4a1f96d72fe6aa234d00"><enum>(2)</enum><header>Grazing of triticale acreage</header><text>Effective for the 2013 through 2017 crop years, with respect to a producer on a farm that uses acreage planted to triticale for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of triticale on that acreage.</text> </paragraph></subsection><subsection id="ID105fbde44cd74dddb2ecd3f4c7a5a7a8"><enum>(b)</enum><header>Payment amount</header> <paragraph id="ID5bd662d11d48415c93c65c86085313bb"><enum>(1)</enum><header>In general</header><text>The amount of a payment made under this section to a producer on a farm described in subsection (a)(1) shall be equal to the amount determined by multiplying—</text> <subparagraph id="IDb8a51658e5224c2e854466d211d9c480"><enum>(A)</enum><text>the loan deficiency payment rate determined under section 1205(c) in effect, as of the date of the agreement, for the county in which the farm is located; by</text> </subparagraph><subparagraph id="ID949bce94d689488c9dace281f4f54ef6"><enum>(B)</enum><text>the payment quantity determined by multiplying—</text> <clause id="IDe8c58b23e7334a299f53f27fdf6ef510"><enum>(i)</enum><text>the quantity of the grazed acreage on the farm with respect to which the producer elects to forgo harvesting of wheat, barley, or oats; and</text> </clause><clause id="IDf856c548bb29417bb465428c79bff9d5"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idB0E95C8B9BA149D3B00F8F3F981C8D70"><enum>(I)</enum><text>the yield in effect for the calculation of agriculture risk coverage payments under subtitle A with respect to that loan commodity on the farm; or</text> </subclause><subclause id="idB9F29B7633BC4D3582251F419617EB76" indent="up1"><enum>(II)</enum><text>in the case of a farm without a payment yield for that loan commodity, an appropriate yield established by the Secretary.</text> </subclause></clause></subparagraph></paragraph><paragraph id="ID4aefb23189a8428fa1759a4aac0c304e"><enum>(2)</enum><header>Grazing of triticale acreage</header><text>The amount of a payment made under this section to a producer on a farm described in subsection (a)(2) shall be equal to the amount determined by multiplying—</text> <subparagraph id="ID0a36c720d5ed4a7e877581ac01854052"><enum>(A)</enum><text>the loan deficiency payment rate determined under section 1205(c) in effect for wheat, as of the date of the agreement, for the county in which the farm is located; by</text> </subparagraph><subparagraph id="IDa90737a42b6f41a19539aa47a35d5dfb"><enum>(B)</enum><text>the payment quantity determined by multiplying—</text> <clause id="IDd481665f9b9f478b9cf4f1bda3ee6a00"><enum>(i)</enum><text>the quantity of the grazed acreage on the farm with respect to which the producer elects to forgo harvesting of triticale; and</text> </clause><clause id="ID84dd6e93217d4353b95ec8432d009f57"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id72E830A7847F47909BD0028A96FEE140"><enum>(I)</enum><text>the yield in effect for the calculation of agriculture risk coverage payments under subtitle A with respect to wheat on the farm; or</text> </subclause><subclause id="idFE14A54C411A499CA4C9F40B7E49A0B9" indent="up1"><enum>(II)</enum><text>in the case of a farm without a payment yield for wheat, an appropriate yield established by the Secretary in a manner consistent with section 1102 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8712).</text> </subclause></clause></subparagraph></paragraph></subsection><subsection id="ID3a2dc5ea9b9a44c2aa09436767683b1c"><enum>(c)</enum><header>Time, manner, and availability of payment</header> <paragraph id="IDdb9a24a2facf4f50b2d7ed806d3e5bde"><enum>(1)</enum><header>Time and manner</header><text>A payment under this section shall be made at the same time and in the same manner as loan deficiency payments are made under section 1205.</text> </paragraph><paragraph id="ID509276efc6a5453796d479488f46143f"><enum>(2)</enum><header>Availability</header> <subparagraph id="IDca3a41cbfde74339a5056daa471eda31"><enum>(A)</enum><header>In general</header><text>The Secretary shall establish an availability period for the payments authorized by this section.</text> </subparagraph><subparagraph id="ID4b33bb6afbc14a2c9e1a1252b53a4707"><enum>(B)</enum><header>Certain commodities</header><text>In the case of wheat, barley, and oats, the availability period shall be consistent with the availability period for the commodity established by the Secretary for marketing assistance loans authorized by this subtitle.</text> </subparagraph></paragraph></subsection><subsection id="ID04ac320cd8b34bbc82734e61351a7dc5"><enum>(d)</enum><header>Prohibition on crop insurance indemnity or noninsured crop assistance</header><text>A 2013 through 2017 crop of wheat, barley, oats, or triticale planted on acreage that a producer elects, in the agreement required by subsection (a), to use for the grazing of livestock in lieu of any other harvesting of the crop shall not be eligible for an indemnity under a policy or plan of insurance authorized under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).</text> </subsection></section><section id="ID145b3bdd06c447158920072fad52b541"><enum>1207.</enum><header>Special marketing loan provisions for upland cotton</header> <subsection id="IDfd07722b600f41a3a94e6ef6432e0370"><enum>(a)</enum><header>Special import quota</header> <paragraph id="IDa6ae5901f0d2424d91528813b2759b8e"><enum>(1)</enum><header>Definition of special import quota</header><text>In this subsection, the term <term>special import quota</term> means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.</text> </paragraph><paragraph id="IDa46368df8ab848f289e61aa38e7c2816"><enum>(2)</enum><header>Establishment</header> <subparagraph id="ID739ec095362344b5b24f70f6209b1137"><enum>(A)</enum><header>In general</header><text>The President shall carry out an import quota program during the period beginning on August 1, 2013, and ending on July 31, 2018, as provided in this subsection.</text> </subparagraph><subparagraph id="ID5c1aee8ac9c048729afa9ff5bbdd70be"><enum>(B)</enum><header>Program requirements</header><text>Whenever the Secretary determines and announces that for any consecutive 4-week period, the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1<fraction>3/32</fraction>-inch cotton, delivered to a definable and significant international market, as determined by the Secretary, exceeds the prevailing world market price, there shall immediately be in effect a special import quota.</text> </subparagraph></paragraph><paragraph id="ID8d16b431f23d419ab4afbb6974c90108"><enum>(3)</enum><header>Quantity</header><text>The quota shall be equal to the consumption during a 1-week period of cotton by domestic mills at the seasonally adjusted average rate of the most recent 3 months for which official data of the Department of Agriculture or other data are available.</text> </paragraph><paragraph id="ID9a0da88757d2466eb3fc2d3ffe496bb9"><enum>(4)</enum><header>Application</header><text>The quota shall apply to upland cotton purchased not later than 90 days after the date of the Secretary’s announcement under paragraph (2) and entered into the United States not later than 180 days after that date.</text> </paragraph><paragraph id="IDadd50a9d55c14448a76de1b02c3f14d3"><enum>(5)</enum><header>Overlap</header><text>A special quota period may be established that overlaps any existing quota period if required by paragraph (2), except that a special quota period may not be established under this subsection if a quota period has been established under subsection (b).</text> </paragraph><paragraph id="ID5d7376ced929475495e452513a8c5890"><enum>(6)</enum><header>Preferential tariff treatment</header><text>The quantity under a special import quota shall be considered to be an in-quota quantity for purposes of—</text> <subparagraph id="ID2c428a80affc4301b8b2fd108a9b3b15"><enum>(A)</enum><text>section 213(d) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(d));</text> </subparagraph><subparagraph id="ID418dce99f25842fa8ff2d1c77ccec46f"><enum>(B)</enum><text>section 204 of the Andean Trade Preference Act (19 U.S.C. 3203);</text> </subparagraph><subparagraph id="ID004dbd88d65f4f45bf7cfc81930a4934"><enum>(C)</enum><text>section 503(d) of the Trade Act of 1974 (19 U.S.C. 2463(d)); and</text> </subparagraph><subparagraph id="IDdc31e50ae0eb4e87b85c956e210c85c6"><enum>(D)</enum><text>General Note 3(a)(iv) to the Harmonized Tariff Schedule.</text> </subparagraph></paragraph><paragraph id="ID11ef8e7b085b4dc1ab9126e0394eb718"><enum>(7)</enum><header>Limitation</header><text>The quantity of cotton entered into the United States during any marketing year under the special import quota established under this subsection may not exceed the equivalent of 10 week’s consumption of upland cotton by domestic mills at the seasonally adjusted average rate of the 3 months immediately preceding the first special import quota established in any marketing year.</text> </paragraph></subsection><subsection id="ID8ed6c93ac44c4be8bbc8357669e0a62a"><enum>(b)</enum><header>Limited global import quota for upland cotton</header> <paragraph id="ID1c7cde6711cb48cfa3658ff89a07bf02"><enum>(1)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="ID192bb35ba8794b31a58f71787249bcb9"><enum>(A)</enum><header>Demand</header><text>The term <term>demand</term> means—</text> <clause id="ID2d3f9b7ce0d14b97a890117afc8c4346"><enum>(i)</enum><text>the average seasonally adjusted annual rate of domestic mill consumption of cotton during the most recent 3 months for which official data of the Department of Agriculture (as determined by the Secretary) are available; and</text> </clause><clause id="ID7d68d9669bf842bba026ceab3581ef88"><enum>(ii)</enum><text>the larger of—</text> <subclause id="ID1de6345c927f42c4a4f6cbed91c58aec"><enum>(I)</enum><text>average exports of upland cotton during the preceding 6 marketing years; or</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="ID271f60d5df4a408596cc2c1a5240da26"><enum>(II)</enum><text>cumulative exports of upland cotton plus outstanding export sales for the marketing year in which the quota is established.</text> </subclause></clause></subparagraph><subparagraph id="ID9010fb1b20064cc8aba588aab0892faa"><enum>(B)</enum><header>Limited global import quota</header><text>The term <term>limited global import quota</term> means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.</text> </subparagraph><subparagraph id="IDd76f0054d93944dfbfacd6884aa324fa"><enum>(C)</enum><header>Supply</header><text>The term <quote>supply</quote> means, using the latest official data of the Department of Agriculture—</text> <clause id="ID68c20516a0ec47f3bb4faa39e32b40a3"><enum>(i)</enum><text>the carryover of upland cotton at the beginning of the marketing year (adjusted to 480-pound bales) in which the quota is established;</text> </clause><clause id="ID097f9b905ed943d082d234f0833dfa87"><enum>(ii)</enum><text>production of the current crop; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="IDd7aaca1815b1472e944b5306c906be72"><enum>(iii)</enum><text>imports to the latest date available during the marketing year.</text> </clause></subparagraph></paragraph><paragraph id="ID7e9350f8bd424b96925f3c6eb965cca8"><enum>(2)</enum><header>Program</header><text>The President shall carry out an import quota program that provides that whenever the Secretary determines and announces that the average price of the base quality of upland cotton, as determined by the Secretary, in the designated spot markets for a month exceeded 130 percent of the average price of the quality of cotton in the markets for the preceding 36 months, notwithstanding any other provision of law, there shall immediately be in effect a limited global import quota subject to the following conditions:</text> <subparagraph id="IDe40f260c6dfa4d3d8811ce9daef098b7"><enum>(A)</enum><header>Quantity</header><text>The quantity of the quota shall be equal to 21 days of domestic mill consumption of upland cotton at the seasonally adjusted average rate of the most recent 3 months for which official data of the Department of Agriculture are available or as estimated by the Secretary.</text> </subparagraph><subparagraph id="ID3a28af0555574457b7c79a787c1ee3e0"><enum>(B)</enum><header>Quantity if prior quota</header><text>If a quota has been established under this subsection during the preceding 12 months, the quantity of the quota next established under this subsection shall be the smaller of 21 days of domestic mill consumption calculated under subparagraph (A) or the quantity required to increase the supply to 130 percent of the demand.</text> </subparagraph><subparagraph id="ID1354e1d3a2654842a7db6f0f033581fb"><enum>(C)</enum><header>Preferential tariff treatment</header><text>The quantity under a limited global import quota shall be considered to be an in-quota quantity for purposes of—</text> <clause id="ID1eca51241e764e468fdc144ca51bde4a"><enum>(i)</enum><text>section 213(d) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(d));</text> </clause><clause id="ID4db1c8cfad964eb4b54243f237f94964"><enum>(ii)</enum><text>section 204 of the Andean Trade Preference Act (19 U.S.C. 3203);</text> </clause><clause id="IDe8d61d6f06cb47a584beb84579a7f8ea"><enum>(iii)</enum><text>section 503(d) of the Trade Act of 1974 (19 U.S.C. 2463(d)); and</text> </clause><clause id="ID5b525b32dc504464b6eb335e481c58ef"><enum>(iv)</enum><text>General Note 3(a)(iv) to the Harmonized Tariff Schedule.</text> </clause></subparagraph><subparagraph id="IDca7ee2b6f8594678b8f49d2c7388532f"><enum>(D)</enum><header>Quota entry period</header><text>When a quota is established under this subsection, cotton may be entered under the quota during the 90-day period beginning on the date the quota is established by the Secretary.</text> </subparagraph></paragraph><paragraph id="IDe5ce9c4838d4469c839ed29782c39295"><enum>(3)</enum><header>No overlap</header><text>Notwithstanding paragraph (2), a quota period may not be established that overlaps an existing quota period or a special quota period established under subsection (a).</text> </paragraph></subsection><subsection id="id89075f885a47412ca289d90c92dc97c9"><enum>(c)</enum><header>Economic adjustment assistance to users of upland cotton</header> <paragraph id="idd08d6352801c4bd69ba0756716a2f909"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), the Secretary shall, on a monthly basis, make economic adjustment assistance available to domestic users of upland cotton in the form of payments for all documented use of that upland cotton during the previous monthly period regardless of the origin of the upland cotton.</text> </paragraph><paragraph id="ide4cb437d6c864dc78e526460a0698e11"><enum>(2)</enum><header>Value of assistance</header><text>Effective beginning on August 1, 2012, the value of the assistance provided under paragraph (1) shall be 3 cents per pound.</text> </paragraph><paragraph id="ida62206fe0e04461387409b728fb8ee3b"><enum>(3)</enum><header>Allowable purposes</header><text>Economic adjustment assistance under this subsection shall be made available only to domestic users of upland cotton that certify that the assistance shall be used only to acquire, construct, install, modernize, develop, convert, or expand land, plant, buildings, equipment, facilities, or machinery.</text> </paragraph><paragraph id="id0061a68d95a3471d873bd8910480e393"><enum>(4)</enum><header>Review or audit</header><text>The Secretary may conduct such review or audit of the records of a domestic user under this subsection as the Secretary determines necessary to carry out this subsection.</text> </paragraph><paragraph id="idf5b424145600471b83b957d517001c63"><enum>(5)</enum><header>Improper use of assistance</header><text>If the Secretary determines, after a review or audit of the records of the domestic user, that economic adjustment assistance under this subsection was not used for the purposes specified in paragraph (3), the domestic user shall be—</text> <subparagraph id="idafadfb2eb5614fc6bdf81272ad56470f"><enum>(A)</enum><text>liable for the repayment of the assistance to the Secretary, plus interest, as determined by the Secretary; and</text> </subparagraph><subparagraph id="idf6d4a99085134d50b340c8ace6aadecf"><enum>(B)</enum><text>ineligible to receive assistance under this subsection for a period of 1 year following the determination of the Secretary.</text> </subparagraph></paragraph></subsection></section><section id="IDf5dcaf73cb454013941a7f6271d12ba9"><enum>1208.</enum><header>Special competitive provisions for extra long staple cotton</header> <subsection id="ID584b470c94be4752aedaf0b0f838e3f5"><enum>(a)</enum><header>Competitiveness program</header><text>Notwithstanding any other provision of law, during the period beginning on the date of enactment of this Act through July 31, 2018, the Secretary shall carry out a program—</text> <paragraph id="ID994a0270512f48abba461598c78e3d11"><enum>(1)</enum><text>to maintain and expand the domestic use of extra long staple cotton produced in the United States;</text> </paragraph><paragraph id="ID33346b384f7d4d908435e8067a1fb19e"><enum>(2)</enum><text>to increase exports of extra long staple cotton produced in the United States; and</text> </paragraph><paragraph id="ID5631360450dd4bee87af3fa8ecf42555"><enum>(3)</enum><text>to ensure that extra long staple cotton produced in the United States remains competitive in world markets.</text> </paragraph></subsection><subsection id="IDc1ab7044422340908c0704b0b14a01af"><enum>(b)</enum><header>Payments under program; trigger</header><text>Under the program, the Secretary shall make payments available under this section whenever—</text> <paragraph id="IDe2183b2c8dc3464587504dd2ca599699"><enum>(1)</enum><text>for a consecutive 4-week period, the world market price for the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is below the prevailing United States price for a competing growth of extra long staple cotton; and</text> </paragraph><paragraph id="ID484f7eefe4a0491a9c0204dced2664f0"><enum>(2)</enum><text>the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is less than 134 percent of the loan rate for extra long staple cotton.</text> </paragraph></subsection><subsection id="ID1b19ae1fe43842158cd9b91c87df8ff6"><enum>(c)</enum><header>Eligible recipients</header><text>The Secretary shall make payments available under this section to domestic users of extra long staple cotton produced in the United States and exporters of extra long staple cotton produced in the United States that enter into an agreement with the Commodity Credit Corporation to participate in the program under this section.</text> </subsection><subsection id="IDfd2b021b82bc4fe0ba2632fc1154be83"><enum>(d)</enum><header>Payment amount</header><text>Payments under this section shall be based on the amount of the difference in the prices referred to in subsection (b)(1) during the fourth week of the consecutive 4-week period multiplied by the amount of documented purchases by domestic users and sales for export by exporters made in the week following such a consecutive 4-week period.</text> </subsection></section><section id="ID3a780db4530147f7b38043cede736059"><enum>1209.</enum><header>Availability of recourse loans for high moisture feed grains and seed cotton</header> <subsection id="ID6ae9e77b589b4a3baef9fc5113738080"><enum>(a)</enum><header>High moisture feed grains</header> <paragraph id="ID9dda694c84c046abb4f27c5863b4ef4b"><enum>(1)</enum><header>Definition of high moisture state</header><text>In this subsection, the term <term>high moisture state</term> means corn or grain sorghum having a moisture content in excess of Commodity Credit Corporation standards for marketing assistance loans made by the Secretary under section 1201.</text> </paragraph><paragraph id="IDd676cb8dc2f94d418e5b72da00ac7279"><enum>(2)</enum><header>Recourse loans available</header><text>For each of the 2013 through 2017 crops of corn and grain sorghum, the Secretary shall make available recourse loans, as determined by the Secretary, to producers on a farm that—</text> <subparagraph id="ID056f62af857d41dc996430fcf7b7a475"><enum>(A)</enum><text>normally harvest all or a portion of their crop of corn or grain sorghum in a high moisture state;</text> </subparagraph><subparagraph id="ID243e8ccd935c4df8b10c611e11864329"><enum>(B)</enum><text>present—</text> <clause id="ID6231e15138b04b2d9719194d20c458f8"><enum>(i)</enum><text>certified scale tickets from an inspected, certified commercial scale, including a licensed warehouse, feedlot, feed mill, distillery, or other similar entity approved by the Secretary, pursuant to regulations issued by the Secretary; or</text> </clause><clause id="ID4d01430d253b49c8a24f294798eb1551"><enum>(ii)</enum><text>field or other physical measurements of the standing or stored crop in regions of the United States, as determined by the Secretary, that do not have certified commercial scales from which certified scale tickets may be obtained within reasonable proximity of harvest operation;</text> </clause></subparagraph><subparagraph id="IDf53aa34bb8ff4237932b9269e3c40a59"><enum>(C)</enum><text>certify that the producers on the farm were the owners of the feed grain at the time of delivery to, and that the quantity to be placed under loan under this subsection was in fact harvested on the farm and delivered to, a feedlot, feed mill, or commercial or on-farm high-moisture storage facility, or to a facility maintained by the users of corn and grain sorghum in a high moisture state; and</text> </subparagraph><subparagraph id="IDdf06371f81d349bd9049863f34d8cad9"><enum>(D)</enum><text>comply with deadlines established by the Secretary for harvesting the corn or grain sorghum and submit applications for loans under this subsection within deadlines established by the Secretary.</text> </subparagraph></paragraph><paragraph id="ID02131998e9db452985ee1a9bf28f6af7"><enum>(3)</enum><header>Eligibility of acquired feed grains</header><text>A loan under this subsection shall be made on a quantity of corn or grain sorghum of the same crop acquired by the producer equivalent to a quantity determined by multiplying—</text> <subparagraph id="IDa7f336c103b647b4a05ad55956ab6166"><enum>(A)</enum><text>the acreage of the corn or grain sorghum in a high moisture state harvested on the farm of the producer; by</text> </subparagraph><subparagraph id="ID3305dbf84ca140b3b4696d59a6e737bd"><enum>(B)</enum><text>the lower of the actual average yield used to make payments under subtitle A or the actual yield on a field, as determined by the Secretary, that is similar to the field from which the corn or grain sorghum was obtained.</text> </subparagraph></paragraph></subsection><subsection id="ID0cfab5c2913b40078186b0c93f25cadd"><enum>(b)</enum><header>Recourse loans available for seed cotton</header><text>For each of the 2013 through 2017 crops of upland cotton and extra long staple cotton, the Secretary shall make available recourse seed cotton loans, as determined by the Secretary, on any production.</text> </subsection><subsection id="IDe3a39daec2d749059f88da1ec223b4f6"><enum>(c)</enum><header>Repayment rates</header><text>Repayment of a recourse loan made under this section shall be at the loan rate established for the commodity by the Secretary, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).</text> </subsection></section><section id="IDcefb95f686fb47f6b283b5abdf17088c"><enum>1210.</enum><header>Adjustments of loans</header> <subsection id="ID375d5a624a4741759be2bc1cfc0583cd"><enum>(a)</enum><header>Adjustment authority</header><text>Subject to subsection (e), the Secretary may make appropriate adjustments in the loan rates for any loan commodity (other than cotton) for differences in grade, type, quality, location, and other factors.</text> </subsection><subsection id="ID4c3646023cb7474b9d7c4000adf7f76f"><enum>(b)</enum><header>Manner of adjustment</header><text>The adjustments under subsection (a) shall, to the maximum extent practicable, be made in such a manner that the average loan level for the commodity will, on the basis of the anticipated incidence of the factors, be equal to the level of support determined in accordance with this subtitle and subtitles C through E.</text> </subsection><subsection id="IDf476562d5c374b46bc71e3c0b68f0aa2"><enum>(c)</enum><header>Adjustment on county basis</header> <paragraph id="ID07adee154d454ef1b09dcd9ec02b7615"><enum>(1)</enum><header>In general</header><text>The Secretary may establish loan rates for a crop for producers in individual counties in a manner that results in the lowest loan rate being 95 percent of the national average loan rate, if those loan rates do not result in an increase in outlays.</text> </paragraph><paragraph id="ID57ffd6e2a1874cf6959f597e7719f4a6"><enum>(2)</enum><header>Prohibition</header><text>Adjustments under this subsection shall not result in an increase in the national average loan rate for any year.</text> </paragraph></subsection><subsection id="ID8bdeafe7279643779325261bf79e7e5e"><enum>(d)</enum><header>Adjustment in loan rate for cotton</header> <paragraph id="ID086421a5a3004a6b9f00b22f4970c391"><enum>(1)</enum><header>In general</header><text>The Secretary may make appropriate adjustments in the loan rate for cotton for differences in quality factors.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDF1722A5F69A14C6FB2E0AE885B4AF0C3"><enum>(2)</enum><header display-inline="yes-display-inline">Revisions to quality adjustments for upland cotton</header> <subparagraph commented="no" display-inline="no-display-inline" id="ID13D76D2966464B9592A13FF170EFB1D4"><enum>(A)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary shall implement revisions in the administration of the marketing assistance loan program for upland cotton to more accurately and efficiently reflect market values for upland cotton.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID29FE1AC7FA6F451F8CAC5F974957946A"><enum>(B)</enum><header>Mandatory revisions</header><text>Revisions under subparagraph (A) shall include—</text> <clause id="IDB3F1F178C6AF45739AFA26D002D88BB4"><enum>(i)</enum><text>the elimination of warehouse location differentials;</text> </clause><clause id="IDCA45334FC1FD4C1988CCCED02BA43C38"><enum>(ii)</enum><text>the establishment of differentials for the various quality factors and staple lengths of cotton based on a 3-year, weighted moving average of the weighted designated spot market regions, as determined by regional production;</text> </clause><clause id="IDA27C0F1AEF1C4AE98C928DA0C15938FE"><enum>(iii)</enum><text>the elimination of any artificial split in the premium or discount between upland cotton with a 32 or 33 staple length due to micronaire; and</text> </clause><clause id="ID7CB8DEEAB6634FC68CC4A49CA5DF9096"><enum>(iv)</enum><text>a mechanism to ensure that no premium or discount is established that exceeds the premium or discount associated with a leaf grade that is 1 better than the applicable color grade.</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID64B4B96D433F49B184C7BEBE5075CF5F"><enum>(C)</enum><header>Discretionary revisions</header><text>Revisions under subparagraph (A) may include—</text> <clause id="IDCAECB31BC8D34CACB16C27B06674FD1D"><enum>(i)</enum><text>the use of non-spot market price data, in addition to spot market price data, that would enhance the accuracy of the price information used in determining quality adjustments under this subsection;</text> </clause><clause id="ID89A78E38C61748D6BFE138D335E00ACE"><enum>(ii)</enum><text>adjustments in the premiums or discounts associated with upland cotton with a staple length of 33 or above due to micronaire with the goal of eliminating any unnecessary artificial splits in the calculations of the premiums or discounts; and</text> </clause><clause id="ID4D5FD73F57A449F095C0B56251F22729"><enum>(iii)</enum><text>such other adjustments as the Secretary determines appropriate, after consultations conducted in accordance with paragraph (3).</text> </clause></subparagraph></paragraph><paragraph id="ID9e45bc130c794e7eb1abeaa9aae9ea27"><enum>(3)</enum><header>Consultation with private sector</header> <subparagraph id="IDbe907e0f781145b3871fda68ea8f2ff6"><enum>(A)</enum><header>Prior to revision</header><text>In making adjustments to the loan rate for cotton (including any review of the adjustments) as provided in this subsection, the Secretary shall consult with representatives of the United States cotton industry.</text> </subparagraph><subparagraph id="IDe599e226786c48388feb5fe18783a139"><enum>(B)</enum><header>Inapplicability of Federal Advisory Committee Act</header><text>The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to consultations under this subsection.</text> </subparagraph></paragraph><paragraph id="ID7c6ea64266134b92b76284df934c3b4a"><enum>(4)</enum><header>Review of adjustments</header><text>The Secretary may review the operation of the upland cotton quality adjustments implemented pursuant to this subsection and may make further revisions to the administration of the loan program for upland cotton, by—</text> <subparagraph id="IDfc9f2a33e5704381830cae257fe015e3"><enum>(A)</enum><text>revoking or revising any actions taken under paragraph (2)(B); or</text> </subparagraph><subparagraph id="ID7719bfd8ec864ab6a06cd464bbd6acd4"><enum>(B)</enum><text>revoking or revising any actions taken or authorized to be taken under paragraph (2)(C).</text> </subparagraph></paragraph></subsection><subsection id="IDdd6c75b9fe35417eb75c59b1bfeda1eb"><enum>(e)</enum><header>Rice</header><text>The Secretary shall not make adjustments in the loan rates for long grain rice and medium grain rice, except for differences in grade and quality (including milling yields).</text> </subsection></section></subtitle><subtitle id="id03FFDCC1B9434736BD08CD42EC2776D9"><enum>C</enum><header>Sugar</header> <section id="idD919B960ED7F43E3854AA045BB76BE21"><enum>1301.</enum><header>Sugar program</header> <subsection id="IDb083f85ccda742c5898d30261f84f0b3"><enum>(a)</enum><header>Continuation of current program and loan rates</header> <paragraph id="IDa7f7e958d29040eaa647f78383c9acf5"><enum>(1)</enum><header>Sugarcane</header><text>Section 156(a)(5) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(a)(5)) is amended by striking <quote>the 2012 crop year</quote> and inserting <quote>each of the 2012 through 2017 crop years</quote>.</text> </paragraph><paragraph id="ID6f5112e307ef440a833fb8ed15e0c60c"><enum>(2)</enum><header>Sugar beets</header><text>Section 156(b)(2) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(b)(2)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph><paragraph id="ID744bfc26bb6344da9ef0294a9eb03bdf"><enum>(3)</enum><header>Effective period</header><text>Section 156(i) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(i)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph></subsection><subsection id="ID45c9b13272074f5685ab1bef4115d617"><enum>(b)</enum><header>Flexible marketing allotments for sugar</header> <paragraph id="ID78e5fffc213142b694a71eb0d2ab4dc5"><enum>(1)</enum><header>Sugar estimates</header><text>Section 359b(a)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph><paragraph id="id82FCE96FED644B6E800EB89EC59C52B4"><enum>(2)</enum><header>Sugar import quota adjustment date</header><text>Section 359k(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk(b)) is amended—</text> <subparagraph id="id86F3F3AF06E04227A2B3916489AF1945"><enum>(A)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">April 1</header-in-text></quote> each place it appears and inserting <quote><header-in-text level="paragraph" style="OLC">February 1</header-in-text></quote>; and</text> </subparagraph><subparagraph id="idC01FDD1B6E04450B9E74FF98986675AC"><enum>(B)</enum><text>by striking <quote>April 1</quote> each place it appears and inserting <quote>February 1</quote>.</text> </subparagraph></paragraph><paragraph id="IDf0c85bfad65048409fd31876b736c578"><enum>(3)</enum><header>Effective period</header><text>Section 359l(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph></subsection></section></subtitle><subtitle id="HC0799A848CCE43DB9EE692502BF07036"><enum>D</enum><header>Dairy</header> <part id="HBF0FF351F423411CA0734F07C07538AA"><enum>I</enum><header>Dairy production margin protection and dairy market stabilization programs</header> <section id="HF6D8E78700FF4CDCBDC2D45253DB94D6"><enum>1401.</enum><header>Definitions</header><text display-inline="no-display-inline">In this part:</text> <paragraph id="H2F4DD9D6783A4F5DAA1FF43253C0318F"><enum>(1)</enum><header>Actual dairy production margin</header><text>The term <term>actual dairy production margin</term> means the difference between the all-milk price and the average feed cost, as calculated under section 1402.</text> </paragraph><paragraph id="H52F99218259241EFAE4EEC11CB1C5890"><enum>(2)</enum><header>All-milk price</header><text>The term <term>all-milk price</term> means the average price received, per hundredweight of milk, by dairy operations for all milk sold to plants and dealers in the United States, as determined by the Secretary.</text> </paragraph><paragraph id="H283BA85E523B494EB8DDFD1F31C6D48D"><enum>(3)</enum><header>Annual production history</header><text>The term <term>annual production history</term> means the production history determined for a participating dairy operation under section 1413(b) whenever the participating dairy operation purchases supplemental production margin protection.</text> </paragraph><paragraph id="HB11A1158CAA740D0B0B928C6B6F262C8"><enum>(4)</enum><header>Average feed cost</header><text>The term <term>average feed cost</term> means the average cost of feed used by a dairy operation to produce a hundredweight of milk, determined under section 1402 using the sum of the following:</text> <subparagraph id="H74E96B902C2E43A38852DEC5001B6776"><enum>(A)</enum><text>The product determined by multiplying 1.0728 by the price of corn per bushel.</text> </subparagraph><subparagraph id="HAF91500EF488462D8615DC8D2E6F61B7"><enum>(B)</enum><text>The product determined by multiplying 0.00735 by the price of soybean meal per ton.</text> </subparagraph><subparagraph id="H0352172D2F204F55A4F245E3D3F0430D"><enum>(C)</enum><text>The product determined by multiplying 0.0137 by the price of alfalfa hay per ton.</text> </subparagraph></paragraph><paragraph id="H945549BB7A2F4118B9354BF59241F05D"><enum>(5)</enum><header>Basic production history</header><text>The term <term>basic production history</term> means the production history determined for a participating dairy operation under section 1413(a) for provision of basic production margin protection.</text> </paragraph><paragraph id="HA2D2A8E19F7E49CB970DEF3122550903"><enum>(6)</enum><header>Consecutive 2-month period</header><text>The term <term>consecutive 2-month period</term> refers to the 2-month period consisting of the months of January and February, March and April, May and June, July and August, September and October, or November and December, respectively.</text> </paragraph><paragraph id="ided728171837545f7ad23a63d250239ce"><enum>(7)</enum><header>Dairy operation</header> <subparagraph id="id053976548AC044AABA52EFC8451DCC72"><enum>(A)</enum><header>In general</header><text>The term <term>dairy operation</term> means, as determined by the Secretary, 1 or more dairy producers that produce and market milk as a single dairy operation in which each dairy producer—</text> <clause id="idda7665994ebf44a3b98dbfd157846812"><enum>(i)</enum><text>shares in the pooling of resources and a common ownership structure;</text> </clause><clause id="id55649add0fe044c9936b3a2222e9e4b3"><enum>(ii)</enum><text>is at risk in the production of milk on the dairy operation; and</text> </clause><clause id="idd97d7436048746918703908b55d9012c"><enum>(iii)</enum><text>contributes land, labor, management, equipment, or capital to the dairy operation.</text> </clause></subparagraph><subparagraph commented="no" id="HACF7EECA742349F5A718E247D340C15B"><enum>(B)</enum><header>Additional ownership structures</header><text>The Secretary shall determine additional ownership structures to be covered by the definition of dairy operation.</text> </subparagraph></paragraph><paragraph id="H8D95DAFA7CD44B21860044B4E80283F7"><enum>(8)</enum><header>Handler</header> <subparagraph id="H6C772A22C2B24F5CB409B564315CEFB7"><enum>(A)</enum><header>In general</header><text>The term <term>handler</term> means the initial individual or entity making payment to a dairy operation for milk produced in the United States and marketed for commercial use.</text> </subparagraph><subparagraph id="H8DF2DF7C1A7B4D6491A8BDA78C263F8C"><enum>(B)</enum><header>Producer-handler</header><text>The term includes a <term>producer-handler</term> when the producer satisfies the definition in subparagraph (A).</text> </subparagraph></paragraph><paragraph id="H389776034709443D83827B3FA19F4F3D"><enum>(9)</enum><header>Participating dairy operation</header><text>The term <term>participating dairy operation</term> means a dairy operation that—</text> <subparagraph id="HAC1FC500DA9C46908C36B19CC9CD1EC6"><enum>(A)</enum><text>signs up under section 1412 to participate in the production margin protection program under subpart A; and</text> </subparagraph><subparagraph id="H1CF5959164124CA4A5707283B3056864"><enum>(B)</enum><text>as a result, also participates in the stabilization program under subpart B.</text> </subparagraph></paragraph><paragraph id="H20B163C4183C4F66A0CDC16DAB1D994B"><enum>(10)</enum><header>Production margin protection program</header><text>The term <term>production margin protection program</term> means the dairy production margin protection program required by subpart A.</text> </paragraph><paragraph id="H6F69C9F2ADC64A45A55F8DB56A2DD23F"><enum>(11)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Agriculture.</text> </paragraph><paragraph id="H1E890D8DEF074A99BD41303972AFD837"><enum>(12)</enum><header>Stabilization program</header><text>The term <term>stabilization program</term> means the dairy market stabilization program required by subpart B for all participating dairy operations.</text> </paragraph><paragraph id="HE5D4592D6E9549A6BA3C7A6805B50B16"><enum>(13)</enum><header>Stabilization program base</header><text>The term <term>stabilization program base</term>, with respect to a participating dairy operation, means the stabilization program base calculated for the participating dairy operation under section 1431(b).</text> </paragraph><paragraph id="H85A81620831840DA98EB42817E401AA3"><enum>(14)</enum><header>United States</header><text>The term <term>United States</term>, in a geographical sense, means the 50 States, the District of Columbia, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, the Virgin Islands of the United States, and any other territory or possession of the United States.</text> </paragraph></section><section id="H9F1DFEBC5FD54D71AC9346A53038164F"><enum>1402.</enum><header>Calculation of average feed cost and actual dairy production margins</header> <subsection id="HD805426AF0BB424AA1F9FD8BC9856EB8"><enum>(a)</enum><header>Calculation of average feed cost</header><text>The Secretary shall calculate the national average feed cost for each month using the following data:</text> <paragraph id="H0770AFAC477543F996BDA85570A9FEC6"><enum>(1)</enum><text>The price of corn for a month shall be the price received during that month by farmers in the United States for corn, as reported in the monthly Agricultural Prices report by the Secretary.</text> </paragraph><paragraph id="H1E115BE2BA904694AA67FFB85EF4DF79"><enum>(2)</enum><text display-inline="yes-display-inline">The price of soybean meal for a month shall be the central Illinois price for soybean meal, as reported in the Market News–Monthly Soybean Meal Price Report by the Secretary.</text> </paragraph><paragraph id="H786520C93271452BB77D0AC3E5207201"><enum>(3)</enum><text display-inline="yes-display-inline">The price of alfalfa hay for a month shall be the price received during that month by farmers in the United States for alfalfa hay, as reported in the monthly Agricultural Prices report by the Secretary.</text> </paragraph></subsection><subsection id="HFD4EFA2617D348F5B44938CA4385E12B"><enum>(b)</enum><header>Calculation of actual dairy production margins</header> <paragraph id="H8663A4F99F3C40198D55FBE4DEFA7179"><enum>(1)</enum><header>Production margin protection program</header><text>For use in the production margin protection program under subpart A, the Secretary shall calculate the actual dairy production margin for each consecutive 2-month period by subtracting—</text> <subparagraph id="H5996184AC451408B934BAB50476CAE10"><enum>(A)</enum><text>the average feed cost for that consecutive 2-month period, determined in accordance with subsection (a); from</text> </subparagraph><subparagraph id="HBE5699DBECB5443B9E7CC06AAFAB79F2"><enum>(B)</enum><text>the all-milk price for that consecutive 2-month period.</text> </subparagraph></paragraph><paragraph id="H47051AEBCBD7452BA875ABFA1E24FB31"><enum>(2)</enum><header>Stabilization program</header><text>For use in the stabilization program under subpart B, the Secretary shall calculate each month the actual dairy production margin for the preceding month by subtracting—</text> <subparagraph id="H09535344576242E588BB6F4B06890986"><enum>(A)</enum><text>the average feed cost for that preceding month, determined in accordance with subsection (a); from</text> </subparagraph><subparagraph id="H13EC19604A4E4F7F8554AC7655945A36"><enum>(B)</enum><text>the all-milk price for that preceding month.</text> </subparagraph></paragraph><paragraph id="H06363DD2A7AD4F5BBAAC4777EE109835"><enum>(3)</enum><header>Time for calculations</header><text>The calculations required by paragraphs (1) and (2) shall be made as soon as practicable using the full month price of the applicable reference month.</text> </paragraph></subsection></section><subpart id="HAD5078B3B79A48D8B914078D8790DC17"><enum>A</enum><header>Dairy production margin protection program</header> <section id="HD5F73B9453C94D03BBA84880D6D299A0"><enum>1411.</enum><header>Establishment of dairy production margin protection program</header><text display-inline="no-display-inline">Effective not later than 120 days after the effective date of this subtitle, the Secretary shall establish and administer a dairy production margin protection program under which participating dairy operations are paid—</text> <paragraph id="HA23652025591426D949818ED9CF2FBFB"><enum>(1)</enum><text>basic production margin protection program payments under section 1414 when actual dairy production margins are less than the threshold levels for such payments; and</text> </paragraph><paragraph id="HCA7475F37D604799ACB33714BE15E077"><enum>(2)</enum><text>supplemental production margin protection program payments under section 1415 if purchased by a participating dairy operation.</text> </paragraph></section><section id="H627796F99FEA48598A9A200F5B018945"><enum>1412.</enum><header>Participation of dairy operations in production margin protection program</header> <subsection id="H28E2DD70FEA247FE92B65CCF65582B91"><enum>(a)</enum><header>Eligibility</header><text display-inline="yes-display-inline">All dairy operations in the United States shall be eligible to participate in the production margin protection program, except that a participating dairy operation shall be required to register with the Secretary before the participating dairy operation may receive—</text> <paragraph id="H790FDF259D61432A9EBF0BD25DEF1BB5"><enum>(1)</enum><text>basic production margin protection program payments under section 1414; and</text> </paragraph><paragraph id="H1C8D40AF11344721A58C7141EFE52B75"><enum>(2)</enum><text display-inline="yes-display-inline">if the participating dairy operation purchases supplemental production margin protection under section 1415, supplemental production margin protection program payments under such section.</text> </paragraph></subsection><subsection id="HC2FF3B079E2C4992A78F69E5EB94D723"><enum>(b)</enum><header>Registration process</header> <paragraph id="id689A5DA2601F4C668C74F16CEE6E0388"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall specify the manner and form by which a participating dairy operation may register to participate in the production margin protection program.</text> </paragraph><paragraph id="iddd86c235eddf481a8897a7afa587a948"><enum>(2)</enum><header>Treatment of multiproducer dairy operations</header><text>If a participating dairy operation is operated by more than 1 dairy producer, all of the dairy producers of the participating dairy operation shall be treated as a single dairy operation for purposes of—</text> <subparagraph id="id9a842ba1697043e495278f88ecd63bd2"><enum>(A)</enum><text>registration to receive basic production margin protection and election to purchase supplemental production margin protection;</text> </subparagraph><subparagraph id="id9afa7a2acccf47ccb3d388b9c8cf63ae"><enum>(B)</enum><text>payment of the participation fee under subsection (d) and producer premiums under section 1415; and</text> </subparagraph><subparagraph id="idb6f2775ba5ba44fe9da216e1367aae3a"><enum>(C)</enum><text>participation in the stabilization program under subtitle B.</text> </subparagraph></paragraph><paragraph id="id31cfdcbc5c1846679fe72168cd4103d9"><enum>(3)</enum><header>Treatment of producers with multiple dairy operations</header><text>If a dairy producer operates 2 or more dairy operations, each dairy operation of the producer shall separately register to receive basic production margin protection and purchase supplemental production margin protection and only those dairy operations so registered shall be covered by the stabilization program.</text> </paragraph></subsection><subsection id="H2F9F7901FA1B4A929755C58C7219A2FF"><enum>(c)</enum><header>Time for registration</header> <paragraph id="H55D8E5F006B64EE4A7231F676DF88281"><enum>(1)</enum><header>Existing dairy operations</header><text display-inline="yes-display-inline">During the 15-month period beginning on the date of the initiation of the registration period for the production margin protection program, a dairy operation that is actively engaged as of such date may register with the Secretary—</text> <subparagraph id="HD7D1C732CC4745E9BFE86BC1E86AAFE1"><enum>(A)</enum><text>to receive basic production margin protection; and</text> </subparagraph><subparagraph id="HA9C42EA3E3494173865A56D5ED739C2E"><enum>(B)</enum><text>if the dairy operation elects, to purchase supplemental production margin protection.</text> </subparagraph></paragraph><paragraph commented="no" id="HE99DC15CABE74D37BDDF9D6F77E64B2B"><enum>(2)</enum><header>New Entrants</header><text display-inline="yes-display-inline">A dairy producer that has no existing interest in a dairy operation as of the date of the initiation of the registration period for the production margin protection program, but that, after such date, establishes a new dairy operation, may register with the Secretary during the 1-year period beginning on the date on which the dairy operation first markets milk commercially—</text> <subparagraph commented="no" id="H4288F79696034BDA9221AE164429A80F"><enum>(A)</enum><text>to receive basic production margin protection; and</text> </subparagraph><subparagraph commented="no" id="H9BB4FAA33B414044B6A5C05103591744"><enum>(B)</enum><text>if the dairy operation elects, to purchase supplemental production margin protection.</text> </subparagraph></paragraph></subsection><subsection id="HF93868B257A3497A8C8C429665914715"><enum>(d)</enum><header>Transition from MILC to production margin protection</header> <paragraph id="id7418C705100E4A60B6D274BE2435653C"><enum>(1)</enum><header>Definition of transition period</header><text>In this subsection, the term <term>transition period</term> means the period during which the milk income loss program established under section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) and the production margin protection program under this subtitle are both in existence.</text> </paragraph><paragraph id="HE30A9B3F50AA4322AD8CEE76FBFD2583"><enum>(2)</enum><header>Notice of availability</header><text display-inline="yes-display-inline">Not later than 30 days after the date of enactment of this Act, the Secretary shall publish a notice in the Federal Register to inform dairy operations of the availability of basic production margin protection and supplemental production margin protection, including the terms of the protection and information about the option of dairy operations during the transition period to make an election described in paragraph (3).</text> </paragraph><paragraph id="idADC995F4328848BF962D12DEEF1C8CFF"><enum>(3)</enum><header>Election</header><text display-inline="yes-display-inline">Except as provided in paragraph (4), a dairy operation may elect to participate in either the milk income loss program established under section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) or the production margin protection program under this subtitle for the duration of the transition period.</text> </paragraph><paragraph id="id18DDA38C347D4992B2C375C5ED7854AC"><enum>(4)</enum><header>Transfer to production margin protection</header><text>A dairy operation that elects to participate in the milk income loss program established under section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) during the transition period may, at any time, make a permanent transfer to the production margin protection program.</text> </paragraph></subsection><subsection id="H2C478E9A9560436CA2A21CB0967E7D8E"><enum>(e)</enum><header>Administration fee</header> <paragraph id="H8C9902DF6A9C494DB145110148C25138"><enum>(1)</enum><header>Administration fee required</header><text display-inline="yes-display-inline">Except as provided in paragraph (5), a participating dairy operation shall—</text> <subparagraph id="id2EAFC83D48764DAAA3BA525CD2CE39EA"><enum>(A)</enum><text display-inline="yes-display-inline">pay an administration fee under this subsection to register to participate in the production margin protection program; and</text> </subparagraph><subparagraph id="id5F5C90C5D54543C69D3978D5138B0036"><enum>(B)</enum><text display-inline="yes-display-inline">pay the administration fee annually thereafter to continue to participate in the production margin protection program.</text> </subparagraph></paragraph><paragraph id="H31AAE084C8414C9DA33868AA7B77D2A2"><enum>(2)</enum><header>Fee amount</header><text display-inline="yes-display-inline">The administration fee for a participating dairy operation for a calendar year shall be based on the pounds of milk (in millions) marketed by the participating dairy operation in the previous calendar year, as follows:</text> <table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 2 text, even cols" table-type=""> <tgroup cols="2" grid-typeface="1.1" no-carding="1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec align="center" coldef="fig" colname="column1" colwidth="106pts" min-data-value="19" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="column2" colwidth="106pts" min-data-value="19" rowsep="0"></colspec> <thead> <row><entry align="center" colname="column1" morerows="0" namest="column1" rowsep="1">Pounds Marketed (in millions)</entry><entry align="center" colname="column2" morerows="0" namest="column2" rowsep="1">Administration Fee</entry> </row> </thead> <tbody> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">less than 1</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$100</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">1 to 5 </entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$250</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">more than 5 to 10</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$350</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">more than 10 to 40</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$1,000</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">more than 40</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$2,500</entry> </row> </tbody> </tgroup> </table> </paragraph><paragraph id="HE259085044514F7BBEA3E585E192F0AC"><enum>(3)</enum><header>Deposit of Fees</header><text display-inline="yes-display-inline">All administration fees collected under this subsection shall be credited to the fund or account used to cover the costs incurred to administer the production margin protection program and the stabilization program and shall be available to the Secretary, without further appropriation and until expended, for use or transfer as provided in paragraph (4).</text> </paragraph><paragraph id="H75701BF4C452476D84AACFBDBAB415E5"><enum>(4)</enum><header>Use of Fees</header><text display-inline="yes-display-inline">The Secretary shall use administration fees collected under this subsection—</text> <subparagraph id="H244232D9FAAF46FA849C6FF13FE60228"><enum>(A)</enum><text>to cover administrative costs of the production margin protection program and stabilization program; and</text> </subparagraph><subparagraph id="HFECE8E4B232B43D5ACDD54EC503F89FA"><enum>(B)</enum><text display-inline="yes-display-inline">to cover costs of the Department of Agriculture relating to reporting of dairy market news, carrying out the amendments made by section 1476, and carrying out section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b)), to the extent funds remain available after operation of subparagraph (A).</text> </subparagraph></paragraph><paragraph id="id74A1274092FD476A9B63DE01C0611E97"><enum>(5)</enum><header>Waiver</header><text>The Secretary shall waive or reduce the administration fee required under paragraph (1) in the case of a limited-resource dairy operation, as defined by the Secretary.</text> </paragraph></subsection><subsection id="idC08BE55E43AD4771B985B5E34BDE9446"><enum>(f)</enum><header>Limitation</header><text>A dairy operation may only participate in the production margin protection program or the livestock gross margin for dairy program under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), but not both.</text> </subsection></section><section id="H75B9C971CC394710BAD30BFD88BC20C9"><enum>1413.</enum><header>Production history of participating dairy operations</header> <subsection id="H24AE7B52A7F2418199D16EF5A315A2CD"><enum>(a)</enum><header>Production history for basic production margin protection</header> <paragraph id="HA554E655E13B4A77A9FEA55DC923A637"><enum>(1)</enum><header>Determination required</header><text display-inline="yes-display-inline">For purposes of providing basic production margin protection, the Secretary shall determine the basic production history of a participating dairy operation.</text> </paragraph><paragraph commented="no" id="H968F8C3EC7ED4D20A1E801B2374B5C23"><enum>(2)</enum><header>Calculation</header><text display-inline="yes-display-inline">Except as provided in paragraph (3), the basic production history of a participating dairy operation for basic production margin protection is equal to the highest annual milk marketings of the participating dairy operation during any 1 of the 3 calendar years immediately preceding the calendar year in which the participating dairy operation first signed up to participate in the production margin protection program.</text> </paragraph><paragraph id="H5E1256FCFEB14A89AFDB5AD2EA6ECD19"><enum>(3)</enum><header>Election by new dairy operations</header><text display-inline="yes-display-inline">In the case of a participating dairy operation that has been in operation for less than a year, the participating dairy operation shall elect 1 of the following methods for the Secretary to determine the basic production history of the participating dairy operation:</text> <subparagraph id="HEE78E8F4B28540959D448AB9E7505D5C"><enum>(A)</enum><text>The volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount.</text> </subparagraph><subparagraph id="HD8581BFC456441539550621C4454B287"><enum>(B)</enum><text>An estimate of the actual milk marketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national rolling herd average data published by the Secretary.</text> </subparagraph></paragraph><paragraph commented="no" id="H5855FE9074524AFCB77A7B42A4C93387"><enum>(4)</enum><header>No change in production history for basic production margin protection</header><text display-inline="yes-display-inline">Once the basic production history of a participating dairy operation is determined under paragraph (2) or (3), the basic production history shall not be subsequently changed for purposes of determining the amount of any basic production margin protection payments for the participating dairy operation made under section 1414.</text> </paragraph></subsection><subsection id="HD0231925A1E04DF0B1CDDBA26AF03A6A"><enum>(b)</enum><header>Annual production history for supplemental production margin protection</header> <paragraph id="H90FF22F5CA624E79B8AFE9940F4AF34D"><enum>(1)</enum><header>Determination required</header><text display-inline="yes-display-inline">For purposes of providing supplemental production margin protection for a participating dairy operation that purchases supplemental production margin protection for a year under section 1415, the Secretary shall determine the annual production history of the participating dairy operation under paragraph (2).</text> </paragraph><paragraph commented="no" id="H8D68EB3941F64FB7B5C2BBED03C2C10F"><enum>(2)</enum><header>Calculation</header><text display-inline="yes-display-inline">The annual production history of a participating dairy operation for a year is equal to the actual milk marketings of the participating dairy operation during the preceding calendar year.</text> </paragraph><paragraph id="HA34A54BCF76F48EBA28A981EA4954298"><enum>(3)</enum><header>New dairy operations</header><text display-inline="yes-display-inline">Subsection (a)(3) shall apply with respect to determining the annual production history of a participating dairy operation that has been in operation for less than a year.</text> </paragraph></subsection><subsection id="HB16562E07EFF492F9EC4271B3C745A2E"><enum>(c)</enum><header>Required information</header><text display-inline="yes-display-inline">A participating dairy operation shall provide all information that the Secretary may require in order to establish—</text> <paragraph id="HDE341637CD684E4F94205213B696471A"><enum>(1)</enum><text display-inline="yes-display-inline">the basic production history of the participating dairy operation under subsection (a); and</text> </paragraph><paragraph id="HBF6EE4E28E284B66AE01474FD167E144"><enum>(2)</enum><text display-inline="yes-display-inline">the production history of the participating dairy operation whenever the participating dairy operation purchases supplemental production margin protection under section 1415.</text> </paragraph></subsection><subsection id="H00E4EF8A38F8482FA46ECB6ED21C1FF9"><enum>(d)</enum><header>Transfer of production histories</header> <paragraph id="H1CF038FDE3264E9E99CB04F7D1FD1B2C"><enum>(1)</enum><header>Transfer by sale or lease</header><text display-inline="yes-display-inline">In promulgating the rules to initiate the production margin protection program, the Secretary shall specify the conditions under which and the manner by which the production history of a participating dairy operation may be transferred by sale or lease.</text> </paragraph><paragraph id="HCC2016BD05584313A34E94EED1DAADC5"><enum>(2)</enum><header>Coverage level</header> <subparagraph id="HECF016F1C065495FA638019CDFBA6CD4"><enum>(A)</enum><header>Basic production margin protection</header><text display-inline="yes-display-inline">A purchaser or lessee to whom the Secretary transfers a basic production history under this subsection shall not obtain a different level of basic production margin protection than the basic production margin protection coverage held by the seller or lessor from whom the transfer was obtained.</text> </subparagraph><subparagraph id="HFF720FA3614D413389F8F94D660519D7"><enum>(B)</enum><header>Supplemental production margin protection</header><text display-inline="yes-display-inline">A purchaser or lessee to whom the Secretary transfers an annual production history under this subsection shall not obtain a different level of supplemental production margin protection coverage than the supplemental production margin protection coverage in effect for the seller or lessor from whom the transfer was obtained for the calendar year in which the transfer was made.</text> </subparagraph></paragraph></subsection><subsection id="H00CF7A933C79419AA937C2203C68C988"><enum>(e)</enum><header>Movement and transfer of production history</header> <paragraph id="H268E07E07B5C415EB97659086D21771A"><enum>(1)</enum><header>Movement and transfer authorized</header><text display-inline="yes-display-inline">Subject to paragraph (2), if a participating dairy operation moves from 1 location to another location, the participating dairy operation may transfer the basic production history and annual production history associated with the participating dairy operation.</text> </paragraph><paragraph id="H015B08517367491386685910B8BFA33F"><enum>(2)</enum><header>Notification requirement</header><text>A participating dairy operation shall notify the Secretary of any move of a participating dairy operation under paragraph (1).</text> </paragraph><paragraph id="HFDA63073902C4A9AB52D9436E38FF77F"><enum>(3)</enum><header>Subsequent occupation of vacated location</header><text display-inline="yes-display-inline">A party subsequently occupying a participating dairy operation location vacated as described in paragraph (1) shall have no interest in the basic production history or annual production history previously associated with the participating dairy operation at such location.</text> </paragraph></subsection></section><section id="H7ED93B8057454A14B5845C326F8F457C"><enum>1414.</enum><header>Basic production margin protection</header> <subsection id="H82DE99B2E8604537B2C1CEB2DEA3CC89"><enum>(a)</enum><header>Payment threshold</header><text display-inline="yes-display-inline">The Secretary shall make a payment to participating dairy operations in accordance with subsection (b) whenever the average actual dairy production margin for a consecutive 2-month period is less than $4.00 per hundredweight of milk.</text> </subsection><subsection id="H98D33B8784624335AF210AC88493FF77"><enum>(b)</enum><header>Basic production margin protection payment</header><text display-inline="yes-display-inline">The basic production margin protection payment for a participating dairy operation for a consecutive 2-month period shall be equal to the product obtained by multiplying—</text> <paragraph id="H26F6B5BEE3A44552A819A71DC160CEC2"><enum>(1)</enum><text display-inline="yes-display-inline">the difference between the average actual dairy production margin for the consecutive 2-month period and $4.00, except that, if the difference is more than $4.00, the Secretary shall use $4.00; by</text> </paragraph><paragraph id="H325D6A5C9F314F5DA0C7E98DBC490500"><enum>(2)</enum><text display-inline="yes-display-inline">the lesser of—</text> <subparagraph id="H563E0DEDC54140359708CD9B96795D86"><enum>(A)</enum><text>80 percent of the production history of the participating dairy operation, divided by 6; or</text> </subparagraph><subparagraph id="H6D42F83A84D1499CBD983D5C815AEF69"><enum>(B)</enum><text display-inline="yes-display-inline">the actual quantity of milk marketed by the participating dairy operation during the consecutive 2-month period.</text> </subparagraph></paragraph></subsection></section><section id="H7AEC059664274BA2AF21C795CD21144C"><enum>1415.</enum><header>Supplemental production margin protection</header> <subsection id="H0C2D753594D74DB1A66FC7A2A2A06AB3"><enum>(a)</enum><header>Election of supplemental production margin protection</header><text display-inline="yes-display-inline">A participating dairy operation may annually purchase supplemental production margin protection to protect, during the calendar year for which purchased, a higher level of the income of a participating dairy operation than the income level guaranteed by basic production margin protection under section 1414.</text> </subsection><subsection id="H1C15C838FE38474FA7F8A1FDD38090E8"><enum>(b)</enum><header>Selection of payment threshold</header><text display-inline="yes-display-inline">A participating dairy operation purchasing supplemental production margin protection for a year shall elect a coverage level that is higher, in any increment of $0.50, than the payment threshold for basic production margin protection specified in section 1414(a), but not to exceed $8.00.</text> </subsection><subsection id="H13E8F4FECDC043659222C77F9BFCD261"><enum>(c)</enum><header>Coverage percentage</header><text display-inline="yes-display-inline">A participating dairy operation purchasing supplemental production margin protection for a year shall elect a percentage of coverage equal to not more than 90 percent, nor less than 25 percent, of the annual production history of the participating dairy operation.</text> </subsection><subsection id="H8AB1D1F83F8B44C9B30CADCF02F41411"><enum>(d)</enum><header>Premiums for supplemental production margin protection</header> <paragraph id="H1062CE26EA184FB59D27F74332C54D5B"><enum>(1)</enum><header>Premiums required</header><text display-inline="yes-display-inline">A participating dairy operation that purchases supplemental production margin protection shall pay an annual premium equal to the product obtained by multiplying—</text> <subparagraph id="H7BB45A1874564FF89E60319FE7B4A199"><enum>(A)</enum><text>the coverage percentage elected by the participating dairy operation under subsection (c);</text> </subparagraph><subparagraph id="HC5BDE9C272D64E94AEDA57F9B8DFD859"><enum>(B)</enum><text>the annual production history of the participating dairy operation; and</text> </subparagraph><subparagraph id="H83760BA5671B4D1CBD439957BF0E957E"><enum>(C)</enum><text>the premium per hundredweight of milk, as specified in the applicable table under paragraph (2) or (3).</text> </subparagraph></paragraph><paragraph id="H94802A7E1F9848EA83EFEA99680ED38A"><enum>(2)</enum><header>Premium per hundredweight for first 4 million pounds of production</header><text>For the first 4,000,000 pounds of milk marketings included in the annual production history of a participating dairy operation, the premium per hundredweight corresponding to each coverage level specified in the following table is as follows:</text> <table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 2 text, even cols" table-type=""> <tgroup cols="2" grid-typeface="1.1" no-carding="1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec align="center" coldef="fig" colname="column1" colwidth="106pts" min-data-value="19" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="column2" colwidth="106pts" min-data-value="19" rowsep="0"></colspec> <thead> <row><entry align="center" colname="column1" morerows="0" namest="column1" rowsep="1">Coverage Level</entry><entry align="center" colname="column2" morerows="0" namest="column2" rowsep="1">Premium per Cwt.</entry> </row> </thead> <tbody> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$4.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.01</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$5.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.02</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$5.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.035</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$6.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.045</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$6.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.09</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$7.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.40</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$7.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.60</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$8.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.95</entry> </row> </tbody> </tgroup> </table> </paragraph><paragraph id="HC2D0F20DBF93439E9BEE158363C7C638"><enum>(3)</enum><header>Premium per hundredweight for production in excess of 4 million pounds</header><text display-inline="yes-display-inline">For milk marketings in excess of 4,000,000 pounds included in the annual production history of a participating dairy operation, the premium per hundredweight corresponding to each coverage level is as follows:</text> <table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 2 text, even cols" table-type=""> <tgroup cols="2" grid-typeface="1.1" no-carding="1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec align="center" coldef="fig" colname="column1" colwidth="106pts" min-data-value="19" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="column2" colwidth="106pts" min-data-value="19" rowsep="0"></colspec> <thead> <row><entry align="center" colname="column1" morerows="0" namest="column1" rowsep="1">Coverage Level</entry><entry align="center" colname="column2" morerows="0" namest="column2" rowsep="1">Premium per Cwt.</entry> </row> </thead> <tbody> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$4.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.02</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$5.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.04</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$5.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.10</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$6.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.15</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$6.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.29</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$7.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.62</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$7.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.83</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$8.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$1.06</entry> </row> </tbody> </tgroup> </table> </paragraph><paragraph id="HFFBFC232C93B48F4960D87629CA82D99"><enum>(4)</enum><header>Time for payment</header><text display-inline="yes-display-inline">In promulgating the rules to initiate the production margin protection program, the Secretary shall provide more than 1 method by which a participating dairy operation that purchases supplemental production margin protection for a calendar year may pay the premium under this subsection for that year in any manner that maximizes participating dairy operation payment flexibility and program integrity.</text> </paragraph></subsection><subsection id="HC70599CBAACB465C9CA6F64D7A855DDF"><enum>(e)</enum><header>Premium obligations</header> <paragraph commented="no" id="HFF1CE6CDADDE4933A954DD5737E06666"><enum>(1)</enum><header>Pro-ration of premium for new dairy operations</header><text display-inline="yes-display-inline">A participating dairy operation described in section 1412(c)(2) that purchases supplemental production margin protection for a calendar year after the start of the calendar year shall pay a pro-rated premium for that calendar year based on the portion of the calendar year for which the participating dairy operation purchases the coverage.</text> </paragraph><paragraph id="ide4fb6244f12245858d1258ecee1e6663"><enum>(2)</enum><header>Legal obligation</header><text>A participating dairy operation that purchases supplemental production margin protection for a calendar year shall be legally obligated to pay the applicable premium for that calendar year, except that the Secretary may waive that obligation, under terms and conditions determined by the Secretary, for 1 or more producers in any participating dairy operation in the case of death, retirement, permanent dissolution of a participating dairy operation, or other circumstances as the Secretary considers appropriate to ensure the integrity of the program.</text> </paragraph></subsection><subsection id="HB7DF250F944C49D1869C0AD8FD2E3016"><enum>(f)</enum><header>Supplemental payment threshold</header><text display-inline="yes-display-inline">A participating dairy operation with supplemental production margin protection shall receive a supplemental production margin protection payment whenever the average actual dairy production margin for a consecutive 2-month period is less than the coverage level threshold selected by the participating dairy operation under subsection (b).</text> </subsection><subsection id="H9665AF3963F0472E9FF66412764444BA"><enum>(g)</enum><header>Supplemental production margin protection payments</header> <paragraph id="H153FA84BCE3C4DBDB803B28367251D94"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The supplemental production margin protection payment for a participating dairy operation is in addition to the basic production margin protection payment.</text> </paragraph><paragraph display-inline="no-display-inline" id="H13B471058A6943E38A8F8849C38C99BE"><enum>(2)</enum><header>Amount of payment</header><text display-inline="yes-display-inline">The supplemental production margin protection payment for the participating dairy operation shall be determined as follows:</text> <subparagraph id="H62347AEDF1444EB9BA746BCD440907E7"><enum>(A)</enum><text display-inline="yes-display-inline">The Secretary shall calculate the difference between the coverage level threshold selected by the participating dairy operation under subsection (b) and the greater of—</text> <clause id="H262C490214694314AB5075D536B5E694"><enum>(i)</enum><text>the average actual dairy production margin for the consecutive 2-month period; or</text> </clause><clause id="H33C43B7ED4E440D0B5E7FF88F2ED0827"><enum>(ii)</enum><text>$4.00.</text> </clause></subparagraph><subparagraph id="H5F5E6642519242D69FCB4FB6903A6D81"><enum>(B)</enum><text display-inline="yes-display-inline">The amount determined under subparagraph (A) shall be multiplied by the percentage selected by the participating dairy operation under subsection (c) and by the lesser of the following:</text> <clause id="H98BE4D5383A6470AA5D43D9A3FD3C578"><enum>(i)</enum><text display-inline="yes-display-inline">The annual production history of the participating dairy operation, divided by 6.</text> </clause><clause id="H401B62E69B864D3F9477EB836E85138C"><enum>(ii)</enum><text display-inline="yes-display-inline">The actual amount of milk marketed by the participating dairy operation during the consecutive 2-month period.</text> </clause></subparagraph></paragraph></subsection></section><section id="H96DCFDA445794056940794CD71857D83"><enum>1416.</enum><header>Effect of failure to pay administration fees or premiums</header> <subsection id="H40DCBFA8A5E44EC3B029C407FD5AADD6"><enum>(a)</enum><header>Loss of benefits</header><text display-inline="yes-display-inline">A participating dairy operation that fails to pay the required administration fee under section 1412 or is in arrears on premium payments for supplemental production margin protection under section 1415—</text> <paragraph id="HFE64E08ED81040039AB4515B22BBA690"><enum>(1)</enum><text display-inline="yes-display-inline">remains legally obligated to pay the administration fee or premiums, as the case may be; and</text> </paragraph><paragraph id="HB35ABB841F6640A2A625D6EF789DB714"><enum>(2)</enum><text display-inline="yes-display-inline">may not receive basic production margin protection payments or supplemental production margin protection payments until the fees or premiums are fully paid.</text> </paragraph></subsection><subsection id="HC958D7C69F2D4AC28EBD21629C1B2624"><enum>(b)</enum><header>Enforcement</header><text display-inline="yes-display-inline">The Secretary may take such action as necessary to collect administration fees and premium payments for supplemental production margin protection.</text> </subsection></section></subpart><subpart id="H0789D232C6CC4C298D5FA53B92A20F42"><enum>B</enum><header>Dairy market stabilization program</header> <section id="HE20C0D70D3B440DFBB72B4AD2568AC9C"><enum>1431.</enum><header>Establishment of dairy market stabilization program</header> <subsection id="H8BFDAF49407C496CA25EA5C748C43DFA"><enum>(a)</enum><header>Program required; purpose</header><text display-inline="yes-display-inline">Effective not later than 120 days after the effective date of this subtitle, the Secretary shall establish and administer a dairy market stabilization program applicable to participating dairy operations for the purpose of assisting in balancing the supply of milk with demand when participating dairy operations are experiencing low or negative operating margins.</text> </subsection><subsection id="H91644D97CF554AE28C20466D5111BAD4"><enum>(b)</enum><header>Election of stabilization program base calculation method</header> <paragraph id="H6ECEBAE624C3462CA82A1F6DFE9DAC2F"><enum>(1)</enum><header>Election</header><text display-inline="yes-display-inline">When a dairy operation signs up under section 1412 to participate in the production margin protection program, the dairy operation shall inform the Secretary of the method by which the stabilization program base for the participating dairy operation will be calculated under paragraph (3).</text> </paragraph><paragraph id="HCF001A98F9564EBAA36653F91D352E1F"><enum>(2)</enum><header>Change in calculation method</header><text>A participating dairy operation may change the stabilization program base calculation method to be used for a calendar year by notifying the Secretary of the change not later than a date determined by the Secretary.</text> </paragraph><paragraph id="H09C46E258D4E4289B8C3021E1B98E915"><enum>(3)</enum><header>Calculation methods</header><text>A participating dairy operation may elect either of the following methods for calculation of the stabilization program base for the participating dairy operation:</text> <subparagraph id="H5EACD4A30DE34CDCA6638C8AD8B8AC9B"><enum>(A)</enum><text>The volume of the average monthly milk marketings of the participating dairy operation for the 3 months immediately preceding the announcement by the Secretary that the stabilization program will become effective.</text> </subparagraph><subparagraph id="H184EE3350E9B4D72A57D5012C0E9EC1B"><enum>(B)</enum><text display-inline="yes-display-inline">The volume of the monthly milk marketings of the participating dairy operation for the same month in the preceding year as the month for which the Secretary has announced the stabilization program will become effective.</text> </subparagraph></paragraph></subsection></section><section id="H2C24AD1A86CF43F7AC1A364390DCFF4B"><enum>1432.</enum><header>Threshold for implementation and reduction in dairy payments</header> <subsection id="H45ED189423E7490C80A07DA169C20C7A"><enum>(a)</enum><header>When stabilization program required</header><text display-inline="yes-display-inline">Except as provided in subsection (b), the Secretary shall announce that the stabilization program is in effect and order reduced payments by handlers to participating dairy operations that exceed the applicable percentage of the participating dairy operation’s stabilization program base whenever—</text> <paragraph id="HE28BE010496747C6BC879BE2329CD41A"><enum>(1)</enum><text display-inline="yes-display-inline">the actual dairy production margin has been $6.00 or less per hundredweight of milk for each of the immediately preceding 2 months; or</text> </paragraph><paragraph id="H17F95BE2E4304B96A732795679691749"><enum>(2)</enum><text display-inline="yes-display-inline">the actual dairy production margin has been $4.00 or less per hundredweight of milk for the immediately preceding month.</text> </paragraph></subsection><subsection id="HAC2EB34925A440F78499BA3755375B17"><enum>(b)</enum><header>Exception</header><text display-inline="yes-display-inline">If any of the conditions described in section 1436(b) have been met during the 2-month period immediately preceding the month in which the announcement under subsection (a) would otherwise be made by the Secretary in the absence of this exception, the Secretary shall—</text> <paragraph id="idC9C5674A05EB4274A1688C0946D63EFF"><enum>(1)</enum><text display-inline="yes-display-inline">suspend the stabilization program;</text> </paragraph><paragraph id="idD11FAE43B3F746498D44864888D3F49A"><enum>(2)</enum><text display-inline="yes-display-inline">refrain from making the announcement under subsection (a) to implement order the stabilization payment; or</text> </paragraph><paragraph id="id85B86B510B7F4F2F9E985A8DC0978D3B"><enum>(3)</enum><text display-inline="yes-display-inline">order reduced payments.</text> </paragraph></subsection><subsection id="HC960CD1AAD0945328C4352F1EA6B1E65"><enum>(c)</enum><header>Effective date for implementation of payment reductions</header><text>Reductions in dairy payments shall commence beginning on the first day of the month immediately following the date of the announcement by the Secretary under subsection (a).</text> </subsection></section><section id="HC603B5783B4E4ADDB48914CA067F97ED"><enum>1433.</enum><header>Milk marketings information</header> <subsection id="H68B6057AAD34437588D5DE805F58F899"><enum>(a)</enum><header>Collection of milk marketing data</header><text display-inline="yes-display-inline">The Secretary shall establish, by regulation, a process to collect from participating dairy operations and handlers such information that the Secretary considers necessary for each month during which the stabilization program is in effect.</text> </subsection><subsection id="H8567614A7E7B4F18AE5AFB1DAD15BD7D"><enum>(b)</enum><header>Reduce regulatory burden</header><text>When implementing the process under subsection (a), the Secretary shall minimize the regulatory burden on participating dairy operations and handlers.</text> </subsection></section><section id="HDDEB3ACAC249445485767BDB1F068B67"><enum>1434.</enum><header>Calculation and collection of reduced dairy operation payments</header> <subsection id="HB142A248EA1440BF8AA8246241CE3FF7"><enum>(a)</enum><header>Reduced participating dairy operation payments required</header><text display-inline="yes-display-inline">During any month in which payment reductions are in effect under the stabilization program, each handler shall reduce payments to each participating dairy operation from whom the handler receives milk.</text> </subsection><subsection id="H162226CE40454A4590074D96ABE1FB39"><enum>(b)</enum><header>Reductions based on actual dairy production margin</header> <paragraph id="H308E99869DDF49FCA7D261EEA5C33AC4"><enum>(1)</enum><header>Reduction requirement 1</header><text display-inline="yes-display-inline">If the Secretary determines that the average actual dairy production margin has been less than $6.00 but greater than $5.00 per hundredweight of milk for 2 consecutive months, the handler shall make payments to a participating dairy operation for a month based on the greater of the following:</text> <subparagraph id="H9D7D55D3E1264D9AA106384754FC5345"><enum>(A)</enum><text>98 percent of the stabilization program base of the participating dairy operation.</text> </subparagraph><subparagraph id="HED898391C87B42FBBDAEDE88DD445ECD"><enum>(B)</enum><text>94 percent of the marketings of milk for the month by the participating dairy operation.</text> </subparagraph></paragraph><paragraph id="HDBC914ED03574B3380181DE156866839"><enum>(2)</enum><header>Reduction requirement 2</header><text display-inline="yes-display-inline">If the Secretary determines that the average actual dairy production margin has been less than $5.00 but greater than $4.00 for 2 consecutive months, the handler shall make payments to a participating dairy operation for a month based on the greater of the following:</text> <subparagraph id="HBBBD0394833A46129A21AA35BC414391"><enum>(A)</enum><text display-inline="yes-display-inline">97 percent of the stabilization program base of the participating dairy operation.</text> </subparagraph><subparagraph id="H1D4A72E78FFD4011A13EA79F71B8DF26"><enum>(B)</enum><text display-inline="yes-display-inline">93 percent of the marketings of milk for the month by the participating dairy operation.</text> </subparagraph></paragraph><paragraph id="H0E86D2AFEC1F4666A0ED1E696B6588A4"><enum>(3)</enum><header>Reduction requirement 3</header><text display-inline="yes-display-inline">If the Secretary determines that the average actual dairy production margin has been $4.00 or less for any 1 month, the handler shall make payments to a participating dairy operation for a month based on the greater of the following:</text> <subparagraph id="H365FFC860C2C4A018070EF194CD57ACD"><enum>(A)</enum><text display-inline="yes-display-inline">96 percent of the stabilization program base of the participating dairy operation.</text> </subparagraph><subparagraph id="HF3CB62A583084AFF9B44150A11B3DEDF"><enum>(B)</enum><text display-inline="yes-display-inline">92 percent of the marketings of milk for the month by the participating dairy operation.</text> </subparagraph></paragraph></subsection><subsection id="H26DDF7E66D4C4CFB9E8EFB940BB10E8B"><enum>(c)</enum><header>Continuation of reductions</header><text>The largest level of payment reduction required under paragraph (1), (2), or (3) of subsection (b) shall be continued for each month until the Secretary suspends the stabilization program and terminates payment reductions in accordance with section 1436.</text> </subsection><subsection id="H6BEDEFC74ECB44EC900BCB192D91E180"><enum>(d)</enum><header>Payment reduction exception</header><text display-inline="yes-display-inline">Notwithstanding any preceding subsection of this section, a handler shall make no payment reductions for a participating dairy operation for a month if the participating dairy operation’s milk marketings for the month are equal to or less than the percentage of the stabilization program base applicable to the participating dairy operation under paragraph (1), (2), or (3) of subsection (b).</text> </subsection></section><section id="HB2AF23CED26F4D51A9AFA02E3075F4F6"><enum>1435.</enum><header>Remitting funds to the Secretary and use of funds</header> <subsection id="HE5F6A90F956D4573AB60AC02C02E1AB0"><enum>(a)</enum><header>Remitting funds</header><text display-inline="yes-display-inline">As soon as practicable after the end of each month during which payment reductions are in effect under the stabilization program, each handler shall remit to the Secretary an amount equal to the amount by which payments to participating dairy operations are reduced by the handler under section 1434.</text> </subsection><subsection id="H89C9C698AE264C9C8F58930095013235"><enum>(b)</enum><header>Deposit of remitted funds</header><text display-inline="yes-display-inline">All funds received under subsection (a) shall be available to the Secretary, without further appropriation and until expended, for use or transfer as provided in subsection (c).</text> </subsection><subsection id="H70EDDBE56F7646ED9F74CC1D891E1766"><enum>(c)</enum><header>Use of funds</header> <paragraph id="H3C26857868AD4BD3A922F02EC3560AD4"><enum>(1)</enum><header>Availability for certain commodity donations</header><text display-inline="yes-display-inline">Not later than 90 days after the funds described in subsection (a) are due as determined by the Secretary, the Secretary shall obligate the funds for the purpose of—</text> <subparagraph id="HC51AEA8FB3BF4D06AEC15B178D4ECC05"><enum>(A)</enum><text display-inline="yes-display-inline">purchasing dairy products for donation to food banks and other programs that the Secretary determines appropriate; and</text> </subparagraph><subparagraph id="H50CDE5DD761A4A7CA42159470F49A2F2"><enum>(B)</enum><text>expanding consumption and building demand for dairy products.</text> </subparagraph></paragraph><paragraph id="H9E70683812A541F497D605CCE344873F"><enum>(2)</enum><header>No duplication of effort</header><text display-inline="yes-display-inline">The Secretary shall ensure that expenditures under paragraph (1) are compatible with, and do not duplicate, programs supported by the dairy research and promotion activities conducted under the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4501 et seq.).</text> </paragraph><paragraph id="H0B98B383CFC04439B9BFFE9BB5D1A6A0"><enum>(3)</enum><header>Accounting</header><text>The Secretary shall keep an accurate account of all funds expended under paragraph (1).</text> </paragraph></subsection><subsection id="H30B1403E52094638941C6D25402FB486"><enum>(d)</enum><header>Annual Report</header><text>Not later than December 31 of each year that the stabilization program is in effect, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that provides an accurate accounting of—</text> <paragraph id="H443B5751BFFD45F6B2575DA982F1523A"><enum>(1)</enum><text>the funds received by the Secretary during the preceding fiscal year under subsection (a);</text> </paragraph><paragraph id="H91D16367AB024535886117E01081A897"><enum>(2)</enum><text>all expenditures made by the Secretary under subsection (b) during the preceding fiscal year; and</text> </paragraph><paragraph id="idDCA8272756C3460BB38A051C45203E91"><enum>(3)</enum><text>the impact of the stabilization program on dairy markets.</text> </paragraph></subsection><subsection id="H09324B689A1F46A2BF0EBC20DCB88021"><enum>(e)</enum><header>Enforcement</header><text display-inline="yes-display-inline">If a participating dairy operation or handler fails to remit or collect the amounts by which payments to participating dairy operations are reduced under section 1434, the participating dairy operation or handler responsible for the failure shall be liable to the Secretary for the amount that should have been remitted or collected, plus interest. In addition to the enforcement authorities available under section 1437, the Secretary may enforce this subsection in the courts of the United States.</text> </subsection></section><section display-inline="no-display-inline" id="HE17830DE218F49CD9D17509724B79613" section-type="subsequent-section"><enum>1436.</enum><header>Suspension of reduced payment requirement</header> <subsection id="H48B21112599D42019D79D531033E5182"><enum>(a)</enum><header>Determination of prices</header><text display-inline="yes-display-inline">For purposes of this section:</text> <paragraph id="H9A845B5D57FA4899AD285A2B8863E137"><enum>(1)</enum><text display-inline="yes-display-inline">The price in the United States for cheddar cheese and nonfat dry milk shall be determined by the Secretary.</text> </paragraph><paragraph id="HEB47566AD3B04B1EA631119C542FECE8"><enum>(2)</enum><text>The world price of cheddar cheese and skim milk powder shall be determined by the Secretary.</text> </paragraph></subsection><subsection id="H7E94BA7B78EF4FCE96353122B1736C1A"><enum>(b)</enum><header>Suspension thresholds</header><text display-inline="yes-display-inline">The stabilization program shall be suspended or the Secretary shall refrain from making the announcement under section 1432(a) if the Secretary determines that—</text> <paragraph id="H010B555C99824EF8BFCF1AACC7892FFD"><enum>(1)</enum><text display-inline="yes-display-inline">the actual dairy production margin is greater than $6.00 per hundredweight of milk for 2 consecutive months;</text> </paragraph><paragraph id="HB7645E502A984D6CB39CAC6184C34FDD"><enum>(2)</enum><text display-inline="yes-display-inline">the actual dairy production margin is equal to or less than $6.00 (but greater than $5.00) for 2 consecutive months, and during the same 2 consecutive months—</text> <subparagraph id="H0037DB576750479B9AFAA620FF0C62F7"><enum>(A)</enum><text>the price in the United States for cheddar cheese is equal to or greater than the world price of cheddar cheese; or</text> </subparagraph><subparagraph id="H109380F666D04E80A1AAFD046FD31892"><enum>(B)</enum><text>the price in the United States for nonfat dry milk is equal to or greater than the world price of skim milk powder;</text> </subparagraph></paragraph><paragraph id="H4A66FC6B72A0481597C7F51EA846FE0D"><enum>(3)</enum><text>the actual dairy production margin is equal to or less than $5.00 (but greater than $4.00) for 2 consecutive months, and during the same 2 consecutive months—</text> <subparagraph id="HC8B5B210795C40409185713F7A1ABB8C"><enum>(A)</enum><text>the price in the United States for cheddar cheese is more than 5 percent above the world price of cheddar cheese; or</text> </subparagraph><subparagraph id="HDE1D9B9C41BE41C99BE9ACF3DFEB1701"><enum>(B)</enum><text>the price in the United States for nonfat dry milk is more than 5 percent above the world price of skim milk powder; or</text> </subparagraph></paragraph><paragraph id="HBA61D37807E844D6B4C6EE590D63F3E3"><enum>(4)</enum><text>the actual dairy production margin is equal to or less than $4.00 for 2 consecutive months, and during the same 2 consecutive months—</text> <subparagraph id="HB3312D8CD80C4F26A9463A08A59C92C6"><enum>(A)</enum><text>the price in the United States for cheddar cheese is more than 7 percent above the world price of cheddar cheese; or</text> </subparagraph><subparagraph id="H99E4C89B7EDA473F9C1DD30B2549B469"><enum>(B)</enum><text>the price in the United States for nonfat dry milk is more than 7 percent above the world price of skim milk powder.</text> </subparagraph></paragraph></subsection><subsection id="HBBB1708C9CCA47079C676F306F93D0B1"><enum>(c)</enum><header>Implementation by handlers</header><text display-inline="yes-display-inline">Effective on the day after the date of the announcement by the Secretary under subsection (b) of the suspension of the stabilization program, the handler shall cease reducing payments to participating dairy operations under the stabilization program.</text> </subsection><subsection id="H0787B91767284D10A371A7C058524987"><enum>(d)</enum><header>Condition on resumption of stabilization program</header><text display-inline="yes-display-inline">Upon the announcement by the Secretary under subsection (b) that the stabilization program has been suspended, the stabilization program may not be implemented again until, at the earliest—</text> <paragraph id="H8FB5CC5F7B8E40EEA734D8ECCA67CB94"><enum>(1)</enum><text>2 months have passed, beginning on the first day of the month immediately following the announcement by the Secretary; and</text> </paragraph><paragraph id="H6AEF85DF638C44A3B890575085BB826A"><enum>(2)</enum><text>the conditions of section 1432(a) are again met.</text> </paragraph></subsection></section><section id="H5A605428720042F99114310A5DC27158"><enum>1437.</enum><header>Enforcement</header> <subsection id="H60E4E7D1CBCD4E79A95EAEE93AD1AE0F"><enum>(a)</enum><header>Unlawful act</header><text display-inline="yes-display-inline">It shall be unlawful and a violation of the this subpart for any person subject to the stabilization program to willfully fail or refuse to provide, or delay the timely reporting of, accurate information and remittance of funds to the Secretary in accordance with this subpart.</text> </subsection><subsection id="H200A5CAE47EA486DB765AD336F68316F"><enum>(b)</enum><header>Order</header><text>After providing notice and opportunity for a hearing to an affected person, the Secretary may issue an order against any person to cease and desist from continuing any violation of this subpart.</text> </subsection><subsection id="H365A60D052A449778D276832396EFABE"><enum>(c)</enum><header>Appeal</header><text>An order of the Secretary under subsection (b) shall be final and conclusive unless an affected person files an appeal of the order of the Secretary in United States district court not later than 30 days after the date of the issuance of the order. A finding of the Secretary in the order shall be set aside only if the finding is not supported by substantial evidence.</text> </subsection><subsection id="H5AE83A5C847C488896E6934D98A9C8A2"><enum>(d)</enum><header>Noncompliance with order</header><text>If a person subject to this subpart fails to obey an order issued under subsection (b) after the order has become final and unappealable, or after the appropriate United States district court has entered a final judgment in favor of the Secretary, the United States may apply to the appropriate United States district court for enforcement of the order. If the court determines that the order was lawfully made and duly served and that the person violated the order, the court shall enforce the order.</text> </subsection></section><section id="HB0386A6B2C7E49D6894EF137AB9CBAF6"><enum>1438.</enum><header>Audit requirements</header> <subsection id="H56AAAB9DF10E4570B1B72EF3899314E2"><enum>(a)</enum><header>Audits of dairy operation and handler compliance</header> <paragraph id="H79FDA24258FA4175A3B596F51E8F5BA4"><enum>(1)</enum><header>Audits authorized</header><text display-inline="yes-display-inline">If determined by the Secretary to be necessary to ensure compliance by participating dairy operations and handlers with the stabilization program, the Secretary may conduct periodic audits of participating dairy operations and handlers.</text> </paragraph><paragraph id="H22DA4016E64C46728C38FCC8D17DEDE1"><enum>(2)</enum><header>Sample of dairy operations</header><text>Any audit conducted under this subsection shall include, at a minimum, investigation of a statistically valid and random sample of participating dairy operations.</text> </paragraph></subsection><subsection id="H377D9DAD1CE34407BC93900C7CBB295B"><enum>(b)</enum><header>Submission of results</header><text display-inline="yes-display-inline">The Secretary shall submit the results of any audit conducted under subsection (a) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate and include such recommendations as the Secretary considers appropriate regarding the stabilization program.</text> </subsection></section><section id="id2FF80B700D7B4189BFE6BCF9CFB70D66"><enum>1439.</enum><header>Study; report</header> <subsection id="id137ED8C2068F4040A67BDC5688EC8A77"><enum>(a)</enum><header>In general</header><text>The Secretary shall direct the Office of the Chief Economist to conduct a study of the impacts of the program established under section 1431(a).</text> </subsection><subsection id="id9B9BD688253E4427951D89E8BC3D0359"><enum>(b)</enum><header>Considerations</header><text>The study conducted under subsection (a) shall consider—</text> <paragraph id="idF64A85298108409288689B88B2CBF1CF"><enum>(1)</enum><text>the economic impact of the program throughout the dairy product value chain, including the impact on producers, processors, domestic customers, export customers, actual market growth and potential market growth, farms of different sizes, and different regions and States; and</text> </paragraph><paragraph id="id3DDF4B9B10094E879524B444BD444C5D"><enum>(2)</enum><text>the impact of the program on the competitiveness of the United States dairy industry in international markets.</text> </paragraph></subsection><subsection id="id5BFF7AD96D074EB18180547E81241777"><enum>(c)</enum><header>Report</header><text>Not later than December 1, 2016, the Office of the Chief Economist shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study conducted under subsection (a).</text> </subsection></section></subpart><subpart id="H6FAB801B32B0468285381942F7BB1916"><enum>C</enum><header>Administration</header> <section id="HCEA8B18D26724AA19EC344BA2BE2E6D5"><enum>1451.</enum><header>Duration</header><text display-inline="no-display-inline">The production margin protection program and the stabilization program shall end on December 31, 2017.</text> </section><section id="id1508FE6263A44DDEB0B7C1BA6C2CA654"><enum>1452.</enum><header>Administration and enforcement</header> <subsection id="idc60128e0efea41a4a62f34013c83558a"><enum>(a)</enum><header>In general</header><text>The Secretary shall promulgate regulations to address administrative and enforcement issues involved in carrying out the production margin protection, supplemental production margin protection, and market stabilization programs.</text> </subsection><subsection id="id02f483a9c4bf46b6896bf67fc08c2915"><enum>(b)</enum><header>Reconstitution and eligibility issues</header> <paragraph id="idabc8db4ad546434c8837537b014b6624"><enum>(1)</enum><header>Reconstitution</header><text>Using authorities under section 1001(f) and 1001B of the Food Security Act of 1985 (7 U.S.C. 1308(f), 1308–2), the Secretary shall promulgate regulations to prohibit a dairy producer from reconstituting a dairy operation for the sole purpose of the dairy producer—</text> <subparagraph id="ide083cbd4594f4ab39918bc28491f9d8a"><enum>(A)</enum><text>receiving basic margin protection;</text> </subparagraph><subparagraph id="id979ee50c145a458c90666be791cbd10c"><enum>(B)</enum><text>purchasing supplemental margin protection; or</text> </subparagraph><subparagraph id="id3d6e6373e46d4fa2b24ab9bf7875a989"><enum>(C)</enum><text>avoiding participation in the market stabilization program.</text> </subparagraph></paragraph><paragraph id="idffec7857530f40caa4cc96fd75c8486b"><enum>(2)</enum><header>Eligibility issues</header><text>Using authorities under section 1001(f) and 1001B of the Food Security Act of 1985 (7 U.S.C. 1308(f), 1308–2), the Secretary shall promulgate regulations—</text> <subparagraph id="idf5e76e5512df4e669238a390fe91f227"><enum>(A)</enum><text>to prohibit a scheme or device;</text> </subparagraph><subparagraph id="id9c8b7dba672247f79f7fe76fe325f96c"><enum>(B)</enum><text>to provide for equitable relief; and</text> </subparagraph><subparagraph id="id5c8e8f536da9440d8c6816102652499c"><enum>(C)</enum><text>to provide for other issues affecting eligibility and liability issues.</text> </subparagraph></paragraph><paragraph id="idbd7a2647f2f34e4f9deda6e525c297d3"><enum>(3)</enum><header>Administrative appeals</header><text>Using authorities under section 1001(h) of the Food Security Act of 1985 (7 U.S.C. 1308(h)) and subtitle H of the Department of Agriculture Reorganization Act (7 U.S.C. 6991 et seq.), the Secretary shall promulgate regulations to provide for administrative appeals of decisions of the Secretary that are adverse to participants of the programs described in subsection (a).</text> </paragraph></subsection></section></subpart></part><part id="HDB79904D87FA40FC8CD0D15913C90EDF"><enum>II</enum><header>Dairy market transparency</header> <section id="HE3803DF9703A499F94BF9BC01CA3901F"><enum>1461.</enum><header>Dairy product mandatory reporting</header> <subsection id="HE06A0527B841440DBB7F4911C6387748"><enum>(a)</enum><header>Definitions</header><text>Section 272(1)(A) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637a(1)(A)) is amended by inserting <quote>, or any other products that may significantly aid price discovery in the dairy markets, as determined by the Secretary</quote> after <quote>of 1937</quote>.</text> </subsection><subsection id="HCD7489943CBC41B2B15C108DDDDBD169"><enum>(b)</enum><header>Mandatory reporting for dairy products</header><text>Section 273(b) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b(b)) is amended—</text> <paragraph id="H828BF1B77EC94218BFFF24F50BF5B4E0"><enum>(1)</enum><text>by striking paragraph (1) and inserting the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H7844C358F21741298381C1D9DF1B25E3" style="OLC"> <paragraph id="H98147A1D97C4436AA07298C688039422"><enum>(1)</enum><header>In general</header><text>In establishing the program, the Secretary shall only—</text> <subparagraph id="H241BBF0695244323B26B28989FB4D97B"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="H7C1F78FB77484B1DA29762636F1EEB8D"><enum>(i)</enum><text display-inline="yes-display-inline">subject to the conditions described in paragraph (2), require each manufacturer to report to the Secretary, more frequently than once per month, information concerning the price, quantity, and moisture content of dairy products sold by the manufacturer and any other product characteristics that may significantly aid price discovery in the dairy markets, as determined by the Secretary; and</text> </clause><clause id="H62FDDBFBD46040DE95C022B4F25AEAF5" indent="up1"><enum>(ii)</enum><text>modify the format used to provide the information on the day before the date of enactment of this subtitle to ensure that the information can be readily understood by market participants; and</text> </clause></subparagraph><subparagraph id="H3E43BFCD0B5E4ABB91CC7ED87929BE0D"><enum>(B)</enum><text>require each manufacturer and other person storing dairy products (including dairy products in cold storage) to report to the Secretary, more frequently than once per month, information on the quantity of dairy products stored.</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="H5B7126C0179549D497DD728CA8A17B03"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by inserting <quote>or those that may significantly aid price discovery in the dairy markets</quote> after <quote>Federal milk marketing order</quote> each place it appears in subparagraphs (A), (B), and (C).</text> </paragraph></subsection></section><section id="id06640fcb70da43dcb17fd11691b55bd7"><enum>1462.</enum><header>Federal milk marketing order information</header> <subsection id="id2c0865ce8f66474a83048b48d8c90330"><enum>(a)</enum><header>Information clearinghouse</header> <paragraph id="id0F8371A3D3DB403EB2BA69C868FDC4A5"><enum>(1)</enum><header>In general</header><text>The Secretary shall, on behalf of each milk marketing order issued under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, establish an information clearinghouse for the purposes of educating the public about the Federal milk marketing order system and any marketing order referenda, including proposal information and timelines that shall be kept current and updated as information becomes available.</text> </paragraph><paragraph id="id18C3761363574942BAD41448268458FA"><enum>(2)</enum><header>Requirements</header><text>Information under paragraph (1) shall include—</text> <subparagraph id="id22bd547d3dad4085bf62e65fbf7f0430"><enum>(A)</enum><text>information on procedures by which cooperatives vote;</text> </subparagraph><subparagraph id="id6e9da20e98eb4feabbfe75a05b49a8e9"><enum>(B)</enum><text>if applicable, information on the manner by which producers may cast an individual ballot;</text> </subparagraph><subparagraph id="idab9a03e374504782b45aa3f00777f009"><enum>(C)</enum><text>in applicable, instructions on the manner in which to vote online;</text> </subparagraph><subparagraph id="id5786ab07d400402bbab421211df09e36"><enum>(D)</enum><text>due dates for each specific referendum;</text> </subparagraph><subparagraph id="id812a7b8100c949a996d57a8d522aa408"><enum>(E)</enum><text>the text of each referendum question under consideration;</text> </subparagraph><subparagraph id="idab92afbf7d594a8584c3265b5b26c925"><enum>(F)</enum><text>a description in plain language of the question;</text> </subparagraph><subparagraph id="id3bfa104fec1b4de6a48815a2284fafbd"><enum>(G)</enum><text>any relevant background information to the question; and</text> </subparagraph><subparagraph id="id21d6b3972a5e4e40a3cfe277df30cc6e"><enum>(H)</enum><text>any other information that increases Federal milk marketing order transparency.</text> </subparagraph></paragraph></subsection><subsection id="id3aa8e24f1b9946fe9b3c1d8757d0b929"><enum>(b)</enum><header>Notification list for upcoming referendum</header><text>Each Federal milk marketing order shall—</text> <paragraph id="id0c3c2779b3424b65b19b67a48ac4b4d2"><enum>(1)</enum><text>make available the information described in subsection (b) through an Internet site; and</text> </paragraph><paragraph id="id5894263cb14e4254b69712b265e4cdb3"><enum>(2)</enum><text>publicize the information in major agriculture and dairy-specific publications on upcoming referenda.</text> </paragraph></subsection><subsection id="ide922be568759420798d0276ba99e1f29"><enum>(c)</enum><header>Study</header> <paragraph id="idECD93CD6CA224B779F4468DEE177E2EA"><enum>(1)</enum><header>In general</header><text>The Secretary shall conduct a study of the feasibility of establishing 2 classes of milk, a fluid class and a manufacturing class, to replace the 4–class system in effect on the date of enactment of this Act in administering Federal milk marketing orders.</text> </paragraph><paragraph id="id2886641D24014731BE257A38463CBFFD"><enum>(2)</enum><header>Federal Milk Market Order Review Commission</header><text>The Secretary may elect to use the Federal Milk Market Order Review Commission established under section 1509(a) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1726), or documents of the Commission, to conduct all or part of the study.</text> </paragraph><paragraph id="id626D2738B9334065B8B9D1B41FB9E08A"><enum>(3)</enum><header>Report</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study required under this subsection, including any recommendations.</text> </paragraph></subsection></section></part><part id="H11F183B6C5824E82886D9CEFBAA0AAA9"><enum>III</enum><header>Repeal or reauthorization of other dairy-related provisions</header> <section id="H3FB4F632206C474196263BB66B951075"><enum>1471.</enum><header>Repeal of dairy product price support and milk income loss contract programs</header> <subsection id="HBF0DDF18B20E4F8DBBA6F3029FC325D4"><enum>(a)</enum><header>Repeal of dairy product price support program</header><text>Section 1501 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8771) is repealed.</text> </subsection><subsection id="H6C0A2EA2A58A47159F6AEB783A56F9EC"><enum>(b)</enum><header>Repeal of milk income loss contract program</header> <paragraph id="id450325B434E64765B1A7069D0242E3C8"><enum>(1)</enum><header>Payments under milk income loss contract program</header><text>Section 1506(c)(3) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773(c)(3)) is amended—</text> <subparagraph id="id9F4005DEB96D4ED48430406DB3A71505"><enum>(A)</enum><text>in subparagraph (A), by inserting <quote>and</quote> after the semicolon;</text> </subparagraph><subparagraph id="id0BF7777AD7C740F48CE68C35DCE0820C"><enum>(B)</enum><text>in subparagraph (B), by striking <quote>August 31, 2012, 45 percent; and</quote> and inserting <quote>June 30, 2013, 45 percent.</quote>; and</text> </subparagraph><subparagraph id="idEF6A0A54974341E683CA26190E6C6C64"><enum>(C)</enum><text>by striking subparagraph (C).</text> </subparagraph></paragraph><paragraph id="id97F7B9BA6E5F45DD8948EC8629A84191"><enum>(2)</enum><header>Extension</header><text>Section 1506(h)(1) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773(h)(1)) is amended by striking <quote>September 30, 2012</quote> and inserting <quote>June 30, 2013</quote>.</text> </paragraph><paragraph id="id0297AC16E0EF45959E2EFC1A6EAE4246"><enum>(3)</enum><header>Repeal</header><text>Effective July 1, 2013, section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is repealed.</text> </paragraph></subsection></section><section id="H8157CBF5552140A393CE8796D1CABFE4" section-type="subsequent-section"><enum>1472.</enum><header>Repeal of dairy export incentive program</header> <subsection id="H55AD7771A4204905BE5FEF6F71E3CBB7"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 153 of the Food Security Act of 1985 (15 U.S.C. 713a–14) is repealed.</text> </subsection><subsection id="H94BD5FF7841148F4BA6E81650C5E21C8"><enum>(b)</enum><header>Conforming amendments</header><text>Section 902(2) of the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7201(2)) is amended—</text> <paragraph id="H7479B69375F040818B2B1B9C4AB6B38D"><enum>(1)</enum><text>by striking subparagraph (D); and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA87C38B3E17B4A7EB69C66E506F84C52"><enum>(2)</enum><text>by redesignating subparagraphs (E) and (F) as subparagraphs (D) and (E), respectively.</text> </paragraph></subsection></section><section id="H35012B906A234DDAAF0B3E267966BD15"><enum>1473.</enum><header>Extension of dairy forward pricing program</header><text display-inline="no-display-inline">Section 1502(e) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8772(e)) is amended—</text> <paragraph id="H21B7007DDC0748B1BCCC6521A614ACF1"><enum>(1)</enum><text>in paragraph (1), by striking <quote>2012</quote> and inserting <quote>2017</quote>; and</text> </paragraph><paragraph id="H75B6FD8CEB954BB4ACAC141B59A5CCDF"><enum>(2)</enum><text>in paragraph (2), by striking <quote>2015</quote> and inserting <quote>2020</quote>.</text> </paragraph></section><section id="HEFAEA4B6EF0B4BE895524026EDFB57BF"><enum>1474.</enum><header>Extension of dairy indemnity program</header><text display-inline="no-display-inline">Section 3 of Public Law 90–484 (7 U.S.C. 450l) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="HB488CAE02A4E4A33A98C5FA5894F5783"><enum>1475.</enum><header>Extension of dairy promotion and research program</header><text display-inline="no-display-inline">Section 113(e)(2) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="H01C4C08A144A4227A9C4FE80F2945832"><enum>1476.</enum><header>Extension of Federal Milk Marketing Order Review Commission</header><text display-inline="no-display-inline">Section 1509(a) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1726) is amended by inserting <quote>or other funds</quote> after <quote>Subject to the availability of appropriations</quote>.</text> </section></part><part id="id00EE184E5FC94FD395E9B012D27073B0"><enum>IV</enum><header>Federal milk marketing order reform</header> <section id="H3080C142E478424EA0478BF60288E9B2"><enum>1481.</enum><header>Federal milk marketing orders</header> <subsection id="H4563D4C0D6164A84B15AC47C75968361"><enum>(a)</enum><header>Amendments</header><text display-inline="yes-display-inline">The Secretary shall provide an analysis on the effects of amending each Federal milk marketing order issued under section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937 (in this part referred to as a <term>milk marketing order</term>), as required by this section.</text> </subsection><subsection id="H4DA8987C3ABD4DC89453F3E37BA5493E"><enum>(b)</enum><header>Use of end-product price formulas</header><text display-inline="yes-display-inline">In carrying out subsection (a), the Secretary shall—</text> <paragraph id="id2E5045CEE06349529BB218630B7CAA18"><enum>(1)</enum><text display-inline="yes-display-inline">consider replacing the use of end-product price formulas with other pricing alternatives; and</text> </paragraph><paragraph id="idD82E10B6D1024D7BA1D0B52401072E4F"><enum>(2)</enum><text display-inline="yes-display-inline">submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the findings of the Secretary on the impact of the action considered under paragraph (1).</text> </paragraph></subsection></section></part><part id="HD8FE3B133FE34EEB9C6CE1AEC4031F2F"><enum>V</enum><header>Effective date</header> <section commented="no" display-inline="no-display-inline" id="H9B23B45C5F834F32A1B0814A3DDDB4ED" section-type="subsequent-section"><enum>1491.</enum><header>Effective date</header><text display-inline="no-display-inline">Except as otherwise provided in this subtitle, this subtitle and the amendments made by this subtitle take effect on October 1, 2012.</text> </section></part></subtitle><subtitle commented="no" id="idB4579C20A3F340D2AC382AF03D1546C4"><enum>E</enum><header>Supplemental agricultural disaster assistance programs</header> <section id="idB52CC07DACB8498E8A8FED10D789590F"><enum>1501.</enum><header>Supplemental agricultural disaster assistance programs</header> <subsection id="idc8972ce89c3b4b138506fa6470ef7988"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="idd2170819cbef4c6d88931e66f77cb0be"><enum>(1)</enum><header>Eligible producer on a farm</header> <subparagraph id="id61562c2b96f5477f8ba3229b72869d6c"><enum>(A)</enum><header>In general</header><text>The term <term>eligible producer on a farm</term> means an individual or entity described in subparagraph (B) that, as determined by the Secretary, assumes the production and market risks associated with the agricultural production of crops or livestock.</text> </subparagraph><subparagraph id="id7e994577ceec4774b69d7f81e24528eb"><enum>(B)</enum><header>Description</header><text>An individual or entity referred to in subparagraph (A) is—</text> <clause id="id54b7b408b1fb4d9794871ba1d94d51fd"><enum>(i)</enum><text>a citizen of the United States;</text> </clause><clause id="id791e19d6c25b4fc09bb76c1334dd3366"><enum>(ii)</enum><text>a resident alien;</text> </clause><clause id="ida19ae96404ea4413a1330578d3ecca05"><enum>(iii)</enum><text>a partnership of citizens of the United States; or</text> </clause><clause id="id8e3470b659be440caa42ca05b522dea2"><enum>(iv)</enum><text>a corporation, limited liability corporation, or other farm organizational structure organized under State law.</text> </clause></subparagraph></paragraph><paragraph id="id9db801c90a3d4bf1a9939c4aa82b1155"><enum>(2)</enum><header>Farm</header> <subparagraph id="id08349763afd04b3fb0ee16f1f08821b3"><enum>(A)</enum><header>In general</header><text>The term <term>farm</term> means, in relation to an eligible producer on a farm, the total of all crop acreage in all counties that is planted or intended to be planted for harvest, for sale, or on-farm livestock feeding (including native grassland intended for haying) by the eligible producer.</text> </subparagraph><subparagraph id="idd1316145afd44f7b84b9826ca9d2f349"><enum>(B)</enum><header>Aquaculture</header><text>In the case of aquaculture, the term <term>farm</term> means, in relation to an eligible producer on a farm, all fish being produced in all counties that are intended to be harvested for sale by the eligible producer.</text> </subparagraph><subparagraph id="idb7b189a331e945baaed375cfe918a9b2"><enum>(C)</enum><header>Honey</header><text>In the case of honey, the term <term>farm</term> means, in relation to an eligible producer on a farm, all bees and beehives in all counties that are intended to be harvested for a honey crop for sale by the eligible producer.</text> </subparagraph></paragraph><paragraph id="id2e700f857c3a470399c9be038db31205"><enum>(3)</enum><header>Farm-raised fish</header><text>The term <term>farm-raised fish</term> means any aquatic species that is propagated and reared in a controlled environment.</text> </paragraph><paragraph id="id14d4bb43c7714542a9b18212ea27bc50"><enum>(4)</enum><header>Livestock</header><text>The term <term>livestock</term> includes—</text> <subparagraph id="id184c949da68141008881d784bb6995b6"><enum>(A)</enum><text>cattle (including dairy cattle);</text> </subparagraph><subparagraph id="id68afd37abb8347c9be0ac0ea24935818"><enum>(B)</enum><text>bison;</text> </subparagraph><subparagraph id="idbf69630531c341a5a98b09e291aa32af"><enum>(C)</enum><text>poultry;</text> </subparagraph><subparagraph id="idb2bbee25e3e44f9c9f38cf1f3e9878c0"><enum>(D)</enum><text>sheep;</text> </subparagraph><subparagraph id="id19412caf947d42de8701d496a88bc60c"><enum>(E)</enum><text>swine;</text> </subparagraph><subparagraph id="id1acc31a44bf84717abf60fb5697f240b"><enum>(F)</enum><text>horses; and</text> </subparagraph><subparagraph id="id2d0a8e0c37b2456b99c6483965b5a7e3"><enum>(G)</enum><text>other livestock, as determined by the Secretary.</text> </subparagraph></paragraph></subsection><subsection id="id1ba28006b13b46cca809fba5c5acbd79"><enum>(b)</enum><header>Livestock indemnity payments</header> <paragraph id="idb55cb298ceb7476fac9101018b5c13b9"><enum>(1)</enum><header>Payments</header><text>For each of fiscal years 2012 through 2017, the Secretary shall use such sums as are necessary of the funds of the Commodity Credit Corporation to make livestock indemnity payments to eligible producers on farms that have incurred livestock death losses in excess of the normal mortality, as determined by the Secretary, due to—</text> <subparagraph id="id9c63489798f64a8aa4a5658a97aa98a3"><enum>(A)</enum><text>attacks by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves; or</text> </subparagraph><subparagraph id="ide99a1ecc6d9a4b9db16c979cf8da2144"><enum>(B)</enum><text>adverse weather, as determined by the Secretary, during the calendar year, including losses due to hurricanes, floods, blizzards, disease, wildfires, extreme heat, and extreme cold.</text> </subparagraph></paragraph><paragraph id="id5b7ae4558fc344a29578a7b1fcbf6abe"><enum>(2)</enum><header>Payment rates</header><text>Indemnity payments to an eligible producer on a farm under paragraph (1) shall be made at a rate of 65 percent of the market value of the applicable livestock on the day before the date of death of the livestock, as determined by the Secretary.</text> </paragraph><paragraph id="ida879c7caacc4416caaef07fd33c20165"><enum>(3)</enum><header>Special rule for payments made due to disease</header><text>The Secretary shall ensure that payments made to an eligible producer under paragraph (1) are not made for the same livestock losses for which compensation is provided pursuant to section 10407(d) of the Animal Health Protection Act (7 U.S.C. 8306(d)).</text> </paragraph></subsection><subsection id="ide8adc906311c499b86eefda286598766"><enum>(c)</enum><header>Livestock forage disaster program</header> <paragraph id="id200ca0cf79ea4277a4707778b4175874"><enum>(1)</enum><header>Establishment</header><text>There is established a livestock forage disaster program to provide 1 source for livestock forage disaster assistance for weather-related forage losses, as determined by the Secretary, by combining—</text> <subparagraph id="id91a1f2a554c743cb82991e688d6bc0bb"><enum>(A)</enum><text>the livestock forage assistance functions of—</text> <clause id="id70CD4BF0654A451A88544B4D79AD4863"><enum>(i)</enum><text>the noninsured crop disaster assistance program established by section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333); and</text> </clause><clause id="id330C0C83136440C8A11AB86A2636F2EA"><enum>(ii)</enum><text>the emergency assistance for livestock, honey bees, and farm-raised fish program under section 531(e) of the Federal Crop Insurance Act (7 U.S.C. 1531(e)) (as in existence on the day before the date of enactment of this Act); and</text> </clause></subparagraph><subparagraph id="id39ff206f6d714b8b8eb02adee9d5459c"><enum>(B)</enum><text>the livestock forage disaster program under section 531(d) of the Federal Crop Insurance Act (7 U.S.C. 1531(d)) (as in existence on the day before the date of enactment of this Act).</text> </subparagraph></paragraph><paragraph id="idb5de18d6b7754dd2a171acbf93d78a87"><enum>(2)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="idc32da95185314a7aa847540d03e29cc0"><enum>(A)</enum><header>Covered livestock</header> <clause id="id01a258c555214f028622960df5d0a34c"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), the term <term>covered livestock</term> means livestock of an eligible livestock producer that, during the 60 days prior to the beginning date of an eligible forage loss, as determined by the Secretary, the eligible livestock producer—</text> <subclause id="id3c456ba55ada44bbaf8924a60566fa52"><enum>(I)</enum><text>owned;</text> </subclause><subclause id="ide6b82e6d80b544c1a1980d9d325b7b30"><enum>(II)</enum><text>leased;</text> </subclause><subclause id="idd15ebce53a5d4b51bf0ae96db44d0697"><enum>(III)</enum><text>purchased;</text> </subclause><subclause id="idd2ff5696cd804aee9a1b0fe17d2c6eee"><enum>(IV)</enum><text>entered into a contract to purchase;</text> </subclause><subclause id="id05e1c65720d0420492b8f9d6dc66a686"><enum>(V)</enum><text>was a contract grower; or</text> </subclause><subclause id="id526f2a31a2e94f5cb3b55c97f48f7915"><enum>(VI)</enum><text>sold or otherwise disposed of due to an eligible forage loss during—</text> <item id="id0a55ba0447a1433f8ae1e35a8b6ddff5"><enum>(aa)</enum><text>the current production year; or</text> </item><item id="id4777517a97864707a644ab58e0490252"><enum>(bb)</enum><text>subject to paragraph (4)(B)(ii), 1 or both of the 2 production years immediately preceding the current production year.</text> </item></subclause></clause><clause id="idc5273402a27f4c4689fb2430c4377ba8"><enum>(ii)</enum><header>Exclusion</header><text>The term <term>covered livestock</term> does not include livestock that were or would have been in a feedlot, on the beginning date of the eligible forage loss, as a part of the normal business operation of the eligible livestock producer, as determined by the Secretary.</text> </clause></subparagraph><subparagraph id="idce357e7f54644c56944af1332e6a9b21"><enum>(B)</enum><header>Drought monitor</header><text>The term <term>drought monitor</term> means a system for classifying drought severity according to a range of abnormally dry to exceptional drought, as defined by the Secretary.</text> </subparagraph><subparagraph id="id03a9856cf8914824a0efb695633bd128"><enum>(C)</enum><header>Eligible forage loss</header><text>The term <term>eligible forage loss</term> means 1 or more forage losses that occur due to weather-related conditions, including drought, flood, blizzard, hail, excessive moisture, hurricane, and fire, occurring during the normal grazing period, as determined by the Secretary, if the forage—</text> <clause id="id1a39836ec40142a1bb49a9085160eb78"><enum>(i)</enum><text>is grown on land that is native or improved pastureland with permanent vegetative cover; or</text> </clause><clause id="idea4b992434504d71ae4fc099411371e5"><enum>(ii)</enum><text>is a crop planted specifically for the purpose of providing grazing for covered livestock of an eligible livestock producer.</text> </clause></subparagraph><subparagraph id="idcd3e4748b8c24b1788632b056d3736a9"><enum>(D)</enum><header>Eligible livestock producer</header> <clause id="id5293f73417de40029b479b6ce526774a"><enum>(i)</enum><header>In general</header><text>The term <term>eligible livestock producer</term> means an eligible producer on a farm that—</text> <subclause id="id5aa0ee1258fa4c7883e3e61e75e865c2"><enum>(I)</enum><text>is an owner, cash or share lessee, or contract grower of covered livestock that provides the pastureland or grazing land, including cash-leased pastureland or grazing land, for the covered livestock;</text> </subclause><subclause id="id023521bacf36431d8041e3d9de3b31f2"><enum>(II)</enum><text>provides the pastureland or grazing land for covered livestock, including cash-leased pastureland or grazing land that is physically located in a county affected by an eligible forage loss;</text> </subclause><subclause id="id51bc26348c57436095a5a068aceac953"><enum>(III)</enum><text>certifies the eligible forage loss; and</text> </subclause><subclause id="id57be17671791461fadcdd0fac51fa100"><enum>(IV)</enum><text>meets all other eligibility requirements established under this subsection.</text> </subclause></clause><clause id="id666f475397cc4386aaff474937c3d89d"><enum>(ii)</enum><header>Exclusion</header><text>The term <term>eligible livestock producer</term> does not include an owner, cash or share lessee, or contract grower of livestock that rents or leases pastureland or grazing land owned by another person on a rate-of-gain basis.</text> </clause></subparagraph><subparagraph id="id3204c1aa77c043839d60d710eddccd53"><enum>(E)</enum><header>Normal carrying capacity</header><text>The term <term>normal carrying capacity</term>, with respect to each type of grazing land or pastureland in a county, means the normal carrying capacity, as determined under paragraph (4)(D)(i), that would be expected from the grazing land or pastureland for livestock during the normal grazing period, in the absence of an eligible forage loss that diminishes the production of the grazing land or pastureland.</text> </subparagraph><subparagraph id="id461d5fae3efc41c0840aebb6674b5594"><enum>(F)</enum><header>Normal grazing period</header><text>The term <term>normal grazing period</term>, with respect to a county, means the normal grazing period during the calendar year for the county, as determined under paragraph (4)(D)(i).</text> </subparagraph></paragraph><paragraph id="idfe35a7cc0b894c0a801db004caf88f49"><enum>(3)</enum><header>Program</header><text>For each of fiscal years 2012 through 2017, the Secretary shall use such sums as are necessary of the funds of the Commodity Credit Corporation to provide compensation under paragraphs (4) through (6), as determined by the Secretary for eligible forage losses affecting covered livestock of eligible livestock producers.</text> </paragraph><paragraph id="idce48d75627644b6487ea0554c9aec802"><enum>(4)</enum><header>Assistance for eligible forage losses due to drought conditions</header> <subparagraph id="id4e363c299fc94410ae2863da71db91e4"><enum>(A)</enum><header>Eligible forage losses</header> <clause id="ide35d0ad4bf37477789eaad8364c3ca68"><enum>(i)</enum><header>In general</header><text>An eligible livestock producer of covered livestock may receive assistance under this paragraph for eligible forage losses that occur due to drought on land that—</text> <subclause id="id325c9d54ae124b6c928710c8432c105c"><enum>(I)</enum><text>is native or improved pastureland with permanent vegetative cover; or</text> </subclause><subclause id="ide6ac285e83f84742a9e51054cd9cd49a"><enum>(II)</enum><text>is planted to a crop planted specifically for the purpose of providing grazing for covered livestock.</text> </subclause></clause><clause id="id731ac045207446098d3993a1f31745fd"><enum>(ii)</enum><header>Exclusions</header><text>An eligible livestock producer may not receive assistance under this paragraph for eligible forage losses that occur on land used for haying or grazing under the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.), unless the land is grassland eligible for the conservation reserve program under section 1231(d)(2) of the Food Security Act of 1985 (16 U.S.C. 3831(d)(2)) (as amended by section 2001 of this Act).</text> </clause></subparagraph><subparagraph id="id6f360d9194244b809bb7480e5a465875"><enum>(B)</enum><header>Monthly payment rate</header> <clause id="ida93e04c711604c65b706aae770e09001"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), the payment rate for assistance for 1 month under this paragraph shall, in the case of drought, be equal to 60 percent of the lesser of—</text> <subclause id="id888336dec791489b8810861c34bd7589"><enum>(I)</enum><text>the monthly feed cost for all covered livestock owned or leased by the eligible livestock producer, as determined under subparagraph (C); or</text> </subclause><subclause id="id3de54bbd22464eb29c234ab5d8b4608c"><enum>(II)</enum><text>the monthly feed cost calculated by using the normal carrying capacity of the eligible grazing land of the eligible livestock producer.</text> </subclause></clause><clause id="id020b0432f3594dbfb19cdf960433666c"><enum>(ii)</enum><header>Partial compensation</header><text>In the case of an eligible livestock producer that sold or otherwise disposed of covered livestock due to drought conditions in 1 or both of the 2 production years immediately preceding the current production year, as determined by the Secretary, the payment rate shall be 80 percent of the payment rate otherwise calculated in accordance with clause (i).</text> </clause></subparagraph><subparagraph id="id385dcfb9125640a5a5b889d933bdd7b3"><enum>(C)</enum><header>Monthly feed cost</header> <clause id="id4c9649c12b0849a4878b4353ab594395"><enum>(i)</enum><header>In general</header><text>The monthly feed cost shall equal the product obtained by multiplying—</text> <subclause id="idc2b84e334db2422f9feaf3e1d2a26426"><enum>(I)</enum><text>30 days;</text> </subclause><subclause id="ida769f8cef02d49cc9e55831a434c3335"><enum>(II)</enum><text>a payment quantity that is equal to the feed grain equivalent, as determined under clause (ii); and</text> </subclause><subclause id="id774162f5b2734572b0ae5df9d86abd8d"><enum>(III)</enum><text>a payment rate that is equal to the corn price per pound, as determined under clause (iii).</text> </subclause></clause><clause id="id40de50a4e15c4696a22ba8a785753157"><enum>(ii)</enum><header>Feed grain equivalent</header><text>For purposes of clause (i)(II), the feed grain equivalent shall equal—</text> <subclause id="idb86fd355185544e7b3e90da49b34916e"><enum>(I)</enum><text>in the case of an adult beef cow, 15.7 pounds of corn per day; or</text> </subclause><subclause id="id3ca41eac9fb2417188225e2f35d66d1f"><enum>(II)</enum><text>in the case of any other type of weight of livestock, an amount determined by the Secretary that represents the average number of pounds of corn per day necessary to feed the livestock.</text> </subclause></clause><clause id="id54b8d49297fe412a8c760c5874fddd22"><enum>(iii)</enum><header>Corn price per pound</header><text>For purposes of clause (i)(III), the corn price per pound shall equal the quotient obtained by dividing—</text> <subclause id="id3f870eebce444c46a25835cf6ea16715"><enum>(I)</enum><text>the higher of—</text> <item id="idae3ce6707b854ed9b0c1d79b773afdb9"><enum>(aa)</enum><text>the national average corn price per bushel for the 12-month period immediately preceding March 1 of the year for which the disaster assistance is calculated; or</text> </item><item id="idaf52bf160dae46c9b4d7c8a2ea716445"><enum>(bb)</enum><text>the national average corn price per bushel for the 24-month period immediately preceding that March 1; by</text> </item></subclause><subclause id="idf998623fba6f45838497cb89cb641340"><enum>(II)</enum><text>56.</text> </subclause></clause></subparagraph><subparagraph id="idd99a52baf422411ebe4c3d46cc0b33b8"><enum>(D)</enum><header>Normal grazing period and drought monitor intensity</header> <clause id="idff343a66456941eabd1f7de2e38048ad"><enum>(i)</enum><header>FSA county committee determinations</header> <subclause id="id1eee5126117f49a396780b6f02f6a862"><enum>(I)</enum><header>In general</header><text>The Secretary shall determine the normal carrying capacity and normal grazing period for each type of grazing land or pastureland in the county served by the applicable Farm Service Agency committee.</text> </subclause><subclause id="id5b12a18ff53942308755218df66bc2cb"><enum>(II)</enum><header>Changes</header><text>No change to the normal carrying capacity or normal grazing period established for a county under subclause (I) shall be made unless the change is requested by the appropriate State and county Farm Service Agency committees.</text> </subclause></clause><clause id="id43fbdf9acf4643458d96a12a73a89215"><enum>(ii)</enum><header>Drought intensity</header> <subclause id="ida28b91fb20f94d60867773f73ad6c978"><enum>(I)</enum><header>D2</header><text>An eligible livestock producer that owns or leases grazing land or pastureland that is physically located in a county that is rated by the U.S. Drought Monitor as having a D2 (severe drought) intensity in any area of the county for at least 8 consecutive weeks during the normal grazing period for the county, as determined by the Secretary, shall be eligible to receive assistance under this paragraph in an amount equal to 1 monthly payment using the monthly payment rate determined under subparagraph (B).</text> </subclause><subclause id="id4056d13223714df89acc06f93bc80e8c"><enum>(II)</enum><header>D3</header><text>An eligible livestock producer that owns or leases grazing land or pastureland that is physically located in a county that is rated by the U.S. Drought Monitor as having at least a D3 (extreme drought) intensity in any area of the county at any time during the normal grazing period for the county, as determined by the Secretary, shall be eligible to receive assistance under this paragraph—</text> <item id="id1727ebf335c746b39828aa11a51d1b0f"><enum>(aa)</enum><text>in an amount equal to 3 monthly payments using the monthly payment rate determined under subparagraph (B);</text> </item><item id="id5f8203d88f294448b17e27186d0fe513"><enum>(bb)</enum><text>if the county is rated as having a D3 (extreme drought) intensity in any area of the county for at least 4 weeks during the normal grazing period for the county, or is rated as having a D4 (exceptional drought) intensity in any area of the county at any time during the normal grazing period, in an amount equal to 4 monthly payments using the monthly payment rate determined under subparagraph (B); or</text> </item><item id="idf831cace593b4374b65a85382cb4c81a"><enum>(cc)</enum><text>if the county is rated as having a D4 (exceptional drought) intensity in any area of the county for at least 4 weeks during the normal grazing period, in an amount equal to 5 monthly payments using the monthly rate determined under subparagraph (B).</text> </item></subclause></clause><clause id="id57e5c2bb654f453db50ba1d9a16c4f34"><enum>(iii)</enum><header>Annual payment based on drought conditions determined by means other than the U.S. Drought Monitor</header> <subclause id="id642c63b1fb7e44afabbe9168ef0bf74f"><enum>(I)</enum><header>In general</header><text>An eligible livestock producer that owns grazing land or pastureland that is physically located in a county that has experienced on average, over the preceding calendar year, precipitation levels that are 50 percent or more below normal levels, according to sufficient documentation as determined by the Secretary, may be eligible, subject to a determination by the Secretary, to receive assistance under this paragraph in an amount equal to not more than 1 monthly payment using the monthly payment rate under subparagraph (B).</text> </subclause><subclause id="idc6e1b0ac52574f70bc17beb6f2618365"><enum>(II)</enum><header>No duplicate payment</header><text>A producer may not receive a payment under both clause (ii) and this clause.</text> </subclause></clause></subparagraph></paragraph><paragraph id="id490ea3e115184f8a8360f16713b8a939"><enum>(5)</enum><header>Assistance for losses due to fire on public managed land</header> <subparagraph id="iddb593664d91f4d629f0a8d77a17750b4"><enum>(A)</enum><header>In general</header><text>An eligible livestock producer may receive assistance under this paragraph only if—</text> <clause id="id28b52a5201424fa08d9e7f128a75de4b"><enum>(i)</enum><text>the eligible forage losses occur on rangeland that is managed by a Federal agency; and</text> </clause><clause id="id80e30c82ffe44105825997417071625d"><enum>(ii)</enum><text>the eligible livestock producer is prohibited by the Federal agency from grazing the normal permitted livestock on the managed rangeland due to a fire.</text> </clause></subparagraph><subparagraph id="id763c404492544a6782d8c21cd338e45b"><enum>(B)</enum><header>Payment rate</header><text>The payment rate for assistance under this paragraph shall be equal to 50 percent of the monthly feed cost for the total number of livestock covered by the Federal lease of the eligible livestock producer, as determined under paragraph (4)(C).</text> </subparagraph><subparagraph id="idac9ebd278d0843ba81f12cb007d53736"><enum>(C)</enum><header>Payment duration</header> <clause id="id123837316e854d0386118ba17db432fc"><enum>(i)</enum><header>In general</header><text>Subject to clause (ii), an eligible livestock producer shall be eligible to receive assistance under this paragraph for the period—</text> <subclause id="idacc08cd795a34500bb841e8874fbf97c"><enum>(I)</enum><text>beginning on the date on which the Federal agency excludes the eligible livestock producer from using the managed rangeland for grazing; and</text> </subclause><subclause id="id83d2036ecb61433fa8b5f41ea4bd4d0a"><enum>(II)</enum><text>ending on the last day of the Federal lease of the eligible livestock producer.</text> </subclause></clause><clause id="idf019ff6c6e5e448eb71c31f5563153be"><enum>(ii)</enum><header>Limitation</header><text>An eligible livestock producer may only receive assistance under this paragraph for losses that occur on not more than 180 days per year.</text> </clause></subparagraph></paragraph><paragraph id="id9b156743037d4f5bb5d69c73f4845b18"><enum>(6)</enum><header>Assistance for eligible forage losses due to other than drought or fire</header> <subparagraph id="id75cf979a755d402a83c56c1711b40aa8"><enum>(A)</enum><header>Eligible forage losses</header> <clause id="id82d66ec73f4e47adbb8d522e343ee647"><enum>(i)</enum><header>In general</header><text>Subject to subparagraph (B), an eligible livestock producer of covered livestock may receive assistance under this paragraph for eligible forage losses that occur due to weather-related conditions other than drought or fire on land that—</text> <subclause id="ida85a81d3e625408bbb6c2547db089110"><enum>(I)</enum><text>is native or improved pastureland with permanent vegetative cover; or</text> </subclause><subclause id="idbb1adf4802fd46d8a416e9eb41c4ed0b"><enum>(II)</enum><text>is planted to a crop planted specifically for the purpose of providing grazing for covered livestock.</text> </subclause></clause><clause id="id2da469bf370b4d72b974e647a2131fea"><enum>(ii)</enum><header>Exclusions</header><text>An eligible livestock producer may not receive assistance under this paragraph for eligible forage losses that occur on land used for haying or grazing under the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.), unless the land is grassland eligible for the conservation reserve program under section 1231(d)(2) of the Food Security Act of 1985 (16 U.S.C. 3831(d)(2)) (as amended by section 2001 of this Act).</text> </clause></subparagraph><subparagraph id="idcfb245db329940cd9bdf615069e13347"><enum>(B)</enum><header>Payments for eligible forage losses</header> <clause id="id00eed380f5344c459a104037c0772e1c"><enum>(i)</enum><header>In general</header><text>The Secretary shall provide assistance under this paragraph to an eligible livestock producer for eligible forage losses that occur due to weather-related conditions other than—</text> <subclause id="iddcf3e41081d84ea9a8fcfc77c45f34cd"><enum>(I)</enum><text>drought under paragraph (4); and</text> </subclause><subclause id="idfa50d28ee0954d10a8553e40b0d67107"><enum>(II)</enum><text>fire on public managed land under paragraph (5).</text> </subclause></clause><clause id="idfd4aff0c178c4bbeb42c567d813203d8"><enum>(ii)</enum><header>Terms and conditions</header><text>The Secretary shall establish terms and conditions for assistance under this paragraph that are consistent with the terms and conditions for assistance under this subsection.</text> </clause></subparagraph></paragraph><paragraph id="id5f0a7422e4f9427ca104c1064e5feda2"><enum>(7)</enum><header>No duplicative payments</header><text>An eligible livestock producer may elect to receive assistance for eligible forage losses under either paragraph (4), (5), or (6), if applicable, but may not receive assistance under more than 1 of those paragraphs for the same loss, as determined by the Secretary.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE5466C6D322D45169170EE2C8D5477E6"><enum>(8)</enum><header display-inline="yes-display-inline">Determinations by Secretary</header><text display-inline="yes-display-inline">A determination made by the Secretary under this subsection shall be final and conclusive.</text> </paragraph></subsection><subsection id="ide9e308388a88423e8dd0916945fc8727"><enum>(d)</enum><header>Emergency assistance for livestock, honey bees, and farm-raised fish</header> <paragraph id="id74c167bb507445c3a3c62a1470940d72"><enum>(1)</enum><header>In general</header><text>For each of fiscal years 2012 through 2017, the Secretary shall use not more than $5,000,000 of the funds of the Commodity Credit Corporation to provide emergency relief to eligible producers of livestock, honey bees, and farm-raised fish to aid in the reduction of losses due to disease, adverse weather, or other conditions, such as blizzards and wildfires, as determined by the Secretary, that are not covered under subsection (b) or (c).</text> </paragraph><paragraph id="id7d2085c9dda34a29a89568c4669bc88e"><enum>(2)</enum><header>Use of funds</header><text>Funds made available under this subsection shall be used to reduce losses caused by feed or water shortages, disease, or other factors as determined by the Secretary.</text> </paragraph><paragraph id="id3ac96a15dbd4402fa25fed422d5405b6"><enum>(3)</enum><header>Availability of funds</header><text>Any funds made available under this subsection shall remain available until expended.</text> </paragraph></subsection><subsection id="id8b5f9edb9e8645548fcfb833a1bc9897"><enum>(e)</enum><header>Tree assistance program</header> <paragraph id="id03302a54081a40e6bb45839aa6309078"><enum>(1)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="id9f4d754c285d4792a12e6c098094b58d"><enum>(A)</enum><header>Eligible orchardist</header><text>The term <term>eligible orchardist</term> means a person that produces annual crops from trees for commercial purposes.</text> </subparagraph><subparagraph id="id66f69c2d7e514e00842004ad14a05370"><enum>(B)</enum><header>Natural disaster</header><text>The term <term>natural disaster</term> means plant disease, insect infestation, drought, fire, freeze, flood, earthquake, lightning, or other occurrence, as determined by the Secretary.</text> </subparagraph><subparagraph id="id2d1bec166f5940eeb754b6c1b229a2f4"><enum>(C)</enum><header>Nursery tree grower</header><text>The term <term>nursery tree grower</term> means a person who produces nursery, ornamental, fruit, nut, or Christmas trees for commercial sale, as determined by the Secretary.</text> </subparagraph><subparagraph id="id9de19ab55a094c53a3a85de4f133babf"><enum>(D)</enum><header>Tree</header><text>The term <term>tree</term> includes a tree, bush, and vine.</text> </subparagraph></paragraph><paragraph id="idf4ae3b9a7b114860ab2028d611995844"><enum>(2)</enum><header>Eligibility</header> <subparagraph id="id2500b61b7fbc4c2da9e25349395e8fa5"><enum>(A)</enum><header>Loss</header><text>Subject to subparagraph (B), for each of fiscal years 2012 through 2017, the Secretary shall use such sums as are necessary of the funds of the Commodity Credit Corporation to provide assistance—</text> <clause id="id02f5d41ddea04eb6853efd158ea1ed5c"><enum>(i)</enum><text>under paragraph (3) to eligible orchardists and nursery tree growers that planted trees for commercial purposes but lost the trees as a result of a natural disaster, as determined by the Secretary; and</text> </clause><clause id="id9af5017b6d234514bee907d40d154cf5"><enum>(ii)</enum><text>under paragraph (3)(B) to eligible orchardists and nursery tree growers that have a production history for commercial purposes on planted or existing trees but lost the trees as a result of a natural disaster, as determined by the Secretary.</text> </clause></subparagraph><subparagraph id="ide5edf90bf4ce4885ab61310300917c2d"><enum>(B)</enum><header>Limitation</header><text>An eligible orchardist or nursery tree grower shall qualify for assistance under subparagraph (A) only if the tree mortality of the eligible orchardist or nursery tree grower, as a result of damaging weather or related condition, exceeds 15 percent (adjusted for normal mortality).</text> </subparagraph></paragraph><paragraph id="id99779d5c13f348e486935adbedfbefc9"><enum>(3)</enum><header>Assistance</header><text>Subject to paragraph (4), the assistance provided by the Secretary to eligible orchardists and nursery tree growers for losses described in paragraph (2) shall consist of—</text> <subparagraph id="idb9fb9c6a3813470c8918db63461869c4"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="idA5C74BBD71C34356A7C90802AD9BB924"><enum>(i)</enum><text>reimbursement of 65 percent of the cost of replanting trees lost due to a natural disaster, as determined by the Secretary, in excess of 15 percent mortality (adjusted for normal mortality); or</text> </clause><clause id="idED4A99F57497495EABF5481CD3C1C35F" indent="up1"><enum>(ii)</enum><text>at the option of the Secretary, sufficient seedlings to reestablish a stand; and</text> </clause></subparagraph><subparagraph id="idea029a2cdb29418e94c4ae094af19987"><enum>(B)</enum><text>reimbursement of 50 percent of the cost of pruning, removal, and other costs incurred by an eligible orchardist or nursery tree grower to salvage existing trees or, in the case of tree mortality, to prepare the land to replant trees as a result of damage or tree mortality due to a natural disaster, as determined by the Secretary, in excess of 15 percent damage or mortality (adjusted for normal tree damage and mortality).</text> </subparagraph></paragraph><paragraph id="idab3025dc1a97439daae23da0685c07b3"><enum>(4)</enum><header>Limitations on assistance</header> <subparagraph id="id852e008c09584b9790a47e2a04ffe3cc"><enum>(A)</enum><header>Definitions of legal entity and person</header><text>In this paragraph, the terms <term>legal entity</term> and <term>person</term> have the meaning given those terms in section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a)).</text> </subparagraph><subparagraph id="id38a4c8c3240e47468e0301d98b7d07d6"><enum>(B)</enum><header>Amount</header><text>The total amount of payments received, directly or indirectly, by a person or legal entity (excluding a joint venture or general partnership) under this subsection may not exceed $100,000 for any crop year, or an equivalent value in tree seedlings.</text> </subparagraph><subparagraph id="id28ba1d67300547fdad060620e0acfbbf"><enum>(C)</enum><header>Acres</header><text>The total quantity of acres planted to trees or tree seedlings for which a person or legal entity shall be entitled to receive payments under this subsection may not exceed 500 acres.</text> </subparagraph></paragraph></subsection><subsection id="id0ce66670bfba4cf59f5e316d8fb924fc"><enum>(f)</enum><header>Payments</header> <paragraph id="idb35cb4026df8484bacce5234a14bb73b"><enum>(1)</enum><header>Payment limitations</header> <subparagraph id="id80d3460788bf4c42bb5e6d0fb33b17a2"><enum>(A)</enum><header>Definitions of legal entity and person</header><text>In this subsection, the terms <quote>legal entity</quote> and <quote>person</quote> have the meanings given those terms in section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a)).</text> </subparagraph><subparagraph id="id8c6d2a0229c14152a970a0f1d41f67fd"><enum>(B)</enum><header>Amount</header><text>The total amount of disaster assistance payments received, directly or indirectly, by a person or legal entity (excluding a joint venture or general partnership) under this section (excluding payments received under subsection (e)) may not exceed $100,000 for any crop year.</text> </subparagraph><subparagraph id="id387de0736e5347a089523568153e2291"><enum>(C)</enum><header>Direct attribution</header><text>Subsections (d) and (e) of section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) or any successor provisions relating to direct attribution shall apply with respect to assistance provided under this section.</text> </subparagraph></paragraph><paragraph id="id15f9275131d4464b8bf0717cf9be773f"><enum>(2)</enum><header>Payment delivery</header><text>The Secretary shall make payments under this section after October 1, 2013, for losses incurred in the 2012 and 2013 fiscal years, and as soon as practicable for losses incurred in any year thereafter.</text> </paragraph></subsection></section></subtitle><subtitle id="H5976198D707F4D6A9CCFD73BAA296A64"><enum>F</enum><header>Administration</header> <section id="H7B256B0333624634AB2F09955D6A07BE"><enum>1601.</enum><header>Administration generally</header> <subsection id="H8E3627C507704D1B94242D0EB8A6A7AC"><enum>(a)</enum><header>Use of Commodity Credit Corporation</header><text>The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this title.</text> </subsection><subsection id="H99AC05FEC2F74C84B379E2F787B5E21F"><enum>(b)</enum><header>Determinations by Secretary</header><text>A determination made by the Secretary under this title shall be final and conclusive.</text> </subsection><subsection id="H28BD65BC82E84CDAA8925EBF108B2540"><enum>(c)</enum><header>Regulations</header> <paragraph id="HE27D38DF2CE54BD0A0E020A53A3E31CF"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, not later than 90 days after the date of enactment of this Act, the Secretary and the Commodity Credit Corporation, as appropriate, shall promulgate such regulations as are necessary to implement this title and the amendments made by this title.</text> </paragraph><paragraph id="H14D15678FFF7465C8AF01FEDFAD82F44"><enum>(2)</enum><header>Procedure</header><text>The promulgation of the regulations and administration of this title and the amendments made by this title and sections 11001 and 11011 of this Act shall be made without regard to—</text> <subparagraph id="ID7BC313864A4A432988B951E3CA3D19AE"><enum>(A)</enum><text>the notice and comment provisions of section 553 of title 5, United States Code;</text> </subparagraph><subparagraph id="H5BC59E22AF894073AF812BBEAED1AE2F"><enum>(B)</enum><text>chapter 35 of title 44, United States Code (commonly known as the <quote>Paperwork Reduction Act</quote>); and</text> </subparagraph><subparagraph id="HDF198B04425B475AA9C2F3DB8151B4C2"><enum>(C)</enum><text>the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking.</text> </subparagraph></paragraph><paragraph id="H3212629BBF04481FBA558CB52E5A6ABA"><enum>(3)</enum><header>Congressional review of agency rulemaking</header><text>In carrying out this subsection, the Secretary shall use the authority provided under section 808 of title 5, United States Code.</text> </paragraph></subsection><subsection id="H6477136B4BEC4514B64596C453D7189B"><enum>(d)</enum><header>Adjustment Authority Related to Trade Agreements Compliance</header> <paragraph id="H51BFE762FCE24D9C91882C86DC33E715"><enum>(1)</enum><header>Required determination; adjustment</header><text>If the Secretary determines that expenditures under this title that are subject to the total allowable domestic support levels under the Uruguay Round Agreements (as defined in section 2 of the Uruguay Round Agreements Act (19 U.S.C. 3501)) will exceed the allowable levels for any applicable reporting period, the Secretary shall, to the maximum extent practicable, make adjustments in the amount of the expenditures during that period to ensure that the expenditures do not exceed the allowable levels.</text> </paragraph><paragraph id="H16FA7946CBBA4D368AC5CC57C209EC30"><enum>(2)</enum><header>Congressional notification</header><text>Before making any adjustment under paragraph (1), the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the determination made under that paragraph and the extent of the adjustment to be made.</text> </paragraph></subsection></section><section id="H3272F8794B6145C6B9C68767530894B8"><enum>1602.</enum><header>Suspension of permanent price support authority</header> <subsection id="ID18fb8c5db23147da920df7275e9d9e05"><enum>(a)</enum><header>Agricultural Adjustment Act of 1938</header><text>The following provisions of the Agricultural Adjustment Act of 1938 shall not be applicable to the 2013 through 2017 crops of covered commodities (as defined in section 1104), cotton, and sugar and shall not be applicable to milk during the period beginning on the date of enactment of this Act through December 31, 2017:</text> <paragraph id="IDe344011443f840ea9b8032daa04ce134"><enum>(1)</enum><text>Parts II through V of subtitle B of title III (7 U.S.C. 1326 et seq.).</text> </paragraph><paragraph id="ID80b769c7d25a451c88b4104407fcadb9"><enum>(2)</enum><text>In the case of upland cotton, section 377 (7 U.S.C. 1377).</text> </paragraph><paragraph id="ID58c48fdc021748b98d0cb14a6adff664"><enum>(3)</enum><text>Subtitle D of title III (7 U.S.C. 1379a et seq.).</text> </paragraph><paragraph id="idEEE09865DE0B45308643E9E4DF47D88E"><enum>(4)</enum><text>Title IV (7 U.S.C. 1401 et seq.).</text> </paragraph></subsection><subsection id="ID5bbdd9a83d0647769badd5f34076c6bb"><enum>(b)</enum><header>Agricultural Act of 1949</header><text>The following provisions of the Agricultural Act of 1949 shall not be applicable to the 2013 through 2017 crops of covered commodities (as defined in section 1104), cotton, and sugar and shall not be applicable to milk during the period beginning on the date of enactment of this Act and through December 31, 2017:</text> <paragraph id="IDda3cca3dcfdd41f8acdaa5de4decf450"><enum>(1)</enum><text>Section 101 (7 U.S.C. 1441).</text> </paragraph><paragraph id="IDf2a5e6137faa43d29361bb5dff3d5011"><enum>(2)</enum><text>Section 103(a) (7 U.S.C. 1444(a)).</text> </paragraph><paragraph id="ID8a17c70e81014fce8118eed73753271e"><enum>(3)</enum><text>Section 105 (7 U.S.C. 1444b).</text> </paragraph><paragraph id="IDfad07b9eefee407e9d5bdd11878f73e6"><enum>(4)</enum><text>Section 107 (7 U.S.C. 1445a).</text> </paragraph><paragraph id="IDcff8653417764337a5717a76e623ada9"><enum>(5)</enum><text>Section 110 (7 U.S.C. 1445e).</text> </paragraph><paragraph id="IDbdcae5eed11f427aa308f859e8eff014"><enum>(6)</enum><text>Section 112 (7 U.S.C. 1445g).</text> </paragraph><paragraph id="IDf35945ea175149feb3dd891ee8f0bf0c"><enum>(7)</enum><text>Section 115 (7 U.S.C. 1445k).</text> </paragraph><paragraph id="IDecbe46a224b749c99a7e05ab06597cae"><enum>(8)</enum><text>Section 201 (7 U.S.C. 1446).</text> </paragraph><paragraph id="IDd10b5fa4ef3e4edc8e9afe66278b0d3a"><enum>(9)</enum><text>Title III (7 U.S.C. 1447 et seq.).</text> </paragraph><paragraph id="ID5bcc208d411b4de3b5235c99f76df690"><enum>(10)</enum><text>Title IV (7 U.S.C. 1421 et seq.), other than sections 404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).</text> </paragraph><paragraph id="ID47b2ea20a11d47ab90fcd968892a6004"><enum>(11)</enum><text>Title V (7 U.S.C. 1461 et seq.).</text> </paragraph><paragraph id="ID550a4b6259424763a5066f1d7059b74b"><enum>(12)</enum><text>Title VI (7 U.S.C. 1471 et seq.).</text> </paragraph></subsection><subsection id="ID1465e3cd82db42d0938ba4e7c44c0b1a"><enum>(c)</enum><header>Suspension of certain quota provisions</header><text>The joint resolution entitled <quote>A joint resolution relating to corn and wheat marketing quotas under the Agricultural Adjustment Act of 1938, as amended</quote>, approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable to the crops of wheat planted for harvest in the calendar years 2013 through 2017.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id11722A3B59964B4784020D868B9A4067"><enum>1603.</enum><header>Payment limitations</header> <subsection commented="no" display-inline="no-display-inline" id="id998CD0873E3F47628BB4E0540D3DDBD5"><enum>(a)</enum><header>In general</header><text>Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended by striking subsections (b) and (c) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id63D89A9E58BB47AABB3E98D1F5F94F1F" style="OLC"> <subsection id="IDa909ced18f3c4619bef0e03b59020e26"><enum>(b)</enum><header>Limitation on payments for peanuts and other covered commodities</header><text>The total amount of payments received, directly or indirectly, by a person or legal entity (except a joint venture or general partnership) for any crop year under title I of subtitle A of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title> for—</text> <paragraph id="id6E027A5EF96C4AB5BF3D5F75C5D6811B"><enum>(1)</enum><text>peanuts may not exceed $50,000; and</text> </paragraph><paragraph id="idAC35B67496724D35814BB4284BA399AE"><enum>(2)</enum><text>1 or more other covered commodities may not exceed $50,000.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id5E3559D0D04141E9A022ED5BA252869D"><enum>(b)</enum><header>Limitation on marketing loan gains and loan deficiency payments for peanuts and other covered commodities</header><text>Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended by striking subsection (d) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id22CB7915C42448D394F1E4E913760E26" style="OLC"> <subsection id="id8B8F3779B4B44F44A15D32DD27F7E0D4"><enum>(d)</enum><header>Limitation on marketing loan gains and loan deficiency payments for peanuts and other covered commodities</header><text>The total amount of marketing loan gains and loan deficiency payments received, directly or indirectly, by a person or legal entity (except a joint venture or general partnership) for any crop year under subtitle B of the Agriculture Reform, Food, and Jobs Act of 2012 (or a successor provision) for—</text> <paragraph id="id48BE6F124B664D81A57F70324CDAF892"><enum>(1)</enum><text>peanuts may not exceed $75,000; and</text> </paragraph><paragraph id="id0300C2F8F03D4DDA9BC498148811DD89"><enum>(2)</enum><text>1 or more other covered commodities may not exceed $75,000.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id65EAF33E14C9455EB683EF94B130A3BB"><enum>(c)</enum><header>Conforming amendments</header> <paragraph commented="no" display-inline="no-display-inline" id="id7B35BDC3FED1456092765E693A40A7A4"><enum>(1)</enum><text>Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended—</text> <subparagraph commented="no" display-inline="no-display-inline" id="idCE55ABC56ABF40F1A70917931F498E6E"><enum>(A)</enum><text>in subsection (a)(1), by striking <quote>section 1001 of the Food, Conservation, and Energy Act of 2008</quote> and inserting <quote>section 1104 of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title></quote>;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF02E31DBD5EE4A27BAAE4BD4E1BE9B02"><enum>(B)</enum><text>in subsection (d), by inserting <quote>or title I of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title></quote> before the period at the end;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id293C6D9DB75C449789EEE6AA9E2A77DF"><enum>(C)</enum><text>in subsection (e)—</text> <clause commented="no" display-inline="no-display-inline" id="id152AC4A1BD894BF0B8B700C4655ABAE1"><enum>(i)</enum><text>in paragraph (1), by striking <quote>subsections (b) and (c) and a program described in paragraphs (1)(C)</quote> and inserting <quote>subsection (b) and a program described in paragraph (1)(B)</quote>; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="id4992ACEFB96644E78D24E414644D4B8D"><enum>(ii)</enum><text>in paragraph (3)(B), by striking <quote>subsections (b) and (c)</quote> each place it appears and inserting <quote>subsection (b)</quote>;</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id76ECACAA01884D68B57E4A2C1EDD0A8F"><enum>(D)</enum><text>in subsection (f)—</text> <clause commented="no" display-inline="no-display-inline" id="id23DC7FC1707D4A53B0B2895590F49109"><enum>(i)</enum><text>by striking <quote>or title XII</quote> each place it appears in paragraphs (5)(A) and (6)(A) and inserting <quote>, title I of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>, or title XII</quote>;</text> </clause><clause commented="no" display-inline="no-display-inline" id="id132C1ADBC0D74302B0CE38AF8BA7228F"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>Subsections (b) and (c)</quote> and inserting <quote>Subsection (b)</quote>;</text> </clause><clause commented="no" display-inline="no-display-inline" id="id447713DFA9B64A9CA4B9980AFBD5BF9B"><enum>(iii)</enum><text>in paragraph (4)(B), by striking <quote>subsection (b) or (c)</quote> and inserting <quote>subsection (b)</quote>;</text> </clause><clause commented="no" display-inline="no-display-inline" id="id7245F2E7AF154A89AE652CC869E6FBE7"><enum>(iv)</enum><text>in paragraph (5)—</text> <subclause commented="no" display-inline="no-display-inline" id="id03038B645BE44B88B30EFC560C2FF471"><enum>(I)</enum><text>in subparagraph (A), by striking <quote>subsection (d)</quote> and inserting <quote>subsection (c)</quote>; and</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="id067D1A08683947C297DBACD056BF8814"><enum>(II)</enum><text>in subparagraph (B), by striking <quote>subsection (b), (c), or (d)</quote> and inserting <quote>subsection (b) or (c)</quote>; and</text> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="id106E6A1074354D64B0F4A99D41E4C311"><enum>(v)</enum><text>in paragraph (6)—</text> <subclause commented="no" display-inline="no-display-inline" id="id5C342B9BC72E4EE18D15DEAF868B1DE4"><enum>(I)</enum><text>in subparagraph (A), by striking <quote>subsection (d), except as provided in subsection (g)</quote> and inserting <quote>subsection (c), except as provided in subsection (f)</quote>; and</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="idFEEC6147557B4B5CA9322294ADF1E01B"><enum>(II)</enum><text>in subparagraph (B), by striking <quote>subsections (b), (c), and (d)</quote> and inserting <quote>subsections (b) and (c)</quote>;</text> </subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idACF13409D2914649A447D2D1B1B171E1"><enum>(E)</enum><text>in subsection (g)—</text> <clause commented="no" display-inline="no-display-inline" id="id2782735651B746BAB01AB8E1AA7E36BC"><enum>(i)</enum><text>in paragraph (1)—</text> <subclause commented="no" display-inline="no-display-inline" id="id63EAAEA9E10C4D66AC0AE4549864BE4C"><enum>(I)</enum><text>bv striking <quote>subsection (f)(6)(A)</quote> and inserting <quote>subsection (e)(6)(A)</quote> and</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="id48ACE14E05F942429B9BE1C6623344FF"><enum>(II)</enum><text>by striking <quote>subsection (b) or (c)</quote> and inserting <quote>subsection (b)</quote>; and</text> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="id2283BCE5D2364ACBAF5762DEAD47AC1B"><enum>(ii)</enum><text>in paragraph (2)(A), by striking <quote>subsections (b) and (c)</quote> and inserting <quote>subsection (b)</quote>; and</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2A8646440E9F4489A888ADF566A2DC9B"><enum>(F)</enum><text>by redesignating subsections (d) through (h) as subsections (c) through (g), respectively.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA1960260CD684A20A369B565464D532C"><enum>(2)</enum><text>Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308–1) is amended—</text> <subparagraph commented="no" display-inline="no-display-inline" id="id8A6C963DFC4845119651C832BE5E8D50"><enum>(A)</enum><text>in subsection (a), by striking <quote>subsections (b) and (c)</quote> and inserting <quote>subsection (b)</quote>; and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB82F611E1F464599B1D4DF96F78198E9"><enum>(B)</enum><text>in subsection (b)(1), by striking <quote>subsection (b) or (c)</quote> and inserting <quote>subsection (b)</quote>.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA761E58EB68C4A7CABAB66F98C912925"><enum>(3)</enum><text>Section 1001B(a) of the Food Security Act of 1985 (7 U.S.C. 1308–2(a)) is amended in the matter preceding paragraph (1) by striking <quote>subsections (b) and (c)</quote> and inserting <quote>subsection (b)</quote>.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9DBBD49C4EC04F14A68DB4E977E07CD2"><enum>(4)</enum><text>Section 1001C(a) of the Food Security Act of 1985 (7 U.S.C. 1308–3(a)) is amended by inserting <quote>title I of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>,</quote> after <quote>2008,</quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9EF7B28FF1EF4EADA353EC4B9ED04673"><enum>(d)</enum><header>Application</header><text>The amendments made by this section shall apply beginning with the 2013 crop year.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id8603DD43A1CB40B9A580405D346FED1B"><enum>1604.</enum><header>Payments limited to active farmers</header><text display-inline="no-display-inline">Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308–1) is amended—</text> <paragraph id="idf917c774c22444eca13e8da3f3261d2f"><enum>(1)</enum><text>in subsection (b)(2)—</text> <subparagraph id="id7281912cd9bc455fab30cd8004fb7723"><enum>(A)</enum><text>by striking <quote>or active personal management</quote> each place it appears in subparagraphs (A)(i)(II) and (B)(ii); and</text> </subparagraph><subparagraph id="id6e307d9195ab4c029c65ede5b5619ab2"><enum>(B)</enum><text>in subparagraph (C), by striking <quote>, as applied to the legal entity, are met by the legal entity, the partners or members making a significant contribution of personal labor or active personal management</quote> and inserting <quote>are met by partners or members making a significant contribution of personal labor, those partners or members</quote>; and</text> </subparagraph></paragraph><paragraph id="id5755b067087b4439b25159bbdc9cca21"><enum>(2)</enum><text>in subsection (c)—</text> <subparagraph id="id54e2f325f8214f1f9a85ada377735da6"><enum>(A)</enum><text>in paragraph (1)—</text> <clause id="id4095bbfe7f1c40c984eb8c1644911a99"><enum>(i)</enum><text>by striking subparagraph (A) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id76219c94ede24540a2962cf2ca22dcbf" style="OLC"> <subparagraph id="id6fa61521e4024f01af30af0c3cbcd64b"><enum>(A)</enum><text>the landowner share-rents the land at a rate that is usual and customary;</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </clause><clause id="id79f945296b98409a8c627f99c68799e3"><enum>(ii)</enum><text>in subparagraph (B), by striking the period at the end and inserting <quote>; and</quote>; and</text> </clause><clause id="idcf22ee9a1d974429905155f6ce854157"><enum>(iii)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idcb6ff992c45f4bd0969d163e57198d88" style="OLC"> <subparagraph id="idb109f1ccb6b24549b2b4f630365c9e95"><enum>(C)</enum><text>the share of the payments received by the landowner is commensurate with the share of the crop or income received as rent.</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph id="idf4644feb056747799ac1fe544121640c"><enum>(B)</enum><text>in paragraph (2)(A), by striking <quote>active personal management or</quote>;</text> </subparagraph><subparagraph id="id50855205e273408e98848a4152371a22"><enum>(C)</enum><text>in paragraph (5)—</text> <clause id="id34ff1b461b9d42ef8b076d58de8a274d"><enum>(i)</enum><text>by striking <quote>(5)</quote> and all that follows through <quote>(A) <header-in-text level="subparagraph" style="OLC">In general</header-in-text>.—A person</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id26cf4d6b89b74b9e8d5d7de38ccae452" style="OLC"> <paragraph id="id358daa192ca24415915405f53c14bf43"><enum>(5)</enum><header>Custom farming services</header><text>A person</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </clause><clause id="idcc5efb06ee5145559008fe024dc7a313"><enum>(ii)</enum><text>by inserting <quote>under usual and customary terms</quote> after <quote>services</quote>; and</text> </clause><clause id="id596e8e58bdf6419593c6444a6130b6cd"><enum>(iii)</enum><text>by striking subparagraph (B); and</text> </clause></subparagraph><subparagraph id="idba2e7c20201c40d9a8b78486bd124a9b"><enum>(D)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id0c693549c5724f80a5982deb5cf2927a" style="OLC"> <paragraph id="id14a05f727e17403182e0f74cb668cb4c"><enum>(7)</enum><header>Farm managers</header><text>A person who otherwise meets the requirements of this subsection other than (b)(2)(A)(i)(II) shall be considered to be actively engaged in farming, as determined by the Secretary, with respect to the farming operation, including a farming operation that is a sole proprietorship, a legal entity such as a joint venture or general partnership, or a legal entity such as a corporation or limited partnership, if the person—</text> <subparagraph id="id37dbc9d61f51471c90fcdfd5f711ec72"><enum>(A)</enum><text>makes a significant contribution of management to the farming operation necessary for the farming operation, taking into account—</text> <clause id="idb2e1908c88564d41b2fa1eb1fbc9f774"><enum>(i)</enum><text>the size and complexity of the farming operation; and</text> </clause><clause id="id38e9a883bea748c8bf30b509c291dd16"><enum>(ii)</enum><text>the management requirements normally and customarily required by similar farming operations;</text> </clause></subparagraph><subparagraph id="id4bf211bb053044d7a7a2396dc974e3e6"><enum>(B)</enum><text>is the only person in the farming operation qualifying as actively engaged in farming;</text> </subparagraph><subparagraph id="id019c44abde4445c4aaf6682ab6101dcf"><enum>(C)</enum><text>does not use the management contribution under this paragraph to qualify as actively engaged in more than 1 farming operation; and</text> </subparagraph><subparagraph id="id73a085f3ed7c4f92b7d51e7f5d375944"><enum>(D)</enum><text>manages a farm operation that does not substantially share equipment, labor, or management with persons or legal entities that with the person collectively receive, directly or indirectly, an amount equal to more than the applicable limits under section 1001(b).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="id155856623EA84F58A6AD1C72DF6DEF2C"><enum>1605.</enum><header>Adjusted gross income limitation</header> <subsection commented="no" display-inline="no-display-inline" id="id6381350CBE704300BCAA0EBD7764A9ED"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1001D(b)) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)) is amended by striking paragraph (1) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id18ED305E51BE468F9A641E29059D42BB" style="OLC"> <paragraph id="ID7b3ffb925361400994bd1c294dac87b4"><enum>(1)</enum><header>Commodity programs</header> <subparagraph id="id8AEE3FCD1CD1485A8665606D8A5385A4"><enum>(A)</enum><header>Limitation</header><text>Notwithstanding any other provision of law, a person or legal entity shall not be eligible to receive any benefit described in subparagraph (B) during a crop, fiscal or program year, as appropriate, if the average adjusted gross income (or comparable measure over the 3 taxable years preceding the most immediately preceding complete taxable year, as determined by the Secretary) of the person or legal entity exceeds $750,000.</text> </subparagraph><subparagraph id="idDA15B611809E44D0A91E30768BDEC0BC"><enum>(B)</enum><header>Covered benefits</header><text>Subparagraph (A) applies with respect to the following:</text> <clause commented="no" display-inline="no-display-inline" id="id1583DE1DEA48421CB108B0BB8C93A32F"><enum>(i)</enum><text>A payment under section 1105 of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>.</text> </clause><clause commented="no" display-inline="no-display-inline" id="idF463A0CF2F3947E8AB5CA56EA756B058"><enum>(ii)</enum><text>A marketing loan gain or loan deficiency payment under subtitle B of title I of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>.</text> </clause><clause commented="no" display-inline="no-display-inline" id="id560B681A7574430BBCF5F6D1A6F95520"><enum>(iii)</enum><text>A payment under subtitle E of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <quoted-block display-inline="no-display-inline" id="ideef35e8450564722842d663acdcfc225" style="OLC"> <clause id="id5133f456c7354314b5bc3fe811a7626d"><enum>(iv)</enum><text>A payment under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="id6A46881BB0DA4108828D47358117BA04"><enum>(b)</enum><header>Application</header><text>The amendments made by this section shall apply beginning with the 2013 crop year.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="IDEC2E07964F91432DA2DCFA906E71BF35" section-type="subsequent-section"><enum>1606.</enum><header>Geographically disadvantaged farmers and ranchers</header><text display-inline="no-display-inline">Section 1621(d) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8792(d)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section commented="no" id="ID856e8e46ed4d4741913c911f3bddbcdb"><enum>1607.</enum><header>Personal liability of producers for deficiencies</header><text display-inline="no-display-inline">Section 164 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7284) is amended by striking <quote>and title I of the Food, Conservation, and Energy Act of 2008</quote> each place it appears and inserting <quote>title I of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702 et seq.), and title I of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title></quote>.</text> </section><section id="ID904962dbefa04f60b4b2d3764fd4a886"><enum>1608.</enum><header>Prevention of deceased individuals receiving payments under farm commodity programs</header> <subsection id="ID4e3b57ad143c4a0e98ba9d2c48c033d8"><enum>(a)</enum><header>Reconciliation</header><text>At least twice each year, the Secretary shall reconcile social security numbers of all individuals who receive payments under this title, whether directly or indirectly, with the Commissioner of Social Security to determine if the individuals are alive.</text> </subsection><subsection id="ID993a9229980045c2b94fa4ff6f05a6d7"><enum>(b)</enum><header>Preclusion</header><text>The Secretary shall preclude the issuance of payments to, and on behalf of, deceased individuals that were not eligible for payments.</text> </subsection></section><section id="ID606c815683254d78b013cf6e38966799"><enum>1609.</enum><header>Appeals</header> <subsection id="ID6d674c459b7d4741be9a8f0b58c7b4c8"><enum>(a)</enum><header>Direction, control, and support</header><text>Section 272 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6992) is amended by striking subsection (c) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idE512350142DE4E43BF69C8B7F64FFA80" style="OLC"> <subsection id="IDaa94e2cd1b8941fcbd2a889ec1ea06df"><enum>(c)</enum><header>Direction, control, and support</header> <paragraph id="ID51cec7b98863454fbface325e2ae7813"><enum>(1)</enum><header>Direction and control</header> <subparagraph id="ID44aa389ba854427c947204fce9688fa0"><enum>(A)</enum><header>In general</header><text>Except as provided in paragraph (2), the Director shall be free from the direction and control of any person other than the Secretary or the Deputy Secretary of Agriculture.</text> </subparagraph><subparagraph id="ID0c8ffbbcb823452e83bffdff75617d3a"><enum>(B)</enum><header>Administrative support</header><text>The Division shall not receive administrative support (except on a reimbursable basis) from any agency other than the Office of the Secretary.</text> </subparagraph><subparagraph id="IDc3a6342b0dd74379b198cf78cbf13239"><enum>(C)</enum><header>Prohibition on delegation</header><text>The Secretary may not delegate to any other officer or employee of the Department, other than the Deputy Secretary of Agriculture or the Director, the authority of the Secretary with respect to the Division.</text> </subparagraph></paragraph><paragraph id="ID7d464ec89e9748588e703a0fadaa89ce"><enum>(2)</enum><header>Exception</header><text>The Assistant Secretary for Administration is authorized to investigate, enforce, and implement the provisions in law, Executive order, or regulations that relate in general to competitive and excepted service positions and employment within the Division, including the position of Director, and such authority may be further delegated to subordinate officials.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="IDc25ecacf9cfa4f71be147ffe0c3bbfb0"><enum>(b)</enum><header>Determination of appealability of agency decisions</header><text>Section 272 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6992) is amended by striking subsection (d) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id8448D71CB8C542C0A89653295A391CDF" style="OLC"> <subsection id="IDd9d5488fb1324725b44c6a69e4dd61b3"><enum>(d)</enum><header>Determination of appealability of agency decisions</header> <paragraph id="IDb1528eaf1f1a4513aece430b9b16de06"><enum>(1)</enum><header>Definition of a matter of general applicability</header><text>In this subsection, the term <term>a matter of general applicability</term> means a matter that challenges the merits or authority of a rule, procedure, local or national program practice, or determination of an agency that applies, or can apply, to more than 1 interested party as opposed to the particular application of the rule, procedure, or practice to a specific set of facts or the facts themselves as the facts apply to 1 particular interested party.</text> </paragraph><paragraph id="IDfe597a5e084a4f1f999965f00b7b1b48"><enum>(2)</enum><header>Matters not subject to appeal</header><text>The Division may not hear appeals—</text> <subparagraph id="IDbc9ace0341d84bc4bb1096f52135ef1e"><enum>(A)</enum><text>unless the determination of the agency is adverse to the appellant;</text> </subparagraph><subparagraph id="ID8e7e0528d9334e11ba2b4c411e807762"><enum>(B)</enum><text>that involve matters of general applicability; and</text> </subparagraph><subparagraph id="ID1f71f8b1243048e294e74a509d98e3b7"><enum>(C)</enum><text>that involve requests for equitable relief unless the equitable relief has been denied by the agency.</text> </subparagraph></paragraph><paragraph id="ID88e773f1b3ff41b8bf509fff6c30c43b"><enum>(3)</enum><header>Equitable relief</header> <subparagraph id="ID76428f4c57e74906ae851c7524db8f4a"><enum>(A)</enum><header>In general</header><text>An appeal requesting equitable relief may not be granted by the Director to an appellant unless, using the rules and practices that the agency applies to itself, the agency could in fact have granted the relief because the appellant acted in good faith, but failed to fully comply with the requirement of the rule or practice of the agency.</text> </subparagraph><subparagraph id="ID77754a2a46434f2aa17eb8c8301915a7"><enum>(B)</enum><header>Remand</header><text>If it cannot be determined whether the agency would have granted equitable relief because the appellant acted in good faith, but failed to comply with the rule or practice of the agency, the matter shall be remanded to the agency for further consideration.</text> </subparagraph></paragraph><paragraph id="IDed0076302c7840bca2dba7c6969d82e8"><enum>(4)</enum><header>Determination of appealability</header><text>If an officer, employee, or committee of an agency determines that a decision is not appealable and a participant appeals the decision to the Director, the Director shall determine whether the decision is adverse to the individual participant and appealable or is a matter of general applicability and not subject to appeal.</text> </paragraph><paragraph id="IDa09468a736634af099e593d24f48af3b"><enum>(5)</enum><header>Appealability of determination</header><text>The determination of the Director as to whether a decision is appealable is final.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="IDeecfc29cbf2d45b89db7ee202f8ba445"><enum>(c)</enum><header>Equitable relief</header><text>Section 278 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6998) is amended by striking subsection (d).</text> </subsection><subsection id="IDa26a1f1545c54f4cb0f766d7db1b0ecd"><enum>(d)</enum><header>Conforming amendment</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="IDd2422278431c49a68b8dca0d188620d0"><enum>(1)</enum><text>in paragraph (6)(C), by striking <quote>or</quote> at the end;</text> </paragraph><paragraph id="ID1fc840333c3049ec9ffe2789a0c80c81"><enum>(2)</enum><text>in paragraph (7), by striking the period at the end and inserting <quote>; or</quote>; and</text> </paragraph><paragraph id="ID058cf87416aa4be7b62e42b76c0c81ef"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id91C71DDE1C9842D181177678CD5016F0" style="OLC"> <paragraph id="IDa113527637c640338c2f007ccba0cd53"><enum>(8)</enum><text>the authority of the Secretary to carry out amendments to sections 272 and 278 made by the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id6CB15714B7AD4BF5B81F7907FAC6E5F9"><enum>1610.</enum><header>Technical corrections</header> <subsection commented="no" display-inline="no-display-inline" id="idB457C8D9DA4A4CC09BEF72F172165672"><enum>(a)</enum><text>Section 359f(c)(1)(B) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)(1)(B)) is amended by adding a period at the end.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id37E942D294174784BB8DAAFB45871E65"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id1FD05CE3ED5841F7ADCEC624F4D5CC8D"><enum>(1)</enum><text display-inline="yes-display-inline">Section 1603(g) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1739) is amended in paragraphs (2) through (6) and the amendments made by those paragraphs by striking <quote>1703(a)</quote> each place it appears and inserting <quote>1603(a)</quote>.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id60DD298103D245CFB16AD6A5C4F43ACB" indent="up1"><enum>(2)</enum><text>This subsection and the amendments made by this subsection take effect as if included in the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1651).</text> </paragraph></subsection></section><section commented="no" id="ID112EC359C1224DAA9613A09BA63C81A5"><enum>1611.</enum><header>Assignment of payments</header> <subsection commented="no" id="ID495CB5B4ABFA413AA579BEDFBEBAF5E9"><enum>(a)</enum><header>In general</header><text>The provisions of section 8(g) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating to assignment of payments, shall apply to payments made under this title.</text> </subsection><subsection commented="no" id="ID98ACF2B317E74D41B616136735BFE0BC"><enum>(b)</enum><header>Notice</header><text>The producer making the assignment, or the assignee, shall provide the Secretary with notice, in such manner as the Secretary may require, of any assignment made under this section.</text> </subsection></section><section commented="no" id="ID550B30C3191047B7BBCFFAA7BBD14693"><enum>1612.</enum><header>Tracking of benefits</header><text display-inline="no-display-inline">As soon as practicable after the date of enactment of this Act, the Secretary may track the benefits provided, directly or indirectly, to individuals and entities under titles I and II and the amendments made by those titles.</text> </section><section commented="no" display-inline="no-display-inline" id="ID1422D7D27820453EA9A761122CCBFA37"><enum>1613.</enum><header>Signature authority</header> <subsection commented="no" id="ID09A3182C760743C0BF63B24B438424F5"><enum>(a)</enum><header>In general</header><text>In carrying out this title and title II and amendments made by those titles, if the Secretary approves a document, the Secretary shall not subsequently determine the document is inadequate or invalid because of the lack of authority of any person signing the document on behalf of the applicant or any other individual, entity, general partnership, or joint venture, or the documents relied upon were determined inadequate or invalid, unless the person signing the program document knowingly and willfully falsified the evidence of signature authority or a signature.</text> </subsection><subsection commented="no" id="ID48E95513D46649FE9AB3F2ED59137319"><enum>(b)</enum><header>Affirmation</header> <paragraph commented="no" id="IDE872E0AB690A4CC7BF4B42EB19FE6D43"><enum>(1)</enum><header>In general</header><text>Nothing in this section prohibits the Secretary from asking a proper party to affirm any document that otherwise would be considered approved under subsection (a).</text> </paragraph><paragraph commented="no" id="IDF3BA365128854DCB954D2F29D4ADEB81"><enum>(2)</enum><header>No retroactive effect</header><text>A denial of benefits based on a lack of affirmation under paragraph (1) shall not be retroactive with respect to third-party producers who were not the subject of the erroneous representation of authority, if the third-party producers—</text> <subparagraph commented="no" id="IDA9450D06AA6745BEB3327CA4FB6C295E"><enum>(A)</enum><text>relied on the prior approval by the Secretary of the documents in good faith; and</text> </subparagraph><subparagraph commented="no" id="ID17DAE56204DB47D39E6886FE7692E339"><enum>(B)</enum><text>substantively complied with all program requirements.</text> </subparagraph></paragraph></subsection></section><section id="ID93e2b7b2716d463dacd8adf17b4c2fde"><enum>1614.</enum><header>Implementation</header> <subsection id="ID5517beb78233498c93c520e27bdfbe8a"><enum>(a)</enum><header>Streamlining</header><text>In implementing this title, the Secretary shall, to the maximum extent practicable—</text> <paragraph id="ID0d549ab4dc2b4a80942fabd478d2d8e1"><enum>(1)</enum><text>seek to reduce administrative burdens and costs to producers by streamlining and reducing paperwork, forms, and other administrative requirements;</text> </paragraph><paragraph id="ID4ce53e8f47f94329b5980ce0a68b1009"><enum>(2)</enum><text>improve coordination, information sharing, and administrative work with the Risk Management Agency and the Natural Resources Conservation Service; and</text> </paragraph><paragraph id="IDdb09cf7522924d95aa9f28300fb9717a"><enum>(3)</enum><text>take advantage of new technologies to enhance efficiency and effectiveness of program delivery to producers.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4F2399C1C78E427AAD8BF44D5C7939FA"><enum>(b)</enum><header>Implementation</header><text>On October 1, 2013, the Secretary shall make available to the Farm Service Agency to carry out this title $100,000,000.</text> </subsection></section></subtitle>

Short title; table of contents

(a)

In general

This Act may be cited as the

Agriculture Reform, Food, and Jobs Act of 2012

. (b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definition of Secretary.

TITLE I—Commodity programs

Subtitle A—Repeals and reforms

Sec. 1101. Repeal of direct payments.

Sec. 1102. Repeal of counter-cyclical payments.

Sec. 1103. Repeal of average crop revenue election program.

Sec. 1104. Definitions.

Sec. 1105. Agriculture risk coverage.

Sec. 1106. Producer agreement required as condition of provision of payments.

Sec. 1107. Period of effectiveness.

Sec. 1108. Adjusted gross income limitation for conservation programs.

Subtitle B—Marketing assistance loans and loan deficiency payments

Sec. 1201. Availability of nonrecourse marketing assistance loans for loan commodities.

Sec. 1202. Loan rates for nonrecourse marketing assistance loans.

Sec. 1203. Term of loans.

Sec. 1204. Repayment of loans.

Sec. 1205. Loan deficiency payments.

Sec. 1206. Payments in lieu of loan deficiency payments for grazed acreage.

Sec. 1207. Special marketing loan provisions for upland cotton.

Sec. 1208. Special competitive provisions for extra long staple cotton.

Sec. 1209. Availability of recourse loans for high moisture feed grains and seed cotton.

Sec. 1210. Adjustments of loans.

Subtitle C—Sugar

Sec. 1301. Sugar program.

Subtitle D—Dairy

PART I—Dairy production margin protection and dairy market stabilization programs

Sec. 1401. Definitions.

Sec. 1402. Calculation of average feed cost and actual dairy production margins.

SUBPART A—Dairy production margin protection program

Sec. 1411. Establishment of dairy production margin protection program.

Sec. 1412. Participation of dairy operations in production margin protection program.

Sec. 1413. Production history of participating dairy operations.

Sec. 1414. Basic production margin protection.

Sec. 1415. Supplemental production margin protection.

Sec. 1416. Effect of failure to pay administration fees or premiums.

SUBPART B—Dairy market stabilization program

Sec. 1431. Establishment of dairy market stabilization program.

Sec. 1432. Threshold for implementation and reduction in dairy payments.

Sec. 1433. Milk marketings information.

Sec. 1434. Calculation and collection of reduced dairy operation payments.

Sec. 1435. Remitting funds to the Secretary and use of funds.

Sec. 1436. Suspension of reduced payment requirement.

Sec. 1437. Enforcement.

Sec. 1438. Audit requirements.

Sec. 1439. Study; report.

SUBPART C—Administration

Sec. 1451. Duration.

Sec. 1452. Administration and enforcement.

PART II—Dairy market transparency

Sec. 1461. Dairy product mandatory reporting.

Sec. 1462. Federal milk marketing order information.

PART III—Repeal or reauthorization of other dairy-related provisions

Sec. 1471. Repeal of dairy product price support and milk income loss contract programs.

Sec. 1472. Repeal of dairy export incentive program.

Sec. 1473. Extension of dairy forward pricing program.

Sec. 1474. Extension of dairy indemnity program.

Sec. 1475. Extension of dairy promotion and research program.

Sec. 1476. Extension of Federal Milk Marketing Order Review Commission.

PART IV—Federal milk marketing order reform

Sec. 1481. Federal milk marketing orders.

PART V—Effective date

Sec. 1491. Effective date.

Subtitle E—Supplemental agricultural disaster assistance programs

Sec. 1501. Supplemental agricultural disaster assistance programs.

Subtitle F—Administration

Sec. 1601. Administration generally.

Sec. 1602. Suspension of permanent price support authority.

Sec. 1603. Payment limitations.

Sec. 1604. Payments limited to active farmers.

Sec. 1605. Adjusted gross income limitation.

Sec. 1606. Geographically disadvantaged farmers and ranchers.

Sec. 1607. Personal liability of producers for deficiencies.

Sec. 1608. Prevention of deceased individuals receiving payments under farm commodity programs.

Sec. 1609. Appeals.

Sec. 1610. Technical corrections.

Sec. 1611. Assignment of payments.

Sec. 1612. Tracking of benefits.

Sec. 1613. Signature authority.

Sec. 1614. Implementation.

TITLE II—Conservation

Subtitle A—Conservation Reserve Program

Sec. 2001. Extension and enrollment requirements of conservation reserve program.

Sec. 2002. Farmable wetland program.

Sec. 2003. Duties of owners and operators.

Sec. 2004. Duties of the Secretary.

Sec. 2005. Payments.

Sec. 2006. Contract requirements.

Sec. 2007. Conversion of land subject to contract to other conserving uses.

Sec. 2008. Effective date.

Subtitle B—Conservation Stewardship Program

Sec. 2101. Conservation stewardship program.

Subtitle C—Environmental Quality Incentives Program

Sec. 2201. Purposes.

Sec. 2202. Definitions.

Sec. 2203. Establishment and administration.

Sec. 2204. Evaluation of applications.

Sec. 2205. Duties of producers.

Sec. 2206. Limitation on payments.

Sec. 2207. Conservation innovation grants and payments.

Sec. 2208. Effective date.

Subtitle D—Agricultural Conservation Easement Program

Sec. 2301. Agricultural Conservation Easement Program.

Subtitle E—Regional Conservation Partnership Program

Sec. 2401. Regional Conservation Partnership Program.

Subtitle F—Other Conservation Programs

Sec. 2501. Conservation of private grazing land.

Sec. 2502. Grassroots source water protection program.

Sec. 2503. Voluntary public access and habitat incentive program.

Sec. 2504. Agriculture conservation experienced services program.

Sec. 2505. Small watershed rehabilitation program.

Sec. 2506. Terminal lakes assistance.

Subtitle G—Funding and administration

Sec. 2601. Funding.

Sec. 2602. Technical assistance.

Sec. 2603. Regional equity.

Sec. 2604. Reservation of funds to provide assistance to certain farmers or ranchers for conservation access.

Sec. 2605. Annual report on program enrollments and assistance.

Sec. 2606. Administrative requirements for conservation programs.

Sec. 2607. Rulemaking authority.

Sec. 2608. Standards for State technical committees.

Sec. 2609. Highly erodible land and wetland conservation for crop insurance.

Subtitle H—Repeal of superseded program authorities and transitional provisions

Sec. 2701. Comprehensive conservation enhancement program.

Sec. 2702. Emergency forestry conservation reserve program.

Sec. 2703. Wetlands reserve program.

Sec. 2704. Farmland protection program and farm viability program.

Sec. 2705. Grassland reserve program.

Sec. 2706. Agricultural water enhancement program.

Sec. 2707. Wildlife habitat incentive program.

Sec. 2708. Great Lakes basin program.

Sec. 2709. Chesapeake Bay watershed program.

Sec. 2710. Cooperative conservation partnership initiative.

Sec. 2711. Environmental easement program.

Sec. 2712. Technical amendments.

TITLE III—Trade

Subtitle A—Food for Peace Act

Sec. 3001. Set-aside for support for organizations through which nonemergency assistance is provided.

Sec. 3002. Food aid quality.

Sec. 3003. Minimum levels of assistance.

Sec. 3004. Reauthorization of Food Aid Consultative Group.

Sec. 3005. Oversight, monitoring, and evaluation of Food for Peace Act programs.

Sec. 3006. Assistance for stockpiling and rapid transportation, delivery, and distribution of shelf-stable prepackaged foods.

Sec. 3007. Limitation on total volume of commodities monetized.

Sec. 3008. Flexibility.

Sec. 3009. Procurement, transportation, testing, and storage of agricultural commodities for prepositioning in the United States and foreign countries.

Sec. 3010. Deadline for agreements to finance sales or to provide other assistance.

Sec. 3011. Minimum level of nonemergency food assistance.

Sec. 3012. Coordination of foreign assistance programs report.

Sec. 3013. Micronutrient fortification programs.

Sec. 3014. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.

Sec. 3015. Prohibition on assistance for North Korea.

Subtitle B—Agricultural Trade Act of 1978

Sec. 3101. Export credit guarantee programs.

Sec. 3102. Funding for market access program.

Sec. 3103. Foreign market development cooperator program.

Subtitle C—Other Agricultural Trade Laws

Sec. 3201. Food for Progress Act of 1985.

Sec. 3202. Bill Emerson Humanitarian Trust.

Sec. 3203. Promotion of agricultural exports to emerging markets.

Sec. 3204. McGovern-Dole International Food for Education and Child Nutrition Program.

Sec. 3205. Technical assistance for specialty crops.

Sec. 3206. Global Crop Diversity Trust.

Sec. 3207. Local and regional food aid procurement projects.

Sec. 3208. Donald Payne Horn of Africa food resilience program.

Sec. 3209. Agricultural trade enhancement study.

TITLE IV—Nutrition

Subtitle A—Supplemental nutrition assistance program

Sec. 4001. Food distribution program on Indian reservations.

Sec. 4002. Standard utility allowances based on the receipt of energy assistance payments.

Sec. 4003. Eligibility disqualifications.

Sec. 4004. Ending supplemental nutrition assistance program benefits for lottery or gambling winners.

Sec. 4005. Retail food stores.

Sec. 4006. Improving security of food assistance.

Sec. 4007. Technology modernization for retail food stores.

Sec. 4008. Use of benefits for purchase of community-supported agriculture share.

Sec. 4009. Restaurant meals program.

Sec. 4010. Quality control error rate determination.

Sec. 4011. Performance bonus payments.

Sec. 4012. Authorization of appropriations.

Sec. 4013. Assistance for community food projects.

Sec. 4014. Emergency food assistance.

Sec. 4015. Nutrition education.

Sec. 4016. Retail food store and recipient trafficking.

Sec. 4017. Technical and conforming amendments.

Subtitle B—Commodity distribution programs

Sec. 4101. Commodity distribution program.

Sec. 4102. Commodity supplemental food program.

Sec. 4103. Distribution of surplus commodities to special nutrition projects.

Sec. 4104. Technical and conforming amendments.

Subtitle C—Miscellaneous

Sec. 4201. Purchase of fresh fruits and vegetables for distribution to schools and service institutions.

Sec. 4202. Seniors farmers' market nutrition program.

Sec. 4203. Nutrition information and awareness pilot program.

Sec. 4204. Whole grain products.

Sec. 4205. Hunger-free communities.

Sec. 4206. Healthy Food Financing Initiative.

Sec. 4207. Pulse crop products.

Sec. 4208. Dietary Guidelines for Americans.

Sec. 4209. Purchases of locally produced foods.

TITLE V—Credit

Subtitle A—Farmer loans, servicing, and other assistance under the Consolidated Farm and Rural Development Act

Sec. 5001. Farmer loans, servicing, and other assistance under the Consolidated Farm and Rural Development Act.

Subtitle B—Miscellaneous

Sec. 5101. State agricultural mediation programs.

Sec. 5102. Loans to purchasers of highly fractionated land.

Sec. 5103. Removal of duplicative appraisals.

TITLE VI—Rural Development

Subtitle A—Reorganization of the Consolidated Farm and Rural Development Act

Sec. 6001. Reorganization of the Consolidated Farm and Rural Development Act.

Sec. 6002. Conforming amendments.

Subtitle B—Rural electrification

Sec. 6101. Definition of rural area.

Sec. 6102. Guarantees for bonds and notes issued for electrification or telephone purposes.

Sec. 6103. Expansion of 911 access.

Sec. 6104. Access to broadband telecommunications services in rural areas.

Subtitle C—Miscellaneous

Sec. 6201. Distance learning and telemedicine.

Sec. 6202. Rural energy savings program.

Sec. 6203. Funding of pending rural development loan and grant applications.

Sec. 6204. Study of rural transportation issues.

Sec. 6205. Agricultural transportation policy.

TITLE VII—Research, Extension, and Related Matters

Subtitle A—National Agricultural Research, Extension, and Teaching Policy Act of 1977

Sec. 7101. National Agricultural Research, Extension, Education, and Economics Advisory Board.

Sec. 7102. Specialty crop committee.

Sec. 7103. Veterinary services grant program.

Sec. 7104. Grants and fellowships for food and agriculture sciences education.

Sec. 7105. Agricultural and food policy research centers.

Sec. 7106. Education grants to Alaska Native serving institutions and Native Hawaiian serving institutions.

Sec. 7107. Nutrition education program.

Sec. 7108. Continuing animal health and disease research programs.

Sec. 7109. Grants to upgrade agricultural and food sciences facilities at 1890 land-grant colleges, including Tuskegee University.

Sec. 7110. Grants to upgrade agricultural and food sciences facilities and equipment at insular area land-grant institutions.

Sec. 7111. Hispanic-serving institutions.

Sec. 7112. Competitive grants for international agricultural science and education programs.

Sec. 7113. University research.

Sec. 7114. Extension service.

Sec. 7115. Supplemental and alternative crops.

Sec. 7116. Capacity building grants for NLGCA institutions.

Sec. 7117. Aquaculture assistance programs.

Sec. 7118. Rangeland research programs.

Sec. 7119. Special authorization for biosecurity planning and response.

Sec. 7120. Distance education and resident instruction grants program for insular area institutions of higher education.

Subtitle B—Food, Agriculture, Conservation, and Trade Act of 1990

Sec. 7201. Best utilization of biological applications.

Sec. 7202. Integrated management systems.

Sec. 7203. Sustainable agriculture technology development and transfer program.

Sec. 7204. National training program.

Sec. 7205. National Genetics Resources Program.

Sec. 7206. National Agricultural Weather Information System.

Sec. 7207. High-priority research and extension initiatives.

Sec. 7208. Organic agriculture research and extension initiative.

Sec. 7209. Farm business management.

Sec. 7210. Regional centers of excellence.

Sec. 7211. Assistive technology program for farmers with disabilities.

Sec. 7212. National rural information center clearinghouse.

Subtitle C—Agricultural Research, Extension, and Education Reform Act of 1998

Sec. 7301. Relevance and merit of agricultural research, extension, and education funded by the Department.

Sec. 7302. Integrated research, education, and extension competitive grants program.

Sec. 7303. Support for research regarding diseases of wheat, triticale, and barley caused by Fusarium graminearum or by Tilletia indica.

Sec. 7304. Grants for youth organizations.

Sec. 7305. Specialty crop research initiative.

Sec. 7306. Food animal residue avoidance database program.

Sec. 7307. Office of pest management policy.

Sec. 7308. Authorization of regional integrated pest management centers.

Subtitle D—Other Laws

Sec. 7401. Critical Agricultural Materials Act.

Sec. 7402. Equity in Educational Land-Grant Status Act of 1994.

Sec. 7403. Research Facilities Act.

Sec. 7404. Competitive, Special, and Facilities Research Grant Act.

Sec. 7405. Enhanced use lease authority pilot program under Department of Agriculture Reorganization Act of 1994.

Sec. 7406. Renewable Resources Extension Act of 1978.

Sec. 7407. National Aquaculture Act of 1980.

Sec. 7408. Beginning farmer and rancher development program under Farm Security and Rural Investment Act of 2002.

Subtitle E—Food, Conservation, and Energy Act of 2008

PART I—Agricultural Security

Sec. 7501. Agricultural biosecurity communication center.

Sec. 7502. Assistance to build local capacity in agricultural biosecurity planning, preparation, and response.

Sec. 7503. Research and development of agricultural countermeasures.

Sec. 7504. Agricultural biosecurity grant program.

PART II—Miscellaneous

Sec. 7511. Grazinglands research laboratory.

Sec. 7512. Budget submission and funding.

Sec. 7513. Natural products research program.

Sec. 7514. Sun grant program.

Subtitle F—Miscellaneous

Sec. 7601. Foundation for Food and Agriculture Research.

Sec. 7602. Objective and scholarly agricultural and food law research and information.

TITLE VIII—Forestry

Subtitle A—Repeal of certain forestry programs

Sec. 8001. Forest land enhancement program.

Sec. 8002. Watershed forestry assistance program.

Sec. 8003. Expired cooperative national forest products marketing program.

Sec. 8004. Hispanic-serving institution agricultural land national resources leadership program.

Sec. 8005. Tribal watershed forestry assistance program.

Subtitle B—Reauthorization of Cooperative Forestry Assistance Act of 1978 programs

Sec. 8101. State-wide assessment and strategies for forest resources.

Sec. 8102. Forest stewardship program.

Sec. 8103. Forest Legacy Program.

Sec. 8104. Community forest and open space conservation program.

Sec. 8105. Urban and community forestry assistance.

Subtitle C—Reauthorization of other forestry-related laws

Sec. 8201. Rural revitalization technologies.

Sec. 8202. Office of International Forestry.

Sec. 8203. Insect infestations and related diseases.

Sec. 8204. Stewardship end result contracting projects.

Sec. 8205. Healthy forests reserve program.

Subtitle D—Miscellaneous provisions

Sec. 8301. McIntire-Stennis Cooperative Forestry Act.

Sec. 8302. Revision of strategic plan for forest inventory and analysis.

TITLE IX—Energy

Sec. 9001. Definition of renewable chemical.

Sec. 9002. Biobased markets program.

Sec. 9003. Biorefinery, renewable chemical, and biobased product manufacturing assistance.

Sec. 9004. Repeal of repowering assistance program and transfer of remaining funds.

Sec. 9005. Bioenergy program for advanced biofuels.

Sec. 9006. Biodiesel fuel education program.

Sec. 9007. Rural Energy for America Program.

Sec. 9008. Biomass research and development.

Sec. 9009. Feedstock flexibility program for bioenergy producers.

Sec. 9010. Biomass Crop Assistance Program.

Sec. 9011. Repeal of forest biomass for energy.

Sec. 9012. Community wood energy program.

Sec. 9013. Repeal of renewable fertilizer study.

TITLE X—Horticulture

Sec. 10001. Specialty crops market news allocation.

Sec. 10002. Repeal of grant program to improve movement of specialty crops.

Sec. 10003. Farmers market and local food promotion program.

Sec. 10004. Study on local food production and program evaluation.

Sec. 10005. Organic agriculture.

Sec. 10006. Food safety education initiatives.

Sec. 10007. Coordinated plant management program.

Sec. 10008. Specialty crop block grants.

Sec. 10009. Recordkeeping, investigations, and enforcement.

Sec. 10010. Report on honey.

Sec. 10011. Effective date.

TITLE XI—Crop insurance

Sec. 11001. Supplemental coverage option.

Sec. 11002. Premium amounts for catastrophic risk protection.

Sec. 11003. Permanent enterprise unit.

Sec. 11004. Enterprise units for irrigated and nonirrigated crops.

Sec. 11005. Data collection.

Sec. 11006. Adjustment in actual production history to establish insurable yields.

Sec. 11007. Submission and review of policies.

Sec. 11008. Board review and approval.

Sec. 11009. Consultation.

Sec. 11010. Budget limitations on renegotiation of the standard reinsurance agreement.

Sec. 11011. Stacked income protection plan for producers of upland cotton.

Sec. 11012. Peanut revenue crop insurance.

Sec. 11013. Authority to correct errors.

Sec. 11014. Implementation.

Sec. 11015. Approval of costs for research and development.

Sec. 11016. Whole farm risk management insurance.

Sec. 11017. Study of food safety insurance.

Sec. 11018. Crop insurance for livestock.

Sec. 11019. Margin coverage for catfish.

Sec. 11020. Poultry business disruption insurance policy.

Sec. 11021. Crop insurance for organic crops.

Sec. 11022. Research and development.

Sec. 11023. Pilot programs.

Sec. 11024. Index-based weather insurance pilot program.

Sec. 11025. Enhancing producer self-help through farm financial benchmarking.

Sec. 11026. Beginning farmer and rancher provisions.

Sec. 11027. Agricultural management assistance, risk management education, and organic certification cost share assistance.

Sec. 11028. Crop production on native sod.

Sec. 11029. Technical amendments.

Sec. 11030. Greater accessibility for crop insurance.

Sec. 11031. GAO crop insurance fraud report.

Sec. 11032. Limitation on premium subsidy based on average adjusted gross income.

TITLE XII—Miscellaneous

Subtitle A—Socially disadvantaged producers and limited resource producers

Sec. 12001. Outreach and assistance for socially disadvantaged farmers and ranchers and veteran farmers and ranchers.

Sec. 12002. Office of Advocacy and Outreach.

Subtitle B—Livestock

Sec. 12101. Wildlife reservoir zoonotic disease initiative.

Sec. 12102. Trichinae certification program.

Sec. 12103. National Aquatic Animal Health Plan.

Sec. 12104. Sheep production and marketing grant program.

Sec. 12105. Feral swine eradication pilot program.

Subtitle C—Other miscellaneous provisions

Sec. 12201. Military veterans agricultural liaison.

Sec. 12202. Information gathering.

Sec. 12203. Grants to improve supply, stability, safety, and training of agricultural labor force.

Sec. 12204. Noninsured crop assistance program.

Sec. 12205. Regional economic and infrastructure development.

Sec. 12206. Canada geese removal.

Sec. 12207. Office of Tribal Relations.

Sec. 12208. Repeal of duplicative program.

Sec. 12209. Sense of the Senate.

Sec. 12210. Acer Access and Development Program.

Sec. 12211. Definition of rural area for purposes of the Housing Act of 1949.

Sec. 12212. Animal welfare.

Sec. 12213. Prohibition on attending an animal fight or causing a minor to attend an animal fight; enforcement of animal fighting provisions.

Sec. 12214. Prohibiting use of presidential election campaign funds for party conventions.

Sec. 12215. Reports on effects of defense and nondefense budget sequestration.

Definition of Secretary

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

<enum>I</enum><header display-inline="yes-display-inline">Commodity programs</header> <subtitle commented="no" id="id92182E68B5924F9CBA5CBDB9070AB978" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">Repeals and reforms</header> <section commented="no" display-inline="no-display-inline" id="id080E95CB72634AB4B1042D257E75C02D" section-type="subsequent-section"><enum>1101.</enum><header display-inline="yes-display-inline">Repeal of direct payments</header> <subsection commented="no" display-inline="no-display-inline" id="id8EC40D225CA348B8908C930AE432BC30"><enum>(a)</enum><header display-inline="yes-display-inline">Repeal</header><text display-inline="yes-display-inline">Sections 1103 and 1303 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 8753) are repealed.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="ID3575592f98634fb09f9466485381adf2"><enum>(b)</enum><header display-inline="yes-display-inline">Continued application for 2012 crop year</header><text display-inline="yes-display-inline">Sections 1103 and 1303 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 8753), as in effect on the day before the date of enactment of this Act, shall continue to apply through the 2012 crop year with respect to all covered commodities (as defined in section 1001 of that Act (7 U.S.C. 8702)) (except pulse crops) and peanuts on a farm.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id35EDB87755D2490785422B2452022836" section-type="subsequent-section"><enum>1102.</enum><header display-inline="yes-display-inline">Repeal of counter-cyclical payments</header> <subsection commented="no" display-inline="no-display-inline" id="idEC639812ABB246F69F6E23AB76BA257C"><enum>(a)</enum><header display-inline="yes-display-inline">Repeal</header><text display-inline="yes-display-inline">Sections 1104 and 1304 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8714, 8754) are repealed.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id87E9857EF8F449038131647CCCDC3114"><enum>(b)</enum><header display-inline="yes-display-inline">Continued application for 2012 crop year</header><text display-inline="yes-display-inline">Sections 1104 and 1304 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8714, 8754), as in effect on the day before the date of enactment of this Act, shall continue to apply through the 2012 crop year with respect to all covered commodities (as defined in section 1001 of that Act (7 U.S.C. 8702)) and peanuts on a farm.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="ID2c61e0cdd1d14aaa831f3d0fe3218081" section-type="subsequent-section"><enum>1103.</enum><header display-inline="yes-display-inline">Repeal of average crop revenue election program</header> <subsection commented="no" display-inline="no-display-inline" id="ID7f88baef13a143d08231ea989921aeae"><enum>(a)</enum><header display-inline="yes-display-inline">Repeal</header><text display-inline="yes-display-inline">Section 1105 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8715) is repealed.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="IDc0da1ebbf1964fcd9c78acbfc839391d"><enum>(b)</enum><header display-inline="yes-display-inline">Continued application for 2012 crop year</header><text display-inline="yes-display-inline">Section 1105 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8715), as in effect on the day before the date of enactment of this Act, shall continue to apply through the 2012 crop year with respect to all covered commodities (as defined in section 1001 of that Act (7 U.S.C. 8702)) and peanuts on a farm for which the irrevocable election under section 1105 of that Act is made before the date of enactment of this Act.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="IDf5a2b7084f3a4d818a0ee02e5abe4df1" section-type="subsequent-section"><enum>1104.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">In this subtitle, subtitle B, and subtitle F:</text> <paragraph commented="no" display-inline="no-display-inline" id="IDfa5143b32fc646d59f6e4dc9ce10f243"><enum>(1)</enum><header display-inline="yes-display-inline">Actual crop revenue</header><text display-inline="yes-display-inline">The term <term>actual crop revenue</term>, with respect to a covered commodity for a crop year, means the amount determined by the Secretary under section 1105(c)(3).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id374e818a843a482f83c57520850fd348"><enum>(2)</enum><header display-inline="yes-display-inline">Agriculture risk coverage guarantee</header><text display-inline="yes-display-inline">The term <term>agriculture risk coverage guarantee</term>, with respect to a covered commodity for a crop year, means the amount determined by the Secretary under section 1105(c)(4).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD45864179214491AA1C8CC6272BD324D"><enum>(3)</enum><header display-inline="yes-display-inline">Agriculture risk coverage payment</header><text display-inline="yes-display-inline">The term <term>agriculture risk coverage payment</term> means a payment under section 1105(c).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id342995EAD1AA406F8A762D65CD809E22"><enum>(4)</enum><header display-inline="yes-display-inline">Average individual yield</header><text display-inline="yes-display-inline">The term <term>average individual yield</term> means the yield reported by a producer for purposes of subtitle A of the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), to the maximum extent practicable.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id387EC7E0FC30431DA6B934D5CAD3275A"><enum>(5)</enum><header display-inline="yes-display-inline">County coverage</header><text display-inline="yes-display-inline">For the purposes of agriculture risk coverage under section 1105, the term <term>county coverage</term> means coverage determined using the total quantity of all acreage in a county of the covered commodity that is planted or prevented from being planted for harvest by a producer with the yield determined by the average county yield described in subsection (c) of that section.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2735f4db5a8e4f5da7c93520dade965b"><enum>(6)</enum><header display-inline="yes-display-inline">Covered commodity</header> <subparagraph commented="no" display-inline="no-display-inline" id="idFF8BF5F8DA1A45B3A61182BD4976F6C2"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>covered commodity</term> means wheat, corn, grain sorghum, barley, oats, long grain rice, medium grain rice, pulse crops, soybeans, other oilseeds, and peanuts.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id39bff4f148334a8db804ce130323f5ed"><enum>(B)</enum><header display-inline="yes-display-inline">Popcorn</header><text display-inline="yes-display-inline">The Secretary—</text> <clause commented="no" display-inline="no-display-inline" id="id6e6b09511c954bca810f24baacdd4fcc"><enum>(i)</enum><text display-inline="yes-display-inline">shall study the feasibility of including popcorn as a covered commodity by 2014; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="idfce45844f42446aba65a2eb738346eff"><enum>(ii)</enum><text display-inline="yes-display-inline">if the Secretary determines it to be feasible, shall designate popcorn as a covered commodity.</text> </clause></subparagraph></paragraph><paragraph id="id6679896b85684f79835247112e2404ba"><enum>(7)</enum><header>Eligible acres</header> <subparagraph id="idbaf12b6c3fe1443d8958d6e2868c5944"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraphs (B) through (D), the term <term>eligible acres</term> means all acres planted or prevented from being planted to all covered commodities on a farm in any crop year.</text> </subparagraph><subparagraph id="id2035d37b90e7451cb2791397f18f5a70"><enum>(B)</enum><header>Maximum</header><text>Except as provided in (C), the total quantity of eligible acres on a farm determined under subparagraph (A) shall not exceed the average total acres planted or prevented from being planted to covered commodities and upland cotton on the farm for the 2009 through 2012 crop years, as determined by the Secretary.</text> </subparagraph><subparagraph id="ide5896af3f47043e8815aa031dbca432a"><enum>(C)</enum><header>Adjustment</header><text>The Secretary shall provide for an adjustment, as appropriate, in the eligible acres for covered commodities for a farm if any of the following circumstances occurs:</text> <clause id="idc95ed13c709d4f1cafda0aa9ad74248e"><enum>(i)</enum><text>If a conservation reserve contract for a farm in a county entered into under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) expires or is voluntarily terminated or cropland is released from coverage under a conservation reserve contract, the Secretary shall provide for an adjustment, as appropriate, in the eligible acres for the farm to a total quantity that is the higher of—</text> <subclause id="id25915cfba99a4c96b23330da6178f385"><enum>(I)</enum><text>the total base acreage for the farm, less any upland cotton base acreage, that was suspended during the conservation reserve contract; or</text> </subclause><subclause id="idcd873151e4cb4894ae01387c629168b9"><enum>(II)</enum><text>the product obtained by multiplying—</text> <item id="id50693aefc3f04dde8a147a5631cdc170"><enum>(aa)</enum><text>the average proportion that—</text> <subitem id="id146526c95d5047c6aba4e70922cacfb6"><enum>(AA)</enum><text>the total number of acres planted to covered commodities and upland cotton in the county for crop years 2009 through 2012; bears to</text> </subitem><subitem id="id02c15a8d49be48668439e08861df777c"><enum>(BB)</enum><text>the total number of all acres of covered commodities, grassland, and upland cotton acres in the county for the same crop years; by</text> </subitem></item><item id="idcd632b2252a6443a9e26cb219b9c5a31"><enum>(bb)</enum><text>the total acres for which coverage has expired, voluntarily terminated, or been released under the conservation reserve contract.</text> </item></subclause></clause><clause id="idf7e22456806f45d0af3913df4d73d787"><enum>(ii)</enum><text>The producer has eligible oilseed acreage as the result of the Secretary designating additional oilseeds, which shall be determined in the same manner as eligible oilseed acreage under section 1101(a)(1)(D) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8711(a)(1)(D)).</text> </clause><clause id="id9a4ff7a3b1fe4eba90a87121f8087410"><enum>(iii)</enum><text>The producer has any acreage not cropped during the 2009 through 2012 crop years, but placed into an established rotation practice for the purposes of enriching land or conserving moisture for subsequent crop years, including summer fallow, as determined by the Secretary.</text> </clause></subparagraph><subparagraph id="id287bb65e710e4d1ea3ea049dc738b2d4"><enum>(D)</enum><header>Exclusion</header><text>The term <term>eligible acres</term> does not include any crop subsequently planted during the same crop year on the same land for which the first crop is eligible for payments under this subtitle, unless the crop was planted in an area approved for double cropping, as determined by the Secretary.</text> </subparagraph></paragraph><paragraph id="IDbb55f70e5b4d445aaf962bb83bc3085f"><enum>(8)</enum><header>Extra long staple cotton</header><text>The term <term>extra long staple cotton</term> means cotton that—</text> <subparagraph id="IDe690f9c571104927a4a1397dfb5e1c48"><enum>(A)</enum><text>is produced from pure strain varieties of the Barbadense species or any hybrid of the species, or other similar types of extra long staple cotton, designated by the Secretary, having characteristics needed for various end uses for which United States upland cotton is not suitable and grown in irrigated cotton-growing regions of the United States designated by the Secretary or other areas designated by the Secretary as suitable for the production of the varieties or types; and</text> </subparagraph><subparagraph id="IDb7fcb58a6edf4d8bbad4c815504ea4ba"><enum>(B)</enum><text>is ginned on a roller-type gin or, if authorized by the Secretary, ginned on another type gin for experimental purposes.</text> </subparagraph></paragraph><paragraph id="id9a98ad7b2c2e4d5ea212fcfee875d0fa"><enum>(9)</enum><header>Individual coverage</header><text>For purposes of agriculture risk coverage under section 1105, the term <term>individual coverage</term> means coverage determined using the total quantity of all acreage in a county of the covered commodity that is planted or prevented from being planted for harvest by a producer with the yield determined by the average individual yield of the producer described in subsection (c) of that section.</text> </paragraph><paragraph id="IDde704324827a4f98a687f592f5217d92"><enum>(10)</enum><header>Medium grain rice</header><text>The term <term>medium grain rice</term> includes short grain rice.</text> </paragraph><paragraph id="ID421485d5c9d34f4bbc8e6649d65b75af"><enum>(11)</enum><header>Midseason price</header><text>The term <term>midseason price</term> means the applicable national average market price received by producers for the first 5 months of the applicable marketing year, as determined by the Secretary.</text> </paragraph><paragraph id="IDedeec68a556343b492894af4b0c32bf2"><enum>(12)</enum><header>Other oilseed</header><text>The term <term>other oilseed</term> means a crop of sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe, sesame seed, or any oilseed designated by the Secretary.</text> </paragraph><paragraph id="ID9265f138326744a5a5c43f7a05adb822"><enum>(13)</enum><header>Producer</header> <subparagraph id="ID9a4e8c52d6234332a573bfb0f3d4dcbd"><enum>(A)</enum><header>In general</header><text>The term <term>producer</term> means an owner, operator, landlord, tenant, or sharecropper that shares in the risk of producing a crop and is entitled to share in the crop available for marketing from the farm, or would have shared had the crop been produced.</text> </subparagraph><subparagraph id="ID9789c79f8dd24a9fac0658a261f03b45"><enum>(B)</enum><header>Hybrid seed</header><text>In determining whether a grower of hybrid seed is a producer, the Secretary shall—</text> <clause id="IDe014f47124484494b0ab0d9dd0dde1b2"><enum>(i)</enum><text>not take into consideration the existence of a hybrid seed contract; and</text> </clause><clause id="IDb03a6aef268e4142bb46d9e60431fb04"><enum>(ii)</enum><text>ensure that program requirements do not adversely affect the ability of the grower to receive a payment under this title.</text> </clause></subparagraph></paragraph><paragraph id="ID3d3ec4ca747b430e8d93bc0e320f2685"><enum>(14)</enum><header>Pulse crop</header><text>The term <term>pulse crop</term> means dry peas, lentils, small chickpeas, and large chickpeas.</text> </paragraph><paragraph id="IDdf30d41a9f0d4eceb92cef04ef032c7d"><enum>(15)</enum><header>State</header><text>The term <term>State</term> means—</text> <subparagraph id="ID70707ecbc828418bbc7d1f52a26d5a71"><enum>(A)</enum><text>a State;</text> </subparagraph><subparagraph id="ID612583d5d7024ad08762e2d1f8e33868"><enum>(B)</enum><text>the District of Columbia;</text> </subparagraph><subparagraph id="ID956f5cb554bb4b94b3d27476bd1fa61e"><enum>(C)</enum><text>the Commonwealth of Puerto Rico; and</text> </subparagraph><subparagraph id="ID3e88f04f49244fddb0b8eb0e825ab61e"><enum>(D)</enum><text>any other territory or possession of the United States.</text> </subparagraph></paragraph><paragraph id="id050831D00A294C8390AC2037C06B4EA4"><enum>(16)</enum><header>Transitional yield</header><text>The term <term>transitional yield</term> has the meaning given the term in section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)).</text> </paragraph><paragraph id="IDaed6b14ece8b4bd0a9546b58b7e89a62"><enum>(17)</enum><header>United States</header><text>The term <term>United States</term>, when used in a geographical sense, means all of the States.</text> </paragraph><paragraph id="IDc1997ea51b6c443f91b22beaa962ddc5"><enum>(18)</enum><header>United States premium factor</header><text>The term <term>United States Premium Factor</term> means the percentage by which the difference in the United States loan schedule premiums for Strict Middling (SM) 1<fraction>1/8</fraction>-inch upland cotton and for Middling (M) 1<fraction>3/32</fraction>-inch upland cotton exceeds the difference in the applicable premiums for comparable international qualities.</text> </paragraph></section><section id="IDb58b1ab5494349ae9fde5e0b66e35648"><enum>1105.</enum><header>Agriculture risk coverage</header> <subsection id="IDc85496d6f6694d85af3c2f0e78a3ae2a"><enum>(a)</enum><header>Payments required</header><text>If the Secretary determines that payments are required under subsection (c), the Secretary shall make payments for each covered commodity available to producers in accordance with this section.</text> </subsection><subsection id="id713D40B33AB94E7CBD749727CB5A3589"><enum>(b)</enum><header>Coverage election</header> <paragraph id="idf416cd53925f4007a108c52106346865"><enum>(1)</enum><header>In general</header><text>For the period of crop years 2013 through 2017, the producers shall make a 1-time, irrevocable election to receive—</text> <subparagraph id="id436C3B1566F54EEE832195DA78334F8B"><enum>(A)</enum><text>individual coverage under this section, as determined by the Secretary; or</text> </subparagraph><subparagraph id="idDFA62029A59B4A498DCA5D5D83890CA6"><enum>(B)</enum><text>in the case of a county with sufficient data (as determined by the Secretary), county coverage under this section.</text> </subparagraph></paragraph><paragraph id="id0A78090069E14791AF60933FC6445534"><enum>(2)</enum><header>Effect of election</header><text>The election made under paragraph (1) shall be binding on the producers making the election, regardless of covered commodities planted, and applicable to all acres under the operational control of the producers, in a manner that—</text> <subparagraph id="id1d982dd11aa94c15927fc96c946c4d34"><enum>(A)</enum><text>acres brought under the operational control of the producers after the election are included; and</text> </subparagraph><subparagraph id="id8169b76bc1cc44b396c57f2d17c842bf"><enum>(B)</enum><text>acres no longer under the operational control of the producers after the election are no longer subject to the election of the producers but become subject to the election of the subsequent producers.</text> </subparagraph></paragraph><paragraph id="idDF3526112E5344FCBE4F5E8136A94313"><enum>(3)</enum><header>Duties of the Secretary</header><text>The Secretary shall ensure that producers are precluded from taking any action, including reconstitution, transfer, or other similar action, that would have the effect of altering or reversing the election made under paragraph (1).</text> </paragraph></subsection><subsection id="IDeced9e378c534f9eae8940db3474ec44"><enum>(c)</enum><header>Agriculture risk coverage</header> <paragraph id="idB93424EEA33D4CA89E09CB2E00372BEE"><enum>(1)</enum><header>Payments</header><text>The Secretary shall make agriculture risk coverage payments available under this subsection for each of the 2013 through 2017 crop years if the Secretary determines that—</text> <subparagraph id="id0C045AA8669F4CE7BF4138C6E1F7D90B"><enum>(A)</enum><text>the actual crop revenue for the crop year for the covered commodity; is less than</text> </subparagraph><subparagraph id="idCC3D18478F2B4FA9880B82034A0F78B7"><enum>(B)</enum><text>the agriculture risk coverage guarantee for the crop year for the covered commodity.</text> </subparagraph></paragraph><paragraph id="ID14959f78f6b74e5fa5c88e414e42fd6f"><enum>(2)</enum><header>Time for payments</header><text>If the Secretary determines under this subsection that agriculture risk coverage payments are required to be made for the covered commodity, the agriculture risk coverage payments shall be made as soon as practicable thereafter.</text> </paragraph><paragraph id="IDb5eab4df025444829108cd7a7db32bf0"><enum>(3)</enum><header>Actual crop revenue</header><text>The amount of the actual crop revenue for a crop year of a covered commodity shall be equal to the product obtained by multiplying—</text> <subparagraph id="ID3907d0a68f3846d78e43910351896f6b"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="id9EF558C66DF24B4BBE0FD8444F1C7BE7"><enum>(i)</enum><text>in the case of individual coverage, the actual average individual yield for the covered commodity, as determined by the Secretary; or</text> </clause><clause id="id6E765FA7637B4D34B384B409E3A4D7E5" indent="up1"><enum>(ii)</enum><text>in the case of county coverage, the actual average yield for the county for the covered commodity, as determined by the Secretary; and</text> </clause></subparagraph><subparagraph id="ID533077788cc2480ca1daef7881cbcc5b"><enum>(B)</enum><text>the higher of—</text> <clause id="IDa301079a1cbe4d2d8096b2d571d0f5a4"><enum>(i)</enum><text>the midseason price; or</text> </clause><clause id="IDa478231c35fe42adb82c9b08a513f526"><enum>(ii)</enum><text>if applicable, the national marketing assistance loan rate for the covered commodity under subtitle B.</text> </clause></subparagraph></paragraph><paragraph commented="no" id="ID3f07451af3cc4e28a0fd3e244feb7b77"><enum>(4)</enum><header>Agriculture risk coverage guarantee</header> <subparagraph commented="no" id="ID0ca6a3bd6dcc470082416490718f7fd7"><enum>(A)</enum><header>In general</header><text>The agriculture risk coverage guarantee for a crop year for a covered commodity shall equal 89 percent of the benchmark revenue.</text> </subparagraph><subparagraph id="ID2b0c2cd9631049329c1e544cf282bf6a"><enum>(B)</enum><header>Benchmark revenue</header> <clause id="idD84F035693FE4DD3BDEE6A796723BAA0"><enum>(i)</enum><header>In general</header><text>The benchmark revenue shall be the product obtained by multiplying—</text> <subclause id="IDb7c0e2ee5a664ed18d7d4a50a3e30c57"><enum>(I)</enum><item commented="no" display-inline="yes-display-inline" id="id99FD9A924436482E8B3064413725C55F"><enum>(aa)</enum><text>in the case of individual coverage, subject to clause (ii), the average individual yield, as determined by the Secretary, for the most recent 5 crop years, excluding each of the crop years with the highest and lowest yields; or</text> </item><item id="id117219057C4D4CE9A30EDA360B04CF52" indent="up1"><enum>(bb)</enum><text>in the case of county coverage, the average county yield, as determined by the Secretary, for the most recent 5 crop years, excluding each of the crop years with the highest and lowest yields; and</text> </item></subclause><subclause id="idb87cc4b14adf4d50be47d9d28bf18ebf"><enum>(II)</enum><text>subject to clause (iii), the average national marketing year average price for the most recent 5 crop years, excluding each of the crop years with the highest and lowest prices.</text> </subclause></clause><clause id="idDC2678A2D6534E259FDC33AA7902130E"><enum>(ii)</enum><header>Use of transitional yields</header><text>If the yield determined under clause (i)(I)(aa)—</text> <subclause id="id66a2cae9547b409796c0add6b4ffd543"><enum>(I)</enum><text>for the 2012 crop year or any prior crop year, is less than 60 percent of the applicable transitional yield, the Secretary shall use 60 percent of the applicable transitional yield for that crop year; and</text> </subclause><subclause id="id602908ca64e641fd865d30a637948d53"><enum>(II)</enum><text>for the 2013 crop year and any subsequent crop year, is less than 70 percent of the applicable transitional yield, the Secretary shall use 70 percent of the applicable transitional yield for that crop year.</text> </subclause></clause><clause id="id036d6d9025d441429a7e2975dc9613d6"><enum>(iii)</enum><header>Special rule for rice and peanuts</header><text>If the national marketing year average price under clause (i)(II) for any of the applicable crop years is lower than the price for the covered commodity listed below, the Secretary shall use the following price for that crop year:</text> <subclause id="id0655bd9f20b24cc6a29cb637816fb023"><enum>(I)</enum><text>For long grain rice, $13.00 per hundredweight.</text> </subclause><subclause id="id40002ea10a574670a90c2b3a5f280f7e"><enum>(II)</enum><text>For medium grain rice, $13.00 per hundredweight.</text> </subclause><subclause id="id4ff69f4c7f9043878410cf4432a408ac"><enum>(III)</enum><text>For peanuts, $530.00 per ton.</text> </subclause></clause></subparagraph></paragraph><paragraph id="IDa5339df66bee4eb1b44a1765ddac7ccd"><enum>(5)</enum><header>Payment rate</header><text>The payment rate for each covered commodity shall be equal to the lesser of—</text> <subparagraph id="IDd344da3713ca49e6917ef77623978fa2"><enum>(A)</enum><text>the amount that—</text> <clause id="IDfe7ed80ae50e4abbb33a64404bf7f868"><enum>(i)</enum><text>the agriculture risk coverage guarantee for the covered commodity; exceeds</text> </clause><clause id="IDa3fcb62f25914e57a5bb2eb7141de67d"><enum>(ii)</enum><text>the actual crop revenue for the crop year of the covered commodity; or</text> </clause></subparagraph><subparagraph id="IDa34b2a05170242f0906227ccb17fdce3"><enum>(B)</enum><text>10 percent of the benchmark revenue for the crop year of the covered commodity.</text> </subparagraph></paragraph><paragraph id="ID93f3069335de4c9c951fdedad5fda81c"><enum>(6)</enum><header>Payment amount</header><text>If agriculture risk coverage payments under this subsection are required to be paid for any of the 2013 through 2017 crop years of a covered commodity, the amount of the agriculture risk coverage payment for the crop year shall be equal to the product obtained by multiplying—</text> <subparagraph id="id96BDBBA508784101BFECE6C5CF49C96E"><enum>(A)</enum><text>the payment rate under paragraph (5); and</text> </subparagraph><subparagraph id="ID05a48e6842ba4bdbb2bb7aa39d0b276e"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="id3E2CC1B326264832A14A78A948F81919"><enum>(i)</enum><text>in the case of individual coverage the sum of—</text> <subclause id="id5C9C9A3F6A474EF98C4CAEEFCAAF3FB8" indent="up1"><enum>(I)</enum><text>65 percent of the planted eligible acres of the covered commodity; and</text> </subclause><subclause id="idBFF583D2811D44C39753712AF09F2DA7" indent="up1"><enum>(II)</enum><text>45 percent of the eligible acres that were prevented from being planted to the covered commodity; or</text> </subclause></clause><clause id="id3AFE505411CC4E57B4D6DA8FAA7FF4FA" indent="up1"><enum>(ii)</enum><text>in the case of county coverage—</text> <subclause id="idE36A4152ED354AEBA6D4CA69B57D781A"><enum>(I)</enum><text>80 percent of the planted eligible acres of the covered commodity; and</text> </subclause><subclause id="idCD9C1D88CFA84B9B941A5D81C5A38ACE"><enum>(II)</enum><text>45 percent of the eligible acres that were prevented from being planted to the covered commodity.</text> </subclause></clause></subparagraph></paragraph><paragraph id="ID6b50a9819bbf44249d00272d593ac590"><enum>(7)</enum><header>Duties of the Secretary</header><text>In carrying out the program under this subsection, the Secretary shall—</text> <subparagraph id="id0ecec55a13a5412483603f12204d07a8"><enum>(A)</enum><text>to the maximum extent practicable, use all available information and analysis to check for anomalies in the determination of payments under the program;</text> </subparagraph><subparagraph id="idd435151faeea424ea3d420e69b849d40"><enum>(B)</enum><text>to the maximum extent practicable, calculate a separate actual crop revenue and agriculture risk coverage guarantee for irrigated and nonirrigated covered commodities;</text> </subparagraph><subparagraph id="id53320d1ed9a04b31a0e3ca698fd76eb3"><enum>(C)</enum><text>differentiate by type or class the national average price of—</text> <clause id="id43b3968095d244b79d6df297c558c84a"><enum>(i)</enum><text>sunflower seeds;</text> </clause><clause id="id7b437a38ca9d49139c0e7824bf861227"><enum>(ii)</enum><text>barley, using malting barley values; and</text> </clause><clause id="id405ea5fc9afc42d19a8bcda18a2ae800"><enum>(iii)</enum><text>wheat; and</text> </clause></subparagraph><subparagraph id="IDf0a2f4e2768f4b11bd8e47146e735b52"><enum>(D)</enum><text>assign a yield for each acre planted or prevented from being planted for the crop year for the covered commodity on the basis of the yield history of representative farms in the State, region, or crop reporting district, as determined by the Secretary, if the Secretary cannot establish the yield as determined under paragraph (3)(A)(ii) or (4)(B)(i) or if the yield determined under paragraph (3)(A)(ii) or (4) is an unrepresentative average yield for the covered commodity as determined by the Secretary.</text> </subparagraph></paragraph></subsection></section><section id="IDaed30b34462b43ea8741cffba7ebd337"><enum>1106.</enum><header>Producer agreement required as condition of provision of payments</header> <subsection id="ID8c407cf0470b4b3ca47e3153764bb620"><enum>(a)</enum><header>Compliance with certain requirements</header> <paragraph id="IDe30ebb9207704ba180fc6245a4f1ab1a"><enum>(1)</enum><header>Requirements</header><text>Before the producers on a farm may receive agriculture risk coverage payments, the producers shall agree, during the crop year for which the payments are made and in exchange for the payments—</text> <subparagraph id="IDef35fbb8a88549608bfb3f2f7b5fb614"><enum>(A)</enum><text>to comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);</text> </subparagraph><subparagraph id="ID8f9b5ae4152d4ada878f0e5248f856e8"><enum>(B)</enum><text>to comply with applicable wetland protection requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.);</text> </subparagraph><subparagraph id="ID1d4387da590f489fbc7ceb5c1d5d0766"><enum>(C)</enum><text>to use the land on the farm for an agricultural or conserving use in a quantity equal to the attributable eligible acres of the farm, and not for a nonagricultural commercial, industrial, or residential use, as determined by the Secretary; and</text> </subparagraph><subparagraph id="ID6d353fd4cea748e9853d2c4678fe4f48"><enum>(D)</enum><text>to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any portion of the land referred to in subparagraph (C).</text> </subparagraph></paragraph><paragraph id="ID4ccef1d5d7734494af37bf1e3dbf6529"><enum>(2)</enum><header>Compliance</header><text>The Secretary may issue such rules as the Secretary considers necessary to ensure producer compliance with the requirements of paragraph (1).</text> </paragraph><paragraph id="ID507edac164314f3b83a07a651c93ca53"><enum>(3)</enum><header>Modification</header><text>At the request of the transferee or owner, the Secretary may modify the requirements of this subsection if the modifications are consistent with the objectives of this subsection, as determined by the Secretary.</text> </paragraph></subsection><subsection commented="no" id="ID646cb4ee753f4a64afef27bc8a4abb11"><enum>(b)</enum><header>Transfer or change of interest in farm</header> <paragraph commented="no" id="ID2140c928b830430f832cd6c6e3c6032e"><enum>(1)</enum><header>Termination</header> <subparagraph commented="no" id="ID3e4823d96f8043ecb0d2c685ba7f764e"><enum>(A)</enum><header>In general</header><text>Except as provided in paragraph (2), a transfer of (or change in) the interest of the producers on a farm for which agriculture risk coverage payments are made shall result in the termination of the agriculture risk coverage payments, unless the transferee or owner of the acreage agrees to assume all obligations under subsection (a).</text> </subparagraph><subparagraph commented="no" id="IDd925be27bea54ebf91fc37181cfe3b06"><enum>(B)</enum><header>Effective date</header><text>The termination shall take effect on the date determined by the Secretary.</text> </subparagraph></paragraph><paragraph id="ID70237646d86345c9a2f1716191c9a9b3"><enum>(2)</enum><header>Exception</header><text>If a producer entitled to an agriculture risk coverage payment dies, becomes incompetent, or is otherwise unable to receive the payment, the Secretary shall make the payment, in accordance with rules issued by the Secretary.</text> </paragraph></subsection><subsection commented="no" id="IDf29b69c78d69415eaa81eac5c342088b"><enum>(c)</enum><header>Reports</header> <paragraph commented="no" id="ID2a63d8f854684bed9b77a20ad2d117d7"><enum>(1)</enum><header>Acreage reports</header><text>As a condition on the receipt of any benefits under this subtitle or subtitle B, the Secretary shall require producers on a farm to submit to the Secretary annual acreage reports with respect to all cropland on the farm.</text> </paragraph><paragraph commented="no" id="IDba46bcfd722a41cb80fd6a876b64c1bf"><enum>(2)</enum><header>Production reports</header><text>As a condition on the receipt of any benefits under section 1105, the Secretary shall require producers on a farm to submit to the Secretary annual production reports with respect to all covered commodities produced on the farm.</text> </paragraph><paragraph commented="no" id="ID32fa06e3d7314345bf1ecc9ca732c7ee"><enum>(3)</enum><header>Penalties</header><text>No penalty with respect to benefits under this subtitle or subtitle B shall be assessed against the producers on a farm for an inaccurate acreage or production report unless the producers on the farm knowingly and willfully falsified the acreage or production report.</text> </paragraph><paragraph id="id134b5ed89dee4bfa94bda53b07579b74"><enum>(4)</enum><header>Data reporting</header><text>To the maximum extent practicable, the Secretary shall use data reported by the producer pursuant to requirements under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) to meet the obligations described in paragraphs (1) and (2), without additional submissions to the Department.</text> </paragraph></subsection><subsection commented="no" id="ID5ec853b0059d457bb21b8911646c99b4"><enum>(d)</enum><header>Tenants and sharecroppers</header><text>In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.</text> </subsection></section><section commented="no" id="id14EDE9886A3D4B8BBAB6761E55AFE6AE"><enum>1107.</enum><header>Period of effectiveness</header><text display-inline="no-display-inline">Sections 1104 through 1106 shall be effective beginning with the 2013 crop year of each covered commodity through the 2017 crop year.</text> </section><section id="id6581E4FF77894D0284AA5FADC0A93EFD"><enum>1108.</enum><header>Adjusted gross income limitation for conservation programs</header><text display-inline="no-display-inline">Section 1001D(b)(2)(A) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)(2)(A)) is amended—</text> <paragraph id="id9F382761A070407D93850C1D5C598E32"><enum>(1)</enum><text>by striking <quote><header-in-text level="subparagraph" style="OLC">Limits</header-in-text>.—</quote> and all that follows through <quote>clause (ii),</quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">Limits</header-in-text>.—Notwithstanding any other provision of law,</quote>; and</text> </paragraph><paragraph id="id60CE7BA62E654BD6BFFB2A053114F8C1"><enum>(2)</enum><text>by striking clause (ii).</text> </paragraph></section></subtitle><subtitle id="idD97ABA49AFB14C56B12A5D38182E002C"><enum>B</enum><header>Marketing assistance loans and loan deficiency payments</header> <section id="id2E1C0738AB36466BA88A0FBA5ADFF6DF"><enum>1201.</enum><header>Availability of nonrecourse marketing assistance loans for loan commodities</header> <subsection id="idD9DD79D4775B4581AE079E14E44EF815"><enum>(a)</enum><header>Definition of loan commodity</header><text>In this subtitle, the term <term>loan commodity</term> means wheat, corn, grain sorghum, barley, oats, upland cotton, extra long staple cotton, long grain rice, medium grain rice, peanuts, soybeans, other oilseeds, graded wool, nongraded wool, mohair, honey, dry peas, lentils, small chickpeas, and large chickpeas.</text> </subsection><subsection id="IDd63ef41a0c264bfd99b6cc5c077505be"><enum>(b)</enum><header>Nonrecourse loans available</header> <paragraph id="IDb9e718b397594db6a7286d6b5a6542ab"><enum>(1)</enum><header>In general</header><text>For each of the 2013 through 2017 crops of each loan commodity, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for loan commodities produced on the farm.</text> </paragraph><paragraph id="IDbc550ad6d14d49ce810711388533f1c4"><enum>(2)</enum><header>Terms and conditions</header><text>The marketing assistance loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under section 1202 for the loan commodity.</text> </paragraph></subsection><subsection id="IDde82a353e9cd4d81a40c405b94269559"><enum>(c)</enum><header>Eligible production</header><text>The producers on a farm shall be eligible for a marketing assistance loan under subsection (b) for any quantity of a loan commodity produced on the farm.</text> </subsection><subsection id="IDd5030d11304443d3aa52da21c5ff7a89"><enum>(d)</enum><header>Compliance with conservation and wetlands requirements</header> <paragraph id="id471997B4309642278E77E8FF564BA291"><enum>(1)</enum><header>Requirements</header><text>Before the producers on a farm may receive a marketing assistance loan or any other payment or benefit under this subtitle, the producers shall agree, for the crop year for which the payments are made and in exchange for the payments—</text> <subparagraph id="id6e44aba01f7f4d9eb098549a409cc6a9"><enum>(A)</enum><text>to comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);</text> </subparagraph><subparagraph id="idd64c86e6aeb4403c967924fa0542dcb1"><enum>(B)</enum><text>to comply with applicable wetland protection requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.);</text> </subparagraph><subparagraph id="id88bc56c3f5704fc995088d5254f94739"><enum>(C)</enum><text>to use the land on the farm for an agricultural or conserving use in a quantity equal to the attributable eligible acres of the farm, and not for a nonagricultural commercial, industrial, or residential use, as determined by the Secretary; and</text> </subparagraph><subparagraph id="id1a50cc7ead3941ca8ee9bde0ce6c5557"><enum>(D)</enum><text>to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any portion of the land referred to in subparagraph (C).</text> </subparagraph></paragraph><paragraph id="ide39b6dbb86754c869fe6c124d569a46c"><enum>(2)</enum><header>Compliance</header><text>The Secretary may issue such rules as the Secretary considers necessary to ensure producer compliance with paragraph (1).</text> </paragraph><paragraph id="id541836612f284e93bbd4fa2410effbab"><enum>(3)</enum><header>Modification</header><text>At the request of a transferee or owner, the Secretary may modify the requirements of this subsection if the modifications are consistent with the purposes of this subsection, as determined by the Secretary.</text> </paragraph></subsection><subsection id="ID2c19de2c8bd44b92a8a5f45073e8a3ee"><enum>(e)</enum><header>Special rules for peanuts</header> <paragraph id="id143D325544074EFBACAC0C104FDA0F1B"><enum>(1)</enum><header>In general</header><text>This subsection shall apply only to producers of peanuts.</text> </paragraph><paragraph id="ID8550f6db4db14dc5b336f8c75e7f56ec"><enum>(2)</enum><header>Options for obtaining loan</header><text>A marketing assistance loan under this section, and loan deficiency payments under section 1205, may be obtained at the option of the producers on a farm through—</text> <subparagraph id="ID440fad03d26940f2a2d4f3ee077ab966"><enum>(A)</enum><text>a designated marketing association or marketing cooperative of producers that is approved by the Secretary; or</text> </subparagraph><subparagraph id="ID84ec85bac0c94caa8e7c68bd5ce77234"><enum>(B)</enum><text>the Farm Service Agency.</text> </subparagraph></paragraph><paragraph id="IDa12467ade9014b049d066b35062da1a5"><enum>(3)</enum><header>Storage of loan peanuts</header><text>As a condition on the approval by the Secretary of an individual or entity to provide storage for peanuts for which a marketing assistance loan is made under this section, the individual or entity shall agree—</text> <subparagraph id="IDa6303ed5b0ac446b87432903db5aa6a2"><enum>(A)</enum><text>to provide the storage on a nondiscriminatory basis; and</text> </subparagraph><subparagraph id="IDdce93c16100a4c38b816c052c222faa7"><enum>(B)</enum><text>to comply with such additional requirements as the Secretary considers appropriate to accomplish the purposes of this section and promote fairness in the administration of the benefits of this section.</text> </subparagraph></paragraph><paragraph id="id3ac25b2551ff48b684d23d7ae6340939"><enum>(4)</enum><header>Storage, handling, and associated costs</header> <subparagraph id="id588d2cc448d54637ab27a9bcb26bad41"><enum>(A)</enum><header>In general</header><text>To ensure proper storage of peanuts for which a loan is made under this section, the Secretary shall pay handling and other associated costs (other than storage costs) incurred at the time at which the peanuts are placed under loan, as determined by the Secretary.</text> </subparagraph><subparagraph id="ida1f368c5d4544d28b6608b91a4a52f12"><enum>(B)</enum><header>Redemption and forfeiture</header><text>The Secretary shall—</text> <clause id="id70cd1276637f4cbcb0972cec6467ebc9"><enum>(i)</enum><text>require the repayment of handling and other associated costs paid under subparagraph (A) for all peanuts pledged as collateral for a loan that is redeemed under this section; and</text> </clause><clause id="id7382b79552ea412c9c08cd9c9a2247fa"><enum>(ii)</enum><text>pay storage, handling, and other associated costs for all peanuts pledged as collateral that are forfeited under this section.</text> </clause></subparagraph></paragraph><paragraph id="IDf7d2567592c64f8a8e58ae0a9573c827"><enum>(5)</enum><header>Marketing</header><text>A marketing association or cooperative may market peanuts for which a loan is made under this section in any manner that conforms to consumer needs, including the separation of peanuts by type and quality.</text> </paragraph><paragraph id="idCFBFA84AB2B845D396216BBB39AF3407"><enum>(6)</enum><header>Reimbursable agreements and payment of administrative expenses</header><text>The Secretary may implement any reimbursable agreements or provide for the payment of administrative expenses under this subsection only in a manner that is consistent with those activities in regard to other loan commodities.</text> </paragraph></subsection></section><section id="ID0784a31a0910428f868e98f57cd27431"><enum>1202.</enum><header>Loan rates for nonrecourse marketing assistance loans</header> <subsection id="IDd7fe02a3b03943eba07f1c9a4857190e"><enum>(a)</enum><header>In general</header><text>For purposes of each of the 2013 through 2017 crop years, the loan rate for a marketing assistance loan under section 1201 for a loan commodity shall be equal to the following:</text> <paragraph id="IDd9ee11e41ada44ad8c697c47cea20b8e"><enum>(1)</enum><text>In the case of wheat, $2.94 per bushel.</text> </paragraph><paragraph id="ID765467acfcc145b9abab09aa75808e27"><enum>(2)</enum><text>In the case of corn, $1.95 per bushel.</text> </paragraph><paragraph id="IDecaefcacd0034ae0901aa89d046df894"><enum>(3)</enum><text>In the case of grain sorghum, $1.95 per bushel.</text> </paragraph><paragraph id="ID7504d24a164d40cfa559bf57b5a0d3f9"><enum>(4)</enum><text>In the case of barley, $1.95 per bushel.</text> </paragraph><paragraph id="IDe55c3133d62841b0af79b0a4fb1e361b"><enum>(5)</enum><text>In the case of oats, $1.39 per bushel.</text> </paragraph><paragraph id="IDb4d1bdeb22e1416ab37ffbc65cb496b0"><enum>(6)</enum><text>In the case of base quality of upland cotton, for the 2013 and each subsequent crop year, the simple average of the adjusted prevailing world price for the 2 immediately preceding marketing years, as determined by the Secretary and announced October 1 preceding the next domestic plantings, but in no case less than $0.47 per pound or more than $0.52 per pound.</text> </paragraph><paragraph id="ID15c5ac1314054169bdd04af3812bf081"><enum>(7)</enum><text>In the case of extra long staple cotton, $0.7977 per pound.</text> </paragraph><paragraph id="ID3fea5b3670ec4d4081f790cd42432dfb"><enum>(8)</enum><text>In the case of long grain rice, $6.50 per hundredweight.</text> </paragraph><paragraph id="ID4f377dfef64a4ba592c5765c5e307d73"><enum>(9)</enum><text>In the case of medium grain rice, $6.50 per hundredweight.</text> </paragraph><paragraph id="ID4dc8cab6ff164cc39903d97e980076f6"><enum>(10)</enum><text>In the case of soybeans, $5.00 per bushel.</text> </paragraph><paragraph id="ID9d8e5bc95e324545accf5762a6e3e402"><enum>(11)</enum><text>In the case of other oilseeds, $10.09 per hundredweight for each of the following kinds of oilseeds:</text> <subparagraph id="ID28a3759c290b462d8faa1b78fd19279b"><enum>(A)</enum><text>Sunflower seed.</text> </subparagraph><subparagraph id="IDda7292874f284d27b9fcacbc35032625"><enum>(B)</enum><text>Rapeseed.</text> </subparagraph><subparagraph id="ID9226920cf4cf4affb01d51b3bbe7e870"><enum>(C)</enum><text>Canola.</text> </subparagraph><subparagraph id="ID47dfce492e7a41dba981680b2c279066"><enum>(D)</enum><text>Safflower.</text> </subparagraph><subparagraph id="ID42df1b10891b4f43acd69576a539b4e7"><enum>(E)</enum><text>Flaxseed.</text> </subparagraph><subparagraph id="ID162878ba4a294f9ba98b37812a199e75"><enum>(F)</enum><text>Mustard seed.</text> </subparagraph><subparagraph id="ID87091033fbfd479e89b8a704f64d0187"><enum>(G)</enum><text>Crambe.</text> </subparagraph><subparagraph id="ID52003e358d5a40f7bcd3c2005276f440"><enum>(H)</enum><text>Sesame seed.</text> </subparagraph><subparagraph id="ID962923ece00e4062aa3a6490efd3c4a9"><enum>(I)</enum><text>Other oilseeds designated by the Secretary.</text> </subparagraph></paragraph><paragraph id="ID92730e0b126b474ab406d8fba13de1ca"><enum>(12)</enum><text>In the case of dry peas, $5.40 per hundredweight.</text> </paragraph><paragraph id="ID6545743aba1146e6b331545d39c673bd"><enum>(13)</enum><text>In the case of lentils, $11.28 per hundredweight.</text> </paragraph><paragraph id="IDfe4734cff1a24947bb91b6563e1775c1"><enum>(14)</enum><text>In the case of small chickpeas, $7.43 per hundredweight.</text> </paragraph><paragraph id="ID374b9dc10c4b459eb31be3d7be733a80"><enum>(15)</enum><text>In the case of large chickpeas, $11.28 per hundredweight.</text> </paragraph><paragraph id="ID57a4989f38c64db2912c8d6ba80bb2de"><enum>(16)</enum><text>In the case of graded wool, $1.15 per pound.</text> </paragraph><paragraph id="ID02ddedf0078f49c6b5689549dc66fc22"><enum>(17)</enum><text>In the case of nongraded wool, $0.40 per pound.</text> </paragraph><paragraph id="IDf48fa528cd40481ba626e4740f0f98a3"><enum>(18)</enum><text>In the case of mohair, $4.20 per pound.</text> </paragraph><paragraph id="ID5ae9e82d09c347a5add81397e8dcff7b"><enum>(19)</enum><text>In the case of honey, $0.69 per pound.</text> </paragraph><paragraph id="ID277cd86526224665bdc8260cd88aed32"><enum>(20)</enum><text>In the case of peanuts, $355 per ton.</text> </paragraph></subsection><subsection id="ID470544ab8ea74a8b81e4ca64d34cdd18"><enum>(b)</enum><header>Single county loan rate for other oilseeds</header><text>The Secretary shall establish a single loan rate in each county for each kind of other oilseeds described in subsection (a)(11).</text> </subsection></section><section id="ID137967f1090144ceaf3fcab4c35c6638"><enum>1203.</enum><header>Term of loans</header> <subsection id="IDc48bf16d02dd41d2a995ac0fcad3e3a9"><enum>(a)</enum><header>Term of loan</header><text>In the case of each loan commodity, a marketing assistance loan under section 1201 shall have a term of 9 months beginning on the first day of the first month after the month in which the loan is made.</text> </subsection><subsection id="ID96d91f25324c40a9a981c3bdbe94fc69"><enum>(b)</enum><header>Extensions prohibited</header><text>The Secretary may not extend the term of a marketing assistance loan for any loan commodity.</text> </subsection></section><section id="IDf3d7a069f4f649c8a1067116e6c4a0e9"><enum>1204.</enum><header>Repayment of loans</header> <subsection id="IDb9a2b1cf22a34e3fa27fd1b045cc0415"><enum>(a)</enum><header>General rule</header><text>The Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 1201 for a loan commodity (other than upland cotton, long grain rice, medium grain rice, extra long staple cotton, peanuts and confectionery and each other kind of sunflower seed (other than oil sunflower seed)) at a rate that is the lesser of—</text> <paragraph id="ID43a60dc0da3a4fdcb51b35b2fd82fca6"><enum>(1)</enum><text>the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283));</text> </paragraph><paragraph id="ID7f0371cafc944a9b9b45045d90405eb7"><enum>(2)</enum><text>a rate (as determined by the Secretary) that—</text> <subparagraph id="ID365e5b1ec5b24ee989e772264004ea8d"><enum>(A)</enum><text>is calculated based on average market prices for the loan commodity during the preceding 30-day period; and</text> </subparagraph><subparagraph id="ID652e367f8dc94032ada8dcbb08c2f969"><enum>(B)</enum><text>will minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries; or</text> </subparagraph></paragraph><paragraph id="IDc05c9081acdd4bd9bed5feae417a7f0f"><enum>(3)</enum><text>a rate that the Secretary may develop using alternative methods for calculating a repayment rate for a loan commodity that the Secretary determines will—</text> <subparagraph id="ID8c23deee263644dea46259df2ee8e5c2"><enum>(A)</enum><text>minimize potential loan forfeitures;</text> </subparagraph><subparagraph id="ID7a17b44920e24029ba738e89a257831f"><enum>(B)</enum><text>minimize the accumulation of stocks of the commodity by the Federal Government;</text> </subparagraph><subparagraph id="ID85707cf7caf44c0fbb8faa5190ae01b4"><enum>(C)</enum><text>minimize the cost incurred by the Federal Government in storing the commodity;</text> </subparagraph><subparagraph id="IDef969f27336542e18e5e0eb8bbbe3639"><enum>(D)</enum><text>allow the commodity produced in the United States to be marketed freely and competitively, both domestically and internationally; and</text> </subparagraph><subparagraph id="ID94a84f1806b941788781dd7b975abef8"><enum>(E)</enum><text>minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries.</text> </subparagraph></paragraph></subsection><subsection id="IDf4a03b3575ac42689d0c436cf32b5127"><enum>(b)</enum><header>Repayment rates for upland cotton, long grain rice, and medium grain rice</header><text>The Secretary shall permit producers to repay a marketing assistance loan under section 1201 for upland cotton, long grain rice, and medium grain rice at a rate that is the lesser of—</text> <paragraph id="IDeb1e62a222f544c6ab5146011581b04c"><enum>(1)</enum><text>the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or</text> </paragraph><paragraph id="ID0ec788abbee2415aaad73d7b59a42035"><enum>(2)</enum><text>the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.</text> </paragraph></subsection><subsection id="IDf48dcf5587fc4fffad631c6ff9256aa2"><enum>(c)</enum><header>Repayment rates for extra long staple cotton</header><text>Repayment of a marketing assistance loan for extra long staple cotton shall be at the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).</text> </subsection><subsection id="IDea93bd5bbb15404f8c9f090c2f198049"><enum>(d)</enum><header>Prevailing world market price</header><text>For purposes of this section and section 1207, the Secretary shall prescribe by regulation—</text> <paragraph id="ID2781ab223f7447a7a3c0e112f92965e4"><enum>(1)</enum><text>a formula to determine the prevailing world market price for each of upland cotton, long grain rice, and medium grain rice; and</text> </paragraph><paragraph id="IDceb6d039cf9b4d7cb6a3884ddfb10d2b"><enum>(2)</enum><text>a mechanism by which the Secretary shall announce periodically those prevailing world market prices.</text> </paragraph></subsection><subsection id="ID2e9d24db59c1414c9fbf2349357c1e58"><enum>(e)</enum><header>Adjustment of prevailing world market price for upland cotton, long grain rice, and medium grain rice</header> <paragraph id="IDe27913aaf05c465887121e67912982dc"><enum>(1)</enum><header>Rice</header><text>The prevailing world market price for long grain rice and medium grain rice determined under subsection (d) shall be adjusted to United States quality and location.</text> </paragraph><paragraph id="ID7059bb5a03934ef1a4e1b2d63f1eb4bb"><enum>(2)</enum><header>Cotton</header><text>The prevailing world market price for upland cotton determined under subsection (d)—</text> <subparagraph id="ID3461fd9b48df4bf6be27929b2bdb73cc"><enum>(A)</enum><text>shall be adjusted to United States quality and location, with the adjustment to include—</text> <clause id="IDf074cc325e1e4475b52213d14d7c9877"><enum>(i)</enum><text>a reduction equal to any United States Premium Factor for upland cotton of a quality higher than Middling (M) 1<fraction>3/32</fraction>-inch; and</text> </clause><clause id="ID1c6a26f531e14418aafc6cf2d4a4bff9"><enum>(ii)</enum><text>the average costs to market the commodity, including average transportation costs, as determined by the Secretary; and</text> </clause></subparagraph><subparagraph id="IDb49e0eb18a254dbf8f5627a04e6c4ad3"><enum>(B)</enum><text>may be further adjusted, during the period beginning on the date of enactment of this Act and ending on July 31, 2018, if the Secretary determines the adjustment is necessary—</text> <clause id="ID819b6734780b45ebb6d0e8ee95b68f2f"><enum>(i)</enum><text>to minimize potential loan forfeitures;</text> </clause><clause id="IDc7c87c7f260d40d68862361fb508dd2e"><enum>(ii)</enum><text>to minimize the accumulation of stocks of upland cotton by the Federal Government;</text> </clause><clause id="IDd66fb5c77edf4a928164908d28f21802"><enum>(iii)</enum><text>to ensure that upland cotton produced in the United States can be marketed freely and competitively, both domestically and internationally; and</text> </clause><clause id="ID169d50a9eab44d3d8b7a2e0ae3f057d0"><enum>(iv)</enum><text>to ensure an appropriate transition between current-crop and forward-crop price quotations, except that the Secretary may use forward-crop price quotations prior to July 31 of a marketing year only if—</text> <subclause id="ID62a50a2412e843168fb12ec62aa0a47b"><enum>(I)</enum><text>there are insufficient current-crop price quotations; and</text> </subclause><subclause id="ID68df59d160b64196b329dbb3c35dcedb"><enum>(II)</enum><text>the forward-crop price quotation is the lowest such quotation available.</text> </subclause></clause></subparagraph></paragraph><paragraph id="IDae0fdfdc63db4b70bde34f6a2046e1bb"><enum>(3)</enum><header>Guidelines for additional adjustments</header><text>In making adjustments under this subsection, the Secretary shall establish a mechanism for determining and announcing the adjustments in order to avoid undue disruption in the United States market.</text> </paragraph></subsection><subsection id="ID5777f6941b81451bb73abf62b9924daa"><enum>(f)</enum><header>Repayment rates for confectionery and other kinds of sunflower seeds</header><text>The Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 1201 for confectionery and each other kind of sunflower seed (other than oil sunflower seed) at a rate that is the lesser of—</text> <paragraph id="ID2db3bc66ca5449fc80d3d8eb7fee40b2"><enum>(1)</enum><text>the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or</text> </paragraph><paragraph id="ID29118fe7874748849eb1ef278fd1924d"><enum>(2)</enum><text>the repayment rate established for oil sunflower seed.</text> </paragraph></subsection><subsection commented="no" id="ID8ede621bb43d42429cbde88073ce8c27"><enum>(g)</enum><header>Payment of cotton storage costs</header><text>Effective for each of the 2013 through 2017 crop years, the Secretary shall make cotton storage payments available in the same manner, and at the same rates as the Secretary provided storage payments for the 2006 crop of cotton, except that the rates shall be reduced by 20 percent.</text> </subsection><subsection id="ID6a7e36775dc747e3ba3644a74ff2932c"><enum>(h)</enum><header>Repayment rate for peanuts</header><text>The Secretary shall permit producers on a farm to repay a marketing assistance loan for peanuts under subsection (a) at a rate that is the lesser of—</text> <paragraph id="ID5307cd77da4d4051a1bda80b35cb179e"><enum>(1)</enum><text>the loan rate established for peanuts under subsection (b), plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or</text> </paragraph><paragraph id="ID152181b307b44969ac01b7d9135910f6"><enum>(2)</enum><text>a rate that the Secretary determines will—</text> <subparagraph id="ID24c0fdd35af048d9b5ebd0d688dcadeb"><enum>(A)</enum><text>minimize potential loan forfeitures;</text> </subparagraph><subparagraph id="IDcd0e1ba392a64bf9908c3903f423fa78"><enum>(B)</enum><text>minimize the accumulation of stocks of peanuts by the Federal Government;</text> </subparagraph><subparagraph id="ID8fb167e20967448aa19f1d76ff5bcaef"><enum>(C)</enum><text>minimize the cost incurred by the Federal Government in storing peanuts; and</text> </subparagraph><subparagraph id="ID584bd27d14f64cc7b093e20b934ca695"><enum>(D)</enum><text>allow peanuts produced in the United States to be marketed freely and competitively, both domestically and internationally.</text> </subparagraph></paragraph></subsection><subsection id="ID260ca848fbec4dc4aae3a9ffd3d80195"><enum>(i)</enum><header>Authority to temporarily adjust repayment rates</header> <paragraph id="ID4da77ad8ae104cc1bcaebe0459ae150c"><enum>(1)</enum><header>Adjustment authority</header><text>In the event of a severe disruption to marketing, transportation, or related infrastructure, the Secretary may modify the repayment rate otherwise applicable under this section for marketing assistance loans under section 1201 for a loan commodity.</text> </paragraph><paragraph id="ID1a255fb740e74882bae780ea3ae1019b"><enum>(2)</enum><header>Duration</header><text>Any adjustment made under paragraph (1) in the repayment rate for marketing assistance loans for a loan commodity shall be in effect on a short-term and temporary basis, as determined by the Secretary.</text> </paragraph></subsection></section><section id="ID233f404b76b4475ea9b2907d4931421e"><enum>1205.</enum><header>Loan deficiency payments</header> <subsection id="ID96b8eeca83a84862980f96e762dbdd69"><enum>(a)</enum><header>Availability of loan deficiency payments</header> <paragraph id="ID5927df61c0714cf68c4a5f48d756e480"><enum>(1)</enum><header>In general</header><text>Except as provided in subsection (d), the Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan under section 1201 with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for loan deficiency payments under this section.</text> </paragraph><paragraph id="ID0120bf9bf7d2443f93c39f42adbca341"><enum>(2)</enum><header>Unshorn pelts, hay, and silage</header> <subparagraph id="ID15eb21492c0f4681b5354525fa266c1b"><enum>(A)</enum><header>Marketing assistance loans</header><text>Subject to subparagraph (B), nongraded wool in the form of unshorn pelts and hay and silage derived from a loan commodity are not eligible for a marketing assistance loan under section 1201.</text> </subparagraph><subparagraph id="ID6cabf0a12efb4a80b5d58b57c26a16a8"><enum>(B)</enum><header>Loan deficiency payment</header><text>Effective for the 2013 through 2017 crop years, the Secretary may make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and silage derived from a loan commodity.</text> </subparagraph></paragraph></subsection><subsection id="ID44f4f879888f47369ff7d20dc047e3c4"><enum>(b)</enum><header>Computation</header><text>A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be equal to the product obtained by multiplying—</text> <paragraph id="IDd1ca75906ef14f5cbaefe10d27e1f45a"><enum>(1)</enum><text>the payment rate determined under subsection (c) for the commodity; by</text> </paragraph><paragraph id="ID931e9929c90d45a2b5df199de559ad28"><enum>(2)</enum><text>the quantity of the commodity produced by the eligible producers, excluding any quantity for which the producers obtain a marketing assistance loan under section 1201.</text> </paragraph></subsection><subsection id="ID31f57d3c542e47d996462209d3a30ee0"><enum>(c)</enum><header>Payment rate</header> <paragraph id="IDf6c597599f434b33bac725d565f7e327"><enum>(1)</enum><header>In general</header><text>In the case of a loan commodity, the payment rate shall be the amount by which—</text> <subparagraph id="ID2c3d55e6b5844c448097c80ef35a09fb"><enum>(A)</enum><text>the loan rate established under section 1202 for the loan commodity; exceeds</text> </subparagraph><subparagraph id="ID706e60e39e8f4c14b535163e28b3b199"><enum>(B)</enum><text>the rate at which a marketing assistance loan for the loan commodity may be repaid under section 1204.</text> </subparagraph></paragraph><paragraph id="ID8362b2bb9f644b0fa76bad192edf983f"><enum>(2)</enum><header>Unshorn pelts</header><text>In the case of unshorn pelts, the payment rate shall be the amount by which—</text> <subparagraph id="IDc4b7486e5c4b45d28df3cadd969ac24a"><enum>(A)</enum><text>the loan rate established under section 1202 for ungraded wool; exceeds</text> </subparagraph><subparagraph id="IDf41085f162cc4d33b70871f78024ea9d"><enum>(B)</enum><text>the rate at which a marketing assistance loan for ungraded wool may be repaid under section 1204.</text> </subparagraph></paragraph><paragraph id="ID8bab03f9b4b641089f9a052bdeb58979"><enum>(3)</enum><header>Hay and silage</header><text>In the case of hay or silage derived from a loan commodity, the payment rate shall be the amount by which—</text> <subparagraph id="ID4de737e8bd6240928fd311213b03974b"><enum>(A)</enum><text>the loan rate established under section 1202 for the loan commodity from which the hay or silage is derived; exceeds</text> </subparagraph><subparagraph id="ID2c0f35e0557a4655947f3085f5247750"><enum>(B)</enum><text>the rate at which a marketing assistance loan for the loan commodity may be repaid under section 1204.</text> </subparagraph></paragraph></subsection><subsection id="ID5418c0809e39405291ae442844bf2367"><enum>(d)</enum><header>Exception for extra long staple cotton</header><text>This section shall not apply with respect to extra long staple cotton.</text> </subsection><subsection id="ID038d541de523468bbaf138bfe5295b1f"><enum>(e)</enum><header>Effective date for payment rate determination</header><text>The Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm with respect to a quantity of a loan commodity or commodity referred to in subsection (a)(2) using the payment rate in effect under subsection (c) as of the date the producers request the payment.</text> </subsection></section><section id="ID63ca9cd520044aa2b858d0ec37d34179"><enum>1206.</enum><header>Payments in lieu of loan deficiency payments for grazed acreage</header> <subsection id="ID62fae58ea6314b45b43fc4825d08e403"><enum>(a)</enum><header>Eligible producers</header> <paragraph id="ID1da0a5dc696c4155967e93031e673fad"><enum>(1)</enum><header>In general</header><text>Effective for the 2013 through 2017 crop years, in the case of a producer that would be eligible for a loan deficiency payment under section 1205 for wheat, barley, or oats, but that elects to use acreage planted to the wheat, barley, or oats for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of the wheat, barley, or oats on that acreage.</text> </paragraph><paragraph id="ID002e9b047e5c4a1f96d72fe6aa234d00"><enum>(2)</enum><header>Grazing of triticale acreage</header><text>Effective for the 2013 through 2017 crop years, with respect to a producer on a farm that uses acreage planted to triticale for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of triticale on that acreage.</text> </paragraph></subsection><subsection id="ID105fbde44cd74dddb2ecd3f4c7a5a7a8"><enum>(b)</enum><header>Payment amount</header> <paragraph id="ID5bd662d11d48415c93c65c86085313bb"><enum>(1)</enum><header>In general</header><text>The amount of a payment made under this section to a producer on a farm described in subsection (a)(1) shall be equal to the amount determined by multiplying—</text> <subparagraph id="IDb8a51658e5224c2e854466d211d9c480"><enum>(A)</enum><text>the loan deficiency payment rate determined under section 1205(c) in effect, as of the date of the agreement, for the county in which the farm is located; by</text> </subparagraph><subparagraph id="ID949bce94d689488c9dace281f4f54ef6"><enum>(B)</enum><text>the payment quantity determined by multiplying—</text> <clause id="IDe8c58b23e7334a299f53f27fdf6ef510"><enum>(i)</enum><text>the quantity of the grazed acreage on the farm with respect to which the producer elects to forgo harvesting of wheat, barley, or oats; and</text> </clause><clause id="IDf856c548bb29417bb465428c79bff9d5"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idB0E95C8B9BA149D3B00F8F3F981C8D70"><enum>(I)</enum><text>the yield in effect for the calculation of agriculture risk coverage payments under subtitle A with respect to that loan commodity on the farm; or</text> </subclause><subclause id="idB9F29B7633BC4D3582251F419617EB76" indent="up1"><enum>(II)</enum><text>in the case of a farm without a payment yield for that loan commodity, an appropriate yield established by the Secretary.</text> </subclause></clause></subparagraph></paragraph><paragraph id="ID4aefb23189a8428fa1759a4aac0c304e"><enum>(2)</enum><header>Grazing of triticale acreage</header><text>The amount of a payment made under this section to a producer on a farm described in subsection (a)(2) shall be equal to the amount determined by multiplying—</text> <subparagraph id="ID0a36c720d5ed4a7e877581ac01854052"><enum>(A)</enum><text>the loan deficiency payment rate determined under section 1205(c) in effect for wheat, as of the date of the agreement, for the county in which the farm is located; by</text> </subparagraph><subparagraph id="IDa90737a42b6f41a19539aa47a35d5dfb"><enum>(B)</enum><text>the payment quantity determined by multiplying—</text> <clause id="IDd481665f9b9f478b9cf4f1bda3ee6a00"><enum>(i)</enum><text>the quantity of the grazed acreage on the farm with respect to which the producer elects to forgo harvesting of triticale; and</text> </clause><clause id="ID84dd6e93217d4353b95ec8432d009f57"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id72E830A7847F47909BD0028A96FEE140"><enum>(I)</enum><text>the yield in effect for the calculation of agriculture risk coverage payments under subtitle A with respect to wheat on the farm; or</text> </subclause><subclause id="idFE14A54C411A499CA4C9F40B7E49A0B9" indent="up1"><enum>(II)</enum><text>in the case of a farm without a payment yield for wheat, an appropriate yield established by the Secretary in a manner consistent with section 1102 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8712).</text> </subclause></clause></subparagraph></paragraph></subsection><subsection id="ID3a2dc5ea9b9a44c2aa09436767683b1c"><enum>(c)</enum><header>Time, manner, and availability of payment</header> <paragraph id="IDdb9a24a2facf4f50b2d7ed806d3e5bde"><enum>(1)</enum><header>Time and manner</header><text>A payment under this section shall be made at the same time and in the same manner as loan deficiency payments are made under section 1205.</text> </paragraph><paragraph id="ID509276efc6a5453796d479488f46143f"><enum>(2)</enum><header>Availability</header> <subparagraph id="IDca3a41cbfde74339a5056daa471eda31"><enum>(A)</enum><header>In general</header><text>The Secretary shall establish an availability period for the payments authorized by this section.</text> </subparagraph><subparagraph id="ID4b33bb6afbc14a2c9e1a1252b53a4707"><enum>(B)</enum><header>Certain commodities</header><text>In the case of wheat, barley, and oats, the availability period shall be consistent with the availability period for the commodity established by the Secretary for marketing assistance loans authorized by this subtitle.</text> </subparagraph></paragraph></subsection><subsection id="ID04ac320cd8b34bbc82734e61351a7dc5"><enum>(d)</enum><header>Prohibition on crop insurance indemnity or noninsured crop assistance</header><text>A 2013 through 2017 crop of wheat, barley, oats, or triticale planted on acreage that a producer elects, in the agreement required by subsection (a), to use for the grazing of livestock in lieu of any other harvesting of the crop shall not be eligible for an indemnity under a policy or plan of insurance authorized under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).</text> </subsection></section><section id="ID145b3bdd06c447158920072fad52b541"><enum>1207.</enum><header>Special marketing loan provisions for upland cotton</header> <subsection id="IDfd07722b600f41a3a94e6ef6432e0370"><enum>(a)</enum><header>Special import quota</header> <paragraph id="IDa6ae5901f0d2424d91528813b2759b8e"><enum>(1)</enum><header>Definition of special import quota</header><text>In this subsection, the term <term>special import quota</term> means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.</text> </paragraph><paragraph id="IDa46368df8ab848f289e61aa38e7c2816"><enum>(2)</enum><header>Establishment</header> <subparagraph id="ID739ec095362344b5b24f70f6209b1137"><enum>(A)</enum><header>In general</header><text>The President shall carry out an import quota program during the period beginning on August 1, 2013, and ending on July 31, 2018, as provided in this subsection.</text> </subparagraph><subparagraph id="ID5c1aee8ac9c048729afa9ff5bbdd70be"><enum>(B)</enum><header>Program requirements</header><text>Whenever the Secretary determines and announces that for any consecutive 4-week period, the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1<fraction>3/32</fraction>-inch cotton, delivered to a definable and significant international market, as determined by the Secretary, exceeds the prevailing world market price, there shall immediately be in effect a special import quota.</text> </subparagraph></paragraph><paragraph id="ID8d16b431f23d419ab4afbb6974c90108"><enum>(3)</enum><header>Quantity</header><text>The quota shall be equal to the consumption during a 1-week period of cotton by domestic mills at the seasonally adjusted average rate of the most recent 3 months for which official data of the Department of Agriculture or other data are available.</text> </paragraph><paragraph id="ID9a0da88757d2466eb3fc2d3ffe496bb9"><enum>(4)</enum><header>Application</header><text>The quota shall apply to upland cotton purchased not later than 90 days after the date of the Secretary’s announcement under paragraph (2) and entered into the United States not later than 180 days after that date.</text> </paragraph><paragraph id="IDadd50a9d55c14448a76de1b02c3f14d3"><enum>(5)</enum><header>Overlap</header><text>A special quota period may be established that overlaps any existing quota period if required by paragraph (2), except that a special quota period may not be established under this subsection if a quota period has been established under subsection (b).</text> </paragraph><paragraph id="ID5d7376ced929475495e452513a8c5890"><enum>(6)</enum><header>Preferential tariff treatment</header><text>The quantity under a special import quota shall be considered to be an in-quota quantity for purposes of—</text> <subparagraph id="ID2c428a80affc4301b8b2fd108a9b3b15"><enum>(A)</enum><text>section 213(d) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(d));</text> </subparagraph><subparagraph id="ID418dce99f25842fa8ff2d1c77ccec46f"><enum>(B)</enum><text>section 204 of the Andean Trade Preference Act (19 U.S.C. 3203);</text> </subparagraph><subparagraph id="ID004dbd88d65f4f45bf7cfc81930a4934"><enum>(C)</enum><text>section 503(d) of the Trade Act of 1974 (19 U.S.C. 2463(d)); and</text> </subparagraph><subparagraph id="IDdc31e50ae0eb4e87b85c956e210c85c6"><enum>(D)</enum><text>General Note 3(a)(iv) to the Harmonized Tariff Schedule.</text> </subparagraph></paragraph><paragraph id="ID11ef8e7b085b4dc1ab9126e0394eb718"><enum>(7)</enum><header>Limitation</header><text>The quantity of cotton entered into the United States during any marketing year under the special import quota established under this subsection may not exceed the equivalent of 10 week’s consumption of upland cotton by domestic mills at the seasonally adjusted average rate of the 3 months immediately preceding the first special import quota established in any marketing year.</text> </paragraph></subsection><subsection id="ID8ed6c93ac44c4be8bbc8357669e0a62a"><enum>(b)</enum><header>Limited global import quota for upland cotton</header> <paragraph id="ID1c7cde6711cb48cfa3658ff89a07bf02"><enum>(1)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="ID192bb35ba8794b31a58f71787249bcb9"><enum>(A)</enum><header>Demand</header><text>The term <term>demand</term> means—</text> <clause id="ID2d3f9b7ce0d14b97a890117afc8c4346"><enum>(i)</enum><text>the average seasonally adjusted annual rate of domestic mill consumption of cotton during the most recent 3 months for which official data of the Department of Agriculture (as determined by the Secretary) are available; and</text> </clause><clause id="ID7d68d9669bf842bba026ceab3581ef88"><enum>(ii)</enum><text>the larger of—</text> <subclause id="ID1de6345c927f42c4a4f6cbed91c58aec"><enum>(I)</enum><text>average exports of upland cotton during the preceding 6 marketing years; or</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="ID271f60d5df4a408596cc2c1a5240da26"><enum>(II)</enum><text>cumulative exports of upland cotton plus outstanding export sales for the marketing year in which the quota is established.</text> </subclause></clause></subparagraph><subparagraph id="ID9010fb1b20064cc8aba588aab0892faa"><enum>(B)</enum><header>Limited global import quota</header><text>The term <term>limited global import quota</term> means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.</text> </subparagraph><subparagraph id="IDd76f0054d93944dfbfacd6884aa324fa"><enum>(C)</enum><header>Supply</header><text>The term <quote>supply</quote> means, using the latest official data of the Department of Agriculture—</text> <clause id="ID68c20516a0ec47f3bb4faa39e32b40a3"><enum>(i)</enum><text>the carryover of upland cotton at the beginning of the marketing year (adjusted to 480-pound bales) in which the quota is established;</text> </clause><clause id="ID097f9b905ed943d082d234f0833dfa87"><enum>(ii)</enum><text>production of the current crop; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="IDd7aaca1815b1472e944b5306c906be72"><enum>(iii)</enum><text>imports to the latest date available during the marketing year.</text> </clause></subparagraph></paragraph><paragraph id="ID7e9350f8bd424b96925f3c6eb965cca8"><enum>(2)</enum><header>Program</header><text>The President shall carry out an import quota program that provides that whenever the Secretary determines and announces that the average price of the base quality of upland cotton, as determined by the Secretary, in the designated spot markets for a month exceeded 130 percent of the average price of the quality of cotton in the markets for the preceding 36 months, notwithstanding any other provision of law, there shall immediately be in effect a limited global import quota subject to the following conditions:</text> <subparagraph id="IDe40f260c6dfa4d3d8811ce9daef098b7"><enum>(A)</enum><header>Quantity</header><text>The quantity of the quota shall be equal to 21 days of domestic mill consumption of upland cotton at the seasonally adjusted average rate of the most recent 3 months for which official data of the Department of Agriculture are available or as estimated by the Secretary.</text> </subparagraph><subparagraph id="ID3a28af0555574457b7c79a787c1ee3e0"><enum>(B)</enum><header>Quantity if prior quota</header><text>If a quota has been established under this subsection during the preceding 12 months, the quantity of the quota next established under this subsection shall be the smaller of 21 days of domestic mill consumption calculated under subparagraph (A) or the quantity required to increase the supply to 130 percent of the demand.</text> </subparagraph><subparagraph id="ID1354e1d3a2654842a7db6f0f033581fb"><enum>(C)</enum><header>Preferential tariff treatment</header><text>The quantity under a limited global import quota shall be considered to be an in-quota quantity for purposes of—</text> <clause id="ID1eca51241e764e468fdc144ca51bde4a"><enum>(i)</enum><text>section 213(d) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(d));</text> </clause><clause id="ID4db1c8cfad964eb4b54243f237f94964"><enum>(ii)</enum><text>section 204 of the Andean Trade Preference Act (19 U.S.C. 3203);</text> </clause><clause id="IDe8d61d6f06cb47a584beb84579a7f8ea"><enum>(iii)</enum><text>section 503(d) of the Trade Act of 1974 (19 U.S.C. 2463(d)); and</text> </clause><clause id="ID5b525b32dc504464b6eb335e481c58ef"><enum>(iv)</enum><text>General Note 3(a)(iv) to the Harmonized Tariff Schedule.</text> </clause></subparagraph><subparagraph id="IDca7ee2b6f8594678b8f49d2c7388532f"><enum>(D)</enum><header>Quota entry period</header><text>When a quota is established under this subsection, cotton may be entered under the quota during the 90-day period beginning on the date the quota is established by the Secretary.</text> </subparagraph></paragraph><paragraph id="IDe5ce9c4838d4469c839ed29782c39295"><enum>(3)</enum><header>No overlap</header><text>Notwithstanding paragraph (2), a quota period may not be established that overlaps an existing quota period or a special quota period established under subsection (a).</text> </paragraph></subsection><subsection id="id89075f885a47412ca289d90c92dc97c9"><enum>(c)</enum><header>Economic adjustment assistance to users of upland cotton</header> <paragraph id="idd08d6352801c4bd69ba0756716a2f909"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), the Secretary shall, on a monthly basis, make economic adjustment assistance available to domestic users of upland cotton in the form of payments for all documented use of that upland cotton during the previous monthly period regardless of the origin of the upland cotton.</text> </paragraph><paragraph id="ide4cb437d6c864dc78e526460a0698e11"><enum>(2)</enum><header>Value of assistance</header><text>Effective beginning on August 1, 2012, the value of the assistance provided under paragraph (1) shall be 3 cents per pound.</text> </paragraph><paragraph id="ida62206fe0e04461387409b728fb8ee3b"><enum>(3)</enum><header>Allowable purposes</header><text>Economic adjustment assistance under this subsection shall be made available only to domestic users of upland cotton that certify that the assistance shall be used only to acquire, construct, install, modernize, develop, convert, or expand land, plant, buildings, equipment, facilities, or machinery.</text> </paragraph><paragraph id="id0061a68d95a3471d873bd8910480e393"><enum>(4)</enum><header>Review or audit</header><text>The Secretary may conduct such review or audit of the records of a domestic user under this subsection as the Secretary determines necessary to carry out this subsection.</text> </paragraph><paragraph id="idf5b424145600471b83b957d517001c63"><enum>(5)</enum><header>Improper use of assistance</header><text>If the Secretary determines, after a review or audit of the records of the domestic user, that economic adjustment assistance under this subsection was not used for the purposes specified in paragraph (3), the domestic user shall be—</text> <subparagraph id="idafadfb2eb5614fc6bdf81272ad56470f"><enum>(A)</enum><text>liable for the repayment of the assistance to the Secretary, plus interest, as determined by the Secretary; and</text> </subparagraph><subparagraph id="idf6d4a99085134d50b340c8ace6aadecf"><enum>(B)</enum><text>ineligible to receive assistance under this subsection for a period of 1 year following the determination of the Secretary.</text> </subparagraph></paragraph></subsection></section><section id="IDf5dcaf73cb454013941a7f6271d12ba9"><enum>1208.</enum><header>Special competitive provisions for extra long staple cotton</header> <subsection id="ID584b470c94be4752aedaf0b0f838e3f5"><enum>(a)</enum><header>Competitiveness program</header><text>Notwithstanding any other provision of law, during the period beginning on the date of enactment of this Act through July 31, 2018, the Secretary shall carry out a program—</text> <paragraph id="ID994a0270512f48abba461598c78e3d11"><enum>(1)</enum><text>to maintain and expand the domestic use of extra long staple cotton produced in the United States;</text> </paragraph><paragraph id="ID33346b384f7d4d908435e8067a1fb19e"><enum>(2)</enum><text>to increase exports of extra long staple cotton produced in the United States; and</text> </paragraph><paragraph id="ID5631360450dd4bee87af3fa8ecf42555"><enum>(3)</enum><text>to ensure that extra long staple cotton produced in the United States remains competitive in world markets.</text> </paragraph></subsection><subsection id="IDc1ab7044422340908c0704b0b14a01af"><enum>(b)</enum><header>Payments under program; trigger</header><text>Under the program, the Secretary shall make payments available under this section whenever—</text> <paragraph id="IDe2183b2c8dc3464587504dd2ca599699"><enum>(1)</enum><text>for a consecutive 4-week period, the world market price for the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is below the prevailing United States price for a competing growth of extra long staple cotton; and</text> </paragraph><paragraph id="ID484f7eefe4a0491a9c0204dced2664f0"><enum>(2)</enum><text>the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is less than 134 percent of the loan rate for extra long staple cotton.</text> </paragraph></subsection><subsection id="ID1b19ae1fe43842158cd9b91c87df8ff6"><enum>(c)</enum><header>Eligible recipients</header><text>The Secretary shall make payments available under this section to domestic users of extra long staple cotton produced in the United States and exporters of extra long staple cotton produced in the United States that enter into an agreement with the Commodity Credit Corporation to participate in the program under this section.</text> </subsection><subsection id="IDfd2b021b82bc4fe0ba2632fc1154be83"><enum>(d)</enum><header>Payment amount</header><text>Payments under this section shall be based on the amount of the difference in the prices referred to in subsection (b)(1) during the fourth week of the consecutive 4-week period multiplied by the amount of documented purchases by domestic users and sales for export by exporters made in the week following such a consecutive 4-week period.</text> </subsection></section><section id="ID3a780db4530147f7b38043cede736059"><enum>1209.</enum><header>Availability of recourse loans for high moisture feed grains and seed cotton</header> <subsection id="ID6ae9e77b589b4a3baef9fc5113738080"><enum>(a)</enum><header>High moisture feed grains</header> <paragraph id="ID9dda694c84c046abb4f27c5863b4ef4b"><enum>(1)</enum><header>Definition of high moisture state</header><text>In this subsection, the term <term>high moisture state</term> means corn or grain sorghum having a moisture content in excess of Commodity Credit Corporation standards for marketing assistance loans made by the Secretary under section 1201.</text> </paragraph><paragraph id="IDd676cb8dc2f94d418e5b72da00ac7279"><enum>(2)</enum><header>Recourse loans available</header><text>For each of the 2013 through 2017 crops of corn and grain sorghum, the Secretary shall make available recourse loans, as determined by the Secretary, to producers on a farm that—</text> <subparagraph id="ID056f62af857d41dc996430fcf7b7a475"><enum>(A)</enum><text>normally harvest all or a portion of their crop of corn or grain sorghum in a high moisture state;</text> </subparagraph><subparagraph id="ID243e8ccd935c4df8b10c611e11864329"><enum>(B)</enum><text>present—</text> <clause id="ID6231e15138b04b2d9719194d20c458f8"><enum>(i)</enum><text>certified scale tickets from an inspected, certified commercial scale, including a licensed warehouse, feedlot, feed mill, distillery, or other similar entity approved by the Secretary, pursuant to regulations issued by the Secretary; or</text> </clause><clause id="ID4d01430d253b49c8a24f294798eb1551"><enum>(ii)</enum><text>field or other physical measurements of the standing or stored crop in regions of the United States, as determined by the Secretary, that do not have certified commercial scales from which certified scale tickets may be obtained within reasonable proximity of harvest operation;</text> </clause></subparagraph><subparagraph id="IDf53aa34bb8ff4237932b9269e3c40a59"><enum>(C)</enum><text>certify that the producers on the farm were the owners of the feed grain at the time of delivery to, and that the quantity to be placed under loan under this subsection was in fact harvested on the farm and delivered to, a feedlot, feed mill, or commercial or on-farm high-moisture storage facility, or to a facility maintained by the users of corn and grain sorghum in a high moisture state; and</text> </subparagraph><subparagraph id="IDdf06371f81d349bd9049863f34d8cad9"><enum>(D)</enum><text>comply with deadlines established by the Secretary for harvesting the corn or grain sorghum and submit applications for loans under this subsection within deadlines established by the Secretary.</text> </subparagraph></paragraph><paragraph id="ID02131998e9db452985ee1a9bf28f6af7"><enum>(3)</enum><header>Eligibility of acquired feed grains</header><text>A loan under this subsection shall be made on a quantity of corn or grain sorghum of the same crop acquired by the producer equivalent to a quantity determined by multiplying—</text> <subparagraph id="IDa7f336c103b647b4a05ad55956ab6166"><enum>(A)</enum><text>the acreage of the corn or grain sorghum in a high moisture state harvested on the farm of the producer; by</text> </subparagraph><subparagraph id="ID3305dbf84ca140b3b4696d59a6e737bd"><enum>(B)</enum><text>the lower of the actual average yield used to make payments under subtitle A or the actual yield on a field, as determined by the Secretary, that is similar to the field from which the corn or grain sorghum was obtained.</text> </subparagraph></paragraph></subsection><subsection id="ID0cfab5c2913b40078186b0c93f25cadd"><enum>(b)</enum><header>Recourse loans available for seed cotton</header><text>For each of the 2013 through 2017 crops of upland cotton and extra long staple cotton, the Secretary shall make available recourse seed cotton loans, as determined by the Secretary, on any production.</text> </subsection><subsection id="IDe3a39daec2d749059f88da1ec223b4f6"><enum>(c)</enum><header>Repayment rates</header><text>Repayment of a recourse loan made under this section shall be at the loan rate established for the commodity by the Secretary, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).</text> </subsection></section><section id="IDcefb95f686fb47f6b283b5abdf17088c"><enum>1210.</enum><header>Adjustments of loans</header> <subsection id="ID375d5a624a4741759be2bc1cfc0583cd"><enum>(a)</enum><header>Adjustment authority</header><text>Subject to subsection (e), the Secretary may make appropriate adjustments in the loan rates for any loan commodity (other than cotton) for differences in grade, type, quality, location, and other factors.</text> </subsection><subsection id="ID4c3646023cb7474b9d7c4000adf7f76f"><enum>(b)</enum><header>Manner of adjustment</header><text>The adjustments under subsection (a) shall, to the maximum extent practicable, be made in such a manner that the average loan level for the commodity will, on the basis of the anticipated incidence of the factors, be equal to the level of support determined in accordance with this subtitle and subtitles C through E.</text> </subsection><subsection id="IDf476562d5c374b46bc71e3c0b68f0aa2"><enum>(c)</enum><header>Adjustment on county basis</header> <paragraph id="ID07adee154d454ef1b09dcd9ec02b7615"><enum>(1)</enum><header>In general</header><text>The Secretary may establish loan rates for a crop for producers in individual counties in a manner that results in the lowest loan rate being 95 percent of the national average loan rate, if those loan rates do not result in an increase in outlays.</text> </paragraph><paragraph id="ID57ffd6e2a1874cf6959f597e7719f4a6"><enum>(2)</enum><header>Prohibition</header><text>Adjustments under this subsection shall not result in an increase in the national average loan rate for any year.</text> </paragraph></subsection><subsection id="ID8bdeafe7279643779325261bf79e7e5e"><enum>(d)</enum><header>Adjustment in loan rate for cotton</header> <paragraph id="ID086421a5a3004a6b9f00b22f4970c391"><enum>(1)</enum><header>In general</header><text>The Secretary may make appropriate adjustments in the loan rate for cotton for differences in quality factors.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDF1722A5F69A14C6FB2E0AE885B4AF0C3"><enum>(2)</enum><header display-inline="yes-display-inline">Revisions to quality adjustments for upland cotton</header> <subparagraph commented="no" display-inline="no-display-inline" id="ID13D76D2966464B9592A13FF170EFB1D4"><enum>(A)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary shall implement revisions in the administration of the marketing assistance loan program for upland cotton to more accurately and efficiently reflect market values for upland cotton.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID29FE1AC7FA6F451F8CAC5F974957946A"><enum>(B)</enum><header>Mandatory revisions</header><text>Revisions under subparagraph (A) shall include—</text> <clause id="IDB3F1F178C6AF45739AFA26D002D88BB4"><enum>(i)</enum><text>the elimination of warehouse location differentials;</text> </clause><clause id="IDCA45334FC1FD4C1988CCCED02BA43C38"><enum>(ii)</enum><text>the establishment of differentials for the various quality factors and staple lengths of cotton based on a 3-year, weighted moving average of the weighted designated spot market regions, as determined by regional production;</text> </clause><clause id="IDA27C0F1AEF1C4AE98C928DA0C15938FE"><enum>(iii)</enum><text>the elimination of any artificial split in the premium or discount between upland cotton with a 32 or 33 staple length due to micronaire; and</text> </clause><clause id="ID7CB8DEEAB6634FC68CC4A49CA5DF9096"><enum>(iv)</enum><text>a mechanism to ensure that no premium or discount is established that exceeds the premium or discount associated with a leaf grade that is 1 better than the applicable color grade.</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID64B4B96D433F49B184C7BEBE5075CF5F"><enum>(C)</enum><header>Discretionary revisions</header><text>Revisions under subparagraph (A) may include—</text> <clause id="IDCAECB31BC8D34CACB16C27B06674FD1D"><enum>(i)</enum><text>the use of non-spot market price data, in addition to spot market price data, that would enhance the accuracy of the price information used in determining quality adjustments under this subsection;</text> </clause><clause id="ID89A78E38C61748D6BFE138D335E00ACE"><enum>(ii)</enum><text>adjustments in the premiums or discounts associated with upland cotton with a staple length of 33 or above due to micronaire with the goal of eliminating any unnecessary artificial splits in the calculations of the premiums or discounts; and</text> </clause><clause id="ID4D5FD73F57A449F095C0B56251F22729"><enum>(iii)</enum><text>such other adjustments as the Secretary determines appropriate, after consultations conducted in accordance with paragraph (3).</text> </clause></subparagraph></paragraph><paragraph id="ID9e45bc130c794e7eb1abeaa9aae9ea27"><enum>(3)</enum><header>Consultation with private sector</header> <subparagraph id="IDbe907e0f781145b3871fda68ea8f2ff6"><enum>(A)</enum><header>Prior to revision</header><text>In making adjustments to the loan rate for cotton (including any review of the adjustments) as provided in this subsection, the Secretary shall consult with representatives of the United States cotton industry.</text> </subparagraph><subparagraph id="IDe599e226786c48388feb5fe18783a139"><enum>(B)</enum><header>Inapplicability of Federal Advisory Committee Act</header><text>The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to consultations under this subsection.</text> </subparagraph></paragraph><paragraph id="ID7c6ea64266134b92b76284df934c3b4a"><enum>(4)</enum><header>Review of adjustments</header><text>The Secretary may review the operation of the upland cotton quality adjustments implemented pursuant to this subsection and may make further revisions to the administration of the loan program for upland cotton, by—</text> <subparagraph id="IDfc9f2a33e5704381830cae257fe015e3"><enum>(A)</enum><text>revoking or revising any actions taken under paragraph (2)(B); or</text> </subparagraph><subparagraph id="ID7719bfd8ec864ab6a06cd464bbd6acd4"><enum>(B)</enum><text>revoking or revising any actions taken or authorized to be taken under paragraph (2)(C).</text> </subparagraph></paragraph></subsection><subsection id="IDdd6c75b9fe35417eb75c59b1bfeda1eb"><enum>(e)</enum><header>Rice</header><text>The Secretary shall not make adjustments in the loan rates for long grain rice and medium grain rice, except for differences in grade and quality (including milling yields).</text> </subsection></section></subtitle><subtitle id="id03FFDCC1B9434736BD08CD42EC2776D9"><enum>C</enum><header>Sugar</header> <section id="idD919B960ED7F43E3854AA045BB76BE21"><enum>1301.</enum><header>Sugar program</header> <subsection id="IDb083f85ccda742c5898d30261f84f0b3"><enum>(a)</enum><header>Continuation of current program and loan rates</header> <paragraph id="IDa7f7e958d29040eaa647f78383c9acf5"><enum>(1)</enum><header>Sugarcane</header><text>Section 156(a)(5) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(a)(5)) is amended by striking <quote>the 2012 crop year</quote> and inserting <quote>each of the 2012 through 2017 crop years</quote>.</text> </paragraph><paragraph id="ID6f5112e307ef440a833fb8ed15e0c60c"><enum>(2)</enum><header>Sugar beets</header><text>Section 156(b)(2) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(b)(2)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph><paragraph id="ID744bfc26bb6344da9ef0294a9eb03bdf"><enum>(3)</enum><header>Effective period</header><text>Section 156(i) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(i)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph></subsection><subsection id="ID45c9b13272074f5685ab1bef4115d617"><enum>(b)</enum><header>Flexible marketing allotments for sugar</header> <paragraph id="ID78e5fffc213142b694a71eb0d2ab4dc5"><enum>(1)</enum><header>Sugar estimates</header><text>Section 359b(a)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph><paragraph id="id82FCE96FED644B6E800EB89EC59C52B4"><enum>(2)</enum><header>Sugar import quota adjustment date</header><text>Section 359k(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk(b)) is amended—</text> <subparagraph id="id86F3F3AF06E04227A2B3916489AF1945"><enum>(A)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">April 1</header-in-text></quote> each place it appears and inserting <quote><header-in-text level="paragraph" style="OLC">February 1</header-in-text></quote>; and</text> </subparagraph><subparagraph id="idC01FDD1B6E04450B9E74FF98986675AC"><enum>(B)</enum><text>by striking <quote>April 1</quote> each place it appears and inserting <quote>February 1</quote>.</text> </subparagraph></paragraph><paragraph id="IDf0c85bfad65048409fd31876b736c578"><enum>(3)</enum><header>Effective period</header><text>Section 359l(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph></subsection></section></subtitle><subtitle id="HC0799A848CCE43DB9EE692502BF07036"><enum>D</enum><header>Dairy</header> <part id="HBF0FF351F423411CA0734F07C07538AA"><enum>I</enum><header>Dairy production margin protection and dairy market stabilization programs</header> <section id="HF6D8E78700FF4CDCBDC2D45253DB94D6"><enum>1401.</enum><header>Definitions</header><text display-inline="no-display-inline">In this part:</text> <paragraph id="H2F4DD9D6783A4F5DAA1FF43253C0318F"><enum>(1)</enum><header>Actual dairy production margin</header><text>The term <term>actual dairy production margin</term> means the difference between the all-milk price and the average feed cost, as calculated under section 1402.</text> </paragraph><paragraph id="H52F99218259241EFAE4EEC11CB1C5890"><enum>(2)</enum><header>All-milk price</header><text>The term <term>all-milk price</term> means the average price received, per hundredweight of milk, by dairy operations for all milk sold to plants and dealers in the United States, as determined by the Secretary.</text> </paragraph><paragraph id="H283BA85E523B494EB8DDFD1F31C6D48D"><enum>(3)</enum><header>Annual production history</header><text>The term <term>annual production history</term> means the production history determined for a participating dairy operation under section 1413(b) whenever the participating dairy operation purchases supplemental production margin protection.</text> </paragraph><paragraph id="HB11A1158CAA740D0B0B928C6B6F262C8"><enum>(4)</enum><header>Average feed cost</header><text>The term <term>average feed cost</term> means the average cost of feed used by a dairy operation to produce a hundredweight of milk, determined under section 1402 using the sum of the following:</text> <subparagraph id="H74E96B902C2E43A38852DEC5001B6776"><enum>(A)</enum><text>The product determined by multiplying 1.0728 by the price of corn per bushel.</text> </subparagraph><subparagraph id="HAF91500EF488462D8615DC8D2E6F61B7"><enum>(B)</enum><text>The product determined by multiplying 0.00735 by the price of soybean meal per ton.</text> </subparagraph><subparagraph id="H0352172D2F204F55A4F245E3D3F0430D"><enum>(C)</enum><text>The product determined by multiplying 0.0137 by the price of alfalfa hay per ton.</text> </subparagraph></paragraph><paragraph id="H945549BB7A2F4118B9354BF59241F05D"><enum>(5)</enum><header>Basic production history</header><text>The term <term>basic production history</term> means the production history determined for a participating dairy operation under section 1413(a) for provision of basic production margin protection.</text> </paragraph><paragraph id="HA2D2A8E19F7E49CB970DEF3122550903"><enum>(6)</enum><header>Consecutive 2-month period</header><text>The term <term>consecutive 2-month period</term> refers to the 2-month period consisting of the months of January and February, March and April, May and June, July and August, September and October, or November and December, respectively.</text> </paragraph><paragraph id="ided728171837545f7ad23a63d250239ce"><enum>(7)</enum><header>Dairy operation</header> <subparagraph id="id053976548AC044AABA52EFC8451DCC72"><enum>(A)</enum><header>In general</header><text>The term <term>dairy operation</term> means, as determined by the Secretary, 1 or more dairy producers that produce and market milk as a single dairy operation in which each dairy producer—</text> <clause id="idda7665994ebf44a3b98dbfd157846812"><enum>(i)</enum><text>shares in the pooling of resources and a common ownership structure;</text> </clause><clause id="id55649add0fe044c9936b3a2222e9e4b3"><enum>(ii)</enum><text>is at risk in the production of milk on the dairy operation; and</text> </clause><clause id="idd97d7436048746918703908b55d9012c"><enum>(iii)</enum><text>contributes land, labor, management, equipment, or capital to the dairy operation.</text> </clause></subparagraph><subparagraph commented="no" id="HACF7EECA742349F5A718E247D340C15B"><enum>(B)</enum><header>Additional ownership structures</header><text>The Secretary shall determine additional ownership structures to be covered by the definition of dairy operation.</text> </subparagraph></paragraph><paragraph id="H8D95DAFA7CD44B21860044B4E80283F7"><enum>(8)</enum><header>Handler</header> <subparagraph id="H6C772A22C2B24F5CB409B564315CEFB7"><enum>(A)</enum><header>In general</header><text>The term <term>handler</term> means the initial individual or entity making payment to a dairy operation for milk produced in the United States and marketed for commercial use.</text> </subparagraph><subparagraph id="H8DF2DF7C1A7B4D6491A8BDA78C263F8C"><enum>(B)</enum><header>Producer-handler</header><text>The term includes a <term>producer-handler</term> when the producer satisfies the definition in subparagraph (A).</text> </subparagraph></paragraph><paragraph id="H389776034709443D83827B3FA19F4F3D"><enum>(9)</enum><header>Participating dairy operation</header><text>The term <term>participating dairy operation</term> means a dairy operation that—</text> <subparagraph id="HAC1FC500DA9C46908C36B19CC9CD1EC6"><enum>(A)</enum><text>signs up under section 1412 to participate in the production margin protection program under subpart A; and</text> </subparagraph><subparagraph id="H1CF5959164124CA4A5707283B3056864"><enum>(B)</enum><text>as a result, also participates in the stabilization program under subpart B.</text> </subparagraph></paragraph><paragraph id="H20B163C4183C4F66A0CDC16DAB1D994B"><enum>(10)</enum><header>Production margin protection program</header><text>The term <term>production margin protection program</term> means the dairy production margin protection program required by subpart A.</text> </paragraph><paragraph id="H6F69C9F2ADC64A45A55F8DB56A2DD23F"><enum>(11)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Agriculture.</text> </paragraph><paragraph id="H1E890D8DEF074A99BD41303972AFD837"><enum>(12)</enum><header>Stabilization program</header><text>The term <term>stabilization program</term> means the dairy market stabilization program required by subpart B for all participating dairy operations.</text> </paragraph><paragraph id="HE5D4592D6E9549A6BA3C7A6805B50B16"><enum>(13)</enum><header>Stabilization program base</header><text>The term <term>stabilization program base</term>, with respect to a participating dairy operation, means the stabilization program base calculated for the participating dairy operation under section 1431(b).</text> </paragraph><paragraph id="H85A81620831840DA98EB42817E401AA3"><enum>(14)</enum><header>United States</header><text>The term <term>United States</term>, in a geographical sense, means the 50 States, the District of Columbia, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, the Virgin Islands of the United States, and any other territory or possession of the United States.</text> </paragraph></section><section id="H9F1DFEBC5FD54D71AC9346A53038164F"><enum>1402.</enum><header>Calculation of average feed cost and actual dairy production margins</header> <subsection id="HD805426AF0BB424AA1F9FD8BC9856EB8"><enum>(a)</enum><header>Calculation of average feed cost</header><text>The Secretary shall calculate the national average feed cost for each month using the following data:</text> <paragraph id="H0770AFAC477543F996BDA85570A9FEC6"><enum>(1)</enum><text>The price of corn for a month shall be the price received during that month by farmers in the United States for corn, as reported in the monthly Agricultural Prices report by the Secretary.</text> </paragraph><paragraph id="H1E115BE2BA904694AA67FFB85EF4DF79"><enum>(2)</enum><text display-inline="yes-display-inline">The price of soybean meal for a month shall be the central Illinois price for soybean meal, as reported in the Market News–Monthly Soybean Meal Price Report by the Secretary.</text> </paragraph><paragraph id="H786520C93271452BB77D0AC3E5207201"><enum>(3)</enum><text display-inline="yes-display-inline">The price of alfalfa hay for a month shall be the price received during that month by farmers in the United States for alfalfa hay, as reported in the monthly Agricultural Prices report by the Secretary.</text> </paragraph></subsection><subsection id="HFD4EFA2617D348F5B44938CA4385E12B"><enum>(b)</enum><header>Calculation of actual dairy production margins</header> <paragraph id="H8663A4F99F3C40198D55FBE4DEFA7179"><enum>(1)</enum><header>Production margin protection program</header><text>For use in the production margin protection program under subpart A, the Secretary shall calculate the actual dairy production margin for each consecutive 2-month period by subtracting—</text> <subparagraph id="H5996184AC451408B934BAB50476CAE10"><enum>(A)</enum><text>the average feed cost for that consecutive 2-month period, determined in accordance with subsection (a); from</text> </subparagraph><subparagraph id="HBE5699DBECB5443B9E7CC06AAFAB79F2"><enum>(B)</enum><text>the all-milk price for that consecutive 2-month period.</text> </subparagraph></paragraph><paragraph id="H47051AEBCBD7452BA875ABFA1E24FB31"><enum>(2)</enum><header>Stabilization program</header><text>For use in the stabilization program under subpart B, the Secretary shall calculate each month the actual dairy production margin for the preceding month by subtracting—</text> <subparagraph id="H09535344576242E588BB6F4B06890986"><enum>(A)</enum><text>the average feed cost for that preceding month, determined in accordance with subsection (a); from</text> </subparagraph><subparagraph id="H13EC19604A4E4F7F8554AC7655945A36"><enum>(B)</enum><text>the all-milk price for that preceding month.</text> </subparagraph></paragraph><paragraph id="H06363DD2A7AD4F5BBAAC4777EE109835"><enum>(3)</enum><header>Time for calculations</header><text>The calculations required by paragraphs (1) and (2) shall be made as soon as practicable using the full month price of the applicable reference month.</text> </paragraph></subsection></section><subpart id="HAD5078B3B79A48D8B914078D8790DC17"><enum>A</enum><header>Dairy production margin protection program</header> <section id="HD5F73B9453C94D03BBA84880D6D299A0"><enum>1411.</enum><header>Establishment of dairy production margin protection program</header><text display-inline="no-display-inline">Effective not later than 120 days after the effective date of this subtitle, the Secretary shall establish and administer a dairy production margin protection program under which participating dairy operations are paid—</text> <paragraph id="HA23652025591426D949818ED9CF2FBFB"><enum>(1)</enum><text>basic production margin protection program payments under section 1414 when actual dairy production margins are less than the threshold levels for such payments; and</text> </paragraph><paragraph id="HCA7475F37D604799ACB33714BE15E077"><enum>(2)</enum><text>supplemental production margin protection program payments under section 1415 if purchased by a participating dairy operation.</text> </paragraph></section><section id="H627796F99FEA48598A9A200F5B018945"><enum>1412.</enum><header>Participation of dairy operations in production margin protection program</header> <subsection id="H28E2DD70FEA247FE92B65CCF65582B91"><enum>(a)</enum><header>Eligibility</header><text display-inline="yes-display-inline">All dairy operations in the United States shall be eligible to participate in the production margin protection program, except that a participating dairy operation shall be required to register with the Secretary before the participating dairy operation may receive—</text> <paragraph id="H790FDF259D61432A9EBF0BD25DEF1BB5"><enum>(1)</enum><text>basic production margin protection program payments under section 1414; and</text> </paragraph><paragraph id="H1C8D40AF11344721A58C7141EFE52B75"><enum>(2)</enum><text display-inline="yes-display-inline">if the participating dairy operation purchases supplemental production margin protection under section 1415, supplemental production margin protection program payments under such section.</text> </paragraph></subsection><subsection id="HC2FF3B079E2C4992A78F69E5EB94D723"><enum>(b)</enum><header>Registration process</header> <paragraph id="id689A5DA2601F4C668C74F16CEE6E0388"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall specify the manner and form by which a participating dairy operation may register to participate in the production margin protection program.</text> </paragraph><paragraph id="iddd86c235eddf481a8897a7afa587a948"><enum>(2)</enum><header>Treatment of multiproducer dairy operations</header><text>If a participating dairy operation is operated by more than 1 dairy producer, all of the dairy producers of the participating dairy operation shall be treated as a single dairy operation for purposes of—</text> <subparagraph id="id9a842ba1697043e495278f88ecd63bd2"><enum>(A)</enum><text>registration to receive basic production margin protection and election to purchase supplemental production margin protection;</text> </subparagraph><subparagraph id="id9afa7a2acccf47ccb3d388b9c8cf63ae"><enum>(B)</enum><text>payment of the participation fee under subsection (d) and producer premiums under section 1415; and</text> </subparagraph><subparagraph id="idb6f2775ba5ba44fe9da216e1367aae3a"><enum>(C)</enum><text>participation in the stabilization program under subtitle B.</text> </subparagraph></paragraph><paragraph id="id31cfdcbc5c1846679fe72168cd4103d9"><enum>(3)</enum><header>Treatment of producers with multiple dairy operations</header><text>If a dairy producer operates 2 or more dairy operations, each dairy operation of the producer shall separately register to receive basic production margin protection and purchase supplemental production margin protection and only those dairy operations so registered shall be covered by the stabilization program.</text> </paragraph></subsection><subsection id="H2F9F7901FA1B4A929755C58C7219A2FF"><enum>(c)</enum><header>Time for registration</header> <paragraph id="H55D8E5F006B64EE4A7231F676DF88281"><enum>(1)</enum><header>Existing dairy operations</header><text display-inline="yes-display-inline">During the 15-month period beginning on the date of the initiation of the registration period for the production margin protection program, a dairy operation that is actively engaged as of such date may register with the Secretary—</text> <subparagraph id="HD7D1C732CC4745E9BFE86BC1E86AAFE1"><enum>(A)</enum><text>to receive basic production margin protection; and</text> </subparagraph><subparagraph id="HA9C42EA3E3494173865A56D5ED739C2E"><enum>(B)</enum><text>if the dairy operation elects, to purchase supplemental production margin protection.</text> </subparagraph></paragraph><paragraph commented="no" id="HE99DC15CABE74D37BDDF9D6F77E64B2B"><enum>(2)</enum><header>New Entrants</header><text display-inline="yes-display-inline">A dairy producer that has no existing interest in a dairy operation as of the date of the initiation of the registration period for the production margin protection program, but that, after such date, establishes a new dairy operation, may register with the Secretary during the 1-year period beginning on the date on which the dairy operation first markets milk commercially—</text> <subparagraph commented="no" id="H4288F79696034BDA9221AE164429A80F"><enum>(A)</enum><text>to receive basic production margin protection; and</text> </subparagraph><subparagraph commented="no" id="H9BB4FAA33B414044B6A5C05103591744"><enum>(B)</enum><text>if the dairy operation elects, to purchase supplemental production margin protection.</text> </subparagraph></paragraph></subsection><subsection id="HF93868B257A3497A8C8C429665914715"><enum>(d)</enum><header>Transition from MILC to production margin protection</header> <paragraph id="id7418C705100E4A60B6D274BE2435653C"><enum>(1)</enum><header>Definition of transition period</header><text>In this subsection, the term <term>transition period</term> means the period during which the milk income loss program established under section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) and the production margin protection program under this subtitle are both in existence.</text> </paragraph><paragraph id="HE30A9B3F50AA4322AD8CEE76FBFD2583"><enum>(2)</enum><header>Notice of availability</header><text display-inline="yes-display-inline">Not later than 30 days after the date of enactment of this Act, the Secretary shall publish a notice in the Federal Register to inform dairy operations of the availability of basic production margin protection and supplemental production margin protection, including the terms of the protection and information about the option of dairy operations during the transition period to make an election described in paragraph (3).</text> </paragraph><paragraph id="idADC995F4328848BF962D12DEEF1C8CFF"><enum>(3)</enum><header>Election</header><text display-inline="yes-display-inline">Except as provided in paragraph (4), a dairy operation may elect to participate in either the milk income loss program established under section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) or the production margin protection program under this subtitle for the duration of the transition period.</text> </paragraph><paragraph id="id18DDA38C347D4992B2C375C5ED7854AC"><enum>(4)</enum><header>Transfer to production margin protection</header><text>A dairy operation that elects to participate in the milk income loss program established under section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) during the transition period may, at any time, make a permanent transfer to the production margin protection program.</text> </paragraph></subsection><subsection id="H2C478E9A9560436CA2A21CB0967E7D8E"><enum>(e)</enum><header>Administration fee</header> <paragraph id="H8C9902DF6A9C494DB145110148C25138"><enum>(1)</enum><header>Administration fee required</header><text display-inline="yes-display-inline">Except as provided in paragraph (5), a participating dairy operation shall—</text> <subparagraph id="id2EAFC83D48764DAAA3BA525CD2CE39EA"><enum>(A)</enum><text display-inline="yes-display-inline">pay an administration fee under this subsection to register to participate in the production margin protection program; and</text> </subparagraph><subparagraph id="id5F5C90C5D54543C69D3978D5138B0036"><enum>(B)</enum><text display-inline="yes-display-inline">pay the administration fee annually thereafter to continue to participate in the production margin protection program.</text> </subparagraph></paragraph><paragraph id="H31AAE084C8414C9DA33868AA7B77D2A2"><enum>(2)</enum><header>Fee amount</header><text display-inline="yes-display-inline">The administration fee for a participating dairy operation for a calendar year shall be based on the pounds of milk (in millions) marketed by the participating dairy operation in the previous calendar year, as follows:</text> <table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 2 text, even cols" table-type=""> <tgroup cols="2" grid-typeface="1.1" no-carding="1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec align="center" coldef="fig" colname="column1" colwidth="106pts" min-data-value="19" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="column2" colwidth="106pts" min-data-value="19" rowsep="0"></colspec> <thead> <row><entry align="center" colname="column1" morerows="0" namest="column1" rowsep="1">Pounds Marketed (in millions)</entry><entry align="center" colname="column2" morerows="0" namest="column2" rowsep="1">Administration Fee</entry> </row> </thead> <tbody> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">less than 1</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$100</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">1 to 5 </entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$250</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">more than 5 to 10</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$350</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">more than 10 to 40</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$1,000</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">more than 40</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$2,500</entry> </row> </tbody> </tgroup> </table> </paragraph><paragraph id="HE259085044514F7BBEA3E585E192F0AC"><enum>(3)</enum><header>Deposit of Fees</header><text display-inline="yes-display-inline">All administration fees collected under this subsection shall be credited to the fund or account used to cover the costs incurred to administer the production margin protection program and the stabilization program and shall be available to the Secretary, without further appropriation and until expended, for use or transfer as provided in paragraph (4).</text> </paragraph><paragraph id="H75701BF4C452476D84AACFBDBAB415E5"><enum>(4)</enum><header>Use of Fees</header><text display-inline="yes-display-inline">The Secretary shall use administration fees collected under this subsection—</text> <subparagraph id="H244232D9FAAF46FA849C6FF13FE60228"><enum>(A)</enum><text>to cover administrative costs of the production margin protection program and stabilization program; and</text> </subparagraph><subparagraph id="HFECE8E4B232B43D5ACDD54EC503F89FA"><enum>(B)</enum><text display-inline="yes-display-inline">to cover costs of the Department of Agriculture relating to reporting of dairy market news, carrying out the amendments made by section 1476, and carrying out section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b)), to the extent funds remain available after operation of subparagraph (A).</text> </subparagraph></paragraph><paragraph id="id74A1274092FD476A9B63DE01C0611E97"><enum>(5)</enum><header>Waiver</header><text>The Secretary shall waive or reduce the administration fee required under paragraph (1) in the case of a limited-resource dairy operation, as defined by the Secretary.</text> </paragraph></subsection><subsection id="idC08BE55E43AD4771B985B5E34BDE9446"><enum>(f)</enum><header>Limitation</header><text>A dairy operation may only participate in the production margin protection program or the livestock gross margin for dairy program under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), but not both.</text> </subsection></section><section id="H75B9C971CC394710BAD30BFD88BC20C9"><enum>1413.</enum><header>Production history of participating dairy operations</header> <subsection id="H24AE7B52A7F2418199D16EF5A315A2CD"><enum>(a)</enum><header>Production history for basic production margin protection</header> <paragraph id="HA554E655E13B4A77A9FEA55DC923A637"><enum>(1)</enum><header>Determination required</header><text display-inline="yes-display-inline">For purposes of providing basic production margin protection, the Secretary shall determine the basic production history of a participating dairy operation.</text> </paragraph><paragraph commented="no" id="H968F8C3EC7ED4D20A1E801B2374B5C23"><enum>(2)</enum><header>Calculation</header><text display-inline="yes-display-inline">Except as provided in paragraph (3), the basic production history of a participating dairy operation for basic production margin protection is equal to the highest annual milk marketings of the participating dairy operation during any 1 of the 3 calendar years immediately preceding the calendar year in which the participating dairy operation first signed up to participate in the production margin protection program.</text> </paragraph><paragraph id="H5E1256FCFEB14A89AFDB5AD2EA6ECD19"><enum>(3)</enum><header>Election by new dairy operations</header><text display-inline="yes-display-inline">In the case of a participating dairy operation that has been in operation for less than a year, the participating dairy operation shall elect 1 of the following methods for the Secretary to determine the basic production history of the participating dairy operation:</text> <subparagraph id="HEE78E8F4B28540959D448AB9E7505D5C"><enum>(A)</enum><text>The volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount.</text> </subparagraph><subparagraph id="HD8581BFC456441539550621C4454B287"><enum>(B)</enum><text>An estimate of the actual milk marketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national rolling herd average data published by the Secretary.</text> </subparagraph></paragraph><paragraph commented="no" id="H5855FE9074524AFCB77A7B42A4C93387"><enum>(4)</enum><header>No change in production history for basic production margin protection</header><text display-inline="yes-display-inline">Once the basic production history of a participating dairy operation is determined under paragraph (2) or (3), the basic production history shall not be subsequently changed for purposes of determining the amount of any basic production margin protection payments for the participating dairy operation made under section 1414.</text> </paragraph></subsection><subsection id="HD0231925A1E04DF0B1CDDBA26AF03A6A"><enum>(b)</enum><header>Annual production history for supplemental production margin protection</header> <paragraph id="H90FF22F5CA624E79B8AFE9940F4AF34D"><enum>(1)</enum><header>Determination required</header><text display-inline="yes-display-inline">For purposes of providing supplemental production margin protection for a participating dairy operation that purchases supplemental production margin protection for a year under section 1415, the Secretary shall determine the annual production history of the participating dairy operation under paragraph (2).</text> </paragraph><paragraph commented="no" id="H8D68EB3941F64FB7B5C2BBED03C2C10F"><enum>(2)</enum><header>Calculation</header><text display-inline="yes-display-inline">The annual production history of a participating dairy operation for a year is equal to the actual milk marketings of the participating dairy operation during the preceding calendar year.</text> </paragraph><paragraph id="HA34A54BCF76F48EBA28A981EA4954298"><enum>(3)</enum><header>New dairy operations</header><text display-inline="yes-display-inline">Subsection (a)(3) shall apply with respect to determining the annual production history of a participating dairy operation that has been in operation for less than a year.</text> </paragraph></subsection><subsection id="HB16562E07EFF492F9EC4271B3C745A2E"><enum>(c)</enum><header>Required information</header><text display-inline="yes-display-inline">A participating dairy operation shall provide all information that the Secretary may require in order to establish—</text> <paragraph id="HDE341637CD684E4F94205213B696471A"><enum>(1)</enum><text display-inline="yes-display-inline">the basic production history of the participating dairy operation under subsection (a); and</text> </paragraph><paragraph id="HBF6EE4E28E284B66AE01474FD167E144"><enum>(2)</enum><text display-inline="yes-display-inline">the production history of the participating dairy operation whenever the participating dairy operation purchases supplemental production margin protection under section 1415.</text> </paragraph></subsection><subsection id="H00E4EF8A38F8482FA46ECB6ED21C1FF9"><enum>(d)</enum><header>Transfer of production histories</header> <paragraph id="H1CF038FDE3264E9E99CB04F7D1FD1B2C"><enum>(1)</enum><header>Transfer by sale or lease</header><text display-inline="yes-display-inline">In promulgating the rules to initiate the production margin protection program, the Secretary shall specify the conditions under which and the manner by which the production history of a participating dairy operation may be transferred by sale or lease.</text> </paragraph><paragraph id="HCC2016BD05584313A34E94EED1DAADC5"><enum>(2)</enum><header>Coverage level</header> <subparagraph id="HECF016F1C065495FA638019CDFBA6CD4"><enum>(A)</enum><header>Basic production margin protection</header><text display-inline="yes-display-inline">A purchaser or lessee to whom the Secretary transfers a basic production history under this subsection shall not obtain a different level of basic production margin protection than the basic production margin protection coverage held by the seller or lessor from whom the transfer was obtained.</text> </subparagraph><subparagraph id="HFF720FA3614D413389F8F94D660519D7"><enum>(B)</enum><header>Supplemental production margin protection</header><text display-inline="yes-display-inline">A purchaser or lessee to whom the Secretary transfers an annual production history under this subsection shall not obtain a different level of supplemental production margin protection coverage than the supplemental production margin protection coverage in effect for the seller or lessor from whom the transfer was obtained for the calendar year in which the transfer was made.</text> </subparagraph></paragraph></subsection><subsection id="H00CF7A933C79419AA937C2203C68C988"><enum>(e)</enum><header>Movement and transfer of production history</header> <paragraph id="H268E07E07B5C415EB97659086D21771A"><enum>(1)</enum><header>Movement and transfer authorized</header><text display-inline="yes-display-inline">Subject to paragraph (2), if a participating dairy operation moves from 1 location to another location, the participating dairy operation may transfer the basic production history and annual production history associated with the participating dairy operation.</text> </paragraph><paragraph id="H015B08517367491386685910B8BFA33F"><enum>(2)</enum><header>Notification requirement</header><text>A participating dairy operation shall notify the Secretary of any move of a participating dairy operation under paragraph (1).</text> </paragraph><paragraph id="HFDA63073902C4A9AB52D9436E38FF77F"><enum>(3)</enum><header>Subsequent occupation of vacated location</header><text display-inline="yes-display-inline">A party subsequently occupying a participating dairy operation location vacated as described in paragraph (1) shall have no interest in the basic production history or annual production history previously associated with the participating dairy operation at such location.</text> </paragraph></subsection></section><section id="H7ED93B8057454A14B5845C326F8F457C"><enum>1414.</enum><header>Basic production margin protection</header> <subsection id="H82DE99B2E8604537B2C1CEB2DEA3CC89"><enum>(a)</enum><header>Payment threshold</header><text display-inline="yes-display-inline">The Secretary shall make a payment to participating dairy operations in accordance with subsection (b) whenever the average actual dairy production margin for a consecutive 2-month period is less than $4.00 per hundredweight of milk.</text> </subsection><subsection id="H98D33B8784624335AF210AC88493FF77"><enum>(b)</enum><header>Basic production margin protection payment</header><text display-inline="yes-display-inline">The basic production margin protection payment for a participating dairy operation for a consecutive 2-month period shall be equal to the product obtained by multiplying—</text> <paragraph id="H26F6B5BEE3A44552A819A71DC160CEC2"><enum>(1)</enum><text display-inline="yes-display-inline">the difference between the average actual dairy production margin for the consecutive 2-month period and $4.00, except that, if the difference is more than $4.00, the Secretary shall use $4.00; by</text> </paragraph><paragraph id="H325D6A5C9F314F5DA0C7E98DBC490500"><enum>(2)</enum><text display-inline="yes-display-inline">the lesser of—</text> <subparagraph id="H563E0DEDC54140359708CD9B96795D86"><enum>(A)</enum><text>80 percent of the production history of the participating dairy operation, divided by 6; or</text> </subparagraph><subparagraph id="H6D42F83A84D1499CBD983D5C815AEF69"><enum>(B)</enum><text display-inline="yes-display-inline">the actual quantity of milk marketed by the participating dairy operation during the consecutive 2-month period.</text> </subparagraph></paragraph></subsection></section><section id="H7AEC059664274BA2AF21C795CD21144C"><enum>1415.</enum><header>Supplemental production margin protection</header> <subsection id="H0C2D753594D74DB1A66FC7A2A2A06AB3"><enum>(a)</enum><header>Election of supplemental production margin protection</header><text display-inline="yes-display-inline">A participating dairy operation may annually purchase supplemental production margin protection to protect, during the calendar year for which purchased, a higher level of the income of a participating dairy operation than the income level guaranteed by basic production margin protection under section 1414.</text> </subsection><subsection id="H1C15C838FE38474FA7F8A1FDD38090E8"><enum>(b)</enum><header>Selection of payment threshold</header><text display-inline="yes-display-inline">A participating dairy operation purchasing supplemental production margin protection for a year shall elect a coverage level that is higher, in any increment of $0.50, than the payment threshold for basic production margin protection specified in section 1414(a), but not to exceed $8.00.</text> </subsection><subsection id="H13E8F4FECDC043659222C77F9BFCD261"><enum>(c)</enum><header>Coverage percentage</header><text display-inline="yes-display-inline">A participating dairy operation purchasing supplemental production margin protection for a year shall elect a percentage of coverage equal to not more than 90 percent, nor less than 25 percent, of the annual production history of the participating dairy operation.</text> </subsection><subsection id="H8AB1D1F83F8B44C9B30CADCF02F41411"><enum>(d)</enum><header>Premiums for supplemental production margin protection</header> <paragraph id="H1062CE26EA184FB59D27F74332C54D5B"><enum>(1)</enum><header>Premiums required</header><text display-inline="yes-display-inline">A participating dairy operation that purchases supplemental production margin protection shall pay an annual premium equal to the product obtained by multiplying—</text> <subparagraph id="H7BB45A1874564FF89E60319FE7B4A199"><enum>(A)</enum><text>the coverage percentage elected by the participating dairy operation under subsection (c);</text> </subparagraph><subparagraph id="HC5BDE9C272D64E94AEDA57F9B8DFD859"><enum>(B)</enum><text>the annual production history of the participating dairy operation; and</text> </subparagraph><subparagraph id="H83760BA5671B4D1CBD439957BF0E957E"><enum>(C)</enum><text>the premium per hundredweight of milk, as specified in the applicable table under paragraph (2) or (3).</text> </subparagraph></paragraph><paragraph id="H94802A7E1F9848EA83EFEA99680ED38A"><enum>(2)</enum><header>Premium per hundredweight for first 4 million pounds of production</header><text>For the first 4,000,000 pounds of milk marketings included in the annual production history of a participating dairy operation, the premium per hundredweight corresponding to each coverage level specified in the following table is as follows:</text> <table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 2 text, even cols" table-type=""> <tgroup cols="2" grid-typeface="1.1" no-carding="1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec align="center" coldef="fig" colname="column1" colwidth="106pts" min-data-value="19" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="column2" colwidth="106pts" min-data-value="19" rowsep="0"></colspec> <thead> <row><entry align="center" colname="column1" morerows="0" namest="column1" rowsep="1">Coverage Level</entry><entry align="center" colname="column2" morerows="0" namest="column2" rowsep="1">Premium per Cwt.</entry> </row> </thead> <tbody> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$4.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.01</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$5.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.02</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$5.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.035</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$6.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.045</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$6.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.09</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$7.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.40</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$7.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.60</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$8.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.95</entry> </row> </tbody> </tgroup> </table> </paragraph><paragraph id="HC2D0F20DBF93439E9BEE158363C7C638"><enum>(3)</enum><header>Premium per hundredweight for production in excess of 4 million pounds</header><text display-inline="yes-display-inline">For milk marketings in excess of 4,000,000 pounds included in the annual production history of a participating dairy operation, the premium per hundredweight corresponding to each coverage level is as follows:</text> <table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 2 text, even cols" table-type=""> <tgroup cols="2" grid-typeface="1.1" no-carding="1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec align="center" coldef="fig" colname="column1" colwidth="106pts" min-data-value="19" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="column2" colwidth="106pts" min-data-value="19" rowsep="0"></colspec> <thead> <row><entry align="center" colname="column1" morerows="0" namest="column1" rowsep="1">Coverage Level</entry><entry align="center" colname="column2" morerows="0" namest="column2" rowsep="1">Premium per Cwt.</entry> </row> </thead> <tbody> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$4.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.02</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$5.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.04</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$5.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.10</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$6.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.15</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$6.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.29</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$7.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.62</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$7.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.83</entry> </row> <row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$8.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$1.06</entry> </row> </tbody> </tgroup> </table> </paragraph><paragraph id="HFFBFC232C93B48F4960D87629CA82D99"><enum>(4)</enum><header>Time for payment</header><text display-inline="yes-display-inline">In promulgating the rules to initiate the production margin protection program, the Secretary shall provide more than 1 method by which a participating dairy operation that purchases supplemental production margin protection for a calendar year may pay the premium under this subsection for that year in any manner that maximizes participating dairy operation payment flexibility and program integrity.</text> </paragraph></subsection><subsection id="HC70599CBAACB465C9CA6F64D7A855DDF"><enum>(e)</enum><header>Premium obligations</header> <paragraph commented="no" id="HFF1CE6CDADDE4933A954DD5737E06666"><enum>(1)</enum><header>Pro-ration of premium for new dairy operations</header><text display-inline="yes-display-inline">A participating dairy operation described in section 1412(c)(2) that purchases supplemental production margin protection for a calendar year after the start of the calendar year shall pay a pro-rated premium for that calendar year based on the portion of the calendar year for which the participating dairy operation purchases the coverage.</text> </paragraph><paragraph id="ide4fb6244f12245858d1258ecee1e6663"><enum>(2)</enum><header>Legal obligation</header><text>A participating dairy operation that purchases supplemental production margin protection for a calendar year shall be legally obligated to pay the applicable premium for that calendar year, except that the Secretary may waive that obligation, under terms and conditions determined by the Secretary, for 1 or more producers in any participating dairy operation in the case of death, retirement, permanent dissolution of a participating dairy operation, or other circumstances as the Secretary considers appropriate to ensure the integrity of the program.</text> </paragraph></subsection><subsection id="HB7DF250F944C49D1869C0AD8FD2E3016"><enum>(f)</enum><header>Supplemental payment threshold</header><text display-inline="yes-display-inline">A participating dairy operation with supplemental production margin protection shall receive a supplemental production margin protection payment whenever the average actual dairy production margin for a consecutive 2-month period is less than the coverage level threshold selected by the participating dairy operation under subsection (b).</text> </subsection><subsection id="H9665AF3963F0472E9FF66412764444BA"><enum>(g)</enum><header>Supplemental production margin protection payments</header> <paragraph id="H153FA84BCE3C4DBDB803B28367251D94"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The supplemental production margin protection payment for a participating dairy operation is in addition to the basic production margin protection payment.</text> </paragraph><paragraph display-inline="no-display-inline" id="H13B471058A6943E38A8F8849C38C99BE"><enum>(2)</enum><header>Amount of payment</header><text display-inline="yes-display-inline">The supplemental production margin protection payment for the participating dairy operation shall be determined as follows:</text> <subparagraph id="H62347AEDF1444EB9BA746BCD440907E7"><enum>(A)</enum><text display-inline="yes-display-inline">The Secretary shall calculate the difference between the coverage level threshold selected by the participating dairy operation under subsection (b) and the greater of—</text> <clause id="H262C490214694314AB5075D536B5E694"><enum>(i)</enum><text>the average actual dairy production margin for the consecutive 2-month period; or</text> </clause><clause id="H33C43B7ED4E440D0B5E7FF88F2ED0827"><enum>(ii)</enum><text>$4.00.</text> </clause></subparagraph><subparagraph id="H5F5E6642519242D69FCB4FB6903A6D81"><enum>(B)</enum><text display-inline="yes-display-inline">The amount determined under subparagraph (A) shall be multiplied by the percentage selected by the participating dairy operation under subsection (c) and by the lesser of the following:</text> <clause id="H98BE4D5383A6470AA5D43D9A3FD3C578"><enum>(i)</enum><text display-inline="yes-display-inline">The annual production history of the participating dairy operation, divided by 6.</text> </clause><clause id="H401B62E69B864D3F9477EB836E85138C"><enum>(ii)</enum><text display-inline="yes-display-inline">The actual amount of milk marketed by the participating dairy operation during the consecutive 2-month period.</text> </clause></subparagraph></paragraph></subsection></section><section id="H96DCFDA445794056940794CD71857D83"><enum>1416.</enum><header>Effect of failure to pay administration fees or premiums</header> <subsection id="H40DCBFA8A5E44EC3B029C407FD5AADD6"><enum>(a)</enum><header>Loss of benefits</header><text display-inline="yes-display-inline">A participating dairy operation that fails to pay the required administration fee under section 1412 or is in arrears on premium payments for supplemental production margin protection under section 1415—</text> <paragraph id="HFE64E08ED81040039AB4515B22BBA690"><enum>(1)</enum><text display-inline="yes-display-inline">remains legally obligated to pay the administration fee or premiums, as the case may be; and</text> </paragraph><paragraph id="HB35ABB841F6640A2A625D6EF789DB714"><enum>(2)</enum><text display-inline="yes-display-inline">may not receive basic production margin protection payments or supplemental production margin protection payments until the fees or premiums are fully paid.</text> </paragraph></subsection><subsection id="HC958D7C69F2D4AC28EBD21629C1B2624"><enum>(b)</enum><header>Enforcement</header><text display-inline="yes-display-inline">The Secretary may take such action as necessary to collect administration fees and premium payments for supplemental production margin protection.</text> </subsection></section></subpart><subpart id="H0789D232C6CC4C298D5FA53B92A20F42"><enum>B</enum><header>Dairy market stabilization program</header> <section id="HE20C0D70D3B440DFBB72B4AD2568AC9C"><enum>1431.</enum><header>Establishment of dairy market stabilization program</header> <subsection id="H8BFDAF49407C496CA25EA5C748C43DFA"><enum>(a)</enum><header>Program required; purpose</header><text display-inline="yes-display-inline">Effective not later than 120 days after the effective date of this subtitle, the Secretary shall establish and administer a dairy market stabilization program applicable to participating dairy operations for the purpose of assisting in balancing the supply of milk with demand when participating dairy operations are experiencing low or negative operating margins.</text> </subsection><subsection id="H91644D97CF554AE28C20466D5111BAD4"><enum>(b)</enum><header>Election of stabilization program base calculation method</header> <paragraph id="H6ECEBAE624C3462CA82A1F6DFE9DAC2F"><enum>(1)</enum><header>Election</header><text display-inline="yes-display-inline">When a dairy operation signs up under section 1412 to participate in the production margin protection program, the dairy operation shall inform the Secretary of the method by which the stabilization program base for the participating dairy operation will be calculated under paragraph (3).</text> </paragraph><paragraph id="HCF001A98F9564EBAA36653F91D352E1F"><enum>(2)</enum><header>Change in calculation method</header><text>A participating dairy operation may change the stabilization program base calculation method to be used for a calendar year by notifying the Secretary of the change not later than a date determined by the Secretary.</text> </paragraph><paragraph id="H09C46E258D4E4289B8C3021E1B98E915"><enum>(3)</enum><header>Calculation methods</header><text>A participating dairy operation may elect either of the following methods for calculation of the stabilization program base for the participating dairy operation:</text> <subparagraph id="H5EACD4A30DE34CDCA6638C8AD8B8AC9B"><enum>(A)</enum><text>The volume of the average monthly milk marketings of the participating dairy operation for the 3 months immediately preceding the announcement by the Secretary that the stabilization program will become effective.</text> </subparagraph><subparagraph id="H184EE3350E9B4D72A57D5012C0E9EC1B"><enum>(B)</enum><text display-inline="yes-display-inline">The volume of the monthly milk marketings of the participating dairy operation for the same month in the preceding year as the month for which the Secretary has announced the stabilization program will become effective.</text> </subparagraph></paragraph></subsection></section><section id="H2C24AD1A86CF43F7AC1A364390DCFF4B"><enum>1432.</enum><header>Threshold for implementation and reduction in dairy payments</header> <subsection id="H45ED189423E7490C80A07DA169C20C7A"><enum>(a)</enum><header>When stabilization program required</header><text display-inline="yes-display-inline">Except as provided in subsection (b), the Secretary shall announce that the stabilization program is in effect and order reduced payments by handlers to participating dairy operations that exceed the applicable percentage of the participating dairy operation’s stabilization program base whenever—</text> <paragraph id="HE28BE010496747C6BC879BE2329CD41A"><enum>(1)</enum><text display-inline="yes-display-inline">the actual dairy production margin has been $6.00 or less per hundredweight of milk for each of the immediately preceding 2 months; or</text> </paragraph><paragraph id="H17F95BE2E4304B96A732795679691749"><enum>(2)</enum><text display-inline="yes-display-inline">the actual dairy production margin has been $4.00 or less per hundredweight of milk for the immediately preceding month.</text> </paragraph></subsection><subsection id="HAC2EB34925A440F78499BA3755375B17"><enum>(b)</enum><header>Exception</header><text display-inline="yes-display-inline">If any of the conditions described in section 1436(b) have been met during the 2-month period immediately preceding the month in which the announcement under subsection (a) would otherwise be made by the Secretary in the absence of this exception, the Secretary shall—</text> <paragraph id="idC9C5674A05EB4274A1688C0946D63EFF"><enum>(1)</enum><text display-inline="yes-display-inline">suspend the stabilization program;</text> </paragraph><paragraph id="idD11FAE43B3F746498D44864888D3F49A"><enum>(2)</enum><text display-inline="yes-display-inline">refrain from making the announcement under subsection (a) to implement order the stabilization payment; or</text> </paragraph><paragraph id="id85B86B510B7F4F2F9E985A8DC0978D3B"><enum>(3)</enum><text display-inline="yes-display-inline">order reduced payments.</text> </paragraph></subsection><subsection id="HC960CD1AAD0945328C4352F1EA6B1E65"><enum>(c)</enum><header>Effective date for implementation of payment reductions</header><text>Reductions in dairy payments shall commence beginning on the first day of the month immediately following the date of the announcement by the Secretary under subsection (a).</text> </subsection></section><section id="HC603B5783B4E4ADDB48914CA067F97ED"><enum>1433.</enum><header>Milk marketings information</header> <subsection id="H68B6057AAD34437588D5DE805F58F899"><enum>(a)</enum><header>Collection of milk marketing data</header><text display-inline="yes-display-inline">The Secretary shall establish, by regulation, a process to collect from participating dairy operations and handlers such information that the Secretary considers necessary for each month during which the stabilization program is in effect.</text> </subsection><subsection id="H8567614A7E7B4F18AE5AFB1DAD15BD7D"><enum>(b)</enum><header>Reduce regulatory burden</header><text>When implementing the process under subsection (a), the Secretary shall minimize the regulatory burden on participating dairy operations and handlers.</text> </subsection></section><section id="HDDEB3ACAC249445485767BDB1F068B67"><enum>1434.</enum><header>Calculation and collection of reduced dairy operation payments</header> <subsection id="HB142A248EA1440BF8AA8246241CE3FF7"><enum>(a)</enum><header>Reduced participating dairy operation payments required</header><text display-inline="yes-display-inline">During any month in which payment reductions are in effect under the stabilization program, each handler shall reduce payments to each participating dairy operation from whom the handler receives milk.</text> </subsection><subsection id="H162226CE40454A4590074D96ABE1FB39"><enum>(b)</enum><header>Reductions based on actual dairy production margin</header> <paragraph id="H308E99869DDF49FCA7D261EEA5C33AC4"><enum>(1)</enum><header>Reduction requirement 1</header><text display-inline="yes-display-inline">If the Secretary determines that the average actual dairy production margin has been less than $6.00 but greater than $5.00 per hundredweight of milk for 2 consecutive months, the handler shall make payments to a participating dairy operation for a month based on the greater of the following:</text> <subparagraph id="H9D7D55D3E1264D9AA106384754FC5345"><enum>(A)</enum><text>98 percent of the stabilization program base of the participating dairy operation.</text> </subparagraph><subparagraph id="HED898391C87B42FBBDAEDE88DD445ECD"><enum>(B)</enum><text>94 percent of the marketings of milk for the month by the participating dairy operation.</text> </subparagraph></paragraph><paragraph id="HDBC914ED03574B3380181DE156866839"><enum>(2)</enum><header>Reduction requirement 2</header><text display-inline="yes-display-inline">If the Secretary determines that the average actual dairy production margin has been less than $5.00 but greater than $4.00 for 2 consecutive months, the handler shall make payments to a participating dairy operation for a month based on the greater of the following:</text> <subparagraph id="HBBBD0394833A46129A21AA35BC414391"><enum>(A)</enum><text display-inline="yes-display-inline">97 percent of the stabilization program base of the participating dairy operation.</text> </subparagraph><subparagraph id="H1D4A72E78FFD4011A13EA79F71B8DF26"><enum>(B)</enum><text display-inline="yes-display-inline">93 percent of the marketings of milk for the month by the participating dairy operation.</text> </subparagraph></paragraph><paragraph id="H0E86D2AFEC1F4666A0ED1E696B6588A4"><enum>(3)</enum><header>Reduction requirement 3</header><text display-inline="yes-display-inline">If the Secretary determines that the average actual dairy production margin has been $4.00 or less for any 1 month, the handler shall make payments to a participating dairy operation for a month based on the greater of the following:</text> <subparagraph id="H365FFC860C2C4A018070EF194CD57ACD"><enum>(A)</enum><text display-inline="yes-display-inline">96 percent of the stabilization program base of the participating dairy operation.</text> </subparagraph><subparagraph id="HF3CB62A583084AFF9B44150A11B3DEDF"><enum>(B)</enum><text display-inline="yes-display-inline">92 percent of the marketings of milk for the month by the participating dairy operation.</text> </subparagraph></paragraph></subsection><subsection id="H26DDF7E66D4C4CFB9E8EFB940BB10E8B"><enum>(c)</enum><header>Continuation of reductions</header><text>The largest level of payment reduction required under paragraph (1), (2), or (3) of subsection (b) shall be continued for each month until the Secretary suspends the stabilization program and terminates payment reductions in accordance with section 1436.</text> </subsection><subsection id="H6BEDEFC74ECB44EC900BCB192D91E180"><enum>(d)</enum><header>Payment reduction exception</header><text display-inline="yes-display-inline">Notwithstanding any preceding subsection of this section, a handler shall make no payment reductions for a participating dairy operation for a month if the participating dairy operation’s milk marketings for the month are equal to or less than the percentage of the stabilization program base applicable to the participating dairy operation under paragraph (1), (2), or (3) of subsection (b).</text> </subsection></section><section id="HB2AF23CED26F4D51A9AFA02E3075F4F6"><enum>1435.</enum><header>Remitting funds to the Secretary and use of funds</header> <subsection id="HE5F6A90F956D4573AB60AC02C02E1AB0"><enum>(a)</enum><header>Remitting funds</header><text display-inline="yes-display-inline">As soon as practicable after the end of each month during which payment reductions are in effect under the stabilization program, each handler shall remit to the Secretary an amount equal to the amount by which payments to participating dairy operations are reduced by the handler under section 1434.</text> </subsection><subsection id="H89C9C698AE264C9C8F58930095013235"><enum>(b)</enum><header>Deposit of remitted funds</header><text display-inline="yes-display-inline">All funds received under subsection (a) shall be available to the Secretary, without further appropriation and until expended, for use or transfer as provided in subsection (c).</text> </subsection><subsection id="H70EDDBE56F7646ED9F74CC1D891E1766"><enum>(c)</enum><header>Use of funds</header> <paragraph id="H3C26857868AD4BD3A922F02EC3560AD4"><enum>(1)</enum><header>Availability for certain commodity donations</header><text display-inline="yes-display-inline">Not later than 90 days after the funds described in subsection (a) are due as determined by the Secretary, the Secretary shall obligate the funds for the purpose of—</text> <subparagraph id="HC51AEA8FB3BF4D06AEC15B178D4ECC05"><enum>(A)</enum><text display-inline="yes-display-inline">purchasing dairy products for donation to food banks and other programs that the Secretary determines appropriate; and</text> </subparagraph><subparagraph id="H50CDE5DD761A4A7CA42159470F49A2F2"><enum>(B)</enum><text>expanding consumption and building demand for dairy products.</text> </subparagraph></paragraph><paragraph id="H9E70683812A541F497D605CCE344873F"><enum>(2)</enum><header>No duplication of effort</header><text display-inline="yes-display-inline">The Secretary shall ensure that expenditures under paragraph (1) are compatible with, and do not duplicate, programs supported by the dairy research and promotion activities conducted under the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4501 et seq.).</text> </paragraph><paragraph id="H0B98B383CFC04439B9BFFE9BB5D1A6A0"><enum>(3)</enum><header>Accounting</header><text>The Secretary shall keep an accurate account of all funds expended under paragraph (1).</text> </paragraph></subsection><subsection id="H30B1403E52094638941C6D25402FB486"><enum>(d)</enum><header>Annual Report</header><text>Not later than December 31 of each year that the stabilization program is in effect, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that provides an accurate accounting of—</text> <paragraph id="H443B5751BFFD45F6B2575DA982F1523A"><enum>(1)</enum><text>the funds received by the Secretary during the preceding fiscal year under subsection (a);</text> </paragraph><paragraph id="H91D16367AB024535886117E01081A897"><enum>(2)</enum><text>all expenditures made by the Secretary under subsection (b) during the preceding fiscal year; and</text> </paragraph><paragraph id="idDCA8272756C3460BB38A051C45203E91"><enum>(3)</enum><text>the impact of the stabilization program on dairy markets.</text> </paragraph></subsection><subsection id="H09324B689A1F46A2BF0EBC20DCB88021"><enum>(e)</enum><header>Enforcement</header><text display-inline="yes-display-inline">If a participating dairy operation or handler fails to remit or collect the amounts by which payments to participating dairy operations are reduced under section 1434, the participating dairy operation or handler responsible for the failure shall be liable to the Secretary for the amount that should have been remitted or collected, plus interest. In addition to the enforcement authorities available under section 1437, the Secretary may enforce this subsection in the courts of the United States.</text> </subsection></section><section display-inline="no-display-inline" id="HE17830DE218F49CD9D17509724B79613" section-type="subsequent-section"><enum>1436.</enum><header>Suspension of reduced payment requirement</header> <subsection id="H48B21112599D42019D79D531033E5182"><enum>(a)</enum><header>Determination of prices</header><text display-inline="yes-display-inline">For purposes of this section:</text> <paragraph id="H9A845B5D57FA4899AD285A2B8863E137"><enum>(1)</enum><text display-inline="yes-display-inline">The price in the United States for cheddar cheese and nonfat dry milk shall be determined by the Secretary.</text> </paragraph><paragraph id="HEB47566AD3B04B1EA631119C542FECE8"><enum>(2)</enum><text>The world price of cheddar cheese and skim milk powder shall be determined by the Secretary.</text> </paragraph></subsection><subsection id="H7E94BA7B78EF4FCE96353122B1736C1A"><enum>(b)</enum><header>Suspension thresholds</header><text display-inline="yes-display-inline">The stabilization program shall be suspended or the Secretary shall refrain from making the announcement under section 1432(a) if the Secretary determines that—</text> <paragraph id="H010B555C99824EF8BFCF1AACC7892FFD"><enum>(1)</enum><text display-inline="yes-display-inline">the actual dairy production margin is greater than $6.00 per hundredweight of milk for 2 consecutive months;</text> </paragraph><paragraph id="HB7645E502A984D6CB39CAC6184C34FDD"><enum>(2)</enum><text display-inline="yes-display-inline">the actual dairy production margin is equal to or less than $6.00 (but greater than $5.00) for 2 consecutive months, and during the same 2 consecutive months—</text> <subparagraph id="H0037DB576750479B9AFAA620FF0C62F7"><enum>(A)</enum><text>the price in the United States for cheddar cheese is equal to or greater than the world price of cheddar cheese; or</text> </subparagraph><subparagraph id="H109380F666D04E80A1AAFD046FD31892"><enum>(B)</enum><text>the price in the United States for nonfat dry milk is equal to or greater than the world price of skim milk powder;</text> </subparagraph></paragraph><paragraph id="H4A66FC6B72A0481597C7F51EA846FE0D"><enum>(3)</enum><text>the actual dairy production margin is equal to or less than $5.00 (but greater than $4.00) for 2 consecutive months, and during the same 2 consecutive months—</text> <subparagraph id="HC8B5B210795C40409185713F7A1ABB8C"><enum>(A)</enum><text>the price in the United States for cheddar cheese is more than 5 percent above the world price of cheddar cheese; or</text> </subparagraph><subparagraph id="HDE1D9B9C41BE41C99BE9ACF3DFEB1701"><enum>(B)</enum><text>the price in the United States for nonfat dry milk is more than 5 percent above the world price of skim milk powder; or</text> </subparagraph></paragraph><paragraph id="HBA61D37807E844D6B4C6EE590D63F3E3"><enum>(4)</enum><text>the actual dairy production margin is equal to or less than $4.00 for 2 consecutive months, and during the same 2 consecutive months—</text> <subparagraph id="HB3312D8CD80C4F26A9463A08A59C92C6"><enum>(A)</enum><text>the price in the United States for cheddar cheese is more than 7 percent above the world price of cheddar cheese; or</text> </subparagraph><subparagraph id="H99E4C89B7EDA473F9C1DD30B2549B469"><enum>(B)</enum><text>the price in the United States for nonfat dry milk is more than 7 percent above the world price of skim milk powder.</text> </subparagraph></paragraph></subsection><subsection id="HBBB1708C9CCA47079C676F306F93D0B1"><enum>(c)</enum><header>Implementation by handlers</header><text display-inline="yes-display-inline">Effective on the day after the date of the announcement by the Secretary under subsection (b) of the suspension of the stabilization program, the handler shall cease reducing payments to participating dairy operations under the stabilization program.</text> </subsection><subsection id="H0787B91767284D10A371A7C058524987"><enum>(d)</enum><header>Condition on resumption of stabilization program</header><text display-inline="yes-display-inline">Upon the announcement by the Secretary under subsection (b) that the stabilization program has been suspended, the stabilization program may not be implemented again until, at the earliest—</text> <paragraph id="H8FB5CC5F7B8E40EEA734D8ECCA67CB94"><enum>(1)</enum><text>2 months have passed, beginning on the first day of the month immediately following the announcement by the Secretary; and</text> </paragraph><paragraph id="H6AEF85DF638C44A3B890575085BB826A"><enum>(2)</enum><text>the conditions of section 1432(a) are again met.</text> </paragraph></subsection></section><section id="H5A605428720042F99114310A5DC27158"><enum>1437.</enum><header>Enforcement</header> <subsection id="H60E4E7D1CBCD4E79A95EAEE93AD1AE0F"><enum>(a)</enum><header>Unlawful act</header><text display-inline="yes-display-inline">It shall be unlawful and a violation of the this subpart for any person subject to the stabilization program to willfully fail or refuse to provide, or delay the timely reporting of, accurate information and remittance of funds to the Secretary in accordance with this subpart.</text> </subsection><subsection id="H200A5CAE47EA486DB765AD336F68316F"><enum>(b)</enum><header>Order</header><text>After providing notice and opportunity for a hearing to an affected person, the Secretary may issue an order against any person to cease and desist from continuing any violation of this subpart.</text> </subsection><subsection id="H365A60D052A449778D276832396EFABE"><enum>(c)</enum><header>Appeal</header><text>An order of the Secretary under subsection (b) shall be final and conclusive unless an affected person files an appeal of the order of the Secretary in United States district court not later than 30 days after the date of the issuance of the order. A finding of the Secretary in the order shall be set aside only if the finding is not supported by substantial evidence.</text> </subsection><subsection id="H5AE83A5C847C488896E6934D98A9C8A2"><enum>(d)</enum><header>Noncompliance with order</header><text>If a person subject to this subpart fails to obey an order issued under subsection (b) after the order has become final and unappealable, or after the appropriate United States district court has entered a final judgment in favor of the Secretary, the United States may apply to the appropriate United States district court for enforcement of the order. If the court determines that the order was lawfully made and duly served and that the person violated the order, the court shall enforce the order.</text> </subsection></section><section id="HB0386A6B2C7E49D6894EF137AB9CBAF6"><enum>1438.</enum><header>Audit requirements</header> <subsection id="H56AAAB9DF10E4570B1B72EF3899314E2"><enum>(a)</enum><header>Audits of dairy operation and handler compliance</header> <paragraph id="H79FDA24258FA4175A3B596F51E8F5BA4"><enum>(1)</enum><header>Audits authorized</header><text display-inline="yes-display-inline">If determined by the Secretary to be necessary to ensure compliance by participating dairy operations and handlers with the stabilization program, the Secretary may conduct periodic audits of participating dairy operations and handlers.</text> </paragraph><paragraph id="H22DA4016E64C46728C38FCC8D17DEDE1"><enum>(2)</enum><header>Sample of dairy operations</header><text>Any audit conducted under this subsection shall include, at a minimum, investigation of a statistically valid and random sample of participating dairy operations.</text> </paragraph></subsection><subsection id="H377D9DAD1CE34407BC93900C7CBB295B"><enum>(b)</enum><header>Submission of results</header><text display-inline="yes-display-inline">The Secretary shall submit the results of any audit conducted under subsection (a) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate and include such recommendations as the Secretary considers appropriate regarding the stabilization program.</text> </subsection></section><section id="id2FF80B700D7B4189BFE6BCF9CFB70D66"><enum>1439.</enum><header>Study; report</header> <subsection id="id137ED8C2068F4040A67BDC5688EC8A77"><enum>(a)</enum><header>In general</header><text>The Secretary shall direct the Office of the Chief Economist to conduct a study of the impacts of the program established under section 1431(a).</text> </subsection><subsection id="id9B9BD688253E4427951D89E8BC3D0359"><enum>(b)</enum><header>Considerations</header><text>The study conducted under subsection (a) shall consider—</text> <paragraph id="idF64A85298108409288689B88B2CBF1CF"><enum>(1)</enum><text>the economic impact of the program throughout the dairy product value chain, including the impact on producers, processors, domestic customers, export customers, actual market growth and potential market growth, farms of different sizes, and different regions and States; and</text> </paragraph><paragraph id="id3DDF4B9B10094E879524B444BD444C5D"><enum>(2)</enum><text>the impact of the program on the competitiveness of the United States dairy industry in international markets.</text> </paragraph></subsection><subsection id="id5BFF7AD96D074EB18180547E81241777"><enum>(c)</enum><header>Report</header><text>Not later than December 1, 2016, the Office of the Chief Economist shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study conducted under subsection (a).</text> </subsection></section></subpart><subpart id="H6FAB801B32B0468285381942F7BB1916"><enum>C</enum><header>Administration</header> <section id="HCEA8B18D26724AA19EC344BA2BE2E6D5"><enum>1451.</enum><header>Duration</header><text display-inline="no-display-inline">The production margin protection program and the stabilization program shall end on December 31, 2017.</text> </section><section id="id1508FE6263A44DDEB0B7C1BA6C2CA654"><enum>1452.</enum><header>Administration and enforcement</header> <subsection id="idc60128e0efea41a4a62f34013c83558a"><enum>(a)</enum><header>In general</header><text>The Secretary shall promulgate regulations to address administrative and enforcement issues involved in carrying out the production margin protection, supplemental production margin protection, and market stabilization programs.</text> </subsection><subsection id="id02f483a9c4bf46b6896bf67fc08c2915"><enum>(b)</enum><header>Reconstitution and eligibility issues</header> <paragraph id="idabc8db4ad546434c8837537b014b6624"><enum>(1)</enum><header>Reconstitution</header><text>Using authorities under section 1001(f) and 1001B of the Food Security Act of 1985 (7 U.S.C. 1308(f), 1308–2), the Secretary shall promulgate regulations to prohibit a dairy producer from reconstituting a dairy operation for the sole purpose of the dairy producer—</text> <subparagraph id="ide083cbd4594f4ab39918bc28491f9d8a"><enum>(A)</enum><text>receiving basic margin protection;</text> </subparagraph><subparagraph id="id979ee50c145a458c90666be791cbd10c"><enum>(B)</enum><text>purchasing supplemental margin protection; or</text> </subparagraph><subparagraph id="id3d6e6373e46d4fa2b24ab9bf7875a989"><enum>(C)</enum><text>avoiding participation in the market stabilization program.</text> </subparagraph></paragraph><paragraph id="idffec7857530f40caa4cc96fd75c8486b"><enum>(2)</enum><header>Eligibility issues</header><text>Using authorities under section 1001(f) and 1001B of the Food Security Act of 1985 (7 U.S.C. 1308(f), 1308–2), the Secretary shall promulgate regulations—</text> <subparagraph id="idf5e76e5512df4e669238a390fe91f227"><enum>(A)</enum><text>to prohibit a scheme or device;</text> </subparagraph><subparagraph id="id9c8b7dba672247f79f7fe76fe325f96c"><enum>(B)</enum><text>to provide for equitable relief; and</text> </subparagraph><subparagraph id="id5c8e8f536da9440d8c6816102652499c"><enum>(C)</enum><text>to provide for other issues affecting eligibility and liability issues.</text> </subparagraph></paragraph><paragraph id="idbd7a2647f2f34e4f9deda6e525c297d3"><enum>(3)</enum><header>Administrative appeals</header><text>Using authorities under section 1001(h) of the Food Security Act of 1985 (7 U.S.C. 1308(h)) and subtitle H of the Department of Agriculture Reorganization Act (7 U.S.C. 6991 et seq.), the Secretary shall promulgate regulations to provide for administrative appeals of decisions of the Secretary that are adverse to participants of the programs described in subsection (a).</text> </paragraph></subsection></section></subpart></part><part id="HDB79904D87FA40FC8CD0D15913C90EDF"><enum>II</enum><header>Dairy market transparency</header> <section id="HE3803DF9703A499F94BF9BC01CA3901F"><enum>1461.</enum><header>Dairy product mandatory reporting</header> <subsection id="HE06A0527B841440DBB7F4911C6387748"><enum>(a)</enum><header>Definitions</header><text>Section 272(1)(A) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637a(1)(A)) is amended by inserting <quote>, or any other products that may significantly aid price discovery in the dairy markets, as determined by the Secretary</quote> after <quote>of 1937</quote>.</text> </subsection><subsection id="HCD7489943CBC41B2B15C108DDDDBD169"><enum>(b)</enum><header>Mandatory reporting for dairy products</header><text>Section 273(b) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b(b)) is amended—</text> <paragraph id="H828BF1B77EC94218BFFF24F50BF5B4E0"><enum>(1)</enum><text>by striking paragraph (1) and inserting the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H7844C358F21741298381C1D9DF1B25E3" style="OLC"> <paragraph id="H98147A1D97C4436AA07298C688039422"><enum>(1)</enum><header>In general</header><text>In establishing the program, the Secretary shall only—</text> <subparagraph id="H241BBF0695244323B26B28989FB4D97B"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="H7C1F78FB77484B1DA29762636F1EEB8D"><enum>(i)</enum><text display-inline="yes-display-inline">subject to the conditions described in paragraph (2), require each manufacturer to report to the Secretary, more frequently than once per month, information concerning the price, quantity, and moisture content of dairy products sold by the manufacturer and any other product characteristics that may significantly aid price discovery in the dairy markets, as determined by the Secretary; and</text> </clause><clause id="H62FDDBFBD46040DE95C022B4F25AEAF5" indent="up1"><enum>(ii)</enum><text>modify the format used to provide the information on the day before the date of enactment of this subtitle to ensure that the information can be readily understood by market participants; and</text> </clause></subparagraph><subparagraph id="H3E43BFCD0B5E4ABB91CC7ED87929BE0D"><enum>(B)</enum><text>require each manufacturer and other person storing dairy products (including dairy products in cold storage) to report to the Secretary, more frequently than once per month, information on the quantity of dairy products stored.</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="H5B7126C0179549D497DD728CA8A17B03"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by inserting <quote>or those that may significantly aid price discovery in the dairy markets</quote> after <quote>Federal milk marketing order</quote> each place it appears in subparagraphs (A), (B), and (C).</text> </paragraph></subsection></section><section id="id06640fcb70da43dcb17fd11691b55bd7"><enum>1462.</enum><header>Federal milk marketing order information</header> <subsection id="id2c0865ce8f66474a83048b48d8c90330"><enum>(a)</enum><header>Information clearinghouse</header> <paragraph id="id0F8371A3D3DB403EB2BA69C868FDC4A5"><enum>(1)</enum><header>In general</header><text>The Secretary shall, on behalf of each milk marketing order issued under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, establish an information clearinghouse for the purposes of educating the public about the Federal milk marketing order system and any marketing order referenda, including proposal information and timelines that shall be kept current and updated as information becomes available.</text> </paragraph><paragraph id="id18C3761363574942BAD41448268458FA"><enum>(2)</enum><header>Requirements</header><text>Information under paragraph (1) shall include—</text> <subparagraph id="id22bd547d3dad4085bf62e65fbf7f0430"><enum>(A)</enum><text>information on procedures by which cooperatives vote;</text> </subparagraph><subparagraph id="id6e9da20e98eb4feabbfe75a05b49a8e9"><enum>(B)</enum><text>if applicable, information on the manner by which producers may cast an individual ballot;</text> </subparagraph><subparagraph id="idab9a03e374504782b45aa3f00777f009"><enum>(C)</enum><text>in applicable, instructions on the manner in which to vote online;</text> </subparagraph><subparagraph id="id5786ab07d400402bbab421211df09e36"><enum>(D)</enum><text>due dates for each specific referendum;</text> </subparagraph><subparagraph id="id812a7b8100c949a996d57a8d522aa408"><enum>(E)</enum><text>the text of each referendum question under consideration;</text> </subparagraph><subparagraph id="idab92afbf7d594a8584c3265b5b26c925"><enum>(F)</enum><text>a description in plain language of the question;</text> </subparagraph><subparagraph id="id3bfa104fec1b4de6a48815a2284fafbd"><enum>(G)</enum><text>any relevant background information to the question; and</text> </subparagraph><subparagraph id="id21d6b3972a5e4e40a3cfe277df30cc6e"><enum>(H)</enum><text>any other information that increases Federal milk marketing order transparency.</text> </subparagraph></paragraph></subsection><subsection id="id3aa8e24f1b9946fe9b3c1d8757d0b929"><enum>(b)</enum><header>Notification list for upcoming referendum</header><text>Each Federal milk marketing order shall—</text> <paragraph id="id0c3c2779b3424b65b19b67a48ac4b4d2"><enum>(1)</enum><text>make available the information described in subsection (b) through an Internet site; and</text> </paragraph><paragraph id="id5894263cb14e4254b69712b265e4cdb3"><enum>(2)</enum><text>publicize the information in major agriculture and dairy-specific publications on upcoming referenda.</text> </paragraph></subsection><subsection id="ide922be568759420798d0276ba99e1f29"><enum>(c)</enum><header>Study</header> <paragraph id="idECD93CD6CA224B779F4468DEE177E2EA"><enum>(1)</enum><header>In general</header><text>The Secretary shall conduct a study of the feasibility of establishing 2 classes of milk, a fluid class and a manufacturing class, to replace the 4–class system in effect on the date of enactment of this Act in administering Federal milk marketing orders.</text> </paragraph><paragraph id="id2886641D24014731BE257A38463CBFFD"><enum>(2)</enum><header>Federal Milk Market Order Review Commission</header><text>The Secretary may elect to use the Federal Milk Market Order Review Commission established under section 1509(a) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1726), or documents of the Commission, to conduct all or part of the study.</text> </paragraph><paragraph id="id626D2738B9334065B8B9D1B41FB9E08A"><enum>(3)</enum><header>Report</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study required under this subsection, including any recommendations.</text> </paragraph></subsection></section></part><part id="H11F183B6C5824E82886D9CEFBAA0AAA9"><enum>III</enum><header>Repeal or reauthorization of other dairy-related provisions</header> <section id="H3FB4F632206C474196263BB66B951075"><enum>1471.</enum><header>Repeal of dairy product price support and milk income loss contract programs</header> <subsection id="HBF0DDF18B20E4F8DBBA6F3029FC325D4"><enum>(a)</enum><header>Repeal of dairy product price support program</header><text>Section 1501 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8771) is repealed.</text> </subsection><subsection id="H6C0A2EA2A58A47159F6AEB783A56F9EC"><enum>(b)</enum><header>Repeal of milk income loss contract program</header> <paragraph id="id450325B434E64765B1A7069D0242E3C8"><enum>(1)</enum><header>Payments under milk income loss contract program</header><text>Section 1506(c)(3) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773(c)(3)) is amended—</text> <subparagraph id="id9F4005DEB96D4ED48430406DB3A71505"><enum>(A)</enum><text>in subparagraph (A), by inserting <quote>and</quote> after the semicolon;</text> </subparagraph><subparagraph id="id0BF7777AD7C740F48CE68C35DCE0820C"><enum>(B)</enum><text>in subparagraph (B), by striking <quote>August 31, 2012, 45 percent; and</quote> and inserting <quote>June 30, 2013, 45 percent.</quote>; and</text> </subparagraph><subparagraph id="idEF6A0A54974341E683CA26190E6C6C64"><enum>(C)</enum><text>by striking subparagraph (C).</text> </subparagraph></paragraph><paragraph id="id97F7B9BA6E5F45DD8948EC8629A84191"><enum>(2)</enum><header>Extension</header><text>Section 1506(h)(1) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773(h)(1)) is amended by striking <quote>September 30, 2012</quote> and inserting <quote>June 30, 2013</quote>.</text> </paragraph><paragraph id="id0297AC16E0EF45959E2EFC1A6EAE4246"><enum>(3)</enum><header>Repeal</header><text>Effective July 1, 2013, section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is repealed.</text> </paragraph></subsection></section><section id="H8157CBF5552140A393CE8796D1CABFE4" section-type="subsequent-section"><enum>1472.</enum><header>Repeal of dairy export incentive program</header> <subsection id="H55AD7771A4204905BE5FEF6F71E3CBB7"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 153 of the Food Security Act of 1985 (15 U.S.C. 713a–14) is repealed.</text> </subsection><subsection id="H94BD5FF7841148F4BA6E81650C5E21C8"><enum>(b)</enum><header>Conforming amendments</header><text>Section 902(2) of the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7201(2)) is amended—</text> <paragraph id="H7479B69375F040818B2B1B9C4AB6B38D"><enum>(1)</enum><text>by striking subparagraph (D); and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA87C38B3E17B4A7EB69C66E506F84C52"><enum>(2)</enum><text>by redesignating subparagraphs (E) and (F) as subparagraphs (D) and (E), respectively.</text> </paragraph></subsection></section><section id="H35012B906A234DDAAF0B3E267966BD15"><enum>1473.</enum><header>Extension of dairy forward pricing program</header><text display-inline="no-display-inline">Section 1502(e) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8772(e)) is amended—</text> <paragraph id="H21B7007DDC0748B1BCCC6521A614ACF1"><enum>(1)</enum><text>in paragraph (1), by striking <quote>2012</quote> and inserting <quote>2017</quote>; and</text> </paragraph><paragraph id="H75B6FD8CEB954BB4ACAC141B59A5CCDF"><enum>(2)</enum><text>in paragraph (2), by striking <quote>2015</quote> and inserting <quote>2020</quote>.</text> </paragraph></section><section id="HEFAEA4B6EF0B4BE895524026EDFB57BF"><enum>1474.</enum><header>Extension of dairy indemnity program</header><text display-inline="no-display-inline">Section 3 of Public Law 90–484 (7 U.S.C. 450l) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="HB488CAE02A4E4A33A98C5FA5894F5783"><enum>1475.</enum><header>Extension of dairy promotion and research program</header><text display-inline="no-display-inline">Section 113(e)(2) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="H01C4C08A144A4227A9C4FE80F2945832"><enum>1476.</enum><header>Extension of Federal Milk Marketing Order Review Commission</header><text display-inline="no-display-inline">Section 1509(a) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1726) is amended by inserting <quote>or other funds</quote> after <quote>Subject to the availability of appropriations</quote>.</text> </section></part><part id="id00EE184E5FC94FD395E9B012D27073B0"><enum>IV</enum><header>Federal milk marketing order reform</header> <section id="H3080C142E478424EA0478BF60288E9B2"><enum>1481.</enum><header>Federal milk marketing orders</header> <subsection id="H4563D4C0D6164A84B15AC47C75968361"><enum>(a)</enum><header>Amendments</header><text display-inline="yes-display-inline">The Secretary shall provide an analysis on the effects of amending each Federal milk marketing order issued under section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937 (in this part referred to as a <term>milk marketing order</term>), as required by this section.</text> </subsection><subsection id="H4DA8987C3ABD4DC89453F3E37BA5493E"><enum>(b)</enum><header>Use of end-product price formulas</header><text display-inline="yes-display-inline">In carrying out subsection (a), the Secretary shall—</text> <paragraph id="id2E5045CEE06349529BB218630B7CAA18"><enum>(1)</enum><text display-inline="yes-display-inline">consider replacing the use of end-product price formulas with other pricing alternatives; and</text> </paragraph><paragraph id="idD82E10B6D1024D7BA1D0B52401072E4F"><enum>(2)</enum><text display-inline="yes-display-inline">submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the findings of the Secretary on the impact of the action considered under paragraph (1).</text> </paragraph></subsection></section></part><part id="HD8FE3B133FE34EEB9C6CE1AEC4031F2F"><enum>V</enum><header>Effective date</header> <section commented="no" display-inline="no-display-inline" id="H9B23B45C5F834F32A1B0814A3DDDB4ED" section-type="subsequent-section"><enum>1491.</enum><header>Effective date</header><text display-inline="no-display-inline">Except as otherwise provided in this subtitle, this subtitle and the amendments made by this subtitle take effect on October 1, 2012.</text> </section></part></subtitle><subtitle commented="no" id="idB4579C20A3F340D2AC382AF03D1546C4"><enum>E</enum><header>Supplemental agricultural disaster assistance programs</header> <section id="idB52CC07DACB8498E8A8FED10D789590F"><enum>1501.</enum><header>Supplemental agricultural disaster assistance programs</header> <subsection id="idc8972ce89c3b4b138506fa6470ef7988"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="idd2170819cbef4c6d88931e66f77cb0be"><enum>(1)</enum><header>Eligible producer on a farm</header> <subparagraph id="id61562c2b96f5477f8ba3229b72869d6c"><enum>(A)</enum><header>In general</header><text>The term <term>eligible producer on a farm</term> means an individual or entity described in subparagraph (B) that, as determined by the Secretary, assumes the production and market risks associated with the agricultural production of crops or livestock.</text> </subparagraph><subparagraph id="id7e994577ceec4774b69d7f81e24528eb"><enum>(B)</enum><header>Description</header><text>An individual or entity referred to in subparagraph (A) is—</text> <clause id="id54b7b408b1fb4d9794871ba1d94d51fd"><enum>(i)</enum><text>a citizen of the United States;</text> </clause><clause id="id791e19d6c25b4fc09bb76c1334dd3366"><enum>(ii)</enum><text>a resident alien;</text> </clause><clause id="ida19ae96404ea4413a1330578d3ecca05"><enum>(iii)</enum><text>a partnership of citizens of the United States; or</text> </clause><clause id="id8e3470b659be440caa42ca05b522dea2"><enum>(iv)</enum><text>a corporation, limited liability corporation, or other farm organizational structure organized under State law.</text> </clause></subparagraph></paragraph><paragraph id="id9db801c90a3d4bf1a9939c4aa82b1155"><enum>(2)</enum><header>Farm</header> <subparagraph id="id08349763afd04b3fb0ee16f1f08821b3"><enum>(A)</enum><header>In general</header><text>The term <term>farm</term> means, in relation to an eligible producer on a farm, the total of all crop acreage in all counties that is planted or intended to be planted for harvest, for sale, or on-farm livestock feeding (including native grassland intended for haying) by the eligible producer.</text> </subparagraph><subparagraph id="idd1316145afd44f7b84b9826ca9d2f349"><enum>(B)</enum><header>Aquaculture</header><text>In the case of aquaculture, the term <term>farm</term> means, in relation to an eligible producer on a farm, all fish being produced in all counties that are intended to be harvested for sale by the eligible producer.</text> </subparagraph><subparagraph id="idb7b189a331e945baaed375cfe918a9b2"><enum>(C)</enum><header>Honey</header><text>In the case of honey, the term <term>farm</term> means, in relation to an eligible producer on a farm, all bees and beehives in all counties that are intended to be harvested for a honey crop for sale by the eligible producer.</text> </subparagraph></paragraph><paragraph id="id2e700f857c3a470399c9be038db31205"><enum>(3)</enum><header>Farm-raised fish</header><text>The term <term>farm-raised fish</term> means any aquatic species that is propagated and reared in a controlled environment.</text> </paragraph><paragraph id="id14d4bb43c7714542a9b18212ea27bc50"><enum>(4)</enum><header>Livestock</header><text>The term <term>livestock</term> includes—</text> <subparagraph id="id184c949da68141008881d784bb6995b6"><enum>(A)</enum><text>cattle (including dairy cattle);</text> </subparagraph><subparagraph id="id68afd37abb8347c9be0ac0ea24935818"><enum>(B)</enum><text>bison;</text> </subparagraph><subparagraph id="idbf69630531c341a5a98b09e291aa32af"><enum>(C)</enum><text>poultry;</text> </subparagraph><subparagraph id="idb2bbee25e3e44f9c9f38cf1f3e9878c0"><enum>(D)</enum><text>sheep;</text> </subparagraph><subparagraph id="id19412caf947d42de8701d496a88bc60c"><enum>(E)</enum><text>swine;</text> </subparagraph><subparagraph id="id1acc31a44bf84717abf60fb5697f240b"><enum>(F)</enum><text>horses; and</text> </subparagraph><subparagraph id="id2d0a8e0c37b2456b99c6483965b5a7e3"><enum>(G)</enum><text>other livestock, as determined by the Secretary.</text> </subparagraph></paragraph></subsection><subsection id="id1ba28006b13b46cca809fba5c5acbd79"><enum>(b)</enum><header>Livestock indemnity payments</header> <paragraph id="idb55cb298ceb7476fac9101018b5c13b9"><enum>(1)</enum><header>Payments</header><text>For each of fiscal years 2012 through 2017, the Secretary shall use such sums as are necessary of the funds of the Commodity Credit Corporation to make livestock indemnity payments to eligible producers on farms that have incurred livestock death losses in excess of the normal mortality, as determined by the Secretary, due to—</text> <subparagraph id="id9c63489798f64a8aa4a5658a97aa98a3"><enum>(A)</enum><text>attacks by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves; or</text> </subparagraph><subparagraph id="ide99a1ecc6d9a4b9db16c979cf8da2144"><enum>(B)</enum><text>adverse weather, as determined by the Secretary, during the calendar year, including losses due to hurricanes, floods, blizzards, disease, wildfires, extreme heat, and extreme cold.</text> </subparagraph></paragraph><paragraph id="id5b7ae4558fc344a29578a7b1fcbf6abe"><enum>(2)</enum><header>Payment rates</header><text>Indemnity payments to an eligible producer on a farm under paragraph (1) shall be made at a rate of 65 percent of the market value of the applicable livestock on the day before the date of death of the livestock, as determined by the Secretary.</text> </paragraph><paragraph id="ida879c7caacc4416caaef07fd33c20165"><enum>(3)</enum><header>Special rule for payments made due to disease</header><text>The Secretary shall ensure that payments made to an eligible producer under paragraph (1) are not made for the same livestock losses for which compensation is provided pursuant to section 10407(d) of the Animal Health Protection Act (7 U.S.C. 8306(d)).</text> </paragraph></subsection><subsection id="ide8adc906311c499b86eefda286598766"><enum>(c)</enum><header>Livestock forage disaster program</header> <paragraph id="id200ca0cf79ea4277a4707778b4175874"><enum>(1)</enum><header>Establishment</header><text>There is established a livestock forage disaster program to provide 1 source for livestock forage disaster assistance for weather-related forage losses, as determined by the Secretary, by combining—</text> <subparagraph id="id91a1f2a554c743cb82991e688d6bc0bb"><enum>(A)</enum><text>the livestock forage assistance functions of—</text> <clause id="id70CD4BF0654A451A88544B4D79AD4863"><enum>(i)</enum><text>the noninsured crop disaster assistance program established by section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333); and</text> </clause><clause id="id330C0C83136440C8A11AB86A2636F2EA"><enum>(ii)</enum><text>the emergency assistance for livestock, honey bees, and farm-raised fish program under section 531(e) of the Federal Crop Insurance Act (7 U.S.C. 1531(e)) (as in existence on the day before the date of enactment of this Act); and</text> </clause></subparagraph><subparagraph id="id39ff206f6d714b8b8eb02adee9d5459c"><enum>(B)</enum><text>the livestock forage disaster program under section 531(d) of the Federal Crop Insurance Act (7 U.S.C. 1531(d)) (as in existence on the day before the date of enactment of this Act).</text> </subparagraph></paragraph><paragraph id="idb5de18d6b7754dd2a171acbf93d78a87"><enum>(2)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="idc32da95185314a7aa847540d03e29cc0"><enum>(A)</enum><header>Covered livestock</header> <clause id="id01a258c555214f028622960df5d0a34c"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), the term <term>covered livestock</term> means livestock of an eligible livestock producer that, during the 60 days prior to the beginning date of an eligible forage loss, as determined by the Secretary, the eligible livestock producer—</text> <subclause id="id3c456ba55ada44bbaf8924a60566fa52"><enum>(I)</enum><text>owned;</text> </subclause><subclause id="ide6b82e6d80b544c1a1980d9d325b7b30"><enum>(II)</enum><text>leased;</text> </subclause><subclause id="idd15ebce53a5d4b51bf0ae96db44d0697"><enum>(III)</enum><text>purchased;</text> </subclause><subclause id="idd2ff5696cd804aee9a1b0fe17d2c6eee"><enum>(IV)</enum><text>entered into a contract to purchase;</text> </subclause><subclause id="id05e1c65720d0420492b8f9d6dc66a686"><enum>(V)</enum><text>was a contract grower; or</text> </subclause><subclause id="id526f2a31a2e94f5cb3b55c97f48f7915"><enum>(VI)</enum><text>sold or otherwise disposed of due to an eligible forage loss during—</text> <item id="id0a55ba0447a1433f8ae1e35a8b6ddff5"><enum>(aa)</enum><text>the current production year; or</text> </item><item id="id4777517a97864707a644ab58e0490252"><enum>(bb)</enum><text>subject to paragraph (4)(B)(ii), 1 or both of the 2 production years immediately preceding the current production year.</text> </item></subclause></clause><clause id="idc5273402a27f4c4689fb2430c4377ba8"><enum>(ii)</enum><header>Exclusion</header><text>The term <term>covered livestock</term> does not include livestock that were or would have been in a feedlot, on the beginning date of the eligible forage loss, as a part of the normal business operation of the eligible livestock producer, as determined by the Secretary.</text> </clause></subparagraph><subparagraph id="idce357e7f54644c56944af1332e6a9b21"><enum>(B)</enum><header>Drought monitor</header><text>The term <term>drought monitor</term> means a system for classifying drought severity according to a range of abnormally dry to exceptional drought, as defined by the Secretary.</text> </subparagraph><subparagraph id="id03a9856cf8914824a0efb695633bd128"><enum>(C)</enum><header>Eligible forage loss</header><text>The term <term>eligible forage loss</term> means 1 or more forage losses that occur due to weather-related conditions, including drought, flood, blizzard, hail, excessive moisture, hurricane, and fire, occurring during the normal grazing period, as determined by the Secretary, if the forage—</text> <clause id="id1a39836ec40142a1bb49a9085160eb78"><enum>(i)</enum><text>is grown on land that is native or improved pastureland with permanent vegetative cover; or</text> </clause><clause id="idea4b992434504d71ae4fc099411371e5"><enum>(ii)</enum><text>is a crop planted specifically for the purpose of providing grazing for covered livestock of an eligible livestock producer.</text> </clause></subparagraph><subparagraph id="idcd3e4748b8c24b1788632b056d3736a9"><enum>(D)</enum><header>Eligible livestock producer</header> <clause id="id5293f73417de40029b479b6ce526774a"><enum>(i)</enum><header>In general</header><text>The term <term>eligible livestock producer</term> means an eligible producer on a farm that—</text> <subclause id="id5aa0ee1258fa4c7883e3e61e75e865c2"><enum>(I)</enum><text>is an owner, cash or share lessee, or contract grower of covered livestock that provides the pastureland or grazing land, including cash-leased pastureland or grazing land, for the covered livestock;</text> </subclause><subclause id="id023521bacf36431d8041e3d9de3b31f2"><enum>(II)</enum><text>provides the pastureland or grazing land for covered livestock, including cash-leased pastureland or grazing land that is physically located in a county affected by an eligible forage loss;</text> </subclause><subclause id="id51bc26348c57436095a5a068aceac953"><enum>(III)</enum><text>certifies the eligible forage loss; and</text> </subclause><subclause id="id57be17671791461fadcdd0fac51fa100"><enum>(IV)</enum><text>meets all other eligibility requirements established under this subsection.</text> </subclause></clause><clause id="id666f475397cc4386aaff474937c3d89d"><enum>(ii)</enum><header>Exclusion</header><text>The term <term>eligible livestock producer</term> does not include an owner, cash or share lessee, or contract grower of livestock that rents or leases pastureland or grazing land owned by another person on a rate-of-gain basis.</text> </clause></subparagraph><subparagraph id="id3204c1aa77c043839d60d710eddccd53"><enum>(E)</enum><header>Normal carrying capacity</header><text>The term <term>normal carrying capacity</term>, with respect to each type of grazing land or pastureland in a county, means the normal carrying capacity, as determined under paragraph (4)(D)(i), that would be expected from the grazing land or pastureland for livestock during the normal grazing period, in the absence of an eligible forage loss that diminishes the production of the grazing land or pastureland.</text> </subparagraph><subparagraph id="id461d5fae3efc41c0840aebb6674b5594"><enum>(F)</enum><header>Normal grazing period</header><text>The term <term>normal grazing period</term>, with respect to a county, means the normal grazing period during the calendar year for the county, as determined under paragraph (4)(D)(i).</text> </subparagraph></paragraph><paragraph id="idfe35a7cc0b894c0a801db004caf88f49"><enum>(3)</enum><header>Program</header><text>For each of fiscal years 2012 through 2017, the Secretary shall use such sums as are necessary of the funds of the Commodity Credit Corporation to provide compensation under paragraphs (4) through (6), as determined by the Secretary for eligible forage losses affecting covered livestock of eligible livestock producers.</text> </paragraph><paragraph id="idce48d75627644b6487ea0554c9aec802"><enum>(4)</enum><header>Assistance for eligible forage losses due to drought conditions</header> <subparagraph id="id4e363c299fc94410ae2863da71db91e4"><enum>(A)</enum><header>Eligible forage losses</header> <clause id="ide35d0ad4bf37477789eaad8364c3ca68"><enum>(i)</enum><header>In general</header><text>An eligible livestock producer of covered livestock may receive assistance under this paragraph for eligible forage losses that occur due to drought on land that—</text> <subclause id="id325c9d54ae124b6c928710c8432c105c"><enum>(I)</enum><text>is native or improved pastureland with permanent vegetative cover; or</text> </subclause><subclause id="ide6ac285e83f84742a9e51054cd9cd49a"><enum>(II)</enum><text>is planted to a crop planted specifically for the purpose of providing grazing for covered livestock.</text> </subclause></clause><clause id="id731ac045207446098d3993a1f31745fd"><enum>(ii)</enum><header>Exclusions</header><text>An eligible livestock producer may not receive assistance under this paragraph for eligible forage losses that occur on land used for haying or grazing under the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.), unless the land is grassland eligible for the conservation reserve program under section 1231(d)(2) of the Food Security Act of 1985 (16 U.S.C. 3831(d)(2)) (as amended by section 2001 of this Act).</text> </clause></subparagraph><subparagraph id="id6f360d9194244b809bb7480e5a465875"><enum>(B)</enum><header>Monthly payment rate</header> <clause id="ida93e04c711604c65b706aae770e09001"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), the payment rate for assistance for 1 month under this paragraph shall, in the case of drought, be equal to 60 percent of the lesser of—</text> <subclause id="id888336dec791489b8810861c34bd7589"><enum>(I)</enum><text>the monthly feed cost for all covered livestock owned or leased by the eligible livestock producer, as determined under subparagraph (C); or</text> </subclause><subclause id="id3de54bbd22464eb29c234ab5d8b4608c"><enum>(II)</enum><text>the monthly feed cost calculated by using the normal carrying capacity of the eligible grazing land of the eligible livestock producer.</text> </subclause></clause><clause id="id020b0432f3594dbfb19cdf960433666c"><enum>(ii)</enum><header>Partial compensation</header><text>In the case of an eligible livestock producer that sold or otherwise disposed of covered livestock due to drought conditions in 1 or both of the 2 production years immediately preceding the current production year, as determined by the Secretary, the payment rate shall be 80 percent of the payment rate otherwise calculated in accordance with clause (i).</text> </clause></subparagraph><subparagraph id="id385dcfb9125640a5a5b889d933bdd7b3"><enum>(C)</enum><header>Monthly feed cost</header> <clause id="id4c9649c12b0849a4878b4353ab594395"><enum>(i)</enum><header>In general</header><text>The monthly feed cost shall equal the product obtained by multiplying—</text> <subclause id="idc2b84e334db2422f9feaf3e1d2a26426"><enum>(I)</enum><text>30 days;</text> </subclause><subclause id="ida769f8cef02d49cc9e55831a434c3335"><enum>(II)</enum><text>a payment quantity that is equal to the feed grain equivalent, as determined under clause (ii); and</text> </subclause><subclause id="id774162f5b2734572b0ae5df9d86abd8d"><enum>(III)</enum><text>a payment rate that is equal to the corn price per pound, as determined under clause (iii).</text> </subclause></clause><clause id="id40de50a4e15c4696a22ba8a785753157"><enum>(ii)</enum><header>Feed grain equivalent</header><text>For purposes of clause (i)(II), the feed grain equivalent shall equal—</text> <subclause id="idb86fd355185544e7b3e90da49b34916e"><enum>(I)</enum><text>in the case of an adult beef cow, 15.7 pounds of corn per day; or</text> </subclause><subclause id="id3ca41eac9fb2417188225e2f35d66d1f"><enum>(II)</enum><text>in the case of any other type of weight of livestock, an amount determined by the Secretary that represents the average number of pounds of corn per day necessary to feed the livestock.</text> </subclause></clause><clause id="id54b8d49297fe412a8c760c5874fddd22"><enum>(iii)</enum><header>Corn price per pound</header><text>For purposes of clause (i)(III), the corn price per pound shall equal the quotient obtained by dividing—</text> <subclause id="id3f870eebce444c46a25835cf6ea16715"><enum>(I)</enum><text>the higher of—</text> <item id="idae3ce6707b854ed9b0c1d79b773afdb9"><enum>(aa)</enum><text>the national average corn price per bushel for the 12-month period immediately preceding March 1 of the year for which the disaster assistance is calculated; or</text> </item><item id="idaf52bf160dae46c9b4d7c8a2ea716445"><enum>(bb)</enum><text>the national average corn price per bushel for the 24-month period immediately preceding that March 1; by</text> </item></subclause><subclause id="idf998623fba6f45838497cb89cb641340"><enum>(II)</enum><text>56.</text> </subclause></clause></subparagraph><subparagraph id="idd99a52baf422411ebe4c3d46cc0b33b8"><enum>(D)</enum><header>Normal grazing period and drought monitor intensity</header> <clause id="idff343a66456941eabd1f7de2e38048ad"><enum>(i)</enum><header>FSA county committee determinations</header> <subclause id="id1eee5126117f49a396780b6f02f6a862"><enum>(I)</enum><header>In general</header><text>The Secretary shall determine the normal carrying capacity and normal grazing period for each type of grazing land or pastureland in the county served by the applicable Farm Service Agency committee.</text> </subclause><subclause id="id5b12a18ff53942308755218df66bc2cb"><enum>(II)</enum><header>Changes</header><text>No change to the normal carrying capacity or normal grazing period established for a county under subclause (I) shall be made unless the change is requested by the appropriate State and county Farm Service Agency committees.</text> </subclause></clause><clause id="id43fbdf9acf4643458d96a12a73a89215"><enum>(ii)</enum><header>Drought intensity</header> <subclause id="ida28b91fb20f94d60867773f73ad6c978"><enum>(I)</enum><header>D2</header><text>An eligible livestock producer that owns or leases grazing land or pastureland that is physically located in a county that is rated by the U.S. Drought Monitor as having a D2 (severe drought) intensity in any area of the county for at least 8 consecutive weeks during the normal grazing period for the county, as determined by the Secretary, shall be eligible to receive assistance under this paragraph in an amount equal to 1 monthly payment using the monthly payment rate determined under subparagraph (B).</text> </subclause><subclause id="id4056d13223714df89acc06f93bc80e8c"><enum>(II)</enum><header>D3</header><text>An eligible livestock producer that owns or leases grazing land or pastureland that is physically located in a county that is rated by the U.S. Drought Monitor as having at least a D3 (extreme drought) intensity in any area of the county at any time during the normal grazing period for the county, as determined by the Secretary, shall be eligible to receive assistance under this paragraph—</text> <item id="id1727ebf335c746b39828aa11a51d1b0f"><enum>(aa)</enum><text>in an amount equal to 3 monthly payments using the monthly payment rate determined under subparagraph (B);</text> </item><item id="id5f8203d88f294448b17e27186d0fe513"><enum>(bb)</enum><text>if the county is rated as having a D3 (extreme drought) intensity in any area of the county for at least 4 weeks during the normal grazing period for the county, or is rated as having a D4 (exceptional drought) intensity in any area of the county at any time during the normal grazing period, in an amount equal to 4 monthly payments using the monthly payment rate determined under subparagraph (B); or</text> </item><item id="idf831cace593b4374b65a85382cb4c81a"><enum>(cc)</enum><text>if the county is rated as having a D4 (exceptional drought) intensity in any area of the county for at least 4 weeks during the normal grazing period, in an amount equal to 5 monthly payments using the monthly rate determined under subparagraph (B).</text> </item></subclause></clause><clause id="id57e5c2bb654f453db50ba1d9a16c4f34"><enum>(iii)</enum><header>Annual payment based on drought conditions determined by means other than the U.S. Drought Monitor</header> <subclause id="id642c63b1fb7e44afabbe9168ef0bf74f"><enum>(I)</enum><header>In general</header><text>An eligible livestock producer that owns grazing land or pastureland that is physically located in a county that has experienced on average, over the preceding calendar year, precipitation levels that are 50 percent or more below normal levels, according to sufficient documentation as determined by the Secretary, may be eligible, subject to a determination by the Secretary, to receive assistance under this paragraph in an amount equal to not more than 1 monthly payment using the monthly payment rate under subparagraph (B).</text> </subclause><subclause id="idc6e1b0ac52574f70bc17beb6f2618365"><enum>(II)</enum><header>No duplicate payment</header><text>A producer may not receive a payment under both clause (ii) and this clause.</text> </subclause></clause></subparagraph></paragraph><paragraph id="id490ea3e115184f8a8360f16713b8a939"><enum>(5)</enum><header>Assistance for losses due to fire on public managed land</header> <subparagraph id="iddb593664d91f4d629f0a8d77a17750b4"><enum>(A)</enum><header>In general</header><text>An eligible livestock producer may receive assistance under this paragraph only if—</text> <clause id="id28b52a5201424fa08d9e7f128a75de4b"><enum>(i)</enum><text>the eligible forage losses occur on rangeland that is managed by a Federal agency; and</text> </clause><clause id="id80e30c82ffe44105825997417071625d"><enum>(ii)</enum><text>the eligible livestock producer is prohibited by the Federal agency from grazing the normal permitted livestock on the managed rangeland due to a fire.</text> </clause></subparagraph><subparagraph id="id763c404492544a6782d8c21cd338e45b"><enum>(B)</enum><header>Payment rate</header><text>The payment rate for assistance under this paragraph shall be equal to 50 percent of the monthly feed cost for the total number of livestock covered by the Federal lease of the eligible livestock producer, as determined under paragraph (4)(C).</text> </subparagraph><subparagraph id="idac9ebd278d0843ba81f12cb007d53736"><enum>(C)</enum><header>Payment duration</header> <clause id="id123837316e854d0386118ba17db432fc"><enum>(i)</enum><header>In general</header><text>Subject to clause (ii), an eligible livestock producer shall be eligible to receive assistance under this paragraph for the period—</text> <subclause id="idacc08cd795a34500bb841e8874fbf97c"><enum>(I)</enum><text>beginning on the date on which the Federal agency excludes the eligible livestock producer from using the managed rangeland for grazing; and</text> </subclause><subclause id="id83d2036ecb61433fa8b5f41ea4bd4d0a"><enum>(II)</enum><text>ending on the last day of the Federal lease of the eligible livestock producer.</text> </subclause></clause><clause id="idf019ff6c6e5e448eb71c31f5563153be"><enum>(ii)</enum><header>Limitation</header><text>An eligible livestock producer may only receive assistance under this paragraph for losses that occur on not more than 180 days per year.</text> </clause></subparagraph></paragraph><paragraph id="id9b156743037d4f5bb5d69c73f4845b18"><enum>(6)</enum><header>Assistance for eligible forage losses due to other than drought or fire</header> <subparagraph id="id75cf979a755d402a83c56c1711b40aa8"><enum>(A)</enum><header>Eligible forage losses</header> <clause id="id82d66ec73f4e47adbb8d522e343ee647"><enum>(i)</enum><header>In general</header><text>Subject to subparagraph (B), an eligible livestock producer of covered livestock may receive assistance under this paragraph for eligible forage losses that occur due to weather-related conditions other than drought or fire on land that—</text> <subclause id="ida85a81d3e625408bbb6c2547db089110"><enum>(I)</enum><text>is native or improved pastureland with permanent vegetative cover; or</text> </subclause><subclause id="idbb1adf4802fd46d8a416e9eb41c4ed0b"><enum>(II)</enum><text>is planted to a crop planted specifically for the purpose of providing grazing for covered livestock.</text> </subclause></clause><clause id="id2da469bf370b4d72b974e647a2131fea"><enum>(ii)</enum><header>Exclusions</header><text>An eligible livestock producer may not receive assistance under this paragraph for eligible forage losses that occur on land used for haying or grazing under the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.), unless the land is grassland eligible for the conservation reserve program under section 1231(d)(2) of the Food Security Act of 1985 (16 U.S.C. 3831(d)(2)) (as amended by section 2001 of this Act).</text> </clause></subparagraph><subparagraph id="idcfb245db329940cd9bdf615069e13347"><enum>(B)</enum><header>Payments for eligible forage losses</header> <clause id="id00eed380f5344c459a104037c0772e1c"><enum>(i)</enum><header>In general</header><text>The Secretary shall provide assistance under this paragraph to an eligible livestock producer for eligible forage losses that occur due to weather-related conditions other than—</text> <subclause id="iddcf3e41081d84ea9a8fcfc77c45f34cd"><enum>(I)</enum><text>drought under paragraph (4); and</text> </subclause><subclause id="idfa50d28ee0954d10a8553e40b0d67107"><enum>(II)</enum><text>fire on public managed land under paragraph (5).</text> </subclause></clause><clause id="idfd4aff0c178c4bbeb42c567d813203d8"><enum>(ii)</enum><header>Terms and conditions</header><text>The Secretary shall establish terms and conditions for assistance under this paragraph that are consistent with the terms and conditions for assistance under this subsection.</text> </clause></subparagraph></paragraph><paragraph id="id5f0a7422e4f9427ca104c1064e5feda2"><enum>(7)</enum><header>No duplicative payments</header><text>An eligible livestock producer may elect to receive assistance for eligible forage losses under either paragraph (4), (5), or (6), if applicable, but may not receive assistance under more than 1 of those paragraphs for the same loss, as determined by the Secretary.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE5466C6D322D45169170EE2C8D5477E6"><enum>(8)</enum><header display-inline="yes-display-inline">Determinations by Secretary</header><text display-inline="yes-display-inline">A determination made by the Secretary under this subsection shall be final and conclusive.</text> </paragraph></subsection><subsection id="ide9e308388a88423e8dd0916945fc8727"><enum>(d)</enum><header>Emergency assistance for livestock, honey bees, and farm-raised fish</header> <paragraph id="id74c167bb507445c3a3c62a1470940d72"><enum>(1)</enum><header>In general</header><text>For each of fiscal years 2012 through 2017, the Secretary shall use not more than $5,000,000 of the funds of the Commodity Credit Corporation to provide emergency relief to eligible producers of livestock, honey bees, and farm-raised fish to aid in the reduction of losses due to disease, adverse weather, or other conditions, such as blizzards and wildfires, as determined by the Secretary, that are not covered under subsection (b) or (c).</text> </paragraph><paragraph id="id7d2085c9dda34a29a89568c4669bc88e"><enum>(2)</enum><header>Use of funds</header><text>Funds made available under this subsection shall be used to reduce losses caused by feed or water shortages, disease, or other factors as determined by the Secretary.</text> </paragraph><paragraph id="id3ac96a15dbd4402fa25fed422d5405b6"><enum>(3)</enum><header>Availability of funds</header><text>Any funds made available under this subsection shall remain available until expended.</text> </paragraph></subsection><subsection id="id8b5f9edb9e8645548fcfb833a1bc9897"><enum>(e)</enum><header>Tree assistance program</header> <paragraph id="id03302a54081a40e6bb45839aa6309078"><enum>(1)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="id9f4d754c285d4792a12e6c098094b58d"><enum>(A)</enum><header>Eligible orchardist</header><text>The term <term>eligible orchardist</term> means a person that produces annual crops from trees for commercial purposes.</text> </subparagraph><subparagraph id="id66f69c2d7e514e00842004ad14a05370"><enum>(B)</enum><header>Natural disaster</header><text>The term <term>natural disaster</term> means plant disease, insect infestation, drought, fire, freeze, flood, earthquake, lightning, or other occurrence, as determined by the Secretary.</text> </subparagraph><subparagraph id="id2d1bec166f5940eeb754b6c1b229a2f4"><enum>(C)</enum><header>Nursery tree grower</header><text>The term <term>nursery tree grower</term> means a person who produces nursery, ornamental, fruit, nut, or Christmas trees for commercial sale, as determined by the Secretary.</text> </subparagraph><subparagraph id="id9de19ab55a094c53a3a85de4f133babf"><enum>(D)</enum><header>Tree</header><text>The term <term>tree</term> includes a tree, bush, and vine.</text> </subparagraph></paragraph><paragraph id="idf4ae3b9a7b114860ab2028d611995844"><enum>(2)</enum><header>Eligibility</header> <subparagraph id="id2500b61b7fbc4c2da9e25349395e8fa5"><enum>(A)</enum><header>Loss</header><text>Subject to subparagraph (B), for each of fiscal years 2012 through 2017, the Secretary shall use such sums as are necessary of the funds of the Commodity Credit Corporation to provide assistance—</text> <clause id="id02f5d41ddea04eb6853efd158ea1ed5c"><enum>(i)</enum><text>under paragraph (3) to eligible orchardists and nursery tree growers that planted trees for commercial purposes but lost the trees as a result of a natural disaster, as determined by the Secretary; and</text> </clause><clause id="id9af5017b6d234514bee907d40d154cf5"><enum>(ii)</enum><text>under paragraph (3)(B) to eligible orchardists and nursery tree growers that have a production history for commercial purposes on planted or existing trees but lost the trees as a result of a natural disaster, as determined by the Secretary.</text> </clause></subparagraph><subparagraph id="ide5edf90bf4ce4885ab61310300917c2d"><enum>(B)</enum><header>Limitation</header><text>An eligible orchardist or nursery tree grower shall qualify for assistance under subparagraph (A) only if the tree mortality of the eligible orchardist or nursery tree grower, as a result of damaging weather or related condition, exceeds 15 percent (adjusted for normal mortality).</text> </subparagraph></paragraph><paragraph id="id99779d5c13f348e486935adbedfbefc9"><enum>(3)</enum><header>Assistance</header><text>Subject to paragraph (4), the assistance provided by the Secretary to eligible orchardists and nursery tree growers for losses described in paragraph (2) shall consist of—</text> <subparagraph id="idb9fb9c6a3813470c8918db63461869c4"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="idA5C74BBD71C34356A7C90802AD9BB924"><enum>(i)</enum><text>reimbursement of 65 percent of the cost of replanting trees lost due to a natural disaster, as determined by the Secretary, in excess of 15 percent mortality (adjusted for normal mortality); or</text> </clause><clause id="idED4A99F57497495EABF5481CD3C1C35F" indent="up1"><enum>(ii)</enum><text>at the option of the Secretary, sufficient seedlings to reestablish a stand; and</text> </clause></subparagraph><subparagraph id="idea029a2cdb29418e94c4ae094af19987"><enum>(B)</enum><text>reimbursement of 50 percent of the cost of pruning, removal, and other costs incurred by an eligible orchardist or nursery tree grower to salvage existing trees or, in the case of tree mortality, to prepare the land to replant trees as a result of damage or tree mortality due to a natural disaster, as determined by the Secretary, in excess of 15 percent damage or mortality (adjusted for normal tree damage and mortality).</text> </subparagraph></paragraph><paragraph id="idab3025dc1a97439daae23da0685c07b3"><enum>(4)</enum><header>Limitations on assistance</header> <subparagraph id="id852e008c09584b9790a47e2a04ffe3cc"><enum>(A)</enum><header>Definitions of legal entity and person</header><text>In this paragraph, the terms <term>legal entity</term> and <term>person</term> have the meaning given those terms in section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a)).</text> </subparagraph><subparagraph id="id38a4c8c3240e47468e0301d98b7d07d6"><enum>(B)</enum><header>Amount</header><text>The total amount of payments received, directly or indirectly, by a person or legal entity (excluding a joint venture or general partnership) under this subsection may not exceed $100,000 for any crop year, or an equivalent value in tree seedlings.</text> </subparagraph><subparagraph id="id28ba1d67300547fdad060620e0acfbbf"><enum>(C)</enum><header>Acres</header><text>The total quantity of acres planted to trees or tree seedlings for which a person or legal entity shall be entitled to receive payments under this subsection may not exceed 500 acres.</text> </subparagraph></paragraph></subsection><subsection id="id0ce66670bfba4cf59f5e316d8fb924fc"><enum>(f)</enum><header>Payments</header> <paragraph id="idb35cb4026df8484bacce5234a14bb73b"><enum>(1)</enum><header>Payment limitations</header> <subparagraph id="id80d3460788bf4c42bb5e6d0fb33b17a2"><enum>(A)</enum><header>Definitions of legal entity and person</header><text>In this subsection, the terms <quote>legal entity</quote> and <quote>person</quote> have the meanings given those terms in section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a)).</text> </subparagraph><subparagraph id="id8c6d2a0229c14152a970a0f1d41f67fd"><enum>(B)</enum><header>Amount</header><text>The total amount of disaster assistance payments received, directly or indirectly, by a person or legal entity (excluding a joint venture or general partnership) under this section (excluding payments received under subsection (e)) may not exceed $100,000 for any crop year.</text> </subparagraph><subparagraph id="id387de0736e5347a089523568153e2291"><enum>(C)</enum><header>Direct attribution</header><text>Subsections (d) and (e) of section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) or any successor provisions relating to direct attribution shall apply with respect to assistance provided under this section.</text> </subparagraph></paragraph><paragraph id="id15f9275131d4464b8bf0717cf9be773f"><enum>(2)</enum><header>Payment delivery</header><text>The Secretary shall make payments under this section after October 1, 2013, for losses incurred in the 2012 and 2013 fiscal years, and as soon as practicable for losses incurred in any year thereafter.</text> </paragraph></subsection></section></subtitle><subtitle id="H5976198D707F4D6A9CCFD73BAA296A64"><enum>F</enum><header>Administration</header> <section id="H7B256B0333624634AB2F09955D6A07BE"><enum>1601.</enum><header>Administration generally</header> <subsection id="H8E3627C507704D1B94242D0EB8A6A7AC"><enum>(a)</enum><header>Use of Commodity Credit Corporation</header><text>The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this title.</text> </subsection><subsection id="H99AC05FEC2F74C84B379E2F787B5E21F"><enum>(b)</enum><header>Determinations by Secretary</header><text>A determination made by the Secretary under this title shall be final and conclusive.</text> </subsection><subsection id="H28BD65BC82E84CDAA8925EBF108B2540"><enum>(c)</enum><header>Regulations</header> <paragraph id="HE27D38DF2CE54BD0A0E020A53A3E31CF"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, not later than 90 days after the date of enactment of this Act, the Secretary and the Commodity Credit Corporation, as appropriate, shall promulgate such regulations as are necessary to implement this title and the amendments made by this title.</text> </paragraph><paragraph id="H14D15678FFF7465C8AF01FEDFAD82F44"><enum>(2)</enum><header>Procedure</header><text>The promulgation of the regulations and administration of this title and the amendments made by this title and sections 11001 and 11011 of this Act shall be made without regard to—</text> <subparagraph id="ID7BC313864A4A432988B951E3CA3D19AE"><enum>(A)</enum><text>the notice and comment provisions of section 553 of title 5, United States Code;</text> </subparagraph><subparagraph id="H5BC59E22AF894073AF812BBEAED1AE2F"><enum>(B)</enum><text>chapter 35 of title 44, United States Code (commonly known as the <quote>Paperwork Reduction Act</quote>); and</text> </subparagraph><subparagraph id="HDF198B04425B475AA9C2F3DB8151B4C2"><enum>(C)</enum><text>the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking.</text> </subparagraph></paragraph><paragraph id="H3212629BBF04481FBA558CB52E5A6ABA"><enum>(3)</enum><header>Congressional review of agency rulemaking</header><text>In carrying out this subsection, the Secretary shall use the authority provided under section 808 of title 5, United States Code.</text> </paragraph></subsection><subsection id="H6477136B4BEC4514B64596C453D7189B"><enum>(d)</enum><header>Adjustment Authority Related to Trade Agreements Compliance</header> <paragraph id="H51BFE762FCE24D9C91882C86DC33E715"><enum>(1)</enum><header>Required determination; adjustment</header><text>If the Secretary determines that expenditures under this title that are subject to the total allowable domestic support levels under the Uruguay Round Agreements (as defined in section 2 of the Uruguay Round Agreements Act (19 U.S.C. 3501)) will exceed the allowable levels for any applicable reporting period, the Secretary shall, to the maximum extent practicable, make adjustments in the amount of the expenditures during that period to ensure that the expenditures do not exceed the allowable levels.</text> </paragraph><paragraph id="H16FA7946CBBA4D368AC5CC57C209EC30"><enum>(2)</enum><header>Congressional notification</header><text>Before making any adjustment under paragraph (1), the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the determination made under that paragraph and the extent of the adjustment to be made.</text> </paragraph></subsection></section><section id="H3272F8794B6145C6B9C68767530894B8"><enum>1602.</enum><header>Suspension of permanent price support authority</header> <subsection id="ID18fb8c5db23147da920df7275e9d9e05"><enum>(a)</enum><header>Agricultural Adjustment Act of 1938</header><text>The following provisions of the Agricultural Adjustment Act of 1938 shall not be applicable to the 2013 through 2017 crops of covered commodities (as defined in section 1104), cotton, and sugar and shall not be applicable to milk during the period beginning on the date of enactment of this Act through December 31, 2017:</text> <paragraph id="IDe344011443f840ea9b8032daa04ce134"><enum>(1)</enum><text>Parts II through V of subtitle B of title III (7 U.S.C. 1326 et seq.).</text> </paragraph><paragraph id="ID80b769c7d25a451c88b4104407fcadb9"><enum>(2)</enum><text>In the case of upland cotton, section 377 (7 U.S.C. 1377).</text> </paragraph><paragraph id="ID58c48fdc021748b98d0cb14a6adff664"><enum>(3)</enum><text>Subtitle D of title III (7 U.S.C. 1379a et seq.).</text> </paragraph><paragraph id="idEEE09865DE0B45308643E9E4DF47D88E"><enum>(4)</enum><text>Title IV (7 U.S.C. 1401 et seq.).</text> </paragraph></subsection><subsection id="ID5bbdd9a83d0647769badd5f34076c6bb"><enum>(b)</enum><header>Agricultural Act of 1949</header><text>The following provisions of the Agricultural Act of 1949 shall not be applicable to the 2013 through 2017 crops of covered commodities (as defined in section 1104), cotton, and sugar and shall not be applicable to milk during the period beginning on the date of enactment of this Act and through December 31, 2017:</text> <paragraph id="IDda3cca3dcfdd41f8acdaa5de4decf450"><enum>(1)</enum><text>Section 101 (7 U.S.C. 1441).</text> </paragraph><paragraph id="IDf2a5e6137faa43d29361bb5dff3d5011"><enum>(2)</enum><text>Section 103(a) (7 U.S.C. 1444(a)).</text> </paragraph><paragraph id="ID8a17c70e81014fce8118eed73753271e"><enum>(3)</enum><text>Section 105 (7 U.S.C. 1444b).</text> </paragraph><paragraph id="IDfad07b9eefee407e9d5bdd11878f73e6"><enum>(4)</enum><text>Section 107 (7 U.S.C. 1445a).</text> </paragraph><paragraph id="IDcff8653417764337a5717a76e623ada9"><enum>(5)</enum><text>Section 110 (7 U.S.C. 1445e).</text> </paragraph><paragraph id="IDbdcae5eed11f427aa308f859e8eff014"><enum>(6)</enum><text>Section 112 (7 U.S.C. 1445g).</text> </paragraph><paragraph id="IDf35945ea175149feb3dd891ee8f0bf0c"><enum>(7)</enum><text>Section 115 (7 U.S.C. 1445k).</text> </paragraph><paragraph id="IDecbe46a224b749c99a7e05ab06597cae"><enum>(8)</enum><text>Section 201 (7 U.S.C. 1446).</text> </paragraph><paragraph id="IDd10b5fa4ef3e4edc8e9afe66278b0d3a"><enum>(9)</enum><text>Title III (7 U.S.C. 1447 et seq.).</text> </paragraph><paragraph id="ID5bcc208d411b4de3b5235c99f76df690"><enum>(10)</enum><text>Title IV (7 U.S.C. 1421 et seq.), other than sections 404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).</text> </paragraph><paragraph id="ID47b2ea20a11d47ab90fcd968892a6004"><enum>(11)</enum><text>Title V (7 U.S.C. 1461 et seq.).</text> </paragraph><paragraph id="ID550a4b6259424763a5066f1d7059b74b"><enum>(12)</enum><text>Title VI (7 U.S.C. 1471 et seq.).</text> </paragraph></subsection><subsection id="ID1465e3cd82db42d0938ba4e7c44c0b1a"><enum>(c)</enum><header>Suspension of certain quota provisions</header><text>The joint resolution entitled <quote>A joint resolution relating to corn and wheat marketing quotas under the Agricultural Adjustment Act of 1938, as amended</quote>, approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable to the crops of wheat planted for harvest in the calendar years 2013 through 2017.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id11722A3B59964B4784020D868B9A4067"><enum>1603.</enum><header>Payment limitations</header> <subsection commented="no" display-inline="no-display-inline" id="id998CD0873E3F47628BB4E0540D3DDBD5"><enum>(a)</enum><header>In general</header><text>Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended by striking subsections (b) and (c) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id63D89A9E58BB47AABB3E98D1F5F94F1F" style="OLC"> <subsection id="IDa909ced18f3c4619bef0e03b59020e26"><enum>(b)</enum><header>Limitation on payments for peanuts and other covered commodities</header><text>The total amount of payments received, directly or indirectly, by a person or legal entity (except a joint venture or general partnership) for any crop year under title I of subtitle A of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title> for—</text> <paragraph id="id6E027A5EF96C4AB5BF3D5F75C5D6811B"><enum>(1)</enum><text>peanuts may not exceed $50,000; and</text> </paragraph><paragraph id="idAC35B67496724D35814BB4284BA399AE"><enum>(2)</enum><text>1 or more other covered commodities may not exceed $50,000.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id5E3559D0D04141E9A022ED5BA252869D"><enum>(b)</enum><header>Limitation on marketing loan gains and loan deficiency payments for peanuts and other covered commodities</header><text>Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended by striking subsection (d) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id22CB7915C42448D394F1E4E913760E26" style="OLC"> <subsection id="id8B8F3779B4B44F44A15D32DD27F7E0D4"><enum>(d)</enum><header>Limitation on marketing loan gains and loan deficiency payments for peanuts and other covered commodities</header><text>The total amount of marketing loan gains and loan deficiency payments received, directly or indirectly, by a person or legal entity (except a joint venture or general partnership) for any crop year under subtitle B of the Agriculture Reform, Food, and Jobs Act of 2012 (or a successor provision) for—</text> <paragraph id="id48BE6F124B664D81A57F70324CDAF892"><enum>(1)</enum><text>peanuts may not exceed $75,000; and</text> </paragraph><paragraph id="id0300C2F8F03D4DDA9BC498148811DD89"><enum>(2)</enum><text>1 or more other covered commodities may not exceed $75,000.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id65EAF33E14C9455EB683EF94B130A3BB"><enum>(c)</enum><header>Conforming amendments</header> <paragraph commented="no" display-inline="no-display-inline" id="id7B35BDC3FED1456092765E693A40A7A4"><enum>(1)</enum><text>Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended—</text> <subparagraph commented="no" display-inline="no-display-inline" id="idCE55ABC56ABF40F1A70917931F498E6E"><enum>(A)</enum><text>in subsection (a)(1), by striking <quote>section 1001 of the Food, Conservation, and Energy Act of 2008</quote> and inserting <quote>section 1104 of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title></quote>;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF02E31DBD5EE4A27BAAE4BD4E1BE9B02"><enum>(B)</enum><text>in subsection (d), by inserting <quote>or title I of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title></quote> before the period at the end;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id293C6D9DB75C449789EEE6AA9E2A77DF"><enum>(C)</enum><text>in subsection (e)—</text> <clause commented="no" display-inline="no-display-inline" id="id152AC4A1BD894BF0B8B700C4655ABAE1"><enum>(i)</enum><text>in paragraph (1), by striking <quote>subsections (b) and (c) and a program described in paragraphs (1)(C)</quote> and inserting <quote>subsection (b) and a program described in paragraph (1)(B)</quote>; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="id4992ACEFB96644E78D24E414644D4B8D"><enum>(ii)</enum><text>in paragraph (3)(B), by striking <quote>subsections (b) and (c)</quote> each place it appears and inserting <quote>subsection (b)</quote>;</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id76ECACAA01884D68B57E4A2C1EDD0A8F"><enum>(D)</enum><text>in subsection (f)—</text> <clause commented="no" display-inline="no-display-inline" id="id23DC7FC1707D4A53B0B2895590F49109"><enum>(i)</enum><text>by striking <quote>or title XII</quote> each place it appears in paragraphs (5)(A) and (6)(A) and inserting <quote>, title I of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>, or title XII</quote>;</text> </clause><clause commented="no" display-inline="no-display-inline" id="id132C1ADBC0D74302B0CE38AF8BA7228F"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>Subsections (b) and (c)</quote> and inserting <quote>Subsection (b)</quote>;</text> </clause><clause commented="no" display-inline="no-display-inline" id="id447713DFA9B64A9CA4B9980AFBD5BF9B"><enum>(iii)</enum><text>in paragraph (4)(B), by striking <quote>subsection (b) or (c)</quote> and inserting <quote>subsection (b)</quote>;</text> </clause><clause commented="no" display-inline="no-display-inline" id="id7245F2E7AF154A89AE652CC869E6FBE7"><enum>(iv)</enum><text>in paragraph (5)—</text> <subclause commented="no" display-inline="no-display-inline" id="id03038B645BE44B88B30EFC560C2FF471"><enum>(I)</enum><text>in subparagraph (A), by striking <quote>subsection (d)</quote> and inserting <quote>subsection (c)</quote>; and</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="id067D1A08683947C297DBACD056BF8814"><enum>(II)</enum><text>in subparagraph (B), by striking <quote>subsection (b), (c), or (d)</quote> and inserting <quote>subsection (b) or (c)</quote>; and</text> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="id106E6A1074354D64B0F4A99D41E4C311"><enum>(v)</enum><text>in paragraph (6)—</text> <subclause commented="no" display-inline="no-display-inline" id="id5C342B9BC72E4EE18D15DEAF868B1DE4"><enum>(I)</enum><text>in subparagraph (A), by striking <quote>subsection (d), except as provided in subsection (g)</quote> and inserting <quote>subsection (c), except as provided in subsection (f)</quote>; and</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="idFEEC6147557B4B5CA9322294ADF1E01B"><enum>(II)</enum><text>in subparagraph (B), by striking <quote>subsections (b), (c), and (d)</quote> and inserting <quote>subsections (b) and (c)</quote>;</text> </subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idACF13409D2914649A447D2D1B1B171E1"><enum>(E)</enum><text>in subsection (g)—</text> <clause commented="no" display-inline="no-display-inline" id="id2782735651B746BAB01AB8E1AA7E36BC"><enum>(i)</enum><text>in paragraph (1)—</text> <subclause commented="no" display-inline="no-display-inline" id="id63EAAEA9E10C4D66AC0AE4549864BE4C"><enum>(I)</enum><text>bv striking <quote>subsection (f)(6)(A)</quote> and inserting <quote>subsection (e)(6)(A)</quote> and</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="id48ACE14E05F942429B9BE1C6623344FF"><enum>(II)</enum><text>by striking <quote>subsection (b) or (c)</quote> and inserting <quote>subsection (b)</quote>; and</text> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="id2283BCE5D2364ACBAF5762DEAD47AC1B"><enum>(ii)</enum><text>in paragraph (2)(A), by striking <quote>subsections (b) and (c)</quote> and inserting <quote>subsection (b)</quote>; and</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2A8646440E9F4489A888ADF566A2DC9B"><enum>(F)</enum><text>by redesignating subsections (d) through (h) as subsections (c) through (g), respectively.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA1960260CD684A20A369B565464D532C"><enum>(2)</enum><text>Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308–1) is amended—</text> <subparagraph commented="no" display-inline="no-display-inline" id="id8A6C963DFC4845119651C832BE5E8D50"><enum>(A)</enum><text>in subsection (a), by striking <quote>subsections (b) and (c)</quote> and inserting <quote>subsection (b)</quote>; and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB82F611E1F464599B1D4DF96F78198E9"><enum>(B)</enum><text>in subsection (b)(1), by striking <quote>subsection (b) or (c)</quote> and inserting <quote>subsection (b)</quote>.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA761E58EB68C4A7CABAB66F98C912925"><enum>(3)</enum><text>Section 1001B(a) of the Food Security Act of 1985 (7 U.S.C. 1308–2(a)) is amended in the matter preceding paragraph (1) by striking <quote>subsections (b) and (c)</quote> and inserting <quote>subsection (b)</quote>.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9DBBD49C4EC04F14A68DB4E977E07CD2"><enum>(4)</enum><text>Section 1001C(a) of the Food Security Act of 1985 (7 U.S.C. 1308–3(a)) is amended by inserting <quote>title I of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>,</quote> after <quote>2008,</quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9EF7B28FF1EF4EADA353EC4B9ED04673"><enum>(d)</enum><header>Application</header><text>The amendments made by this section shall apply beginning with the 2013 crop year.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id8603DD43A1CB40B9A580405D346FED1B"><enum>1604.</enum><header>Payments limited to active farmers</header><text display-inline="no-display-inline">Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308–1) is amended—</text> <paragraph id="idf917c774c22444eca13e8da3f3261d2f"><enum>(1)</enum><text>in subsection (b)(2)—</text> <subparagraph id="id7281912cd9bc455fab30cd8004fb7723"><enum>(A)</enum><text>by striking <quote>or active personal management</quote> each place it appears in subparagraphs (A)(i)(II) and (B)(ii); and</text> </subparagraph><subparagraph id="id6e307d9195ab4c029c65ede5b5619ab2"><enum>(B)</enum><text>in subparagraph (C), by striking <quote>, as applied to the legal entity, are met by the legal entity, the partners or members making a significant contribution of personal labor or active personal management</quote> and inserting <quote>are met by partners or members making a significant contribution of personal labor, those partners or members</quote>; and</text> </subparagraph></paragraph><paragraph id="id5755b067087b4439b25159bbdc9cca21"><enum>(2)</enum><text>in subsection (c)—</text> <subparagraph id="id54e2f325f8214f1f9a85ada377735da6"><enum>(A)</enum><text>in paragraph (1)—</text> <clause id="id4095bbfe7f1c40c984eb8c1644911a99"><enum>(i)</enum><text>by striking subparagraph (A) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id76219c94ede24540a2962cf2ca22dcbf" style="OLC"> <subparagraph id="id6fa61521e4024f01af30af0c3cbcd64b"><enum>(A)</enum><text>the landowner share-rents the land at a rate that is usual and customary;</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </clause><clause id="id79f945296b98409a8c627f99c68799e3"><enum>(ii)</enum><text>in subparagraph (B), by striking the period at the end and inserting <quote>; and</quote>; and</text> </clause><clause id="idcf22ee9a1d974429905155f6ce854157"><enum>(iii)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idcb6ff992c45f4bd0969d163e57198d88" style="OLC"> <subparagraph id="idb109f1ccb6b24549b2b4f630365c9e95"><enum>(C)</enum><text>the share of the payments received by the landowner is commensurate with the share of the crop or income received as rent.</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph id="idf4644feb056747799ac1fe544121640c"><enum>(B)</enum><text>in paragraph (2)(A), by striking <quote>active personal management or</quote>;</text> </subparagraph><subparagraph id="id50855205e273408e98848a4152371a22"><enum>(C)</enum><text>in paragraph (5)—</text> <clause id="id34ff1b461b9d42ef8b076d58de8a274d"><enum>(i)</enum><text>by striking <quote>(5)</quote> and all that follows through <quote>(A) <header-in-text level="subparagraph" style="OLC">In general</header-in-text>.—A person</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id26cf4d6b89b74b9e8d5d7de38ccae452" style="OLC"> <paragraph id="id358daa192ca24415915405f53c14bf43"><enum>(5)</enum><header>Custom farming services</header><text>A person</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </clause><clause id="idcc5efb06ee5145559008fe024dc7a313"><enum>(ii)</enum><text>by inserting <quote>under usual and customary terms</quote> after <quote>services</quote>; and</text> </clause><clause id="id596e8e58bdf6419593c6444a6130b6cd"><enum>(iii)</enum><text>by striking subparagraph (B); and</text> </clause></subparagraph><subparagraph id="idba2e7c20201c40d9a8b78486bd124a9b"><enum>(D)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id0c693549c5724f80a5982deb5cf2927a" style="OLC"> <paragraph id="id14a05f727e17403182e0f74cb668cb4c"><enum>(7)</enum><header>Farm managers</header><text>A person who otherwise meets the requirements of this subsection other than (b)(2)(A)(i)(II) shall be considered to be actively engaged in farming, as determined by the Secretary, with respect to the farming operation, including a farming operation that is a sole proprietorship, a legal entity such as a joint venture or general partnership, or a legal entity such as a corporation or limited partnership, if the person—</text> <subparagraph id="id37dbc9d61f51471c90fcdfd5f711ec72"><enum>(A)</enum><text>makes a significant contribution of management to the farming operation necessary for the farming operation, taking into account—</text> <clause id="idb2e1908c88564d41b2fa1eb1fbc9f774"><enum>(i)</enum><text>the size and complexity of the farming operation; and</text> </clause><clause id="id38e9a883bea748c8bf30b509c291dd16"><enum>(ii)</enum><text>the management requirements normally and customarily required by similar farming operations;</text> </clause></subparagraph><subparagraph id="id4bf211bb053044d7a7a2396dc974e3e6"><enum>(B)</enum><text>is the only person in the farming operation qualifying as actively engaged in farming;</text> </subparagraph><subparagraph id="id019c44abde4445c4aaf6682ab6101dcf"><enum>(C)</enum><text>does not use the management contribution under this paragraph to qualify as actively engaged in more than 1 farming operation; and</text> </subparagraph><subparagraph id="id73a085f3ed7c4f92b7d51e7f5d375944"><enum>(D)</enum><text>manages a farm operation that does not substantially share equipment, labor, or management with persons or legal entities that with the person collectively receive, directly or indirectly, an amount equal to more than the applicable limits under section 1001(b).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="id155856623EA84F58A6AD1C72DF6DEF2C"><enum>1605.</enum><header>Adjusted gross income limitation</header> <subsection commented="no" display-inline="no-display-inline" id="id6381350CBE704300BCAA0EBD7764A9ED"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1001D(b)) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)) is amended by striking paragraph (1) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id18ED305E51BE468F9A641E29059D42BB" style="OLC"> <paragraph id="ID7b3ffb925361400994bd1c294dac87b4"><enum>(1)</enum><header>Commodity programs</header> <subparagraph id="id8AEE3FCD1CD1485A8665606D8A5385A4"><enum>(A)</enum><header>Limitation</header><text>Notwithstanding any other provision of law, a person or legal entity shall not be eligible to receive any benefit described in subparagraph (B) during a crop, fiscal or program year, as appropriate, if the average adjusted gross income (or comparable measure over the 3 taxable years preceding the most immediately preceding complete taxable year, as determined by the Secretary) of the person or legal entity exceeds $750,000.</text> </subparagraph><subparagraph id="idDA15B611809E44D0A91E30768BDEC0BC"><enum>(B)</enum><header>Covered benefits</header><text>Subparagraph (A) applies with respect to the following:</text> <clause commented="no" display-inline="no-display-inline" id="id1583DE1DEA48421CB108B0BB8C93A32F"><enum>(i)</enum><text>A payment under section 1105 of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>.</text> </clause><clause commented="no" display-inline="no-display-inline" id="idF463A0CF2F3947E8AB5CA56EA756B058"><enum>(ii)</enum><text>A marketing loan gain or loan deficiency payment under subtitle B of title I of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>.</text> </clause><clause commented="no" display-inline="no-display-inline" id="id560B681A7574430BBCF5F6D1A6F95520"><enum>(iii)</enum><text>A payment under subtitle E of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> <quoted-block display-inline="no-display-inline" id="ideef35e8450564722842d663acdcfc225" style="OLC"> <clause id="id5133f456c7354314b5bc3fe811a7626d"><enum>(iv)</enum><text>A payment under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="id6A46881BB0DA4108828D47358117BA04"><enum>(b)</enum><header>Application</header><text>The amendments made by this section shall apply beginning with the 2013 crop year.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="IDEC2E07964F91432DA2DCFA906E71BF35" section-type="subsequent-section"><enum>1606.</enum><header>Geographically disadvantaged farmers and ranchers</header><text display-inline="no-display-inline">Section 1621(d) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8792(d)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section commented="no" id="ID856e8e46ed4d4741913c911f3bddbcdb"><enum>1607.</enum><header>Personal liability of producers for deficiencies</header><text display-inline="no-display-inline">Section 164 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7284) is amended by striking <quote>and title I of the Food, Conservation, and Energy Act of 2008</quote> each place it appears and inserting <quote>title I of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702 et seq.), and title I of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title></quote>.</text> </section><section id="ID904962dbefa04f60b4b2d3764fd4a886"><enum>1608.</enum><header>Prevention of deceased individuals receiving payments under farm commodity programs</header> <subsection id="ID4e3b57ad143c4a0e98ba9d2c48c033d8"><enum>(a)</enum><header>Reconciliation</header><text>At least twice each year, the Secretary shall reconcile social security numbers of all individuals who receive payments under this title, whether directly or indirectly, with the Commissioner of Social Security to determine if the individuals are alive.</text> </subsection><subsection id="ID993a9229980045c2b94fa4ff6f05a6d7"><enum>(b)</enum><header>Preclusion</header><text>The Secretary shall preclude the issuance of payments to, and on behalf of, deceased individuals that were not eligible for payments.</text> </subsection></section><section id="ID606c815683254d78b013cf6e38966799"><enum>1609.</enum><header>Appeals</header> <subsection id="ID6d674c459b7d4741be9a8f0b58c7b4c8"><enum>(a)</enum><header>Direction, control, and support</header><text>Section 272 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6992) is amended by striking subsection (c) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idE512350142DE4E43BF69C8B7F64FFA80" style="OLC"> <subsection id="IDaa94e2cd1b8941fcbd2a889ec1ea06df"><enum>(c)</enum><header>Direction, control, and support</header> <paragraph id="ID51cec7b98863454fbface325e2ae7813"><enum>(1)</enum><header>Direction and control</header> <subparagraph id="ID44aa389ba854427c947204fce9688fa0"><enum>(A)</enum><header>In general</header><text>Except as provided in paragraph (2), the Director shall be free from the direction and control of any person other than the Secretary or the Deputy Secretary of Agriculture.</text> </subparagraph><subparagraph id="ID0c8ffbbcb823452e83bffdff75617d3a"><enum>(B)</enum><header>Administrative support</header><text>The Division shall not receive administrative support (except on a reimbursable basis) from any agency other than the Office of the Secretary.</text> </subparagraph><subparagraph id="IDc3a6342b0dd74379b198cf78cbf13239"><enum>(C)</enum><header>Prohibition on delegation</header><text>The Secretary may not delegate to any other officer or employee of the Department, other than the Deputy Secretary of Agriculture or the Director, the authority of the Secretary with respect to the Division.</text> </subparagraph></paragraph><paragraph id="ID7d464ec89e9748588e703a0fadaa89ce"><enum>(2)</enum><header>Exception</header><text>The Assistant Secretary for Administration is authorized to investigate, enforce, and implement the provisions in law, Executive order, or regulations that relate in general to competitive and excepted service positions and employment within the Division, including the position of Director, and such authority may be further delegated to subordinate officials.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="IDc25ecacf9cfa4f71be147ffe0c3bbfb0"><enum>(b)</enum><header>Determination of appealability of agency decisions</header><text>Section 272 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6992) is amended by striking subsection (d) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id8448D71CB8C542C0A89653295A391CDF" style="OLC"> <subsection id="IDd9d5488fb1324725b44c6a69e4dd61b3"><enum>(d)</enum><header>Determination of appealability of agency decisions</header> <paragraph id="IDb1528eaf1f1a4513aece430b9b16de06"><enum>(1)</enum><header>Definition of a matter of general applicability</header><text>In this subsection, the term <term>a matter of general applicability</term> means a matter that challenges the merits or authority of a rule, procedure, local or national program practice, or determination of an agency that applies, or can apply, to more than 1 interested party as opposed to the particular application of the rule, procedure, or practice to a specific set of facts or the facts themselves as the facts apply to 1 particular interested party.</text> </paragraph><paragraph id="IDfe597a5e084a4f1f999965f00b7b1b48"><enum>(2)</enum><header>Matters not subject to appeal</header><text>The Division may not hear appeals—</text> <subparagraph id="IDbc9ace0341d84bc4bb1096f52135ef1e"><enum>(A)</enum><text>unless the determination of the agency is adverse to the appellant;</text> </subparagraph><subparagraph id="ID8e7e0528d9334e11ba2b4c411e807762"><enum>(B)</enum><text>that involve matters of general applicability; and</text> </subparagraph><subparagraph id="ID1f71f8b1243048e294e74a509d98e3b7"><enum>(C)</enum><text>that involve requests for equitable relief unless the equitable relief has been denied by the agency.</text> </subparagraph></paragraph><paragraph id="ID88e773f1b3ff41b8bf509fff6c30c43b"><enum>(3)</enum><header>Equitable relief</header> <subparagraph id="ID76428f4c57e74906ae851c7524db8f4a"><enum>(A)</enum><header>In general</header><text>An appeal requesting equitable relief may not be granted by the Director to an appellant unless, using the rules and practices that the agency applies to itself, the agency could in fact have granted the relief because the appellant acted in good faith, but failed to fully comply with the requirement of the rule or practice of the agency.</text> </subparagraph><subparagraph id="ID77754a2a46434f2aa17eb8c8301915a7"><enum>(B)</enum><header>Remand</header><text>If it cannot be determined whether the agency would have granted equitable relief because the appellant acted in good faith, but failed to comply with the rule or practice of the agency, the matter shall be remanded to the agency for further consideration.</text> </subparagraph></paragraph><paragraph id="IDed0076302c7840bca2dba7c6969d82e8"><enum>(4)</enum><header>Determination of appealability</header><text>If an officer, employee, or committee of an agency determines that a decision is not appealable and a participant appeals the decision to the Director, the Director shall determine whether the decision is adverse to the individual participant and appealable or is a matter of general applicability and not subject to appeal.</text> </paragraph><paragraph id="IDa09468a736634af099e593d24f48af3b"><enum>(5)</enum><header>Appealability of determination</header><text>The determination of the Director as to whether a decision is appealable is final.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="IDeecfc29cbf2d45b89db7ee202f8ba445"><enum>(c)</enum><header>Equitable relief</header><text>Section 278 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6998) is amended by striking subsection (d).</text> </subsection><subsection id="IDa26a1f1545c54f4cb0f766d7db1b0ecd"><enum>(d)</enum><header>Conforming amendment</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="IDd2422278431c49a68b8dca0d188620d0"><enum>(1)</enum><text>in paragraph (6)(C), by striking <quote>or</quote> at the end;</text> </paragraph><paragraph id="ID1fc840333c3049ec9ffe2789a0c80c81"><enum>(2)</enum><text>in paragraph (7), by striking the period at the end and inserting <quote>; or</quote>; and</text> </paragraph><paragraph id="ID058cf87416aa4be7b62e42b76c0c81ef"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id91C71DDE1C9842D181177678CD5016F0" style="OLC"> <paragraph id="IDa113527637c640338c2f007ccba0cd53"><enum>(8)</enum><text>the authority of the Secretary to carry out amendments to sections 272 and 278 made by the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id6CB15714B7AD4BF5B81F7907FAC6E5F9"><enum>1610.</enum><header>Technical corrections</header> <subsection commented="no" display-inline="no-display-inline" id="idB457C8D9DA4A4CC09BEF72F172165672"><enum>(a)</enum><text>Section 359f(c)(1)(B) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)(1)(B)) is amended by adding a period at the end.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id37E942D294174784BB8DAAFB45871E65"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id1FD05CE3ED5841F7ADCEC624F4D5CC8D"><enum>(1)</enum><text display-inline="yes-display-inline">Section 1603(g) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1739) is amended in paragraphs (2) through (6) and the amendments made by those paragraphs by striking <quote>1703(a)</quote> each place it appears and inserting <quote>1603(a)</quote>.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id60DD298103D245CFB16AD6A5C4F43ACB" indent="up1"><enum>(2)</enum><text>This subsection and the amendments made by this subsection take effect as if included in the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1651).</text> </paragraph></subsection></section><section commented="no" id="ID112EC359C1224DAA9613A09BA63C81A5"><enum>1611.</enum><header>Assignment of payments</header> <subsection commented="no" id="ID495CB5B4ABFA413AA579BEDFBEBAF5E9"><enum>(a)</enum><header>In general</header><text>The provisions of section 8(g) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating to assignment of payments, shall apply to payments made under this title.</text> </subsection><subsection commented="no" id="ID98ACF2B317E74D41B616136735BFE0BC"><enum>(b)</enum><header>Notice</header><text>The producer making the assignment, or the assignee, shall provide the Secretary with notice, in such manner as the Secretary may require, of any assignment made under this section.</text> </subsection></section><section commented="no" id="ID550B30C3191047B7BBCFFAA7BBD14693"><enum>1612.</enum><header>Tracking of benefits</header><text display-inline="no-display-inline">As soon as practicable after the date of enactment of this Act, the Secretary may track the benefits provided, directly or indirectly, to individuals and entities under titles I and II and the amendments made by those titles.</text> </section><section commented="no" display-inline="no-display-inline" id="ID1422D7D27820453EA9A761122CCBFA37"><enum>1613.</enum><header>Signature authority</header> <subsection commented="no" id="ID09A3182C760743C0BF63B24B438424F5"><enum>(a)</enum><header>In general</header><text>In carrying out this title and title II and amendments made by those titles, if the Secretary approves a document, the Secretary shall not subsequently determine the document is inadequate or invalid because of the lack of authority of any person signing the document on behalf of the applicant or any other individual, entity, general partnership, or joint venture, or the documents relied upon were determined inadequate or invalid, unless the person signing the program document knowingly and willfully falsified the evidence of signature authority or a signature.</text> </subsection><subsection commented="no" id="ID48E95513D46649FE9AB3F2ED59137319"><enum>(b)</enum><header>Affirmation</header> <paragraph commented="no" id="IDE872E0AB690A4CC7BF4B42EB19FE6D43"><enum>(1)</enum><header>In general</header><text>Nothing in this section prohibits the Secretary from asking a proper party to affirm any document that otherwise would be considered approved under subsection (a).</text> </paragraph><paragraph commented="no" id="IDF3BA365128854DCB954D2F29D4ADEB81"><enum>(2)</enum><header>No retroactive effect</header><text>A denial of benefits based on a lack of affirmation under paragraph (1) shall not be retroactive with respect to third-party producers who were not the subject of the erroneous representation of authority, if the third-party producers—</text> <subparagraph commented="no" id="IDA9450D06AA6745BEB3327CA4FB6C295E"><enum>(A)</enum><text>relied on the prior approval by the Secretary of the documents in good faith; and</text> </subparagraph><subparagraph commented="no" id="ID17DAE56204DB47D39E6886FE7692E339"><enum>(B)</enum><text>substantively complied with all program requirements.</text> </subparagraph></paragraph></subsection></section><section id="ID93e2b7b2716d463dacd8adf17b4c2fde"><enum>1614.</enum><header>Implementation</header> <subsection id="ID5517beb78233498c93c520e27bdfbe8a"><enum>(a)</enum><header>Streamlining</header><text>In implementing this title, the Secretary shall, to the maximum extent practicable—</text> <paragraph id="ID0d549ab4dc2b4a80942fabd478d2d8e1"><enum>(1)</enum><text>seek to reduce administrative burdens and costs to producers by streamlining and reducing paperwork, forms, and other administrative requirements;</text> </paragraph><paragraph id="ID4ce53e8f47f94329b5980ce0a68b1009"><enum>(2)</enum><text>improve coordination, information sharing, and administrative work with the Risk Management Agency and the Natural Resources Conservation Service; and</text> </paragraph><paragraph id="IDdb09cf7522924d95aa9f28300fb9717a"><enum>(3)</enum><text>take advantage of new technologies to enhance efficiency and effectiveness of program delivery to producers.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4F2399C1C78E427AAD8BF44D5C7939FA"><enum>(b)</enum><header>Implementation</header><text>On October 1, 2013, the Secretary shall make available to the Farm Service Agency to carry out this title $100,000,000.</text> </subsection></section></subtitle><enum>II</enum><header>Conservation</header> <subtitle id="H55D819D977AD4D95BB6639ECD52A1427"><enum>A</enum><header>Conservation Reserve Program</header> <section id="H3A99AE28DF184F18BFBC60200E19C4EE" section-type="subsequent-section"><enum>2001.</enum><header>Extension and enrollment requirements of conservation reserve program</header> <subsection id="H027B6C96191B4F70AFAF304E744C1748"><enum>(a)</enum><header>Extension</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 id="H9828A074EFB942F9A2D4B3381881C257"><enum>(b)</enum><header>Eligible land</header><text display-inline="yes-display-inline">Section 1231(b) of the Food Security Act of 1985 (16 U.S.C. 3831(b)) is amended—</text> <paragraph commented="no" id="HC57476DD195042F4B4FBB18FF745A067"><enum>(1)</enum><text>in paragraph (1)(B), by striking <quote>the date of enactment of the Food, Conservation, and Energy Act of 2008</quote> and inserting <quote>the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title></quote>;</text> </paragraph><paragraph id="H2647DA531F88486E9AEAFC72321E0F87"><enum>(2)</enum><text>by striking paragraph (2) and redesignating paragraph (3) as paragraph (2);</text> </paragraph><paragraph id="H306F5D82B2284B33A5748FF80DB2E80D"><enum>(3)</enum><text>by inserting before paragraph (4) the following:</text> <quoted-block display-inline="no-display-inline" id="H146C2CAA6B4B48778F41EAE9F43F1ACB" style="OLC"> <paragraph id="H241B3DB9B1854AF9A5540F04B212EE01"><enum>(3)</enum><text display-inline="yes-display-inline">grassland that—</text> <subparagraph id="H375299EF7D5F4695919F380E4244A80A"><enum>(A)</enum><text>contains forbs or shrubland (including improved rangeland and pastureland) for which grazing is the predominant use;</text> </subparagraph><subparagraph id="H0DBCB91323954ED886B6DF888D5D22CE"><enum>(B)</enum><text>is located in an area historically dominated by grassland; and</text> </subparagraph><subparagraph id="H4C2E29D9B8224D71B904919F069E22AF"><enum>(C)</enum><text>could provide habitat for animal and plant populations of significant ecological value if the land is retained in its current use or restored to a natural condition;</text> </subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H1ADCB09F65DF4DE782B65A6CF32576A6"><enum>(4)</enum><text>in paragraph (4)(C), by striking <quote>filterstrips devoted to trees or shrubs</quote> and inserting <quote>filterstrips and riparian buffers devoted to trees, shrubs, or grasses</quote>; and</text> </paragraph><paragraph id="HA4C018880CA5400D87DC609D64593A0B"><enum>(5)</enum><text>by striking paragraph (5) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HEBCB3711940949AEB21BE206D30327AC" style="OLC"> <paragraph id="H9D84DD8FAC804578A94157F8EA46A78A"><enum>(5)</enum><text display-inline="yes-display-inline">the portion of land in a field not enrolled in the conservation reserve in a case in which—</text> <subparagraph id="H527C3492B39F4A5F83C5A241DAEB3470"><enum>(A)</enum><text>more than 50 percent of the land in the field is enrolled as a buffer or filterstrip or more than 75 percent of the land in the field is enrolled in a practice other than as a buffer or filterstrip; and</text> </subparagraph><subparagraph id="H89664E76F88949D28A29057110D35C7A"><enum>(B)</enum><text>the remainder of the field is—</text> <clause id="H18FAA1ABD1F6459B8508086BF117A05C"><enum>(i)</enum><text>infeasible to farm; and</text> </clause><clause id="H09701F39D91C4F8EA30AD87A26559B7E"><enum>(ii)</enum><text>enrolled at regular rental rates.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H79EEFC3365424903B9280A7BCA696756"><enum>(c)</enum><header>Planting Status of Certain Land</header><text display-inline="yes-display-inline">Section 1231(c) of the Food Security Act of 1985 (16 U.S.C. 3831(c)) is amended by striking <quote>if</quote> and all that follows through the period at the end and inserting <quote>if, during the crop year, the land was devoted to a conserving use.</quote>.</text> </subsection><subsection id="HF8DD8DD4F37A4EF98EE9E27AF66E1640"><enum>(d)</enum><header>Enrollment</header><text display-inline="yes-display-inline">Section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended by striking subsection (d) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H2A0EA5F621354B0B99BF3D77F4F4845D" style="OLC"> <subsection id="H92D40014D47D4BD09D561065D610A9B4"><enum>(d)</enum><header>Enrollment</header> <paragraph id="H6312C71398BA4BA9AFADEF38C00545F4"><enum>(1)</enum><header>Maximum acreage enrolled</header><text display-inline="yes-display-inline">The Secretary may maintain in the conservation reserve at any 1 time during—</text> <subparagraph id="HA0BDD882F796433D96EBAB47442DACE1"><enum>(A)</enum><text display-inline="yes-display-inline">fiscal year 2012, no more than 32,000,000 acres;</text> </subparagraph><subparagraph id="H02A5BB9DC4994DCDBB3138C45B5D6D5D"><enum>(B)</enum><text>fiscal year 2013, no more than 30,000,000 acres;</text> </subparagraph><subparagraph id="id1C8D52392F6340A5B4A6DC07ABC8E1DB"><enum>(C)</enum><text>fiscal year 2014, no more than 27,500,000 acres;</text> </subparagraph><subparagraph id="idf5e3e0b27c4d4e308c5369e19c37b0f6"><enum>(D)</enum><text>fiscal year 2015, no more than 26,500,000 acres;</text> </subparagraph><subparagraph id="id5245ea285cb84ae39d6ce0b7a11f7da6"><enum>(E)</enum><text>fiscal year 2016, no more than 25,500,000 acres; and</text> </subparagraph><subparagraph id="id2ec446058ca44b31a0b1f632ebb5a1c6"><enum>(F)</enum><text>fiscal year 2017, no more than 25,000,000 acres.</text> </subparagraph></paragraph><paragraph id="H60434B4599A043EAA52B66A3C24014CD"><enum>(2)</enum><header>Grassland</header> <subparagraph id="HD41C69E6E13A4F35B39ACD682D176B0F"><enum>(A)</enum><header>Limitation</header><text display-inline="yes-display-inline">For purposes of applying the limitations in paragraph (1), no more than 1,500,000 acres of the land described in subsection (b)(3) may be enrolled in the program at any 1 time during the 2013 through 2017 fiscal years.</text> </subparagraph><subparagraph id="HBC6C3CFE5AF14E61A0BFB3CF5FB9A3DB"><enum>(B)</enum><header>Priority</header><text>In enrolling acres under subparagraph (A), the Secretary may give priority to land with expiring conservation reserve program contracts.</text> </subparagraph><subparagraph id="HD81B2AD83443430086886110D860FB4A"><enum>(C)</enum><header>Method of enrollment</header><text display-inline="yes-display-inline">In enrolling acres under subparagraph (A), the Secretary shall make the program available to owners or operators of eligible land at least once during each fiscal year.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HC5EC69D00E3A4BC49122E01BA2D7D61A"><enum>(e)</enum><header>Duration of contract</header><text display-inline="yes-display-inline">Section 1231(e) of the Food Security Act of 1985 (16 U.S.C. 3831(e)) is amended by striking paragraphs (2) and (3) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H97D3C02AC7D046F3AA683696976D0894" style="OLC"> <paragraph id="HC864A80143C24429B65AB64BD084D9D6"><enum>(2)</enum><header>Special rule for certain land</header><text display-inline="yes-display-inline">In the case of land devoted to hardwood trees, shelterbelts, windbreaks, or wildlife corridors under a contract entered into under this subchapter, the owner or operator of the land may, within the limitations prescribed under this section, specify the duration of the contract.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H4345446E432A43D48870193814C2C25F"><enum>(f)</enum><header>Conservation priority areas</header><text display-inline="yes-display-inline">Section 1231(f) of the Food Security Act of 1985 (16 U.S.C. 3831(f)) is amended—</text> <paragraph id="H5D8414B5B06B49E99D14A19D7A8AB99A"><enum>(1)</enum><text>in paragraph (1), by striking <quote>watershed areas of the Chesapeake Bay Region, the Great Lakes Region, the Long Island Sound Region, and other</quote>;</text> </paragraph><paragraph id="H89DD452B6FEB4EBA8EE57A5CADFDD96F"><enum>(2)</enum><text>in paragraph (2), by striking <quote><header-in-text level="paragraph" style="OLC">watersheds</header-in-text>.—Watersheds</quote> and inserting <quote><header-in-text level="paragraph" style="OLC">areas</header-in-text>.—Areas</quote>; and</text> </paragraph><paragraph id="H8423C465386D4F39AB28B640B32F6161"><enum>(3)</enum><text>in paragraph (3), by striking <quote>a watershed’s designation—</quote> and all that follows through the period at the end and inserting <quote>an area’s designation if the Secretary finds that the area no longer contains actual and significant adverse water quality or habitat impacts related to agricultural production activities.</quote>.</text> </paragraph></subsection></section><section id="H8AFF76F8660247D8B228C93CF6A51E05"><enum>2002.</enum><header>Farmable wetland program</header> <subsection id="H2C5B80F8C4114E3181ED47D8C277BE9E"><enum>(a)</enum><header>Extension</header><text display-inline="yes-display-inline">Section 1231B(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3831b(a)(1)) is amended—</text> <paragraph id="H81EB1CF1BCF34B9B86C5F966F17406E9"><enum>(1)</enum><text>by striking <quote>2012</quote> and inserting <quote>2017</quote>; and</text> </paragraph><paragraph id="HE797D4A9587F442DAF77F2EBF96B0CF3"><enum>(2)</enum><text>by striking <quote>a program</quote> and inserting <quote>a farmable wetland program</quote>.</text> </paragraph></subsection><subsection id="HA8F814413F2D419EB4BF28DE11F25149"><enum>(b)</enum><header>Eligible acreage</header><text display-inline="yes-display-inline">Section 1231B(b)(1)(B) of the Food Security Act of 1985 (16 U.S.C. 3831b(b)(1)(B)) is amended by striking <quote>flow from a row crop agriculture drainage system</quote> and inserting <quote>surface and subsurface flow from row crop agricultural production</quote>.</text> </subsection><subsection id="HF3C94049567A42D0A0A645AAFA7A32D6"><enum>(c)</enum><header>Clerical amendments</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="id468A73109FF244FC8967DC49B8220C33"><enum>(1)</enum><text display-inline="yes-display-inline">by striking the heading and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H7E4FE04DBA934213BDA7C8717C1556D4" style="OLC"> <section id="HCB4AFB17344A4F16ACFF661D623EA53B"><enum>1231B.</enum><header>Farmable wetland program</header> </section><after-quoted-block>;</after-quoted-block></quoted-block> <continuation-text continuation-text-level="paragraph">and</continuation-text></paragraph><paragraph id="idCCB608C8E4134C03AF11CAD29A4A18FD"><enum>(2)</enum><text>in subsection (f)(2), by striking <quote>section 1234(c)(2)(B)</quote> and inserting <quote>section 1234(c)(2)(A)(ii)</quote>.</text> </paragraph></subsection></section><section id="H75F86E48B01544DDAD60FA723B9A7AD0"><enum>2003.</enum><header>Duties of owners and operators</header> <subsection id="HC0EA3B3164364DB9BDDD6AA41C3FD48B"><enum>(a)</enum><header>Limitation on harvesting, grazing or commercial use of forage</header><text display-inline="yes-display-inline">Section 1232(a)(8) of the Food Security Act of 1985 (16 U.S.C. 3832(a)(8)) is amended by striking <quote>except that</quote> and all that follows through the semicolon at the end of the paragraph and inserting <quote>except as provided in section 1233(b);</quote>.</text> </subsection><subsection id="H0EB172548BBF45A1BCE9151CEE76A48F"><enum>(b)</enum><header>Conservation plan requirements</header><text display-inline="yes-display-inline">Section 1232 of the Food Security Act of 1985 (16 U.S.C. 3832) is amended by striking subsection (b) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HF5DFDA6623D24D488EE92EC76B7D79B8" style="OLC"> <subsection id="HA47AB881D73D46079FB1C9A1B6AE9820"><enum>(b)</enum><header>Conservation plans</header><text display-inline="yes-display-inline">The plan referred to in subsection (a)(1) shall set forth—</text> <paragraph id="HB5F08A7F5AB546ADA51EEE616F722AB3"><enum>(1)</enum><text>the conservation measures and practices to be carried out by the owner or operator during the term of the contract; and</text> </paragraph><paragraph id="HF0DDB6E673974772BB8B617F2245C6C4"><enum>(2)</enum><text>the commercial use, if any, to be permitted on the land during the term.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H655A1A09F56D4D108011BB801C2F43ED"><enum>(c)</enum><header>Rental payment reduction</header><text display-inline="yes-display-inline">Section 1232 of the Food Security Act of 1985 (16 U.S.C. 3832) is amended by striking subsection (d).</text> </subsection></section><section id="HF7FFA4588A044851892E5E790E2C8869"><enum>2004.</enum><header>Duties of the Secretary</header><text display-inline="no-display-inline">Section 1233 of the Food Security Act of 1985 (16 U.S.C. 3833) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HD8546DC80D644F9E8339DD23BFFF293A" style="OLC"> <section id="HCA6EB410D68D4443B67E05FB859D8D75"><enum>1233.</enum><header>Duties of the Secretary</header> <subsection id="H4E0E3EBFBD4149D29EF59EB74C8516E2"><enum>(a)</enum><header>Cost-share and rental payments</header><text display-inline="yes-display-inline">In return for a contract entered into by an owner or operator, the Secretary shall—</text> <paragraph id="H9AEB890735AA4B4C84E7EB5047491357"><enum>(1)</enum><text>share the cost of carrying out the conservation measures and practices set forth in the contract for which the Secretary determines that cost sharing is appropriate and in the public interest; and</text> </paragraph><paragraph id="H314D31DBE95F4CB7B38EB62863366A60"><enum>(2)</enum><text>for a period of years not in excess of the term of the contract, pay an annual rental payment in an amount necessary to compensate for—</text> <subparagraph id="H2521C1BDEF534105AC3A40F4A088EDE7"><enum>(A)</enum><text>the conversion of highly erodible cropland or other eligible land normally devoted to the production of an agricultural commodity on a farm or ranch to a less intensive use;</text> </subparagraph><subparagraph commented="no" id="HA5A98BAAB66D490F94669145A2E41118"><enum>(B)</enum><text display-inline="yes-display-inline">the retirement of any cropland base and allotment history that the owner or operator agrees to retire permanently; and</text> </subparagraph><subparagraph commented="no" id="H957A694167444A398417B33182AE1753"><enum>(C)</enum><text>the development and management of grassland for multiple natural resource conservation benefits, including soil, water, air, and wildlife.</text> </subparagraph></paragraph></subsection><subsection id="HD3958A90C8754493AAD0C22AA86E20AD"><enum>(b)</enum><header>Specified activities permitted</header><text display-inline="yes-display-inline">The Secretary shall permit certain activities or commercial uses of land that is subject to the contract if those activities or uses are consistent with a plan approved by the Secretary and include—</text> <paragraph id="H7EEDC2E308454679B941497DE464994D"><enum>(1)</enum><text>harvesting, grazing, or other commercial use of the forage in response to drought, flooding, or other emergency without any reduction in the rental rate;</text> </paragraph><paragraph id="id71B4BC4ED9474EF7B0FCC295D549437B"><enum>(2)</enum><text>grazing by livestock of a beginning farmer or rancher without any reduction in the rental rate, if the grazing is—</text> <subparagraph id="id53DF8C83F26D48E4B20BEAFD8DAFD77E"><enum>(A)</enum><text>consistent with the conservation of soil, water quality, and wildlife habitat (including habitat during the primary nesting season for critical birds in the area); and</text> </subparagraph><subparagraph id="id6080F49AE79647E6B51FEFCD45EC6E2B"><enum>(B)</enum><text>described in subparagraph (B) or (C) of paragraph (3);</text> </subparagraph></paragraph><paragraph id="HF6BCCE9E54C84FB3A94CFF0B12BB6675"><enum>(3)</enum><text display-inline="yes-display-inline">consistent with the conservation of soil, water quality, and wildlife habitat (including habitat during the primary nesting season for critical birds in the area) and in exchange for a reduction of not less than 25 percent in the annual rental rate for the acres covered by the authorized activity—</text> <subparagraph id="H1CC42213410B4D9EA04B2052B55553BD"><enum>(A)</enum><text>managed harvesting and other commercial use (including the managed harvesting of biomass), except that in permitting those activities the Secretary, in coordination with the State technical committee—</text> <clause id="HAEDB542FD5634EF09A740ADD7B391B8E"><enum>(i)</enum><text>shall develop appropriate vegetation management requirements; and</text> </clause><clause id="HC522534BCF29440DA7452BB0282D3922"><enum>(ii)</enum><text>shall identify periods during which the activities may be conducted, such that the frequency is at least once every 5 years but not more than once every 3 years;</text> </clause></subparagraph><subparagraph id="H9EF1217B44AE45CCA3FCDC9AC29730B8"><enum>(B)</enum><text>prescribed grazing for the control of invasive species, which may be conducted annually;</text> </subparagraph><subparagraph id="idFBD087C0A1724DA8B87ADF582D7690BF"><enum>(C)</enum><text>routine grazing, except that in permitting routine grazing, the Secretary, in coordination with the State technical committee—</text> <clause id="H010B33CC9CD4422E94D7C28B8B991989"><enum>(i)</enum><text>shall develop appropriate vegetation management requirements and stocking rates for the land that are suitable for continued routine grazing; and</text> </clause><clause id="HEE7A0E4595BB4E6E874FC20AC74DDAAA"><enum>(ii)</enum><text>shall identify the periods during which routine grazing may be conducted, such that the frequency is not more than once every 2 years, taking into consideration regional differences such as—</text> <subclause id="HAC6ADFC47DA944C2AE01B7D7470DBB65"><enum>(I)</enum><text>climate, soil type, and natural resources;</text> </subclause><subclause id="H7D610A0FC8E545EE9F2AC7171CACB8B2"><enum>(II)</enum><text>the number of years that should be required between routine grazing activities; and</text> </subclause><subclause id="H2AC7A7FEA4A3446BB9494C4837C6A1D4"><enum>(III)</enum><text>how often during a year in which routine grazing is permitted that routine grazing should be allowed to occur; and</text> </subclause></clause></subparagraph><subparagraph id="H8947DEFD27B44DDCB76FE12A9006AD68"><enum>(D)</enum><text>the installation of wind turbines and associated access, except that in permitting the installation of wind turbines, the Secretary shall determine the number and location of wind turbines that may be installed, taking into account—</text> <clause id="H7D6F5E3731B64F01BF7FA84DB6D36EA7"><enum>(i)</enum><text>the location, size, and other physical characteristics of the land;</text> </clause><clause id="H1C2B04F8F56B4B378FB836A452146193"><enum>(ii)</enum><text>the extent to which the land contains threatened or endangered wildlife and wildlife habitat; and</text> </clause><clause id="H88123AFBFA194B48A323302FCC573FE3"><enum>(iii)</enum><text>the purposes of the conservation reserve program under this subchapter; and</text> </clause></subparagraph></paragraph><paragraph id="H9F98CEB9E7814A9A8BFE5FFE69945D98"><enum>(4)</enum><text>the intermittent and seasonal use of vegetative buffer practices incidental to agricultural production on land adjacent to the buffer such that the permitted use does not destroy the permanent vegetative cover.</text> </paragraph></subsection><subsection id="H415483B5EA6E48EF9BEFA5EE71C266DD"><enum>(c)</enum><header>Authorized activities on grassland</header><text display-inline="yes-display-inline">Notwithstanding section 1232(a)(8), for eligible land described in section 1231(b)(3), the Secretary shall permit the following activities:</text> <paragraph id="H4E1E72A5D2C44B3D93CADF722F8CA9BB"><enum>(1)</enum><text>Common grazing practices, including maintenance and necessary cultural practices, on the land in a manner that is consistent with maintaining the viability of grassland, forb, and shrub species appropriate to that locality.</text> </paragraph><paragraph id="HFC992E803DDA4CD1B67FF2D287120059"><enum>(2)</enum><text>Haying, mowing, or harvesting for seed production, subject to appropriate restrictions during the primary nesting season for critical birds in the area.</text> </paragraph><paragraph id="H5B600DCFAA1749C49DD665912F48580A"><enum>(3)</enum><text>Fire presuppression, rehabilitation, and construction of fire breaks.</text> </paragraph><paragraph id="H832EB708D7714D12966A747D2E674BD8"><enum>(4)</enum><text>Grazing-related activities, such as fencing and livestock watering.</text> </paragraph></subsection><subsection id="H8586859E81AB41929CC82455DA621BBD"><enum>(d)</enum><header>Resource conserving use</header> <paragraph id="H9DDAA11DCC6245AC90542CEB79866261"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Beginning on the date that is 1 year before the date of termination of a contract under the program, the Secretary shall allow an owner or operator to make conservation and land improvements that facilitate maintaining protection of highly erodible land after expiration of the contract.</text> </paragraph><paragraph id="H1A3AD384EBF540B6B5C4B9211379AF42"><enum>(2)</enum><header>Conservation plan</header><text>The Secretary shall require an owner or operator carrying out the activities described in paragraph (1) to develop and implement a conservation plan.</text> </paragraph><paragraph id="H4CCA53C832F54AE7BF7BD6DD6E0D71FD"><enum>(3)</enum><header>Reenrollment prohibited</header><text>Land altered under paragraph (1) may not be reenrolled in the conservation reserve program for 5 years.</text> </paragraph><paragraph id="H7E3F350C20094E5D8D25539403F189EB"><enum>(4)</enum><header>Payment</header><text>The Secretary shall provide an annual payment that is reduced in an amount commensurate with any income or other compensation received as a result of the activities carried out under paragraph (1).</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H629B6B34413640E099CDC81156F6DFA7"><enum>2005.</enum><header>Payments</header> <subsection id="H542DF882E2794F3E90DAB06106AC3148"><enum>(a)</enum><header>Trees, windbreaks, shelterbelts, and wildlife corridors</header><text display-inline="yes-display-inline">Section 1234(b)(3)(A) of the Food Security Act of 1985 (16 U.S.C. 3834(b)(3)(A)) is amended—</text> <paragraph id="H3B90C4507A3D4680A44897F7817949A1"><enum>(1)</enum><text>in clause (i), by inserting <quote>and</quote> after the semicolon;</text> </paragraph><paragraph id="H15D488FC1B4D4DFDB5D51D08CC28CE8B"><enum>(2)</enum><text>by striking clause (ii); and</text> </paragraph><paragraph id="HDB1C27E518024AC3B6272B83C675C873"><enum>(3)</enum><text>by redesignating clause (iii) as clause (ii).</text> </paragraph></subsection><subsection id="id782C282D7CF5450681DAD6EE5E65FB6F"><enum>(b)</enum><header>Incentives</header><text>Section 1234(b)(3)(B) of the Food Security Act of 1985 (16 U.S.C. 3834(b)(3)(B)) is amended—</text> <paragraph id="id33D52CBF0B74436E8447C5F67732CE98"><enum>(1)</enum><text>in clause (i), by inserting <quote>, practices to improve the condition of resources on the land,</quote> after <quote>operator)</quote>; and</text> </paragraph><paragraph id="id0e9223be953c4b36a08de57e5d90ef09"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id7a22f94b56d04a94b86c0f2621330f1f" style="OLC"> <clause id="ida63f3639ef78440b83d27c3400bebaf0"><enum>(iii)</enum><header>Incentives</header><text>In making rental payments to an owner or operator of land described in subparagraph (A), the Secretary may provide incentive payments sufficient to encourage proper thinning and practices to improve the condition of resources on the land.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H0C17AAC984BF43198597540D1265B45D"><enum>(c)</enum><header>Annual rental payments</header><text display-inline="yes-display-inline">Section 1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is amended—</text> <paragraph id="H0ABBDB18E9CE469887ACA2F2A991BAFB"><enum>(1)</enum><text>in paragraph (1), by inserting <quote>and other eligible land</quote> after <quote>highly erodible cropland</quote> both places it appears;</text> </paragraph><paragraph id="H8B45A8ECF8E5467B81139D74940F8A17"><enum>(2)</enum><text>by striking paragraph (2) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HD1534014A0844A93893915344505043E" style="OLC"> <paragraph id="HD47D2835EB564043A6D22CF0C5E09F25"><enum>(2)</enum><header>Methods of Determination</header> <subparagraph id="HB9A28904D2444DF4B832D2B787FC77D9"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The amounts payable to owners or operators in the form of rental payments under contracts entered into under this subchapter may be determined through—</text> <clause id="H8C29F6BA2F3442B8B058E8904EC67E4A"><enum>(i)</enum><text>the submission of bids for such contracts by owners and operators in such manner as the Secretary may prescribe; or</text> </clause><clause id="HC056DDACB02A406E90A028D973D1C9B0"><enum>(ii)</enum><text>such other means as the Secretary determines are appropriate.</text> </clause></subparagraph><subparagraph id="HBF363CB2C5B443CD8AA9F86C04BCDD3D"><enum>(B)</enum><header>Grassland</header><text>In the case of eligible land described in section 1231(b)(3), the Secretary shall make annual payments in an amount that is not more than 75 percent of the grazing value of the land covered by the contract.</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="idED985FA13AA747F5AF63B0073596A19F"><enum>(3)</enum><text>in paragraph (5)(A)—</text> <subparagraph id="id2EC28D36E40241E090478181269CEB9A"><enum>(A)</enum><text>by striking <quote>The Secretary</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idDC3E82ABA0BB4F749C411540A18DF21E" style="OLC"> <clause id="id0D24AED7397D4A9CB629C7B07EDC1914"><enum>(i)</enum><header>Survey</header><text>The Secretary</text> </clause><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph><subparagraph id="idD7651191E4D84E0D82D45BE9FB4751D5"><enum>(B)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id241EF0627D8E45D59B56A8D261752542" style="OLC"> <clause id="id1386A898A66545E780B8D2E8579F485E"><enum>(ii)</enum><header>Use</header><text>The Secretary may use the survey of dryland cash rental rates described in clause (i) as a factor in determining rental rates under this section as the Secretary determines appropriate.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection id="HC15CE292A0874644AE3A482F7F66FAD5"><enum>(d)</enum><header>Payment schedule</header><text display-inline="yes-display-inline">Section 1234 of the Food Security Act of 1985 (16 U.S.C. 3834) is amended by striking subsection (d) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H15E5FF2B745B4D63964030160E7D2736" style="OLC"> <subsection id="HA43447C0DB4F49C09CA8AE31C597F4E4"><enum>(d)</enum><header>Payment schedule</header> <paragraph id="H43C302456CC54B0799AB258A886E2D91"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this section, payments under this subchapter shall be made in cash in such amount and on such time schedule as is agreed on and specified in the contract.</text> </paragraph><paragraph id="HD35ADAA2B9F14245B3E452C35E67C659"><enum>(2)</enum><header>Source</header><text display-inline="yes-display-inline">Payments under this subchapter shall be made using the funds of the Commodity Credit Corporation.</text> </paragraph><paragraph id="HA2945A404D3D4C38B7AC089AC5053A46"><enum>(3)</enum><header>Advance payment</header><text display-inline="yes-display-inline">Payments under this subchapter may be made in advance of determination of performance.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HF5A3EB959F274A218FA2F0E9D9F25DA3"><enum>(e)</enum><header>Payment limitation</header><text display-inline="yes-display-inline">Section 1234(f) of the Food Security Act of 1985 (16 U.S.C. 3834(f)) is amended—</text> <paragraph id="H6B1517E5F8DC49779143FE6C615361DD"><enum>(1)</enum><text>in paragraph (1), by striking <quote>, including rental payments made in the form of in-kind commodities,</quote>;</text> </paragraph><paragraph id="HAF6F5CB8A7574F19A4FE20EF84D61E65"><enum>(2)</enum><text>by striking paragraph (3); and</text> </paragraph><paragraph id="H49C7661DFCB84AA89B77C04BB46AD993"><enum>(3)</enum><text>by redesignating paragraph (4) as paragraph (2).</text> </paragraph></subsection></section><section id="H00D6571B3D3D49EF9D15B70BE3160E82"><enum>2006.</enum><header>Contract requirements</header><text display-inline="no-display-inline">Section 1235(f) of the Food Security Act of 1985 (16 U.S.C. 3835(f)) is amended—</text> <paragraph id="H0AD3ED65DCEB4DF0BEEE1ADBE239B48B"><enum>(1)</enum><text>in paragraph (1)—</text> <subparagraph id="HA7EB14BE757E466C9EDE955C123081E3"><enum>(A)</enum><text>in the matter preceding subparagraph (A), by striking <quote><header-in-text level="paragraph" style="OLC">Duties</header-in-text></quote> and all that follows through <quote>a beginning farmer</quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Transition to covered farmer or rancher</header-in-text>.—In the case of a contract modification approved in order to facilitate the transfer of land subject to a contract from a retired farmer or rancher to a beginning farmer</quote>;</text> </subparagraph><subparagraph commented="no" id="HD0B98E35E45348A98028A4EAAF922803"><enum>(B)</enum><text>in subparagraph (D), by striking <quote>the farmer or rancher</quote> and inserting <quote>the covered farmer or rancher</quote>; and</text> </subparagraph><subparagraph id="H83DD87206BD34DC9848B78B91719FE33"><enum>(C)</enum><text>in subparagraph (E), by striking <quote>section 1001A(b)(3)(B)</quote> and inserting <quote>section 1001</quote>; and</text> </subparagraph></paragraph><paragraph id="H0566DD402DD44020806C80AEDCDCDDF3"><enum>(2)</enum><text>in paragraph (2), by striking <quote>requirement of section 1231(h)(4)(B)</quote> and inserting <quote>option provided under section 1234(c)(2)(A)(ii)</quote>.</text> </paragraph></section><section id="H479C61D27E9240CB8BF2FF23315D35B4"><enum>2007.</enum><header>Conversion of land subject to contract to other conserving uses</header><text display-inline="no-display-inline">Section 1235A of the Food Security Act of 1985 (16 U.S.C. 3835a) is repealed.</text> </section><section commented="no" id="H34923E60E28D4D64AF5D261BADEBD8D7"><enum>2008.</enum><header>Effective date</header> <subsection commented="no" id="HD6F3F0653EAA43CEA81AFDFDA1BAE958"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The amendments made by this title shall take effect on October 1, 2012, except, the amendment made by section 2001(d), which shall take effect on the date of enactment of this Act.</text> </subsection><subsection commented="no" id="H5335B4F27E1F40869D4D517C2A6D5EB8"><enum>(b)</enum><header>Effect on existing contracts</header> <paragraph commented="no" id="idC76BA8994ED648EAAD2B8655CD928D86"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), the amendments made by this title shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) before October 1, 2012, or any payments required to be made in connection with the contract.</text> </paragraph><paragraph commented="no" id="idC1175B3A26284BED92595DC8E75F2C1F"><enum>(2)</enum><header>Updating of existing contracts</header><text>The Secretary shall permit an owner or operator with a contract entered into under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) before October 1, 2012, to update the contract to reflect the activities and uses of land under contract permitted under the terms and conditions of paragraphs (1) and (2) of section 1233(b) of that Act (as amended by section 2004).</text> </paragraph></subsection></section></subtitle><subtitle id="H629632BA80334256BC826A793BB380DD"><enum>B</enum><header>Conservation Stewardship Program</header> <section id="HA3676EA7D7E44C7E93DB31C3005BC276" section-type="subsequent-section"><enum>2101.</enum><header>Conservation stewardship program</header> <subsection id="HA962202AAAEE4077AD9976B7C8504BEC"><enum>(a)</enum><header>Revision of current program</header><text display-inline="yes-display-inline">Subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838d et seq.) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H12899DD311474057BA7BCC553892F17F" style="OLC"> <subchapter id="HA3771636819C4519A429DB3A792A272E"><enum>B</enum><header>Conservation stewardship program</header> <section id="H72FE0496AA304CB89527DBBFD4958D7D"><enum>1238D.<?LEXA-Enum 1238D.?></enum><header>Definitions</header><text display-inline="no-display-inline">In this subchapter:</text> <paragraph id="H08384DB6243B470C86A428D7EF468CC9"><enum>(1)</enum><header>Agricultural operation</header><text>The term <quote>agricultural operation</quote> means all eligible land, whether or not contiguous, that is—</text> <subparagraph id="H57D39D5458844E58ACE2AC913EF7AF83"><enum>(A)</enum><text>under the effective control of a producer at the time the producer enters into a contract under the program; and</text> </subparagraph><subparagraph id="HE1E99DA284CF446190D363CA9E63FEFE"><enum>(B)</enum><text>operated with equipment, labor, management, and production or cultivation practices that are substantially separate from other agricultural operations, as determined by the Secretary.</text> </subparagraph></paragraph><paragraph id="HB14B85CCCFD14E3D946275176C5CA2A3"><enum>(2)</enum><header>Conservation activities</header> <subparagraph id="HA644B66DADD34927BA9E9A26C8638AC1"><enum>(A)</enum><header>In general</header><text>The term <quote>conservation activities</quote> means conservation systems, practices, or management measures.</text> </subparagraph><subparagraph id="HD606869D1A65431B8548A64B5DABC397"><enum>(B)</enum><header>Inclusions</header><text>The term <quote>conservation activities</quote> includes—</text> <clause id="H8D94BBD0FBB84F68BAE5C87421FD3FFD"><enum>(i)</enum><text>structural measures, vegetative measures, and land management measures, including agriculture drainage management systems, as determined by the Secretary; and</text> </clause><clause id="HAC7DFC63C0B747C7BF55920F7D8E5325"><enum>(ii)</enum><text>planning needed to address a priority resource concern.</text> </clause></subparagraph></paragraph><paragraph id="HCAB4F7C0D4474F81B5A31AA669603311"><enum>(3)</enum><header>Conservation stewardship plan</header><text>The term <quote>conservation stewardship plan</quote> means a plan that—</text> <subparagraph id="HB0EDA5FA2E90476A9405A5CAD91F3196"><enum>(A)</enum><text>identifies and inventories priority resource concerns;</text> </subparagraph><subparagraph id="H75BFC14A8F274F2F8964A43C44CD68FF"><enum>(B)</enum><text>establishes benchmark data and conservation objectives;</text> </subparagraph><subparagraph id="H9984577785B84F4197A9AE3C2298F558"><enum>(C)</enum><text>describes conservation activities to be implemented, managed, or improved; and</text> </subparagraph><subparagraph id="H04BAD61D711D4712A7E29DB1CDD9F5DC"><enum>(D)</enum><text>includes a schedule and evaluation plan for the planning, installation, and management of the new and existing conservation activities.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HEBB31301CBC245A793FF8A332FEE56F4"><enum>(4)</enum><header>Eligible land</header> <subparagraph id="HB6D64B901D254F52A3026B85C8D85711"><enum>(A)</enum><header>In general</header><text>The term <quote>eligible land</quote> means—</text> <clause id="H48FDB01C92EC44188E023DC2287A6F01"><enum>(i)</enum><text>private and tribal land on which agricultural commodities, livestock, or forest-related products are produced; and</text> </clause><clause id="H2395043ACD2D43509DE2CB6E28B853E6"><enum>(ii)</enum><text>land associated with the land described in clause (i) on which priority resource concerns could be addressed through a contract under the program.</text> </clause></subparagraph><subparagraph id="H29D55523179E40C1B556979B76F77643"><enum>(B)</enum><header>Inclusions</header><text>The term <quote>eligible land</quote> includes—</text> <clause id="H167BC4647F214732B705BFB7CEFDA43C"><enum>(i)</enum><text>cropland;</text> </clause><clause id="H001B4AC2EB764861A3401E3F66392546"><enum>(ii)</enum><text>grassland;</text> </clause><clause id="H9E004B73269A403B94C3AF9EE4807D9F"><enum>(iii)</enum><text>rangeland;</text> </clause><clause id="H3A3A9ED896284A69AD7F2BA96B2DEC16"><enum>(iv)</enum><text>pastureland;</text> </clause><clause id="HA1C2BBA9366A427A9DE709507A6CA644"><enum>(v)</enum><text>nonindustrial private forest land; and</text> </clause><clause id="H128B56491ECF4B2C9AE0514C1D684E84"><enum>(vi)</enum><text>other agricultural land (including cropped woodland, marshes, and agricultural land used for the production of livestock), as determined by the Secretary.</text> </clause></subparagraph></paragraph><paragraph id="HDB7A147167334637AE0BB257073B5B51"><enum>(5)</enum><header>Priority resource concern</header><text>The term <quote>priority resource concern</quote> means a natural resource concern or problem, as determined by the Secretary, that—</text> <subparagraph id="H9990EBFAF91E45E38ED826BC2758B9AC"><enum>(A)</enum><text>is identified at the national, State or local level, as a priority for a particular area of the State;</text> </subparagraph><subparagraph id="H0ECB5E3A615742E5834A154224155D29"><enum>(B)</enum><text>represents a significant concern in a State or region; and</text> </subparagraph><subparagraph id="H6411F668217D4CA6AA8753C639FFFAD8"><enum>(C)</enum><text>is likely to be addressed successfully through the implementation of conservation activities under this program.</text> </subparagraph></paragraph><paragraph id="H98DA04B5DAE14E019FBECE8300AC1935"><enum>(6)</enum><header>Program</header><text>The term <quote>program</quote> means the conservation stewardship program established by this subchapter.</text> </paragraph><paragraph id="H23EF53428F00478DBE17ED37F5266C2A"><enum>(7)</enum><header>Stewardship threshold</header><text>The term <quote>stewardship threshold</quote> means the level of management required, as determined by the Secretary, to conserve and improve the quality and condition of a natural resource.</text> </paragraph></section><section id="HBBCDB5C8C7AE464188604F129454BCC3"><enum>1238E.<?LEXA-Enum 1238E.?></enum><header>Conservation stewardship program</header> <subsection id="HE5E21E1911664F77887D7F70EC5637D9"><enum>(a)</enum><header>Establishment and purpose</header><text>During each of fiscal years 2013 through 2017, the Secretary shall carry out a conservation stewardship program to encourage producers to address priority resource concerns and improve and conserve the quality and condition of natural resources in a comprehensive manner—</text> <paragraph id="H8E70E75DC7C14B3FB52737D7FD2BA547"><enum>(1)</enum><text>by undertaking additional conservation activities; and</text> </paragraph><paragraph id="H318CBED3C16E417DB4A4533FCC91F362"><enum>(2)</enum><text>by improving, maintaining, and managing existing conservation activities.</text> </paragraph></subsection><subsection id="H7B0BE1D5855944188737895D22738909"><enum>(b)</enum><header>Exclusions</header> <paragraph id="HD0254188C3064477A359B03E68A880F1"><enum>(1)</enum><header>Land enrolled in other conservation programs</header><text>Subject to paragraph (2), the following land (even if covered by the definition of eligible land) is not eligible for enrollment in the program:</text> <subparagraph id="H91A1232459D842BBA4E34702A13FEB43"><enum>(A)</enum><text>Land enrolled in the conservation reserve program.</text> </subparagraph><subparagraph id="H655831D7BBCF433EB969934EF0707E3F"><enum>(B)</enum><text>Land enrolled in the Agricultural Conservation Easement Program in a wetland easement.</text> </subparagraph><subparagraph id="H3E0234464DE44784B81D69D4A41FA6D7"><enum>(C)</enum><text>Land enrolled in the conservation security program.</text> </subparagraph></paragraph><paragraph id="H568604BF8D5048A8B1B9275C89F2F93D"><enum>(2)</enum><header>Conversion to cropland</header><text>Eligible land used for crop production after October 1, 2012, that had not been planted, considered to be planted, or devoted to crop production for at least 4 of the 6 years preceding that date shall not be the basis for any payment under the program, unless the land does not meet the requirement because—</text> <subparagraph id="H050A8D413EB84810851E71DD71E07748"><enum>(A)</enum><text>the land had previously been enrolled in the conservation reserve program;</text> </subparagraph><subparagraph id="H5440CB7468EA477C9F84B3ECEA1EF385"><enum>(B)</enum><text>the land has been maintained using long-term crop rotation practices, as determined by the Secretary; or</text> </subparagraph><subparagraph id="H0577E81AEA144D3CAEC1B082DD263B0A"><enum>(C)</enum><text>the land is incidental land needed for efficient operation of the farm or ranch, as determined by the Secretary.</text> </subparagraph></paragraph></subsection></section><section id="H3C345D3763054594A0DA10F98AC39C39"><enum>1238F.<?LEXA-Enum 1238F.?></enum><header>Stewardship contracts</header> <subsection id="H08C4BFA7667944C994DC839392E7CB00"><enum>(a)</enum><header>Submission of contract offers</header><text>To be eligible to participate in the conservation stewardship program, a producer shall submit a contract offer for the agricultural operation that—</text> <paragraph id="HD222ADC0F5554C42AD61056131136CE0"><enum>(1)</enum><text>demonstrates to the satisfaction of the Secretary that the producer, at the time of the contract offer, is meeting the stewardship threshold for at least 2 priority resource concerns; and</text> </paragraph><paragraph id="H0917EF773E4E4E5C898A80D9DC5E2CE1"><enum>(2)</enum><text>would, at a minimum, meet or exceed the stewardship threshold for at least 1 additional priority resource concern by the end of the stewardship contract by—</text> <subparagraph id="H6B6770DA701D492B9D2617C971E8AF14"><enum>(A)</enum><text>installing and adopting additional conservation activities; and</text> </subparagraph><subparagraph id="H6F77D3430F6442B0A4EA2A0787AFC008"><enum>(B)</enum><text>improving, maintaining, and managing existing conservation activities on the agricultural operation in a manner that increases or extends the conservation benefits in place at the time the contract offer is accepted by the Secretary.</text> </subparagraph></paragraph></subsection><subsection id="H6B41E8ED39ED4B2D98AC44B9D0C79201"><enum>(b)</enum><header>Evaluation of contract offers</header> <paragraph id="H545B6C85524942C381FFABE78EE277A1"><enum>(1)</enum><header>Ranking of applications</header><text>In evaluating contract offers the Secretary shall rank applications based on—</text> <subparagraph id="HC7DE2F73C6C54BC2852DC380337CF845"><enum>(A)</enum><text>the level of conservation treatment on all applicable priority resource concerns at the time of application;</text> </subparagraph><subparagraph id="H517794948AE84488B9D89961D04DBABD"><enum>(B)</enum><text>the degree to which the proposed conservation activities effectively increase conservation performance;</text> </subparagraph><subparagraph id="H7C316D61E95A4F0B99C08DB792E81A8E"><enum>(C)</enum><text>the number of applicable priority resource concerns proposed to be treated to meet or exceed the stewardship threshold by the end of the contract;</text> </subparagraph><subparagraph id="H95A4E44EEEB04BFDA517FBD8375CE90A"><enum>(D)</enum><text>the extent to which other priority resource concerns will be addressed to meet or exceed the stewardship threshold by the end of the contract period;</text> </subparagraph><subparagraph id="H952438D39AE041A09B62C87C799D7E2E"><enum>(E)</enum><text>the extent to which the actual and anticipated conservation benefits from the contract are provided at the least cost relative to other similarly beneficial contract offers; and</text> </subparagraph><subparagraph id="H481B31C6AE6E4A03BF4E1B91AE063E73"><enum>(F)</enum><text>the extent to which priority resource concerns will be addressed when transitioning from the conservation reserve program to agricultural production.</text> </subparagraph></paragraph><paragraph id="H2AE8F3387E34491F9082101081A49540"><enum>(2)</enum><header>Prohibition</header><text>The Secretary may not assign a higher priority to any application because the applicant is willing to accept a lower payment than the applicant would otherwise be eligible to receive.</text> </paragraph><paragraph id="H2302B32846154AC9A9FB46432F7D6F95"><enum>(3)</enum><header>Additional criteria</header><text>The Secretary may develop and use such additional criteria that the Secretary determines are necessary to ensure that national, State, and local priority resource concerns are effectively addressed.</text> </paragraph></subsection><subsection id="HDBA222AD19AE4A31A786D7BD1E34DA72"><enum>(c)</enum><header>Entering into contracts</header><text>After a determination that a producer is eligible for the program under subsection (a), and a determination that the contract offer ranks sufficiently high under the evaluation criteria under subsection (b), the Secretary shall enter into a conservation stewardship contract with the producer to enroll the eligible land to be covered by the contract.</text> </subsection><subsection id="H658825916EFA45749479025AA80AA2C2"><enum>(d)</enum><header>Contract provisions</header> <paragraph id="H2961B2DEEE7843048680883D9E2AA7D5"><enum>(1)</enum><header>Term</header><text>A conservation stewardship contract shall be for a term of 5 years.</text> </paragraph><paragraph id="H970507468E2C4E6D9C12B92F036C41A6"><enum>(2)</enum><header>Required provisions</header><text>The conservation stewardship contract of a producer shall—</text> <subparagraph id="HCCB533BC38C042CDB26B5C47AB76DAD5"><enum>(A)</enum><text>state the amount of the payment the Secretary agrees to make to the producer for each year of the conservation stewardship contract under section 1238G(d);</text> </subparagraph><subparagraph id="HAF2598CFA990491B8D6A118F6760B937"><enum>(B)</enum><text>require the producer—</text> <clause id="H839575FA89C143A4A432A913A6D46050"><enum>(i)</enum><text>to implement a conservation stewardship plan that describes the program purposes to be achieved through 1 or more conservation activities;</text> </clause><clause id="HB42B63B9FA8C4AAD9A6CC483B984640E"><enum>(ii)</enum><text>to maintain and supply information as required by the Secretary to determine compliance with the conservation stewardship plan and any other requirements of the program; and</text> </clause><clause id="H8CF5FBAA59DA46F19D904BB392A9E8BC"><enum>(iii)</enum><text>not to conduct any activities on the agricultural operation that would tend to defeat the purposes of the program;</text> </clause></subparagraph><subparagraph id="HBCA75CDAAC2340619684C06F7510564D"><enum>(C)</enum><text>permit all economic uses of the eligible land that—</text> <clause id="H1DC3EABF45C7436EA2BBFA0375A50519"><enum>(i)</enum><text>maintain the agricultural nature of the land; and</text> </clause><clause id="H8C6DF7BACD774D70BB47483B71913C3D"><enum>(ii)</enum><text>are consistent with the conservation purposes of the conservation stewardship contract;</text> </clause></subparagraph><subparagraph id="H29553D5DC4364EFBAEA6A195006F37CF"><enum>(D)</enum><text>include a provision to ensure that a producer shall not be considered in violation of the contract for failure to comply with the contract due to circumstances beyond the control of the producer, including a disaster or related condition, as determined by the Secretary;</text> </subparagraph><subparagraph id="H6D32002A0E2C40EA873C4680B7A2AF45"><enum>(E)</enum><text>include provisions where upon the violation of a term or condition of the contract at any time the producer has control of the land—</text> <clause id="H781E7BD32A61422194777661D96D1373"><enum>(i)</enum><text>if the Secretary determines that the violation warrants termination of the contract—</text> <subclause id="H5CC76B34DF194C4FA0A40A450913C8FA"><enum>(I)</enum><text>to forfeit all rights to receive payments under the contract; and</text> </subclause><subclause id="HD014318B435B4358B3B36BFAB60D612A"><enum>(II)</enum><text>to refund all or a portion of the payments received by the producer under the contract, including any interest on the payments, as determined by the Secretary; or</text> </subclause></clause><clause id="HD905A7593E18492EA76F093375BA518E"><enum>(ii)</enum><text>if the Secretary determines that the violation does not warrant termination of the contract, to refund or accept adjustments to the payments provided to the producer, as the Secretary determines to be appropriate;</text> </clause></subparagraph><subparagraph id="H7C7BC3B55393458F95D95D94816C5EA7"><enum>(F)</enum><text>include provisions in accordance with paragraphs (3) and (4) of this section; and</text> </subparagraph><subparagraph id="HE38F9E771DD64AE6AB743D4BF2027060"><enum>(G)</enum><text>include any additional provisions the Secretary determines are necessary to carry out the program.</text> </subparagraph></paragraph><paragraph id="HBA43C9E29A9241FF9FD4B43232A251FB"><enum>(3)</enum><header>Change of interest in land subject to a contract</header> <subparagraph id="H0795BD78280B4900A90C730A5EB4952A"><enum>(A)</enum><header>In general</header><text>At the time of application, a producer shall have control of the eligible land to be enrolled in the program. Except as provided in subparagraph (B), a change in the interest of a producer in eligible land covered by a contract under the program shall result in the termination of the contract with regard to that land.</text> </subparagraph><subparagraph id="HC7ED365F99CE4D6C8F8E59FD3630F8F2"><enum>(B)</enum><header>Transfer of duties and rights</header><text>Subparagraph (A) shall not apply if—</text> <clause id="HC7724D1601BD41248CA2D892A4C22750"><enum>(i)</enum><text>within a reasonable period of time (as determined by the Secretary) after the date of the change in the interest in all or a portion of the land covered by a contract under the program, the transferee of the land provides written notice to the Secretary that duties and rights under the contract have been transferred to, and assumed by, the transferee for the portion of the land transferred;</text> </clause><clause id="H73EDFE5D19B644C382030FEDE9801793"><enum>(ii)</enum><text>the transferee meets the eligibility requirements of the program; and</text> </clause><clause id="H1A9063FC06A94E9F939432B195558401"><enum>(iii)</enum><text>the Secretary approves the transfer of all duties and rights under the contract.</text> </clause></subparagraph></paragraph><paragraph id="H885EC72ACEC14AB7B8C1D65758D2FA9B"><enum>(4)</enum><header>Modification and termination of contracts</header> <subparagraph id="HED812764DDC04E0C8C1B202F004DBF8F"><enum>(A)</enum><header>Voluntary modification or termination</header><text>The Secretary may modify or terminate a contract with a producer if—</text> <clause id="HAEDAC2E11AE94EC29FEEA0D90A3B8F11"><enum>(i)</enum><text>the producer agrees to the modification or termination; and</text> </clause><clause id="HFD45579953D144D9BA6967D066A56476"><enum>(ii)</enum><text>the Secretary determines that the modification or termination is in the public interest.</text> </clause></subparagraph><subparagraph id="H3CA8C5A3762A442182273BB3D5F3EDEE"><enum>(B)</enum><header>Involuntary termination</header><text>The Secretary may terminate a contract if the Secretary determines that the producer violated the contract.</text> </subparagraph></paragraph><paragraph id="H84E8856C81D744A4A8540858ED215CEE"><enum>(5)</enum><header>Repayment</header><text>If a contract is terminated, the Secretary may, consistent with the purposes of the program—</text> <subparagraph id="HB0476B7FBB6549568E4CD5F1A0F9458D"><enum>(A)</enum><text>allow the producer to retain payments already received under the contract; or</text> </subparagraph><subparagraph id="H7FDEFA01F60C45538AE6C3A4815265BA"><enum>(B)</enum><text>require repayment, in whole or in part, of payments received and assess liquidated damages.</text> </subparagraph></paragraph></subsection><subsection id="HD9AA3431C303453E9C6ACD367D2CEAFF"><enum>(e)</enum><header>Contract renewal</header><text>At the end of the initial 5-year contract period, the Secretary may allow the producer to renew the contract for 1 additional 5-year period if the producer—</text> <paragraph id="H97D217064B974BF3A0BADCF44D84C71D"><enum>(1)</enum><text>demonstrates compliance with the terms of the existing contract;</text> </paragraph><paragraph id="HBDD5683C7D3A42F99D3197F21C4B5262"><enum>(2)</enum><text>agrees to adopt and continue to integrate conservation activities across the entire agricultural operation as determined by the Secretary; and</text> </paragraph><paragraph id="H7BA5563E02CF449F838F7A4B8B4DF21D"><enum>(3)</enum><text>agrees, at a minimum, to meet or exceed the stewardship threshold for at least 2 additional priority resource concerns on the agricultural operation by the end of the contract period.</text> </paragraph></subsection></section><section id="H056EE25494814BD398823412C18F113C"><enum>1238G.<?LEXA-Enum 1238G.?></enum><header>Duties of the secretary</header> <subsection id="H81C479482C8541CAB99D738657EFF51C"><enum>(a)</enum><header>In general</header><text>To achieve the conservation goals of a contract under the conservation stewardship program, the Secretary shall—</text> <paragraph id="HCA581BF2F2CA41FFA010C3F80405B451"><enum>(1)</enum><text>make the program available to eligible producers on a continuous enrollment basis with 1 or more ranking periods, 1 of which shall occur in the first quarter of each fiscal year;</text> </paragraph><paragraph id="HB9A3D4488B7341C09DB84A699A12CE2B"><enum>(2)</enum><text>identify not less than 5 priority resource concerns in a particular watershed or other appropriate region or area within a State; and</text> </paragraph><paragraph id="H039A33649754478AA4944AA4416E17FD"><enum>(3)</enum><text>establish a science-based stewardship threshold for each priority resource concern identified under subparagraph (2).</text> </paragraph></subsection><subsection id="H64EB16C267B94E399DC13431D5D12C07"><enum>(b)</enum><header>Allocation to states</header><text>The Secretary shall allocate acres to States for enrollment, based—</text> <paragraph id="HDBA4922DAC2841EE8A7CA68110815A44"><enum>(1)</enum><text>primarily on each State’s proportion of eligible land to the total acreage of eligible land in all States; and</text> </paragraph><paragraph id="H9862A46A1F4F4B2A99358914931BB310"><enum>(2)</enum><text>also on consideration of—</text> <subparagraph id="H8207FD90AC0749BCA051D661C52CA118"><enum>(A)</enum><text>the extent and magnitude of the conservation needs associated with agricultural production in each State;</text> </subparagraph><subparagraph id="HF567F32330DC49AB91227C2862037D34"><enum>(B)</enum><text>the degree to which implementation of the program in the State is, or will be, effective in helping producers address those needs; and</text> </subparagraph><subparagraph id="HACCE16E1056F431A91717C387F602BF7"><enum>(C)</enum><text>other considerations to achieve equitable geographic distribution of funds, as determined by the Secretary.</text> </subparagraph></paragraph></subsection><subsection commented="no" id="H680A0127BCE04A9C8B744B5CC354CBBE"><enum>(c)</enum><header>Acreage enrollment limitation</header><text>During the period beginning on October 1, 2012, and ending on September 30, 2021, the Secretary shall, to the maximum extent practicable—</text> <paragraph commented="no" id="H2E177162C91344D2A7C6100E8F959FF9"><enum>(1)</enum><text>enroll in the program an additional 10,348,000 acres for each fiscal year; and</text> </paragraph><paragraph commented="no" id="H438E0DC43CB64F39B9CF842DAA3BBDFC"><enum>(2)</enum><text>manage the program to achieve a national average rate of $18 per acre, which shall include the costs of all financial assistance, technical assistance, and any other expenses associated with enrollment or participation in the program.</text> </paragraph></subsection><subsection id="HA502E78DC4D249F29AA8AD5402066410"><enum>(d)</enum><header>Conservation stewardship payments</header> <paragraph id="HF66AA725C8C447A18C10410C47CAD7E6"><enum>(1)</enum><header>Availability of payments</header><text>The Secretary shall provide annual payments under the program to compensate the producer for—</text> <subparagraph id="H0F683FF2FF824E378721958C7DF5B267"><enum>(A)</enum><text>installing and adopting additional conservation activities; and</text> </subparagraph><subparagraph id="HFF839C3F41724BD898E9F7F596DE7335"><enum>(B)</enum><text>improving, maintaining, and managing conservation activities in place at the operation of the producer at the time the contract offer is accepted by the Secretary.</text> </subparagraph></paragraph><paragraph id="HED9D0EA72CFC41BF92684B925E9182DA"><enum>(2)</enum><header>Payment amount</header><text>The amount of the conservation stewardship annual payment shall be determined by the Secretary and based, to the maximum extent practicable, on the following factors:</text> <subparagraph id="H97F32A6CCB89411A8268EFE642545D8A"><enum>(A)</enum><text>Costs incurred by the producer associated with planning, design, materials, installation, labor, management, maintenance, or training.</text> </subparagraph><subparagraph id="HAD44C1D8614D4B389C87A23614D1A2B7"><enum>(B)</enum><text>Income forgone by the producer.</text> </subparagraph><subparagraph id="HFA2AC2D294F64EE3A4E2E94A0A65F239"><enum>(C)</enum><text>Expected conservation benefits.</text> </subparagraph><subparagraph id="HAAD7ED967820493482EF2332AFA3F2A0"><enum>(D)</enum><text>The extent to which priority resource concerns will be addressed through the installation and adoption of conservation activities on the agricultural operation.</text> </subparagraph><subparagraph id="H0A1CF22484CC46BEA252EDAE7CB1161D"><enum>(E)</enum><text>The level of stewardship in place at the time of application and maintained over the term of the contract.</text> </subparagraph><subparagraph id="HFB36EA7B76DD4D08A17721D8CB66ABF2"><enum>(F)</enum><text>The degree to which the conservation activities will be integrated across the entire agricultural operation for all applicable priority resource concerns over the term of the contract.</text> </subparagraph><subparagraph id="H03889C5D6AF341878B2026A18B8DC005"><enum>(G)</enum><text>Such other factors as determined by the Secretary.</text> </subparagraph></paragraph><paragraph id="H2EC8F690E52C4C23B0A74D161A8A4366"><enum>(3)</enum><header>Exclusions</header><text>A payment to a producer under this subsection shall not be provided for—</text> <subparagraph id="HBEB00150228E4DCD8616E477222D0C37"><enum>(A)</enum><text>the design, construction, or maintenance of animal waste storage or treatment facilities or associated waste transport or transfer devices for animal feeding operations; or</text> </subparagraph><subparagraph id="H56660E58FC2C4E588BDFB2AE82DD3EF7"><enum>(B)</enum><text>conservation activities for which there is no cost incurred or income forgone to the producer.</text> </subparagraph></paragraph><paragraph id="H81581DB7E7954CB9ACA2CEB6F507EA8C"><enum>(4)</enum><header>Delivery of payments</header><text>In making stewardship payments, the Secretary shall, to the extent practicable—</text> <subparagraph id="H75BD09BA9B884374A36555F20529EEFD"><enum>(A)</enum><text>prorate conservation performance over the term of the contract so as to accommodate, to the extent practicable, producers earning equal annual stewardship payments in each fiscal year; and</text> </subparagraph><subparagraph id="HB5C89BA4C8AD4F0AACA00204CCFDE2AA"><enum>(B)</enum><text>make stewardship payments as soon as practicable after October 1 of each fiscal year for activities carried out in the previous fiscal year.</text> </subparagraph></paragraph></subsection><subsection id="HF0C88D44FE7A4D7F894091E53C1F2D1F"><enum>(e)</enum><header>Supplemental payments for resource-conserving crop rotations</header> <paragraph id="H6A5A0525C3AF435492EA3752DA6BAE2C"><enum>(1)</enum><header>Availability of payments</header><text>The Secretary shall provide additional payments to producers that, in participating in the program, agree to adopt resource-conserving crop rotations to achieve beneficial crop rotations as appropriate for the eligible land of the producers.</text> </paragraph><paragraph id="H53B510C3BD3A48C794E90A779736822D"><enum>(2)</enum><header>Beneficial crop rotations</header><text>The Secretary shall determine whether a resource-conserving crop rotation is a beneficial crop rotation eligible for additional payments under paragraph (1), based on whether the resource-conserving crop rotation is designed to provide natural resource conservation and production benefits.</text> </paragraph><paragraph id="H00EA1FA13DAC47EAAE09CA22C3F2C302"><enum>(3)</enum><header>Eligibility</header><text>To be eligible to receive a payment described in paragraph (1), a producer shall agree to adopt and maintain the resource-conserving crop rotations for the term of the contract.</text> </paragraph><paragraph id="HC39BA933669749A7800831860482EC37"><enum>(4)</enum><header>Resource-conserving crop rotation</header><text>In this subsection, the term <quote>resource-conserving crop rotation</quote> means a crop rotation that—</text> <subparagraph id="HEAD69AF8901E4B1C8E8DA145B643F890"><enum>(A)</enum><text>includes at least 1 resource conserving crop (as defined by the Secretary);</text> </subparagraph><subparagraph id="H43B0B3D60DAC461FA950B956A7BCFE6E"><enum>(B)</enum><text>reduces erosion;</text> </subparagraph><subparagraph id="HA47A9616D8A8413EA18532E59E010DAC"><enum>(C)</enum><text>improves soil fertility and tilth;</text> </subparagraph><subparagraph id="H5D41587944014BC681E21AAF30A01639"><enum>(D)</enum><text>interrupts pest cycles; and</text> </subparagraph><subparagraph id="H213ADEAD91224B618F6186C79BB081C0"><enum>(E)</enum><text>in applicable areas, reduces depletion of soil moisture or otherwise reduces the need for irrigation.</text> </subparagraph></paragraph></subsection><subsection id="H7BBAB454C8A14C66B4C6D705E365CDC9"><enum>(f)</enum><header>Payment limitations</header><text>A person or legal entity may not receive, directly or indirectly, payments under the program that, in the aggregate, exceed $200,000 under all contracts entered into during fiscal years 2013 through 2017, excluding funding arrangements with Indian tribes, regardless of the number of contracts entered into under the program by the person or legal entity.</text> </subsection><subsection id="HE5A19F4DF17043FC9B8DA8544B32DFF2"><enum>(g)</enum><header>Specialty crop and organic producers</header><text>The Secretary shall ensure that outreach and technical assistance are available, and program specifications are appropriate to enable specialty crop and organic producers to participate in the program.</text> </subsection><subsection id="H542A5A607EC94658B7C9AE868FA0EAEB"><enum>(h)</enum><header>Coordination with organic certification</header><text>The Secretary shall establish a transparent means by which producers may initiate organic certification under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) while participating in a contract under the program.</text> </subsection><subsection id="H0BBA71A469B14E3F90803A470FDCAD8A"><enum>(i)</enum><header>Regulations</header><text>The Secretary shall promulgate regulations that—</text> <paragraph id="H3F18B4460F924944A162DD8349F183AD"><enum>(1)</enum><text>prescribe such other rules as the Secretary determines to be necessary to ensure a fair and reasonable application of the limitations established under subsection (f); and</text> </paragraph><paragraph id="HFF99E5E9F23645FF800DF8F5980D9EAA"><enum>(2)</enum><text>otherwise enable the Secretary to carry out the program.</text> </paragraph></subsection></section></subchapter><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HCBBCE13BEA4F438EBFF17DEBA90DF1C0"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall take effect on October 1, 2012.</text> </subsection><subsection id="HB1F3BEBBB0764DFBA550927B9EEDB0F8"><enum>(c)</enum><header>Effect on existing contracts</header> <paragraph id="id23CEB149D32846868F010397D64E8D29"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The amendment made by this section shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838d et seq.) before October 1, 2012, or any payments required to be made in connection with the contract.</text> </paragraph><paragraph commented="no" id="id071DEB944AAA4E808AE21836DA866D01"><enum>(2)</enum><header>Conservation stewardship program</header><text>Funds made available under section 1241(a)(4) of the Food Security Act of 1985 (16 U.S.C. 3841(a)(4)) (as amended by section 2601(a)) may be used to administer and make payments to program participants enrolled into contracts during any of fiscal years 2009 through 2012.</text> </paragraph></subsection></section></subtitle><subtitle id="HB9FF1AA9985A49A9A781434C84DE0539"><enum>C</enum><header>Environmental Quality Incentives Program</header> <section id="HA4179CE971FF464AACFF1A512CFF4D90"><enum>2201.</enum><header>Purposes</header><text display-inline="no-display-inline">Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is amended—</text> <paragraph id="HA2F5B023B19D41D98676C0CCB4DD3B00"><enum>(1)</enum><text>in paragraph (3)—</text> <subparagraph id="HA17C2B2490024648BED35B9639BDCBE8"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end;</text> </subparagraph><subparagraph id="HEC2735F09C4C45F4A447727644B3E2ED"><enum>(B)</enum><text>by redesignating subparagraph (B) as subparagraph (C) and, in such subparagraph, by inserting <quote>and</quote> after the semicolon; and</text> </subparagraph><subparagraph id="H8E3B30A22E004875A89F486C752569CE"><enum>(C)</enum><text>by inserting after subparagraph (A) the following:</text> <quoted-block display-inline="no-display-inline" id="H1888EB1C9AEE47B087E7AB233C048674" style="OLC"> <subparagraph id="H1D1EF372D237444B81197767B2234474"><enum>(B)</enum><text display-inline="yes-display-inline">develop and improve wildlife habitat; and</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H2316729CF8824092B9ABFBD8D0B91D1F"><enum>(2)</enum><text>in paragraph (4), by striking <quote>; and</quote> and inserting a period; and</text> </paragraph><paragraph id="H693DE0EEE3F14CBFBD8C5714E27A3E91"><enum>(3)</enum><text>by striking paragraph (5).</text> </paragraph></section><section id="HD31CDE4CAF434B07B1271B4C04D98931"><enum>2202.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa–1) is amended—</text> <paragraph id="H26939F842B81485A9107DC6FA77AEB1A"><enum>(1)</enum><text>by striking paragraph (2) and redesignating paragraphs (3) through (6) as paragraphs (2) through (5), respectively; and</text> </paragraph><paragraph id="H41014C0C124845668FD037CCAB26F63C"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2) (as so redesignated), by inserting <quote>established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.)</quote> after <quote>national organic program</quote>.</text> </paragraph></section><section id="H9BA476E4C10A4C45A0E204975C3202AB"><enum>2203.</enum><header>Establishment and administration</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="H4FFF4A65BD7B4515AC67175240051D5A"><enum>(1)</enum><text>in subsection (a), by striking <quote>2014</quote> and inserting <quote>2017</quote>;</text> </paragraph><paragraph id="HFFBD6FF0AC8F493EAF8F904791FC9A5C"><enum>(2)</enum><text>in subsection (b), by striking paragraph (2) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H5F2063FADD30478AA80EB8CECA2AD652" style="OLC"> <paragraph id="H6E61E6268E4A4F25B98C3CCC1404BF25"><enum>(2)</enum><header>Term</header><text display-inline="yes-display-inline">A contract under the program shall have a term that does not exceed 10 years.</text> </paragraph><after-quoted-block>; </after-quoted-block></quoted-block> </paragraph><paragraph id="H42467822235940978D9AF9678C4210AA"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (d)—</text> <subparagraph id="idd3077f187f6147afae5501a78dace108"><enum>(A)</enum><text>in paragraph (3), by striking subparagraphs (A) through (G) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id30208DA8742445E7B0737CAAC82C82E6" style="OLC"> <subparagraph id="id23ff4c96db954b0d8e46c86c2df370d0"><enum>(A)</enum><text>soil health;</text> </subparagraph><subparagraph id="id4a207634f0fa4f88a73724e11abb9de4"><enum>(B)</enum><text>water quality and quantity improvement;</text> </subparagraph><subparagraph id="id96F133D0D019484AB405E061229E4CEE"><enum>(C)</enum><text>nutrient management;</text> </subparagraph><subparagraph id="id10226d8a03054e84becd2f88218d481f"><enum>(D)</enum><text>pest management;</text> </subparagraph><subparagraph id="id45187598bbf14c48b506fa59ea038600"><enum>(E)</enum><text>air quality improvement;</text> </subparagraph><subparagraph id="ide77f5bb9cfae4fd58b4cb8b0b9179da0"><enum>(F)</enum><text>wildlife habitat development, including pollinator habitat;</text> </subparagraph><subparagraph id="idac3659ccaeae4d5097d42704c5405d66"><enum>(G)</enum><text>invasive species management; or</text> </subparagraph><subparagraph id="id6c8d008ee4454cad8b5dca15fa6db8ad"><enum>(H)</enum><text>other resource issues of regional or national significance, as determined by the Secretary.</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph><subparagraph id="idAB2D4679186D45EA82DC41C4C2F096A4"><enum>(B)</enum><text>in paragraph (4)—</text> <clause id="idF7693781DDEE41CD9A869ACFC8632F34"><enum>(i)</enum><text>in subparagraph (A) in the matter preceding clause (i), by inserting <quote>, veteran farmer or rancher (as defined in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e))),</quote> before <quote>or a beginning farmer or rancher</quote>; and</text> </clause><clause id="id894F3578E0F545B49B23D59E58285A54"><enum>(ii)</enum><text>by striking subparagraph (B) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H04E042A7223F4D27B3C23760FB7E172C" style="OLC"> <subparagraph id="H2A4AA2F31AA144A0AB9D05F283EF186E"><enum>(B)</enum><header>Advance payments</header> <clause id="H52B6D57B6AFA4E90BE0A7BFE341FD195"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Not more than 30 percent of the amount determined under subparagraph (A) may be provided in advance for the purpose of purchasing materials or contracting.</text> </clause><clause id="H6EDC9FBA54D94BD08B3F255100952D35"><enum>(ii)</enum><header>Return of funds</header><text display-inline="yes-display-inline">If funds provided in advance are not expended during the 90-day period beginning on the date of receipt of the funds, the funds shall be returned within a reasonable time frame, as determined by the Secretary.</text> </clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </clause></subparagraph></paragraph><paragraph id="H42E544DA44204644AB78ADB1BD4D2C43"><enum>(4)</enum><text display-inline="yes-display-inline">by striking subsection (f) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HE35B53885D054B35A9EDBA54D0475C7C" style="OLC"> <subsection id="H730CD94AC1FB4B7E82647B95265DC2A3"><enum>(f)</enum><header>Allocation of funding</header> <paragraph id="H611698BDB89F4C429D521C6C26C9843E"><enum>(1)</enum><header>Livestock</header><text display-inline="yes-display-inline">For each of fiscal years 2013 through 2017, at least 60 percent of the funds made available for payments under the program shall be targeted at practices relating to livestock production.</text> </paragraph><paragraph id="H851B92BD617D45499D5ED99B7FAFBC01"><enum>(2)</enum><header>Wildlife habitat</header><text display-inline="yes-display-inline">For each of fiscal years 2013 through 2017, at least 5 percent of the funds made available for payments under the program shall be targeted at practices benefitting wildlife habitat under subsection (g).</text> </paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="idD55FC04B34424DF1AE66601DD1EC38C5"><enum>(5)</enum><text>by striking subsection (g) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HE519F1DA9A5F440CBE49764A8BED025E" style="OLC"> <subsection commented="no" id="HABE46DEA25E14F7EA4EBE65E1CA048DB"><enum>(g)</enum><header>Wildlife habitat incentive practice</header><text display-inline="yes-display-inline">The Secretary shall provide payments under the program for conservation practices that support the restoration, development, and improvement of wildlife habitat on eligible land, including—</text> <paragraph commented="no" id="H1A621895A6BF425EB411A597724BA212"><enum>(1)</enum><text>upland wildlife habitat;</text> </paragraph><paragraph commented="no" id="H6788D96DF06E4F88B730197BE55597BE"><enum>(2)</enum><text>wetland wildlife habitat;</text> </paragraph><paragraph commented="no" id="H100CCFB094B243F59C3F002691BAC79E"><enum>(3)</enum><text>habitat for threatened and endangered species;</text> </paragraph><paragraph commented="no" id="H3523C2891E9E40D49E3DDFB1054B5E4A"><enum>(4)</enum><text>fish habitat;</text> </paragraph><paragraph commented="no" id="H72F019B85FBB4B7EA082A06695FD2EF3"><enum>(5)</enum><text>habitat on pivot corners and other irregular areas of a field; and</text> </paragraph><paragraph commented="no" id="HA41B2F6E1475487B9396673A9C5D079F"><enum>(6)</enum><text>other types of wildlife habitat, as determined by the Secretary.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H6C59B94436CC47BEBD6BDE89169EC8E3"><enum>2204.</enum><header>Evaluation of applications</header><text display-inline="no-display-inline">Section 1240C(b) of the Food Security Act of 1985 (16 U.S.C. 3839aa–3(b)) is amended—</text> <paragraph id="id7f5e7bd98a2c46f1817cd5a4585893f0"><enum>(1)</enum><text>in paragraph (1), by striking <quote>environmental</quote> and inserting <quote>conservation</quote>; and</text> </paragraph><paragraph id="id8BAAD9F316F14F06A26CCD0437473A1F"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking <quote>purpose of the environmental quality incentives program specified in section 1240(1)</quote> and inserting <quote>purposes of the program</quote>.</text> </paragraph></section><section id="HA99A33C311F641208D1C91B3BE99CD32"><enum>2205.</enum><header>Duties of producers</header><text display-inline="no-display-inline">Section 1240D(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa–4(2)) is amended by striking <quote>farm, ranch, or forest</quote> and inserting <quote>enrolled</quote>.</text> </section><section id="H324503700CFB49B587324E174028C298"><enum>2206.</enum><header>Limitation on payments</header><text display-inline="no-display-inline">Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa–7) is amended—</text> <paragraph id="H92450EA5AF134175B1521C7367E21407"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="H2051C1ABF21142B49901AF5B75ABE224"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>by the person or entity during any six-year period,</quote> and inserting <quote>during fiscal years 2013 through 2017</quote>; and</text> </subparagraph><subparagraph id="HD6C66C0BF79042C9B3FBD964055EDD18"><enum>(B)</enum><text>by striking <quote>federally recognized</quote> and all that follows through the period and inserting <quote>Indian tribes under section 1244(l).</quote>; and</text> </subparagraph></paragraph><paragraph id="H18EE2C1BAFD84E37BF8089CE77D752E1"><enum>(2)</enum><text>in subsection (b)(2), by striking <quote>any six-year period</quote> and inserting <quote>fiscal years 2013 through 2017</quote>.</text> </paragraph></section><section id="idB4DC939ABB90499FB664E383CB9583A2"><enum>2207.</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="id8239D880D2B343CBA275637791248118"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)(2), by striking <quote>2012</quote> and inserting <quote>2017</quote>; and</text> </paragraph><paragraph id="id1B3923838CC14C66895C242BDA233802"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id8A456F82047D4170A9938419065B8CFA" style="OLC"> <subsection id="id1E95130FDA3543D09AFCD09FCD4CA452"><enum>(c)</enum><header>Reporting</header><text display-inline="yes-display-inline">Not later than December 31, 2013, and every 2 years thereafter, the Secretary shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives a report on the status of projects funded under this section, including—</text> <paragraph id="id0C0D137F93C04756BBC18992BBB48767"><enum>(1)</enum><text>funding awarded;</text> </paragraph><paragraph id="idDD08D78F79B9493C9D7A66F554F019B7"><enum>(2)</enum><text>project results; and</text> </paragraph><paragraph id="id0967BB6880E445D6868BDE7AC153CCA0"><enum>(3)</enum><text>incorporation of project findings, such as new technology and innovative approaches, into the conservation efforts implemented by the Secretary.</text> </paragraph></subsection><after-quoted-block>. </after-quoted-block></quoted-block> </paragraph></section><section id="HF5CCA04421AA4A7296A7DD702C491CA1"><enum>2208.</enum><header>Effective date</header> <subsection commented="no" id="HA7E67BDB25B84418802F2D42C50DACC4"><enum>(a)</enum><header>In general</header><text>The amendments made by this title shall take effect on October 1, 2012.</text> </subsection><subsection id="HF471E783D446437CBF04F72CBB6FE271"><enum>(b)</enum><header>Effect on existing contracts</header><text display-inline="yes-display-inline">The amendments made by this title shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) before October 1, 2012, or any payments required to be made in connection with the contract.</text> </subsection></section></subtitle><subtitle id="H430F6660E9024A008A6ACA2EE9BB17C5"><enum>D</enum><header>Agricultural Conservation Easement Program</header> <section id="H06E74181918C420F928872727ABB95A3" section-type="subsequent-section"><enum>2301.</enum><header>Agricultural Conservation Easement Program</header> <subsection id="HCACBC4280DE8426E91FBF2E225F974F6"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">Title XII of the Food Security Act of 1985 is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HDCA71AC8C2B64CB0B65644B314928650" style="OLC"> <subtitle id="HC917B3C7A4824AC181423A2DF8321E8E"><enum>H</enum><header>Agricultural Conservation Easement Program</header> <section id="H05DC9D43FF7E4C659D8C9DDBB8AA58E8"><enum>1265.</enum><header>Establishment and purposes</header> <subsection id="H0306AB072D9A4F41A563FBED46A4BFEB"><enum>(a)</enum><header>Establishment</header><text>The Secretary shall establish an Agricultural Conservation Easement Program for the conservation of eligible land and natural resources through easements or other interests in land.</text> </subsection><subsection id="H360EBBF3711949E2A311A5C75A011798"><enum>(b)</enum><header>Purposes</header><text>The purposes of the program are to—</text> <paragraph id="HF5AAC7E863BA447DB6CAD696FF8C4C16"><enum>(1)</enum><text display-inline="yes-display-inline">combine the purposes and coordinate the functions of the wetlands reserve program established under section 1237, the grassland reserve program established under section 1238N, and the farmland protection program established under section 1238I;</text> </paragraph><paragraph id="H427F9B90BB1E4075A233E9FA973B4CAC"><enum>(2)</enum><text>restore, protect, and enhance wetland on eligible land;</text> </paragraph><paragraph id="H3437F10259EF4C97ACB5727D7C30002F"><enum>(3)</enum><text>protect the agricultural use, viability, and related conservation values of eligible land by limiting nonagricultural uses of that land; and</text> </paragraph><paragraph id="HC074E79034D64D01AC2108A93268F033"><enum>(4)</enum><text>protect grazing uses and related conservation values by restoring and conserving eligible land.</text> </paragraph></subsection></section><section id="H690F6DE4F40D4715B65384AF157C9D3B"><enum>1265A.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text> <paragraph id="H1729ADC80A174B029CF1980CAD5714C9"><enum>(1)</enum><header>Agricultural land easement</header><text>The term <quote>agricultural land easement</quote> means an easement or other interest in eligible land that—</text> <subparagraph id="H9B60011AB2144F7F870CAA082C0C882A"><enum>(A)</enum><text>is conveyed for the purposes of protecting natural resources and the agricultural nature of the land, and of promoting agricultural viability for future generations; and</text> </subparagraph><subparagraph id="H8AF2474844804EA3A139EED6378541E1"><enum>(B)</enum><text>permits the landowner the right to continue agricultural production and related uses subject to an agricultural land easement plan.</text> </subparagraph></paragraph><paragraph id="HAF7CF93A781640D88BE0D3187B681588"><enum>(2)</enum><header>Eligible entity</header><text>The term <quote>eligible entity</quote> means—</text> <subparagraph id="HDF0BCC666CA541D59D02A8F0A108AEB5"><enum>(A)</enum><text>an agency of State or local government or an Indian tribe (including farmland protection board or land resource council established under State law); or</text> </subparagraph><subparagraph id="H1CD46F1F65E3472EBDCB186149D0E931"><enum>(B)</enum><text>an organization that is—</text> <clause id="HDD0545E0195249A19402BC8F3071B92E"><enum>(i)</enum><text>organized for, and at all times since the formation of the organization has been operated principally for, 1 or more of the conservation purposes specified in clause (i), (ii), (iii), or (iv) of section 170(h)(4)(A) of the Internal Revenue Code of 1986;</text> </clause><clause id="HBCD7876F22BD41CDB63631E52DDE087E"><enum>(ii)</enum><text>an organization described in section 501(c)(3) of that Code that is exempt from taxation under section 501(a) of that Code; or</text> </clause><clause id="HB0456EB229434641B21759C1083DCDD3"><enum>(iii)</enum><text>described in—</text> <subclause id="H3FB457498C7241EBBD832D58E98A2BAB"><enum>(I)</enum><text>paragraph (1) or (2) of section 509(a) of that Code; or</text> </subclause><subclause id="H68533BA646744E5292DDE39E45AE4F79"><enum>(II)</enum><text>section 509(a)(3) of that Code and is controlled by an organization described in section 509(a)(2) of that Code.</text> </subclause></clause></subparagraph></paragraph><paragraph id="H111B6733D48947F48EBC67C35D4FED12"><enum>(3)</enum><header>Eligible land</header><text>The term <quote>eligible land</quote> means private or tribal land that is—</text> <subparagraph id="H762EC017FCC14814B4E3490681F9DF0A"><enum>(A)</enum><text>in the case of an agricultural land easement, agricultural land, including land on a farm or ranch—</text> <clause id="H2056553350D947648541577F17EE5A10"><enum>(i)</enum><text>that is subject to a pending offer for purchase from an eligible entity;</text> </clause><clause id="HBF319935ECC645EBB4CCA0B5BF3DB041"><enum>(ii)</enum><text>that—</text> <subclause id="H9310CD823F3A471B96D46981768120FE"><enum>(I)</enum><text>has prime, unique, or other productive soil;</text> </subclause><subclause id="H956192578D7C4EF7ACE0376A0889770E"><enum>(II)</enum><text>contains historical or archaeological resources; or</text> </subclause><subclause id="H204BBFB4DA0A447BB031F020A3CCA739"><enum>(III)</enum><text>the protection of which will further a State or local policy consistent with the purposes of the program; and</text> </subclause></clause><clause id="H64E8967EC67B4D55A34A1AAAD789626C"><enum>(iii)</enum><text>that is—</text> <subclause id="H74284B7383014AFB83683ADA303E457A"><enum>(I)</enum><text>cropland;</text> </subclause><subclause id="H670D038416024975ACBA7109D37B7CCD"><enum>(II)</enum><text>rangeland;</text> </subclause><subclause id="HB26F53165DB846FDB1A0021145BC60C5"><enum>(III)</enum><text>grassland or land that contains forbs, or shrubland for which grazing is the predominant use;</text> </subclause><subclause id="HC8C7268620FA464DB619AB7B4A2E2664"><enum>(IV)</enum><text>pastureland; or</text> </subclause><subclause id="H9675DB47D77B4C6093704BC00DE2BE5B"><enum>(V)</enum><text display-inline="yes-display-inline">nonindustrial private forest land that contributes to the economic viability of an offered parcel or serves as a buffer to protect such land from development;</text> </subclause></clause></subparagraph><subparagraph id="H3FFEB7EA3FF04860A1CFCF21FB950F3B"><enum>(B)</enum><text>in the case of a wetland easement, a wetland or related area, including—</text> <clause id="HFD06601924774C76870446C086205919"><enum>(i)</enum><text>farmed or converted wetland, together with the adjacent land that is functionally dependent on that land if the Secretary determines it—</text> <subclause id="H0AE1255B41D04832B92D53C361B97532"><enum>(I)</enum><text>is likely to be successfully restored in a cost effective manner; and</text> </subclause><subclause id="H4AD82B0A071040798394EEF666FF726F"><enum>(II)</enum><text>will maximize the wildlife benefits and wetland functions and values as determined by the Secretary in consultation with the Secretary of the Interior at the local level;</text> </subclause></clause><clause id="ida54cac316659437f88bc9c4cabbe8ca2"><enum>(ii)</enum><text>cropland or grassland that was used for agricultural production prior to flooding from the natural overflow of a closed basin lake or pothole, as determined by the Secretary, together (where practicable) with the adjacent land that is functionally dependent on the cropland or grassland;</text> </clause><clause id="H6D2C4F20C05E4BDCA48B1E4444A2F7CC"><enum>(iii)</enum><text>farmed wetland and adjoining land that—</text> <subclause id="H95C3E16B81254244B9D53DC0104ECACC"><enum>(I)</enum><text>is enrolled in the conservation reserve program;</text> </subclause><subclause id="H7B9EB5CC823347B6BEA2AA4874340FB7"><enum>(II)</enum><text>has the highest wetland functions and values; and</text> </subclause><subclause id="HED6D81092F8E4584B35C2575614F057B"><enum>(III)</enum><text>is likely to return to production after the land leaves the conservation reserve program;</text> </subclause></clause><clause id="H552AC3185A394AACBA00E77A1B0F85A8"><enum>(iv)</enum><text>riparian areas that link wetland that is protected by easements or some other device that achieves the same purpose as an easement; or</text> </clause><clause id="H924F75438A894363922B20EEBA41FFDB"><enum>(v)</enum><text>other wetland of an owner that would not otherwise be eligible if the Secretary determines that the inclusion of such wetland in such easement would significantly add to the functional value of the easement; and</text> </clause></subparagraph><subparagraph id="H5E9C48CA811E4AE281D6F41B2B333AC9"><enum>(C)</enum><text>in the case of both an agricultural land easement or wetland easement, other land that is incidental to eligible land if the Secretary determines that it is necessary for the efficient administration of the easements under this program.</text> </subparagraph></paragraph><paragraph id="H94CE2447CB454DCDB64628EE44E6A71C"><enum>(4)</enum><header>Program</header><text>The term <quote>program</quote> means the Agricultural Conservation Easement Program established by this subtitle.</text> </paragraph><paragraph id="H2E0091185A764A268D8C6318083C8FC0"><enum>(5)</enum><header>Wetland easement</header><text>The term <quote>wetland easement</quote> means a reserved interest in eligible land that—</text> <subparagraph id="H9B5906F3758E4DEE8068C86499CB1A7B"><enum>(A)</enum><text>is defined and delineated in a deed; and</text> </subparagraph><subparagraph id="HB366026F96244ED28184914070D73EB1"><enum>(B)</enum><text>stipulates—</text> <clause id="HF758A1B1AE114D2DB9F936DD211171A6"><enum>(i)</enum><text>the rights, title, and interests in land conveyed to the Secretary; and</text> </clause><clause id="H3AA982A64CF244698804A954ABDC3F2F"><enum>(ii)</enum><text>the rights, title, and interests in land that are reserved to the landowner.</text> </clause></subparagraph></paragraph></section><section id="H26EBE66210274374A206113C3C9CDAE1"><enum>1265B.</enum><header>Agricultural land easements</header> <subsection id="H81AE04B1896B42EABD644118C6484CBB"><enum>(a)</enum><header>Availability of assistance</header><text>The Secretary shall facilitate and provide funding for—</text> <paragraph id="HC972079C06DA47188CC7230334BB2162"><enum>(1)</enum><text>the purchase by eligible entities of agricultural land easements and other interests in eligible land; and</text> </paragraph><paragraph id="H505E0293E57F4E3F9A94B7D373600005"><enum>(2)</enum><text>technical assistance to provide for the conservation of natural resources pursuant to an agricultural land easement plan.</text> </paragraph></subsection><subsection id="H0770C77E633D400EB05221AAB0A1FD02"><enum>(b)</enum><header>Cost-share assistance</header> <paragraph id="H0D63088A97334BF48B2E9383BA09C81F"><enum>(1)</enum><header>In general</header><text>The Secretary shall provide cost-share assistance to eligible entities for purchasing agricultural land easements to protect the agricultural use, including grazing, and related conservation values of eligible land.</text> </paragraph><paragraph id="H37E4F19A8F864077B1457CBDEB5B3F48"><enum>(2)</enum><header>Scope of assistance available</header> <subparagraph id="H69DAB45576C545CAB5ABAE7D3823ACA7"><enum>(A)</enum><header>Federal share</header><text display-inline="yes-display-inline">Subject to subparagraph (C), an agreement described in paragraph (4) shall provide for a Federal share determined by the Secretary of an amount not to exceed 50 percent of the fair market value of the agricultural land easement or other interest in land, as determined by the Secretary using—</text> <clause id="H15B112BA74E641DD9D49B7ED9593159A"><enum>(i)</enum><text>the Uniform Standards of Professional Appraisal Practices;</text> </clause><clause id="H3261E96939044EC1A6998BD58BBDE1D4"><enum>(ii)</enum><text>an area-wide market analysis or survey; or</text> </clause><clause id="HD078B696D6C240E9848B7153C7039732"><enum>(iii)</enum><text>another industry approved method.</text> </clause></subparagraph><subparagraph id="HACA354D0AE9344E6A139190F56620AF8"><enum>(B)</enum><header>Non-Federal share</header> <clause id="H5FEA917821AE4084A5EF5AD44F39CF52"><enum>(i)</enum><header>In general</header><text>Subject to subparagraph (C), under the agreement, the eligible entity shall provide a share that is at least equivalent to that provided by the Secretary.</text> </clause><clause id="H51D95635048D47209DE463141B174B16"><enum>(ii)</enum><header>Source of contribution</header><text display-inline="yes-display-inline">An eligible entity may include as part of its share a charitable donation or qualified conservation contribution (as defined by section 170(h) of the Internal Revenue Code of 1986) from the private landowner if the eligible entity contributes its own cash resources in an amount that is at least 50 percent of the amount contributed by the Secretary.</text> </clause></subparagraph><subparagraph id="id4d3ba3d177344b12a136a4b0ad36feb5"><enum>(C)</enum><header>Waiver authority</header><text>In the case of grassland of special environmental significance, as determined by the Secretary, the Secretary may provide up to 75 percent of the fair market value of the agricultural land easement.</text> </subparagraph></paragraph><paragraph id="H0183A2BF8F3E4858826440BBF999B55F"><enum>(3)</enum><header>Evaluation and ranking of applications</header> <subparagraph id="H71D3832DEB3B4BF58891262B7CE6232D"><enum>(A)</enum><header>Criteria</header><text>The Secretary shall establish evaluation and ranking criteria to maximize the benefit of Federal investment under the program.</text> </subparagraph><subparagraph id="H85419D93E06746A5A0E458EB3AA60A60"><enum>(B)</enum><header>Considerations</header><text>In establishing the criteria, the Secretary shall emphasize support for—</text> <clause id="H422157F2A06746A8926298ACAAE1413E"><enum>(i)</enum><text>protecting agricultural uses and related conservation values of the land; and</text> </clause><clause id="H3E3B14F47E2F478AB5663868F463C189"><enum>(ii)</enum><text>maximizing the protection of areas devoted to agricultural use.</text> </clause></subparagraph><subparagraph id="H0E1021D8CFC84589B4D3D96E8DA2A233"><enum>(C)</enum><header>Bidding down</header><text>If the Secretary determines that 2 or more applications for cost-share assistance are comparable in achieving the purpose of the program, the Secretary shall not assign a higher priority to any of those applications solely on the basis of lesser cost to the program.</text> </subparagraph></paragraph><paragraph id="H5612615EAB0248FB94434F4612BDA569"><enum>(4)</enum><header>Agreements with eligible entities</header> <subparagraph id="H3CB2C7F30D40408B80442E642683D073"><enum>(A)</enum><header>In general</header><text>The Secretary shall enter into agreements with eligible entities to stipulate the terms and conditions under which the eligible entity is permitted to use cost-share assistance provided under this section.</text> </subparagraph><subparagraph id="H3CD0CDA0D2254ED186C447CE82AC09A0"><enum>(B)</enum><header>Length of agreements</header><text>An agreement shall be for a term that is—</text> <clause id="H6F71C7D5FB5544D7A5611D7BA75E3AC6"><enum>(i)</enum><text>in the case of an eligible entity certified under the process described in paragraph (5), a minimum of 5 years; and</text> </clause><clause id="H5C8738014B2246EE9E8C1250631C0F10"><enum>(ii)</enum><text>for all other eligible entities, at least 3, but not more than 5 years.</text> </clause></subparagraph><subparagraph id="H7477F3F1AB4344D5989A52CC5D6F5D5D"><enum>(C)</enum><header>Minimum terms and conditions</header><text>An eligible entity shall be authorized to use its own terms and conditions for agricultural land easements so long as the Secretary determines such terms and conditions—</text> <clause id="HCF974E9EDBC54FFC99F05667695D2B25"><enum>(i)</enum><text>are consistent with the purposes of the program;</text> </clause><clause id="idf2dd8628554543b9999974702b936885"><enum>(ii)</enum><text>are permanent or for the maximum duration allowed under applicable State law;</text> </clause><clause id="H56C21EB78B524E9DA950B52A8983012A"><enum>(iii)</enum><text>permit effective enforcement of the conservation purposes of such easements, including appropriate restrictions depending on the purposes for which the easement is acquired;</text> </clause><clause id="H93340ABA42424D7499C32449BFDCE081"><enum>(iv)</enum><text>include a right of enforcement for the Secretary if terms of the easement are not enforced by the holder of the easement;</text> </clause><clause id="H54CD29A2A16D4138BB30682CAE22010B"><enum>(v)</enum><text>subject the land purchased to an agricultural land easement plan that—</text> <subclause id="HC8965E2FDEB1439692ECD3B4803E6C24"><enum>(I)</enum><text>describes the activities which promote the long-term viability of the land to meet the purposes for which the easement was acquired;</text> </subclause><subclause id="H36B7D578F7A943B1B986D48B4451F5CA"><enum>(II)</enum><text display-inline="yes-display-inline">requires the management of grassland according to a grassland management plan; and</text> </subclause><subclause id="H0CF1FC14C9FE4DCDAB8E6A7B7385B2DA"><enum>(III)</enum><text>includes a conservation plan, where appropriate, and requires, at the option of the Secretary, the conversion of highly erodible cropland to less intensive uses; and</text> </subclause></clause><clause id="H835067482A4A4001888D3E0A4F9E1CE7"><enum>(vi)</enum><text>include a limit on the impervious surfaces to be allowed that is consistent with the agricultural activities to be conducted.</text> </clause></subparagraph><subparagraph id="HB27F14FEE5154D57BAC61792AACB6350"><enum>(D)</enum><header>Substitution of qualified projects</header><text>An agreement shall allow, upon mutual agreement of the parties, substitution of qualified projects that are identified at the time of the proposed substitution.</text> </subparagraph><subparagraph id="H95E35B41389C4FA2B34272140B36BB7B"><enum>(E)</enum><header>Effect of violation</header><text>If a violation occurs of a term or condition of an agreement under this subsection—</text> <clause id="H1FF23CD12DDE42999FA94C2174AC6812"><enum>(i)</enum><text>the agreement may be terminated; and</text> </clause><clause id="H8A53E345B8854551928380307541FF9B"><enum>(ii)</enum><text>the Secretary may require the eligible entity to refund all or part of any payments received by the entity under the program, with interest on the payments as determined appropriate by the Secretary.</text> </clause></subparagraph></paragraph><paragraph id="H76E92E218B1348929E86D53312E81E17"><enum>(5)</enum><header>Certification of eligible entities</header> <subparagraph id="H4329A423EA6844419563E82D87807A20"><enum>(A)</enum><header>Certification process</header><text>The Secretary shall establish a process under which the Secretary may—</text> <clause id="HD82B93D56FD049C8A3620F0EFBFFAD34"><enum>(i)</enum><text>directly certify eligible entities that meet established criteria;</text> </clause><clause id="H86AD9E4DF629406991E601BC9CEFCC4D"><enum>(ii)</enum><text>enter into long-term agreements with certified eligible entities; and</text> </clause><clause id="H898AE4B4D5434A80A4676E9B197FBC27"><enum>(iii)</enum><text>accept proposals for cost-share assistance for the purchase of agricultural land easements throughout the duration of such agreements.</text> </clause></subparagraph><subparagraph id="H2A33F641EE4F4BC08FC419494B4E14A3"><enum>(B)</enum><header>Certification criteria</header><text>In order to be certified, an eligible entity shall demonstrate to the Secretary that the entity will maintain, at a minimum, for the duration of the agreement—</text> <clause id="H3A2346EA34C647A7B3CF056F2B242E09"><enum>(i)</enum><text>a plan for administering easements that is consistent with the purpose of this subtitle;</text> </clause><clause id="H7FF8D9DBB6BC4E9C9EDF7AC995E2DD20"><enum>(ii)</enum><text>the capacity and resources to monitor and enforce agricultural land easements; and</text> </clause><clause id="H8785EFC9EDD74C08AC70A8E096ECB741"><enum>(iii)</enum><text>policies and procedures to ensure—</text> <subclause id="HA2628A9924D7474A89DEC4C2B28E9029"><enum>(I)</enum><text>the long-term integrity of agricultural land easements on eligible land;</text> </subclause><subclause id="H5123C5FFB8ED433D92D845FFF212DE78"><enum>(II)</enum><text>timely completion of acquisitions of easements; and</text> </subclause><subclause id="H714C9F48FF114AC98A33540B4E4CF248"><enum>(III)</enum><text>timely and complete evaluation and reporting to the Secretary on the use of funds provided under the program.</text> </subclause></clause></subparagraph><subparagraph id="H8E7D49DB5F814E498587C83C553C5412"><enum>(C)</enum><header>Review and revision</header> <clause id="H5D36AA8FE47B44C7BF94F667B2B1B205"><enum>(i)</enum><header>Review</header><text>The Secretary shall conduct a review of eligible entities certified under subparagraph (A) every 3 years to ensure that such entities are meeting the criteria established under subparagraph (B).</text> </clause><clause id="HA0606F0314D346EE9CA11D54FEE90B3C"><enum>(ii)</enum><header>Revocation</header><text>If the Secretary finds that the certified entity no longer meets the criteria established under subparagraph (B), the Secretary may—</text> <subclause id="HF72329517CF84A9188FC823982277506"><enum>(I)</enum><text>allow the certified entity a specified period of time, at a minimum 180 days, in which to take such actions as may be necessary to meet the criteria; and</text> </subclause><subclause id="H2E7662F3EDC54515A923CDD519798A05"><enum>(II)</enum><text>revoke the certification of the entity, if after the specified period of time, the certified entity does not meet such criteria.</text> </subclause></clause></subparagraph></paragraph></subsection><subsection id="H59F147F157924FECAAAA30D50EDF7DCB"><enum>(c)</enum><header>Technical assistance</header><text display-inline="yes-display-inline">The Secretary may provide technical assistance, if requested, to assist in—</text> <paragraph id="H448034C38FAD4958ACD368837E7321FA"><enum>(1)</enum><text>compliance with the terms and conditions of easements; and</text> </paragraph><paragraph id="HFC5D28D200FB46F88817837F13E984E2"><enum>(2)</enum><text>implementation of an agricultural land easement plan.</text> </paragraph></subsection></section><section id="HF12DFEA578D248F89DF5115FBB4476A3"><enum>1265C.</enum><header>Wetland easements</header> <subsection id="H50C2D07A1E0240CFA6BBD9F60FABD6BB"><enum>(a)</enum><header>Availability of assistance</header><text>The Secretary shall provide assistance to owners of eligible land to restore, protect, and enhance wetland through—</text> <paragraph id="HBC97E7E1A27C4AB389A4383BE62B2F7F"><enum>(1)</enum><text>easements and related wetland easement plans; and</text> </paragraph><paragraph id="H8694CCCD74F8448DBA10F8A40AD8F148"><enum>(2)</enum><text>technical assistance.</text> </paragraph></subsection><subsection id="H19DF9D514BC44EE9A04B530119DAEF5A"><enum>(b)</enum><header>Easements</header> <paragraph id="H972AA7AE787441A082FAEE2198C9E63E"><enum>(1)</enum><header>Method of enrollment</header><text>The Secretary shall enroll eligible land through the use of—</text> <subparagraph id="HF198EFB399C84915910DF4584004704F"><enum>(A)</enum><text>30-year easements;</text> </subparagraph><subparagraph id="H6A6A53A526904BA881F10BB985AE6496"><enum>(B)</enum><text>permanent easements;</text> </subparagraph><subparagraph id="H33969186303948CCAE7B2B0580FF1290"><enum>(C)</enum><text>easements for the maximum duration allowed under applicable State laws; or</text> </subparagraph><subparagraph id="HF9F466E3198041F18C3EE0891DCBF7C1"><enum>(D)</enum><text display-inline="yes-display-inline">as an option for Indian tribes only, 30-year contracts.</text> </subparagraph></paragraph><paragraph id="HFA2FDAD52331405FA7CABD938CB20C52"><enum>(2)</enum><header>Limitations</header> <subparagraph id="H4FDBDBC7E05B4A0494919F90620AEDD0"><enum>(A)</enum><header>Ineligible land</header><text>The Secretary may not acquire easements on—</text> <clause id="HBF110C96D4EA4F5689247D351C519B2D"><enum>(i)</enum><text>land established to trees under the conservation reserve program, except in cases where the Secretary determines it would further the purposes of the program; and</text> </clause><clause id="H1FEA7E23534C4B4F989FC142A17D32EF"><enum>(ii)</enum><text>farmed wetland or converted wetland where the conversion was not commenced prior to December 23, 1985.</text> </clause></subparagraph><subparagraph id="HE86692F1E45842FDA52C1BF3E842BE20"><enum>(B)</enum><header>Changes in ownership</header><text>No easement shall be created on land that has changed ownership during the preceding 24-month period unless—</text> <clause id="H31BF1402273946B8AEAB555F508A23C4"><enum>(i)</enum><text>the new ownership was acquired by will or succession as a result of the death of the previous owner;</text> </clause><clause id="H4891C7AA72084FF4BD4719BDC0013288"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H0A88220C3B2F486EACA29D83DEBB3076"><enum>(I)</enum><text>the ownership change occurred because of foreclosure on the land; and</text> </subclause><subclause id="H6ABD33AABB9445348769BBE1E654E275" indent="up1"><enum>(II)</enum><text>immediately before the foreclosure, the owner of the land exercises a right of redemption from the mortgage holder in accordance with State law; or</text> </subclause></clause><clause id="H9CD5A33E4C1845AA8C3EACB5A83C05DA"><enum>(iii)</enum><text>the Secretary determines that the land was acquired under circumstances that give adequate assurances that such land was not acquired for the purposes of placing it in the program.</text> </clause></subparagraph></paragraph><paragraph id="HAE88191248AE4C1E807795D648D4139D"><enum>(3)</enum><header>Evaluation and ranking of offers</header> <subparagraph id="H9D3AC4BB38CC470A8676E2CA5300DBBC"><enum>(A)</enum><header>Criteria</header><text>The Secretary shall establish evaluation and ranking criteria to maximize the benefit of Federal investment under the program.</text> </subparagraph><subparagraph id="H25C3110909C94B23A67E65FEFECD42B8"><enum>(B)</enum><header>Considerations</header><text>When evaluating offers from landowners, the Secretary may consider—</text> <clause id="H0298DF5BA3CA48DEA698076E61E1BD8D"><enum>(i)</enum><text>the conservation benefits of obtaining an easement or 30-year contract, including the potential environmental benefits if the land was removed from agricultural production;</text> </clause><clause id="H27D35B08455F4260AA0CCC3016ECC73E"><enum>(ii)</enum><text>the cost-effectiveness of each easement or 30-year contract, so as to maximize the environmental benefits per dollar expended;</text> </clause><clause commented="no" id="H9AA94F6F2E7E4D339DC3F5CB04356BD8"><enum>(iii)</enum><text>whether the landowner or another person is offering to contribute financially to the cost of the easement or 30-year contract to leverage Federal funds; and</text> </clause><clause id="H763841FDF26C4F6EA4E0306A387B76BA"><enum>(iv)</enum><text>such other factors as the Secretary determines are necessary to carry out the purposes of the program.</text> </clause></subparagraph><subparagraph id="H53FF0B86BAEF4E019B66A3973FF8A150"><enum>(C)</enum><header>Priority</header><text>The Secretary shall place priority on acquiring easements based on the value of the easement for protecting and enhancing habitat for migratory birds and other wildlife.</text> </subparagraph></paragraph><paragraph id="H08302443411E4F9EB3BC45A4A8674360"><enum>(4)</enum><header>Agreement</header><text>To be eligible to place eligible land into the program through a wetland easement, the owner of such land shall enter into an agreement with the Secretary to—</text> <subparagraph id="HE8388722C6884E848CA500C275EDF70D"><enum>(A)</enum><text>grant an easement on such land to the Secretary;</text> </subparagraph><subparagraph id="H266A649D78454E428BE4FEBCAAF342F9"><enum>(B)</enum><text>authorize the implementation of a wetland easement plan;</text> </subparagraph><subparagraph id="HB92E6F60F53947DBB757A44B7AF279CB"><enum>(C)</enum><text>create and record an appropriate deed restriction in accordance with applicable State law to reflect the easement agreed to;</text> </subparagraph><subparagraph id="HD2CF170111C444789C450BB75222D5BD"><enum>(D)</enum><text>provide a written statement of consent to such easement signed by those holding a security interest in the land;</text> </subparagraph><subparagraph id="H7CE15777F819414AB7508EBE20FEA74E"><enum>(E)</enum><text>comply with the terms and conditions of the easement and any related agreements; and</text> </subparagraph><subparagraph id="H5CDA46138DE14ADA918A05E1D4491CEA"><enum>(F)</enum><text>permanently retire any existing cropland base and allotment history for the land on which the easement has been obtained.</text> </subparagraph></paragraph><paragraph id="HA7942B4B3FA14149998B74B82762DFB3"><enum>(5)</enum><header>Terms and conditions of easement</header> <subparagraph id="HB5F146304D60482D9E6D2C07DBF8AF6A"><enum>(A)</enum><header>In general</header><text>A wetland easement shall include terms and conditions that—</text> <clause id="HE81FAB92A5C544EBB5721272DA4A93A9"><enum>(i)</enum><text>permit—</text> <subclause id="H571CA6A56F4D4C0EB02E1E92B00B954F"><enum>(I)</enum><text>repairs, improvements, and inspections on the land that are necessary to maintain existing public drainage systems; and</text> </subclause><subclause id="H0BD4B55FB36E415F89FB1A3B678AF990"><enum>(II)</enum><text>owners to control public access on the easement areas while identifying access routes to be used for restoration activities and management and easement monitoring;</text> </subclause></clause><clause id="HE56D594A3B704E4C92D95FC5B9343C3E"><enum>(ii)</enum><text>prohibit—</text> <subclause id="H2F1C77C90EA94413AC230ED1A35793E9"><enum>(I)</enum><text>the alteration of wildlife habitat and other natural features of such land, unless specifically authorized by the Secretary;</text> </subclause><subclause id="HAFC510E2EBEB4949984B8B4EB3A1E054"><enum>(II)</enum><text>the spraying of such land with chemicals or the mowing of such land, except where such spraying or mowing is authorized by the Secretary or is necessary—</text> <item id="H19CE74C8DD934D18B5B91F3242B505E4"><enum>(aa)</enum><text>to comply with Federal or State noxious weed control laws;</text> </item><item id="H8F02C854E8C04FBC9D86B1151A2CD53B"><enum>(bb)</enum><text>to comply with a Federal or State emergency pest treatment program; or</text> </item><item id="HA0610E82001C4ED698CF96825C887049"><enum>(cc)</enum><text>to meet habitat needs of specific wildlife species;</text> </item></subclause><subclause id="HC677903E196D4A2F8B339BB291081BF1"><enum>(III)</enum><text>any activities to be carried out on the owner’s or successor’s land that is immediately adjacent to, and functionally related to, the land that is subject to the easement if such activities will alter, degrade, or otherwise diminish the functional value of the eligible land; and</text> </subclause><subclause id="H89ECBBF38A0F4CFE8D4EF26A99153EAC"><enum>(IV)</enum><text>the adoption of any other practice that would tend to defeat the purposes of the program, as determined by the Secretary;</text> </subclause></clause><clause id="H4710E435E17A4C8E85AD8A03EAA8E160"><enum>(iii)</enum><text>provide for the efficient and effective establishment of wetland functions and values; and</text> </clause><clause id="H59D43E79D1E647BC96021DAA5D43E339"><enum>(iv)</enum><text>include such additional provisions as the Secretary determines are desirable to carry out the program or facilitate the practical administration thereof.</text> </clause></subparagraph><subparagraph id="HF617474A5AF94F20B86A58D2701F1889"><enum>(B)</enum><header>Violation</header><text>On the violation of the terms or conditions of the easement, the easement shall remain in force and the Secretary may require the owner to refund all or part of any payments received by the owner under the program, together with interest thereon as determined appropriate by the Secretary.</text> </subparagraph><subparagraph id="H04A8F09572CC4861ACD03E9706F31F91"><enum>(C)</enum><header>Compatible uses</header><text>Land subject to a wetland easement may be used for compatible economic uses, including such activities as hunting and fishing, managed timber harvest, or periodic haying or grazing, if such use is specifically permitted by the wetland easement plan and is consistent with the long-term protection and enhancement of the wetland resources for which the easement was established.</text> </subparagraph><subparagraph id="H6F7E5D3BFBBB4CA58005A59B1AA4FAB8"><enum>(D)</enum><header>Reservation of grazing rights</header><text>The Secretary may include in the terms and conditions of an easement a provision under which the owner reserves grazing rights if—</text> <clause id="HA43831E471E84E0E970EAF659E5F69E2"><enum>(i)</enum><text>the Secretary determines that the reservation and use of the grazing rights—</text> <subclause id="H5D5A7ECA1FAF4D5BA4A9B81495184D4E"><enum>(I)</enum><text>is compatible with the land subject to the easement;</text> </subclause><subclause id="H94BDADD3E1FE4661BCE8811CD69CFCE0"><enum>(II)</enum><text>is consistent with the historical natural uses of the land and long-term protection and enhancement goals for which the easement was established; and</text> </subclause><subclause id="H676426FE46634EB8B627D89DF0644A9E"><enum>(III)</enum><text>complies with the wetland easement plan; and</text> </subclause></clause><clause id="H39F23DE1EFE2484BB39BF8565C9ADB01"><enum>(ii)</enum><text>the agreement provides for a commensurate reduction in the easement payment to account for the grazing value, as determined by the Secretary.</text> </clause></subparagraph><subparagraph commented="no" id="HF27B2F8D88B2448A829DA84C37C95A9E"><enum>(E)</enum><header>Application</header><text>The relevant provisions of this paragraph shall also apply to a 30-year contract.</text> </subparagraph></paragraph><paragraph id="HD8A138F2A31C40C4822B9B01F892C534"><enum>(6)</enum><header>Compensation</header> <subparagraph id="HA08E7522A7044C0E8978424E939F02A8"><enum>(A)</enum><header>Determination</header> <clause id="HF3A29BD4BDD6418CAFBF44563524EB8D"><enum>(i)</enum><header>In general</header><text>The Secretary shall pay as compensation for a permanent easement acquired an amount necessary to encourage enrollment in the program based on the lowest of—</text> <subclause id="H8458C696D3EE4994A3DA3EEB86FFCD51"><enum>(I)</enum><text>the fair market value of the land, as determined by the Secretary, using the Uniform Standards of Professional Appraisal Practices or an area-wide market analysis or survey;</text> </subclause><subclause id="H6A9E276A5DD04A33AE400B7FCE0772F5"><enum>(II)</enum><text>the amount corresponding to a geographical cap, as determined by the Secretary in regulations; or</text> </subclause><subclause id="HD4158279BB774AECBC4FE080220ED60F"><enum>(III)</enum><text>the offer made by the landowner.</text> </subclause></clause><clause commented="no" id="H5B06ECE9D9124F9BAA19454A90CBAD24"><enum>(ii)</enum><header>Other</header><text display-inline="yes-display-inline">Compensation for a 30-year contract or 30-year easement shall be not less than 50 percent, but not more than 75 percent, of the compensation that would be paid for a permanent easement.</text> </clause></subparagraph><subparagraph id="HF4A87DB4793E4AB2965F4985CA56702F"><enum>(B)</enum><header>Form of payment</header><text>Compensation shall be provided by the Secretary in the form of a cash payment, in an amount determined under subparagraph (A).</text> </subparagraph><subparagraph id="H06DCC95B883C47D9B8806E358707E9A5"><enum>(C)</enum><header>Payment schedule</header> <clause id="HAF9DA44B5AB84FD4ADE129DA4353CB86"><enum>(i)</enum><header>Easements valued at less than $500,000</header><text>For easements valued at $500,000 or less, the Secretary may provide easement payments in not more than 10 annual payments.</text> </clause><clause id="HCC81C90AB73A444BA76FE6A1634A42E4"><enum>(ii)</enum><header>Easements valued at more than $500,000</header><text>For easements valued at more than $500,000, the Secretary may provide easement payments in at least 5, but not more than 10 annual payments, except that, if the Secretary determines it would further the purposes of the program, the Secretary may make a lump sum payment for such an easement.</text> </clause></subparagraph></paragraph></subsection><subsection id="H50C282AAC4324D55B91BE706D8D4E98A"><enum>(c)</enum><header>Easement restoration</header> <paragraph id="H61C3D9B2011348B097B246386D465C32"><enum>(1)</enum><header>In general</header><text>The Secretary shall provide financial assistance to carry out the establishment of conservation measures and practices and protect wetland functions and values, including necessary maintenance activities, as set forth in a wetland easement plan.</text> </paragraph><paragraph id="HF8D660B8F7E643538501DE679B024D40"><enum>(2)</enum><header>Payments</header><text>The Secretary shall—</text> <subparagraph id="H57967DF2D8A94EEA954EBE38C72E49B3"><enum>(A)</enum><text>in the case of a permanent easement, pay an amount that is not less than 75 percent, but not more than 100 percent, of the eligible costs; and</text> </subparagraph><subparagraph id="HA08664CB2AAF4EED9E14C55B71FAAD36"><enum>(B)</enum><text>in the case of a 30-year contract or 30-year easement, pay an amount that is not less than 50 percent, but not more than 75 percent, of the eligible costs.</text> </subparagraph></paragraph></subsection><subsection id="H8D2F19B894DF40D7B4141EA8970D717F"><enum>(d)</enum><header>Technical assistance</header> <paragraph id="HEF90B94235BB4846A028D00A81A1537C"><enum>(1)</enum><header>In general</header><text>The Secretary shall assist owners in complying with the terms and conditions of easements and 30-year contracts.</text> </paragraph><paragraph id="H1FBE4EDC576A46639057B20D3D0976D5"><enum>(2)</enum><header>Contracts or agreements</header><text>The Secretary may enter into 1 or more contracts with private entities or agreements with a State, non-governmental organization, or Indian tribe to carry out necessary restoration, enhancement or maintenance of an easement if the Secretary determines that the contract or agreement will advance the purposes of the program.</text> </paragraph></subsection><subsection id="HC5E078625CFC4162B830107066ACAA68"><enum>(e)</enum><header>Wetland enhancement option</header><text>The Secretary may enter into 1 or more agreements with a State (including a political subdivision or agency of a State), nongovernmental organization, or Indian tribe to carry out a special wetland enhancement option that the Secretary determines would advance the purposes of the program.</text> </subsection><subsection id="H5916945C4F61470887C610203EDBE03E"><enum>(f)</enum><header>Administration</header> <paragraph id="HB326A1F724044B68BBC4FBA08AE22406"><enum>(1)</enum><header>Wetland easement plan</header><text>The Secretary shall develop a wetland easement plan for eligible land subject to a wetland easement, which will include the practices and activities necessary to restore, protect, enhance, and maintain the enrolled land.</text> </paragraph><paragraph id="H11434663C69B4D50A443FE2AB5C03C93"><enum>(2)</enum><header>Delegation of easement administration</header> <subparagraph id="H5F021BE5B7DE415883D55150B6C20579"><enum>(A)</enum><header>In general</header><text>The Secretary may delegate any of the easement management, monitoring, and enforcement responsibilities of the Secretary to other Federal or State agencies that have the appropriate authority, expertise and resources necessary to carry out such delegated responsibilities or to other conservation organizations if the Secretary determines the organization has similar expertise and resources.</text> </subparagraph><subparagraph id="H254368F2516F4189BA1A758086EB5CB4"><enum>(B)</enum><header>Limitation</header><text>The Secretary shall not delegate any of the monitoring or enforcement responsibilities under the program to conservation organizations.</text> </subparagraph></paragraph><paragraph id="HD6676776D0D24A728B61DBEC31AD3876"><enum>(3)</enum><header>Payments</header> <subparagraph id="H49001856F4294D38976EA858644C458C"><enum>(A)</enum><header>Timing of payments</header><text>The Secretary shall provide payment for obligations incurred by the Secretary under this section—</text> <clause id="H0313359366144509A5BFAE0BC38FA93F"><enum>(i)</enum><text>with respect to any easement restoration obligation as soon as possible after the obligation is incurred; and</text> </clause><clause id="H69854A9F0D02468CA7ADE926DF8AD30A"><enum>(ii)</enum><text>with respect to any annual easement payment obligation incurred by the Secretary as soon as possible after October 1 of each calendar year.</text> </clause></subparagraph><subparagraph id="H5D90FB57756F48C79F6A0AE98F162E35"><enum>(B)</enum><header>Payments to others</header><text>If an owner who is entitled to a payment dies, becomes incompetent, is otherwise unable to receive such payment, or is succeeded by another person or entity who renders or completes the required performance, the Secretary shall make such payment, in accordance with regulations prescribed by the Secretary and without regard to any other provision of law, in such manner as the Secretary determines is fair and reasonable in light of all of the circumstances.</text> </subparagraph></paragraph></subsection></section><section id="HC6418BFAF64A479AB5E81703AB1672CF"><enum>1265D.</enum><header>Administration</header> <subsection id="H31E6C641E2C34CE1BBD69F497ABD68AD"><enum>(a)</enum><header>Ineligible land</header><text>The Secretary may not acquire an easement under the program on—</text> <paragraph id="H851D6CC4B7414A69B45BEBE25F2A72D3"><enum>(1)</enum><text>land owned by an agency of the United States, other than land held in trust for Indian tribes;</text> </paragraph><paragraph id="H84F17D3FA40342EEA308FA04AAAC3DB7"><enum>(2)</enum><text>land owned in fee title by a State, including an agency or a subdivision of a State, or a unit of local government;</text> </paragraph><paragraph id="HD70FE45CD25F4F92AC4C3060E00F7C47"><enum>(3)</enum><text>land subject to an easement or deed restriction which, as determined by the Secretary, provides similar protection as would be provided by enrollment in the program; and</text> </paragraph><paragraph id="HFD8D839C03A542FCB418FC8011D15100"><enum>(4)</enum><text>land where the purposes of the program would be undermined due to on-site or off-site conditions, such as risk of hazardous substances, proposed or existing rights of way, infrastructure development, or adjacent land uses.</text> </paragraph></subsection><subsection id="H9076CCD3395D4C13B898A21C84A75BC1"><enum>(b)</enum><header>Priority</header><text>In evaluating applications under the program, the Secretary may give priority to land that is currently enrolled in the conservation reserve program in a contract that is set to expire within 1 year and—</text> <paragraph id="HD23DFB53AB6C4849AA487656FE75037D"><enum>(1)</enum><text>in the case of an agricultural land easement, is grassland that would benefit from protection under a long-term easement; and</text> </paragraph><paragraph id="H82267AE5264945D7856274F94F26364D"><enum>(2)</enum><text>in the case of a wetland easement, is a wetland or related area with the highest functions and values and is likely to return to production after the land leaves the conservation reserve program.</text> </paragraph></subsection><subsection id="HEDFF0AFF85674E18995350C4573B50DF"><enum>(c)</enum><header>Subordination, exchange, modification, and termination</header> <paragraph id="H6FAD40BB9C1441B5B07556B83D26EDCE"><enum>(1)</enum><header>In general</header><text>The Secretary may subordinate, exchange, terminate, or modify any interest in land, or portion of such interest, administered by the Secretary, either directly or on behalf of the Commodity Credit Corporation under the program when the Secretary determines that—</text> <subparagraph id="H7208B8A31DD84063A4F769F5EF558CB4"><enum>(A)</enum><text>it is in the Federal Government’s interest to subordinate, exchange, modify or terminate the interest in land;</text> </subparagraph><subparagraph id="HABC3483D7E7D4D2F9C0FB454CCD6E6E5"><enum>(B)</enum><text>the subordination, exchange, modification, or termination action—</text> <clause id="H5CED5C050801408AA6FBCC9ADFC28CA2"><enum>(i)</enum><text>will address a compelling public need for which there is no practicable alternative, or</text> </clause><clause id="H74BEF26ECA5F4B9C8FE9D383494A365C"><enum>(ii)</enum><text>such action will further the practical administration of the program; and</text> </clause></subparagraph><subparagraph id="HC99BBE43126B494FAA990209B0A60894"><enum>(C)</enum><text>the subordination, exchange, modification, or termination action will result in comparable conservation value and equivalent or greater economic value to the United States.</text> </subparagraph></paragraph><paragraph id="H33F61E120C3D41EAB2C5CD0D0DCF02C9"><enum>(2)</enum><header>Consultation</header><text>The Secretary shall work with the current owner, and eligible entity if applicable, to address any subordination, exchange, termination, or modification of the interest, or portion of such interest in land.</text> </paragraph><paragraph id="HF5AE476F56754443923959AFBE13531E"><enum>(3)</enum><header>Notice</header><text>At least 90 days before taking any termination action described in paragraph (1), the Secretary shall provide written notice of such action to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.</text> </paragraph></subsection><subsection id="HE24928C2710E46A39C8DC6A44B600BA4"><enum>(d)</enum><header>Land enrolled in other programs</header> <paragraph id="H1D258594B6E545DE893CA800DEBDF088"><enum>(1)</enum><header>Conservation reserve program</header><text>The Secretary may terminate or modify an existing contract entered into under section 1231(a) if eligible land that is subject to such contract is transferred into the program.</text> </paragraph><paragraph id="H2A368A78E7A24A5AAF9666ACA1B9A387"><enum>(2)</enum><header>Other</header><text>Land enrolled in the wetlands reserve program, grassland reserve program, or farmland protection program shall be considered enrolled in this program.</text> </paragraph></subsection><subsection id="HD8CE2FDE2AEE4A498D32BB2B85F294B5"><enum>(e)</enum><header>Allocation of funds for agricultural land easements</header><text>Of the funds made available under section 1241 to carry out the program for a fiscal year, the Secretary shall, to the extent practicable, use no less than 40 percent for agricultural land easements.</text> </subsection></section></subtitle><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="ID5f8bb3c6da06480b915193486176a2c0"><enum>(b)</enum><header>Compliance with certain requirements</header><text>Before an eligible entity or owner of eligible land may receive assistance under subtitle H of title XII of the Food Security Act of 1985, the eligible entity or person shall agree, during the crop year for which the assistance is provided and in exchange for the assistance—</text> <paragraph id="IDdc7cfaf945fb426688cbe71eaed7a1cb"><enum>(1)</enum><text>to comply with applicable conservation requirements under subtitle B of title XII of that Act (16 U.S.C. 3811 et seq.); and</text> </paragraph><paragraph id="IDdeaf6f048d5041289933a0ea7ec47c01"><enum>(2)</enum><text>to comply with applicable wetland protection requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.).</text> </paragraph></subsection><subsection id="H0BE0B198BAA04BA893CDB2699CE9D005"><enum>(c)</enum><header>Cross reference</header><text display-inline="yes-display-inline">Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) is amended—</text> <paragraph id="HCDFCF69961E34429A770385AD1324B41"><enum>(1)</enum><text>in subsection (c)—</text> <subparagraph id="H607B7A8DC96F4489AEC2A4DF64921137"><enum>(A)</enum><text>in paragraph (1)—</text> <clause id="HF83267527C3C40FB9A4036DFAC105036"><enum>(i)</enum><text>by inserting <quote>and</quote> at the end of subparagraph (A);</text> </clause><clause id="H7E8523F7752A4D9CB2EB61A6FB8BDA86"><enum>(ii)</enum><text>by striking <quote>and</quote> at the end of subparagraph (B); and</text> </clause><clause id="H73AA772ECB294895AE242C0555023FD6"><enum>(iii)</enum><text>by striking subparagraph (C);</text> </clause></subparagraph><subparagraph id="HF35AE14C33F84066B3B5AE2D40794601"><enum>(B)</enum><text>by redesignating paragraph (2) as paragraph (3); and</text> </subparagraph><subparagraph id="H6CE37CEC112E4734B6E1D482389466A7"><enum>(C)</enum><text>by inserting after paragraph (1) the following:</text> <quoted-block display-inline="no-display-inline" id="H9B12D03F2AE14C3BBB9C6C032272632D" style="OLC"> <paragraph id="HDC6A0C84D7504D2F95E2FAA5335F6CF8"><enum>(2)</enum><text display-inline="yes-display-inline">the Agricultural Conservation Easement Program established under subtitle H; and</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="HEE5A3128211148F5BF85374714C5B544"><enum>(2)</enum><text>in subsection (f)—</text> <subparagraph id="id81BB78EC869949548C075C25BCB144C4"><enum>(A)</enum><text>in paragraph (1)—</text> <clause id="H55DDAA9CC57745F88DB0DF7D03954602"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>programs administered under subchapters B and C of chapter 1 of subtitle D</quote> and inserting <quote>conservation reserve program established under subchapter B of chapter 1 of subtitle D and the Agricultural Conservation Easement Program under subtitle H using wetland easements under section 1265C</quote>; and</text> </clause><clause id="HDD452160C47B43E2A399D2DCBF80E96B"><enum>(ii)</enum><text>in subparagraph (B), by striking <quote>subchapter C of chapter 1 of subtitle D</quote> and inserting <quote>the Agricultural Conservation Easement Program under subtitle H using wetland easements under section 1265C</quote>; and</text> </clause></subparagraph><subparagraph id="id18F8526D98EA45458D8EA84E64D342BB"><enum>(B)</enum><text>in paragraph (4), by striking <quote>subchapter C</quote> and inserting <quote>subchapter B</quote>.</text> </subparagraph></paragraph></subsection><subsection commented="no" id="HABF37670BAF04BC8A3F0EE2F9E0528B8"><enum>(d)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall take effect on October 1, 2012.</text> </subsection></section></subtitle><subtitle id="HE00574EB9C67473696D59B8BA7743C41"><enum>E</enum><header>Regional Conservation Partnership Program</header> <section id="HDE53D831B0624AE4BCA60C6A5A092925" section-type="subsequent-section"><enum>2401.</enum><header>Regional Conservation Partnership Program</header> <subsection id="H62FC81DB3FCF4CF7948A9F784C7CF3B0"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Title XII of the Food Security Act of 1985 is amended by inserting after subtitle H (as added by section 2301) the following:</text> <quoted-block display-inline="no-display-inline" id="id49F3B5724EB34114BB333F640BE25B88" style="OLC"> <subtitle id="H939D1C77486F46A48B7E0F3EAC95F648"><enum>I</enum><header>Regional Conservation Partnership Program</header> <section id="H84B57226F72A4C8C89A21254C9006B4A"><enum>1271.</enum><header>Establishment and purposes</header> <subsection id="H99709743F5854189A77615C9B9D36045"><enum>(a)</enum><header>Establishment</header><text>The Secretary shall establish a Regional Conservation Partnership Program to implement eligible activities through—</text> <paragraph id="HE07DDE4833DA4F39808092491FEC58FF"><enum>(1)</enum><text>partnership agreements with eligible partners; and</text> </paragraph><paragraph id="H78151176FF7D441EB1F80BEF50439C8F"><enum>(2)</enum><text>contracts with producers.</text> </paragraph></subsection><subsection id="H5429A4074F48427B83B9E2A53C71CFC5"><enum>(b)</enum><header>Purposes</header><text>The purposes of the program are—</text> <paragraph id="H5CEB2E2833094CDEA3AC34019593F966"><enum>(1)</enum><text display-inline="yes-display-inline">to combine the purposes and coordinate the functions of—</text> <subparagraph id="H201CC511E39C4F939145DDBCD78EE72F"><enum>(A)</enum><text>the agricultural water enhancement program established under section 1240I;</text> </subparagraph><subparagraph id="H8A76BA75B38E43FB908C707768083D59"><enum>(B)</enum><text>the Chesapeake Bay watershed program established under section 1240Q;</text> </subparagraph><subparagraph id="HCB6FF21BDAE24CDF93078749BA5E72F2"><enum>(C)</enum><text>the cooperative conservation partnership initiative established under section 1243; and</text> </subparagraph><subparagraph id="H93B9D18AE4EE458A9A4B157C8554C62D"><enum>(D)</enum><text>the Great Lakes basin program for soil erosion and sediment control established under section 1240P;.</text> </subparagraph></paragraph><paragraph id="HBE3B25CA3CB941309721EBA4EB1FC69A"><enum>(2)</enum><text display-inline="yes-display-inline">to further the conservation, restoration, and sustainable use of soil, water, wildlife, and related natural resources on a regional or watershed scale; and</text> </paragraph><paragraph id="H1A3C4A966F1A4255B4B8B96E5BFB2610"><enum>(3)</enum><text>to encourage partners to cooperate with producers in—</text> <subparagraph id="HBB54FE7434C247C8A80A3105B15C7177"><enum>(A)</enum><text>meeting or avoiding the need for national, State, and local natural resource regulatory requirements related to production; and</text> </subparagraph><subparagraph id="H2ADA70FC4BFA472A8FC97E84F0A5B1D6"><enum>(B)</enum><text>implementing projects that will result in the installation and maintenance of eligible activities that affect multiple agricultural or nonindustrial private forest operations on a local, regional, State, or multi-State basis.</text> </subparagraph></paragraph></subsection></section><section id="H76A8CA807A2A42AB86D29C53AC0577D0"><enum>1271A.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text> <paragraph id="HBB33992E280B4C0E9920CA1B2CCA0168"><enum>(1)</enum><header>Covered programs</header><text>The term <quote>covered programs</quote> means—</text> <subparagraph id="H1067E6CA473C422788289841D659FDE7"><enum>(A)</enum><text>the agricultural conservation easement program;</text> </subparagraph><subparagraph id="HC21BCE4E9C5A4E848F61A9D47F3C4AEE"><enum>(B)</enum><text>the environmental quality incentives program; and</text> </subparagraph><subparagraph id="H043992E9C22C49CAA32AA8E8B6D4E093"><enum>(C)</enum><text>the conservation stewardship program.</text> </subparagraph></paragraph><paragraph id="H63544743E2A549B5993D8F808F188041"><enum>(2)</enum><header>Eligible activity</header><text>The term <quote>eligible activity</quote> means any of the following conservation activities when delivered through a covered program:</text> <subparagraph id="H763CCB4D656F4D8096A5D422E38060C7"><enum>(A)</enum><text>Water quality restoration or enhancement projects, including nutrient management and sediment reduction.</text> </subparagraph><subparagraph id="id38F9F449EC6F49AB92B7F4DCCE2A6619"><enum>(B)</enum><text>Water quantity conservation, restoration, or enhancement projects relating to surface water and groundwater resources, including—</text> <clause id="HF90D3B15295B4319845FD39368ABFEC3"><enum>(i)</enum><text>the conversion of irrigated cropland to the production of less water-intensive agricultural commodities or dryland farming; and</text> </clause><clause id="H5B8C7938E78540D1858AE67C4FA1C309"><enum>(ii)</enum><text>irrigation system improvement and irrigation efficiency enhancement.</text> </clause></subparagraph><subparagraph id="HDE92AC9837914E08A8CF17C1077A107E"><enum>(C)</enum><text>Drought mitigation.</text> </subparagraph><subparagraph id="H6FDF046D535A418EB80DC5A069F49BBF"><enum>(D)</enum><text>Flood prevention.</text> </subparagraph><subparagraph id="H1CF80C3A34C24EB0867663422877EC6B"><enum>(E)</enum><text>Water retention.</text> </subparagraph><subparagraph id="H670421499A534E12A82DCA668F6B54CF"><enum>(F)</enum><text>Habitat conservation, restoration, and enhancement.</text> </subparagraph><subparagraph id="HDCDE88C50DA4423C8BBB043AC0D33632"><enum>(G)</enum><text>Erosion control.</text> </subparagraph><subparagraph id="H33E08137C4D8408888C431358CDB82C9"><enum>(H)</enum><text>Other related activities that the Secretary determines will help achieve conservation benefits.</text> </subparagraph></paragraph><paragraph id="H35AAF6DAAACF4E378ADE3609F54B4B26"><enum>(3)</enum><header>Eligible partner</header><text>The term <quote>eligible partner</quote> means any of the following:</text> <subparagraph display-inline="no-display-inline" id="H65513A5E283F4A028539D63C0AADFB7B"><enum>(A)</enum><text>An agricultural or silvicultural producer association or other group of producers.</text> </subparagraph><subparagraph id="H9F775DFDCA834D75B74E17ABB1701D80"><enum>(B)</enum><text>A State or unit of local government.</text> </subparagraph><subparagraph id="HB6CB94A6338940249AC4B0B6B5464C82"><enum>(C)</enum><text>An Indian tribe.</text> </subparagraph><subparagraph id="HCF8E3636996D400987BEF782C477B97C"><enum>(D)</enum><text>A farmer cooperative.</text> </subparagraph><subparagraph id="H3EDD1FA1D4274168B00064E9ECA92EAA"><enum>(E)</enum><text>An institution of higher education.</text> </subparagraph><subparagraph id="H67F6D09F3231499F98C52A2A700A0545"><enum>(F)</enum><text display-inline="yes-display-inline">An organization with an established history of working cooperatively with producers on agricultural land, as determined by the Secretary, to address—</text> <clause id="HF32BC1D17AA4482489D22C414172091C"><enum>(i)</enum><text>local conservation priorities related to agricultural production, wildlife habitat development, and nonindustrial private forest land management; or</text> </clause><clause id="HB8147DE7EC0E4532BB5B196E85B3C191"><enum>(ii)</enum><text>critical watershed-scale soil erosion, water quality, sediment reduction, or other natural resource concerns.</text> </clause></subparagraph></paragraph><paragraph id="H10929834EC754F3B87E19A7D530C5F40"><enum>(4)</enum><header>Partnership agreement</header><text>The term <quote>partnership agreement</quote> means an agreement between the Secretary and an eligible partner.</text> </paragraph><paragraph id="H6E7AA9F1D41C43F08D381DB6148D8DB1"><enum>(5)</enum><header>Program</header><text>The term <quote>program</quote> means the Regional Conservation Partnership Program established by this subtitle.</text> </paragraph></section><section id="H2E930699FD2A4AA9B6EC41620821AEC5"><enum>1271B.</enum><header>Regional conservation partnerships</header> <subsection id="H72EF55F0A0FF4F69BDDE6A3322F81029"><enum>(a)</enum><header>Partnership agreements authorized</header><text>The Secretary may enter into a partnership agreement with an eligible partner to implement a project that will assist producers with installing and maintaining an eligible activity.</text> </subsection><subsection id="H0CD6B9640CCB4C5CACCB4CE2EBEF3E22"><enum>(b)</enum><header>Length</header><text>A partnership agreement shall be for a period not to exceed 5 years, except that the Secretary may extend the agreement 1 time for up to 12 months when an extension is necessary to meet the objectives of the program.</text> </subsection><subsection id="H34B5F9616169485C9B7AAB96C169159B"><enum>(c)</enum><header>Duties of partners</header> <paragraph id="HAE759D4C40A642F8BF44571022DD4E77"><enum>(1)</enum><header>In general</header><text>Under a partnership agreement, the eligible partner shall—</text> <subparagraph id="H0D204014FAD246768A4D5F97EED9BFC1"><enum>(A)</enum><text>define the scope of a project, including—</text> <clause id="HE4A2CD33AAFB4C6086C4283CA06EA4C9"><enum>(i)</enum><text>the eligible activities to be implemented;</text> </clause><clause id="H8CF6222EADF64D9D823B0AAE248B2B7A"><enum>(ii)</enum><text>the potential agricultural or nonindustrial private forest operations affected;</text> </clause><clause id="H3CCC31F3BB354A65AC3BEC37E6715136"><enum>(iii)</enum><text>the local, State, multi-State or other geographic area covered; and</text> </clause><clause id="H0210E6DC14C74979B5F88ABDCBFA2D28"><enum>(iv)</enum><text>the planning, outreach, implementation and assessment to be conducted;</text> </clause></subparagraph><subparagraph id="HADE2120AABE94C94B7C5723FA2DE78F8"><enum>(B)</enum><text>conduct outreach and education to producers for potential participation in the project;</text> </subparagraph><subparagraph id="HCD2C7A78BD614E52872272223CCD7665"><enum>(C)</enum><text>at the request of a producer, act on behalf of a producer participating in the project in applying for assistance under section 1271C;</text> </subparagraph><subparagraph id="HB4EC66654C1C46288159BED7BE00CD7E"><enum>(D)</enum><text>leverage financial or technical assistance provided by the Secretary with additional funds to help achieve the project objectives;</text> </subparagraph><subparagraph id="HDEAEF3576A9B4538BFD8BF7ECFDBA13C"><enum>(E)</enum><text>conduct an assessment of the project’s effects; and</text> </subparagraph><subparagraph id="HB3C2B465CA1B427BBE592BDC647BB13C"><enum>(F)</enum><text>at the conclusion of the project, report to the Secretary on its results and funds leveraged.</text> </subparagraph></paragraph><paragraph id="H90D699865D014141BCC40DC949DE0CBC"><enum>(2)</enum><header>Contribution</header><text>A partner shall provide a significant portion of the overall costs of the scope of the project as determined by the Secretary.</text> </paragraph></subsection><subsection id="HDC37E8728DC24693B74038CBDE48291E"><enum>(d)</enum><header>Applications</header> <paragraph id="H461A5116E1934CE1BECEF7FBE0BBD216"><enum>(1)</enum><header>Competitive process</header><text>The Secretary shall conduct a competitive process to select applications for partnership agreements and may assess and rank applications with similar conservation purposes as a group.</text> </paragraph><paragraph id="H44B3CF65F8DF48DC9500E419A3A4C638"><enum>(2)</enum><header>Criteria used</header><text>In carrying out the process described in paragraph (1), the Secretary shall make public the criteria used in evaluating applications.</text> </paragraph><paragraph id="HA71EB92A286A46C2BA6CDC3574A65FAE"><enum>(3)</enum><header>Content</header><text>An application to the Secretary shall include a description of—</text> <subparagraph id="H92D8A23921664BF09BF35611AF30C80C"><enum>(A)</enum><text>the scope of the project as described in subsection (c)(1)(A);</text> </subparagraph><subparagraph id="H5D6B995FB2A741159F832655E13C9C8B"><enum>(B)</enum><text>the plan for monitoring, evaluating, and reporting on progress made towards achieving the project’s objectives;</text> </subparagraph><subparagraph id="H5B41F73507FF42AB91D7529B49C4DFAD"><enum>(C)</enum><text>the program resources requested for the project, including the covered programs to be used and estimated funding needed from the Secretary;</text> </subparagraph><subparagraph id="H99FA754A317942589A454DD210EA2C63"><enum>(D)</enum><text>the partners collaborating to achieve project objectives, including their roles, responsibilities, capabilities, and financial contribution; and</text> </subparagraph><subparagraph id="H8B2027EFF54A4F34BF8813044C1B52DB"><enum>(E)</enum><text>any other elements the Secretary considers necessary to adequately evaluate and competitively select applications for funding under the program.</text> </subparagraph></paragraph><paragraph id="id9FD80DA7F25347E598E92C00E3EF349B"><enum>(4)</enum><header>Application selection</header> <subparagraph id="id232EA179A3234AC2A71FAD8AA1BF5BEB"><enum>(A)</enum><header>Priority to certain applications</header><text>The Secretary shall give a higher priority to applications that—</text> <clause id="idb2b3c9e2b6a2496eaf006fb920b8c186"><enum>(i)</enum><text>assist producers in meeting or avoiding the need for a natural resource regulatory requirement;</text> </clause><clause id="ida011240344004d89b62c55d197793cb8"><enum>(ii)</enum><text>significantly leverage non-Federal financial and technical resources and coordinate with other local, State, regional, or national efforts;</text> </clause><clause id="idc67d67a1413b4da1a9475aedb9e70d8c"><enum>(iii)</enum><text>deliver high percentages of applied conservation to address conservation priorities or local, State, regional, or national conservation initiatives; or</text> </clause><clause id="id32ba7f1ffb834a728ad9ee8c4cb36771"><enum>(iv)</enum><text>provide innovation in conservation methods and delivery, including outcome-based performance measures and methods.</text> </clause></subparagraph><subparagraph id="ida9f0f40d8baf4e9a8603c8dc204dbad8"><enum>(B)</enum><header>Other applications</header><text>The Secretary may give priority to applications that—</text> <clause id="id099de78917c947289e0bd5f3d9697f0c"><enum>(i)</enum><text>have a high percentage of producers in the area to be covered by the agreement; or</text> </clause><clause id="ide1711b800ed84a8fab8814aa83bb414d"><enum>(ii)</enum><text>meet other factors that are important for achieving the purposes of the program, as determined by the Secretary.</text> </clause></subparagraph></paragraph></subsection></section><section id="HAD1D951D8B84429CBDB2AA3F32597193"><enum>1271C.</enum><header>Assistance to producers</header> <subsection id="HD9ED563E51F944318B58BDF599929BC4"><enum>(a)</enum><header>In general</header><text>The Secretary shall enter into contracts to provide financial and technical assistance to—</text> <paragraph id="H4D5E3B5B5E4442B8B5E0D1EEFC6C309D"><enum>(1)</enum><text>producers participating in a project with an eligible partner as described in section 1271B; or</text> </paragraph><paragraph id="H9E3366558114402787F638AC5D2EE722"><enum>(2)</enum><text>producers that fit within the scope of a project described in section 1271B or a critical conservation area designated pursuant to section 1271F, but who are seeking to implement an eligible activity independent of a partner.</text> </paragraph></subsection><subsection id="H207DDF89B5084BA99530DD0E8A707487"><enum>(b)</enum><header>Terms and conditions</header> <paragraph id="H5A74648FAB5A4CDC8FEB170D37122DF3"><enum>(1)</enum><header>Consistency with program rules</header> <subparagraph id="idECA7444C7B3F4472B4979C5C8E2EDDF0"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the Secretary shall ensure that the terms and conditions of a contract under this section are consistent with the applicable rules of the covered programs to be used as part of the project, as described in the application under section 1271B(d)(3)(C).</text> </subparagraph><subparagraph id="id90047c98fad943388adb86f39bfe5daf"><enum>(B)</enum><header>Adjustments</header><text>Except for statutory program requirements governing appeals, payment limitations, and conservation compliance, the Secretary may adjust the discretionary program rules of a covered program—</text> <clause id="idd83b797e31fe4e1b909a9462cc33fbe2"><enum>(i)</enum><text>to provide a simplified application and evaluation process; and</text> </clause><clause id="id0526b75ef0b847d79ad5e3abc2e74889"><enum>(ii)</enum><text>to better reflect unique local circumstances and purposes if the Secretary determines such adjustments are necessary to achieve the purposes of the program.</text> </clause></subparagraph></paragraph><paragraph id="ida91b9aee12b349bebd7158b7d71193f0"><enum>(2)</enum><header>Alternative funding arrangements</header> <subparagraph id="id109aa24b923c4f0586e5d869006915fb"><enum>(A)</enum><header>In general</header><text>For the purposes of providing assistance for land described in subsection (a) and section 1271F, the Secretary may enter into alternative funding arrangements with a multistate water resource agency or authority if—</text> <clause id="id446d8d919ed548109c7626f379a13ba8"><enum>(i)</enum><text>the Secretary determines that the goals and objectives of the program will be met by the alternative funding arrangements;</text> </clause><clause id="id02a5b55295874879b9e82303905e21af"><enum>(ii)</enum><text>the agency or authority certifies that the limitations established under this section on agreements with individual producers will not be exceeded; and</text> </clause><clause id="ide8794722c010495882223c1dfebe3aa3"><enum>(iii)</enum><text>all participating producers meet applicable payment eligibility provisions.</text> </clause></subparagraph><subparagraph id="id0985a4495a2944bbbfdf92b044aade52"><enum>(B)</enum><header>Conditions</header><text>As a condition on receipt of funding under subparagraph (A), the multistate water resource agency or authority shall agree—</text> <clause id="id5af13a71123147f0ad2e4ebaa206bf8d"><enum>(i)</enum><text>to submit an annual independent audit to the Secretary that describes the use of funds under this paragraph;</text> </clause><clause id="id3b2c0c83c2474aa6bc5665a937cdff27"><enum>(ii)</enum><text>to provide any data necessary for the Secretary to issue a report on the use of funds under this paragraph; and</text> </clause><clause id="idf4e2e4f78ee44f0fbdb1f88d8bed39d7"><enum>(iii)</enum><text>not to use any funds for administration or contracting with another entity.</text> </clause></subparagraph><subparagraph id="id82bdbed4a1ce48eb90a779bc51928d92"><enum>(C)</enum><header>Limitation</header><text>The Secretary may enter into not more than 10 alternative funding arrangements under this paragraph.</text> </subparagraph></paragraph></subsection><subsection id="H92C5E6613F53478D91C305787F5B80D8"><enum>(c)</enum><header>Payments</header> <paragraph id="HD3EBDEB9556E41B1BACBAE04500D7D13"><enum>(1)</enum><header>In general</header><text>In accordance with statutory requirements of the covered programs involved, the Secretary may make payments to a producer in an amount determined by the Secretary to be necessary to achieve the purposes of the program.</text> </paragraph><paragraph id="id098488ef677449848e935efc6675020a"><enum>(2)</enum><header>Payments to certain producers</header><text>The Secretary may provide payments for a period of 5 years—</text> <subparagraph id="idf5741ef26fe34013b34767618417c703"><enum>(A)</enum><text>to producers participating in a project that addresses water quantity concerns and in an amount sufficient to encourage conversion from irrigated to dryland farming; and</text> </subparagraph><subparagraph id="id8b7402e1d80047f7bfeddf2267353436"><enum>(B)</enum><text>to producers participating in a project that addresses water quality concerns and in an amount sufficient to encourage adoption of conservation practices and systems that improve nutrient management.</text> </subparagraph></paragraph><paragraph id="H4ADD4E2C74DE43F89ABD4690D50A6C8F"><enum>(3)</enum><header>Waiver authority</header><text>To assist in the implementation of the program, the Secretary may waive the applicability of the limitation in section 1001D(b)(2) of this Act for participating producers if the Secretary determines that the waiver is necessary to fulfill the objectives of the program.</text> </paragraph></subsection></section><section id="H48B5251696B347C9AE5D8C1663FC6D94"><enum>1271D.</enum><header>Funding</header> <subsection commented="no" id="H701BA578611A4C44AB86380849B7078A"><enum>(a)</enum><header>Availability of funds</header><text display-inline="yes-display-inline">The Secretary shall use $100,000,000 of the funds of the Commodity Credit Corporation for each of fiscal years 2013 through 2017 to carry out the program established under this subtitle.</text> </subsection><subsection id="H501F36CFC1B44FEF946CB10573898790"><enum>(b)</enum><header>Duration of availability</header><text>Funds made available under subsection (a) shall remain available until expended.</text> </subsection><subsection id="HA86861898BD245BCA20E5E9020A15C2F"><enum>(c)</enum><header>Additional funding and acres</header> <paragraph commented="no" id="H92752B2B4BDF4893B173FA90B18BE370"><enum>(1)</enum><header>In general</header><text>In addition to the funds made available under subsection (a), the Secretary shall reserve 8 percent of the funds and acres made available for a covered program for each of fiscal years 2013 through 2017 in order to ensure additional resources are available to carry out this program.</text> </paragraph><paragraph id="H989CB82DB7E7409EA1663ED751873AA0"><enum>(2)</enum><header>Unused funds and acres</header><text>Any funds or acres reserved under paragraph (1) for a fiscal year from a covered program that are not obligated under this program by April 1 of that fiscal year shall be returned for use under the covered program.</text> </paragraph></subsection><subsection commented="no" id="HA6B9C7B938AB4087A43DD10256CE26B0"><enum>(d)</enum><header>Allocation of funding</header><text>Of the funds and acres made available for the program under subsections (a) and (c), the Secretary shall allocate—</text> <paragraph commented="no" id="HEBD3EAD48D1A4D6EA5930420B21FE101"><enum>(1)</enum><text display-inline="yes-display-inline">25 percent of the funds and acres to projects based on a State competitive process administered by the State conservationist, with the advice of the State technical committee;</text> </paragraph><paragraph commented="no" id="H03C8BF10008C461F9F5A53A636E152BE"><enum>(2)</enum><text>40 percent of the funds and acres to projects based on a national competitive process to be established by the Secretary; and</text> </paragraph><paragraph commented="no" id="HA834A7F1372443EB8CB31CF88F50131C"><enum>(3)</enum><text>35 percent of the funds and acres to projects for the critical conservation areas designated in section 1271F.</text> </paragraph></subsection><subsection id="HBD17D683DE644A2CBBBE715C68A1EE3C"><enum>(e)</enum><header>Limitation on administrative expenses</header><text>None of the funds made available under the program may be used to pay for the administrative expenses of partners.</text> </subsection></section><section id="H45A4A91509974310A0F035AB8CEF905F"><enum>1271E.</enum><header>Administration</header> <subsection id="HBD1C054BCF2849739959E3369CAB1E7E"><enum>(a)</enum><header>Disclosure</header><text>In addition to the criteria used in evaluating applications as described in section 1271B(d)(2), the Secretary shall make publicly available information on projects selected through the competitive process described in section 1271B(d)(1).</text> </subsection><subsection id="H6FEFA6020FF04C9CA803E6A9A3197A4B"><enum>(b)</enum><header>Reporting</header><text>Not later than December 31, 2013, and for every 2 years thereafter, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the status of projects funded under the program, including—</text> <paragraph id="H532D87E22F7E493C84C1F9A25A490306"><enum>(1)</enum><text>the number and types of partners and producers participating in the partnership agreements selected;</text> </paragraph><paragraph id="H90817D40FB4541FEB27844F6F486898D"><enum>(2)</enum><text>the number of producers receiving assistance;</text> </paragraph><paragraph id="H757FE4B87D034585925E2A7215DDA021"><enum>(3)</enum><text>total funding committed to projects, including Federal and non-Federal resources; and</text> </paragraph><paragraph id="idBCC67205DC6B4F72B36988F1D1985AE9"><enum>(4)</enum><text>a description of how the funds under section 1271C(b)(3) are being administered, including—</text> <subparagraph id="ide6d6c0cc61514a559c572a294ac1eec6"><enum>(A)</enum><text>any oversight mechanisms that the Secretary has implemented;</text> </subparagraph><subparagraph id="id1b0e2ea4c7b544f79b8d6a531d149a99"><enum>(B)</enum><text>the process through which the Secretary is resolving appeals by program participants; and</text> </subparagraph><subparagraph id="id72d6488c34ad45549598d41b4c91d4da"><enum>(C)</enum><text>the means by which the Secretary is tracking adherence to any applicable provisions for payment eligibility.</text> </subparagraph></paragraph></subsection></section><section id="HB29C83CFDEE14B96A27B7AE41D11757E"><enum>1271F.</enum><header>Critical conservation areas</header> <subsection id="H0C0795903F354C03A49FFDB87EEDFFF9"><enum>(a)</enum><header>In general</header><text>When administering the funding described in section 1271D(d)(3), the Secretary shall select applications for partnership agreements and producer contracts within designated critical conservation areas.</text> </subsection><subsection id="idF21283D8EEEB4E49BE1946C1EAA6D4A1"><enum>(b)</enum><header>Critical conservation area designations</header> <paragraph id="id96FC8EF84BB744DAB53505412DE5DAD1"><enum>(1)</enum><header>In general</header><text>The Secretary shall designate up to 6 geographical areas as critical conservation areas based on the degree to which an area—</text> <subparagraph id="id70c6109448d6470bb083ca07fc7ba2a9"><enum>(A)</enum><text>includes multiple States with significant agricultural production;</text> </subparagraph><subparagraph id="idcfba7d37ad5f4b59876f1c53c42b4702"><enum>(B)</enum><text>is covered by an existing regional, State, binational, or multistate agreement or plan that has established objectives, goals and work plans and is adopted by a Federal, State, or regional authority;</text> </subparagraph><subparagraph id="id832c53abe51242dcb0d7feb4b5a99932"><enum>(C)</enum><text>has water quality concerns, including concerns for reducing erosion, promoting sediment control, and addressing nutrient management activities affecting large bodies of water of regional, national, or international significance;</text> </subparagraph><subparagraph id="id1ed992f2b6a246b694bdb69a840952e5"><enum>(D)</enum><text>has water quantity concerns, including—</text> <clause id="id8527d33108a74f3bba7b040e0cdcf338"><enum>(i)</enum><text>concerns for groundwater, surface water, aquifer, or other water sources; or</text> </clause><clause id="id084682fa97494909b7820b80da081707"><enum>(ii)</enum><text>a need to promote water retention and flood prevention; or</text> </clause></subparagraph><subparagraph id="ide3f15f73b7b44ed1aa60e62f4fc6586c"><enum>(E)</enum><text>is subject to regulatory requirements that could reduce the economic scope of agricultural operations within the area.</text> </subparagraph></paragraph><paragraph id="id318a4c1d38924ee7958f02512da102cf"><enum>(2)</enum><header>Expiration</header><text>Critical conservation area designations under this section shall expire after 5 years, subject to redesignation, except that the Secretary may withdraw designation from an area if the Secretary finds the area no longer meets the conditions described in paragraph (1).</text> </paragraph></subsection><subsection id="id16dfff073711498ba172b1d667ab7edf"><enum>(c)</enum><header>Administration</header> <paragraph id="id4e4d2e16a3b845dab63c11b43fda49c0"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the Secretary shall administer any partnership agreement or producer contract under this section in a manner that is consistent with the terms of the program.</text> </paragraph><paragraph id="ideceba9137f7d4e229f2a47785516a869"><enum>(2)</enum><header>Relationship to existing activity</header><text>The Secretary shall, to the maximum extent practicable, ensure that eligible activities carried out in critical conservation areas designated under this section complement and are consistent with other Federal and State programs and water quality and quantity strategies.</text> </paragraph></subsection></section></subtitle><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="HA4988FBCE07A4F58B9C9B7C39E01B632"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall take effect on October 1, 2012.</text> </subsection></section></subtitle><subtitle id="H056B2D9157674C87A9B31E76AAD4AC08"><enum>F</enum><header>Other Conservation Programs</header> <section id="H5E6BD7E2B3244BCD9EB8926C03DE3708"><enum>2501.</enum><header>Conservation of private grazing land</header><text display-inline="no-display-inline">Section 1240M(e) of the Food Security Act of 1985 (16 U.S.C. 3839bb(e)) is amended inserting <quote>and $30,000,000 for each of fiscal years 2013 through 2017</quote> before the period at the end.</text> </section><section id="H0ACCF7D503A743E6822CAF076B21174A"><enum>2502.</enum><header>Grassroots source water protection program</header><text display-inline="no-display-inline">Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 3839bb–2(b)) is amended by inserting <quote>and $15,000,000 for each of fiscal years 2013 through 2017</quote> before the period at the end.</text> </section><section id="HBE4CF0EBBFA544A19496E0371A9B3E21"><enum>2503.</enum><header>Voluntary public access and habitat incentive program</header> <subsection id="H690F9626EA654A0683121D0E67153DF4"><enum>(a)</enum><header>Funding</header><text display-inline="yes-display-inline">Section 1240R(f) of the Food Security Act of 1985 (16 U.S.C. 3839bb–5(f)) is amended by inserting <quote>and $40,000,000 for the period of fiscal years 2013 through 2017</quote> before the period at the end .</text> </subsection><subsection id="H585D706083134ED7BC7B02A9D446F97C"><enum>(b)</enum><header>Report on program effectiveness</header><text display-inline="yes-display-inline">Not later than 2 years after the date of enactment of this Act, the Secretary of Agriculture shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report evaluating the effectiveness of the voluntary public access and habitat incentive program established by section 1240R of the Food Security Act of 1985 (16 U.S.C. 3839bb–5), including—</text> <paragraph id="H6BC69FD5E121493998DB7C74204818B1"><enum>(1)</enum><text>identifying cooperating agencies;</text> </paragraph><paragraph id="H88BB06006BD046F3813E1117026A7997"><enum>(2)</enum><text>identifying the number of land holdings and total acres enrolled by State;</text> </paragraph><paragraph id="H72C4E519F6974F2C8AFA78EF13603E41"><enum>(3)</enum><text>evaluating the extent of improved access on eligible land, improved wildlife habitat, and related economic benefits; and</text> </paragraph><paragraph id="H7BE3BAEBCD7348C697290FB8FD425F9A"><enum>(4)</enum><text>any other relevant information and data relating to the program that would be helpful to such Committees.</text> </paragraph></subsection><subsection id="HFDD6B06EBE0E4413B9118A7BC91F5CAE"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall take effect on October 1, 2012.</text> </subsection></section><section id="H313B0CF3A44648B2A7E4B894F8429257"><enum>2504.</enum><header>Agriculture conservation experienced services program</header> <subsection id="H54441B57CD72446BB89888A0234622B1"><enum>(a)</enum><header>Funding</header><text display-inline="yes-display-inline">Section 1252 of the Food Security Act of 1985 (16 U.S.C. 3851) is amended by striking subsection (c) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HEF51442C77AB4083B9D3D5B93B19D7FE" style="OLC"> <subsection id="H56E5545F3D2E45D99BD50B94DF550A95"><enum>(c)</enum><header>Funding</header> <paragraph id="H22AE9E20CBE54709BB8CE8C4F7A4DE0E"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary may carry out the ACES program using funds made available to carry out each program under this title.</text> </paragraph><paragraph id="HB91919DA949246C38679AC95AE308978"><enum>(2)</enum><header>Exclusion</header><text display-inline="yes-display-inline">Funds made available to carry out the conservation reserve program may not be used to carry out the ACES program.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H05B6B46EC03D4242B5BCAC2645038349"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall take effect on October 1, 2012.</text> </subsection></section><section id="HCB7AAA76250B46A5BCE4A95043371487"><enum>2505.</enum><header>Small watershed rehabilitation program</header><text display-inline="no-display-inline">Section 14(h)(2)(E) of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1012(h)(2)(E)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="idE13C39FCA5DD4FA093E97345751B21A8"><enum>2506.</enum><header>Terminal lakes assistance</header><text display-inline="no-display-inline">Section 2507 of the Food, Security, and Rural Investment Act of 2002 (43 U.S.C. 2211 note; Public Law 107–171) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id9b8bedb764c14a7bb9cc92d29a67d57c" style="OLC"> <section id="id9f95894884204f02a9c4dfa56324dae8"><enum>2507.</enum><header>Terminal lakes assistance</header> <subsection id="id9c36fc54e4c54033a2d94d4a67d8f7df"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="id6c98cedf77d2474f9da252c040ddcdf8"><enum>(1)</enum><header>Eligible land</header><text>The term <term>eligible land</term> means privately owned agricultural land (including land in which a State has a property interest as a result of state water law)—</text> <subparagraph id="id04b08f48754f4d478c37bd334b1d1ba2"><enum>(A)</enum><text>that a landowner voluntarily agrees to sell to a State; and</text> </subparagraph><subparagraph id="id6fb0a31c0ad34560b9f1e1011d6f6204"><enum>(B)</enum><text>which—</text> <clause id="id9ec7a26f69204b539a826693e4eef5bd"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="idCA9D75A7EC5C485295C6F53979374144"><enum>(I)</enum><text>is ineligible for enrollment as a wetland easement established under the Agricultural Conservation Easement Program under subtitle H of the Food Security Act of 1985;</text> </subclause><subclause id="id970C969A2299438F9D5A4587FAB54A32" indent="up1"><enum>(II)</enum><text>is flooded to—</text> <item id="id2AEDCC163CAF4FE1A965D99E99C17DEC"><enum>(aa)</enum><text>an average depth of at least 6.5 feet; or</text> </item><item id="id4751591CC3014FCCB84BCB170F8225B9"><enum>(bb)</enum><text>a level below which the State determines the management of the water level is beyond the control of the State or landowner; or</text> </item></subclause><subclause id="idD812BFF5D6ED4DFAB1FCD46822ED24C3" indent="up1"><enum>(III)</enum><text>is inaccessible for agricultural use due to the flooding of adjoining property (such as islands of agricultural land created by flooding);</text> </subclause></clause><clause id="id2d8f2d08cb75498a8219521b804b09f7"><enum>(ii)</enum><text>is located within a watershed with water rights available for lease or purchase; and</text> </clause><clause id="ida1025dda075a47218c49997cc941c5f6"><enum>(iii)</enum><text>has been used during at least 5 of the immediately preceding 30 years—</text> <subclause id="id1a939563baaa431cabba478d2ea23420"><enum>(I)</enum><text>to produce crops or hay; or</text> </subclause><subclause id="idb9b84337e9624e81835224c560608c13"><enum>(II)</enum><text>as livestock pasture or grazing.</text> </subclause></clause></subparagraph></paragraph><paragraph id="id40a63628c93642bda39244a88de2e692"><enum>(2)</enum><header>Program</header><text>The term <term>program</term> means the voluntary land purchase program established under this section.</text> </paragraph><paragraph id="id0fad01a5ce954231b116fb00b4f15fd4"><enum>(3)</enum><header>Terminal lake</header><text>The term <term>terminal lake</term> means a lake and its associated riparian and watershed resources that is—</text> <subparagraph id="id9e86d0edcd4043568fa386441ddd6c24"><enum>(A)</enum><text>considered flooded because there is no natural outlet for water accumulating in the lake or the associated riparian area such that the watershed and surrounding land is consistently flooded; or</text> </subparagraph><subparagraph id="id6b192a3bc5294dcbbc22fde6e8cfd544"><enum>(B)</enum><text>considered terminal because it has no natural outlet and is at risk due to a history of consistent Federal assistance to address critical resource conditions, including insufficient water available to meet the needs of the lake, general uses, and water rights.</text> </subparagraph></paragraph></subsection><subsection id="idd4c6ffee0675455dac2c40ccd3734a4d"><enum>(b)</enum><header>Assistance</header><text>The Secretary shall—</text> <paragraph id="id6bf0ef85eab04520a21a586a3fd5aa3d"><enum>(1)</enum><text>provide grants under subsection (c) for the purchase of eligible land impacted by a terminal lake described in subsection (a)(3)(A); and</text> </paragraph><paragraph id="idc83e5a1149b74c8faddec633ee0c279d"><enum>(2)</enum><text>provide funds to the Secretary of the Interior pursuant to subsection (e)(2) with assistance in accordance with subsection (d) for terminal lakes described in subsection (a)(3)(B).</text> </paragraph></subsection><subsection id="id36ff0c8a4deb4052a636bf7413ea7a97"><enum>(c)</enum><header>Land purchase grants</header> <paragraph id="id95cf4dd68b324c7fb715e75ea7c682d2"><enum>(1)</enum><header>In general</header><text>Using funds provided under subsection (e)(1), the Secretary shall make available land purchase grants to States for the purchase of eligible land in accordance with this subsection.</text> </paragraph><paragraph id="id1fa9176223bf46f2b57a89fa5841c12f"><enum>(2)</enum><header>Implementation</header> <subparagraph id="ida65eb5de33dd47b79e804a3617603a01"><enum>(A)</enum><header>Amount</header><text>A land purchase grant shall be in an amount not to exceed the lesser of—</text> <clause id="idda64c15e17014385a79a680ef77994af"><enum>(i)</enum><text>50 percent of the total purchase price per acre of the eligible land; or</text> </clause><clause id="id1fd8d0a806dd44a5acdc36183818ff1f"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idA8930B47EECC449C856F54CA6F9C0B53"><enum>(I)</enum><text>in the case of eligible land that was used to produce crops or hay, $400 per acre; and</text> </subclause><subclause id="idF525CE28F79C4228890ABD8707774D3D" indent="up1"><enum>(II)</enum><text>in the case of eligible land that was pasture or grazing land, $200 per acre.</text> </subclause></clause></subparagraph><subparagraph id="id24a3867f6e0d4fb7b112873f76217a3b"><enum>(B)</enum><header>Determination of purchase price</header><text>A State purchasing eligible land with a land purchase grant shall ensure, to the maximum extent practicable, that the purchase price of such land reflects the value, if any, of other encumbrances on the eligible land to be purchased, including easements and mineral rights.</text> </subparagraph><subparagraph id="idc283c92e8c6b40c88a7c10645c508e08"><enum>(C)</enum><header>Cost-share required</header><text>To be eligible to receive a land purchase grant, a State shall provide matching non-Federal funds in an amount equal to 50 percent of the amount described in subparagraph (A), including additional non-Federal funds.</text> </subparagraph><subparagraph id="id1ef348075a054996add60b074995f10b"><enum>(D)</enum><header>Conditions</header><text>To receive a land purchase grant, a State shall agree—</text> <clause id="id9e518bf975624d579fa7d1c5eba117a0"><enum>(i)</enum><text>to ensure that any eligible land purchased is—</text> <subclause id="id0021488a915e4ac19edb75f7b1ee97c8"><enum>(I)</enum><text>conveyed in fee simple to the State; and</text> </subclause><subclause id="id3889f56dd2814a51891981c39b20ed54"><enum>(II)</enum><text>free from mortgages or other liens at the time title is transferred;</text> </subclause></clause><clause id="ida0a38e8ff86e41c69c4f7f43605495ef"><enum>(ii)</enum><text>to maintain ownership of the eligible land in perpetuity;</text> </clause><clause id="idea339699bda94a70957b10f561cd70ae"><enum>(iii)</enum><text>to pay (from funds other than grant dollars awarded) any costs associated with the purchase of eligible land under this section, including surveys and legal fees; and</text> </clause><clause id="id68aee147767b45aaab5ff77757b6c97a"><enum>(iv)</enum><text>to keep eligible land in a conserving use, as defined by the Secretary.</text> </clause></subparagraph><subparagraph id="idb7d8f0f73eb44c4da7842db91c09c92e"><enum>(E)</enum><header>Loss of federal benefits</header><text>Eligible land purchased with a grant under this section shall lose eligibility for any benefits under other Federal programs, including—</text> <clause id="idec459daa537049e1a45d28199887bbeb"><enum>(i)</enum><text>benefits under title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.);</text> </clause><clause id="id6bc992205a0e4a8882b4a41cbc1ce269"><enum>(ii)</enum><text>benefits under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.); and</text> </clause><clause id="idd7721f952ff440c380eff2ed783778bc"><enum>(iii)</enum><text>covered benefits described in section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308–3a).</text> </clause></subparagraph><subparagraph id="id932f9e77bc164c55baec1553e652c263"><enum>(F)</enum><header>Prohibition</header><text>Any Federal rights or benefits associated with eligible land prior to purchase by a State may not be transferred to any other land or person in anticipation of or as a result of such purchase.</text> </subparagraph></paragraph></subsection><subsection id="id11fcc8a6c84b476f9f9102eb2ee59487"><enum>(d)</enum><header>Water assistance</header> <paragraph id="id17c32f667b9e41f5b2208b746f5751eb"><enum>(1)</enum><header>In general</header><text>The Secretary of the Interior, acting through the Commissioner of Reclamation, may use the funds described in subsection (e)(2) to administer and provide financial assistance to carry out this subsection to provide water and assistance to a terminal lake described in subsection (a)(3)(B) through willing sellers or willing participants only—</text> <subparagraph id="id3cf93c0a28f8468f951c1e9728fe0396"><enum>(A)</enum><text>to lease water;</text> </subparagraph><subparagraph id="ide5675976054c467a9184c9ecb317fb73"><enum>(B)</enum><text>to purchase land, water appurtenant to the land, and related interests; and</text> </subparagraph><subparagraph id="id41a1e65885b2461a928e89f1e936390e"><enum>(C)</enum><text>to carry out research, support and conservation activities for associated fish, wildlife, plant, and habitat resources.”</text> </subparagraph></paragraph><paragraph id="id253604c669a7492595de218b47e24679"><enum>(2)</enum><header>Exclusions</header><text>The Secretary of the Interior may not use this subsection to deliver assistance to the Great Salt Lake in Utah, lakes that are considered dry lakes, or other lakes that do not meet the purposes of this section, as determined by the Secretary of the Interior.</text> </paragraph><paragraph id="id408fdce506614a81aebadeb59078e9fd"><enum>(3)</enum><header>Transitional provision</header> <subparagraph id="idA93B5B05DAA94F7DBD402378281F6EC4"><enum>(A)</enum><header>In general</header><text>Notwithstanding any other provision of this section, any funds made available before the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title> under a provision of law described in subparagraph (B) shall remain available using the provisions of law (including regulations) in effect on the day before the date of enactment of that Act.</text> </subparagraph><subparagraph id="id048D1D78C331459B8B74F402EBDD8B6F"><enum>(B)</enum><header>Described laws</header><text>The provisions of law described in this section are—</text> <clause id="id57A76D748BA244BD96E439414600BE36"><enum>(i)</enum><text>section 2507 of the Farm Security and Rural Investment Act of 2002 (43 U.S.C. 2211 note; Public Law 107–171) (as in effect on the day before the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>);</text> </clause><clause id="idFE124D84DEA14933B4F7E8086C098F74"><enum>(ii)</enum><text>section 207 of the Energy and Water Development Appropriations Act, 2003 (Public Law 108–7; 117 Stat. 146);</text> </clause><clause id="id5E259D9AC5E84BECBA997B7DC2DD4742"><enum>(iii)</enum><text>section 208 of the Energy and Water Development Appropriations Act, 2006 (Public Law 109–103; 119 Stat. 2268, 123 Stat. 2856); and</text> </clause><clause id="id9B622633E3E74FBB807C44DFDF279B0F"><enum>(iv)</enum><text>section 208 of the Energy and Water Development and Related Agencies Appropriations Act, 2010 (Public Law 111–85; 123 Stat. 2858, 123 Stat. 2967, 125 Stat. 867).</text> </clause></subparagraph></paragraph></subsection><subsection id="idae99e31f9e7845bc83a12edb5fdf61fe"><enum>(e)</enum><header>Funding</header> <paragraph id="idae3335956ebc4e5c8c3207b4766a591a"><enum>(1)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to the Secretary to carry out subsection (c) $25,000,000, to remain available until expended.</text> </paragraph><paragraph id="idf43e780c9f7842f39348c0e589bf2754"><enum>(2)</enum><header>Commodity credit corporation</header><text>As soon as practicable after the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>, the Secretary shall transfer to the Bureau of Reclamation Water and Related Resources Account $150,000,000 from the funds of the Commodity Credit Corporation to carry out subsection (d), to remain available until expended.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section></subtitle><subtitle id="H7B94A6E5A32D40A8A4CEC0E03EBB4902"><enum>G</enum><header>Funding and administration</header> <section id="HA3AA64281C224783A488D02005F09275"><enum>2601.</enum><header>Funding</header> <subsection id="H4937EB6839C3443684A64BDE3E4815E2"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended by striking subsection (a) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HAB7627EB41A74D5EB6849617F9ACC37F" style="OLC"> <subsection id="H0FCD1A8036DC4E26AFE05AC0698712B8"><enum>(a)</enum><header>Annual funding</header><text display-inline="yes-display-inline">For each of fiscal years 2013 through 2017, the Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out the following programs under this title (including the provision of technical assistance):</text> <paragraph id="H742961B6D4244E27878884FBD33435BB"><enum>(1)</enum><text display-inline="yes-display-inline">The conservation reserve program under subchapter B of chapter 1 of subtitle D, including, to the maximum extent practicable—</text> <subparagraph id="id8537D0A31F1D478A8569EEDD122ECA00"><enum>(A)</enum><text>$10,000,000 for the period of fiscal years 2013 through 2017 to provide payments under paragraph (3) of section 1234(b) in connection with thinning activities conducted on land described in subparagraph (B)(iii) of that paragraph; and</text> </subparagraph><subparagraph id="id9775983A135145DE8B9AC81719576B63"><enum>(B)</enum><text display-inline="yes-display-inline">$50,000,000 for the period of fiscal years 2013 through 2017 to carry out section 1235(f) to facilitate the transfer of land subject to contracts from retired or retiring owners and operators to beginning farmers or ranchers and socially disadvantaged farmers or ranchers.</text> </subparagraph></paragraph><paragraph id="H8C769F6419AD4254BF26D22C6FE0CA84"><enum>(2)</enum><text>The Agricultural Conservation Easement Program under subtitle H using to the maximum extent practicable—</text> <subparagraph id="HB671980C524B45AF9ABA13A8805BE4AB"><enum>(A)</enum><text>$223,000,000 for fiscal year 2013;</text> </subparagraph><subparagraph id="H331891F7770B4D01AB76E5FCC93F6461"><enum>(B)</enum><text>$702,000,000 for fiscal year 2014;</text> </subparagraph><subparagraph id="H050F6454E5F84CCCA11C5E5362EB6AD6"><enum>(C)</enum><text>$500,000,000 for fiscal year 2015;</text> </subparagraph><subparagraph id="HCE4B3CB1A22347F6A81070F1133610A1"><enum>(D)</enum><text>$525,000,000 for fiscal year 2016; and</text> </subparagraph><subparagraph id="HF2FF290010774D9490E16453830DA18C"><enum>(E)</enum><text>$250,000,000 for fiscal year 2017.</text> </subparagraph></paragraph><paragraph id="H62D1ED9BCBED4927A0E69640D7BFEBF3"><enum>(3)</enum><text>The conservation security program under subchapter A of chapter 2 of subtitle D, using such sums as are necessary to administer contracts entered into before September 30, 2008.</text> </paragraph><paragraph id="H910477CAEE834F25AEE27AEAD5F1D518"><enum>(4)</enum><text>The conservation stewardship program under subchapter B of chapter 2 of subtitle D.</text> </paragraph><paragraph id="HD6591F9E1B2C4E449FCDC38100BD2B98"><enum>(5)</enum><text>The environmental quality incentives program under chapter 4 of subtitle D, using, to the maximum extent practicable—</text> <subparagraph id="H634C72C1E843408790FA0DB3D2C4C1E4"><enum>(A)</enum><text>$1,455,000,000 for fiscal year 2013;</text> </subparagraph><subparagraph id="H861E9993EA514FDFA5C8CDB59E46A2D6"><enum>(B)</enum><text>$1,645,000,000 for fiscal year 2014; and</text> </subparagraph><subparagraph id="HFC86FA21C03040D88E2E388DFFEB8DDD"><enum>(C)</enum><text>$1,650,000,000 for each of fiscal years 2015 through 2017.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HAB2D1F43F82E439DAFC88C165E5155A8"><enum>(b)</enum><header>Guaranteed availability of funds</header><text display-inline="yes-display-inline">Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended—</text> <paragraph id="HD8D6473C17F743D4BA964DB2F703B34F"><enum>(1)</enum><text>by redesignating subsections (b) through (h) as subsections (c) through (i), respectively; and</text> </paragraph><paragraph id="H79C79946C67841358AB145F99681176A"><enum>(2)</enum><text>by inserting after subsection (a) the following:</text> <quoted-block display-inline="no-display-inline" id="H7AF8CD0F8AB0451580AC3066FA9A1718" style="OLC"> <subsection commented="no" id="H1BC1D09342C345AB83494754CFAD0E20"><enum>(b)</enum><header>Availability of funds</header><text display-inline="yes-display-inline">Amounts made available by subsection (a) shall be used by the Secretary to carry out the programs specified in such subsection for fiscal years 2013 through 2017 and shall remain available until expended. Amounts made available for the programs specified in such subsection during a fiscal year through modifications, cancellations, terminations, and other related administrative actions and not obligated in that fiscal year shall remain available for obligation during subsequent fiscal years, but shall reduce the amount of additional funds made available in the subsequent fiscal year by an amount equal to the amount remaining unobligated.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection display-inline="no-display-inline" id="H61BF11326DAD4D01A2E4897DEB7D6673"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall take effect on October 1, 2012.</text> </subsection></section><section id="H125B8C55B1CC47EBA812A580489531FE"><enum>2602.</enum><header>Technical assistance</header><text display-inline="no-display-inline">Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended by striking subsection (c) (as redesignated by section 2601(b)(1)) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HB8767CBBA3D646648CA64457F5375C77" style="OLC"> <subsection id="H8DD11D93FEF346AA84E132EFD84DB1AB"><enum>(c)</enum><header>Technical assistance</header> <paragraph id="H1EC6A2DE38A6422B94B80E5A307F73EF"><enum>(1)</enum><header>Availability of funds</header><text display-inline="yes-display-inline">Commodity Credit Corporation funds made available for a fiscal year for each of the programs specified in subsection (a)—</text> <subparagraph id="HAB2F4739D6AB4FD695E2472BD0BC981A"><enum>(A)</enum><text>shall be available for the provision of technical assistance for the programs for which funds are made available as necessary to implement the programs effectively; and</text> </subparagraph><subparagraph id="HFFCDAD28C4C04BB38CC87966200337AD"><enum>(B)</enum><text>shall not be available for the provision of technical assistance for conservation programs specified in subsection (a) other than the program for which the funds were made available.</text> </subparagraph></paragraph><paragraph id="H24085593260B42A99C105C525BFB1EF0"><enum>(2)</enum><header>Report</header><text>Not later than December 31, 2012, the Secretary shall submit (and update as necessary in subsequent years) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report—</text> <subparagraph id="H7349A805E5D04533AB283CB1E2CD5398"><enum>(A)</enum><text>detailing the amount of technical assistance funds requested and apportioned in each program specified in subsection (a) during the preceding fiscal year; and</text> </subparagraph><subparagraph id="H6588B46A9D7C429FB3D7B30E9CB4ADC1"><enum>(B)</enum><text>any other data relating to this provision that would be helpful to such Committees.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H737902A33E1E4FE7AA06182106AEBD14"><enum>2603.</enum><header>Regional equity</header><text display-inline="no-display-inline">Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended by striking subsection (e) (as redesignated by section 2601(b)(1)) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H59419D50579149E1BCEE754BFE006DAD" style="OLC"> <subsection id="HDB27D062D1C7446FAC7C59BED0258F96"><enum>(e)</enum><header>Regional equity</header> <paragraph id="HD82D16217E744C25987E01487322FBA7"><enum>(1)</enum><header>Equitable distribution</header><text display-inline="yes-display-inline">When determining funding allocations each fiscal year, the Secretary shall, after considering available funding and program demand in each State, provide a distribution of funds for conservation programs under subtitle D (excluding the conservation reserve program under subchapter B of chapter 1), subtitle H (excluding wetland easements under section 1265C), and subtitle I to ensure equitable program participation proportional to historical funding allocations and usage by all States.</text> </paragraph><paragraph id="id977939b4f9c6418ca0d8c7a656ff15e3"><enum>(2)</enum><header>Minimum percentage</header><text>In determining the specific funding allocations under paragraph (1), the Secretary shall—</text> <subparagraph id="id5A3D45F8A66342249468981228EFDBFA"><enum>(A)</enum><text>ensure that during the first quarter of each fiscal year each State has the opportunity to establish that the State can use an aggregate allocation amount of at least 0.6 percent of the funds made available for those conservation programs; and</text> </subparagraph><subparagraph id="idFC40756C5B9D454DA3F8318E4909DDA6"><enum>(B)</enum><text>for each State that can so establish, provide an aggregate amount of at least 0.6 percent of the funds made available for those conservation programs.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="idB97367DC2932463F97500A9C9035D3D6"><enum>2604.</enum><header>Reservation of funds to provide assistance to certain farmers or ranchers for conservation access</header><text display-inline="no-display-inline">Subsection (h) of section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) (as redesignated by section 2601(b)(1)) is amended—</text> <paragraph id="idA9CDE671380D43C9A65F1AE4953D65F3"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1) by striking <quote>2012</quote> and inserting <quote>2017</quote>; and</text> </paragraph><paragraph id="idDDF8F5A7C6CF42568F43C55B09CE57A4"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id2C93688AE76444B6A848D5FC9828EE08" style="OLC"> <paragraph id="idF1C190BC55924946A58347DE37948116"><enum>(4)</enum><header>Preference</header><text>In providing assistance under paragraph (1), the Secretary shall give preference to a veteran farmer or rancher (as defined in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e))) that qualifies under subparagraph (A) or (B) of paragraph (1).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H320DDBC8E90B47B0BECA80E2A680ACAC"><enum>2605.</enum><header>Annual report on program enrollments and assistance</header><text display-inline="no-display-inline">Subsection (i) of section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) (as redesignated by section 2601(b)(1)) is amended—</text> <paragraph id="HEA5FCC171D684D969ED1EFBFDCE7FFF0"><enum>(1)</enum><text>in paragraph (1), by striking <quote>wetlands reserve program</quote> and inserting <quote>agricultural conservation easement program</quote>;</text> </paragraph><paragraph id="HE78CD342D8BB4447A8E5EB53B3EA0B07"><enum>(2)</enum><text>by striking paragraphs (2) and (3) and redesignating paragraphs (4), (5), and (6) as paragraphs (2), (3), and (4), respectively;</text> </paragraph><paragraph id="HEF30FCF98F78418C9260FE5A7B8315E4"><enum>(3)</enum><text>in paragraph (3) (as so redesignated)—</text> <subparagraph id="id93274FB369A7466B9C3686D29F595664"><enum>(A)</enum><text>by striking <quote>agricultural water enhancement program</quote> and inserting <quote>regional conservation partnership program</quote>; and</text> </subparagraph><subparagraph id="id3489654E838F4754844EAE5AFB6366E1"><enum>(B)</enum><text>by striking <quote>section 1240I(g)</quote> and inserting <quote>section 1271C(c)(3)</quote>; and</text> </subparagraph></paragraph><paragraph id="H2027503CA8C84C75BF7525848D44A721"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H706781F9093E48819D03D93EA620B39E" style="OLC"> <paragraph id="H67917CB2AFAA420C9C1EE7894DFE150C"><enum>(5)</enum><text display-inline="yes-display-inline">Payments made under the conservation stewardship program.</text> </paragraph><paragraph id="id785EF06B00AA44B5B068A9CFD9632BAF"><enum>(6)</enum><text display-inline="yes-display-inline">Waivers granted by the Secretary under section 1265B(b)(2)(C).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H01378C1463524C1A899CDC026865B21E"><enum>2606.</enum><header>Administrative requirements for conservation programs</header><text display-inline="no-display-inline">Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) is amended—</text> <paragraph id="idB456C9E6AC0748778A29B566C616589F"><enum>(1)</enum><text>in subsection (a)(2), by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id64AAF6F2B9C649BDA009F0712A1D524B" style="OLC"> <subparagraph id="id3840cce7d8004f77b233d75a49e98f3f"><enum>(E)</enum><text>Veteran farmers or ranchers (as defined in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e))).</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="id634C584AD9884B5882CA51DB67138A07"><enum>(2)</enum><text>in subsection (d), by inserting <quote>, H, and I</quote> before the period at the end;</text> </paragraph><paragraph id="id6E5FC7269A9040E5A4205B3B041B599C"><enum>(3)</enum><text>in subsection (f)—</text> <subparagraph id="idB4B305A7DE8542FBBA379518FE8F2B87"><enum>(A)</enum><text>in paragraph (1)(B), by striking <quote>country</quote> and inserting <quote>county</quote>; and</text> </subparagraph><subparagraph id="idAE64DB2E3A5B430291ECB9959D0E46CB"><enum>(B)</enum><text>in paragraph (3), by striking <quote>subsection (c)(2)(B) or (f)(4)</quote> and inserting <quote>subsection (c)(2)(A)(ii) or (f)(2)</quote>;</text> </subparagraph></paragraph><paragraph id="idF194294E8E80457EB1BF5F4DCD33112D"><enum>(4)</enum><text>by striking subsection (i) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idE4CF560A205340B6843920B3296BDBD7" style="OLC"> <subsection id="ID0fd1f8f168e74858b46ad029b9a9ff7e"><enum>(i)</enum><header>Conservation application process</header> <paragraph id="idC3C9A89BE8C54DACAA4B4BEADCB3ABEC"><enum>(1)</enum><header>Initial application</header> <subparagraph id="id4503093129E14D9E87F461CAABDE025C"><enum>(A)</enum><header>In general</header><text>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 Secretary (referred to in this subsection as the <term>initial application</term>).</text> </subparagraph><subparagraph id="id56683DCFE0FF44019AA5BEBF6E8603CD"><enum>(B)</enum><header>Requirements</header><text>To the maximum extent practicable, the Secretary shall ensure that—</text> <clause id="id7169CA282E8E4084B48759B1F5A84766"><enum>(i)</enum><text>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</text> </clause><clause id="idAF4B0137BA8641A786B5DCA9914B2D66"><enum>(ii)</enum><text>the initial application process is streamlined to minimize complexity and redundancy.</text> </clause></subparagraph></paragraph><paragraph id="ID0c94dfef58354c3da3e9830298c54720"><enum>(2)</enum><header>Review of application process</header> <subparagraph id="idE11BC2AA1E394BF790490192DD80CA78"><enum>(A)</enum><header>In general</header><text>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 Secretary, including the forms and processes used to receive assistance requests from eligible program participants.</text> </subparagraph><subparagraph id="id9A188BA6AE104323BA3568EA7A03D092"><enum>(B)</enum><header>Requirements</header><text>In carrying out the review, the Secretary shall determine what information the participant is required to submit during the application process, including—</text> <clause id="ID2f591552a45a42d2bcedea171ad4f91c"><enum>(i)</enum><text>identification information for the applicant;</text> </clause><clause id="ID536f5d6a3cb04211bbfe46df3ff855b5"><enum>(ii)</enum><text>identification and location information for the land parcel or tract of concern;</text> </clause><clause id="ID081f240892fd43b7b80c9f91abe2f979"><enum>(iii)</enum><text>a general statement of the need or resource concern of the applicant for the land parcel or tract; and</text> </clause><clause id="IDbfe5eb1a81664cc6a6ccefd50e4e9c20"><enum>(iv)</enum><text>the minimum amount of other information the Secretary considers to be essential for the applicant to provide personally.</text> </clause></subparagraph></paragraph><paragraph id="IDf1585807c0144215a0117fc743667b50"><enum>(3)</enum><header>Revision and streamline</header> <subparagraph id="idE2E74102C6E84E9DBD4850A5D7395682"><enum>(A)</enum><header>In general</header><text>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 Secretary 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.</text> </subparagraph><subparagraph id="id7852EC3C967540CE9A6451EE00315F04"><enum>(B)</enum><header>Goal</header><text>The goal of the revision shall be to streamline the application process to minimize the burden placed on applicants.</text> </subparagraph></paragraph><paragraph id="ID8bab727f7e8b4f0980b6d22bccb30d55"><enum>(4)</enum><header>Conservation program application</header> <subparagraph id="idAB5BA54D212E4BCABAEFE7FD9D40495E"><enum>(A)</enum><header>In general</header><text>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.</text> </subparagraph><subparagraph id="idF081CD1B522147CB88DF06FB490CC606"><enum>(B)</enum><header>Secretarial burden</header><text>To the maximum extent practicable, the Secretary shall—</text> <clause id="idE6213A25DE1F4C2A8CCFD0A1260289E7"><enum>(i)</enum><text>complete the specific application for conservation program assistance for each applicant; and</text> </clause><clause id="id0A9C1391D90145E69C686AF140C968F6"><enum>(ii)</enum><text>request only that specific further information from the applicant that is not already available to the Secretary.</text> </clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID65d14be0d77d4d63aeecfbcaeb06973b"><enum>(5)</enum><header>Implementation and notification</header><text>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.</text> </paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="idFE262D5F93074805B11CA76FF7773933"><enum>(5)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HF157695FBA7E481990EA0075EEC389B3" style="OLC"> <subsection id="H5087C84C4F50498D93491B6152A4B94F"><enum>(j)</enum><header>Improved administrative efficiency and effectiveness</header><text display-inline="yes-display-inline">In administrating a conservation program under this title, the Secretary shall, to the maximum extent practicable—</text> <paragraph id="HD2005C38A07048E289374E5D8140A5F7"><enum>(1)</enum><text>seek to reduce administrative burdens and costs to producers by streamlining conservation planning and program resources; and</text> </paragraph><paragraph id="H3F76EAE125D442D5943895638F588DB2"><enum>(2)</enum><text>take advantage of new technologies to enhance efficiency and effectiveness.</text> </paragraph></subsection><subsection id="HAD82CD4C3D80442F8F97BEE880D38081"><enum>(k)</enum><header>Relation to other payments</header><text display-inline="yes-display-inline">Any payment received by an owner or operator under this title, including an easement payment or rental payment, shall be in addition to, and not affect, the total amount of payments that the owner or operator is otherwise eligible to receive under any of the following:</text> <paragraph id="HE65A277C13A044858B523C7920B746EB"><enum>(1)</enum><text>This Act.</text> </paragraph><paragraph id="H2812EF1162254937A5DD6E57EC544CCD"><enum>(2)</enum><text>The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).</text> </paragraph><paragraph id="HFAB92995004045B3867D1882144DF4A5"><enum>(3)</enum><text>The <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>.</text> </paragraph><paragraph id="HD221108612534E9D9810DB926001A8F4"><enum>(4)</enum><text>Any law that succeeds a law specified in paragraph (1), (2), or (3).</text> </paragraph></subsection><subsection id="id865EBC7480DC4F4C95BFC1D889BA1ECB"><enum>(l)</enum><header>Funding for Indian tribes</header><text display-inline="yes-display-inline">In carrying out the conservation stewardship program under subchapter B of chapter 2 of subtitle D and the environmental quality incentives program under chapter 4 of subtitle D, the Secretary may enter into alternative funding arrangements with Indian tribes if the Secretary determines that the goals and objectives of the programs will be met by such arrangements, and that statutory limitations regarding contracts with individual producers will not be exceeded by any Tribal member.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="HF48264BA36D84D5C9B28421A95400620"><enum>2607.</enum><header>Rulemaking authority</header><text display-inline="no-display-inline">Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C. 3841 et seq.) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H0B18624289084A389B82C50B6541184D" style="OLC"> <section commented="no" id="H1A4CCA15809C4DCE90DB96DEFDF32A98"><enum>1246.</enum><header>Regulations</header> <subsection commented="no" id="HFB93E03255DF4E2EBB0C4946EE865499"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall promulgate such regulations as are necessary to implement programs under this title, including such regulations as the Secretary determines to be necessary to ensure a fair and reasonable application of the limitations established under section 1244(f).</text> </subsection><subsection commented="no" id="H180019C7510E46CB98B31AC1F12808C0"><enum>(b)</enum><header>Rulemaking procedure</header><text display-inline="yes-display-inline">The promulgation of regulations and administration of programs under this title—</text> <paragraph id="H33CDA3B94CC842FF868C2036938AACF5"><enum>(1)</enum><text>shall be carried out without regard to—</text> <subparagraph id="H60F1AB77A3E44F308287135A77F1C1E0"><enum>(A)</enum><text>the Statement of Policy of the Secretary effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking; and</text> </subparagraph><subparagraph id="HED34DDDA7F1445FA80F1F0F6C5070108"><enum>(B)</enum><text>chapter 35 of title 44, United States Code (commonly known as the Paperwork Reduction Act); and</text> </subparagraph></paragraph><paragraph id="H04DAF29529BE420B837A6A7CC27A1F2C"><enum>(2)</enum><text>shall be made as an interim rule effective on publication with an opportunity for notice and comment.</text> </paragraph></subsection><subsection commented="no" id="H1312C0DEF9794669888C640DA4BB2298"><enum>(c)</enum><header>Congressional review of agency rulemaking</header><text>In promulgating regulations under this section, the Secretary shall use the authority provided under section 808 of title 5, United States Code.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H8E792AA21B74463BB963333CE8AC3C05"><enum>2608.</enum><header>Standards for State technical committees</header><text display-inline="no-display-inline">Section 1261(b) of the Food Security Act of 1985 (16 U.S.C. 3861(b)) is amended by striking <quote>Not later than 180 days after the date of enactment of the Food, Conservation, and Energy Act of 2008, the Secretary shall develop</quote> and inserting <quote>The Secretary shall review and update as necessary</quote>.</text> </section><section id="idC63571E98DF04E21AF0384A08F7EEC38"><enum>2609.</enum><header>Highly erodible land and wetland conservation for crop insurance</header> <subsection id="id86B4B3CA271D4BEDA6FCD0F902EB41B2"><enum>(a)</enum><header>Highly erodible land program ineligibility</header> <paragraph id="id7BC7B3BEFD3E48039B88D7D75ADFAE51"><enum>(1)</enum><header>In general</header><text>Section 1211(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3811(a)(1)) is amended—</text> <subparagraph id="id7925CB9EB5544B1BB7FDCC0666D59554"><enum>(A)</enum><text>in subparagraph (C), by striking <quote>or</quote> at the end;</text> </subparagraph><subparagraph id="id41C92A80F6064249A4C76A2DF9FB12D1"><enum>(B)</enum><text>in subparagraph (D), by adding <quote>or</quote> at the end; and</text> </subparagraph><subparagraph id="id341B65F0DE6F4A52A11EB940E111D081"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id8C756BA8861443849B0FD42EBB59DE9B" style="OLC"> <subparagraph id="id0146DF1988DC49A69EB60A57F636DA10"><enum>(E)</enum><text>any portion of premium paid by the Federal Crop Insurance Corporation for a plan or policy of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.);</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="id85e9f2d5b2f445d2a93b0f9c22fd9c21"><enum>(2)</enum><header>Exemptions</header><text>Section 1212(a)(2) of the Food Security Act of 1985 (16 U.S.C. 3812(a)(2)) is amended—</text> <subparagraph id="id2BA6EBFB2C4E459C8C66C376136A5D34"><enum>(A)</enum><text>in the first sentence, by striking <quote>(2) If,</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id6DE17D114DE446179FF4296954D256F9" style="OLC"> <paragraph id="idFA867FFC8F134C3EB74CCCF6B790D79A"><enum>(2)</enum><header>Eligibility based on compliance with conservation plan</header> <subparagraph id="id8C31C810663A4F32804A45C851985800"><enum>(A)</enum><header>In general</header><text>If,</text> </subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph><subparagraph id="id148658CE3BE54297AAD79AF6098C17EE"><enum>(B)</enum><text>in the second sentence, by striking <quote>In carrying</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idB51B5F2794C44471B26C7F3810D10404" style="OLC"> <subparagraph id="id7F45012E4C48402B98D17028119BC1E4"><enum>(B)</enum><header>Minimization of documentation</header><text>In carrying</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph><subparagraph id="idBE0BB271816C4778A63A0D8F3F1F9DB6"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idA1D934F051664230874F49784834D244" style="OLC"> <subparagraph id="id81827AF18C99458F885287B01F48F9C4"><enum>(C)</enum><header>Crop insurance</header><text>In the case of payments that are subject to section 1211 for the first time due to the amendment made by section 2609(a) of the Agriculture Reform, Food, and Jobs Act of 2012, any person who produces an agricultural commodity on the land that is the basis of the payments shall have until January 1 of the fifth year after the date on which the payments became subject to section 1211 to develop and comply with an approved conservation plan.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection id="idD0007FCCBCEC445FA5C7A4A90C99E8A8"><enum>(b)</enum><header>Wetland conservation program ineligibility</header><text>Section 1221(b) of the Food Security Act of 1985 (16 U.S.C. 3821) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id740495B571574283AF973D6FCD9D4848" style="OLC"> <paragraph id="id17D4C82D9D264384A13DD608B71BCD00"><enum>(4)</enum><text>Any portion of premium paid by the Federal Crop Insurance Corporation for a plan or policy of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section></subtitle><subtitle id="HEAFBFCCA2BBA4C62BA6E531B3D4E98E4"><enum>H</enum><header>Repeal of superseded program authorities and transitional provisions</header> <section id="H8DE28B3AC5EC41C79E3BFD8AB6D80676"><enum>2701.</enum><header>Comprehensive conservation enhancement program</header><text display-inline="no-display-inline">Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is repealed.</text> </section><section id="H92ABC563337E4A63A2FEDD497611899E"><enum>2702.</enum><header>Emergency forestry conservation reserve program</header> <subsection id="H8FAE8E7198B04404B75C7B014ED59D2C"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 1231A of the Food Security Act of 1985 (16 U.S.C. 3831a) is repealed.</text> </subsection><subsection id="HDA0CC39DBCA745C3B47ECEEB570D866A"><enum>(b)</enum><header>Transitional provisions</header> <paragraph id="H66017C0F48264FECB7865B2EAED980F8"><enum>(1)</enum><header>Effect on existing contracts</header><text display-inline="yes-display-inline">The amendment made by this section shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under section 1231A of the Food Security Act of 1985 (16 U.S.C. 3831a) before October 1, 2012, or any payments required to be made in connection with the contract.</text> </paragraph><paragraph id="H6E7282BFF09843D08C1A091709E02A5E"><enum>(2)</enum><header>Funding</header><text display-inline="yes-display-inline">The Secretary may use funds made available to carry out the conservation reserve program under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) to continue to carry out contracts referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts as in existence on September 30, 2012.</text> </paragraph></subsection><subsection id="H6F61FF17B3A04FC19F18464B7F8C0D90"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall take effect on October 1, 2012.</text> </subsection></section><section id="H3ED1B03144A74B3A878B18EDD6CBE7AF"><enum>2703.</enum><header>Wetlands reserve program</header> <subsection id="HDA74E7EE186A43DFA54DFA1F090E4F05"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Subchapter C of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3837 et seq.) is repealed.</text> </subsection><subsection display-inline="no-display-inline" id="H55B7512541C847DEA37682F03840B0BF"><enum>(b)</enum><header>Transitional provisions</header> <paragraph id="HDE12600B4A124680B7E70C5858EFC19A"><enum>(1)</enum><header>Effect on existing contracts and easements</header><text display-inline="yes-display-inline">The amendment made by this section shall not affect the validity or terms of any contract or easement entered into by the Secretary of Agriculture under subchapter C of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3837 et seq.) before October 1, 2012, or any payments required to be made in connection with the contract or easement.</text> </paragraph><paragraph id="id2CDB2807B0C849A5BFFF4553C5F69F39"><enum>(2)</enum><header>Funding</header> <subparagraph id="id1b06a8b3ee994477a6e6bdd15e208bff"><enum>(A)</enum><header>Use of prior year funds</header><text>Notwithstanding the repeal of subchapter C of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3837 et seq.), any funds made available from the Commodity Credit Corporation to carry out the wetlands reserve program under that subchapter for fiscal years 2009 through 2012 shall be made available to carry out contracts or easements referred to in paragraph (1) that were entered into prior to October 1, 2012 (including the provision of technical assistance), provided that no such contract or easement is modified so as to increase the amount of the payment received.</text> </subparagraph><subparagraph id="idd0ad5fbf9ffb4d7eba765d63a31eb960"><enum>(B)</enum><header>Other</header><text>The Secretary may use funds made available to carry out the agricultural conservation easement program under subtitle H of title XII of the Food Security Act of 1985, as added by section 2301 of this Act, to continue to carry out contracts and easements referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts and easements as in existence on September 30, 2012.</text> </subparagraph></paragraph></subsection><subsection id="H63114AC1A7D64CAC85F78D5EAC4BC662"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall take effect on October 1, 2012.</text> </subsection></section><section id="H2D1C30D488934D629E5B4653CE1AE730"><enum>2704.</enum><header>Farmland protection program and farm viability program</header> <subsection id="H41C4824C8E594A3EA3A5ABF3642A2BB0"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Subchapter C of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838h et seq.) is repealed.</text> </subsection><subsection display-inline="no-display-inline" id="H5DCFA1E762984D37AD4F4965ACF48FBF"><enum>(b)</enum><header>Transitional provisions</header> <paragraph id="HDF57312007D64D62A43498853EB24A52"><enum>(1)</enum><header>Effect on existing agreements and easements</header><text display-inline="yes-display-inline">The amendment made by this section shall not affect the validity or terms of any agreement or easement entered into by the Secretary of Agriculture under subchapter C of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838h et seq.) before October 1, 2012, or any payments required to be made in connection with the agreement or easement.</text> </paragraph><paragraph id="H81DCDF0245204FD997CE41C70A2A470D"><enum>(2)</enum><header>Funding</header> <subparagraph id="idEA96CE23FA6D4133B321FA802A41F149"><enum>(A)</enum><header>Use of prior year funds</header><text>Notwithstanding the repeal of subchapter C of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838h et seq.), any funds made available from the Commodity Credit Corporation to carry out the farmland protection program under that subchapter for fiscal years 2009 through 2012 shall be made available to carry out agreements and easements referred to in paragraph (1) that were entered into prior to October 1, 2012 (including the provision of technical assistance).</text> </subparagraph><subparagraph id="id9DA0D1CA774B4755A743BAA833B57591"><enum>(B)</enum><header>Other</header><text display-inline="yes-display-inline">On exhaustion of funds made available under subparagraph (A), the Secretary may use funds made available to carry out the agricultural conservation easement program under subtitle H of title XII of the Food Security Act of 1985, as added by section 2301 of this Act, to continue to carry out agreements and easements referred to in paragraph (1) using the provisions of law and regulation applicable to such agreements and easement as in existence on September 30, 2012.</text> </subparagraph></paragraph></subsection><subsection id="H6AE4A784E83F46ACA98920B1F3448572"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall take effect on October 1, 2012.</text> </subsection></section><section id="HB7510EC01D774EC38B40E46EFF61912F"><enum>2705.</enum><header>Grassland reserve program</header> <subsection id="H080290B9CE0A4E629A38928F023B1DBE"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Subchapter D of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838n et seq.) is repealed.</text> </subsection><subsection display-inline="no-display-inline" id="H7D81AF79F1764B099B29E03273CB1BAF"><enum>(b)</enum><header>Transitional provisions</header> <paragraph id="HB6FC114EF8314331B5B8FF73A89ED27C"><enum>(1)</enum><header>Effect on existing contracts, agreements, and easements</header><text display-inline="yes-display-inline">The amendment made by this section shall not affect the validity or terms of any contract, agreement, or easement entered into by the Secretary of Agriculture under subchapter D of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838n et seq.) before October 1, 2012, or any payments required to be made in connection with the contract, agreement, or easement.</text> </paragraph><paragraph id="HDA6434BBCADC4EA1A74C7692AA99B57D"><enum>(2)</enum><header>Funding</header> <subparagraph id="idBBF9F2D7D5C3410C9E5E5BD85DEF5803"><enum>(A)</enum><header>Use of prior year funds</header><text display-inline="yes-display-inline">Notwithstanding the repeal of subchapter D of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838n et seq.), any funds made available from the Commodity Credit Corporation to carry out the grassland reserve program under that subchapter for fiscal years 2009 through 2012 shall be made available to carry out contracts, agreements, or easements referred to in paragraph (1) that were entered into prior to October 1, 2012 (including the provision of technical assistance), provided that no such contract, agreement, or easement is modified so as to increase the amount of the payment received.</text> </subparagraph><subparagraph id="idD6B94B9CDEA84B04BCD9FE86C3CC19A9"><enum>(B)</enum><header>Other</header><text display-inline="yes-display-inline">The Secretary may use funds made available to carry out the agricultural conservation easement program under subtitle H of title XII of the Food Security Act of 1985, as added by section 2301 of this Act, to continue to carry out contracts, agreements, and easements referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts, agreements, and easements as in existence on September 30, 2012.</text> </subparagraph></paragraph></subsection><subsection id="H2B29E19D91054089A9AE01DED8F09367"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall take effect on October 1, 2012.</text> </subsection></section><section display-inline="no-display-inline" id="H04EB0EA1C87A4108A6C18E7FE9CF3FD1" section-type="subsequent-section"><enum>2706.</enum><header>Agricultural water enhancement program</header> <subsection id="HDE31BF3052A2413C97BF45581891701B"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa–9) is repealed.</text> </subsection><subsection display-inline="no-display-inline" id="HD87C91F175504F7895A747753BC058B0"><enum>(b)</enum><header>Transitional provisions</header> <paragraph id="HCE8A11B026354C759D5D4A4A3F707E0D"><enum>(1)</enum><header>Effect on existing contracts and agreements</header><text display-inline="yes-display-inline">The amendment made by this section shall not affect the validity or terms of any contract or agreement entered into by the Secretary of Agriculture under section 1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa–9) before October 1, 2012, or any payments required to be made in connection with the contract or agreement.</text> </paragraph><paragraph id="HA31E99D1847A4807B56BC647587BD977"><enum>(2)</enum><header>Funding</header> <subparagraph id="id8d9137edd1354c1bbea9d083c1845e9b"><enum>(A)</enum><header>Use of prior year funds</header><text>Notwithstanding the repeal of section 1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa–9), any funds made available from the Commodity Credit Corporation to carry out the agricultural water enhancement program under that section for fiscal years 2009 through 2012 shall be made available to carry out contracts and agreements referred to in paragraph (1) that were entered into prior to October 1, 2012 (including the provision of technical assistance).</text> </subparagraph><subparagraph id="idA652802D98F94585AF72E805E7A7C356"><enum>(B)</enum><header>Other</header><text display-inline="yes-display-inline">On exhaustion of funds made available under subparagraph (A), the Secretary may use funds made available to carry out the regional conservation partnerships program under subtitle I of title XII of the Food Security Act of 1985, as added by section 2401 of this Act, to continue to carry out contracts and agreements referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts and agreements as in existence on September 30, 2012.</text> </subparagraph></paragraph></subsection><subsection commented="no" id="H328B0D3EFDCB429EACFC5B10FA57A6FA"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall take effect on October 1, 2012.</text> </subsection></section><section id="H45EB0FFDBDB34B0E99E7C56D245A6B3F"><enum>2707.</enum><header>Wildlife habitat incentive program</header> <subsection id="H8D50FF92EB5C497A82939801D13FABA3"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 1240N of the Food Security Act of 1985 (16 U.S.C. 3839bb–1) is repealed.</text> </subsection><subsection display-inline="no-display-inline" id="H7FE67D97E0EB426B80D8EFE0C7E766F9"><enum>(b)</enum><header>Transitional provisions</header> <paragraph id="HE31FBFBA41AD40E0B3DD82E1CFB03394"><enum>(1)</enum><header>Effect on existing contracts</header><text display-inline="yes-display-inline">The amendment made by this section shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under section 1240N of the Food Security Act of 1985 (16 U.S.C. 3839bb–1) before October 1, 2012, or any payments required to be made in connection with the contract.</text> </paragraph><paragraph id="H725335B8542045F7A80B73747E3A201E"><enum>(2)</enum><header>Funding</header> <subparagraph id="ideb7202a57f7d43c28c0b0d340581eb11"><enum>(A)</enum><header>Use of prior year funds</header><text>Notwithstanding the repeal of section 1240N of the Food Security Act of 1985 (16 U.S.C. 3839bb–1), any funds made available from the Commodity Credit Corporation to carry out the wildlife habitat incentive program under that section for fiscal years 2009 through 2012 shall be made available to carry out contracts referred to in paragraph (1) which were entered into prior to October 1, 2012 (including the provision of technical assistance).</text> </subparagraph><subparagraph id="idA154F010A5994106A12D9677F81D47A6"><enum>(B)</enum><header>Other</header><text display-inline="yes-display-inline">On exhaustion of funds made available under subparagraph (A), the Secretary may use funds made available to carry out the environmental quality incentives program under chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) to continue to carry out contracts referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts as in existence on September 30, 2012.</text> </subparagraph></paragraph></subsection><subsection commented="no" id="H99FA018FDD3049B2B08DFAA0423C62B6"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall take effect on October 1, 2012.</text> </subsection></section><section id="H6765EEBBBB294C06AB179A60093A2649"><enum>2708.</enum><header>Great Lakes basin program</header> <subsection id="H9B02104AA21547BE901888394F9CBA52"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 1240P of the Food Security Act of 1985 (16 U.S.C. 3839bb–3) is repealed.</text> </subsection><subsection commented="no" id="HA78445557FC6410ABF17E4CF21CFA46D"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall take effect on October 1, 2012.</text> </subsection></section><section id="H6F59FC8983F24273A51FC2BE697216FF"><enum>2709.</enum><header>Chesapeake Bay watershed program</header> <subsection id="H6C458CC735F54242A75CCF10590B822C"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 1240Q of the Food Security Act of 1985 (16 U.S.C. 3839bb–4) is repealed.</text> </subsection><subsection display-inline="no-display-inline" id="HD1708CDF70D24A309EB3451746CC64F2"><enum>(b)</enum><header>Transitional provisions</header> <paragraph id="HF9BEBB3ACDD34474A0E7FCE80EC4E3C1"><enum>(1)</enum><header>Effect on existing contracts, agreements, and easements</header><text display-inline="yes-display-inline">The amendment made by this section shall not affect the validity or terms of any contract, agreement, or easement entered into by the Secretary of Agriculture under section 1240Q of the Food Security Act of 1985 (16 U.S.C. 3839bb–4) before October 1, 2012, or any payments required to be made in connection with the contract, agreement, or easement.</text> </paragraph><paragraph id="HD600C42F1AB44D289A0BD537E338F1DF"><enum>(2)</enum><header>Funding</header> <subparagraph id="id7409f92fa5c745aca24fbb17acbc0f61"><enum>(A)</enum><header>Use of prior year funds</header><text>Notwithstanding the repeal of section 1240Q of the Food Security Act of 1985 (16 U.S.C. 3839bb–4), any funds made available from the Commodity Credit Corporation to carry out the Chesapeake Bay watershed program under that section for fiscal years 2009 through 2012 shall be made available to carry out contracts, agreements, and easements referred to in paragraph (1) that were entered into prior to October 1, 2012 (including the provision of technical assistance).</text> </subparagraph><subparagraph id="id97B73EFD2BC944139774A8B6DF8E04A2"><enum>(B)</enum><header>Other</header><text display-inline="yes-display-inline">The Secretary may use funds made available to carry out the regional conservation partnerships program under subtitle I of title XII of the Food Security Act of 1985, as added by section 2401 of this Act, to continue to carry out contracts, agreements, and easements referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts, agreements, and easements as in existence on September 30, 2012.</text> </subparagraph></paragraph></subsection><subsection commented="no" id="HCA1A82164DF74390B41259EA77380B62"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall take effect on October 1, 2012.</text> </subsection></section><section id="HBF083BE44AEB473095CD3EBB55F61AFE"><enum>2710.</enum><header>Cooperative conservation partnership initiative</header> <subsection id="H630DCA4F8E4341B7AE3716BDB3A45033"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) is repealed.</text> </subsection><subsection display-inline="no-display-inline" id="H9E7AE6B26EF1486B9C83A039AA989348"><enum>(b)</enum><header>Transitional provisions</header> <paragraph id="HBE222F9FBEE14EA5832F59224D0F2D73"><enum>(1)</enum><header>Effect on existing contracts and agreements</header><text display-inline="yes-display-inline">The amendment made by this section shall not affect the validity or terms of any contract or agreement entered into by the Secretary of Agriculture under section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) before October 1, 2012, or any payments required to be made in connection with the contract or agreement.</text> </paragraph><paragraph id="H606AF3B6AFE94A7CAB3FE6AEDD6FC124"><enum>(2)</enum><header>Funding</header> <subparagraph id="id1180001d62f041698f1f63c48c95787b"><enum>(A)</enum><header>Use of prior year funds</header><text>Notwithstanding the repeal of section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843), any funds made available from the Commodity Credit Corporation to carry out the cooperative conservation partnership initiative under that section for fiscal years 2009 through 2012 shall be made available to carry out contracts and agreements referred to in paragraph (1) that were entered into prior to October 1, 2012 (including the provision of technical assistance).</text> </subparagraph><subparagraph id="idBCF427D187CB4A3AB90AA27D31EB4E06"><enum>(B)</enum><header>Other</header><text display-inline="yes-display-inline">On exhaustion of funds made available under subparagraph (A), the Secretary may use funds made available to carry out the regional conservation partnerships program under subtitle I of title XII of the Food Security Act of 1985, as added by section 2401 of this Act, to continue to carry out contracts and agreements referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts and agreements as in existence on September 30, 2012.</text> </subparagraph></paragraph></subsection><subsection commented="no" id="H03D95C2E54814A0494B6AB7EA35313FC"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall take effect on October 1, 2012.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H76E816D1D9AC4823AF22BB9503A4B256" section-type="subsequent-section"><enum>2711.</enum><header>Environmental easement program</header><text display-inline="no-display-inline">Chapter 3 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839 et seq.) is repealed.</text> </section><section commented="no" display-inline="no-display-inline" id="id864E6C9E52CE4932B9D888ADF77B40FD" section-type="subsequent-section"><enum>2712.</enum><header>Technical amendments</header> <subsection commented="no" display-inline="no-display-inline" id="id7F475738B2F04F119DBB4DAD6E085C25"><enum>(a)</enum><text>Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended in the matter preceding paragraph (1) by striking <quote>E</quote> and inserting <quote>I</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id24769B7919FF49EFB6C1F5A1CC807EFA"><enum>(b)</enum><text>Section 1211(a) of the Food Security Act of 1985 (16 U.S.C. 3811(a)) is amended by striking <quote>predominate</quote> each place it appears and inserting <quote>predominant</quote>.</text> </subsection><subsection id="idC580CDED70174D0D83A5989067DA2D2E"><enum>(c)</enum><text display-inline="yes-display-inline">Section 1242(i) of the Food Security Act of 1985(16 U.S.C. 3842(i)) is amended in the subsection heading by striking <quote><header-in-text level="subsection" style="OLC">speciality</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">specialty</header-in-text></quote>.</text> </subsection></section></subtitle><enum>III</enum><header>Trade</header> <subtitle id="H9AFF2D83DE3442F19F082EC9C131B430"><enum>A</enum><header>Food for Peace Act</header> <section id="HC6C9F6D5E9AA45A4A79B0CEB656C3A90" section-type="subsequent-section"><enum>3001.</enum><header>Set-aside for support for organizations through which nonemergency assistance is provided</header><text display-inline="no-display-inline">Effective October 1, 2012, section 202(e)(1) of the Food for Peace Act (7 U.S.C. 1722(e)(1)) is amended—</text> <paragraph id="id2E4B44BF994B43C9B57D008B36C289FA"><enum>(1)</enum><text display-inline="yes-display-inline">in the matter preceding subparagraph (A), by striking <quote>13 percent</quote> and inserting <quote>15 percent</quote>; and</text> </paragraph><paragraph id="idAED1EE9A1B094261BBC7BBDD7753FDDE"><enum>(2)</enum><text>in subparagraph (A), by striking <quote>new</quote> and inserting <quote>and enhancing</quote>.</text> </paragraph></section><section id="idCBB68D38A4B0430984BD5D0423D75B19" section-type="subsequent-section"><enum>3002.</enum><header>Food aid quality</header><text display-inline="no-display-inline">Section 202(h) of the Food for Peace Act (7 U.S.C. 1722(h)) is amended—</text> <paragraph id="id527E3A2BA9EB4650ADCB408E4C6A7CD8"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (1) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idFAEBC067A17641239F8005A3DE7E96F9" style="OLC"> <paragraph id="idde2ce8640f2145ebbce937f16d6bcde0"><enum>(1)</enum><header>In general</header><text>The Administrator shall use funds made available for fiscal year 2013 and subsequent fiscal years to carry out this title—</text> <subparagraph id="idedbfcd7a20e94c14bbd370869a7d869f"><enum>(A)</enum><text>to assess the types and quality of agricultural commodities and products donated for food aid;</text> </subparagraph><subparagraph id="id4025308e8ff64f38aa531ff534d0567f"><enum>(B)</enum><text>to adjust products and formulations, including potential introduction of new fortificants and products, as necessary to cost-effectively meet nutrient needs of target populations;</text> </subparagraph><subparagraph id="id8726eda68e3c4b0d86a44f71f4f72c5a"><enum>(C)</enum><text>to test prototypes;</text> </subparagraph><subparagraph id="idee41ca630f6747abaf9039d68ff9da68"><enum>(D)</enum><text>to adopt new specifications or improve existing specifications for micronutrient fortified food aid products, based on the latest developments in food and nutrition science, and in coordination with other international partners;</text> </subparagraph><subparagraph id="id84793e67bccb4a94880c0dcbe755b249"><enum>(E)</enum><text>to develop new program guidance to facilitate improved matching of products to purposes having nutritional intent, in coordination with other international partners;</text> </subparagraph><subparagraph id="idb6b08a9d1b20409083c7daf736f75678"><enum>(F)</enum><text>to develop improved guidance for implementing partners on how to address nutritional deficiencies that emerge among recipients for whom food assistance is the sole source of diet in emergency programs that extend beyond 1 year, in coordination with other international partners; and</text> </subparagraph><subparagraph id="id511750d708f64fb289a3c97f833e1a40"><enum>(G)</enum><text>to evaluate, in appropriate settings and as necessary, the performance and cost-effectiveness of new or modified specialized food products and program approaches designed to meet the nutritional needs of the most vulnerable groups, such as pregnant and lactating mothers, and children under the age of 5.</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="id784F7BB8ED8D441A9CDFA80310828001"><enum>(2)</enum><text>in paragraph (3), by striking <quote>2011</quote> and inserting <quote>2017</quote>.</text> </paragraph></section><section id="H717EBEABD6FF444E8925E06FB4589EB9" section-type="subsequent-section"><enum>3003.</enum><header>Minimum levels of assistance</header><text display-inline="no-display-inline">Section 204(a) of the Food for Peace Act (7 U.S.C. 1724(a)) is amended—</text> <paragraph id="H5C854299EC1F4852BD95B001D3FE2BDA"><enum>(1)</enum><text>in paragraph (1), by striking <quote>2012</quote> and inserting <quote>2017</quote>; and</text> </paragraph><paragraph id="H10656ADA0120448E9971FB5F1EA2FB75"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph></section><section id="H924F2F78F49B4F90AABCCCE9455BDAAF" section-type="subsequent-section"><enum>3004.</enum><header>Reauthorization of Food Aid Consultative Group</header><text display-inline="no-display-inline">Section 205(f) of the Food for Peace Act (7 U.S.C. 1725(f)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="H05C8D31600C847F6B5E3E3FE52D9F2F5" section-type="subsequent-section"><enum>3005.</enum><header>Oversight, monitoring, and evaluation of Food for Peace Act programs</header><text display-inline="no-display-inline">Section 207(f) of the Food for Peace Act (7 U.S.C. 1726a(f)) is amended—</text> <paragraph id="H39226FA12F7F4114A3395DC52C6AB8BE"><enum>(1)</enum><text>by striking paragraph (4) and redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively; and</text> </paragraph><paragraph id="H77B969CD12974C49ACE600F094D6A690"><enum>(2)</enum><text>in subparagraph (A) of paragraph (5) (as so redesignated)—</text> <subparagraph id="id44C8B3B232CF4F5A9D8091BC6A1DF7E9"><enum>(A)</enum><text>by striking <quote>2012</quote> and inserting <quote>2017</quote>; and</text> </subparagraph><subparagraph id="id216641DA65B649BA9DE0110C5E840F26"><enum>(B)</enum><text>by striking <quote>during fiscal year 2009</quote> and inserting <quote>during the period of fiscal years 2013 through 2017</quote>.</text> </subparagraph></paragraph></section><section id="HB2B2F88312274491AE2CB3888287329D" section-type="subsequent-section"><enum>3006.</enum><header>Assistance for stockpiling and rapid transportation, delivery, and distribution of shelf-stable prepackaged foods</header><text display-inline="no-display-inline">Section 208(f) of the Food for Peace Act (7 U.S.C. 1726b(f)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="HD3FC57EACA18462992F8E71B21302B95" section-type="subsequent-section"><enum>3007.</enum><header>Limitation on total volume of commodities monetized</header><text display-inline="no-display-inline">Section 403 of the Food for Peace Act (7 U.S.C. 1733) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H136FA4FB8E9549DB8AA92624F653FD1D" style="OLC"> <subsection id="H373FB18CA930407C9FCD54C1B7460A23"><enum>(m)</enum><header>Limitation on monetization of commodities</header> <paragraph id="H2D08843A4AC74280BAA690E43BFD21C8"><enum>(1)</enum><header>Limitation</header> <subparagraph id="id9DBF5B7296A142E690C678BBC3C9FFFD"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Unless the Administrator grants a waiver under paragraph (2), no commodity may be made available under this Act unless the rate of return for the commodity (as determined under subparagraph (B)) is at least 70 percent.</text> </subparagraph><subparagraph id="idC8323C1F55544884A6FB647BCA1F4998"><enum>(B)</enum><header>Rate of return</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the rate of return shall be equal to the proportion that—</text> <clause id="idB98FCE179DCF4F35BA7684E3C34AC5FC"><enum>(i)</enum><text display-inline="yes-display-inline">the proceeds the implementing partners generate through monetization; bears to</text> </clause><clause id="id78A96BE4CD2E4FEE93589B0B44F0578E"><enum>(ii)</enum><text display-inline="yes-display-inline">the cost to the Federal Government to procure and ship the commodities to a recipient country for monetization.</text> </clause></subparagraph></paragraph><paragraph id="H0CF09D717891482985990FC1C2C585D2"><enum>(2)</enum><header>Waiver authority</header><text>The Administrator may waive the application of the limitation in paragraph (1) with regard to a commodity for a recipient country if the Administrator determines that it is necessary to achieve the purposes of this Act in the recipient country.</text> </paragraph><paragraph id="HF47852DECD7540C791E748C6ADB73313"><enum>(3)</enum><header>Report</header><text>Not later than 90 days after a waiver is granted under paragraph (2), the Administrator shall prepare, publish in the Federal Register, and submit to the Committees on Foreign Affairs, Agriculture, and Appropriations of the House of Representatives, and the Committees on Appropriations, Foreign Relations, and Agriculture, Nutrition, and Forestry of the Senate a report that—</text> <subparagraph id="idE9878FF03F2146449FBB2D83BC3C56F1"><enum>(A)</enum><text>contains the reasons for granting the waiver and the actual rate of return for the commodity; and</text> </subparagraph><subparagraph id="id71671B2B1B624A00A38E77D2C1550C82"><enum>(B)</enum><text>includes for the commodity the costs of bagging or further processing, ocean transportation, inland transportation in the recipient country, storage costs, and any other information that the Administrator determines to be necessary.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id0B3F01865EB7415F8A66CC7711CB6354"><enum>3008.</enum><header>Flexibility</header><text display-inline="no-display-inline">Section 406 of the Food for Peace Act (7 U.S.C. 1736) is amended—</text> <paragraph id="id62112832736843769519DA15D7CE3FAE"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subsections (c) and (d) as subsections (d) and (e), respectively; and</text> </paragraph><paragraph id="idE19B632AB51F4551A73AD7B926E4B599"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after subsection (b) the following:</text> <quoted-block display-inline="no-display-inline" id="idF1F3E6D887D9439CB4BDFC6E0B3096C8" style="OLC"> <subsection id="id6095427dd2e04a5ea54215bcf47a5ca3"><enum>(c)</enum><header>Flexibility</header><text>Notwithstanding any other provision of law and as necessary to achieve the purposes of this Act, funds available under this Act may be used to pay the costs of up to 20 percent of activities conducted in recipient countries by nonprofit voluntary organizations, cooperatives, or intergovernmental agencies or organizations.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H28822FD1F33B4AD9B1D1C20906452F6D" section-type="subsequent-section"><enum>3009.</enum><header>Procurement, transportation, testing, and storage of agricultural commodities for prepositioning in the United States and foreign countries</header><text display-inline="no-display-inline">Section 407 of the Food for Peace Act (7 U.S.C. 1736a) is amended—</text> <paragraph id="id4CC34BD834E94CECABEA159012FEB617"><enum>(1)</enum><text>in subparagraph (c)(4)(A)—</text> <subparagraph id="HB4EF1D53E4A4420295F82D04742B8CE9"><enum>(A)</enum><text>by striking <quote>2012</quote> and inserting <quote>2017</quote>; and</text> </subparagraph><subparagraph id="H0F5F3AE4C97644C4A83D1ED80F6AC2E9"><enum>(B)</enum><text>by striking <quote>for each such fiscal year not more than $10,000,000 of such funds</quote> and inserting <quote>for each of fiscal years 2001 through 2012 not more than $10,000,000 of such funds and for each of fiscal years 2013 through 2017 not more than $15,000,000 of such funds</quote>; and</text> </subparagraph></paragraph><paragraph id="id8E9CFE8689854CD399EB1270340B6B44"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idfe5f7c3aa97946538a11437612d78852" style="OLC"> <subsection id="id1839a385e41b43e3a9ce40840c4217fd"><enum>(g)</enum><header>Funding for testing of food aid shipments</header><text>Funds made available for agricultural products acquired under this Act and section 3107 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o–1) may be used to pay for the testing of those agricultural products.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H52CE6AD74A9441ED9FA526174B663170" section-type="subsequent-section"><enum>3010.</enum><header>Deadline for agreements to finance sales or to provide other assistance</header><text display-inline="no-display-inline">Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="HDD71F7E45CA040529B6E2C43E77BDF75" section-type="subsequent-section"><enum>3011.</enum><header>Minimum level of nonemergency food assistance</header><text display-inline="no-display-inline">Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is amended by striking subsection (e) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id2669E5D880F84B25A8940F76BFCB8EE0" style="OLC"> <subsection id="ideed1bb559454439ba487429f0c062a60"><enum>(e)</enum><header>Minimum level of nonemergency food assistance</header> <paragraph id="id27D3D0B1071F41239529F4062F20C8D5"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), of the amounts made available to carry out emergency and nonemergency food assistance programs under title II, not less than 20 nor more than 30 percent for each of fiscal years 2013 through 2017 shall be expended for nonemergency food assistance programs under title II.</text> </paragraph><paragraph id="id014f8a6cb4394b929b5608357451d158"><enum>(2)</enum><header>Minimum level</header><text>The amount made available to carry out nonemergency food assistance programs under title II shall not be less than $275,000,000 for any fiscal year.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id1019ef4d9c984bfca4154b89edd1f0f9"><enum>3012.</enum><header>Coordination of foreign assistance programs report</header><text display-inline="no-display-inline">Section 413 of the Food for Peace Act (7 U.S.C. 1736(g)) is amended—</text> <paragraph id="id9a8ffcf10d41409999e0a1a5cdaef536"><enum>(1)</enum><text>by striking <quote>(a) <header-in-text level="subsection" style="OLC">In general</header-in-text>.—To the maximum</quote> and inserting <quote>To the maximum</quote>; and</text> </paragraph><paragraph id="id105deb8a03e2457ba41c2f0099a4286d"><enum>(2)</enum><text>by striking subsection (b).</text> </paragraph></section><section id="HB2D439A58DB4435C9B96596ECC1BB1E2" section-type="subsequent-section"><enum>3013.</enum><header>Micronutrient fortification programs</header> <subsection id="H14F4F4CD36E0478DA68B106CACEC1612"><enum>(a)</enum><header>Elimination of obsolete reference to study</header><text display-inline="yes-display-inline">Section 415(a)(2)(B) of the Food for Peace Act (7 U.S.C. 1736g–2(a)(2)(B)) is amended by striking <quote>, using recommendations</quote> and all that follows through <quote>quality enhancements</quote>.</text> </subsection><subsection id="H042AF1D6DA534A23AB2143CFA5E76CAE"><enum>(b)</enum><header>Extension</header><text display-inline="yes-display-inline">Section 415(c) of the Food for Peace Act (7 U.S.C. 1736g–2(c)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </subsection></section><section id="H4A4BACA3E9974FD7BB0C681A9BDAA040" section-type="subsequent-section"><enum>3014.</enum><header>John Ogonowski and Doug Bereuter Farmer-to-Farmer Program</header><text display-inline="no-display-inline">Section 501 of the Food for Peace Act (7 U.S.C. 1737) is amended—</text> <paragraph id="HC922D01211954AFAA5EF96592F14E53E"><enum>(1)</enum><text>in subsection (d)—</text> <subparagraph id="id0B1F8A9E09F24315BA2AA17E40A8098A"><enum>(A)</enum><text>by striking <quote>0.5 percent</quote> and inserting <quote>0.6 percent</quote>; and</text> </subparagraph><subparagraph id="idBBA882D81E3143A2A0C0767029D28A9F"><enum>(B)</enum><text>by striking <quote>2012</quote> and inserting <quote>2017</quote>; and</text> </subparagraph></paragraph><paragraph id="H627A28D2BD8E423E92836F0FF170C1E0"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (e)(1), by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph></section><section id="id737FB4151B774EE0B43B49A7A2DC5135"><enum>3015.</enum><header>Prohibition on assistance for North Korea</header> <subsection id="idAD4F2CD1A2504B92BCB667F90233C164"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">No amounts may be obligated or expended to provide assistance under title II of the Food for Peace Act (7 U.S.C. 1721 et seq.) to the Democratic People’s Republic of Korea.</text> </subsection><subsection id="id0de1283f3b9042d785c4bfa03df89874"><enum>(b)</enum><header>National interest waiver</header><text>The President may waive subsection (a) if the President determines and certifies to the Committees on Agriculture, Nutrition, and Forestry and Foreign Relations of the Senate and the Committees on Agriculture and Foreign Affairs of the House of Representatives that the waiver is in the national interest of the United States.</text> </subsection></section></subtitle><subtitle id="H20AAD3D20E364FDD9DFEF7E15C10C959"><enum>B</enum><header>Agricultural Trade Act of 1978</header> <section id="id3c65788842c04620970c8213d4a29bb3"><enum>3101.</enum><header>Export credit guarantee programs</header><text display-inline="no-display-inline">Section 211 of the Agricultural Trade Act of 1978 (7 U.S.C. 5641) is amended by striking subsection (b) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idF4C6C6705C5F47E79158723AA09D7473" style="OLC"> <subsection id="idC656D69E1058486AAB1AA10AF14B7586"><enum>(b)</enum><header>Export credit guarantee programs</header><text>The Commodity Credit Corporation shall make available for each of fiscal years 2013 through 2017 credit guarantees under section 202(a) in an amount equal to not more than $4,500,000,000 in credit guarantees.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H35855ED8D3104EF9BA578DDBB64E1CC2" section-type="subsequent-section"><enum>3102.</enum><header>Funding for market access program</header><text display-inline="no-display-inline">Section 211(c)(1)(A) of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)(A)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="H41CBC293BE1A4B6C99D969F6EEFF8FCC" section-type="subsequent-section"><enum>3103.</enum><header>Foreign market development cooperator program</header><text display-inline="no-display-inline">Section 703(a) of the Agricultural Trade Act of 1978 (7 U.S.C. 5723(a)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section></subtitle><subtitle id="H16E1EA8ED514411BB20130187377992D"><enum>C</enum><header>Other Agricultural Trade Laws</header> <section id="H7CEDEDBF4FFE482391581A1621C379F4" section-type="subsequent-section"><enum>3201.</enum><header>Food for Progress Act of 1985</header> <subsection id="H29B58ABC37F34B0F927625443A64C53A"><enum>(a)</enum><header>Extension</header><text display-inline="yes-display-inline">The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended—</text> <paragraph id="H642F1B1728764550B0C4C494572E976D"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (f)(3), by striking <quote>2012</quote> and inserting <quote>2017</quote>;</text> </paragraph><paragraph id="H20F0A22FC7DC48B083A3531DF78D762D"><enum>(2)</enum><text>in subsection (g), by striking <quote>2012</quote> and inserting <quote>2017</quote>;</text> </paragraph><paragraph id="H41DEE4C9107F4D5390B7CD7F0362F153"><enum>(3)</enum><text>in subsection (k), by striking <quote>2012</quote> and inserting <quote>2017</quote>; and</text> </paragraph><paragraph id="HB84127E7742A4AE6A9B63183303EC157"><enum>(4)</enum><text>in subsection (l)(1), by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph></subsection><subsection id="H6B87014818434B53A7A5D95BC1E0D987"><enum>(b)</enum><header>Repeal of completed project</header><text display-inline="yes-display-inline">Subsection (f) of the Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended by striking paragraph (6).</text> </subsection><subsection id="id22cd0a2d505f45fb85adead0c40344e1"><enum>(c)</enum><header>Flexibility</header><text>The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended in subsection (<italic>l</italic>) by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id00de074d059c4f398100bdf1f54cbe23" style="OLC"> <paragraph id="id6afec07ebcbd4d4b9d248b784919de5c"><enum>(5)</enum><header>Flexibility</header><text>Notwithstanding any other provision of law and as necessary to achieve the purposes of this Act, funds available under this Act may be used to pay the costs of up to 20 percent of activities conducted in recipient countries by nonprofit voluntary organizations, cooperatives, or intergovernmental agencies or organizations.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="id19870D5140CC41ABB53A185BF1C24285"><enum>(d)</enum><header>Limitation on total volume of commodities monetized</header><text display-inline="yes-display-inline">The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id51F7899158AE457B85DB11BF1ADAC046" style="OLC"> <subsection commented="no" id="id975ADCAEA2394647BA67198CB0E1EDA5"><enum>(p)</enum><header>Limitation on monetization of commodities</header> <paragraph commented="no" id="id34CBD93077264CA3B5D643A5ECC9B5E4"><enum>(1)</enum><header>Limitation</header> <subparagraph commented="no" id="id0C8156CB94FB48F9AA47C67686D4EA70"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Unless the Secretary grants a waiver under paragraph (2), no eligible commodity may be made available under this section unless the rate of return for the eligible commodity (as determined under subparagraph (B)) is at least 70 percent.</text> </subparagraph><subparagraph commented="no" id="idC67FB9DB16314F4097C814D5A3146832"><enum>(B)</enum><header>Rate of return</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the rate of return shall be equal to the proportion that—</text> <clause commented="no" id="id72189E7D1C9C40E08EAE9E7858F3A866"><enum>(i)</enum><text display-inline="yes-display-inline">the proceeds the implementing partners generate through monetization; bears to</text> </clause><clause commented="no" id="id66E9A21CC1BC43E8BC3DB56698E1F1CD"><enum>(ii)</enum><text display-inline="yes-display-inline">the cost to the Federal Government to procure and ship the eligible commodities to a recipient country for monetization.</text> </clause></subparagraph></paragraph><paragraph commented="no" id="idDEAE335436E34050A37A5D680CFA2246"><enum>(2)</enum><header>Waiver authority</header><text>The Secretary may waive the application of the limitation in paragraph (1) with regard to an eligible commodity for a recipient country if the Secretary determines that it is necessary to achieve the purposes of this Act in the recipient country.</text> </paragraph><paragraph commented="no" id="idF80DA93B4F0C402CA5FF5C71B6B7D300"><enum>(3)</enum><header>Report</header><text>Not later than 90 days after a waiver is granted under paragraph (2), the Secretary shall prepare, publish in the Federal Register, and submit to the Committees on Foreign Affairs, Agriculture, and Appropriations of the House of Representatives, and the Committees on Appropriations, Foreign Relations, and Agriculture, Nutrition, and Forestry of the Senate a report that—</text> <subparagraph commented="no" id="idD32E651A3E494F33BD654406DE6E38F4"><enum>(A)</enum><text>contains the reasons for granting the waiver and the actual rate of return for the eligible commodity; and</text> </subparagraph><subparagraph commented="no" id="idA6196303017143B7B66A62C0E4F77ED2"><enum>(B)</enum><text>includes for the commodity the costs of bagging or further processing, ocean transportation, inland transportation in the recipient country, storage costs, and any other information that the Secretary determines to be necessary.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H250017E0A2C9436A971C9D4641FFD4F4" section-type="subsequent-section"><enum>3202.</enum><header>Bill Emerson Humanitarian Trust</header><text display-inline="no-display-inline">Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f–1) is amended—</text> <paragraph id="H4A24C3B91BB54C239211D0FD121013C2"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)(2)(B)(i), by striking <quote>2012</quote> both places it appears and inserting <quote>2017</quote>; and</text> </paragraph><paragraph id="H33F24D9306E447F18C611EDB92B81E2D"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (h), by striking <quote>2012</quote> both places it appears and inserting <quote>2017</quote>.</text> </paragraph></section><section id="H7D35B8B6D8A94DA49CA0BED179FA0DE7" section-type="subsequent-section"><enum>3203.</enum><header>Promotion of agricultural exports to emerging markets</header> <subsection id="H757AF6756B7141EA90C90E680F16A47E"><enum>(a)</enum><header>Direct credits or export credit guarantees</header><text display-inline="yes-display-inline">Section 1542(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101–624; 7 U.S.C. 5622 note) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </subsection><subsection id="H741C68F8A1AB46068C9637114E4D97C5"><enum>(b)</enum><header>Development of agricultural systems</header><text display-inline="yes-display-inline">Section 1542(d)(1)(A)(i) of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101–624; 7 U.S.C. 5622 note) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </subsection></section><section id="HECC78A30132B4008A2F272D8403106E0" section-type="subsequent-section"><enum>3204.</enum><header>McGovern-Dole International Food for Education and Child Nutrition Program</header> <subsection id="HA6D0B60C0AB4404AAA1EF83CD8EDF290"><enum>(a)</enum><header>Reauthorization</header><text display-inline="yes-display-inline">Section 3107(l)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o–1(l)(2)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </subsection><subsection id="H1B2D92B56FBE4E2697760EC9FC33FA70"><enum>(b)</enum><header>Technical correction</header><text display-inline="yes-display-inline">Section 3107(d) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o–1(d)) is amended by striking <quote>to</quote> in the matter preceding paragraph (1).</text> </subsection></section><section id="H2F4CFD05BCBA416D991CF52B3DB79B1B" section-type="subsequent-section"><enum>3205.</enum><header>Technical assistance for specialty crops</header> <subsection id="HF10A0E5EF1DA480C9A7661F2DC74E708"><enum>(a)</enum><header>Purpose</header><text display-inline="yes-display-inline">Section 3205(b) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 5680(b)) is amended by striking <quote>related barriers to trade</quote> and inserting <quote>technical barriers to trade</quote>.</text> </subsection><subsection id="H07504A50ED06489CA255D13BDBA2F4CF"><enum>(b)</enum><header>Funding</header><text display-inline="yes-display-inline">Section 3205(e)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 5680(e)(2)) is amended—</text> <paragraph id="H8C5C4CF1E5D1404595A52806B40A2F2A"><enum>(1)</enum><text>by inserting <quote>and</quote> at the end of subparagraph (C); and</text> </paragraph><paragraph id="H98084B59A8054DDD8003250F2D2FCA79"><enum>(2)</enum><text>by striking subparagraphs (D) and (E) and inserting the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="HC6082C99D2B8467A92094E403E38C202" style="OLC"> <subparagraph id="HA036956C6CA143A99AA4A2DF72F8C300"><enum>(D)</enum><text display-inline="yes-display-inline">$9,000,000 for each of fiscal years 2011 through 2017.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H881CEF2C10C34A36B609FE5671268817" section-type="subsequent-section"><enum>3206.</enum><header>Global Crop Diversity Trust</header><text display-inline="no-display-inline">Section 3202(c) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 22 U.S.C. 2220a note) is amended by striking <quote>2008 through 2012</quote> and inserting <quote>2013 through 2017</quote>.</text> </section><section commented="no" display-inline="no-display-inline" id="id3C97FED4F3CB4A23BE637C2BD4AEE16C" section-type="subsequent-section"><enum>3207.</enum><header>Local and regional food aid procurement projects</header><text display-inline="no-display-inline">Section 3206 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 1726c) is amended—</text> <paragraph id="id56f7f36ce85b483398172a8c63a36610"><enum>(1)</enum><text>in subsection (b)—</text> <subparagraph id="id7f65efd4a69346bfab39bc9a7f346421"><enum>(A)</enum><text>by striking <quote>(b) <header-in-text level="subsection" style="OLC">Study; field-based projects</header-in-text>.—</quote> and all that follows through <quote>(2) <header-in-text level="paragraph" style="OLC">Field-based projects</header-in-text>.—</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id53C258AFE7A0476D86F2CBA5184CD319" style="OLC"> <subsection id="idB360747D2BB74166BF65326F1C947EBB"><enum>(b)</enum><header>Field-based projects</header> </subsection><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph><subparagraph id="idbbecc3c5c1004245bbf569506a0a48be"><enum>(B)</enum><text>by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively, and indenting appropriately;</text> </subparagraph><subparagraph id="id69C5CCB1E81847FBAD8997789F0AB845"><enum>(C)</enum><text>in paragraph (1) (as so redesignated), by striking <quote>subparagraph (B)</quote> and inserting <quote>paragraph (2)</quote>; and</text> </subparagraph><subparagraph id="idC4DA9EE9FEC3411EB1172B57BA2A2D59"><enum>(D)</enum><text>in paragraph (2) (as so redesignated), by striking <quote>subparagraph (A)</quote> and inserting <quote>paragraph (1)</quote>;</text> </subparagraph></paragraph><paragraph id="id25ADFC567F0544D8BB48536370C27A1F"><enum>(2)</enum><text>in subsection (c)(1), by striking <quote>subsection (b)(2)</quote> and inserting <quote>subsection (b)</quote>;</text> </paragraph><paragraph id="idf21fbc5254464e6d9ee39f6d36593b63"><enum>(3)</enum><text>by striking subsections (d), (f), and (g);</text> </paragraph><paragraph id="idF88B21C039614A039FEE91E2F67BF12D"><enum>(4)</enum><text>by redesignating subsection (e) as subsection (d);</text> </paragraph><paragraph id="id9d0ca3146e3d47e4bc4447fef9eb34ed"><enum>(5)</enum><text>in subsection (d) (as so redesignated)—</text> <subparagraph id="idA87BAAFE641F423C9CBD6F9292408C62"><enum>(A)</enum><text>in paragraph (2)—</text> <clause id="id57FD1F15044B43DC85DFAACE033A8370"><enum>(i)</enum><text>by striking subparagraph (B); and</text> </clause><clause id="idAE5030FF5D7944B28FACF07DBCC31C57"><enum>(ii)</enum><text>in subparagraph (A)—</text> <subclause id="id6F1B85F0C42F439BA82EB71BEFD79939"><enum>(I)</enum><text>by striking <quote>(A) <header-in-text level="subparagraph" style="OLC">Application</header-in-text>.—</quote> and all that follows through <quote>To be eligible</quote> in clause (i) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idE1B1CDA43D4946C9A82A2531E675C336" style="OLC"> <subparagraph id="idEFEF98AD427B4FDBA3E0F4E69E7EABBF"><enum>(A)</enum><header>In general</header><text>To be eligible</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </subclause><subclause id="idD320936D8D4C4BAF8DECFFB3234CECAD"><enum>(II)</enum><text>by redesignating clause (ii) as subparagraph (B) and indenting appropriately; and</text> </subclause><subclause id="id749D98CCF6B040FCBFDA49C093DFB3D0"><enum>(III)</enum><text>in subparagraph (B) (as so redesignated), by striking <quote>clause (i)</quote> and inserting <quote>subparagraph (A)</quote>; and</text> </subclause></clause></subparagraph><subparagraph id="idb981a7f1ba75433aac4a8f45670b1815"><enum>(B)</enum><text>by striking paragraph (4); and</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id936033D3B7EE468AA74453538860D8C0"><enum>(6)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id3C637F9568BF471EBD6C99C5664C9133" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="id34FA7EDB1BF4469FADC5E7335377EC9E"><enum>(e)</enum><header>Funding</header> <paragraph commented="no" display-inline="no-display-inline" id="id864B76E5E9CD46868DA7A7A3A0D18BBE"><enum>(1)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $40,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8CC5AB29D4864316B2A33BC704CC576C"><enum>(2)</enum><header>Preference</header><text>In carrying out this section, the Secretary may give a preference to eligible organizations that have, or are working toward, projects under the McGovern-Dole International Food for Education and Child Nutrition Program established under section 3107 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o–1).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC2BF7FC5757946D784F1399D4B3A6A30"><enum>(3)</enum><header>Reporting</header><text>Each year, the Secretary shall submit to the appropriate committees of Congress a report that describes the use of funds under this section, including—</text> <subparagraph id="idcd1a163806c84cd89ced10a4af3ba1c5"><enum>(A)</enum><text>the impact of procurements and projects on—</text> <clause id="idb7c807ae124b48b2a574d93952ac6024"><enum>(i)</enum><text>local and regional agricultural producers; and</text> </clause><clause id="id450c36f9e933451eb4751d14ddd14f86"><enum>(ii)</enum><text>markets and consumers, including low-income consumers; and</text> </clause></subparagraph><subparagraph id="idddb215ebf34543a7a3e4e6f669185c84"><enum>(B)</enum><text>implementation time frames and costs.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section commented="no" display-inline="no-display-inline" id="idF83CA5D112544125949A5D72EA136639"><enum>3208.</enum><header>Donald Payne Horn of Africa food resilience program</header> <subsection id="id67e052ccbc0f460098ef569d3c48fc82"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="idbdb5ca1ae0c44fae94fc98fadd54540b"><enum>(1)</enum><header>Administrator</header><text>The term <term>Administrator</term> means the Administrator of the Agency for International Development.</text> </paragraph><paragraph id="id9d1d8b102fed4cc29b93aa01b4c8e09d"><enum>(2)</enum><header>Appropriate committees of Congress</header><text>The term <term>appropriate committees of Congress</term> means—</text> <subparagraph id="id5653a094bf09445da3295fe10a457bd5"><enum>(A)</enum><text>the Committee on Agriculture, Nutrition, and Forestry of the Senate;</text> </subparagraph><subparagraph id="id053da693dbf5455ca9866a2ed5619574"><enum>(B)</enum><text>the Committee on Agriculture of the House of Representatives;</text> </subparagraph><subparagraph id="ide2561d8dd1f7477f8d04f78f4949aafa"><enum>(C)</enum><text>the Committee on Foreign Relations of the Senate; and</text> </subparagraph><subparagraph id="id2db21402b36547cc9188a8ddfba4b7de"><enum>(D)</enum><text>the Committee on Foreign Affairs of the House of Representatives.</text> </subparagraph></paragraph><paragraph id="id476796ecb02744048611026982a72e34"><enum>(3)</enum><header>Eligible organization</header><text>The term <term>eligible organization</term> means an organization that is—</text> <subparagraph id="id27d821bb864b49e99f717ebbbbd0bc87"><enum>(A)</enum><text>a private voluntary organization or cooperative that is, to the extent practicable, registered with the Administrator; or</text> </subparagraph><subparagraph id="id847db8b6864c4c36bbe2b12d40974085"><enum>(B)</enum><text>an intergovernmental organization, such as the World Food Program.</text> </subparagraph></paragraph><paragraph id="id492a4c37e98c4c8fb815b10384a4bf64"><enum>(4)</enum><header>Horn of Africa</header><text>The term <term>Horn of Africa</term> means the countries of—</text> <subparagraph id="id7de330a693c04db393ad3b858a290647"><enum>(A)</enum><text>Ethiopia;</text> </subparagraph><subparagraph id="idbcac8a1ef2354685ab901b8d0b4a426e"><enum>(B)</enum><text>Somalia;</text> </subparagraph><subparagraph id="idf9b6e785e3504be78ed8a0aca5f6c7f8"><enum>(C)</enum><text>Kenya;</text> </subparagraph><subparagraph id="idd27e268bcdc14733b7f0d93f9a435d10"><enum>(D)</enum><text>Djibouti;</text> </subparagraph><subparagraph id="id71c30990af2c4985ac72173b3fe22a21"><enum>(E)</enum><text>Eritrea;</text> </subparagraph><subparagraph id="id73AA0C74BBEC48A9B6F76876A077865C"><enum>(F)</enum><text>South Sudan;</text> </subparagraph><subparagraph id="id73ab7aaa77eb46b1bbcd503e6b5d23a1"><enum>(G)</enum><text>Uganda; and</text> </subparagraph><subparagraph id="id46845836253744F58CABD30C03B9CAA6"><enum>(H)</enum><text>such other countries as the Administrator determines to be appropriate after providing notification to the appropriate committees of Congress.</text> </subparagraph></paragraph><paragraph id="id8187d58804c444e3990c9d85ed275a01"><enum>(5)</enum><header>Resilience</header><text>The term <term>resilience</term> means—</text> <subparagraph id="idb9997e66805c41d9a4d6bfcc18527159"><enum>(A)</enum><text>the capacity to mitigate the negative impacts of crises (including natural disasters, conflicts, and economic shocks) in order to reduce loss of life and depletion of productive assets;</text> </subparagraph><subparagraph id="id2f647a51586140c796006b0b22800f02"><enum>(B)</enum><text>the capacity to respond effectively to crises, ensuring basic needs are met in a way that is integrated with long-term development efforts; and</text> </subparagraph><subparagraph id="id85abf3666eb14ef7b4349e0b9ec5a118"><enum>(C)</enum><text>the capacity to recover and rebuild after crises so that future shocks can be absorbed with less need for ongoing external assistance.</text> </subparagraph></paragraph></subsection><subsection id="idd268da77691f4e49b885a8fad0592ead"><enum>(b)</enum><header>Purpose</header><text>The purpose of this section is to establish a pilot program to effectively integrate all United States-funded emergency and long-term development activities that aim to improve food security in the Horn of Africa, building resilience so as—</text> <paragraph id="id5b39cccf862a4d6a870b6ba8d7287b86"><enum>(1)</enum><text>to reduce the impacts of future crises;</text> </paragraph><paragraph id="id350bfbaed66c4f4bba08174fb3a45542"><enum>(2)</enum><text>to enhance local capacity for emergency response;</text> </paragraph><paragraph id="idf864c530c35b4922bbfee37c60f8b1c9"><enum>(3)</enum><text>to enhance sustainability of long-term development programs targeting poor and vulnerable households; and</text> </paragraph><paragraph id="id7efa594607534bca88c4a3656da84ef7"><enum>(4)</enum><text>to reduce the need for repeated costly emergency operations.</text> </paragraph></subsection><subsection id="id834b64bb4b59410cba516190168496f2"><enum>(c)</enum><header>Study</header> <paragraph id="idf6cf9dd475704d41b01dd735b09b0bd8"><enum>(1)</enum><header>In general</header><text>Not later than 30 days after the date of enactment of this Act, the Administrator shall initiate a study of prior programs to support resilience in the Horn of Africa conducted by—</text> <subparagraph id="idaca6315eb43c4dffa26e943a07ad80cc"><enum>(A)</enum><text>other donor countries;</text> </subparagraph><subparagraph id="id2b41bf05a20641fa9ce143c5b5f69191"><enum>(B)</enum><text>private voluntary organizations;</text> </subparagraph><subparagraph id="idac4da7941f09441289166ba434db8674"><enum>(C)</enum><text>the World Food Program of the United Nations; and</text> </subparagraph><subparagraph id="id760b4b891fc442e3942ea5a02b7fda72"><enum>(D)</enum><text>multilateral institutions, including the World Bank.</text> </subparagraph></paragraph><paragraph id="idb602870124394806a23b4394a6291a75"><enum>(2)</enum><header>Requirements</header><text>The study shall—</text> <subparagraph id="idCB2C8B7D4E1A49B5921F79E6E4EC4C84"><enum>(A)</enum><text>include all programs implemented through the Agency for International Development, the Department of Agriculture, the Department of Treasury, the Millennium Challenge Corporation, the Peace Corps, and other relevant Federal agencies;</text> </subparagraph><subparagraph id="id80E3A302438141968DBA8405946C63AF"><enum>(B)</enum><text>evaluate how well the programs described in subparagraph (A) work together to complement each other and leverage impacts across programs;</text> </subparagraph><subparagraph id="id63C6BE2A231C4AE98B5FDEB1B7EAFD37"><enum>(C)</enum><text>include recommendations for how full integration of efforts can be achieved; and</text> </subparagraph><subparagraph id="id0dc1ed41f0244633a8e097c9ca1b3880"><enum>(D)</enum><text>evaluate the degree to which country-led development plans support programs that increase resilience, including review of the investments by each country in nutrition and safety nets.</text> </subparagraph></paragraph><paragraph id="idb6f53595e6f441cd9c9183ebf50f8fe1"><enum>(3)</enum><header>Report</header><text>Not later than 180 days after the date of enactment of this Act, the Administrator shall submit to the appropriate committees of Congress a report containing the results of the study.</text> </paragraph></subsection><subsection id="idac1fd2f6ea714dfe8a3c2d0319213455"><enum>(d)</enum><header>Field-based project grants or cooperative agreements</header> <paragraph id="id8bfa1c4b0f4f49d6afb0265b6920ec62"><enum>(1)</enum><header>In general</header><text>The Administrator shall—</text> <subparagraph id="idA467FEAA2EBA486787D4D6E3DB13CBC2"><enum>(A)</enum><text>provide grants to, or enter into cooperative agreements with, eligible organizations to carry out field-based projects that build resilience in the Horn of Africa in accordance with this section; and</text> </subparagraph><subparagraph id="id8071562102034b8a9379633dad321a82"><enum>(B)</enum><text>develop a project approval process to ensure full integration of efforts.</text> </subparagraph></paragraph><paragraph id="idfda10a6ec6774efba41323074d2bc49c"><enum>(2)</enum><header>Requirements of eligible organizations</header> <subparagraph id="idaf748b440e7b42e4a15a74cc344e5619"><enum>(A)</enum><header>Application</header><text>To be eligible to receive a grant from, or enter into a cooperative agreement with, the Administrator under this subsection, an eligible organization shall submit to the Administrator an application by such date, in such manner, and containing such information as the Administrator may require.</text> </subparagraph><subparagraph id="idfcce606cefb1415283f4bc308d574117"><enum>(B)</enum><header>Completion requirement</header><text>To be eligible to receive a grant from, or enter into a cooperative agreement with, the Administrator under this subsection, an eligible organization shall agree—</text> <clause id="id98f9e44b5f904913abf839b66bd98e27"><enum>(i)</enum><text>to collect, not later than September 30, 2016, data containing the information required under subsection (f)(2) relating to the field-based project funded through the grant or cooperative agreement; and</text> </clause><clause id="id34862dad674c46bf8496aba277d354f0"><enum>(ii)</enum><text>to provide to the Administrator the data collected under clause (i).</text> </clause></subparagraph></paragraph><paragraph id="id05bbf8a271cc4abca1c0ec159ad80555"><enum>(3)</enum><header>Requirements of Administrator</header> <subparagraph id="id87acadd2b7284d05a3215404f75371ea"><enum>(A)</enum><header>Project diversity</header> <clause id="id15bed395ba234938bf05fd3dac4581db"><enum>(i)</enum><header>In general</header><text>Subject to clause (ii) and subparagraph (B), in selecting proposals for field-based projects to fund under this section, the Administrator shall select a diversity of projects, including projects located in—</text> <subclause id="id23088692f9d246299017667c48724ebe"><enum>(I)</enum><text>areas most prone to repeated crises;</text> </subclause><subclause id="id3670eb5b0a764653a084f8fa7f20a2bd"><enum>(II)</enum><text>areas with effective existing resilience programs that can be scaled; and</text> </subclause><subclause id="ida8c2389403d7418d9634adf3205b4ad2"><enum>(III)</enum><text>areas in all countries of the Horn of Africa.</text> </subclause></clause><clause id="id497bd4e58df947ebbb7234744976f591"><enum>(ii)</enum><header>Priority</header><text>In selecting proposals for field-based projects under clause (i), the Administrator shall ensure that the selected proposals are for field-based projects that—</text> <subclause id="id9be7c08631264c3ea5e6924a97147a25"><enum>(I)</enum><text>effectively integrate emergency and long-term development programs to improve sustainability;</text> </subclause><subclause id="id3959218910d24bbfb1f8ef4a791a495f"><enum>(II)</enum><text>demonstrate the potential to reduce the need for future emergency assistance; and</text> </subclause><subclause id="id52c8941ff73e4a3b8bfbe490f30a9c5f"><enum>(III)</enum><text>build targeted productive safety nets, in coordination with host country governments, through food for work, cash for work, and other proven program methodologies.</text> </subclause></clause></subparagraph><subparagraph id="idfddf70da4f48427fb5a118623c9e9a7e"><enum>(B)</enum><header>Availability</header><text>The Administrator shall not award a grant or cooperative agreement or approve a field-based project under this subsection until the date on which the Administrator promulgates regulations or issues guidelines under subsection (e).</text> </subparagraph></paragraph></subsection><subsection id="idbd3e23e160274c23b47876f89c524c41"><enum>(e)</enum><header>Regulations; Guidelines</header> <paragraph id="id0e07175b6d9e4c469e49aa790cdbdec5"><enum>(1)</enum><header>In general</header><text>Not later than 180 days after the date of completion of the study under subsection (c), the Administrator shall promulgate regulations or issue guidelines to carry out field-based projects under this section.</text> </paragraph><paragraph id="id3a86a951a2534729be51af9d533f1f6d"><enum>(2)</enum><header>Requirements</header><text>In promulgating regulations or issuing guidelines under paragraph (1), the Administrator shall—</text> <subparagraph id="id6A2A2499BFB74923A7E9A8C99756C882"><enum>(A)</enum><text>take into consideration the results of the study described in subsection (c); and</text> </subparagraph><subparagraph id="idaf8c3a1319ca401d9c9f2b93541f6690"><enum>(B)</enum><text>provide an opportunity for public review and comment.</text> </subparagraph></paragraph></subsection><subsection id="idf351c457768043818625b1227e59ec24"><enum>(f)</enum><header>Report</header> <paragraph id="id8a613844156b4da38074349cfa3b3edc"><enum>(1)</enum><header>In general</header><text>Not later than November 1, 2016, the Administrator shall submit to the appropriate committees of Congress a report that—</text> <subparagraph id="id0754cc55e391447cb15d2c137f740531"><enum>(A)</enum><text>addresses each factor described in paragraph (2); and</text> </subparagraph><subparagraph id="id78d16ba660f3472ea53e6da2283d68ff"><enum>(B)</enum><text>is conducted in accordance with this section.</text> </subparagraph></paragraph><paragraph id="idf131f7ac6faf43578bddbbdb2e01ded1"><enum>(2)</enum><header>Required factors</header><text>The report shall include baseline and end-of-project data that measures—</text> <subparagraph id="id07ee1799862b4729968c7ba83d1a8144"><enum>(A)</enum><text>the prevalence of moderate and severe hunger so as to provide an accurate accounting of project impact on household access to and consumption of food during every month of the year prior to data collection;</text> </subparagraph><subparagraph id="id354234e9598141519a92fdd9d0701895"><enum>(B)</enum><text>household ownership of and access to productive assets, including at a minimum land, livestock, homes, equipment, and other materials assets needed for income generation;</text> </subparagraph><subparagraph id="id719c1e6b41644de291634ea7d3a6e387"><enum>(C)</enum><text>household incomes, including informal sources of employment; and</text> </subparagraph><subparagraph id="id023eed5d71fc41f998c23509da8b1ca5"><enum>(D)</enum><text>the productive assets of women using the Women’s Empowerment in Agriculture Index.</text> </subparagraph></paragraph><paragraph id="idfce6250d1bfe41a8a9b3e493a7487bbf"><enum>(3)</enum><header>Public access to records and reports</header><text>Not later than 90 days after the date on which the report is submitted under paragraph (1), the Administrator shall provide public access to the report.</text> </paragraph></subsection><subsection id="id496992cd120042bc90eedda578a91542"><enum>(g)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2013 through 2017.</text> </subsection></section><section id="id5e6dca82f82e4a0080f35201f53aca4a"><enum>3209.</enum><header>Agricultural trade enhancement study</header> <subsection id="idA470A5E6C208495D8A8D69E5D6FCEB8C"><enum>(a)</enum><header>Definition of agriculture committees and subcommittees</header><text>In this section, the term <term>agriculture committees and subcommittees</term> means—</text> <paragraph id="id4a64337575264e6fa9d05aec3f7d68b7"><enum>(1)</enum><text>the Committee on Agriculture of the House of Representatives;</text> </paragraph><paragraph id="id21EECFCE75E54696AE5A552482416FE4"><enum>(2)</enum><text>the Committee on Agriculture, Nutrition, and Forestry of the Senate; and</text> </paragraph><paragraph id="idbca50d3cb8a54b7995e076463e7d6874"><enum>(3)</enum><text>the subcommittees on agriculture, rural development, food and drug administration, and related agencies of the Committees on Appropriations of the House of Representatives and the Senate.</text> </paragraph></subsection><subsection id="idfba4c77311ad401496952f47964e6da7"><enum>(b)</enum><header>Development</header><text>The Secretary, in consultation with the agriculture committees and subcommittees, shall develop a study that takes into consideration a reorganization of international trade functions for imports and exports at the Department of Agriculture.</text> </subsection><subsection id="idC4107829F3614E448A4BE9E272E3101A"><enum>(c)</enum><header>Implementation</header><text>In implementing the study under this section, the Secretary—</text> <paragraph id="id996a1b34f02248e3a1dfb8b52fee5aaa"><enum>(1)</enum><text>in recognition of the importance of agricultural exports to the farm economy and the economy as a whole, may include a recommendation for the establishment of an Under Secretary for Trade and Foreign Agricultural Affairs;</text> </paragraph><paragraph id="idc002b718120844a78bc6662dd8bf73b0"><enum>(2)</enum><text>may take into consideration how the Under Secretary described in paragraph (1) would serve as a multiagency coordinator of sanitary and phytosanitary issues and nontariff trade barriers in agriculture with respect to imports and exports of agricultural products; and</text> </paragraph><paragraph id="id4b154fda3b534c769f612dd5566223c0"><enum>(3)</enum><text>shall take into consideration all implications of a reorganization described in subsection (b) on domestic programs and operations of the Department of Agriculture.</text> </paragraph></subsection><subsection id="id84ac3c8856354042ab5a4c1e47fea3d6"><enum>(d)</enum><header>Report</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the agriculture committees and subcommittees a report describing the results of the study under this section.</text> </subsection></section></subtitle><enum>IV</enum><header>Nutrition</header> <subtitle id="HDC24FF5392D74A5083ABB200C6E5C632"><enum>A</enum><header>Supplemental nutrition assistance program</header> <section id="H25C11CD942E64594ADEF2E5625A35D45"><enum>4001.</enum><header>Food distribution program on Indian reservations</header><text display-inline="no-display-inline">Section 4(b)(6)(F) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b)(6)(F)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section commented="no" id="IDeb03b616f40b438a93082a33d547d47b"><enum>4002.</enum><header>Standard utility allowances based on the receipt of energy assistance payments</header> <subsection commented="no" id="ID31ee4ca872b846ba853673f78d1a3661"><enum>(a)</enum><header>Standard utility allowances in the supplemental nutrition assistance program</header><text>Section 5(e)(6)(C) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(C)) is amended—</text> <paragraph commented="no" id="idF795EEB8037E49769E8A14BA1E925235"><enum>(1)</enum><text>in clause (i), by inserting <quote>, subject to clause (iv)</quote> after <quote>Secretary</quote>; and</text> </paragraph><paragraph commented="no" id="idD5866F5308B14BBB997CA94A6BEA888D"><enum>(2)</enum><text>in clause (iv)(I), by striking <quote>the household still incurs</quote> and all that follows through the end of the subclause and inserting <quote>the payment received by, or made on behalf of, the household exceeds $10 or a higher amount annually, as determined by the Secretary.</quote>.</text> </paragraph></subsection><subsection commented="no" id="IDfc3d3fce9d6747c1a6a25e1d71ab2719"><enum>(b)</enum><header>Conforming amendment</header><text>Section 2605(f)(2)(A) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)(2)(A)) is amended by inserting before the semicolon at the end <quote>, except that, for purposes of the supplemental nutrition assistance program established under the <act-name parsable-cite="FSA77">Food and Nutrition Act of 2008</act-name> (7 U.S.C. 2011 et seq.), such payments or allowances exceed $10 or a higher amount annually, as determined by the Secretary of Agriculture in accordance with section 5(e)(6)(C)(iv)(I) of that Act (7 U.S.C. 2014(e)(6)(C)(iv)(I))</quote>.</text> </subsection><subsection commented="no" id="IDfee2c0932be0403fa0f092fbbee09f4a"><enum>(c)</enum><header>Effective and implementation date</header> <paragraph commented="no" id="IDd131bfff4662412eb318176d64a0d227"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), this section and the amendments made by this section shall take effect beginning on October 1, 2013, for all certification periods beginning after that date.</text> </paragraph><paragraph commented="no" id="ID9f5675ac5a6a45b18357a0327d75f0f7"><enum>(2)</enum><header>State option to delay implementation for current recipients</header><text>A State may, at the option of the State, implement a policy that eliminates or minimizes the effect of the amendments made by this section for households that receive a standard utility allowance as of the date of enactment of this Act for not more than a 180-day period beginning on the date on which the amendments made by this section would otherwise affect the benefits received by a household.</text> </paragraph></subsection></section><section id="H625DA36E23B2465083301248ECDCCD1"><enum>4003.</enum><header>Eligibility disqualifications</header><text display-inline="no-display-inline">Section 6(e)(3)(B) of Food and Nutrition Act of 2008 (7 U.S.C. 2015(e)(3)(B)) is amended by striking <quote>section</quote> and inserting the following: “section, subject to the condition that the course or program of study—</text> <quoted-block display-inline="no-display-inline" id="idC1266FA732D345AE8B35A5D431BFA677" style="OLC"> <clause id="idC0E68AD5FA43432FBA386FAA975CD0F9"><enum>(i)</enum><text>is part of a program of career and technical education (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302)) that may be completed in not more than 4 years at an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)); or</text> </clause><clause id="idA55731A1E078452E949505D6907D15C3"><enum>(ii)</enum><text>is limited to remedial courses, basic adult education, literacy, or English as a second language;</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id402bf3c10af64ce2b8ac5b8819e27a4e"><enum>4004.</enum><header>Ending supplemental nutrition assistance program benefits for lottery or gambling winners</header> <subsection id="id2731c669ed6d4309b2a8c8b8460d0c2d"><enum>(a)</enum><header>In general</header><text>Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id7606FC2D69074838B7E04178D66203F4" style="OLC"> <subsection id="id6cfad2ab3bcb4f1c97ce04dbb1e949ad"><enum>(r)</enum><header>Ineligibility for benefits due to receipt of substantial lottery or gambling winnings</header> <paragraph id="id8f3c28ca7c544926bee85e83f1f0d09e"><enum>(1)</enum><header>In general</header><text>Any household in which a member receives substantial lottery or gambling winnings, as determined by the Secretary, shall lose eligibility for benefits immediately upon receipt of the winnings.</text> </paragraph><paragraph id="idA77EA301DA9D422CB29DD0D5974C078B"><enum>(2)</enum><header>Duration of ineligibility</header><text>A household described in paragraph (1) shall remain ineligible for participation until the household meets the allowable financial resources and income eligibility requirements under subsections (c), (d), (e), (f), (g), (i), (k), (l), (m), and (n) of section 5.</text> </paragraph><paragraph id="id7077c9472e3e4c7e9ddc574aa53b8e2d"><enum>(3)</enum><header>Agreements</header><text>As determined by the Secretary, each State agency, to the maximum extent practicable, shall establish agreements with entities responsible for the regulation or sponsorship of gaming in the State to determine whether individuals participating in the supplemental nutrition assistance program have received substantial lottery or gambling winnings.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id69e1ea44c44647a79a49cf728d6f0205"><enum>(b)</enum><header>Conforming amendments</header><text>Section 5(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(a)) is amended in the second sentence by striking <quote>sections 6(b), 6(d)(2), and 6(g)</quote> and inserting <quote>subsections (b), (d)(2), (g), and (r) of section 6</quote>.</text> </subsection></section><section id="id5623DDEC7E894ABD9B9276B135F87455"><enum>4005.</enum><header>Retail food stores</header> <subsection commented="no" id="idC64BB08975B7405ABB4AC7AAA4E8BBEA"><enum>(a)</enum><header>Definition of retail food store</header><text>Subsection (o)(1)(A) of section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) (as redesignated by section 4016(a)(4)) is amended by striking <quote>at least 2</quote> and inserting <quote>at least 3</quote>.</text> </subsection><subsection commented="no" id="idA014C65C39CC4BFABCAD4AD041F34A0E"><enum>(b)</enum><header>Alternative benefit delivery</header><text>Section 7(f) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(f)) is amended—</text> <paragraph commented="no" id="id2B50CE6FB55B462DBC39E46F3F2CA50F"><enum>(1)</enum><text>by striking paragraph (2) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id0CC2F4CD1A554F3B83EFF315B357E1FC" style="OLC"> <paragraph commented="no" id="ID9320727570824bee9159f441d9aa3808"><enum>(2)</enum><header>Imposition of costs</header> <subparagraph commented="no" id="idDF3BD4A75AC14EC0925BB6A945A38E55"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the Secretary shall require participating retail food stores (including restaurants participating in a State option restaurant program intended to serve the elderly, disabled, and homeless) to pay 100 percent of the costs of acquiring, and arrange for the implementation of, electronic benefit transfer point-of-sale equipment and supplies, including related services.</text> </subparagraph><subparagraph commented="no" id="id9BDCD9FA3BFF476B8E62C7D0CD5D1009"><enum>(B)</enum><header>Exemptions</header><text>The Secretary may exempt from subparagraph (A)—</text> <clause commented="no" id="id2A74721C89C047DD95F3FDFA7D666ADF"><enum>(i)</enum><text>farmers’ markets, military commissaries, nonprofit food buying cooperatives, and establishments, organizations, programs, or group living arrangements described in paragraphs (5), (7), and (8) of section 3(k); and</text> </clause><clause commented="no" id="idF8E218307C2440BA98DC4DE911DAD400"><enum>(ii)</enum><text>establishments described in paragraphs (3), (4), and (9) of section 3(k), other than restaurants participating in a State option restaurant program.</text> </clause></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="id42435C8A392945F68D803338166F1A77"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id1585404482DA4BC187A2298188FF1137" style="OLC"> <paragraph commented="no" id="id917F37A2EB86443DB07DCE3BD6F5681D"><enum>(4)</enum><header>Termination of manual vouchers</header> <subparagraph commented="no" id="idDAA3A542A0814A10989B06ACF25D692C"><enum>(A)</enum><header>In general</header><text>Effective beginning on the date of enactment of this paragraph, except as provided in subparagraph (B), no State shall issue manual vouchers to a household that receives supplemental nutrition assistance under this Act or allow retail food stores to accept manual vouchers as payment, unless the Secretary determines that the manual vouchers are necessary, such as in the event of an electronic benefit transfer system failure or a disaster situation.</text> </subparagraph><subparagraph commented="no" id="IDaaeee994d5c449bfa2a4c2d5d7e9a8cf"><enum>(B)</enum><header>Exemptions</header><text>The Secretary may exempt categories of retail food stores or individual retail food stores from subparagraph (A) based on criteria established by the Secretary.</text> </subparagraph></paragraph><paragraph commented="no" id="id5BB23DA3595F4C05AEA6072730A59DE8"><enum>(5)</enum><header>Unique identification number required</header><text>The Secretary shall require all parties providing electronic benefit transfer services to provide for and maintain unique terminal identification number information through the supplemental nutrition assistance program electronic benefit transfer transaction routing system.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" id="id258774C6789640D393C9E2A6D9457496"><enum>(c)</enum><header>Electronic benefit transfers</header><text>Section 7(h)(3)(B) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(3)(B)) is amended by striking <quote>is operational—</quote> and all that follows through <quote>(ii) in the case of other participating stores,</quote> and inserting <quote>is operational</quote>.</text> </subsection><subsection commented="no" id="idF2376E57F6C845C8BC6688783552DAE1"><enum>(d)</enum><header>Approval of retail food stores and wholesale food concerns</header><text>Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) is amended—</text> <paragraph commented="no" id="id944D3A415FF94DBF8102C1AF58C06F9E"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph commented="no" id="idE9AC18C497A84DA3B1FC222A0F6DBC30"><enum>(A)</enum><text>in the second sentence of paragraph (a)(1), by striking <quote>; and (C)</quote> and inserting <quote>; (C) whether the applicant is located in an area with significantly limited access to food; and (D)</quote>; and</text> </subparagraph></paragraph><paragraph commented="no" id="idC5A243ED726D46ECAAD086A4007D0BAB"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id90F6D6B12B3245A4AB1D85A9FA5DE1D4" style="OLC"> <paragraph commented="no" id="id7CAC4643ECE6444393C712BB7A2F9841"><enum>(4)</enum><header>Retail food stores with significant sales of excepted items</header> <subparagraph commented="no" id="id34885CED797044E6B38A4C2C68F3CABD"><enum>(A)</enum><header>In general</header><text>No retail food store for which at least 45 percent of the total sales of the retail food store is from the sale of excepted items described in section 3(k)(1) may be authorized to accept and redeem benefits unless the Secretary determines that the participation of the retail food store is required for the effective and efficient operation of the supplemental nutrition assistance program.</text> </subparagraph><subparagraph commented="no" id="ID2c0208588b624fffb0e23cee28cc2155"><enum>(B)</enum><header>Application</header><text>Subparagraph (A) shall be effective—</text> <clause commented="no" id="id84BD9106796E4BBC948865864E0CB288"><enum>(i)</enum><text>in the case of retail food stores applying to be authorized for the first time, beginning on the date that is 1 year after the date of enactment of this paragraph; and</text> </clause><clause commented="no" id="id8E6C31C2913A4867A6D7422761293D8D"><enum>(ii)</enum><text>in the case of retail food stores participating in the program on the date of enactment of this paragraph, during periodic reauthorization in accordance with paragraph (2)(A).</text> </clause></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="idA1E4653D04F542EDAA2138908B15D371"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id3D73652EF1024F7B9FC3D16916B4720A" style="OLC"> <subsection id="ID85be581c2243464d89242b0b430679bf"><enum>(g)</enum><header>EBT service requirement</header><text>An approved retail food store shall provide adequate EBT service as described in section 7(h)(3)(B).</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section commented="no" id="idFF5C63B2675143109C6216232CAF76C1"><enum>4006.</enum><header>Improving security of food assistance</header><text display-inline="no-display-inline">Section 7(h)(8) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(8)) is amended—</text> <paragraph id="id1209D047D06940E4A04D71741D065DDF"><enum>(1)</enum><text>by striking the paragraph heading and inserting <quote><header-in-text level="paragraph" style="OLC">Replacement of cards</header-in-text>.—</quote>;</text> </paragraph><paragraph id="id7FD9012FFE144523B6FDE32212667C87"><enum>(2)</enum><text>by striking <quote>A State</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id2FF361752D9D45809399A04E9A070D71" style="OLC"> <subparagraph id="id254E1CF916ED4C9C8BC91A34FCBD73B8"><enum>(A)</enum><header>Fees</header><text>A State</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="idF3C8AC6303F040F091A3232A45B1B0CF"><enum>(3)</enum><text>by adding after subparagraph (A) (as so designated by paragraph (2)) the following:</text> <quoted-block display-inline="no-display-inline" id="id3481182F1A8940FDB8F0C8D951A50DA1" style="OLC"> <subparagraph id="id392B3F30DE82494389AA4AEC158FC709"><enum>(B)</enum><header>Purposeful loss of cards</header> <clause id="id3A00039A0E824956A1D0D60CF75100FF"><enum>(i)</enum><header>In general</header><text>Subject to terms and conditions established by the Secretary in accordance with clause (ii), if a household makes excessive requests for replacement of the electronic benefit transfer card of the household, the Secretary may require a State agency to decline to issue a replacement card to the household unless the household, upon request of the State agency, provides an explanation for the loss of the card.</text> </clause><clause id="IDda441661ab6e42318d6068c5b36d055f"><enum>(ii)</enum><header>Requirements</header><text>The terms and conditions established by the Secretary shall provide that—</text> <subclause id="IDbe6759d3fa4b4ae5a24d6e1be29c054c"><enum>(I)</enum><text>the household be given the opportunity to provide the requested explanation and meet the requirements under this paragraph promptly;</text> </subclause><subclause id="ID14dd00d7d55d4fdd9f27ce2fb2cf7b71"><enum>(II)</enum><text>after an excessive number of lost cards, the head of the household shall be required to review program rights and responsibilities with State agency personnel authorized to make determinations under section 5(a); and</text> </subclause><subclause id="IDb1517be80fbc4430878cda40c36ed23a"><enum>(III)</enum><text>any action taken, including actions required under section 6(b)(2), other than the withholding of the electronic benefit transfer card until an explanation described in subclause (I) is provided, shall be consistent with the due process protections under section 6(b) or 11(e)(10), as appropriate.</text> </subclause></clause></subparagraph><subparagraph id="ID87b31a405049490b877901e4e9138536"><enum>(C)</enum><header>Protecting vulnerable persons</header><text>In implementing this paragraph, a State agency shall act to protect homeless persons, persons with disabilities, victims of crimes, and other vulnerable persons who lose electronic benefit transfer cards but are not intentionally committing fraud.</text> </subparagraph><subparagraph id="ID42bf4d1a547c4b069aca36b5198986d5"><enum>(D)</enum><header>Effect on eligibility</header><text>While a State may decline to issue an electronic benefits transfer card until a household satisfies the requirements under this paragraph, nothing in this paragraph shall be considered a denial of, or limitation on, the eligibility for benefits under section 5.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section commented="no" id="id07826ad54fae496bb3dc0d00bb31e675"><enum>4007.</enum><header>Technology modernization for retail food stores</header> <subsection commented="no" id="id999f8baae1f64c019c6baac38802a627"><enum>(a)</enum><header>Mobile technologies</header><text>Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)) (as amended by section 4016(e)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idc17bf1d778294446ba7f5f8cd930627e" style="OLC"> <paragraph commented="no" id="idcf2c2cefebbf4fcc930e62e520e3bec8"><enum>(14)</enum><header>Mobile technologies</header> <subparagraph commented="no" id="idffebd073415244d2bd4037e7670cf3e8"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), the Secretary shall approve retail food stores to redeem benefits through electronic means other than wired point of sale devices for electronic benefit transfer transactions, if the retail food stores—</text> <clause commented="no" id="ide22b31dea04c490d8d6139eb3c8657bb"><enum>(i)</enum><text>establish recipient protections regarding privacy, ease of use, access, and support similar to the protections provided for transactions made in retail food stores;</text> </clause><clause commented="no" id="id78fa95294e8c4857a18afb9bfd584dea"><enum>(ii)</enum><text>bear the costs of obtaining, installing, and maintaining mobile technologies, including mechanisms needed to process EBT cards and transaction fees;</text> </clause><clause commented="no" id="id55e7a5dd1bd5414294e6fd603b3e4d67"><enum>(iii)</enum><text>demonstrate the foods purchased with benefits issued under this section through mobile technologies are purchased at a price not higher than the price of the same food purchased by other methods used by the retail food store, as determined by the Secretary;</text> </clause><clause commented="no" id="id3CA16630CE81487BB7F28839E8BC251C"><enum>(iv)</enum><text>provide adequate documentation for each authorized transaction, as determined by the Secretary; and</text> </clause><clause commented="no" id="id1967d47cdd9e4d9887978d7f78ee7541"><enum>(v)</enum><text>meet other criteria as established by the Secretary.</text> </clause></subparagraph><subparagraph commented="no" id="id3ee34b7f1a2f4b4c94582eb9a5b192c9"><enum>(B)</enum><header>Demonstration project on acceptance of benefits of mobile transactions</header> <clause commented="no" id="id8c7b1f80ae394407a369e86e586c8119"><enum>(i)</enum><header>In general</header><text>Before authorizing implementation of subparagraph (A) in all States, the Secretary shall pilot the use of mobile technologies determined by the Secretary to be appropriate to test the feasibility and implications for program integrity, by allowing retail food stores to accept benefits from recipients of supplemental nutrition assistance through mobile transactions.</text> </clause><clause commented="no" id="id0d332877b33d40f5835f6c557cea0109"><enum>(ii)</enum><header>Demonstration projects</header><text>To be eligible to participate in a demonstration project under clause (i), a retail food store shall submit to the Secretary for approval a plan that includes—</text> <subclause commented="no" id="id6f74f6220abf4519aac1ffc6a98633a7"><enum>(I)</enum><text>a description of the technology;</text> </subclause><subclause commented="no" id="idf97eee2f410c4a3ea4e870a2c9375d72"><enum>(II)</enum><text>the manner by which the retail food store will provide proof of the transaction to households;</text> </subclause><subclause commented="no" id="idce17fdcdedcf414e842d41acfd55397a"><enum>(III)</enum><text>the provision of data to the Secretary, consistent with requirements established by the Secretary, in a manner that allows the Secretary to evaluate the impact of the demonstration on participant access, ease of use, and program integrity; and</text> </subclause><subclause commented="no" id="idf4cd3abf0d2e42918ae5b2b72324735e"><enum>(IV)</enum><text>such other criteria as the Secretary may require.</text> </subclause></clause><clause commented="no" id="id0dfd91d7f8494074acca1f40a9ee10ce"><enum>(iii)</enum><header>Date of completion</header><text>The demonstration projects under this subparagraph shall be completed and final reports submitted to the Secretary by not later than July 1, 2015.</text> </clause></subparagraph><subparagraph commented="no" id="id3fb28d47b1ac4ddbab962cb3e2a3300d"><enum>(C)</enum><header>Report to Congress</header><text>The Secretary shall—</text> <clause commented="no" id="idb8bd27c5b6134b999ede307ce5d013c8"><enum>(i)</enum><text>by not later than January 1, 2016, authorize implementation of subparagraph (A) in all States, unless the Secretary makes a finding, based on the data provided under subparagraph (B), that implementation in all States is not in the best interest of the supplemental nutrition assistance program; and</text> </clause><clause commented="no" id="id6aa7ca5a262c47cc8b0a834674d5a452"><enum>(ii)</enum><text>if the determination made in clause (i) is not to implement subparagraph (A) in all States, submit a report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that includes the basis of the finding.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="id8c2503621efb433fab38db4341cb3c93"><enum>(b)</enum><header>Acceptance of benefits through on-line transactions</header> <paragraph commented="no" id="id5e44c03d3a1a400b9061949401932441"><enum>(1)</enum><header>In general</header><text>Section 7 of the Food and Nutrition Act of 2008 (7 U.S.C. 2016) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id35519D2B7EA3488C8D00B14CF5523067" style="OLC"> <subsection commented="no" id="id7bd2ad431b3a4a5aa0c67d5a98035548"><enum>(k)</enum><header>Option To accept program benefits through on-line transactions</header> <paragraph commented="no" id="id3f0ce61cedca43e6a441813b0cba3fda"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (4), the Secretary shall approve retail food stores to accept benefits from recipients of supplemental nutrition assistance through on-line transactions.</text> </paragraph><paragraph commented="no" id="id84B6863A755F4C648F987A0A6E393D9D"><enum>(2)</enum><header>Requirements to accept benefits</header><text>A retail food store seeking to accept benefits from recipients of supplemental nutrition assistance through on-line transactions shall—</text> <subparagraph commented="no" id="id965fa608af604d6e9f1c912f33142ebe"><enum>(A)</enum><text>establish recipient protections regarding privacy, ease of use, access, and support similar to the protections provided for transactions made in retail food stores;</text> </subparagraph><subparagraph commented="no" id="idc8ee4f2e51534cfc9b9f63dd6d9227a2"><enum>(B)</enum><text>ensure benefits are not used to pay delivery, ordering, convenience, or other fees or charges;</text> </subparagraph><subparagraph commented="no" id="id875cfb1e4b144e7d9d3d4e8f2d2192fa"><enum>(C)</enum><text>clearly notify participating households at the time a food order is placed—</text> <clause commented="no" id="id4edcc2d0cbac4df38633cbe5b29b73e1"><enum>(i)</enum><text>of any delivery, ordering, convenience, or other fee or charge associated with the food purchase; and</text> </clause><clause commented="no" id="id7f4b70bb00ae4e2fb56d4c4733610b01"><enum>(ii)</enum><text>that any such fee cannot be paid with benefits provided under this Act;</text> </clause></subparagraph><subparagraph commented="no" id="idb2a72cf1d3b54143b4383afeddd59e53"><enum>(D)</enum><text>ensure the security of on-line transactions by using the most effective technology available that the Secretary considers appropriate and cost-effective and that is comparable to the security of transactions at retail food stores; and</text> </subparagraph><subparagraph commented="no" id="ide82f28fe61f442fcbcfa54ee2d3e8dca"><enum>(E)</enum><text>meet other criteria as established by the Secretary.</text> </subparagraph></paragraph><paragraph commented="no" id="id5928ab99472a400ab5dfd75b2b7e754f"><enum>(3)</enum><header>State agency action</header><text>Each State agency shall ensure that recipients of supplemental nutrition assistance can use benefits on-line as described in this subsection as appropriate.</text> </paragraph><paragraph commented="no" id="id148bed73eb97406da5903ecf0fe417ba"><enum>(4)</enum><header>Demonstration project on acceptance of benefits through on-line transactions</header> <subparagraph commented="no" id="id5d6844b9d21448b49d851c7e600de74c"><enum>(A)</enum><header>In general</header><text>Before the Secretary authorizes implementation of paragraph (1) in all States, the Secretary shall carry out a number of demonstration projects as determined by the Secretary to test the feasibility of allowing retail food stores to accept benefits through on-line transactions.</text> </subparagraph><subparagraph commented="no" id="ida8f1007d2a544702a103ec6ba719ed47"><enum>(B)</enum><header>Demonstration projects</header><text>To be eligible to participate in a demonstration project under subparagraph (A), a retail food store shall submit to the Secretary for approval a plan that includes—</text> <clause commented="no" id="idcfd0f7d4ffaf4b38bacefcc90e81c22c"><enum>(i)</enum><text>a method of ensuring that benefits may be used to purchase only eligible items under this Act;</text> </clause><clause commented="no" id="idb7a70d20857b48dea355c79057b6939d"><enum>(ii)</enum><text>a description of the method of educating participant households about the availability and operation of on-line purchasing;</text> </clause><clause commented="no" id="idb54e5b8198b0482da2e2a40338eedfce"><enum>(iii)</enum><text>adequate testing of the on-line purchasing option prior to implementation;</text> </clause><clause commented="no" id="id99e4a63b83274f99b16beb6345e36eba"><enum>(iv)</enum><text>the provision of data as requested by the Secretary for purposes of analyzing the impact of the project on participant access, ease of use, and program integrity;</text> </clause><clause commented="no" id="idb4a20e4ae1a94ff6ae793c6a6c3f56f3"><enum>(v)</enum><text>reports on progress, challenges, and results, as determined by the Secretary; and</text> </clause><clause commented="no" id="id40dca59dbbeb44d8b65e58fa53eed610"><enum>(vi)</enum><text>such other criteria, including security criteria, as established by the Secretary.</text> </clause></subparagraph><subparagraph commented="no" id="idc5b5157c6ce04f7abc269a6d311473ef"><enum>(C)</enum><header>Date of completion</header><text>The demonstration projects under this paragraph shall be completed and final reports submitted to the Secretary by not later than July 1, 2015.</text> </subparagraph></paragraph><paragraph commented="no" id="id4c71827c0e0145ae871544adfe502fb0"><enum>(5)</enum><header>Report to Congress</header><text>The Secretary shall—</text> <subparagraph commented="no" id="id0113D3741DEA48FBAB6F0A930FF7103E"><enum>(A)</enum><text>by not later than January 1, 2016, authorize implementation of paragraph (1) in all States, unless the Secretary makes a finding, based on the data provided under paragraph (4), that implementation in all States is not in the best interest of the supplemental nutrition assistance program; and</text> </subparagraph><subparagraph commented="no" id="id8A6053BE26424516B5C98FD2DD5E3E6D"><enum>(B)</enum><text>if the determination made in subparagraph (A) is not to implement in all States, submit a report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that includes the basis of the finding.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="id65244d1d281f4a71a4eeb5bb095438ed"><enum>(2)</enum><header>Conforming amendments</header> <subparagraph commented="no" id="id66d02978239c42e99ead129dd150864b"><enum>(A)</enum><text>Section 7(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(b)) is amended by striking <quote>purchase food in retail food stores</quote> and inserting <quote>purchase food from retail food stores</quote>.</text> </subparagraph><subparagraph commented="no" id="idbee7e8f5dfd745979ffc5dbab1424e86"><enum>(B)</enum><text>Section 10 of the Food and Nutrition Act of 2008 (7 U.S.C. 2019) is amended in the first sentence by inserting <quote>retail food stores authorized to accept and redeem benefits through on-line transactions shall be authorized to accept benefits prior to the delivery of food if the delivery occurs within a reasonable time of the purchase, as determined by the Secretary,</quote> after <quote>food so purchased,</quote>.</text> </subparagraph></paragraph></subsection><subsection commented="no" id="id9B0A0DD9C6B8470ABC2CDCC427C0ABB9"><enum>(c)</enum><header>Savings clause</header><text>Nothing in this section or an amendment made by this section alter any requirements of the <act-name parsable-cite="FSA77">Food and Nutrition Act of 2008 </act-name>(7 U.S.C. 2011 et seq.) unless specifically authorized in this section or an amendment made by this section.</text> </subsection></section><section id="idDDBDE4DBB0714E4BB0B73B5C36EA0C53"><enum>4008.</enum><header>Use of benefits for purchase of community-supported agriculture share</header><text display-inline="no-display-inline">Section 10 of the Food and Nutrition Act of 2008 (7 U.S.C. 2019) (as amended by section 4007(b)(2)(B)) is amended in the first sentence by inserting <quote>agricultural producers who market agricultural products directly to consumers shall be authorized to redeem benefits for the initial cost of the purchase of a community-supported agriculture share for an appropriate time in advance of food delivery as determined by the Secretary,</quote> after <quote>as determined by the Secretary,</quote>.</text> </section><section commented="no" id="id1AA4386F9DAD4DBB85CD8B810A736150"><enum>4009.</enum><header>Restaurant meals program</header> <subsection commented="no" id="id937FEEEA193747DEB17ED7F0164F7D64"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 11(e) of the Food and Nutrition Act of 2008 (7 U.S.C. 2020(e)) is amended—</text> <paragraph commented="no" id="id01A00B450060496D93362F5B8F4B77C6"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (22), by striking <quote>and</quote> at the end;</text> </paragraph><paragraph commented="no" id="id72041DD6BCDB4CE28C6424263B519E42"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (23), by striking the period at the end of subparagraph (C) and inserting <quote>; and</quote>; and</text> </paragraph><paragraph commented="no" id="id14CDA03F51AF420DB6BD8B7F901ED71E"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id95791931C31C4C309C646EE80BB8BE47" style="OLC"> <paragraph commented="no" id="idBBF371B8C1994040A92ADADA233788A4"><enum>(24)</enum><text display-inline="yes-display-inline">if the State elects to carry out a program to contract with private establishments to offer meals at concessional prices, as described in paragraphs 3, 4, and 9 of section 3(k)—</text> <subparagraph commented="no" id="idF24475E50D7D40AE9A6E15E3138C16D5"><enum>(A)</enum><text display-inline="yes-display-inline">the plans of the State agency for operating the program, including—</text> <clause commented="no" id="ID094e8b77f9c341528ba1b5ecbd9e8fe3"><enum>(i)</enum><text>documentation of a need that eligible homeless, elderly, and disabled clients are underserved in a particular geographic area;</text> </clause><clause commented="no" id="ID9f558a4a541e4c65a3dc846306617060"><enum>(ii)</enum><text>the manner by which the State agency will limit participation to only those private establishments that the State determines necessary to meet the need identified in clause (i); and</text> </clause><clause commented="no" id="ID128cac2d1ad748e5950353f91ebf1ac3"><enum>(iii)</enum><text>any other conditions the Secretary may prescribe, such as the level of security necessary to ensure that only eligible recipients participate in the program; and</text> </clause></subparagraph><subparagraph commented="no" id="idF643F5B4F699423F972BB354C7D6633D"><enum>(B)</enum><text>a report by the State agency to the Secretary annually, the schedule of which shall be established by the Secretary, that includes—</text> <clause commented="no" id="id991C680ACA5B4EE795026DE3D4711C1C"><enum>(i)</enum><text>the number of households and individual recipients authorized to participate in the program, including any information on whether the individual recipient is elderly, disabled, or homeless; and</text> </clause><clause commented="no" id="id00A50A40EC2A431EA1A03EE675BD6ABC"><enum>(ii)</enum><text>an assessment of whether the program is meeting an established need, as documented under subparagraph (A)(i).</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" id="idB518607FAFBC4B5D881A47960A9DF07F"><enum>(b)</enum><header>Approval of retail food stores and wholesale food concerns</header><text>Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) (as amended by section 4005(d)(3)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id961D313D379E46C7B6F850C0B3D9AF32" style="OLC"> <subsection commented="no" id="id344BEB831DFE478EB5EFEEF3B1037BA9"><enum>(h)</enum><header>Private establishments</header> <paragraph commented="no" id="id76125409F264455E89D353364D6883DA"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), no private establishment that contracts with a State agency to offer meals at concessional prices as described in paragraphs 3, 4, and 9 of section 3(k) may be authorized to accept and redeem benefits unless the Secretary determines that the participation of the private establishment is required to meet a documented need in accordance with section 11(e)(24).</text> </paragraph><paragraph commented="no" id="idDA47EDF800384AEEBBE87E954EBC29A7"><enum>(2)</enum><header>Existing contracts</header> <subparagraph commented="no" id="id6C0E1706D0E04CE18F199BEF3EE16A2B"><enum>(A)</enum><header>In general</header><text>If, on the day before the date of enactment of this subsection, a State has entered into a contract with a private establishment described in paragraph (1) and the Secretary has not determined that the participation of the private establishment is necessary to meet a documented need in accordance with section 11(e)(24), the Secretary shall allow the operation of the private establishment to continue without that determination of need for a period not to exceed 180 days from the date on which the Secretary establishes determination criteria, by regulation, under section 11(e)(24).</text> </subparagraph><subparagraph commented="no" id="idD910122F7BF44D78B6403BAD9F0F7991"><enum>(B)</enum><header>Justification</header><text>If the Secretary makes a determination to terminate a contract with a private establishment that is in effect on the date of enactment of this subsection, the Secretary shall provide justification to the State in which the private establishment is located for that termination.</text> </subparagraph></paragraph><paragraph commented="no" id="id551556F6CBAE42C591D45AE94342A753"><enum>(3)</enum><header>Report to Congress</header><text>Not later than 90 days after September 30, 2013, and 90 days after the last day of each fiscal year thereafter, the Secretary shall report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the effectiveness of a program under this subsection using any information received from States under section 11(e)(24) as well as any other information the Secretary may have relating to the manner in which benefits are used.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="idA696032942524C559E3F679CB55890F9"><enum>(c)</enum><header>Conforming amendments</header><text>Section 3(k) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(k)) is amended by inserting <quote>subject to section 9(h)</quote> after <quote>concessional prices</quote> each place it appears.</text> </subsection></section><section commented="no" id="id2E3888F2EA3F42DABAB614C27DF5EE65"><enum>4010.</enum><header>Quality control error rate determination</header><text display-inline="no-display-inline">Section 16(c) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id1DBC34A539604043B1C02DE1B471CA17" style="OLC"> <paragraph id="id8a8d509dd9d14d81b61f403f0eaf406e"><enum>(10)</enum><header>Tolerance level</header><text>For the purposes of this subsection, the Secretary shall set the tolerance level for excluding small errors at $25.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="idE002FD93F0534867A405C165089FC8CE"><enum>4011.</enum><header>Performance bonus payments</header><text display-inline="no-display-inline">Section 16(d) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(d)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id39FABE123C254673B0E84C279444A83A" style="OLC"> <paragraph id="id916F47E7B6FF4A208CACAC6ABB21D819"><enum>(5)</enum><header>Use of performance bonus payments</header><text>A State agency may use a performance bonus payment received under this subsection only to carry out the program established under this Act, including investments in—</text> <subparagraph id="idC417B7C9C8A04DA98DB1E3C6EBF48369"><enum>(A)</enum><text>technology;</text> </subparagraph><subparagraph id="id308124DD11BC4A1AB20C2916B4B8F570"><enum>(B)</enum><text>improvements in administration and distribution; and</text> </subparagraph><subparagraph id="id7967CA2A46E64628B5EB18DDCA6560F4"><enum>(C)</enum><text>actions to prevent fraud, waste, and abuse.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H6C203B1829D646CB856024CAB273D2EB"><enum>4012.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">Section 18(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2027(a)(1)) is amended in the first sentence by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="idC2C68C038F1C48DD84A6B5D0F58F42DF"><enum>4013.</enum><header>Assistance for community food projects</header><text display-inline="no-display-inline">Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is amended—</text> <paragraph id="id9FCB14B6C4C74715A57D057CB3BDE38A"><enum>(1)</enum><text>in subsection (a)(1)(B)(ii)—</text> <subparagraph id="id56D076D4A40F469DB325BF823F96BB3B"><enum>(A)</enum><text>by striking subclause (I); and</text> </subparagraph><subparagraph id="id85A791A8D15E4F6289B082344BF3A7D8"><enum>(B)</enum><text>by redesignating subclauses (II) and (III) as subclauses (I) and (II), respectively; and</text> </subparagraph></paragraph><paragraph id="idDF4E691886AE4940AD047C19D1D1DF89"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b), by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id3D0761CECEAD4172A424AEFE01A2359E" style="OLC"> <paragraph id="ID1ff2ae29641849ca8e05557f2c76c84c"><enum>(3)</enum><header>Funding</header> <subparagraph id="ID4c543c0fbaf34f2f84c4661a698e464a"><enum>(A)</enum><header>In general</header><text>Out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section not less than $5,000,000 for fiscal year 2013 and each fiscal year thereafter.</text> </subparagraph><subparagraph id="IDf0bfe690cd5f460bb62578826b493885"><enum>(B)</enum><header>Receipt and acceptance</header><text>The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under subparagraph (A), without further appropriation.</text> </subparagraph><subparagraph id="ID2451ebfd825049f7bb926696c1e6535c"><enum>(C)</enum><header>Maintenance of funding</header><text>The funding provided under subparagraph (A) shall supplement (and not supplant) other Federal funding made available to the Secretary to carry out this section.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="id44b8a546710a43b18ba105f0fcdcda65"><enum>4014.</enum><header>Emergency food assistance</header> <subsection id="id158a9ef53d4842f980a93782b6f8d3ae"><enum>(a)</enum><header>Purchase of commodities</header><text>Section 27(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended—</text> <paragraph id="id0daa7eaf44494ea4ba4987cecb269d19"><enum>(1)</enum><text>in paragraph (1), by striking <quote>2008 through 2012</quote> and inserting <quote>2012 through 2017</quote>;</text> </paragraph><paragraph id="id401964a83c594be79ddfa9cf86b149e1"><enum>(2)</enum><text>by striking paragraph (2) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idfcf18ae3b4ad4586b31b14beca183a04" style="OLC"> <paragraph id="id6536f7d7d88e46ab9a85e1539789979a"><enum>(2)</enum><header>Amounts</header><text>The Secretary shall use to carry out paragraph (1)—</text> <subparagraph id="id6296823b53f649c5a6c9d454ad8c5a9d"><enum>(A)</enum><text>for fiscal year 2012, $260,250,000; and</text> </subparagraph><subparagraph id="ida90623962044424892dcd0a6a70c62c9"><enum>(B)</enum><text>for each subsequent fiscal year, the dollar amount of commodities specified in subparagraph (A) adjusted by the percentage by which the thrifty food plan has been adjusted under section 3(u)(4) between June 30, 2012, and June 30 of the immediately preceding fiscal year, and subsequently increased by—</text> <clause id="ideed90ffb047b4247bc0d0796c986f66a"><enum>(i)</enum><text>for fiscal year 2013, $28,000,000;</text> </clause><clause id="idf097fca04a374b009d3d3f3a4629cf12"><enum>(ii)</enum><text>for fiscal year 2014, $44,000,000;</text> </clause><clause id="ida1c1fb5403fc4edc8572f1a60f6c3a02"><enum>(iii)</enum><text>for fiscal year 2015, $24,000,000;</text> </clause><clause commented="no" id="idc5b3b528281b45fb8dd7293d3389202f"><enum>(iv)</enum><text>for fiscal year 2016, $18,000,000; and</text> </clause><clause id="id5ebddb3dd5974c978ae00d7b1572f347"><enum>(v)</enum><text>for fiscal year 2017 and each fiscal year thereafter, $10,000,000.</text> </clause></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="iddd3a830be4c54c90a4f57730866f3ffb"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id0ECBCF57E5BC4FC0B2478BAFDCCBFD83" style="OLC"> <paragraph commented="no" id="id04C6DAA969A24E00AC219038ADB760F8"><enum>(3)</enum><header>Funds availability</header><text>For purposes of the funds described in this subsection, the Secretary shall—</text> <subparagraph commented="no" id="id8FBB184D157548D69C96BA5C0DADC20B"><enum>(A)</enum><text>make the funds available for 2 fiscal years; and</text> </subparagraph><subparagraph commented="no" id="idA2CB3B6FA1884589A79F3BFEA916043E"><enum>(B)</enum><text>allow States to carry over unexpended balances to the next fiscal year pursuant to such terms and conditions as are determined by the Secretary.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H26DAD2E0EEA24606B4FA53D2E3E09379"><enum>(b)</enum><header>Emergency food program infrastructure grants</header><text display-inline="yes-display-inline">Section 209(d) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7511a(d)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </subsection></section><section commented="no" id="id471297F4B8AF44D8850B6E1209E6CB63"><enum>4015.</enum><header>Nutrition education</header><text display-inline="no-display-inline">Section 28(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036a(b)) is amended by inserting <quote>and physical activity</quote> after <quote>healthy food choices</quote>.</text> </section><section commented="no" id="ID41efe730111e48619df99b127e116841"><enum>4016.</enum><header>Retail food store and recipient trafficking</header><text display-inline="no-display-inline">The <act-name parsable-cite="FSA77">Food and Nutrition Act of 2008 </act-name>(7 U.S.C. 2011 et seq.) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id4603C9BAEE134A74827B5BC1C6B87363" style="OLC"> <section id="ID21ddd4bf91254966b83c95d0bd7e1011"><enum>29.</enum><header>Retail food store and recipient trafficking</header> <subsection id="ID70a5af50455e43c98891268ee04c3e07"><enum>(a)</enum><header>Purpose</header><text>The purpose of this section is to provide the Department of Agriculture with additional resources to prevent trafficking in violation of this Act by strengthening recipient and retail food store program integrity.</text> </subsection><subsection id="id7D81CFB12B924457B91C8017A083F572"><enum>(b)</enum><header>Use of funds</header><text>Additional funds are provided under this section to supplement the retail food store and recipient integrity activities of the Department.</text> </subsection><subsection id="ID3bbfa8ce90664c1db4093dac272f9dd7"><enum>(c)</enum><header>Funding</header> <paragraph id="ID5dc051eb5edc4ca19bed2027c3f59024"><enum>(1)</enum><header>In general</header><text>Out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section not less than $18,500,000 for fiscal year 2013 and each fiscal year thereafter.</text> </paragraph><paragraph id="ID0e5e03ea56334cb7adf25faa66041e4b"><enum>(2)</enum><header>Receipt and acceptance</header><text>The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under paragraph (1), without further appropriation.</text> </paragraph><paragraph id="ID2997fe0f9bf3441d8d965ac805dc4a2e"><enum>(3)</enum><header>Maintenance of funding</header><text>The funding provided under paragraph (1) shall supplement (and not supplant) other Federal funding for programs carried out under this Act.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id4A1200DC47CF457B8ABBD0703EBAA980"><enum>4017.</enum><header>Technical and conforming amendments</header> <subsection id="id7261EB6F4B81451F992B3B555074B019"><enum>(a)</enum><text>Section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) is amended—</text> <paragraph id="id87BB6FFEAE0540ED91BAEA48596FEB49"><enum>(1)</enum><text>in subsection (g), by striking <quote>coupon,</quote> and inserting <quote>coupon</quote>;</text> </paragraph><paragraph id="id8919AEFAF49E44829D3A3A879C08E55B"><enum>(2)</enum><text>in subsection (k)(7), by striking <quote>or are</quote> and inserting <quote>and</quote>;</text> </paragraph><paragraph id="idB321831A561F4420A325CB091EE9F2BA"><enum>(3)</enum><text>by striking subsection (l);</text> </paragraph><paragraph id="id8A92B834B6AD4DDBA89C769985F14757"><enum>(4)</enum><text>by redesignating subsections (m) through (t) as subsections (l) through (s), respectively; and</text> </paragraph><paragraph id="idBE04ACCAC8CC49EF8F27589BFF5A1D07"><enum>(5)</enum><text>by inserting after subsection (s) (as so redesignated) the following:</text> <quoted-block display-inline="no-display-inline" id="id35CEBE497D4C4CD78A92428DFEAF77DF" style="OLC"> <subsection id="id943FDC7EAF9C4F4E8E3FDBF2CC5A8F4B"><enum>(t)</enum><text><quote>Supplemental nutrition assistance program</quote> means the program operated pursuant to this Act.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="id38E82232BD974DA4AF6CB0A32EAF4465"><enum>(b)</enum><text>Section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is amended in the last sentence by striking <quote>benefits</quote> and inserting <quote>Benefits</quote>.</text> </subsection><subsection id="idC179B6C09EEB4209993FC75D5A1F9D6F"><enum>(c)</enum><text>Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is amended—</text> <paragraph id="id9B13E32CF054446088F89F34D8F4B51C"><enum>(1)</enum><text>in the last sentence of subsection (i)(2)(D), by striking <quote>section 13(b)(2)</quote> and inserting <quote>section 13(b)</quote>; and</text> </paragraph><paragraph id="idB2C43745AAD94E9B895A7C69BB1FD990"><enum>(2)</enum><text>in subsection (k)(4)(A), by striking <quote>paragraph (2)(H)</quote> and inserting <quote>paragraph (2)(G)</quote>.</text> </paragraph></subsection><subsection id="idAA7779335D75445699C3977A8134E94A"><enum>(d)</enum><text>Section 6(d)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)) is amended in subparagraphs (B)(vii) and (F)(iii) by indenting both clauses appropriately.</text> </subsection><subsection id="id43EE4538FFD142AE9D93239F3F296BE3"><enum>(e)</enum><text>Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)) is amended by redesignating the second paragraph (12) (relating to interchange fees) as paragraph (13).</text> </subsection><subsection id="id44E14C0CA7ED439C990393886B642D5D"><enum>(f)</enum><text>Section 9(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2018(a)) is amended by indenting paragraph (3) appropriately.</text> </subsection><subsection id="id8AE4D9A0E0A34A2C9417D2423946AB21"><enum>(g)</enum><text>Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 2021) is amended—</text> <paragraph id="id24C60D19D8754443BDC87CF2A95A8192"><enum>(1)</enum><text>in subsection (b)(3)(C), by striking <quote>civil money penalties</quote> and inserting <quote>civil penalties</quote>; and</text> </paragraph><paragraph id="id9E094B79EBD744A4A71D544C2D7F8938"><enum>(2)</enum><text>in subsection (g)(1), by striking <quote>(7 U.S.C. 1786)</quote> and inserting <quote>(42 U.S.C. 1786)</quote>.</text> </paragraph></subsection><subsection id="idBCCE3D0DD1A941759484F9881DB485A2"><enum>(h)</enum><text>Section 15(b)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2024(b)(1)) is amended in the first sentence by striking <quote>an benefit</quote> and inserting <quote>a benefit</quote>.</text> </subsection><subsection id="idCACE1DC836864B69A050BA560379F3F9"><enum>(i)</enum><text>Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(a)) is amended in the proviso following paragraph (8) by striking <quote>as amended.</quote>.</text> </subsection><subsection id="id1C5881F4EA3F4640844F12A8D5A707E7"><enum>(j)</enum><text>Section 18(e) of the Food and Nutrition Act of 2008 (7 U.S.C. 2027(e)) is amended in the first sentence by striking <quote>sections 7(f)</quote> and inserting <quote>section 7(f)</quote>.</text> </subsection><subsection id="id1F14C3AE41D243BD8BFDD0EB1F833DEA"><enum>(k)</enum><text>Section 22(b)(10)(B)(i) of the Food and Nutrition Act of 2008 (7 U.S.C. 2031(b)(10)(B)(i)) is amended in the last sentence by striking <quote>Food benefits</quote> and inserting <quote>Benefits</quote>.</text> </subsection><subsection id="id827F20ADA5CC4A0E95C7487813D16825"><enum>(l)</enum><text>Section 26(f)(3)(C) of the Food and Nutrition Act of 2008 (7 U.S.C. 2035(f)(3)(C)) is amended by striking <quote>subsection</quote> and inserting <quote>subsections</quote>.</text> </subsection><subsection id="id56CCFB3422014B9798EC8A6ECDCFD73D"><enum>(m)</enum><text>Section 27(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)(1)) is amended by striking <quote>(Public Law 98–8; 7 U.S.C. 612c note)</quote> and inserting <quote>(7 U.S.C. 7515)</quote>.</text> </subsection><subsection id="id3FCBBE4C26D846078147FFAC6A14A21E"><enum>(n)</enum><text>Section 509 of the Older Americans Act of 1965 (42 U.S.C. 3056g) is amended in the section heading by striking <quote><header-in-text level="section" style="OLC">food stamp programs</header-in-text></quote> and inserting <quote><header-in-text level="section" style="OLC">supplemental nutrition assistance programs</header-in-text></quote>.</text> </subsection><subsection id="idBFD09CCF724A427594FC36331AFED5AC"><enum>(o)</enum><text>Section 4115(c)(2)(H) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1871) is amended by striking <quote>531</quote> and inserting <quote>454</quote>.</text> </subsection></section></subtitle><subtitle id="H3C34E8E769DC4A3DB2562B8DCDFD4DF"><enum>B</enum><header>Commodity distribution programs</header> <section id="HACB4C2464DDE4CEFA465CE7D07D886EE"><enum>4101.</enum><header>Commodity distribution program</header><text display-inline="no-display-inline">Section 4(a) of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93–86) is amended in the first sentence by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section commented="no" id="H71E688ACE3434F97A715F0C8B0E76C8"><enum>4102.</enum><header>Commodity supplemental food program</header><text display-inline="no-display-inline">Section 5 of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93–86) is amended—</text> <paragraph commented="no" id="H31C54B88C5DD479C80A972A8C3EAEB"><enum>(1)</enum><text>in paragraphs (1) and (2)(B) of subsection (a), by striking <quote>2012</quote> each place it appears and inserting <quote>2017</quote>;</text> </paragraph><paragraph commented="no" id="HE78F5EAEDDFF41C3005F98C4DD0030B4"><enum>(2)</enum><text>in the first sentence of subsection (d)(2), by striking <quote>2012</quote> and inserting <quote>2017</quote>;</text> </paragraph><paragraph commented="no" id="id0202204907CB4D30ADCE1336500CD6BB"><enum>(3)</enum><text>by striking subsection (g) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id128EB2B467AB4433B5AA712572C6D7DD" style="OLC"> <subsection commented="no" id="idA07531F3314B4D0FA05EB0860A95C837"><enum>(g)</enum><header>Eligibility</header><text>Except as provided in subsection (m), the States shall only provide assistance under the commodity supplemental food program to low-income persons aged 60 and older.</text> </subsection><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="id2C795D60ECFC4D1A8C4199EC5401A4D1"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idE7363B7FDB0940149BD05E0FF76F3001" style="OLC"> <subsection commented="no" id="idC600F96E706943D2863DAC71C1E64B1D"><enum>(m)</enum><header>Phase-out</header><text>Notwithstanding any other provision of law, an individual who receives assistance under the commodity supplemental food program on the day before the date of enactment of this subsection shall continue to receive that assistance until the date on which the individual is no longer eligible for assistance under the eligibility requirements for the program in effect on the day before the date of enactment of this subsection.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="HC0A740C00AB8405FAF9BE37CCCB800B4"><enum>4103.</enum><header>Distribution of surplus commodities to special nutrition projects</header><text display-inline="no-display-inline">Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in the first sentence by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="idCB3314A20BEB42C18B16DEAFE2FBFE70"><enum>4104.</enum><header>Technical and conforming amendments</header><text display-inline="no-display-inline">Section 3 of the Commodity Distribution Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100–237) is amended—</text> <paragraph id="idEED8A9B7696E4BB09B06D57D51DC6404"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="idFFEA707FC12040C888605C53E019CF13"><enum>(A)</enum><text>in paragraph (2), by striking subparagraph (B) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idE522DD6214EA4027A3A0DE006EFFFA90" style="OLC"> <subparagraph id="id5AC6D12129C04330912D4150715FC34F"><enum>(B)</enum><text>the program established under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b));</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph><subparagraph id="idD6D6A5A3458841E6BA74B264477747F6"><enum>(B)</enum><text>in paragraph (3)(D), by striking <quote>the Committee on Education and Labor</quote> and inserting <quote>the Committee on Education and the Workforce</quote>;</text> </subparagraph></paragraph><paragraph id="id91EDB56B8E26423C823E759F369F59E3"><enum>(2)</enum><text>in subsection (b)(1)(A)(ii), by striking <quote>section 32 of the Agricultural Adjustment Act (7 U.S.C. 601 et seq.)</quote> and inserting <quote>section 32 of the Act of August 24, 1935 (7 U.S.C. 612c)</quote>;</text> </paragraph><paragraph id="idF7D0C99EC6904EDD8FC6151EA022711D"><enum>(3)</enum><text>in subsection (e)(1)(D)(iii), by striking subclause (II) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idFB5267DD91A049C3B3571714477C8EB5" style="OLC"> <subclause id="id15450FA7138F4344BD5C2EF149609AF2"><enum>(II)</enum><text>the program established under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b));</text> </subclause><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="idD84266A33F4B44C5B5C3FD95E97F824E"><enum>(4)</enum><text>in subsection (k), by striking <quote>the Committee on Education and Labor</quote> and inserting <quote>the Committee on Education and the Workforce</quote>.</text> </paragraph></section></subtitle><subtitle id="id6F130EB6871B48169D6FF1676F6F7395"><enum>C</enum><header>Miscellaneous</header> <section id="H318EC9766D164C8AAB17004039E8F272"><enum>4201.</enum><header>Purchase of fresh fruits and vegetables for distribution to schools and service institutions</header><text display-inline="no-display-inline">Section 10603(b) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 612c–4(b)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="H540336C22BC44D82BC9135241402E48D"><enum>4202.</enum><header>Seniors farmers' market nutrition program</header><text display-inline="no-display-inline">Section 4402(a) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3007(a)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="HAEA57D1500C54E37A9001269CC434BD"><enum>4203.</enum><header>Nutrition information and awareness pilot program</header><text display-inline="no-display-inline">Section 4403 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3171 note; Public Law 107–171) is repealed.</text> </section><section commented="no" id="ID9607a752c4c74e07bf9472940d6e3228"><enum>4204.</enum><header>Whole grain products</header><text display-inline="no-display-inline">Section 4305 of the Food, Conservation, and Energy Act of 2008 (42 U.S.C. 1755a) is amended—</text> <paragraph commented="no" id="idC73EAD19915942F39A1D77A106D1874A"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), by striking <quote>2005</quote> and inserting <quote>2010</quote>;</text> </paragraph><paragraph commented="no" id="idD9D5C26D1132401FB1557F07807290DB"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (d), by striking <quote>2011</quote> and inserting <quote>2015</quote>;</text> </paragraph><paragraph commented="no" id="id9ABBDAEC38AB46FFBB43EFB1BC1A7A8A"><enum>(3)</enum><text>in subsection (e), by striking <quote>Labor of the House of Representative</quote> and inserting <quote>the Workforce of the House of Representatives</quote>; and</text> </paragraph><paragraph commented="no" id="id9C0E47E478C14CE9B8573DA78CF7947B"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idFBD2A57B64F8445E89B80E5445979167" style="OLC"> <subsection commented="no" id="ID3306392c99d54a6195f8b54b14c38bc5"><enum>(f)</enum><header>Funding</header> <paragraph commented="no" id="id8E5480D360E240838E7F0541BDDDE629"><enum>(1)</enum><header>In general</header><text>On October 1, 2013, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section $10,000,000 for the period of fiscal years 2014 through 2015.</text> </paragraph><paragraph commented="no" id="IDd8aa35efdb094062a3fa3b7e65a3c334"><enum>(2)</enum><header>Receipt and acceptance</header><text>The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under paragraph (1), without further appropriation.</text> </paragraph><paragraph commented="no" id="ID8953b55476c146e9a681a78b2151141c"><enum>(3)</enum><header>Maintenance of funding</header><text>The funding provided under paragraph (1) shall supplement (and not supplant) other Federal funding (including funds made available under section 32 of the Act of August 24, 1935 (7 U.S.C. 612c)) for programs carried out under—</text> <subparagraph commented="no" id="ID054a36ba543546438e2ea1147c627439"><enum>(A)</enum><text>the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.), except for section 19 of that Act (42 U.S.C. 1769a);</text> </subparagraph><subparagraph commented="no" id="IDb85a485ace144c50846cb1c40c310c12"><enum>(B)</enum><text>the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et seq.); and</text> </subparagraph><subparagraph commented="no" id="ID8b03e50fb008440f80f0533270d3c986"><enum>(C)</enum><text>section 27 of the Food and Nutrition Act of 2008 (7 U.S.C. 2036).</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="idfe26980244524ff2989814cf1cdb8a6d"><enum>4205.</enum><header>Hunger-free communities</header><text display-inline="no-display-inline">Section 4405 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7517) is amended—</text> <paragraph id="id3acdf9ec154b48a3a08d7fe3a7c6cc57"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="id6d26ac17d5ee4275b33f51cb153083d8"><enum>(A)</enum><text>by striking paragraph (1) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idA3EAFEAC8565465FBB19F10A18070118" style="OLC"> <paragraph id="id207DDA74E7CF4435B7D355E7DFDBF530"><enum>(1)</enum><header>Eligible entity</header> <subparagraph id="idA8022D7112E34625901C0AAC59099582"><enum>(A)</enum><header>Collaborative grants</header><text>In subsection (b), the term <term>eligible entity</term> means a public food program service provider or nonprofit organization, including an emergency feeding organization, that has collaborated or will collaborate with 1 or more local partner organizations to achieve at least 1 hunger-free communities goal.</text> </subparagraph><subparagraph id="idC569C560DDA44B1F8B20F365791710F5"><enum>(B)</enum><header>Incentive grants</header><text>In subsection (c), the term <term>eligible entity</term> means a nonprofit organization (including an emergency feeding organization), an agricultural cooperative, producer network or association, community health organization, public benefit corporation, economic development corporation, farmers’ market, community-supported agriculture program, buying club, supplemental nutrition assistance program retail food store, a State, local, or tribal agency, and any other entity the Secretary designates.</text> </subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph><subparagraph id="id2b794f66d78c44e590c9dee841a5ea38"><enum>(B)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id01ed86c252544de2a904dce3dcdd2c04" style="OLC"> <paragraph id="id2fdf892808174ecfb0ee23000d04cbcd"><enum>(4)</enum><header>Supplemental nutrition assistance program</header><text>The term <term>supplemental nutrition assistance program</term> means the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).</text> </paragraph><paragraph id="iddfd2a3972c2f4360bb492f8fec6dc8d6"><enum>(5)</enum><header>Underserved community</header><text>The term <term>underserved community</term> has the meaning given the term in section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034).</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="id5293c752a0bb491ead66baa51ff58a5a"><enum>(2)</enum><text>in subsection (b)(1)(A), by striking <quote>not more than 50 percent of any funds made available under subsection (e)</quote> and inserting <quote>funds made available under subsection (d)(1)</quote>; and</text> </paragraph><paragraph id="id707a737b776f485d8e59e546ac5940e0"><enum>(3)</enum><text>by striking subsections (c), (d), and (e) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id650706b33e004295adcdc8d045c4e41a" style="OLC"> <subsection id="idbf7c2d8190ee4754b07e9f398bac9289"><enum>(c)</enum><header>Hunger-free communities incentive grants</header> <paragraph id="id276d20a4e42d4c36ba62f56c2a6df956"><enum>(1)</enum><header>Authorization</header> <subparagraph id="id824da94c840443d393ec8493de76aa44"><enum>(A)</enum><header>In general</header><text>In each of the years specified in subsection (d), the Secretary shall make grants to eligible entities in accordance with paragraph (2).</text> </subparagraph><subparagraph id="idc6cc90716ae44c8cb127be8230d2fd1f"><enum>(B)</enum><header>Federal share</header><text>The Federal share of the cost of carrying out an activity under this subsection shall not exceed 50 percent of the total cost of the activity.</text> </subparagraph><subparagraph id="id8f29e330a2294197bd971b33e42c3e96"><enum>(C)</enum><header>Non-Federal share</header> <clause id="id63A15DD7B0324E96A444B39BF028C5DA"><enum>(i)</enum><header>In general</header><text>The non-Federal share of the cost of an activity under this subsection may be provided—</text> <subclause id="idaa16339f26664e09be0bf1bc7e0bcc7f"><enum>(I)</enum><text>in cash or in-kind contributions as determined by the Secretary, including facilities, equipment, or services; and</text> </subclause><subclause id="id774f739b6c024d8a9875ee2615e8674f"><enum>(II)</enum><text>by a State or local government or a private source.</text> </subclause></clause><clause id="idc1415882ff2240d1be359aa4777818c4"><enum>(ii)</enum><header>Limitation</header><text>In the case of a for-profit entity, the non-Federal share described in clause (i) shall not include services of an employee, including salaries paid or expenses covered by the employer.</text> </clause></subparagraph></paragraph><paragraph id="id29f5a41641724f9db6a014b229ad46b2"><enum>(2)</enum><header>Criteria</header> <subparagraph id="id85df61ac2c4b49aca7fd730ff05c1589"><enum>(A)</enum><header>In general</header><text>For purposes of this subsection, an eligible entity is a governmental agency or nonprofit organization that—</text> <clause id="id678e77d1925449c7b320710d2515b119"><enum>(i)</enum><text>meets the application criteria set forth by the Secretary; and</text> </clause><clause id="idc6928e92639f43cf8f324607df67104f"><enum>(ii)</enum><text>proposes a project that, at a minimum—</text> <subclause id="idd1ee531c6bd648ee929cd90d5bb391ea"><enum>(I)</enum><text>has the support of the State agency;</text> </subclause><subclause id="ida931d9f50dc14b4e801af1ce1d67aa85"><enum>(II)</enum><text>would increase the purchase of fruits and vegetables by low-income consumers participating in the supplemental nutrition assistance program by providing incentives at the point of purchase;</text> </subclause><subclause id="id20d4631dbc9f41bdb05ac09e2d97c641"><enum>(III)</enum><text>agrees to participate in the evaluation described in paragraph (4);</text> </subclause><subclause id="id988e569a56a844aaa463924214db985b"><enum>(IV)</enum><text>ensures that the same terms and conditions apply to purchases made by individuals with benefits issued under this Act and incentives provided for in this subsection as apply to purchases made by individuals who are not members of households receiving benefits, such as provided for in section 278.2(b) of title 7, Code of Federal Regulations (or a successor regulation); and</text> </subclause><subclause id="id8b169c4780754ceabb891d0f9c27b4be"><enum>(V)</enum><text>includes effective and efficient technologies for benefit redemption systems that may be replicated in other for States and communities.</text> </subclause></clause></subparagraph><subparagraph id="id36dc7a5f3ade42b18f4336958a443681"><enum>(B)</enum><header>Priority</header><text>In awarding grants under this section, the Secretary shall give priority to projects that—</text> <clause id="id5db93c0e47c548d1b7cf93516a57f54f"><enum>(i)</enum><text>maximize the share of funds used for direct incentives to participants;</text> </clause><clause id="id3567137d1b6a417e84128b8ba1b2bc6a"><enum>(ii)</enum><text>use direct-to-consumer sales marketing;</text> </clause><clause id="ided20735aa32f44ca965701fe07799b21"><enum>(iii)</enum><text>demonstrate a track record of designing and implementing successful nutrition incentive programs that connect low-income consumers and agricultural producers;</text> </clause><clause id="id445e52b67a8548599f277ccd9d3ffd07"><enum>(iv)</enum><text>provide locally or regionally produced fruits and vegetables;</text> </clause><clause id="idfaf00dbc39004f058d9347e3a18aa1f3"><enum>(v)</enum><text>are located in underserved communities; or</text> </clause><clause id="idf87f82ada0dc43a8886f4633344558df"><enum>(vi)</enum><text>address other criteria as established by the Secretary.</text> </clause></subparagraph></paragraph><paragraph id="id2e52427ff7e9462b957c13dc30923e18"><enum>(3)</enum><header>Applicability</header> <subparagraph id="id682dc615b955477cb47eaf6c7588f3ab"><enum>(A)</enum><header>In general</header><text>The value of any benefit provided to a participant in any activity funded under this subsection shall not be considered income or resources for any purpose under any Federal, State, or local law.</text> </subparagraph><subparagraph id="ida457a74e63ad4313957933b0db954007"><enum>(B)</enum><header>Prohibition on collection of sales taxes</header><text>Each State shall ensure that no State or local tax is collected on a purchase of food under this subsection.</text> </subparagraph><subparagraph id="id2471fc889ab043bda9ad758bb9147980"><enum>(C)</enum><header>No limitation on benefits</header><text>A grant made available under this subsection shall not be used to carry out any project that limits the use of benefits under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) or any other Federal nutrition law.</text> </subparagraph><subparagraph id="idde4af7ca1499425ca3a8d17ad0405fb6"><enum>(D)</enum><header>Household allotment</header><text>Assistance provided under this subsection to households receiving benefits under the supplemental nutrition assistance program shall not—</text> <clause id="idD744B316C73F4FFBAA7307329762516C"><enum>(i)</enum><text>be considered part of the supplemental nutrition assistance program benefits of the household; or</text> </clause><clause id="idDDF2AB01C7174A57899AC298CABA7E6B"><enum>(ii)</enum><text>be used in the collection or disposition of claims under section 13 of the Food and Nutrition Act of 2008 (7 U.S.C. 2022).</text> </clause></subparagraph></paragraph><paragraph id="id05af655e7fb34c83a430b43a9ed4f78f"><enum>(4)</enum><header>Evaluation</header> <subparagraph id="id4ff9c8afc607451e8f6713601e2b7f30"><enum>(A)</enum><header>Independent evaluation</header><text>The Secretary shall provide for an independent evaluation of projects selected under this subsection that measures the impact of each project on—</text> <clause id="ida7d6b380c13b4e9ea30d2d83555956fb"><enum>(i)</enum><text>improving the nutrition and health status of participating households receiving incentives under this subsection; and</text> </clause><clause id="idd379724b3f65481e93017701178fc2b0"><enum>(ii)</enum><text>increasing fruit and vegetable purchases in participating households.</text> </clause></subparagraph><subparagraph id="idd78c57d4ffe44f9b973cabf54c4e2b36"><enum>(B)</enum><header>Requirement</header><text>The independent evaluation under subparagraph (A) shall use rigorous methodologies capable of producing scientifically valid information regarding the effectiveness of a project.</text> </subparagraph><subparagraph id="iddf198e32a8e141edb94758255f4b66d5"><enum>(C)</enum><header>Costs</header><text>The Secretary may use funds not to exceed 10 percent of the funding provided to carry out this section to pay costs associated with administering, monitoring, and evaluating each project.</text> </subparagraph></paragraph></subsection><subsection id="id6EBCF2E8F94347CEA9D90587ED03E741"><enum>(d)</enum><header>Funding</header> <paragraph id="id00FDEE2DC3844585B8D99C4CB37D4F6F"><enum>(1)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There is authorized to be appropriated to carry out subsection (b) $5,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><paragraph id="idCFB4E23FE94C4802BC653B752C154AAF"><enum>(2)</enum><header>Mandatory Funding</header><text display-inline="yes-display-inline">Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out subsection (c)—</text> <subparagraph id="id5429D1CB1A5049DD99919A68272942A4"><enum>(A)</enum><text display-inline="yes-display-inline">$15,000,000 for fiscal year 2013;</text> </subparagraph><subparagraph id="id300FFCFAF01345AB856672B34B6747EE"><enum>(B)</enum><text display-inline="yes-display-inline">$20,000,000 for each of fiscal years 2014 through 2016; and</text> </subparagraph><subparagraph id="id29F6503178B14B16AA92AEE3152EA386"><enum>(C)</enum><text display-inline="yes-display-inline">$25,000,000 for fiscal year 2017.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="id6512f847d9a547bb8b3f93de217ebf21"><enum>4206.</enum><header>Healthy Food Financing Initiative</header> <subsection id="id4fde00bc90c34c9a81fde490ca33f4ce"><enum>(a)</enum><header>In general</header><text>Subtitle D of title II of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idEDB33109627544D7B5D5F716346F3AA6" style="OLC"> <section id="idb3b84a8839ac4c2db977fc42033d3ee9"><enum>242.</enum><header>Healthy Food Financing Initiative</header> <subsection id="idcab8e5c8af9742e9b9494a0db979c00d"><enum>(a)</enum><header>Purpose</header><text>The purpose of this section is to enhance the authorities of the Secretary to support efforts to provide access to healthy food by establishing an initiative to improve access to healthy foods in underserved areas, to create and preserve quality jobs, and to revitalize low-income communities by providing loans and grants to eligible fresh, healthy food retailers to overcome the higher costs and initial barriers to entry in underserved areas.</text> </subsection><subsection id="ide3f0aea570ab43758f2a11a689f80c9f"><enum>(b)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="id8981985238b84a76b120d140e74bae10"><enum>(1)</enum><header>Community development financial institution</header><text>The term <term>community development financial institution</term> has the meaning given the term in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702).</text> </paragraph><paragraph id="id740e0ab7627d467cbb6f303f957e2665"><enum>(2)</enum><header>Initiative</header><text>The term <term>Initiative</term> means the Healthy Food Financing Initiative established under subsection (c)(1).</text> </paragraph><paragraph id="id89b359e3883e4d8eb7916189504862df"><enum>(3)</enum><header>National fund manager</header><text>The term <term>national fund manager</term> means a community development financial institution that is—</text> <subparagraph id="id8679E68328354300B18EA5A98A879386"><enum>(A)</enum><text>in existence on the date of enactment of this section; and</text> </subparagraph><subparagraph id="id2A1F77CBEA4B4991A2D893B7115E8710"><enum>(B)</enum><text>certified by the Community Development Financial Institution Fund of the Department of Treasury to manage the Initiative for purposes of—</text> <clause id="idce61424d801940e0a33b0bcd4ac1e692"><enum>(i)</enum><text>raising private capital;</text> </clause><clause id="idfa3fe77216464e6f8ed2db44fd7955bf"><enum>(ii)</enum><text>providing financial and technical assistance to partnerships; and</text> </clause><clause id="idc766c70cd4934a8487352938624d2889"><enum>(iii)</enum><text>funding eligible projects to attract fresh, healthy food retailers to underserved areas, in accordance with this section.</text> </clause></subparagraph></paragraph><paragraph id="id25c8c6abf6e048a18593ad675fdb3ed9"><enum>(4)</enum><header>Partnership</header><text>The term <term>partnership</term> means a regional, State, or local public-private partnership that—</text> <subparagraph id="id49feebc2ed2f4bd0b4f245a383e39fff"><enum>(A)</enum><text>is organized to improve access to fresh, healthy foods;</text> </subparagraph><subparagraph id="id7eccf09321f84b7dbdfd5850f947d388"><enum>(B)</enum><text>provides financial and technical assistance to eligible projects; and</text> </subparagraph><subparagraph id="id11f91dbef968457a9cc0d220205080a6"><enum>(C)</enum><text>meets such other criteria as the Secretary may establish.</text> </subparagraph></paragraph><paragraph id="id190775ffe6c54ebca4ad957e2853a1e0"><enum>(5)</enum><header>Perishable food</header><text>The term <term>perishable food</term> means a staple food that is fresh, refrigerated, or frozen.</text> </paragraph><paragraph id="id52f3c1d90a2e4dfdbe2af1c36a8fb40c"><enum>(6)</enum><header>Quality job</header><text>The term <term>quality job</term> means a job that provides wages and other benefits comparable to, or better than, similar positions in existing businesses of similar size in similar local economies.</text> </paragraph><paragraph id="idae1a5375175f48bdb267946c29449cac"><enum>(7)</enum><header>Staple food</header> <subparagraph id="id63619A376DEF4E008297C56F2FBF6F53"><enum>(A)</enum><header>In general</header><text>The term <term>staple food</term> means food that is a basic dietary item.</text> </subparagraph><subparagraph id="id3445AFB1EFC14A15A596C3E0AEAF67C8"><enum>(B)</enum><header>Inclusions</header><text>The term <term>staple food</term> includes—</text> <clause id="idCF2EE52CE27B4B839E9D485CC007E654"><enum>(i)</enum><text>bread;</text> </clause><clause id="idB2254668C0024011B710E1AB4C7679AB"><enum>(ii)</enum><text>flour;</text> </clause><clause id="idCBA36205722C4171A5DD66110E4CCE93"><enum>(iii)</enum><text>fruits;</text> </clause><clause id="id33A9D523361D47768521578F79B76912"><enum>(iv)</enum><text>vegetables; and</text> </clause><clause id="idCF57A989447944EFBDE0152885913D59"><enum>(v)</enum><text>meat.</text> </clause></subparagraph></paragraph></subsection><subsection id="id3085a948196542a4a5a20d3041e60cc7"><enum>(c)</enum><header>Initiative</header> <paragraph id="idF2FC8B86F1A54F1385A2A164BC8DA312"><enum>(1)</enum><header>Establishment</header><text>The Secretary shall establish an initiative to achieve the purpose described in subsection (a) in accordance with this subsection.</text> </paragraph><paragraph id="id95e1f7b5628a48038584abbf66b94647"><enum>(2)</enum><header>Implementation</header> <subparagraph id="id93c5fcd96eb24417acb77d04aa1add56"><enum>(A)</enum><header>In general</header> <clause id="id8741caf0100b4050b87f81ebb7e3900e"><enum>(i)</enum><header>In general</header><text>In carrying out the Initiative, the Secretary shall provide funding to entities with eligible projects, as described in subparagraph (B), subject to the priorities described in subparagraph (C).</text> </clause><clause id="idd3acc4fdce49400ba9f0c7003fefcef2"><enum>(ii)</enum><header>Use of funds</header><text>Funds provided to an entity pursuant to clause (i) shall be used—</text> <subclause id="id1de1be921f8e4ce58163d79a0fc480e9"><enum>(I)</enum><text>to create revolving loan pools of capital or other products to provide loans to finance eligible projects or partnerships;</text> </subclause><subclause id="idca64f425507c4e18b9f7008d4e26c37f"><enum>(II)</enum><text>to provide grants for eligible projects or partnerships;</text> </subclause><subclause id="id91aefea57d864ce8aee117790857344f"><enum>(III)</enum><text>to provide technical assistance to funded projects and entities seeking Initiative funding; and</text> </subclause><subclause id="id601f996199db473eab2cceaa2e4e93f5"><enum>(IV)</enum><text>to cover administrative expenses of the national fund manager in an amount not to exceed 10 percent of the Federal funds provided.</text> </subclause></clause></subparagraph><subparagraph id="id331dcf57da624453a7389671790159b2"><enum>(B)</enum><header>Eligible projects</header><text>Subject to the approval of the Secretary, the national fund manager shall establish eligibility criteria for projects under the Initiative, which shall include the existence or planned execution of agreements—</text> <clause id="id51aef4b1169b479d9b1cfdf554b993d7"><enum>(i)</enum><text>to expand or preserve the availability of staple foods in underserved areas with moderate- and low-income populations by maintaining or increasing the number of retail outlets that offer an assortment of perishable food and staple food items, as determined by the Secretary, in those areas; and</text> </clause><clause id="id18b1837bc4e445a0b508eb35348a3be4"><enum>(ii)</enum><text>to accept benefits under the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).</text> </clause></subparagraph><subparagraph id="id2b99c8534bc74760a92f3ff7d23d02c3"><enum>(C)</enum><header>Priorities</header><text>In carrying out the Initiative, priority shall be given to projects that—</text> <clause id="id50ec8181c70546418daa7ff43db276e3"><enum>(i)</enum><text>are located in severely distressed low-income communities, as defined by the Community Development Financial Institutions Fund of the Department of Treasury; and</text> </clause><clause id="id452c9ee1ca6643eab7afca11ef3f9d79"><enum>(ii)</enum><text>include 1 or more of the following characteristics:</text> <subclause id="ide4083c399b814ca9b5ba1788873b8dff"><enum>(I)</enum><text>The project will create or retain quality jobs for low-income residents in the community.</text> </subclause><subclause id="id58ca4df3830245fbaa7e33d0ef7bc97f"><enum>(II)</enum><text>The project supports regional food systems and locally grown foods, to the maximum extent practicable.</text> </subclause><subclause id="ide1f5bb0fcd6c4f7b8176aeefaabc9d23"><enum>(III)</enum><text>In areas served by public transit, the project is accessible by public transit.</text> </subclause><subclause id="idd2a5d28ee92b459380c4cf98cd826e12"><enum>(IV)</enum><text>The project involves women- or minority-owned businesses.</text> </subclause><subclause id="id3de26e0f80df41df88a8428ea19c3378"><enum>(V)</enum><text>The project receives funding from other sources, including other Federal agencies.</text> </subclause><subclause id="ide7910a1eb2d14e80ac35547c70f225eb"><enum>(VI)</enum><text>The project otherwise advances the purpose of this section, as determined by the Secretary.</text> </subclause></clause></subparagraph></paragraph></subsection><subsection id="idf88051f149944464ac326b3bcaf00b19"><enum>(d)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to the Secretary to carry out this section $125,000,000, to remain available until expended.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id61E294FE48204238933F4FC866672E03"><enum>(b)</enum><header>Conforming amendment</header><text>Section 296(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) (as amended by section 1609(d)) is amended—</text> <paragraph id="id28957070CB2F40A3BD476BF2236B0820"><enum>(1)</enum><text>in paragraph (7), by striking <quote>or</quote> at the end;</text> </paragraph><paragraph id="id153FAEC96C444AE6AB7C5847F0FC6A63"><enum>(2)</enum><text>in paragraph (8), by striking the period at the end and inserting <quote>; or</quote>; and</text> </paragraph><paragraph id="id9DB5510D94A24FB3A41A9661D8EAB85C"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id17F25B4106654507B3CACB7421B97E7B" style="OLC"> <paragraph id="id0FBF676D1A574ADCA93BF48248E2ACF4"><enum>(9)</enum><text>the authority of the Secretary to establish and carry out the Health Food Financing Initiative under section 242.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="idf806a31052d7432e8e6d90a93d49dca1"><enum>4207.</enum><header>Pulse crop products</header> <subsection id="id4f59711d2a954475a91d77b7592914b6"><enum>(a)</enum><header>Purpose</header><text display-inline="yes-display-inline">The purpose of this section is to encourage greater awareness and interest in the number and variety of pulse crop products available to schoolchildren, as recommended by the most recent Dietary Guidelines for Americans published under section 301 of the National Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 5341).</text> </subsection><subsection id="ida9a6debc57fc4c319c3c709eeed614ec"><enum>(b)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="id7AEE6635B5294FC99817F7BFE70202A3"><enum>(1)</enum><header>Eligible pulse crop</header><text>The term <term>eligible pulse crop</term> means dry beans, dry peas, lentils, and chickpeas.</text> </paragraph><paragraph id="idA8B8DB3DE2FC442F85A74F93789C0149"><enum>(2)</enum><header>Pulse crop product</header><text>The term <term>pulse crop product</term> means a food product derived in whole or in part from an eligible pulse crop.</text> </paragraph></subsection><subsection id="ide1581984ecca408e9ba28f8fc8fee5ec"><enum>(c)</enum><header>Purchase of pulse crops and pulse crop products</header><text>In addition to the commodities delivered under section 6 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1755), the Secretary shall purchase eligible pulse crops and pulse crop products for use in—</text> <paragraph id="idc72ac92b57dc4ee4a92ee5c846b43250"><enum>(1)</enum><text>the school lunch program established under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.); and</text> </paragraph><paragraph id="id6b7c7a5d80cb405399754fe413a33a6b"><enum>(2)</enum><text>the school breakfast program established by section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).</text> </paragraph></subsection><subsection id="ideb7d2c0286414bd295af2cd4390af378"><enum>(d)</enum><header>Evaluation</header><text>Not later than September 30, 2016, the Secretary shall conduct an evaluation of the activities conducted under subsection (c), including—</text> <paragraph id="ida95089424ab4437a8653515460695d75"><enum>(1)</enum><text>an evaluation of whether children participating in the school lunch and breakfast programs described in subsection (c) increased overall consumption of eligible pulse crops as a result of the activities;</text> </paragraph><paragraph id="id27449f5666664a809b409034f2bb12af"><enum>(2)</enum><text>an evaluation of which eligible pulse crops and pulse crop products are most acceptable for use in the school lunch and breakfast programs;</text> </paragraph><paragraph id="id33bd8fcbcb1b45d98af91b1893a9d4db"><enum>(3)</enum><text>any recommendations of the Secretary regarding the integration of the use of pulse crop products in carrying out the school lunch and breakfast programs;</text> </paragraph><paragraph id="id0BAFD1106AEC4D37BE22EA90413E6308"><enum>(4)</enum><text>an evaluation of any change in the nutrient composition in the school lunch and breakfast programs due to the activities; and</text> </paragraph><paragraph id="id8459e7f9aa3642418f67ee31ef1ea88b"><enum>(5)</enum><text>an evaluation of any other outcomes determined to be appropriate by the Secretary.</text> </paragraph></subsection><subsection id="idcd80bc7090a846148e60c5d691e914cc"><enum>(e)</enum><header>Report</header><text>As soon as practicable after the completion of the evaluation under subsection (d), the Secretary shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Education and the Workforce of the House of Representative a report describing the results of the evaluation.</text> </subsection><subsection id="id4E5B944F1F6046B5BA48DE15B7711F2D"><enum>(f)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $10,000,000, to remain available until expended.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id93374215da2546b898450a5bf319d6e6" section-type="subsequent-section"><enum>4208.</enum><header display-inline="yes-display-inline">Dietary Guidelines for Americans</header><text display-inline="no-display-inline">Section 301(a) of the National Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 5341(a)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idD9B0666824374A0DBB03914889F41C6B" style="OLC"> <paragraph commented="no" display-inline="no-display-inline" id="idCAF24895D19B48AAB31D50AFF1A257E6"><enum>(3)</enum><header display-inline="yes-display-inline">Pregnant women and young children</header><text display-inline="yes-display-inline">Not later than the 2020 report and in each report thereafter, the Secretaries shall include national nutritional and dietary information and guidelines for pregnant women and children from birth until the age of 2.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id4F4F40164E3046F9A44B38E77B8B2352"><enum>4209.</enum><header>Purchases of locally produced foods</header><text display-inline="no-display-inline">Section 9(j) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(j)) is amended—</text> <paragraph id="id0CB6DAEFBCF946889D74A80015F05201"><enum>(1)</enum><text>by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively, and indenting the subparagraphs appropriately;</text> </paragraph><paragraph id="idA2B076FA1E1E4CD39125997AC6E8295A"><enum>(2)</enum><text>by striking <quote>The Secretary</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id89CA36534CC346859827834896686033" style="OLC"> <paragraph id="idDC27C12CD92F45D8AFE3D3D14BCAB777"><enum>(1)</enum><header>In general</header><text>The Secretary</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="idDB34C53D603F41E5B80561233A60D2C6"><enum>(3)</enum><text>in paragraph (1) (as so redesignated)—</text> <subparagraph id="id67B7EB35FD0E4DA3B0AE47679099D365"><enum>(A)</enum><text>in subparagraph (B)—</text> <clause id="id820D18CD00F54608BCEF493F8C3D2E44"><enum>(i)</enum><text>by striking <quote>paragraph (1) of the policy described in that paragraph and paragraph (3)</quote> and inserting <quote>subparagraph (A) of the policy described in that subparagraph and subparagraph (C)</quote>; and</text> </clause><clause id="idAAEC51A0C502488BBD80DE908C9D69BF"><enum>(ii)</enum><text>by striking <quote>and</quote> at the end;</text> </clause></subparagraph><subparagraph id="id08A93195D47C4164A6724B42B17BB3E3"><enum>(B)</enum><text>in subparagraph (C), by striking the period at the end and inserting <quote>; and</quote>; and</text> </subparagraph><subparagraph id="id1B007916529A4A5A824C464AF7074819"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id2FEAD5B740434F0182E5FD6787BD84EA" style="OLC"> <subparagraph id="idb7394a5372f54b33b0d50217955bea53"><enum>(D)</enum><text>not later than 1 year after the date of enactment of this subparagraph, in accordance with paragraphs (2) and (3), conduct not fewer than 5 demonstration projects through school food authorities receiving funds under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) to facilitate the purchase of unprocessed and minimally processed locally grown and locally raised agricultural products.</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="idD22F95C843E3444F9033BCC43A84703B"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id4D426CE843CC45DD80BE9A367859D6DA" style="OLC"> <paragraph id="id672DAB34C5654FC39FEC9662231CE707"><enum>(2)</enum><header>Selection</header><text>In conducting demonstration projects under paragraph (1)(D), the Secretary shall ensure that at least 1 project is located in a State in each of—</text> <subparagraph id="idDFF76D0C754F4F998D8055BBD6C398E8"><enum>(A)</enum><text>the Pacific Northwest Region;</text> </subparagraph><subparagraph id="id038162E28F7248CBB40DEFFAB6AA4705"><enum>(B)</enum><text>the Northeast Region;</text> </subparagraph><subparagraph id="id5258314BE664491FAF40FA2B85DBF323"><enum>(C)</enum><text>the Western Region;</text> </subparagraph><subparagraph id="idDC36E9C8C18740C9970D518ECBDD11CA"><enum>(D)</enum><text>the Midwest Region; and</text> </subparagraph><subparagraph id="id19B4A8D8462747A6865D0A50E89B9693"><enum>(E)</enum><text>the Southern Region.</text> </subparagraph></paragraph><paragraph id="id95f0d882f1244b6897709acf08ff694a"><enum>(3)</enum><header>Priority</header><text>In selecting States for participation in the demonstration projects under paragraph (2), the Secretary shall prioritize applications based on—</text> <subparagraph id="id220102ef75334cbba0bde4cad1bc675f"><enum>(A)</enum><text>the quantity and variety of growers of local fruits and vegetables in the State;</text> </subparagraph><subparagraph id="idc9d8cce06e024c41b682a2c496a449ef"><enum>(B)</enum><text>the demonstrated commitment of the State to farm-to-school efforts, as evidenced by prior efforts to increase and promote farm-to- school programs in the State; and</text> </subparagraph><subparagraph id="id78b2bd1994be46b78197b715df5415cb"><enum>(C)</enum><text>whether the State contains a sufficient quantity of school districts of varying population sizes and geographical locations.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section></subtitle><enum>V</enum><header>Credit</header> <subtitle id="id072A4E84781540BFB86F00D7FCAA87BA"><enum>A</enum><header>Farmer loans, servicing, and other assistance under the Consolidated Farm and Rural Development Act</header> <section id="id082B3D0DE98E4B299D464A8C9C4E88BE"><enum>5001.</enum><header>Farmer loans, servicing, and other assistance under the Consolidated Farm and Rural Development Act</header><text display-inline="no-display-inline">The Consolidated Farm and Rural Development Act (as amended by section 6001) is amended by inserting after section 3002 the following:</text> <quoted-block display-inline="no-display-inline" id="IDE0B1DAD4BFFD462C8AA7F9F822C6AAC5" style="OLC"> <subtitle id="ID90A0A877508B48E98EC8B59F821C5386"><enum>A</enum><header>Farmer loans, servicing, and other assistance</header> <chapter id="IDF934B5AA9F6E417CB1835764842F2BC8"><enum>1</enum><header>Farm ownership loans</header> <section id="ID7C1E508DABB64350904C0B01F2ACCCE4"><enum>3101.</enum><header>Farm ownership loans</header> <subsection id="ID85E407892A6C49C1B53ADB73FC692DA5"><enum>(a)</enum><header>In general</header><text>The Secretary may make or guarantee a farm ownership loan under this chapter to an eligible farmer.</text> </subsection><subsection id="ID996F594374EB4949A9C89767346C381A"><enum>(b)</enum><header>Eligibility</header><text>A farmer shall be eligible under subsection (a) only—</text> <paragraph id="ID6CBD7C89E3694D26A7F99A586A6EA0D4"><enum>(1)</enum><text>if the farmer, or, in the case of an entity, 1 or more individuals holding a majority interest in the farmer—</text> <subparagraph id="ID8212AEC6F1F84AACAB1CA3E0A2017112"><enum>(A)</enum><text>is a citizen of the United States; and</text> </subparagraph><subparagraph id="ID8FB2F4188C5D484392934A68A38F364D"><enum>(B)</enum><text>in the case of a direct loan, has training or farming experience that the Secretary determines is sufficient to ensure a reasonable prospect of success in the farming operation proposed by the farmer;</text> </subparagraph></paragraph><paragraph id="IDE4F0CF2EB3D14379911148ACED346F36"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDFD01783116FE4AE789287C57AF1282D9"><enum>(A)</enum><text>in the case of a farmer that is an individual, if the farmer is or proposes to become an owner and operator of a farm that is not larger than a family farm; or</text> </subparagraph><subparagraph id="ID62A4F42C95A94A11A82D08909A5E2ADB" indent="up1"><enum>(B)</enum><text>in the case of a lessee-operator of a farm located in the State of Hawaii, if the Secretary determines that—</text> <clause id="ID156746A08AB246C78B2B1BB68832420D"><enum>(i)</enum><text>the farm is not larger than a family farm;</text> </clause><clause id="IDECD5D509AFA2439897828819EEF72020"><enum>(ii)</enum><text>the farm cannot be acquired in fee simple by the lessee-operator;</text> </clause><clause id="IDA23A7E8C339B476D84CF2C072ADA6381"><enum>(iii)</enum><text>adequate security is provided for the loan with respect to the farm for which the lessee-operator applies under this chapter; and</text> </clause><clause id="ID28172CEDDE6340C5BA28772C47DED972"><enum>(iv)</enum><text>there is a reasonable probability of accomplishing the objectives and repayment of the loan;</text> </clause></subparagraph></paragraph><paragraph id="IDC65973A0EEFD45249B8A4BBFA1DF7A98"><enum>(3)</enum><text>in the case of a farmer that is a cooperative, corporation, partnership, trust, limited liability company, joint operation, or such other legal entity as the Secretary determines to be appropriate, with respect to the entity and each farm in which the entity has an ownership or operator interest—</text> <subparagraph id="ID4CC0E5C217F44D9F848DCB71A7BB120A"><enum>(A)</enum><text>if—</text> <clause id="id1AD020413A92498EB14806D96FE356FD"><enum>(i)</enum><text>a majority interest is held by individuals who are related by blood or marriage, as defined by the Secretary;</text> </clause><clause id="id5435CADA421D4917B0D8A90D296BF9A5"><enum>(ii)</enum><text>all of the individuals are or propose to become owners or operators of a farm that is not larger than a family farm; and</text> </clause><clause id="idFC37DA956C954388B4556134A59332BD"><enum>(iii)</enum><text>at least 1 of the individuals is or proposes to become an operator of the farm; or</text> </clause></subparagraph><subparagraph id="IDEF4652EDFD494140B6A931A3D8C04103"><enum>(B)</enum><text>if—</text> <clause id="id38AFB7268BEF461988C414A72F4BBE9D"><enum>(i)</enum><text>the entire interest is held by individuals who are related by blood or marriage, as defined by the Secretary;</text> </clause><clause id="id109075C0E61446DF9C03F4CCC60133EC"><enum>(ii)</enum><text>all of the individuals are or propose to become farm operators; and</text> </clause><clause id="id56C984CE86F04DB88BF911497D06AEF8"><enum>(iii)</enum><text>the ownership interest of each individual separately constitutes not larger than a family farm, even if the ownership interests of the individuals collectively constitute larger than a family farm;</text> </clause></subparagraph></paragraph><paragraph id="ida32e3752200f420395cbc2a6043f76ba"><enum>(4)</enum><text>in the case of an entity that is, or will become within a reasonable period of time, as determined by the Secretary, only the operator of a family farm, if the 1 or more individuals who are the owners of the family farm own—</text> <subparagraph id="idf1ca1eb90a64438dbd215fcdd9f5bec6"><enum>(A)</enum><text>a percentage of the family farm that exceeds 50 percent; or</text> </subparagraph><subparagraph id="id3b70e0c2e88b41468ea8eee8a4510db8"><enum>(B)</enum><text>such other percentage as the Secretary determines to be appropriate;</text> </subparagraph></paragraph><paragraph id="idc3bbe540dc0146cdb8f13864678ecc42"><enum>(5)</enum><text>in the case of an operator described in paragraph (3) that is owned, in whole or in part, by 1 or more other entities, if each of the individuals that have a direct or indirect ownership interest in such other entities also have a direct ownership interest in the entity applying as an individual; and</text> </paragraph><paragraph id="IDF5D5D9080A8449F4B855B04C1D63F7AC"><enum>(6)</enum><text>if the farmer and each individual that holds a majority interest in the farmer is unable to obtain credit elsewhere.</text> </paragraph></subsection><subsection id="IDBD13A8B3E3E44F0E9A77DD571EA72AC0"><enum>(c)</enum><header>Direct loans</header> <paragraph id="IDFF8AF7D17E064F74958DF7D869B4AAF6"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), the Secretary may make a direct loan under this chapter only to a farmer who has participated in business operations of a farm for not less than 3 years (or has other acceptable experience for a period of time determined by the Secretary) and—</text> <subparagraph id="ID193D13C0E519446B958F6052E4EA5D48"><enum>(A)</enum><text>is a qualified beginning farmer;</text> </subparagraph><subparagraph id="ID972E4C0D34E24958A7AAE82310974289"><enum>(B)</enum><text>has not received a previous direct farm ownership loan made under this chapter; or</text> </subparagraph><subparagraph id="IDCECCE9307A3A4DAA89DB249CA6159B77"><enum>(C)</enum><text>has not received a direct farm ownership loan under this chapter more than 10 years before the date on which the new loan would be made.</text> </subparagraph></paragraph><paragraph id="ID5F4176217ADE4C21859167A95A98B5E9"><enum>(2)</enum><header>Youth loans</header><text>The operation of an enterprise by a youth under section 3201(d) shall not be considered the operation of a farm for purposes of paragraph (1).</text> </paragraph></subsection></section><section id="ID8D68069248894979AE892BD6FCEA658A"><enum>3102.</enum><header>Purposes of loans</header> <subsection id="ID849B17B0F4E34D6E8E8984759E938993"><enum>(a)</enum><header>Allowed purposes</header> <paragraph id="IDE1406E093F5541E8A4AB7F76916058F9"><enum>(1)</enum><header>Direct loans</header><text>A farmer may use a direct loan made under this chapter only—</text> <subparagraph id="ID54FDB6854E4240B0A1F8144A487023F6"><enum>(A)</enum><text>to acquire or enlarge a farm;</text> </subparagraph><subparagraph id="ID7A77CB4D7AD441CBA60773A740D1F85E"><enum>(B)</enum><text>to make capital improvements to a farm;</text> </subparagraph><subparagraph id="IDE6542604B55D41D89BDF41D45E87E070"><enum>(C)</enum><text>to pay loan closing costs related to acquiring, enlarging, or improving a farm;</text> </subparagraph><subparagraph id="ID7E876D4617FD40FC880A03294C2051A2"><enum>(D)</enum><text>to pay for activities to promote soil and water conservation and protection described in section 3103 on a farm; or</text> </subparagraph><subparagraph id="ID8f288582bdac4b2da013921cfc52bde9"><enum>(E)</enum><text>to refinance a temporary bridge loan made by a commercial or cooperative lender to a farmer for the acquisition of land for a farm, if—</text> <clause id="IDd03760b3852b4d1889afab68048be025"><enum>(i)</enum><text>the Secretary approved an application for a direct farm ownership loan to the farmer for acquisition of the land; and</text> </clause><clause id="ID25307bd6e27e456babd2ba6a45f63905"><enum>(ii)</enum><text>funds for direct farm ownership loans under section 3201(a) were not available at the time at which the application was approved.</text> </clause></subparagraph></paragraph><paragraph id="ID4C558E835ED7465FB8C85171B4803221"><enum>(2)</enum><header>Guaranteed loans</header><text>A farmer may use a loan guaranteed under this chapter only—</text> <subparagraph id="ID6B38F98843C045038F38A2F10ECB3B52"><enum>(A)</enum><text>to acquire or enlarge a farm;</text> </subparagraph><subparagraph id="IDF5102157E60944CBBE533CEF24CF4F2B"><enum>(B)</enum><text>to make capital improvements to a farm;</text> </subparagraph><subparagraph id="IDE55960397B2148F3B3326E23E6780884"><enum>(C)</enum><text>to pay loan closing costs related to acquiring, enlarging, or improving a farm;</text> </subparagraph><subparagraph id="IDD7882D69E5A941AFBA7937CA496C7B7A"><enum>(D)</enum><text>to pay for activities to promote soil and water conservation and protection described in section 3103 on a farm; or</text> </subparagraph><subparagraph id="IDB716413EC1B24EE3AE210865766867E5"><enum>(E)</enum><text>to refinance indebtedness.</text> </subparagraph></paragraph></subsection><subsection id="ID08DA33AFB7B347C6B1C5B3DA629CB444"><enum>(b)</enum><header>Preferences</header><text>In making or guaranteeing a loan under this chapter for purchase of a farm, the Secretary shall give preference to a person who—</text> <paragraph id="ID9A789CBA2E0D423494E4DE1FF32ABF28"><enum>(1)</enum><text>has a dependent family;</text> </paragraph><paragraph id="ID3F62E31245124D0789EA174E9D0F5D49"><enum>(2)</enum><text>to the extent practicable, is able to make an initial down payment on the farm; or</text> </paragraph><paragraph id="ID285EFAA70CED4B19A49FB64F05F8AFDF"><enum>(3)</enum><text>is an owner of livestock or farm equipment that is necessary to successfully carry out farming operations.</text> </paragraph></subsection><subsection id="ID42D2BC51D4DF4079A88831A38ED9D795"><enum>(c)</enum><header>Hazard insurance requirement</header><text>The Secretary may not make a loan to a farmer under this chapter unless the farmer has, or agrees to obtain, hazard insurance on any real property to be acquired or improved with the loan.</text> </subsection></section><section id="IDce7e3ea430cb45ab8f3d850351832a4c"><enum>3103.</enum><header>Conservation loan and loan guarantee program</header> <subsection id="ID7e3ab130741144c4af7f56919b414afe"><enum>(a)</enum><header>In general</header><text>The Secretary may make or guarantee qualified conservation loans to eligible borrowers under this section.</text> </subsection><subsection id="IDf94cfa4a68cb4c34a88f7baf00422bd4"><enum>(b)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="IDcc710f9de39749869f1e82c0e6de87ab"><enum>(1)</enum><header>Conservation plan</header><text>The term <term>conservation plan</term> means a plan, approved by the Secretary, that, for a farming operation, identifies the conservation activities that will be addressed with loan funds provided under this section, including—</text> <subparagraph id="ID1c0ab4bebf3a4294a3d39eabd6b461b7"><enum>(A)</enum><text>the installation of conservation structures to address soil, water, and related resources;</text> </subparagraph><subparagraph id="IDbaa324cffe974d1888951d54f79f26ce"><enum>(B)</enum><text>the establishment of forest cover for sustained yield timber management, erosion control, or shelter belt purposes;</text> </subparagraph><subparagraph id="ID7ca6ce863e044ac98367d758e3591ad9"><enum>(C)</enum><text>the installation of water conservation measures;</text> </subparagraph><subparagraph id="IDffb18c3b553945719ee2baf8a937364e"><enum>(D)</enum><text>the installation of waste management systems;</text> </subparagraph><subparagraph id="IDfe4750a0a67e43efa1802ed91137a5bc"><enum>(E)</enum><text>the establishment or improvement of permanent pasture;</text> </subparagraph><subparagraph id="IDb8c06e8baa33483ab16e3319f8c0628b"><enum>(F)</enum><text>compliance with section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812); and</text> </subparagraph><subparagraph id="IDd0e76836a4214a41b88c02c4188c0ac1"><enum>(G)</enum><text>other purposes consistent with the plan, including the adoption of any other emerging or existing conservation practices, techniques, or technologies approved by the Secretary.</text> </subparagraph></paragraph><paragraph id="ID856f3c15bd5b491cb7d957cb5e150a4a"><enum>(2)</enum><header>Qualified conservation loan</header><text>The term <term>qualified conservation loan</term> means a loan, the proceeds of which are used to cover the costs to the borrower of carrying out a qualified conservation project.</text> </paragraph><paragraph id="ID86d38ab2a124430aa32da606d6fa5cb7"><enum>(3)</enum><header>Qualified conservation project</header><text>The term <term>qualified conservation project</term> means conservation measures that address provisions of a conservation plan of the eligible borrower.</text> </paragraph></subsection><subsection id="ID50033a04d19d4b188fd210cce2f9fca6"><enum>(c)</enum><header>Eligibility</header> <paragraph id="IDe62717bcb8234689addda2045f808c44"><enum>(1)</enum><header>In general</header><text>The Secretary may make or guarantee loans to farmers.</text> </paragraph><paragraph id="ID233be6e93ae04f64924d1702dd3de06b"><enum>(2)</enum><header>Requirements</header><text>To be eligible for a loan under this section, applicants shall meet the citizenship and training and experience requirements of section 3101(b).</text> </paragraph></subsection><subsection id="ID916477c76efe4d818953317868f89072"><enum>(d)</enum><header>Priority</header><text>In making or guaranteeing loans under this section, the Secretary shall give priority to—</text> <paragraph id="ID7039c9e71051469088f767d7e8fb2eb1"><enum>(1)</enum><text>qualified beginning farmers and socially disadvantaged farmers;</text> </paragraph><paragraph id="ID3f3b19b6ea1642a3ae08d29d678b9c45"><enum>(2)</enum><text>owners or tenants who use the loans to convert to sustainable or organic agricultural production systems; and</text> </paragraph><paragraph id="ID8d0e6e8393d74ca0a2b10e0d48a35b52"><enum>(3)</enum><text>producers who use the loans to build conservation structures or establish conservation practices to comply with section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812).</text> </paragraph></subsection><subsection id="ID9a27607540ed4326be29b02219077ce8"><enum>(e)</enum><header>Limitations applicable to loan guarantees</header><text>The portion of a loan that the Secretary may guarantee under this section shall not exceed 75 percent of the principal amount of the loan.</text> </subsection><subsection id="IDf562babcea4d445a92a80c512dd3bd56"><enum>(f)</enum><header>Administrative provisions</header><text>The Secretary shall ensure, to the maximum extent practicable, that loans made or guaranteed under this section are distributed across diverse geographic regions.</text> </subsection><subsection id="ID5cbcedde3f084d9e8174ad926ac711e0"><enum>(g)</enum><header>Credit eligibility</header><text>The provisions of paragraphs (1) and (3) of section 3406(a) shall not apply to loans made or guaranteed under this section.</text> </subsection><subsection id="ID774f3ff60f214008b3154d7212ef6229"><enum>(h)</enum><header>Authorization of appropriations</header><text>For each of fiscal years 2012 through 2017, there are authorized to be appropriated to the Secretary such sums as are necessary to carry out this section.</text> </subsection></section><section id="IDD122FB2F975146EFAE1E3810A03E07E2"><enum>3104.</enum><header>Loan maximums</header> <subsection id="ID256154dcac9d4e52b6e8c6f4172ba1db"><enum>(a)</enum><header>Maximum</header> <paragraph id="idFF681FC514064CAB9D262FCB85703A22"><enum>(1)</enum><header>In general</header><text>The Secretary shall make or guarantee no loan under sections 3101, 3102, 3103, 3106, and 3107 that would cause the unpaid indebtedness under those sections of any 1 borrower to exceed the lesser of—</text> <subparagraph id="ID47b07c7eb08649b99bde6c5e8db38d02"><enum>(A)</enum><text>the value of the farm or other security, or</text> </subparagraph><subparagraph id="ID4bd951e73c334706923fdab3fa780f28"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="id024D45B758514CD39A61B1B733DF5A71"><enum>(i)</enum><text>in the case of a loan made by the Secretary, $300,000; or</text> </clause><clause id="ID66b4927fede442fea82a68be4c537d17" indent="up1"><enum>(ii)</enum><text>in the case of a loan guaranteed by the Secretary, $700,000 (as modified under paragraph (2)).</text> </clause></subparagraph></paragraph><paragraph id="idBFEB0E2D058A45AEA2DB168FE97685F5"><enum>(2)</enum><header>Modification</header><text>The amount specified in paragraph (1)(B)(ii) shall be—</text> <subparagraph id="id19D3D7BC66AB4BA69DEB0E57FDD0040D"><enum>(A)</enum><text>increased, beginning with fiscal year 2000, by the inflation percentage applicable to the fiscal year in which the loan is guaranteed; and</text> </subparagraph><subparagraph id="idB365CC4FFD284FE3B922C7C1F6C063F9"><enum>(B)</enum><text>reduced by the amount of any unpaid indebtedness of the borrower on loans under chapter 2 that are guaranteed by the Secretary.</text> </subparagraph></paragraph></subsection><subsection id="ID91447a6826ab4746a6972f2f2c5052b6"><enum>(b)</enum><header>Determination of value</header><text>In determining the value of the farm, the Secretary shall consider appraisals made by competent appraisers under rules established by the Secretary.</text> </subsection><subsection id="ID3fa5d936cc594dd69926e6656195ec2f"><enum>(c)</enum><header>Inflation percentage</header><text>For purposes of this section, the inflation percentage applicable to a fiscal year is the percentage (if any) by which—</text> <paragraph id="IDbd02bb0ecd1d4cde874b0520a80efc40"><enum>(1)</enum><text>the average of the Prices Paid By Farmers Index (as compiled by the National Agricultural Statistics Service of the Department) for the 12-month period ending on August 31 of the immediately preceding fiscal year; exceeds</text> </paragraph><paragraph id="IDb92b9c3a9d9a41929de23d459d5e151e"><enum>(2)</enum><text>the average of that index (as so defined) for the 12-month period ending on August 31, 1996.</text> </paragraph></subsection></section><section id="ID1D680211A5874575B08CEE0D76905DFC"><enum>3105.</enum><header>Repayment requirements for farm ownership loans</header> <subsection id="IDFB547D431189465CA78B326CC82E82CF"><enum>(a)</enum><header>Period for repayment</header><text>The period for repayment of a loan under this chapter shall not exceed 40 years.</text> </subsection><subsection id="IDA1C8FB7C03174680A13B1106B349000F"><enum>(b)</enum><header>Interest rates</header> <paragraph id="IDE6290B9478A14D03ACF1A64C17E8C0F5"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this title, the interest rate on a loan under this chapter shall be determined by the Secretary at a rate—</text> <subparagraph id="ID0E1778FCC0DE40B7B7A1FC5BBC9B1742"><enum>(A)</enum><text>not to exceed the sum obtained by adding—</text> <clause id="ID21FA81DB3D2240B5A7739CCF2F0CD21C"><enum>(i)</enum><text>the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturity of the loan; and</text> </clause><clause id="ID631EF4983A804293BF66B16F36B4DAC8"><enum>(ii)</enum><text>an amount not to exceed 1 percent, as determined by the Secretary; and</text> </clause></subparagraph><subparagraph id="IDA44FAF8A83FB4619AD78755BF1F33F3E"><enum>(B)</enum><text>adjusted to the nearest <fraction>1/8</fraction> of 1 percent.</text> </subparagraph></paragraph><paragraph id="ID8BA615CEE422498D8B3ED45089BC88A7"><enum>(2)</enum><header>Low income farm ownership loans</header><text>Except as provided in paragraph (3), the interest rate on a loan (other than a guaranteed loan) under section 3106 shall be determined by the Secretary at a rate that is—</text> <subparagraph id="ID1E2036500C6E42F3969653102564CD9B"><enum>(A)</enum><text>not greater than the sum obtained by adding—</text> <clause id="ID4EE2081B0A3B4548AEA18286C6DD426B"><enum>(i)</enum><text>an amount that does not exceed <fraction>1/2</fraction> of the current average market yield on outstanding marketable obligations of the United States with maturities of 5 years; and</text> </clause><clause id="ID1154CBCAB8E24087A3767581FD85022C"><enum>(ii)</enum><text>an amount not to exceed 1 percent per year, as the Secretary determines is appropriate; and</text> </clause></subparagraph><subparagraph id="IDBECED5A215E3421F9369EB82D4E4EEF8"><enum>(B)</enum><text>not less than 5 percent per year.</text> </subparagraph></paragraph><paragraph id="IDC29B462F6381430C9588C8EFB0415FA4"><enum>(3)</enum><header>Joint financing arrangement</header><text>If a direct farm ownership loan is made under this chapter as part of a joint financing arrangement and the amount of the direct farm ownership loan does not exceed 50 percent of the total principal amount financed under the arrangement, the interest rate on the direct farm ownership loan shall be at least 4 percent annually.</text> </paragraph><paragraph id="ID751B97B10A4044B6833D05C1942B35A0"><enum>(4)</enum><header>Guaranteed loans</header><text>The interest rate on a loan made under this chapter as a guaranteed loan shall be such rate as may be agreed on by the borrower and the lender, but not in excess of any rate determined by the Secretary.</text> </paragraph></subsection><subsection id="IDD45FB38BF08F4FC59276171F4BC90FFC"><enum>(c)</enum><header>Payment of charges</header><text>A borrower of a loan made or guaranteed under this chapter shall pay such fees and other charges as the Secretary may require, and prepay to the Secretary such taxes and insurance as the Secretary may require, on such terms and conditions as the Secretary may prescribe.</text> </subsection><subsection id="ID12167FA92A404CAD9C39DD776E2C35BC"><enum>(d)</enum><header>Security</header> <paragraph id="ID7BAAE610699F45539528369BF1D2C152"><enum>(1)</enum><header>In general</header><text>The Secretary shall take as security for an obligation entered into in connection with a loan, a mortgage on a farm with respect to which the loan is made or such other security as the Secretary may require.</text> </paragraph><paragraph id="ID7484A1331BDD48B0BC617EF6B6537D1B"><enum>(2)</enum><header>Liens to united states</header><text>An instrument for security under paragraph (1) may constitute a lien running to the United States notwithstanding the fact that the note for the security may be held by a lender other than the United States.</text> </paragraph><paragraph id="IDDE83B062D9DB4C7FAEC2ECA0BF9D4D4C"><enum>(3)</enum><header>Multiple loans</header><text>A borrower may use the same collateral to secure 2 or more loans made or guaranteed under this chapter, except that the outstanding amount of the loans may not exceed the total value of the collateral.</text> </paragraph></subsection><subsection id="ID4EE1A0A2CE82437B9EAEA558A6FC1D32"><enum>(e)</enum><header>Mineral rights as collateral</header> <paragraph id="ID26BF63F37C25454796E7E68C00FF9531"><enum>(1)</enum><header>In general</header><text>In the case of a farm ownership loan made after December 23, 1985, unless appraised values of the rights to oil, gas, or other minerals are specifically included as part of the appraised value of collateral securing the loan, the rights to oil, gas, or other minerals located under the property shall not be considered part of the collateral securing the loan.</text> </paragraph><paragraph id="ID5909E528375E4A44BB1BBE3AD9CB8582"><enum>(2)</enum><header>Compensatory payments</header><text>Nothing in this subsection prevents the inclusion of, as part of the collateral securing the loan, any payment or other compensation the borrower may receive for damages to the surface of the collateral real estate resulting from the exploration for or recovery of minerals.</text> </paragraph></subsection><subsection id="IDC720599B2716427087080E9643C1E0A0"><enum>(f)</enum><header>Additional collateral</header><text>The Secretary may not—</text> <paragraph id="IDBA5241FB4F2B4F358589792051482847"><enum>(1)</enum><text>require any borrower to provide additional collateral to secure a farmer program loan made or guaranteed under this subtitle, if the borrower is current in the payment of principal and interest on the loan; or</text> </paragraph><paragraph id="IDDDB1A2FF7CC84F1A91C40D17CAE16192"><enum>(2)</enum><text>bring any action to foreclose, or otherwise liquidate, the loan as a result of the failure of a borrower to provide additional collateral to secure the loan, if the borrower was current in the payment of principal and interest on the loan at the time the additional collateral was requested.</text> </paragraph></subsection></section><section id="IDEE5F2EF2C3114BF69E3B2C47CED30A3C"><enum>3106.</enum><header>Limited-resource loans</header> <subsection id="ID9F6ACE995E5647F9AAB4BDA81B9DC031"><enum>(a)</enum><header>In general</header><text>The Secretary may make or guarantee a limited-resource loan for any of the purposes specified in sections 3102(a) or 3103(a) to a farmer in the United States who—</text> <paragraph id="ID6F40C5178230421EA346584899FB0FF6"><enum>(1)</enum><text>in the case of an entity, all members, stockholders, or partners are eligible under section 3101(b);</text> </paragraph><paragraph id="ID18EF550C53B34DE3812B988BC41D3F89"><enum>(2)</enum><text>has a low income; and</text> </paragraph><paragraph id="ID7088CED027964AA8BB65537E0609347D"><enum>(3)</enum><text>demonstrates a need to maximize the income of the farmer from farming operations.</text> </paragraph></subsection><subsection id="IDBAE40A6EBAF14C7A96B29B6F679E9E14"><enum>(b)</enum><header>Installments</header><text>A loan made or guaranteed under this section shall be repayable in such installments as the Secretary determines will provide for reduced payments during the initial repayment period of the loan and larger payments during the remainder of the repayment period of the loan.</text> </subsection><subsection id="ID4c2020f0044c42d18d8d7f6d14414156"><enum>(c)</enum><header>Interest rates</header><text>Except as provided in section 3105(b)(3) and in section 3204(b)(3), the interest rate on loans (other than guaranteed loans) under this section shall not be—</text> <paragraph id="IDa14311c1fc894238bd9c938b4b1e69a4"><enum>(1)</enum><text>greater than the sum obtained by adding—</text> <subparagraph id="IDfa093bf10ba74d4881baa7dc2d9925f2"><enum>(A)</enum><text>an amount that does not exceed <fraction>1/2</fraction> of the current average market yield on outstanding marketable obligations of the United States with maturities of 5 years; and</text> </subparagraph><subparagraph id="ID2f21e1d2554e48019d311a4267bf455e"><enum>(B)</enum><text>an amount not exceeding 1 percent per year, as the Secretary determines is appropriate; or</text> </subparagraph></paragraph><paragraph id="IDdf6ce1064cc443de8bf0f679969b6ec1"><enum>(2)</enum><text>less than 5 percent per year.</text> </paragraph></subsection></section><section id="IDA5970634E6C64399B4BED0DB5838C963"><enum>3107.</enum><header>Downpayment loan program</header> <subsection id="IDF4929C39456742A592F243C8B679F1D6"><enum>(a)</enum><header>In general</header> <paragraph id="ID84A58DCD1A704ADBA5DCE59FC449FC05"><enum>(1)</enum><header>Establishment</header><text>Notwithstanding any other provision of this chapter, the Secretary shall establish, under the farm ownership loan program established under this chapter, a program under which loans shall be made under this section to a qualified beginning farmer or a socially disadvantaged farmer for a downpayment on a farm ownership loan.</text> </paragraph><paragraph id="IDD2E47FB4C5B84F22A0A1D9BA2A3C156C"><enum>(2)</enum><header>Coordination</header><text>The Secretary shall be the primary coordinator of credit supervision for the downpayment loan program established under this section, in consultation with a commercial or cooperative lender and, if applicable, a contracting credit counseling service selected under section 3420(c).</text> </paragraph></subsection><subsection id="ID4C66B04006CD4D8EBB2A089EC0802DF4"><enum>(b)</enum><header>Loan terms</header> <paragraph id="ID3ab611dd6e5940f79f770ad941bfb82e"><enum>(1)</enum><header>Principal</header><text>Each loan made under this section shall be in an amount that does not exceed 45 percent of the lesser of—</text> <subparagraph id="IDc07e6b4241e14c8da83b1015282726ed"><enum>(A)</enum><text>the purchase price of the farm to be acquired;</text> </subparagraph><subparagraph id="ID0e41f856b51a4c17b6992ea1fc6173e7"><enum>(B)</enum><text>the appraised value of the farm to be acquired; or</text> </subparagraph><subparagraph id="IDe3061dca6c904b81b9eb32ac25588289"><enum>(C)</enum><text>$667,000.</text> </subparagraph></paragraph><paragraph id="ID99db719cdb1041408b736853ca5c94be"><enum>(2)</enum><header>Interest rate</header><text>The interest rate on any loan made by the Secretary under this section shall be a rate equal to the greater of—</text> <subparagraph id="ID7a88963ab9d5488bb8542268f5b5d8aa"><enum>(A)</enum><text>the difference between—</text> <clause id="id57CCFE4EE25D42139CBC16EE1DA6762F"><enum>(i)</enum><text>4 percent; and</text> </clause><clause id="id0DC98465EADC47BCA868F643790A6F06"><enum>(ii)</enum><text>the interest rate for farm ownership loans under this chapter; or</text> </clause></subparagraph><subparagraph id="ID690f47848bcd4ee59c2f4e2e85c78e73"><enum>(B)</enum><text>1.5 percent.</text> </subparagraph></paragraph><paragraph id="ID580a3af9a8904f368d6a68e4d0cd3117"><enum>(3)</enum><header>Duration</header><text>Each loan under this section shall be made for a period of 20 years or less, at the option of the borrower.</text> </paragraph><paragraph id="IDdad7592f0aee4a60a59283cfd44cb36c"><enum>(4)</enum><header>Repayment</header><text>Each borrower of a loan under this section shall repay the loan to the Secretary in equal annual installments.</text> </paragraph><paragraph id="ID6bdac5da7e034cfc8932b0e645f2a2b5"><enum>(5)</enum><header>Nature of retained security interest</header><text>The Secretary shall retain an interest in each farm acquired with a loan made under this section that shall—</text> <subparagraph id="ID4b16b07d1b294caea5a15f77e8b0719f"><enum>(A)</enum><text>be secured by the farm;</text> </subparagraph><subparagraph id="ID87765d6917d148289957d13e92e69ad0"><enum>(B)</enum><text>be junior only to such interests in the farm as may be conveyed at the time of acquisition to the person (including a lender) from whom the borrower obtained a loan used to acquire the farm; and</text> </subparagraph><subparagraph id="IDc82b5f01c8044bcca991e9770edc345e"><enum>(C)</enum><text>require the borrower to obtain the permission of the Secretary before the borrower may grant an additional security interest in the farm.</text> </subparagraph></paragraph></subsection><subsection id="ID9de836d1514f4829ac350f1e451ceef6"><enum>(c)</enum><header>Limitations</header> <paragraph id="IDf8a0e22053bf4311ba3f60afc4b11f5e"><enum>(1)</enum><header>Borrowers required to make minimum down payment</header><text>The Secretary shall not make a loan under this section to any borrower with respect to a farm if the contribution of the borrower to the down payment on the farm will be less than 5 percent of the purchase price of the farm.</text> </paragraph><paragraph id="IDb11c2131c6294366b306eec596a048e8"><enum>(2)</enum><header>Prohibited types of financing</header><text>The Secretary shall not make a loan under this section with respect to a farm if the farm is to be acquired with other financing that contains any of the following conditions:</text> <subparagraph id="IDa8e5b5594ef340febd1b4a26057ffd69"><enum>(A)</enum><text>The financing is to be amortized over a period of less than 30 years.</text> </subparagraph><subparagraph id="ID2fdc99ceaee6487eac615957627b0c9d"><enum>(B)</enum><text>A balloon payment will be due on the financing during the 20-year period beginning on the date on which the loan is to be made by the Secretary.</text> </subparagraph></paragraph></subsection><subsection id="ID128785b509094cb984a30fe11f166cb6"><enum>(d)</enum><header>Administration</header><text>In carrying out this section, the Secretary shall, to the maximum extent practicable—</text> <paragraph id="IDdae7404dff2d432b9340f52937e5198a"><enum>(1)</enum><text>facilitate the transfer of farms from retiring farmers to persons eligible for insured loans under this subtitle;</text> </paragraph><paragraph id="IDf3e20b3d9f004e8bb625b6fa599915e5"><enum>(2)</enum><text>make efforts to widely publicize the availability of loans under this section among—</text> <subparagraph id="ID7ee220083395451f80e5d9ea783e6a80"><enum>(A)</enum><text>potentially eligible recipients of the loans;</text> </subparagraph><subparagraph id="ID40dcb205c0194c148cb218fea2d522b2"><enum>(B)</enum><text>retiring farmers; and</text> </subparagraph><subparagraph id="ID6b96af68ba974522968feb7d2d5ae428"><enum>(C)</enum><text>applicants for farm ownership loans under this chapter;</text> </subparagraph></paragraph><paragraph id="ID03ec029cd60e4a13bc597cb8a18683de"><enum>(3)</enum><text>encourage retiring farmers to assist in the sale of their farms to qualified beginning farmers and socially disadvantaged farmers providing seller financing;</text> </paragraph><paragraph id="ID307904ac3a9d4f36a83e5e9724dcbd9d"><enum>(4)</enum><text>coordinate the loan program established by this section with State programs that provide farm ownership or operating loans for beginning farmers or socially disadvantaged farmers; and</text> </paragraph><paragraph id="ID1ab7331becba4c9aa7490e5aca5fff42"><enum>(5)</enum><text>establish annual performance goals to promote the use of the down payment loan program and other joint financing arrangements as the preferred choice for direct real estate loans made by any lender to a qualified beginning farmer or socially disadvantaged farmer.</text> </paragraph></subsection></section><section id="idd8ed26333b9d4e8181dd18931485e29e"><enum>3108.</enum><header>Beginning farmer and socially disadvantaged farmer contract land sales program</header> <subsection id="id51baa78b30aa4a64851bf9aa27fc4287"><enum>(a)</enum><header>In general</header><text>The Secretary shall, in accordance with this section, guarantee a loan made by a private seller of a farm to a qualified beginning farmer or socially disadvantaged farmer on a contract land sales basis.</text> </subsection><subsection id="id0fd3baaee68043a0bcf02b09ca131b33"><enum>(b)</enum><header>Eligibility</header><text>To be eligible for a loan guarantee under subsection (a)—</text> <paragraph id="id7f879aee201d4173a3fae6dae5277367"><enum>(1)</enum><text>the qualified beginning farmer or socially disadvantaged farmer shall—</text> <subparagraph id="idc9dbc0d2dbba4a7bbc9902fafac2d1fc"><enum>(A)</enum><text>on the date the contract land sale that is subject of the loan is complete, own and operate the farm that is the subject of the contract land sale;</text> </subparagraph><subparagraph id="id4e8e05c810c24962974769e9047593ff"><enum>(B)</enum><text>have a credit history that—</text> <clause id="ida83666fbb55d40659aca44deaf8cd7e1"><enum>(i)</enum><text>includes a record of satisfactory debt repayment, as determined by the Secretary; and</text> </clause><clause id="id4950bba44213458f88f1bdf347be6036"><enum>(ii)</enum><text>is acceptable to the Secretary; and</text> </clause></subparagraph><subparagraph id="id8378cc1643bd45a9b2e49ecc36535322"><enum>(C)</enum><text>demonstrate to the Secretary that the farmer is unable to obtain sufficient credit without a guarantee to finance any actual need of the farmer at a reasonable rate or term; and</text> </subparagraph></paragraph><paragraph id="id81911c128f194e9f995cbf9853642bdf"><enum>(2)</enum><text>the loan shall meet applicable underwriting criteria, as determined by the Secretary.</text> </paragraph></subsection><subsection id="id4135825254a54a40a48ec17cc073935f"><enum>(c)</enum><header>Limitations</header><text>The Secretary shall not provide a loan guarantee under subsection (a) if—</text> <paragraph id="id226D131A19D94A308EEAE6FDD3FD9913"><enum>(1)</enum><text>the contribution of the qualified beginning farmer or socially disadvantaged farmer to the down payment for the farm that is the subject of the contract land sale would be less than 5 percent of the purchase price of the farm; or</text> </paragraph><paragraph id="ida1414f8bcbc74cf29d35f82d407bed32"><enum>(2)</enum><text>the purchase price or the appraisal value of the farm that is the subject of the contract land sale is greater than $500,000.</text> </paragraph></subsection><subsection id="id1071ffe2306c4e28b1552b99eba66dbb"><enum>(d)</enum><header>Period of guarantee</header><text>A loan guarantee under this section shall be in effect for the 10-year period beginning on the date on which the guarantee is provided.</text> </subsection><subsection id="idd8c0f97e15af429c89b04d5e6ca5e98e"><enum>(e)</enum><header>Guarantee plan</header> <paragraph id="id08158fa639734a1db0755809deb04291"><enum>(1)</enum><header>Selection of plan</header><text>A private seller of a farm who makes a loan guaranteed by the Secretary under subsection (a) may select—</text> <subparagraph id="id9beb36bb4e87476298fac70b0568814f"><enum>(A)</enum><text>a prompt payment guarantee plan, which shall cover—</text> <clause id="idba549d9dd77943cdb9651a649bfd7aec"><enum>(i)</enum><text>3 amortized annual installments; or</text> </clause><clause id="idd9c760db374943659a36ff630faf852d"><enum>(ii)</enum><text>an amount equal to 3 annual installments (including an amount equal to the total cost of any tax and insurance incurred during the period covered by the annual installments); or</text> </clause></subparagraph><subparagraph id="ided9863f13dc646eb9ce7b1bba1538f94"><enum>(B)</enum><text>a standard guarantee plan, which shall cover an amount equal to 90 percent of the outstanding principal of the loan.</text> </subparagraph></paragraph><paragraph id="idb00ac2ec1d8a44e4843a43afd09da861"><enum>(2)</enum><header>Eligibility for standard guarantee plan</header><text>To be eligible for a standard guarantee plan referred to in paragraph (1)(B), a private seller shall—</text> <subparagraph id="id077ed25eabb04978bd11966c63b729a2"><enum>(A)</enum><text>secure a commercial lending institution or similar entity, as determined by the Secretary, to serve as an escrow agent; or</text> </subparagraph><subparagraph id="ida4457beeb9d942b7b851d3a415d9a42d"><enum>(B)</enum><text>in cooperation with the farmer, use an appropriate alternate arrangement, as determined by the Secretary.</text> </subparagraph></paragraph></subsection></section></chapter><chapter id="ID44805D3D33AD4DF0B369069DF39113C2"><enum>2</enum><header>Operating loans</header> <section id="ID4F0C86A5C3084EA9858188C770C3665F"><enum>3201.</enum><header>Operating loans</header> <subsection id="IDBE1840419B03492096808D156ABEBA2E"><enum>(a)</enum><header>In general</header><text>The Secretary may make or guarantee an operating loan under this chapter to an eligible farmer in the United States.</text> </subsection><subsection id="ID49E86886BE024901AA7DA49BCF2666AC"><enum>(b)</enum><header>Eligibility</header><text>A farmer shall be eligible under subsection (a) only—</text> <paragraph id="ID502574C29BD149C8AF5AB0D41BEDF185"><enum>(1)</enum><text>if the farmer, or an individual holding a majority interest in the farmer—</text> <subparagraph id="ID35BEBD3559F6464F9A8DE26B441CBAF5"><enum>(A)</enum><text>is a citizen of the United States; and</text> </subparagraph><subparagraph id="ID7A69B4105C514C818CC1E0A22949DE8F"><enum>(B)</enum><text>has training or farming experience that the Secretary determines is sufficient to ensure a reasonable prospect of success in the farming operation proposed by the farmer;</text> </subparagraph></paragraph><paragraph id="ID47A8CE4779284A3C84CD7E01F534A390"><enum>(2)</enum><text>in the case of a farmer that is an individual, if the farmer is or proposes to become an operator of a farm that is not larger than a family farm;</text> </paragraph><paragraph id="ID51866A0DCE8F4BDD97A9DF4254F41EB7"><enum>(3)</enum><text>in the case of a farmer that is a cooperative, corporation, partnership, trust, limited liability company, joint operation, or other such legal entity as the Secretary determines to be appropriate, with respect to the entity and each farm in which the entity has an ownership or operator interest—</text> <subparagraph id="idE74EC4F3E8834194A8317EC901EF2C74"><enum>(A)</enum><text>if—</text> <clause id="id282F9F36D191477D8614FC0D732DCDBD"><enum>(i)</enum><text>a majority interest is held by individuals who are related by blood or marriage, as defined by the Secretary;</text> </clause><clause id="idB7421FCBBE0C494F833C1FAC8C458B4F"><enum>(ii)</enum><text>all of the individuals are or propose to become owners or operators of a farm that is not larger than a family farm; and</text> </clause><clause id="idB3D58B92C6EC4FF89CAC27D375B9EDDE"><enum>(iii)</enum><text>at least 1 of the individuals is or proposes to become an operator of the farm; or</text> </clause></subparagraph><subparagraph id="id242D475BBC874A6DA02BFAECC8676E60"><enum>(B)</enum><text>if—</text> <clause id="idA0A7BF4A6B244143BC0B4D904D6F60E1"><enum>(i)</enum><text>the entire interest is held by individuals who are related by blood or marriage, as defined by the Secretary;</text> </clause><clause id="idAAC4CFF6D5EB4A4E8F8421756D06330A"><enum>(ii)</enum><text>all of the individuals are or propose to become farm operators; and</text> </clause><clause id="id84C6CC7C9CD146FEBFF958A419DFF00E"><enum>(iii)</enum><text>the ownership interest of each individual separately constitutes not larger than a family farm, even if the ownership interests of the individuals collectively constitute larger than a family farm;</text> </clause></subparagraph></paragraph><paragraph id="id936017a8985f43ad8458841972327772"><enum>(4)</enum><text>in the case of an operator described in paragraph (3) that is owned, in whole or in part by 1 or more other entities, if not less than 75 percent of the ownership interests of each other entity is owned directly or indirectly by 1 or more individuals who own the family farm; and</text> </paragraph><paragraph id="ID7343C615D6F944B3AEFC38B0D1688508"><enum>(5)</enum><text>if the farmer and each individual that holds a majority interest in the farmer is unable to obtain credit elsewhere.</text> </paragraph></subsection><subsection id="ID87DD09262FC94B579E36DCEE70B5FB3D"><enum>(c)</enum><header>Direct loans</header> <paragraph id="ID7BA0C1D7F3B14551867C0F15FF211C72"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (3), the Secretary may make a direct loan under this chapter only to a farmer who—</text> <subparagraph id="IDD64A5D4746C04C94ACA60B02C70CADE3"><enum>(A)</enum><text>is a qualified beginning farmer;</text> </subparagraph><subparagraph id="IDFF4CDABFA779414FB2A5C391776DC799"><enum>(B)</enum><text>has not received a previous direct operating loan made under this chapter; or</text> </subparagraph><subparagraph id="idc0cb01e63775487a9e5508067f006772"><enum>(C)</enum><text>has not received a direct operating loan made under this chapter for a total of 7 years, less 1 year for every 3 consecutive years the farmer did not receive a direct operating loan after the year in which the borrower initially received a direct operating loan under this chapter, as determined by the Secretary.</text> </subparagraph></paragraph><paragraph id="ID262022E6BD164133A51CE895E798DD06"><enum>(2)</enum><header>Youth loans</header><text>In this subsection, the term <term>direct operating loan</term> shall not include a loan made to a youth under subsection (d).</text> </paragraph><paragraph id="ID1322968F67074AFDA1FECA8FA4AA8F7A"><enum>(3)</enum><header>Transition rule</header><text>If, as of April 4, 1996, a farmer has received a direct operating loan under this chapter during each of 4 or more previous years, the borrower shall be eligible to receive a direct operating loan under this chapter during 3 additional years after April 4, 1996.</text> </paragraph><paragraph id="ID7c3a0ba6dde84cae84b9f4be3f429926"><enum>(4)</enum><header>Waivers</header> <subparagraph id="ID662952629824416fa0fef68650ead1c7"><enum>(A)</enum><header>Farm operations on tribal land</header><text>The Secretary shall waive the limitation under paragraph (1)(C) or (3) for a direct loan made under this chapter to a farmer whose farm 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 such farm operations.</text> </subparagraph><subparagraph id="IDf4cf7b261b9449da9af40b10d6f34a6e"><enum>(B)</enum><header>Other farm operations</header><text>On a case-by-case determination not subject to administrative appeal, the Secretary may grant a borrower a waiver, 1 time only for a period of 2 years, of the limitation under paragraph (1)(C) or (3) for a direct operating loan if the borrower demonstrates to the satisfaction of the Secretary that—</text> <clause id="IDec92fb774fd14105892fdc03d5a618c8"><enum>(i)</enum><text>the borrower has a viable farm operation;</text> </clause><clause id="IDae9d13b094374262bc7692abc0dbc1b6"><enum>(ii)</enum><text>the borrower applied for commercial credit from at least 2 commercial lenders;</text> </clause><clause id="ID7d0393a366204f46a821271139041f7d"><enum>(iii)</enum><text>the borrower was unable to obtain a commercial loan (including a loan guaranteed by the Secretary); and</text> </clause><clause id="ID8bab542a31f8411ba93d360547e29822"><enum>(iv)</enum><text>the borrower successfully has completed, or will complete within 1 year, borrower training under section 3419 (from which requirement the Secretary shall not grant a waiver under section 3419(f)).</text> </clause></subparagraph></paragraph></subsection><subsection id="IDC8080DCCB1994041BBC6A9363623722C"><enum>(d)</enum><header>Youth loans</header> <paragraph id="ID2B68959A2F5A40E796F671794BE8DDA9"><enum>(1)</enum><header>In general</header><text>Notwithstanding subsection (b), except for citizenship and credit requirements, a loan may be made under this chapter to a youth who is a rural resident to enable the youth to operate an enterprise in connection with the participation in a youth organization, as determined by the Secretary.</text> </paragraph><paragraph id="ID80393F5E7F26401DB50EBE731B8ED740"><enum>(2)</enum><header>Full personal liability</header><text>A youth receiving a loan under this subsection who executes a promissory note for the loan shall incur full personal liability for the indebtedness evidenced by the note, in accordance with the terms of the note, free of any disability of minority.</text> </paragraph><paragraph id="ID9C5D88BECA6D42B0ACFAE08630148E9A"><enum>(3)</enum><header>Cosigner</header><text>The Secretary may accept the personal liability of a cosigner of a promissory note for a loan under this subsection, in addition to the personal liability of the youth borrower.</text> </paragraph><paragraph id="ID3CE4AB48944B49EF983DD8ADD5C95178"><enum>(4)</enum><header>Youth enterprises not farming</header><text>The operation of an enterprise by a youth under this subsection shall not be considered the operation of a farm under this subtitle.</text> </paragraph></subsection><subsection id="idFD4B2C548CEB44148E589ECEA839BCFB"><enum>(e)</enum><header>Pilot loan program To support healthy foods for the hungry</header> <paragraph id="id56FA4C78BC4B415CB5CDB978C097C4EF"><enum>(1)</enum><header>Definition of gleaner</header><text>In this subsection, the term <term>gleaner</term> means an entity that—</text> <subparagraph id="id54C6676F9CED4A2F94EFE7D3D2154D0E"><enum>(A)</enum><text>collects edible, surplus food that would be thrown away and distributes the food to agencies or nonprofit organizations that feed the hungry; or</text> </subparagraph><subparagraph id="id1A116DB2A1C548FD8BDC5A63E53500A6"><enum>(B)</enum><text>harvests for free distribution to the needy, or for donation to agencies or nonprofit organizations for ultimate distribution to the needy, an agricultural crop that has been donated by the owner of the crop.</text> </subparagraph></paragraph><paragraph id="id32DDF05C89484BCD9611B6D3892F6E8E"><enum>(2)</enum><header>Program</header><text>Not later than 180 days after the date of enactment of this subsection, the Secretary shall establish, within the operating loan program established under this chapter, a pilot program under which the Secretary makes loans available to eligible entities to assist the entities in providing food to the hungry.</text> </paragraph><paragraph id="id3BB2485F55174C448B2560E379077F1E"><enum>(3)</enum><header>Eligibility</header><text>In addition to any other person eligible under the terms and conditions of the operating loan program established under this chapter, gleaners shall be eligible to receive loans under this subsection.</text> </paragraph><paragraph id="idA5F2FC2171FD43CEB7A6CA5E6B7EBF0B"><enum>(4)</enum><header>Loan amount</header> <subparagraph id="id39EE745C3A734BA0B047986CB810676B"><enum>(A)</enum><header>In general</header><text>Each loan issued under the program shall be in an amount of not less than $500 and not more than $5,000.</text> </subparagraph><subparagraph id="idD0E5E809D7B745E7901EAC59677240D0"><enum>(B)</enum><header>Redistribution</header><text>If the eligible recipients in a State do not use the full allocation of loans that are available to eligible recipients in the State under this subsection, the Secretary may use any unused amounts to make loans available to eligible entities in other States in accordance with this subsection.</text> </subparagraph></paragraph><paragraph id="id459A9DF666174BB08CCC0915117F7BF0"><enum>(5)</enum><header>Loan processing</header> <subparagraph id="id538D53C0DA3941AAAD403029E47B681D"><enum>(A)</enum><header>In general</header><text>The Secretary shall process any loan application submitted under the program not later than 30 days after the date on which the application was submitted.</text> </subparagraph><subparagraph id="id2281926EDBEE43868551BAB5E8966D4F"><enum>(B)</enum><header>Expediting applications</header><text>The Secretary shall take any measure the Secretary determines necessary to expedite any application submitted under the program.</text> </subparagraph></paragraph><paragraph id="id2BE8A4AE4F944E1DAC085433192A35A8"><enum>(6)</enum><header>Paperwork reduction</header><text>The Secretary shall take measures to reduce any paperwork requirements for loans under the program.</text> </paragraph><paragraph id="id6F3D91B1D232458A8CB29EB966556966"><enum>(7)</enum><header>Program integrity</header><text>The Secretary shall take such actions as are necessary to ensure the integrity of the program established under this subsection.</text> </paragraph><paragraph id="id0756A839D28141FABD32786E400BCED8"><enum>(8)</enum><header>Maximum amount</header><text>Of funds that are made available to carry out this chapter, the Secretary shall use to carry out this subsection a total amount of not more than $500,000.</text> </paragraph><paragraph id="id78930765B43046EAA727663C1D45BBA9"><enum>(9)</enum><header>Report</header><text>Not later than 180 days after the maximum amount of funds are used to carry out this subsection under paragraph (8), the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the pilot program and the feasibility of expanding the program.</text> </paragraph></subsection></section><section id="IDAFB23AB9DD93407EB9F88EB9694524EC"><enum>3202.</enum><header>Purposes of loans</header> <subsection id="ID1AAA99EE574945A19E92D9B8A55BACAD"><enum>(a)</enum><header>Direct loans</header><text>A direct loan may be made under this chapter only—</text> <paragraph id="ID6A750D782F874E99994E7D51D00EC391"><enum>(1)</enum><text>to pay the costs incident to reorganizing a farm for more profitable operation;</text> </paragraph><paragraph id="ID1D5A5ED1AF71408484538E9477ABFC90"><enum>(2)</enum><text>to purchase livestock, poultry, or farm equipment;</text> </paragraph><paragraph id="IDF4CD230804C34D96A5B396F344336879"><enum>(3)</enum><text>to purchase feed, seed, fertilizer, insecticide, or farm supplies, or to meet other essential farm operating expenses, including cash rent;</text> </paragraph><paragraph id="ID396CA20D9030459283F239DA2C98F8B4"><enum>(4)</enum><text>to finance land or water development, use, or conservation;</text> </paragraph><paragraph id="ID896B5DB0494F43448302D331B87A1370"><enum>(5)</enum><text>to pay loan closing costs;</text> </paragraph><paragraph id="ID8A3089F5CDA04587ADA861292905F630"><enum>(6)</enum><text>to assist a farmer in changing the equipment, facilities, or methods of operation of a farm to comply with a standard promulgated under section 6 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 655) or a standard adopted by a State under a plan approved under section 18 of that Act (29 U.S.C. 667), if the Secretary determines that without assistance under this paragraph the farmer is likely to suffer substantial economic injury in complying with the standard;</text> </paragraph><paragraph id="IDF412C3785E7D43D683092D8EAC84BDBB"><enum>(7)</enum><text>to train a limited-resource borrower receiving a loan under section 3106 in maintaining records of farming operations;</text> </paragraph><paragraph id="IDDBF0B3B36D3449EDAB838395FB68A031"><enum>(8)</enum><text>to train a borrower under section 3419;</text> </paragraph><paragraph id="ID50EEFF9E5CF44229A1B34F35C8DB04FE"><enum>(9)</enum><text>to refinance the indebtedness of a borrower, if the borrower—</text> <subparagraph id="ID4FEE400E8EB14EDEA5B84CFEE6AAAAF5"><enum>(A)</enum><text>has refinanced a loan under this chapter not more than 4 times previously; and</text> </subparagraph><subparagraph id="ID1AE46A80AC9A4212816B60DF7A15D209"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="ID364D1A8067F2407096AFB04A5F116739"><enum>(i)</enum><text>is a direct loan borrower under this title at the time of the refinancing and has suffered a qualifying loss because of a natural or major disaster or emergency; or</text> </clause><clause id="ID18495FB214DF4EE1869599F4178C8616" indent="up1"><enum>(ii)</enum><text>is refinancing a debt obtained from a creditor other than the Secretary; or</text> </clause></subparagraph></paragraph><paragraph id="ID7ECDC22FAA8A410881959C115D8A0FB5"><enum>(10)</enum><text>to provide other farm or home needs, including family subsistence.</text> </paragraph></subsection><subsection id="ID323FF9B6A2454B41AB81621D806ADAD5"><enum>(b)</enum><header>Guaranteed loans</header><text>A loan may be guaranteed under this chapter only—</text> <paragraph id="IDF49461C8E3BC41D1BEB495E18EA22AFA"><enum>(1)</enum><text>to pay the costs incident to reorganizing a farm for more profitable operation;</text> </paragraph><paragraph id="ID0FDED8EB17214E6996A2ADC64BB1CB92"><enum>(2)</enum><text>to purchase livestock, poultry, or farm equipment;</text> </paragraph><paragraph id="ID2129C718DC464CA597696D718F0AA432"><enum>(3)</enum><text>to purchase feed, seed, fertilizer, insecticide, or farm supplies, or to meet other essential farm operating expenses, including cash rent;</text> </paragraph><paragraph id="ID7DD3C9EC3CD84485853E080DDA31C720"><enum>(4)</enum><text>to finance land or water development, use, or conservation;</text> </paragraph><paragraph id="ID000174CFBA724420911041A1CD9D1F97"><enum>(5)</enum><text>to refinance indebtedness;</text> </paragraph><paragraph id="IDA194C6C0A79D4C08B6AB63804B4E2E41"><enum>(6)</enum><text>to pay loan closing costs;</text> </paragraph><paragraph id="ID146B1D3D5FE540DDAAEE9264C5F1FB3D"><enum>(7)</enum><text>to assist a farmer in changing the equipment, facilities, or methods of operation of a farm to comply with a standard promulgated under section 6 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 655) or a standard adopted by a State under a plan approved under section 18 of that Act (29 U.S.C. 667), if the Secretary determines that without assistance under this paragraph the farmer is likely to suffer substantial economic injury due to compliance with the standard;</text> </paragraph><paragraph id="ID95E8FDA6F49947A8AD32D8424AF54EB5"><enum>(8)</enum><text>to train a borrower under section 3419; or</text> </paragraph><paragraph id="ID3589D4A895614AC58D5177CAB1E379F1"><enum>(9)</enum><text>to provide other farm or home needs, including family subsistence.</text> </paragraph></subsection><subsection id="IDA60F1FD01CA2400C89A0EB3CC2320BC5"><enum>(c)</enum><header>Hazard insurance requirement</header><text>The Secretary may not make a loan to a farmer under this chapter unless the farmer has, or agrees to obtain, hazard insurance on the property to be acquired with the loan.</text> </subsection><subsection id="ID0E7255E9D40E4393A81F5E8632D8B7B0"><enum>(d)</enum><header>Private reserve</header> <paragraph id="ID0F9F9481621D41A593A7E5EDB0F3422F"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision of this title, the Secretary may reserve a portion of any loan made under this chapter to be placed in an unsupervised bank account that may be used at the discretion of the borrower for the basic family needs of the borrower and the immediate family of the borrower.</text> </paragraph><paragraph id="IDE68215200CBC4F6785D136438E929356"><enum>(2)</enum><header>Limit on size of the reserve</header><text>The size of the reserve shall not exceed the lesser of—</text> <subparagraph id="ID7DFF9C1CB25740DA990EB025EAB18B81"><enum>(A)</enum><text>10 percent of the loan;</text> </subparagraph><subparagraph id="IDCC40C25EB2EF4A0D9520581B45F4B101"><enum>(B)</enum><text>$5,000; or</text> </subparagraph><subparagraph id="IDD445AE134C884C99ABFA26086E89367E"><enum>(C)</enum><text>the amount needed to provide for the basic family needs of the borrower and the immediate family of the borrower for 3 calendar months.</text> </subparagraph></paragraph></subsection></section><section id="IDAC3D147B3E3F4D7C85F8219A2BE720CC"><enum>3203.</enum><header>Restrictions on loans</header> <subsection id="idA63052F5204F438BBA5C431F7F3A14F7"><enum>(a)</enum><header>Requirements</header> <paragraph id="id4933C09239794CE38FEDA6EC45CEF469"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary may not make or guarantee a loan under this chapter—</text> <subparagraph id="ID834E5323603D4334B2A7FA3691F6B0AE"><enum>(A)</enum><text>that would cause the total principal indebtedness outstanding at any 1 time for loans made under this chapter to any 1 borrower to exceed—</text> <clause id="IDFC8822BFCBF841A9AFA6D792051F7D88"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="id64FF149E23D4498AA5F1B625CF7192F7"><enum>(I)</enum><text>in the case of a loan made by the Secretary, $300,000; or</text> </subclause><subclause id="id1BDE71DF881C4758892C51627D943F63" indent="up1"><enum>(II)</enum><text>in the case of a loan guaranteed by the Secretary, $700,000 (as modified under paragraph (2)); or</text> </subclause></clause></subparagraph><subparagraph id="ID1849CB73116C48F1AAA06F109197EE72"><enum>(B)</enum><text>for the purchasing or leasing of land other than for cash rent, or for carrying on a land leasing or land purchasing program.</text> </subparagraph></paragraph><paragraph id="id102D29BF047B48BA96BEAB395CE32603"><enum>(2)</enum><header>Modification</header><text>The amount specified in paragraph (1)(A)(ii) shall be—</text> <subparagraph id="idF79A8813190F434FA97DEEBA585AE881"><enum>(A)</enum><text>increased, beginning with fiscal year 2000, by the inflation percentage applicable to the fiscal year in which the loan is guaranteed; and</text> </subparagraph><subparagraph id="id5BF1150146634C30A2A5626380585583"><enum>(B)</enum><text>reduced by the unpaid indebtedness of the borrower on loans under sections specified in section 3104 that are guaranteed by the Secretary.</text> </subparagraph></paragraph></subsection><subsection id="ID595cc2abe4f94fc49fc5676342bbebfa"><enum>(b)</enum><header>Inflation percentage</header><text>For purposes of this section, the inflation percentage applicable to a fiscal year is the percentage (if any) by which—</text> <paragraph id="IDab7f694a0fac42cdbfd14712a2e7ed18"><enum>(1)</enum><text>the average of the Prices Paid By Farmers Index (as compiled by the National Agricultural Statistics Service of the Department) for the 12-month period ending on August 31 of the immediately preceding fiscal year; exceeds</text> </paragraph><paragraph id="ID70d9a229f40146deb45d08c0f32d9f29"><enum>(2)</enum><text>the average of that index (as so defined) for the 12-month period ending on August 31, 1996.</text> </paragraph></subsection></section><section id="IDB254E02974AA4930BFEE9C0133301196"><enum>3204.</enum><header>Terms of loans</header> <subsection id="IDDB7CAA467F924A52A0A111D268187235"><enum>(a)</enum><header>Personal liability</header><text>A borrower of a loan made under this chapter shall secure the loan with the full personal liability of the borrower and such other security as the Secretary may prescribe.</text> </subsection><subsection id="IDE6759F01DC034BAA9D4F2D18073E68C7"><enum>(b)</enum><header>Interest rates</header> <paragraph id="IDEDBD338A12D44C418FA4ABA72B68FE2E"><enum>(1)</enum><header>Maximum rate</header> <subparagraph id="idFD4BC914E4FD4E9989679D13B4B91F1C"><enum>(A)</enum><header>In general</header><text>Except as provided in paragraphs (2) and (3), the interest rate on a loan made under this chapter (other than a guaranteed loan) shall be determined by the Secretary at a rate not to exceed the sum obtained by adding—</text> <clause id="id23157ED6A2964549BB4D06C0BFA851A8"><enum>(i)</enum><text>the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturity of the loan; and</text> </clause><clause id="id138187FD92984392AD525CBFC193E50C"><enum>(ii)</enum><text>an additional charge not to exceed 1 percent, as determined by the Secretary.</text> </clause></subparagraph><subparagraph id="idCE73086B516345E381A89431C2800D06"><enum>(B)</enum><header>Adjustment</header><text>The sum obtained under subparagraph (A) shall be adjusted to the nearest <fraction>1/8</fraction> of 1 percent.</text> </subparagraph></paragraph><paragraph id="IDC2743D247B9F4C1C850DE9C20C149DC8"><enum>(2)</enum><header>Guaranteed loan</header><text>The interest rate on a guaranteed loan made under this chapter shall be such rate as may be agreed on by the borrower and the lender, but may not exceed any rate prescribed by the Secretary.</text> </paragraph><paragraph id="ID4A36E73275BC470399168C3EFC55AA47"><enum>(3)</enum><header>Low income loan</header><text>The interest rate on a direct loan made under this chapter to a low-income, limited-resource borrower shall be determined by the Secretary at a rate that is not—</text> <subparagraph id="ID8A043D79DF8746428E866BF26BF7EABF"><enum>(A)</enum><text>greater than the sum obtained by adding—</text> <clause id="ID283FA198FE1D442FBC26E9652B8BF2E5"><enum>(i)</enum><text>an amount that does not exceed <fraction>1/2</fraction> of the current average market yield on outstanding marketable obligations of the United States with a maturity of 5 years; and</text> </clause><clause id="ID5BBFB6DE650B4097B1DA176B967D5650"><enum>(ii)</enum><text>an amount not to exceed 1 percent per year, as the Secretary determines is appropriate; or</text> </clause></subparagraph><subparagraph id="ID67C48D74B12E48A89EC0ABBC7B77FA31"><enum>(B)</enum><text>less than 5 percent per year.</text> </subparagraph></paragraph></subsection><subsection id="ID54509978365647B09AA545EAC670FDC3"><enum>(c)</enum><header>Period for repayment</header><text>The period for repayment of a loan made under this chapter may not exceed 7 years.</text> </subsection><subsection id="ID19729782407D40AFA6CF39C24461F899"><enum>(d)</enum><header>Line-of-credit loans</header> <paragraph id="IDB996B7DA9AD6464CA39175D7E2550660"><enum>(1)</enum><header>In general</header><text>A loan made or guaranteed by the Secretary under this chapter may be in the form of a line-of-credit loan.</text> </paragraph><paragraph id="ID109D9FAE6F7648BBB192B0C84CE71A70"><enum>(2)</enum><header>Term</header><text>A line-of-credit loan under paragraph (1) shall terminate not later than 5 years after the date that the loan is made or guaranteed.</text> </paragraph><paragraph id="ID8809311089BA4F6BA79768CAA030278A"><enum>(3)</enum><header>Eligibility</header><text>For purposes of determining eligibility for an operating loan under this chapter, each year during which a farmer takes an advance or draws on a line-of-credit loan the farmer shall be considered as having received an operating loan for 1 year.</text> </paragraph><paragraph id="ID7FBD9C40AB6B469E93B3AAFE55D3D370"><enum>(4)</enum><header>Termination of delinquent loans</header><text>If a borrower does not pay an installment on a line-of-credit loan on schedule, the borrower may not take an advance or draw on the line-of-credit, unless the Secretary determines that—</text> <subparagraph id="ID7C99DA29D66D43CE95589943BDEC9683"><enum>(A)</enum><text>the failure of the borrower to pay on schedule was due to unusual conditions that the borrower could not control; and</text> </subparagraph><subparagraph id="IDA43C5109E0814DBE9756C8251F87EF05"><enum>(B)</enum><text>the borrower will reduce the line-of-credit balance to the scheduled level at the end of—</text> <clause id="ID013939FF23E44C65BB48995B8E9A0777"><enum>(i)</enum><text>the production cycle; or</text> </clause><clause id="IDFABBB4A02C404A42B85C4839A2D000D6"><enum>(ii)</enum><text>the marketing of the agricultural products of the borrower.</text> </clause></subparagraph></paragraph><paragraph id="ID1AEC499169E94B3D8F71228355BA70D0"><enum>(5)</enum><header>Agricultural commodities</header><text>A line-of-credit loan may be used to finance the production or marketing of an agricultural commodity that is eligible for a price support program of the Department.</text> </paragraph></subsection></section></chapter><chapter id="IDC1706DDB6BA84ACABDFF7533B1A3DB2D"><enum>3</enum><header>Emergency loans</header> <section id="ID85A45A087710429BB3CF6A1B5523B6AF"><enum>3301.</enum><header>Emergency loans</header> <subsection id="ID52E32A491B074ABE9CC67CF4901A7EC2"><enum>(a)</enum><header>In general</header><text>The Secretary shall make or guarantee an emergency loan under this chapter to an eligible farmer (including a commercial fisherman) only to the extent and in such amounts as provided in advance in appropriation Acts.</text> </subsection><subsection id="ID9CF8FAE7A8064D7E8B4A181E0BF5B403"><enum>(b)</enum><header>Eligibility</header><text>An established farmer shall be eligible under subsection (a) only—</text> <paragraph id="ID8571D2C04CA84FB8905C7283A6A72C7F"><enum>(1)</enum><text>if the farmer or an individual holding a majority interest in the farmer—</text> <subparagraph id="ID68BA8D6900EC4ECD98B3DB5C99F707F8"><enum>(A)</enum><text>is a citizen of the United States; and</text> </subparagraph><subparagraph id="ID4B3CFB0041DE4C9096CEF28BAFFD86CC"><enum>(B)</enum><text>has experience and resources that the Secretary determines are sufficient to ensure a reasonable prospect of success in the farming operation proposed by the farmer;</text> </subparagraph></paragraph><paragraph id="ID81CD23B02CE948F0BC8B0213F9FB6C08"><enum>(2)</enum><text>in the case of a farmer that is an individual, if the farmer is—</text> <subparagraph id="IDEB3B89AC428B4BE99D39F465AF3DFC78"><enum>(A)</enum><text>in the case of a loan for a purpose under chapter 1, an owner, operator, or lessee-operator described in section 3101(b)(2); and</text> </subparagraph><subparagraph id="IDF0342C67EB49473AA729F3A67E9C8F5D"><enum>(B)</enum><text>in the case of a loan for a purpose under chapter 2, an operator of a farm that is not larger than a family farm;</text> </subparagraph></paragraph><paragraph id="IDEC1328B7A20B44DFB626C89CD6240C50"><enum>(3)</enum><text>in the case of a farmer that is a cooperative, corporation, partnership, trust, limited liability company, joint operation, or such other legal entity as the Secretary determines to be appropriate, with respect to the entity and each farm in which the entity has an ownership or operator interest—</text> <subparagraph id="idCC0D5B3B40EA4B1C8B95D48545949E30"><enum>(A)</enum><text>if—</text> <clause id="id9D341DDBDB374EB9BC0CC73EFC7FBC21"><enum>(i)</enum><text>a majority interest is held by individuals who are related by blood or marriage, as defined by the Secretary;</text> </clause><clause id="idB02D43A171EA448FB67F661A61CBD79E"><enum>(ii)</enum><text>all of the individuals are or propose to become owners or operators of a farm that is not larger than a family farm; and</text> </clause><clause id="idB13FEE7BE4D74CC49E7978899B5CAD8F"><enum>(iii)</enum><text>at least 1 of the individuals is or proposes to become an operator of the farm; or</text> </clause></subparagraph><subparagraph id="id5C4DE36932EE4DC185CDB451DCE209AD"><enum>(B)</enum><text>if—</text> <clause id="id044D601A51D944C492D6C5708F6981BA"><enum>(i)</enum><text>the entire interest is held by individuals who are related by blood or marriage, as defined by the Secretary;</text> </clause><clause id="idE02FA493761B4EAB8595867F3B76D9E8"><enum>(ii)</enum><text>all of the individuals are or propose to become farm operators; and</text> </clause><clause id="id66BC3A19060247689CAECB065C6C7635"><enum>(iii)</enum><text>the ownership interest of each individual separately constitutes not larger than a family farm, even if the ownership interests of the individuals collectively constitute larger than a family farm;</text> </clause></subparagraph></paragraph><paragraph id="ida30b7a8cdbcc43a88dfa142158a11e4c"><enum>(4)</enum><text>if the entity is owned, in whole or in part, by 1 or more other entities and each individual who is an owner of the family farm involved has a direct or indirect ownership interest in each of the other entities;</text> </paragraph><paragraph id="ID92F1A8B3744C456F8171CDF740F248A6"><enum>(5)</enum><text>if the farmer and any individual that holds a majority interest in the farmer is unable to obtain credit elsewhere; and</text> </paragraph><paragraph id="ID98E3EE49EE6742A6969B78C030921517"><enum>(6)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID39C2D7389F9D44988373D7ED1A4C6408"><enum>(A)</enum><text>if the Secretary finds that the operations of the farmer have been substantially affected by—</text> <clause id="idCA50F009C50E4EAA90C10C22DD4F1660" indent="up1"><enum>(i)</enum><text>a natural or major disaster or emergency designated by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.); or</text> </clause><clause id="idF85577A37C8A46A286ACD78FD979B0F6" indent="up1"><enum>(ii)</enum><text>a quarantine imposed by the Secretary under the Plant Protection Act (7 U.S.C. 7701 et seq.) or the Animal Health Protection Act (7 U.S.C. 8301 et seq.); or</text> </clause></subparagraph><subparagraph id="IDD21C7470048B4B6094A958A210EEEEE7" indent="up1"><enum>(B)</enum><text>if the farmer conducts farming operations in a county or a county contiguous to a county in which the Secretary has found that farming operations have been substantially affected by a natural or major disaster or emergency.</text> </subparagraph></paragraph></subsection><subsection id="ID7B28343E821A47BC9280AAC919D87A01"><enum>(c)</enum><header>Time for accepting an application</header><text>The Secretary shall accept an application for a loan under this chapter from a farmer at any time during the 8-month period beginning on the date that—</text> <paragraph id="IDADB9F3E5FA5048EF9BF2F29A56686593"><enum>(1)</enum><text>the Secretary determines that farming operations of the farmer have been substantially affected by—</text> <subparagraph id="id9697B2B7F4FD4BBF890EE520E035CB64"><enum>(A)</enum><text>a quarantine imposed by the Secretary under the Plant Protection Act (7 U.S.C. 7701 et seq.) or the Animal Health Protection Act (7 U.S.C. 8301 et seq.); or</text> </subparagraph><subparagraph id="id8AA9FDC1488D4089A0EFD790EF247C53"><enum>(B)</enum><text>a natural disaster; or</text> </subparagraph></paragraph><paragraph id="IDE49BC5EF622C4DE190EA08B9F94E035D"><enum>(2)</enum><text>the President makes a major disaster or emergency designation with respect to the affected county of the farmer referred to in subsection (b)(5)(B).</text> </paragraph></subsection><subsection id="ID9327AF0856694AC9BFD67948E57BB1DA"><enum>(d)</enum><header>Hazard insurance requirement</header><text>The Secretary may not make a loan to a farmer under this chapter to cover a property loss unless the farmer had hazard insurance that insured the property at the time of the loss.</text> </subsection><subsection id="ID13C0EEB8548240DAB2D03DAE817BABF8"><enum>(e)</enum><header>Family farm</header><text>The Secretary shall conduct the loan program under this chapter in a manner that will foster and encourage the family farm system of agriculture, consistent with the reaffirmation of policy and declaration of the intent of Congress contained in section 102(a) of the Food and Agriculture Act of 1977 (7 U.S.C. 2266(a)).</text> </subsection></section><section id="ID5BE653700D914017B21E932AF36631DF"><enum>3302.</enum><header>Purposes of loans</header><text display-inline="no-display-inline">Subject to the limitations on the amounts of loans provided in section 3303(a), a loan may be made or guaranteed under this chapter for—</text> <paragraph id="id432BF05F4FCB417B8F72A0EB1AADAEF3"><enum>(1)</enum><text display-inline="yes-display-inline">any purpose authorized for a loan under chapter 1 or 2; and</text> </paragraph><paragraph id="idF70F040EEB994233AEA521CDBD42573E"><enum>(2)</enum><text display-inline="yes-display-inline">crop or livestock purposes that are—</text> <subparagraph id="idBE8FF65FB99C46F39DCAB8B056EEC8E5"><enum>(A)</enum><text display-inline="yes-display-inline">necessitated by a quarantine, natural disaster, major disaster, or emergency; and</text> </subparagraph><subparagraph id="idF40CD9674D8D40E4B8DD27D9603E8FE6"><enum>(B)</enum><text display-inline="yes-display-inline">considered desirable by the farmer.</text> </subparagraph></paragraph></section><section id="ID1D757F88738E41AA9112EE688781162A"><enum>3303.</enum><header>Terms of loans</header> <subsection id="ID2D460C1AB90547E6BEE74D2196A7A7B5"><enum>(a)</enum><header>Maximum amount of loan</header><text>The Secretary may not make or guarantee a loan under this chapter to a borrower who has suffered a loss in an amount that—</text> <paragraph id="ID0A20E348C7F442E98B8140216DF2B1C1"><enum>(1)</enum><text>exceeds the actual loss caused by a disaster; or</text> </paragraph><paragraph id="IDBD72CF8FD6B84DB187D91CC033E57751"><enum>(2)</enum><text>would cause the total indebtedness of the borrower under this chapter to exceed $500,000.</text> </paragraph></subsection><subsection id="ID5112EE13A5854262A856B999ADE8E459"><enum>(b)</enum><header>Interest rates</header><text>Any portion of a loan under this chapter up to the amount of the actual loss suffered by a farmer caused by a disaster shall be at a rate prescribed by the Secretary, but not in excess of 8 percent per annum.</text> </subsection><subsection id="IDD85474EDE31948B1B9F5F8E5BA7F1BCE"><enum>(c)</enum><header>Interest subsidies for guaranteed loans</header><text>In the case of a guaranteed loan under this chapter, the Secretary may pay an interest subsidy to the lender for any portion of the loan up to the amount of the actual loss suffered by a farmer caused by a disaster.</text> </subsection><subsection id="IDEDE42540626D4E7C9358176317813883"><enum>(d)</enum><header>Time for repayment</header> <paragraph id="ID7A4BA3FAB8D347AA824CA2B24765114A"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), a loan under this chapter shall be repayable at such times as the Secretary may determine, considering the purpose of the loan and the nature and effect of the disaster, but not later than the maximum repayment period allowed for a loan for a similar purpose under chapters 1 and 2.</text> </paragraph><paragraph id="ID0C29A7DE601F4848A52CBB32B3DEDCD5"><enum>(2)</enum><header>Extended repayment period</header><text>The Secretary may, if the loan is for a purpose described in chapter 2 and the Secretary determines that the need of the loan applicant justifies the longer repayment period, make the loan repayable at the end of a period of more than 7 years, but not more than 20 years.</text> </paragraph></subsection><subsection id="ID473222B293EF4378A4EB00D101D5C5FC"><enum>(e)</enum><header>Security for loan</header> <paragraph id="ID4288B7FDC24E4C3A9392B7C782773D3B"><enum>(1)</enum><header>In general</header><text>A borrower of a loan made under this chapter shall secure the loan with the full personal liability of the borrower and such other security as the Secretary may prescribe.</text> </paragraph><paragraph id="ID10F894CBE05E4ED081117056285E7231"><enum>(2)</enum><header>Adequate security</header><text>Subject to paragraph (3), the Secretary may not make or guarantee a loan under this chapter unless the security for the loan is adequate to ensure repayment of the loan.</text> </paragraph><paragraph id="IDC7310FB29EC14BABBCBACC13F58C8323"><enum>(3)</enum><header>Inadequate security due to disaster</header><text>If adequate security for a loan under this chapter is not available because of a disaster, the Secretary shall accept as security any collateral that is available if the Secretary is confident that the collateral and the repayment ability of the farmer are adequate security for the loan.</text> </paragraph><paragraph id="IDC42D976DDEA7493D8A3A20A771B81DD8"><enum>(4)</enum><header>Valuation of farm assets</header><text>If a farm asset (including land, livestock, or equipment) is used as collateral to secure a loan applied for under this chapter and the governor of the State in which the farm is located requests assistance under this chapter or the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) for the portion of the State in which the asset is located, the Secretary shall establish the value of the asset as of the day before the occurrence of the natural or major disaster or emergency.</text> </paragraph></subsection><subsection id="ID87D801AA84414B7B8C0EA7FCFA013182"><enum>(f)</enum><header>Review of loan</header> <paragraph id="IDD38D281E52D84EE79636CDA2FCD800AF"><enum>(1)</enum><header>In general</header><text>In the case of a loan made, but not guaranteed, under section 3301, the Secretary shall review the loan 3 years after the loan is made, and every 2 years thereafter for the term of the loan.</text> </paragraph><paragraph id="ID8AC9A084D51E41B094AB0098DF67CAEA"><enum>(2)</enum><header>Termination of federal assistance</header><text>If, based on a review under paragraph (1), the Secretary determines that the borrower is able to obtain a loan from a non-Federal source at reasonable rates and terms, the borrower shall, on request by the Secretary, apply for, and accept, a non-Federal loan in a sufficient amount to repay the Secretary.</text> </paragraph></subsection></section><section id="ID8208C516533A4C0E97B272E12EA9860C"><enum>3304.</enum><header>Production losses</header> <subsection id="ID7074B2BD78034001B2782E9D040D55EE"><enum>(a)</enum><header>In general</header><text>The Secretary shall make or guarantee a loan under this chapter to an eligible farmer for production losses if a single enterprise that constitutes a basic part of the farming operation of the farmer has sustained at least a 30 percent loss in normal per acre or per animal production, or such lesser percentage as the Secretary may determine, as a result of a disaster.</text> </subsection><subsection id="IDBA89450D916A417FA65AA66B41C774EE"><enum>(b)</enum><header>Basis for percentage</header><text>A percentage loss under subsection (a) shall be based on the average monthly price in effect for the previous crop or calendar year, as appropriate.</text> </subsection><subsection id="ID00E3CE00B17D4D94882CA791F50D9F06"><enum>(c)</enum><header>Amount of loan</header><text>A loan under subsection (a) shall be in an amount that is equal to 80 percent, or such greater percentage as the Secretary may determine, of the total calculated actual production loss sustained by the farmer.</text> </subsection></section></chapter><chapter id="IDAEA40501107C4130861E1189DCC79443"><enum>4</enum><header>General farmer loan provisions</header> <section id="ID14A2C8A71198485F96BD59C7DEA8501B"><enum>3401.</enum><header>Agricultural Credit Insurance Fund</header><text display-inline="no-display-inline">The fund established pursuant to section 11(a) of the Bankhead-Jones Farm Tenant Act (60 Stat. 1075, chapter 964) shall be known as the Agricultural Credit Insurance Fund (referred to in this section as the <quote>Fund</quote>, unless the context otherwise requires) for the discharge of the obligations of the Secretary under agreements insuring loans under this subtitle and loans and mortgages insured under prior authority.</text> </section><section id="IDB3AD1F625B6345DE93AD0DBC81CBC510"><enum>3402.</enum><header>Guaranteed farmer loans</header> <subsection id="IDCA11BE759D544A4D966F2304C6555A44"><enum>(a)</enum><header>In general</header><text>The Secretary may provide financial assistance to a borrower for a purpose provided in this subtitle by guaranteeing a loan made by any Federal or State chartered bank, savings and loan association, cooperative lending agency, or other legally organized lending agency.</text> </subsection><subsection id="ID658FCDA7E836450080B3437180B83B1F"><enum>(b)</enum><header>Interest rate</header><text>The interest rate payable by a borrower on the portion of a guaranteed loan that is sold by a lender to the secondary market under this subtitle may be lower than the interest rate charged on the portion retained by the lender, but shall not exceed the average interest rate charged by the lender on loans made to farm borrowers.</text> </subsection><subsection id="IDC0FD6E81C9DB44E4AB5FD8FB57DD8854"><enum>(c)</enum><header>Fees</header><text>In the case of a loan guarantee on a loan made by a commercial or cooperative lender related to a loan made by the Secretary under section 3107—</text> <paragraph id="ID045F98178C39497FAB6C2493369AA159"><enum>(1)</enum><text>the Secretary shall not charge a fee to any person (including a lender); and</text> </paragraph><paragraph id="ID40C48116D5C741F29BAC8E34DB04C32E"><enum>(2)</enum><text>a lender may charge a loan origination and servicing fee in an amount not to exceed 1 percent of the amount of the loan.</text> </paragraph></subsection><subsection id="IDE846F91D0F804788B7E96616FEC3B25F"><enum>(d)</enum><header>Maximum guarantee of 90 percent</header><text>Except as provided in subsections (e) and (f), a loan guarantee under this subtitle shall be for not more than 90 percent of the principal and interest due on the loan.</text> </subsection><subsection id="IDADB478A9A1F44053AB03CA9884ADD3AF"><enum>(e)</enum><header>Refinanced loans guaranteed at 95 percent</header><text>The Secretary shall guarantee 95 percent of—</text> <paragraph id="ID262ADC09DF064CB4B2EEBABD63B4FADB"><enum>(1)</enum><text>in the case of a loan that solely refinances a direct loan made under this subtitle, the principal and interest due on the loan on the date of the refinancing; or</text> </paragraph><paragraph id="ID1DB9B3186B334DCABD8EB65149EBC3C4"><enum>(2)</enum><text>in the case of a loan that is used for multiple purposes, the portion of the loan that refinances the principal and interest due on a direct loan made under this subtitle that is outstanding on the date the loan is guaranteed.</text> </paragraph></subsection><subsection id="ID200DC428232D4DD99E802753033FA28B"><enum>(f)</enum><header>Beginning farmer loans guaranteed Up to 95 percent</header><text>The Secretary may guarantee not more than 95 percent of—</text> <paragraph id="ID7C4A7249EAC046E6843DC7872034492D"><enum>(1)</enum><text>a farm ownership loan for acquiring a farm to a borrower who is participating in the downpayment loan program under section 3107; or</text> </paragraph><paragraph id="ID4FB254023C00463297E43E7DDD9882E4"><enum>(2)</enum><text>an operating loan to a borrower who is participating in the downpayment loan program under section 3107 that is made during the period that the borrower has a direct loan outstanding under chapter 1 for acquiring a farm.</text> </paragraph></subsection><subsection id="IDb85d721339fa4b9184fd82b8201c2a2f"><enum>(g)</enum><header>Guarantee of loans made under State beginning farmer programs</header><text>The Secretary may guarantee under this subtitle a loan made under a State beginning farmer program, including a loan financed by the net proceeds of a qualified small issue agricultural bond for land or property described in section 144(a)(12)(B)(ii) of the Internal Revenue Code of 1986.</text> </subsection></section><section id="IDb786bfff4bfd47e490b55db837d454e2"><enum>3403.</enum><header>Provision of information to borrowers</header> <subsection id="id682FDDF642AF46938826EEB1D78A21CB"><enum>(a)</enum><header>Approval notification</header><text>The Secretary shall approve or disapprove an application for a loan or loan guarantee made under this subtitle, and notify the applicant of such action, not later than 60 days after the date on which the Secretary has received a complete application for the loan or loan guarantee.</text> </subsection><subsection id="IDD53A7857BF02448B9EB5AC9B3E58BCAF"><enum>(b)</enum><header>List of lenders</header><text>The Secretary shall make available to any farmer, on request, a list of lenders in the area that participate in guaranteed farmer program loan programs established under this subtitle, and other lenders in the area that express a desire to participate in the programs and that request inclusion on the list.</text> </subsection><subsection id="ID442c0e7f5376400096cff0457bb6f886"><enum>(c)</enum><header>Other information</header> <paragraph id="id7ED688B0555A4280BD068D56D93AA1BB"><enum>(1)</enum><header>In general</header><text>On the request of a borrower, the Secretary shall make available to the borrower—</text> <subparagraph id="IDbfc844a3c07d478585433656fdfec63d"><enum>(A)</enum><text>a copy of each document signed by the borrower;</text> </subparagraph><subparagraph id="ID70fbb355aca14a1fb232306345351e65"><enum>(B)</enum><text>a copy of each appraisal performed with respect to the loan; and</text> </subparagraph><subparagraph id="ID73107223b6d94fb084e36bf237500a06"><enum>(C)</enum><text>any document that the Secretary is required to provide to the borrower under any law in effect on the date of the request.</text> </subparagraph></paragraph><paragraph id="ID4f88ef9ff88d43be968bde47bf63bff4"><enum>(2)</enum><header>Rule of construction</header><text>Paragraph (1) shall not supersede any duty imposed on the Secretary by a law in effect on January 5, 1988, unless the duty directly conflicts with a duty under paragraph (1).</text> </paragraph></subsection></section><section id="ID2FD11BD364E44C9793F42582BBE2B0E8"><enum>3404.</enum><header>Notice of loan service programs</header> <subsection id="ID3FB3F7B4EE734B6480C094F3640E69AD"><enum>(a)</enum><header>Requirement</header><text>The Secretary shall provide notice by certified mail to each borrower who is at least 90 days past due on the payment of principal or interest on a loan made under this subtitle.</text> </subsection><subsection id="ID5D5BBE61377A44BCB37E008D41B60E04"><enum>(b)</enum><header>Contents</header><text>The notice required under subsection (a) shall—</text> <paragraph id="IDB9C10E00AEA344108A039E238DF53988"><enum>(1)</enum><text>include a summary of all primary loan service programs, homestead retention programs, debt settlement programs, and appeal procedures, including the eligibility criteria, and terms and conditions of the programs and procedures;</text> </paragraph><paragraph id="IDA00D4C2028F04888A52BF35F53A0A8B6"><enum>(2)</enum><text>include a summary of the manner in which the borrower may apply, and be considered, for all such programs, except that the Secretary shall not require the borrower to select among the programs or waive any right to be considered for any program carried out by the Secretary;</text> </paragraph><paragraph id="ID85BC5BC463DB45418742D39C10A40325"><enum>(3)</enum><text>advise the borrower regarding all filing requirements and any deadlines that must be met for requesting loan servicing;</text> </paragraph><paragraph id="IDCC01226EBA524341BF8ABEC048A7E8B9"><enum>(4)</enum><text>provide any relevant forms, including applicable response forms;</text> </paragraph><paragraph id="IDA01E0ECBDBFF4ED6A2B3E7E4A7EDB1D5"><enum>(5)</enum><text>advise the borrower that a copy of regulations is available on request; and</text> </paragraph><paragraph id="IDE24C3CC63B0F4D36818F08A4AFE66645"><enum>(6)</enum><text>be designed to be readable and understandable by the borrower.</text> </paragraph></subsection><subsection id="ID2BF39378569F4A3DAF91776A2ADCF8C7"><enum>(c)</enum><header>Contained in regulations</header><text>All notices required by this section shall be contained in the regulations issued to carry out this title.</text> </subsection><subsection id="ID45158FD4957042EB87BEAD0C30B8A9D8"><enum>(d)</enum><header>Timing</header><text>The notice described in subsection (b) shall be provided—</text> <paragraph id="IDA83CC33551744601BA468F90303AFB27"><enum>(1)</enum><text>at the time an application is made for participation in a loan service program;</text> </paragraph><paragraph id="ID2496A822D9704F1AA14B174B4BB8AF54"><enum>(2)</enum><text>on written request of the borrower; and</text> </paragraph><paragraph id="ID577C814190DA431C815D33AB9D758E0C"><enum>(3)</enum><text>before the earliest of the date of—</text> <subparagraph id="ID1731A452134149F28EB4782C6C560B2D"><enum>(A)</enum><text>initiating any liquidation;</text> </subparagraph><subparagraph id="ID7194504B0F0C4A44BEE521D54A4855BF"><enum>(B)</enum><text>requesting the conveyance of security property;</text> </subparagraph><subparagraph id="ID466C54A311834845B6D0BAB00DEDFE06"><enum>(C)</enum><text>accelerating the loan;</text> </subparagraph><subparagraph id="ID085097CA0B0D433EB4D9A6EDB3C6AB0F"><enum>(D)</enum><text>repossessing property;</text> </subparagraph><subparagraph id="ID8C4F1C67502C46BE8BB0D57FE15CC8A3"><enum>(E)</enum><text>foreclosing on property; or</text> </subparagraph><subparagraph id="ID79A0967864D643838AED8C42DBA9C232"><enum>(F)</enum><text>taking any other collection action.</text> </subparagraph></paragraph></subsection><subsection id="IDD31EB4CB97614E038BF516CAAB403A19"><enum>(e)</enum><header>Consideration of borrowers for loan service programs</header> <paragraph id="id5084F9487FE6479788F0373A6E03ED16"><enum>(1)</enum><header>In general</header><text>The Secretary shall consider a farmer program loan borrower for all loan service programs if, not later than 60 days after receipt of the notice described in subsection (b), the borrower requests the consideration in writing.</text> </paragraph><paragraph id="idD8D0E8FE70AD43A89BC3A73B2DDD5887"><enum>(2)</enum><header>Priority</header><text>In considering a borrower for a loan service program, the Secretary shall place the highest priority on the preservation of the farming operations of the borrower.</text> </paragraph></subsection></section><section id="ID3260C7540B3643B981893F796DB4999F"><enum>3405.</enum><header>Planting and production history guidelines</header> <subsection id="ID896DDE21ABC04E03A34E6733554203CF"><enum>(a)</enum><header>In general</header><text>The Secretary shall ensure that appropriate procedures, including, to the extent practicable, onsite inspections, or use of county or State yield averages, are used in calculating future yields for an applicant for a loan, when an accurate projection cannot be made because the past production history of the farmer has been affected by a natural or major disaster or emergency.</text> </subsection><subsection id="ID5CC7F34B27CE44D9A62654289E09B788"><enum>(b)</enum><header>Calculation of yields</header> <paragraph id="ID38FB83E387F942F9AA391371269E4F29"><enum>(1)</enum><header>In general</header><text>For the purpose of averaging the past yields of the farm of a farmer over a period of crop years to calculate the future yield of the farm under this title, the Secretary shall permit the farmer to exclude the crop year with the lowest actual or county average yield for the farm from the calculation, if the farmer was affected by a natural or major disaster or emergency during at least 2 of the crop years during the period.</text> </paragraph><paragraph id="ID6DD20928A9084F0AB5AB203727B1B947"><enum>(2)</enum><header>Affected by a natural or major disaster or emergency</header><text>A farmer was affected by a natural or major disaster or emergency under paragraph (1) if the Secretary finds that the farming operations of the farmer have been substantially affected by a natural or major disaster or emergency, including a farmer who has a qualifying loss but is not located in a designated or declared disaster area.</text> </paragraph><paragraph id="ID868D0BFE390B4E0E8445C17CD90897AA"><enum>(3)</enum><header>Application of subsection</header><text>This subsection shall apply to any action taken by the Secretary that involves—</text> <subparagraph id="ID2D468EEBBC0D4C2EB9590602A6FDFA25"><enum>(A)</enum><text>a loan under chapter 1 or 2; and</text> </subparagraph><subparagraph id="IDAC4A7021906F4566BE1774ABC6BB9011"><enum>(B)</enum><text>the yield of a farm of a farmer, including making a loan or loan guarantee, servicing a loan, or making a credit sale.</text> </subparagraph></paragraph></subsection></section><section id="IDA9E711E49D38487D83A8C2C77F912E6E"><enum>3406.</enum><header>Special conditions and limitations on loans</header> <subsection id="id0146F9D290144E55B070686ADF2990EE"><enum>(a)</enum><header>Applicant requirements</header><text display-inline="yes-display-inline">In connection with a loan made or guaranteed under this subtitle, the Secretary shall require—</text> <paragraph id="IDDF680AB7047A4CE3A3B934C36A3C71E5"><enum>(1)</enum><text>the applicant—</text> <subparagraph id="IDA287D4A34853422982ED080B50C1FAD8"><enum>(A)</enum><text>to certify in writing that, and the Secretary shall determine whether, the applicant is unable to obtain credit elsewhere; and</text> </subparagraph><subparagraph id="ID298A814246F94028B1C1929945F2BC25"><enum>(B)</enum><text>to furnish an appropriate written financial statement;</text> </subparagraph></paragraph><paragraph id="IDFA4BD6D7C17D46CBB02BDA3BB219C06A"><enum>(2)</enum><text>except for a guaranteed loan, an agreement by the borrower that if at any time it appears to the Secretary that the borrower may be able to obtain a loan from a production credit association, a Federal land bank, or other responsible cooperative or private credit source (or, in the case of a borrower under section 3106, the borrower may be able to obtain a loan under section 3101), at reasonable rates and terms for loans for similar purposes and periods of time, the borrower will, on request by the Secretary, apply for and accept the loan in a sufficient amount to repay the Secretary or the insured lender, or both, and to pay for any stock necessary to be purchased in a cooperative lending agency in connection with the loan;</text> </paragraph><paragraph id="ID04E6CA89E5924E3F8FEACF0E26FB77BD"><enum>(3)</enum><text>such provision for supervision of the operations of the borrower as the Secretary shall consider necessary to achieve the objectives of the loan and protect the interests of the United States; and</text> </paragraph><paragraph id="ID79F828F508BF46EEAE9B76795669509E"><enum>(4)</enum><text>the application of a person who is a veteran for a loan under chapter 1 or 2 to be given preference over a similar application from a person who is not a veteran if the applications are on file in a county or area office at the same time.</text> </paragraph></subsection><subsection id="ID62dfa46d66e1495eabd39c5e468b78b6"><enum>(b)</enum><header>Agency processing requirements</header> <paragraph id="ID5e3b4f293e3d44a3a3a0dbfa1c8bcdae"><enum>(1)</enum><header>Notifications</header> <subparagraph id="id70E82122EAAE4FA7BBA7561A0A2C8A06"><enum>(A)</enum><header>Incomplete application notification</header><text>If an application for a loan or loan guarantee under this subtitle (other than an operating loan or loan guarantee) is incomplete, the Secretary shall inform the applicant of the reasons the application is incomplete not later than 20 days after the date on which the Secretary has received the application.</text> </subparagraph><subparagraph id="id4EC6697A05AD442F99DB92A9F7758B98"><enum>(B)</enum><header>Operating loans</header> <clause id="id5AE7C9547E00420D82AC18C3EEC2ED41"><enum>(i)</enum><header>Additional information needed</header><text>Not later than 10 calendar days after the Secretary receives an application for an operating loan or loan guarantee, the Secretary shall notify the applicant of any information required before a decision may be made on the application.</text> </clause><clause id="id76591291D556481DBDD4B5623550C22E"><enum>(ii)</enum><header>Information not received</header><text>If, not later than 20 calendar days after the date a request is made pursuant to clause (i) with respect to an application, the Secretary has not received the information requested, the Secretary shall notify the applicant and the district office of the Farm Service Agency, in writing, of the outstanding information.</text> </clause></subparagraph><subparagraph id="IDd4ce7069b0ce4413ac444eb6b09530c7"><enum>(C)</enum><header>Request information</header> <clause id="IDd8ecbc060a7d41eb9c3b2ca96b6d9abe"><enum>(i)</enum><header>In general</header><text>On receipt of an application, the Secretary shall request from other parties such information as may be needed in connection with the application.</text> </clause><clause id="IDed87fb84147a49298429d8b2ee4d1376"><enum>(ii)</enum><header>Information from an agency of the Department</header><text>Not later than 15 calendar days after the date on which an agency of the Department receives a request for information made pursuant to subparagraph (A), the agency shall provide the Secretary with the requested information.</text> </clause></subparagraph></paragraph><paragraph id="ID9f21396caeb349d183008bedc1e83971"><enum>(2)</enum><header>Report of pending applications</header> <subparagraph id="ID28860dcc60424e4da13dfb0643831443"><enum>(A)</enum><header>In general</header><text>A county office shall notify the district office of the Farm Service Agency of each application for an operating loan or loan guarantee that is pending more than 45 days after receipt, and the reasons for which the application is pending.</text> </subparagraph><subparagraph id="ID8306e1e905ce46bd8e36359a1db707f9"><enum>(B)</enum><header>Action on pending applications</header><text>A district office that receives a notice provided under subparagraph (A) with respect to an application shall immediately take steps to ensure that final action is taken on the application not later than 15 days after the date of the receipt of the notice.</text> </subparagraph><subparagraph id="ID0c1fe72a8ffd4a319d26bac8f5c93a8b"><enum>(C)</enum><header>Pending application report</header><text>The district office shall report to the State office of the Farm Service Agency on each application for an operating loan or loan guarantee that is pending more than 45 days after receipt, and the reasons for which the application is pending.</text> </subparagraph><subparagraph id="ID8fe2b0706a304f77a2fad0c865d5f46f"><enum>(D)</enum><header>Report to Congress</header><text>Each month, the Secretary shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, on a State-by-State basis, as to each application for an operating loan or loan guarantee on which final action had not been taken within 60 calendar days after receipt by the Secretary, and the reasons for which final action had not been taken.</text> </subparagraph></paragraph><paragraph id="ID3af22ac900714470bd8858785cd23508"><enum>(3)</enum><header>Disapprovals</header> <subparagraph id="id3D765446A9BB495D89ABD983DA63AE2F"><enum>(A)</enum><header>In general</header><text>If an application for a loan or loan guarantee under this subtitle is disapproved by the Secretary, the Secretary shall state the reasons for the disapproval in the notice required under paragraph (1).</text> </subparagraph><subparagraph id="id8AF41087A762468F824989FD0C0B1FCA"><enum>(B)</enum><header>Disapproval due to lack of funds</header> <clause id="id8F4D8377D21A4AAF9D721FEC3B4AC466"><enum>(i)</enum><header>In general</header><text>Notwithstanding paragraph (1), each application for a loan or loan guarantee under section 3601(e), or for a loan under section 3501(a) or 3502(a), that is to be disapproved by the Secretary solely because the Secretary lacks the funds necessary to make the loan or guarantee shall not be disapproved but shall be placed in pending status.</text> </clause><clause id="id48AE7C6533A34A899BA5A93996C2F009"><enum>(ii)</enum><header>Reconsideration</header><text>The Secretary shall retain each pending application and reconsider the application beginning on the date that sufficient funds become available.</text> </clause><clause id="id9219080F190B48949120314096968C89"><enum>(iii)</enum><header>Notification</header><text>Not later than 60 days after funds become available regarding each pending application, the Secretary shall notify the applicant of the approval or disapproval of funding for the application.</text> </clause></subparagraph></paragraph><paragraph id="IDbd9fde792cab4ead9348e85f2e00c31d"><enum>(4)</enum><header>Approvals on appeal</header><text>If an application for a loan or loan guarantee under this subtitle is disapproved by the Secretary, but that action is subsequently reversed or revised as the result of an appeal within the Department or to the courts of the United States and the application is returned to the Secretary for further consideration, the Secretary shall act on the application and provide the applicant with notice of the action not later than 15 days after the date of return of the application to the Secretary.</text> </paragraph><paragraph id="id1E393A3FC4C54A79B691163220F57DA9"><enum>(5)</enum><header>Provision of proceeds</header> <subparagraph id="idFF25688874604CD193F5B0B26D1D8AE1"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), if an application for an insured loan under this title is approved by the Secretary, the Secretary shall provide the loan proceeds to the applicant not later than 15 days (or such longer period as the applicant may approve) after the application for the loan is approved by the Secretary.</text> </subparagraph><subparagraph id="idB1ED6946C3C24340AA36C5FDFC64D174"><enum>(B)</enum><header>Lack of funds</header><text>If the Secretary is unable to provide the loan proceeds to the applicant during the 15-day period described in subparagraph (A) because sufficient funds are not available to the Secretary for that purpose, the Secretary shall provide the loan proceeds to the applicant as soon as practicable (but in no event later than 15 days unless the applicant agrees to a longer period) after sufficient funds for that purpose become available to the Secretary.</text> </subparagraph></paragraph></subsection></section><section id="IDDD9711C142B140B693029161F5D8E381"><enum>3407.</enum><header>Graduation of borrowers</header> <subsection id="IDB1912AEAD7D247E392BA3A75EDAF46ED"><enum>(a)</enum><header>Graduation of Seasoned Direct Loan Borrowers to the Loan Guarantee Program</header> <paragraph id="idDC64BAFAFC484491B3F1F18A28D686A9"><enum>(1)</enum><header>Review of loans</header> <subparagraph id="id060B5AC0CA7548819483C8340AD1B04B"><enum>(A)</enum><header>In general</header><text>The Secretary, or a contracting third party, shall annually review under section 3420 the loans of each seasoned direct loan borrower.</text> </subparagraph><subparagraph id="idB4EE2774024E40DBB0962290EF5E1F1B"><enum>(B)</enum><header>Assistance</header><text>If, based on the review, it is determined that a borrower would be able to obtain a loan, guaranteed by the Secretary, from a commercial or cooperative lender at reasonable rates and terms for loans for similar purposes and periods of time, the Secretary shall assist the borrower in applying for the commercial or cooperative loan.</text> </subparagraph></paragraph><paragraph id="ID65E89C518B8741EF861B6AC1B790AD04"><enum>(2)</enum><header>Prospectus</header> <subparagraph id="id2BD02786417E4D0CA7B37BD9EE930AA8"><enum>(A)</enum><header>In general</header><text>In accordance with section 3422, the Secretary shall prepare a prospectus on each seasoned direct loan borrower determined eligible to obtain a guaranteed loan.</text> </subparagraph><subparagraph id="idD8B4DC2CFF984FDDA8777D338F83AA5C"><enum>(B)</enum><header>Requirements</header><text>The prospectus shall contain a description of the amounts of the loan guarantee and interest assistance that the Secretary will provide to the seasoned direct loan borrower to enable the seasoned direct loan borrower to carry out a financially viable farming plan if a guaranteed loan is made.</text> </subparagraph></paragraph><paragraph id="IDFCA5D6FC7DAF46C59383CEE5D80ACF22"><enum>(3)</enum><header>Verification</header> <subparagraph id="ID8C997BF9679244E5BE30A3C7CC227237"><enum>(A)</enum><header>In general</header><text>The Secretary shall provide a prospectus of a seasoned direct loan borrower to each approved lender whose lending area includes the location of the seasoned direct loan borrower.</text> </subparagraph><subparagraph id="IDE27C69518282465EB39D40D2C4DA511F"><enum>(B)</enum><header>Notification</header><text>The Secretary shall notify each borrower of a loan that a prospectus has been provided to a lender under subparagraph (A).</text> </subparagraph><subparagraph id="ID4FBDEE2B8737498BA505EB4E8CDEC9F5"><enum>(C)</enum><header>Credit extended</header><text>If the Secretary receives an offer from an approved lender to extend credit to the seasoned direct loan borrower under terms and conditions contained in the prospectus, the seasoned direct loan borrower shall not be eligible for a loan from the Secretary under chapter 1 or 2, except as otherwise provided in this section.</text> </subparagraph></paragraph><paragraph id="ID9F1FA97F75234EC6ACFC2FF54862685F"><enum>(4)</enum><header>Insufficient assistance or offers</header><text>If the Secretary is unable to provide loan guarantees and, if necessary, interest assistance to the seasoned direct loan borrower under this section in amounts sufficient to enable the seasoned direct loan borrower to borrow from commercial sources the amount required to carry out a financially viable farming plan, or if the Secretary does not receive an offer from an approved lender to extend credit to a seasoned direct loan borrower under the terms and conditions contained in the prospectus, the Secretary shall make a loan to the seasoned direct loan borrower under chapter 1 or 2, whichever is applicable.</text> </paragraph><paragraph id="ID1A83E1F697244359B6DB2E15C4350289"><enum>(5)</enum><header>Interest rate reductions</header><text>To the extent necessary for the borrower to obtain a loan, guaranteed by the Secretary, from a commercial or cooperative lender, the Secretary shall provide interest rate reductions as provided for under section 3413.</text> </paragraph></subsection><subsection id="ID13ad024263354a8e89af39f5a810b21b"><enum>(b)</enum><header>Transition to private commercial or other sources of credit</header> <paragraph id="IDe10f51c422e54f03b3083142c506e9ae"><enum>(1)</enum><header>In general</header><text>In making an operating or ownership loan, the Secretary shall establish a plan and promulgate regulations (including performance criteria) that promote the goal of transitioning borrowers to private commercial credit and other sources of credit in the shortest period of time practicable.</text> </paragraph><paragraph id="IDd9f3eeb131754198967b3192f11d7738"><enum>(2)</enum><header>Coordination</header><text>In carrying out this section, the Secretary shall integrate and coordinate the transition policy described in subsection (a) with—</text> <subparagraph id="ID0d464bc4f80f4234888cacc456885305"><enum>(A)</enum><text>the borrower training program established by section 3419;</text> </subparagraph><subparagraph id="IDd94e6153f5e841b483dc543eb851118c"><enum>(B)</enum><text>the loan assessment process established by section 3420;</text> </subparagraph><subparagraph id="IDcc3470795c15457db42ba4bf61548b85"><enum>(C)</enum><text>the supervised credit requirement established by section 3421;</text> </subparagraph><subparagraph id="ID7b06a882cd154b94af80d321b4d882a9"><enum>(D)</enum><text>the market placement program established by section 3422; and</text> </subparagraph><subparagraph id="ID8cf2ff0253ca46d5b82164e9f760b95a"><enum>(E)</enum><text>other appropriate programs and authorities, as determined by the Secretary.</text> </subparagraph></paragraph></subsection><subsection id="IDc7005071f1474f729d9e3655c49e8ed5"><enum>(c)</enum><header>Graduation of borrowers with operating loans or guarantees to private commercial credit</header><text>The Secretary shall establish a plan, in coordination with activities under sections 3419 through 3422, to encourage each borrower with an outstanding loan under this chapter, or with respect to whom there is an outstanding guarantee under this chapter, to graduate to private commercial or other sources of credit.</text> </subsection></section><section id="ID597a94de4e544b6aae6ae26647bd9f04"><enum>3408.</enum><header>Debt adjustment and credit counseling</header><text display-inline="no-display-inline">In carrying out this subtitle, the Secretary may—</text> <paragraph id="IDe031f746fac14e539b535d7db4bbe274"><enum>(1)</enum><text>provide voluntary debt adjustment assistance between—</text> <subparagraph id="ID165b5bdd13854c739a60c0550d8350f3"><enum>(A)</enum><text>farmers; and</text> </subparagraph><subparagraph id="ID7ac53d3e3e8348f48dba0a98c0195731"><enum>(B)</enum><text>the creditors of the farmers;</text> </subparagraph></paragraph><paragraph id="IDbb39bd117efb483a89115629ceec1e43"><enum>(2)</enum><text>cooperate with State, territorial, and local agencies and committees engaged in the debt adjustment; and</text> </paragraph><paragraph id="ID9d08de01dfcf4babb77ed3520bc04bc5"><enum>(3)</enum><text>give credit counseling.</text> </paragraph></section><section id="IDE891CE56322F49C8984956404280BD5B"><enum>3409.</enum><header>Security servicing</header> <subsection id="IDFBC6520F9473411381B57E3E02D6563F"><enum>(a)</enum><header>Sale of property</header> <paragraph id="ID639BDFF334EB4F6A81A06D953ED9FDA1"><enum>(1)</enum><header>In general</header><text>Subject to this subsection and subsection (e)(1), the Secretary shall offer to sell real property that is acquired by the Secretary under this subtitle using the following order and method of sale:</text> <subparagraph id="IDF10A3C3BE1BB4F2E916D469F16C645DE"><enum>(A)</enum><header>Advertisement</header><text>Not later than 15 days after acquiring real property, the Secretary shall publicly advertise the property for sale.</text> </subparagraph><subparagraph id="ID65A25DA4524843D09A2B71437C42869D"><enum>(B)</enum><header>Qualified beginning farmer</header> <clause id="ID9F458CE2106148C9A70D46F5DEAC1CAE"><enum>(i)</enum><header>In general</header><text>Not later than 75 days after acquiring real property, the Secretary shall offer to sell the property to a qualified beginning farmer or a socially disadvantaged farmer at current market value based on a current appraisal.</text> </clause><clause id="ID75A46452500C4C8A9125EC2C2564BB2B"><enum>(ii)</enum><header>Random selection</header><text>If more than 1 qualified beginning farmer or socially disadvantaged farmer offers to purchase the property, the Secretary shall select between the qualified applicants on a random basis.</text> </clause><clause id="ID0E3B49D869D642D7922B3B9443F963B1"><enum>(iii)</enum><header>Appeal of random selection</header><text>A random selection or denial by the Secretary of a qualified beginning farmer or a socially disadvantaged farmer for farm inventory property under this subparagraph shall be final and not administratively appealable.</text> </clause></subparagraph><subparagraph id="ID454DB2FF55294F3BA6DAAFBB712C37C5"><enum>(C)</enum><header>Public sale</header><text>If no acceptable offer is received from a qualified beginning farmer or a socially disadvantaged farmer under subparagraph (B) not later than 135 days after acquiring the real property, the Secretary shall, not later than 30 days after the 135-day period, sell the property after public notice at a public sale, and, if no acceptable bid is received, by negotiated sale, at the best price obtainable.</text> </subparagraph></paragraph><paragraph id="ID6D2A49103F1F47A0B270CD2AAD62D5A3"><enum>(2)</enum><header>Interest</header> <subparagraph id="ID32E54598CD034FCE865D0DC46F8AB512"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), any conveyance of real property under this subsection shall include all of the interest of the United States in the property, including mineral rights.</text> </subparagraph><subparagraph id="ID877BB618B75C462FBAE15EE0B9D3733D"><enum>(B)</enum><header>Conservation</header><text>The Secretary may for conservation purposes grant or sell an easement, restriction, development right, or similar legal right to real property to a State, a political subdivision of a State, or a private nonprofit organization separately from the underlying fee or other rights to the property owned by the United States.</text> </subparagraph></paragraph><paragraph id="IDB49C0310921D4928864DA44749C43AA8"><enum>(3)</enum><header>Other law</header><text>Subtitle I of title 40, United States Code, and title III of the <act-name parsable-cite="FPASA">Federal Property and Administrative Services Act of 1949</act-name> (41 U.S.C. 251 et seq.) shall not apply to any exercise of authority under this subtitle.</text> </paragraph><paragraph id="IDD5FCC20ACB3841E4B0AD40CC8AEAC445"><enum>(4)</enum><header>Lease of property</header> <subparagraph id="ID202F240FEE9C4E19AE6DC7AED6B74115"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), the Secretary may not lease any real property acquired under this subtitle.</text> </subparagraph><subparagraph id="ID32726D6095084DC1BB51BC21E5CD6757"><enum>(B)</enum><header>Exception</header> <clause id="ID4FE240C9D8C04F2F8598E8D64103F231"><enum>(i)</enum><header>Qualified beginning farmer or socially disadvantaged farmer</header><text>The Secretary may lease or contract to sell to a qualified beginning farmer or a socially disadvantaged farmer a farm acquired by the Secretary under this subtitle if the qualified beginning farmer qualifies for a credit sale or direct farm ownership loan under chapter 1 but credit sale authority for loans or direct farm ownership loan funds, respectively, are not available.</text> </clause><clause id="ID0EB606F50B9B45F3BB0C7E38E6AB48D8"><enum>(ii)</enum><header>Term</header><text>The term of a lease or contract to sell to a qualified beginning farmer or a socially disadvantaged farmer under clause (i) shall be until the earlier of—</text> <subclause id="IDB0BBD272920C4E49963B3B6FFB4A67CA"><enum>(I)</enum><text>the date that is 18 months after the date of the lease or sale; or</text> </subclause><subclause id="ID0B27115C1FE94AA09C456CEF04D262F1"><enum>(II)</enum><text>the date that direct farm ownership loan funds or credit sale authority for loans becomes available to the qualified beginning farmer or socially disadvantaged farmer.</text> </subclause></clause><clause id="ID8C5A3F5F79AC441DB0FBD211EEB5EFC9"><enum>(iii)</enum><header>Income-producing capability</header><text>In determining the rental rate on real property leased under this subparagraph, the Secretary shall consider the income-producing capability of the property during the term that the property is leased.</text> </clause></subparagraph></paragraph><paragraph id="ID78EDEB6B9DA84D5A9E662E53454FA819"><enum>(5)</enum><header>Expedited determination</header> <subparagraph id="ID82CCC0345D704138806BCA63130BD061"><enum>(A)</enum><header>In general</header><text>On the request of an applicant, not later than 30 days after denial of the application, the appropriate State director shall provide an expedited review and determination of whether the applicant is a qualified beginning farmer or a socially disadvantaged farmer for the purpose of acquiring farm inventory property.</text> </subparagraph><subparagraph id="IDA8B1C051EEFC49C6940FEA516C957854"><enum>(B)</enum><header>Appeal</header><text>The determination of a State Director under subparagraph (A) shall be final and not administratively appealable.</text> </subparagraph><subparagraph id="IDF59136ED75554E7386ECEE9F0A7BD43A"><enum>(C)</enum><header>Effects of determinations</header> <clause id="IDC33C0151BE1944AF8D60EFCF461012A2"><enum>(i)</enum><header>In general</header><text>The Secretary shall maintain statistical data on the number and results of determinations made under subparagraph (A) and the effect of the determinations on—</text> <subclause id="ID2F1B0B1683A64D12ABB4C3D6C86E82CC"><enum>(I)</enum><text>selling farm inventory property to qualified beginning farmers or socially disadvantaged farmers; and</text> </subclause><subclause id="IDC1BBC944AB6741B3BD2136EF8AF988E7"><enum>(II)</enum><text>disposing of real property in inventory.</text> </subclause></clause><clause id="ID5F43FEF4FF1C42A29F19A1EFD6635846"><enum>(ii)</enum><header>Notification</header><text>The Secretary shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate if the Secretary determines that the review process under subparagraph (A) is adversely affecting the selling of farm inventory property to qualified beginning farmers or socially disadvantaged farmers or the disposing of real property in inventory.</text> </clause></subparagraph></paragraph></subsection><subsection id="IDB927E7FD705B4471A34AAD9E3EF2EEA2"><enum>(b)</enum><header>Road and utility easements and condemnations</header><text>In the case of any real property administered under this subtitle, the Secretary may grant or sell easements or rights-of-way for roads, utilities, and other appurtenances that are not inconsistent with the public interest.</text> </subsection><subsection id="ID653DE6E31EE947E8A3B21EBD677A8688"><enum>(c)</enum><header>Sale or lease of farmland</header> <paragraph id="IDE8A83E07DC8C4EDB823A1736EDDB562F"><enum>(1)</enum><header>Disposition of real property on Indian reservations</header> <subparagraph id="ID5DE13EA23A8D4ECE871BC2D121795AAD"><enum>(A)</enum><header>Definition of Indian reservation</header><text>In this paragraph, the term <term>Indian reservation</term> means—</text> <clause id="ID27452B50F4AF4C86965EFECBB8EC792E"><enum>(i)</enum><text>all land located within the limits of any Indian reservation under the jurisdiction of the United States, notwithstanding the issuance of any patent, and, including any right-of-way running through the reservation;</text> </clause><clause id="IDCCF1FA6EAD5D41558F7101DA1ACF62A6"><enum>(ii)</enum><text>trust or restricted land located within the boundaries of a former reservation of an Indian tribe in the State of Oklahoma; or</text> </clause><clause id="IDC0152B1339104299AC6A88FA5823BD3A"><enum>(iii)</enum><text>all Indian allotments the Indian titles to which have not been extinguished if the allotments are subject to the jurisdiction of an Indian tribe.</text> </clause></subparagraph><subparagraph id="ID214FA9AED54C40C58357DCE482937253"><enum>(B)</enum><header>Disposition</header><text>Except as provided in paragraph (3), the Secretary shall dispose of or administer the property as provided in this paragraph when—</text> <clause id="IDD5BDF3BCD2C14FE2A0B38F9B2AA30205"><enum>(i)</enum><text>the Secretary acquires property under this subtitle that is located within an Indian reservation; and</text> </clause><clause id="ID8131910CA89348C29A48350484500B8C"><enum>(ii)</enum><text>the borrower-owner is the Indian tribe that has jurisdiction over the reservation in which the real property is located or the borrower-owner is a member of the Indian tribe;</text> </clause></subparagraph><subparagraph id="IDE2AE6E2C8F154DA7A9424AC6A84C70E8"><enum>(C)</enum><header>Priority</header><text>Not later than 90 days after acquiring the property, the Secretary shall afford an opportunity to purchase or lease the real property in accordance with the order of priority established under subparagraph (D) to the Indian tribe having jurisdiction over the Indian reservation within which the real property is located or, if no order of priority is established by the Indian tribe under subparagraph (D), in the following order:</text> <clause id="ID1A5EB77BCB2747A0B0EF0405C3D58F71"><enum>(i)</enum><text>An Indian member of the Indian tribe that has jurisdiction over the reservation within which the real property is located.</text> </clause><clause id="ID0DD539FE91604A82BA95BDE77639E54B"><enum>(ii)</enum><text>An Indian corporate entity.</text> </clause><clause id="IDED595EF7B6FD4F2BAF62DE0834ECCFDA"><enum>(iii)</enum><text>The Indian tribe.</text> </clause></subparagraph><subparagraph id="ID09876FC1C232441893CEF3E006AF4677"><enum>(D)</enum><header>Revision of priority and restriction of eligibility</header><text>The governing body of any Indian tribe having jurisdiction over an Indian reservation may revise the order of priority provided in subparagraph (C) under which land located within the reservation shall be offered for purchase or lease by the Secretary under subparagraph (C) and may restrict the eligibility for the purchase or lease to—</text> <clause id="ID09397739420742DEADA00BECE3C50C88"><enum>(i)</enum><text>persons who are members of the Indian tribe;</text> </clause><clause id="IDCED687B6107B4D7D97A2CBC7956F92C8"><enum>(ii)</enum><text>Indian corporate entities that are authorized by the Indian tribe to lease or purchase land within the boundaries of the reservation; or</text> </clause><clause id="ID801FB8E91CE34C3A80B80C4EE515FCE9"><enum>(iii)</enum><text>the Indian tribe itself.</text> </clause></subparagraph><subparagraph id="IDDA14F3C49DC2413CB991175B619D0A04"><enum>(E)</enum><header>Transfer of property to secretary of the interior</header> <clause id="id97D8FEE2C86E4B50A18BE44C9D7E1CDA"><enum>(i)</enum><header>In general</header><text>If real property described in subparagraph (B) is not purchased or leased under subparagraph (C) and the Indian tribe having jurisdiction over the reservation within which the real property is located is unable to purchase or lease the real property, the Secretary shall transfer the real property to the Secretary of the Interior who shall administer the real property as if the real property were held in trust by the United States for the benefit of the Indian tribe.</text> </clause><clause id="idC7C390781040449E9663BB49CF00293A"><enum>(ii)</enum><header>Use of rental income</header><text>From the rental income derived from the lease of the transferred real property, and all other income generated from the transferred real property, the Secretary of the Interior shall pay the State, county, municipal, or other local taxes to which the transferred real property was subject at the time of acquisition by the Secretary, until the earlier of—</text> <subclause id="ID09BE2B57070D4B3EB98DAC9F0DC73FEB"><enum>(I)</enum><text>the expiration of the 4-year period beginning on the date on which the real property is so transferred; or</text> </subclause><subclause id="IDA729F2A6EA774C3CBC47961AF4B18980"><enum>(II)</enum><text>such time as the land is transferred into trust pursuant to subparagraph (H).</text> </subclause></clause></subparagraph><subparagraph id="ID979F6E3C04734B37A7B201EF3A3EF98B"><enum>(F)</enum><header>Responsibilities of secretaries</header><text>If any real property is transferred to the Secretary of the Interior under subparagraph (E)—</text> <clause id="IDFEF4FDC6F45D4490BF5120E25FD79B56"><enum>(i)</enum><text>the Secretary of Agriculture shall have no further responsibility under this title for—</text> <subclause id="IDF207D5E5BC714F9F9EE7164FE6ED8983"><enum>(I)</enum><text>collection of any amounts with regard to the farm program loan that had been secured by the real property;</text> </subclause><subclause id="ID5AB1A37FB14945CA9B9A3E3FC3BEB8F3"><enum>(II)</enum><text>any lien arising out of the loan transaction; or</text> </subclause><subclause id="ID312D9B4CBDD44A7FB6F3E4085C402AAB"><enum>(III)</enum><text>repayment of any amount with regard to the loan transaction or lien to the Treasury of the United States; and</text> </subclause></clause><clause id="IDA41D475EFC4F446B9E0C097712DACBE8"><enum>(ii)</enum><text>the Secretary of the Interior shall succeed to all right, title, and interest of the Secretary of Agriculture in the real estate arising from the farm program loan transaction, including the obligation to remit to the Treasury of the United States, in repayment of the original loan, the amounts provided in subparagraph (G).</text> </clause></subparagraph><subparagraph id="IDEA56E6E191C94280A4BB9F6E7FB68F1D"><enum>(G)</enum><header>Use of income</header><text>After the payment of any taxes that are required to be paid under subparagraph (E)(ii), all remaining rental income derived from the lease of the real property transferred to the Secretary of the Interior under subparagraph (E)(i), and all other income generated from the real property transferred to the Secretary of the Interior under that subparagraph, shall be deposited as miscellaneous receipts in the Treasury of the United States until the amount deposited is equal to the lesser of—</text> <clause id="ID5B5B884D60314F74ABC8D1440F2B90DD"><enum>(i)</enum><text>the amount of the outstanding lien of the United States against the real property, as of the date the real property was acquired by the Secretary;</text> </clause><clause id="IDF6D846B07ACA4D7DB04939E53ED4246D"><enum>(ii)</enum><text>the fair market value of the real property, as of the date of the transfer to the Secretary of the Interior; or</text> </clause><clause id="IDC3C03B29514347BF972B4509204E05AD"><enum>(iii)</enum><text>the capitalized value of the real property, as of the date of the transfer to the Secretary of the Interior.</text> </clause></subparagraph><subparagraph id="ID052F94DEFCFF4602A6F8D21A01709B04"><enum>(H)</enum><header>Holding of title in trust</header><text>If the total amount that is required to be deposited under subparagraph (G) with respect to any real property has been deposited into the Treasury of the United States, title to the real property shall be held in trust by the United States for the benefit of the Indian tribe having jurisdiction over the Indian reservation within which the real property is located.</text> </subparagraph><subparagraph id="ID3774E33EC14543FFA76017A80DAC86CC"><enum>(I)</enum><header>Payment of remaining lien or fair market value of property</header> <clause id="id49C908EC36014124B8B9E8124C69DBF4"><enum>(i)</enum><header>In general</header><text>Notwithstanding any other subparagraph of this paragraph, the Indian tribe having jurisdiction over the Indian reservation within which the real property described in subparagraph (B) is located may, at any time after the real property has been transferred to the Secretary of the Interior under subparagraph (E), offer to pay the remaining amount on the lien or the fair market value of the real property, whichever is less.</text> </clause><clause id="id97783C7A428E407AAE80BC16A67CFCEF"><enum>(ii)</enum><header>Effect of payment</header><text>On payment of the amount, title to the real property shall be held by the United States in trust for the tribe and the trust or restricted land that has been acquired by the Secretary under foreclosure or voluntary transfer under a loan made or insured under this subtitle and transferred to an Indian person, entity, or tribe under this paragraph shall be considered to have never lost trust or restricted status.</text> </clause></subparagraph><subparagraph id="ID99933CF82C4A41FF969DA508B6869829"><enum>(J)</enum><header>Applicability</header> <clause id="id2190931F1BBE4CADBBDF266B66091A2C"><enum>(i)</enum><header>In general</header><text>This paragraph shall apply to all land in the land inventory established under this subtitle (as of November 28, 1990) that was (immediately prior to the date) owned by an Indian borrower-owner described in subparagraph (B) and that is situated within an Indian reservation, regardless of the date of foreclosure or acquisition by the Secretary.</text> </clause><clause id="id7946AC8E05034B27A551BB174342B231"><enum>(ii)</enum><header>Opportunity to purchase or lease</header><text>The Secretary shall afford an opportunity to an Indian person, entity, or tribe to purchase or lease the real property as provided in subparagraph (C).</text> </clause><clause id="id18ACE48998D145E2A14290E86918C7A5"><enum>(iii)</enum><header>Transfer</header><text>If the right is not exercised or no expression of intent to exercise the right is received within 180 days after November 28, 1990, the Secretary shall transfer the real property to the Secretary of the Interior as provided in subparagraph (E).</text> </clause></subparagraph></paragraph><paragraph id="ID6A54CDB804AF457A8AABFB859BEEBC26"><enum>(2)</enum><header>Additional rights</header><text>The rights provided in this subsection shall be in addition to any right of first refusal under the law of the State in which the property is located.</text> </paragraph><paragraph id="IDCC0D8F23BD8A455798B8F573119F5B30"><enum>(3)</enum><header>Disposition of real property on indian reservations after procedures exhausted</header> <subparagraph id="ID2BEF2D7494BB4F6187CC3E7037ED46A0"><enum>(A)</enum><header>In general</header><text>The Secretary shall dispose of or administer real property described in paragraph (1)(B) only as provided in paragraph (1), as modified by this paragraph, if—</text> <clause id="IDECC4316838F041F68809394EC4C3583D"><enum>(i)</enum><text>the real property described in paragraph (1)(B) is located within an Indian reservation;</text> </clause><clause id="ID07D4393D2E2D4C3FB97CF7AC8E65F900"><enum>(ii)</enum><text>the borrower-owner is an Indian tribe that has jurisdiction over the reservation in which the real property is located or the borrower-owner is a member of an Indian tribe;</text> </clause><clause id="IDC0AFF533998A4459B423B9F41EBAF2CB"><enum>(iii)</enum><text>the borrower-owner has obtained a loan made or guaranteed under this title; and</text> </clause><clause id="ID8909927F61A4483D92C819E3EA65D775"><enum>(iv)</enum><text>the borrower-owner and the Secretary have exhausted all of the procedures provided for in this title to permit a borrower-owner to retain title to the real property, so that it is necessary for the borrower-owner to relinquish title.</text> </clause></subparagraph><subparagraph id="ID74330C7EE49043BFB95FB07CC854C970"><enum>(B)</enum><header>Notice of right to convey property</header><text>The Secretary shall provide the borrower-owner of real property that is described in subparagraph (A) with written notice of—</text> <clause id="IDAD25F23E95964BF28440FC4FE60DD194"><enum>(i)</enum><text>the right of the borrower-owner to voluntarily convey the real property to the Secretary; and</text> </clause><clause id="ID4FBB99E21C5E49B68E0237D61CD823C1"><enum>(ii)</enum><text>the fact that real property so conveyed will be placed in the inventory of the Secretary.</text> </clause></subparagraph><subparagraph id="IDF99D538CC0C240C49BD144597E1F657B"><enum>(C)</enum><header>Notice of rights and protections</header><text>The Secretary shall provide the borrower-owner of the real property with written notice of the rights and protections provided under this title to the borrower-owner, and the Indian tribe that has jurisdiction over the reservation in which the real property is located, from foreclosure or liquidation of the real property, including written notice—</text> <clause id="IDDDDB8D59F35842C6A62D89312A7C1635"><enum>(i)</enum><text>of paragraph (1), this paragraph, and subsection (e)(3);</text> </clause><clause id="ID5E6B990DC2EF49BFB4B1172AD2BE8B6F"><enum>(ii)</enum><text>if the borrower-owner does not voluntarily convey the real property to the Secretary, that—</text> <subclause id="IDA5E3F50C106441B6A3275CA82D56C58A"><enum>(I)</enum><text>the Secretary may foreclose on the property;</text> </subclause><subclause id="ID3E751272EA244AE8831611EDF5E6B926"><enum>(II)</enum><text>in the event of foreclosure, the property will be offered for sale;</text> </subclause><subclause id="ID01BAC61FB54A4AB695E03349A98C963C"><enum>(III)</enum><text>the Secretary shall offer a bid for the property that is equal to the fair market value of the property or the outstanding principal and interest of the loan, whichever is higher;</text> </subclause><subclause id="ID87C751E77F3C4923A7BF7FD6C5CE0949"><enum>(IV)</enum><text>the property may be purchased by another party; and</text> </subclause><subclause id="ID3AAF83AC26D44A5BB9A526598CB22C91"><enum>(V)</enum><text>if the property is purchased by another party, the property will not be placed in the inventory of the Secretary and the borrower-owner will forfeit the rights and protections provided under this title; and</text> </subclause></clause><clause id="IDDFB6A9E3AAD04663A47DAEF545BFE857"><enum>(iii)</enum><text>of the opportunity of the borrower-owner to consult with the Indian tribe that has jurisdiction over the reservation in which the real property is located or counsel to determine if State or tribal law provides rights and protections that are more beneficial than the rights and protections provided the borrower-owner under this title.</text> </clause></subparagraph><subparagraph id="IDA19619BA25214154BEA79660C298682D"><enum>(D)</enum><header>Acceptance of voluntary conveyance</header> <clause id="ID573327BB8BF449F485B1BBAD9356BD61"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), the Secretary shall accept the voluntary conveyance of real property described in subparagraph (A).</text> </clause><clause id="ID03DB3288074943AA82E20DDEA85D1C52"><enum>(ii)</enum><header>Hazardous substances</header><text>If a hazardous substance (as defined in section 101(14) of the <act-name parsable-cite="CERCL">Comprehensive Environmental Response, Compensation, and Liability Act of 1980</act-name> (42 U.S.C. 9601(14))) is located on the property and the Secretary takes remedial action to protect human health or the environment if the property is taken into inventory, the Secretary shall accept the voluntary conveyance of the property only if the Secretary determines that the conveyance is in the best interests of the Federal Government.</text> </clause></subparagraph><subparagraph id="ID8897C35E72A24B0BB323D4E35690A51E"><enum>(E)</enum><header>Foreclosure procedures</header> <clause id="ID2999497D6E2A4CA6BE290EBAB0747E7B"><enum>(i)</enum><header>Notice to borrower</header><text>If an Indian borrower-owner does not voluntarily convey to the Secretary real property described in subparagraph (A), not less than 30 days before a foreclosure sale of the property, the Secretary shall provide the Indian borrower-owner with the option of—</text> <subclause id="ID8D7AA95E4154447C9EF90A06A3E1BC64"><enum>(I)</enum><text>requiring the Secretary to assign the loan and security instruments to the Secretary of the Interior, if the Secretary of the Interior agrees to an assignment releasing the Secretary of Agriculture from all further responsibility for collection of any amounts with regard to the loan secured by the real property; or</text> </subclause><subclause id="ID1C1FC63D6C924D78A2E120FA39D18FB6"><enum>(II)</enum><text>requiring the Secretary to assign the loan and security instruments to the tribe having jurisdiction over the reservation in which the real property is located, if the tribe agrees to assume the loan under the terms specified in clause (iii).</text> </subclause></clause><clause id="ID9D164932FC024368ACEB11AD3DF815A3"><enum>(ii)</enum><header>Notice to tribe</header><text>If an Indian borrower-owner does not voluntarily convey to the Secretary real property described in subparagraph (A), not less than 30 days before a foreclosure sale of the property, the Secretary shall provide written notice to the Indian tribe that has jurisdiction over the reservation in which the real property is located of—</text> <subclause id="ID773C7310E6D34E6DB37211966FE0141F"><enum>(I)</enum><text>the sale;</text> </subclause><subclause id="IDB6F55E589ECC428FAF638FF655707CC8"><enum>(II)</enum><text>the fair market value of the property; and</text> </subclause><subclause id="ID0C14DA03FD5245C390F9BE685BD7E6CD"><enum>(III)</enum><text>the requirements of this paragraph.</text> </subclause></clause><clause id="IDF912F1A78EEE4A6089A705E507BED975"><enum>(iii)</enum><header>Assumed loans</header><text>If an Indian tribe assumes a loan under clause (i)—</text> <subclause id="ID1E1BAE8DEE43415FB6E5626CA9E44A52"><enum>(I)</enum><text>the Secretary shall not foreclose the loan because of any default that occurred prior to the date of the assumption;</text> </subclause><subclause id="ID8B090071E3CC42CFB18B3F91DAA2B0A9"><enum>(II)</enum><text>the loan shall be for the lesser of the outstanding principal and interest of the loan or the fair market value of the property; and</text> </subclause><subclause id="IDADA3B1F980344716B416C51C084D4D49"><enum>(III)</enum><text>the loan shall be treated as though the loan was made under Public Law 91–229 (25 U.S.C. 488 et seq.).</text> </subclause></clause></subparagraph><subparagraph id="ID66262E1EFE0A4818BFB4C122C8E4581C"><enum>(F)</enum><header>Amount of bid by secretary</header> <clause id="ID9A4EC9B77AB64DDAB81FF0F2A77C0709"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), at a foreclosure sale of real property described in subparagraph (A), the Secretary shall offer a bid for the property that is equal to the higher of—</text> <subclause id="ID597D4D1B31EE42318C7505281BE7DD90"><enum>(I)</enum><text>the fair market value of the property; or</text> </subclause><subclause id="IDCA312A5A86DA48F4A2FE5D7C48693015"><enum>(II)</enum><text>the outstanding principal and interest on the loan.</text> </subclause></clause><clause id="ID52B5899149884C41BB294DAEC9F4D6AF"><enum>(ii)</enum><header>Hazardous substances</header><text>If a hazardous substance (as defined in section 101(14) of the <act-name parsable-cite="CERCL">Comprehensive Environmental Response, Compensation, and Liability Act of 1980</act-name> (42 U.S.C. 9601(14))) is located on the property and the Secretary takes remedial action to protect human health or the environment if the property is taken into inventory, clause (i) shall apply only if the Secretary determines that bidding is in the best interests of the Federal Government.</text> </clause></subparagraph></paragraph><paragraph id="ID573282ABB717407EBCE23EF1A6FCD50E"><enum>(4)</enum><header>Detrimental effect on value of area farmland</header><text>The Secretary shall not offer for sale or sell any farmland referred to in paragraphs (1) through (3) if placing the farmland on the market will have a detrimental effect on the value of farmland in the area.</text> </paragraph><paragraph id="ID3F47C3FE182348A59CA509F5E7C7CFE3"><enum>(5)</enum><header>Installment sales and multiple operators</header> <subparagraph id="ID0A0955A0E463448AA4D1F4E791F79FE5"><enum>(A)</enum><header>In general</header><text>The Secretary may sell farmland administered under this title through an installment sale or similar device that contains such terms as the Secretary considers necessary to protect the investment of the Federal Government in the land.</text> </subparagraph><subparagraph id="ID4E7B7425A16D45C98A8EF018EB59727C"><enum>(B)</enum><header>Sale of contract</header><text>The Secretary may subsequently sell any contract entered into to carry out subparagraph (A).</text> </subparagraph></paragraph><paragraph id="IDAB6C4481728B40A4990E6B51F904FFB4"><enum>(6)</enum><header>Highly erodible land</header><text>In the case of farmland administered under this title that is highly erodible land (as defined in section 1201 of the Food Security Act of 1985 (16 U.S.C. 3801)), the Secretary may require the use of specified conservation practices on the land as a condition of the sale or lease of the land.</text> </paragraph><paragraph id="ID6CC3ACBF10904C0B86165BCCBB1F7797"><enum>(7)</enum><header>No effect on acreage allotments, marketing quotas, or acreage bases</header><text>Notwithstanding any other law, compliance by the Secretary with this subsection shall not cause any acreage allotment, marketing quota, or acreage base assigned to the property to lapse, terminate, be reduced, or otherwise be adversely affected.</text> </paragraph><paragraph id="ID0F47A3D67DBB456A81B7B6B613EA0895"><enum>(8)</enum><header>No preemption of state law</header><text>If a conflict exists between any provision of this subsection and any provision of the law of any State providing a right of first refusal to the owner of farmland or the operator of a farm before the sale or lease of land to any other person, the provision of State law shall prevail.</text> </paragraph></subsection><subsection id="ID7CF21F5DD9EC4DE48829EB4183C19201"><enum>(d)</enum><header>Release of normal income security</header> <paragraph id="ID79B84AB509F04FEFB45B627651A9E22D"><enum>(1)</enum><header>Definition of normal income security</header><text>In this subsection:</text> <subparagraph id="id66D648B660FD4B7AB028D45D1CD4A934"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term <term>normal income security</term> means all security not considered basic security, including crops, livestock, poultry products, Farm Service Agency payments and Commodity Credit Corporation payments, and other property covered by Farm Service Agency liens that is sold in conjunction with the operation of a farm or other business.</text> </subparagraph><subparagraph id="id67B261C57FC147BF89984E77FE073417"><enum>(B)</enum><header>Exceptions</header><text>The term <term>normal income security</term> does not include any equipment (including fixtures in States that have adopted the Uniform Commercial Code), or foundation herd or flock, that is—</text> <clause id="idE9A50B4642C143B7B4AC9E4C834930AC"><enum>(i)</enum><text>the basis of the farming or other operation; and</text> </clause><clause id="idCEB2E32602AE447BB2DFCFD5D3734EA7"><enum>(ii)</enum><text>the basic security for a farmer program loan.</text> </clause></subparagraph></paragraph><paragraph id="IDCC2D75100DE44A6F964FEE4CBBC04C97"><enum>(2)</enum><header>General release</header><text>The Secretary shall release from the normal income security provided for a loan an amount sufficient to pay for the essential household and farm operating expenses of the borrower, until such time as the Secretary accelerates the loan.</text> </paragraph><paragraph id="ID961DC4B7B13847268E49B20419AFB0D7"><enum>(3)</enum><header>Notice of reporting requirements and rights</header><text>If a borrower is required to plan for or to report as to how proceeds from the sale of collateral property will be used, the Secretary shall notify the borrower of—</text> <subparagraph id="ID0FB47C224A674FC2808198666C7760A2"><enum>(A)</enum><text>the requirement; and</text> </subparagraph><subparagraph id="IDE42B2A44B3A8455FB20DAAC645485420"><enum>(B)</enum><text>the right to the release of funds under this subsection and the means by which a request for the funds may be made.</text> </subparagraph></paragraph></subsection><subsection id="ID299A2285303E4EB3B70E3DAAABDEB556"><enum>(e)</enum><header>Easements on inventoried property</header> <paragraph id="IDAB183073F5454B5F8E48AFB44B419470"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), in the disposal of real property under this section, the Secretary shall establish perpetual wetland conservation easements to protect and restore wetland or converted wetland that exists on inventoried property.</text> </paragraph><paragraph id="IDFB9A66EE2F024FA3967D2F3F0AA2A850"><enum>(2)</enum><header>Limitation</header><text>The Secretary shall not establish a wetland conservation easement on an inventoried property that—</text> <subparagraph id="ID7B96310CE26E4F2F8D0D3035CFCF534A"><enum>(A)</enum><text>was cropland on the date the property entered the inventory of the Secretary; or</text> </subparagraph><subparagraph id="IDDB07712694D6420FA0BF0D90269ABAAB"><enum>(B)</enum><text>was used for farming at any time during the period—</text> <clause id="idC7793A4D3E8A4AAB9D28C423CB97F87F"><enum>(i)</enum><text>beginning on the date that is 5 years before the property entered the inventory of the Secretary; and</text> </clause><clause id="idC4FAA1F5768043BBB9BDB54B32722E56"><enum>(ii)</enum><text>ending on the date on which the property entered the inventory of the Secretary.</text> </clause></subparagraph></paragraph><paragraph id="ID5D2DF7D1BB1C4CC0A687F4CF544EBA5B"><enum>(3)</enum><header>Notification</header><text>The Secretary shall provide prior written notification to a borrower considering homestead retention that a wetland conservation easement may be placed on land for which the borrower is negotiating a lease option.</text> </paragraph><paragraph id="ID7D36A472B46D44A397B5440538CACF70"><enum>(4)</enum><header>Appraised value</header><text>The appraised value of the farm shall reflect the value of the land due to the placement of wetland conservation easements.</text> </paragraph></subsection></section><section id="ID65c6c9eb26fc4dc28720d6bb26a4de09"><enum>3410.</enum><header>Contracts on loan security properties</header> <subsection id="IDd3a9821f7e9d4d3ab83d8ceda813acb5"><enum>(a)</enum><header>Contracts on loan security properties</header><text>Subject to subsection (b), the Secretary may enter into a contract related to real property for conservation, recreation, or wildlife purposes.</text> </subsection><subsection id="IDecd47b92d9104db5896cae88787d4cf5"><enum>(b)</enum><header>Limitations</header><text>The Secretary may enter into a contract under subsection (a) if—</text> <paragraph id="IDa7cbcef0bfc14d91b9ab7cc417af341c"><enum>(1)</enum><text>the property is wetland, upland, or highly erodible land;</text> </paragraph><paragraph id="ID6cdd6bab6b2443c3aaf92220a808d645"><enum>(2)</enum><text>the property is determined by the Secretary to be suitable for the purpose involved; and</text> </paragraph><paragraph id="ID8d0d9e49f17545c19a6227ca3e2bf327"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id9BD73ADD2CBF4E07B2E371AA076170AC"><enum>(A)</enum><text>the property secures a loan made under a law administered and held by the Secretary; and</text> </subparagraph><subparagraph id="IDd09aa2a34da444cb99c8f0fbcd09ad66" indent="up1"><enum>(B)</enum><text>the contract would better enable a qualified borrower to repay the loan in a timely manner, as determined by the Secretary.</text> </subparagraph></paragraph></subsection><subsection id="ID6e859b7ac82d455491fa029791217d0f"><enum>(c)</enum><header>Terms and conditions</header><text>The terms and conditions specified in a contract under subsection (a) shall—</text> <paragraph id="ID5d9fd3862e5f4bb0a7896dd033e55ddf"><enum>(1)</enum><text>specify the purposes for which the real property may be used;</text> </paragraph><paragraph id="IDc42a3eb796394572a23e0adea07dc99b"><enum>(2)</enum><text>identify any conservation measure to be taken, and any recreational and wildlife use to be allowed, with respect to the real property; and</text> </paragraph><paragraph id="IDd4c76e1fc4ae47c39e13548fb9393386"><enum>(3)</enum><text>require the owner to permit the Secretary, and any person or governmental entity designated by the Secretary, to have access to the real property for the purpose of monitoring compliance with the contract.</text> </paragraph></subsection><subsection id="ID426bb284546344089183baee139e23bf"><enum>(d)</enum><header>Reduction or forgiveness of debt</header> <paragraph id="ID2a9f4c2fbff94dba87ce293253e72c3d"><enum>(1)</enum><header>In general</header><text>Subject to this section, the Secretary may reduce or forgive the outstanding debt of a borrower—</text> <subparagraph id="ID57575235c5224775badee6e9f435c5bf"><enum>(A)</enum><text>in the case of a borrower to whom the Secretary has made an outstanding loan under a law administered by the Secretary, by canceling that part of the aggregate amount of the outstanding loan that bears the same ratio to the aggregate amount as—</text> <clause id="idAC16AB2746654F0C923228692A1D7A3E"><enum>(i)</enum><text>the number of acres of the real property of the borrower that are subject to the contract; bears to</text> </clause><clause id="id5C40200FA15D4832ADA6CB50A1D15598"><enum>(ii)</enum><text>the aggregate number of acres securing the loan; or</text> </clause></subparagraph><subparagraph id="IDa7c0967960ee447284f13a00be60e44c"><enum>(B)</enum><text>in any other case, by treating as prepaid that part of the principal amount of a new loan to the borrower issued and held by the Secretary under a law administered by the Secretary that bears the same ratio to the principal amount as—</text> <clause id="id213337AF2729454099BD1F5EC8016D42"><enum>(i)</enum><text>the number of acres of the real property of the borrower that are subject to the contract; bears to</text> </clause><clause id="id4BDAE9493FD64DBAA9255FAFECFD2CEE"><enum>(ii)</enum><text>the aggregate number of acres securing the new loan.</text> </clause></subparagraph></paragraph><paragraph id="IDa750ecfc3423467589066c10cbb66a56"><enum>(2)</enum><header>Maximum canceled amount</header><text>The amount canceled or treated as prepaid under paragraph (1) shall not exceed—</text> <subparagraph id="ID7a5c43bd69bd48c3bb392b9eefdc6aa1"><enum>(A)</enum><text>in the case of a delinquent loan, the greater of—</text> <clause id="ID446e1b922ea2458ea266e620fe07a79e"><enum>(i)</enum><text>the value of the land on which the contract is entered into; or</text> </clause><clause id="IDc6747c7f132e4852b0a9e7131918cd40"><enum>(ii)</enum><text>the difference between—</text> <subclause id="id2B952631DEB042A89C88BBB7F2DD652B"><enum>(I)</enum><text>the amount of the outstanding loan secured by the land; and</text> </subclause><subclause id="id544E4EF407FC45EC9F089E970A91FF78"><enum>(II)</enum><text>the value of the land; or</text> </subclause></clause></subparagraph><subparagraph id="IDe2e761b3559c4bc5882e6c402c7759cd"><enum>(B)</enum><text>in the case of a nondelinquent loan, 33 percent of the amount of the loan secured by the land.</text> </subparagraph></paragraph></subsection><subsection id="IDf3d04d99a16a4f7c90a27d62a8695fa0"><enum>(e)</enum><header>Consultation with fish and wildlife service</header><text>If the Secretary uses the authority provided by this section, the Secretary shall consult with the Director of the Fish and Wildlife Service for the purposes of—</text> <paragraph id="ID1d8cb43286e840b8900a53e5f38264ad"><enum>(1)</enum><text>selecting real property in which the Secretary may enter into a contract under this section;</text> </paragraph><paragraph id="ID5482357e79f54d8ab646cde26afbe370"><enum>(2)</enum><text>formulating the terms and conditions of the contract; and</text> </paragraph><paragraph id="IDd76e08e96fd8466385af3c7ec3b5eb04"><enum>(3)</enum><text>enforcing the contract.</text> </paragraph></subsection><subsection id="ID01a2a0d6d81a4248a6ff9d4a40fc88d7"><enum>(f)</enum><header>Enforcement</header><text>The Secretary, and any person or governmental entity designated by the Secretary, may enforce a contract entered into by the Secretary under this section.</text> </subsection></section><section id="ID8553175b7c754b01aa8bc0f71080f7e3"><enum>3411.</enum><header>Debt restructuring and loan servicing</header> <subsection id="ID3d8553dc40ac428b8d7a700a80009179"><enum>(a)</enum><header>In general</header><text>The Secretary shall modify a delinquent farmer program loan made under this subtitle, or purchased from the lender or the Federal Deposit Insurance Corporation under section 3902, to the maximum extent practicable—</text> <paragraph id="ID501a203a95cb4524a223a8fc4df74425"><enum>(1)</enum><text>to avoid a loss to the Secretary on the loan, with priority consideration being placed on writing-down the loan principal and interest (subject to subsections (d) and (e)), and debt set-aside (subject to subsection (e)), to facilitate keeping the borrower on the farm, or otherwise through the use of primary loan service programs under this section; and</text> </paragraph><paragraph id="ID0b7febec41ef4d9d94522ceba8337c1d"><enum>(2)</enum><text>to ensure that a borrower is able to continue farming operations.</text> </paragraph></subsection><subsection id="ID5311f3e83e434705b8fc952ca0a5d31e"><enum>(b)</enum><header>Eligibility</header><text>To be eligible to obtain assistance under subsection (a)—</text> <paragraph id="IDc968287f2ebd4f3686c047eb0fb11dfa"><enum>(1)</enum><text>the delinquency shall be due to a circumstance beyond the control of the borrower, as defined in regulations issued by the Secretary, except that the regulations shall require that, if the value of the assets calculated under subsection (c)(2)(A)(ii) that may be realized through liquidation or other methods would produce enough income to make the delinquent loan current, the borrower shall not be eligible for assistance under subsection (a);</text> </paragraph><paragraph id="ID6867f2bc76ad4cd19a4e4b42ad96921b"><enum>(2)</enum><text>the borrower shall have acted in good faith with the Secretary in connection with the loan as defined in regulations issued by the Secretary;</text> </paragraph><paragraph id="IDb55707ef7bce4e1eb7ba8a006c40191b"><enum>(3)</enum><text>the borrower shall present a preliminary plan to the Secretary that contains reasonable assumptions that demonstrate that the borrower will be able—</text> <subparagraph id="ID5ce2512fc157445281b2c40ad4ced19c"><enum>(A)</enum><text>to meet the necessary family living and farm operating expenses of the borrower; and</text> </subparagraph><subparagraph id="IDc75126f7f7d14479918a0f5707c953cd"><enum>(B)</enum><text>to service all debts of the borrower, including restructured loans; and</text> </subparagraph></paragraph><paragraph id="ID32e7fc1dc1ff4abb9b40fbe3a1246226"><enum>(4)</enum><text>the loan, if restructured, shall result in a net recovery to the Federal Government, during the term of the loan as restructured, that would be more than or equal to the net recovery to the Federal Government from an involuntary liquidation or foreclosure on the property securing the loan.</text> </paragraph></subsection><subsection id="ID9238f453f8694f5785ec067869fdcb29"><enum>(c)</enum><header>Restructuring determinations</header> <paragraph id="ID59bd96a2990b40eaa6f638acbc95b138"><enum>(1)</enum><header>Determination of net recovery</header><text>In determining the net recovery from the involuntary liquidation of a loan under this section, the Secretary shall calculate—</text> <subparagraph id="ID82efa0e4eeb8455c96ff55979b9d5aba"><enum>(A)</enum><text>the recovery value of the collateral securing the loan, in accordance with paragraph (2); and</text> </subparagraph><subparagraph id="IDe8836c0b6c43477c88702d499ecc2069"><enum>(B)</enum><text>the value of the restructured loan, in accordance with paragraph (3).</text> </subparagraph></paragraph><paragraph id="IDe3675068c74d4006813ad538c0fc04f8"><enum>(2)</enum><header>Recovery value</header><text>For the purpose of paragraph (1), the recovery value of the collateral securing the loan shall be based on the difference between—</text> <subparagraph id="IDb2cf4b29a9f94f71af93199178da9f1f"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="id7ADE3EA9652941EDAC93E536517BA834"><enum>(i)</enum><text>the amount of the current appraised value of the interests of the borrower in the property securing the loan; and</text> </clause><clause id="ID7a5349a10adb440faa4c984ed26f841f" indent="up1"><enum>(ii)</enum><text>the value of the interests of the borrower in all other assets that are—</text> <subclause id="ID2384f5017b374ff3b3cba9e116956a4e"><enum>(I)</enum><text>not essential for necessary family living expenses;</text> </subclause><subclause id="IDcb868d598e4147bc9ca981a8e0c5c210"><enum>(II)</enum><text>not essential to the operation of the farm; and</text> </subclause><subclause id="ID19e27bfe48c443df953726c29d899b33"><enum>(III)</enum><text>not exempt from judgment creditors or in a bankruptcy action under Federal or State law;</text> </subclause></clause></subparagraph><subparagraph id="ID9cc49264a2124719a770a4c5b136638d"><enum>(B)</enum><text>the estimated administrative, attorney, and other expenses associated with the liquidation and disposition of the loan and collateral, including—</text> <clause id="ID136add033b2844c19e56db8df5234536"><enum>(i)</enum><text>the payment of prior liens;</text> </clause><clause id="IDd1900e6a92cf47759399a5849cf15ff0"><enum>(ii)</enum><text>taxes and assessments, depreciation, management costs, the yearly percentage decrease or increase in the value of the property, and lost interest income, each calculated for the average holding period for the type of property involved;</text> </clause><clause id="IDdcf200b25ca64af7b5b7dfb3fd9093af"><enum>(iii)</enum><text>resale expenses, such as repairs, commissions, and advertising; and</text> </clause><clause id="IDc68a825ed12046f18bfec01f5a356e40"><enum>(iv)</enum><text>other administrative and attorney costs; and</text> </clause></subparagraph><subparagraph id="ID08686ee651f34152a905a90162c0f552"><enum>(C)</enum><text>the value, as determined by the Secretary, of any property not included in subparagraph (A)(i) if the property is specified in any security agreement with respect to the loan and the Secretary determines that the value of the property should be included for purposes of this section.</text> </subparagraph></paragraph><paragraph id="ID7949088f5db34e6b9143dbf1a301f878"><enum>(3)</enum><header>Value of the restructured loan</header> <subparagraph id="ID72b50577cfc0437696949faacf58b8ae"><enum>(A)</enum><header>In general</header><text>For the purpose of paragraph (1), the value of the restructured loan shall be based on the present value of payments that the borrower would make to the Federal Government if the terms of the loan were modified under any combination of primary loan service programs to ensure that the borrower is able to meet the obligations and continue farming operations.</text> </subparagraph><subparagraph id="ID3af84061dcba4e6c9ed6a44f740f70e8"><enum>(B)</enum><header>Present value</header><text>For the purpose of calculating the present value referred to in subparagraph (A), the Secretary shall use a discount rate of not more than the current rate at the time of the calculation of 90-day Treasury bills.</text> </subparagraph><subparagraph id="IDe80defe9132744d3aa5fa759d8f4dd32"><enum>(C)</enum><header>Cash flow margin</header><text>For the purpose of assessing under subparagraph (A) the ability of a borrower to meet debt obligations and continue farming operations, the Secretary shall assume that the borrower needs up to 110 percent of the amount indicated for payment of farm operating expenses, debt service obligations, and family living expenses.</text> </subparagraph></paragraph><paragraph id="ID744495caf89547b4b7827d2189b8d092"><enum>(4)</enum><header>Notification</header><text>Not later than 90 days after receipt of a written request for restructuring from the borrower, the Secretary shall—</text> <subparagraph id="IDb1785d1e74fd4e95910a0448bd1f894a"><enum>(A)</enum><text>make the calculations specified in paragraphs (2) and (3);</text> </subparagraph><subparagraph id="IDa2f955e3c0f846a1a7345d19c02ffbde"><enum>(B)</enum><text>notify the borrower in writing of the results of the calculations; and</text> </subparagraph><subparagraph id="IDe5c80094f453406a8410d0df8595b6a8"><enum>(C)</enum><text>provide documentation for the calculations.</text> </subparagraph></paragraph><paragraph id="ID96369899ca0f4812b7dfe170acdf3a98"><enum>(5)</enum><header>Restructuring of loans</header> <subparagraph id="IDcf2faf3bdc1c4d018ea36a173f0bf755"><enum>(A)</enum><header>In general</header><text>If the value of a restructured loan is greater than or equal to the recovery value of the collateral securing the loan, not later than 45 days after notifying the borrower under paragraph (4), the Secretary shall offer to restructure the loan obligations of the borrower under this subtitle through primary loan service programs that would enable the borrower to meet the obligations (as modified) under the loan and to continue the farming operations of the borrower.</text> </subparagraph><subparagraph id="IDebf79e2dcf6f41309d979b1cff8133a0"><enum>(B)</enum><header>Restructuring</header><text>If the borrower accepts an offer under subparagraph (A), not later than 45 days after receipt of notice of acceptance, the Secretary shall restructure the loan accordingly.</text> </subparagraph></paragraph><paragraph id="ID57cff1f74a46416aaf55709af6d2ea87"><enum>(6)</enum><header>Termination of loan obligations</header><text>The obligations of a borrower to the Secretary under a loan shall terminate if—</text> <subparagraph id="ID682478cf1e824e27971061527a1ab085"><enum>(A)</enum><text>the borrower satisfies the requirements of paragraphs (1) and (2) of subsection (b);</text> </subparagraph><subparagraph id="IDdcf6f69e4a2946988a5e01758f65de21"><enum>(B)</enum><text>the value of the restructured loan is less than the recovery value; and</text> </subparagraph><subparagraph id="ID52c0ec22ef30497fb76ce1089438ca35"><enum>(C)</enum><text>not later than 90 days after receipt of the notification described in paragraph (4)(B), the borrower pays (or obtains third-party financing to pay) the Secretary an amount equal to the current market value.</text> </subparagraph></paragraph><paragraph id="ID4fcc3120f7664c6cbe7ba691d9233f64"><enum>(7)</enum><header>Negotiation of appraisal</header> <subparagraph id="ID3185a4b0a2674c5499d85fc5b5de5842"><enum>(A)</enum><header>In general</header><text>In making a determination concerning restructuring under this subsection, the Secretary, at the request of the borrower, shall enter into negotiations with the borrower concerning appraisals required under this subsection.</text> </subparagraph><subparagraph id="IDbebf236c1d874fdaa3693a2236ee53ce"><enum>(B)</enum><header>Independent appraisal</header> <clause id="ID5c8cbf469447413baaae4698da0b07ff"><enum>(i)</enum><header>In general</header><text>If the borrower, based on a separate current appraisal, objects to the decision of the Secretary regarding an appraisal, the borrower and the Secretary shall mutually agree, to the extent practicable, on an independent appraiser who shall conduct another appraisal of the property of the borrower.</text> </clause><clause id="IDb63efda7e71b4d23bdf85c30fc6f476e"><enum>(ii)</enum><header>Value of final appraisal</header><text>The average of the 2 appraisals under clause (i) that are closest in value shall become the final appraisal under this paragraph.</text> </clause><clause id="IDcb57de642f7f408aac4e3ddfaf16a161"><enum>(iii)</enum><header>Cost of appraisal</header><text>The borrower and the Secretary shall each pay <fraction>1/2</fraction> of the cost of any independent appraisal.</text> </clause></subparagraph></paragraph></subsection><subsection id="ID5b865bde88e941d7b9a7ec154f1833c7"><enum>(d)</enum><header>Principal and interest write-down</header> <paragraph id="ID822000ef1fb846fe81dad6f74f6cea4c"><enum>(1)</enum><header>In general</header> <subparagraph id="ID9f1c212403364657a7dc9589f2a22abc"><enum>(A)</enum><header>Priority consideration</header><text>In selecting the restructuring alternatives to be used in the case of a borrower who has requested restructuring under this section, the Secretary shall give priority consideration to the use of a principal and interest write-down if other creditors of the borrower (other than any creditor who is fully collateralized) representing a substantial portion of the total debt of the borrower held by the creditors of the borrower, agree to participate in the development of the restructuring plan or agree to participate in a State mediation program.</text> </subparagraph><subparagraph id="ID693fa5fa6ef9412b8f94ee6cf99d5f5d"><enum>(B)</enum><header>Failure of creditors to agree</header><text>Failure of creditors to agree to participate in the restructuring plan or mediation program shall not preclude the use of a principal and interest write-down by the Secretary if the Secretary determines that restructuring results in the least cost to the Secretary.</text> </subparagraph></paragraph><paragraph id="IDb8ec00532f8d4008abb64cf4687e41c7"><enum>(2)</enum><header>Participation of creditors</header><text>Before eliminating the option to use debt write-down in the case of a borrower, the Secretary shall make a reasonable effort to contact the creditors of the borrower, either directly or through the borrower, and encourage the creditors to participate with the Secretary in the development of a restructuring plan for the borrower.</text> </paragraph></subsection><subsection id="IDb983913c8f1d4d439c6161b488c206f8"><enum>(e)</enum><header>Shared appreciation arrangements</header> <paragraph id="ID25257a6831f8410fa8c3ce44ed3c69e5"><enum>(1)</enum><header>In general</header><text>As a condition of restructuring a loan in accordance with this section, the borrower of the loan may be required to enter into a shared appreciation arrangement that requires the repayment of amounts written off or set aside.</text> </paragraph><paragraph id="ID16228b701ef04114aa1b3f257e73f916"><enum>(2)</enum><header>Terms</header><text>A shared appreciation agreement shall—</text> <subparagraph id="ID8f9cbfdd8c1540899d7f481806ade9c3"><enum>(A)</enum><text>have a term not to exceed 10 years; and</text> </subparagraph><subparagraph id="ID276b2929a8684cdcb470c2c8780771ef"><enum>(B)</enum><text>provide for recapture based on the difference between the appraised values of the real security property at the time of restructuring and at the time of recapture.</text> </subparagraph></paragraph><paragraph id="ID77e014951c9f496a96bb2403afbaa13e"><enum>(3)</enum><header>Percentage of recapture</header><text>The amount of the appreciation to be recaptured by the Secretary shall be—</text> <subparagraph id="IDf641648fce7144c9858bcc05fe6c0ca1"><enum>(A)</enum><text>75 percent of the appreciation in the value of the real security property if the recapture occurs not later than 4 years after the date of restructuring; and</text> </subparagraph><subparagraph id="ID6c2dbc232e474d9bbfeab883b5380f3f"><enum>(B)</enum><text>50 percent if the recapture occurs during the remainder of the term of the agreement.</text> </subparagraph></paragraph><paragraph id="ID385ec4aa73b9486194f4f871f671a954"><enum>(4)</enum><header>Time of recapture</header><text>Recapture shall take place on the date that is the earliest of—</text> <subparagraph id="ID41135f35494d4188a2fd3d86935b8824"><enum>(A)</enum><text>the end of the term of the agreement;</text> </subparagraph><subparagraph id="ID4a2997ee64f448cf9dc74102ed4251a5"><enum>(B)</enum><text>the conveyance of the real security property;</text> </subparagraph><subparagraph id="ID296aa69be9c44e79b868e1759a3440ee"><enum>(C)</enum><text>the repayment of the loans; or</text> </subparagraph><subparagraph id="IDc759081a113544128737bce90528b38f"><enum>(D)</enum><text>the cessation of farming operations by the borrower.</text> </subparagraph></paragraph><paragraph id="IDcab698ab8eb4428a97738ad3c1a5cfc9"><enum>(5)</enum><header>Transfer of title</header><text>Transfer of title to the spouse of a borrower on the death of the borrower shall not be treated as a conveyance for the purpose of paragraph (4).</text> </paragraph><paragraph id="ID3ea8032094f54f789b5252e070098790"><enum>(6)</enum><header>Notice of recapture</header><text>Not later than 12 months before the end of the term of a shared appreciation arrangement, the Secretary shall notify the borrower involved of the provisions of the arrangement.</text> </paragraph><paragraph id="IDee026005d89b44c591a8e81befa65b1f"><enum>(7)</enum><header>Financing of recapture payment</header> <subparagraph id="ID9aef7af68459447eae6c35afc5c58e37"><enum>(A)</enum><header>In general</header><text>The Secretary may amortize a recapture payment owed to the Secretary under this subsection.</text> </subparagraph><subparagraph id="IDe49f44a016cc40e58490850e3d55c257"><enum>(B)</enum><header>Term</header><text>The term of an amortization under this paragraph may not exceed 25 years.</text> </subparagraph><subparagraph id="ID45488a1d9075477aa3484d0802114f88"><enum>(C)</enum><header>Interest rate</header><text>The interest rate applicable to an amortization under this paragraph may not exceed the rate applicable to a loan to reacquire homestead property less 100 basis points.</text> </subparagraph><subparagraph id="ID2eb97aa89cbe4e6db0d089e08aeb7e03"><enum>(D)</enum><header>Reamortization</header> <clause id="IDc8f7ab50c26f482c9959535ced1634d2"><enum>(i)</enum><header>In general</header><text>The Secretary may modify the amortization of a recapture payment referred to in subparagraph (A) of this paragraph on which a payment has become delinquent if—</text> <subclause id="ID67ff477a463145e8b7b6909d48e21d5b"><enum>(I)</enum><text>the default is due to circumstances beyond the control of the borrower; and</text> </subclause><subclause id="ID431976d453f045a8978c455825a37c9a"><enum>(II)</enum><text>the borrower acted in good faith (as determined by the Secretary) in attempting to repay the recapture amount.</text> </subclause></clause><clause id="IDeff96aa7aef74ddbb6251507626dd918"><enum>(ii)</enum><header>Limitations</header> <subclause id="IDfa58ef0891b44732a9b2f562f0b351cd"><enum>(I)</enum><header>Term of reamortization</header><text>The term of a reamortization under this subparagraph may not exceed 25 years from the date of the original amortization agreement.</text> </subclause><subclause id="ID8abe4b3032004cba8bbada754f8d15d5"><enum>(II)</enum><header>No reduction or principal or unpaid interest due</header><text>A reamortization of a recapture payment under this subparagraph may not provide for reducing the outstanding principal or unpaid interest due on the recapture payment.</text> </subclause></clause></subparagraph></paragraph></subsection><subsection id="id26047C3091084FBAA8866D7AFA27547C"><enum>(f)</enum><header>Interest rates</header><text>Any loan for farm ownership purposes, farm operating purposes, or disaster emergency purposes, other than a guaranteed loan, that is deferred, consolidated, rescheduled, or reamortized shall, notwithstanding any other provision of this subtitle, bear interest on the balance of the original loan and for the term of the original loan at a rate that is the lowest of—</text> <paragraph id="ID53391cf321c842ffbbe375241ecee315"><enum>(1)</enum><text>the rate of interest on the original loan;</text> </paragraph><paragraph id="IDce5f0c2ac689421db37c9d18eb084b83"><enum>(2)</enum><text>the rate being charged by the Secretary for loans, other than guaranteed loans, of the same type at the time at which the borrower applies for a deferral, consolidation, rescheduling, or reamortization; or</text> </paragraph><paragraph id="ID95c10fa75d2d487593ac05f21758a060"><enum>(3)</enum><text>the rate being charged by the Secretary for loans, other than guaranteed loans, of the same type at the time of the deferral, consolidation, rescheduling, or reamortization.</text> </paragraph></subsection><subsection id="idA627B0FA279A451A86D554DB7C5312B1"><enum>(g)</enum><header>Period and effect</header> <paragraph id="id6E5584B130FB43BD8DF4F99056FDEA7C"><enum>(1)</enum><header>Period</header><text>The Secretary may consolidate or reschedule outstanding loans for payment over a period not to exceed 7 years (or, in the case of loans for farm operating purposes, 15 years) from the date of the consolidation or rescheduling.</text> </paragraph><paragraph id="idA1E79E872FBE490C9F9EAC6309CA656A"><enum>(2)</enum><header>Effect</header><text>The amount of unpaid principal and interest of the prior loans so consolidated or rescheduled shall not create a new charge against any loan levels authorized by law.</text> </paragraph></subsection><subsection id="ID6e591e0af03f4b05b984a3e7ca8b9a8a"><enum>(h)</enum><header>Prerequisites to foreclosure or liquidation</header><text>No foreclosure or other similar action shall be taken to liquidate any loan determined to be ineligible for restructuring by the Secretary under this section—</text> <paragraph id="ID0420981c33644dd293bb781943f5bbc5"><enum>(1)</enum><text>until the borrower has been given the opportunity to appeal the decision; and</text> </paragraph><paragraph id="ID4efbf76b3b664bffa4dc2c948aeb92f6"><enum>(2)</enum><text>if the borrower appeals, the appeals process has been completed, and a determination has been made that the loan is ineligible for restructuring.</text> </paragraph></subsection><subsection id="ID5421bec2a49b4888a098a56984d2d1f6"><enum>(i)</enum><header>Notice of ineligibility for restructuring</header> <paragraph id="ID25f2382f4b69474490041c8818133333"><enum>(1)</enum><header>In general</header><text>A notice of ineligibility for restructuring shall be sent to the borrower by registered or certified mail not later than 15 days after a determination of ineligibility.</text> </paragraph><paragraph id="IDaf8e5c5fc5a34dbfa7ec6dfb17831810"><enum>(2)</enum><header>Contents</header><text>The notice required under paragraph (1) shall contain—</text> <subparagraph id="IDbae274b8dacc4fb3980f3841009b7aaf"><enum>(A)</enum><text>the determination and the reasons for the determination;</text> </subparagraph><subparagraph id="ID79faa0ad9e9a48bd913eeb434c4144e6"><enum>(B)</enum><text>the computations used to make the determination, including the calculation of the recovery value of the collateral securing the loan; and</text> </subparagraph><subparagraph id="ID0d1d6b42dd044793a1b3e5248f1243a5"><enum>(C)</enum><text>a statement of the right of the borrower to appeal the decision to the appeals division, and to appear before a hearing officer.</text> </subparagraph></paragraph></subsection><subsection id="IDb536e3943be04ba6aa3d937338c211ef"><enum>(j)</enum><header>Independent appraisals</header> <paragraph id="IDb79f82038c804938a82c2b5e28d7ffc8"><enum>(1)</enum><header>In general</header><text>An appeal may include a request by the borrower for an independent appraisal of any property securing the loan.</text> </paragraph><paragraph id="ID760c400a70644f7da64fee3f1222a929"><enum>(2)</enum><header>Process for appraisal</header><text>On a request under paragraph (1), the Secretary shall present the borrower with a list of 3 appraisers approved by the county supervisor, from which the borrower shall select an appraiser to conduct the appraisal.</text> </paragraph><paragraph id="IDef5166b6d6c64949b335c89fe08e68fb"><enum>(3)</enum><header>Cost</header><text>The cost of an appraisal under this subsection shall be paid by the borrower.</text> </paragraph><paragraph id="ID1ab04472f0f74f93868962c9ac0f7de0"><enum>(4)</enum><header>Result</header><text>The result of an appraisal under this subsection shall be considered in any final determination concerning the loan.</text> </paragraph><paragraph id="ID72bee49edd0f4ceea6022dd3ed79ea95"><enum>(5)</enum><header>Copy</header><text>A copy of any appraisal under this subsection shall be provided to the borrower.</text> </paragraph></subsection><subsection id="IDe67fec800efe4b2295e04b58e5f95cff"><enum>(k)</enum><header>Partial liquidations</header><text>If a partial liquidation of a delinquent loan is performed (with the prior consent of the Secretary) as part of loan servicing by a guaranteed lender under this title, the Secretary shall not require full liquidation of the loan for the lender to be eligible to receive payment on losses.</text> </subsection><subsection id="ID477d4b0532b8465885e07acf47deff50"><enum>(l)</enum><header>Only 1 write-down or net recovery buy-out per borrower for a loan made after January <enum-in-header>6, 1988</enum-in-header></header> <paragraph id="ID676dfe148fe149f79eb114a0975d0130"><enum>(1)</enum><header>In general</header><text>The Secretary may provide for each borrower not more than 1 write-down or net recovery buy-out under this section with respect to all loans made to the borrower after January 6, 1988.</text> </paragraph><paragraph id="IDc181f2e09e474c41af4087c9a21529b3"><enum>(2)</enum><header>Special rule</header><text>For purposes of paragraph (1), the Secretary shall treat any loan made on or before January 6, 1988, with respect to which a restructuring, write-down, or net recovery buy-out is provided under this section after January 6, 1988, as a loan made after January 6, 1988.</text> </paragraph></subsection><subsection id="ID66abf4f808fa462c90d5e1dcc0c04b88"><enum>(m)</enum><header>Liquidation of assets</header><text>The Secretary may not use the authority provided by this section to reduce or terminate any portion of the debt of the borrower that the borrower could pay through the liquidation of assets (or through the payment of the loan value of the assets, if the loan value is greater than the liquidation value) described in subsection (c)(2)(A)(ii).</text> </subsection><subsection id="IDe04da3924f6e4db69681c51f0ddd100e"><enum>(n)</enum><header>Lifetime limitation on debt forgiveness per borrower</header><text>The Secretary may provide each borrower not more than $300,000 in debt forgiveness under this section.</text> </subsection></section><section id="IDc3490a9b15b04eaeb30843093b9f37dc"><enum>3412.</enum><header>Relief for mobilized military reservists from certain agricultural loan obligations</header> <subsection id="IDfefd9f428f5f49c6a28912b526f7f136"><enum>(a)</enum><header>Definition of mobilized military reservist</header><text>In this section, the term <term>mobilized military reservist</term> means an individual who—</text> <paragraph id="ID9e17dba606d3474081a256bf51536ee0"><enum>(1)</enum><text>is on active duty under section 688, 12301(a), 12301(g), 12302, 12304, 12306, or 12406, or chapter 15 of title 10, United States Code, or any other provision of law during a war or during a national emergency declared by the President or Congress, regardless of the location at which the active duty service is performed; or</text> </paragraph><paragraph id="IDf3a1604c9d9a4b88bea9a5c02fad1515"><enum>(2)</enum><text>in the case of a member of the National Guard, is on full-time National Guard duty (as defined in section 101(d)(5) of title 10, United States Code) under a call to active service authorized by the President or the Secretary of Defense for a period of more than 30 consecutive days under section 502(f) of title 32, United States Code, for purposes of responding to a national emergency declared by the President and supported by Federal funds.</text> </paragraph></subsection><subsection id="ID5a3963fe82884e8b808b47c1ece7d72a"><enum>(b)</enum><header>Forgiveness of interest payments due while borrower is a mobilized military reservist</header><text>Any requirement that a borrower of a direct loan made under this subtitle make any interest payment on the loan that would otherwise be required to be made while the borrower is a mobilized military reservist is rescinded.</text> </subsection><subsection id="IDc49fbe0b7fc04de2a0be9773539b1093"><enum>(c)</enum><header>Deferral of principal payments due while or after borrower is a mobilized military reservist</header><text>The due date of any payment of principal on a direct loan made to a borrower under this subtitle that would otherwise be required to be made while or after the borrower is a mobilized military reservist is deferred for a period equal in length to the period for which the borrower is a mobilized military reservist.</text> </subsection><subsection id="ID6490a966b1794f60acc79b8b8de2774c"><enum>(d)</enum><header>Nonaccrual of interest</header><text>Interest on a direct loan made to a borrower described in this section shall not accrue during the period the borrower is a mobilized military reservist.</text> </subsection><subsection id="ID241418bfb7b7471cb85871f6d6f88a57"><enum>(e)</enum><header>Borrower not considered To be delinquent or receiving debt forgiveness</header><text>Notwithstanding section 3425 or any other provision of this title, a borrower who receives assistance under this section shall not, as a result of the assistance, be considered to be delinquent or receiving debt forgiveness for purposes of receiving a direct or guaranteed loan under this subtitle.</text> </subsection></section><section id="ID86DD7777464C42F89B88E8A88B3F7FF7"><enum>3413.</enum><header>Interest rate reduction program</header> <subsection id="ID320850638B7C4F39BFE491D80402C657"><enum>(a)</enum><header>Establishment of program</header><text>The Secretary shall establish and carry out in accordance with this section an interest rate reduction program for any loan guaranteed under this subtitle.</text> </subsection><subsection id="ID04AF21A4C57E4CECA5A44B3C45D4BC26"><enum>(b)</enum><header>Entering into contracts</header><text>The Secretary shall enter into a contract with, and make payments to, an institution to reduce, during the term of the contract, the interest rate paid by the borrower on the guaranteed loan if—</text> <paragraph id="IDFBD26115A8344B7C9042BD83A9DA61EA"><enum>(1)</enum><text>the borrower—</text> <subparagraph id="ID0C64C722B00047C1A25B1B39D13A0F12"><enum>(A)</enum><text>is unable to obtain credit elsewhere;</text> </subparagraph><subparagraph id="ID60D5BA463DEA4BC0A7015E74EF2EC248"><enum>(B)</enum><text>is unable to make payments on the loan in a timely manner; and</text> </subparagraph><subparagraph id="ID46108D5CC7BA47AE82A0265D3A652175"><enum>(C)</enum><text>during the 24-month period beginning on the date on which the contract is entered into, has a total estimated cash income, including all farm and nonfarm income, that will equal or exceed the total estimated cash expenses, including all farm and nonfarm expenses, to be incurred by the borrower during the period; and</text> </subparagraph></paragraph><paragraph id="IDBD932829A1654628A6F4514DB2EC5637"><enum>(2)</enum><text>during the term of the contract, the lender reduces the annual rate of interest payable on the loan by a minimum percentage specified in the contract.</text> </paragraph></subsection><subsection id="ID34DE4893E76E4F868090D49A5006D42E"><enum>(c)</enum><header>Payments</header> <paragraph id="idA2B66C568B9A4F90982550408859544F"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), in return for a contract entered into by a lender under subsection (b) for the reduction of the interest rate paid on a loan, the Secretary shall make payments to the lender in an amount equal to not more than 100 percent of the cost of reducing the annual rate of interest payable on the loan.</text> </paragraph><paragraph id="idC2D6F56E091845BE9DD3723F19C51DE9"><enum>(2)</enum><header>Limitation</header><text>Payments under paragraph (1) may not exceed the cost of reducing the rate by more than 400 basis points.</text> </paragraph></subsection><subsection id="IDD89BFBDC819D42D8B54082054DD410C4"><enum>(d)</enum><header>Term</header><text>The term of a contract entered into under this section to reduce the interest rate on a guaranteed loan may not exceed the outstanding term of the loan.</text> </subsection><subsection id="ID2153AC49E8204F0EA39E4F394E4C4C91"><enum>(e)</enum><header>Condition on foreclosure</header><text>Notwithstanding any other law, any contract of guarantee on a farm loan entered into under this subtitle shall contain a condition that the lender of the loan may not initiate a foreclosure action on the loan until 60 days after a determination is made with respect to the eligibility of the borrower to participate in the program established under this section.</text> </subsection></section><section id="IDDE1997D090354E8DA24874FE874DB981"><enum>3414.</enum><header>Homestead property</header> <subsection id="IDC0717A5820F842668B663C1230224537"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="ID26D173D120E940DCB413587A52B17849"><enum>(1)</enum><header>Administrator</header><text>The term <term>Administrator</term> means the Administrator of the Small Business Administration.</text> </paragraph><paragraph id="ID1DF958A8F55F4342A91FD7AA030F96FF"><enum>(2)</enum><header>Borrower-owner</header><text>The term <term>borrower-owner</term> means—</text> <subparagraph id="ID5E27CC67654C441D8192D2FCAE9DCBB3"><enum>(A)</enum><text>a borrower-owner of a loan made or guaranteed by the Secretary or the Administrator who meets the eligibility requirements of subsection (c)(1); or</text> </subparagraph><subparagraph id="ID697F39F263CA450C97AD2E14C32FA6F3"><enum>(B)</enum><text>in a case in which an owner of homestead property pledged the property to secure the loan and the owner is different than the borrower, the owner.</text> </subparagraph></paragraph><paragraph id="ID5C7A28F6BF7C4CFDB2FFA8DD8FF9D914"><enum>(3)</enum><header>Farm program loan</header><text>The term <term>farm program loan</term> means a loan made by the Administrator under the <act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C. 631 et seq.) for any of the purposes authorized for loans under chapter 1 or 2.</text> </paragraph><paragraph id="IDB8672D6DB9244228B7BAC71AB937C1BB"><enum>(4)</enum><header>Homestead property</header><text>The term <term>homestead property</term> means—</text> <subparagraph id="id567737D91F9E4F3694D226FA59722113"><enum>(A)</enum><text>the principal residence and adjoining property possessed and occupied by a borrower-owner, including a reasonable number of farm outbuildings located on the adjoining land that are useful to any occupant of the homestead; and</text> </subparagraph><subparagraph id="id5CEC665B5D724EB4AD7B6E3BDB59A5DE"><enum>(B)</enum><text>not more than 10 acres of adjoining land that is used to maintain the family of the borrower-owner.</text> </subparagraph></paragraph></subsection><subsection id="ID6D7B87EFF5F445FA8A4DD6B66822A989"><enum>(b)</enum><header>Retention of homestead property</header> <paragraph id="IDE2E9A90DE7B24F7391C50D72CA63B3AF"><enum>(1)</enum><header>In general</header><text>The Secretary or the Administrator shall, on application by a borrower-owner who meets the eligibility requirements of subsection (c)(1), permit the borrower-owner to retain possession and occupancy of homestead property under the terms set forth, and until the action described in this section has been completed, if—</text> <subparagraph id="ID685F1BA6B876406688C1DD5B384B08B8"><enum>(A)</enum><text>the Secretary forecloses or takes into inventory property securing a loan made under this subtitle;</text> </subparagraph><subparagraph id="ID2464C96F7872418A89C3D3F90842688B"><enum>(B)</enum><text>the Administrator forecloses or takes into inventory property securing a farm program loan made under the <act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C. 631 et seq.); or</text> </subparagraph><subparagraph id="ID52FCC009D3DE4FCF95B2DCAA8F62B9BE"><enum>(C)</enum><text>the borrower-owner of a loan made by the Secretary or the Administrator files a petition in bankruptcy that results in the conveyance of the homestead property to the Secretary or the Administrator, or agrees to voluntarily liquidate or convey the property in whole or in part.</text> </subparagraph></paragraph><paragraph id="ID9793808850D143218E1E7023F23A66AB"><enum>(2)</enum><header>Period of occupancy</header><text>Subject to subsection (c), the Secretary or the Administrator shall not grant a period of occupancy of less than 3 nor more than 5 years.</text> </paragraph></subsection><subsection id="IDC396B3B348484F8C96888EC1ACA94187"><enum>(c)</enum><header>Eligibility</header> <paragraph id="ID1F283AD8828846DD9789882677A138B6"><enum>(1)</enum><header>In general</header><text>To be eligible to occupy homestead property, a borrower-owner of a loan made by the Secretary or the Administrator shall—</text> <subparagraph id="ID9E7DCA5B461B4B888EB89C5F79D74F4D"><enum>(A)</enum><text>apply for the occupancy not later than 30 days after the property is acquired by the Secretary or Administrator;</text> </subparagraph><subparagraph id="ID65F673969C9A40C895CE10A5E813F798"><enum>(B)</enum><text>have received from farming operations gross farm income that is reasonably commensurate with—</text> <clause id="IDF559A085404A477DB73DCFDB043D2AF0"><enum>(i)</enum><text>the size and location of the farming unit of the borrower-owner; and</text> </clause><clause id="ID7A8CDD19C9DE443797681F8F337F6C59"><enum>(ii)</enum><text>local agricultural conditions (including natural and economic conditions), during at least 2 calendar years of the 6-year period preceding the calendar year in which the application is made;</text> </clause></subparagraph><subparagraph id="IDAF9EBA07953742AE9514228C2435F15E"><enum>(C)</enum><text>have received from farming operations at least 60 percent of the gross annual income of the borrower-owner and any spouse of the borrower-owner during at least 2 calendar years of the 6-year period described in subparagraph (B);</text> </subparagraph><subparagraph id="ID1C635214E0C649B794A741DB77B66F74"><enum>(D)</enum><text>have continuously occupied the homestead property during the 6-year period described in subparagraph (B), except that the requirement of this subparagraph may be waived if a borrower-owner, due to circumstances beyond the control of the borrower-owner, had to leave the homestead property for a period of time not to exceed 12 months during the 6-year period;</text> </subparagraph><subparagraph id="ID35B9302E5196472782B2F368784F513A"><enum>(E)</enum><text>during the period of occupancy of the homestead property, pay a reasonable sum as rent for the property to the Secretary or the Administrator in an amount substantially equivalent to rents charged for similar residential properties in the area in which the homestead property is located;</text> </subparagraph><subparagraph id="ID75636D24CB1E40E1840D4954BE25432A"><enum>(F)</enum><text>during the period of the occupancy of the homestead property, maintain the property in good condition; and</text> </subparagraph><subparagraph id="ID1FC50B6501BE4092B907696C04510CC0"><enum>(G)</enum><text>meet such other reasonable and necessary terms and conditions as the Secretary may require.</text> </subparagraph></paragraph><paragraph id="ID51DE4891AC56400AB8E041F15F0FBAC4"><enum>(2)</enum><header>Definition of farming operations</header><text>In subparagraphs (B) and (C) of paragraph (1), the term <term>farming operations</term> includes rent paid by a lessee of agricultural land during a period in which the borrower-owner, due to circumstances beyond the control of the borrower-owner, is unable to actively farm the land.</text> </paragraph><paragraph id="IDA891B045EAC04D6397BFDAC4823B943E"><enum>(3)</enum><header>Termination of rights</header> <subparagraph id="IDFF6A3790455A4DA4B007D36CCED0BE61"><enum>(A)</enum><header>In general</header><text>For purposes of paragraph (1)(E), the failure of the borrower-owner to make a timely rental payment shall constitute cause for the termination of all rights of the borrower-owner to possession and occupancy of the homestead property under this section.</text> </subparagraph><subparagraph id="ID3755C941A5414AAF871A97BEB54F03EE"><enum>(B)</enum><header>Procedure for termination</header><text>In effecting a termination under subparagraph (A), the Secretary shall—</text> <clause id="idDB08BE0C8FED4306A34F387BB8FDE68C"><enum>(i)</enum><text>afford the borrower-owner or lessee the notice and hearing procedural rights described in subtitle H of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6991 et seq.); and</text> </clause><clause id="id22DD8E37923342C7B350AE0A8EFCD503"><enum>(ii)</enum><text>comply with any applicable State and local law governing eviction of a person from residential property.</text> </clause></subparagraph></paragraph><paragraph id="IDFCB8520A7E4447FB89C448A5E906CC11"><enum>(4)</enum><header>Rights of borrower-owner</header> <subparagraph id="ID1F908FCA39E648F3B489764AF8171B18"><enum>(A)</enum><header>Period of occupancy</header><text>Subject to subsection (b)(2), the period of occupancy allowed the borrower-owner of homestead property under this section shall be the period requested in writing by the borrower-owner.</text> </subparagraph><subparagraph id="ID8654B26DCDCE4304A4D1446D10B73BDA"><enum>(B)</enum><header>Right to reacquire</header> <clause id="ID3388B4317B08402E9C412C4F70E4138E"><enum>(i)</enum><header>In general</header><text>During the period the borrower-owner occupies the homestead property, the borrower-owner shall have a right to reacquire the homestead property on such terms and conditions as the Secretary shall determine.</text> </clause><clause id="idF517925BD88A492F8AF831EB57D81F1D"><enum>(ii)</enum><header>Socially disadvantaged borrower-owner</header><text>During the period of occupancy of a borrower-owner who is a socially disadvantaged farmer, the borrower-owner or a member of the immediate family of the borrower-owner shall have a right of first refusal to reacquire the homestead property on such terms and conditions as the Secretary shall determine.</text> </clause><clause id="IDF6EB956AE4AB4C93B9885F24B4974581"><enum>(iii)</enum><header>Independent appraisal</header><text>The Secretary may not demand a payment for the homestead property that is in excess of the current market value of the homestead property as established by an independent appraisal.</text> </clause><clause id="IDC617E8F9E0264F02B6C6517FB169363C"><enum>(iv)</enum><header>Conduct of appraisal</header><text>An independent appraisal under clause (iii) shall be conducted by an appraiser selected by the borrower-owner, or, in the case of a borrower-owner who is a socially disadvantaged farmer, the immediate family member of the borrower-owner, from a list of 3 appraisers approved by the county supervisor.</text> </clause></subparagraph></paragraph><paragraph id="IDF33D60AD81264820A9482896F668A454"><enum>(5)</enum><header>Transfer of rights</header> <subparagraph id="idF092F73AE4844A18874245946F04025A"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), no right of a borrower-owner under this section, and no agreement entered into between the borrower-owner and the Secretary for occupancy of the homestead property, shall be transferable or assignable by the borrower-owner or by operation of law.</text> </subparagraph><subparagraph id="id27901CF3E287450F8E6BF04733915362"><enum>(B)</enum><header>Death or incompetency</header><text>In the case of death or incompetency of the borrower-owner, the right and agreement shall be transferable to a spouse of the borrower-owner if the spouse agrees to comply with any terms and conditions of the right or agreement.</text> </subparagraph></paragraph><paragraph id="IDEA15396AC5CC43F78537F9BE7DC3A245"><enum>(6)</enum><header>Notification</header><text>Not later than the date of acquisition of the property securing a loan made under this title, the Secretary shall notify the borrower-owner of the property of the availability of homestead protection rights under this section.</text> </paragraph></subsection><subsection id="IDE25F68F2C6924D9CB1D11FCE4DABC923"><enum>(d)</enum><header>End of period of occupancy</header> <paragraph id="ID8688E8EAAAF14F718315B5B5F421C4B0"><enum>(1)</enum><header>In general</header><text>At the end of the period of occupancy allowed a borrower-owner under subsection (c), the Secretary or the Administrator shall grant to the borrower-owner a right of first refusal to reacquire the homestead property on such terms and conditions (which may include payment of principal in installments) as the Secretary or the Administrator shall determine.</text> </paragraph><paragraph id="ID44B51C49163B4717A3B01BA475B70A2D"><enum>(2)</enum><header>Terms and conditions</header><text>The terms and conditions granted under paragraph (1) may not be less favorable than those offered by the Secretary or Administrator or intended by the Secretary or Administrator to be offered to any other buyer.</text> </paragraph></subsection><subsection id="ID5D429B2D9A714471AB58808900C3A61E"><enum>(e)</enum><header>Maximum payment of principal</header> <paragraph id="id2A51FAFD6AB94F128148DD446D42137C"><enum>(1)</enum><header>In general</header><text>At the time a reacquisition agreement is entered into, the Secretary or the Administrator may not demand a total payment of principal that is in excess of the value of the homestead property.</text> </paragraph><paragraph id="id2E7E867D01EA47B49628211E71290013"><enum>(2)</enum><header>Determination of value</header><text>To the maximum extent practicable, the value of the homestead property shall be determined by an independent appraisal made during the 180 day period beginning on the date of receipt of the application of the borrower-owner to retain possession and occupancy of the homestead property.</text> </paragraph></subsection><subsection id="IDB06EEC3000784B1F875725B044741FE8"><enum>(f)</enum><header>Title not needed To enter into contracts</header><text>The Secretary may enter into a contract authorized by this section before the Secretary acquires title to the homestead property that is the subject of the contract.</text> </subsection><subsection id="ID90625FDC15AB45248793C03019F01EC6"><enum>(g)</enum><header>State law prevails</header><text>In the event of a conflict between this section and a provision of State law relating to the right of a borrower-owner to designate for separate sale or redeem part or all of the real property securing a loan foreclosed on by a lender to the borrower-owner, the provision of State law shall prevail.</text> </subsection></section><section id="IDCCF07FB91720444FB428D5B24FEC43D3"><enum>3415.</enum><header>Transfer of inventory land</header> <subsection id="IDA44BE017C33E4AD281AA09DC335E18CB"><enum>(a)</enum><header>In general</header><text>Subject to subsection (b), the Secretary may transfer to a Federal or State agency, for conservation purposes, any real property, or interest in real property, administered by the Secretary under this subtitle—</text> <paragraph id="IDBBDC89A3328B4ACC898D9AEEE6ECB9C7"><enum>(1)</enum><text>with respect to which the rights of all prior owners and operators have expired;</text> </paragraph><paragraph id="ID047FDA19B6B14204976E7269515139DE"><enum>(2)</enum><text>that is eligible to be disposed of in accordance with section 3409; and</text> </paragraph><paragraph id="ID847B52ECFA5547FB962DCBE34B368592"><enum>(3)</enum><text>that—</text> <subparagraph id="ID4169DE52B16E4C24B79945A1A20F2777"><enum>(A)</enum><text>has marginal value for agricultural production;</text> </subparagraph><subparagraph id="IDF25BFA3E7E764F6B9C947C3B9BC87E91"><enum>(B)</enum><text>is environmentally sensitive; or</text> </subparagraph><subparagraph id="ID108092902046403CBCC6836DF07C3EA6"><enum>(C)</enum><text>has special management importance.</text> </subparagraph></paragraph></subsection><subsection id="ID2590412D50724661A2E4B4375F0DDE82"><enum>(b)</enum><header>Conditions</header><text>The Secretary may not transfer any property or interest in property under subsection (a) unless—</text> <paragraph id="IDE32222EA0B8A447CA3246EB2BE3EF9F7"><enum>(1)</enum><text>at least 2 public notices are given of the transfer;</text> </paragraph><paragraph id="IDF750D8910C974C9790808FBF4E2830A2"><enum>(2)</enum><text>if requested, at least 1 public meeting is held prior to the transfer; and</text> </paragraph><paragraph id="ID7A38C133ED3D4467A7CCA227DE203CAE"><enum>(3)</enum><text>the Governor and at least 1 elected county official of the State and county in which the property is located are consulted prior to the transfer.</text> </paragraph></subsection></section><section id="ID3042648DD5C64F7F96ABFA526A14BF25"><enum>3416.</enum><header>Target participation rates</header> <subsection id="IDEF60757681194EE08B5F677583887253"><enum>(a)</enum><header>Establishment</header> <paragraph id="ID4662C391711F49A49B1C3ABBF1CB51AF"><enum>(1)</enum><header>In general</header><text>The Secretary shall establish annual target participation rates, on a county-wide basis, that shall ensure that members of socially disadvantaged groups shall—</text> <subparagraph id="id7B9EA7A6D5DE4DF798E78EF2181BCCA0"><enum>(A)</enum><text>receive loans made or guaranteed under chapter 1; and</text> </subparagraph><subparagraph id="id2BA2F17424F44E829DBCB6936E459362"><enum>(B)</enum><text>have the opportunity to purchase or lease farmland acquired by the Secretary under this subtitle.</text> </subparagraph></paragraph><paragraph id="ID4F563D1AC05D41BFA9F35BEA70CEA6CE"><enum>(2)</enum><header>Group population</header><text>Except as provided in paragraph (3), in establishing the target rates, the Secretary shall take into consideration—</text> <subparagraph id="idABE30397F09A4E24B729ED8C6182B14B"><enum>(A)</enum><text>the portion of the population of the county made up of the socially disadvantaged groups; and</text> </subparagraph><subparagraph id="id6CAEB446D32E4E64B4B284CEE817094D"><enum>(B)</enum><text>the availability of inventory farmland in the county.</text> </subparagraph></paragraph><paragraph id="ID10C8A64DF5B14DD3ACBF27FE81CDDB97"><enum>(3)</enum><header>Gender</header><text>In the case of gender, target participation rates shall take into consideration the number of current and potential socially disadvantaged farmers in a State in proportion to the total number of farmers in the State.</text> </paragraph></subsection><subsection id="ID9EE84ED8C471446FA64226D18958B300"><enum>(b)</enum><header>Reservation and allocation</header> <paragraph id="IDC4AE44A7CBCA46DC9E2CB051590A9CA0"><enum>(1)</enum><header>Reservation</header><text>To the maximum extent practicable, the Secretary shall reserve sufficient loan funds made available under chapter 1 for use by members of socially disadvantaged groups identified under target participation rates established under subsection (a).</text> </paragraph><paragraph id="ID45685E3BA70B42698A77BF7CF4A93600"><enum>(2)</enum><header>Allocation</header><text>The Secretary shall allocate the loans on the basis of the proportion of members of socially disadvantaged groups in a county and the availability of inventory farmland, with the greatest amount of loan funds being distributed in the county with the greatest proportion of socially disadvantaged group members and the greatest quantity of available inventory farmland.</text> </paragraph><paragraph id="ID5643F70CA69548A689319DF5B1D9E087"><enum>(3)</enum><header>Indian reservations</header><text>In distributing loan funds in counties within the boundaries of an Indian reservation, the Secretary shall allocate the funds on a reservation-wide basis.</text> </paragraph></subsection><subsection id="IDDE5B6E5A5FB141778DF7BAE7CB2A55B9"><enum>(c)</enum><header>Operating loans</header> <paragraph id="ID3828085E49B74CEAAC9D8A06DE4A0B0D"><enum>(1)</enum><header>Establishment</header> <subparagraph id="id761DF5F6983F442C9C5382DD60308D69"><enum>(A)</enum><header>In general</header><text>The Secretary shall establish annual target participation rates that shall ensure that socially disadvantaged farmers receive loans made or guaranteed under chapter 2.</text> </subparagraph><subparagraph id="id3A19F9B6CA8448B4B470CDD8014D9B9C"><enum>(B)</enum><header>Considerations</header><text>In establishing the target rates, the Secretary shall consider the number of socially disadvantaged farmers in a State in proportion to the total number of farmers in the State.</text> </subparagraph></paragraph><paragraph id="ID6D7E441564E24EEA85F20D7F5E02404A"><enum>(2)</enum><header>Reservation and allocation</header> <subparagraph id="idC33E77F4CEA6436CA94528C7B37E8721"><enum>(A)</enum><header>In general</header><text>To the maximum extent practicable, the Secretary shall reserve and allocate the proportion of the loan funds of each State made available under chapter 2 that is equal to the target participation rate of the State for use by the socially disadvantaged farmers in the State.</text> </subparagraph><subparagraph id="id9A4E62D85FEE4612BB143B7B56761D87"><enum>(B)</enum><header>Distribution</header><text>To the maximum extent practicable, the Secretary shall distribute the total loan funds reserved under subparagraph (A) on a county-by-county basis according to the number of socially disadvantaged farmers in the county.</text> </subparagraph><subparagraph id="idDA5FF9075B18440AB31E2E9E2801F8C7"><enum>(C)</enum><header>Reallocation of unused funds</header><text>Any funds reserved and allocated under this paragraph but not used within a State shall, to the extent necessary to satisfy pending applications under this title, be available for use by socially disadvantaged farmers in other States, as determined by the Secretary, and any remaining funds shall be reallocated within the State.</text> </subparagraph></paragraph></subsection><subsection id="IDCA495BF0FE654628AC5B265D8135D273"><enum>(d)</enum><header>Report</header><text>The Secretary shall prepare and submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the annual target participation rates and the success in meeting the rates.</text> </subsection><subsection id="ID2DFDCC03DF7249DF98BAB27F57E43DE2"><enum>(e)</enum><header>Implementation consistent with supreme court holding</header><text>Not later than 180 days after April 4, 1996, the Secretary shall ensure that the implementation of this section is consistent with the holding of the Supreme Court in Adarand Constructors, Inc. v. Federico Pena, Secretary of Transportation, 115 S. Ct. 2097 (1995).</text> </subsection></section><section id="ID5A3A9814180B43B8A8B6A6882C1764F1"><enum>3417.</enum><header>Compromise or adjustment of debts or claims by guaranteed lender</header> <subsection id="ID82081F917C424CD988C102D0066E50C0"><enum>(a)</enum><header>Loss by lender</header><text>If the lender of a guaranteed farmer program loan takes any action described in section 3903(a)(4) with respect to the loan and the Secretary approves the action, for purposes of the guarantee, the lender shall be treated as having sustained a loss equal to the amount by which—</text> <paragraph id="ID9071ED51C17944BB99D645677112DF98"><enum>(1)</enum><text>the outstanding balance of the loan immediately before the action; exceeds</text> </paragraph><paragraph id="ID93497A9568824ED795F04C066A2FB878"><enum>(2)</enum><text>the outstanding balance of the loan immediately after the action.</text> </paragraph></subsection><subsection id="ID6DC30FEC7F1E4DE89705FB64509A8FC5"><enum>(b)</enum><header>Net present value of loan</header><text>The Secretary shall approve the taking of an action described in section 3903(a)(4) by the lender of a guaranteed farmer program loan with respect to the loan if the action reduces the net present value of the loan to an amount equal to not less than the greater of—</text> <paragraph id="ID5A5ED2480C754055A151555629BF0BBC"><enum>(1)</enum><text>the greatest net present value of a loan the borrower could reasonably be expected to repay; and</text> </paragraph><paragraph id="ID162FEA911F82485D930ADDBBFB4B44C6"><enum>(2)</enum><text>the difference between—</text> <subparagraph id="id39ED6385A5E941A183223EAE3270FA83"><enum>(A)</enum><text>the greatest amount that the lender of the loan could reasonably expect to recover from the borrower through bankruptcy, or liquidation of the property securing the loan; and</text> </subparagraph><subparagraph id="id519F495A21C24A1E9AEDDDB61545A642"><enum>(B)</enum><text>all reasonable and necessary costs and expenses that the lender of the loan could reasonably expect to incur to preserve or dispose of the property (including all associated legal and property management costs) in the course of such a bankruptcy or liquidation.</text> </subparagraph></paragraph></subsection><subsection id="ID6E3F3EED1DE7466CB2E2590981F63346"><enum>(c)</enum><header>No limitation on authority</header><text>This section shall not limit the authority of the Secretary to enter into a shared appreciation arrangement with a borrower under section 3411(e).</text> </subsection></section><section id="IDED2882B4B53947CB9ED09AFF8695605A"><enum>3418.</enum><header>Waiver of mediation rights by borrowers</header><text display-inline="no-display-inline">The Secretary may not make or guarantee any farmer program loan to a farm borrower on the condition that the borrower waive any right under the mediation program of any State.</text> </section><section id="ID0B7DB78E59FC407980C44272C35BB084"><enum>3419.</enum><header>Borrower training</header> <subsection id="ID7F9D3E0A12C14E1CB05E9BBD7B1D6622"><enum>(a)</enum><header>In general</header><text>The Secretary shall contract to provide educational training to all borrowers of direct loans made under this subtitle in financial and farm management concepts associated with commercial farming.</text> </subsection><subsection id="IDC40E215D1AA54E67BF342502EB6FF6A3"><enum>(b)</enum><header>Contract</header> <paragraph id="IDC9817ACB49FC4FBA9F3A199FEEC2AC36"><enum>(1)</enum><header>In general</header><text>The Secretary may contract with a State or private provider of farm management and credit counseling services (including a community college, the extension service of a State, a State department of agriculture, or a nonprofit organization) to carry out this section.</text> </paragraph><paragraph id="IDFD5730DD213347818EE12D4615EEFE40"><enum>(2)</enum><header>Consultation</header><text>The Secretary may consult with the chief executive officer of a State concerning the identity of the contracting organization and the process for contracting.</text> </paragraph></subsection><subsection id="ID4B3851558C1D41699B1899E69417183D"><enum>(c)</enum><header>Eligibility for loans</header> <paragraph id="IDFE22184E1C244EB1921805A7A56DBCC8"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), to be eligible to obtain a direct or guaranteed loan under this subtitle, a borrower shall be required to obtain management assistance under this section, appropriate to the management ability of the borrower during the determination of eligibility for the loan.</text> </paragraph><paragraph id="ID22419234FA494B0981E341B022ABEE52"><enum>(2)</enum><header>Loan conditions</header><text>The need of a borrower who satisfies the criteria set out in section 3101(b)(1)(B) or 3201(b)(1)(B) for management assistance under this section shall not be cause for denial of eligibility of the borrower for a direct or guaranteed loan under this subtitle.</text> </paragraph></subsection><subsection id="ID91714D0B659049C4887E84F3094DCA29"><enum>(d)</enum><header>Guidelines and curriculum</header><text>The Secretary shall issue regulations establishing guidelines and curriculum for the borrower training program established under this section.</text> </subsection><subsection id="IDB8A8ABD2A0E54D7DBA9FAFF09C7D2949"><enum>(e)</enum><header>Payment</header><text>A borrower—</text> <paragraph id="idF2E3C8E68A6A4544ACF28517F117A43B"><enum>(1)</enum><text>shall pay for training received under this section; and</text> </paragraph><paragraph id="id118716D5D5AC41248088F3A7D7D9591F"><enum>(2)</enum><text>may use funds from operating loans made under chapter 2 to pay for the training.</text> </paragraph></subsection><subsection id="ID65EDA59842FD4AC7AC9D3614069DEC53"><enum>(f)</enum><header>Waivers</header> <paragraph id="idF367B153775A443A9C5DB3C91216831D"><enum>(1)</enum><header>In general</header><text>The Secretary may waive the requirements of this section for an individual borrower on a determination that the borrower demonstrates adequate knowledge in areas described in this section.</text> </paragraph><paragraph id="IDca0343af363d4eb6a09fd87a430ca401"><enum>(2)</enum><header>Criteria</header><text>The Secretary shall establish criteria providing for the application of paragraph (1) consistently in all counties nationwide.</text> </paragraph></subsection></section><section id="ID542C67181C014950939FCC0EF086A1A7"><enum>3420.</enum><header>Loan assessments</header> <subsection id="ID815B34403BAF4FD99120CDDB25E0BD3E"><enum>(a)</enum><header>In general</header><text>After an applicant is determined to be eligible for assistance under this subtitle, the Secretary shall evaluate, in accordance with regulations issued by the Secretary, the farming plan and financial situation of each qualified farmer applicant.</text> </subsection><subsection id="ID08B24D305E49453F8CD2D22D1CD83250"><enum>(b)</enum><header>Determinations</header><text>In evaluating the farming plan and financial situation of an applicant under this section, the Secretary shall determine—</text> <paragraph id="IDFCFEFD4EDE984B0EB22CC8DAFCC61589"><enum>(1)</enum><text>the amount that the applicant needs to borrow to carry out the proposed farming plan;</text> </paragraph><paragraph id="IDED4AC47FEAD6489DA3E0247A032B635D"><enum>(2)</enum><text>the rate of interest that the applicant would need to be able to cover expenses and build an adequate equity base;</text> </paragraph><paragraph id="ID1653E9A1942540A5AE6D073229FE48C5"><enum>(3)</enum><text>the goals of the proposed farming plan of the applicant;</text> </paragraph><paragraph id="ID4C3E0A7FD1E3495891EB4347EEAF1458"><enum>(4)</enum><text>the financial viability of the plan and any changes that are necessary to make the plan viable; and</text> </paragraph><paragraph id="IDAB4C875A97E8428BB68E552C01C2ABAE"><enum>(5)</enum><text>whether assistance is necessary under this title and, if so, the amount of the assistance.</text> </paragraph></subsection><subsection id="ID7016708EB9D4479E89D24CC2AB1AD1FE"><enum>(c)</enum><header>Contract</header><text>The Secretary may contract with a third party (including an entity that is eligible to provide borrower training under section 3419(b)) to conduct a loan assessment under this section.</text> </subsection><subsection id="IDAE98EEED336D4302B69055A50A336094"><enum>(d)</enum><header>Review of loans</header> <paragraph id="ID2B75EA55BF874D948792FDC6A6F0264B"><enum>(1)</enum><header>In general</header><text>Loan assessments conducted under this section shall include biannual review of direct loans, and periodic review (as determined necessary by the Secretary) of guaranteed loans, made under this title to assess the progress of a borrower in meeting the goals for the farm operation.</text> </paragraph><paragraph id="ID49B8047E28E543CE8C7D643427348B21"><enum>(2)</enum><header>Contracts</header><text>The Secretary may contract with an entity that is eligible to provide borrower training under section 3419(b) to conduct a loan review under paragraph (1).</text> </paragraph><paragraph id="ID9AA5A7C66A904E9187CD29D1ECBBC022"><enum>(3)</enum><header>Problem assessments</header><text>If a borrower is delinquent in payments on a direct or guaranteed loan made under this title, the Secretary or the contracting entity shall determine the cause of, and action necessary to correct, the delinquency.</text> </paragraph></subsection><subsection id="ID822A02E2100A4E6CAB694F68005991AC"><enum>(e)</enum><header>Guidelines</header><text>The Secretary shall issue regulations providing guidelines for loan assessments conducted under this section.</text> </subsection></section><section id="IDDDA54EF51FC14997B57B43370B6C9C2B"><enum>3421.</enum><header>Supervised credit</header><text display-inline="no-display-inline">The Secretary shall provide adequate training to employees of the Farm Service Agency on credit analysis and financial and farm management—</text> <paragraph id="ID255CF5077E03493E91A2C151F7B47C3F"><enum>(1)</enum><text>to better acquaint the employees with what constitutes adequate financial data on which to base a direct or guaranteed loan approval decision; and</text> </paragraph><paragraph id="ID3A8003BA198C43019E3277440992204E"><enum>(2)</enum><text>to ensure proper supervision of farmer program loans.</text> </paragraph></section><section id="ID7CEA1E7B6E87479F91D2BDDD893A8A17"><enum>3422.</enum><header>Market placement</header><text display-inline="no-display-inline">The Secretary shall establish a market placement program for a qualified beginning farmer and any other borrower of farmer program loans that the Secretary believes has a reasonable chance of qualifying for commercial credit with a guarantee provided under this subtitle.</text> </section><section id="ID8890E59235A244BEAE0D900755F30310"><enum>3423.</enum><header>Recordkeeping of loans by gender of borrower</header><text display-inline="no-display-inline">The Secretary shall classify, by gender, records of applicants for loans and loan guarantees under this subtitle.</text> </section><section id="ID549AC22C2FEF4C699278F8B1514DDEEF"><enum>3424.</enum><header>Crop insurance requirement</header> <subsection id="IDAD5B3AD027C04A079C9D6A2D80482949"><enum>(a)</enum><header>In general</header><text>As a condition of obtaining any benefit (including a direct loan, loan guarantee, or payment) described in subsection (b), a borrower shall be required to obtain at least catastrophic risk protection insurance coverage under section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) for the crop and crop year for which the benefit is sought, if the coverage is offered by the Federal Crop Insurance Corporation.</text> </subsection><subsection id="IDC232A8D96D384375B52F5D558C6BF7CF"><enum>(b)</enum><header>Applicable benefits</header><text>Subsection (a) shall apply to—</text> <paragraph id="ID8F269CC096E04BAD9F6E0176F27D8938"><enum>(1)</enum><text>a farm ownership loan under section 3102;</text> </paragraph><paragraph id="ID24427AFB1321463CA03C46B6DB394F7E"><enum>(2)</enum><text>an operating loan under section 3202; and</text> </paragraph><paragraph id="IDA0E918F3434B4823A873EA0C55E156C0"><enum>(3)</enum><text>an emergency loan under section 3301.</text> </paragraph></subsection></section><section id="IDCAC9D1AC37084516A76AAF6431699FFB"><enum>3425.</enum><header>Loan and loan servicing limitations</header> <subsection id="ID3D7904C664A04E7CAE4291EAC95668DD"><enum>(a)</enum><header>Delinquent borrowers prohibited from obtaining direct operating loans</header><text>The Secretary may not make a direct operating loan under chapter 2 to a borrower who is delinquent on any loan made or guaranteed under this subtitle.</text> </subsection><subsection id="ID0A2CAEE2907A4E1389919B60FFBB59CF"><enum>(b)</enum><header>Loans prohibited for borrowers that have received debt forgiveness</header> <paragraph id="IDfa02c67f258a459c9d6f37fe5b3b215f"><enum>(1)</enum><header>Prohibitions</header><text>Except as provided in paragraph (2)—</text> <subparagraph id="ID08e20eed83e840f8ba04f1ea5d3290ca"><enum>(A)</enum><text>the Secretary may not make a loan under this subtitle to a borrower that has received debt forgiveness on a loan made or guaranteed under this subtitle; and</text> </subparagraph><subparagraph id="IDb78b69bc2c014fbc85b3fa34a3f1a89e"><enum>(B)</enum><text>the Secretary may not guarantee a loan under this subtitle to a borrower that has received—</text> <clause id="ID8defcbcf55ea435dbddf0b9e8d9a4698"><enum>(i)</enum><text>debt forgiveness after April 4, 1996, on a loan made or guaranteed under this subtitle; or</text> </clause><clause id="IDb1f9785369fb4c2498af06103a83597f"><enum>(ii)</enum><text>received debt forgiveness on more than 3 occasions on or before April 4, 1996.</text> </clause></subparagraph></paragraph><paragraph id="IDab75a40da8294fb8b9a3cf12c8f27210"><enum>(2)</enum><header>Exceptions</header> <subparagraph id="ID8139d85528b64d2db1a4852b76b11d56"><enum>(A)</enum><header>In general</header><text>The Secretary may make a direct or guaranteed farm operating loan for paying annual farm operating expenses of a borrower who—</text> <clause id="ID63fa4179be7d44a7aeb5b0ab10de4a1e"><enum>(i)</enum><text>was restructured with a write-down under section 3411;</text> </clause><clause id="ID5acb4f003020446fb8f17111ad9c7823"><enum>(ii)</enum><text>is current on payments under a confirmed reorganization plan under chapters 1 11, 12, or 13 of title 11 of the United States Code; or</text> </clause><clause id="IDa1adaefd675d45e99858cb739d955253"><enum>(iii)</enum><text>received debt forgiveness on not more than 1 occasion resulting directly and primarily from a major disaster or emergency designated by the President on or after April 4, 1996, under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).</text> </clause></subparagraph><subparagraph id="ID89c6a91a81c24e8080221db6e16613ec"><enum>(B)</enum><header>Emergency loans</header><text>The Secretary may make an emergency loan under section 3301 to a borrower that—</text> <clause id="ID553f3054981a4e5e97a015df59a05457"><enum>(i)</enum><text>on or before April 4, 1996, received not more than 1 debt forgiveness on a loan made or guaranteed under this subtitle; and</text> </clause><clause id="IDe0ee884c3eed4e6393d88a62c19f088d"><enum>(ii)</enum><text>after April 4, 1996, has not received debt forgiveness on a loan made or guaranteed under this subtitle.</text> </clause></subparagraph></paragraph></subsection><subsection id="ID8AF641E1FD314CAAACDBA6320DFA402B"><enum>(c)</enum><header>No more than 1 debt forgiveness for a borrower on a direct loan</header><text>The Secretary may not provide to a borrower debt forgiveness on a direct loan made under this subtitle if the borrower has received debt forgiveness on another direct loan made under this subtitle.</text> </subsection></section><section id="IDBEFAD8E819314E6E860AB8B86B077A9C"><enum>3426.</enum><header>Short form certification of farm program borrower compliance</header><text display-inline="no-display-inline">The Secretary shall develop and use a consolidated short form for farmer program loan borrowers to use in certifying compliance with any applicable provision of law (including a regulation) that serves as an eligibility prerequisite for a loan made under this subtitle.</text> </section><section commented="no" display-inline="no-display-inline" id="IDAF6E6B66D7B74FF5B008FC1D8B31C530" section-type="subsequent-section"><enum>3427.</enum><header display-inline="yes-display-inline">Underwriting forms and standards</header><text display-inline="no-display-inline">In the administration of this subtitle, the Secretary shall, to the extent practicable, use underwriting forms, standards, practices, and terminology similar to the forms, standards, practices, and terminology used by lenders in the private sector.</text> </section><section id="IDE1AAD0DC037146AA8D5639AEA666339B"><enum>3428.</enum><header>Beginning farmer individual development accounts pilot program</header> <subsection id="ID7A1E27559464475B95BE7F61ECECE18B"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="ID840B31C7BAAA439BB5D4750982D835D0"><enum>(1)</enum><header>Demonstration program</header><text>The term <term>demonstration program</term> means a demonstration program carried out by a qualified entity under the pilot program established in subsection (b)(1).</text> </paragraph><paragraph id="IDAC78036A0317481293B07832B5D36728"><enum>(2)</enum><header>Eligible participant</header><text>The term <term>eligible participant</term> means a qualified beginning farmer that—</text> <subparagraph id="ID821E3F0EE97A4FD4A4D4D8E18EC10DC1"><enum>(A)</enum><text>lacks significant financial resources or assets; and</text> </subparagraph><subparagraph id="IDE54849D86BA343D4B6C25DB2000F5DA2"><enum>(B)</enum><text>has an income that is less than—</text> <clause id="IDC552CB199BD34BA0B13C50E30D1E997A"><enum>(i)</enum><text>80 percent of the median income of the State in which the farmer resides; or</text> </clause><clause id="ID49250A543F2A4F04AE8FACE1C0098CF8"><enum>(ii)</enum><text>200 percent of the most recent annual Federal Poverty Income Guidelines published by the Department of Health and Human Services for the State.</text> </clause></subparagraph></paragraph><paragraph id="IDE60B7DC1207C4ABD96733748404B4676"><enum>(3)</enum><header>Individual development account</header><text>The term <term>individual development account</term> means a savings account described in subsection (b)(4)(A).</text> </paragraph><paragraph id="IDBEA2AD649FE247B0ABE209C8FDD91D95"><enum>(4)</enum><header>Qualified entity</header> <subparagraph id="IDBABDE2583CDB41A4B4DAE18544CB0EBD"><enum>(A)</enum><header>In general</header><text>The term <term>qualified entity</term> means—</text> <clause id="ID476CF366306141A4A5344DD095D86AC3"><enum>(i)</enum><text>1 or more organizations—</text> <subclause id="ID490AD2AC3CB340DC90F8E73F3B024FC0"><enum>(I)</enum><text>described in section 501(c)(3) of the Internal Revenue Code of 1986; and</text> </subclause><subclause id="ID53AA2FC3BA764D6888B3893959F45F40"><enum>(II)</enum><text>exempt from taxation under section 501(a) of such Code; or</text> </subclause></clause><clause id="IDDC96E51C16E342C586D067798EF9C9ED"><enum>(ii)</enum><text>a State, local, or tribal government submitting an application jointly with an organization described in clause (i).</text> </clause></subparagraph><subparagraph id="IDEE8A4E9E21E64B54A3FD1F9B2AC42AD2"><enum>(B)</enum><header>No prohibition on collaboration</header><text>An organization described in subparagraph (A)(i) may collaborate with a financial institution or for-profit community development corporation to carry out the purposes of this section.</text> </subparagraph></paragraph></subsection><subsection id="ID3430F8347398489C916EBE005D0516A7"><enum>(b)</enum><header>Pilot program</header> <paragraph id="ID1623C427DFFC4371AC3FFD55E1875872"><enum>(1)</enum><header>In general</header><text>The Secretary shall establish a pilot program to be known as the <quote>New Farmer Individual Development Accounts Pilot Program</quote> under which the Secretary shall work through qualified entities to establish demonstration programs—</text> <subparagraph id="IDE83D5B1C9DE24622B58F5A89D965377C"><enum>(A)</enum><text>of at least 5 years in duration; and</text> </subparagraph><subparagraph id="ID68FED4CA5A3846B2A586048B2A1B1E98"><enum>(B)</enum><text>in at least 15 States.</text> </subparagraph></paragraph><paragraph id="IDA33B8D0F623E4525A5424927A095B78D"><enum>(2)</enum><header>Coordination</header><text>The Secretary shall operate the pilot program through and in coordination with the farmer program loans of the Farm Service Agency.</text> </paragraph><paragraph id="ID9E55A0846AF449D88D265F31909B0AC7"><enum>(3)</enum><header>Reserve funds</header> <subparagraph id="IDF12BF57F78334FEC9AFD7FAF4099D957"><enum>(A)</enum><header>In general</header><text>A qualified entity carrying out a demonstration program under this section shall establish a reserve fund consisting of a non-Federal match of 50 percent of the total amount of the grant awarded to the demonstration program under this section.</text> </subparagraph><subparagraph id="ID63422E22029A4D80A0124F038AF49297"><enum>(B)</enum><header>Federal funds</header><text>After the qualified entity has deposited the non-Federal matching funds described in subparagraph (A) in the reserve fund, the Secretary shall provide the total amount of the grant awarded under this section to the demonstration program for deposit in the reserve fund.</text> </subparagraph><subparagraph id="IDF72C1B4ED9114DB09B03768630CF3951"><enum>(C)</enum><header>Use of funds</header><text>Of the funds deposited under subparagraph (B) in the reserve fund established for a demonstration program, the qualified entity carrying out the demonstration program—</text> <clause id="IDB7C0858687F14565A6C7BD0D1AD5A3D7"><enum>(i)</enum><text>may use up to 10 percent for administrative expenses; and</text> </clause><clause id="ID4E9F353CD232465E8C082F7CD2346135"><enum>(ii)</enum><text>shall use the remainder in making matching awards described in paragraph (4)(B)(ii)(I).</text> </clause></subparagraph><subparagraph id="ID8180461D03DF4B51843DA5818A32114D"><enum>(D)</enum><header>Interest</header><text>Any interest earned on amounts in a reserve fund established under subparagraph (A) may be used by the qualified entity as additional matching funds for, or to administer, the demonstration program.</text> </subparagraph><subparagraph id="ID0D194F5BE772479590C718C3F6794405"><enum>(E)</enum><header>Guidance</header><text>The Secretary shall issue guidance regarding the investment requirements of reserve funds established under this paragraph.</text> </subparagraph><subparagraph id="ID7A690689750E4EBF97D552BB8F861714"><enum>(F)</enum><header>Reversion</header><text>On the date on which all funds remaining in any individual development account established by a qualified entity have reverted under paragraph (5)(B)(ii) to the reserve fund established by the qualified entity, there shall revert to the Treasury of the United States a percentage of the amount (if any) in the reserve fund equal to—</text> <clause id="ID1B8202D2D387475E990435C995B679C5"><enum>(i)</enum><text>the amount of Federal funds deposited in the reserve fund under subparagraph (B) that were not used for administrative expenses; divided by</text> </clause><clause id="IDB578F56B4DA0408393A153DDAFED5F76"><enum>(ii)</enum><text>the total amount of funds deposited in the reserve fund.</text> </clause></subparagraph></paragraph><paragraph id="ID33733E2C7B1B4EEB982BFA8CC6EDF9E4"><enum>(4)</enum><header>Individual development accounts</header> <subparagraph id="ID9C24EB1185784D8C8F1604DD582786FE"><enum>(A)</enum><header>In general</header><text>A qualified entity receiving a grant under this section shall establish and administer individual development accounts for eligible participants.</text> </subparagraph><subparagraph id="IDE8E0EF21EC694A5795F5CC4BC5F29678"><enum>(B)</enum><header>Contract requirements</header><text>To be eligible to receive funds under this section from a qualified entity, an eligible participant shall enter into a contract with only 1 qualified entity under which—</text> <clause id="IDCF370E43E22044DC8A612D99593CF999"><enum>(i)</enum><text>the eligible participant agrees—</text> <subclause id="ID66985AE2EAA54316BBC3BA7C08370FC0"><enum>(I)</enum><text>to deposit a certain amount of funds of the eligible participant in a personal savings account, as prescribed by the contractual agreement between the eligible participant and the qualified entity;</text> </subclause><subclause id="ID206791578BF64B42BDFA13447B958322"><enum>(II)</enum><text>to use the funds described in subclause (I) only for 1 or more eligible expenditures described in paragraph (5)(A); and</text> </subclause><subclause id="ID37E956BB35C84BA59138A60C0F1FD917"><enum>(III)</enum><text>to complete financial training; and</text> </subclause></clause><clause id="ID025F370FE1E4459AB0DE30FF73B23079"><enum>(ii)</enum><text>the qualified entity agrees—</text> <subclause id="IDE0E3C2E44DAD4A3A86791F2597997C66"><enum>(I)</enum><text>to deposit, not later than 1 month after an amount is deposited pursuant to clause (i)(I), at least a 100-percent, and up to a 200-percent, match of that amount into the individual development account established for the eligible participant; and</text> </subclause><subclause id="ID6DE2D31F765E4118A082D9BA86E0E7D3"><enum>(II)</enum><text>with uses of funds proposed by the eligible participant.</text> </subclause></clause></subparagraph><subparagraph id="ID29E56C39439841BAAF239BE15AF7E60E"><enum>(C)</enum><header>Limitation</header> <clause id="IDA13CE87544E44679841F39D6AB0052AE"><enum>(i)</enum><header>In general</header><text>A qualified entity administering a demonstration program under this section may provide not more than $6,000 for each fiscal year in matching funds to the individual development account established by the qualified entity for an eligible participant.</text> </clause><clause id="IDF56828A214C148AAA3A2E99EC49ADCD9"><enum>(ii)</enum><header>Treatment of amount</header><text>An amount provided under clause (i) shall not be considered to be a gift or loan for mortgage purposes.</text> </clause></subparagraph></paragraph><paragraph id="IDB464A09F05F54080AA19310DA8BD8D49"><enum>(5)</enum><header>Eligible expenditures</header> <subparagraph id="ID99253165C49049069D48DD7E19C7A0AA"><enum>(A)</enum><header>In general</header><text>An eligible expenditure described in this subparagraph is an expenditure—</text> <clause id="IDAC8B947E1ED8416B807A46C13F7539AE"><enum>(i)</enum><text>to purchase farmland or make a down payment on an accepted purchase offer for farmland;</text> </clause><clause id="IDC00E549CD70947EB9280F5A7F5493DA0"><enum>(ii)</enum><text>to make mortgage payments on farmland purchased pursuant to clause (i), for up to 180 days after the date of the purchase;</text> </clause><clause id="IDB2C00E4A47754070B6319E1DA1B34C5A"><enum>(iii)</enum><text>to purchase breeding stock, fruit or nut trees, or trees to harvest for timber; and</text> </clause><clause id="ID454DD93990794CB3AE07E1C3941C62C0"><enum>(iv)</enum><text>for other similar expenditures, as determined by the Secretary.</text> </clause></subparagraph><subparagraph id="IDBC698F6FD85F4E188B379617434436D5"><enum>(B)</enum><header>Timing</header> <clause id="ID7C250C59F068400994C13D36FCFAE0ED"><enum>(i)</enum><header>In general</header><text>An eligible participant may make an eligible expenditure at any time during the 2-year period beginning on the date on which the last matching funds are provided under paragraph (4)(B)(ii)(I) to the individual development account established for the eligible participant.</text> </clause><clause id="ID137F88FC0B5646FABF3124A650ED20C3"><enum>(ii)</enum><header>Unexpended funds</header><text>At the end of the period described in clause (i), any funds remaining in an individual development account established for an eligible participant shall revert to the reserve fund of the demonstration program under which the account was established.</text> </clause></subparagraph></paragraph></subsection><subsection id="ID3F84F73A5C4E45E9BDFFD814574E0317"><enum>(c)</enum><header>Applications</header> <paragraph id="IDC7D87083E60A40C2816E27B65A878A06"><enum>(1)</enum><header>In general</header><text>A qualified entity that seeks to carry out a demonstration program under this section may submit to the Secretary an application at such time, in such form, and containing such information as the Secretary may prescribe.</text> </paragraph><paragraph id="IDD1D6B229F30441C6B060FC7DCCC328B2"><enum>(2)</enum><header>Criteria</header><text>In considering whether to approve an application to carry out a demonstration program under this section, the Secretary shall assess—</text> <subparagraph id="ID7EDEB51D728B457085E941B55E6BFC11"><enum>(A)</enum><text>the degree to which the demonstration program described in the application is likely to aid eligible participants in successfully pursuing new farming opportunities;</text> </subparagraph><subparagraph id="ID6685F766573C4322AB054BC8E48852C9"><enum>(B)</enum><text>the experience and ability of the qualified entity to responsibly administer the demonstration program;</text> </subparagraph><subparagraph id="ID36780F7C58A946DBBD57385736165CCA"><enum>(C)</enum><text>the experience and ability of the qualified entity in recruiting, educating, and assisting eligible participants to increase economic independence and pursue or advance farming opportunities;</text> </subparagraph><subparagraph id="ID1641FC3CC89447529CC97A83E914EFB8"><enum>(D)</enum><text>the aggregate amount of direct funds from non-Federal public sector and private sources that are formally committed to the demonstration program as matching contributions;</text> </subparagraph><subparagraph id="ID3104BECCD5C74956ACEDAA5E54C09133"><enum>(E)</enum><text>the adequacy of the plan of the qualified entity to provide information relevant to an evaluation of the demonstration program; and</text> </subparagraph><subparagraph id="IDA1D394A3B7DD4A38A96769FB810EE049"><enum>(F)</enum><text>such other factors as the Secretary considers to be appropriate.</text> </subparagraph></paragraph><paragraph id="ID67DF0B318F144A2DAA7CCCB679FB758A"><enum>(3)</enum><header>Preferences</header><text>In considering an application to conduct a demonstration program under this section, the Secretary shall give preference to an application from a qualified entity that demonstrates—</text> <subparagraph id="ID51C487374DE6405CA7000FA04D3042F1"><enum>(A)</enum><text>a track record of serving clients targeted by the program, including, as appropriate, socially disadvantaged farmers; and</text> </subparagraph><subparagraph id="ID8B3B72ECCA3548C3B7B12893F3139F1C"><enum>(B)</enum><text>expertise in dealing with financial management aspects of farming.</text> </subparagraph></paragraph><paragraph id="IDEF4E05F0DE644D77AD9886B40A1EF039"><enum>(4)</enum><header>Approval</header><text>Not later than 1 year after the date of enactment of this section, in accordance with this section, the Secretary shall, on a competitive basis, approve such applications to conduct demonstration programs as the Secretary considers appropriate.</text> </paragraph><paragraph id="ID32E15F0A33E74E8E81B3A28733496ADE"><enum>(5)</enum><header>Term of authority</header><text>If the Secretary approves an application to carry out a demonstration program, the Secretary shall authorize the applicant to carry out the project for a period of 5 years, plus an additional 2 years to make eligible expenditures in accordance with subsection (b)(5)(B).</text> </paragraph></subsection><subsection id="IDF1BA402283514974A5F3D00795C90A19"><enum>(d)</enum><header>Grant authority</header> <paragraph id="ID898F5DADB493431DB12A12B17E8B83BC"><enum>(1)</enum><header>In general</header><text>The Secretary shall make a grant to a qualified entity authorized to carry out a demonstration program under this section.</text> </paragraph><paragraph id="IDCC21FFCAE20C4151AE943868B0729146"><enum>(2)</enum><header>Maximum amount of grants</header><text>The aggregate amount of grant funds provided to a demonstration program carried out under this section shall not exceed $250,000.</text> </paragraph><paragraph id="ID33E3981688534E2686FBFD85406BBAA4"><enum>(3)</enum><header>Timing of grant payments</header><text>The Secretary shall pay the amounts awarded under a grant made under this section—</text> <subparagraph id="ID4A8641A35A3441CD8661773EBC7DD20C"><enum>(A)</enum><text>on the awarding of the grant; or</text> </subparagraph><subparagraph id="IDAB9C08CB6A6C4BAA91178A14C16B93AE"><enum>(B)</enum><text>pursuant to such payment plan as the qualified entity may specify.</text> </subparagraph></paragraph></subsection><subsection id="ID9F861CEA5C4E4901BD07A4A82BE5853C"><enum>(e)</enum><header>Reports</header> <paragraph id="ID94901BB44FE64A3E989E843182F3E61F"><enum>(1)</enum><header>Annual progress reports</header> <subparagraph id="ID644D3DE81A2F44A394B6A9A005F91005"><enum>(A)</enum><header>In general</header><text>Not later than 60 days after the end of the calendar year in which the Secretary authorizes a qualified entity to carry out a demonstration program under this section, and annually thereafter until the conclusion of the demonstration program, the qualified entity shall prepare an annual report that includes, for the period covered by the report—</text> <clause id="ID106C1F3BA97649B0BF3656334FA217BB"><enum>(i)</enum><text>an evaluation of the progress of the demonstration program;</text> </clause><clause id="IDA9B5CE219F664F4D9606D17A844A5A95"><enum>(ii)</enum><text>information about the demonstration program, including the eligible participants and the individual development accounts that have been established; and</text> </clause><clause id="ID60786904EB1D4D24A379BCFC3C395701"><enum>(iii)</enum><text>such other information as the Secretary may require.</text> </clause></subparagraph><subparagraph id="ID46E3C40D953F4FCAA184601FB0A5199A"><enum>(B)</enum><header>Submission of reports</header><text>A qualified entity shall submit each report required under subparagraph (A) to the Secretary.</text> </subparagraph></paragraph><paragraph id="ID6037BCFDCC004AF98053E188D17339E9"><enum>(2)</enum><header>Reports by the Secretary</header><text>Not later than 1 year after the date on which all demonstration programs under this section are concluded, the Secretary shall submit to Congress a final report that describes the results and findings of all reports and evaluations carried out under this section.</text> </paragraph></subsection><subsection id="ID1C7F173B15524DF489E8DCF6EC76B42D"><enum>(f)</enum><header>Annual review</header><text>The Secretary may conduct an annual review of the financial records of a qualified entity—</text> <paragraph id="IDBCF4CA0331AF4673A09FDA5E494EE7F9"><enum>(1)</enum><text>to assess the financial soundness of the qualified entity; and</text> </paragraph><paragraph id="ID35E9C7233C0B4638BE99E75CB3434A69"><enum>(2)</enum><text>to determine the use of grant funds made available to the qualified entity under this section.</text> </paragraph></subsection><subsection id="IDE0595C11C0ED4B8698B52F8C84294946"><enum>(g)</enum><header>Regulations</header><text>In carrying out this section, the Secretary may promulgate regulations to ensure that the program includes provisions for—</text> <paragraph id="ID42AE9CA902BB4237AEAF5997C36249F5"><enum>(1)</enum><text>the termination of demonstration programs;</text> </paragraph><paragraph id="ID46EB9849B729487AB41BCF547DCEF42B"><enum>(2)</enum><text>control of the reserve funds in the case of such a termination;</text> </paragraph><paragraph id="IDCFFFCB8C3620407ABC4806CFA7FC2ED7"><enum>(3)</enum><text>transfer of demonstration programs to other qualified entities; and</text> </paragraph><paragraph id="ID41CFC4BF40EA49C2AF4F9DFA336F0485"><enum>(4)</enum><text>remissions from a reserve fund to the Secretary in a case in which a demonstration program is terminated without transfer to a new qualified entity.</text> </paragraph></subsection><subsection id="IDD63B7ECF3C23415D8726B1F81E7CFFD7"><enum>(h)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2012 through 2017.</text> </subsection></section><section id="id741957F28E5349D7A3D6EEE0A0985180"><enum>3429.</enum><header>Farmer loan pilot projects</header> <subsection id="id5F28E1A38ECB4FD08B4E7FBD01151AA0"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary may conduct pilot projects of limited scope and duration that are consistent with this subtitle to evaluate processes and techniques that may improve the efficiency and effectiveness of the programs carried out under this subtitle</text> </subsection><subsection id="id3AB9414DB65140288A2C59310D6BF58C"><enum>(b)</enum><header>Notification</header><text>The Secretary shall—</text> <paragraph id="id018966AD95C8432CB814286814F57EF7"><enum>(1)</enum><text>not less than 60 days before the date on which the Secretary initiates a pilot project under subsection (a), submit notice of the proposed pilot project to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate; and</text> </paragraph><paragraph id="idCAA6D9CCB837410A8455F15CE7B9A731"><enum>(2)</enum><text>consider any recommendations or feedback provided to the Secretary in response to the notice provided under paragraph (1).</text> </paragraph></subsection></section><section id="id2AAF9265A89643A2BC30C495EDEEEF02"><enum>3430.</enum><header>Prohibition on use of loans for certain purposes</header> <subsection id="id460BEEEA07CD42DC9B37650EDC53827D"><enum>(a)</enum><header>In general</header><text>Except as provided in subsections (b) and (c), the Secretary may not approve a loan under this subtitle to drain, dredge, fill, level, or otherwise manipulate a wetland (as defined in section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a))), or to engage in any activity that results in impairing or reducing the flow, circulation, or reach of water.</text> </subsection><subsection id="idD408F404696249A6A75EF56E5F1C00FF"><enum>(b)</enum><header>Prior activity</header><text>Subsection (a) does not apply in the case of—</text> <paragraph id="ida653871a85504b1a9244223cbfe45ac2"><enum>(1)</enum><text>an activity related to the maintenance of a previously converted wetland; or</text> </paragraph><paragraph id="idf77d751cabab44a38ec6ddac6043a3f1"><enum>(2)</enum><text>an activity that had already commenced before November 28, 1990.</text> </paragraph></subsection><subsection id="id942E4C4CE58E4DB0B5D196858E5C48EA"><enum>(c)</enum><header>Exception</header><text>This section shall not apply to a loan made or guaranteed under this subtitle for a utility line.</text> </subsection></section><section id="id29410BC4C9184A95AEDEC6A98C0B0B27"><enum>3431.</enum><header>Authorization of appropriations and allocation of funds</header> <subsection id="IDe61436ce8463464a9cc97ca9dcf5b017"><enum>(a)</enum><header>Authorization for loans</header> <paragraph id="ID3184157ef982401f8544e158721eeb52"><enum>(1)</enum><header>In general</header><text>The Secretary may make or guarantee loans under chapters 1 and 2 from the Agricultural Credit Insurance Fund for not more than $4,226,000,000 for each of fiscal years 2012 through 2017, of which, for each fiscal year—</text> <subparagraph id="IDf7b58938a1244937b05af2eefdd5e555"><enum>(A)</enum><text>$1,200,000,000 shall be for direct loans, of which—</text> <clause id="IDd34a12b0e1404c9b8d22dbb9efb70edd"><enum>(i)</enum><text>$350,000,000 shall be for farm ownership loans; and</text> </clause><clause id="ID355abec981594ce9b6ddd8b99417298a"><enum>(ii)</enum><text>$850,000,000 shall be for operating loans; and</text> </clause></subparagraph><subparagraph id="IDa4fe4d8241774896bf3fb4141ed15bae"><enum>(B)</enum><text>$3,026,000,000 shall be for guaranteed loans, of which—</text> <clause id="ID6873a58ec1ef485fa0be28842f44c3d2"><enum>(i)</enum><text>$1,000,000,000 shall be for guarantees of farm ownership loans; and</text> </clause><clause id="ID5e027fcb8e484e5f9c5484e4a683ba32"><enum>(ii)</enum><text>$2,026,000,000 shall be for guarantees of operating loans.</text> </clause></subparagraph></paragraph><paragraph id="IDd36f74940ac64115b52026a6185ee39b"><enum>(2)</enum><header>Beginning farmers</header> <subparagraph id="IDe19493da42414ef2b3ebddd2d9fbc288"><enum>(A)</enum><header>Direct loans</header> <clause id="ID3fbd6d24bbdb4dbfae30619e17e04493"><enum>(i)</enum><header>Farm ownership loans</header> <subclause id="ID6eec1ed4b1d345e28eb399a2a473d344"><enum>(I)</enum><header>In general</header><text>Of the amounts made available under paragraph (1) for direct farm ownership loans, the Secretary shall reserve an amount that is not less than 75 percent of the total amount for qualified beginning farmers.</text> </subclause><subclause id="ID4748b0a1ad6241c3bd79b868aaa1e66d"><enum>(II)</enum><header>Down payment loans; joint financing arrangements</header><text>Of the amounts reserved for a fiscal year under subclause (I), the Secretary shall reserve an amount not less than <fraction>2/3</fraction> of the amount for the down payment loan program under section 3107 and joint financing arrangements under section 3105 until April 1 of the fiscal year.</text> </subclause></clause><clause id="IDa80d88076df84570bacce1204550682e"><enum>(ii)</enum><header>Operating loans</header><text>Of the amounts made available under paragraph (1) for direct operating loans, the Secretary shall reserve for qualified beginning farmers for each of fiscal years 2012 through 2017, an amount that is not less than 50 percent of the total amount.</text> </clause><clause id="IDf93872bd56614195b37ba64850871e33"><enum>(iii)</enum><header>Funds reserved until September 1</header><text>Except as provided in clause (i)(II), funds reserved for qualified beginning farmers under this subparagraph for a fiscal year shall be reserved only until September 1 of the fiscal year.</text> </clause></subparagraph><subparagraph id="IDa85218503e0e4d4983f9d10fca2da1be"><enum>(B)</enum><header>Guaranteed loans</header> <clause id="ID1923d8cb1c0943d9ac7fc7d15212b592"><enum>(i)</enum><header>Farm ownership loans</header><text>Of the amounts made available under paragraph (1) for guarantees of farm ownership loans, the Secretary shall reserve an amount that is not less than 40 percent of the total amount for qualified beginning farmers.</text> </clause><clause id="ID19f2f21b52704302929ae130b0f3d354"><enum>(ii)</enum><header>Operating loans</header><text>Of the amounts made available under paragraph (1) for guarantees of operating loans, the Secretary shall reserve 40 percent for qualified beginning farmers.</text> </clause><clause id="IDd5d00d621d9347929d7ad3d17a12b7e9"><enum>(iii)</enum><header>Funds reserved until April 1</header><text>Funds reserved for qualified beginning farmers under this subparagraph for a fiscal year shall be reserved only until April 1 of the fiscal year.</text> </clause></subparagraph><subparagraph id="ID4436c831daa0467a8d33f419e691021f"><enum>(C)</enum><header>Reserved funds for all qualified beginning farmers</header><text>If a qualified beginning farmer meets the eligibility criteria for receiving a direct or guaranteed loan under section 3101, 3107, or 3201, the Secretary shall make or guarantee the loan if sufficient funds reserved under this paragraph are available to make or guarantee the loan.</text> </subparagraph></paragraph><paragraph id="ID1574d0ebf27f49d7b719dc1a9e159e05"><enum>(3)</enum><header>Transfer for down payment loans</header> <subparagraph id="ID56f66c61b2f840858b169c7570817ed1"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B)—</text> <clause id="IDb583c73e055b4e428101d1de891592ab"><enum>(i)</enum><text>beginning on August 1 of each fiscal year, the Secretary shall use available unsubsidized guaranteed farm operating loan funds to provide direct farm ownership loans approved by the Secretary to qualified beginning farmers under the down payment loan program established under section 3107, if sufficient direct farm ownership loan funds are not otherwise available; and</text> </clause><clause id="ID75cd122543e54e68ae272859cdfa542f"><enum>(ii)</enum><text>beginning on September 1 of each fiscal year, the Secretary shall use available unsubsidized guaranteed farm operating loan funds to provide direct farm ownership loans approved by the Secretary to qualified beginning farmers, if sufficient direct farm ownership loan funds are not otherwise available.</text> </clause></subparagraph><subparagraph id="ID44490d69d5444a70806b4b781a833e9b"><enum>(B)</enum><header>Limitation</header><text>The Secretary shall limit the transfer of funds under subparagraph (A) so that all guaranteed farm operating loans that have been approved, or will be approved, by the Secretary during the fiscal year will be made to the extent of available amounts.</text> </subparagraph></paragraph><paragraph id="ID7e5e6d86564b45038a81e7412cc92cea"><enum>(4)</enum><header>Transfer for credit sales of farm inventory property</header> <subparagraph id="IDd154a953d2f24dab94480951ed2b0419"><enum>(A)</enum><header>In general</header><text>Subject to subparagraphs (B) and (C), beginning on September 1 of each fiscal year, the Secretary may use available funds made available under chapter 3 for the fiscal year to fund the credit sale of farm real estate in the inventory of the Secretary.</text> </subparagraph><subparagraph id="ID90392b6b43ea478c866ad6c16c2e9d69"><enum>(B)</enum><header>Supplemental appropriations</header><text>The transfer authority provided under subparagraph (A) shall not apply to any funds made available to the Secretary for any fiscal year under an Act making supplemental appropriations.</text> </subparagraph><subparagraph id="ID8b8b7e8cd79841cbb91f90bab90f8e74"><enum>(C)</enum><header>Limitation</header><text>The Secretary shall limit the transfer of funds under subparagraph (A) so that all emergency disaster loans that have been approved, or will be approved, by the Secretary during the fiscal year will be made to the extent of available amounts.</text> </subparagraph></paragraph><paragraph id="id601B6FCBC5BE46B1B73A07E2594FC7B3"><enum>(5)</enum><header>Availability of funds</header><text>Funds made available to carry out this subtitle shall remain available until expended.</text> </paragraph></subsection><subsection id="ID7671c00547404e0d89b8c657f3fa0cff"><enum>(b)</enum><header>Cost projections</header> <paragraph id="IDf713fb981f184cb9a336ffc7e455324d"><enum>(1)</enum><header>In general</header><text>The Secretary shall develop long-term cost projections for loan program authorizations required under subsection (a).</text> </paragraph><paragraph id="ID9d1c0bceed904234abc24be81e06bf19"><enum>(2)</enum><header>Analysis</header><text>Each projection under paragraph (1) shall include analyses of—</text> <subparagraph id="ID6a37003681514e72aefd2d965bfb3a95"><enum>(A)</enum><text>the long-term costs of the lending levels that the Secretary requests to be authorized under subsection (a); and</text> </subparagraph><subparagraph id="IDf611b0497df744dc9ff88b3f32720be9"><enum>(B)</enum><text>the long-term costs for increases in lending levels beyond those requested to be authorized, based on increments of $10,000,000 or such other levels as the Secretary considers appropriate.</text> </subparagraph></paragraph><paragraph id="IDef071b4fa7f9419cb139d6bce49fa98a"><enum>(3)</enum><header>Submission to congress</header><text>The Secretary shall submit to the Committees on Agriculture and Appropriations of the House of Representatives and the Committees on Agriculture, Nutrition, and Forestry and Appropriations of the Senate reports containing the long-term cost projections for the 3-year period beginning with fiscal year 1983 and each 3-year period thereafter at the time the requests for authorizations for those periods are submitted to Congress.</text> </paragraph></subsection><subsection id="ID0c424d6c55af4a5bbcbca5a6d10929ee"><enum>(c)</enum><header>Low-income, limited-resource borrowers</header> <paragraph id="idA3B16C4ED6CA456EBB3B0D4954D05362"><enum>(1)</enum><header>Reserve</header><text>Notwithstanding any other provision of law, not less than 25 percent of the loans for farm ownership purposes for each fiscal year under this subtitle shall be for low-income, limited-resource borrowers.</text> </paragraph><paragraph id="idA22CD0994E004366B53DDFCCE35E51A6"><enum>(2)</enum><header>Notification</header><text>The Secretary shall provide notification to farm borrowers under this subtitle in the normal course of loan making and loan servicing operations, of the provisions of this subtitle relating to low-income, limited-resource borrowers and the procedures by which persons may apply for loans under the low-income, limited-resource borrower program.</text> </paragraph></subsection></section></chapter></subtitle><after-quoted-block>.</after-quoted-block></quoted-block> </section></subtitle><subtitle id="id2842D356A4504413B3F1DCD0628C3E3C"><enum>B</enum><header>Miscellaneous</header> <section id="H210B50D177394CA9858AB92265B17AD1"><enum>5101.</enum><header>State agricultural mediation programs</header><text display-inline="no-display-inline">Section 506 of the Agricultural Credit Act of 1987 (7 U.S.C. 5106) is amended by striking <quote>2015</quote> and inserting <quote>2017</quote>.</text> </section><section id="id87AD865240214A2A96FA1F7BC463AFE0"><enum>5102.</enum><header>Loans to purchasers of highly fractionated land</header> <subsection id="id143B74677A0742248C2B2163812CBE82"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The first sentence of Public Law 91–229 (25 U.S.C. 488) is amended—</text> <paragraph id="idB463354B2C9543F090C18B6F66DC84B8"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), in the first sentence, by striking <quote>loans from</quote> and all that follows through <quote>1929)</quote> and inserting <quote>direct loans in a manner consistent with direct loans pursuant to chapter 4 of subtitle A of the Consolidated Farm and Rural Development Act</quote>;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA7C0D402CC0B462AB0469AF55F44D04F"><enum>(2)</enum><text>in subsection (b)(1)—</text> <subparagraph commented="no" display-inline="no-display-inline" id="id0DD6183419124E519269E9E05B2AFC8E"><enum>(A)</enum><text>by striking <quote>pursuant to section 205(c) of the Indian Land Consolidation Act (25 U.S.C. 2204(c))</quote>; and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id87E6D5A723614F0A8E6CEC132EC7E27D"><enum>(B)</enum><text>by inserting <quote>or to intermediaries in order to establish revolving loan funds for the purchase of highly fractionated land under that section</quote> before the period at the end; and</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id327BDF7AC63E47DE9986F041697DCAE8"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idD538126301594A80967CC2CCC5A72738" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="id24665484F04B4993B5B7883395A179ED"><enum>(c)</enum><header>Consultation required</header><text>In determining regulations and procedures to define eligible purchasers of highly fractionated land under this section, the Secretary of Agriculture shall consult with the Secretary of the Interior.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="idF537BB5639FF4570A606F7D79A4C7D6F"><enum>5103.</enum><header>Removal of duplicative appraisals</header><text display-inline="no-display-inline">Notwithstanding any other law (including regulations), in making loans under the first section of Public Law 91–229 (25 U.S.C. 488), borrowers who are Indian tribes, members of Indian tribes, or tribal corporations shall only be required to obtain 1 appraisal under an appraisal standard recognized as of the date of enactment of this Act by the Secretary or the Secretary of the Interior.</text> </section></subtitle><enum>VI</enum><header>Rural Development </header> <subtitle id="id11B5CCA741FC4C1DAD762D04FCF09B31"><enum>A</enum><header>Reorganization of the Consolidated Farm and Rural Development Act</header> <section id="ID2EC09E9CC2D04B26A9054D55422518DF"><enum>6001.</enum><header>Reorganization of the Consolidated Farm and Rural Development Act</header><text display-inline="no-display-inline">Title III of the Agricultural Act of 1961 (7 U.S.C. 1921 et seq.) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="ID3884336E17E844149C0E1462E5562FF4" style="OLC"> <title id="ID88C11526C1F948BABB4CAF95F2F71DE8"><enum>III</enum><header>Agricultural credit</header> <section id="IDD246062D02774DDD88A844A894B17A3B"><enum>3001.</enum><header>Short title; table of contents</header> <subsection id="ID53168396BEB34396ADA799DEA656D81A"><enum>(a)</enum><header>Short title</header><text>This title may be cited as the <quote><act-name parsable-cite="CFRDA">Consolidated Farm and Rural Development Act</act-name></quote>.</text> </subsection><subsection id="IDB84BBE5404CD403A86D72F227B161CE3"><enum>(b)</enum><header>Table of contents</header><text>The table of contents of this title is as follows:</text> <toc> <toc-entry idref="ID88C11526C1F948BABB4CAF95F2F71DE8" level="title">TITLE III—Agricultural credit</toc-entry> <toc-entry idref="IDD246062D02774DDD88A844A894B17A3B" level="section">Sec. 3001. Short title; table of contents.</toc-entry> <toc-entry idref="ID4324977551DA4E379AF960E6ED77B3E1" level="section">Sec. 3002. Definitions.</toc-entry> <toc-entry level="subtitle">Subtitle A—Farmer loans, servicing, and other assistance</toc-entry> <toc-entry level="chapter">Chapter 1—Farm ownership loans</toc-entry> <toc-entry level="section">Sec. 3101. Farm ownership loans.</toc-entry> <toc-entry level="section">Sec. 3102. Purposes of loans.</toc-entry> <toc-entry level="section">Sec. 3103. Conservation loan and loan guarantee program.</toc-entry> <toc-entry level="section">Sec. 3104. Loan maximums.</toc-entry> <toc-entry level="section">Sec. 3105. Repayment requirements for farm ownership loans.</toc-entry> <toc-entry level="section">Sec. 3106. Limited-resource loans.</toc-entry> <toc-entry level="section">Sec. 3107. Downpayment loan program.</toc-entry> <toc-entry level="section">Sec. 3108. Beginning farmer and socially disadvantaged farmer contract land sales program.</toc-entry> <toc-entry level="chapter">Chapter 2—Operating loans</toc-entry> <toc-entry level="section">Sec. 3201. Operating loans.</toc-entry> <toc-entry level="section">Sec. 3202. Purposes of loans.</toc-entry> <toc-entry level="section">Sec. 3203. Restrictions on loans.</toc-entry> <toc-entry level="section">Sec. 3204. Terms of loans.</toc-entry> <toc-entry level="chapter">Chapter 3—Emergency loans</toc-entry> <toc-entry level="section">Sec. 3301. Emergency loans.</toc-entry> <toc-entry level="section">Sec. 3302. Purposes of loans.</toc-entry> <toc-entry level="section">Sec. 3303. Terms of loans.</toc-entry> <toc-entry level="section">Sec. 3304. Production losses.</toc-entry> <toc-entry level="chapter">Chapter 4—General farmer loan provisions</toc-entry> <toc-entry level="section">Sec. 3401. Agricultural Credit Insurance Fund.</toc-entry> <toc-entry level="section">Sec. 3402. Guaranteed farmer loans.</toc-entry> <toc-entry level="section">Sec. 3403. Provision of information to borrowers.</toc-entry> <toc-entry level="section">Sec. 3404. Notice of loan service programs.</toc-entry> <toc-entry level="section">Sec. 3405. Planting and production history guidelines.</toc-entry> <toc-entry level="section">Sec. 3406. Special conditions and limitations on loans.</toc-entry> <toc-entry level="section">Sec. 3407. Graduation of borrowers.</toc-entry> <toc-entry level="section">Sec. 3408. Debt adjustment and credit counseling.</toc-entry> <toc-entry level="section">Sec. 3409. Security servicing.</toc-entry> <toc-entry level="section">Sec. 3410. Contracts on loan security properties.</toc-entry> <toc-entry level="section">Sec. 3411. Debt restructuring and loan servicing.</toc-entry> <toc-entry level="section">Sec. 3412. Relief for mobilized military reservists from certain agricultural loan obligations.</toc-entry> <toc-entry level="section">Sec. 3413. Interest rate reduction program.</toc-entry> <toc-entry level="section">Sec. 3414. Homestead property.</toc-entry> <toc-entry level="section">Sec. 3415. Transfer of inventory land.</toc-entry> <toc-entry level="section">Sec. 3416. Target participation rates.</toc-entry> <toc-entry level="section">Sec. 3417. Compromise or adjustment of debts or claims by guaranteed lender.</toc-entry> <toc-entry level="section">Sec. 3418. Waiver of mediation rights by borrowers.</toc-entry> <toc-entry level="section">Sec. 3419. Borrower training.</toc-entry> <toc-entry level="section">Sec. 3420. Loan assessments.</toc-entry> <toc-entry level="section">Sec. 3421. Supervised credit.</toc-entry> <toc-entry level="section">Sec. 3422. Market placement.</toc-entry> <toc-entry level="section">Sec. 3423. Recordkeeping of loans by gender of borrower.</toc-entry> <toc-entry level="section">Sec. 3424. Crop insurance requirement.</toc-entry> <toc-entry level="section">Sec. 3425. Loan and loan servicing limitations.</toc-entry> <toc-entry level="section">Sec. 3426. Short form certification of farm program borrower compliance.</toc-entry> <toc-entry level="section">Sec. 3427. Underwriting forms and standards.</toc-entry> <toc-entry level="section">Sec. 3428. Beginning farmer individual development accounts pilot program.</toc-entry> <toc-entry level="section">Sec. 3429. Farmer loan pilot projects.</toc-entry> <toc-entry level="section">Sec. 3430. Prohibition on use of loans for certain purposes.</toc-entry> <toc-entry level="section">Sec. 3431. Authorization of appropriations and allocation of funds.</toc-entry> <toc-entry idref="ID81F1351350B34A30858208F77FA7E6CF" level="subtitle">Subtitle B—Rural development</toc-entry> <toc-entry idref="IDEDC8E4DF4A624540A0F04D52CEF6068A" level="chapter">Chapter 1—Rural community programs</toc-entry> <toc-entry idref="ID8719269A8D784B3EA507D87D8649C523" level="section">Sec. 3501. Water and waste disposal loans, loan guarantees, and grants.</toc-entry> <toc-entry idref="iddadc6f3679d64fa6bca4807af599411c" level="section">Sec. 3502. Community facilities loans, loan guarantees, and grants.</toc-entry> <toc-entry idref="id2509F09CC7E54AD1A5C88592290C2ECE" level="section">Sec. 3503. Health care services.</toc-entry> <toc-entry idref="ID42C4660A829540C59FCDB98E164EA365" level="chapter">Chapter 2—Rural business and cooperative development</toc-entry> <toc-entry idref="ID5F4F4A4F111047899C29BE3E5C7D9FD9" level="section">Sec. 3601. Business programs.</toc-entry> <toc-entry idref="idd62c5720f9df45a49c2d3ed269f75ff6" level="section">Sec. 3602. Rural business investment program.</toc-entry> <toc-entry idref="ID07BAD76E66594A48A1ECEFE1D064C5C8" level="chapter">Chapter 3—General rural development provisions</toc-entry> <toc-entry idref="id1FAF82E6977242A6B3E337D29F756F89" level="section">Sec. 3701. General provisions for loans and grants.</toc-entry> <toc-entry idref="ID42b66150af33497f91c218800b26c811" level="section">Sec. 3702. Strategic economic and community development.</toc-entry> <toc-entry idref="ID5221F543753B4988B68B6285F2A02CE9" level="section">Sec. 3703. Guaranteed rural development loans.</toc-entry> <toc-entry idref="ID90B2F24E3EC84951BB811ECC433B410F" level="section">Sec. 3704. Rural Development Insurance Fund.</toc-entry> <toc-entry idref="idF6AF49AED5624D859A9DA8F8D9D33A41" level="section">Sec. 3705. Rural economic area partnership zones.</toc-entry> <toc-entry idref="idf3a55f05ab21425dad9d782caea113dc" level="section">Sec. 3706. Streamlining applications and improving accessibility of rural development programs.</toc-entry> <toc-entry idref="idf3a55f05ab21425dad9d782caea113dc" level="section">Sec. 3707. State Rural Development Partnership.</toc-entry> <toc-entry idref="idC785FEBD48EF4904B7F7A900786BE2DA" level="chapter">Chapter 4—Delta Regional Authority</toc-entry> <toc-entry idref="IDa2411aa833f64e18af1a44bf1aa352bf" level="section">Sec. 3801. Definitions.</toc-entry> <toc-entry idref="ID5c1740d560214aac933264aea5568c98" level="section">Sec. 3802. Delta Regional Authority.</toc-entry> <toc-entry idref="IDd6e7e1db010c46d1ba01dc50498187d4" level="section">Sec. 3803. Economic and community development grants.</toc-entry> <toc-entry idref="IDae78be308af14240bddb939626860ae5" level="section">Sec. 3804. Supplements to Federal grant programs.</toc-entry> <toc-entry idref="ID4c2b54531f3a4201b7a6bbcfbe53cadb" level="section">Sec. 3805. Local development districts; certification and administrative expenses.</toc-entry> <toc-entry idref="ID6579312efc10477ab6180e3bb791c043" level="section">Sec. 3806. Distressed counties and areas and nondistressed counties.</toc-entry> <toc-entry idref="IDa7b4b9da10994a85a233a10341bd2a53" level="section">Sec. 3807. Development planning process.</toc-entry> <toc-entry idref="ID9d8ab7b6d1ed4b4db08ace0a7a7c091e" level="section">Sec. 3808. Program development criteria.</toc-entry> <toc-entry idref="IDb86f5b5010f74f1390861c4c30d74df1" level="section">Sec. 3809. Approval of development plans and projects.</toc-entry> <toc-entry idref="ID615e43a730ec48a5baf06d518cc2c87d" level="section">Sec. 3810. Consent of States.</toc-entry> <toc-entry idref="IDdbfaee784b5642c6ac36c1b2a6a9f8c9" level="section">Sec. 3811. Records.</toc-entry> <toc-entry idref="ID39b1618f845e4517a57a24114d9eb10b" level="section">Sec. 3812. Annual report.</toc-entry> <toc-entry idref="ID449d2b1d8aaa4ba19582d2246170a228" level="section">Sec. 3813. Authorization of appropriations.</toc-entry> <toc-entry idref="ID5145c629db024e679b02e281e892f4d9" level="section">Sec. 3814. Termination of authority.</toc-entry> <toc-entry idref="id29D85782B1EE457C85FFCCD75C866856" level="chapter">Chapter 5—Northern Great Plains Regional Authority</toc-entry> <toc-entry idref="IDdfa97bb83df34bc99fa185dd0a148e88" level="section">Sec. 3821. Definitions.</toc-entry> <toc-entry idref="IDa1d829de908a4f8cbdc656cde882f721" level="section">Sec. 3822. Northern Great Plains Regional Authority.</toc-entry> <toc-entry idref="ID60fd87bf01a7405e99cbdb3efcc3a608" level="section">Sec. 3823. Interstate cooperation for economic opportunity and efficiency.</toc-entry> <toc-entry idref="IDa5bf84e66f78454fad1f90a291637965" level="section">Sec. 3824. Economic and community development grants.</toc-entry> <toc-entry idref="ID1a8d7054cc2c4a569cd40ec9d251a163" level="section">Sec. 3825. Supplements to Federal grant programs.</toc-entry> <toc-entry idref="IDb94f82f2b4ec46f2a5d0b06433589335" level="section">Sec. 3826. Multistate and local development districts and organizations and Northern Great Plains Inc.</toc-entry> <toc-entry idref="ID400774643aaa41729b9973461191a217" level="section">Sec. 3827. Distressed counties and areas and nondistressed counties.</toc-entry> <toc-entry idref="ID646c393093d84867930acdac893a9349" level="section">Sec. 3828. Development planning process.</toc-entry> <toc-entry idref="ID1b488246cd4340c19f24ad2fef5d02ee" level="section">Sec. 3829. Program development criteria.</toc-entry> <toc-entry idref="ID72fa74988d034a5f9e33531a43eaa2dc" level="section">Sec. 3830. Approval of development plans and projects.</toc-entry> <toc-entry idref="IDfff7725058a14270a2a34e4958edc158" level="section">Sec. 3831. Consent of States.</toc-entry> <toc-entry idref="ID87d6d73cef09494497ee051eb58c350e" level="section">Sec. 3832. Records.</toc-entry> <toc-entry idref="ID3f33c82934f24a5a843c2c933c459a16" level="section">Sec. 3833. Annual report.</toc-entry> <toc-entry idref="ID52aad79c3fe5458da5f5a47809ad8fc0" level="section">Sec. 3834. Authorization of appropriations.</toc-entry> <toc-entry idref="ID6ff6b48e1d2a4b51a189eb267d77b612" level="section">Sec. 3835. Termination of authority.</toc-entry> <toc-entry idref="ID635E286BCF614225A89A4ECD723EC358" level="subtitle">Subtitle C—General provisions</toc-entry> <toc-entry idref="IDFB9321F5AEA94982A4FE55528EBC67EF" level="section">Sec. 3901. Full faith and credit.</toc-entry> <toc-entry idref="IDAEA31326AAF04C57B6D5EAB8101479A1" level="section">Sec. 3902. Purchase and sale of guaranteed portions of loans.</toc-entry> <toc-entry idref="ID927E7C0CF7404F2A9BA2BB5A25DD6A04" level="section">Sec. 3903. Administration.</toc-entry> <toc-entry idref="IDCE908B77EECB4D8995391EB4AAFC282E" level="section">Sec. 3904. Loan moratorium and policy on foreclosures.</toc-entry> <toc-entry idref="ID1E6E119C958949FA9E41E6628C52BBF6" level="section">Sec. 3905. Oil and gas royalty payments on loans.</toc-entry> <toc-entry idref="ID395803F704C0451191F9BCCDED5C5086" level="section">Sec. 3906. Taxation.</toc-entry> <toc-entry idref="IDC9FAFB98C7664B0ABE03E7E3B6C70B8F" level="section">Sec. 3907. Conflicts of interest.</toc-entry> <toc-entry idref="ID5A696282216442E1A9FEDB805E42FB38" level="section">Sec. 3908. Loan summary statements.</toc-entry> <toc-entry idref="ID28FC1209F3CF4F0C916A9A2A8D1AB437" level="section">Sec. 3909. Certified lenders program.</toc-entry> <toc-entry idref="ID5125CA71A9A74A5BB03D3DA82897D76D" level="section">Sec. 3910. Loans to resident aliens.</toc-entry> <toc-entry idref="ID510A2F5EE0AA45949373C4062026A0AB" level="section">Sec. 3911. Expedited clearing of title to inventory property.</toc-entry> <toc-entry idref="id050B64F0638247AC968F8EAD5C0B06E6" level="section">Sec. 3912. Transfer of land to Secretary.</toc-entry> <toc-entry idref="idD6E6523AA8904A09B6828D540F8BE2B0" level="section">Sec. 3913. Competitive sourcing limitations.</toc-entry> <toc-entry idref="IDCEB2F2A231FC4B2ABF82168E75A2725E" level="section">Sec. 3914. Regulations.</toc-entry> </toc> </subsection></section><section id="ID4324977551DA4E379AF960E6ED77B3E1"><enum>3002.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title (unless the context otherwise requires):</text> <paragraph id="IDE475EF65DA75470CA7CA317E13E0D8F1"><enum>(1)</enum><header>Able to obtain credit elsewhere</header><text>The term <term>able to obtain credit elsewhere</term> means able to obtain a loan from a production credit association, a Federal land bank, or other responsible cooperative or private credit source (or, in the case of a borrower under section 3106, the borrower may be able to obtain a loan under section 3101) at reasonable rates and terms, taking into consideration prevailing private and cooperative rates and terms in the community in or near which the applicant resides for loans for similar purposes and periods of time.</text> </paragraph><paragraph id="IDCE660E5C7EB24A24A25863E1D6A89EDF"><enum>(2)</enum><header>Agricultural credit insurance fund</header><text>The term <term>Agricultural Credit Insurance Fund</term> means the fund established under section 3401.</text> </paragraph><paragraph id="IDB0FFBC6ECD314C66A74183D366FCEBAE"><enum>(3)</enum><header>Approved lender</header><text>The term <term>approved lender</term> means—</text> <subparagraph id="id2398370DBED84300B8AA3F364803F7CA"><enum>(A)</enum><text>a lender approved prior to October 28, 1992, by the Secretary under the approved lender program established by exhibit A to subpart B of part 1980 of title 7, Code of Federal Regulations (as in effect on January 1, 1991); or</text> </subparagraph><subparagraph id="id1702AF0944894FF1A5DCCD98345F474D"><enum>(B)</enum><text>a lender certified under section 3909.</text> </subparagraph></paragraph><paragraph id="ID5BEBCCF5ADBF44FFB4DE9145B16F0AFA"><enum>(4)</enum><header>Aquaculture</header><text>The term <term>aquaculture</term> means the culture or husbandry of aquatic animals or plants by private industry for commercial purposes, including the culture and growing of fish by private industry for the purpose of creating or augmenting publicly owned and regulated stocks of fish.</text> </paragraph><paragraph id="id6CB0AFABC1DD4BCC930BD8FE6CFA6906"><enum>(5)</enum><header>Beginning farmer</header><text>The term <term>beginning farmer</term> has the meaning given the term by the Secretary.</text> </paragraph><paragraph id="ID94762466A44A4FA888ED7A9110FD2B41"><enum>(6)</enum><header>Borrower</header> <subparagraph id="id524A95776AD74BD5BF7FF451285CEF02"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term <term>borrower</term> means an individual or entity who has an outstanding obligation to the Secretary under any loan made or guaranteed under this title, without regard to whether the loan has been accelerated.</text> </subparagraph><subparagraph id="idB100A210524F480A941BBCCD3C1DA3F3"><enum>(B)</enum><header>Exclusions</header><text>The term <term>borrower</term> does not include an individual or entity all of whose loans and accounts have been foreclosed on or liquidated, voluntarily or otherwise.</text> </subparagraph></paragraph><paragraph id="ID66C78FA214D74AADAD3BC318581987FD"><enum>(7)</enum><header>County committee</header><text>The term <term>county committee</term> means the appropriate county committee established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)).</text> </paragraph><paragraph id="IDA121CDCB098B4329A99280720618D465"><enum>(8)</enum><header>Debt forgiveness</header> <subparagraph id="ID04A42F735FB741A68FA26A124090BFAB"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term <term>debt forgiveness</term> means reducing or terminating a loan made or guaranteed under this title, in a manner that results in a loss to the Secretary, through—</text> <clause id="IDED831804BA9C47F4B2F12DD4878CA0BD"><enum>(i)</enum><text>writing down or writing off a loan under section 3411;</text> </clause><clause id="ID0C3BD45AC5FB486A9606881CEFD5B033"><enum>(ii)</enum><text>compromising, adjusting, reducing, or charging-off a debt or claim under section 3903;</text> </clause><clause id="ID020BBEB957F249DBBB9C0C1F54CFBF4A"><enum>(iii)</enum><text>paying a loss on a guaranteed loan under this title; or</text> </clause><clause id="ID3D362D9C0DF14D6E9EA1AFCC0323C01A"><enum>(iv)</enum><text>discharging a debt as a result of bankruptcy.</text> </clause></subparagraph><subparagraph id="ID7EBB6A688170406DA653C790274FF604"><enum>(B)</enum><header>Loan restructuring</header><text>The term <term>debt forgiveness</term> does not include consolidation, rescheduling, reamortization, or deferral.</text> </subparagraph></paragraph><paragraph id="IDDA80493BDD624CE2886DEEABEADBE066"><enum>(9)</enum><header>Department</header><text>The term <term>Department</term> means the Department of Agriculture.</text> </paragraph><paragraph id="ID2E9E250AF7F14DE790F614E8B3114C7E"><enum>(10)</enum><header>Direct loan</header><text>The term <term>direct loan</term> means a loan made by the Secretary from appropriated funds.</text> </paragraph><paragraph id="ID351E0F9D65664E4D8F12A21EB9EAD24E"><enum>(11)</enum><header>Entity</header><text>The term <term>entity</term> means a corporation, farm cooperative, partnership, joint operation, governmental entity, or other legal organization, as determined by the Secretary.</text> </paragraph><paragraph id="ID2CDA7B558D5D40E1AA5A0BAF7FB5A827"><enum>(12)</enum><header>Farm</header><text>The term <term>farm</term> means an operation involved in—</text> <subparagraph id="idB8649B6424D5437AB7EBE841AC3BD05A"><enum>(A)</enum><text>the production of an agricultural commodity;</text> </subparagraph><subparagraph id="idD426A5AB6C364EADB47A48E7421A0FDD"><enum>(B)</enum><text>ranching; or</text> </subparagraph><subparagraph id="id69F57E7937DF4DCA8A81841194D6A7C4"><enum>(C)</enum><text>aquaculture.</text> </subparagraph></paragraph><paragraph id="ID270D5AFD32B44090BF0003852FBED50D"><enum>(13)</enum><header>Farmer</header><text>The term <term>farmer</term> means an individual or entity engaged primarily and directly in—</text> <subparagraph id="idE82E32B88E0348FE996D11A2E7EE9485"><enum>(A)</enum><text>the production of an agricultural commodity;</text> </subparagraph><subparagraph id="id58AFF937420D486CB9B5121FEDB851CA"><enum>(B)</enum><text>ranching; or</text> </subparagraph><subparagraph id="id599775BEBB624A539B04A43C6A469E2B"><enum>(C)</enum><text>aquaculture.</text> </subparagraph></paragraph><paragraph id="IDBBB071DC6F7E47DCAB3720C58C237AF9"><enum>(14)</enum><header>Farmer program loan</header><text>The term <term>farmer program loan</term> means—</text> <subparagraph id="IDBD02840D818B47D7A8C150ABB8370538"><enum>(A)</enum><text>a farm ownership loan under section 3101;</text> </subparagraph><subparagraph id="IDFB77983207E44651AC769463A7FC9E5C"><enum>(B)</enum><text>a conservation loan under section 3103;</text> </subparagraph><subparagraph id="ID386A61F8B3EF45DFBEBD302428BF450B"><enum>(C)</enum><text>an operating loan under section 3201;</text> </subparagraph><subparagraph id="ID4BD74E0795A947A88840ED52E42117D1"><enum>(D)</enum><text>an emergency loan under section 3301;</text> </subparagraph><subparagraph id="ID012F6B3C9A0D4DE4A6606E7D7706107C"><enum>(E)</enum><text>an economic emergency loan under section 202 of the Emergency Agricultural Credit Adjustment Act of 1978 (7 U.S.C. prec. 1961 note; Public Law 95–334);</text> </subparagraph><subparagraph id="ID4B3765F592E9492EADCE8AE577B994E4"><enum>(F)</enum><text>a loan for a farm service building under section 502 of the <act-name parsable-cite="HA49">Housing Act of 1949</act-name> (42 U.S.C. 1472);</text> </subparagraph><subparagraph id="ID068F21072A1C45488AB791400814FC11"><enum>(G)</enum><text>an economic opportunity loan under section 602 of the Economic Opportunity Act of 1964 (Public Law 88–452; 42 U.S.C. 2942 note) (as it existed before the amendment made by section 683(a) of the Omnibus Budget Reconciliation Act of 1981 (Public Law 97–35; 95 Stat. 519));</text> </subparagraph><subparagraph id="IDF0D4087C6A2344CF98C3DC5BE47516ED"><enum>(H)</enum><text>a softwood timber loan under section 608 of the Agricultural Programs Adjustment Act of 1984 (7 U.S.C. 1981 note; Public Law 98–258); or</text> </subparagraph><subparagraph id="ID493090DEC4F646F59E26244D86F6CBF7"><enum>(I)</enum><text>any other loan described in section 343(a)(10) of this title (as it existed before the amendment made by section 2 of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>) that is outstanding on the date of enactment of that Act.</text> </subparagraph></paragraph><paragraph id="IDDBE474348AC7403F81F19BD5215525BE"><enum>(15)</enum><header>Farm service agency</header><text>The term <term>Farm Service Agency</term> means the offices of the Farm Service Agency to which the Secretary delegates responsibility to carry out this title.</text> </paragraph><paragraph id="ID6A3B5CA1CB754CEAACDADC3F6EED0337"><enum>(16)</enum><header>Governmental entity</header><text>The term <term>governmental entity</term> means any agency of the United States, a State, or a unit of local government of a State, or subdivision thereof.</text> </paragraph><paragraph id="IDC90297524D3D4A3CA968E03CC4C858B0"><enum>(17)</enum><header>Guarantee</header><text>The term <term>guarantee</term> means guaranteeing the payment of a loan originated, held, and serviced by a private financial agency, or lender, approved by the Secretary.</text> </paragraph><paragraph id="ID074490B4DD70421C9AAD90791D9AAE2B"><enum>(18)</enum><header>Highly erodible land</header><text>The term <term>highly erodible land</term> has the meaning given the term in section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)).</text> </paragraph><paragraph id="IDFA064575DFC84A7F8A477B4C85551F33"><enum>(19)</enum><header>Homestead retention</header><text>The term <term>homestead retention</term> means homestead retention as authorized under section 3414.</text> </paragraph><paragraph id="ID342210EC1B9D4F40914D63FBC30E7E8D"><enum>(20)</enum><header>Indian tribe</header><text>The term <term>Indian tribe</term> means a Federal and State-recognized Indian tribe or other federally recognized Indian tribal group (including a Tribal College or University, as defined in section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 1059c(b)).</text> </paragraph><paragraph id="ID2471F6E740B44AC58C8559E4FAFFD316"><enum>(21)</enum><header>Loan service program</header><text>The term <term>loan service program</term> means, with respect to a farmer program loan borrower, a primary loan service program or a homestead retention program.</text> </paragraph><paragraph id="ID9800B86A99B042A0AB999796945DA849"><enum>(22)</enum><header>Natural or major disaster or emergency</header><text>The term <term>natural or major disaster or emergency</term> means—</text> <subparagraph id="ID1FD39A521284430183E78289E9631212"><enum>(A)</enum><text>a disaster due to nonmanmade causes declared by the Secretary; or</text> </subparagraph><subparagraph id="ID214A39F6794E4724A83CDC63B26C7023"><enum>(B)</enum><text>a major disaster or emergency designated by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).</text> </subparagraph></paragraph><paragraph id="IDDD944FABE9924FD5B3874F8A07597C07"><enum>(23)</enum><header>Primary loan service program</header><text>The term <term>primary loan service program</term> means, with respect to a farmer program loan—</text> <subparagraph id="IDE3186A4C4ABC4997AEE77784DB5B76D6"><enum>(A)</enum><text>loan consolidation, rescheduling, or reamortization;</text> </subparagraph><subparagraph id="ID16AF4311544245FEA8B497762A7C4EAE"><enum>(B)</enum><text>interest rate reduction, including the use of the limited resource program;</text> </subparagraph><subparagraph id="IDEC11D4E643784A4F848F097BE16130E8"><enum>(C)</enum><text>loan restructuring, including deferral, set aside, or writing down of the principal or accumulated interest charges, or both, of the loan; or</text> </subparagraph><subparagraph id="ID3FDAD4F0366C4CE28D5B062B09D1A7AF"><enum>(D)</enum><text>any combination of actions described in subparagraphs (A), (B), and (C).</text> </subparagraph></paragraph><paragraph commented="no" id="ID8A8C4E7DD3C04760ACD45119B8F8798A"><enum>(24)</enum><header>Prime farmland</header><text>The term <term>prime farmland</term> means prime farmland and unique farmland (as defined in subsections (a) and (b) of section 657.5 of title 7, Code of Federal Regulations (1980)).</text> </paragraph><paragraph id="IDCC8B22107DFB4785BC4404621D3B63CF"><enum>(25)</enum><header>Project</header><text>For purposes of section 3501, the term <term>project</term> includes a facility providing central service or a facility serving an individual property, or both.</text> </paragraph><paragraph id="ID82B1DA43711941FCA43ECFC7036F9F88"><enum>(26)</enum><header>Qualified beginning farmer</header><text>The term <term>qualified beginning farmer</term> means an applicant, regardless of whether the applicant is participating in a program under section 3107, who—</text> <subparagraph id="ID59893A228107469A9EF5F52525C1FB5F"><enum>(A)</enum><text>is eligible for assistance under this title;</text> </subparagraph><subparagraph id="ID4087A70B751B4665B579EB2A743D5747"><enum>(B)</enum><text>has not operated a farm, or has operated a farm for not more than 10 years;</text> </subparagraph><subparagraph id="ID62E1F6E5F2304E9C85FE9D8C36BF0C32"><enum>(C)</enum><text>in the case of a cooperative, corporation, partnership, or joint operation, has members, stockholders, partners, or joint operators who are all related to each other by blood or marriage;</text> </subparagraph><subparagraph id="IDDF0D3F588DA74CC189E891F4650A6521"><enum>(D)</enum><text>in the case of a farmer who is the owner and operator of a farm—</text> <clause id="ID6ABFF4682ED244D7BC20F5862590137D"><enum>(i)</enum><text>in the case of a loan made to an individual, individually or with the immediate family of the applicant—</text> <subclause id="ID901AA20DB52D430EBEA8A3C4E5DF19A1"><enum>(I)</enum><text>materially and substantially participates in the operation of the farm; and</text> </subclause><subclause id="ID9CC38305E0734EB4BA8E59B57758DD5A"><enum>(II)</enum><text>provides substantial day-to-day labor and management of the farm, consistent with the practices in the State or county in which the farm is located; or</text> </subclause></clause><clause id="ID3423C6FD09C54165BDB40ABAE32AF069"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="ID7ABB361438BA4FC7B99D3FAF4C82853E"><enum>(I)</enum><text>in the case of a loan made to a cooperative, corporation, partnership, or joint operation, has members, stockholders, partners, or joint operators who materially and substantially participate in the operation of the farm; and</text> </subclause><subclause id="IDB5693143FB554B15AB5622E8D525D198" indent="up1"><enum>(II)</enum><text>in the case of a loan made to a corporation, has stockholders who all qualify individually as beginning farmers;</text> </subclause></clause></subparagraph><subparagraph id="ID10221D87180345A18565551951273112"><enum>(E)</enum><text>in the case of an applicant seeking to become an owner and operator of a farm—</text> <clause id="ID861AF3E8BC03491ABFF681B138AED029"><enum>(i)</enum><text>in the case of a loan made to an individual, individually or with the immediate family of the applicant, will—</text> <subclause id="IDB11C8EFEE7B145D395B91B6996416E9B"><enum>(I)</enum><text>materially and substantially participate in the operation of the farm; and</text> </subclause><subclause id="ID4F2119BCEECB45F2946E66947E1CB497"><enum>(II)</enum><text>provide substantial day-to-day labor and management of the farm, consistent with the practices in the State or county in which the farm is located; or</text> </subclause></clause><clause id="ID8BA16F84F868433F899680358A0C9B90"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="ID07C1410486DF4568A1FE054015FB831F"><enum>(I)</enum><text>in the case of a loan made to a cooperative, corporation, partnership, or joint operation, will have members, stockholders, partners, or joint operators who will materially and substantially participate in the operation of the farm; and</text> </subclause><subclause id="IDBA1AF1349F0C421E97F61F09B3A87E68" indent="up1"><enum>(II)</enum><text>in the case of a loan made to a corporation, has stockholders who will all qualify individually as beginning farmers;</text> </subclause></clause></subparagraph><subparagraph id="ID3468095CBC534B898284D03022CB0087"><enum>(F)</enum><text>agrees to participate in such loan assessment, borrower training, and financial management programs as the Secretary may require;</text> </subparagraph><subparagraph id="ID16204EB1123E462DBB27398E9990F80B"><enum>(G)</enum><clause commented="no" display-inline="yes-display-inline" id="IDC4F9C960FD7449C88F0964E8A2A27936"><enum>(i)</enum><text>does not own farm land; or</text> </clause><clause id="IDCB06B2D96B3B4FDF91B75A57D8EB84BD" indent="up1"><enum>(ii)</enum><text>directly or through interests in family farm corporations, owns farm land, the aggregate acreage of which does not exceed 30 percent of the average acreage of the farms, as the case may be, in the county in which the farm operations of the applicant are located, as reported in the most recent census of agriculture taken in accordance with the Census of Agriculture Act of 1997 (7 U.S.C. 2204g et seq.), except that this subparagraph shall not apply to a loan made or guaranteed under chapter 2 of subtitle A; and</text> </clause></subparagraph><subparagraph id="ID4F8B8B401FA147CFAE183A214E925B07"><enum>(H)</enum><text>demonstrates that the available resources of the applicant and any spouse of the applicant are not sufficient to enable the applicant to farm on a viable scale.</text> </subparagraph></paragraph><paragraph id="ID781C167F048345D8BA8B2149A2577E8B"><enum>(27)</enum><header>Recreational purpose</header><text>For purposes of section 3410, the term <term>recreational purpose</term> has the meaning provided by the Secretary, but shall include hunting.</text> </paragraph><paragraph id="id653798892b974a5192ad492116d7a2c1"><enum>(28)</enum><header>Rural and rural area</header> <subparagraph id="ide58472048d2c4957b93b47f6bded6a8b"><enum>(A)</enum><header>In general</header><text>Subject to any determination made under subparagraph (B), the terms <quote>rural’ and ‘rural area</quote> mean any area other than—</text> <clause id="id29bf44cb7b244ba6949ab6b72120a1e5"><enum>(i)</enum><text>a city or town that has a population of greater than 50,000 inhabitants; and</text> </clause><clause id="idaf50e9fc170b48b88ed8a3dd5e9bb750"><enum>(ii)</enum><text>any urbanized area contiguous and adjacent to a city or town described in clause (i).</text> </clause></subparagraph><subparagraph id="idd96d134cc58f46e1a878ba9b4c64b7f5"><enum>(B)</enum><header>Determination of areas rural in character</header> <clause id="idb4a364b5c26245e1abe6b321064b1ec5"><enum>(i)</enum><header>In general</header><text>If part of an area described in subparagraph (A)(ii) was eligible under the definitions of the terms <term>rural</term> and <term>rural area</term> in section 343 (as in effect on the day before the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>) for community facility, water and waste disposal, and broadband programs, that area shall remain eligible unless the Secretary, acting through the Under Secretary for Rural Development (referred to in this subparagraph as the <term>Under Secretary</term>), determines the area is no longer rural, based on the criteria described in clause (iii).</text> </clause><clause id="ide7c0bc2a17f04d1096f288a7be5f6534"><enum>(ii)</enum><header>Other areas</header><text>On petition of a unit of local government in an urbanized area described in subparagraph (A)(ii), or on the initiative of the Under Secretary, the Under Secretary may determine that part of an area is rural, based on the criteria described in clause (iii).</text> </clause><clause id="id77352c53166d407f95ce849961dafc00"><enum>(iii)</enum><header>Criteria</header><text>In making a determination under clause (i), the Under Secretary shall consider—</text> <subclause id="idcbe0e7033fa541029b62e2213c7a2bc4"><enum>(I)</enum><text>population density;</text> </subclause><subclause id="id7ece2394a6ff4bbd9235be685ba53c50"><enum>(II)</enum><text>economic conditions, favoring a rural determination for areas facing—</text> <item id="id6ecd2b88ef1240f9abae9e3bf3de5de8"><enum>(aa)</enum><text>chronic unemployment in excess of statewide averages;</text> </item><item id="id335756d71e6c47568b7c8e79f5f7afc6"><enum>(bb)</enum><text>sudden loss of employment from natural disaster or the loss of a significant employer in the area; or</text> </item><item id="id36f94848a6f84d8d9a1a0cb18c4f25d9"><enum>(cc)</enum><text>chronic poverty demonstrated at the census block or county level compared to statewide median household income; and</text> </item></subclause><subclause id="id08e06158f3494353a91ba14fb69a6e63"><enum>(III)</enum><text>commuting patterns, favoring a rural determination for areas that can demonstrate higher proportions of the population living and working in the area.</text> </subclause></clause><clause id="idb4012b7206c142b79055b8df56f90ffa"><enum>(iv)</enum><header>Administration</header><text>In carrying out this subparagraph, the Under Secretary shall—</text> <subclause id="id7e74a9e552ac4d5bbcde4bc7b5fe6ec7"><enum>(I)</enum><text>not delegate the authority to carry out this subparagraph;</text> </subclause><subclause id="idce3a38e834c245109aa4c2c861ff90fb"><enum>(II)</enum><text>not make a determination under clause (i) until the date that is 3 years after the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>;</text> </subclause><subclause id="id40bee03468834603be40f092b4bd6393"><enum>(III)</enum><text>consult with the applicable rural development State or regional director of the Department and the Governor of the respective State;</text> </subclause><subclause id="id04ca9092041248f8b2fe5f5317413556"><enum>(IV)</enum><text>provide an opportunity to appeal to the Under Secretary a determination made under this subparagraph;</text> </subclause><subclause id="idc3af6c322d88428da2b10cf418f612f6"><enum>(V)</enum><text>release to the public notice of a petition filed or initiative of the Under Secretary under this subparagraph not later than 30 days after receipt of the petition or the commencement of the initiative, as appropriate;</text> </subclause><subclause id="id478192ae414e4837a8a6bb22abf0b9c3"><enum>(VI)</enum><text>make a determination under this subparagraph not less than 15 days, and not more than 60 days, after the release of the notice under subclause (V); and</text> </subclause><subclause id="id5fad135f262043bab9b6cfaa34a9c150"><enum>(VII)</enum><text>submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report on actions taken to carry out this subparagraph.</text> </subclause></clause><clause id="idd2ddbad07378480d857c82248712b286"><enum>(v)</enum><header>Hawaii and Puerto Rico</header><text>Notwithstanding any other provision of this subsection, within the areas of the County of Honolulu, Hawaii, and the Commonwealth of Puerto Rico, the Under Secretary may designate any part of the areas as a rural area if the Under Secretary determines that the part is not urban in character, other than any area included in the Honolulu Census Designated Place or the San Juan Census Designated Place.</text> </clause></subparagraph><subparagraph id="id5598caf378034b5bb34a88843a6e68a2"><enum>(C)</enum><header>Exclusions</header><text>Notwithstanding any other provision of this paragraph, in determining which census blocks in an urbanized area are not in a rural area (as defined in this paragraph), the Secretary shall exclude any cluster of census blocks that would otherwise be considered not in a rural area only because the cluster is adjacent to not more than 2 census blocks that are otherwise considered not in a rural area under this paragraph.</text> </subparagraph></paragraph><paragraph id="ID7F10506134CB4B74A1FD3CD1DDFE4EB1"><enum>(29)</enum><header>Seasoned direct loan borrower</header><text>The term <term>seasoned direct loan borrower</term> means a borrower who could reasonably be expected to qualify for commercial credit using criteria determined by the Secretary.</text> </paragraph><paragraph id="ID2D74DBD313EF4D5BA57C92EB1679A5EF"><enum>(30)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Agriculture.</text> </paragraph><paragraph id="IDCF7FA74BA1754D3C9A4FF98A66E67B82"><enum>(31)</enum><header>Socially disadvantaged farmer</header><text>The term <term>socially disadvantaged farmer</term> means a farmer who is a member of a socially disadvantaged group.</text> </paragraph><paragraph id="ID9E0CB726CF274B99B9BFF8D42F799C12"><enum>(32)</enum><header>Socially disadvantaged group</header><text>The term <term>socially disadvantaged group</term> means a group whose members have been subjected to racial, ethnic, or gender prejudice because of the identity of the members as members of a group without regard to the individual qualities of the members.</text> </paragraph><paragraph id="ID4951E4761555457194240DB90A33BA38"><enum>(33)</enum><header>Solar energy</header><text>The term <term>solar energy</term> means energy derived from sources (other than fossil fuels) and technologies included in the Federal Nonnuclear Energy Research and Development Act of 1974 (42 U.S.C. 5901 et seq.).</text> </paragraph><paragraph id="IDED424B4338D84E68A03696736594C47C"><enum>(34)</enum><header>State</header><text>The term <term>State</term> means—</text> <subparagraph id="IDC6D17625BD454306867F5CD6AFCDA625"><enum>(A)</enum><text>in this title (other than subtitle A), each of the 50 States, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau; and</text> </subparagraph><subparagraph id="ID51D2A6F13B2C47B4AC6FD80826D0E2D8"><enum>(B)</enum><text>in subtitle A, each of the 50 States, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and, to the extent the Secretary determines it to be feasible and appropriate, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.</text> </subparagraph></paragraph><paragraph id="ID4AC22C74E6C148ACA7622FAC437903DD"><enum>(35)</enum><header>State beginning farmer program</header><text>The term <term>State beginning farmer program</term> means any program that is—</text> <subparagraph id="ID0EA753D77AB64822B020A3A676D7727C"><enum>(A)</enum><text>carried out by, or under contract with, a State; and</text> </subparagraph><subparagraph id="ID3B221F6222664CD58CC45F2649DC7447"><enum>(B)</enum><text>designed to assist qualified beginning farmers in obtaining the financial assistance necessary to enter agriculture and establish viable farming operations.</text> </subparagraph></paragraph><paragraph id="ID7F3EB70FD8904D9E9D011E6DC3B4DCCA"><enum>(36)</enum><header>Veteran</header><text>The term <term>veteran</term> has the meaning given the term in section 101 of title 38, United States Code.</text> </paragraph><paragraph id="IDE9973E787AD6404AAD71E70D4AC20618"><enum>(37)</enum><header>Wetland</header><text>The term <term>wetland</term> has the meaning given the term in section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID99DC255194C34067A4EDCD82F53A3454"><enum>(38)</enum><header>Wildlife</header><text>The term <term>wildlife</term> means fish or wildlife (as defined in section 2(a) of the Lacey Act Amendments of 1981 (16 U.S.C. 3371(a))).</text> </paragraph></section><subtitle id="ID81F1351350B34A30858208F77FA7E6CF"><enum>B<?LEXA-Enum B?></enum><header>Rural development</header> <chapter id="IDEDC8E4DF4A624540A0F04D52CEF6068A"><enum>1</enum><header>Rural community programs</header> <section id="ID8719269A8D784B3EA507D87D8649C523"><enum>3501.</enum><header>Water and waste disposal loans, loan guarantees, and grants</header> <subsection id="IDf465599a6a0e4c7c98fbe93679e051cb"><enum>(a)</enum><header>In general</header><text>The Secretary may make grants and loans and issue loan guarantees (including a guarantee of a loan financed by the net proceeds of a bond described in section 142(a) of the Internal Revenue Code of 1986) to eligible entities described in subsection (b) for projects in rural areas that primarily serve rural residents to provide for—</text> <paragraph id="ID11a122de19f74ac5bf1d250dd6cd9f77"><enum>(1)</enum><text>the development, storage, treatment, purification, or distribution of water or the collection, treatment, or disposal of waste; and</text> </paragraph><paragraph id="IDea2f444e18104e7ca60aa1116652851d"><enum>(2)</enum><text>financial assistance and other aid in the planning of projects for purposes described in paragraph (1).</text> </paragraph></subsection><subsection id="ID83fc5a447dee447ea22a521534293479"><enum>(b)</enum><header>Eligible entities</header><text>Entities eligible for assistance described in subsection (a) are—</text> <paragraph id="IDdd180b925ce040b48c7377aeb8545af0"><enum>(1)</enum><text>associations (including corporations not operated for profit);</text> </paragraph><paragraph id="ID7b7d70fd52ef472d9d423e9069cedfd4"><enum>(2)</enum><text>Indian tribes;</text> </paragraph><paragraph id="IDfbb789cbe30e456280bb5783b3c61cbe"><enum>(3)</enum><text>public and quasi-public agencies; and</text> </paragraph><paragraph id="ID7ad9ac6c46ff4b52b32d2b0fa842e537"><enum>(4)</enum><text>in the case of a project to attach an individual property in a rural area to a water system to alleviate a health risk, an individual.</text> </paragraph></subsection><subsection id="IDbbaa6d23a16349579149b428e7c05591"><enum>(c)</enum><header>Loan and loan guarantee requirements</header><text>In connection with loans made or guaranteed under this section, the Secretary shall require the applicant—</text> <paragraph id="ID175e38c0fb4d4839ae174766d307429e"><enum>(1)</enum><text>to certify in writing, and the Secretary shall determine, that the applicant is unable to obtain sufficient credit elsewhere to finance the actual needs of the applicant at reasonable rates and terms, taking into consideration prevailing private and cooperative rates and terms in the community in or near which the applicant resides for loans for similar purposes and periods of time; and</text> </paragraph><paragraph id="ID8b65bcc6fb8442c587e2cc9e0378ae5c"><enum>(2)</enum><text>to furnish an appropriate written financial statement.</text> </paragraph></subsection><subsection id="ID6dc02b6e929c446ca28f3d8e0761e5ce"><enum>(d)</enum><header>Grant amounts</header> <paragraph id="IDed8b3d98bfea49709aa531d70e1fe26d"><enum>(1)</enum><header>Maximum</header><text>Except as otherwise provided in this subsection, the amount of any grant made under this section shall not exceed 75 percent of the development cost of the project for which the grant is provided.</text> </paragraph><paragraph id="ID9780f3e5ffd04d1d89ed555c4092ce12"><enum>(2)</enum><header>Grant rate</header><text>The Secretary shall establish the grant rate for each project in conformity with regulations issued by the Secretary that shall provide for a graduated scale of grant rates that establish higher rates for projects in communities that have—</text> <subparagraph id="id7B92E70D1F0E466DBA8E86BBAC1A938F"><enum>(A)</enum><text>lower community population;</text> </subparagraph><subparagraph id="id4AD433E81B0540AAA4FF19EAC7F9B2C0"><enum>(B)</enum><text>higher rates of outmigration; and</text> </subparagraph><subparagraph id="id755BE89CC0E740ABA0DF2A739A5F7BE9"><enum>(C)</enum><text>lower income levels.</text> </subparagraph></paragraph><paragraph id="ID10f4c19794704996a346ab6cf86ad2b9"><enum>(3)</enum><header>Local share requirements</header><text>Grants made under this section may be used to pay the local share requirements of another Federal grant-in-aid program to the extent permitted under the law providing for the grant-in-aid program.</text> </paragraph></subsection><subsection id="ID24fea1ffcdcc46eb97d072fb033c4791"><enum>(e)</enum><header>Special grants</header> <paragraph id="idE1C9D23E10FA4F4AA33F40773DF56D33"><enum>(1)</enum><header>Revolving funds for financing water and wastewater projects</header> <subparagraph id="id6747E97B56C94C53AC123B886BFCEC53"><enum>(A)</enum><header>In general</header><text>The Secretary may make grants to qualified, nonprofit entities in rural areas to capitalize revolving funds for the purpose of providing financing to eligible entities for—</text> <clause id="IDcd47593305ff486490a539316dc0f0aa"><enum>(i)</enum><text>predevelopment costs associated with proposed water and wastewater projects or with existing water and wastewater systems; and</text> </clause><clause id="ID642dfacf4c064c73a08c90dde06cd216"><enum>(ii)</enum><text>short-term costs incurred for replacement equipment, small-scale extension services, or other small capital projects that are not part of the regular operations and maintenance activities of existing water and wastewater systems.</text> </clause></subparagraph><subparagraph id="id200b309397774339950333e4cddccede"><enum>(B)</enum><header>Maximum amount of financing</header><text>The amount of financing made to an eligible entity under this paragraph shall not exceed—</text> <clause id="id9ff07aec10da4fd2abbf96588f895fb7"><enum>(i)</enum><text>$100,000 for costs described in subparagraph (A)(i); and</text> </clause><clause id="id1d9528b80b5c410e8ae10499448759a0"><enum>(ii)</enum><text>$100,000 for costs described in subparagraph (A)(ii).</text> </clause></subparagraph><subparagraph id="idea93dcdf51854abe8e70569b9e99d3c2"><enum>(C)</enum><header>Term</header><text>The term of financing provided to an eligible entity under this paragraph shall not exceed 10 years.</text> </subparagraph><subparagraph id="idb7a7eaa5e92040fb820dfa251cfcddce"><enum>(D)</enum><header>Administration</header><text>The Secretary shall limit the amount of grant funds that may be used by a grant recipient for administrative costs incurred under this paragraph.</text> </subparagraph><subparagraph id="ida041b0063a6b4fcfb3d5ce085ecc1a89"><enum>(E)</enum><header>Annual report</header><text>A nonprofit entity receiving a grant under this paragraph shall submit to the Secretary an annual report that describes the number and size of communities served and the type of financing provided.</text> </subparagraph><subparagraph id="ida8d8480df142492592157761c8b69f81"><enum>(F)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this paragraph $30,000,000 for each of fiscal years 2013 through 2017.</text> </subparagraph></paragraph><paragraph id="idaf61a71a0d454c0cbc375e666229bac1"><enum>(2)</enum><header>Emergency and imminent community water assistance program</header> <subparagraph id="id3afb94386d854f8fb73d41463973c2e3"><enum>(A)</enum><header>In general</header><text>The Secretary shall provide grants in accordance with this paragraph to assist the residents of rural areas and small communities to secure adequate quantities of safe water—</text> <clause id="idf35cc3b4229648418a125c57038eda43"><enum>(i)</enum><text>after a significant decline in the quantity or quality of water available from the water supplies of the rural areas and small communities, or when such a decline is imminent; or</text> </clause><clause id="id720ccc814aeb4d3fbe7af79fac99c4ed"><enum>(ii)</enum><text>when repairs, partial replacement, or significant maintenance efforts on established water systems would remedy—</text> <subclause id="id08f1378f4ac445939f259a284c3fd79f"><enum>(I)</enum><text>an acute or imminent shortage of quality water; or</text> </subclause><subclause id="id72886ee6bf9443259570eaa74c40fd1d"><enum>(II)</enum><text>a significant or imminent decline in the quantity or quality of water that is available.</text> </subclause></clause></subparagraph><subparagraph id="id5c5735553ca24a8789a2deb91426179c"><enum>(B)</enum><header>Priority</header><text>In carrying out subparagraph (A), the Secretary shall—</text> <clause id="ida0e60db41b5e47a780b7eb1aee5b437c"><enum>(i)</enum><text>give priority to projects described in subparagraph (A)(i); and</text> </clause><clause id="id3ad30b2c01b442ffb4e6cf8fc691adbc"><enum>(ii)</enum><text>provide at least 70 percent of all grants under this paragraph to those projects.</text> </clause></subparagraph><subparagraph id="idedf29656e591451e92a4e5d0cf2a8a44"><enum>(C)</enum><header>Eligibility</header><text>To be eligible to obtain a grant under this paragraph, an applicant shall—</text> <clause id="id2b0a7696e6ea437b8041bffa95bda106"><enum>(i)</enum><text>be a public or private nonprofit entity; and</text> </clause><clause id="id148a1a00333744638f4dfe3537a4aafe"><enum>(ii)</enum><text>in the case of a grant made under subparagraph (A)(i), demonstrate to the Secretary that the decline referred to in that subparagraph occurred, or will occur, not later than 2 years after the date on which the application was filed for the grant.</text> </clause></subparagraph><subparagraph id="id4606d17f40fb42a1b378350e4f33f495"><enum>(D)</enum><header>Uses</header> <clause id="id8e8dc068ff8445b4bb71c3008cb02be9"><enum>(i)</enum><header>In general</header><text>Grants made under this paragraph may be used—</text> <subclause id="id384334bd5acf42fa8ec4c88b51a588c0"><enum>(I)</enum><text>for waterline extensions from existing systems, laying of new waterlines, repairs, significant maintenance, digging of new wells, equipment replacement, and hook and tap fees;</text> </subclause><subclause id="id3892186d97a94d7cb62aa6b63510936b"><enum>(II)</enum><text>for any other appropriate purpose associated with developing sources of, treating, storing, or distributing water;</text> </subclause><subclause id="idfbac7904afa5444096da76f9e0b1e6fc"><enum>(III)</enum><text>to assist communities in complying with the requirements of the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) or the Safe Drinking Water Act (42 U.S.C. 300f et seq.); and</text> </subclause><subclause id="id279371459d914f3482e0306fa004a3e7"><enum>(IV)</enum><text>to provide potable water to communities through other means.</text> </subclause></clause><clause id="ida72e877127694fedbaa750d6f9f48635"><enum>(ii)</enum><header>Joint proposals</header> <subclause id="id3B1CDDAA95D74897A4D76C07A37D6C12"><enum>(I)</enum><header>In general</header><text>Subject to the restrictions in subparagraph (E), nothing in this paragraph precludes rural communities from submitting joint proposals for emergency water assistance.</text> </subclause><subclause id="id686B1BB111EA459EB752E2618E159852"><enum>(II)</enum><header>Consideration of restrictions</header><text>The restrictions in subparagraph (E) shall be considered in the aggregate, depending on the number of communities involved.</text> </subclause></clause></subparagraph><subparagraph id="idfad60cbfe5464b488759fff39a1ca9a4"><enum>(E)</enum><header>Restrictions</header> <clause id="idafc26f42f7fd4e6cb0d80873974910c0"><enum>(i)</enum><header>Maximum income</header><text>No grant provided under this paragraph shall be used to assist any rural area or community that has a median household income in excess of the State nonmetropolitan median household income according to the most recent decennial census of the United States.</text> </clause><clause id="id3659c79ddf10492791c27705e0abbb23"><enum>(ii)</enum><header>Set-aside for smaller communities</header><text>Not less than 50 percent of the funds allocated under this paragraph shall be allocated to rural communities with populations that do not exceed 3,000 inhabitants.</text> </clause></subparagraph><subparagraph id="id0faf72b6b14b44a084cb705ee63d6615"><enum>(F)</enum><header>Maximum grants</header><text>Grants made under this paragraph may not exceed—</text> <clause id="id0f35ae65fec84eca8bed3ee0f4b40724"><enum>(i)</enum><text>in the case of each grant made under subparagraph (A)(i), $500,000; and</text> </clause><clause id="ide12a490bd1dd474382a5d9043d02ef1d"><enum>(ii)</enum><text>in the case of each grant made under subparagraph (A)(ii), $150,000.</text> </clause></subparagraph><subparagraph id="id990d9b36ccd4442d87d3416ed166b639"><enum>(G)</enum><header>Full funding</header><text>Subject to subparagraph (F), grants under this paragraph shall be made in an amount equal to 100 percent of the costs of the projects conducted under this paragraph.</text> </subparagraph><subparagraph id="id87e79c1c1a50405ab085fa213dd90352"><enum>(H)</enum><header>Application</header> <clause id="id42463634da8b4376adc9ed7e7787ee10"><enum>(i)</enum><header>Nationally competitive application process</header> <subclause id="id072a4e0d6a42411491a63563ab55e8cf"><enum>(I)</enum><header>In general</header><text>The Secretary shall develop a nationally competitive application process to award grants under this paragraph.</text> </subclause><subclause id="id61b667212f794bc584c4427365b05fce"><enum>(II)</enum><header>Requirements</header><text>The process shall include criteria for evaluating applications, including population, median household income, and the severity of the decline, or imminent decline, in the quantity or quality of water.</text> </subclause></clause><clause id="id5152b2fb0bd946f5898d2dcd35a1c564"><enum>(ii)</enum><header>Timing of review of applications</header> <subclause id="id146dbcd8579f4b769b2fd6ae823147a5"><enum>(I)</enum><header>Simplified application</header><text>The application process developed by the Secretary under clause (i) shall include a simplified application form that will permit expedited consideration of an application for a grant filed under this paragraph.</text> </subclause><subclause id="id0a845605461b476f92d4d947505e2fa4"><enum>(II)</enum><header>Priority review</header><text>In processing applications for any water or waste grant or loan authorized under this section, the Secretary shall afford priority processing to an application for a grant under this paragraph to the extent funds will be available for an award on the application at the conclusion of priority processing.</text> </subclause><subclause id="id7215d12f976040cdaca4bd4f4a4afe75"><enum>(III)</enum><header>Timing</header><text>The Secretary shall, to the maximum extent practicable, review and act on an application under this paragraph not later than 60 days after the date on which the application is submitted to the Secretary.</text> </subclause></clause></subparagraph><subparagraph id="idb74a5a16fffb4a4490f625cdf7a5a264"><enum>(I)</enum><header>Funding</header> <clause id="id54b5ea82c27843b1b145c6304c9cfab8"><enum>(i)</enum><header>Reservation</header> <subclause id="id9ae447d0e15b42bfb1d2edb7d9dcb4de"><enum>(I)</enum><header>In general</header><text>For each fiscal year, not less than 3 nor more than 5 percent of the total amount made available to carry out this section for the fiscal year shall be reserved for grants under this paragraph.</text> </subclause><subclause id="id2ce4edd8cbd34aa7ab7dc9c9bace9a5f"><enum>(II)</enum><header>Release</header><text>Funds reserved under subclause (I) for a fiscal year shall be reserved only until July 1 of the fiscal year.</text> </subclause></clause><clause id="id1f798d8f44b54420bd29edfa86ab48d3"><enum>(ii)</enum><header>Authorization of appropriations</header><text>In addition to funds made available under clause (i), there is authorized to be appropriated to carry out this paragraph $35,000,000 for each of fiscal years 2013 through 2017.</text> </clause></subparagraph></paragraph><paragraph id="id55eb7a431a5c46daabafe95e3ab25e54"><enum>(3)</enum><header>Water and waste facility loans and grants to alleviate health risks</header> <subparagraph id="idaf2c69a6a02f4140a44fab1410a8d9b1"><enum>(A)</enum><header>Definition of cooperative</header><text>In this paragraph, the term <term>cooperative</term> means a cooperative formed specifically for the purpose of the installation, expansion, improvement, or operation of water supply or waste disposal facilities or systems.</text> </subparagraph><subparagraph id="id21bb651e2d834da7a7861571cb5a1abb"><enum>(B)</enum><header>Loans and grants to persons other than individuals</header> <clause id="id58a1c47ca1e548f7890cf1ccf49443b8"><enum>(i)</enum><header>In general</header><text>The Secretary shall make or guarantee loans and make grants to provide for the conservation, development, use, and control of water (including the extension or improvement of existing water supply systems) and the installation or improvement of drainage or waste disposal facilities and essential community facilities, including necessary related equipment, training, and technical assistance to—</text> <subclause id="id8c108cbe43bf4ffaabc81ac3a0f08543"><enum>(I)</enum><text>rural water supply corporations, cooperatives, or similar entities;</text> </subclause><subclause id="id885239e5e950428091cc50a939828173"><enum>(II)</enum><text>Indian tribes on Federal or State reservations and other federally recognized Indian tribes;</text> </subclause><subclause id="id0c1b3fea116543afa879b841f1a1c386"><enum>(III)</enum><text>rural or native villages in the State of Alaska;</text> </subclause><subclause id="id75350bef15f746818861c89a5bdb619e"><enum>(IV)</enum><text>native tribal health consortiums;</text> </subclause><subclause id="idce0e79c398e840658c4e4b7445c2d1a7"><enum>(V)</enum><text>public agencies; and</text> </subclause><subclause id="id02783c5d42884916adc65e9d13c805e3"><enum>(VI)</enum><text>Native Hawaiian Home Lands.</text> </subclause></clause><clause id="idc35af59b6e464e77a309073682a67fcf"><enum>(ii)</enum><header>Eligible projects</header><text>Loans and grants described in clause (i) shall be available only to provide the described water and waste facilities and services to communities whose residents face significant health risks, as determined by the Secretary, due to the fact that a significant proportion of the residents of the community do not have access to, or are not served by, adequate affordable—</text> <subclause id="iddb2e2f101b5d4e9ea501fb8030b4905d"><enum>(I)</enum><text>water supply systems; or</text> </subclause><subclause id="id6fe3a4561bf446e59872b517429b7ce5"><enum>(II)</enum><text>waste disposal facilities.</text> </subclause></clause><clause id="ida675b5e4bbee4d48a6fffffe480708e0"><enum>(iii)</enum><header>Matching requirements</header><text>For entities described under subclauses (III), (IV), or (V) of clause (i) to be eligible to receive a grant for water supply systems or waste disposal facilities, the State in which the project will occur shall provide 25 percent in matching funds from non-Federal sources.</text> </clause><clause id="id81a2d10e0e184b04ae09078c4e10f768"><enum>(iv)</enum><header>Certain areas targeted</header> <subclause id="idacee080247bf46e9bd95569a08bb8d6e"><enum>(I)</enum><header>In general</header><text>Loans and grants under clause (i) shall be made only if the loan or grant funds will be used primarily to provide water or waste services, or both, to residents of a county or census area—</text> <item id="idC64B450549544A81AB0089A79A1F2505"><enum>(aa)</enum><text>the per capita income of the residents of which is not more than 70 percent of the national average per capita income, as determined by the Department of Commerce; and</text> </item><item id="id044F636169BB49BD851BC75B87B251D6"><enum>(bb)</enum><text>the unemployment rate of the residents of which is not less than 125 percent of the national average unemployment rate, as determined by the Bureau of Labor Statistics.</text> </item></subclause><subclause id="idE436154474704C17A08E89949686B50C"><enum>(II)</enum><header>Exceptions</header><text>Notwithstanding subclause (I), loans and grants under clause (i) may also be made if the loan or grant funds will be used primarily to provide water or waste services, or both, to residents of—</text> <item id="idF16A694AAA764363A11B8034C20EACE7"><enum>(aa)</enum><text>a rural area that was recognized as a colonia as of October 1, 1989; or</text> </item><item id="id1F4C8F5E459C4D4491B803020C2CB2F1"><enum>(bb)</enum><text>an area described under subclause (II), (III), or (VI) of clause (i).</text> </item></subclause></clause></subparagraph><subparagraph id="idf06621a0df404dbba7a6679d5408580d"><enum>(C)</enum><header>Loans and grants to individuals</header> <clause id="id896f0f1907384577858185999f824864"><enum>(i)</enum><header>In general</header><text>The Secretary shall make or guarantee loans and make grants to individuals who reside in a community described in subparagraph (B)(i) for the purpose of extending water supply and waste disposal systems, connecting the systems to the residences of the individuals, or installing plumbing and fixtures within the residences of the individuals to facilitate the use of the water supply and waste disposal systems.</text> </clause><clause id="id0285c793cb4a4b5cbd3f1f4f9a5a0b4a"><enum>(ii)</enum><header>Interest</header><text>Loans described in clause (i) shall be at a rate of interest no greater than the Federal Financing Bank rate on loans of a similar term at the time the loans are made.</text> </clause><clause id="id7e0c0d3f467346aba39a36c06751ab29"><enum>(iii)</enum><header>Amortization</header><text>The repayment of loans described in clause (i) shall be amortized over the expected life of the water supply or waste disposal system to which the residence of the borrower will be connected.</text> </clause><clause id="id53c265a1aedb4515a257e1c9b81a398a"><enum>(iv)</enum><header>Manner in which loans and grants are to be made</header><text>Loans and grants to individuals under clause (i) shall be made—</text> <subclause id="id2df795867b434ea5b36157f605904931"><enum>(I)</enum><text>directly to the individuals by the Secretary; or</text> </subclause><subclause id="idcd615058778f4fef9b5330cf53ad4097"><enum>(II)</enum><text>to the individuals through the rural water supply corporation, cooperative, or similar entity, or public agency, providing the water supply or waste disposal services, pursuant to regulations issued by the Secretary.</text> </subclause></clause></subparagraph><subparagraph id="id3366c33096004ba1952510a0612d7455"><enum>(D)</enum><header>Preference</header><text>The Secretary shall give preference in the awarding of loans and grants under subparagraphs (B) and (C) to entities described in clause (i) of subparagraph (B) that propose to provide water supply or waste disposal services to the residents of Indian reservations, rural or native villages in the State of Alaska, Native Hawaiian Home Lands, and those rural subdivisions commonly referred to as colonias, that are characterized by substandard housing, inadequate roads and drainage, and a lack of adequate water or waste facilities.</text> </subparagraph><subparagraph id="id78951DB3199C428286C0AEF4EC4F1E56"><enum>(E)</enum><header>Relationship to other authority</header><text>Notwithstanding any other provision of law, the head of any Federal agency may enter into interagency agreements with Federal, State, tribal, and other entities to share resources, including transferring and accepting funds, equipment, or other supplies, to carry out the activities described in this paragraph.</text> </subparagraph><subparagraph id="id2B985ACE1C994B42AF539D082A94A100"><enum>(F)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated—</text> <clause id="id9304f74b879347d4bbc6a992b7b5c5f3"><enum>(i)</enum><text>for grants under this paragraph, $60,000,000 for each fiscal year;</text> </clause><clause id="id362b562f98804c3598bdc564d4240506"><enum>(ii)</enum><text>for loans under this paragraph, $60,000,000 for each fiscal year; and</text> </clause><clause id="idf5f1fb6835844fcc89cd3d4d45b3eb0e"><enum>(iii)</enum><text>in addition to grants provided under clause (i), for grants under this section to benefit Indian tribes, $20,000,000 for each fiscal year.</text> </clause></subparagraph></paragraph><paragraph id="IDa92de935f65f4f8294766b96014bfd14"><enum>(4)</enum><header>Solid waste management grants</header> <subparagraph id="IDb90efdef780f4b5eb6bea18ddbb940eb"><enum>(A)</enum><header>In general</header><text>The Secretary may make grants to nonprofit organizations for the provision of regional technical assistance to local and regional governments and related agencies for the purpose of reducing or eliminating pollution of water resources and improving the planning and management of solid waste disposal facilities in rural areas.</text> </subparagraph><subparagraph id="ID5d41bb327d6c445ab08d3b6c3175477c"><enum>(B)</enum><header>Technical assistance grant amounts</header><text>Grants made under this paragraph for the provision of technical assistance shall be made for 100 percent of the cost of the technical assistance.</text> </subparagraph><subparagraph id="id69a7fb11cdbf4422ab2250defeacf7a5"><enum>(C)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this paragraph $10,000,000 for each of fiscal years 2013 through 2017</text> </subparagraph></paragraph><paragraph id="ID62d5ac17586a4f12b5db1d2360ef3f75"><enum>(5)</enum><header>Rural water and wastewater technical assistance and training programs</header> <subparagraph id="IDa6eae9ca4c6c463db13181c3da682f72"><enum>(A)</enum><header>Grants to nonprofits</header> <clause id="ID7f02473923944470b45f294d24295cbd"><enum>(i)</enum><header>In general</header><text>The Secretary may make grants to nonprofit organizations to enable the organizations to provide to associations that provide water and wastewater services in rural areas technical assistance and training—</text> <subclause id="IDabe6c62d47b14794ae9091a325b66c78"><enum>(I)</enum><text>to identify, and evaluate alternative solutions to, problems relating to the obtaining, storage, treatment, purification, or distribution of water or the collection, treatment, or disposal of waste in rural areas;</text> </subclause><subclause id="ID2ca4c6e20dd84ca6892c83ae64004ad8"><enum>(II)</enum><text>to prepare applications to receive financial assistance for any purpose specified in subsection (a)(1) from any public or private source; and</text> </subclause><subclause id="ID8690889c1bae4b248c34b7462dbeef21"><enum>(III)</enum><text>to improve the operation and maintenance practices at any existing works for the storage, treatment, purification, or distribution of water or the collection, treatment, or disposal of waste in rural areas.</text> </subclause></clause><clause id="ID125097920d2144b1989339d5df8aa19e"><enum>(ii)</enum><header>Selection priority</header><text>In selecting recipients of grants to be made under clause (i), the Secretary shall give priority to nonprofit organizations that have experience in providing the technical assistance and training described in clause (i) to associations serving rural areas in which—</text> <subclause id="ID8c574d8a4640448f844e600699af824f"><enum>(I)</enum><text>residents have low income; and</text> </subclause><subclause id="IDa68fe03e04e442d1b05a7208c2b036eb"><enum>(II)</enum><text>water supply systems or waste facilities are unhealthful.</text> </subclause></clause><clause id="IDe89d9a8b9cb7426d8d5c36d4fef8464c"><enum>(iii)</enum><header>Funding</header> <subclause id="IDa30926e026ce40dfafb1e23b0d41a428"><enum>(I)</enum><header>In general</header><text>Except as provided in subclause (II), not less than 1 nor more than 3 percent of any funds made available to carry out water and waste disposal projects described in subsection (a) for any fiscal year shall be reserved for grants under this paragraph.</text> </subclause><subclause id="ID1c5794ecfe364a32b91e2d6987f57161"><enum>(II)</enum><header>Exception</header><text>The minimum amount specified in subclause (I) shall not apply if the aggregate amount of grant funds requested by applications that qualify for grants received by the Secretary from eligible nonprofit organizations for the fiscal year totals less than 1 percent of those funds.</text> </subclause></clause></subparagraph><subparagraph commented="no" id="ID864643809ca148f182a99dd1fe363c48"><enum>(B)</enum><header>Rural water and wastewater circuit rider program</header> <clause commented="no" id="id4AA48E243714405BAA4CA9219C74C71F"><enum>(i)</enum><header>In general</header><text>The Secretary shall continue a national rural water and wastewater circuit rider program that—</text> <subclause commented="no" id="id07D07CA676CD4A3FBC023FE26CD33CCA"><enum>(I)</enum><text>is consistent with the activities and results of the program conducted before January 1, 2012, as determined by the Secretary; and</text> </subclause><subclause commented="no" id="idD08DE59A989E47BFA26BD37D18589B3E"><enum>(II)</enum><text>received funding from the Secretary, acting through the Administrator of the Rural Utilities Service.</text> </subclause></clause><clause commented="no" id="IDbd2c0f1e4a9a466db20ee7d2bb26040d"><enum>(ii)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this subparagraph $25,000,000 for fiscal year 2013 and each fiscal year thereafter.</text> </clause></subparagraph></paragraph><paragraph id="ID3b6dab1ca43b4911b832b350604a09ac"><enum>(6)</enum><header>SEARCH Program</header> <subparagraph id="IDeb5294c5f83040ba83267552c706f794"><enum>(A)</enum><header>In general</header><text>The Secretary may establish a Special Evaluation Assistance for Rural Communities and Households (SEARCH) program to make predevelopment planning grants for feasibility studies, design assistance, and technical assistance, to financially distressed communities in rural areas with populations of 2,500 or fewer inhabitants for water and waste disposal projects described in this section.</text> </subparagraph><subparagraph id="ID239a4bb139574b348203036ffc596cea"><enum>(B)</enum><header>Terms</header> <clause id="IDc10a8fb504a24d8c93a7a3adde5cdfef"><enum>(i)</enum><header>Documentation</header><text>With respect to grants made under this paragraph, the Secretary shall require the lowest quantity of documentation practicable.</text> </clause><clause id="IDe4e88c62e5124b79b5ecbb0cd9698a73"><enum>(ii)</enum><header>Matching</header><text>Notwithstanding any other provision of this section, the Secretary may fund up to 100 percent of the eligible costs of grants provided under this paragraph, as determined by the Secretary.</text> </clause><clause id="ID4946772428e7441c855b411a4fe1c351"><enum>(iii)</enum><header>Funding</header><text>The Secretary may use not more than 4 percent of the total amount of funds made available for a fiscal year for water, waste disposal, and essential community facility activities under this chapter to carry out this paragraph.</text> </clause></subparagraph><subparagraph id="ID9cf57e95fb29491086fb424ce0207c16"><enum>(C)</enum><header>Relationship to other authority</header> <clause id="IDe44d0aed88774235a54694cbd30bc452"><enum>(i)</enum><header>In general</header><text>The funds and authorities provided under this paragraph are in addition to any other funds or authorities the Secretary may have to carry out activities described in this section.</text> </clause><clause id="IDe842e0c0a6e547a1a782b38904046352"><enum>(ii)</enum><header>Authorized activities</header><text>The Secretary may furnish financial assistance or other aid in planning projects for the purposes described in subparagraph (A).</text> </clause></subparagraph></paragraph></subsection><subsection id="ID701bdbef1d974d52bf3bce0ddb46bf66"><enum>(f)</enum><header>Priority</header><text>In making grants and loans, and guaranteeing loans, for water, wastewater, and waste disposal projects under this section, the Secretary shall give priority consideration to projects that serve rural communities that, as determined by the Secretary—</text> <paragraph id="IDc3a228a2e3f243aeab38084d5009c332"><enum>(1)</enum><text>have a population of less than 5,500 permanent residents;</text> </paragraph><paragraph id="IDdc34a66495f64358af5c97233530a50a"><enum>(2)</enum><text>have a community water, wastewater, or waste disposal system that—</text> <subparagraph id="ID3ccd794c340543459536fd2e7f3780d3"><enum>(A)</enum><text>is experiencing—</text> <clause id="IDfb6efd6127674f39a2524a128183f7af"><enum>(i)</enum><text>an unanticipated reduction in the quality of water, the quantity of water, or the ability to deliver water; or</text> </clause><clause id="ID366b89c9c7074f529ca353be488cc2cc"><enum>(ii)</enum><text>some other deterioration in the supply of water to the community;</text> </clause></subparagraph><subparagraph id="ID8544b9faafe84ee3a3006227a3ccdfec"><enum>(B)</enum><text>is not adequate to meet the needs of the community; and</text> </subparagraph><subparagraph id="ID6c133107e3734bcdb82571dd3b78870d"><enum>(C)</enum><text>requires immediate corrective action;</text> </subparagraph></paragraph><paragraph id="ID3a8719d2282244ceaedadbec1e837c03"><enum>(3)</enum><text>are experiencing outmigration;</text> </paragraph><paragraph id="IDf69dba3eb0184c8cb82911a638decefe"><enum>(4)</enum><text>have a high percentage of low-income residents; or</text> </paragraph><paragraph id="IDce282d4bdd714da287c2558301ca2746"><enum>(5)</enum><text>are isolated from other significant population centers.</text> </paragraph></subsection><subsection id="idAE54CD3483034ECD8D53154F4FA0BDAB"><enum>(g)</enum><header>Curtailment or limitation of service prohibited</header><text>The service provided or made available through any such association shall not be curtailed or limited by inclusion of the area served by such association within the boundaries of any municipal corporation or other public body, or by the granting of any private franchise for similar service within such area during the term of such loan; nor shall the happening of any such event be the basis of requiring such association to secure any franchise, license, or permit as a condition to continuing to serve the area served by the association at the time of the occurrence of such event.</text> </subsection><subsection id="IDc536e34991ff430baad2d738ce574c88"><enum>(h)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section such sums as are necessary.</text> </subsection></section><section id="iddadc6f3679d64fa6bca4807af599411c"><enum>3502.</enum><header>Community facilities loans, loan guarantees, and grants</header> <subsection id="id67b5e5c29201483a95fb507320841c58"><enum>(a)</enum><header>In general</header><text>The Secretary may make grants and loans and issue loan guarantees (including a guarantee of a loan financed by the net proceeds of a bond described in section 142(a) of the Internal Revenue Code of 1986) to eligible entities described in subsection (b) for projects in rural areas that primarily serve rural residents to provide for—</text> <paragraph id="id1866e22316144c74bb214abcac8f600b"><enum>(1)</enum><text>essential community facilities, including—</text> <subparagraph id="idaa82e324d4b74d3c96414b2c02c8b092"><enum>(A)</enum><text>necessary equipment;</text> </subparagraph><subparagraph id="id314d2a07d32e48b7a286259535c242bc"><enum>(B)</enum><text>recreational developments; and</text> </subparagraph></paragraph><paragraph id="idc76ed53b657e425fba8663d55cfa8d6d"><enum>(2)</enum><text>financial assistance and other assistance in the planning of projects for purposes described in this section.</text> </paragraph></subsection><subsection id="idb6880a1a48fa42c092dfe70037b50e5c"><enum>(b)</enum><header>Eligible entities</header><text>Entities eligible for assistance described in subsection (a) are—</text> <paragraph id="id37eedfefa4a549b6abcc87f09ec3ee92"><enum>(1)</enum><text>associations (including corporations not operated for profit);</text> </paragraph><paragraph id="idb56546f5295e46fbacc540905ccc8f87"><enum>(2)</enum><text>Indian tribes (including groups of individuals described in paragraph (4) of section 815 of the Native American Programs Act of 1974 (42 U.S.C. 2992c)); and</text> </paragraph><paragraph id="id0dbe1722299d4d21982082cc798da540"><enum>(3)</enum><text>public and quasi-public agencies.</text> </paragraph></subsection><subsection id="id25505a6e0d2a46df99627237a6ca6fe9"><enum>(c)</enum><header>Loan and loan guarantee requirements</header> <paragraph id="id2e90784c26544d40a67a71ec773a52bc"><enum>(1)</enum><header>In general</header><text>In connection with loans made or guaranteed under this section, the Secretary shall require the applicant—</text> <subparagraph id="idb0660a99b0d0446db173125787eefed8"><enum>(A)</enum><text>to certify in writing, and the Secretary shall determine, that the applicant is unable to obtain sufficient credit elsewhere to finance the actual needs of the applicant; and</text> </subparagraph><subparagraph id="id24d934e13e234a59b993a4762de70192"><enum>(B)</enum><text>to furnish an appropriate written financial statement.</text> </subparagraph></paragraph><paragraph id="id01a7aae926fc4e57bb3d1768a42ce694"><enum>(2)</enum><header>Debt restructuring and loan servicing for community facility loans</header><text>The Secretary shall establish and implement a program that is similar to the program established under section 3411, except that the debt restructuring and loan servicing procedures shall apply to delinquent community facility program loans to a hospital or health care facility under subsection (a).</text> </paragraph></subsection><subsection id="id08e1cee5b2d34e62902313605e628df4"><enum>(d)</enum><header>Grant amounts</header> <paragraph id="id44ece60f40f841baa2a2bd1e7398f0ac"><enum>(1)</enum><header>Maximum</header><text>Except as otherwise provided in this subsection, the amount of any grant made under this section shall not exceed 75 percent of the development cost of the project for which the grant is provided.</text> </paragraph><paragraph id="id434f92d82fb24a97ade02957034ca4d5"><enum>(2)</enum><header>Grant rate</header><text>The Secretary shall establish the grant rate for each project in conformity with regulations issued by the Secretary that shall provide for a graduated scale of grant rates that establish higher rates for projects in communities that have—</text> <subparagraph id="iddca350081c134eb6a80be5b22f28f484"><enum>(A)</enum><text>low community population;</text> </subparagraph><subparagraph id="id1ce16476f3bf49edae437a6782bfdb49"><enum>(B)</enum><text>high rates of outmigration; and</text> </subparagraph><subparagraph id="id9c2edb2cf2cf448bbf30b3c25418667a"><enum>(C)</enum><text>low income levels.</text> </subparagraph></paragraph><paragraph id="id76a6ad3d2c484a7794dc0223bec45f56"><enum>(3)</enum><header>Local share requirements</header><text>Grants made under this section may be used to pay the local share requirements of another Federal grant-in-aid program to the extent permitted under the law providing for the grant-in-aid program.</text> </paragraph></subsection><subsection id="id55c8f9599dc74dc09a8704850fbf2bc4"><enum>(e)</enum><header>Priority</header><text>In making grants and loans, and guaranteeing loans under this section, the Secretary shall give priority consideration to projects that serve rural communities that—</text> <paragraph id="id75b0d842daf6409c94b6cf2731cc3af4"><enum>(1)</enum><text>have a population of less than 20,000 permanent residents;</text> </paragraph><paragraph id="id193d4dbf6e224484bd02f664ece538c2"><enum>(2)</enum><text>are experiencing outmigration;</text> </paragraph><paragraph id="idd59fd15190514dbcb52fb16f3eff3bad"><enum>(3)</enum><text>have a high percentage of low-income residents; or</text> </paragraph><paragraph id="id0134475c273e44cb9b216ea58b34a4b1"><enum>(4)</enum><text>are isolated from other significant population centers.</text> </paragraph></subsection><subsection id="id976bd155b24f47faa076f388ac2c6d7e"><enum>(f)</enum><header>Tribal colleges and universities</header> <paragraph id="id80e8394e9ee947eb9ee8789527ab5c9b"><enum>(1)</enum><header>In general</header><text>The Secretary may make grants to an entity that is a Tribal College or University (as defined in section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 1059c(b))) to provide the Federal share of the cost of developing specific Tribal College or University essential community facilities in rural areas.</text> </paragraph><paragraph id="id7f014bde57eb4068ae2feb2745a9738a"><enum>(2)</enum><header>Federal share</header><text>The Secretary shall establish the maximum percentage of the cost of the project that may be covered by a grant under this subsection, except that the Secretary may not require non-Federal financial support in an amount that is greater than 5 percent of the total cost of the project.</text> </paragraph><paragraph commented="no" id="ida58c3f34f00044ada150aa7891125544"><enum>(3)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this subsection $10,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph></subsection><subsection id="idfab5b8d338364e05a714bb338eafe49b"><enum>(g)</enum><header>Technical assistance for community facilities projects</header> <paragraph id="id057e93c36dbe4318aaed0104e8b9215b"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), the Secretary may use funds made available for community facilities programs authorized under this section to provide technical assistance to applicants and participants for community facilities programs.</text> </paragraph><paragraph id="id09c64c7735ed482faa61600834699694"><enum>(2)</enum><header>Funding</header><text>The Secretary may use not more than 3 percent of the amount of funds made available to participants for a fiscal year for a community facilities program to provide technical assistance described in paragraph (1).</text> </paragraph></subsection><subsection commented="no" id="id1480da05308d4045bc0fa2678148c4d1"><enum>(h)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section such sums as are necessary.</text> </subsection></section><section id="id2509F09CC7E54AD1A5C88592290C2ECE"><enum>3503.</enum><header>Health care services</header> <subsection commented="no" display-inline="no-display-inline" id="ID02B5304B33C44077AD67EC22B55E6ECA"><enum>(a)</enum><header>Purpose</header><text>The purpose of this section is to address the continued unmet health needs in the Delta region through cooperation among health care professionals, institutions of higher education, research institutions, and other individuals and entities in the region.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="ID5A91ACE70C5A4A0890232BC995251EE0"><enum>(b)</enum><header>Definition of eligible entity</header><text>In this section, the term <term>eligible entity</term> means a consortium of regional institutions of higher education, academic health and research institutes, and economic development entities located in the Delta region that have experience in addressing the health care issues in the region.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="ID6CD16608F8B643CBA4B1B4F763D31249"><enum>(c)</enum><header>Grants</header><text>To carry out the purpose described in subsection (a), the Secretary may award a grant to an eligible entity for—</text> <paragraph id="IDF622ED3C5D014B4AAEDACF46E0D592CD"><enum>(1)</enum><text>the development of—</text> <subparagraph id="IDFA56702CB2FB435E9C6B036700C1E31B"><enum>(A)</enum><text>health care services;</text> </subparagraph><subparagraph id="ID43AB4ADFF750400F8B22205E704A9CAD"><enum>(B)</enum><text>health education programs; and</text> </subparagraph><subparagraph id="ID63B9988C71A848158A6F4B86CFDB9BC0"><enum>(C)</enum><text>health care job training programs; and</text> </subparagraph></paragraph><paragraph id="IDC64D8B306A5E47B4AFF158C4C439DD62"><enum>(2)</enum><text>the development and expansion of public health-related facilities in the Delta region to address longstanding and unmet health needs of the region.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID3716031306864684A0B4C3A221141DEC"><enum>(d)</enum><header>Use</header><text>As a condition of the receipt of the grant, the eligible entity shall use the grant to fund projects and activities described in subsection (c), based on input solicited from local governments, public health care providers, and other entities in the Delta region.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="ID4961954A73504141967A23C4F9CF4C21"><enum>(e)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to the Secretary to carry out this section $3,000,000 for each of fiscal years 2013 through 2017.</text> </subsection></section></chapter><chapter id="ID42C4660A829540C59FCDB98E164EA365"><enum>2</enum><header>Rural business and cooperative development</header> <section id="ID5F4F4A4F111047899C29BE3E5C7D9FD9"><enum>3601.</enum><header>Business programs</header> <subsection id="id668069A752D742778762BA63F9732177"><enum>(a)</enum><header>Rural business development grants</header> <paragraph id="idAA84D35B6E85410B925A79FCDB7BFBDE"><enum>(1)</enum><header>In general</header><text>The Secretary may make grants under this subsection to eligible entities described in paragraph (2) in rural areas that primarily serve rural areas for purposes described in paragraph (3).</text> </paragraph><paragraph id="id5262b091120c417d84c96606a49e9d41"><enum>(2)</enum><header>Eligible entities</header><text>The Secretary may make grants under this subsection to—</text> <subparagraph id="ida7a4fbf0592e4f46b4091f1bebf0c302"><enum>(A)</enum><text>governmental entities;</text> </subparagraph><subparagraph id="idc425869248d24b9b9923aa08cabcbe12"><enum>(B)</enum><text>Indian tribes; and</text> </subparagraph><subparagraph id="ide3c5ca72e0384ffcb7bbff9b32952cd8"><enum>(C)</enum><text>nonprofit entities.</text> </subparagraph></paragraph><paragraph id="id00fe2a1d7df04f899b8794e048374664"><enum>(3)</enum><header>Eligible purposes for grants</header><text>Eligible entities that receive grants under this subsection may use the grant funds for—</text> <subparagraph id="id3925324d3b2f48e38f78d0cdaa9814cf"><enum>(A)</enum><text>business opportunity projects that—</text> <clause id="id970227f2c08547a8bac89c5086781e97"><enum>(i)</enum><text>identify and analyze business opportunities;</text> </clause><clause id="id5385563165bf40c1a973894309e69f64"><enum>(ii)</enum><text>identify, train, and provide technical assistance to existing or prospective rural entrepreneurs and managers;</text> </clause><clause id="idf3820fe133af4a8ba8956d0e4c32745d"><enum>(iii)</enum><text>assist in the establishment of new rural businesses and the maintenance of existing businesses, including through business support centers;</text> </clause><clause id="id59900d50bc784384b8ec043b2ac5940d"><enum>(iv)</enum><text>conduct regional, community, and local economic development planning and coordination, and leadership development; and</text> </clause><clause id="id212591d3086746c0b1600b6085a5ccea"><enum>(v)</enum><text>establish centers for training, technology, and trade that will provide training to rural businesses in the use of interactive communications technologies to develop international trade opportunities and markets; and</text> </clause></subparagraph><subparagraph id="id2f104c6fe3a84cb48c1cfbe8370c3ed5"><enum>(B)</enum><text>projects that support the development of business enterprises that finance or facilitate—</text> <clause id="id0a3ff9b1266f46a4951d5bd3584d63ee"><enum>(i)</enum><text>the development of small and emerging private business enterprise;</text> </clause><clause id="id9ff42260da404c4584288928daff365c"><enum>(ii)</enum><text>the establishment, expansion, and operation of rural distance learning networks;</text> </clause><clause id="id0b3fd09b8cee449594a89dd2da066bd2"><enum>(iii)</enum><text>the development of rural learning programs that provide educational instruction or job training instruction related to potential employment or job advancement to adult students; and</text> </clause><clause id="iddbae448f851b4ca4bc2575d73b43cca6"><enum>(iv)</enum><text>the provision of technical assistance and training to rural communities for the purpose of improving passenger transportation services or facilities.</text> </clause></subparagraph></paragraph><paragraph id="id57afd56f385646b4b8e76cda02eb5bb0"><enum>(4)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to the Secretary to carry out this subsection $65,000,000 for each of fiscal years 2013 through 2017, to remain available until expended.</text> </paragraph></subsection><subsection id="idf6a234f515be48ef887135bdeb01946e"><enum>(b)</enum><header>Value-added agricultural producer grants</header> <paragraph id="id280063f6cfeb477ca1e52f786d24c9eb"><enum>(1)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="idb7c50501fb574b4aad8cbfd70ef7ba41"><enum>(A)</enum><header>Mid-tier value chain</header><text>The term <term>mid-tier value chain</term> means a local and regional supply network that links independent producers with businesses and cooperatives that market value-added agricultural products in a manner that—</text> <clause id="ida11f32951ad143ac8cffe02da05abc85"><enum>(i)</enum><text>targets and strengthens the profitability and competitiveness of small- and medium-sized farms that are structured as family farms; and</text> </clause><clause id="ide21f105e3f934c22ae3ddd3f025f09e6"><enum>(ii)</enum><text>obtains agreement from an eligible agricultural producer group, farmer cooperative, or majority-controlled producer-based business venture that is engaged in the value chain on a marketing strategy.</text> </clause></subparagraph><subparagraph id="id99CB54F068354C90A32F1871FAF5918A"><enum>(B)</enum><header>Producer</header><text>The term <term>producer</term> means a farmer.</text> </subparagraph><subparagraph id="id5daa280cd70c411da91295d48bba61a0"><enum>(C)</enum><header>Value-added agricultural product</header><text>The term <term>value-added agricultural product</term> means any agricultural commodity or product—</text> <clause id="id6b6051cb28f746b8ad91b270942a1f63"><enum>(i)</enum><text>that—</text> <subclause id="id6b97cd2185924818ba3e76f8a486fa33"><enum>(I)</enum><text>has undergone a change in physical state;</text> </subclause><subclause id="idfc3f8bcd82a348eda41e9742bc2c4e4c"><enum>(II)</enum><text>was produced in a manner that enhances the value of the agricultural commodity or product, as demonstrated through a business plan that shows the enhanced value, as determined by the Secretary;</text> </subclause><subclause id="idb1b288c90ff14768b9868ecf5b649a8e"><enum>(III)</enum><text>is physically segregated in a manner that results in the enhancement of the value of the agricultural commodity or product;</text> </subclause><subclause id="id757348dc91a542c7bae713e7a58cf251"><enum>(IV)</enum><text>is a source of farm-based renewable energy, including E–85 fuel; or</text> </subclause><subclause id="id17ec7521cb174fd785bb7cd1cad186b9"><enum>(V)</enum><text>is aggregated and marketed as a locally produced agricultural food product; and</text> </subclause></clause><clause id="id0243c333cc8048dabaf632b0f79c2077"><enum>(ii)</enum><text>for which, as a result of the change in physical state or the manner in which the agricultural commodity or product was produced, marketed, or segregated—</text> <subclause id="id92c82f3cf0f04dd5acc88f32769afeef"><enum>(I)</enum><text>the customer base for the agricultural commodity or product is expanded; and</text> </subclause><subclause id="id2c903326b4134b6d8887205118bbd0bf"><enum>(II)</enum><text>a greater portion of the revenue derived from the marketing, processing, or physical segregation of the agricultural commodity or product is available to the producer of the commodity or product.</text> </subclause></clause></subparagraph></paragraph><paragraph id="idac008ee893f54adaaebaf826012a5cce"><enum>(2)</enum><header>Grants</header> <subparagraph id="id2949e474d98f428ebf627fd6cdba6638"><enum>(A)</enum><header>In general</header><text>The Secretary may make grants under this subsection to—</text> <clause id="idE2677F81CC7244E4A83B2B24FE642814"><enum>(i)</enum><text>independent producers of value-added agricultural products; and</text> </clause><clause id="idf6b9605fb0954301a959cd2e84076ff8"><enum>(ii)</enum><text>an agricultural producer group, farmer cooperative, or majority-controlled producer-based business venture, as determined by the Secretary.</text> </clause></subparagraph><subparagraph id="id7f181931a17c4e6694ba06b88a0776a6"><enum>(B)</enum><header>Grants to a producer</header><text>A grantee under subparagraph (A)(i) shall use the grant—</text> <clause id="id8faecaaa4bdb4c43bb590fcfdfa058f1"><enum>(i)</enum><text>to develop a business plan or perform a feasibility study to establish a viable marketing opportunity (including through mid-tier value chains) for value-added agricultural products; or</text> </clause><clause id="ide399b09f018f42e8a36b65eb02272cb3"><enum>(ii)</enum><text>to provide capital to establish alliances or business ventures that allow the producer to better compete in domestic or international markets.</text> </clause></subparagraph><subparagraph id="ide29d707557984b0bb87ba47b56234d97"><enum>(C)</enum><header>Grants to an agricultural producer group, cooperative or producer-based business venture</header><text>A grantee under subparagraph (A)(ii) shall use the grant—</text> <clause id="id3dd2bd2b65204fd09bf8e0a3b4701d08"><enum>(i)</enum><text>to develop a business plan for viable marketing opportunities in emerging markets for a value-added agricultural product; or</text> </clause><clause id="idccfa278efd9448b28499a9cca68ed13d"><enum>(ii)</enum><text>to develop strategies that are intended to create marketing opportunities in emerging markets for the value-added agricultural product.</text> </clause></subparagraph><subparagraph id="idDDBEC1D5E8884EBB8CE5512757C7E159"><enum>(D)</enum><header>Award selection</header> <clause id="idAB8126C944964C83A69BBA85DB606434"><enum>(i)</enum><header>Priority</header><text>In awarding grants under this subsection, the Secretary shall give priority to projects—</text> <subclause id="id88A6C61C19874283BDBAF41200517307"><enum>(I)</enum><text>that contribute to increasing opportunities for operators of small- and medium-sized farms that are structured as family farms; or</text> </subclause><subclause id="id5b74088a819d4be4af504ee3166ff458"><enum>(II)</enum><text>at least <fraction>1/4</fraction> of the recipients of which are beginning farmers or socially disadvantaged farmers.</text> </subclause></clause><clause id="idedaa63465e06417295c0a3a57e859077"><enum>(ii)</enum><header>Ranking</header><text>In evaluating and ranking proposals under this subsection, the Secretary shall provide substantial weight to the priorities described in clause (i).</text> </clause></subparagraph><subparagraph id="id8a538db11b3e453ea75a9cbad52b84e2"><enum>(E)</enum><header>Amount of grant</header> <clause id="idb2cadc873b2e479e8d337d6777864a07"><enum>(i)</enum><header>In general</header><text>The total amount provided to a grant recipient under this subsection shall not exceed $500,000.</text> </clause><clause id="id399d2101846640b291e5dcdfd8de1925"><enum>(ii)</enum><header>Majority-controlled, producer-based business ventures</header><text>The total amount of all grants provided to majority-controlled, producer-based business ventures under this subsection for a fiscal year shall not exceed 10 percent of the amount of funds used to make all grants for the fiscal year under this subsection.</text> </clause></subparagraph><subparagraph id="id7657521a95a14a4992520cd724657200"><enum>(F)</enum><header>Term</header><text>The term of a grant under this paragraph shall not exceed 3 years.</text> </subparagraph><subparagraph id="id2026059e09a34eb4bd499fb57fa4b6c3"><enum>(G)</enum><header>Simplified application</header><text>The Secretary shall offer a simplified application form and process for project proposals requesting less than $50,000 under this subsection.</text> </subparagraph></paragraph><paragraph id="ida4b148eba2e04ed29fe7ff355b8158fb"><enum>(3)</enum><header>Funding</header> <subparagraph id="id24818229778C4BE581122635712A2B29"><enum>(A)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this subsection $40,000,000 for each of fiscal years 2013 through 2017.</text> </subparagraph><subparagraph id="id4135a61f169c494f8ebd5614e8b6e690"><enum>(B)</enum><header>Reservation of funds for projects to benefit beginning farmers, socially disadvantaged farmers, and mid-tier value chains</header> <clause id="id46b57b387eaf4626a28baa30026f683e"><enum>(i)</enum><header>In general</header><text>The Secretary shall reserve 10 percent of the amounts made available for each fiscal year under this subsection to fund projects that benefit beginning farmers or socially disadvantaged farmers.</text> </clause><clause id="ida9864496ca694265993500bd1615dc99"><enum>(ii)</enum><header>Mid-tier value chains</header><text>The Secretary shall reserve 10 percent of the amounts made available for each fiscal year under this subsection to fund applications of eligible entities described in paragraph (2) that propose to develop mid-tier value chains.</text> </clause><clause id="idc27410ee863246eca952bf1c691baf10"><enum>(iii)</enum><header>Unobligated amounts</header><text>Any amounts in the reserves for a fiscal year established under clauses (i) and (ii) that are not obligated by June 30 of the fiscal year shall be available to the Secretary to make grants under this subsection to eligible entities in any State, as determined by the Secretary.</text> </clause></subparagraph><subparagraph id="idD0277DAE74B0464EA4C3D10EB7E9F73E"><enum>(C)</enum><header>Mandatory funding</header><text>Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this subsection $12,500,000 for each of fiscal years 2014 through 2017, to remain available until expended.</text> </subparagraph></paragraph></subsection><subsection id="id49060147bb3144b9ab0c6e88ae2dfcf5"><enum>(c)</enum><header>Rural cooperative development grants</header> <paragraph id="id69e12dc4af994f00b517b9b8976e30a3"><enum>(1)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="id13608f8502ef46b99a8dc03273c9dcdb"><enum>(A)</enum><header>Nonprofit institution</header><text>The term <term>nonprofit institution</term> means any organization or institution, including an accredited institution of higher education, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.</text> </subparagraph><subparagraph id="id10dd5ed89c394374a402c8b5113df696"><enum>(B)</enum><header>United States</header><text>The term <term>United States</term> means—</text> <clause id="id18071C33392445BF9655B8DFA561B7D0"><enum>(i)</enum><text>the several States; and</text> </clause><clause id="id1C5B65AAEDA246B08DDB8541C8A6BD23"><enum>(ii)</enum><text>the District of Columbia.</text> </clause></subparagraph></paragraph><paragraph id="id80789a84575a4381924b9108150a361e"><enum>(2)</enum><header>Grants</header><text>The Secretary shall make grants under this subsection to nonprofit institutions for the purpose of enabling the nonprofit institutions to establish and operate centers for rural cooperative development.</text> </paragraph><paragraph id="id25b58f25ef724663b72802af8192e406"><enum>(3)</enum><header>Goals</header><text>The goals of a center funded under this subsection shall be to facilitate the creation of jobs in rural areas through the development of new rural cooperatives, value -added processing, and rural businesses.</text> </paragraph><paragraph id="id9d1135217e0f43458efcb557d3dc099e"><enum>(4)</enum><header>Application</header> <subparagraph id="idF7955779D1894893A611E625C63D465D"><enum>(A)</enum><header>In general</header><text>Any nonprofit institution seeking a grant under paragraph (2) shall submit to the Secretary an application containing a plan for the establishment and operation by the institution of 1 or more centers for cooperative development.</text> </subparagraph><subparagraph id="idA7D3A5D97CC34729A9FA84B5531FA084"><enum>(B)</enum><header>Requirements</header><text>The Secretary may approve an application if the plan contains the following:</text> <clause id="idd25163cd7c8741709dacee4394374d5c"><enum>(i)</enum><text>A provision that substantiates that the center will effectively serve rural areas in the United States.</text> </clause><clause id="id37870accff4d479b81b57dd852498038"><enum>(ii)</enum><text>A provision that the primary objective of the center will be to improve the economic condition of rural areas through cooperative development.</text> </clause><clause id="id0ae979501abd4b6fa95d0984cc02fb91"><enum>(iii)</enum><text>A description of the activities that the center will carry out to accomplish the objective, which may include programs—</text> <subclause id="id4a21e3fbc8cf454299fa471d46303277"><enum>(I)</enum><text>for applied research and feasibility studies that may be useful to individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center;</text> </subclause><subclause id="id645477f3cc4a4578aa63913c8e0adf69"><enum>(II)</enum><text>for the collection, interpretation, and dissemination of information that may be useful to individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center;</text> </subclause><subclause id="idb7d683830b254bc795152c249c0c45c1"><enum>(III)</enum><text>providing training and instruction for individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center;</text> </subclause><subclause id="id4e1bcec6d3704fcea7190b8d3a1c3ee3"><enum>(IV)</enum><text>providing loans and grants to individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center;</text> </subclause><subclause id="id0d5ac718bfa24400b661b34eb3afcbb7"><enum>(V)</enum><text>providing technical assistance, research services, and advisory services to individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center; and</text> </subclause><subclause id="idd52e5e6ff75e40f9b49d21b0c80d63eb"><enum>(VI)</enum><text>providing for the coordination of services and sharing of information by the center.</text> </subclause></clause><clause id="idce958a613b464d45a9acb8c773523e36"><enum>(iv)</enum><text>A description of the contributions that the activities are likely to make to the improvement of the economic conditions of the rural areas for which the center will provide services.</text> </clause><clause id="id777ee2f3068842a9b215e1438fe73929"><enum>(v)</enum><text>Provisions that the center, in carrying out the activities, will seek, if appropriate, the advice, participation, expertise, and assistance of representatives of business, industry, educational institutions, the Federal Government, and State and local governments.</text> </clause><clause id="id666a79f72bf74e32851921508db1c26b"><enum>(vi)</enum><text>Provisions that the center will take all practicable steps to develop continuing sources of financial support for the center, particularly from sources in the private sector.</text> </clause><clause id="ide1167497ff5041daa7e04916d18e2aba"><enum>(vii)</enum><text>Provisions for—</text> <subclause id="id1da24430b3d845d4b50ca070aeb6ef2a"><enum>(I)</enum><text>monitoring and evaluating the activities by the nonprofit institution operating the center; and</text> </subclause><subclause id="id0361447c0e5843d3b56c3dc4ad0e8608"><enum>(II)</enum><text>accounting for funds received by the institution under this section.</text> </subclause></clause></subparagraph></paragraph><paragraph id="id4df93603e54945c3a73c7f0005fb90b2"><enum>(5)</enum><header>Awarding grants</header> <subparagraph id="idCD41F96BD3B84C728B176417CAEC8DD1"><enum>(A)</enum><header>In general</header><text>Grants made under paragraph (2) shall be made on a competitive basis.</text> </subparagraph><subparagraph id="idFC4691F0FCC44D2E803F68EB72538B48"><enum>(B)</enum><header>Preference</header><text>In making grants under paragraph (2), the Secretary shall give preference to grant applications providing for the establishment of centers for rural cooperative development that—</text> <clause id="id1f868c0c6f5b4c0284f0f35ba00fcd62"><enum>(i)</enum><text>demonstrate a proven track record in carrying out activities to promote and assist the development of cooperatively and mutually owned businesses;</text> </clause><clause id="ida1c92751e63f481f9c3e23bb4d57f526"><enum>(ii)</enum><text>demonstrate previous expertise in providing technical assistance in rural areas to promote and assist the development of cooperatively and mutually owned businesses;</text> </clause><clause id="id7c732eb89cea48319249a87b3dffc191"><enum>(iii)</enum><text>demonstrate the ability to assist in the retention of businesses, facilitate the establishment of cooperatives and new cooperative approaches, and generate employment opportunities that will improve the economic conditions of rural areas;</text> </clause><clause id="id24518450712241078a851befe51ead0c"><enum>(iv)</enum><text>commit to providing technical assistance and other services to underserved and economically distressed areas in rural areas of the United States;</text> </clause><clause id="ida5f0a11cfb244074880b30e7d23f0e45"><enum>(v)</enum><text>demonstrate a commitment to—</text> <subclause id="idb5ea6dd432e44f8dbe15d75ddff23da7"><enum>(I)</enum><text>networking with and sharing the results of the efforts of the center with other cooperative development centers and other organizations involved in rural economic development efforts; and</text> </subclause><subclause id="id9239c22fdb774143ac50cbae746d86a7"><enum>(II)</enum><text>developing multiorganization and multistate approaches to addressing the economic development and cooperative needs of rural areas; and</text> </subclause></clause><clause id="id77fd499f8f364fa4ac8b8115468bd39f"><enum>(vi)</enum><text>commit to providing a 25 percent matching contribution with private funds and in-kind contributions, except that the Secretary shall not require non-Federal financial support in an amount that is greater than 5 percent in the case of a 1994 institution (as defined in section 532 of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103–382)).</text> </clause></subparagraph></paragraph><paragraph id="id0477c936218b44688df6fbb77327cdd1"><enum>(6)</enum><header>Grant period</header> <subparagraph id="id42272e4973304bccbd21080185d890f0"><enum>(A)</enum><header>In general</header><text>A grant awarded to a center that has received no prior funding under this subsection shall be made for a period of 1 year.</text> </subparagraph><subparagraph id="idef118b4f00504ca4b6a56d7ef54efea9"><enum>(B)</enum><header>Multiyear grants</header><text>If the Secretary determines it to be in the best interest of the program, the Secretary shall award grants for a period of more than 1 year, but not more than 3 years, to a center that has successfully met the requirements of paragraph (5)(B), as determined by the Secretary.</text> </subparagraph></paragraph><paragraph id="idcec6e7f6bc22412292759c977890e40e"><enum>(7)</enum><header>Authority to extend grant period</header><text>The Secretary may extend for 1 additional 12-month period the period during which a grantee may use a grant made under this subsection.</text> </paragraph><paragraph id="id7051684a09d34a9a8089c0fa203d9ac7"><enum>(8)</enum><header>Technical assistance to prevent excessive unemployment or underemployment</header> <subparagraph id="idB826DA537EC3427BB92EA65E05EC00B5"><enum>(A)</enum><header>In general</header><text>In carrying out this subsection, the Secretary may provide technical assistance to alleviate or prevent conditions of excessive unemployment, underemployment, outmigration, or low employment growth in economically distressed rural areas that the Secretary determines have a substantial need for the assistance.</text> </subparagraph><subparagraph id="idC2284C0F751045EABED94780C7A9C20B"><enum>(B)</enum><header>Inclusions</header><text>The assistance may include planning and feasibility studies, management and operational assistance, and studies evaluating the need for the development potential of projects that increase employment and improve economic growth in the areas.</text> </subparagraph></paragraph><paragraph id="id399eec49beb54f2092fba6ddfbccde34"><enum>(9)</enum><header>Grants to defray administrative costs</header> <subparagraph id="id263B4B8F7BCE47388DA55E4C9333EB39"><enum>(A)</enum><header>In general</header><text>The Secretary may make grants to defray not to exceed 75 percent of the costs incurred by organizations and public bodies to carry out projects for which grants or loans are made under this subsection.</text> </subparagraph><subparagraph id="id1D5EE54600F04F85BC1F25A05C7486F0"><enum>(B)</enum><header>Cost-sharing</header><text>For purposes of determining the non-Federal share of the costs, the Secretary shall include contributions in cash and in kind, fairly evaluated, including premises, equipment, and services.</text> </subparagraph></paragraph><paragraph id="id5f6d53895d7f4c8b80a844b7c6d9a0fd"><enum>(10)</enum><header>Cooperative research program</header><text>The Secretary shall offer to enter into a cooperative research agreement with 1 or more qualified academic institutions in each fiscal year to conduct research on the effects of all types of cooperatives on the national economy.</text> </paragraph><paragraph id="id4ebab2c8d76e4c62aa05ef559d1ecf84"><enum>(11)</enum><header>Addressing needs of minority communities</header> <subparagraph id="idf6540643831b49a6905f03f837180587"><enum>(A)</enum><header>In general</header><text>If the total amount appropriated under paragraph (13) for a fiscal year exceeds $7,500,000, the Secretary shall reserve an amount equal to 20 percent of the total amount appropriated for grants for cooperative development centers, individual cooperatives, or groups of cooperatives—</text> <clause id="idc37f3eca8d764dd1a090859b9142b045"><enum>(i)</enum><text>that serve socially disadvantaged groups; and</text> </clause><clause id="id3a2a4f7e5232469ba0793528cf05897b"><enum>(ii)</enum><text>a majority of the boards of directors or governing boards of which are comprised of individuals who are members of socially disadvantaged groups.</text> </clause></subparagraph><subparagraph id="id1f136a1c2e99498493d2c3b29ffafa69"><enum>(B)</enum><header>Insufficient applications</header><text>To the extent there are insufficient applications to carry out subparagraph (A), the Secretary shall use the funds as otherwise authorized by this subsection.</text> </subparagraph></paragraph><paragraph commented="no" id="id05CEB3A623184A1B9E5E41D9F924163B"><enum>(12)</enum><header>Interagency working group</header><text>Not later than 90 days after the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>, the Secretary shall coordinate and chair an interagency working group to foster cooperative development and ensure coordination with Federal agencies and national and local cooperative organizations that have cooperative programs and interests.</text> </paragraph><paragraph id="id7ec81fcd529d42849d5687abd16b3bb5"><enum>(13)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this subsection $50,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph></subsection><subsection id="id76ce0d614e104aeebc7fe277a064955e"><enum>(d)</enum><header>Appropriate technology transfer for rural areas program</header> <paragraph id="id74e014bc9937414097210b2796b870a7"><enum>(1)</enum><header>Definition of national nonprofit agricultural assistance institution</header><text>In this subsection, the term <term>national nonprofit agricultural assistance institution</term> means an organization that—</text> <subparagraph id="id852dc972fc96497395e469f1c46fbba9"><enum>(A)</enum><text>is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under 501(a) of that Code;</text> </subparagraph><subparagraph id="ida62d7736be2c47bab689c1c8107bb31f"><enum>(B)</enum><text>has staff and offices in multiple regions of the United States;</text> </subparagraph><subparagraph id="ida317421ee16443d5892b705ad5007290"><enum>(C)</enum><text>has experience and expertise in operating national agricultural technical assistance programs;</text> </subparagraph><subparagraph id="ida56e0301791d498dbde9dad1611f590f"><enum>(D)</enum><text>expands markets for the agricultural commodities produced by producers through the use of practices that enhance the environment, natural resource base, and quality of life; and</text> </subparagraph><subparagraph id="ide0a185f1be29497e860761a20e96aef4"><enum>(E)</enum><text>improves the economic viability of agricultural operations.</text> </subparagraph></paragraph><paragraph id="idec616296efe34d21a2c9617fb630f6bf"><enum>(2)</enum><header>Establishment</header><text>The Secretary shall establish a national appropriate technology transfer for rural areas program to assist agricultural producers that are seeking information—</text> <subparagraph id="id41903572831c41d2832572027a7e7f8c"><enum>(A)</enum><text>to reduce input costs;</text> </subparagraph><subparagraph id="id8e9a623261e84e2dbf9bcfcba17af158"><enum>(B)</enum><text>to conserve energy resources;</text> </subparagraph><subparagraph id="id52dbe769b5bb4d3a91903b2a8805c69b"><enum>(C)</enum><text>to diversify operations through new energy crops and energy generation facilities; and</text> </subparagraph><subparagraph id="id1e50058578da42c7af1cacf23b5fd3db"><enum>(D)</enum><text>to expand markets for agricultural commodities produced by the producers by using practices that enhance the environment, natural resource base, and quality of life.</text> </subparagraph></paragraph><paragraph id="idc47946e9f06d45dd873ecb51d434a053"><enum>(3)</enum><header>Implementation</header> <subparagraph id="id75d981f3dc644db49473f1ebcf6fc4d4"><enum>(A)</enum><header>In general</header><text>The Secretary shall carry out the program under this subsection by making a grant to, or offering to enter into a cooperative agreement with, a national nonprofit agricultural assistance institution.</text> </subparagraph><subparagraph id="id439065d77b684b55bb682da3f281fb14"><enum>(B)</enum><header>Grant amount</header><text>A grant made, or cooperative agreement entered into, under subparagraph (A) shall provide 100 percent of the cost of providing information described in paragraph (2).</text> </subparagraph></paragraph><paragraph id="idf61e9f421cb4485b9e619c5fd67d52e1"><enum>(4)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this subsection $5,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph></subsection><subsection id="ID2e7feb64c3064396b3c167ba8cd79949"><enum>(e)</enum><header>Business and industry direct and guaranteed loans</header> <paragraph id="IDcdd7ec0b890e4f3fbdf2b71443ab615b"><enum>(1)</enum><header>Definition of business and industry loan</header><text>In this section, the term <term>business and industry loan</term> means a direct loan that is made, or a loan that is guaranteed, by the Secretary under this subsection.</text> </paragraph><paragraph id="ID3b305f94efa74218827c6fcc366e6aee"><enum>(2)</enum><header>Loan purposes</header><text>The Secretary may make business and industry loans to public, private, or cooperative organizations organized for profit or nonprofit, private investment funds that invest primarily in cooperative organizations, or to individuals—</text> <subparagraph id="IDf07085a7bf9c4e6686f1d6012e768ba7"><enum>(A)</enum><text>to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities, including pollution abatement and control;</text> </subparagraph><subparagraph id="ID588a9dac14464ad99d87d210ea9f81e7"><enum>(B)</enum><text>to conserve, develop, and use water for aquaculture purposes in rural areas; and</text> </subparagraph><subparagraph id="IDeed3315aed6a4935b84e80800ce6fed6"><enum>(C)</enum><text>to reduce the reliance on nonrenewable energy resources by encouraging the development and construction of renewable energy systems (including solar energy systems, wind energy systems, and anaerobic digestors for the purpose of energy generation), including the modification of existing systems, in rural areas.</text> </subparagraph></paragraph><paragraph id="ID2551af3579624dc9a6b4ce7f6a1457a9"><enum>(3)</enum><header>Loan guarantees for certain loans</header><text>The Secretary may guarantee loans made under this subsection to finance the issuance of bonds for the projects described in paragraph (2).</text> </paragraph><paragraph id="IDf198b312abdf442085c0445f8af044d2"><enum>(4)</enum><header>Maximum amount of principal</header> <subparagraph id="ID1e783e56ff4044068f65fbfe2d00580c"><enum>(A)</enum><header>In general</header><text>Except as otherwise provided in this paragraph, no loan may be made or guaranteed under this subsection that exceeds $25,000,000 in principal amount.</text> </subparagraph><subparagraph id="ID174a38406d904a9d8f324b8bd7243bb1"><enum>(B)</enum><header>Limitations on loan guarantees for cooperative organizations</header> <clause id="IDdfbf9fa6b12d47828ba2d98a77f28965"><enum>(i)</enum><header>Principal amount</header><text>Subject to clause (ii), the principal amount of a business and industry loan made to a cooperative organization and guaranteed under this subsection shall not exceed $40,000,000.</text> </clause><clause id="ID89eaa4932ec343c285278aae3447f73d"><enum>(ii)</enum><header>Use</header><text>To be eligible for a guarantee under this subsection for a business and industry loan made to a cooperative organization, the principal amount of the loan in excess of $25,000,000 shall be used to carry out a project that is in a rural area and—</text> <subclause id="ID3f1463f9fc8247e8b1fc8c0a82fdce01"><enum>(I)</enum><text>provides for the value-added processing of agricultural commodities; or</text> </subclause><subclause id="ID048895395d0048b1867448ff141a3d8a"><enum>(II)</enum><text>significantly benefits 1 or more entities eligible for assistance for the purposes described in paragraph (2), as determined by the Secretary.</text> </subclause></clause><clause id="ID92f05a1242f14f949cdafb6f3b23ccef"><enum>(iii)</enum><header>Applications</header><text>If a cooperative organization submits an application for a guarantee under this paragraph, the Secretary shall make the determination whether to approve the application, and the Secretary may not delegate this authority.</text> </clause><clause id="ID2d2b58e2f05c44cdb02ad50eedb3666e"><enum>(iv)</enum><header>Maximum amount</header><text>The total amount of business and industry loans made to cooperative organizations and guaranteed for a fiscal year under this subsection with principal amounts that are in excess of $25,000,000 may not exceed 10 percent of the total amount of business and industry loans guaranteed for the fiscal year under this subsection.</text> </clause></subparagraph></paragraph><paragraph id="IDcdd196a0e2f04d45936f4bd90aca12f8"><enum>(5)</enum><header>Fees</header><text>The Secretary may assess a 1-time fee and an annual renewal fee for any guaranteed business and industry loan in an amount that does not exceed 3 percent of the guaranteed principal portion of the loan.</text> </paragraph><paragraph id="IDe44f754f47084f36a9fe9ca1dcafc11b"><enum>(6)</enum><header>Intangible assets</header><text>In determining whether a cooperative organization is eligible for a guaranteed business and industry loan, the Secretary may consider the market value of a properly appraised brand name, patent, or trademark of the cooperative.</text> </paragraph><paragraph id="ID47c36bb425ae44328a458ff5f5374fb2"><enum>(7)</enum><header>Loan appraisals</header><text>The Secretary may require that any appraisal made in connection with a business and industry loan be conducted by a specialized appraiser that uses standards that are comparable to standards used for similar purposes in the private sector, as determined by the Secretary.</text> </paragraph><paragraph id="ID67140bf1319140388961f7f0803153ae"><enum>(8)</enum><header>Loan guarantees for the purchase of cooperative stock</header> <subparagraph id="ID8c65352b56604866b4707c0851cf2705"><enum>(A)</enum><header>In general</header><text>The Secretary may guarantee a business and industry loan to individual farmers to purchase capital stock of a farmer cooperative established for the purpose of processing an agricultural commodity.</text> </subparagraph><subparagraph id="ID7b423a32f870474d9c8d7ce8f408ede0"><enum>(B)</enum><header>Processing contracts during initial period</header><text>A cooperative described in subparagraph (A) for which a farmer receives a guarantee to purchase stock under that subparagraph may contract for services to process agricultural commodities or otherwise process value added for the period beginning on the date of the startup of the cooperative in order to provide adequate time for the planning and construction of the processing facility of the cooperative.</text> </subparagraph><subparagraph id="ID4a2e8a8ec1b54087b9fa3600fdf1a8e7"><enum>(C)</enum><header>Financial information</header><text>Financial information required by the Secretary from a farmer as a condition of making a business and industry loan guarantee under this paragraph shall be provided in the manner generally required by commercial agricultural lenders in the applicable area.</text> </subparagraph></paragraph><paragraph id="IDf024b9733ab14218bd08e95ce0161a65"><enum>(9)</enum><header>Loans to cooperatives</header> <subparagraph id="IDda507b654b2e44cbb3f9457ea8da5acc"><enum>(A)</enum><header>Eligibility</header> <clause id="ID30d378d89b4b46dc86b9002811a63e1c"><enum>(i)</enum><header>In general</header><text>The Secretary may make or guarantee a business and industry loan to a cooperative organization that is headquartered in a metropolitan area if the loan is—</text> <subclause id="IDfa5405fc61c84000be6416e95b2de4e8"><enum>(I)</enum><text>used for a project or venture described in paragraph (2) that is located in a rural area; or</text> </subclause><subclause id="ID5875672147fe4d718ac5fbb7f09ae12c"><enum>(II)</enum><text>a loan guarantee that meets the requirements of paragraph (10).</text> </subclause></clause><clause id="ID492ce97dd70b45f6b1d0607bc906c381"><enum>(ii)</enum><header>Equity</header><text>The Secretary may guarantee a loan made for the purchase of preferred stock or similar equity issued by a cooperative organization or a fund that invests primarily in cooperative organizations, if the guarantee significantly benefits 1 or more entities eligible for assistance for the purposes described in paragraph (2)(A), as determined by the Secretary.</text> </clause></subparagraph><subparagraph id="IDf09adf5afe9b4462882cee6eb01864ab"><enum>(B)</enum><header>Refinancing</header><text>A cooperative organization that is eligible for a business and industry loan shall be eligible to refinance an existing business and industry loan with a lender if—</text> <clause id="ID6e1bc323620649f8a2f4b010de4d4291"><enum>(i)</enum><text>the cooperative organization—</text> <subclause id="ID59dab447f4a643efa8be5dc1e1d4049b"><enum>(I)</enum><text>is current and performing with respect to the existing loan; and</text> </subclause><subclause id="IDcc6296539c8c4e20a62ac8fa1aaa799f"><enum>(II)</enum><item commented="no" display-inline="yes-display-inline" id="idD04174BAFF094F679A9B776D3C835073"><enum>(aa)</enum><text>is not, and has not been, in payment default, with respect to the existing loan; or</text> </item><item id="id8E33B7CA609D4CE79718B99DFFA87A56" indent="up1"><enum>(bb)</enum><text>has not converted any of the collateral with respect to the existing loan; and</text> </item></subclause></clause><clause id="IDf6fb09edb8554d7aa3b7235c6825ee37"><enum>(ii)</enum><text>there is adequate security or full collateral for the refinanced loan.</text> </clause></subparagraph></paragraph><paragraph id="ID05e84df07a3d4d17b1cc69f5de91cbfc"><enum>(10)</enum><header>Loan guarantees in nonrural areas</header><text>The Secretary may guarantee a business and industry loan to a cooperative organization for a facility that is not located in a rural area if—</text> <subparagraph id="IDd76143a6eb804b46b478a1b3f3b3ec2a"><enum>(A)</enum><text>the primary purpose of the loan guarantee is for a facility to provide value-added processing for agricultural producers that are located within 80 miles of the facility;</text> </subparagraph><subparagraph id="ID674d5e6349df46c19b25b1a72de2608d"><enum>(B)</enum><text>the applicant demonstrates to the Secretary that the primary benefit of the loan guarantee will be to provide employment for residents of a rural area; and</text> </subparagraph><subparagraph id="ID3fe80556d334436aa07c1d05ede5989e"><enum>(C)</enum><text>the total amount of business and industry loans guaranteed for a fiscal year under this paragraph does not exceed 10 percent of the business and industry loans guaranteed for the fiscal year under this subsection.</text> </subparagraph></paragraph><paragraph id="IDc7b7054b33524f9a831622c70469f550"><enum>(11)</enum><header>Locally or regionally produced agricultural food products</header> <subparagraph id="IDa10e5d7ba93642e79a988bc3f67075fb"><enum>(A)</enum><header>Definitions</header><text>In this paragraph:</text> <clause id="ID4b95bff75b1f4a079b926338f167ab2e"><enum>(i)</enum><header>Locally or regionally produced agricultural food product</header><text>The term <term>locally or regionally produced agricultural food product</term> means any agricultural food product that is raised, produced, and distributed in—</text> <subclause id="ID8d5c7c8d617d4aa5861b3e6908330f34"><enum>(I)</enum><text>the locality or region in which the final product is marketed, so that the total distance that the product is transported is less than 400 miles from the origin of the product; or</text> </subclause><subclause id="IDec8a1cf4472f473aab3a9e6b34e361c2"><enum>(II)</enum><text>the State in which the product is produced.</text> </subclause></clause><clause id="IDeb629e3fefde437badd3a3f49dadff31"><enum>(ii)</enum><header>Underserved community</header><text>The term <term>underserved community</term> means a community (including an urban or rural community and an Indian tribal community) that, as determined by the Secretary, has—</text> <subclause id="ID695d315588cb432e920297e1b899f18f"><enum>(I)</enum><text>limited access to affordable, healthy foods, including fresh fruits and vegetables, in grocery retail stores or farmer-to-consumer direct markets; and</text> </subclause><subclause id="ID2af19d1fdfe741699296a7721a16d04b"><enum>(II)</enum><text>a high rate of hunger or food insecurity or a high poverty rate.</text> </subclause></clause></subparagraph><subparagraph id="IDd4973e6214c2464e8e81b7600d191439"><enum>(B)</enum><header>Loan and loan guarantee program</header> <clause id="ID41925a033d9948e38ce98e52ee937239"><enum>(i)</enum><header>In general</header><text>The Secretary shall make or guarantee loans to individuals, cooperatives, cooperative organizations, businesses, and other entities to establish and facilitate enterprises that process, distribute, aggregate, store, and market locally or regionally produced agricultural food products to support community development and farm income.</text> </clause><clause id="ID0aa5fdb1c9fb47b9887b563755d55243"><enum>(ii)</enum><header>Requirement</header><text>The recipient of a loan or loan guarantee under this paragraph shall include in an appropriate agreement with retail and institutional facilities to which the recipient sells locally or regionally produced agricultural food products a requirement to inform consumers of the retail or institutional facilities that the consumers are purchasing or consuming locally or regionally produced agricultural food products.</text> </clause><clause id="IDda9696cdaacf4d568d7a790f3b08f611"><enum>(iii)</enum><header>Priority</header><text>In making or guaranteeing a loan under this paragraph, the Secretary shall give priority to projects that have components benefitting underserved communities.</text> </clause><clause id="ID2d36916406db4f78bda09de7f2a54cea"><enum>(iv)</enum><header>Reports</header><text>Not later than 2 years after the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title> and annually thereafter, 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, and publish on the Internet, a report that describes projects carried out using loans or loan guarantees made under clause (i), including—</text> <subclause id="id2487BA45547E4A6CBB854ED7EBE3AFB4"><enum>(I)</enum><text>summary information about all projects;</text> </subclause><subclause id="idBB695522EEA7402387EA7107518BC036"><enum>(II)</enum><text>the characteristics of the communities served; and</text> </subclause><subclause id="id6B7E55F7F7BC4B618C170BDE21D5707F"><enum>(III)</enum><text>resulting benefits.</text> </subclause></clause><clause id="ID8c12a2909e934cc4a7f07f1d3e3a3cce"><enum>(v)</enum><header>Reservation of funds</header><text>For each of fiscal years 2012 through 2017, the Secretary shall reserve not less than 5 percent of the total amount of funds made available to carry out this subsection to carry out this paragraph until April 1 of the fiscal year.</text> </clause><clause id="idc938ee7fa1314db690628482fffbadca"><enum>(vi)</enum><header>Outreach</header><text>The Secretary shall develop and implement an outreach plan to publicize the availability of loans and loan guarantees under this paragraph, working closely with rural cooperative development centers, credit unions, community development financial institutions, regional economic development authorities, and other financial and economic development entities.</text> </clause></subparagraph></paragraph><paragraph id="idb289390c28964198897fafd357acff79"><enum>(12)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this subsection $75,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph></subsection><subsection id="id00aa10b115ef4ee5bea0bba581a51dea"><enum>(f)</enum><header>Relending programs</header> <paragraph id="id2630074860014e31bc9273c7508ee515"><enum>(1)</enum><header>Intermediate relending program</header> <subparagraph id="id701d8f659db24ea88799382f5f7facf0"><enum>(A)</enum><header>In general</header><text>The Secretary may make or guarantee loans to eligible entities described in subparagraph (B) so that the eligible entities may relend the funds to individuals and entities for the purposes described in subparagraph (C).</text> </subparagraph><subparagraph id="id52964c7ccf054c62ba95fc82516c63a3"><enum>(B)</enum><header>Eligible entities</header><text>Entities eligible for loans and loan guarantees described in subparagraph (A) are—</text> <clause id="ida8eef077471a4185abab1883f6aceba7"><enum>(i)</enum><text>public agencies;</text> </clause><clause id="id122a6ed83db544c8b772816d774ef511"><enum>(ii)</enum><text>Indian tribes;</text> </clause><clause id="id13a5d691527f421b89dcadf70cfedaf2"><enum>(iii)</enum><text>cooperatives; and</text> </clause><clause id="id94aea5de2fe340a4822fc41da53d3712"><enum>(iv)</enum><text>nonprofit corporations.</text> </clause></subparagraph><subparagraph id="id71b6c6037f6c4e14b3d1a262da9aadc7"><enum>(C)</enum><header>Eligible purposes</header><text>The proceeds from loans made or guaranteed by the Secretary pursuant to subparagraph (A) may be relent by eligible entities for projects that—</text> <clause id="ide6c9d03f54c744eaaf9509c9b3758903"><enum>(i)</enum><text>predominately serve communities in rural areas; and</text> </clause><clause id="id32adff72d0cb4a7199af41e22c6133c4"><enum>(ii)</enum><text>as determined by the Secretary—</text> <subclause id="id16928da793a64fd0b6efbfa009529421"><enum>(I)</enum><text>promote community development;</text> </subclause><subclause id="id0cda4c13c4f54d82a6faca5686c60e04"><enum>(II)</enum><text>establish new businesses;</text> </subclause><subclause id="id05117b0d8a6643d880855138483faeda"><enum>(III)</enum><text>establish and support microlending programs; and</text> </subclause><subclause id="id0aa8d9715c5d4dc782d012fd2bca3c4e"><enum>(IV)</enum><text>create or retain employment opportunities.</text> </subclause></clause></subparagraph><subparagraph id="ida19a0f2bb4eb455180b6b3ca7d500a25"><enum>(D)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this subsection $50,000,000 for each of fiscal years 2013 through 2017.</text> </subparagraph></paragraph><paragraph id="id7c525e45a7a74cefbfca5ca6e421854d"><enum>(2)</enum><header>Rural microentrepreneur assistance program</header> <subparagraph id="idf6d4112b02b542f3ba7e84905f9b2f26"><enum>(A)</enum><header>Definitions</header><text>In this paragraph:</text> <clause id="idd901ce35cdec407888c87720cde2079e"><enum>(i)</enum><header>Microentrepreneur</header><text>The term <term>microentrepreneur</term> means an owner and operator, or prospective owner and operator, of a rural microenterprise who is unable to obtain sufficient training, technical assistance, or credit other than under this subsection, as determined by the Secretary.</text> </clause><clause id="id521237116dff4f6c88c8f83a5ea0db96"><enum>(ii)</enum><header>Microenterprise development organization</header><text>The term <term>microenterprise development organization</term> means an organization that is—</text> <subclause id="id4ae45cda0d5b4589be2bb3ff5087f71e"><enum>(I)</enum><text>a nonprofit entity;</text> </subclause><subclause id="iddc9404879a6d48bb8f846ff300ecaf67"><enum>(II)</enum><text>an Indian tribe, the tribal government of which certifies to the Secretary that—</text> <item id="id67d25ca7e4d64828abe1049e52d8e52d"><enum>(aa)</enum><text>no microenterprise development organization serves the Indian tribe; and</text> </item><item id="idc742fc0b5e62489daa67c6841d01e9d6"><enum>(bb)</enum><text>no rural microentrepreneur assistance program exists under the jurisdiction of the Indian tribe;</text> </item></subclause><subclause id="id6488e706e12746c291ff5fcac96dd578"><enum>(III)</enum><text>a public institution of higher education; or</text> </subclause><subclause id="idcb71963b701c4493b783f495eadf3ec1"><enum>(IV)</enum><text>a collaboration of rural nonprofit entities serving a region or State, if 1 lead nonprofit entity is the sole underwriter of all loans and is responsible for associated risks.</text> </subclause></clause><clause id="idf49f935d382841b6b68cf1cd8a6dc34b"><enum>(iii)</enum><header>Microloan</header><text>The term <term>microloan</term> means a business loan of not more than $50,000 that is provided to a rural microenterprise.</text> </clause><clause id="id121c8211f09447a381dcf41bc31da26c"><enum>(iv)</enum><header>Program</header><text>The term <term>program</term> means the rural microentrepreneur assistance program established under subparagraph (B).</text> </clause><clause id="id7ade2920a32846afa967ae7fd6e7f6b1"><enum>(v)</enum><header>Rural microenterprise</header><text>The term <term>rural microenterprise</term> means a business entity with not more than 10 full-time equivalent employees located in a rural area.</text> </clause><clause id="id0a96458d1b4545cb8b5ac156181491a3"><enum>(vi)</enum><header>Training</header><text>The term <term>training</term> means teaching broad business principles or general business skills in a group or public setting.</text> </clause><clause id="id149d2d10a8ed4e26b4bc0f46d0746075"><enum>(vii)</enum><header>Technical assistance</header><text>The term <term>technical assistance</term> means working with a business client in a 1-to-1 manner to provide business and financial management counseling, assist in the preparation of business or marketing plans, or provide other skills tailored to an individual microentrepreneur.</text> </clause></subparagraph><subparagraph id="id1ad8f2996aac4d8b90cb15ac0265a2b1"><enum>(B)</enum><header>Rural microentrepreneur assistance program</header> <clause id="id33a8dc3b91ea44e0adaccb1a7ac221b4"><enum>(i)</enum><header>Establishment</header><text>The Secretary shall establish a rural microentrepreneur assistance program to provide loans and grants to support microentrepreneurs in the development and ongoing success of rural microenterprises.</text> </clause><clause id="id1eb2f703d3784254b5c4c5b8d8d98009"><enum>(ii)</enum><header>Purpose</header><text>The purpose of the program is to provide microentrepreneurs with—</text> <subclause id="id7a5c707a85bd4ccbab56334ed0c09732"><enum>(I)</enum><text>the skills necessary to establish new rural microenterprises; and</text> </subclause><subclause id="idf561f0348c744010acf287d9a7a1c0e2"><enum>(II)</enum><text>continuing technical and financial assistance related to the successful operation of rural microenterprises.</text> </subclause></clause><clause id="id4cf868a3e3404912b2c1b771b9213993"><enum>(iii)</enum><header>Loans</header> <subclause id="idd74a2a2d12e5497ab4ec1e61831021b1"><enum>(I)</enum><header>In general</header><text>The Secretary shall make loans to microenterprise development organizations for the purpose of providing fixed-interest rate microloans to microentrepreneurs for startup and growing rural microenterprises.</text> </subclause><subclause id="id3cd04e9265164bea9e687b8a621328d9"><enum>(II)</enum><header>Loan terms</header><text>A loan made by the Secretary to a microenterprise development organization under this subparagraph shall—</text> <item id="id2e64489aa3b74f499c10d6871d16edbd"><enum>(aa)</enum><text>be for a term not to exceed 20 years; and</text> </item><item id="id95ce32ed45864385bfffa38ee0e8666b"><enum>(bb)</enum><text>bear an annual interest rate of at least 1 percent.</text> </item></subclause><subclause id="id391274fecf97439897d38f784c9aff69"><enum>(III)</enum><header>Loan loss reserve fund</header><text>The Secretary shall require each microenterprise development organization that receives a loan under this subparagraph to—</text> <item id="id094fee5d92754ddf92a63d91f306d857"><enum>(aa)</enum><text>establish a loan loss reserve fund; and</text> </item><item id="id81775648611b4559977a3f74f2b19c2f"><enum>(bb)</enum><text>maintain the reserve fund in an amount equal to at least 5 percent of the outstanding balance of such loans owed by the microenterprise development organization, until all obligations owed to the Secretary under this subparagraph are repaid.</text> </item></subclause><subclause id="id32e5705f928042998b3c0dbc6031b85e"><enum>(IV)</enum><header>Deferral of interest and principal</header><text>The Secretary may permit the deferral of payments on principal and interest due on a loan to a microenterprise development organization made under this paragraph for a 2-year period beginning on the date on which the loan is made.</text> </subclause></clause><clause id="id4da62f686a094d7ea472e97975f993fb"><enum>(iv)</enum><header>Grants to support rural microenterprise development</header> <subclause id="idd8344abff20547259fcdf512f7531178"><enum>(I)</enum><header>In general</header><text>The Secretary shall make grants to microenterprise development organizations—</text> <item id="ida9224f6692de49019e3c8c8f5640e56a"><enum>(aa)</enum><text>to provide training and technical assistance, and other related services to rural microentrepreneurs; and</text> </item><item id="idaa4ca80ee65f4ffe8724ee3378978d11"><enum>(bb)</enum><text>to carry out such other projects and activities as the Secretary determines appropriate to further the purposes of the program.</text> </item></subclause><subclause id="id9ca77619f6774fceb149d1e96df44d34"><enum>(II)</enum><header>Selection</header><text>In making grants under subclause (I), the Secretary shall—</text> <item id="idce67fd6f2cc0499197f051ad4bddd730"><enum>(aa)</enum><text>place an emphasis on microenterprise development organizations that serve microentrepreneurs that are located in rural areas that have suffered significant outward migration, as determined by the Secretary; and</text> </item><item id="id844fd56858cc41508af77220be97a972"><enum>(bb)</enum><text>ensure, to the maximum extent practicable, that grant recipients include microenterprise development organizations of varying sizes and that serve racially and ethnically diverse populations.</text> </item></subclause></clause><clause id="id840a3ded878e42989d6ef5abd7a2fa03"><enum>(v)</enum><header>Grants to assist microentrepreneurs</header> <subclause id="id06c17a18a617480c8a2dcfb025684182"><enum>(I)</enum><header>In general</header><text>The Secretary shall make annual grants to microenterprise development organizations to provide technical assistance to microentrepreneurs that—</text> <item id="id795032d8b1a84ed9bc3b063f82989a2c"><enum>(aa)</enum><text>received a loan from the microenterprise development organization under subparagraph (B)(iii); or</text> </item><item id="id54336ee2f0f94628a81f2b5847d103df"><enum>(bb)</enum><text>are seeking a loan from the microenterprise development organization under subparagraph (B)(iii).</text> </item></subclause><subclause id="id23bec3d1bc6a4ded85416a35c6294fcf"><enum>(II)</enum><header>Maximum amount of technical assistance grant</header><text>The maximum amount of a grant under this clause shall be in an amount equal to not more than 25 percent of the total outstanding balance of microloans made by the microenterprise development organization under clause (iii), as of the date the grant is awarded.</text> </subclause></clause><clause id="idf2169afd3aa64586a32934e3638a2233"><enum>(vi)</enum><header>Administrative expenses</header><text>Not more than 10 percent of a grant received by a microenterprise development organization for a fiscal year under this subparagraph may be used to pay administrative expenses.</text> </clause></subparagraph><subparagraph id="ide3ff031e9e0049498d2a61f7ac46acfc"><enum>(C)</enum><header>Administration</header> <clause id="idebeaaa1f982c40f3ae18dc18029d7196"><enum>(i)</enum><header>Matching requirement</header><text>As a condition of any grant made under clauses (iv) and (v) of subparagraph (B), the Secretary shall require the microenterprise development organization to match not less than 15 percent of the total amount of the grant in the form of matching funds (including community development block grants), indirect costs, or in-kind goods or services.</text> </clause><clause id="id58a2c47309e245daab03e1eab2a5cd61"><enum>(ii)</enum><header>Oversight</header><text>At a minimum, not later than December 1 of each fiscal year, a microenterprise development organization that receives a loan or grant under this section shall provide to the Secretary such information as the Secretary may require to ensure that assistance provided under this section is used for the purposes for which the loan or grant was made.</text> </clause></subparagraph><subparagraph id="idfe55ad87d008437e884c524d8c6791fa"><enum>(D)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this paragraph $40,000,000 for each of fiscal years 2013 through 2017.</text> </subparagraph><subparagraph id="id478A9D3FDD474E6490EE251AA4F77585"><enum>(E)</enum><header>Mandatory funding for fiscal years 2013 through 2017</header><text>Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this paragraph $3,750,000 for each of fiscal years 2014 through 2017, to remain available until expended.</text> </subparagraph></paragraph></subsection></section><section id="idd62c5720f9df45a49c2d3ed269f75ff6"><enum>3602.</enum><header>Rural business investment program</header> <subsection id="id011d31fda00344c68c6e80f498bfb27a"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="id328d035cbdf141c9b54d0a01469f4f9a"><enum>(1)</enum><header>Articles</header><text>The term <term>articles</term> means articles of incorporation for an incorporated body or the functional equivalent or other similar documents specified by the Secretary for other business entities.</text> </paragraph><paragraph id="id60e333d931c949f1bc8667c79aeafc7c"><enum>(2)</enum><header>Developmental venture capital</header><text>The term <term>developmental venture capital</term> means capital in the form of equity capital investments in rural business investment companies with an objective of fostering economic development in rural areas.</text> </paragraph><paragraph id="idf960e09366b34549a3c9f969169d537a"><enum>(3)</enum><header>Employee welfare benefit plan; pension plan</header> <subparagraph id="idf05a99b4f5db4c368bb8f647dbfe128d"><enum>(A)</enum><header>In general</header><text>The terms <term>employee welfare benefit plan</term> and <term>pension plan</term> have the meanings given the terms in section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002).</text> </subparagraph><subparagraph id="idf2574d94da154ecab380517def1216b2"><enum>(B)</enum><header>Inclusions</header><text>The terms <term>employee welfare benefit plan</term> and <term>pension plan</term> include—</text> <clause id="id568c9d5fb93d41b49c8e40e2fb1b2d76"><enum>(i)</enum><text>public and private pension or retirement plans subject to this subtitle; and</text> </clause><clause id="idcf47f387cd81491c8593d8a121e9e279"><enum>(ii)</enum><text>similar plans not covered by this subtitle that have been established, and that are maintained, by the Federal Government or any State (including by a political subdivision, agency, or instrumentality of the Federal Government or a State) for the benefit of employees.</text> </clause></subparagraph></paragraph><paragraph id="id04c7ce7d92ae461ab2240c0478a3bbb0"><enum>(4)</enum><header>Equity capital</header><text>The term <term>equity capital</term> means common or preferred stock or a similar instrument, including subordinated debt with equity features.</text> </paragraph><paragraph id="idb60366ccdaeb4d10b4de53d50605c79c"><enum>(5)</enum><header>Leverage</header><text>The term <term>leverage</term> includes—</text> <subparagraph id="idf192a545a37f492bbf9545cc7b2676a7"><enum>(A)</enum><text>debentures purchased or guaranteed by the Secretary;</text> </subparagraph><subparagraph id="idaddf228e0ce9429c98a1c7576e7dbd2e"><enum>(B)</enum><text>participating securities purchased or guaranteed by the Secretary; and</text> </subparagraph><subparagraph id="id509339342a2f45cd8cc3544aeaab511a"><enum>(C)</enum><text>preferred securities outstanding as of the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>.</text> </subparagraph></paragraph><paragraph id="id52a35f545711488b8fd0ec97fbdf81f3"><enum>(6)</enum><header>License</header><text>The term <term>license</term> means a license issued by the Secretary in accordance with in subsection (d)(5).</text> </paragraph><paragraph id="id7d7a5c60991244d6aeb0ccaf8e3e2a26"><enum>(7)</enum><header>Limited liability company</header><text>The term <term>limited liability company</term> means a business entity that is organized and operating in accordance with a State limited liability company law approved by the Secretary.</text> </paragraph><paragraph id="idfd633d922329470d8513e6ba0709fb5f"><enum>(8)</enum><header>Member</header><text>The term <term>member</term> means, with respect to a rural business investment company that is a limited liability company, a holder of an ownership interest, or a person otherwise admitted to membership in the limited liability company.</text> </paragraph><paragraph id="id5c6bfbb9bf7d4a0988cc2758e0d21741"><enum>(9)</enum><header>Operational assistance</header><text>The term <term>operational assistance</term> means management, marketing, and other technical assistance that assists a rural business concern with business development.</text> </paragraph><paragraph id="id1571cbad76df469b9284628bf4b9245b"><enum>(10)</enum><header>Participation agreement</header><text>The term <term>participation agreement</term> means an agreement, between the Secretary and a rural business investment company granted final approval under subsection (d)(5), that requires the rural business investment company to make investments in smaller enterprises in rural areas.</text> </paragraph><paragraph id="id4394d8c8b8254787b0df64d549f553d1"><enum>(11)</enum><header>Private capital</header> <subparagraph id="id0350a44840dd4ff99bd91176e9f2fdad"><enum>(A)</enum><header>In general</header><text>The term <term>private capital</term> means the total of—</text> <clause id="idf5c9d8de15c74b89987cfde297119a87"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="idB47639EDCABD4683A44DBE79A2E7AC21"><enum>(I)</enum><text>the paid-in capital and paid-in surplus of a corporate rural business investment company;</text> </subclause><subclause id="id7AA2735ED1A54AF09B8BCF6880F09749" indent="up1"><enum>(II)</enum><text>the contributed capital of the partners of a partnership rural business investment company; or</text> </subclause><subclause id="id7E316EB11F39462E9223BFF08179BDE1" indent="up1"><enum>(III)</enum><text>the equity investment of the members of a limited liability company rural business investment company; and</text> </subclause></clause><clause id="id50576e00f53a460c976c82c9177af89f"><enum>(ii)</enum><text>unfunded binding commitments from investors that meet criteria established by the Secretary to contribute capital to the rural business investment company, except that—</text> <subclause id="id6b6c646e8ee74a3d84cf275660c69f96"><enum>(I)</enum><text>unfunded commitments may be counted as private capital for purposes of approval by the Secretary of any request for leverage; but</text> </subclause><subclause id="idc163a929564d46c385100e4b4e02b170"><enum>(II)</enum><text>leverage shall not be funded based on the commitments.</text> </subclause></clause></subparagraph><subparagraph id="idcc349696c5ca4697a68b4b54396634ef"><enum>(B)</enum><header>Exclusions</header><text>The term <term>private capital</term> does not include—</text> <clause id="idd09c6d9d44b24b8ab3c546ea2ba56059"><enum>(i)</enum><text>any funds borrowed by a rural business investment company from any source;</text> </clause><clause id="id1ca2461205ef4146bd151f087bc3ac3e"><enum>(ii)</enum><text>any funds obtained through the issuance of leverage; or</text> </clause><clause id="ida73993c3c1de4377a0a3338c935f9a20"><enum>(iii)</enum><text>any funds obtained directly or indirectly from the Federal Government or any State (including by a political subdivision, agency, or instrumentality of the Federal Government or a State), except for—</text> <subclause id="id51f21bbcbbf4432caba252f556859cd0"><enum>(I)</enum><text>funds obtained from the business revenues (excluding any governmental appropriation) of any Federally chartered or government-sponsored enterprise established prior to the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>;</text> </subclause><subclause id="id3bf659eb580a4ff3a0eee2f6d91e9d9b"><enum>(II)</enum><text>funds invested by an employee welfare benefit plan or pension plan; and</text> </subclause><subclause id="id80a1a93e3d564822aa4c59745341f9b6"><enum>(III)</enum><text>any qualified nonprivate funds (if the investors of the qualified nonprivate funds do not control, directly or indirectly, the management, board of directors, general partners, or members of the rural business investment company).</text> </subclause></clause></subparagraph></paragraph><paragraph id="ida952fa1e89c94e2d8fcb710951e308cf"><enum>(12)</enum><header>Qualified nonprivate funds</header><text>The term <term>qualified nonprivate funds</term> means any—</text> <subparagraph id="idc904f6e9e9cb4b95828dffbfc96cceb2"><enum>(A)</enum><text>funds directly or indirectly invested in any applicant or rural business investment company on or before the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title> by any Federal agency, other than the Department, under a provision of law explicitly mandating the inclusion of those funds in the definition of the term <term>private capital</term>; and</text> </subparagraph><subparagraph id="idfaf40aa31bf84923b2f544864acfd19c"><enum>(B)</enum><text>funds invested in any applicant or rural business investment company by 1 or more entities of any State (including by a political subdivision, agency, or instrumentality of the State and including any guarantee extended by those entities) in an aggregate amount that does not exceed 33 percent of the private capital of the applicant or rural business investment company.</text> </subparagraph></paragraph><paragraph id="idd4006060f2f140669a26189281d11a9c"><enum>(13)</enum><header>Rural business concern</header><text>The term <term>rural business concern</term> means—</text> <subparagraph id="id49f35dc172eb4cffb164c02766f19934"><enum>(A)</enum><text>a public, private, or cooperative for-profit or nonprofit organization;</text> </subparagraph><subparagraph id="id95f7f80df5434f1bb107b065f732b75f"><enum>(B)</enum><text>a for-profit or nonprofit business controlled by an Indian tribe; or</text> </subparagraph><subparagraph id="id72cc1094b45840e5972c641a19eac777"><enum>(C)</enum><text>any other person or entity that primarily operates in a rural area, as determined by the Secretary.</text> </subparagraph></paragraph><paragraph id="ida11e83f3dde540ca8f332a68e190c40e"><enum>(14)</enum><header>Rural business investment company</header><text>The term <term>rural business investment company</term> means a company that—</text> <subparagraph id="id4f166581b7204d1897de3089996fdb0e"><enum>(A)</enum><text>has been granted final approval by the Secretary under subsection (d)(5); and</text> </subparagraph><subparagraph id="id397d4555d739482ba8921549b2e5e65c"><enum>(B)</enum><text>has entered into a participation agreement with the Secretary.</text> </subparagraph></paragraph><paragraph id="id18802a822f0a4fec96707ead4a6433d8"><enum>(15)</enum><header>Smaller enterprise</header> <subparagraph id="idE5D433EDA2E84E069DC13BDBE73E276E"><enum>(A)</enum><header>In general</header><text>The term <term>smaller enterprise</term> means any rural business concern that, together with its affiliates—</text> <clause id="id1fd7b34da4fa4d3697d18a881a65b95d"><enum>(i)</enum><text>has—</text> <subclause id="idf827c375f3a84e269d0054489959aedb"><enum>(I)</enum><text>a net financial worth of not more than $6,000,000, as of the date on which assistance is provided under this section to the rural business concern; and</text> </subclause><subclause id="idf3b834ff778743b4bc6e7ad6b92637bd"><enum>(II)</enum><text>except as provided in subparagraph (B), an average net income for the 2-year period preceding the date on which assistance is provided under this section to the rural business concern, of not more than $2,000,000, after Federal income taxes (excluding any carryover losses); or</text> </subclause></clause><clause id="id9c7f5ec4573e4a81877875039655737d"><enum>(ii)</enum><text>satisfies the standard industrial classification size standards established by the Administrator of the Small Business Administration for the industry in which the rural business concern is primarily engaged.</text> </clause></subparagraph><subparagraph id="id795C030504D94EE2819C7A084583ED57"><enum>(B)</enum><header>Exception</header><text>For purposes of subparagraph (A)(i)(II), if the rural business concern is not required by law to pay Federal income taxes at the enterprise level, but is required to pass income through to the shareholders, partners, beneficiaries, or other equitable owners of the business concern, the net income of the business concern shall be determined by allowing a deduction in an amount equal to the total of—</text> <clause id="ide0582ebb5b394ab8a82a5ff8e40bab52"><enum>(i)</enum><text>if the rural business concern is not required by law to pay State (and local, if any) income taxes at the enterprise level, the product obtained by multiplying—</text> <subclause id="id2DA31A908CB6470F828ED975DC1E8F7D"><enum>(I)</enum><text>the net income (determined without regard to this subparagraph); by</text> </subclause><subclause id="id2BB4E91E8CCD47BBBE131F5591F03183"><enum>(II)</enum><text>the marginal State income tax rate (or by the combined State and local income tax rates, as applicable) that would have applied if the business concern were a corporation; and</text> </subclause></clause><clause id="idbf53af221bc44d4a87535f3ad41c48e6"><enum>(ii)</enum><text>the product obtained by multiplying—</text> <subclause id="idC8C31D100D6043CB89C25457935482A4"><enum>(I)</enum><text>the net income (so determined) less any deduction for State (and local) income taxes calculated under clause (i); by</text> </subclause><subclause id="idF668ECFD6F1F48A982F66ABD6F8C0D77"><enum>(II)</enum><text>the marginal Federal income tax rate that would have applied if the rural business concern were a corporation.</text> </subclause></clause></subparagraph></paragraph></subsection><subsection id="idf2a2b38879a54138a7adbb185891eea8"><enum>(b)</enum><header>Purposes</header><text>The purposes of the Rural Business Investment Program established under this section are—</text> <paragraph id="idfa44890dfe924b389c3d747977b764a0"><enum>(1)</enum><text>to promote economic development and the creation of wealth and job opportunities in rural areas and among individuals living in those areas by encouraging developmental venture capital investments in smaller enterprises primarily located in rural areas; and</text> </paragraph><paragraph id="idaf705d886df74ab7818ca36277a440b0"><enum>(2)</enum><text>to establish a developmental venture capital program, with the mission of addressing the unmet equity investment needs of small enterprises located in rural areas, by authorizing the Secretary—</text> <subparagraph id="idff1266f67b6d4c0f8e94c3ad365b1626"><enum>(A)</enum><text>to enter into participation agreements with rural business investment companies;</text> </subparagraph><subparagraph id="id419bcafef0f84170be09103c474a5b26"><enum>(B)</enum><text>to guarantee debentures of rural business investment companies to enable each rural business investment company to make developmental venture capital investments in smaller enterprises in rural areas; and</text> </subparagraph><subparagraph id="id60d3a8791f91402881dbb68e796268e9"><enum>(C)</enum><text>to make grants to rural business investment companies, and to other entities, for the purpose of providing operational assistance to smaller enterprises financed, or expected to be financed, by rural business investment companies.</text> </subparagraph></paragraph></subsection><subsection id="id82067d442bfd49ec99faa92e8d68f46c"><enum>(c)</enum><header>Establishment</header><text>In accordance with this subtitle, the Secretary shall establish a Rural Business Investment Program, under which the Secretary may—</text> <paragraph id="id1710d26653ba4b37a9779066a0e00135"><enum>(1)</enum><text>enter into participation agreements with companies granted final approval under subsection (d)(5) for the purposes described in subsection (b);</text> </paragraph><paragraph id="idf163a80077b242ac8cfa41f4bacf8c0e"><enum>(2)</enum><text>guarantee the debentures issued by rural business investment companies as provided in subsection (e); and</text> </paragraph><paragraph id="id5535d16b664a49d0ae532c1e780bfee2"><enum>(3)</enum><text>make grants to rural business investment companies, and to other entities, under subsection (h).</text> </paragraph></subsection><subsection id="idbd6416a916f9462b98a3859ea4257f6c"><enum>(d)</enum><header>Selection of rural business investment companies</header> <paragraph id="id9e24a54be6ed4c3da46bddb269363911"><enum>(1)</enum><header>Eligibility</header><text>A company shall be eligible to apply to participate, as a rural business investment company, in the program established under this section if—</text> <subparagraph id="id109575d2a68c4788b7c12bd1c100d71f"><enum>(A)</enum><text>the company is a newly formed for-profit entity or a newly formed for-profit subsidiary of such an entity;</text> </subparagraph><subparagraph id="idffecae54a8de4d28bc8693ae7b0568c4"><enum>(B)</enum><text>the company has a management team with experience in community development financing or relevant venture capital financing; and</text> </subparagraph><subparagraph id="id11442b8de12346eebd055663d4ffdbef"><enum>(C)</enum><text>the company will invest in enterprises that will create wealth and job opportunities in rural areas, with an emphasis on smaller enterprises.</text> </subparagraph></paragraph><paragraph id="idae0c3f1d367e4c919e6c317d0522171f"><enum>(2)</enum><header>Application</header><text>To participate, as a rural business investment company, in the program established under this section, a company meeting the eligibility requirements of paragraph (1) shall submit an application to the Secretary that includes—</text> <subparagraph id="id72b53401e85c42ee81a71bf84330a8a0"><enum>(A)</enum><text>a business plan describing how the company intends to make successful developmental venture capital investments in identified rural areas;</text> </subparagraph><subparagraph id="id093c2d0ce11e40d7bcdc586a60df604f"><enum>(B)</enum><text>information regarding the community development finance or relevant venture capital qualifications and general reputation of the management of the company;</text> </subparagraph><subparagraph id="id94e353bd0b74476581d7d93995a2f62c"><enum>(C)</enum><text>a description of how the company intends to work with community-based organizations and local entities (including local economic development companies, local lenders, and local investors) and to seek to address the unmet equity capital needs of the communities served;</text> </subparagraph><subparagraph id="idee686e87ce5b4a6db9d9f3a1987a769a"><enum>(D)</enum><text>a proposal describing how the company intends to use the grant funds provided under this section to provide operational assistance to smaller enterprises financed by the company, including information regarding whether the company intends to use licensed professionals, as necessary, on the staff of the company or from an outside entity;</text> </subparagraph><subparagraph id="id76b46b64c4e44fbc8e079011d0e03e99"><enum>(E)</enum><text>with respect to binding commitments to be made to the company under this section, an estimate of the ratio of cash to in-kind contributions;</text> </subparagraph><subparagraph id="idd89076aaf11443968b8c6486376fda53"><enum>(F)</enum><text>a description of the criteria to be used to evaluate whether and to what extent the company meets the purposes of the program established under this section;</text> </subparagraph><subparagraph id="id15130da2aae54f46abf8dcdc9af270c3"><enum>(G)</enum><text>information regarding the management and financial strength of any parent firm, affiliated firm, or any other firm essential to the success of the business plan of the company; and</text> </subparagraph><subparagraph id="id0d9c0805ab1f4e83afe9f27af0bfa260"><enum>(H)</enum><text>such other information as the Secretary may require.</text> </subparagraph></paragraph><paragraph id="idb1f6bae604fd45afa009cb761140933b"><enum>(3)</enum><header>Status</header><text>Not later than 90 days after the initial receipt by the Secretary of an application under this subsection, the Secretary shall provide to the applicant a written report describing the status of the application and any requirements remaining for completion of the application.</text> </paragraph><paragraph id="id802f71a90d47432c96224c5caa443694"><enum>(4)</enum><header>Matters considered</header><text>In reviewing and processing any application under this subsection, the Secretary shall—</text> <subparagraph id="id0f3469e19a3045bba34c0551afa174f8"><enum>(A)</enum><text>determine whether—</text> <clause id="id90fc06e242d94a97a6ecaf0cfeddccb5"><enum>(i)</enum><text>the applicant meets the requirements of paragraph (5); and</text> </clause><clause id="id832dd21797da4bc5bbd039c64da575db"><enum>(ii)</enum><text>the management of the applicant is qualified and has the knowledge, experience, and capability necessary to comply with this section;</text> </clause></subparagraph><subparagraph id="id25b5960d766347abb949f3e68091ee92"><enum>(B)</enum><text>take into consideration—</text> <clause id="id8fec0f6ef3a147f7a2c30d72da6ef9b1"><enum>(i)</enum><text>the need for and availability of financing for rural business concerns in the geographic area in which the applicant is to commence business;</text> </clause><clause id="id3e25d37702d0431eb966b0ef709877a6"><enum>(ii)</enum><text>the general business reputation of the owners and management of the applicant; and</text> </clause><clause id="id047381bb61d241cabb83c31c7b065138"><enum>(iii)</enum><text>the probability of successful operations of the applicant, including adequate profitability and financial soundness; and</text> </clause></subparagraph><subparagraph id="id35a917d102a949a1ae7bd0a50823914b"><enum>(C)</enum><text>not take into consideration any projected shortage or unavailability of grant funds or leverage.</text> </subparagraph></paragraph><paragraph id="id725ba9e2fe834ed4a566894b95a5a7fb"><enum>(5)</enum><header>Approval; license</header> <subparagraph id="idee681fddf73a407e95267f5ad8b44d3d"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the Secretary may approve an applicant to operate as a rural business investment company under this subtitle and license the applicant as a rural business investment company, if—</text> <clause id="id17904666993f49ac9152177ed1cdd7d6"><enum>(i)</enum><text>the Secretary determines that the application satisfies the requirements of paragraph (2);</text> </clause><clause id="id84af4c713dff48cfac65f8856fa049f1"><enum>(ii)</enum><text>the area in which the rural business investment company is to conduct its operations, and establishment of branch offices or agencies (if authorized by the articles), are approved by the Secretary; and</text> </clause><clause id="id436d91f2f637418bb0130a94355538f5"><enum>(iii)</enum><text>the applicant enters into a participation agreement with the Secretary.</text> </clause></subparagraph><subparagraph id="id7d5da31c7012453990ac54d5f2517e63"><enum>(B)</enum><header>Capital requirements</header> <clause id="id6cccde93542c4a228a479e47c66175c1"><enum>(i)</enum><header>In general</header><text>Notwithstanding any other provision of this section, the Secretary may approve an applicant to operate as a rural business investment company under this section and designate the applicant as a rural business investment company, if the Secretary determines that the applicant—</text> <subclause id="ide60a81cfacda4e41809de10343bebe16"><enum>(I)</enum><text>has private capital as determined by the Secretary;</text> </subclause><subclause id="id632c40096ac643daa71f59c1b93a55d6"><enum>(II)</enum><text>would otherwise be approved under this section, except that the applicant does not satisfy the requirements of subsection (i)(3); and</text> </subclause><subclause id="id3d6eff5c8cfb4bf080f1599c6463ab59"><enum>(III)</enum><text>has a viable business plan that—</text> <item id="id70c0906aa6eb49d9b25fca26a8fcc957"><enum>(aa)</enum><text>reasonably projects profitable operations; and</text> </item><item id="iddf693ab086164e50b706dc44b28e1794"><enum>(bb)</enum><text>has a reasonable timetable for achieving a level of private capital that satisfies the requirements of subsection (i)(3).</text> </item></subclause></clause><clause id="id3927a29234be41ad95b8c2b7d2fb1fe7"><enum>(ii)</enum><header>Leverage</header><text>An applicant approved under clause (i) shall not be eligible to receive leverage under this section until the applicant satisfies the requirements of section 3602(i)(3).</text> </clause><clause id="id4c20cd86ea3c481697b8244cd85c9768"><enum>(iii)</enum><header>Grants</header><text>An applicant approved under clause (i) shall be eligible for grants under subsection (h) in proportion to the private capital of the applicant, as determined by the Secretary.</text> </clause></subparagraph></paragraph></subsection><subsection id="id5082688ff9564cc6828e10c81eec13c8"><enum>(e)</enum><header>Debentures</header> <paragraph id="id22188aa2523d4ff995ec0e817de70e4f"><enum>(1)</enum><header>In general</header><text>The Secretary may guarantee the timely payment of principal and interest, as scheduled, on debentures issued by any rural business investment company.</text> </paragraph><paragraph id="ide5d1a2222b2e47d8a91a819441d3ab17"><enum>(2)</enum><header>Terms and conditions</header><text>The Secretary may make guarantees under this subsection on such terms and conditions as the Secretary considers appropriate, except that the term of any debenture guaranteed under this section shall not exceed 15 years.</text> </paragraph><paragraph id="idecc04b28cc6646e4a9191300886b609b"><enum>(3)</enum><header>Full faith and credit of the United States</header><text>Section 3901 shall apply to any guarantee under this subsection.</text> </paragraph><paragraph id="id00e4c81c98214a7a9d73be5d4b4e7f63"><enum>(4)</enum><header>Maximum guarantee</header><text>Under this subsection, the Secretary may—</text> <subparagraph id="idf525d3a268be4f8bb8e6733ad6038556"><enum>(A)</enum><text>guarantee the debentures issued by a rural business investment company only to the extent that the total face amount of outstanding guaranteed debentures of the rural business investment company does not exceed the lesser of—</text> <clause id="id0a799d38f434490486688c8666340e5b"><enum>(i)</enum><text>300 percent of the private capital of the rural business investment company; or</text> </clause><clause id="idb06ad89ec1c743979e40b654d984325e"><enum>(ii)</enum><text>$105,000,000; and</text> </clause></subparagraph><subparagraph id="idc97f1f245f764e2bbf3feb2acd239abc"><enum>(B)</enum><text>provide for the use of discounted debentures.</text> </subparagraph></paragraph></subsection><subsection id="id89ed632daa2f4ebaa22b02c2eac7252a"><enum>(f)</enum><header>Issuance and guarantee of trust certificates</header> <paragraph id="id96d16bc1f94d44ff94fd50cf3cf868ef"><enum>(1)</enum><header>Issuance</header><text>The Secretary may issue trust certificates representing ownership of all or a fractional part of debentures issued by a rural business investment company and guaranteed by the Secretary under this section, if the certificates are based on and backed by a trust or pool approved by the Secretary and composed solely of guaranteed debentures.</text> </paragraph><paragraph id="id45271a3aa2ed4c37a88097956223d943"><enum>(2)</enum><header>Guarantee</header> <subparagraph id="id90a65251315f4e93b10f5892af40fd2b"><enum>(A)</enum><header>In general</header><text>The Secretary may, under such terms and conditions as the Secretary considers appropriate, guarantee the timely payment of the principal of and interest on trust certificates issued by the Secretary or agents of the Secretary for purposes of this subsection.</text> </subparagraph><subparagraph id="idf76b4be30a984dc6988720263edf27df"><enum>(B)</enum><header>Limitation</header><text>Each guarantee under this paragraph shall be limited to the extent of principal and interest on the guaranteed debentures that compose the trust or pool.</text> </subparagraph><subparagraph id="ida16fa60137da4d92b664888bb60113fc"><enum>(C)</enum><header>Prepayment or default</header> <clause id="iddbf6402540f144ea9e88475e6737f968"><enum>(i)</enum><header>In general</header> <subclause id="id052527c99377461abfdfe0c621e42a92"><enum>(I)</enum><header>Authority to prepay</header><text>A debenture may be prepaid at any time without penalty.</text> </subclause><subclause id="idd9cca11ed8824ad78b185d5bd122d5cc"><enum>(II)</enum><header>Reduction of guarantee</header><text>Subject to subclause (I), if a debenture in a trust or pool is prepaid, or in the event of default of such a debenture, the guarantee of timely payment of principal and interest on the trust certificates shall be reduced in proportion to the amount of principal and interest the prepaid debenture represents in the trust or pool.</text> </subclause></clause><clause id="idc8a05820bbb2475c9587dfe574872c97"><enum>(ii)</enum><header>Interest</header><text>Interest on prepaid or defaulted debentures shall accrue and be guaranteed by the Secretary only through the date of payment of the guarantee.</text> </clause><clause id="ideeba6223039a452492fa885767ea2f77"><enum>(iii)</enum><header>Redemption</header><text>At any time during the term of a trust certificate, the trust certificate may be called for redemption due to prepayment or default of all debentures.</text> </clause></subparagraph></paragraph><paragraph commented="no" id="id9290a9b16d454caa93f54b49e43c1d50"><enum>(3)</enum><header>Full faith and credit of the United States</header><text>Section 3901 shall apply to any guarantee of a trust certificate issued by the Secretary under this section.</text> </paragraph><paragraph id="id78601ced3a324e15b1b0c404378f207d"><enum>(4)</enum><header>Subrogation and ownership rights</header> <subparagraph id="id4e5022884fc14f10b3a5273375d39106"><enum>(A)</enum><header>Subrogation</header><text>If the Secretary pays a claim under a guarantee issued under this section, the claim shall be subrogated fully to the rights satisfied by the payment.</text> </subparagraph><subparagraph id="idb91e3443d2be429ca75ea48b307e8399"><enum>(B)</enum><header>Ownership rights</header><text>No Federal, State, or local law shall preclude or limit the exercise by the Secretary of the ownership rights of the Secretary in a debenture residing in a trust or pool against which 1 or more trust certificates are issued under this subsection.</text> </subparagraph></paragraph><paragraph id="id0067f06c73b64f3cab8f11c886a3103b"><enum>(5)</enum><header>Management and administration</header> <subparagraph id="idec7e7b05a0564adda3d1b835a94364fa"><enum>(A)</enum><header>Registration</header><text>The Secretary shall provide for a central registration of all trust certificates issued under this subsection.</text> </subparagraph><subparagraph id="id9ffb958467824f0684a6db75628d9594"><enum>(B)</enum><header>Creation of pools</header><text>The Secretary may—</text> <clause id="id0e910e84ce2442098a4b591157b74698"><enum>(i)</enum><text>maintain such commercial bank accounts or investments in obligations of the United States as may be necessary to facilitate the creation of trusts or pools backed by debentures guaranteed under this subtitle; and</text> </clause><clause id="id4b62932607d04485b97aedd81d12caf8"><enum>(ii)</enum><text>issue trust certificates to facilitate the creation of those trusts or pools.</text> </clause></subparagraph><subparagraph id="idee82a8c6ad3a4f89b2ebda4a0c7c6232"><enum>(C)</enum><header>Fidelity bond or insurance requirement</header><text>Any agent performing functions on behalf of the Secretary under this paragraph shall provide a fidelity bond or insurance in such amount as the Secretary considers to be necessary to fully protect the interests of the United States.</text> </subparagraph><subparagraph id="id6456de62f62840ae804a9a08460b42fd"><enum>(D)</enum><header>Regulation of brokers and dealers</header><text>The Secretary may regulate brokers and dealers in trust certificates issued under this subsection.</text> </subparagraph><subparagraph id="id48a66e2449d14993b2c5f73369efbaa7"><enum>(E)</enum><header>Electronic registration</header><text>Nothing in this paragraph prohibits the use of a book-entry or other electronic form of registration for trust certificates issued under this subsection.</text> </subparagraph></paragraph></subsection><subsection id="id27154b52b0d64820b5cc4904964ebc08"><enum>(g)</enum><header>Fees</header> <paragraph id="idde402a8be8144085937d7e9b313df0ee"><enum>(1)</enum><header>In general</header><text>The Secretary may charge a fee that does not exceed $500 with respect to any guarantee or grant issued under this section.</text> </paragraph><paragraph id="idc806ab07839a4940b08422b6adab28a2"><enum>(2)</enum><header>Trust certificate</header><text>Notwithstanding paragraph (1), the Secretary shall not collect a fee for any guarantee of a trust certificate under subsection (f), except that any agent of the Secretary may collect a fee that does not exceed $500 for the functions described in subsection (f)(5)(B).</text> </paragraph><paragraph id="id363354ddb468479e999eb886f1f17d12"><enum>(3)</enum><header>License</header> <subparagraph id="idb2bbd54723ed44c3a7758e25522d363e"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (C), the Secretary may prescribe fees to be paid by each applicant for a license to operate as a rural business investment company under this section.</text> </subparagraph><subparagraph id="id0ae84674cd4141efb44fe9f25b2a2455"><enum>(B)</enum><header>Use of amounts</header><text>Fees collected under this paragraph—</text> <clause id="id70e86c2e1a7c4215a8182840ec1e82e1"><enum>(i)</enum><text>shall be deposited in the account for salaries and expenses of the Secretary;</text> </clause><clause id="idef7296e618eb4a00a6ef49a19cb0ba5b"><enum>(ii)</enum><text>are authorized to be appropriated solely to cover the costs of licensing examinations; and</text> </clause><clause id="idbc85fb98b17f430b90ffc2a23bb19bdd"><enum>(iii)</enum><text>shall—</text> <subclause id="id5dfccd91edac4887aaed4e5e5ca419f5"><enum>(I)</enum><text>in the case of a license issued before the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>, not exceed $500 for any fee collected under this paragraph; and</text> </subclause><subclause id="id2ac2cd52c3fa47a7820a1731a3708564"><enum>(II)</enum><text>in the case of a license issued after the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>, be a rate as determined by the Secretary.</text> </subclause></clause></subparagraph><subparagraph id="idddd6661620f2456e89c457ddbc794cf3"><enum>(C)</enum><header>Prohibition on collection of certain fees</header><text>In the case of a license described in subparagraph (A) that was approved before July 1, 2007, the Secretary shall not collect any fees due on or after the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>.</text> </subparagraph></paragraph></subsection><subsection id="id7f4ae1ab29a542a28e33c9022118125c"><enum>(h)</enum><header>Operational assistance grants</header> <paragraph id="idde02cc6b892f4e7aaca266b28271c342"><enum>(1)</enum><header>In general</header><text>In accordance with this subsection, the Secretary may make grants to rural business investment companies and to other entities, as authorized by this section, to provide operational assistance to smaller enterprises financed, or expected to be financed, by the entities.</text> </paragraph><paragraph id="id73b5a687c355434cb99b8c52f707072a"><enum>(2)</enum><header>Terms</header><text>Grants made under this subsection shall be made over a multiyear period (not to exceed 10 years) under such terms as the Secretary may require.</text> </paragraph><paragraph id="idf068f762b05949519c920b59c7f30165"><enum>(3)</enum><header>Use of funds</header><text>The proceeds of a grant made under this subsection may be used by the rural business investment company receiving the grant only to provide operational assistance in connection with an equity or prospective equity investment in a business located in a rural area.</text> </paragraph><paragraph id="id8938fe2c7926431d8380152f23b78897"><enum>(4)</enum><header>Submission of plans</header><text>A rural business investment company shall be eligible for a grant under this subsection only if the rural business investment company submits to the Secretary, in such form and manner as the Secretary may require, a plan for use of the grant.</text> </paragraph><paragraph id="idf8c919427a584659ae90e2f4139a9ae3"><enum>(5)</enum><header>Grant amount</header> <subparagraph id="idca80fc2b4be54a67abb6981b343546c6"><enum>(A)</enum><header>Rural business investment companies</header><text>The amount of a grant made under this subsection to a rural business investment company shall be equal to the lesser of—</text> <clause id="idd733755fa7b44781933195ea6d6e9351"><enum>(i)</enum><text>10 percent of the private capital raised by the rural business investment company; or</text> </clause><clause id="id0726c768e32f4a7d97ef49aaa4fd8258"><enum>(ii)</enum><text>$1,000,000.</text> </clause></subparagraph></paragraph><paragraph id="id6a64236e6dc94777b18a17f61c91926c"><enum>(6)</enum><header>Other entities</header><text>The amount of a grant made under this subsection to any entity other than a rural business investment company shall be equal to the resources (in cash or in kind) raised by the entity in accordance with the requirements applicable to rural business investment companies under this section.</text> </paragraph></subsection><subsection id="id9eb8838395884db0a166ca20e1596a31"><enum>(i)</enum><header>Rural business investment companies</header> <paragraph commented="no" id="idf0dc312219424e91a1c1b2d1d518a288"><enum>(1)</enum><header>Organization</header><text>For purposes of this subsection, a rural business investment company shall—</text> <subparagraph commented="no" id="id3cef48e37481424aaca3d15c74d73465"><enum>(A)</enum><text>be an incorporated body, a limited liability company, or a limited partnership organized and chartered or otherwise existing under State law solely for the purpose of performing the functions and conducting the activities authorized by this section; and</text> </subparagraph><subparagraph commented="no" id="id8de2c83c63024354bebea4c293a2ea26"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="id2C4B5A42BCD1497583CE797A86DBEBA0"><enum>(i)</enum><text>if incorporated, have succession for a period of not less than 30 years unless earlier dissolved by the shareholders of the rural business investment company; and</text> </clause><clause commented="no" id="idD005B5120E7A4B7DAF77B5A05C0FC1CB" indent="up1"><enum>(ii)</enum><text>if a limited partnership or a limited liability company, have succession for a period of not less than 10 years; and</text> </clause><clause commented="no" id="idFA065DDB760845B984AA4B198A07C22F" indent="up1"><enum>(iii)</enum><text>possess the powers reasonably necessary to perform the functions and conduct the activities.</text> </clause></subparagraph></paragraph><paragraph id="id4e1a97ecf7b54a1c9cd8fb8a2531f7f2"><enum>(2)</enum><header>Articles</header><text>The articles of any rural business investment company—</text> <subparagraph id="id3d6ec3a4ff3549069450f9320c9f0794"><enum>(A)</enum><text>shall specify in general terms—</text> <clause id="id9766e6f44a2642919c6e4dd564da749b"><enum>(i)</enum><text>the purposes for which the rural business investment company is formed;</text> </clause><clause id="idfaedd70bb3144e0fa54aaae018622204"><enum>(ii)</enum><text>the name of the rural business investment company;</text> </clause><clause id="id4198e05a5e4c434eac808d02412e8cb0"><enum>(iii)</enum><text>the 1 or more areas in which the operations of the rural business investment company are to be carried out;</text> </clause><clause id="id3d0c8332dd48491c951cf9deb6ba0f24"><enum>(iv)</enum><text>the place where the principal office of the rural business investment company is to be located; and</text> </clause><clause id="idc02a1ca1b5934aeab5de6bbaaa1092ad"><enum>(v)</enum><text>the amount and classes of the shares of capital stock of the rural business investment company;</text> </clause></subparagraph><subparagraph id="idabf3ded7c8d14e00a7e74415ac003214"><enum>(B)</enum><text>may contain any other provisions consistent with this section that the rural business investment company may determine appropriate to adopt for the regulation of the business of the rural business investment company and the conduct of the affairs of the rural business investment company; and</text> </subparagraph><subparagraph id="idce1f5160c7aa4eb4aa6792a3e44ff43e"><enum>(C)</enum><text>shall be subject to the approval of the Secretary.</text> </subparagraph></paragraph><paragraph id="idb5e212947c7c462e9e4b498d0fcec4e0"><enum>(3)</enum><header>Capital requirements</header> <subparagraph id="ida6652748e2ad430bb245eef7b3939d7a"><enum>(A)</enum><header>In general</header><text>Each rural business investment company shall be required to meet the capital requirements as provided by the Secretary.</text> </subparagraph><subparagraph id="idf601a3280d58445c9769d066b3ae7fae"><enum>(B)</enum><header>Time frame</header><text>Each rural business investment company shall have a period of 2 years to meet the capital requirements of this paragraph.</text> </subparagraph><subparagraph id="id9cc94a0f6bec4f75853014032eff5349"><enum>(C)</enum><header>Adequacy</header><text>In addition to the requirements of subparagraph (A), the Secretary shall—</text> <clause id="id2078892c89344031827025e4ba190adc"><enum>(i)</enum><text>determine whether the private capital of each rural business investment company is adequate to ensure a reasonable prospect that the rural business investment company will be operated soundly and profitably, and managed actively and prudently in accordance with the articles of the rural business investment company;</text> </clause><clause id="id50a37f726e74438085a76bdd8077e93d"><enum>(ii)</enum><text>determine that the rural business investment company will be able to comply with the requirements of this section;</text> </clause><clause id="id0d9f589272b54359acb366233816b045"><enum>(iii)</enum><text>require that at least 75 percent of the capital of each rural business investment company is invested in rural business concerns;</text> </clause><clause id="idaaae5c5e7f2c4a2f965fda85d5482008"><enum>(iv)</enum><text>ensure that the rural business investment company is designed primarily to meet equity capital needs of the businesses in which the rural business investment company invests and not to compete with traditional small business financing by commercial lenders; and</text> </clause><clause id="id16c4628a30344e49ac6cf4909b82cc7d"><enum>(v)</enum><text>require that the rural business investment company makes short-term non-equity investments of less than 5 years only to the extent necessary to preserve an existing investment.</text> </clause></subparagraph></paragraph><paragraph id="id749ae84b648b48a5a7e18d34492d53aa"><enum>(4)</enum><header>Diversification of ownership</header><text>The Secretary shall ensure that the management of each rural business investment company licensed after the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title> is sufficiently diversified from and unaffiliated with the ownership of the rural business investment company so as to ensure independence and objectivity in the financial management and oversight of the investments and operations of the rural business investment company.</text> </paragraph></subsection><subsection id="id67d2090b75bb4f5392fb5555da57e36b"><enum>(j)</enum><header>Financial institution investments</header> <paragraph id="idd39471743ecd4c5884fe948a0424b7bc"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection and notwithstanding any other provision of law, the following banks, associations, and institutions are eligible both to establish and invest in any rural business investment company or in any entity established to invest solely in rural business investment companies:</text> <subparagraph id="idac45c7720de747af9b198b7b25226034"><enum>(A)</enum><text>Any bank or savings association the deposits of which are insured under the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.), including an investment pool created entirely by such bank or savings association.</text> </subparagraph><subparagraph id="id77a8b94c885849ce8a00ccf4eccbf1d4"><enum>(B)</enum><text>Any Farm Credit System institution described in subsection 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)).</text> </subparagraph></paragraph><paragraph id="id13b3aef4d716407fa808b2b0a54b8cfd"><enum>(2)</enum><header>Limitation</header><text>No bank, association, or institution described in paragraph (1) may make investments described in paragraph (1) that are greater than 5 percent of the capital and surplus of the bank, association, or institution.</text> </paragraph><paragraph id="id4f87a534a79d496093514d1217fc22f8"><enum>(3)</enum><header>Limitation on rural business investment companies controlled by farm credit system institutions</header><text>If a Farm Credit System institution described in section 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)) holds more than 25 percent of the shares of a rural business investment company, either alone or in conjunction with other System institutions (or affiliates), the rural business investment company shall not provide equity investments in, or provide other financial assistance to, entities that are not otherwise eligible to receive financing from the Farm Credit System under that Act (12 U.S.C. 2001 et seq.).</text> </paragraph></subsection><subsection id="ida838ce9179e4401692e014349c86e7fc"><enum>(k)</enum><header>Examinations</header> <paragraph id="idea5c667a911f4cf68a508d403a2e85e3"><enum>(1)</enum><header>In general</header><text>Each rural business investment company that participates in the program established under this section shall be subject to examinations made at the direction of the Secretary in accordance with this subsection.</text> </paragraph><paragraph id="idfe3d2f341e954709805e3cda08ade6ca"><enum>(2)</enum><header>Assistance of private sector entities</header><text>An examination under this subsection may be conducted with the assistance of a private sector entity that has the qualifications and the expertise necessary to conduct such an examination.</text> </paragraph><paragraph id="idc1597e17019b4c7f98b03276ab5689fc"><enum>(3)</enum><header>Costs</header> <subparagraph id="ida16c2f9dfc78496ea764b633db8e2550"><enum>(A)</enum><header>In general</header><text>The Secretary may assess the cost of an examination under this section, including compensation of the examiners, against the rural business investment company examined.</text> </subparagraph><subparagraph id="id9686cd294bb842d1a832ef6692d2e21f"><enum>(B)</enum><header>Payment</header><text>Any rural business investment company against which the Secretary assesses costs under this subparagraph shall pay the costs.</text> </subparagraph></paragraph><paragraph id="id81346145b3e74d23bb177791f4afe6a6"><enum>(4)</enum><header>Deposit of funds</header><text>Funds collected under this subsection shall—</text> <subparagraph id="idcb88f969ca5e40d2aabbcff854647421"><enum>(A)</enum><text>be deposited in the account that incurred the costs for carrying out this subsection;</text> </subparagraph><subparagraph id="id3ff2da2268374c6ca711e5de4998ac36"><enum>(B)</enum><text>be made available to the Secretary to carry out this subsection, without further appropriation; and</text> </subparagraph><subparagraph id="id4a472235531c402894eb9efbb7f28cad"><enum>(C)</enum><text>remain available until expended.</text> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID70CE49AAE0094D9CB495D18526DB7FF0"><enum>(l)</enum><header display-inline="yes-display-inline">Reporting requirements</header> <paragraph commented="no" display-inline="no-display-inline" id="ID6DEAC5D3396945E09E108759E9039B82"><enum>(1)</enum><header>Rural business investment companies</header><text>Each entity that participates in a program established under this section shall provide to the Secretary such information as the Secretary may require, including—</text> <subparagraph id="IDF959796A253D4EA88D3593C04AAB7D56"><enum>(A)</enum><text>information relating to the measurement criteria that the entity proposed in the program application of the rural business investment company; and</text> </subparagraph><subparagraph id="IDD63EC69D40AD45C2A67BC3B26FD50B7B"><enum>(B)</enum><text>in each case in which the entity under this section makes an investment in, or a loan or grant to, a business that is not located in a rural area, a report on the number and percentage of employees of the business who reside in those areas.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID55CC8168646F4303B74688159FDF4FF0"><enum>(2)</enum><header>Public reports</header> <subparagraph id="IDDA613FD484DD4BB38AEE24088053E3D9"><enum>(A)</enum><header>In general</header><text>The Secretary shall prepare and make available to the public an annual report on the programs established under this section, including detailed information on—</text> <clause id="ID1C8DCA14E472439ABA011253E8C75C64"><enum>(i)</enum><text>the number of rural business investment companies licensed by the Secretary during the previous fiscal year;</text> </clause><clause id="ID1A2EBB3495514E41AB23AE0BBE885D48"><enum>(ii)</enum><text>the aggregate amount of leverage that rural business investment companies have received from the Federal Government during the previous fiscal year;</text> </clause><clause id="IDC2A5C12E29854CA1BE161096E07B0814"><enum>(iii)</enum><text>the aggregate number of each type of leveraged instruments used by rural business investment companies during the previous fiscal year and how each number compares to previous fiscal years;</text> </clause><clause id="ID3BB6EB70FFC943569992BD3C94378524"><enum>(iv)</enum><text>the number of rural business investment company licenses surrendered and the number of rural business investment companies placed in liquidation during the previous fiscal year, identifying the amount of leverage each rural business investment company has received from the Federal Government and the type of leverage instruments each rural business investment company has used;</text> </clause><clause id="ID122C58E59833471C971D78BB2689D5C4"><enum>(v)</enum><text>the amount of losses sustained by the Federal Government as a result of operations under this section during the previous fiscal year and an estimate of the total losses that the Federal Government can reasonably expect to incur as a result of the operations during the current fiscal year;</text> </clause><clause id="IDD687EB01CEB64194818A5BF6086995F8"><enum>(vi)</enum><text>actions taken by the Secretary to maximize recoupment of funds of the Federal Government expended to implement and administer the Rural Business Investment Program under this section during the previous fiscal year and to ensure compliance with the requirements of this section (including regulations);</text> </clause><clause id="IDF536CA0B28AA47ACB619A822540231A8"><enum>(vii)</enum><text>the amount of Federal Government leverage that each licensee received in the previous fiscal year and the types of leverage instruments each licensee used;</text> </clause><clause id="ID60AC8147B10A46DBA254BAFB9BAFDCAA"><enum>(viii)</enum><text>for each type of financing instrument, the sizes, types of geographic locations, and other characteristics of the small business investment companies using the instrument during the previous fiscal year, including the extent to which the investment companies have used the leverage from each instrument to make loans or equity investments in rural areas; and</text> </clause><clause id="IDABE41C72433C421B9130890F08D6D2B2"><enum>(ix)</enum><text>the actions of the Secretary to carry out this section</text> </clause></subparagraph><subparagraph id="ID01D1076D2EE44A6C8923588CB8A1CA27"><enum>(B)</enum><header>Prohibition</header><text>In compiling the report required under subparagraph (A), the Secretary may not—</text> <clause id="IDA337E516ABA54857B83417AFF3F2D04F"><enum>(i)</enum><text>compile the report in a manner that permits identification of any particular type of investment by an individual rural business investment company or small business concern in which a rural business investment company invests; or</text> </clause><clause id="ID67F401FD321C473FA303387FFDD3ACB8"><enum>(ii)</enum><text>release any information that is prohibited under section 1905 of title 18, United States Code.</text> </clause></subparagraph></paragraph></subsection><subsection id="id51b3fceb8ff44145b573ef1aa864ec3e"><enum>(m)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $25,000,000 for the period of fiscal years 2008 through 2017.</text> </subsection></section></chapter></subtitle>

General rural development provisions

3701.

General provisions for loans and grants

(a)

Period for repayment

Unless otherwise specifically provided for in this subtitle, the period for repayment of a loan under this subtitle shall not exceed 40 years. (b)

Interest rates

(1)

In general

Except as otherwise provided in this title, the interest rate on a loan under this subtitle shall be determined by the Secretary at a rate— (A)not to exceed a sum obtained by adding— (i)the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturity of the loan; and (ii)an amount not to exceed 1 percent, as determined by the Secretary; and (B)adjusted to the nearest 1/8 of 1 percent. (2)

Water and waste facility loans and community facilities loans

(A)

In general

Notwithstanding any provision of State law limiting the rate or amount of interest that may be charged, taken, received, or reserved, except as provided in subparagraph (C) and paragraph (5), the interest rate on a loan (other than a guaranteed loan) to a public body or nonprofit association (including an Indian tribe) for a water or waste disposal facility or essential community facility shall be determined by the Secretary at a rate not to exceed— (i)the current market yield on outstanding municipal obligations with remaining periods to maturity comparable to the average maturity for the loan, and adjusted to the nearest 1/8 of 1 percent; (ii)5 percent per year for a loan that is for the upgrading of a facility or construction of a new facility as required to meet applicable health or sanitary standards in— (I)an area in which the median family income of the persons to be served by the facility is below the poverty line (as defined in section 673 of the Community Services Block Grant Act (42 U.S.C. 9902)); and (II)any areas the Secretary may designate in which a significant percentage of the persons to be served by the facilities are low income persons, as determined by the Secretary; and (iii)7 percent per year for a loan for a facility that does not qualify for the 5 percent per year interest rate prescribed in clause (ii) but that is located in an area in a State in which the median household income of the persons to be served by the facility does not exceed 100 percent of the statewide nonmetropolitan median household income for the State. (B)

Health care and related facilities

Notwithstanding subparagraph (A), the Secretary shall establish a rate for a loan for a health care or related facility that is— (i)based solely on the income of the area to be served; and (ii)otherwise consistent with subparagraph (A). (C)

Interest rates for water and waste disposal facilities loans

(i)

In general

Except as provided in clause (ii) and notwithstanding subparagraph (A), in the case of a direct loan for a water or waste disposal facility— (I)in the case of a loan that would be subject to the 5 percent interest rate limitation under subparagraph (A), the Secretary shall establish the interest rate at a rate that is equal to 60 percent of the current market yield for outstanding municipal obligations with remaining periods to maturity comparable to the average maturity of the loan, adjusted to the nearest 1/8 of 1 percent; and (II)in the case of a loan that would be subject to the 7 percent limitation under subparagraph (A), the Secretary shall establish the interest rate at a rate that is equal to 80 percent of the current market yield for outstanding municipal obligations with remaining periods to maturity comparable to the average maturity of the loan, adjusted to the nearest 1/8 of 1 percent. (ii)

Exception

Clause (i) does not apply to a loan for a specific project that is the subject of a loan that has been approved, but not closed, as of the date of enactment of the Agriculture Reform, Food, and Jobs Act of 2012. (3)

Interest rates on business and other loans

(A)

In general

Except as provided in paragraph (4), the interest rates on loans under sections 3501(a)(1) (other than guaranteed loans and loans as described in paragraph (2)(A)) shall be as determined by the Secretary in accordance with subparagraph (B). (B)

Minimum rate

The interest rates described in subparagraph (A) shall be not less than the sum obtained by adding— (i)such rates as determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, adjusted in the judgment of the Secretary of the Treasury to provide for rates comparable to the rates prevailing in the private market for similar loans and considering the insurance by the Secretary of the loans; and (ii)an additional charge, prescribed by the Secretary, to cover the losses of the Secretary and cost of administration, which shall be deposited in the Rural Development Insurance Fund, and further adjusted to the nearest 1/8 of 1 percent. (4)

Interest rates adjustments

(A)

Adjustments

Notwithstanding any other provision of this subsection, in the case of loans (other than guaranteed loans) made or guaranteed under the authorities of this title specified in subparagraph (C) for activities that involve the use of prime farmland, the interest rates shall be the interest rates otherwise applicable under this section increased by 2 percent per year. (B)

Prime farmland

(i)

In general

Wherever practicable, construction by a State, municipality, or other political subdivision of local government that is supported by loans described in subparagraph (A) shall be placed on land that is not prime farmland, in order to preserve the maximum practicable quantity of prime farmlands for production of food and fiber. (ii)

Increased rate

In any case in which other options exist for the siting of construction described in clause (i) and the governmental authority still desires to carry out the construction on prime farmland, the 2-percent interest rate increase provided by this paragraph shall apply, but that increased interest rate shall not apply where such other options do not exist. (C)

Applicable authorities

The authorities referred to in subparagraph (A) are— (i)the provisions of section 3502(a) relating to loans for recreational developments and essential community facilities; (ii)section 3601(e)(2)(A); and (iii)section 3601(c). (c)

Payment of charges

A borrower of a loan made or guaranteed under this subtitle shall pay such fees and other charges as the Secretary may require, and prepay to the Secretary such taxes and insurance as the Secretary may require, on such terms and conditions as the Secretary may prescribe. (d)

Security

(1)

In general

The Secretary shall take as security for an obligation entered into in connection with a loan made under this subtitle such security as the Secretary may require. (2)

Liens to United States

An instrument for security under paragraph (1) may constitute a lien running to the United States notwithstanding the fact that the note for the security may be held by a lender other than the United States. (3)

Multiple loans

A borrower may use the same collateral to secure 2 or more loans made or guaranteed under this subtitle, except that the outstanding amount of the loans may not exceed the total value of the collateral. (e)

Legal counsel for small loans

In the case of a loan of less than $500,000 made or guaranteed under section 3501 that is evidenced by a note or mortgage (as distinguished from a bond issue), the borrower shall not be required to appoint bond counsel to review the legal validity of the loan if the Secretary has available legal counsel to perform the review.

3702.

Strategic economic and community development

(a)

Priority

In the case of any rural development program authorized by this subtitle, the Secretary may give priority to applications that are otherwise eligible and support strategic community and economic development plans on a multijurisdictional basis, as approved by the Secretary. (b)

Evaluation

In evaluating strategic applications, the Secretary shall give a higher priority to strategic applications for a plan described in subsection (a) that demonstrate— (1)the plan was developed through the collaboration of multiple stakeholders in the service area of the plan, including the participation of combinations of stakeholders such as State, local, and tribal governments, nonprofit institutions, institutions of higher education, and private entities; (2)an understanding of the applicable regional resources that could support the plan, including natural resources, human resources, infrastructure, and financial resources; (3)investment from other Federal agencies; (4)investment from philanthropic organizations; and (5)clear objectives for the plan and the ability to establish measurable performance measures and to track progress toward meeting the objectives.

3703.

Guaranteed rural development loans

(a)

In general

The Secretary may provide financial assistance to a borrower for a purpose provided in this subtitle by guaranteeing a loan made by any Federal or State chartered bank, savings and loan association, cooperative lending agency, or other legally organized lending agency. (b)

Interest rate

The interest rate payable by a borrower on the portion of a guaranteed loan that is sold by a lender to the secondary market under this subtitle may be lower than the interest rate charged on the portion retained by the lender. (c)

Maximum guarantee of 90 percent

Except as provided in subsections (d) and (e), a loan guarantee under this subtitle shall be for not more than 90 percent of the principal and interest due on the loan. (d)

Refinanced loans guaranteed at 95 percent

The Secretary shall guarantee 95 percent of— (1)in the case of a loan that solely refinances a direct loan made under this subtitle, the principal and interest due on the loan on the date of the refinancing; or (2)in the case of a loan that is used for multiple purposes, the portion of the loan that refinances the principal and interest due on a direct loan made under this subtitle that is outstanding on the date on which the loan is guaranteed. (e)

Risk of loss

(1)

In general

Subject to subsection (b), the Secretary may not make a loan under section 3501 or 3601 unless the Secretary determines that no other lender is willing to make the loan and assume 10 percent of the potential loss to be sustained from the loan. (2)

Exception for nonprofit groups

Paragraph (1) shall not apply to a public body or nonprofit association, including an Indian tribe.

3704.

Rural Development Insurance Fund

(a)

Definition of rural development loan

In this section, the term rural development loan means a loan provided for by section 3501 or 3601. (b)

Establishment

There is established in the Treasury of the United States a fund to be known as the Rural Development Insurance Fund that shall be used by the Secretary to discharge the obligations of the Secretary under contracts making or guaranteeing rural development loans.

3705.

Rural economic area partnership zones

(a)

In general

The Secretary may designate additional areas as rural economic area partnership zones to be assisted under this chapter— (1)through an open, competitive process; and (2)with priority given to rural areas— (A)with excessive unemployment or underemployment, a high percentage of low-income residents, or high rates of outmigration, as determined by the Secretary; and (B)that the Secretary determines have a substantial need for assistance. (b)

Requirements

The Secretary shall carry out those rural economic area partnership zones administratively in effect on the date of enactment of the Agriculture Reform, Food, and Jobs Act of 2012 in accordance with the terms and conditions contained in the memoranda of agreement entered into by the Secretary for the rural economic area partnership zones.

3706.

Streamlining applications and improving accessibility of rural development programs

The Secretary shall expedite the process of creating user-friendly and accessible application forms and procedures prioritizing programs and applications at the individual level with an emphasis on utilizing current technology including online applications and submission processes.

3707.

State Rural Development Partnership

(a)

Definitions

In this section: (1)

Agency with rural responsibilities

The term agency with rural responsibilities means any executive agency (as defined in section 105 of title 5, United States Code) that implements a Federal law, or administers a program, targeted at or having a significant impact on rural areas. (2)

Partnership

The term Partnership means the State Rural Development Partnership continued by subsection (b). (3)

State rural development council

The term State rural development council means a State rural development council that meets the requirements of subsection (c). (b)

Partnership

(1)

In general

The Secretary shall support the State Rural Development Partnership comprised of State rural development councils. (2)

Purposes

The purposes of the Partnership are to empower and build the capacity of States, regions, and rural communities to design flexible and innovative responses to their rural development needs in a manner that maximizes collaborative public- and private-sector cooperation and minimizes regulatory redundancy. (3)

Coordinating panel

A panel consisting of representatives of State rural development councils shall be established— (A)to lead and coordinate the strategic operation and policies of the Partnership; and (B)to facilitate effective communication among the members of the Partnership, including the sharing of best practices. (4)

Role of Federal government

The role of the Federal Government in the Partnership may be that of a partner and facilitator, with Federal agencies authorized— (A)to cooperate with States to implement the Partnership; (B)to provide States with the technical and administrative support necessary to plan and implement tailored rural development strategies to meet local needs; (C)to ensure that the head of each agency with rural responsibilities directs appropriate field staff to participate fully with the State rural development council within the jurisdiction of the field staff; and (D)to enter into cooperative agreements with, and to provide grants and other assistance to, State rural development councils. (c)

State rural development councils

(1)

Establishment

Notwithstanding chapter 63 of title 31, United States Code, each State may elect to participate in the Partnership by entering into an agreement with the Secretary to recognize a State rural development council. (2)

Composition

A State rural development council shall— (A)be composed of representatives of Federal, State, local, and tribal governments, nonprofit organizations, regional organizations, the private sector, and other entities committed to rural advancement; and (B)have a nonpartisan and nondiscriminatory membership that— (i)is broad and representative of the economic, social, and political diversity of the State; and (ii)shall be responsible for the governance and operations of the State rural development council. (3)

Duties

A State rural development council shall— (A)facilitate collaboration among Federal, State, local, and tribal governments and the private and nonprofit sectors in the planning and implementation of programs and policies that have an impact on rural areas of the State; (B)monitor, report, and comment on policies and programs that address, or fail to address, the needs of the rural areas of the State; (C)as part of the Partnership, facilitate the development of strategies to reduce or eliminate conflicting or duplicative administrative or regulatory requirements of Federal, State, local, and tribal governments; and (D)(i)provide to the Secretary an annual plan with goals and performance measures; and (ii)submit to the Secretary an annual report on the progress of the State rural development council in meeting the goals and measures. (4)

Federal participation in State rural development councils

(A)

In general

A State Director for Rural Development of the Department of Agriculture, other employees of the Department, and employees of other Federal agencies with rural responsibilities shall fully participate as voting members in the governance and operations of State rural development councils (including activities related to grants, contracts, and other agreements in accordance with this section) on an equal basis with other members of the State rural development councils. (B)

Conflicts

Participation by a Federal employee in a State rural development council in accordance with this paragraph shall not constitute a violation of section 205 or 208 of title 18, United States Code. (d)

Administrative support of the partnership

(1)

Detail of employees

(A)

In general

In order to provide experience in intergovernmental collaboration, the head of an agency with rural responsibilities that elects to participate in the Partnership may, and is encouraged to, detail to the Secretary for the support of the Partnership 1 or more employees of the agency with rural responsibilities without reimbursement for a period of up to 1 year. (B)

Civil service status

The detail shall be without interruption or loss of civil service status or privilege. (2)

Additional support

The Secretary may provide for any additional support staff to the Partnership as the Secretary determines to be necessary to carry out the duties of the Partnership. (3)

Intermediaries

The Secretary may enter into a contract with a qualified intermediary under which the intermediary shall be responsible for providing administrative and technical assistance to a State rural development council, including administering the financial assistance available to the State rural development council. (e)

Matching requirements for State rural development councils

(1)

In general

Except as provided in paragraph (2), a State rural development council shall provide matching funds, or in-kind goods or services, to support the activities of the State rural development council in an amount that is not less than 33 percent of the amount of Federal funds received from a Federal agency under subsection (f)(2). (2)

Exceptions to matching requirement for certain Federal funds

Paragraph (1) shall not apply to funds, grants, funds provided under contracts or cooperative agreements, gifts, contributions, or technical assistance received by a State rural development council from a Federal agency that are used— (A)to support 1 or more specific program or project activities; or (B)to reimburse the State rural development council for services provided to the Federal agency providing the funds, grants, funds provided under contracts or cooperative agreements, gifts, contributions, or technical assistance. (3)

Department's share

The Secretary shall develop a plan to decrease, over time, the share of the Department of Agriculture of the cost of the core operations of State rural development councils. (f)

Funding

(1)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2013 through 2017. (2)

Federal agencies

(A)

In general

Notwithstanding any other provision of law limiting the ability of an agency, along with other agencies, to provide funds to a State rural development council in order to carry out the purposes of this section, a Federal agency may make grants, gifts, or contributions to, provide technical assistance to, or enter into contracts or cooperative agreements with, a State rural development council. (B)

Assistance

Federal agencies are encouraged to use funds made available for programs that have an impact on rural areas to provide assistance to, and enter into contracts with, a State rural development council, as described in subparagraph (A). (3)

Contributions

A State rural development council may accept private contributions. (g)

Termination

The authority provided under this section shall terminate on September 30, 2017.

Delta Regional Authority

3801.

Definitions

In this chapter: (1)

Authority

The term Authority means the Delta Regional Authority established by section 3802. (2)

Federal grant program

The term Federal grant program means a Federal grant program to provide assistance in— (A)acquiring or developing land; (B)constructing or equipping a highway, road, bridge, or facility; or (C)carrying out other economic development activities. (3)

Region

The term region means the Lower Mississippi (as defined in section 4 of the Delta Development Act (42 U.S.C. 3121 note; Public Law 100–460)).

3802.

Delta Regional Authority

(a)

Establishment

(1)

In general

There is established the Delta Regional Authority. (2)

Composition

The Authority shall be composed of— (A)a Federal member, to be appointed by the President, with the advice and consent of the Senate; and (B)the Governor (or a designee of the Governor) of each State in the region that elects to participate in the Authority. (3)

Cochairpersons

The Authority shall be headed by— (A)the Federal member, who shall serve as— (i)the Federal cochairperson; and (ii)a liaison between the Federal Government and the Authority; and (B)a State cochairperson, who shall be— (i)a Governor of a participating State in the region; and (ii)elected by the State members for a term of not less than 1 year. (4)

Alabama

Notwithstanding any other provision of law, the State of Alabama shall be a full member of the Authority and shall be entitled to all rights and privileges that the membership affords to all other participating States in the Authority. (b)

Alternate members

(1)

State alternates

The State member of a participating State may have a single alternate, who shall be— (A)a resident of that State; and (B)appointed by the Governor of the State. (2)

Alternate Federal cochairperson

The President shall appoint an alternate Federal cochairperson. (3)

Quorum

A State alternate shall not be counted toward the establishment of a quorum of the Authority in any instance in which a quorum of the State members is required to be present. (4)

Delegation of power

No power or responsibility of the Authority specified in paragraphs (2) and (3) of subsection (c), and no voting right of any Authority member, shall be delegated to any person— (A)who is not an Authority member; or (B)who is not entitled to vote in Authority meetings. (c)

Voting

(1)

In general

A decision by the Authority shall require a majority vote of the Authority (not including any member representing a State that is delinquent under subsection (g)(2)(C)) to be effective. (2)

Quorum

A quorum of State members shall be required to be present for the Authority to make any policy decision, including— (A)a modification or revision of an Authority policy decision; (B)approval of a State or regional development plan; and (C)any allocation of funds among the States. (3)

Project and grant proposals

The approval of project and grant proposals shall be— (A)a responsibility of the Authority; and (B)conducted in accordance with section 3809. (4)

Voting by alternate members

An alternate member shall vote in the case of the absence, death, disability, removal, or resignation of the Federal or State representative for which the alternate member is an alternate. (d)

Duties

The Authority shall— (1)develop, on a continuing basis, comprehensive and coordinated plans and programs to establish priorities and approve grants for the economic development of the region, giving due consideration to other Federal, State, and local planning and development activities in the region; (2)review, and where appropriate amend, priorities in a development plan for the region (including 5-year regional outcome targets); (3)assess the needs and assets of the region based on available research, demonstrations, investigations, assessments, and evaluations of the region prepared by Federal, State, and local agencies, universities, local development districts, and other nonprofit groups; (4)formulate and recommend to the Governors and legislatures of States that participate in the Authority forms of interstate cooperation; (5)work with State and local agencies in developing appropriate model legislation; (6)(A)enhance the capacity of, and provide support for, local development districts in the region; or (B)if no local development district exists in an area in a participating State in the region, foster the creation of a local development district; (7)encourage private investment in industrial, commercial, and other economic development projects in the region; and (8)cooperate with and assist State governments with economic development programs of participating States. (e)

Administration

In carrying out subsection (d), the Authority may— (1)hold such hearings, sit and act at such times and places, take such testimony, receive such evidence, and print or otherwise reproduce and distribute a description of the proceedings and reports on actions by the Authority as the Authority considers appropriate; (2)authorize, through the Federal or State cochairperson or any other member of the Authority designated by the Authority, the administration of oaths if the Authority determines that testimony should be taken or evidence received under oath; (3)request from any Federal, State, or local department or agency such information as may be available to or procurable by the department or agency that may be of use to the Authority in carrying out duties of the Authority; (4)adopt, amend, and repeal bylaws, rules, and regulations governing the conduct of Authority business and the performance of Authority duties; (5)request the head of any Federal department or agency to detail to the Authority such personnel as the Authority requires to carry out duties of the Authority, each such detail to be without loss of seniority, pay, or other employee status; (6)request the head of any State department or agency or local government to detail to the Authority such personnel as the Authority requires to carry out duties of the Authority, each such detail to be without loss of seniority, pay, or other employee status; (7)provide for coverage of Authority employees in a suitable retirement and employee benefit system by— (A)making arrangements or entering into contracts with any participating State government; or (B)otherwise providing retirement and other employee benefit coverage; (8)accept, use, and dispose of gifts or donations of services or real, personal, tangible, or intangible property; (9)enter into and perform such contracts, leases, cooperative agreements, or other transactions as are necessary to carry out Authority duties, including any contracts, leases, or cooperative agreements with— (A)any department, agency, or instrumentality of the United States; (B)any State (including a political subdivision, agency, or instrumentality of the State); or (C)any person, firm, association, or corporation; and (10)establish and maintain a central office and field offices at such locations as the Authority may select. (f)

Federal agency cooperation

A Federal agency shall— (1)cooperate with the Authority; and (2)provide, on request of the Federal cochairperson, appropriate assistance in carrying out this chapter, in accordance with applicable Federal laws (including regulations). (g)

Administrative expenses

(1)

In general

Administrative expenses of the Authority (except for the expenses of the Federal cochairperson, including expenses of the alternate and staff of the Federal cochairperson, which shall be paid solely by the Federal Government) shall be paid— (A)by the Federal Government, in an amount equal to 50 percent of the administrative expenses; and (B)by the States in the region participating in the Authority, in an amount equal to 50 percent of the administrative expenses. (2)

State share

(A)

In general

The share of administrative expenses of the Authority to be paid by each State shall be determined by the Authority. (B)

No Federal participation

The Federal cochairperson shall not participate or vote in any decision under subparagraph (A). (C)

Delinquent States

If a State is delinquent in payment of the State’s share of administrative expenses of the Authority under this subsection— (i)no assistance under this chapter shall be furnished to the State (including assistance to a political subdivision or a resident of the State); and (ii)no member of the Authority from the State shall participate or vote in any action by the Authority. (h)

Compensation

(1)

Federal cochairperson

The Federal cochairperson shall be compensated by the Federal Government at level III of the Executive Schedule in subchapter II of chapter 53 of title 5, United States Code. (2)

Alternate Federal cochairperson

The alternate Federal cochairperson— (A)shall be compensated by the Federal Government at level V of the Executive Schedule described in paragraph (1); and (B)when not actively serving as an alternate for the Federal cochairperson, shall perform such functions and duties as are delegated by the Federal cochairperson. (3)

State members and alternates

(A)

In general

A State shall compensate each member and alternate representing the State on the Authority at the rate established by law of the State. (B)

No additional compensation

No State member or alternate member shall receive any salary, or any contribution to or supplementation of salary from any source other than the State for services provided by the member or alternate to the Authority. (4)

Detailed employees

(A)

In general

No person detailed to serve the Authority under subsection (e)(6) shall receive any salary or any contribution to or supplementation of salary for services provided to the Authority from— (i)any source other than the State, local, or intergovernmental department or agency from which the person was detailed; or (ii)the Authority. (B)

Violation

Any person that violates this paragraph shall be fined not more than $5,000, imprisoned not more than 1 year, or both. (C)

Applicable law

The Federal cochairperson, the alternate Federal cochairperson, and any Federal officer or employee detailed to duty on the Authority under subsection (e)(5) shall not be subject to subparagraph (A), but shall remain subject to sections 202 through 209 of title 18, United States Code. (5)

Additional personnel

(A)

Compensation

(i)

In general

The Authority may appoint and fix the compensation of an executive director and such other personnel as are necessary to enable the Authority to carry out the duties of the Authority. (ii)

Exception

Compensation under clause (i) shall not exceed the maximum rate for the Senior Executive Service under section 5382 of title 5, United States Code, including any applicable locality-based comparability payment that may be authorized under section 5304(h)(2)(C) of that title. (B)

Executive director

The executive director shall be responsible for— (i)the carrying out of the administrative duties of the Authority; (ii)direction of the Authority staff; and (iii)such other duties as the Authority may assign. (C)

No Federal employee status

No member, alternate, officer, or employee of the Authority (except the Federal cochairperson of the Authority, the alternate and staff for the Federal cochairperson, and any Federal employee detailed to the Authority under subsection (e)(5)) shall be considered to be a Federal employee for any purpose. (i)

Conflicts of interest

(1)

In general

Except as provided under paragraph (2), no State member, alternate, officer, or employee of the Authority shall participate personally and substantially as a member, alternate, officer, or employee of the Authority, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, in any proceeding, application, request for a ruling or other determination, contract, claim, controversy, or other matter in which, to knowledge of the member, alternate, officer, or employee, there is a financial interest of— (A)the member, alternate, officer, or employee; (B)the spouse, minor child, partner, or organization (other than a State or political subdivision of the State) of the member, alternate, officer, or employee, in which the member, alternate, officer, or employee is serving as officer, director, trustee, partner, or employee; or (C)any person or organization with whom the member, alternate, officer, or employee is negotiating or has any arrangement concerning prospective employment. (2)

Disclosure

Paragraph (1) shall not apply if the State member, alternate, officer, or employee— (A)immediately advises the Authority of the nature and circumstances of the proceeding, application, request for a ruling or other determination, contract, claim, controversy, or other particular matter presenting a potential conflict of interest; (B)makes full disclosure of the financial interest; and (C)before the proceeding concerning the matter presenting the conflict of interest, receives a written determination by the Authority that the interest is not so substantial as to be likely to affect the integrity of the services that the Authority may expect from the State member, alternate, officer, or employee. (3)

Violation

Any person that violates this subsection shall be fined not more than $10,000, imprisoned not more than 2 years, or both. (j)

Validity of contracts, loans, and grants

The Authority may declare void any contract, loan, or grant of or by the Authority in relation to which the Authority determines that there has been a violation of any provision under subsection (h)(4), subsection (i), or sections 202 through 209 of title 18, United States Code.

3803.

Economic and community development grants

(a)

In general

The Authority may approve grants to States and public and nonprofit entities for projects, approved in accordance with section 3809— (1)to develop the transportation infrastructure of the region for the purpose of facilitating economic development in the region (except that grants for this purpose may only be made to a State or local government); (2)to assist the region in obtaining the job training, employment-related education, and business development (with an emphasis on entrepreneurship) that are needed to build and maintain strong local economies; (3)to provide assistance to severely distressed and underdeveloped areas that lack financial resources for improving basic public services; (4)to provide assistance to severely distressed and underdeveloped areas that lack financial resources for equipping industrial parks and related facilities; and (5)to otherwise achieve the purposes of this chapter. (b)

Funding

(1)

In general

Funds for grants under subsection (a) may be provided— (A)entirely from appropriations to carry out this section; (B)in combination with funds available under another Federal or Federal grant program; or (C)from any other source. (2)

Priority of funding

To best build the foundations for long-term economic development and to complement other Federal and State resources in the region, Federal funds available under this chapter shall be focused on the activities in the following order or priority: (A)Basic public infrastructure in distressed counties and isolated areas of distress. (B)Transportation infrastructure for the purpose of facilitating economic development in the region. (C)Business development, with emphasis on entrepreneurship. (D)Job training or employment-related education, with emphasis on use of existing public educational institutions located in the region.

3804.

Supplements to Federal grant programs

(a)

Finding

Congress finds that certain States and local communities of the region, including local development districts, may be unable to take maximum advantage of Federal grant programs for which the States and communities are eligible because— (1)the States or communities lack the economic resources to provide the required matching share; or (2)there are insufficient funds available under the applicable Federal law authorizing the Federal grant program to meet pressing needs of the region. (b)

Federal grant program funding

Notwithstanding any provision of law limiting the Federal share, the areas eligible for assistance, or the authorizations of appropriations of any Federal grant program, and in accordance with subsection (c), the Authority, with the approval of the Federal cochairperson and with respect to a project to be carried out in the region— (1)may increase the Federal share of the costs of a project under the Federal grant program to not more than 90 percent (except as provided in section 3806(b)); and (2)shall use amounts made available to carry out this chapter to pay the increased Federal share. (c)

Certifications

(1)

In general

In the case of any project for which all or any portion of the basic Federal share of the costs of the project is proposed to be paid under this section, no Federal contribution shall be made until the Federal official administering the Federal law that authorizes the Federal grant program certifies that the project— (A)meets (except as provided in subsection (b)) the applicable requirements of the applicable Federal grant program; and (B)could be approved for Federal contribution under the Federal grant program if funds were available under the law for the project. (2)

Certification by authority

(A)

In general

The certifications and determinations required to be made by the Authority for approval of projects under this Act in accordance with section 3809 shall be— (i)controlling; and (ii)accepted by the Federal agencies. (B)

Acceptance by Federal cochairperson

In the case of any project described in paragraph (1), any finding, report, certification, or documentation required to be submitted with respect to the project to the head of the department, agency, or instrumentality of the Federal Government responsible for the administration of the Federal grant program under which the project is carried out shall be accepted by the Federal cochairperson.

3805.

Local development districts; certification and administrative expenses

(a)

Definition of local development district

In this section, the term local development district means an entity that— (1)is— (A)a planning district in existence on the date of enactment of the Agriculture Reform, Food, and Jobs Act of 2012 that is recognized by the Secretary; or (B)if an entity described in subparagraph (A) does not exist— (i)organized and operated in a manner that ensures broad-based community participation and an effective opportunity for other nonprofit groups to contribute to the development and implementation of programs in the region; (ii)governed by a policy board with at least a simple majority of members consisting of elected officials or employees of a general purpose unit of local government who have been appointed to represent the government; (iii)certified to the Authority as having a charter or authority that includes the economic development of counties or parts of counties or other political subdivisions within the region— (I)by the Governor of each State in which the entity is located; or (II)by the State officer designated by the appropriate State law to make the certification; and (iv)(I)a nonprofit incorporated body organized or chartered under the law of the State in which the entity is located; (II)a nonprofit agency or instrumentality of a State or local government; (III)a public organization established before December 21, 2000, under State law for creation of multi-jurisdictional, area-wide planning organizations; or (IV)a nonprofit association or combination of bodies, agencies, and instrumentalities described in subclauses (I) through (III); and (2)has not, as certified by the Federal cochairperson— (A)inappropriately used Federal grant funds from any Federal source; or (B)appointed an officer who, during the period in which another entity inappropriately used Federal grant funds from any Federal source, was an officer of the other entity. (b)

Grants to local development districts

(1)

In general

The Authority shall make grants for administrative expenses under this section. (2)

Conditions for grants

(A)

Maximum amount

The amount of any grant awarded under paragraph (1) shall not exceed 80 percent of the administrative expenses of the local development district receiving the grant. (B)

Maximum period

No grant described in paragraph (1) shall be awarded to a State agency certified as a local development district for a period greater than 3 years. (C)

Local share

The contributions of a local development district for administrative expenses may be in cash or in kind, fairly evaluated, including space, equipment, and services. (c)

Duties of local development districts

A local development district shall— (1)operate as a lead organization serving multicounty areas in the region at the local level; and (2)serve as a liaison between State and local governments, nonprofit organizations (including community-based groups and educational institutions), the business community, and citizens that— (A)are involved in multijurisdictional planning; (B)provide technical assistance to local jurisdictions and potential grantees; and (C)provide leadership and civic development assistance.

3806.

Distressed counties and areas and nondistressed counties

(a)

Designations

Each year, the Authority, in accordance with such criteria as the Authority may establish, shall designate— (1)as distressed counties, counties in the region that are the most severely and persistently distressed and underdeveloped and have high rates of poverty or unemployment; (2)as nondistressed counties, counties in the region that are not designated as distressed counties under paragraph (1); and (3)as isolated areas of distress, areas located in nondistressed counties (as designated under paragraph (2)) that have high rates of poverty or unemployment. (b)

Distressed counties

(1)

In general

The Authority shall allocate at least 75 percent of the appropriations made available under section 3813 for programs and projects designed to serve the needs of distressed counties and isolated areas of distress in the region. (2)

Funding limitations

The funding limitations under section 3804(b) shall not apply to a project providing transportation or basic public services to residents of 1 or more distressed counties or isolated areas of distress in the region. (c)

Nondistressed counties

(1)

In general

Except as provided in this subsection, no funds shall be provided under this chapter for a project located in a county designated as a nondistressed county under subsection (a)(2). (2)

Exceptions

(A)

In general

The funding prohibition under paragraph (1) shall not apply to grants to fund the administrative expenses of local development districts under section 3805(b). (B)

Multicounty projects

The Authority may waive the application of the funding prohibition under paragraph (1) to a multicounty project that includes participation by a nondistressed county; or any other type of project if the Authority determines that the project could bring significant benefits to areas of the region outside a nondistressed county. (C)

Isolated areas of distress

For a designation of an isolated area of distress for assistance to be effective, the designation shall be supported— (i)by the most recent Federal data available; or (ii)if no recent Federal data are available, by the most recent data available through the government of the State in which the isolated area of distress is located. (d)

Transportation and basic public infrastructure

The Authority shall allocate at least 50 percent of any funds made available under section 3813 for transportation and basic public infrastructure projects authorized under paragraphs (1) and (3) of section 3803(a).

3807.

Development planning process

(a)

State development plan

In accordance with policies established by the Authority, each State member shall submit a development plan for the area of the region represented by the State member. (b)

Content of plan

A State development plan submitted under subsection (a) shall reflect the goals, objectives, and priorities identified in the regional development plan developed under section 3802(d)(2). (c)

Consultation with interested local parties

In carrying out the development planning process (including the selection of programs and projects for assistance), a State may— (1)consult with— (A)local development districts; and (B)local units of government; and (2)take into consideration the goals, objectives, priorities, and recommendations of the entities described in paragraph (1). (d)

Public participation

(1)

In general

The Authority and applicable State and local development districts shall encourage and assist, to the maximum extent practicable, public participation in the development, revision, and implementation of all plans and programs under this chapter. (2)

Regulations

The Authority shall develop guidelines for providing public participation described in paragraph (1), including public hearings.

3808.

Program development criteria

(a)

In general

In considering programs and projects to be provided assistance under this chapter and in establishing a priority ranking of the requests for assistance provided by the Authority, the Authority shall follow procedures that ensure, to the maximum extent practicable, consideration of— (1)the relationship of the project or class of projects to overall regional development; (2)the per capita income and poverty and unemployment rates in an area; (3)the financial resources available to the applicants for assistance seeking to carry out the project, with emphasis on ensuring that projects are adequately financed to maximize the probability of successful economic development; (4)the importance of the project or class of projects in relation to other projects or classes of projects that may be in competition for the same funds; (5)the prospects that the project for which assistance is sought will improve, on a continuing rather than a temporary basis, the opportunities for employment, the average level of income, or the economic development of the area served by the project; and (6)the extent to which the project design provides for detailed outcome measurements by which grant expenditures and the results of the expenditures may be evaluated. (b)

No relocation assistance

(1)

In general

Except as provided in paragraph (2), no financial assistance authorized by this chapter shall be used to assist a person or entity in relocating from 1 area to another. (2)

Outside businesses

Financial assistance under this chapter may be used as otherwise authorized by this title to attract businesses from outside the region to the region. (c)

Reduction of funds

Funds may be provided for a program or project in a State under this chapter only if the Authority determines that the level of Federal or State financial assistance provided under a law other than this chapter, for the same type of program or project in the same area of the State within the region, will not be reduced as a result of funds made available by this chapter.

3809.

Approval of development plans and projects

(a)

In general

A State or regional development plan or any multistate subregional plan that is proposed for development under this chapter shall be reviewed and approved by the Authority. (b)

Evaluation by State member

An application for a grant or any other assistance for a project under this chapter shall be made through and evaluated for approval by the State member of the Authority representing the applicant. (c)

Certification

An application for a grant or other assistance for a project shall be approved only on certification by the State member that the application for the project— (1)describes ways in which the project complies with any applicable State development plan; (2)meets applicable criteria under section 3808; (3)provides adequate assurance that the proposed project will be properly administered, operated, and maintained; and (4)otherwise meets the requirements of this chapter. (d)

Approval of grant applications

On certification by a State member of the Authority of an application for a grant or other assistance for a specific project under this section, an affirmative vote of the Authority under section 3802(c) shall be required for approval of the application.

3810.

Consent of States

Nothing in this chapter requires any State to engage in or accept any program under this chapter without the consent of the State.

3811.

Records

(a)

Records of the authority

(1)

In general

The Authority shall maintain accurate and complete records of all transactions and activities of the Authority. (2)

Availability

All records of the Authority shall be available for audit and examination by the Comptroller General of the United States and the Inspector General of the Department of Agriculture (including authorized representatives of the Comptroller General and the Inspector General of the Department of Agriculture). (b)

Records of recipients of Federal assistance

(1)

In general

A recipient of Federal funds under this chapter shall, as required by the Authority, maintain accurate and complete records of transactions and activities financed with Federal funds and report on the transactions and activities to the Authority. (2)

Availability

All records required under paragraph (1) shall be available for audit by the Comptroller General of the United States, the Inspector General of the Department of Agriculture, and the Authority (including authorized representatives of the Comptroller General, the Inspector General of the Department of Agriculture, and the Authority).

3812.

Annual report

Not later than 180 days after the end of each fiscal year, the Authority shall submit to the President and to Congress a report describing the activities carried out under this chapter.

3813.

Authorization of appropriations

(a)

In general

There is authorized to be appropriated to the Authority to carry out this chapter $30,000,000 for each of fiscal years 2012 through 2017, to remain available until expended. (b)

Administrative expenses

Not more than 5 percent of the amount appropriated under subsection (a) for a fiscal year shall be used for administrative expenses of the Authority.

3814.

Termination of authority

This chapter and the authority provided under this chapter expire on October 1, 2017.

Northern Great Plains Regional Authority

3821.

Definitions

In this chapter: (1)

Authority

The term Authority means the Northern Great Plains Regional Authority established by section 3822. (2)

Federal grant program

The term Federal grant program means a Federal grant program to provide assistance in— (A)implementing the recommendations of the Northern Great Plains Rural Development Commission established by the Northern Great Plains Rural Development Act (7 U.S.C. 2661 note; Public Law 103–318); (B)acquiring or developing land; (C)constructing or equipping a highway, road, bridge, or facility; (D)carrying out other economic development activities; or (E)conducting research activities related to the activities described in subparagraphs (A) through (D). (3)

Region

The term region means the States of Iowa, Minnesota, Missouri (other than counties included in the Delta Regional Authority), Nebraska, North Dakota, and South Dakota.

3822.

Northern Great Plains Regional Authority

(a)

Establishment

(1)

In general

There is established the Northern Great Plains Regional Authority. (2)

Composition

The Authority shall be composed of— (A)a Federal member, to be appointed by the President, by and with the advice and consent of the Senate; (B)the Governor (or a designee of the Governor) of each State in the region that elects to participate in the Authority; and (C)a member of an Indian tribe, who shall be a chairperson of an Indian tribe in the region or a designee of such a chairperson, to be appointed by the President, by and with the advice and consent of the Senate. (3)

Cochairpersons

The Authority shall be headed by— (A)the Federal member, who shall serve as— (i)the Federal cochairperson; and (ii)a liaison between the Federal Government and the Authority; (B)a State cochairperson, who shall be— (i)a Governor of a participating State in the region; and (ii)elected by the State members for a term of not less than 1 year; and (C)the member of an Indian tribe, who shall serve as— (i)the tribal cochairperson; and (ii)a liaison between the governments of Indian tribes in the region and the Authority. (4)

Failure to confirm

(A)

Federal member

Notwithstanding any other provision of this section, if a Federal member described in paragraph (2)(A) has not been confirmed by the Senate by not later than 180 days after the date of enactment of the Agriculture Reform, Food, and Jobs Act of 2012, the Authority may organize and operate without the Federal member. (B)

Tribal cochairperson

In the case of the tribal cochairperson, if no tribal cochairperson is confirmed by the Senate, the regional authority shall consult and coordinate with the leaders of Indian tribes in the region concerning the activities of the Authority, as appropriate. (b)

Alternate members

(1)

Alternate Federal cochairperson

The President shall appoint an alternate Federal cochairperson. (2)

State alternates

(A)

In general

The State member of a participating State may have a single alternate, who shall be— (i)a resident of that State; and (ii)appointed by the Governor of the State. (B)

Quorum

A State alternate member shall not be counted toward the establishment of a quorum of the members of the Authority in any case in which a quorum of the State members is required to be present. (3)

Alternate tribal cochairperson

The President shall appoint an alternate tribal cochairperson, by and with the advice and consent of the Senate. (4)

Delegation of power

No power or responsibility of the Authority specified in paragraphs (2) and (3) of subsection (c), and no voting right of any member of the Authority, shall be delegated to any person who is not— (A)a member of the Authority; or (B)entitled to vote in Authority meetings. (c)

Voting

(1)

In general

A decision by the Authority shall require a majority vote of the Authority (not including any member representing a State that is delinquent under subsection (g)(2)(D)) to be effective. (2)

Quorum

Project and grant proposals

The approval of project and grant proposals shall be— (A)a responsibility of the Authority; and (B)conducted in accordance with section 3830. (4)

Voting by alternate members

An alternate member shall vote in the case of the absence, death, disability, removal, or resignation of the Federal, State, or Indian tribe member for whom the alternate member is an alternate. (d)

Duties

The Authority shall— (1)develop, on a continuing basis, comprehensive and coordinated plans and programs for multistate cooperation to advance the economic and social well-being of the region and to approve grants for the economic development of the region, giving due consideration to other Federal, State, tribal, and local planning and development activities in the region; (2)review, and when appropriate amend, priorities in a development plan for the region (including 5-year regional outcome targets); (3)assess the needs and assets of the region based on available research, demonstrations, investigations, assessments, and evaluations of the region prepared by Federal, State, tribal, and local agencies, universities, regional and local development districts or organizations, and other nonprofit groups; (4)formulate and recommend to the Governors and legislatures of States that participate in the Authority forms of interstate cooperation for— (A)renewable energy development and transmission; (B)transportation planning and economic development; (C)information technology; (D)movement of freight and individuals within the region; (E)federally-funded research at institutions of higher education; and (F)conservation land management; (5)work with State, tribal, and local agencies in developing appropriate model legislation; (6)enhance the capacity of, and provide support for, multistate development and research organizations, local development organizations and districts, and resource conservation districts in the region; (7)encourage private investment in industrial, commercial, renewable energy, and other economic development projects in the region; and (8)cooperate with and assist State governments with economic development programs of participating States. (e)

Administration

In carrying out subsection (d), the Authority may— (1)hold such hearings, sit and act at such times and places, take such testimony, receive such evidence, and print or otherwise reproduce and distribute a description of the proceedings and reports on actions by the Authority as the Authority considers appropriate; (2)authorize, through the Federal, State, or tribal cochairperson or any other member of the Authority designated by the Authority, the administration of oaths if the Authority determines that testimony should be taken or evidence received under oath; (3)request from any Federal, State, tribal, or local agency such information as may be available to or procurable by the agency that may be of use to the Authority in carrying out the duties of the Authority; (4)adopt, amend, and repeal bylaws and rules governing the conduct of business and the performance of duties of the Authority; (5)request the head of any Federal agency to detail to the Authority such personnel as the Authority requires to carry out duties of the Authority, each such detail to be without loss of seniority, pay, or other employee status; (6)request the head of any State agency, tribal government, or local government to detail to the Authority such personnel as the Authority requires to carry out duties of the Authority, each such detail to be without loss of seniority, pay, or other employee status; (7)provide for coverage of Authority employees in a suitable retirement and employee benefit system by— (A)making arrangements or entering into contracts with any participating State government or tribal government; or (B)otherwise providing retirement and other employee benefit coverage; (8)accept, use, and dispose of gifts or donations of services or real, personal, tangible, or intangible property; (9)enter into and perform such contracts, leases, cooperative agreements, or other transactions as are necessary to carry out Authority duties, including any contracts, leases, or cooperative agreements with— (A)any department, agency, or instrumentality of the United States; (B)any State (including a political subdivision, agency, or instrumentality of the State); (C)any Indian tribe in the region; or (D)any person, firm, association, or corporation; and (10)establish and maintain a central office and field offices at such locations as the Authority may select. (f)

Federal agency cooperation

A Federal agency shall— (1)cooperate with the Authority; and (2)provide, on request of a cochairperson, appropriate assistance in carrying out this chapter, in accordance with applicable Federal laws (including regulations). (g)

Administrative expenses

(1)

Federal share

The Federal share of the administrative expenses of the Authority shall be— (A)for each of fiscal years 2012 and 2013, 100 percent; (B)for fiscal year 2014, 75 percent; and (C)for fiscal year 2015 and each fiscal year thereafter, 50 percent. (2)

Non-Federal share

(A)

In general

The non-Federal share of the administrative expenses of the Authority shall be paid by non-Federal sources in the States that participate in the Authority. (B)

Share paid by each State

The share of administrative expenses of the Authority to be paid by non-Federal sources in each State shall be determined by the Authority. (C)

No Federal participation

The Federal cochairperson shall not participate or vote in any decision under subparagraph (B). (D)

Delinquent States

If a State is delinquent in payment of the State’s share of administrative expenses of the Authority under this subsection— (i)no assistance under this chapter shall be provided to the State (including assistance to a political subdivision or a resident of the State); and (ii)no member of the Authority from the State shall participate or vote in any action by the Authority. (h)

Compensation

(1)

Federal and tribal cochairpersons

The Federal cochairperson and the tribal cochairperson shall be compensated by the Federal Government at the annual rate of basic pay prescribed for level III of the Executive Schedule in subchapter II of chapter 53 of title 5, United States Code. (2)

Alternate Federal and tribal cochairpersons

The alternate Federal cochairperson and the alternate tribal cochairperson— (A)shall be compensated by the Federal Government at the annual rate of basic pay prescribed for level V of the Executive Schedule described in paragraph (1); and (B)when not actively serving as an alternate, shall perform such functions and duties as are delegated by the Federal cochairperson or the tribal cochairperson, respectively. (3)

State members and alternates

(A)

In general

A State shall compensate each member and alternate representing the State on the Authority at the rate established by State law. (B)

No additional compensation

Detailed employees

(A)

In general

No person detailed to serve the Authority under subsection (e)(6) shall receive any salary or any contribution to or supplementation of salary for services provided to the Authority from— (i)any source other than the State, tribal, local, or intergovernmental agency from which the person was detailed; or (ii)the Authority. (B)

Violation

Any person that violates this paragraph shall be fined not more than $5,000, imprisoned not more than 1 year, or both. (C)

Applicable law

Additional personnel

(A)

Compensation

(i)

In general

The Authority may appoint and fix the compensation of an executive director and such other personnel as are necessary to enable the Authority to carry out the duties of the Authority. (ii)

Exception

Executive director

No Federal employee status

Conflicts of interest

(1)

In general

Except as provided under paragraph (2), no State member, Indian tribe member, State alternate, officer, or employee of the Authority shall participate personally and substantially as a member, alternate, officer, or employee of the Authority, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, in any proceeding, application, request for a ruling or other determination, contract, claim, controversy, or other matter in which, to knowledge of the member, alternate, officer, or employee, there is a financial interest of— (A)the member, alternate, officer, or employee; (B)the spouse, minor child, partner, or organization (other than a State or political subdivision of the State or the Indian tribe) of the member, alternate, officer, or employee, in which the member, alternate, officer, or employee is serving as officer, director, trustee, partner, or employee; or (C)any person or organization with whom the member, alternate, officer, or employee is negotiating or has any arrangement concerning prospective employment. (2)

Disclosure

Paragraph (1) shall not apply if the State member, Indian tribe member, alternate, officer, or employee— (A)immediately advises the Authority of the nature and circumstances of the proceeding, application, request for a ruling or other determination, contract, claim, controversy, or other particular matter presenting a potential conflict of interest; (B)makes full disclosure of the financial interest; and (C)before the proceeding concerning the matter presenting the conflict of interest, receives a written determination by the Authority that the interest is not so substantial as to be likely to affect the integrity of the services that the Authority may expect from the State member, Indian tribe member, alternate, officer, or employee. (3)

Violation

Any person that violates this subsection shall be fined not more than $10,000, imprisoned not more than 2 years, or both. (j)

Validity of contracts, loans, and grants

The Authority may declare void any contract, loan, or grant of or by the Authority in relation to which the Authority determines that there has been a violation of any provision under subsection (h)(4) or subsection (i) of this chapter, or sections 202 through 209 of title 18, United States Code.

3823.

Interstate cooperation for economic opportunity and efficiency

(a)

In general

The Authority shall provide assistance to States in developing regional plans to address multistate economic issues, including plans— (1)to develop a regional transmission system for movement of renewable energy to markets outside the region; (2)to address regional transportation concerns, including the establishment of a Northern Great Plains Regional Transportation Working Group; (3)to encourage and support interstate collaboration on federally-funded research that is in the national interest; and (4)to establish a Regional Working Group on Agriculture Development and Transportation. (b)

Economic issues

The multistate economic issues referred to in subsection (a) shall include— (1)renewable energy development and transmission; (2)transportation planning and economic development; (3)information technology; (4)movement of freight and individuals within the region; (5)federally-funded research at institutions of higher education; and (6)conservation land management.

3824.

Economic and community development grants

(a)

In general

The Authority may approve grants to States, Indian tribes, local governments, and public and nonprofit organizations for projects, approved in accordance with section 3830— (1)to assist the region in obtaining the job training, employment-related education, and business development (with an emphasis on entrepreneurship) that are needed to build and maintain strong local economies; (2)to develop the transportation, renewable energy transmission, and telecommunication infrastructure of the region for the purpose of facilitating economic development in the region (except that grants for this purpose may be made only to States, Indian tribes, local governments, and nonprofit organizations); (3)to provide assistance to severely distressed and underdeveloped areas that lack financial resources for improving basic public services; (4)to provide assistance to severely distressed and underdeveloped areas that lack financial resources for equipping industrial parks and related facilities; and (5)to otherwise achieve the purposes of this chapter. (b)

Funding

(1)

In general

Priority of funding

To best build the foundations for long-term economic development and to complement other Federal, State, and tribal resources in the region, Federal funds available under this chapter shall be focused on the following activities: (A)Basic public infrastructure in distressed counties and isolated areas of distress. (B)Transportation and telecommunication infrastructure for the purpose of facilitating economic development in the region. (C)Business development, with emphasis on entrepreneurship. (D)Job training or employment-related education, with emphasis on use of existing public educational institutions located in the region.

3825.

Supplements to Federal grant programs

(a)

Finding

Congress finds that certain States and local communities of the region may be unable to take maximum advantage of Federal grant programs for which the States and communities are eligible because— (1)the States and communities lack the economic resources to provide the required matching share; or (2)there are insufficient funds available under the applicable Federal law authorizing the Federal grant program to meet pressing needs of the region. (b)

Federal grant program funding

Notwithstanding any provision of law limiting the Federal share, the areas eligible for assistance, or the authorizations of appropriations, under any Federal grant program, and in accordance with subsection (c), the Authority, with the approval of the Federal cochairperson and with respect to a project to be carried out in the region— (1)may increase the Federal share of the costs of a project under any Federal grant program to not more than 90 percent (except as provided in section 3827(b)); and (2)shall use amounts made available to carry out this chapter to pay the increased Federal share. (c)

Certifications

(1)

In general

Certification by authority

(A)

In general

The certifications and determinations required to be made by the Authority for approval of projects under this Act in accordance with section 3830 shall be— (i)controlling; and (ii)accepted by the Federal agencies. (B)

Acceptance by Federal cochairperson

3826.

Multistate and local development districts and organizations and Northern Great Plains Inc

(a)

Definition of multistate and local development district or organization

In this section, the term multistate and local development district or organization means an entity— (1)that— (A)is a planning district that is recognized by the Economic Development Administration of the Department of Commerce; or (B)is— (i)organized and operated in a manner that ensures broad-based community participation and an effective opportunity for other nonprofit groups to contribute to the development and implementation of programs in the region; (ii)a nonprofit incorporated body organized or chartered under the law of the State in which the entity is located; (iii)a nonprofit agency or instrumentality of a State or local government; (iv)a public organization established before the date of enactment of the Agriculture Reform, Food, and Jobs Act of 2012 under State law for creation of multijurisdictional, area-wide planning organizations; (v)a nonprofit agency or instrumentality of a State that was established for the purpose of assisting with multistate cooperation; or (vi)a nonprofit association or combination of bodies, agencies, and instrumentalities described in clauses (ii) through (v); and (2)that has not, as certified by the Authority (in consultation with the Federal cochairperson or Secretary, as appropriate)— (A)inappropriately used Federal grant funds from any Federal source; or (B)appointed an officer who, during the period in which another entity inappropriately used Federal grant funds from any Federal source, was an officer of the other entity. (b)

Grants to multistate, local, or regional development districts and organizations

(1)

In general

The Authority may make grants for administrative expenses under this section to multistate, local, and regional development districts and organizations. (2)

Conditions for grants

(A)

Maximum amount

The amount of any grant awarded under paragraph (1) shall not exceed 80 percent of the administrative expenses of the multistate, local, or regional development district or organization receiving the grant. (B)

Maximum period

No grant described in paragraph (1) shall be awarded for a period of greater than 3 years. (3)

Local share

The contributions of a multistate, local, or regional development district or organization for administrative expenses may be in cash or in kind, fairly evaluated, including space, equipment, and services. (c)

Duties

(1)

In general

Except as provided in paragraph (2), a local development district shall operate as a lead organization serving multicounty areas in the region at the local level. (2)

Designation

The Federal cochairperson may designate an Indian tribe or multijurisdictional organization to serve as a lead organization in such cases as the Federal cochairperson or Secretary, as appropriate, determines appropriate. (d)

Northern Great Plains Inc

Northern Great Plains Inc., a nonprofit corporation incorporated in the State of Minnesota to implement the recommendations of the Northern Great Plains Rural Development Commission established by the Northern Great Plains Rural Development Act (7 U.S.C. 2661 note; Public Law 103–318)— (1)shall serve as an independent, primary resource for the Authority on issues of concern to the region; (2)shall advise the Authority on development of international trade; (3)may provide research, education, training, and other support to the Authority; and (4)may carry out other activities on its own behalf or on behalf of other entities.

3827.

Distressed counties and areas and nondistressed counties

(a)

Designations

Each year, the Authority, in accordance with such criteria as the Authority may establish, shall designate— (1)as distressed counties, counties in the region that are the most severely and persistently distressed and underdeveloped and have high rates of poverty, unemployment, or outmigration; (2)as nondistressed counties, counties in the region that are not designated as distressed counties under paragraph (1); and (3)as isolated areas of distress, areas located in nondistressed counties (as designated under paragraph (2)) that have high rates of poverty, unemployment, or outmigration. (b)

Distressed counties

(1)

In general

The Authority shall allocate at least 50 percent of the appropriations made available under section 3834 for programs and projects designed to serve the needs of distressed counties and isolated areas of distress in the region. (2)

Funding limitations

The funding limitations under section 3825(b) shall not apply to a project to provide transportation or telecommunication or basic public services to residents of 1 or more distressed counties or isolated areas of distress in the region. (c)

Transportation, telecommunication, renewable energy, and basic public infrastructure

The Authority shall allocate at least 50 percent of any funds made available under section 3834 for transportation, telecommunication, renewable energy, and basic public infrastructure projects authorized under paragraphs (1) and (3) of section 3824(a).

3828.

Development planning process

(a)

State development plan

In accordance with policies established by the Authority, each State member shall submit a development plan for the area of the region represented by the State member. (b)

Content of plan

A State development plan submitted under subsection (a) shall reflect the goals, objectives, and priorities identified in the regional development plan developed under section 3823(d)(2). (c)

Consultation with interested local parties

In carrying out the development planning process (including the selection of programs and projects for assistance), a State may— (1)consult with— (A)multistate, regional, and local development districts and organizations; and (B)local units of government; and (2)take into consideration the goals, objectives, priorities, and recommendations of the entities described in paragraph (1). (d)

Public participation

(1)

In general

The Authority and applicable multistate, regional, and local development districts and organizations shall encourage and assist, to the maximum extent practicable, public participation in the development, revision, and implementation of all plans and programs under this chapter. (2)

Regulations

The Authority shall develop guidelines for providing public participation described in paragraph (1), including public hearings.

3829.

Program development criteria

(a)

In general

In considering programs and projects to be provided assistance under this chapter, and in establishing a priority ranking of the requests for assistance provided to the Authority, the Authority shall follow procedures that ensure, to the maximum extent practicable, consideration of— (1)the relationship of the project or class of projects to overall multistate or regional development; (2)the per capita income and poverty and unemployment and outmigration rates in an area; (3)the financial resources available to the applicants for assistance seeking to carry out the project, with emphasis on ensuring that projects are adequately financed to maximize the probability of successful economic development; (4)the importance of the project or class of projects in relation to other projects or classes of projects that may be in competition for the same funds; (5)the prospects that the project for which assistance is sought will improve, on a continuing rather than a temporary basis, the opportunities for employment, the average level of income, or the economic development of the area to be served by the project; and (6)the extent to which the project design provides for detailed outcome measurements by which grant expenditures and the results of the expenditures may be evaluated. (b)

No relocation assistance

(1)

In general

Except as provided in paragraph (2), no financial assistance authorized by this chapter shall be used to assist a person or entity in relocating from 1 area to another. (2)

Outside businesses

Financial assistance under this chapter may be used as otherwise authorized by this title to attract businesses from outside the region to the region. (c)

Maintenance of effort

3830.

Approval of development plans and projects

(a)

In general

A State or regional development plan or any multistate subregional plan that is proposed for development under this chapter shall be reviewed by the Authority. (b)

Evaluation by State member

Certification

An application for a grant or other assistance for a project shall be approved only on certification by the State member that the application for the project— (1)describes ways in which the project complies with any applicable State development plan; (2)meets applicable criteria under section 3829; (3)provides adequate assurance that the proposed project will be properly administered, operated, and maintained; and (4)otherwise meets the requirements of this chapter. (d)

Votes for decisions

On certification by a State member of the Authority of an application for a grant or other assistance for a specific project under this section, an affirmative vote of the Authority under section 3822(c) shall be required for approval of the application.

3831.

Consent of States

Nothing in this chapter requires any State to engage in or accept any program under this chapter without the consent of the State.

3832.

Records

(a)

Records of the authority

(1)

In general

The Authority shall maintain accurate and complete records of all transactions and activities of the Authority. (2)

Availability

Records of recipients of Federal assistance

(1)

In general

A recipient of Federal funds under this chapter shall, as required by the Authority, maintain accurate and complete records of transactions and activities financed with Federal funds and report to the Authority on the transactions and activities to the Authority. (2)

Availability

Annual audit

The Inspector General of the Department of Agriculture shall audit the activities, transactions, and records of the Authority on an annual basis.

3833.

Annual report

Not later than 180 days after the end of each fiscal year, the Authority shall submit to the President and to Congress a report describing the activities carried out under this chapter.

3834.

Authorization of appropriations

(a)

In general

There is authorized to be appropriated to the Authority to carry out this chapter $30,000,000 for each of fiscal years 2012 through 2017, to remain available until expended. (b)

Administrative expenses

Not more than 5 percent of the amount appropriated under subsection (a) for a fiscal year shall be used for administrative expenses of the Authority. (c)

Minimum State share of grants

Notwithstanding any other provision of this chapter, for any fiscal year, the aggregate amount of grants received by a State and all persons or entities in the State under this chapter shall be not less than 1/3 of the product obtained by multiplying— (1)the aggregate amount of grants under this chapter for the fiscal year; and (2)the ratio that— (A)the population of the State (as determined by the Secretary of Commerce based on the most recent decennial census for which data are available); bears to (B)the population of the region (as so determined).

3835.

Termination of authority

The authority provided by this chapter terminates effective October 1, 2017.

General provisions

3901.

Full faith and credit

(a)

In general

A contract of insurance or guarantee executed by the Secretary under this title shall be an obligation supported by the full faith and credit of the United States. (b)

Contestability

A contract of insurance or guarantee executed by the Secretary under this title shall be incontestable except for fraud or misrepresentation that the lender or any holder— (1)has actual knowledge of at the time the contract of insurance or guarantee is executed; or (2)participates in or condones.

3902.

Purchase and sale of guaranteed portions of loans

(a)

In general

Subject to subsections (b) and (c), the Secretary may purchase, on such terms and conditions as the Secretary considers appropriate, the guaranteed portion of a loan guaranteed under this title, if the Secretary determines that an adequate secondary market is not available in the private sector. (b)

Maximum payment

The Secretary may not pay for any guaranteed portion of a loan under subsection (a) in excess of an amount equal to the unpaid principal balance and accrued interest on the guaranteed portion of the loan. (c)

Sources of funding

The Secretary may use for the purchases— (1)funds from the Rural Development Insurance Fund with respect to rural development loans (as defined in section 3704(a)); and (2)funds from the Agricultural Credit Insurance Fund with respect to all other loans under this title. (d)

Sale of guaranteed loans

(1)

Sales

(A)

Regulation

(i)

In general

The guaranteed portion of any loan made under this title may be sold by the lender, and by any subsequent holder, in accordance with such regulations governing the sales as the Secretary shall establish, subject to clauses (ii) and (iii). (ii)

Fees to be paid in full

All fees due the Secretary with respect to a guaranteed loan shall be paid in full before any sale. (iii)

Loan to be fully disbursed

The loan shall be fully disbursed to the borrower before the sale. (B)

Post-sale

After a loan is sold in the secondary market, the lender shall— (i)remain obligated under the guarantee agreement of the lender with the Secretary; and (ii)continue to service the loan in accordance with the terms and conditions of that agreement. (C)

Procedures

The Secretary shall develop such procedures as are necessary for— (i)the facilitation, administration, and promotion of secondary market operations; and (ii)determining the increase of access of farmers to capital at reasonable rates and terms as a result of secondary market operations. (D)

Rights to prepay

This subsection does not impede or extinguish— (i)the right of the borrower or the successor in interest to the borrower to prepay (in whole or in part) any loan made under this title; or (ii)the rights of any party under any provision of this title. (2)

Issue pool certificates

(A)

In general

The Secretary may, directly or through a market maker approved by the Secretary, issue pool certificates representing ownership of part or all of the guaranteed portion of any loan guaranteed by the Secretary under this title. (B)

Approval

Certificates under subparagraph (A) shall be based on and backed by a pool established or approved by the Secretary and composed solely of the entire guaranteed portion of the loans. (C)

Guarantee of pool

On such terms and conditions as the Secretary considers appropriate, the Secretary may guarantee the timely payment of the principal and interest on pool certificates issued on behalf of the Secretary by approved market makers for purposes of this subsection. (D)

Limitations

A guarantee under subparagraph (C) shall be limited to the extent of principal and interest on the guaranteed portions of loans that compose the pool. (E)

Prepayment

If a loan in a pool is prepaid, either voluntarily or by reason of default, the guarantee of timely payment of principal and interest on the pool certificates shall be reduced in proportion to the amount of principal and interest that the prepaid loan represents in the pool. (F)

Interest accrual

Interest on prepaid or defaulted loans shall accrue and be guaranteed by the Secretary only through the date of payment on the guarantee. (G)

Redemption

During the term of the pool certificate, the certificate may be called for redemption due to prepayment or default of all loans constituting the pool. (H)

Full faith and credit

The full faith and credit of the United States is pledged to the payment of all amounts that may be required to be paid under any guarantee of the pool certificates issued by approved market makers under this subsection. (I)

Fees

(i)

In general

The Secretary shall not collect any fee for any guarantee under this subsection. (ii)

Secretarial functions

Clause (i) does not preclude the Secretary from collecting a fee for the functions described in paragraph (3). (J)

Default

Not later than 30 days after a borrower of a guaranteed loan is in default of any principal or interest payment due for 60 days or more, the Secretary shall— (i)purchase the pool certificates representing ownership of the guaranteed portion of the loan; and (ii)pay the registered holder of the certificates an amount equal to the guaranteed portion of the loan represented by the certificate. (K)

Payment of claims

If the Secretary pays a claim under a guarantee issued under this subsection, the claim shall be subrogated fully to the rights satisfied by the payment, as may be provided by the Secretary. (L)

Application of laws

No State or local law, and no Federal law, shall preclude or limit the exercise by the Secretary of the ownership rights of the Secretary in the portions of loans constituting the pool against which the certificates are issued. (3)

Duties of the Secretary

(A)

In general

On the adoption of final rules and regulations, the Secretary shall— (i)provide for the central collection of registration information from all participating market makers for all loans and pool certificates sold under paragraphs (1) and (2), including, with respect to each original sale and any subsequent sale— (I)identification of the interest rate paid by the borrower to the lender; (II)the servicing fee of the lender; (III)disclosure of whether interest on the loan is at a fixed or variable rate; (IV)identification of each purchaser of a pool certificate; (V)the interest rate paid on the certificate; and (VI)such other information as the Secretary considers appropriate. (ii)before any sale, require the seller (as defined in subparagraph (B) to disclose to each prospective purchaser of the portion of a loan guaranteed under this title and to each prospective purchaser of a pool certificate issued under paragraph (2) information on the terms, conditions, and yield of such instrument; (iii)provide for adequate custody of any pooled guaranteed loans; (iv)take such actions as are necessary, in restructuring pools of the guaranteed portion of loans, to minimize the estimated costs of paying claims under guarantees issued under this subsection; (v)require each market maker— (I)to service all pools formed, and participations sold, by the market maker; and (II)to provide the Secretary with information relating to the collection and disbursement of all periodic payments, prepayments, and default funds from lenders, to or from the reserve fund that the Secretary shall establish to enable the timely payment guarantee to be self-funding, and from all beneficial holders; and (vi)regulate market makers in pool certificates sold under this subsection. (B)

Definition of seller

For purposes of subparagraph (A)(ii), if the instrument being sold is a loan, the term seller does not include— (i)the person who made the loan; or (ii)any person who sells 3 or fewer guaranteed loans per year. (4)

Contract for services

The Secretary may contract for goods and services to be used for the purposes of this subsection without regard to titles 5, 40, and 41, United States Code (including any regulations issued under those titles).

3903.

Administration

(a)

Powers of secretary

The Secretary may— (1)(A)administer the powers and duties of the Secretary through such national, area, State, or local offices and employees in the United States as the Secretary determines to be necessary; and (B)authorize an office to serve an area composed of 2 or more States if the Secretary determines that the volume of business in the area is not sufficient to justify separate State offices; (2)(A)accept and use voluntary and uncompensated services; and (B)with the consent of the agency concerned, use the officers, employees, equipment, and information of any agency of the Federal Government, or of any State, territory, or political subdivision; (3)subject to appropriations, make necessary expenditures for the purchase or hire of passenger vehicles, and such other facilities and services as the Secretary may from time to time find necessary for the proper administration of this title; (4)subject to subsection (b), compromise, adjust, reduce, or charge-off debts or claims (including debts and claims arising from loan guarantees), and adjust, modify, subordinate, or release the terms of security instruments, leases, contracts, and agreements entered into or administered by the Farm Service Agency, the Rural Utilities Service, the Rural Housing Service, the Rural Business-Cooperative Service, or successor agencies under this title, except for activities conducted under the Housing Act of 1949 (42 U.S.C. 1441 et seq.); (5)release mortgage and other contract liens if it appears that the mortgage and liens have no present or prospective value or that the enforcement of the mortgage and liens likely would be ineffectual or uneconomical; (6)obtain fidelity bonds protecting the Federal Government against fraud and dishonesty of officers and employees of the Farm Service Agency, the Rural Utilities Service, the Rural Housing Service, or the Rural Business-Cooperative Service in lieu of faithful performance of duties bonds under section 14 of title 6, United States Code, but otherwise in accordance with the section; (7)consent to— (A)long-term leases of facilities financed under this title notwithstanding the failure of the lessee to meet any of the requirements of this title if the long-term leases are necessary to ensure the continuation of services for which financing was extended to the lessor; and (B)the transfer of property securing any loan or financed by any loan or grant made or guaranteed by the Farm Service Agency, the Rural Utilities Service, the Rural Housing Service, or the Rural Business-Cooperative Service under this title, or any other law administered by the Secretary, on such terms as the Secretary considers necessary to carry out the purpose of the loan or grant or to protect the financial interest of the Federal Government, provided that the Secretary shall document the consent of the Secretary for the transfer of the property of a borrower in the file of the borrower; and (8)notwithstanding that an area ceases, or has ceased, to be rural, in a rural area, or an eligible area, make loans and grants, and approve transfers and assumptions, under this title on the same basis as though the area still was rural in connection with property securing any loan made or guaranteed by the Secretary under this title or in connection with any property held by the Secretary under this title. (b)

Loan adjustments

(1)

No liquidation of property

The Secretary may not require liquidation of property securing any farmer program loan or acceleration of any payment required under any farmer program loan as a prerequisite to initiating an action authorized under subsection (a). (2)

Release of personal liability

(A)

In general

Except as provided in subparagraph (B), the Secretary may release a borrower or other person obligated on a debt (other than debt incurred under the Housing Act of 1949 (42 U.S.C. 1441 et seq.)) from personal liability with or without payment of any consideration at the time of the compromise, adjustment, reduction, or charge-off of any claim. (B)

Exception

No compromise, adjustment, reduction, or charge-off of any claim may be made or carried out after the claim has been referred to the Attorney General, unless the Attorney General approves. (3)

Rural electrification security instruments

In the case of a security instrument entered into under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.), the Secretary shall notify the Attorney General of the intent of the Secretary to exercise the authority of the Secretary under paragraph (2). (c)

Simplified application forms for loan guarantees

(1)

In general

The Secretary shall provide to lenders a short, simplified application form for guarantees under this title of— (A)farmer program loans the principal amount of which is $125,000 or less; and (B)business and industry guaranteed loans under section 3601(a)(2)(A) the principal amount of which is— (i)in the case of a loan guarantee made during fiscal year 2002 or 2003, $400,000 or less; and (ii)in the case of a loan guarantee made during any subsequent fiscal year— (I)$400,000 or less; or (II)if the Secretary determines that there is not a significant increased risk of a default on the loan, $600,000 or less. (2)

Water and waste disposal grants and loans

The Secretary shall develop an application process that accelerates, to the maximum extent practicable, the processing of applications for water and waste disposal grants or direct or guaranteed loans under section 3501(a)(1) the grant award amount or principal loan amount, respectively, of which is $300,000 or less. (3)

Administration

In developing an application under this subsection, the Secretary shall— (A)consult with commercial and cooperative lenders; and (B)ensure that— (i)the form can be completed manually or electronically, at the option of the lender; (ii)the form minimizes the documentation required to accompany the form; (iii)the cost of completing and processing the form is minimal; and (iv)the form can be completed and processed in an expeditious manner. (d)

Use of attorneys for prosecution or defense of claims

The Secretary may use for the prosecution or defense of any claim or obligation described in subsection (a)(5) the Attorney General, the General Counsel of the Department, or a private attorney who has entered into a contract with the Secretary. (e)

Private collection agency

The Secretary may use a private collection agency to collect a claim or obligation described in subsection (a)(5). (f)

Security servicing

(1)

In general

The Secretary may— (A)make advances, without regard to any loan or total indebtedness limitation, to preserve and protect the security for, or the lien or priority of the lien securing any loan or other indebtedness owing to or acquired by the Secretary under this title or under any other program administered by the Farm Service Agency, the Rural Utilities Service, the Rural Housing Service, or the Rural Business-Cooperative Service applicable program, as determined by the Secretary; and (B)(i)bid for and purchase at any execution, foreclosure, or other sale or otherwise acquire property on which the United States has a lien by reason of a judgment or execution arising from, or that is pledged, mortgaged, conveyed, attached, or levied on to secure the payment of, the indebtedness regardless of whether the property is subject to other liens; (ii)accept title to any property so purchased or acquired; and (iii)sell, manage, or otherwise dispose of the property in accordance with this subsection. (2)

Operation or lease of realty

Except as provided in subsections (c) and (e), real property administered under this title may be operated or leased by the Secretary for such period as the Secretary may consider necessary to protect the investment of the Federal Government in the property. (g)

Payments to lenders

(1)

Requirement

Not later than 90 days after a court of competent jurisdiction confirms a plan of reorganization under chapter 12 of title 11, United States Code, for any borrower to whom a lender has made a loan guaranteed under this title, the Secretary shall pay the lender an amount estimated by the Secretary to be equal to the loss incurred by the lender for purposes of the guarantee. (2)

Payment toward loan guarantee

Any amount paid to a lender under this subsection with respect to a loan guaranteed under this title shall be treated as payment towards satisfaction of the loan guarantee.

3904.

Loan moratorium and policy on foreclosures

(a)

In general

In addition to any other authority that the Secretary may have to defer principal and interest and forgo foreclosure, the Secretary may permit, at the request of the borrower, the deferral of principal and interest on any outstanding loan made or guaranteed by the Secretary under this title, or under any other law administered by the Farm Service Agency, the Rural Utilities Service, the Rural Housing Service, or the Rural Business-Cooperative Service, and may forgo foreclosure of the loan, for such period as the Secretary considers necessary on a showing by the borrower that, due to circumstances beyond the control of the borrower, the borrower is temporarily unable to continue making payments of the principal and interest when due without unduly impairing the standard of living of the borrower. (b)

Interest

(1)

In general

Except as provided in paragraph (2), the Secretary may permit any loan deferred under this section to bear no interest during or after the deferral period. (2)

Exception

If the security instrument securing the loan is foreclosed, such interest as is included in the purchase price at the foreclosure shall become part of the principal and draw interest from the date of foreclosure at the rate prescribed by law. (c)

Moratorium regarding civil rights claims

(1)

In general

Except as otherwise provided in this subsection, effective beginning on May 22, 2008, there shall be in effect a moratorium, with respect to farmer program loans made under subtitle A, on all acceleration and foreclosure proceedings instituted by the Department against any farmer who— (A)has pending against the Department a claim of program discrimination that is accepted by the Department as valid; or (B)files a claim of program discrimination that is accepted by the Department as valid. (2)

Waiver of interest and offsets

During the period of the moratorium, the Secretary shall waive the accrual of interest and offsets on all farmer program loans made under subtitle A, B, or C for which loan acceleration or foreclosure proceedings have been suspended under paragraph (1). (3)

Termination of moratorium

The moratorium shall terminate with respect to a claim of discrimination by a farmer on the earlier of— (A)the date the Secretary resolves the claim; or (B)if the farmer appeals the decision of the Secretary on the claim to a court of competent jurisdiction, the date that the court renders a final decision on the claim. (4)

Failure to prevail

If a farmer does not prevail on a claim of discrimination described in paragraph (1), the farmer shall be liable for any interest and offsets that accrued during the period that loan acceleration or foreclosure proceedings have been suspended under paragraph (1).

3905.

Oil and gas royalty payments on loans

(a)

In general

The Secretary shall permit a borrower of a loan made or guaranteed under this title to make a prospective payment on the loan with proceeds from— (1)the leasing of oil, gas, or other mineral rights to real property used to secure the loan; or (2)the sale of oil, gas, or other minerals removed from real property used to secure the loan, if the value of the rights to the oil, gas, or other minerals has not been used to secure the loan. (b)

Applicability

Subsection (a) shall not apply to a borrower of a loan made or guaranteed under this title with respect to which a liquidation or foreclosure proceeding was pending on December 23, 1985.

3906.

Taxation

(a)

In general

Except as provided in subsection (b), all property subject to a lien held by the United States or the title to which is acquired or held by the Secretary under this title (other than property used for administrative purposes) shall be subject to taxation by State, territory, district, and local political subdivisions in the same manner and to the same extent as other property is taxed. (b)

Exceptions

No tax shall be imposed or collected as described in subsection (a) if the tax (whether as a tax on the instrument or in connection with conveying, transferring, or recording the instrument) is based on— (1)the value of any notes or mortgages or other lien instruments held by or transferred to the Secretary; (2)any notes or lien instruments administered under this title that are made, assigned, or held by a person otherwise liable for the tax; or (3)the value of any property conveyed or transferred to the Secretary. (c)

Failure To pay or collect tax

The failure to pay or collect a tax under subsection (a) shall not— (1)be a ground for— (A)refusal to record or file an instrument; or (B)failure to provide notice; or (2)prevent the enforcement of the instrument in any Federal or State court.

3907.

Conflicts of interest

(a)

Acceptance of consideration prohibited

No officer, attorney, or other employee of the Department shall, directly or indirectly, be the beneficiary of or receive any fee, commission, gift, or other consideration for or in connection with any transaction or business under this title other than such salary, fee, or other compensation as the officer, attorney, or employee may receive as the officer, attorney, or employee. (b)

Acquisition of interest in land prohibited

(1)

In general

Except as provided in paragraph (2), no officer or employee of the Department who acts on or reviews an application made by any person under this title for a loan to purchase land may acquire, directly or indirectly, any interest in the land for a period of 3 years after the date on which the action is taken or the review is made. (2)

Former county committee members

Paragraph (1) shall not apply to a former member of a county committee on a determination by the Secretary, prior to the acquisition of the interest, that the former member acted in good faith when acting on or reviewing the application. (c)

Certifications on loans to family members prohibited

No member of a county committee shall knowingly make or join in making any certification with respect to— (1)a loan to purchase any land in which the member, or any person related to the member within the second degree of consanguinity or affinity, has or may acquire any interest; or (2)any applicant related to the member within the second degree of consanguinity or affinity. (d)

Penalties

Any person violating this section shall, on conviction of the violation, be punished by a fine of not more than $2,000 or imprisonment for not more than 2 years, or both.

3908.

Loan summary statements

(a)

Definition of summary period

In this section, the term summary period means the period beginning on the date of issuance of the preceding loan summary statement and ending on the date of issuance of the current loan summary statement. (b)

Issuance of statements

On the request of a borrower of a loan made (but not guaranteed) under this title, the Secretary shall issue to the borrower a loan summary statement that reflects the account activity during the summary period for each loan made under this title to the borrower, including— (1)the outstanding amount of principal due on each loan at the beginning of the summary period; (2)the interest rate charged on each loan; (3)the amount of payments made on, and the application of the payments to, each loan during the summary period and an explanation of the basis for the application of the payments; (4)the amount of principal and interest due on each loan at the end of the summary period; (5)the total amount of unpaid principal and interest on all loans at the end of the summary period; (6)any delinquency in the repayment of any loan; (7)a schedule of the amount and date of payments due on each loan; and (8)the procedure the borrower may use to obtain more information concerning the status of the loans.

3909.

Certified lenders program

(a)

Certified lenders program

(1)

In general

The Secretary shall establish a program under which the Secretary shall guarantee loans under this title that are made by lending institutions certified by the Secretary. (2)

Certification requirements

The Secretary shall certify a lending institution that meets such criteria as the Secretary may prescribe in regulations, including the ability of the institution to properly make, service, and liquidate the loans of the institution. (3)

Condition of certification

(A)

In general

As a condition of the certification, the Secretary shall require the institution to undertake to service the loans guaranteed by the Secretary under this section, using standards that are not less stringent than generally accepted banking standards concerning loan servicing employed by prudent commercial or cooperative lenders. (B)

Monitoring

The Secretary shall, at least annually, monitor the performance of each certified lender to ensure that the conditions of the certification are being met. (4)

Effect of certification

Notwithstanding any other provision of law: (A)

Amount of loan guarantee

In the case of a loan made or guaranteed under subtitle A, the Secretary shall guarantee 80 percent of a loan made under this section by a certified lending institution as described in paragraph (1), subject to a determination that the borrower of the loan meets the eligibility requirements and such other criteria as may be applicable to loans guaranteed by the Secretary under other provisions of this title. (B)

Certifications by lending institutions

In the case of loans to be guaranteed by the Secretary under this section, the Secretary shall permit certified lending institutions to make appropriate certifications (as provided by regulations issued by the Secretary)— (i)relating to issues such as creditworthiness, repayment ability, adequacy of collateral, and feasibility of farm operation; and (ii)that the borrower is in compliance with all requirements of law, including regulations issued by the Secretary. (C)

Approval process

(i)

In general

The Secretary shall approve or disapprove a guarantee not later than 14 days after the date that the lending institution applies to the Secretary for the guarantee. (ii)

Disapproval

If the Secretary disapproves the loan application during the 14-day period, the Secretary shall state, in writing, all of the reasons the application was disapproved. (5)

Relationship to other requirements

Nothing in this section affects the responsibility of the Secretary to certify eligibility, review financial information, and otherwise assess an application. (b)

Preferred certified lenders program

(1)

In general

The Secretary shall establish a Preferred Certified Lenders Program for lenders under this title who establish— (A)knowledge of, and experience under, the program established under subsection (a); (B)knowledge of the regulations concerning the guaranteed loan program; and (C)proficiency related to the certified lender program requirements. (2)

Revocation of designation

(A)

In general

Subject to subparagraph (B), the designation of a lender as a Preferred Certified Lender shall be revoked at any time— (i)that the Secretary determines that the lender is not adhering to the rules and regulations applicable to the program; or (ii)if the loss experiences of a Preferred Certified Lender are excessive as compared to other Preferred Certified Lenders. (B)

Effect

A suspension or revocation under subparagraph (A) shall not affect any outstanding guarantee. (3)

Condition of certification

As a condition of preferred certification, the Secretary shall require the institution to undertake to service the loans guaranteed by the Secretary under this subsection using generally accepted banking standards concerning loan servicing employed by prudent commercial or cooperative lenders. (4)

Monitoring

The Secretary shall, at least annually, monitor the performance of each Preferred Certified Lender to ensure that the conditions of certification are being met. (5)

Effect of preferred lender certification

(A)

In general

Notwithstanding any other provision of law, the Secretary shall— (i)guarantee 80 percent of an approved loan made by a certified lending institution as described in this subsection, subject to a determination that the borrower meets the eligibility requirements or such other criteria as may be applicable to loans guaranteed by the Secretary under other provisions of this title; (ii)permit certified lending institutions— (I)to make all decisions, with respect to loans to be guaranteed by the Secretary under this subsection relating to credit worthiness, the closing, monitoring, collection and liquidation of loans; and (II)to accept appropriate certifications, as provided by regulations issued by the Secretary, that the borrower is in compliance with all requirements of law or regulations promulgated by the Secretary; and (iii)be considered to have guaranteed 80 percent of a loan made by a preferred certified lending institution as described in paragraph (1), if the Secretary fails to approve or reject the application of such institution within 14 calendar days after the date that the lending institution presented the application to the Secretary. (B)

Requirement

If the Secretary rejects an application under subparagraph (A)(iii) during the 14-day period, the Secretary shall state, in writing, the reasons the application was rejected. (c)

Administration of certified lenders and preferred certified lenders programs

The Secretary may administer the loan guarantee programs under subsections (a) and (b) through central offices established in States or in multi-State areas.

3910.

Loans to resident aliens

(a)

In general

Notwithstanding the provisions of this title limiting the making of a loan to a citizen of the United States, the Secretary may make a loan under this title to an alien lawfully admitted to the United States for permanent residence under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.). (b)

Regulations

(1)

In general

No loan may be made under this title to an alien referred to in subsection (a) until the Secretary issues regulations establishing the terms and conditions under which the alien may receive the loan. (2)

Requirement

The Secretary shall submit the regulations to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate at least 30 days prior to the date on which the regulations are published in the Federal Register.

3911.

Expedited clearing of title to inventory property

(a)

In general

The Secretary may employ local attorneys, on a case-by-case basis, to process all legal procedures necessary to clear the title to foreclosed properties in the inventory of the Department. (b)

Compensation

Attorneys shall be compensated at not more than the usual and customary charges of the attorneys for the work.

3912.

Transfer of land to Secretary

The President may at any time, in the discretion of the President, transfer to the Secretary any right, interest, or title held by the United States in any land acquired in the program of national defense and no longer needed for that purpose that the President finds suitable for the purposes of this title, and the Secretary shall dispose of the transferred land in the manner and subject to the terms and conditions of this title.

3913.

Competitive sourcing limitations

The Secretary may not complete a study of, or enter into a contract with a private party to carry out, without specific authorization in a subsequent Act of Congress, a competitive sourcing activity of the Secretary, including support personnel of the Department, relating to rural development or farmer program loans.

3914.

Regulations

The Secretary may issue such regulations, prescribe such terms and conditions for making or guaranteeing loans, security instruments, and agreements, except as otherwise specified in this title, and make such delegations of authority as the Secretary considers necessary to carry out this title.

6002.

Conforming amendments

(a)Section 17(c) of the Rural Electrification Act of 1936 (7 U.S.C. 917(c)) is amended by striking paragraph (1) and inserting the following:

(1)Subtitle B of the Consolidated Farm and Rural Development Act.

(b)Section 305(c)(2)(B)(i)(I) of the Rural Electrification Act of 1936 (7 U.S.C. 935(c)(2)(B)(i)(I)) is amended by striking section 307(a)(3)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(3)(A)) and inserting section 3701(b)(2) of the Consolidated Farm and Rural Development Act. (c)Section 306F(a)(1) of the Rural Electrification Act of 1936 (7 U.S.C. 936f(a)(1)) is amended by striking subparagraph (B) and inserting the following:

(B)chapter 1 of subtitle B of the Consolidated Farm and Rural Development Act.

(d)Section 2333(d) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa–2(d)) is amended— (1)in paragraph (11), by adding and at the end; (2)by striking paragraph (12); and (3)by redesignating paragraph (13) as paragraph (12). (e)Section 601(b) of the Rural Electrification Act of 1936 (7 U.S.C. 950bb(b)) is amended by striking paragraph (3). (f)Section 602(5) of the Emergency Livestock Feed Assistance Act of 1988 (7 U.S.C. 1471(5)) is amended by striking section 355(e)(1)(D)(ii) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1985(e)(1)(D)(ii)) and inserting section 3409(c)(1)(A) of the Consolidated Farm and Rural Development Act). (g)Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is amended— (1)in subsection (b)(7)(A), by striking section 371 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008f) and inserting section 3424 of the Consolidated Farm and Rural Development Act; and (2)in subsection (n)(2), by striking subtitle C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et seq.) and inserting chapter 3 of subtitle A of the Consolidated Farm and Rural Development Act. (h)Section 231(a) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1632a(a)) is amended— (1)in paragraph (1), by striking section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) and inserting section 3002 of the Consolidated Farm and Rural Development Act; and (2)in paragraph (4), by striking section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)) and inserting section 3002 of the Consolidated Farm and Rural Development Act. (i)Section 14204(a) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 2008q–1(a)) is amended by striking an entity described in section 379C(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008q(a)) and inserting an entity determined by the Secretary. (j)Section 607(c)(6) of the Rural Development Policy Act of 1972 (7 U.S.C. 2204b(c)(6)) is amended in the last sentence— (1)by striking , and and inserting and any; and (2)by striking required under section 306(a)(12) of the Consolidated Farm and Rural Development Act. (k)Section 901(b) of the Agricultural Act of 1970 (7 U.S.C. 2204b–1(b)) is amended by striking rural areas as defined in the private business enterprise exception in section 306(a)(7) of the Consolidated Farmers Home Administration Act of 1961, as amended (7 U.S.C. 1926) and inserting rural areas, as defined in section 3002 of the Consolidated Farm and Rural Development Act. (l)Section 14220 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 2206b) is amended by striking section 343(a)(13)(A) of the Consolidated Farm and Rural Development Act) and inserting section 3002 of the Consolidated Farm and Rural Development Act). (m)Section 2501(c)(2)(D) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(c)(2)(D)) is amended by striking sections 355(a)(1) and 355(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(a)(1)) and inserting paragraphs (1) and (3) of section 3416(a) of the Consolidated Farm and Rural Development Act. (n)Section 2501A(b) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279–1(b)) is amended by striking section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)) and inserting section 3002 of the Consolidated Farm and Rural Development Act. (o)Section 7405(c)(8)(B) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3319f(c)(8)(B)) is amended by striking section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)) and inserting section 3002 of the Consolidated Farm and Rural Development Act). (p)Section 1101(d)(2)(A) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8711(d)(2)(A)) is amended by striking section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)) and inserting section 3002 of the Consolidated Farm and Rural Development Act). (q)Section 1302(d)(2)(A) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8752(d)(2)(A)) is amended by striking section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)) and inserting section 3002 of the Consolidated Farm and Rural Development Act). (r)Section 2375(g) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 6613(g)) is amended by striking section 304(b), 306(a), or 310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1924(b), 1926(a), and 1932(e)) and inserting subtitle B of the Consolidated Farm and Rural Development Act. (s)Section 226B(a)(1) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6934(a)(1)) is amended by striking section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) and inserting section 3002 of the Consolidated Farm and Rural Development Act. (t)Section 196(i)(3)(B) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)(3)(B)) is amended by striking subtitle C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et seq.) and inserting chapter 3 of subtitle A of the Consolidated Farm and Rural Development Act. (u)Section 9009(a)(1) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8109(a)(1)) is amended by striking section 343(a)(13)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(A))) and inserting section 3002 of the Consolidated Farm and Rural Development Act. (v)Section 9011(c)(2)(B)(v) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8111(c)(2)(B)(v)) is amended by striking subclause (I)and inserting the following:

(I)beginning farmers (as defined in accordance with section 3002 of the Consolidated Farm and Rural Development Act); or

(w)Section 7(b)(2)(B) of the Small Business Act (15 U.S.C. 636(b)(2)(B)) is amended by striking section 321 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961) and inserting section 3301 of the Consolidated Farm and Rural Development Act. (x)Section 8(b)(5)(B)(iii)(III)(bb) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)(B)(iii)(III)(bb)) is amended by striking section 355(e)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C.A. § 2003(e)(1)) and inserting section 3002 of the Consolidated Farm and Rural Development Act). (y)Section 10(b)(3) of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2106(b)(3)) is amended in the last sentence by striking set out in the first clause of section 306(a)(7) of the Consolidated Farm and Rural Development Act and inserting given the term in section 3002 of the Consolidated Farm and Rural Development Act. (z)Section 1201(a)(2) of the Food Security Act of 1985 (16 U.S.C. 3801(a)(2)) is amended by striking section 343(a)(8) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(8)) and inserting section 3002 of the Consolidated Farm and Rural Development Act. (aa)Section 1238(2) of the Food Security Act of 1985 (16 U.S.C. 3838(2)) is amended by striking section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) and inserting section 3002 of the Consolidated Farm and Rural Development Act. (bb)Section 5 of Public Law 91–229 (25 U.S.C. 492) is amended by striking section 307(a)(3)(B) of the Consolidated Farmers Home Administration Act of 1961, as amended, and to the provisions of subtitle D of that Act except sections 340, 341, 342, and 343 and inserting 3105(b)(2) of the Consolidated Farm and Rural Development Act. (cc)Section 6(c) of Public Law 91–229 (25 U.S.C. 493(c)) is amended by striking section 333B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983b) and inserting subtitle H of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6991 et seq.). (dd)Section 181(a)(2)(B)(ii) of the Internal Revenue Code of 1986 is amended by striking section 2009aa–1 of title 7, United States Code and inserting section 3801 of the Consolidated Farm and Rural Development Act. (ee)Section 515(b)(3) of the Housing Act of 1949 (42 U.S.C. 1485(b)(3)) is amended by striking all the provisions of section 309 and the second and third sentences of section 308 of the Consolidated Farmers Home Administration Act of 1961, including the authority in section 309(f)(1) of that Act and inserting section 3401 of the Consolidated Farm and Rural Development Act. (ff)Section 517(b) of the Housing Act of 1949 (42 U.S.C. 1487(b)) is amended in the third sentence by striking (7 U.S.C. 1929) and inserting under section 3401 of the Consolidated Farm and Rural Development Act. (gg)Section 3(8) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3122(8)) is amended— (1)by striking subparagraph (B) and inserting the following:

(B)the Delta Regional Authority established under chapter 4 of subtitle B of the Consolidated Farm and Rural Development Act;

; and

(2)by striking subparagraph (D) and inserting the following:

(D)the Northern Great Plains Regional Authority established under chapter 5 of subtitle B of the Consolidated Farm and Rural Development Act.

(hh)Section 310(a) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5153(a)) is amended by striking paragraph (4) and inserting the following:

(4)Chapter 1 of subtitle B of the Consolidated Farm and Rural Development Act.

(ii)Section 582(d)(1) of the National Flood Insurance Reform Act of 1994 (42 U.S.C. 5154a(d)(1)) is amended by striking section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) and inserting section 3301(b) of the Consolidated Farm and Rural Development Act. (jj)Section 213(c)(1) of the Biomass Energy and Alcohol Fuels Act of 1980 (42 U.S.C. 8813(c)(1)) is amended in the first sentence by striking section 309 of the Consolidated Farm and Rural Development Act or the Rural Development Insurance Fund in section 309A of such Act and inserting under section 3401 of the Consolidated Farm and Rural Development Act or the Rural Development Insurance Fund under section 3704 of that Act. (kk)Section 1323(b)(2) of the Food Security Act of 1985 (Public Law 99–198; 7 U.S.C. 1932 note) is amended— (1)in subparagraph (A), by inserting and at the end; (2)in subparagraph (B), by striking ; and at the end and inserting a period; and (3)by striking subparagraph (C).

Rural electrification

6101.

Definition of rural area

Section 13(3) of the Rural Electrification Act of 1936 (7 U.S.C. 913(A)) is amended by striking subparagraph (A) and inserting the following:

(A)any area described in section 3002(28)(A)(i) of the Consolidated Farm and Rural Development Act; and

6102.

Guarantees for bonds and notes issued for electrification or telephone purposes

Section 313A(f) of the Rural Electrification Act of 1936 (7 U.S.C. 940c–1(f)) is amended by striking 2012 and inserting 2017.

6103.

Expansion of 911 access

Section 315(d) of the Rural Electrification Act of 1936 (7 U.S.C. 940e(d)) is amended by striking 2012 and inserting 2017.

6104.

Access to broadband telecommunications services in rural areas

Section 601 of the Rural Electrification Act of 1936 (7 U.S.C. 950bb) is amended— (1)in subsection (a), by striking loans and and inserting grants, loans, and; (2)in subsection (b), by striking paragraph (3) and inserting the following:

(3)

Rural area

The term rural area means any area described in section 3002 of the Consolidated Farm and Rural Development Act.

;

(3)in subsection (c)— (A)in the subsection heading, by striking

Loans and

and inserting

Grants, loans, and

; (B)in paragraph (1), by inserting make grants and after Secretary shall; (C)by striking paragraph (2) and inserting the following:

(2)

Priority

(A)

In general

In making grants, loans, or loan guarantees under paragraph (1), the Secretary shall— (i)establish not less than 2, and not more than 4, evaluation periods for each fiscal year to compare grant, loan, and loan guarantee applications and to prioritize grants, loans, and loan guarantees to all or part of rural communities that do not have residential broadband service that meets the minimum acceptable level of broadband service established under subsection (e); (ii)give the highest priority to applicants that offer to provide broadband service to the greatest proportion of unserved rural households or rural households that do not have residential broadband service that meets the minimum acceptable level of broadband service established under subsection (e), as— (I)certified by the affected community, city, county, or designee; or (II)demonstrated on— (aa)the broadband map of the affected State if the map contains address-level data; or (bb)the National Broadband Map if address-level data is unavailable; and (iii)provide equal consideration to all qualified applicants, including those that have not previously received grants, loans, or loan guarantees under paragraph (1). (B)

Other

After giving priority to the applicants described in subparagraph (A), the Secretary shall then give priority to projects that serve rural communities— (i)with a population of less than 20,000 permanent residents; (ii)experiencing outmigration; (iii)with a high percentage of low-income residents; and (iv)that are isolated from other significant population centers.

; and

(D)by adding at the end the following:

(3)

Grant amounts

(A)

Eligibility

To be eligible for a grant under this section, the project that is the subject of the grant shall be carried out in a rural area. (B)

Maximum

Except as provided in subparagraph (D), the amount of any grant made under this section shall not exceed 50 percent of the development costs of the project for which the grant is provided. (C)

Grant rate

The Secretary shall establish the grant rate for each project in accordance with regulations issued by the Secretary that shall provide for a graduated scale of grant rates that establish higher rates for projects in communities that have— (i)remote locations; (ii)low community populations; (iii)low income levels; (iv)developed the applications of the communities with the participation of combinations of stakeholders, including— (I)State, local, and tribal governments; (II)nonprofit institutions; (III)institutions of higher education; (IV)private entities; and (V)philanthropic organizations; and (v)targeted funding to provide the minimum acceptable level of broadband service established under subsection (e) in all or part of an unserved community that is below that minimum acceptable level of broadband service. (D)

Secretarial authority to adjust

The Secretary may make grants of up to 75 percent of the development costs of the project for which the grant is provided to an eligible entity if the Secretary determines that the project serves a remote or low income area that does not have access to broadband service from any provider of broadband service (including the applicant).

;

(4)in subsection (d)— (A)in paragraph (1)(A)— (i)in the matter preceding clause (i), by striking loan or and inserting grant, loan, or; (ii)by striking clause (i) and inserting the following:

(i)demonstrate the ability to furnish, improve in order to meet the minimum acceptable level of broadband service established under subsection (e), or extend broadband service to all or part of an unserved rural area or an area below the minimum acceptable level of broadband service established under subsection (e);

;

(iii)in clause (ii), by striking a loan application and inserting an application; and (iv)in clause (iii)— (I)by striking the loan application and inserting the application; and (II)by striking proceeds from the loan made or guaranteed under this section are and inserting assistance under this section is; (B)in paragraph (2)— (i)in subparagraph (A)— (I)in the matter preceding clause (i)— (aa)by striking the proceeds of a loan made or guaranteed and inserting assistance; and (bb)by striking for the loan or loan guarantee and inserting of the eligible entity; (II)in clause (i), by striking is offered broadband service by not more than 1 incumbent service provider and inserting are unserved or have service levels below the minimum acceptable level of broadband service established under subsection (e); and (III)in clause (ii), by striking 3 and inserting 2; (ii)by striking subparagraph (B) and inserting the following:

(B)

Adjustments

(i)

Increase

The Secretary may increase the household percentage requirement under subparagraph (A)(i) if— (I)more than 25 percent of the costs of the project are funded by grants made under this section; or (II)the proposed service territory includes 1 or more communities with a population in excess of 20,000. (ii)

Reduction

The Secretary may reduce the household percentage requirement under subparagraph (A)(i)— (I)to not less than 15 percent, if the proposed service territory does not have a population in excess of 5,000 people; or (II)to not less than 18 percent, if the proposed service territory does not have a population in excess of 7,500 people.

; and

(iii)in subparagraph (C)— (I)in the subparagraph heading, by striking

and inserting

; and (II)in clause (i), by inserting the minimum acceptable level of broadband service established under subsection (e) in after service to; (C)in paragraph (3)— (i)in subparagraph (A), by striking loan or and inserting grant, loan, or; and (ii)in subparagraph (B), by adding at the end the following:

(iii)

Information

Information submitted under this subparagraph shall be— (I)certified by the affected community, city, county, or designee; and (II)demonstrated on— (aa)the broadband map of the affected State if the map contains address-level data; or (bb)the National Broadband Map if address-level data is unavailable.

;

(D)in paragraph (4)— (i)by striking Subject to paragraph (1), and inserting the following:

(A)

In general

Subject to paragraph (1) and subparagraph (B),

;

(ii)by striking loan or and inserting grant, loan, or; and (iii)by adding at the end the following:

(B)

Pilot programs

The Secretary may carry out pilot programs in conjunction with interested entities described in subparagraph (A) (which may be in partnership with other entities, as determined appropriate by the Secretary) to address areas that are unserved or have service levels below the minimum acceptable level of broadband service established under subsection (e).

;

(E)in paragraph (5)— (i)in the matter preceding subparagraph (A), by striking loan or and inserting grant, loan, or; and (ii)in subparagraph (C), by inserting , and proportion relative to the service territory, after estimated number; (F)in paragraph (6), by striking loan or and inserting grant, loan, or; (G)in paragraph (7), by striking a loan application and inserting an application; and (H)by adding at the end the following:

(8)

Transparency and reporting

The Secretary— (A)shall require any entity receiving assistance under this section to submit quarterly, in a format specified by the Secretary, a report that describes— (i)the use by the entity of the assistance, including new equipment and capacity enhancements that support high-speed broadband access for educational institutions, health care providers, and public safety service providers (including the estimated number of end users who are currently using or forecasted to use the new or upgraded infrastructure); and (ii)the progress towards fulfilling the objectives for which the assistance was granted, including— (I)the number and location of residences and businesses that will receive new broadband service, existing network service improvements, and facility upgrades resulting from the Federal assistance; (II)the speed of broadband service; (III)the price of broadband service; (IV)any changes in broadband service adoption rates, including new subscribers generated from demand-side projects; and (V)any other metrics the Secretary determines to be appropriate; (B)shall maintain a fully searchable database, accessible on the Internet at no cost to the public, that contains, at a minimum— (i)a list of each entity that has applied for assistance under this section; (ii)a description of each application, including the status of each application; (iii)for each entity receiving assistance under this section— (I)the name of the entity; (II)the type of assistance being received; (III)the purpose for which the entity is receiving the assistance; and (IV)each quarterly report submitted under subparagraph (A); and (iv)such other information as is sufficient to allow the public to understand and monitor assistance provided under this section; (C)shall, in addition to other authority under applicable law, establish written procedures for all broadband programs administered by the Secretary that, to the maximum extent practicable— (i)recover funds from loan defaults; (ii)(I)deobligate awards to grantees that demonstrate an insufficient level of performance (including failure to meet build-out requirements, service quality issues, or other metrics determined by the Secretary) or wasteful or fraudulent spending; and (II)award those funds, on a competitive basis, to new or existing applicants consistent with this section; and (iii)consolidate and minimize overlap among the programs; (D)with respect to an application for assistance under this section, shall— (i)promptly post on the website of the Rural Utility Service— (I)an announcement that identifies— (aa)each applicant; (bb)the amount and type of support requested by each applicant; and (II)a list of the census block groups or proposed service territory, in a manner specified by the Secretary, that the applicant proposes to service; (ii)provide not less than 15 days for broadband service providers to voluntarily submit information about the broadband services that the providers offer in the groups or tracts listed under clause (i)(II) so that the Secretary may assess whether the applications submitted meet the eligibility requirements under this section; and (iii)if no broadband service provider submits information under clause (ii), consider the number of providers in the group or tract to be established by reference to— (I)the most current National Broadband Map of the National Telecommunications and Information Administration; or (II)any other data regarding the availability of broadband service that the Secretary may collect or obtain through reasonable efforts; and (E)may establish additional reporting and information requirements for any recipient of any assistance under this section so as to ensure compliance with this section.

;

(5)in subsection (e)— (A)by redesignating paragraph (2) as paragraph (3); and (B)by striking paragraph (1) and inserting the following:

(1)

In general

Subject to paragraph (2), for purposes of this section, the minimum acceptable level of broadband service for a rural area shall be at least— (A)a 4-Mbps downstream transmission capacity; and (B)a 1-Mbps upstream transmission capacity. (2)

Adjustments

(A)

In general

At least once every 2 years, the Secretary shall review, and may adjust, the minimum acceptable level of broadband service established under paragraph (1) to ensure that high quality, cost-effective broadband service is provided to rural areas over time. (B)

Considerations

In making an adjustment to the minimum acceptable level of broadband service under subparagraph (A), the Secretary may consider establishing different transmission rates for fixed broadband service and mobile broadband service.

;

(6)in subsection (f), by striking make a loan or loan guarantee and inserting provide assistance; (7)in subsection (g), by striking paragraph (2) and inserting the following:

(2)

Terms

In determining the term and conditions of a loan or loan guarantee, the Secretary may— (A)consider whether the recipient would be serving an area that is unserved; and (B)if the Secretary makes a determination in the affirmative under subparagraph (A), establish a limited initial deferral period or comparable terms necessary to achieve the financial feasibility and long-term sustainability of the project.

;

(8)in subsection (j)— (A)in the matter preceding paragraph (1), by striking loan and loan guarantee; (B)in paragraph (1)— (i)by inserting grants and after number of; and (ii)by inserting , including any loan terms or conditions for which the Secretary provided additional assistance to unserved areas before the semicolon at the end; (C)in paragraph (2)— (i)in subparagraph (A), by striking loan; and (ii)in subparagraph (B), by striking loans and and inserting grants, loans, and; (D)in paragraph (3), by striking loan; (E)in paragraph (5), by striking and at the end; (F)in paragraph (6), by striking the period at the end and inserting ; and; and (G)by adding at the end the following:

(7)the overall progress towards fulfilling the goal of improving the quality of rural life by expanding rural broadband access, as demonstrated by metrics, including— (A)the number of residences and businesses receiving new broadband services; (B)network improvements, including facility upgrades and equipment purchases; (C)average broadband speeds and prices on a local and statewide basis; (D)any changes in broadband adoption rates; and (E)any specific activities that increased high speed broadband access for educational institutions, health care providers. and public safety service providers.

; and

(9)by redesignating subsections (k) and (l) as subsections (l) and (m), respectively; (10)by inserting after subsection (j) the following:

(k)

Broadband buildout data

(1)

In general

As a condition of receiving a grant, loan, or loan guarantee under this section, a recipient of assistance shall provide to the Secretary address-level broadband buildout data that indicates the location of new broadband service that is being provided or upgraded within the service territory supported by the grant, loan, or loan guarantee— (A)for purposes of inclusion in the semiannual updates to the National Broadband Map that is managed by the National Telecommunications and Information Administration (referred to in this subsection as the Administration); and (B)not later than 30 days after the earlier of— (i)the date of completion of any project milestone established by the Secretary; or (ii)the date of completion of the project. (2)

Address-level data

Effective beginning on the date the Administration receives data described in paragraph (1), the Administration shall use only address-level broadband buildout data for the National Broadband Map. (3)

Corrections

(A)

In general

The Secretary shall submit to the Administration any correction to the National Broadband Map that is based on the actual level of broadband coverage within the rural area, including any requests for a correction from an elected or economic development official. (B)

Incorporation

Not later than 30 days after the date on which the Administration receives a correction submitted under subparagraph (A), the Administration shall incorporate the correction into the National Broadband Map. (C)

Use

If the Secretary has submitted a correction to the Administration under subparagraph (A), but the National Broadband Map has not been updated to reflect the correct by the date on which the Secretary is making a grant or loan award decision under this section, the Secretary may use the correction submitted under that subparagraph for purposes of make the grant or loan award decision.

;

(11)subsection (l) (as redesignated by paragraph (9))— (A)in paragraph (1)— (i)by striking $25,000,000 and inserting $50,000,000; and (ii)by striking 2012 and inserting 2017; and (B)in paragraph (2)(A)— (i)in clause (i), by striking and at the end; (ii)in clause (ii), by striking the period at the end and inserting ; and; and (iii)by adding at the end the following:

(iii)set aside at least 1 percent to be used for— (I)conducting oversight under this section; and (II)implementing accountability measures and related activities authorized under this section.

; and

(12)in subsection (m) (as redesignated by paragraph (9))— (A)by striking loan or and inserting grant, loan, or; and (B)by striking 2012 and inserting 2017.

Miscellaneous

6201.

Distance learning and telemedicine

(a)

Authorization of appropriations

Section 2335A of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa–5) is amended by striking 2012 and inserting 2017. (b)

Conforming amendment

Section 1(b) of Public Law 102–551 (7 U.S.C. 950aaa note) is amended by striking 2012 and inserting 2017.

6202.

Rural energy savings program

Subtitle E of title VI of the Farm Security and Rural Investment Act of 2002 (Public Law 107–171; 116 Stat. 424) is amended by adding at the end the following:

6407.

Rural energy savings program

(a)

Purpose

The purpose of this section is to create jobs, promote rural development, and help rural families and small businesses achieve cost savings by providing loans to qualified consumers to implement durable cost-effective energy efficiency measures. (b)

Definitions

In this section: (1)

Eligible entity

The term eligible entity means— (A)any public power district, public utility district, or similar entity, or any electric cooperative described in section 501(c)(12) or 1381(a)(2) of the Internal Revenue Code of 1986, that borrowed and repaid, prepaid, or is paying an electric loan made or guaranteed by the Rural Utilities Service (or any predecessor agency); (B)any entity primarily owned or controlled by 1 or more entities described in subparagraph (A); or (C)any other entity that is an eligible borrower of the Rural Utility Service, as determined under section 1710.101 of title 7, Code of Federal Regulations (or a successor regulation). (2)

Energy efficiency measures

The term energy efficiency measures means, for or at property served by an eligible entity, structural improvements and investments in cost-effective, commercial technologies to increase energy efficiency. (3)

Qualified consumer

The term qualified consumer means a consumer served by an eligible entity that has the ability to repay a loan made under subsection (d), as determined by the eligible entity. (4)

Secretary

The term Secretary means the Secretary of Agriculture, acting through the Administrator of the Rural Utilities Service. (c)

Loans to Eligible Entities

(1)

In general

Subject to paragraph (2), the Secretary shall make loans to eligible entities that agree to use the loan funds to make loans to qualified consumers for the purpose of implementing energy efficiency measures. (2)

Requirements

(A)

In general

As a condition of receiving a loan under this subsection, an eligible entity shall— (i)establish a list of energy efficiency measures that is expected to decrease energy use or costs of qualified consumers; (ii)prepare an implementation plan for use of the loan funds, including use of any interest to be received pursuant to subsection (d)(1)(A); (iii)provide for appropriate measurement and verification to ensure— (I)the effectiveness of the energy efficiency loans made by the eligible entity; and (II)that there is no conflict of interest in carrying out this section; and (iv)demonstrate expertise in effective use of energy efficiency measures at an appropriate scale. (B)

Revision of list of energy efficiency measures

Subject to the approval of the Secretary, an eligible entity may update the list required under subparagraph (A)(i) to account for newly available efficiency technologies. (C)

Existing energy efficiency programs

An eligible entity that, at any time before the date that is 60 days after the date of enactment of this section, has established an energy efficiency program for qualified consumers may use an existing list of energy efficiency measures, implementation plan, or measurement and verification system of that program to satisfy the requirements of subparagraph (A) if the Secretary determines the list, plan, or systems are consistent with the purposes of this section. (3)

No interest

A loan under this subsection shall bear no interest. (4)

Repayment

With respect to a loan under paragraph (1)— (A)the term shall not exceed 20 years from the date on which the loan is closed; and (B)except as provided in paragraph (6), the repayment of each advance shall be amortized for a period not to exceed 10 years. (5)

Amount of advances

Any advance of loan funds to an eligible entity in any single year shall not exceed 50 percent of the approved loan amount. (6)

Special advance for start-up activities

(A)

In general

In order to assist an eligible entity in defraying the appropriate start-up costs (as determined by the Secretary) of establishing new programs or modifying existing programs to carry out subsection (d), the Secretary shall allow an eligible entity to request a special advance. (B)

Amount

No eligible entity may receive a special advance under this paragraph for an amount that is greater than 4 percent of the loan amount received by the eligible entity under paragraph (1). (C)

Repayment

Repayment of the special advance— (i)shall be required during the 10-year period beginning on the date on which the special advance is made; and (ii)at the election of the eligible entity, may be deferred to the end of the 10-year period. (7)

Limitation

All special advances shall be made under a loan described in paragraph (1) during the first 10 years of the term of the loan. (d)

Loans to qualified consumers

(1)

Terms of loans

Loans made by an eligible entity to qualified consumers using loan funds provided by the Secretary under subsection (c)— (A)may bear interest, not to exceed 3 percent, to be used for purposes that include— (i)to establish a loan loss reserve; and (ii)to offset personnel and program costs of eligible entities to provide the loans; (B)shall finance energy efficiency measures for the purpose of decreasing energy usage or costs of the qualified consumer by an amount that ensures, to the maximum extent practicable, that a loan term of not more than 10 years will not pose an undue financial burden on the qualified consumer, as determined by the eligible entity; (C)shall not be used to fund purchases of, or modifications to, personal property unless the personal property is or becomes attached to real property (including a manufactured home) as a fixture; (D)shall be repaid through charges added to the electric bill for the property for, or at which, energy efficiency measures are or will be implemented, on the condition that this requirement does not prohibit— (i)the voluntary prepayment of a loan by the owner of the property; or (ii)the use of any additional repayment mechanisms that are— (I)demonstrated to have appropriate risk mitigation features, as determined by the eligible entity; or (II)required if the qualified consumer is no longer a customer of the eligible entity; and (E)shall require an energy audit by an eligible entity to determine the impact of proposed energy efficiency measures on the energy costs and consumption of the qualified consumer. (2)

Contractors

In addition to any other qualified general contractor, eligible entities may serve as general contractors. (e)

Contract for measurement and verification, training, and technical assistance

(1)

In general

Not later than 90 days after the date of enactment of this section, the Secretary— (A)shall establish a plan for measurement and verification, training, and technical assistance of the program; and (B)may enter into 1 or more contracts with a qualified entity for the purposes of— (i)providing measurement and verification activities; and (ii)developing a program to provide technical assistance and training to the employees of eligible entities to carry out this section. (2)

Use of subcontractors authorized

A qualified entity that enters into a contract under paragraph (1) may use subcontractors to assist the qualified entity in carrying out the contract. (f)

Fast Start demonstration projects

(1)

In general

The Secretary shall offer to enter into agreements with eligible entities (or groups of eligible entities) that have energy efficiency programs described in subsection (c)(2)(C) to establish an energy efficiency loan demonstration projects consistent with the purposes of this section. (2)

Evaluation criteria

In determining which eligible entities to award loans under this section, the Secretary shall take into consideration eligible entities that— (A)implement approaches to energy audits and investments in energy efficiency measures that yield measurable and predictable savings; (B)use measurement and verification processes to determine the effectiveness of energy efficiency loans made by eligible entities; (C)include training for employees of eligible entities, including any contractors of such entities, to implement or oversee the activities described in subparagraphs (A) and (B); (D)provide for the participation of a majority of eligible entities in a State; (E)reduce the need for generating capacity; (F)provide efficiency loans to— (i)in the case of a single eligible entity, not fewer than 20,000 consumers; or (ii)in the case of a group of eligible entities, not fewer than 80,000 consumers; and (G)serve areas in which, as determined by the Secretary, a large percentage of consumers reside— (i)in manufactured homes; or (ii)in housing units that are more than 50 years old. (3)

Deadline for implementation

To the maximum extent practicable, the Secretary shall enter into agreements described in paragraph (1) by not later than 90 days after the date of enactment of this section. (4)

Effect on availability of loans nationally

Nothing in this subsection shall delay the availability of loans to eligible entities on a national basis beginning not later than 180 days after the date of enactment of this section. (5)

Additional demonstration project authority

(A)

In general

The Secretary may conduct demonstration projects in addition to the project required by paragraph (1). (B)

Inapplicability of certain criteria

The additional demonstration projects may be carried out without regard to subparagraphs (D), (F), or (G) of paragraph (2). (g)

Additional authority

The authority provided in this section is in addition to any other authority of the Secretary to offer loans under any other law. (h)

Effective Period

Subject to the availability of funds and except as otherwise provided in this section, the loans and other expenditures required to be made under this section shall be available until expended, with the Secretary authorized to make new loans as loans are repaid. (i)

Regulations

(1)

In general

Except as otherwise provided in this subsection, not later than 180 days after the date of enactment of this section, the Secretary shall promulgate such regulations as are necessary to implement this section. (2)

Procedure

The promulgation of the regulations and administration of this section shall be made without regard to— (A)the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking; and (B)chapter 35 of title 44, United States Code (commonly known as the Paperwork Reduction Act). (3)

Congressional review of agency rulemaking

In carrying out this section, the Secretary shall use the authority provided under section 808 of title 5, United States Code. (4)

Interim regulations

Notwithstanding paragraphs (1) and (2), to the extent regulations are necessary to carry out any provision of this section, the Secretary shall implement such regulations through the promulgation of an interim rule.

6203.

Funding of pending rural development loan and grant applications

(a)

In general

The Secretary shall use funds made available under subsection (b) to provide funds for applications that are pending on the date of enactment of this Act in accordance with the terms and conditions of section 6029 of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1955). (b)

Funding

Notwithstanding any other provision of law, beginning in fiscal year 2014, of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $50,000,000, to remain available until expended.

6204.

Study of rural transportation issues

(a)

In general

The Secretary and the Secretary of Transportation shall jointly conduct a study of transportation issues regarding the movement of agricultural products, domestically produced renewable fuels, and domestically produced resources for the production of electricity for rural areas of the United States, and economic development in those areas. (b)

Inclusions

The study shall include an examination of— (1)the importance of freight transportation, including rail, truck, and barge, to— (A)the delivery of equipment, seed, fertilizer, and other products important to the development of agricultural commodities and products; (B)the movement of agricultural commodities and products to market; (C)the delivery of ethanol and other renewable fuels; (D)the delivery of domestically produced resources for use in the generation of electricity for rural areas; (E)the location of grain elevators, ethanol plants, and other facilities; (F)the development of manufacturing facilities in rural areas; and (G)the vitality and economic development of rural communities; (2)the sufficiency in rural areas of transportation capacity, the sufficiency of competition in the transportation system, the reliability of transportation services, and the reasonableness of transportation rates; (3)the sufficiency of facility investment in rural areas necessary for efficient and cost-effective transportation; and (4)the accessibility to shippers in rural areas of Federal processes for the resolution of grievances arising within various transportation modes. (c)

Report to congress

Not later than 1 year after the date of enactment of this Act, the Secretary and the Secretary of Transportation shall submit a report to Congress that contains the results of the study required under subsection (a). (d)

Periodic updates

The Secretary and the Secretary of Transportation shall publish triennially an updated version of the study described in subsection (a).

6205.

Agricultural transportation policy

Section 203 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1622) is amended by striking subsection (j) and inserting the following:

(j)

Policy development proceedings

The Secretary shall participate on behalf of the interests of agriculture and rural America in all policy development proceedings or other proceedings of the Surface Transportation Board that may establish freight rail transportation policy affecting agriculture and rural America.

<enum>VII</enum><header>Research, Extension, and Related Matters</header> <subtitle id="H58825F12B33C4FDEAF90610C5325C660"><enum>A</enum><header>National Agricultural Research, Extension, and Teaching Policy Act of 1977</header> <section id="HCEDCAB58DE9A4D0EAC31A7FF65259A6B"><enum>7101.</enum><header>National Agricultural Research, Extension, Education, and Economics Advisory Board</header> <subsection id="H2DD693151FDA4174B5FCA5BC11104DB0"><enum>(a)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">Section 1408(h) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </subsection><subsection id="H09BCABE7F22D487CB58575AA4BC7D5A6"><enum>(b)</enum><header>Duties of National Agricultural Research, Extension, Education, and Economics Advisory Board</header><text>Section 1408(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(c)) is amended—</text> <paragraph id="HC580A9C889D74087B35CE00F96315FF6"><enum>(1)</enum><text>in paragraph (3), by striking <quote>and</quote> at the end;</text> </paragraph><paragraph id="H036D5AB5519E4059A0E54DDE530ABF80"><enum>(2)</enum><text>in paragraph (4)(C), by striking the period at the end and inserting <quote>; and</quote>; and</text> </paragraph><paragraph id="H9FF762A361904034A10F23DDD7BB9671"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H0BEECD84804846A985EF4CDC87050B4A" style="OLC"> <paragraph id="H55FC1D20999C472AB68AD624B7BDF661"><enum>(5)</enum><text display-inline="yes-display-inline">consult with industry groups on agricultural research, extension, education, and economics, and make recommendations to the Secretary based on that consultation.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="id9CA18F6B32AC401EB5204C0FFEF3D8DD"><enum>7102.</enum><header>Specialty crop committee</header><text display-inline="no-display-inline">Section 1408A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123a) is amended—</text> <paragraph id="idA6506CE5034147D7AC269856135629E7"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)—</text> <subparagraph id="id5B10EBBE668541478A2F2627F2019E9C"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>Individuals</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id8222156AC26F41CC9EEE884D45581C14" style="OLC"> <paragraph id="idD50A144E43AC4EBAA42B27E4DCA4972B"><enum>(1)</enum><header>Eligibility</header><text>Individuals</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph><subparagraph id="id170D37A4770F4D118368FB58111450DD"><enum>(B)</enum><text>by striking <quote>Members</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id9013786F85EF43B9967DBAE40C0AD0EE" style="OLC"> <paragraph id="id912B0194570F4E45A74890B764EE6B84"><enum>(2)</enum><header>Service</header><text>Members</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph><subparagraph id="idA0DD68C8763D4CA19E9E569812B5E588"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id2277D99859EF4C2C98AB7AB106E32D30" style="OLC"> <paragraph id="idDB600C53D67E45C6A0F442C4BFF2B55D"><enum>(3)</enum><header>Diversity</header><text>Membership of the specialty crops committee shall reflect diversity in the specialty crops represented.</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="id308B5B46F7234361BFC7A5D3DEDB0DA9"><enum>(2)</enum><text>in subsection (c), by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id56302B8C7B17476BA58FCE47DBE5E6EB" style="OLC"> <paragraph id="ida61db8495ef84d1dbc6527db577e58c7"><enum>(6)</enum><text>Analysis of alignment of specialty crop committee recommendations with specialty crop research initiative grants awarded under section 412(d) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7632).</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="id07EE94346EF9425DB490F5995C1D8C06"><enum>(3)</enum><text>by redesignating subsections (d) and (e) as subsections (e) and (f), respectively;</text> </paragraph><paragraph id="id2738439FF65C42D5BE7920F5683F04B3"><enum>(4)</enum><text>by inserting after subsection (c) the following:</text> <quoted-block display-inline="no-display-inline" id="id8A1CF68CFB6A4D54855419D98CBC214E" style="OLC"> <subsection id="id834a5a7fa67e49279c7225146fc29ad9"><enum>(d)</enum><header>Consultation with specialty crop industry</header><text>In studying the scope and effectiveness of programs under subsection (a), the specialty crops committee shall consult on an ongoing basis with diverse sectors of the specialty crop industry.</text> </subsection><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="id80A3013F2FE546B88626E5BA032975DB"><enum>(5)</enum><text>in subsection (f) (as redesignated by paragraph (3)), by striking <quote>subsection (d)</quote> and inserting <quote>subsection (e)</quote>.</text> </paragraph></section><section id="IDd767fc22373b49a4aa3d8f6e0e69efca"><enum>7103.</enum><header>Veterinary services grant program</header><text display-inline="no-display-inline">The National Agricultural Research, Extension, and Teaching Policy Act of 1977 is amended by inserting after section 1415A (7 U.S.C. 3151a) the following:</text> <quoted-block display-inline="no-display-inline" id="id36CD2774FC4D483DAF50C6FC3DF094F6" style="OLC"> <section id="IDbb34fa7171794637abf807050372aac2"><enum>1415B.</enum><header>Veterinary services grant program</header> <subsection id="ID7f3fe1d7678047f488e5191d94ad1af5"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="ID321658d8502a401a88c2b8948c0dce36"><enum>(1)</enum><header>Qualified entity</header><text>The term <term>qualified entity</term> means—</text> <subparagraph id="IDf9982f50a551444a8946f8d3db861c76"><enum>(A)</enum><text>a for-profit or nonprofit entity located in the United States that operates a veterinary clinic providing veterinary services—</text> <clause id="ID10d1f1c0e74d4045aa5e15c31a24d041"><enum>(i)</enum><text>in a rural area, as defined in section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)); and</text> </clause><clause id="ID15398009aabf45d5845b5be0de59abc0"><enum>(ii)</enum><text>in response to a veterinarian shortage situation;</text> </clause></subparagraph><subparagraph id="IDb235e68f6774435c84f4e36ba9afe259"><enum>(B)</enum><text>a State, national, allied, or regional veterinary organization or specialty board recognized by the American Veterinary Medical Association;</text> </subparagraph><subparagraph id="IDb4db74f59fa4494a807c744dbb45b0a9"><enum>(C)</enum><text>a college or school of veterinary medicine accredited by the American Veterinary Medical Association;</text> </subparagraph><subparagraph id="ID7aec96d0d5f54f1791946d3aece21da5"><enum>(D)</enum><text>a university research foundation or veterinary medical foundation;</text> </subparagraph><subparagraph id="IDc2f66258071048eca69f3a124724bac2"><enum>(E)</enum><text>a department of veterinary science or department of comparative medicine accredited by the Department of Education;</text> </subparagraph><subparagraph id="ID2da191e4b9cb40e3bc1347a9a99d0e22"><enum>(F)</enum><text>a State agricultural experiment station; and</text> </subparagraph><subparagraph id="ID53570a054bd2478f9c8f8400cae60635"><enum>(G)</enum><text>a State, local, or tribal government agency.</text> </subparagraph></paragraph><paragraph id="IDe205ede74711469aa91f0c45bf36bbbd"><enum>(2)</enum><header>Veterinarian shortage situation</header><text>The term <term>veterinarian shortage situation</term> means a veterinarian shortage situation determined by the Secretary under section 1415A(b).</text> </paragraph></subsection><subsection id="IDa621c2a312b7427fb78e80c1ed67a19a"><enum>(b)</enum><header>Establishment of program</header> <paragraph id="ID4c827a3085714cfca237b1f36530717a"><enum>(1)</enum><header>Competitive grants</header><text>The Secretary shall carry out a program to make competitive grants to qualified entities that carry out programs or activities described in paragraph (2) for the purpose of developing, implementing, and sustaining veterinary services.</text> </paragraph><paragraph id="id9A861BAB308D4C8995901592CE4AD4BA"><enum>(2)</enum><header>Eligibility requirements</header><text>To be eligible to receive a grant described in paragraph (1), a qualified entity shall carry out programs or activities that the Secretary determines will—</text> <subparagraph id="ID21d3ac5140544e4b93c098030868e4ea"><enum>(A)</enum><text>substantially relieve veterinarian shortage situations;</text> </subparagraph><subparagraph id="ID9a9e30748870480caa5d2e7ac3c95f96"><enum>(B)</enum><text>support or facilitate private veterinary practices engaged in public health activities; or</text> </subparagraph><subparagraph id="IDad8c57170adb424a950e8ad6818eb341"><enum>(C)</enum><text>support or facilitate the practices of veterinarians who are participating in or have successfully completed a service requirement under section 1415A(a)(2).</text> </subparagraph></paragraph></subsection><subsection id="ID3c3aeab07d764e449bf501fe973fc234"><enum>(c)</enum><header>Award processes and preferences</header> <paragraph id="IDca24c0ea45f84e6d9f1274fffcd1558e"><enum>(1)</enum><header>Application, evaluation, and input processes</header><text>In administering the grant program under this section, the Secretary shall—</text> <subparagraph id="idCBE194F0877A4210801080A77E5D5146"><enum>(A)</enum><text>use an appropriate application and evaluation process, as determined by the Secretary; and</text> </subparagraph><subparagraph id="id2CD303E0884240B699EBF421FC1D277D"><enum>(B)</enum><text>seek the input of interested persons.</text> </subparagraph></paragraph><paragraph id="IDff85e6663dc447b8921c0213957b9e9f"><enum>(2)</enum><header>Grant preferences</header><text>In selecting recipients of grants to be used for any of the purposes described in paragraphs (2) through (6) of subsection (d), the Secretary shall give a preference to qualified entities that provide documentation of coordination with other qualified entities, with respect to any such purpose.</text> </paragraph><paragraph id="IDb935bc70e0714b2fa520896d2a2948f8"><enum>(3)</enum><header>Additional preferences</header><text>In awarding grants under this section, the Secretary may develop additional preferences by taking into account the amount of funds available for grants and the purposes for which the grant funds will be used.</text> </paragraph><paragraph id="ID95611d115184433ea39ac5a8d663edc2"><enum>(4)</enum><header>Applicability of other provisions</header><text>Sections 1413B, 1462(a), 1469(a)(3), 1469(c), and 1470 apply to the administration of the grant program under this section.</text> </paragraph></subsection><subsection id="IDdac512379ea84f7cb41fe24f84a7ce8c"><enum>(d)</enum><header>Use of grants To relieve veterinarian shortage situations and support veterinary services</header><text>A qualified entity may use funds provided by grants under this section to relieve veterinarian shortage situations and support veterinary services for the following purposes:</text> <paragraph id="ID0466d3e3a63c49988ebab33376c5abda"><enum>(1)</enum><text>To assist veterinarians with establishing or expanding practices for the purpose of—</text> <subparagraph id="id81086D66CD9E4F67A39E88661B01CA0F"><enum>(A)</enum><text>equipping veterinary offices;</text> </subparagraph><subparagraph id="idBC2E271934FE45F99BCA3EF46420C21D"><enum>(B)</enum><text>sharing in the reasonable overhead costs of the practices, as determined by the Secretary; or</text> </subparagraph><subparagraph id="id4D93310630564BB4B734EA840725355E"><enum>(C)</enum><text>establishing mobile veterinary facilities in which a portion of the facilities will address education or extension needs.</text> </subparagraph></paragraph><paragraph id="ID6d0155b076974c2a94d25ca526db0abc"><enum>(2)</enum><text>To promote recruitment (including for programs in secondary schools), placement, and retention of veterinarians, veterinary technicians, students of veterinary medicine, and students of veterinary technology.</text> </paragraph><paragraph id="IDaf97613eb55b4591ba0978bec38108f9"><enum>(3)</enum><text>To allow veterinary students, veterinary interns, externs, fellows, and residents, and veterinary technician students to cover expenses (other than the types of expenses described in 1415A(c)(5)) to attend training programs in food safety or food animal medicine.</text> </paragraph><paragraph id="IDb994dfdf472446ce8de33ae1768644ec"><enum>(4)</enum><text>To establish or expand accredited veterinary education programs (including faculty recruitment and retention), veterinary residency and fellowship programs, or veterinary internship and externship programs carried out in coordination with accredited colleges of veterinary medicine.</text> </paragraph><paragraph id="ID4c977af0f95d49c19aade20b62dfe0bd"><enum>(5)</enum><text>To assess veterinarian shortage situations and the preparation of applications submitted to the Secretary for designation as a veterinarian shortage situation under section 1415A(b).</text> </paragraph><paragraph id="ID45ca103063b044ebb1e188a9134f3028"><enum>(6)</enum><text>To provide continuing education and extension, including veterinary telemedicine and other distance-based education, for veterinarians, veterinary technicians, and other health professionals needed to strengthen veterinary programs and enhance food safety.</text> </paragraph></subsection><subsection id="ID4ef84ca143724ecdafd5ac2abfecc782"><enum>(e)</enum><header>Special requirements for certain grants</header> <paragraph id="IDc6be5d789204475882aa34651802fcbf"><enum>(1)</enum><header>Terms of service requirements</header> <subparagraph id="idE36C297E97DA45099561197074E42D7A"><enum>(A)</enum><header>In general</header><text>Grants provided under this section for the purpose specified in subsection (d)(1) shall be subject to an agreement between the Secretary and the grant recipient that includes a required term of service for the recipient, as established by the Secretary.</text> </subparagraph><subparagraph id="idC184B156678A47BC812AFECBCC9C1F1F"><enum>(B)</enum><header>Considerations</header><text>In establishing a term of service under subparagraph (A), the Secretary shall consider only—</text> <clause id="ID86aa4920a9d047dca716ff430acf77c3"><enum>(i)</enum><text>the amount of the grant awarded; and</text> </clause><clause id="ID11b2e7f5487e487a8d341ccabf6e3ded"><enum>(ii)</enum><text>the specific purpose of the grant.</text> </clause></subparagraph></paragraph><paragraph id="ID06d43384622844b88eac37ec6b095f55"><enum>(2)</enum><header>Breach remedies</header> <subparagraph id="id7533BCFC07974CF1BAF557E9B3E348A8"><enum>(A)</enum><header>In general</header><text>An agreement under paragraph (1) shall provide remedies for any breach of the agreement by the grant recipient, including repayment or partial repayment of the grant funds, with interest.</text> </subparagraph><subparagraph id="idA7FFDDDCD22E4070A8799307E06D392D"><enum>(B)</enum><header>Waiver</header><text>The Secretary may grant a wavier of the repayment obligation for breach of contract if the Secretary determines that the grant recipient demonstrates extreme hardship or extreme need.</text> </subparagraph><subparagraph id="ID23fdee9ad413468e8dcb3607d66fc9d6"><enum>(C)</enum><header>Treatment of amounts recovered</header><text>Funds recovered under this paragraph shall—</text> <clause id="id692688AFF2094374BF2031FBF4E46610"><enum>(i)</enum><text>be credited to the account available to carry out this section; and</text> </clause><clause id="id078CF1C70D1841C5A5379A4B43B191B2"><enum>(ii)</enum><text>remain available until expended.</text> </clause></subparagraph></paragraph></subsection><subsection id="IDefbb6be337094ae09f7640de9e18a691"><enum>(f)</enum><header>Cost-sharing requirements</header> <paragraph id="IDf049710cd55949b4915f2fe63e9f87be"><enum>(1)</enum><header>Recipient share</header><text>Subject to paragraph (2), to be eligible to receive a grant under this section, a qualified entity shall provide matching non-Federal funds, either in cash or in-kind support, in an amount equal to not less than 25 percent of the Federal funds provided by the grant.</text> </paragraph><paragraph id="IDbd0962c558924eed8807fbeaa708d1d1"><enum>(2)</enum><header>Waiver</header><text>The Secretary may establish, by regulation, conditions under which the cost-sharing requirements of paragraph (1) may be reduced or waived.</text> </paragraph></subsection><subsection id="IDc895f10a5cce49109bf7713e80953fb0"><enum>(g)</enum><header>Prohibition on use of grant funds for construction</header><text>Funds made available for grants under this section may not be used—</text> <paragraph id="ID31d2dff7b4094d8e86e751807276b088"><enum>(1)</enum><text>to construct a new building or facility; or</text> </paragraph><paragraph id="ID41957460c48b4a478db1daa91a7c9be8"><enum>(2)</enum><text>to acquire, expand, remodel, or alter an existing building or facility, including site grading and improvement and architect fees.</text> </paragraph></subsection><subsection id="ID4444d241002d4d0e9a4347d865b1e3a6"><enum>(h)</enum><header>Regulations</header><text>Not later than 1 year after the date of enactment of this section, the Secretary shall promulgate regulations to carry out this section.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="ID82c171c560bb4206878d18a4bb2e402b"><enum>(i)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to the Secretary to carry out this section $10,000,000 for fiscal year 2013 and each fiscal year thereafter, to remain available until expended.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H585621D0696847A5A2097191146BFD77"><enum>7104.</enum><header>Grants and fellowships for food and agriculture sciences education</header><text display-inline="no-display-inline">Section 1417(m) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(m)) is amended by striking <quote>section $60,000,000</quote> and all that follows and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="H8476FF8124434A47AAECD322EF26518A" style="OLC"> <text>section—</text><paragraph id="HD295A92DD8974A34855BDC3D8B8EFE3A"><enum>(1)</enum><text display-inline="yes-display-inline">$60,000,000 for each of fiscal years 1990 through 2012; and</text> </paragraph><paragraph id="H5A14AB871D3B495A85FF9CB553558326"><enum>(2)</enum><text>$40,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H065AC51578034A9A88EBCD109BD13F35"><enum>7105.</enum><header>Agricultural and food policy research centers</header><text display-inline="no-display-inline">Section 1419A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended—</text> <paragraph id="idE15999B1D82E4AC7B748E738C288371F"><enum>(1)</enum><text>in the section heading, by inserting <quote><header-in-text level="section" style="OLC">Agricultural and food</header-in-text></quote> before <quote><header-in-text level="section" style="OLC">policy</header-in-text></quote>;</text> </paragraph><paragraph id="id99D38670A30E4F19B73C507C1C823DCD"><enum>(2)</enum><text>in subsection (a), in the matter preceding paragraph (1)—</text> <subparagraph id="id4DABF07A541A4A8487E7FC910ECF2451"><enum>(A)</enum><text>by striking <quote>Secretary may</quote> and inserting <quote>Secretary shall, acting through the Office of the Chief Economist,</quote>; and</text> </subparagraph><subparagraph id="id22F9D6F5D55F4053A1CE43F4CF1B3242"><enum>(B)</enum><text>by inserting <quote>with a history of providing unbiased, nonpartisan economic analysis to Congress</quote> after <quote>subsection (b)</quote>;</text> </subparagraph></paragraph><paragraph id="idA0060E4E014544BD952633073B5BA4E7"><enum>(3)</enum><text>in subsection (b), by striking <quote>other research institutions</quote> and all that follows through <quote>shall be eligible</quote> and inserting <quote>other public research institutions and organizations shall be eligible</quote>;</text> </paragraph><paragraph id="id677FC96216C54039A3B98C2D02BD2974"><enum>(4)</enum><text>in subsection (c)—</text> <subparagraph id="id18712CAB861447FF8754E7FF756C3C8E"><enum>(A)</enum><text>in the matter preceding paragraph (1), by inserting <quote>, with preference given to policy research centers having extensive databases, models, and demonstrated experience in providing Congress with agricultural market projections, rural development analysis, agricultural policy analysis, and baseline projections at the farm, multiregional, national, and international levels,</quote> after <quote>with this section</quote>; and</text> </subparagraph><subparagraph id="idBC57B15E5BEA45BD8851FE6C8908641D"><enum>(B)</enum><text>in paragraph (2) by inserting <quote>applied</quote> after <quote>theoretical</quote>; and</text> </subparagraph></paragraph><paragraph id="idFF6A01CF202F42BAAAC68D1C48BB5064"><enum>(5)</enum><text display-inline="yes-display-inline">by striking subsection (d) and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="H6F527BA0B8014A309B4B0661B9609A51" style="OLC"> <text></text><subsection id="idBBFCD2C7ECE341CCAD0DC62C79AC3E01"><enum>(d)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $5,000,000 for fiscal year 2012 and each fiscal year thereafter.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="id33029740949a474c9a52d28066cacefc"><enum>7106.</enum><header>Education grants to Alaska Native serving institutions and Native Hawaiian serving institutions</header><text display-inline="no-display-inline">Section 1419B of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3156) is amended—</text> <paragraph id="id92d32eadac7e440db59021125135b21b"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="id7723b203d0864453b6d27a5f4bce5994"><enum>(A)</enum><text>in paragraph (1), by striking <quote>(or grants without regard to any requirement for competition)</quote>; and</text> </subparagraph><subparagraph id="idd7ada3e050e142ba9f8fbdb55f8b2de4"><enum>(B)</enum><text>in paragraph (3), by striking <quote>2012</quote> and inserting <quote>2017</quote>; and</text> </subparagraph></paragraph><paragraph id="id370f7d09269a445b8b585893e8eb14e1"><enum>(2)</enum><text>in subsection (b)(1), by striking <quote>(or grants without regard to any requirement for competition)</quote>; and</text> </paragraph><paragraph id="id50666f233c704498ad68f3001438544d"><enum>(3)</enum><text>in paragraph (3), by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph></section><section id="HC8D2AE9299D54EB1BC141E87001BB3AD"><enum>7107.</enum><header>Nutrition education program</header><text display-inline="no-display-inline">Section 1425(f) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175(f)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="HC6EBB9D32CA34BD0BE2A10BE783EB5FC"><enum>7108.</enum><header>Continuing animal health and disease research programs</header><text display-inline="no-display-inline">Section 1433 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195) is amended by striking the section designation and heading and all that follows through subsection (a) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idCBF7C4F0F25745A293E7D92C9281DD71" style="OLC"> <section id="idF249942B62CC44818732E640394A711D"><enum>1433.</enum><header>Appropriations for continuing animal health and disease research programs</header> <subsection id="H00012452145844FA85F279F0F5B95655"><enum>(a)</enum><header>Authorization of appropriations</header> <paragraph id="id3C87592AF9814E7FB752142674CE3ED7"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">There are authorized to be appropriated to support continuing animal health and disease research programs at eligible institutions such sums as are necessary, but not to exceed $25,000,000 for each of fiscal years 1991 through 2017.</text> </paragraph><paragraph id="H79DCCBD09E104E998BD8E2670D75007D"><enum>(2)</enum><header>Use of funds</header><text display-inline="yes-display-inline">Funds made available under this section shall be used—</text> <subparagraph id="HED51AB1D21114D67A6B8369A64EF7065"><enum>(A)</enum><text>to meet the expenses of conducting animal health and disease research, publishing and disseminating the results of such research, and contributing to the retirement of employees subject to the Act of March 4, 1940 (7 U.S.C. 331);</text> </subparagraph><subparagraph id="H2045741F3A6E4635B0DAAC28842213D4"><enum>(B)</enum><text>for administrative planning and direction; and</text> </subparagraph><subparagraph id="H0A3FDAEBA46D40E8A75C6BE8ACD2191E"><enum>(C)</enum><text>to purchase equipment and supplies necessary for conducting research described in subparagraph (A).</text> </subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H443BFBAC112349A3A24746058F558899"><enum>7109.</enum><header>Grants to upgrade agricultural and food sciences facilities at 1890 land-grant colleges, including Tuskegee University</header><text display-inline="no-display-inline">Section 1447(b) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="HE500424B80FB4E0E83214C6BC19D2996"><enum>7110.</enum><header>Grants to upgrade agricultural and food sciences facilities and equipment at insular area land-grant institutions</header><text display-inline="no-display-inline">Section 1447B(d) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b–2(d)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="HB54C41EC9C8D4DCDA077947A0466E542"><enum>7111.</enum><header>Hispanic-serving institutions</header><text display-inline="no-display-inline">Section 1455(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="H3E39A6371DC04452A33FD2AFA1444CBE"><enum>7112.</enum><header>Competitive grants for international agricultural science and education programs</header><text display-inline="no-display-inline">Section 1459A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3292b) is amended by striking subsection (c) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H1698FF22E2A3402EBEBEA9CCB292E9A9" style="OLC"> <subsection id="id758E3963B80749428F4328D07D8F4338"><enum>(c)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section—</text> <paragraph id="H41E141DB46FA405BA7ECD1BA622E5994"><enum>(1)</enum><text display-inline="yes-display-inline">such sums as are necessary for each of fiscal years 1999 through 2012; and</text> </paragraph><paragraph id="HA9E6E0A8F2F24A779066E1FD8A95EFE6"><enum>(2)</enum><text>$5,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H8E87649D0B8946EBA829FBBE0FE5557B"><enum>7113.</enum><header>University research</header><text display-inline="no-display-inline">Section 1463 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended in each of subsections (a) and (b) by striking <quote>2012</quote> each place it appears and inserting <quote>2017</quote>.</text> </section><section id="HE0DC5BD9B9DF4BCE95545B87C7A7C17B"><enum>7114.</enum><header>Extension service</header><text display-inline="no-display-inline">Section 1464 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="H010BC791814D42BC8E9A84DA183D5897"><enum>7115.</enum><header>Supplemental and alternative crops</header> <subsection id="H8F5AA72DF78B49B384632A4F1AC94CDE"><enum>(a)</enum><header>Authorization of appropriations and termination</header><text display-inline="yes-display-inline">Section 1473D of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319d) is amended—</text> <paragraph id="H6D9BBE1B2BC44030AA1386C83066FA00"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), by striking <quote>2012</quote> and inserting <quote>2017</quote>; and</text> </paragraph><paragraph id="HF566C0042C504E708756BD4891B502EF"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HDCF1AF558CA84E22B570311480FF97CE" style="OLC"> <subsection id="HFDC8AA2C40554EA1B03DBF10BF0563DA"><enum>(e)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There are authorized to be appropriated to carry out this section—</text> <paragraph id="HC2AB1D108D97415F90F3D378BA17479D"><enum>(1)</enum><text>such sums as are necessary for fiscal year 2012; and</text> </paragraph><paragraph id="HF517C64E40B84BC4B52C48CA556D9091"><enum>(2)</enum><text>$1,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H01949C0B80004F99873A1BAB842EBADB"><enum>(b)</enum><header>Competitive grants</header><text>Section 1473D(c)(1) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319d(c)(1)) is amended by striking <quote>use such research funding, special or competitive grants, or other means, as the Secretary determines,</quote> and inserting <quote>make competitive grants</quote>.</text> </subsection></section><section id="H2BE50024D7B44B3394A15575CAC8D27C"><enum>7116.</enum><header>Capacity building grants for NLGCA institutions</header><text display-inline="no-display-inline">Section 1473F(b) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319i(b)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="H2D8333C5FC4F4645B74918A25164B77B"><enum>7117.</enum><header>Aquaculture assistance programs</header> <subsection id="H1DC1054A9C044A09823F4B6BC6027A7C"><enum>(a)</enum><header>Competitive grants</header><text>Section 1475(b) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3322(b)) is amended in the matter preceding paragraph (1) by inserting <quote>competitive</quote> before <quote>grants</quote>.</text> </subsection><subsection id="H5BB6F126B311491FA470EA08936A35FC"><enum>(b)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">Section 1477 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="idF4D0D4D3C73341F9A5A6BEB2B9EDB587" style="OLC"> <section id="idB34E1AF88DE644A9B5CC75C191AA47B2"><enum>1477.</enum><header>Authorization of appropriations</header> <subsection id="idA913C510108F420F931267240BC9B7B6"><enum>(a)</enum><header>In general</header><text>There are authorized to be appropriated to carry out this subtitle—</text> <paragraph id="id3C53064D89F64A67B20B11103C6DC4E2"><enum>(1)</enum><text display-inline="yes-display-inline">$7,500,000 for each of fiscal years 1991 through 2012; and</text> </paragraph><paragraph id="idE0B552ADAD1F4D5EA461C95ED6B3651A"><enum>(2)</enum><text>$5,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph></subsection><subsection id="H2D8225F89AC944A799D035605882AF74"><enum>(b)</enum><header>Prohibition on use</header><text display-inline="yes-display-inline">Funds made available under this section may not be used to acquire or construct a building.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="HA448C8EBB33F465887FA2FE0A862C2A8"><enum>7118.</enum><header>Rangeland research programs</header><text display-inline="no-display-inline">Section 1483(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by striking <quote>subtitle</quote> and all that follows and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="H6381C64BA8A040D4BC7D364A83C99F3A" style="OLC"> <text>subtitle—</text><paragraph id="HFDD1FF1BD6784509AB685B2555AF876E"><enum>(1)</enum><text display-inline="yes-display-inline">$10,000,000 for each of fiscal years 1991 through 2012; and</text> </paragraph><paragraph id="HBAC86A380727427EBAA08D0731E873CA"><enum>(2)</enum><text>$2,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H1B2AC51C3EB3454A9F56C5A4BE9C23A3"><enum>7119.</enum><header>Special authorization for biosecurity planning and response</header><text display-inline="no-display-inline">Section 1484(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3351(a)) is amended by striking <quote>response such sums as are necessary</quote> and all that follows and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="H53D71521FE574652B54E81C9027CCE5A" style="OLC"> <text>response—</text><paragraph id="H7B676ACC5DF946CE819099CA3209F60F"><enum>(1)</enum><text display-inline="yes-display-inline">such sums as are necessary for each of fiscal years 2002 through 2012; and</text> </paragraph><paragraph id="HBDBB32CDB9CF4DAB94A11CB20297FACE"><enum>(2)</enum><text>$20,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HB43454CB94DA4C63BE72F8F4AF5B213E"><enum>7120.</enum><header>Distance education and resident instruction grants program for insular area institutions of higher education</header> <subsection id="HE76C08ADEDA14D9EABA48BB5308DDFFB"><enum>(a)</enum><header>Distance education grants for insular areas</header> <paragraph id="HD1AE50FC4BE64366BEE32BC8C8A99F47"><enum>(1)</enum><header>Competitive grants</header><text>Section 1490(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3362(a)) is amended by striking <quote>or noncompetitive</quote>.</text> </paragraph><paragraph id="H105E552A2F524CDD95A4F53E6F69C241"><enum>(2)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">Section 1490(f) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3362(f)) is amended by striking <quote>section</quote> and all that follows and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="H1C17753478DF4AC683F9C34EE93D352A" style="OLC"> <text>section—</text><paragraph id="HBB92C576E6DB4999A6032BA3A3CD1DC9"><enum>(1)</enum><text display-inline="yes-display-inline">such sums as are necessary for each of fiscal years 2002 through 2012; and</text> </paragraph><paragraph id="HCB207B0F86684B7A93D64099BA952383"><enum>(2)</enum><text>$2,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HC36CCF35114240CC841510BF2E9CA190"><enum>(b)</enum><header>Resident instruction grants for insular areas</header><text display-inline="yes-display-inline">Section 1491(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3363(c)) is amended by striking <quote>such sums as are necessary </quote> and all that follows and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="H9386C2AEB1DB40BDB4DC3AD9D8CC6956" style="OLC"> <text>to carry out this section—</text><paragraph id="H83B6569639BC46989F37220D457DCB65"><enum>(1)</enum><text display-inline="yes-display-inline">such sums as are necessary for each of fiscal years 2002 through 2012; and</text> </paragraph><paragraph id="H78DA80789ADA451BB05AF3564C5DC30B"><enum>(2)</enum><text>$2,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section></subtitle><subtitle id="H96E6988F3C2B492EBEDF36C4D810366D"><enum>B</enum><header>Food, Agriculture, Conservation, and Trade Act of 1990</header> <section id="H504A664955564A7CA34C3C45B332FDB3"><enum>7201.</enum><header>Best utilization of biological applications</header><text display-inline="no-display-inline">Section 1624 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5814) is amended—</text> <paragraph id="HF3C39159D2E34CC59C7C005519144537"><enum>(1)</enum><text>by striking <quote>$40,000,000 for each fiscal year</quote>; and</text> </paragraph><paragraph id="H7772A11A5BED4AB4806BC54A08077AA4"><enum>(2)</enum><text>by inserting <quote>$40,000,000 for each of fiscal years 2012 through 2017</quote> after <quote>chapter</quote>.</text> </paragraph></section><section id="H3A605C0A21E04E9D8A81581BA16D0080"><enum>7202.</enum><header>Integrated management systems</header><text display-inline="no-display-inline">Section 1627 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5821) is amended by striking subsection (d) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id5973157E8CE04ACAABA7E1632A38CD28" style="OLC"> <subsection id="id1ED8FD74488E41E392B88101A15E5AAA"><enum>(d)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section through the National Institute of Food and Agriculture $20,000,000 for each of fiscal years 2012 through 2017.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H5BB75E71BDE041099AAB4F241EE7529A"><enum>7203.</enum><header>Sustainable agriculture technology development and transfer program</header><text display-inline="no-display-inline">Section 1628 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5831) is amended by striking subsection (f) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id3A9B37AAE54541CEBD6326706E27069D" style="OLC"> <subsection id="idB7448BD4423E4F0DAFB53A84F9726B3E"><enum>(f)</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 2012 through 2017.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H0C1B2AAC65E04274B7532F96F65C0ADA"><enum>7204.</enum><header>National training program</header><text display-inline="no-display-inline">Section 1629 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5832) is amended by striking subsection (i) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idE4E6785D97234EF3B06B8A16EE3880D5" style="OLC"> <subsection id="id69C817BF948246D9B481D3A03ADCDE8B"><enum>(i)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out the National Training Program $20,000,000 for each of fiscal years 2012 through 2017.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H37BA5F9ABF644D8B979FFFD589CEC34A"><enum>7205.</enum><header>National Genetics Resources Program</header><text display-inline="no-display-inline">Section 1635(b) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5844(b)) is amended—</text> <paragraph id="H472307EF71FC403084838E89F73AB6D7"><enum>(1)</enum><text>by striking <quote>such funds as may be necessary</quote>; and</text> </paragraph><paragraph id="HDC8938E627C94FCAAE192EB5B55B4A52"><enum>(2)</enum><text>by striking <quote>subtitle</quote> and all that follows and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="H0AA3C9B3F163476BA12737C649DE522C" style="OLC"> <text>subtitle—</text><paragraph id="HA37CC392E92A48AF8E1A55B6D9A32562"><enum>(1)</enum><text display-inline="yes-display-inline">such sums as are necessary for each of fiscal years 1991 through 2012; and</text> </paragraph><paragraph id="HDB0A201051144B83B54B25B29A4CE375"><enum>(2)</enum><text>$1,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H7511E2DD68974C5FA9FB21085556CDA9"><enum>7206.</enum><header>National Agricultural Weather Information System</header><text display-inline="no-display-inline">Section 1641(c) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5855(c)) is amended by inserting <quote>and $1,000,000 for each of fiscal years 2013 through 2017</quote> before the period at the end.</text> </section><section id="H05BE8EF501874240994BCA7426FF791E"><enum>7207.</enum><header>High-priority research and extension initiatives</header><text display-inline="no-display-inline">Section 1672 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is amended—</text> <paragraph id="id84142751E76E4C168170E77E6BF1C5DD"><enum>(1)</enum><text>in the first sentence of subsection (a), by striking <quote>subsections (e) through (i) of</quote>;</text> </paragraph><paragraph id="id8743E61140EC4105A2C3EA2C06A2CD7E"><enum>(2)</enum><text>in subsection (b)(2)—</text> <subparagraph id="id2C20EBE134DA46269313DD7626E0CB35"><enum>(A)</enum><text>by striking the first sentence and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idF0C9E5966F744703BBE662C60E6CB629" style="OLC"> <subparagraph id="id286900E710CA4F24809EDB032878C8BB"><enum>(A)</enum><header>In general</header><text>To facilitate the making of research and extension grants under subsection (d), the Secretary may appoint a task force to make recommendations to the Secretary.</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph><subparagraph id="idA87CBCA6E95D41D5A000806C897999AE"><enum>(B)</enum><text>in the second sentence, by striking <quote>The Secretary may not incur costs in excess of $1,000 for any fiscal year in connection with each</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id06A0F3282EBA4EEAB4DFC9A28B88C8B1" style="OLC"> <subparagraph id="id6F39311D6FE343F298139913E8F7036A"><enum>(B)</enum><header>Costs</header><text>The Secretary may not incur costs in excess of $1,000 for any fiscal year in connection with a</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="idEAB96A701D244CF5985118A986865242"><enum>(3)</enum><text>in subsection (e)—</text> <subparagraph id="id13DC103F0AF447E0960C96754E01A5A2"><enum>(A)</enum><text>by striking paragraphs (1) through (5), (7), (8), (11) through (39), (41) through (43), (47), (48), (51), and (52);</text> </subparagraph><subparagraph id="id88769abd3dd34c8f8a211941ac63bd20"><enum>(B)</enum><text>by redesignating paragraphs (6), (9), (10), (40), (44), (45), (46), (49), and (50) as paragraphs (1), (2), (3), (4), (5), (6), (7), (8), and (9), respectively; and</text> </subparagraph><subparagraph id="id50440CED27B043E2959E0D9D9FDDBFD9"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id6EA6397F586A42E6B811E7DB384FE3FB" style="OLC"> <paragraph id="id5aa5b3fe094549378edf5c38b18210b6"><enum>(10)</enum><header>Corn, soybean meal, cereal grains, and grain byproducts research and extension</header><text>Research and extension grants may be made under this section for the purpose of carrying out or enhancing research to improve the digestibility, nutritional value, and efficiency of use of corn, soybean meal, cereal grains, and grain byproducts for the poultry and food animal production industries.</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="idDF7A12C416464B6B8AE757DA9963B61F"><enum>(4)</enum><text>by striking subsections (f), (g), and (i);</text> </paragraph><paragraph id="id9FDB24AD95424A7EB7D3BE7D043A0A8D"><enum>(5)</enum><text>by inserting after subsection (e) the following:</text> <quoted-block display-inline="no-display-inline" id="idEC6E8028BE4C447BAEDA625545B2AD9C" style="OLC"> <subsection id="idcbf8409d37634cff85222bacce6ce425"><enum>(f)</enum><header>Pulse health initiative</header> <paragraph id="id37d8cdc85d5846a88157d2c6b082ce57"><enum>(1)</enum><header>Definitions</header><text>In this subsection;</text> <subparagraph id="id13bfef368ae74e1f9f9d519317a99b6b"><enum>(A)</enum><header>Initiative</header><text>The term <term>Initiative</term> means the pulse health initiative established by paragraph (2).</text> </subparagraph><subparagraph id="id0cfee954d9b94f6f81e03e7eb024eb2a"><enum>(B)</enum><header>Pulse</header><text>The term <term>pulse</term> means dry beans, dry peas, lentils, and chickpeas or garbanzo beans.</text> </subparagraph></paragraph><paragraph id="idd7aa97495cbd4a33af6e11752dd1d8f7"><enum>(2)</enum><header>Establishment</header><text>Notwithstanding any other provision of law, during the period beginning on the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title> and ending on September 30, 2017, the Secretary shall carry out a pulse crop health and extension initiative to address the critical needs of the pulse crop industry by developing and disseminating science-based tools and information, including—</text> <subparagraph id="id57ea7ed029264e089af7ff00563bb1eb"><enum>(A)</enum><text>research in health and nutrition, such as—</text> <clause id="id61700fad771541a89e8629ee51f06b58"><enum>(i)</enum><text>identifying global dietary patterns of pulse crops in relation to population health;</text> </clause><clause id="id8716366578d44af08cc890b7b071f6dd"><enum>(ii)</enum><text>researching pulse crop diets and the ability of the diets to reduce obesity and associated chronic disease (including cardiovascular disease, type 2 diabetes, and cancer); and</text> </clause><clause id="id6fabf9083caf4aa196b55485a67c91aa"><enum>(iii)</enum><text>identifying the underlying mechanisms of the health benefits of pulse crop consumption (including disease biomarkers, bioactive components, and relevant plant genetic components to enhance the health promoting value of pulse crops);</text> </clause></subparagraph><subparagraph id="id20c1718b7074491583e7418e120cfa04"><enum>(B)</enum><text>research in functionality, such as—</text> <clause id="id6fe4fbdff1ce4c9f84a4d3b7241ff6af"><enum>(i)</enum><text>improving the functional properties of pulse crops and pulse fractions;</text> </clause><clause id="id1d8dc2cf5b1b4be28cf86a358e35eaee"><enum>(ii)</enum><text>developing new and innovative technologies to improve pulse crops as an ingredient in food products; and</text> </clause><clause id="id44d854d861094b56b48cf7d7d6e2c8ab"><enum>(iii)</enum><text>developing nutrient-dense food product solutions to ameliorate chronic disease and enhance food security worldwide;</text> </clause></subparagraph><subparagraph id="id0b3d13efd52f4d989aa73ad2453e2763"><enum>(C)</enum><text>research in sustainability to enhance global food security, such as—</text> <clause id="id62faecbc04904f648e303826e279504a"><enum>(i)</enum><text>plant breeding, genetics and genomics to improve productivity, nutrient density, and phytonutrient content for a growing world population;</text> </clause><clause id="ida374e4f902414892922d250db988e7e4"><enum>(ii)</enum><text>pest and disease management, including resistance to pests and diseases resulting in reduced application management strategies; and</text> </clause><clause id="id05d7148c3f254206b4d289ea2affd342"><enum>(iii)</enum><text>improving nitrogen fixation to reduce the carbon and energy footprint of agriculture;</text> </clause></subparagraph><subparagraph id="id8e50230803714bfea8d4336660f7fccc"><enum>(D)</enum><text>optimizing pulse cropping systems to reduce water usage; and</text> </subparagraph><subparagraph id="id48e211d2d3b04a63b66c0f910d43b83b"><enum>(E)</enum><text>education and technical service, such as—</text> <clause id="id4536386ffca74cb8bdbf454001cbc32c"><enum>(i)</enum><text>providing technical expertise to help food companies include nutrient-dense pulse crops in innovative and healthy foods; and</text> </clause><clause id="id45f4c4c5c6c44a89b76e355f59aabe2f"><enum>(ii)</enum><text>establishing an educational program to encourage the consumption and production of pulse crops in the United States and other countries.</text> </clause></subparagraph></paragraph><paragraph id="idb3f8264cac3f4ef3a9a3aa87ea5ca285"><enum>(3)</enum><header>Eligible entities</header><text>The Secretary may carry out the Initiative through—</text> <subparagraph id="idf851e4b24d1a472e96c6d2b1ab2f293d"><enum>(A)</enum><text>Federal agencies, including the Agricultural Research Service and the National Institute of Food and Agriculture;</text> </subparagraph><subparagraph id="id8614f02e11ad4f11972dbee16a8b782f"><enum>(B)</enum><text>National Laboratories;</text> </subparagraph><subparagraph id="id0f4f1261eceb410f89001eeb79998f6f"><enum>(C)</enum><text>institutions of higher education;</text> </subparagraph><subparagraph id="id2e41869959634c6b87870e4c1963b632"><enum>(D)</enum><text>research institutions or organizations;</text> </subparagraph><subparagraph id="id4bf22edaf82c4d1586251e1a7b7af8f0"><enum>(E)</enum><text>private organizations or corporations;</text> </subparagraph><subparagraph id="idb03e13d6ef5f468fb9a6389d2496aa69"><enum>(F)</enum><text>State agricultural experiment stations;</text> </subparagraph><subparagraph id="id9509abfcdcf54e748c64c6aaf929c7ea"><enum>(G)</enum><text>individuals; or</text> </subparagraph><subparagraph id="id9918aa9fa0044f87a9fa0bd92ca2bbe4"><enum>(H)</enum><text>groups consisting of 2 or more entities or individuals described in subparagraphs (A) through (G).</text> </subparagraph></paragraph><paragraph id="ida7699c35bbd24b6db5c68a284e4ddf58"><enum>(4)</enum><header>Research project grants</header> <subparagraph id="id38BF10A403DC46779CE419A3FE905260"><enum>(A)</enum><header>In general</header><text>In carrying out this subsection, the Secretary shall award grants on a competitive basis.</text> </subparagraph><subparagraph id="id821959de99b44ae4975577a717050e4f"><enum>(B)</enum><header>In general</header><text>The Secretary shall—</text> <clause id="idba8f2e0059fa448fb53be50ee0a4771c"><enum>(i)</enum><text>seek and accept proposals for grants;</text> </clause><clause id="idb3089b92288744868d581d3871772f82"><enum>(ii)</enum><text>determine the relevance and merit of proposals through a system of peer review, in consultation with the pulse crop industry; and</text> </clause><clause id="id0dd41efcb9ef4540a3a610ca568baeda"><enum>(iii)</enum><text>award grants on the basis of merit, quality, and relevance.</text> </clause></subparagraph><subparagraph id="id0a30e6e6a2114aa5b95ea5c23617d366"><enum>(C)</enum><header>Priorities</header><text>In making grants under this subsection, the Secretary shall provide a higher priority to projects that—</text> <clause id="id93bb3585ce164c128134dbdd8b5d68cd"><enum>(i)</enum><text>are multistate, multiinstitutional, and multidisciplinary; and</text> </clause><clause id="id5e70f3dc56ad4c98a13065df5ae814a7"><enum>(ii)</enum><text>include explicit mechanisms to communicate results to the pulse crop industry and the public.</text> </clause></subparagraph></paragraph><paragraph id="idf537de6114ac45fe807c14a402beecbd"><enum>(5)</enum><header>Authorization of Appropriations</header><text>There is authorized to be appropriated to carry out this subsection $25,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph></subsection><subsection id="idf4c9d170848648319d055937e760c7a1"><enum>(g)</enum><header>Training coordination for food and agriculture protection</header> <paragraph id="id23f451a4ec1f4473b53b85c6a32b9a6e"><enum>(1)</enum><header>In general</header><text>The Secretary shall make grants and enter into contracts or cooperative agreements with eligible entities described in paragraph (2) for the purposes of establishing a Comprehensive Food Safety Training Network.</text> </paragraph><paragraph id="id7fb63b755d3d47f79306aa3a8f095031"><enum>(2)</enum><header>Eligibility</header> <subparagraph id="id75201320EEFD4E928935CAC220104B57"><enum>(A)</enum><header>In general</header><text>For purposes of this subsection, an eligible entity is a multiinstitutional consortium that includes—</text> <clause id="id96322b37d95f44729a5a415cf18fe7ab"><enum>(i)</enum><text>a nonprofit institution that provides administering food protection training; and</text> </clause><clause id="id0631ac6ff1c54ee0a9d79664dadf4db7"><enum>(ii)</enum><text>1 or more training centers in institutions of higher education that have demonstrated expertise in developing and delivering community-based training in food and agricultural safety and defense.</text> </clause></subparagraph><subparagraph id="id24BF7B8C4E1F43389598A097AA1F4A69"><enum>(B)</enum><header>Requirements</header><text>To ensure that coordination and administration is provided across all the disciplines and provide comprehensive food protection training, the Secretary may only consider an entire consortium collectively rather than on an institution-by-institution basis.</text> </subparagraph><subparagraph id="id506B3B958B1E497B957BE0F364058B3E"><enum>(C)</enum><header>Membership</header><text>An eligible entity may alter the consortium membership to meet specific training expertise needs.</text> </subparagraph></paragraph><paragraph id="id5b268053ef5e445c825ab3d510510b92"><enum>(3)</enum><header>Duties of eligible entity</header><text>As a condition of the receipt of assistance under this subsection, an eligible entity, in cooperation with the Secretary, shall establish and maintain the network for an internationally integrated training system to enhance protection of the United States food supply, including, at a minimum—</text> <subparagraph id="id2b7131d2a2c1441a817f8551d4d7c78b"><enum>(A)</enum><text>developing curricula and a training network to provide basic, technical, management, and leadership training to regulatory and public health officials, producers, processors, and other agrifood businesses;</text> </subparagraph><subparagraph id="id45c169f503b74ecbbdd4deb6dcc71f82"><enum>(B)</enum><text>serving as the hub for the administration of an open training network;</text> </subparagraph><subparagraph id="id9f8da05c9aeb4175a407c1eb78d30bba"><enum>(C)</enum><text>implementing standards to ensure the delivery of quality training through a national curricula;</text> </subparagraph><subparagraph id="id7549a3db089840ce9eccbcfd02b4b60e"><enum>(D)</enum><text>building and overseeing a nationally recognized instructor cadre to ensure the availability of highly qualified instructors;</text> </subparagraph><subparagraph id="idb6c132e8e39c4e769ae945234c9e7dc5"><enum>(E)</enum><text>reviewing training proposed through the National Institute of Food and Agriculture and other relevant Federal agencies that report to the Secretary on the quality and content of proposed and existing courses;</text> </subparagraph><subparagraph id="id084ae948a2e44e709eb7ba27b40da964"><enum>(F)</enum><text>assisting Federal agencies in the implementation of food protection training requirements including requirements contained in the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>, the FDA Food Safety Modernization Act (Public Law 111–353; 124 Stat. 3885), and amendments made by those Acts; and</text> </subparagraph><subparagraph id="ide3a87354daaf42259b72f990f908ff25"><enum>(G)</enum><text>performing evaluation and outcome-based studies to provide to the Secretary feedback on the effectiveness and impact of training and metrics on jurisdictions and sectors within the food safety system.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idc826007ddfcc4430b89bdf9f66d6daa7"><enum>(4)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2013 through 2017, to remain available until expended.</text> </paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="HC65B39FD9594478A87F6AF0E8709CEE5"><enum>(6)</enum><text>in subsection (h), by striking <quote>2012</quote> each place it appears and inserting <quote>2017</quote>;</text> </paragraph><paragraph id="id641C36963E29422DAF175C0314B6F677"><enum>(7)</enum><text>by redesignating subsection (j) as subsection (i); and</text> </paragraph><paragraph id="H71627C4CE8384B209738E93443E588B7"><enum>(8)</enum><text display-inline="yes-display-inline">in subsection (i) (as so redesignated), by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph></section><section commented="no" id="H291AD44B869242729EA57760A1921463"><enum>7208.</enum><header>Organic agriculture research and extension initiative</header><text display-inline="no-display-inline">Section 1672B of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925b) is amended—</text> <paragraph commented="no" id="id3FD426BAC11C40B4B4B75806F0520E5C"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph commented="no" id="idE9B5C07DE68B4FA4ABF8E24F72378D12"><enum>(A)</enum><text>in the matter preceding paragraph (1), by inserting <quote>, education,</quote> after <quote>support research</quote>;</text> </subparagraph><subparagraph commented="no" id="idEE034FFBA289415080657DD8EE68008B"><enum>(B)</enum><text>in paragraph (1), by inserting <quote>and improvement</quote> after <quote>development</quote>;</text> </subparagraph><subparagraph commented="no" id="idA1D547D96450461396FBC2376F3F9192"><enum>(C)</enum><text>in paragraph (2), by striking <quote>to producers and processors who use organic methods</quote> and inserting <quote>of organic agricultural production and methods to producers, processors, and rural communities</quote>;</text> </subparagraph><subparagraph commented="no" id="id7401C190563247D9B30D57A0BD2BBB8D"><enum>(D)</enum><text>in paragraph (5), by inserting <quote>and researching solutions to</quote> after <quote>identifying</quote>; and</text> </subparagraph><subparagraph commented="no" id="id460BD6E2E01C465DB82C98A83DF5B941"><enum>(E)</enum><text>in paragraph (6), by striking <quote>and marketing</quote> and inserting <quote>, marketing, and food safety</quote>;</text> </subparagraph></paragraph><paragraph commented="no" id="id235C56A258D342B2AAEAB4B8E27D3356"><enum>(2)</enum><text>by striking subsection (e);</text> </paragraph><paragraph commented="no" id="id61FA230AF7C24709872CDF556528939B"><enum>(3)</enum><text>by redesignating subsection (f) as subsection (e); and</text> </paragraph><paragraph commented="no" id="id0496537F9B764F41B437962660D8DAA5"><enum>(4)</enum><text>in subsection (e) (as so redesignated)—</text> <subparagraph commented="no" id="idC1B76C89D41742C097C3F908D6D2DF30"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text> <clause commented="no" id="id45F1F266909547168EBFE3BDFE1BEAF5"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking <quote>and</quote> at the end;</text> </clause><clause commented="no" id="id248518F4FFF5468D9E35FA2E778A6E8B"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking the period at the end and inserting <quote>; and</quote>; and</text> </clause><clause commented="no" id="id4BAAC13DB2A3493B8A4BB22640CAAF3A"><enum>(iii)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idA1E9E2ACB60D440D8D72D65D13D04BBC" style="OLC"> <subparagraph commented="no" id="id905F75A673C84F908E6E137FF887F9C6"><enum>(C)</enum><text>$16,000,000 for each of fiscal years 2013 through 2017.</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph commented="no" id="idB7D3D5274F844ECE84DA01BAE374C3B5"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </subparagraph></paragraph></section><section id="H457BFECB764645708D2CF221E5649659"><enum>7209.</enum><header>Farm business management</header><text display-inline="no-display-inline">Section 1672D(d) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925f(d)) is amended by striking <quote>such sums as are necessary to carry out this section.</quote> and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="HFE57F2B15F8942559701B7B17DF85EA5" style="OLC"> <text>to carry out this section—</text><paragraph id="HB2DB075534994241872872E3033DE34D"><enum>(1)</enum><text display-inline="yes-display-inline">such sums as are necessary for fiscal year 2012; and</text> </paragraph><paragraph id="H5D1F33E1DB9D4427A9A9963B4A0E9BD6"><enum>(2)</enum><text>$5,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H1824A392F9F948DE9F18216CE9F93075"><enum>7210.</enum><header>Regional centers of excellence</header><text display-inline="no-display-inline">Subtitle H of the Food, Agriculture, Conservation, and Trade Act of 1990 is amended by inserting after section 1672D (7 U.S.C. 5925) the following:</text> <quoted-block display-inline="no-display-inline" id="H1C62512FCD8B42569B458944FC0845A3" style="OLC"> <section id="H2894AD8E5EBE404B9620B2C1B8A8F1F1"><enum>1673.</enum><header>Regional centers of excellence</header> <subsection id="H52D062C2C040482F8B9DED533860FD91"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Secretary may prioritize regional centers of excellence established for specific agricultural commodities for the receipt of funding.</text> </subsection><subsection id="H71391356228041EAA80377F22A4C4A16"><enum>(b)</enum><header>Composition</header><text>A regional center of excellence shall be composed of 1 or more colleges and universities (including land-grant institutions, schools of forestry, schools of veterinary medicine, or NLGCA Institutions (as defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103))) that provide financial support to the regional center of excellence.</text> </subsection><subsection id="HA25F935983B1425E81873115F78E0E9B"><enum>(c)</enum><header>Criteria for regional centers of excellence</header><text display-inline="yes-display-inline">The criteria for consideration to be a regional center of excellence shall include efforts—</text> <paragraph id="HF515691DC88448DD94E180D4C204DC9D"><enum>(1)</enum><text>to ensure coordination and cost-effectiveness by reducing unnecessarily duplicative efforts regarding research, teaching, and extension;</text> </paragraph><paragraph id="H8ED7F09D959B4691A24DCAA3E77F5CD6"><enum>(2)</enum><text>to leverage available resources by using public/private partnerships among agricultural industry groups, institutions of higher education, and the Federal Government;</text> </paragraph><paragraph id="H19D0CCCBACD84CE5BF4E292E9699F436"><enum>(3)</enum><text>to implement teaching initiatives to increase awareness and effectively disseminate solutions to target audiences through extension activities;</text> </paragraph><paragraph id="HE112E22E365B4E1B838C12DA512093F4"><enum>(4)</enum><text>to increase the economic returns to rural communities by identifying, attracting, and directing funds to high-priority agricultural issues; and</text> </paragraph><paragraph id="HF10B191256144A6D838F6B44335158B2"><enum>(5)</enum><text>to improve teaching capacity and infrastructure at colleges and universities (including land-grant institutions, schools of forestry, and schools of veterinary medicine, and NLGCA Institutions).</text> </paragraph></subsection><subsection id="id6981D176028742D98F3A2F22F192AB0E"><enum>(d)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2013 through 2017.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H8457F4F154CD43539AC9633FF1F572C8"><enum>7211.</enum><header>Assistive technology program for farmers with disabilities</header><text display-inline="no-display-inline">Section 1680(c)(1) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended—</text> <paragraph id="HC65BD2AE174147A8BCEC7F611EF49CC5"><enum>(1)</enum><text>by striking <quote>is</quote> and inserting <quote>are</quote>; and</text> </paragraph><paragraph id="H58370778B51240DAA98D027761CCEE21"><enum>(2)</enum><text>by striking <quote>section</quote> and all that follows and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="H29A07EC7460E4C62B40F2D67E6A197E9" style="OLC"> <text>section—</text><subparagraph id="H3556A587EAED43F0BFC4153A54455142"><enum>(A)</enum><text display-inline="yes-display-inline">$6,000,000 for each of fiscal years 1999 through 2012; and</text> </subparagraph><subparagraph id="H29051CDB61004B2D8C28D5AAB9729381"><enum>(B)</enum><text>$5,000,000 for each of fiscal years 2013 through 2017.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H71FE8499D01F4FBD8A4489332B53A24E"><enum>7212.</enum><header>National rural information center clearinghouse</header><text display-inline="no-display-inline">Section 2381(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section></subtitle><subtitle id="HEF2C7FF80EB94065B1B4CD674C685C54"><enum>C</enum><header>Agricultural Research, Extension, and Education Reform Act of 1998</header> <section id="H58596F65EC4644389B464CEECB6261C3"><enum>7301.</enum><header>Relevance and merit of agricultural research, extension, and education funded by the Department</header><text display-inline="no-display-inline">Section 103(a)(2) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7613(a)(2)) is amended—</text> <paragraph id="HCBC8CA33205F4487B703D638C0060CEB"><enum>(1)</enum><text display-inline="yes-display-inline">by striking the paragraph designation and heading and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id41897CA78E1649BE8743B38256684D17" style="OLC"> <paragraph id="idDFDAD99BF8FA4E068EED781D4BD83260"><enum>(2)</enum><header>Relevance and merit review of research, extension, and education grants</header> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H7CAFE22CEEB54D8E84EEF2BAC4309A2C"><enum>(2)</enum><text>in subparagraph (A)—</text> <subparagraph id="HBCDA91D9EAAE4960953F5B01F15D63CE"><enum>(A)</enum><text>by inserting <quote>relevance and</quote> before <quote>merit</quote>; and</text> </subparagraph><subparagraph id="H36023AAFC82F407995F9A4160D13660D"><enum>(B)</enum><text>by striking <quote>extension or education</quote> and inserting, <quote>research, extension, or education</quote>; and</text> </subparagraph></paragraph><paragraph id="H5828D3EF111A496F8A275F0823D4D3E8"><enum>(3)</enum><text>in subparagraph (B) by inserting <quote>on a continuous basis</quote> after <quote>procedures</quote>.</text> </paragraph></section><section id="HE6CEC8B483A04E2B9480EECC32CD19C9"><enum>7302.</enum><header>Integrated research, education, and extension competitive grants program</header><text display-inline="no-display-inline">Section 406(f) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="idd4b581a9af8844bdb121203e08ac69a9"><enum>7303.</enum><header>Support for research regarding diseases of wheat, triticale, and barley caused by Fusarium graminearum or by Tilletia indica</header><text display-inline="no-display-inline">Section 408(e) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by striking <quote>such sums as may be necessary for each of fiscal years 1999 through 2012</quote> and inserting <quote>$10,000,000 for each of fiscal years 2013 through 2017</quote>.</text> </section><section id="H45F4371DF4B64E61970C84BC26658F26"><enum>7304.</enum><header>Grants for youth organizations</header><text display-inline="no-display-inline">Section 410(d) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7630(d)) is amended by striking <quote>section such sums as are necessary</quote> and all that follows and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="H943F1C5591E446FB9DDFCBEA0422963D" style="OLC"> <text>section—</text><paragraph id="HAA7C2376A6364FAB8FC35DD55130CAF2"><enum>(1)</enum><text display-inline="yes-display-inline">such sums as are necessary for each of fiscal years 2008 through 2012; and</text> </paragraph><paragraph id="HAE41184FF7AF4F9ABBEB1B60AA8C2A0A"><enum>(2)</enum><text>$3,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section commented="no" id="HAAC18946C52148128CB5DC1C044E17C1"><enum>7305.</enum><header>Specialty crop research initiative</header><text display-inline="no-display-inline">Section 412 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7632) is amended—</text> <paragraph commented="no" id="id0491D01700344F698CDB76F4FE277F1E"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)(3), by inserting <quote>handling and processing,</quote> after <quote>production efficiency,</quote>;</text> </paragraph><paragraph commented="no" id="id04602432690C49DDBABB5A299C3279E8"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (e)—</text> <subparagraph commented="no" id="idFFEEE666BC864138AE1C0C92454B3EB3"><enum>(A)</enum><text>in paragraph (1)—</text> <clause commented="no" id="id67DDD29FCB644EF488E5BBCCE41D0E0F"><enum>(i)</enum><text>in subparagraph (B), by striking <quote>and</quote> at the end;</text> </clause><clause commented="no" id="idF3B98EDDFA334C4CA71E962CC00AEC8D"><enum>(ii)</enum><text>in subparagraph (C), by striking the period at the end and inserting <quote>; and</quote>; and</text> </clause><clause commented="no" id="idCFF8438BBF5946F783E677728C741F28"><enum>(iii)</enum><text>by inserting after subparagraph (C) the following:</text> <quoted-block display-inline="no-display-inline" id="idA9CA7EBCE2C44840ADBB56CE1E21B6A4" style="OLC"> <subparagraph id="id62a666a12488453c8167634ee1932d28"><enum>(D)</enum><text>consult with the specialty crops committee authorized under section 1408A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123a) during the peer and merit review process.</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph commented="no" id="idD112500BE6164F85B81933647223F385"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking <quote>non-Federal</quote> and all that follows through the end of the paragraph and inserting <quote>other sources in an amount that is at least equal to the amount provided by a grant received under this section.</quote>; and</text> </subparagraph></paragraph><paragraph commented="no" id="id5421FB15E8E94B1DB438E64977E521ED"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (h)—</text> <subparagraph commented="no" id="idC97FA5865F4F4BDA8253594DADEBE08D"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text> <clause commented="no" id="idC7680CE492C242D6BA72833929245060"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>(1) <header-in-text level="paragraph" style="OLC">In general</header-in-text>.—Of the funds</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idD148B37EC9B24799991A6A9F010C9AC6" style="OLC"> <paragraph commented="no" id="id0A0D4C3F8F904EBAB8556C6333373F10"><enum>(1)</enum><header>Mandatory funding</header> <subparagraph commented="no" id="idD8D9B5D51CDA46A8B4EEEEABEFD9F59B"><enum>(A)</enum><header>In general</header><text>Of the funds</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </clause><clause commented="no" id="id0C5521321E2D4D53992679FF2D857D5B"><enum>(ii)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id51EE7600E1D14FDDB0EE23A6B9E5E0ED" style="OLC"> <subparagraph commented="no" id="id2B838CD5F50241269B91212F9D0793BD"><enum>(B)</enum><header>Subsequent funding</header><text>Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section—</text> <clause commented="no" id="idC9A40333E3F745259896E679BCE996D5"><enum>(i)</enum><text>$25,000,000 for fiscal year 2013;</text> </clause><clause commented="no" id="idD427052E464C4A5B8CA9975EE44AA6AE"><enum>(ii)</enum><text>$30,000,000 for each of fiscal years 2014 and 2015;</text> </clause><clause commented="no" id="idFE0EF6D776454524B04DFAD0D56A10AF"><enum>(iii)</enum><text>$65,000,000 for fiscal year 2016; and</text> </clause><clause commented="no" id="id74F0B34FA64246DC853D818FDDFDF459"><enum>(iv)</enum><text>$50,000,000 for fiscal year 2017 and each fiscal year thereafter.</text> </clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph commented="no" id="id0D228B3572A84B12A9491B1A7B351887"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </subparagraph></paragraph></section><section id="H973F146091874C3B87CDF2760F5D3EC3"><enum>7306.</enum><header>Food animal residue avoidance database program</header><text display-inline="no-display-inline">Section 604(e) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7642(e)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="H420E95BAB4504A8B9040EDBFF35622B6"><enum>7307.</enum><header>Office of pest management policy</header><text display-inline="no-display-inline">Section 614(f) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended—</text> <paragraph id="HDECC06DF4AF143A6BE28ADCC365759EF"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>such sums as are necessary</quote>; and</text> </paragraph><paragraph id="H3BF32AA7C91F4E46AA56679E9AC733AE"><enum>(2)</enum><text>by striking <quote>section</quote> and all that follows and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="H91971E83EB954BB997E526A3501511CF" style="OLC"> <text>section—</text><paragraph id="HD9AF2DD092F149C4A733719F65017B9C"><enum>(1)</enum><text display-inline="yes-display-inline">such sums as are necessary for each of fiscal years 1999 through 2012; and</text> </paragraph><paragraph id="H69CD757A1A314A1A8DD6C84EFF2ED841"><enum>(2)</enum><text>$3,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="id49a17f4c790645578ab7b59b94d4cda5"><enum>7308.</enum><header>Authorization of regional integrated pest management centers</header><text display-inline="no-display-inline">Subtitle B of title VI of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7651 et seq.) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id017288BDDBC7419AAEEA101C75747684" style="OLC"> <section id="idE9C7C1020F5848618223F28501CD5C25"><enum>621.</enum><header>Authorization of regional integrated pest management centers</header> <subsection id="idc3c97816953241a6a5d120f2745a3da4"><enum>(a)</enum><header>In general</header><text>There are established 4 regional integrated pest management centers (referred to in this section as the <term>Centers</term>), which shall be located at such specific locations in the north central, northeastern, southern, and western regions of the United States as the Secretary shall specify.</text> </subsection><subsection id="id4b1d655c29dd4579911542d02d43231b"><enum>(b)</enum><header>Purposes</header><text>The purposes of the Centers shall be—</text> <paragraph id="id534a5255b9df47358b1d16f8ae9162fa"><enum>(1)</enum><text>to strengthen the connection of the Department with production agriculture, research, and extension programs, and agricultural stakeholders throughout the United States;</text> </paragraph><paragraph id="idc64ee940cb6b4db381b61b7c7d494162"><enum>(2)</enum><text>to increase the effectiveness of providing pest management solutions for the private and public sectors;</text> </paragraph><paragraph id="id743384a3164f4b23b76432a63b28e5d5"><enum>(3)</enum><text>to quickly respond to information needs of the public and private sectors; and</text> </paragraph><paragraph id="id9c26748a18494033ad987c0eed71de36"><enum>(4)</enum><text>to improve communication among the relevant stakeholders.</text> </paragraph></subsection><subsection id="id8af87dc092af40f9a544db197eec0e5f"><enum>(c)</enum><header>Duties</header><text>In meeting the purposes described in subsection (b) and otherwise carrying out this section, the Centers shall—</text> <paragraph id="idbcfe6c96c91e433b8da2d9faaeabd852"><enum>(1)</enum><text>develop regional strategies to address pest management needs;</text> </paragraph><paragraph id="idb8202cad44394ceabfa2a4f11489d395"><enum>(2)</enum><text>assist the Department and partner institutions of the Department in identifying, prioritizing, and coordinating a national pest management research, extension, and education program implemented on a regional basis;</text> </paragraph><paragraph id="id0b825509dc8c48fd90562e3fc01cdd9e"><enum>(3)</enum><text>establish a national pest management communication network that includes—</text> <subparagraph id="id4B89C0C2E55E44FAA07D945DAF52BF4D"><enum>(A)</enum><text>the agencies of the Department and other government agencies;</text> </subparagraph><subparagraph id="id8506E015017642359D6A2BA9A87B5C40"><enum>(B)</enum><text>scientists at institutions of higher education; and</text> </subparagraph><subparagraph id="id17C2A093397C4C7BAFB097E15CB8E881"><enum>(C)</enum><text>stakeholders focusing on pest management issues;</text> </subparagraph></paragraph><paragraph id="id7f3baf36e9574c51a1856162e720ad33"><enum>(4)</enum><text>serve as regional hubs responsible for ensuring efficient access to pest management expertise and data available through institutions of higher education; and</text> </paragraph><paragraph id="id606b68c0193943bebee863bbd600a5a6"><enum>(5)</enum><text>on behalf of the Department, manage grants that can be most effectively and efficiently delivered at the regional level, as determined by the Secretary.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section></subtitle><subtitle id="H1519E42B75844947B0CCFB97BBBF1E90"><enum>D</enum><header>Other Laws</header> <section id="H6A6A2DFD846944559BD55F754E294060"><enum>7401.</enum><header>Critical Agricultural Materials Act</header><text display-inline="no-display-inline">Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C. 178n(a)) is amended—</text> <paragraph id="HEA1F76BEF9524EE5B8D195CD78224678"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>such sums as are necessary</quote>; and</text> </paragraph><paragraph id="H92763FDCFB69473BB80015EEEB0B729A"><enum>(2)</enum><text>by striking <quote>Act</quote> and all that follows and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="H03C6DDC379C145DAA0C6623A08317E3C" style="OLC"> <text>Act—</text><paragraph id="HE94C6A77A60F465181D96D597A449EFF"><enum>(1)</enum><text display-inline="yes-display-inline">such sums as are necessary for each of fiscal years 1991 through 2012; and</text> </paragraph><paragraph id="H7619DB57B37C448A9A683CDF89B819C2"><enum>(2)</enum><text>$2,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H3E7B9BA4C83148DB9E09E2D3E037B7CA"><enum>7402.</enum><header>Equity in Educational Land-Grant Status Act of <enum-in-header>1994</enum-in-header></header> <subsection commented="no" id="HB3D23E97FF114A68B319A62B68278040"><enum>(a)</enum><header>Definition of 1994 institutions</header><text>Section 532 of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103–382) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id7FDADAF839124D6C9CE12E12BD45FCFD" style="OLC"> <section commented="no" display-inline="no-display-inline" id="IDDBED70FDDD20462A84BA4AAD9668E2EC" section-type="subsequent-section"><enum>532.</enum><header display-inline="yes-display-inline">Definition of 1994 Institutions</header><text display-inline="no-display-inline">In this part, the term <term>1994 Institutions</term> means any 1 of the following:</text> <paragraph id="ID0195CE7F446A4EB194F72FB6DF9CD410"><enum>(1)</enum><text>Aaniiih Nakoda College.</text> </paragraph><paragraph id="IDBC064B87F2BC4B558D2A94DA4D78DB06"><enum>(2)</enum><text>Bay Mills Community College.</text> </paragraph><paragraph id="IDE8605E71380B4DE0AAB4F00AB2354349"><enum>(3)</enum><text>Blackfeet Community College.</text> </paragraph><paragraph id="ID86D4FC45E1D744909D666D0C17B8BF67"><enum>(4)</enum><text>Cankdeska Cikana Community College.</text> </paragraph><paragraph id="ID9CF8B9F8F7804C5C89B70381DE6FF71C"><enum>(5)</enum><text>Chief Dull Knife Memorial College.</text> </paragraph><paragraph id="ID0FDEE791ED6D4338A6D4F72507D94983"><enum>(6)</enum><text>College of Menominee Nation.</text> </paragraph><paragraph commented="no" id="idCDB7B928E7DE49059AA25DD6C9F7BB6D"><enum>(7)</enum><text display-inline="yes-display-inline">College of the Muscogee Nation.</text> </paragraph><paragraph commented="no" id="id67C3DA49079145848B412204392BB8AB"><enum>(8)</enum><text>Comanche Nation College.</text> </paragraph><paragraph id="ID8BFEB709C3944D1D9EA9BCA2001827A8"><enum>(9)</enum><text>D-Q University.</text> </paragraph><paragraph id="IDC61FD955C89F4BEDB940CF2AE54E52FD"><enum>(10)</enum><text>Dine College.</text> </paragraph><paragraph id="ID2439A04DDD1145BABAB0752881869062"><enum>(11)</enum><text>Fond du Lac Tribal and Community College.</text> </paragraph><paragraph id="ID5C5BACD79FC54A81AACF0B520072F12D"><enum>(12)</enum><text>Fort Berthold Community College.</text> </paragraph><paragraph id="ID87E5DDE4A39D4F43A2EE5B203C1BB7D2"><enum>(13)</enum><text>Fort Peck Community College.</text> </paragraph><paragraph id="ID3842E5EDD1254CB48A1A1F2D6251EE08"><enum>(14)</enum><text>Haskell Indian Nations University.</text> </paragraph><paragraph id="IDDFC057FB24464CD5A289986BFA2D9647"><enum>(15)</enum><text>Ilisagvik College.</text> </paragraph><paragraph id="IDE498CD1BA1514FEA874370D18A69D233"><enum>(16)</enum><text>Institute of American Indian and Alaska Native Culture and Arts Development.</text> </paragraph><paragraph commented="no" id="id5412DB5DE13645DA9DDE155AF8DE18BA"><enum>(17)</enum><text display-inline="yes-display-inline">Keweenaw Bay Ojibwa Community College.</text> </paragraph><paragraph id="IDF227AEE03063447F93C2A5A7D17462C3"><enum>(18)</enum><text>Lac Courte Oreilles Ojibwa Community College.</text> </paragraph><paragraph id="ID518E6961A593449CA8E341B53608D5B4"><enum>(19)</enum><text>Leech Lake Tribal College.</text> </paragraph><paragraph id="ID94CEAF8944144D7DA3B7F658051B7B9B"><enum>(20)</enum><text>Little Big Horn College.</text> </paragraph><paragraph id="IDA149D50B295C411E99357D8A76BCF4C1"><enum>(21)</enum><text>Little Priest Tribal College.</text> </paragraph><paragraph id="idC3187F6FC90246D282614E92F5BEC175"><enum>(22)</enum><text>Navajo Technical College.</text> </paragraph><paragraph id="ID11CC3A1F56B64D71A636C55E01AD3408"><enum>(23)</enum><text>Nebraska Indian Community College.</text> </paragraph><paragraph id="ID763503536FC8442CAD313E896CE11F24"><enum>(24)</enum><text>Northwest Indian College.</text> </paragraph><paragraph id="ID8277EA09886B414AB4944EB509976D18"><enum>(25)</enum><text>Oglala Lakota College.</text> </paragraph><paragraph id="ID5A5544F6DC4E49B08075602256AE9BC5"><enum>(26)</enum><text>Saginaw Chippewa Tribal College.</text> </paragraph><paragraph id="IDFFD368FF375D47D4BFEBEE19F748E60E"><enum>(27)</enum><text>Salish Kootenai College.</text> </paragraph><paragraph id="IDCB06DE86624B4F61A126E196F70B2FA4"><enum>(28)</enum><text>Sinte Gleska University.</text> </paragraph><paragraph id="IDE49437F052814431A0E324B0BF71A4D7"><enum>(29)</enum><text>Sisseton Wahpeton College.</text> </paragraph><paragraph id="IDA3404C7C0DA042D39D082642AB29E510"><enum>(30)</enum><text>Sitting Bull College.</text> </paragraph><paragraph id="IDD527E8580BC04A8EB6D4DA4B168DD141"><enum>(31)</enum><text>Southwestern Indian Polytechnic Institute.</text> </paragraph><paragraph id="IDF044CFC1A4E14C4D871FED5680821846"><enum>(32)</enum><text>Stone Child College.</text> </paragraph><paragraph id="ID4DB048479041498B85970D551C1BE8B4"><enum>(33)</enum><text>Tohono O’odham Community College.</text> </paragraph><paragraph id="ID493A9A9DFC5147308CF55CC270D75D49"><enum>(34)</enum><text>Turtle Mountain Community College.</text> </paragraph><paragraph id="IDA9865C273FD448A2AE58C643BF19FF7A"><enum>(35)</enum><text>United Tribes Technical College.</text> </paragraph><paragraph id="IDAB70D276BD5F40FA8653CA0CFA2DA02D"><enum>(36)</enum><text>White Earth Tribal and Community College.</text> </paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H98F4D0AB19D64AB9A82E5EC95E52A1D3"><enum>(b)</enum><header>Endowment for 1994 institutions</header> <paragraph id="id3C6CFFF23F954BBCB090C9CC5533C5B2"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 533 of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103–382) is amended—</text> <subparagraph id="id437D5AE97B5A438B96D7A5A873984850"><enum>(A)</enum><text>in subsection (a)(2)(A)(ii), by striking <quote>of such Act as added by section 534(b)(1) of this part</quote> and inserting <quote>of that Act (7 U.S.C. 343(b)(3)) and for programs for children, youth, and families at risk and for Federally recognized tribes implemented under section 3(d) of that Act (7 U.S.C. 343(d))</quote>; and</text> </subparagraph><subparagraph id="idD29ACE76CAE74EADBF50A3A412FEF27C"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (b), in the first sentence by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </subparagraph></paragraph><paragraph id="idCF548FE0EF374CFFACD481936BA530F0"><enum>(2)</enum><header>Conforming amendment</header><text>Section 3(d) of the Smith-Lever Act (7 U.S.C. 343(d)) is amended in the second sentence by inserting <quote>and, in the case of programs for children, youth, and families at risk and for Federally recognized tribes, the 1994 Institutions (as defined in section 532 of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103–382)),</quote> before <quote>may compete for</quote>.</text> </paragraph></subsection><subsection id="HCF48F7DC478741B0934F29F2D27A95A9"><enum>(c)</enum><header>Institutional Capacity Building Grants</header><text display-inline="yes-display-inline">Section 535 of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103–382) is amended by striking <quote>2012</quote> each place it appears in subsections (b)(1) and (c) and inserting <quote>2017</quote>.</text> </subsection><subsection id="H58FDE25689664927805E068ACE672534"><enum>(d)</enum><header>Research grants</header><text display-inline="yes-display-inline"></text> <paragraph id="HDCF859B5BB7F4B18973F0A9BBB022E49"><enum>(1)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">Section 536(c) of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103–382) is amended in the first sentence by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph><paragraph id="H31DF350F909F46A5867268B7D23C9DB3"><enum>(2)</enum><header>Research grant requirements</header><text>Section 536(b) of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103–382) is amended by striking <quote>with at least 1 other land-grant college or university</quote> and all that follows and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="idF6A866D3C52F4055B5C86E011CA7375C" style="OLC"> <text>with—</text><paragraph id="H1E3D7322CAED483685CEF3DE80F78DB0"><enum>(1)</enum><text display-inline="yes-display-inline">the Agricultural Research Service of the Department of Agriculture; or</text> </paragraph><paragraph id="H113CCDABD8794B9FAE702820B00CB349"><enum>(2)</enum><text>at least 1—</text> <subparagraph id="H7630812D50864414A89E62CFCC651B4A"><enum>(A)</enum><text>other land-grant college or university (exclusive of another 1994 Institution);</text> </subparagraph><subparagraph id="HC1E9FA3CC4614FB4BFCAB03202E2F49A"><enum>(B)</enum><text>non-land-grant college of agriculture (as defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)); or</text> </subparagraph><subparagraph id="HB503AA6756444920B415706F77FDD28C"><enum>(C)</enum><text>cooperating forestry school (as defined in that section).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="id360ED9B332C84EAD849414E79261B77A"><enum>(e)</enum><header>Effective date</header><text>The amendments made by subsections (a), (b), and (d)(2) take effect on October 1, 2012.</text> </subsection></section><section id="HB0FBB86876834F0B961F09D23A290C58"><enum>7403.</enum><header>Research Facilities Act</header><text display-inline="no-display-inline">Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="H22ADE71EEF7649568FC0977D70CC9BC9"><enum>7404.</enum><header>Competitive, Special, and Facilities Research Grant Act</header><text display-inline="no-display-inline">Section 2 of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i) is amended—</text> <paragraph id="id50CF74B3EE1A4A59A579296E3F906939"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)(11)(A), in the matter preceding clause (i), by striking <quote>2012</quote> and inserting <quote>2017</quote>; and</text> </paragraph><paragraph id="idDB89FB732BDD4F2782D009BC466D3ADD"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idA33C235610844786B37736BBFBBF06A6" style="OLC"> <subsection id="id9B1CEE4BBB16417B8DAC28A55BD6D175"><enum>(l)</enum><header>Streamlining grant application process</header><text>Not later than 1 year after the date of enactment of this subsection, the Secretary shall submit to Congress a report that includes—</text> <paragraph id="id2E0C0B0E390E49C38CC3459779957B12"><enum>(1)</enum><text>an analysis of barriers that exist in the competitive grants process administered by the National Institute of Food and Agriculture that prevent eligible institutions and organizations with limited institutional capacity from successfully applying and competing for competitive grants; and</text> </paragraph><paragraph id="idAFD075CA45294A7698FB091229D6C7FF"><enum>(2)</enum><text>specific recommendations for future steps that the Department can take to streamline the competitive grants application process so as to remove the barriers and increase the success rates of applicants described in paragraph (1).</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H86F09A1C44704881AA1EB090527B2DDF"><enum>7405.</enum><header>Enhanced use lease authority pilot program under Department of Agriculture Reorganization Act of 1994</header><text display-inline="no-display-inline">Section 308(b)(6) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 3125a note; Public Law 103–354) is amended by striking subparagraph (A) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id884D16197E824F3F9C410B1821AE6F2F" style="OLC"> <subparagraph id="id4F30D924CE704F02A1CD262EA1180907"><enum>(A)</enum><text>on September 30, 2017; or</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H5F2E49968FAB428CB4BC12F94D571720"><enum>7406.</enum><header>Renewable Resources Extension Act of <enum-in-header>1978</enum-in-header></header> <subsection id="H4A910CD280B7485283F56F71C5CD935D"><enum>(a)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">Section 6 of the Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is amended in the first sentence by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </subsection><subsection id="HF08579E99DE242B9A9C6E3B12F74B28C"><enum>(b)</enum><header>Termination date</header><text display-inline="yes-display-inline">Section 8 of the Renewable Resources Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95–306) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </subsection></section><section id="HA86D0AB3F8F3475EB963E683DC15E1E6"><enum>7407.</enum><header>National Aquaculture Act of <enum-in-header>1980</enum-in-header></header><text display-inline="no-display-inline">Section 10 of the National Aquaculture Act of 1980 (16 U.S.C. 2809) is amended by striking <quote>2012</quote> each place it appears and inserting <quote>2017</quote>.</text> </section><section id="H3AE317618FF34FEA8CAC4B15E3AFECB5"><enum>7408.</enum><header>Beginning farmer and rancher development program under Farm Security and Rural Investment Act of <enum-in-header>2002</enum-in-header></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="id362BF152733A4B5FBF3EEF19B1ABF645"><enum>(1)</enum><text>in subsection (c)(8)—</text> <subparagraph id="id1123FF6A421D4E7BB7B5899345AF5589"><enum>(A)</enum><text>in subparagraph (B), by striking <quote>and</quote> at the end;</text> </subparagraph><subparagraph id="id82BC03F492634DB7A9ACD2E97DFFB34E"><enum>(B)</enum><text>in subparagraph (C), by striking the period at the end and inserting <quote>; and</quote>; and</text> </subparagraph><subparagraph id="idD80E099EA7E646CEB73F498B86D7B2EC"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idBDEA2F92E2E44A649FA9D443BF1447AE" style="OLC"> <subparagraph id="id6C54C03AC2324CDE8C8AE4CD7DC5F18B"><enum>(D)</enum><text>beginning farmers and ranchers who are veterans (as defined in section 101 of title 38, United States Code).</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="idD9202AF3397147A3879D235EB727F198"><enum>(2)</enum><text>by redesignating subsection (h) as subsection (i);</text> </paragraph><paragraph id="id40974D638BB44ED98E76139910088DFC"><enum>(3)</enum><text>by inserting after subsection (g) the following:</text> <quoted-block display-inline="no-display-inline" id="id79726312CD724C8093173F8E2EB9E8DF" style="OLC"> <subsection id="idB2F6CE0B0BC847718689B77416C649A1"><enum>(h)</enum><header>State grants</header> <paragraph id="idC816733C24F74987954B1ACCD055032C"><enum>(1)</enum><header>Definition of eligible entity</header><text>In this subsection, the term <term>eligible entity</term> means—</text> <subparagraph id="id7DCA269DE9164A1581DE911079C4A214"><enum>(A)</enum><text>an agency of a State or political subdivision of a State;</text> </subparagraph><subparagraph id="id9C2588BCD062418CA46C62797AE2B576"><enum>(B)</enum><text>a national, State, or regional organization of agricultural producers; and</text> </subparagraph><subparagraph id="idF707CA943E084BC0B9C954AF38FB0A7A"><enum>(C)</enum><text>any other entity determined appropriate by the Secretary.</text> </subparagraph></paragraph><paragraph id="idC1225AF4836E44F18354C136A55C373B"><enum>(2)</enum><header>Grants</header><text>The Secretary shall use such sums as are necessary of funds made available to carry out this section for each fiscal year under subsection (i) to make grants to States, on a competitive basis, which States shall use the grants to make grants to eligible entities to establish and improve farm safety programs at the local level.</text> </paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="id49F73750A3024C69AD06D3F609A6C8ED"><enum>(4)</enum><text>in subsection (i) (as redesignated by paragraph (2))—</text> <subparagraph id="idC9C2879423584C8EAC1203641E7DD824"><enum>(A)</enum><text>in paragraph (1)—</text> <clause id="id5C18FE2CCD5842F9B8BB72B18C702B76"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end;</text> </clause><clause id="id12AD373B305146588FCFC2475B79B57A"><enum>(ii)</enum><text>in subparagraph (B), by striking the period at the end and inserting <quote>; and</quote>; and</text> </clause><clause id="id222FE4AEA5644BA1A1D03D1576467F57"><enum>(iii)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idB1A7784A92B543CB935A8128BE384600" style="OLC"> <subparagraph commented="no" id="idCD3956D2C7604C2D8D1D96253D4BDB98"><enum>(C)</enum><text>$17,000,000 for each of fiscal years 2013 through 2017, to remain available until expended.</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph id="idB54CD964CC4141DCA9447EC972178DB4"><enum>(B)</enum><text>in paragraph (2), by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </subparagraph></paragraph></section></subtitle><subtitle id="H4F260175A20D4092BC74C2F6C7DF87E0"><enum>E</enum><header>Food, Conservation, and Energy Act of <enum-in-header>2008</enum-in-header></header> <part id="H0235708874954767BF0F7515569E1C30"><enum>I</enum><header>Agricultural Security</header> <section id="H85CAA378A5114F42A344175BB0418CA4"><enum>7501.</enum><header>Agricultural biosecurity communication center</header><text display-inline="no-display-inline">Section 14112 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8912) is amended by striking subsection (c) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id18E71AD3CA9E400A8BEF5F4285A65FB4" style="OLC"> <subsection id="id24AF23EEF3424E0C9DE01F4A132AF3FC"><enum>(c)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There are authorized to be appropriated to carry out this section—</text> <paragraph id="HC334C0DB876348D7B38C406F952A257E"><enum>(1)</enum><text display-inline="yes-display-inline">such sums as are necessary for each of fiscal years 2008 through 2012; and</text> </paragraph><paragraph id="HC07C40E4F90743ABB80F522473E63C34"><enum>(2)</enum><text>$2,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H54D1CB2C4E594C9198A8B2A98BE4E4D7"><enum>7502.</enum><header>Assistance to build local capacity in agricultural biosecurity planning, preparation, and response</header><text display-inline="no-display-inline">Section 14113 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8913) is amended—</text> <paragraph id="HA6B698BC82404855A3E960BFA0784AB8"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(2)—</text> <subparagraph id="H74FE900D693B43EC9588EE553365E4F8"><enum>(A)</enum><text>by striking <quote>such sums as may be necessary</quote>; and</text> </subparagraph><subparagraph id="H7DDA14E894984FD28D776708A31885BA"><enum>(B)</enum><text>by striking <quote>subsection</quote> and all that follows and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="HB71E4E11DF5B4F4F885C0BB90F6F8EB5" style="OLC"> <text>subsection—</text><paragraph id="H6FD4E69A66D849F3B283DFC2B8F97841"><enum>(1)</enum><text display-inline="yes-display-inline">such sums as are necessary for each of fiscal years 2008 through 2012; and</text> </paragraph><paragraph id="HE4E863C45D6F4BD7AACA72514B67BE00"><enum>(2)</enum><text display-inline="yes-display-inline">$15,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H6AF77354345A4D5ABC370ED68282C959"><enum>(2)</enum><text>in subsection (b)(2), by striking <quote>is authorized to be appropriated to carry out this subsection</quote> and all that follows and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="HA76243AC472E40CAA64473AC3A5E335A" style="OLC"> <text>are authorized to be appropriated to carry out this subsection—</text><paragraph id="H088F2845B61042598A5FE3292B1709CF"><enum>(1)</enum><text display-inline="yes-display-inline">$25,000,000 for each of fiscal years 2008 through 2012; and</text> </paragraph><paragraph id="HEE7D84C3D7A240AD87F26A597F6D4662"><enum>(2)</enum><text>$15,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="HECA38AD42D5047C6B068BDDEEC8C740D"><enum>7503.</enum><header>Research and development of agricultural countermeasures</header><text display-inline="no-display-inline">Section 14121(b) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8921(b)) is amended by striking <quote>is authorized to be appropriated to carry out this section</quote> and all that follows and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="HED38690BFCA94535B212E298AB7EB7F4" style="OLC"> <text>are authorized to be appropriated to carry out this section—</text><paragraph id="H40C237E6F17342C6A5C122692EEBE876"><enum>(1)</enum><text display-inline="yes-display-inline">$50,000,000 for each of fiscal years 2008 through 2012; and</text> </paragraph><paragraph id="H76CF565B07244E158F17603E16D0FF79"><enum>(2)</enum><text>$15,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H997944FF839F4263A08EBCB695A44DF2"><enum>7504.</enum><header>Agricultural biosecurity grant program</header><text display-inline="no-display-inline">Section 14122(e) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8922(e)) is amended—</text> <paragraph id="H74412A02F1604459B6830CA000FD7BFB"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>such sums as are necessary</quote>; and</text> </paragraph><paragraph id="H1805FBFAF6F34169888EC47CCA9F51CC"><enum>(2)</enum><text>by striking <quote>section</quote> and all that follows and inserting the following:</text> <quoted-block display-inline="yes-display-inline" id="HAA21E061F2D2461C9C942FE0E6FC88F5" style="OLC"> <text>section—</text><paragraph id="H8B40958B63EC412BB6124E40FD06981B"><enum>(1)</enum><text display-inline="yes-display-inline">such sums as are necessary for each of fiscal years 2008 through 2012, to remain available until expended; and</text> </paragraph><paragraph id="HF78C8DF2F42F41C79B0981E333975B0B"><enum>(2)</enum><text>$5,000,000 for each of fiscal years 2013 through 2017, to remain available until expended.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section></part><part id="H57A9F4F8F1D94EE9ADE2EC35633B307A"><enum>II</enum><header>Miscellaneous</header> <section id="idADD0DE6E8E5742D49EA3B9C1616B6305"><enum>7511.</enum><header>Grazinglands research laboratory</header><text display-inline="no-display-inline">Section 7502 of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 112 Stat. 2019) is amended by striking <quote>for the 5-year period beginning on the date of enactment of this Act</quote> and inserting <quote>until September 30, 2017</quote>.</text> </section><section id="id0C8E19C743774AC6A6C3797344C789A4"><enum>7512.</enum><header>Budget submission and funding</header><text display-inline="no-display-inline">Section 7506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7614c) is amended—</text> <paragraph id="id037422A24A96456EB14EBF9A705F6C4B"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="idE09DD7F5C7764874AE99F14FA6DD9E90"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>(a) <header-in-text level="subsection" style="OLC">Definition of competitive programs</header-in-text>.—In this section, the term</quote>; and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HE80CC57B73B343E1968170AF990A1EED" style="OLC"> <subsection id="id81EDA1C605C543638811512535576DE4"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="id3E1CD999218A4CAABFF6D077D1497D3E"><enum>(1)</enum><header>Competitive programs</header><text>The term</text> </paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph><subparagraph id="id1211C8DADA6D4B7EB1ACF87C939B75B2"><enum>(B)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id9CD6E5BBF74349E9A4ED6A0FA0AB4285" style="OLC"> <paragraph id="id9485C255B48945BB925417F1B50406BB"><enum>(2)</enum><header>Covered program</header><text>The term <term>covered program</term> means—</text> <subparagraph id="idD666FC51AF4249789AFC4B9DA2FD8DD1"><enum>(A)</enum><text display-inline="yes-display-inline">each research program carried out by the Agricultural Research Service or the Economic Research Service for which annual appropriations are requested in the annual budget submission of the President; and</text> </subparagraph><subparagraph id="id726C482DFF6F4B08AA9AD24F68EE8333"><enum>(B)</enum><text display-inline="yes-display-inline">each competitive program (as defined in section 251(f)(1) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6971(f)(1))) carried out by the National Institute of Food and Agriculture for which annual appropriations are requested in the annual budget submission of the President.</text> </subparagraph></paragraph><paragraph id="id4C950C7ADC4F4404943BADAB9B02FA42"><enum>(3)</enum><header>Request for awards</header><text>The term <term>request for awards</term> means a funding announcement published by the National Institute of Food and Agriculture that provides detailed information on funding opportunities at the Institute, including the purpose, eligibility, restriction, focus areas, evaluation criteria, regulatory information, and instructions on how to apply for such opportunities.</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="id3AAC4F1E28974462A5F78BC782859C67"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idE985A33A5193407AB8A1D67389924A18" style="OLC"> <subsection id="H271F6677461042FEB35A98CBABA34B5B"><enum>(e)</enum><header>Additional Presidential budget submission requirement</header> <paragraph id="idEE36768B3FC344A7A35789D9DCBFD325"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Each year, the President shall submit to Congress, together with the annual budget submission of the President, the information described in paragraph (2) for each funding request for a covered program.</text> </paragraph><paragraph id="HF9D3572A02AD4571A15A58ECE14F7FB5"><enum>(2)</enum><header>Information described</header><text display-inline="yes-display-inline">The information described in this paragraph includes—</text> <subparagraph id="HF3C9097A3DEE433BBB636A154C7DA45A"><enum>(A)</enum><text display-inline="yes-display-inline">baseline information, including with respect to each covered program—</text> <clause id="HDB3E5DA8F3B040B9BECB72252FBB523A"><enum>(i)</enum><text>the funding level for the program for the fiscal year preceding the year the annual budget submission of the President is submitted;</text> </clause><clause id="H7C1A61C9075C487C98E5CD2504B92A2A"><enum>(ii)</enum><text display-inline="yes-display-inline">the funding level requested in the annual budget submission of the President, including any increase or decrease in the funding level; and</text> </clause><clause id="HED65FF4047D84D9CA40258B776FFFBB7"><enum>(iii)</enum><text display-inline="yes-display-inline">an explanation justifying any change from the funding level specified in clause (i) to the level specified in clause (ii);</text> </clause></subparagraph><subparagraph id="HBD68490FF34C41E780E35D1EEEDFBC5C"><enum>(B)</enum><text display-inline="yes-display-inline">with respect to each covered program that is carried out by the Economic Research Service or the Agricultural Research Service, the location and staff years of the program;</text> </subparagraph><subparagraph id="H399B8DCA8ED44A2FB2942582DFD534E1"><enum>(C)</enum><text display-inline="yes-display-inline">the proposed funding levels to be allocated to, and the expected publication date, scope, and allocation level for, each request for awards to be published under—</text> <clause id="H7E4CFE981AAA4E82B35ABA0044FCE40F"><enum>(i)</enum><text>each priority area specified in section 2(b)(2) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)(2));</text> </clause><clause id="H5F73A05EED604580A900800A8FBD4E31"><enum>(ii)</enum><text>each research and extension project carried out under section 1621(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5811(a));</text> </clause><clause id="H1CDF1E8231B44FD2AE721C607B1AA4ED"><enum>(iii)</enum><text display-inline="yes-display-inline">each grant awarded under section 1672B(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925b(a));</text> </clause><clause id="H0F0E812824CE4738BE4CF456DE97A4F9"><enum>(iv)</enum><text>each grant awarded under section 412(b) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7632(b)); and</text> </clause><clause id="H950763FD85CC44E29A5F177DEF862F3D"><enum>(v)</enum><text>each grant awarded under 7405(c)(1) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3319f(c)(1)); or</text> </clause></subparagraph><subparagraph id="HC9D32DE9AF7B49478C9803ECC1CD1DF2"><enum>(D)</enum><text>any other information the Secretary determines will increase congressional oversight with respect to covered programs.</text> </subparagraph></paragraph><paragraph id="HAE7F23CCACB94590A349CD184E210A0E"><enum>(3)</enum><header>Prohibition</header><text display-inline="yes-display-inline">Unless the President submits the information described in paragraph (2)(C) for a fiscal year, the President may not carry out any program during the fiscal year that is authorized under—</text> <subparagraph id="HD1C6D7E639A84868A7F533740465C032"><enum>(A)</enum><text display-inline="yes-display-inline">section 2(b) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i(b));</text> </subparagraph><subparagraph id="H27869602225C46849CDB5FD75542AA1E"><enum>(B)</enum><text display-inline="yes-display-inline">section 1621 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5811);</text> </subparagraph><subparagraph id="H49E2C3956BFD4002B4FCEE0944A64C19"><enum>(C)</enum><text display-inline="yes-display-inline">section 1672B of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925b);</text> </subparagraph><subparagraph id="H45273EA915F543999391E11DA5B3D30B"><enum>(D)</enum><text display-inline="yes-display-inline">section 411 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7631); or</text> </subparagraph><subparagraph id="H31D0C5E119E94A31A500A39AB58B82DE"><enum>(E)</enum><text display-inline="yes-display-inline">section 7405 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3319f).</text> </subparagraph></paragraph></subsection><subsection id="H7F60CAE2264C45819242EA9A305C7207"><enum>(f)</enum><header>Report of the Secretary of Agriculture</header><text>Each year on a date that is not later than the date on which the President submits the annual budget submission, the Secretary shall submit to Congress a report containing a description of the agricultural research, extension, and education activities carried out by the Federal Government during the fiscal year that immediately precedes the year for which the report is submitted, including—</text> <paragraph id="H17B787FC38704914A0317C2C338E7BD7"><enum>(1)</enum><text>a review of the extent to which those activities—</text> <subparagraph id="H2294C80164214D8AAC4BDCCE2E7C854E"><enum>(A)</enum><text>are duplicative or overlap within the Department of Agriculture; or</text> </subparagraph><subparagraph id="H3BA91AEA864A47BF98ECE0FFD95B182C"><enum>(B)</enum><text>are similar to activities carried out by—</text> <clause id="H52E6A6D092C347D59D88379CABA90784"><enum>(i)</enum><text>other Federal agencies;</text> </clause><clause id="H2C56F6934894476896CB13F41AD95EA5"><enum>(ii)</enum><text>the States (including the District of Columbia, the Commonwealth of Puerto Rico and other territories or possessions of the United States);</text> </clause><clause id="H49E9C66EAAE040ACBB4764B214F4E445"><enum>(iii)</enum><text>institutions of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)); or</text> </clause><clause id="H38CA8030079447C9B3DDC438B7077319"><enum>(iv)</enum><text>the private sector; and</text> </clause></subparagraph></paragraph><paragraph id="H4BCF95795BCC472BB0CDC1E83E835BAC"><enum>(2)</enum><text>for each report submitted under this section on or after January 1, 2013, a 5-year projection of national priorities with respect to agricultural research, extension, and education, taking into account both domestic and international needs.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="HF010E5618A294CAA90308A75DB244E7D"><enum>7513.</enum><header>Natural products research program</header><text display-inline="no-display-inline">Section 7525 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 5937) is amended by striking subsection (e) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id293E16DA5D444EC4965C3D95672C5EEE" style="OLC"> <subsection id="id8F8CDEADF69B45189B4E9ABA0246D937"><enum>(e)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $7,000,000 for each of fiscal years 2013 through 2017.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section commented="no" id="H91F5F7ACF92649CE9C12A0579B6E3E15"><enum>7514.</enum><header>Sun grant program</header> <subsection commented="no" id="HB415249189A445B7AD1B4A0A580BE6A9"><enum>(a)</enum><header>In general</header><text>Section 7526 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8114) is amended—</text> <paragraph commented="no" id="HFE6B649F0457467CB6464329C09E61C5"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(4)(B), by striking <quote>the Department of Energy</quote> and inserting <quote>other appropriate Federal agencies (as determined by the Secretary)</quote>;</text> </paragraph><paragraph commented="no" id="idF1EE4B08EDB54490BB22C203A33BA036"><enum>(2)</enum><text>in subsection (b)(1)—</text> <subparagraph commented="no" id="id74AC1CB9D7954FAEBDAEBD2E04D073FC"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>at South Dakota State University</quote>;</text> </subparagraph><subparagraph commented="no" id="id90A70EE2E00B4A629C7C7F1A2127C828"><enum>(B)</enum><text>in subparagraph (B), by striking <quote>at the University of Tennessee at Knoxville</quote>;</text> </subparagraph><subparagraph commented="no" id="id8A93CF88D6644D46ABD5D61CC1381D03"><enum>(C)</enum><text>in subparagraph (C), by striking <quote>at Oklahoma State University</quote>;</text> </subparagraph><subparagraph commented="no" id="id432AD82E33344A878AC4553B8332E903"><enum>(D)</enum><text>in subparagraph (D), by striking <quote>at Oregon State University</quote>;</text> </subparagraph><subparagraph commented="no" id="id28FCEF3ABD3D4ED292F46468C3EB4730"><enum>(E)</enum><text>in subparagraph (E), by striking <quote>at Cornell University</quote>; and</text> </subparagraph><subparagraph commented="no" id="id244C1D3EAC3241C7AE55A6ABAD6D4A36"><enum>(F)</enum><text>in subparagraph (F), by striking <quote>at the University of Hawaii</quote>;</text> </subparagraph></paragraph><paragraph commented="no" id="H9B47E0112F444DB88DEE5325EAD54FA8"><enum>(3)</enum><text>in subsection (c)(1)—</text> <subparagraph commented="no" id="H9A25D93D440E4ADBA174E8E56206B037"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking <quote>multistate</quote> and all that follows through <quote>technology implementation</quote> and inserting <quote>integrated, multistate research, extension, and education programs on technology development and technology implementation</quote>;</text> </subparagraph><subparagraph commented="no" id="HDE6C6173ADC042E5973224DAAE94B800"><enum>(B)</enum><text>by striking subparagraph (C); and</text> </subparagraph><subparagraph commented="no" id="H82A092F9C63F43C4B73C73302EA57C83"><enum>(C)</enum><text>by redesignating subparagraph (D) as subparagraph (C);</text> </subparagraph></paragraph><paragraph commented="no" id="HDCFA012E8993455AB977C6F8463BCFAF"><enum>(4)</enum><text>in subsection (d)—</text> <subparagraph commented="no" id="id96E0676648614B99B008E6912FB47CC2"><enum>(A)</enum><text>in paragraph (1)—</text> <clause commented="no" id="id6B45CCF432FB4312ACE387395E58DEEB"><enum>(i)</enum><text>by striking <quote>gasification</quote> and inserting <quote>bioproducts</quote>; and</text> </clause><clause commented="no" id="idB3187AA3DAB74F0AA87D3DDE2F2C6825"><enum>(ii)</enum><text>by striking <quote>the Department of Energy</quote> and inserting <quote>other appropriate Federal agencies</quote>;</text> </clause></subparagraph><subparagraph commented="no" id="id32F572264CC94486B4AC339794CDEC6D"><enum>(B)</enum><text>by striking paragraph (2);</text> </subparagraph><subparagraph commented="no" id="id05C8913E7E75498BBE67A65E45467CA6"><enum>(C)</enum><text>by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively; and</text> </subparagraph><subparagraph commented="no" id="id8A95E4560BAF45D494BB5ABD00CEB1AE"><enum>(D)</enum><text>in paragraph (1), by striking <quote>in accordance with paragraph (2)</quote>; and</text> </subparagraph></paragraph><paragraph commented="no" id="H1D738AD6E084460494A3F78A8E9A3AC0"><enum>(5)</enum><text display-inline="yes-display-inline">in subsection (g), by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph></subsection><subsection commented="no" id="HED27C0C2F7C94D42A625FC55A9B461BA"><enum>(b)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">Section 7526(f) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8114(f)) is amended—</text> <paragraph commented="no" id="H97AFDA51241D467B9E26CC4277BA6CF1"><enum>(1)</enum><text>in paragraph (1), by striking <quote>subsection (c)(1)(D)(i)</quote> and inserting <quote>subsection (c)(1)(C)(i)</quote>; and</text> </paragraph><paragraph commented="no" id="H15A7CFC936534CDA951A7FA35B5006F6"><enum>(2)</enum><text>in paragraph (2), by striking <quote>subsection (d)(1)</quote> and inserting <quote>subsection (d)</quote>.</text> </paragraph></subsection></section></part></subtitle><subtitle id="id307ACF11A07A4902A986725016B78E84"><enum>F</enum><header>Miscellaneous</header> <section id="idc869053f47024afca1fab05ffc401aa3"><enum>7601.</enum><header>Foundation for Food and Agriculture Research</header> <subsection id="idE299DB069A334E8792A1825B4D92E12B"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="id1400256FC528498F8E04F579BE4A9B60"><enum>(1)</enum><header>Board</header><text>The term <term>Board</term> means the Board of Directors described in subsection (e).</text> </paragraph><paragraph id="id1704B41366964BB5B501578B5B705ED5"><enum>(2)</enum><header>Department</header><text>The term <term>Department</term> means the Department of Agriculture.</text> </paragraph><paragraph id="id663DA7DCDD9941FDA4C8E21CAC7E01C9"><enum>(3)</enum><header>Foundation</header><text>The term <term>Foundation</term> means the Foundation for Food and Agriculture Research established under subsection (b).</text> </paragraph><paragraph id="id91EBED1A565D4BD2A107F43501277AED"><enum>(4)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Agriculture.</text> </paragraph></subsection><subsection id="id593E01AF76AA40B2B614A5BE1F791D57"><enum>(b)</enum><header>Establishment</header> <paragraph id="idc300273eb987458f80b123600ef48ffe"><enum>(1)</enum><header>In general</header><text>The Secretary shall establish a nonprofit corporation to be known as the <quote>Foundation for Food and Agriculture Research</quote>.</text> </paragraph><paragraph id="idb560d281ddd940149c7e7ac6e67a74e8"><enum>(2)</enum><header>Status</header><text>The Foundation shall not be an agency or instrumentality of the United States Government.</text> </paragraph></subsection><subsection id="id03a6032034bd4c888b3b930229e30894"><enum>(c)</enum><header>Purposes</header><text display-inline="yes-display-inline">The purposes of the Foundation shall be—</text> <paragraph id="idc54df9cb7790425b8293463f4ca58cfc"><enum>(1)</enum><text>to advance the research mission of the Department by supporting agricultural research activities focused on addressing key problems of national and international significance including—</text> <subparagraph id="id8ae1947d018547e38fe41e63a7ad5560"><enum>(A)</enum><text>plant health, production, and plant products;</text> </subparagraph><subparagraph id="idb2339a5672da4e7e8d8944edae710b55"><enum>(B)</enum><text>animal health, production, and products;</text> </subparagraph><subparagraph id="id9e2d503c178649fc959c85e2a832e722"><enum>(C)</enum><text>food safety, nutrition, and health;</text> </subparagraph><subparagraph id="id9e5372951643488fad63fa651797a08d"><enum>(D)</enum><text>renewable energy, natural resources, and the environment;</text> </subparagraph><subparagraph id="idfb5ccf3522fb4bf8b146cde1df57375d"><enum>(E)</enum><text>agricultural and food security;</text> </subparagraph><subparagraph id="id20f7a658cb984ace8d4900f6d7c9e766"><enum>(F)</enum><text>agriculture systems and technology; and</text> </subparagraph><subparagraph id="idE71C04B9D93046CD9836607545E85B4E"><enum>(G)</enum><text>agriculture economics and rural communities; and</text> </subparagraph></paragraph><paragraph id="id574399da3cf24fbcaf54ea266d622979"><enum>(2)</enum><text>to foster collaboration with agricultural researchers from the Federal Government, institutions of higher education, industry, and nonprofit organizations.</text> </paragraph></subsection><subsection id="idf7a444be18da4ceab7ec3124144d1155"><enum>(d)</enum><header>Duties</header> <paragraph id="idee97101381b74b0b86ef2e237c1db085"><enum>(1)</enum><header>In general</header><text>The Foundation shall—</text> <subparagraph id="id48461a669c2b4c5f937b1f858f691be6"><enum>(A)</enum><text>award grants to, or enter into contracts, memoranda of understanding, or cooperative agreements with, scientists and entities, which may include agricultural research agencies in the Department, university consortia, public-private partnerships, institutions of higher education, nonprofit organizations, and industry, to efficiently and effectively advance the goals and priorities of the Foundation;</text> </subparagraph><subparagraph id="idecf0cc151ad043fca5d28c284f40fdfe"><enum>(B)</enum><text>in consultation with the Secretary—</text> <clause id="id3E84333B42A0475A834D62082D8FAF6C"><enum>(i)</enum><text>identify existing and proposed Federal intramural and extramural research and development programs relating to the purposes of the Foundation described in subsection (c); and</text> </clause><clause id="idC5D3E0C7F39946D18CB94F98982D87DE"><enum>(ii)</enum><text>coordinate Foundation activities with those programs so as to minimize duplication of existing efforts;</text> </clause></subparagraph><subparagraph id="idfb679a885d5148e1aac3ff7c9b3618a7"><enum>(C)</enum><text>identify unmet and emerging agricultural research needs after reviewing the Roadmap for Agricultural Research, Education and Extension as required by section 7504 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7614a);</text> </subparagraph><subparagraph id="id68ca719a017b4f7da3d9b455354fc0b6"><enum>(D)</enum><text>facilitate technology transfer and release of information and data gathered from the activities of the Foundation to the agricultural research community;</text> </subparagraph><subparagraph id="idc4a3b9caf6fb46cca873dbe5dfd94ab9"><enum>(E)</enum><text>promote and encourage the development of the next generation of agricultural research scientists; and</text> </subparagraph><subparagraph id="id95188f0a95104e46be20505a546017b7"><enum>(F)</enum><text>carry out such other activities as the Board determines to be consistent with the purposes of the Foundation.</text> </subparagraph></paragraph><paragraph id="idC5552F099FD6434BBD438CD81F07E0AA"><enum>(2)</enum><header>Authority</header><text>Subject to paragraph (3), the Foundation shall be the sole entity responsible for carrying out the duties enumerated in this subsection.</text> </paragraph><paragraph id="idbf7d56c6cb574b42903cac3e3b9547bc"><enum>(3)</enum><header>Relationship to other activities</header><text>The activities described in paragraph (1) shall be supplemental to any other activities at the Department and shall not preempt any authority or responsibility of the Department under another provision of law.</text> </paragraph></subsection><subsection id="id64d562160fe341ea968a8b68f73b7b6c"><enum>(e)</enum><header>Board of directors</header> <paragraph id="idcf78b809c5694c55952883f1023dbb40"><enum>(1)</enum><header>Establishment</header><text>The Foundation shall be governed by a Board of Directors.</text> </paragraph><paragraph id="idba4d138d9f704ec29f3c43436a414e4a"><enum>(2)</enum><header>Composition</header> <subparagraph id="id12dbb6f217244c1a833d8d977bf64a3c"><enum>(A)</enum><header>In general</header><text>The Board shall be composed of appointed and ex-officio, nonvoting members.</text> </subparagraph><subparagraph id="ida938281217f24bc0b8b20f6ceb24f771"><enum>(B)</enum><header>Ex-officio members</header><text>The ex-officio members of the Board shall be the following individuals or designees:</text> <clause id="iddd89f6f1a04241ee9b3162e1245b6ce7"><enum>(i)</enum><text>The Secretary.</text> </clause><clause id="id6ccbec54ec154bd589c000c2fbba1972"><enum>(ii)</enum><text>The Under Secretary of Agriculture for Research, Education, and Economics.</text> </clause><clause id="id9acc575798914a5d8c282f3076eaf72e"><enum>(iii)</enum><text>The Administrator of the Agricultural Research Service.</text> </clause><clause id="ide12c31ba0c764eb5b3d17d6791c12ba1"><enum>(iv)</enum><text>The Director of the National Institute of Food and Agriculture.</text> </clause><clause id="id18CFE1AEE5C343FA898B678B3DFFDE48"><enum>(v)</enum><text>The Director of the National Science Foundation.</text> </clause></subparagraph><subparagraph id="id4b78a2733d5042eeb7ef8a165c5cde5d"><enum>(C)</enum><header>Appointed members</header> <clause id="id94f5739d05e44727a4aeeef58e86cd03"><enum>(i)</enum><header>In general</header><text>The ex-officio members of the Board under subparagraph (B) shall, by majority vote, appoint to the Board 15 individuals, of whom—</text> <subclause id="idCF9C6A8540524BC3B3E857A0F77AED44"><enum>(I)</enum><text>8 shall be selected from a list of candidates to be provided by the National Academy of Sciences; and</text> </subclause><subclause id="id653B88A01F784A73826DC6369F645DE8"><enum>(II)</enum><text>7 shall be selected from lists of candidates provided by industry.</text> </subclause></clause><clause id="id5b942cff81f4430fb5040c8187199370"><enum>(ii)</enum><header>Requirements</header> <subclause id="idf633bb62f9ea41bea5da4e46b24632b4"><enum>(I)</enum><header>Expertise</header><text>The ex-officio members shall ensure that a majority of the members of the Board have actual experience in agricultural research and, to the extent practicable, represent diverse sectors of agriculture.</text> </subclause><subclause id="id8a32eb856bf34952949b50aea29ea35a"><enum>(II)</enum><header>Limitation</header><text>No employee of the Federal Government may serve as an appointed member of the Board under this subparagraph.</text> </subclause><subclause id="id7FE31E172CEE47E193D6B0373E843EAA"><enum>(III)</enum><header>Not Federal employment</header><text>Appointment to the Board under this subparagraph shall not constitute Federal employment.</text> </subclause></clause><clause id="ida390dd5de6304c4fa45e02b16174bbee"><enum>(iii)</enum><header>Authority</header><text>All appointed members of the Board shall be voting members.</text> </clause></subparagraph><subparagraph id="id4a38ac1b839c46a7a2cfffd2ca21a233"><enum>(D)</enum><header>Chair</header><text>The Board shall, from among the members of the Board, designate an individual to serve as Chair of the Board.</text> </subparagraph></paragraph><paragraph id="id85e0153818ae4cbc81e7b8683757218e"><enum>(3)</enum><header>Initial meeting</header><text>Not later than 60 days after the date of enactment of this Act, the Secretary shall convene a meeting of the ex-officio members of the Board—</text> <subparagraph id="iddc86691f7dcc4adea01f1fa8bb824c92"><enum>(A)</enum><text>to incorporate the Foundation; and</text> </subparagraph><subparagraph id="id60989c17fcc64069b9255d3b561f0f23"><enum>(B)</enum><text>to appoint the members of the Board in accordance with paragraph (2)(C)(i).</text> </subparagraph></paragraph><paragraph id="id35ee6335ee7f449fa8fe6d2eec692b4c"><enum>(4)</enum><header>Duties</header> <subparagraph id="id36fa0e0dbe2e45be845a345d9eaea646"><enum>(A)</enum><header>In general</header><text>The Board shall—</text> <clause id="id4f4d1cc393144c36854f3b44733a8a8b"><enum>(i)</enum><text>establish bylaws for the Foundation that, at a minimum, include—</text> <subclause id="id1f568c88493548378381f78dbc5e0ce2"><enum>(I)</enum><text>policies for the selection of future Board members, officers, employees, agents, and contractors of the Foundation;</text> </subclause><subclause id="id87f0e97327db45d9ac36742c046fed1a"><enum>(II)</enum><text>policies, including ethical standards, for—</text> <item id="idf29c19c070294ea0aa749c05ac847fe3"><enum>(aa)</enum><text>the acceptance, solicitation, and disposition of donations and grants to the Foundation; and</text> </item><item id="ide3db19e89a704630aa6f0247383eea8b"><enum>(bb)</enum><text>the disposition of assets of the Foundation, including appropriate limits on the ability of donors to designate, by stipulation or restriction, the use or recipient of donated funds;</text> </item></subclause><subclause id="id821a4e04e2404717af547a32f1dd303b"><enum>(III)</enum><text>policies that would subject all employees, fellows, trainees, and other agents of the Foundation (including members of the Board) to the conflict of interest standards under section 208 of title 18, United States Code;</text> </subclause><subclause id="iddea568eace95452caa2c415554fbe3df"><enum>(IV)</enum><text>policies for writing, editing, printing, publishing, and vending of books and other materials;</text> </subclause><subclause id="idd288d1d15c0748e49fd58d004ec27aa1"><enum>(V)</enum><text>policies for the conduct of the general operations of the Foundation, including a cap on administrative expenses for recipients of a grant, contract, or cooperative agreement from the Foundation; and</text> </subclause><subclause id="id95a3c09b9374474688ec945c191d38cf"><enum>(VI)</enum><text>specific duties for the Executive Director;</text> </subclause></clause><clause id="id557b90db669d4bc2a63ecf87cd501d35"><enum>(ii)</enum><text>prioritize and provide overall direction for the activities of the Foundation;</text> </clause><clause id="idd2d2ac6cb8494d7e882ff0e04c70ce5a"><enum>(iii)</enum><text>evaluate the performance of the Executive Director; and</text> </clause><clause id="idd374522b12dd4e95ae0eb22a61d5daf1"><enum>(iv)</enum><text>carry out any other necessary activities regarding the Foundation.</text> </clause></subparagraph><subparagraph id="id97b8fcecd168482484cfc225c181b927"><enum>(B)</enum><header>Establishment of bylaws</header><text>In establishing bylaws under subparagraph (A)(i), the Board shall ensure that the bylaws do not—</text> <clause id="id4ef39d29f8cc41a6b4006990eb5511e0"><enum>(i)</enum><text>reflect unfavorably on the ability of the Foundation to carry out the duties of the Foundation in a fair and objective manner; or</text> </clause><clause id="id7ae923aa771b436ea0b4545704e806a0"><enum>(ii)</enum><text>compromise, or appear to compromise, the integrity of any governmental agency or program, or any officer or employee employed by or involved in a governmental agency or program.</text> </clause></subparagraph></paragraph><paragraph id="id2e2d5db8f1d7496094a292822c09fc54"><enum>(5)</enum><header>Terms and vacancies</header> <subparagraph id="idcfef52ec5d524db2b47d8c8dc89bbce4"><enum>(A)</enum><header>Terms</header> <clause id="idb3f061d92967466d8c75d2bfabdc9cbb"><enum>(i)</enum><header>In general</header><text>The term of each member of the Board appointed under paragraph (2)(C) shall be 5 years.</text> </clause><clause id="id87ffccc8607c4abb8758cfb49ca40d10"><enum>(ii)</enum><header>Partial terms</header><text>If a member of the Board does not serve the full term applicable under clause (i), the individual appointed to fill the resulting vacancy shall be appointed for the remainder of the term of the predecessor of the individual.</text> </clause><clause id="id4cd4d4461a744eb7929037966df469b9"><enum>(iii)</enum><header>Transition</header><text>A member of the Board may continue to serve after the expiration of the term of the member until a successor is appointed.</text> </clause></subparagraph><subparagraph id="id8f37d97a4e1744d2b92f13025d1237f2"><enum>(B)</enum><header>Vacancies</header><text>Any vacancy in the membership of the Board shall be filled in the manner in which the original position was made and shall not affect the power of the remaining members to execute the duties of the Board.</text> </subparagraph></paragraph><paragraph id="id0bf8db13d7ba4991a9949e4cb44e5ea4"><enum>(6)</enum><header>Compensation</header><text>Members of the Board may not receive compensation for service on the Board but may be reimbursed for travel, subsistence, and other necessary expenses incurred in carrying out the duties of the Board.</text> </paragraph><paragraph id="id3d4a36b73ac645938af84d84d123647e"><enum>(7)</enum><header>Meetings and quorum</header><text>A majority of the members of the Board shall constitute a quorum for purposes of conducting business of the Board.</text> </paragraph></subsection><subsection id="idd45c98194f0b4dc18572bf5f28a179a6"><enum>(f)</enum><header>Administration</header> <paragraph id="idd0dfa034a37a47e8864eff0344cf1ded"><enum>(1)</enum><header>Executive Director</header> <subparagraph id="idd5f2cd04ee6641ad97c654d2e355f256"><enum>(A)</enum><header>In general</header><text>The Board shall hire an Executive Director who shall carry out such duties and responsibilities as the Board may prescribe.</text> </subparagraph><subparagraph id="id775f312775a34af4aa4d9846bd0db583"><enum>(B)</enum><header>Service</header><text>The Executive Director shall serve at the pleasure of the Board.</text> </subparagraph></paragraph><paragraph id="id7b8c57ab85484f74a185b3e61e85534f"><enum>(2)</enum><header>Administrative powers</header> <subparagraph id="id39d3a0b8e56642bfa0116288049329b9"><enum>(A)</enum><header>In general</header><text>In carrying out this section, the Board, acting through the Executive Director, may—</text> <clause id="ide8e3c039b30f467ca1a69d14e5b5e7e6"><enum>(i)</enum><text>adopt, alter, and use a corporate seal, which shall be judicially noticed;</text> </clause><clause id="id032394da6bc34f239e5fa1d0fa157cb4"><enum>(ii)</enum><text>hire, promote, compensate, and discharge 1 or more officers, employees, and agents, as may be necessary, and define the duties of the officers, employees, and agents;</text> </clause><clause id="id4f80ff15ea1f4ecf974257f7d561ae39"><enum>(iii)</enum><text>solicit and accept any funds, gifts, grants, devises, or bequests of real or personal property made to the Foundation, including such support from private entities;</text> </clause><clause id="idd5190f0ed17344e1be5c34502ff70c70"><enum>(iv)</enum><text>prescribe the manner in which—</text> <subclause id="id0bd29bc359bc421785df40caecaef185"><enum>(I)</enum><text>real or personal property of the Foundation is acquired, held, and transferred;</text> </subclause><subclause id="ide799eaa046194fe19f6b8a3447acb91f"><enum>(II)</enum><text>general operations of the Foundation are to be conducted; and</text> </subclause><subclause id="id024884261cbd4bf8be91ef5a9e016822"><enum>(III)</enum><text>the privileges granted to the Board by law are exercised and enjoyed;</text> </subclause></clause><clause id="id87df70935e664712a1c17a833b73fe0a"><enum>(v)</enum><text>with the consent of the applicable executive department or independent agency, use the information, services, and facilities of the department or agency in carrying out this section;</text> </clause><clause id="idf3ba6b4abda944309edb14fdbd0e668e"><enum>(vi)</enum><text>enter into contracts with public and private organizations for the writing, editing, printing, and publishing of books and other material;</text> </clause><clause id="idcf9b2f70d78c4dd4a7a4c1a69a408b20"><enum>(vii)</enum><text>hold, administer, invest, and spend any gift, devise, or bequest of real or personal property made to the Foundation;</text> </clause><clause id="idda95ed0bcfc942e89b6a0910607ec38c"><enum>(viii)</enum><text>enter into such contracts, leases, cooperative agreements, and other transactions as the Board considers appropriate to conduct the activities of the Foundation;</text> </clause><clause id="ida46c6b6cd043458e846544ae4e9c734b"><enum>(ix)</enum><text>modify or consent to the modification of any contract or agreement to which the Foundation is a party or in which the Foundation has an interest;</text> </clause><clause id="idd02d30b99ec04d89b84c9f84f0201d14"><enum>(x)</enum><text>take such action as may be necessary to obtain patents and licenses for devices and procedures developed by the Foundation and employees of the Foundation;</text> </clause><clause id="id0624dd57981b4983b381748caaaa3bb2"><enum>(xi)</enum><text>sue and be sued in the corporate name of the Foundation, and complain and defend in courts of competent jurisdiction;</text> </clause><clause id="id2a0762e9ace44dfc9eb2712655d2ba38"><enum>(xii)</enum><text>appoint other groups of advisors as may be determined necessary to carry out the functions of the Foundation; and</text> </clause><clause id="id4396f77571e54e04a63c151eab9907cf"><enum>(xiii)</enum><text>exercise such other incidental powers as are necessary to carry out the duties and functions of the Foundation in accordance with this section</text> </clause></subparagraph><subparagraph id="idd9520372c34d4d099ba986573ce7a8bc"><enum>(B)</enum><header>Limitation</header><text>No appointed member of the Board or officer or employee of the Foundation or of any program established by the Foundation (other than ex-officio members of the Board) shall exercise administrative control over any Federal employee</text> </subparagraph></paragraph><paragraph id="idf943971c0af54ff88ad9afc13bbc67ec"><enum>(3)</enum><header>Records</header> <subparagraph id="id1ec1033267ae4743bf7ebd22a3666cb1"><enum>(A)</enum><header>Audits</header><text>The Foundation shall—</text> <clause id="id3244c288d38a478aaf526f9982d332b1"><enum>(i)</enum><text>provide for annual audits of the financial condition of the Foundation; and</text> </clause><clause id="id802c3ed447ec4dc8a480986b6e992bd6"><enum>(ii)</enum><text>make the audits, and all other records, documents, and other papers of the Foundation, available to the Secretary and the Comptroller General of the United States for examination or audit.</text> </clause></subparagraph><subparagraph id="id4b0b691bc8974f5798b0a05d9b0449cf"><enum>(B)</enum><header>Reports</header> <clause id="idad91e5e3f6d2456d99d7875587d37c49"><enum>(i)</enum><header>Annual report on foundation</header> <subclause id="idfa6600fd5c3e4e06840c9aa4c99cc50b"><enum>(I)</enum><header>In general</header><text>Not later than 5 months following the end of each fiscal year, the Foundation shall publish a report for the preceding fiscal year that includes—</text> <item id="id7b853227da164693899d84485624a881"><enum>(aa)</enum><text>a description of Foundation activities, including accomplishments; and</text> </item><item id="id574cd001c1714c9780f6db206e72d884"><enum>(bb)</enum><text>a comprehensive statement of the operations and financial condition of the Foundation.</text> </item></subclause><subclause id="idb48e670265e541b4b500f9c240ffbb10"><enum>(II)</enum><header>Financial condition</header><text>Each report under subclause (I) shall include a description of all gifts or grants to the Foundation of real or personal property or money, which shall include—</text> <item id="id0F7850F4BB45466288082AB15F26259F"><enum>(aa)</enum><text>the source of the gifts or grants; and</text> </item><item id="id450A018A7A26488EADC279011379AA1F"><enum>(bb)</enum><text>any restrictions on the purposes for which the gift or grant may be used.</text> </item></subclause><subclause id="idb98dd54577f64913aefff8a02652027f"><enum>(III)</enum><header>Availability</header><text>The Foundation shall—</text> <item id="id7FB854024DC64BA1BD8D7D4D2CD1027D"><enum>(aa)</enum><text>make copies of each report submitted under subclause (I) available for public inspection; and</text> </item><item id="idAB7B3B71ECCA4A98AFC77D603BEAD031"><enum>(bb)</enum><text>on request, provide a copy of the report to any individual.</text> </item></subclause><subclause id="id97bc5811644b4a8c94233f90784fbdfd"><enum>(IV)</enum><header>Public meeting</header><text>The Board shall hold an annual public meeting to summarize the activities of the Foundation.</text> </subclause></clause><clause id="id4d0edfbdc79746e68ae2034864b95aad"><enum>(ii)</enum><header>Grant reporting</header><text>Any recipient of a grant under subsection (d)(1)(A) shall provide the Foundation with a report at the conclusion of any research or studies conducted the describes the results of the research or studies, including any data generated.</text> </clause></subparagraph></paragraph><paragraph id="id220ec5e80044423295c9799eb8eea018"><enum>(4)</enum><header>Integrity</header> <subparagraph id="id3bd6e11ee3524ac5bb01f28895452232"><enum>(A)</enum><header>In general</header><text>To ensure integrity in the operations of the Foundation, the Board shall develop and enforce procedures relating to standards of conduct, financial disclosure statements, conflict of interest (including recusal and waiver rules), audits, and any other matters determined appropriate by the Board.</text> </subparagraph><subparagraph id="idfe751eda6a4a479d8e5f4e7d938bf58f"><enum>(B)</enum><header>Financial conflicts of interest</header><text>Any individual who is an officer, employee, or member of the Board is prohibited from any participation in deliberations by the Foundation of a matter that would directly or predictably affect any financial interest of—</text> <clause id="idDEB249EC2B8B4BD2803DCEE4B668BB45"><enum>(i)</enum><text>the individual;</text> </clause><clause id="id904CC487A292437593DD78453C77991A"><enum>(ii)</enum><text>a relative (as defined in section 109 of the Ethics in Government Act of 1978 (5 U.S.C. App.)) of that individual; or</text> </clause><clause id="id20D5F1FEE03B42D48B09C8630393906B"><enum>(iii)</enum><text>a business organization or other entity in which the individual has an interest, including an organization or other entity with which the individual is negotiating employment.</text> </clause></subparagraph></paragraph><paragraph id="idd3dbed730cdb4e0bbe192a0339fc627e"><enum>(5)</enum><header>Intellectual property</header><text>The Board shall adopt written standards to govern ownership of any intellectual property rights derived from the collaborative efforts of the Foundation.</text> </paragraph><paragraph id="id3607828ad3474dc39d9b151bcda4d382"><enum>(6)</enum><header>Liability</header><text>The United States shall not be liable for any debts, defaults, acts, or omissions of the Foundation nor shall the full faith and credit of the United States extend to any obligations of the Foundation.</text> </paragraph></subsection><subsection id="ida06b7345f7fa48deb63c98ed72d2ea6f"><enum>(g)</enum><header>Funds</header> <paragraph id="idE24671723065457BB2601700F7DC4EDE"><enum>(1)</enum><header>Mandatory funding</header> <subparagraph id="id06A4EC7B62F0415986AE839ABE974BBE"><enum>(A)</enum><header>In general</header><text>On October 1, 2012, of the funds of the Commodity Credit Corporation, the Secretary shall transfer to the Foundation to carry out this section $100,000,000, to remain available until expended under the conditions described in subparagraph (B).</text> </subparagraph><subparagraph id="id496AF2A909A34C299DE6F2E5A33FE86F"><enum>(B)</enum><header>Conditions on expenditure</header><text>The Foundation may use the funds made available under subparagraph (A) to carry out the purposes of the Foundation only to the extent that the Foundation secures an equal amount of non-Federal matching funds for each expenditure.</text> </subparagraph><subparagraph id="id0FAE19900F4F45B896A1B66EC8EE8772"><enum>(C)</enum><header>Prohibition on construction</header><text>None of the funds made available under subparagraph (A) may be used for construction.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idba37832d1af14028a10d128244b51cac"><enum>(2)</enum><header>Separation of funds</header><text>The Executive Director shall ensure that any funds received under paragraph (1) are held in separate accounts from funds received from nongovernmental entities as described in subsection (f)(2)(A)(iii).</text> </paragraph></subsection></section><section id="idB86A9AEFF38A451CBC2A926851F3D308"><enum>7602.</enum><header>Objective and scholarly agricultural and food law research and information</header> <subsection id="idD7EC976B97FC4BCD9FFFD0F570582F22"><enum>(a)</enum><header>Findings</header><text>Congress finds that—</text> <paragraph id="idCAED851F644B4DFA982142A2E1550C7B"><enum>(1)</enum><text>the farms, ranches, and forests of the United States are impacted by a complex and rapidly evolving web of international, Federal, State, and local laws (including regulations);</text> </paragraph><paragraph id="id3A92BCE74607424AA60F331F9269E1F9"><enum>(2)</enum><text>objective, scholarly, and authoritative agricultural and food law research and information helps the farm, ranch, and forestry community contribute to the strength of the United States through improved conservation, environmental protection, job creation, economic development, renewable energy production, outdoor recreational opportunities, and increased local and regional supplies of food, fiber, and fuel; and</text> </paragraph><paragraph id="idE819A46748964141BB23B4990B953BF1"><enum>(3)</enum><text>the vast agricultural community of the United States, including farmers, ranchers, foresters, attorneys, policymakers, and extension personnel, need access to agricultural and food law research and information provided by an objective, scholarly, and neutral source.</text> </paragraph></subsection><subsection id="id2A51432787AF4102B3495D0843B69F26"><enum>(b)</enum><header>Partnerships</header><text>The Secretary, acting through the National Agricultural Library, shall support the dissemination of objective, scholarly, and authoritative agricultural and food law research and information by entering into partnerships with institutions of higher education that have expertise in agricultural and food law research and information.</text> </subsection><subsection id="idAC5E5B67EF004948ACA927B96D6281FB"><enum>(c)</enum><header>Restriction</header><text>For each fiscal year, the Secretary shall use not more than $1,000,000 of the amounts made available to the National Agricultural Library to carry out this section.</text> </subsection></section></subtitle><enum>VIII</enum><header>Forestry</header> <subtitle id="H806F40168E784829A442389CC22C46CD"><enum>A</enum><header>Repeal of certain forestry programs</header> <section id="H208121CC29354819B0CFD26CA235BFDC" section-type="subsequent-section"><enum>8001.</enum><header>Forest land enhancement program</header> <subsection id="HFFF5DFC916D94DFD9BCD8C70447A66CD"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 4 of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103) is repealed.</text> </subsection><subsection id="H2DBF7C808ADE49F7B17198B5C5C101AB"><enum>(b)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">Section 8002 of the Farm Security and Rural Investment Act of 2002 (Public Law 107–171; 16 U.S.C. 2103 note) is amended by striking subsection (a).</text> </subsection><subsection id="H4FCAF8F3023C4F84AC5B1657B26DEBDD"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall take effect on October 1, 2012.</text> </subsection></section><section id="HF67184972A114CE9BCCC9845777F23BB" section-type="subsequent-section"><enum>8002.</enum><header>Watershed forestry assistance program</header> <subsection id="H9FBD2140F907458686F1D3F6CAEC213A"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 6 of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103b) is repealed.</text> </subsection><subsection id="H8BC6D1F9279F4242844B9BC48879CC25"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall take effect on October 1, 2012.</text> </subsection></section><section id="H09DF2F6BCA164EAE828FE67128241198" section-type="subsequent-section"><enum>8003.</enum><header>Expired cooperative national forest products marketing program</header><text display-inline="no-display-inline">Section 18 of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2112) is repealed.</text> </section><section id="HE1AB57ACE9254878A91AFE3E18586D86" section-type="subsequent-section"><enum>8004.</enum><header>Hispanic-serving institution agricultural land national resources leadership program</header> <subsection id="H8D950EC892424C4393CE0B9CE45BA2BB"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 8402 of the Food, Conservation, and Energy Act of 2008 (16 U.S.C. 1649a) is repealed.</text> </subsection><subsection id="HF5D5A471FAD04AE589A85483CC956D14"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall take effect on October 1, 2012.</text> </subsection></section><section id="H89EFEC9D95124670B76C2AC5BD6CC8DE" section-type="subsequent-section"><enum>8005.</enum><header>Tribal watershed forestry assistance program</header> <subsection id="H18BAE2E1D2FA482382B832F91D491EE2"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 303 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6542) is repealed.</text> </subsection><subsection id="H97083D007BF34FB9A6DD84EE24516BF4"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall take effect on October 1, 2012.</text> </subsection></section></subtitle><subtitle id="H6A464BFEFF3C44CE8E38108ED827F569"><enum>B</enum><header>Reauthorization of Cooperative Forestry Assistance Act of 1978 programs</header> <section id="H84A03DC9E2C1495182C39735D158B279" section-type="subsequent-section"><enum>8101.</enum><header>State-wide assessment and strategies for forest resources</header><text display-inline="no-display-inline">Section 2A(f)(1) of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2101a(f)(1)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="idCB89AAFEDF93402AB6A958CA446F3F45" section-type="subsequent-section"><enum>8102.</enum><header>Forest stewardship program</header><text display-inline="no-display-inline">Section 5(h) of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103a(h)) is amended by striking <quote>such sums as may be necessary thereafter</quote> and inserting <quote>$50,000,000 for each of fiscal years 2013 through 2017</quote>.</text> </section><section id="id5E1CCAEE3E4341D49A511FD2B8216D24" section-type="subsequent-section"><enum>8103.</enum><header>Forest Legacy Program</header><text display-inline="no-display-inline">Section 7 of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103c) is amended by striking subsection (m) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HD9FE605634334A8C86AFBB2195EBB32F" style="OLC"> <subsection id="H56FBF73C33204112B83858C9FB2748FA"><enum>(m)</enum><header>Funding</header> <paragraph id="idD6EA068CDC2649C9846CDAF00FF4D32F"><enum>(1)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There is authorized to be appropriated to carry out this section $200,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><paragraph id="idc3f27367a81e4ad5937fdecc4e98b7cd"><enum>(2)</enum><header>Additional funding sources</header><text>In addition to any funds appropriated for each fiscal year to carry out this section, the Secretary may use any other Federal funds available to the Secretary.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H8DFC5309DEFC448299C61D8C83CD54D6" section-type="subsequent-section"><enum>8104.</enum><header>Community forest and open space conservation program</header><text display-inline="no-display-inline">Section 7A of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103d) is amended by striking subsection (g) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id8E9F30E3DCE94FF2B52C7442FD7DCFCA" style="OLC"> <subsection id="H93FEF5EB32FD4D48BBBAAE640E7A66DF"><enum>(g)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There is authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2013 through 2017.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="idE1C054AF421B48EE8BC5F647AA936511" section-type="subsequent-section"><enum>8105.</enum><header>Urban and community forestry assistance</header><text display-inline="no-display-inline">Section 9(i) of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2105(i)) is amended by striking <quote>such sums as may be necessary for each fiscal year thereafter</quote> and inserting <quote>$50,000,000 for each of fiscal years 2013 through 2017</quote>.</text> </section></subtitle><subtitle id="H52CBD04E75CC4D0CACB40937CC791A96"><enum>C</enum><header>Reauthorization of other forestry-related laws</header> <section id="HCD60FC0C0AB44167BB180C901D6D88A2" section-type="subsequent-section"><enum>8201.</enum><header>Rural revitalization technologies</header><text display-inline="no-display-inline">Section 2371(d)(2) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 6601(d)(2)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="H6C237A80E464464499E16837247294E1" section-type="subsequent-section"><enum>8202.</enum><header>Office of International Forestry</header><text display-inline="no-display-inline">Section 2405 of the Global Climate Change Prevention Act of 1990 (7 U.S.C. 6704) is amended by striking subsection (d) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H3261520584EB4C10BCC9EE423BE21EED" style="OLC"> <subsection id="HCA1417AB45E24B98AA554A5FAFCA233C"><enum>(d)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">To carry out this section, there are authorized to be appropriated—</text> <paragraph id="HD70A44213E4D4301BEA585B581127BA8"><enum>(1)</enum><text display-inline="yes-display-inline">such sums as are necessary for each of fiscal years 1996 through 2012; and</text> </paragraph><paragraph id="H0FDB456E9A624129AD056743F26EF5D3"><enum>(2)</enum><text display-inline="yes-display-inline">$10,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H9FB5A988F87B4B419AB283733C9BD50C" section-type="subsequent-section"><enum>8203.</enum><header>Insect infestations and related diseases</header> <subsection id="id2BB771E3BC344A1E9F9BDFFF0E80DB83"><enum>(a)</enum><header>Findings and purposes</header><text>Section 401 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6551) is amended—</text> <paragraph id="id22BBF5EA773F445BABF174801E93DAA0"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="idA0D0FBDBFB49444CBA2EDA2F4BB69D7F"><enum>(A)</enum><text>by redesignating paragraphs (3) through (12) as paragraphs (4) through (13), respectively; and</text> </subparagraph><subparagraph id="idF7F80F0B03DE4871941172E04B31792D"><enum>(B)</enum><text>by inserting after paragraph (2) the following:</text> <quoted-block display-inline="no-display-inline" id="idBCA5BBDE360A4DEC8A13073016CFFFE3" style="OLC"> <paragraph id="id00e913d8cc7b48a2acb729e784174bf0"><enum>(3)</enum><text>the mountain pine beetle is—</text> <subparagraph id="idfc0b1f7527d04adbafa883aaa130995c"><enum>(A)</enum><text>threatening and ravaging forests throughout the Western region of the United States, including Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, and South Dakota;</text> </subparagraph><subparagraph id="idcf3d9be92e17497099aca2f1fc83a058"><enum>(B)</enum><text>reaching epidemic populations and severely impacting over 41,000,000 acres in western forests; and</text> </subparagraph><subparagraph id="id1dfe70d362e443d89eaa3d944b029c2c"><enum>(C)</enum><text>deteriorating forest health in national forests and, when combined with drought, disease, and storm damage, is resulting in extreme fire hazards in national forests across the Western United States and endangering the economic stability of surrounding adjacent communities, ranches, and parks;</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="id760350702A824E70AF7BE92E3EDEC23C"><enum>(2)</enum><text>in subsection (b)—</text> <subparagraph id="id6C2143D1B32F4EFDB77B7EB7B69C8D19"><enum>(A)</enum><text>in paragraph (2), by striking <quote>and</quote> at the end;</text> </subparagraph><subparagraph id="idC0AF05E2F129401FBC981B49624A1603"><enum>(B)</enum><text>in paragraph (3), by striking the period at the end and inserting <quote>; and</quote>; and</text> </subparagraph><subparagraph id="id96D22D1E8B894D8DBEF6FE147A6BAE9F"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id5A0AE4748FA041B78C32B1396367EEA6" style="OLC"> <paragraph id="id1337a84049c14e38bec619e6c1f45f56"><enum>(4)</enum><text>to provide for designation of treatment areas pursuant to section 405.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection id="id08573095E56448E0866903CE52636F0C"><enum>(b)</enum><header>Designation of treatment areas</header><text>Title IV of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6551 et seq.) is amended—</text> <paragraph id="idB0599320141A4381ABB165F28891E771"><enum>(1)</enum><text>by redesignating sections 405 and 406 (16 U.S.C. 6555, 6556) as sections 406 and 407, respectively; and</text> </paragraph><paragraph id="id7C8EDCA3218F47DEAE3BFD0648B2B1D5"><enum>(2)</enum><text>by inserting after section 404 (16 U.S.C. 6554) the following:</text> <quoted-block display-inline="no-display-inline" id="idDAE3A103CE6540709BACB7E84E6B903D" style="OLC"> <section id="id36135d73359043d4a0cf8d6afcd28e6b"><enum>405.</enum><header>Designation of treatment areas</header> <subsection id="id752e3e4b1e66419fb5ca2d056c2510ca"><enum>(a)</enum><header>Designation of treatment areas</header><text>Not later than 60 days after the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>, the Secretary shall designate treatment areas on at least 1 national forest in each State, if requested by the Governor of the State, that the Secretary determines, based on annual forest health surveys, are experiencing declining forest health due to insect or disease infestation.</text> </subsection><subsection id="id915183a9061045498c829a76fb53f01d"><enum>(b)</enum><header>Treatment of areas</header><text>The Secretary may carry out treatments to address the insect or disease infestation in the areas designated under subsection (a) in accordance with sections 104, 105, 106, and 401.</text> </subsection><subsection id="idb2ff1fc2d81d44c5b4184b30e17192e6"><enum>(c)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $200,000,000 for each of fiscal years 2013 through 2017.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="idB768750C50184B53B50C8249052FC368"><enum>(c)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">Section 407 of the Healthy Forests Restoration Act of 2003 (as redesignated by subsection (b)(1)) is amended by striking <quote>2008</quote> and inserting <quote>2017</quote>.</text> </subsection></section><section id="id0D94B357E4A54540B2540471E54F9D07"><enum>8204.</enum><header>Stewardship end result contracting projects</header> <subsection id="id32DF34D1872A4F8488EEE456E292B44E"><enum>(a)</enum><header>In general</header><text>Title VI of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6591) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idF5499CA47EAF4A7E84E7723C648093AD" style="OLC"> <section id="id2416187D224D4CA19790931F7D32613C"><enum>602.</enum><header>Stewardship end result contracting projects</header> <subsection id="id1499e4638e5b46d7ab4404671536ba9a"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="id8FD6AA3EB38046ED96A5D66F80684A8B"><enum>(1)</enum><header>Chief</header><text>The term <term>Chief</term> means the Chief of the Forest Service.</text> </paragraph><paragraph id="idC6E334D3957E419DBF0C6CD993A08A75"><enum>(2)</enum><header>Director</header><text>The term <term>Director</term> means the Director of the Bureau of Land Management.</text> </paragraph></subsection><subsection id="id780950EE5996452B9648086659DD1C2A"><enum>(b)</enum><header>Projects</header><text>The Chief and the Director, via agreement or contract as appropriate, may enter into stewardship contracting projects with private persons or other public or private entities to perform services to achieve land management goals for the national forests and the public lands that meet local and rural community needs.</text> </subsection><subsection id="id671c172933ca4909822a0811bfb9f290"><enum>(c)</enum><header>Land management goals</header><text>The land management goals of a project under subsection (b) may include—</text> <paragraph id="idd972885329c74722a221cf1091748985"><enum>(1)</enum><text>road and trail maintenance or obliteration to restore or maintain water quality;</text> </paragraph><paragraph id="id2e48f869fbf14888b2af939c9a8ff16a"><enum>(2)</enum><text>soil productivity, habitat for wildlife and fisheries, or other resource values;</text> </paragraph><paragraph id="id23f0d334f32e429b8fbd1fc0d9bb87db"><enum>(3)</enum><text>setting of prescribed fires to improve the composition, structure, condition, and health of stands or to improve wildlife habitat;</text> </paragraph><paragraph id="id14e1df1bfbbc42fbaf61fe4258faed47"><enum>(4)</enum><text>removing vegetation or other activities to promote healthy forest stands, reduce fire hazards, or achieve other land management objectives;</text> </paragraph><paragraph id="iddb1612d2d48b431cac770bcd5c415952"><enum>(5)</enum><text>watershed restoration and maintenance;</text> </paragraph><paragraph id="id6661af64600a4ff8abf3b8f7e8ae6271"><enum>(6)</enum><text>restoration and maintenance of wildlife and fish; or</text> </paragraph><paragraph id="idc7dc7cc30a974fa1bfdd9cd011cd4652"><enum>(7)</enum><text>control of noxious and exotic weeds and reestablishing.</text> </paragraph></subsection><subsection id="id12ca5aa984ab43259b0787be4e34f1e5"><enum>(d)</enum><header>Agreements or contracts</header> <paragraph id="id0e1efffc9f35473999d40fe8d5cdb9c1"><enum>(1)</enum><header>Procurement procedure</header><text>A source for performance of an agreement or contract under subsection (b) shall be selected on a best-value basis, including consideration of source under other public and private agreements or contracts.</text> </paragraph><paragraph id="id3fd8fb71e6314affb458c3990f007e9b"><enum>(2)</enum><header>Contract for sale of property</header><text>A contract entered into under this section may, at the discretion of the Secretary of Agriculture, be considered a contract for the sale of property under such terms as the Secretary may prescribe without regard to any other provision of law.</text> </paragraph><paragraph id="id918e66ac0fda452e9a0002d5ae769c4e"><enum>(3)</enum><header>Term</header> <subparagraph id="idC4EE27FFB9E145EDA5F3294B6E280580"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the Chief and the Director may enter into a contract under subsection (b) in accordance with section 3903 of title 41, United States Code.</text> </subparagraph><subparagraph id="id2D5B5277682440EEAE00BD7CD4CD52F4"><enum>(B)</enum><header>Maximum</header><text>The period of the contract under subsection (b) may exceed 5 years but may not exceed 10 years.</text> </subparagraph></paragraph><paragraph id="id4d0d55fa173e4e1c9785463bc9eaf648"><enum>(4)</enum><header>Offsets</header> <subparagraph id="id28fa019300594280b053a24355044d27"><enum>(A)</enum><header>In general</header><text>The Chief and the Director may apply the value of timber or other forest products removed as an offset against the cost of services received under the agreement or contract described in subsection (b).</text> </subparagraph><subparagraph id="idec4fbcfa3620495b987f270ca3decbae"><enum>(B)</enum><header>Methods of appraisal</header><text>The value of timber or other forest products used as an offset under subparagraph (A)—</text> <clause id="id9b926fd6697e49f9ab8c3cfb8ca315ad"><enum>(i)</enum><text>shall be determined using appropriate methods of appraisal commensurate with the quantity of products to be removed; and</text> </clause><clause id="id6d0e8c8955014afda556facd69ab1fce"><enum>(ii)</enum><text>may—</text> <subclause id="idFE365F5A8BE9478EA45FFE74444636FA"><enum>(I)</enum><text>be determined using a unit of measure appropriate to the contracts; and</text> </subclause><subclause id="id9a04cd1c95fc46709a91454b8e784425"><enum>(II)</enum><text>may include valuing products on a per-acre basis.</text> </subclause></clause></subparagraph></paragraph><paragraph id="idd8ce1c59fdc54734abe50f0f1cfbd30b"><enum>(5)</enum><header>Relation to other laws</header><text>Notwithstanding subsections (d) and (g) of section 14 of the National Forest Management Act of 1976 (16 U.S.C. 472a), the Chief may enter into an agreement or contract under subsection (b).</text> </paragraph><paragraph id="id696f0266f10345a59dd7d027b1cac3bd"><enum>(6)</enum><header>Contracting officer</header><text>Notwithstanding any other provision of law, the Secretary or the Secretary of the Interior may determine the appropriate contracting officer to enter into and administer an agreement or contract under subsection (b).</text> </paragraph></subsection><subsection id="id278d29a9708941e9ba1d594298e4964b"><enum>(e)</enum><header>Receipts</header> <paragraph id="ide0b17b1578ed460cbc19f02e4b51797c"><enum>(1)</enum><header>In general</header><text>The Chief and the Director may collect monies from an agreement or contract under subsection (b) if the collection is a secondary objective of negotiating the contract that will best achieve the purposes of this section.</text> </paragraph><paragraph id="id20881fc8466b4c859b27be7162aca7c8"><enum>(2)</enum><header>Use</header><text>Monies from an agreement or contract under subsection (b)—</text> <subparagraph id="id66BEB599AB7546EA9D0299162D927241"><enum>(A)</enum><text>may be retained by the Chief and the Director; and</text> </subparagraph><subparagraph id="idE662A6ED676A44DFB07DDECA8623C24B"><enum>(B)</enum><text>shall be available for expenditure without further appropriation at the project site from which the monies are collected or at another project site.</text> </subparagraph></paragraph><paragraph id="idc7408490a8e4462ba8bfd4259b0fb62b"><enum>(3)</enum><header>Relation to other laws</header> <subparagraph id="id95B2C507F65042B6B7B9F38ADA988C41"><enum>(A)</enum><header>In general</header><text>Notwithstanding any other provision of law, the value of services received by the Chief or the Director under a stewardship contract project conducted under this section, and any payments made or resources provided by the contractor, Chief, or Director shall not be considered monies received from the National Forest System or the public lands.</text> </subparagraph><subparagraph id="id15022AD56ED643D299C7B0E2BA193869"><enum>(B)</enum><header>Knutson-Vanderberg Act</header><text>The Act of June 9, 1930 (commonly known as the <quote>Knutson-Vanderberg Act</quote>) (16 U.S.C. 576 et seq.) shall not apply to any agreement or contract under subsection (b).</text> </subparagraph></paragraph></subsection><subsection id="id7093b91d36244ff499604626bd7c634b"><enum>(f)</enum><header>Costs of removal</header><text>Notwithstanding the fact that a contractor did not harvest the timber, the Chief may collect deposits from a contractor covering the costs of removal of timber or other forest products under—</text> <paragraph id="id4E8ECB59297F4E349BAB1D96F5BDBC89"><enum>(1)</enum><text>the Act of August 11, 1916 (16 U.S.C. 490); and</text> </paragraph><paragraph id="idA52614A445324CC080793B6AF0F9439F"><enum>(2)</enum><text>and the Act of June 30, 1914 (16 U.S.C. 498).</text> </paragraph></subsection><subsection id="idc74bfdff073f4235bd7e5a50608b3a81"><enum>(g)</enum><header>Performance and payment guarantees</header> <paragraph id="idf8bee1cc21454766a63eaf725351251c"><enum>(1)</enum><header>In general</header><text>The Chief and the Director may require performance and payment bonds under sections 28.103–2 and 28.103–3 of the Federal Acquisition Regulation, in an amount that the contracting officer considers sufficient to protect the investment in receipts by the Federal Government generated by the contractor from the estimated value of the forest products to be removed under a contract under subsection (b).</text> </paragraph><paragraph id="id7bcfb44406ca4e369aff0d427b7a595d"><enum>(2)</enum><header>Excess offset value</header><text>If the offset value of the forest products exceeds the value of the resource improvement treatments, the Chief and the Director may—</text> <subparagraph id="id0681e4f7783e46e0aa67c51c89cf54dd"><enum>(A)</enum><text>collect any residual receipts under the Act of June 9, 1930 (commonly known as the <quote>Knutson-Vanderberg Act</quote>) (16 U.S.C. 576 et seq.); and</text> </subparagraph><subparagraph id="id73fdf8d2502c44cda3c94d767ac6d14c"><enum>(B)</enum><text>apply the excess to other authorized stewardship projects.</text> </subparagraph></paragraph></subsection><subsection id="id2b9316875f9e474aa15a0f118c4177b0"><enum>(h)</enum><header>Monitoring and evaluation</header> <paragraph id="idCC33500A45EA40A49110685E554E25E3"><enum>(1)</enum><header>In general</header><text>The Chief and the Director shall establish a multiparty monitoring and evaluation process that accesses the stewardship contracting projects conducted under this section.</text> </paragraph><paragraph id="idC3DF2786C52A4A20A5744892638744C0"><enum>(2)</enum><header>Participants</header><text>Other than the Chief and Director, participants in the process described in paragraph (1) may include—</text> <subparagraph id="idC2C98C734E1C44588FA2CF2A4BDD48BE"><enum>(A)</enum><text>any cooperating governmental agencies, including tribal governments; and</text> </subparagraph><subparagraph id="idBAE61ED0C2F64153B2E565E8C00CC59F"><enum>(B)</enum><text>any other interested groups or individuals.</text> </subparagraph></paragraph></subsection><subsection id="id9C4EDC9AEB8F44C68D037C663F345583"><enum>(i)</enum><header>Reporting</header><text>Not later than 1 year after the date of enactment of this section, and annually thereafter, the Chief and the Director shall report to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives on—</text> <paragraph id="id148af4ff94ab428bb299a2bf05626bb7"><enum>(1)</enum><text>the status of development, execution, and administration of agreements or contracts under subsection (b);</text> </paragraph><paragraph id="idf12c82126b374dc6a3c85a111a542b0a"><enum>(2)</enum><text>the specific accomplishments that have resulted; and</text> </paragraph><paragraph id="idf389d04a331042d98045371c1f511785"><enum>(3)</enum><text>the role of local communities in the development of agreements or contract plans.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="idCD2B2CC376B842388E32B67EDA9E88FA"><enum>(b)</enum><header>Conforming amendment</header><text>Section 347 of the Department of the Interior and Related Agencies Appropriations Act, 1999 (16 U.S.C. 2104 note; Public Law 105–277) is repealed.</text> </subsection></section><section id="idD55CCC4BC16E40219B90B2C2B5B44C00"><enum>8205.</enum><header>Healthy forests reserve program</header> <subsection id="idB26C75B163DD4AA1B45AEEF105484BE2"><enum>(a)</enum><header>Definition of acreage owned by Indian tribes</header><text display-inline="yes-display-inline">Section 502(e)(3) of the Healthy Forests Restoration Act (16 U.S.C. 6572(e)(3)) is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="id54E0848A45224290908D90B6AD00DBAF"><enum>(1)</enum><text>in subparagraph (C), by striking <quote>subparagraphs (A) and (B)</quote> and inserting <quote>clauses (i) and (ii)</quote>;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id34152C73A71343B0A12A50622D427C11"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (A) through (C) as clauses (i) through (iii), respectively, and indenting appropriately; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7000581C5DEC4501AD2627F3C44356F6"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>In the case of</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id402496345D6343088750FA1B62FF89BB" style="OLC"> <subparagraph commented="no" display-inline="no-display-inline" id="idCC421081E60A4246B48D240CEBAAE75A"><enum>(A)</enum><header>Definition of acreage owned by Indian tribes</header><text>In this paragraph, the term <term>acreage owned by Indian tribes</term> includes—</text> <clause commented="no" id="id49AA082EE8474469A989B531BBBA620F"><enum>(i)</enum><text>land that is held in trust by the United States for Indian tribes or individual Indians;</text> </clause><clause commented="no" id="id34E9EC85AAE44885A0B608A30A84A5CC"><enum>(ii)</enum><text>land, the title to which is held by Indian tribes or individual Indians subject to Federal restrictions against alienation or encumbrance;</text> </clause><clause commented="no" id="id238FA20BAC054C31BA67A3E20C09BCE2"><enum>(iii)</enum><text>land that is subject to rights of use, occupancy, and benefit of certain Indian tribes;</text> </clause><clause commented="no" id="id4080DCE60D0640849E731B3243AF28E6"><enum>(iv)</enum><text>land that is held in fee title by an Indian tribe; or</text> </clause><clause commented="no" id="id56C374BAA993420D891A9282EECC61FF"><enum>(v)</enum><text>land that is owned by a native corporation formed under section 17 of the Act of June 18, 1934 (commonly known as the <quote>Indian Reorganization Act</quote>) (25 U.S.C. 477) or section 8 of the Alaska Native Claims Settlement Act (43 U.S.C. 1607); or</text> </clause><clause commented="no" display-inline="no-display-inline" id="idBCE85072643D4049AAEF2930A69C897A"><enum>(vi)</enum><text>a combination of 1 or more types of land described in clauses (i) through (v).</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF4A43EDCF71B4B3C8F198753C2625C81"><enum>(B)</enum><header>Enrollment of acreage</header><text>In the case of</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HFE1A811CD4D94AA9BEA2A97FFB14F456"><enum>(b)</enum><header>Change in funding source for healthy forests reserve program</header><text display-inline="yes-display-inline">Section 508 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6578) is amended—</text> <paragraph id="HCADE4B5D98EB4117B765FE7A02753DC6"><enum>(1)</enum><text>in subsection (a), by striking <quote><header-in-text level="subsection" style="OLC">In general</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Fiscal years 2009 through 2012</header-in-text></quote>;</text> </paragraph><paragraph id="H206042E325F14A6EBCA041DBBBD9A4E4"><enum>(2)</enum><text>by redesignating subsection (b) as subsection (d); and</text> </paragraph><paragraph id="HD54DE269676E470499C1AFC2EAB845C6"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after subsection (a) the following:</text> <quoted-block display-inline="no-display-inline" id="HC89CFA7A8D4843058CC90FA870C4B774" style="OLC"> <subsection id="HD469E8BF81B240F3A9A2F0AACFCD1EDE"><enum>(b)</enum><header>Fiscal years 2013 through 2017</header><text display-inline="yes-display-inline">There is authorized to be appropriated to the Secretary of Agriculture to carry out this section $9,750,000 for each of fiscal years 2013 through 2017.</text> </subsection><subsection id="HF49DD287DCF34A08B4542197E21169BE"><enum>(c)</enum><header>Additional source of funds</header><text display-inline="yes-display-inline">In addition to funds appropriated pursuant to the authorization of appropriations in subsection (b) for a fiscal year, the Secretary may use such amount of the funds appropriated for that fiscal year to carry out the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590a et seq.) as the Secretary determines necessary to cover the cost of technical assistance, management, and enforcement responsibilities for land enrolled in the healthy forests reserve program pursuant to subsections (a) and (b) of section 504.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section></subtitle><subtitle id="HF024EC0B70D24C2D96C0AC6C198FF081"><enum>D</enum><header>Miscellaneous provisions</header> <section id="id26BFFE980F7D4C9A947674CABC0CCF7E" section-type="subsequent-section"><enum>8301.</enum><header>McIntire-Stennis Cooperative Forestry Act</header> <subsection id="id0723CCE132DB42A49476683D250A7C8C"><enum>(a)</enum><header>1890 waivers</header><text>Section 4 of Public Law 87–788 (commonly known as the <quote>McIntire-Stennis Cooperative Forestry Act</quote>) (16 U.S.C. 582a–3) is amended by inserting <quote>The matching funds requirement shall not be applicable to eligible 1890 Institutions (as defined in section 2 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7601)) if the allocation is below $200,000.</quote> before <quote>The Secretary is authorized</quote> in the second sentence.</text> </subsection><subsection id="idc95585277d474ee2867dd96f6bae66bc"><enum>(b)</enum><header>Participation</header><text>Section 8 of Public Law 87–788 (commonly known as the <quote>‘McIntire-Stennis Cooperative Forestry Act’’) (16 U.S.C. 582a–7) is amended by inserting <quote>the Federated States of Micronesia, American Samoa, the Northern Mariana Islands, the District of Columbia,</quote> before <quote>and Guam</quote></quote>.</text> </subsection><subsection id="idd1657e7c76334080b7c20ea73020bb18"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section take effect on October 1, 2012.</text> </subsection></section><section id="H997D8FD9DC6747009BADABD2E0CF86B2" section-type="subsequent-section"><enum>8302.</enum><header>Revision of strategic plan for forest inventory and analysis</header> <subsection id="H362CE8B528B741F2AA418CAC30968C31"><enum>(a)</enum><header>Revision required</header><text display-inline="yes-display-inline">Not later than 180 days after the date of enactment of this Act, the Secretary of Agriculture shall revise the strategic plan for forest inventory and analysis initially prepared pursuant to section 3(e) of the Forest and Rangeland Renewable Resources Research Act of 1978 (16 U.S.C. 1642(e)) to address the requirements imposed by subsection (b).</text> </subsection><subsection id="H06CCC6C93A5E49E9929B79A7C2AEDF64"><enum>(b)</enum><header>Elements of revised strategic plan</header><text display-inline="yes-display-inline">In revising the strategic plan, the Secretary of Agriculture shall describe in detail the organization, procedures, and funding needed to achieve each of the following:</text> <paragraph id="HEF4ADC74768D4A86937E0BDE93154F6E"><enum>(1)</enum><text>Complete the transition to a fully annualized forest inventory program and include inventory and analysis of interior Alaska.</text> </paragraph><paragraph id="HE45F978919254F3892A4E22131256F5C"><enum>(2)</enum><text>Implement an annualized inventory of trees in urban settings, including the status and trends of trees and forests, and assessments of their ecosystem services, values, health, and risk to pests and diseases.</text> </paragraph><paragraph id="HF7309AC104A94526B1AEF729B6294BE7"><enum>(3)</enum><text>Report information on renewable biomass supplies and carbon stocks at the local, State, regional, and national level, including by ownership type.</text> </paragraph><paragraph id="H7E97726495DA4CF380C45E7E11C3A8B7"><enum>(4)</enum><text display-inline="yes-display-inline">Engage State foresters and other users of information from the forest inventory and analysis in reevaluating the list of core data variables collected on forest inventory and analysis plots with an emphasis on demonstrated need.</text> </paragraph><paragraph id="H3776289AF677450493348407054023A8"><enum>(5)</enum><text>Improve the timeliness of the timber product output program and accessibility of the annualized information on that database.</text> </paragraph><paragraph id="H0F543387F5C94AE39A35A9AB2C2AF109"><enum>(6)</enum><text display-inline="yes-display-inline">Foster greater cooperation among the forest inventory and analysis program, research station leaders, and State foresters and other users of information from the forest inventory and analysis.</text> </paragraph><paragraph id="H7FB50B5555FA4E1FB7906FFFF3BA0BD4"><enum>(7)</enum><text>Availability of and access to non-Federal resources to improve information analysis and information management.</text> </paragraph><paragraph id="H5B4A26A9B46D429D9EFEAF3F6B3D0786"><enum>(8)</enum><text display-inline="yes-display-inline">Collaborate with the Natural Resources Conservation Service, National Aeronautics and Space Administration, National Oceanic and Atmospheric Administration, and United States Geological Survey to integrate remote sensing, spatial analysis techniques, and other new technologies in the forest inventory and analysis program.</text> </paragraph><paragraph id="H214262A40B9448CEAD454450A42A980B"><enum>(9)</enum><text>Understand and report on changes in land cover and use.</text> </paragraph><paragraph id="HB5C8D4D2D928462CB51B62C2A5E15DF6"><enum>(10)</enum><text display-inline="yes-display-inline">Expand existing programs to promote sustainable forest stewardship through increased understanding, in partnership with other Federal agencies, of the over 10 million family forest owners, their demographics, and the barriers to forest stewardship.</text> </paragraph><paragraph id="H4D133784A444422984C9BD9D416E0A65"><enum>(11)</enum><text>Implement procedures to improve the statistical precision of estimates at the sub-State level.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE626D384957945DEAE94AF26DFD01910"><enum>(c)</enum><header>Submission of revised strategic plan</header><text display-inline="yes-display-inline">The Secretary of Agriculture shall submit the revised strategic plan to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.</text> </subsection></section></subtitle><enum>IX</enum><header>Energy</header> <section id="H8433B8FD6F2A4CFD9CB3634BB5FC6460" section-type="subsequent-section"><enum>9001.</enum><header>Definition of renewable chemical</header><text display-inline="no-display-inline">Section 9001 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8101) is amended—</text> <paragraph id="H1C6A64B1932E4052A4325A5E37E3DCE1"><enum>(1)</enum><text>by redesignating paragraphs (13) and (14) as paragraphs (14) and (15) respectively; and</text> </paragraph><paragraph id="H9642CB370E43402593991D8994B2BAF3"><enum>(2)</enum><text>by inserting after paragraph (12) the following:</text> <quoted-block display-inline="no-display-inline" id="idCECE3A9DDC034BD9A9116C43632301E1" style="OLC"> <paragraph commented="no" id="H52F241C59EF749F28FD4DB7810574ED9"><enum>(13)</enum><header>Renewable chemical</header><text>The term <term>renewable chemical</term> means a monomer, polymer, plastic, formulated product, or chemical substance produced from renewable biomass.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section display-inline="no-display-inline" id="H52D8F25DFDDC46B092E8C86C1B1B419D" section-type="subsequent-section"><enum>9002.</enum><header>Biobased markets program</header> <subsection display-inline="no-display-inline" id="id3B1909AA30504C32B4206B47F8B24D6C"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 9002 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102) is amended—</text> <paragraph id="id20B648526CEE427D9022571D9F88C9D1"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="id85c0bd3de9f24655969f3189ca223e38"><enum>(A)</enum><text>in paragraph (2)(A)(i)—</text> <clause id="idf68e875fd982429eab5a98303c1b7239"><enum>(i)</enum><text>in subclause (I), by striking <quote>and</quote> at the end;</text> </clause><clause id="id882dbd855c9944cbae626e6c7e649165"><enum>(ii)</enum><text>in subclause (II)(bb), by striking the period at the end and inserting <quote>; and</quote>; and</text> </clause><clause id="id80ce2b46ab7c43c3ac5f32acccc0c0a8"><enum>(iii)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id0C22CBB445C941EFACC1AF31668764B4" style="OLC"> <subclause id="idbf7413e716304930b9bc847bccf09207"><enum>(III)</enum><text>establish a targeted biobased-only procurement requirement under which the procuring agency shall issue a certain number of biobased-only contracts when the procuring agency is purchasing products, or purchasing services that include the use of products, that are included in a biobased product category designated by the Secretary.</text> </subclause><after-quoted-block>; and</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph id="id6CE0CAD4F6D24E55A397057473C10EC5"><enum>(B)</enum><text>in paragraph (3)—</text> <clause id="id505E40EAD98743EC8C7898646FC23998"><enum>(i)</enum><text>in subparagraph (B)—</text> <subclause id="ide8553b839654414ab1e27f624b1829c0"><enum>(I)</enum><text>in clause (v), by inserting <quote>as determined to be necessary by the Secretary based on the availability of data,</quote> before <quote>provide information</quote>;</text> </subclause><subclause id="id781a701f20d743559782bab7bf49fd8d"><enum>(II)</enum><text>by redesignating clauses (v) and (vi) as clauses (vii) and (viii), respectively; and</text> </subclause><subclause id="id68f032d8670a4632b4fa6a87b1efbf6a"><enum>(III)</enum><text>by inserting after clause (iv) the following:</text> <quoted-block display-inline="no-display-inline" id="idf77ab1fe9a334fbb903329ee925a1c45" style="OLC"> <clause commented="no" display-inline="no-display-inline" id="ida6799b74517e41d79d1f458d0509cf94"><enum>(v)</enum><text display-inline="yes-display-inline">require reporting of quantities and types of biobased products purchased by procuring agencies;</text> </clause><clause id="id392fd9dfcf2c45ddbf6c5d827362b2c7"><enum>(vi)</enum><text>focus on products that apply an innovative approach to growing, harvesting, procuring, processing, or manufacturing biobased products regardless of the date of entry of the products into the marketplace;</text> </clause><after-quoted-block>; and</after-quoted-block></quoted-block> </subclause></clause><clause id="id73a1a3de57514740ac288b9bc6f19480"><enum>(ii)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id328A28433932449ABBDC3261B5FDED2B" style="OLC"> <subparagraph id="id80714bdf1dfa4cba9b51a91d5a5100cc"><enum>(F)</enum><header>Required designations</header><text>Not later than 1 year after the date of enactment of this subparagraph, the Secretary shall begin to designate intermediate ingredients or feedstocks and assembled and finished biobased products in the guidelines issued under this paragraph.</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </clause></subparagraph></paragraph><paragraph id="idfed943eec8c34e4484c04b1e55ca878f"><enum>(2)</enum><text>in subsection (b)—</text> <subparagraph id="id702a2a19a2024ab2be393c678023c7c5"><enum>(A)</enum><text>in paragraph (3)—</text> <clause id="id0e9b39773f1945b0b002c6702034123e"><enum>(i)</enum><text>by striking <quote>The Secretary</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id65E646182422427FB436F3B10CD16A1D" style="OLC"> <subparagraph id="id16ac6b2087e84af09a0b0ade47fb407c"><enum>(A)</enum><header>In general</header><text>The Secretary</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </clause><clause id="id71d386dcf89b492cb26fea3c2a14b738"><enum>(ii)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id48558E19165A4C2C90A49CF8A4B36637" style="OLC"> <subparagraph id="id4c9da6d12fa94ab1978a5eeb0c7f2b2a"><enum>(B)</enum><header>Auditing and compliance</header><text>The Secretary may carry out such auditing and compliance activities as the Secretary determines to be necessary to ensure compliance with subparagraph (A).</text> </subparagraph><after-quoted-block>; and </after-quoted-block></quoted-block> </clause></subparagraph><subparagraph id="idd33320e63a70438781a0cd9e026e5305"><enum>(B)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idE69D2EAD7E2C4338BEE698A04B4302CF" style="OLC"> <paragraph id="id044ec97802a749d5beb0eaa11ce42783"><enum>(4)</enum><header>Assembled and finished products</header><text>Not later than 1 year after the date of enactment of this paragraph, the Secretary shall begin issuing criteria for determining which assembled and finished products may qualify to receive the label under paragraph (1).</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="id98b5aaf927d0443c9e60b3b570742c5f"><enum>(3)</enum><text>by redesignating subsections (d), (e), (f), (g), and (h) as subsections (e), (f), (g), (i), and (j), respectively;</text> </paragraph><paragraph id="id3d783c9ebefa4480922b8afd2ab6481d"><enum>(4)</enum><text>by inserting after subsection (c) the following:</text> <quoted-block display-inline="no-display-inline" id="id9581D24798A5403C8BCB3F51B7002697" style="OLC"> <subsection id="id326b42169cd74608808705ddff900849"><enum>(d)</enum><header>Outreach, education, and promotion</header> <paragraph id="idf9aeca81605d4e43aae986b5de0fe310"><enum>(1)</enum><header>In general</header><text>The Secretary may engage in outreach, educational, and promotional activities intended to increase knowledge, awareness, and benefits of biobased products.</text> </paragraph><paragraph id="ida5d48f5b705b4db38211bed3f1d6637f"><enum>(2)</enum><header>Authorized activities</header><text>In carrying out this subsection, the Secretary may—</text> <subparagraph id="id62527329fb5e447aa8052ee4098a9abe"><enum>(A)</enum><text>conduct consumer education and outreach (including consumer and awareness surveys);</text> </subparagraph><subparagraph id="ida67fb315668e4e4dbd2e65432d886afa"><enum>(B)</enum><text>conduct outreach to and support for State and local governments interested in implementing biobased purchasing programs;</text> </subparagraph><subparagraph id="id8606493d278a4571b000488979d8b945"><enum>(C)</enum><text>partner with industry and nonprofit groups to produce educational and outreach materials and conduct educational and outreach events;</text> </subparagraph><subparagraph id="id5e6a9ae9a4664185952534a5625e3422"><enum>(D)</enum><text>sponsor special conferences and events to bring together buyers and sellers of biobased products; and</text> </subparagraph><subparagraph id="id7bc2edeede1b42979ee3c34d65b9a24b"><enum>(E)</enum><text>support pilot and demonstration projects.</text> </subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="ide4515f8da2594cd18490a73df05767af"><enum>(5)</enum><text>in subsection (h) (as redesignated by paragraph (3))—</text> <subparagraph id="id1b87caadad50426d954142d953740a33"><enum>(A)</enum><text>in paragraph (2)—</text> <clause id="id9324523BA5AF49CC897828CED9D4442C"><enum>(i)</enum><text>in the matter preceding subparagraph (A) by striking <quote>The report</quote> and inserting <quote>Each report under paragraph (1)</quote>;</text> </clause><clause id="id1907d8ab613a40f9974cc2dc46943890"><enum>(ii)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end;</text> </clause><clause id="id8538671f008e4d528a59ed64ad8ca581"><enum>(iii)</enum><text>in subparagraph (B)(ii), by striking the period at the end and inserting a semicolon; and</text> </clause><clause id="id5cb6570df07e47f7b4554ecf89c16247"><enum>(iv)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idB71D10E8DEFC4184AEE3B5AC1F5A9E7A" style="OLC"> <subparagraph id="id6b9394730fa34340a9f3a1e9ba225244"><enum>(C)</enum><text>the progress made by other Federal agencies in compliance with the biobased procurement requirements, including the quantity of purchases made; and</text> </subparagraph><subparagraph id="id494f88f6624e400d874502fb8c5a8940"><enum>(D)</enum><text>the status of outreach, educational, and promotional activities carried out by the Secretary under subsection (d), including the attainment of specific milestones and overall results.</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph id="id22ff5e1b5e4b4e938bcb7abc2c08d2eb"><enum>(B)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idAF36506CD1FF47BCA1BD4A4939A98FEA" style="OLC"> <paragraph id="idd4738ddac0e54f04a69f6b981e88b0b1"><enum>(3)</enum><header>Economic impact study and report</header> <subparagraph id="id283916355fbb4fd1a882f45d74de1328"><enum>(A)</enum><header>In general</header><text>The Secretary shall conduct a study to assess the economic impact of the biobased products industry, including—</text> <clause id="id1436a3ca47964ba7a226cd1953ac4430"><enum>(i)</enum><text>the quantity of biobased products sold;</text> </clause><clause id="ida5790fd91ed5462c9212650e1ef3558b"><enum>(ii)</enum><text>the value of the biobased products;</text> </clause><clause id="iddf1d08460155444ebb8666286305084b"><enum>(iii)</enum><text>the quantity of jobs created;</text> </clause><clause id="id80192350cf1b41a89bc2d130f260bf3e"><enum>(iv)</enum><text>the quantity of petroleum displaced;</text> </clause><clause id="idfa19d141b14940da8fd95a0c78900f89"><enum>(v)</enum><text>other environmental benefits; and</text> </clause><clause id="id58b62deca81a4bd084da4f20676b327f"><enum>(vi)</enum><text>areas in which the use or manufacturing of biobased products could be more effectively used, including identifying any technical and economic obstacles and recommending how those obstacles can be overcome.</text> </clause></subparagraph><subparagraph id="id398fc9e4e97648b4978b2dd70246ac8f"><enum>(B)</enum><header>Report</header><text>Not later than 180 days after the date of enactment of this subparagraph, the Secretary shall submit to Congress a report describing the results of the study conducted under subparagraph (A).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="id190f7864fe874ca695cf1bf6ab8a8d9e"><enum>(6)</enum><text>by inserting after subsection (g) (as redesignated by paragraph (3)) the following:</text> <quoted-block display-inline="no-display-inline" id="id7335ecddabfc4833956f90ff1fb2540e" style="OLC"> <subsection id="id005285da6be742a4b9faa22ad25daec9"><enum>(h)</enum><header>Forest products laboratory coordination</header><text>In determining whether products are eligible for the <quote>USDA Certified Biobased Product</quote> label, the Secretary (acting through the Forest Products Laboratory) shall—</text> <paragraph id="id1E4C9E00E87C46CBA695058FB96A4B5C"><enum>(1)</enum><text>review and approve forest-related products for which an application is submitted for the program;</text> </paragraph><paragraph id="idCC5C3243BEBA4EFB80541B3558CF7CF9"><enum>(2)</enum><text>expedite the approval of innovative products resulting from technology developed by the Forest Products Laboratory or partners of the Laboratory; and</text> </paragraph><paragraph id="idDAA8CA0291BE495B87CE287B3CAC35AD"><enum>(3)</enum><text>provide appropriate technical assistance to applicants, as determined by the Secretary.</text> </paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="id91423E68A3DA4474A69F355DA97FFC2F"><enum>(7)</enum><text>in subsection (j) (as redesignated by paragraph (3))—</text> <subparagraph id="idB91427452EDB4D839D14C9D53DBE907C"><enum>(A)</enum><text>in the heading of paragraph (1), by inserting <quote><header-in-text level="paragraph" style="OLC">for fiscal years <enum-in-header>2008 </enum-in-header>through <enum-in-header>2012</enum-in-header></header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">funding</header-in-text></quote>;</text> </subparagraph><subparagraph id="id27F8F08EFC57481EB8CE7F06352C9167"><enum>(B)</enum><text>in the heading of paragraph (2), by inserting <quote><header-in-text level="paragraph" style="OLC">for fiscal years <enum-in-header>2009</enum-in-header> through <enum-in-header>2012</enum-in-header></header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">funding</header-in-text></quote>; and</text> </subparagraph><subparagraph id="idAD1AD2ED9B5C4023971C8F2B398414BF"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id8F8873C41A9E4E42B6D301E17EBE2D0D" style="OLC"> <paragraph id="idBC842EFE920A477DB813E7420D717AB3"><enum>(3)</enum><header>Fiscal years <enum-in-header>2013</enum-in-header> through <enum-in-header>2017</enum-in-header></header><text display-inline="yes-display-inline">There is authorized to be appropriated to carry out this section $2,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><paragraph id="id1F265FD441C84D5494CA9C8C3AB8C83A"><enum>(4)</enum><header>Mandatory funding for fiscal years <enum-in-header>2013</enum-in-header> through <enum-in-header>2017</enum-in-header></header><text>Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $3,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection id="id3b660f7485b44174acd542a13b0e6e6d"><enum>(b)</enum><header>Conforming amendment</header><text>Section 944(c)(2)(A) of the Energy Policy Act of 2005 (42 U.S.C. 16253(c)(2)(A)) is amended by striking <quote>section 9002(h)(1)</quote> and inserting <quote>section 9002(b)</quote>.</text> </subsection></section><section id="HDE9E996DC8434299AAFAF7C887C5486A" section-type="subsequent-section"><enum>9003.</enum><header>Biorefinery, renewable chemical, and biobased product manufacturing assistance</header> <subsection id="H2B13F4B331B64072AD762F3AA6AEA27F"><enum>(a)</enum><header>Program adjustments</header> <paragraph id="HD92AF66D45A949B297500F91A60FAC18"><enum>(1)</enum><header>In general</header><text>Section 9003 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8103) is amended—</text> <subparagraph id="id608d7ad43b6f4e07987b907bc639cc9f"><enum>(A)</enum><text>in the section heading, by inserting <quote><header-in-text level="section" style="OLC">, renewable chemical, and biobased product manufacturing</header-in-text></quote> after <quote><header-in-text level="section" style="OLC">Biorefinery</header-in-text></quote>;</text> </subparagraph><subparagraph id="id4a0bbc9ccb3c4204a00b9a9fb2775069"><enum>(B)</enum><text>in subsection (a), in the matter preceding paragraph (1), by inserting <quote>renewable chemicals, and biobased product manufacturing</quote> after <quote>advanced biofuels,</quote>;</text> </subparagraph><subparagraph id="idEC2B9BDE46CA43F7AAA558BBFDD4D823"><enum>(C)</enum><text>in subsection (b)—</text> <clause id="id8955906D76C14CB28F0E5A3D64FD4EB5"><enum>(i)</enum><text>by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively; and</text> </clause><clause id="id6A46870888244D50AA5F0AA479521401"><enum>(ii)</enum><text>by inserting before paragraph (2) (as so redesignated) the following:</text> <quoted-block display-inline="no-display-inline" id="idb7bcb227dcbf49e082e2b33246d60212" style="OLC"> <paragraph id="id23c33fc8bdc0499a98294900457c86ee"><enum>(1)</enum><header>Biobased product manufacturing</header><text>The term <term>biobased product manufacturing</term> means development, construction, and retrofitting of technologically new commercial-scale processing and manufacturing equipment and required facilities that will be used to convert renewable chemicals and other biobased outputs of biorefineries into end-user products on a commercial scale.</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph id="id72ef98d673d94d6abb42a272a21cc95c"><enum>(D)</enum><text>in subsection (c)—</text> <clause id="id97C3371D70E34C0F9F964371C80B410E"><enum>(i)</enum><text>in paragraph (1), by striking <quote>and</quote> at the end;</text> </clause><clause id="id4c941d05121544af9eea5e9752070fe0"><enum>(ii)</enum><text>in paragraph (2), by striking the period at the end and inserting <quote>; and</quote>; and</text> </clause><clause id="idd1507004d65f4c58baa7b70acf7651a5"><enum>(iii)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id9B3EC87A972A49FEA6556E3D449EB1C8" style="OLC"> <paragraph id="id44f7ad5ff41b455bae9a944f024b316e"><enum>(3)</enum><text>grants and loan guarantees to fund the development and construction of renewable chemical and biobased product manufacturing facilities.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </clause></subparagraph></paragraph><paragraph commented="no" id="H86166AF8D33141549AD052D3E76D2CDB"><enum>(2)</enum><header>Effective date</header><text>The amendments made by paragraph (1) shall take effect on October 1, 2012.</text> </paragraph></subsection><subsection id="id17D6341C4656458D8B18296902075CC6"><enum>(b)</enum><header>Funding</header><text>Section 9003(h) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8103(h)) is amended—</text> <paragraph id="id6c422153bf0a47fea4e717e6182ef770"><enum>(1)</enum><text>by striking paragraph (1) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idB82E14CAC09B4A9693CC9BB4B6A75D21" style="OLC"> <paragraph commented="no" display-inline="no-display-inline" id="IDF585268C19E34EDD95A3DE59C5074FF7"><enum>(1)</enum><header display-inline="yes-display-inline">Mandatory funding</header> <subparagraph commented="no" display-inline="no-display-inline" id="id3CB20344618F41F7A551351DF843F36A"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subparagraph (B), of the funds of the Commodity Credit Corporation, the Secretary shall use for the cost of loan guarantees under this section, to remain available until expended—</text> <clause id="id886152728a7e4f60a476059a567204ec"><enum>(i)</enum><text>$100,000,000 for fiscal year 2013; and</text> </clause><clause id="idabcf64f6d8e64013b422d91ef6ecc561"><enum>(ii)</enum><text>$58,000,000 for each of fiscal years 2014 and 2015.</text> </clause></subparagraph><subparagraph id="iddb046b69d2a943fb8353c56684300c97"><enum>(B)</enum><header>Biobased product manufacturing</header><text>Of the total amount of funds made available for the period of fiscal years 2013 through 2015 under subparagraph (A), the Secretary use for the cost of loan guarantees under this section not more than $25,000,000 to promote biobased product manufacturing.</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="idf377cc88ba9a453ca65e42ced94c68fc"><enum>(2)</enum><text>in paragraph (2), by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H96065AF91D0E464C9219C02F12BAD303" section-type="subsequent-section"><enum>9004.</enum><header>Repeal of repowering assistance program and transfer of remaining funds</header> <subsection commented="no" id="HD5C9483DF14E4AE99A8F9503F8520E8B"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Subject to subsection (b), section 9004 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8104) is repealed.</text> </subsection><subsection commented="no" id="H72D9D6792AF04D01ACA2C7A9BF2346C8"><enum>(b)</enum><header>Use of remaining funding for Rural Energy for America Program</header><text>Funds made available pursuant to subsection (d) of section 9004 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8104) that are unobligated on the day before the date of enactment of this section shall—</text> <paragraph commented="no" id="HC6A5E61A3D2945D58789CC1448CC1188"><enum>(1)</enum><text>remain available until expended;</text> </paragraph><paragraph id="H97DAE4101A4E464BA71BEDAA056F0C2B"><enum>(2)</enum><text>be used by the Secretary of Agriculture to carry out financial assistance for energy efficiency improvements and renewable energy systems under section 9007(a)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107(a)(2)); and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3925120DC13240FD8F0D91F35D06E5C8"><enum>(3)</enum><text>be in addition to any other funds made available to carry out that program.</text> </paragraph></subsection></section><section id="H3CDB51A37E36483D90C92F20F3FE16F1" section-type="subsequent-section"><enum>9005.</enum><header>Bioenergy program for advanced biofuels</header><text display-inline="no-display-inline">Section 9005(g) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8105(g)) is amended—</text> <paragraph id="H8CB5FA53E31B48EB971B2F9230EAF123"><enum>(1)</enum><text>in the heading of paragraph (1), by inserting <quote><header-in-text level="paragraph" style="OLC">for fiscal years <enum-in-header>2009 </enum-in-header>through <enum-in-header>2012</enum-in-header></header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">funding</header-in-text></quote>;</text> </paragraph><paragraph id="HBA865503F36647C8B5602F9FC07277D7"><enum>(2)</enum><text>in the heading of paragraph (2), by inserting <quote><header-in-text level="paragraph" style="OLC">for fiscal years <enum-in-header>2009</enum-in-header> through <enum-in-header>2012</enum-in-header></header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">funding</header-in-text></quote>;</text> </paragraph><paragraph commented="no" id="H93CD7465B7BE45E0A1B0444D86E3607A"><enum>(3)</enum><text>by redesignating paragraph (3) as paragraph (4); and</text> </paragraph><paragraph id="H275B37875E414C68B78DD6D1B2F33807"><enum>(4)</enum><text>by inserting after paragraph (2) the following:</text> <quoted-block display-inline="no-display-inline" id="H03C81A09B4614CD08478A6B4CC71B330" style="OLC"> <paragraph id="H82329B944D304DE293F19C3585586ECE"><enum>(3)</enum><header>Fiscal years <enum-in-header>2013</enum-in-header> through <enum-in-header>2017</enum-in-header></header><text display-inline="yes-display-inline">There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H9B2DB68DDFA3444B812124E0675EE5A5"><enum>9006.</enum><header>Biodiesel fuel education program</header><text display-inline="no-display-inline">Section 9006(d) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8106(d)) is amended—</text> <paragraph id="H093BAC8A09A04699803DA9D283AD5259"><enum>(1)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC"><enum-in-header>(d) </enum-in-header>Funding.—</header-in-text>Of the funds</quote> and inserting</text> <quoted-block display-inline="yes-display-inline" id="H8A5D0CA248314475BB65C96D5139F72E" style="OLC"> <text><header-in-text level="subsection" style="OLC"><enum-in-header>(d) </enum-in-header>Funding.—</header-in-text></text><paragraph id="H67126EBB539B4B519B947E2510339912"><enum>(1)</enum><header>Fiscal years <enum-in-header>2008</enum-in-header> through <enum-in-header>2012</enum-in-header></header><text display-inline="yes-display-inline">Of the funds</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="H437C8642C71D4AD4A9A40D986BCD4553"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HC374949A3F0541E7B03A2588E4329F46" style="OLC"> <paragraph id="H9D43C9E2A1EA42FB93E73122D768B176"><enum>(2)</enum><header>Fiscal years <enum-in-header>2013 </enum-in-header>through <enum-in-header>2017</enum-in-header></header><text display-inline="yes-display-inline">There is authorized to be appropriated to carry out this section $1,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><paragraph id="id3699F35098674207A40A40421247B84A"><enum>(3)</enum><header>Mandatory funding for fiscal years <enum-in-header>2013</enum-in-header> through <enum-in-header>2017</enum-in-header></header><text>Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $1,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H222881413E3A4C9A8385FDF92980089F" section-type="subsequent-section"><enum>9007.</enum><header>Rural Energy for America Program</header> <subsection id="HD6333848573248CFAB55452470CC4D53"><enum>(a)</enum><header>Program adjustments</header> <paragraph id="HFF493731C7BB459D97FB605985A88CFE"><enum>(1)</enum><header>In general</header><text>Section 9007 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107) is amended—</text> <subparagraph id="idFAC0582E4A8848C98A3CE2525CC7DD06"><enum>(A)</enum><text>in subsection (b)(2)—</text> <clause id="idABB4AEB9979B4415B89C98F614969F94"><enum>(i)</enum><text>in subparagraph (C), by striking <quote>and</quote> at the end;</text> </clause><clause id="id0431FA528D96433E8DBB2B122B33E6C1"><enum>(ii)</enum><text>by redesignating subparagraph (D) as subparagraph (E); and</text> </clause><clause id="idD236C7C1C26F4485BCBDB253801A6506"><enum>(iii)</enum><text>by inserting after subparagraph (C) the following:</text> <quoted-block display-inline="no-display-inline" id="id572146E57DC446C6B5984B7B8A241487" style="OLC"> <subparagraph id="id3E2671C26F604848A310E081085C816A"><enum>(D)</enum><text>a council (as defined in section 1528 of the Agriculture and Food Act of 1981 (16 U.S.C. 3451)); and</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph id="idB2D448B334274381963C06EFC0CCAA65"><enum>(B)</enum><text>in subsection (c)—</text> <clause id="idBF58C412B055473A91B5B484FB390E39"><enum>(i)</enum><text>in paragraph (1)(A), by inserting <quote>, such as for agricultural and associated residential purposes</quote> after <quote>electricity</quote>;</text> </clause><clause id="HDE00F18E57DB45F8BE1F2237E5525D2D"><enum>(ii)</enum><text>by striking paragraph (3);</text> </clause><clause id="id27109AF013794D49AF21F624EDDB1B31"><enum>(iii)</enum><text>by redesignating paragraph (4) as paragraph (3);</text> </clause><clause id="idE65372FC849F42B3BCDEBA0547C25D3E"><enum>(iv)</enum><text>in paragraph (3) (as so redesignated), by striking subparagraph (A) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id1F6DE83A939D461798FC4B8204AE6F4A" style="OLC"> <subparagraph id="id1A8220B1551D49FAAAE6DCA17F49F915"><enum>(A)</enum><header>Grants</header><text>The amount of a grant under this subsection shall not exceed the lesser of—</text> <clause id="id852fd5afe30843aa82f75902f3f2f2fd"><enum>(i)</enum><text>$500,000; and</text> </clause><clause id="id13cd45af1bd8449bb1404a09e9eb8f19"><enum>(ii)</enum><text>25 percent of the cost of the activity carried out using funds from the grant.</text> </clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </clause><clause id="id2C0862C6DA7842F5A4D4968DB2C5DC57"><enum>(v)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idB6E23A2E66D04FC5A53CF962A63B4629" style="OLC"> <paragraph id="id8F98A3E11CFF4C7FBA02BD6CDA2A54C2"><enum>(4)</enum><header>Tiered application process</header> <subparagraph id="id9864DA9F0D454518A054784465491802"><enum>(A)</enum><header>In general</header><text>In providing loan guarantees and grants under this subsection, the Secretary shall use a 3-tiered application process that reflects the size of proposed projects in accordance with this paragraph.</text> </subparagraph><subparagraph id="id3093E0C891B6448E91431ACC3336FA2C"><enum>(B)</enum><header>Tier 1</header><text>The Secretary shall establish a separate application process for projects for which the cost of the activity funded under this subsection is not more than $80,000.</text> </subparagraph><subparagraph id="ID6b3074c333fd4ad28fee013bfc9970b9"><enum>(C)</enum><header>Tier 2</header><text>The Secretary shall establish a separate application process for projects for which the cost of the activity funded under this subsection is greater than $80,000 but less than $200,000.</text> </subparagraph><subparagraph id="ID3c42bf0fbe4c409f824cd17ef063f2c4"><enum>(D)</enum><header>Tier 3</header><text>The Secretary shall establish a separate application process for projects for which the cost of the activity funded under this subsection is equal to or greater than $200,000.</text> </subparagraph><subparagraph id="id0301E8FA38264142B7654820DC7CEC38"><enum>(E)</enum><header>Application process</header><text>The Secretary shall establish an application, evaluation, and oversight process that is the most simplified for tier I projects and more comprehensive for each subsequent tier.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </clause></subparagraph></paragraph><paragraph commented="no" id="HF15573653E3E497DA07295FECBC390E4"><enum>(2)</enum><header>Effective date</header><text>The amendments made by paragraph (1) shall take effect on October 1, 2012.</text> </paragraph></subsection><subsection id="HE977B80628C549D981625E3363842C05"><enum>(b)</enum><header>Funding</header><text display-inline="yes-display-inline">Section 9007(g) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107(g)) is amended—</text> <paragraph display-inline="no-display-inline" id="H14505ECB35B3423A98ED21F73B4C5444"><enum>(1)</enum><text>in the heading of paragraph (1), by inserting <quote><header-in-text level="paragraph" style="OLC">for fiscal years <enum-in-header>2009 </enum-in-header>through <enum-in-header>2012</enum-in-header></header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">funding</header-in-text></quote>;</text> </paragraph><paragraph id="H9E3644E71D0849C785CCDC83C1114BF5"><enum>(2)</enum><text>in the heading of paragraph (2), by inserting <quote><header-in-text level="paragraph" style="OLC">for fiscal years <enum-in-header>2009</enum-in-header> through <enum-in-header>2012</enum-in-header></header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">funding</header-in-text></quote>;</text> </paragraph><paragraph display-inline="no-display-inline" id="H612CC685D0DC4B98AE46F468E70B09BB"><enum>(3)</enum><text>in the heading of paragraph (3), by inserting <quote><header-in-text level="paragraph" style="OLC">for fiscal years <enum-in-header>2009</enum-in-header> through <enum-in-header>2012</enum-in-header></header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">funding</header-in-text></quote>; and</text> </paragraph><paragraph id="H48D037D0104D42DBA8E73657B74B49AB"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HA3EC6D60D347406D9FB32583A82D6BBE" style="OLC"> <paragraph id="H3477663919D04F658C418BAA61B3D7B7"><enum>(4)</enum><header>Fiscal years <enum-in-header>2013</enum-in-header> through <enum-in-header>2017</enum-in-header></header><text display-inline="yes-display-inline">There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><paragraph id="idFA4BCC69D0774EABB858375F0923641B"><enum>(5)</enum><header>Mandatory funding for fiscal years <enum-in-header>2013</enum-in-header> through <enum-in-header>2017</enum-in-header></header><text>Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $48,200,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section display-inline="no-display-inline" id="H5B8C04CEF82647709781A91B3114C77B" section-type="subsequent-section"><enum>9008.</enum><header>Biomass research and development</header><text display-inline="no-display-inline">Section 9008(h) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8108(h)) is amended—</text> <paragraph id="H5C5969E5F3614567BE8AFE93ECC818A6"><enum>(1)</enum><text>in the heading of paragraph (1), by inserting <quote><header-in-text level="paragraph" style="OLC">for fiscal years <enum-in-header>2009 </enum-in-header>through <enum-in-header>2012</enum-in-header></header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">funding</header-in-text></quote>;</text> </paragraph><paragraph id="HC7B275027F864602A9A946B7A8A9D8F3"><enum>(2)</enum><text>in the heading of paragraph (2), by inserting <quote><header-in-text level="paragraph" style="OLC">for fiscal years <enum-in-header>2009</enum-in-header> through <enum-in-header>2012</enum-in-header></header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">funding</header-in-text></quote>; and</text> </paragraph><paragraph id="H28F4FB68CAEE41FFB120E76E4164310C"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H94C51C64F164457587EAD81D49500084" style="OLC"> <paragraph id="H4671CE1042914B71BA10D55B1920ACB4"><enum>(3)</enum><header>Fiscal years <enum-in-header>2013</enum-in-header> through <enum-in-header>2017</enum-in-header></header><text display-inline="yes-display-inline">There is authorized to be appropriated to carry out this section $30,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><paragraph id="id1432FAAEFC34433C855C79028B1D9333"><enum>(4)</enum><header>Mandatory funding for fiscal years <enum-in-header>2013</enum-in-header> through <enum-in-header>2017</enum-in-header></header><text>Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $26,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="HF6A3656899FA4103AB83E3F9F65F4501" section-type="subsequent-section"><enum>9009.</enum><header>Feedstock flexibility program for bioenergy producers</header><text display-inline="no-display-inline">Section 9010(b) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8110(b)) is amended—</text> <paragraph id="H941B8FBD8BE542ABA3BC8DA2E8FCA0F5"><enum>(1)</enum><text>in paragraph (1)(A), by striking <quote>2012</quote> and inserting <quote>2017</quote>; and</text> </paragraph><paragraph id="HF460C63DABB64FE3A65A8EA4BF98077D"><enum>(2)</enum><text>in paragraph (2)(A), by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </paragraph></section><section id="id30D9E0C277DC47A6BA839366834E167E"><enum>9010.</enum><header>Biomass Crop Assistance Program</header><text display-inline="no-display-inline">Section 9011 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8111) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id6D28C90B037649C48F668D97CA779069" style="OLC"> <section id="id0b5b257b74644001a27af06346de0bef"><enum>9011.</enum><header>Biomass Crop Assistance Program</header> <subsection id="idd4b6a0d5e8714d938331f0b30099fc90"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="id023a583c42fa454ba41f163173cf9e4e"><enum>(1)</enum><header>BCAP</header><text>The term <term>BCAP</term> means the Biomass Crop Assistance Program established under this section.</text> </paragraph><paragraph id="id5bde1e05ee8d41b196e63a2b996d5717"><enum>(2)</enum><header>BCAP project area</header><text>The term <term>BCAP project area</term> means an area that—</text> <subparagraph id="idf2310a7676d5447cba72af20262bc431"><enum>(A)</enum><text>has specified boundaries that are submitted to the Secretary by the project sponsor and subsequently approved by the Secretary;</text> </subparagraph><subparagraph id="idc3dedfe878be4af2ac8e967c1f34a687"><enum>(B)</enum><text>includes producers with contract acreage that will supply a portion of the renewable biomass needed by a biomass conversion facility; and</text> </subparagraph><subparagraph id="idd637845b1fd549f08560b5d767209202"><enum>(C)</enum><text>is physically located within an economically practicable distance from the biomass conversion facility.</text> </subparagraph></paragraph><paragraph id="id364d263f628c46a39857120e851cf336"><enum>(3)</enum><header>Contract acreage</header><text>The term <term>contract acreage</term> means eligible land that is covered by a BCAP contract entered into with the Secretary.</text> </paragraph><paragraph id="id929d8febb437497283c24112c87d8634"><enum>(4)</enum><header>Eligible crop</header> <subparagraph id="idb75bb9277ea14792a9228a26d86de750"><enum>(A)</enum><header>In general</header><text>The term <term>eligible crop</term> means a crop of renewable biomass.</text> </subparagraph><subparagraph id="idd7196f2a70cc4487b10430b4158868ec"><enum>(B)</enum><header>Exclusions</header><text>The term <term>eligible crop</term> does not include—</text> <clause id="id9d5b14ccb5ff4e75aa9fec4b6ea5aef1"><enum>(i)</enum><text>any crop that is eligible to receive payments under title I of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702 et seq.) or an amendment made by that title;</text> </clause><clause id="idd70048590bc142bd929d5a3a1d1ad6c9"><enum>(ii)</enum><text>any plant that is invasive or noxious or species or varieties of plants that credible risk assessment tools or other credible sources determine are potentially invasive, as determined by the Secretary in consultation with other appropriate Federal or State departments and agencies; or</text> </clause><clause commented="no" id="id77f4f076ec4349ee9676fe8d77525fb7"><enum>(iii)</enum><text>algae.</text> </clause></subparagraph></paragraph><paragraph id="id408f61d875aa407b9ffe2fb00795dbff"><enum>(5)</enum><header>Eligible land</header> <subparagraph id="id3dc1c6ae9aa6408aae069f8fe302fca1"><enum>(A)</enum><header>In general</header><text>The term <term>eligible land</term> includes—</text> <clause id="idF64AA2F35147458E9C86F507FEE1E146"><enum>(i)</enum><text>agricultural and nonindustrial private forest lands (as defined in section 5(c) of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103a(c))); and</text> </clause><clause id="id5AF2597A352E413A9E769746F05CBC74"><enum>(ii)</enum><text>land enrolled in the agricultural conservation easement program established under subtitle H of title XII of the Food Security Act of 1985.</text> </clause></subparagraph><subparagraph id="idc4cfd52892264e86a9383532b215d766"><enum>(B)</enum><header>Exclusions</header><text>The term <term>eligible land</term> does not include—</text> <clause id="id147f1e16f1ae43ec9918100a23cb6f67"><enum>(i)</enum><text>Federal- or State-owned land;</text> </clause><clause id="idbd10290b58a046ff9a40b3b5f79a1437"><enum>(ii)</enum><text>land that is native sod, as of the date of enactment of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8701 et seq.);</text> </clause><clause id="idbe3a66c6ccc84345b1391e90503ca880"><enum>(iii)</enum><text>land enrolled in the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.);</text> </clause><clause id="id1cb704f536624b699811cd19a590cba7"><enum>(iv)</enum><text>land enrolled in the Agricultural Conservation Easement Program established under subtitle H of title XII of that Act; or</text> </clause><clause id="id79486fcea7884135bae41eb031b6ec39"><enum>(v)</enum><text>land enrolled in the conservation reserve program or the Agricultural Conservation Easement Program under a contract that will expire at the end of the current fiscal year.</text> </clause></subparagraph></paragraph><paragraph id="id42a64f3a53124d898e84770971eb9097"><enum>(6)</enum><header>Eligible material</header> <subparagraph id="ida0eff0f3172943f48c2385966f0e8f4f"><enum>(A)</enum><header>In general</header><text>The term <term>eligible material</term> means renewable biomass harvested directly from the land, including crop residue from any crop that is eligible to receive payments under title I of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title> or an amendment made by that title.</text> </subparagraph><subparagraph id="id2BE6A14197634B138795472FE5C26576"><enum>(B)</enum><header>Inclusions</header><text>The term <term>eligible material</term> shall only include—</text> <clause id="id09a57ab4aa73459180590b73b2f43f3b"><enum>(i)</enum><text>eligible material that is collected or harvested by the eligible material owner—</text> <subclause id="id2293E41ED1DC4015B470FDAFCA8C1725"><enum>(I)</enum><text>directly from—</text> <item id="id04e08fa585fe4bf292d80598e73d1fab"><enum>(aa)</enum><text>National Forest System;</text> </item><item id="id57A59EF48EB440EF8AFD9346E07597C5"><enum>(bb)</enum><text>Bureau of Land Management land;</text> </item><item id="ideafb21baa359482191a470dde152bd0a"><enum>(cc)</enum><text>non-Federal land; or</text> </item><item id="id145cdb67be0343d5a10c7da9ea63457b"><enum>(dd)</enum><text>land owned by an individual Indian or Indian tribe that is held in trust by the United States for the benefit of the individual Indian or Indian tribe or subject to a restriction against alienation imposed by the United States;</text> </item></subclause><subclause id="idd8793e8f2e11442682e10f70ee3c9ca7"><enum>(II)</enum><text>in a manner that is consistent with—</text> <item id="idC48508576DBE464A820E9AB8148F72E8"><enum>(aa)</enum><text>a conservation plan;</text> </item><item id="id2A28290929D04B0BAD448F73E52ED80B"><enum>(bb)</enum><text>a forest stewardship plan; or</text> </item><item id="idA9FC17BEC84349C9999D85E4D9E69A78"><enum>(cc)</enum><text>a plan that the Secretary determines is equivalent to a plan described in item (aa) or (bb) and consistent with Executive Order 13112 (42 U.S.C. 4321 note; relating to invasive species);</text> </item></subclause></clause><clause id="id2e7c7d7b467f467f9a774ddb245923da"><enum>(ii)</enum><text>if woody eligible material, woody eligible material that is produced on land other than contract acreage that—</text> <subclause id="idde47701477594ca3b4d18a389018cc84"><enum>(I)</enum><text>is a byproduct of a preventative treatment that is removed to reduce hazardous fuel or to reduce or contain disease or insect infestation; and</text> </subclause><subclause id="id7d89538d58c6459ea21544a21a0c7d6c"><enum>(II)</enum><text>if harvested from Federal land, is harvested in accordance with section 102(e) of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6512(e)); and</text> </subclause></clause><clause id="id181b872dc8a74334be192e18aa09052b"><enum>(iii)</enum><text>eligible material that is delivered to a qualified biomass conversion facility to be used for heat, power, biobased products, research, or advanced biofuels.</text> </clause></subparagraph><subparagraph commented="no" id="idacd7b550d2c54258820c6a49b5075270"><enum>(C)</enum><header>Exclusions</header><text>The term <term>eligible material</term> does not include—</text> <clause commented="no" id="id4e261247af7c41a3961c6de6a504a953"><enum>(i)</enum><text>material that is whole grain from any crop that is eligible to receive payments under title I of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title> or an amendment made by that title, including—</text> <subclause commented="no" id="id347E5B9B7E2F4D6D8166546DA43D703F"><enum>(I)</enum><text>barley, corn, grain sorghum, oats, rice, or wheat;</text> </subclause><subclause commented="no" id="id002697544C7B47129413E3DA62A53404"><enum>(II)</enum><text>honey;</text> </subclause><subclause commented="no" id="id6CA0DA05B87943719C293FE6EFCEA81A"><enum>(III)</enum><text>mohair;</text> </subclause><subclause commented="no" id="id875462b1c9344d8a98e60922d6f1c259"><enum>(IV)</enum><text>oilseeds, including canola, crambe, flaxseed, mustard seed, rapeseed, safflower seed, soybeans, sesame seed, and sunflower seed;</text> </subclause><subclause commented="no" id="id9BC2D276C99E425B87ADF69A48364F54"><enum>(V)</enum><text>peanuts;</text> </subclause><subclause commented="no" id="id22A3A029BE4442F08CC1E0DE0F368265"><enum>(VI)</enum><text>pulse;</text> </subclause><subclause commented="no" id="id31a3d906e9d84eaba4201f632f9abde2"><enum>(VII)</enum><text>chickpeas, lentils, and dry peas;</text> </subclause><subclause commented="no" id="id4DD006AD1A414B6682C41C0632BF874F"><enum>(VIII)</enum><text>dairy products;</text> </subclause><subclause commented="no" id="id542B1346C0034B19A7B94A3A0D899428"><enum>(IX)</enum><text>sugar; and</text> </subclause><subclause commented="no" id="idd0d37aa305414ee5b5f4c5de30298c3a"><enum>(X)</enum><text>wool and cotton boll fiber;</text> </subclause></clause><clause commented="no" id="idd51311a58ad7492fbb2897d4bdb3a117"><enum>(ii)</enum><text>animal waste and byproducts, including fat, oil, grease, and manure;</text> </clause><clause commented="no" id="idc30bd21474bb4474837fa362c9816451"><enum>(iii)</enum><text>food waste and yard waste;</text> </clause><clause commented="no" id="ide06b59d61dac474d996acd9fab623502"><enum>(iv)</enum><text>algae;</text> </clause><clause commented="no" id="id4ee4300ec0d64838bf4cae48b8d6b137"><enum>(v)</enum><text>woody eligible material that—</text> <subclause commented="no" id="idE90AF11A9718476DA6B643C17B073507"><enum>(I)</enum><text>is removed outside contract acreage; and</text> </subclause><subclause commented="no" id="idC1E79098EBED4A62B157627572BEAD99"><enum>(II)</enum><text>is not a byproduct of a preventative treatment to reduce hazardous fuel or to reduce or contain disease or insect infestation;</text> </subclause></clause><clause commented="no" id="id9fcf3271763a426ea1726b08934cf9bd"><enum>(vi)</enum><text>any woody eligible material collected or harvested outside contract acreage that would otherwise be used for existing market products; or</text> </clause><clause commented="no" id="id55cf1e95351048988ed90de1652ebe97"><enum>(vii)</enum><text>bagasse.</text> </clause></subparagraph></paragraph><paragraph id="idb9f31fe9b2a340cb8322d45306ba7762"><enum>(7)</enum><header>Producer</header><text>The term <term>producer</term> means an owner or operator of contract acreage that is physically located within a BCAP project area.</text> </paragraph><paragraph id="idd30d9b86e9e349ef882d453795150bf3"><enum>(8)</enum><header>Project sponsor</header><text>The term <term>project sponsor</term> means—</text> <subparagraph id="idb965faf855cb445c95f01007cf03d7c5"><enum>(A)</enum><text>a group of producers; or</text> </subparagraph><subparagraph id="id8c54c2ad38fc4693b2cd37525d4c41c5"><enum>(B)</enum><text>a biomass conversion facility.</text> </subparagraph></paragraph><paragraph id="id7CACCE1B52904FBF8525102E73AC658D"><enum>(9)</enum><header>Socially disadvantaged farmer or rancher</header><text>The term <term>socially disadvantaged farmer or rancher</term> has the meaning given the term in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)).</text> </paragraph></subsection><subsection id="idf26f8619b1a643a2853951d031962ffb"><enum>(b)</enum><header>Establishment and purpose</header><text>The Secretary shall establish and administer a Biomass Crop Assistance Program to—</text> <paragraph id="id1a8173e054d64ead95f7c625b6fc73ff"><enum>(1)</enum><text>support the establishment and production of eligible crops for conversion to bioenergy in selected BCAP project areas; and</text> </paragraph><paragraph id="id9692fa99b727467d9963388ca67b34a5"><enum>(2)</enum><text>assist agricultural and forest land owners and operators with the collection, harvest, storage, and transportation of eligible material for use in a biomass conversion facility.</text> </paragraph></subsection><subsection id="id07acb789901b42efb3d761069262a32c"><enum>(c)</enum><header>BCAP project area</header> <paragraph id="idd4c5f0235f9949bfb5546f420491461b"><enum>(1)</enum><header>In general</header><text>The Secretary shall provide financial assistance to a producer of an eligible crop in a BCAP project area.</text> </paragraph><paragraph id="idcc070b401fb74cf4af2d7945e6cd6204"><enum>(2)</enum><header>Selection of project areas</header> <subparagraph id="id9a628dc7bad84bf79ff86690ae824167"><enum>(A)</enum><header>In general</header><text>To be considered for selection as a BCAP project area, a project sponsor shall submit to the Secretary a proposal that, at a minimum, includes—</text> <clause id="id534d23f44f1e44bbb0c4eadda44038d7"><enum>(i)</enum><text>a description of the eligible land and eligible crops of each producer that will participate in the proposed BCAP project area;</text> </clause><clause id="id7df48c5c7a7044a28a238bd76361b9ca"><enum>(ii)</enum><text>a letter of commitment from a biomass conversion facility that the facility will use the eligible crops intended to be produced in the proposed BCAP project area;</text> </clause><clause id="iddec7cf6c4936453ba0594ab8b6f28a23"><enum>(iii)</enum><text>evidence that the biomass conversion facility has sufficient equity available, as determined by the Secretary, if the biomass conversion facility is not operational at the time the proposal is submitted to the Secretary; and</text> </clause><clause id="id00a7e86f2a2945199bb4250ebd6c1299"><enum>(iv)</enum><text>any other information about the biomass conversion facility or proposed biomass conversion facility that the Secretary determines necessary for the Secretary to be reasonably assured that the plant will be in operation by the date on which the eligible crops are ready for harvest.</text> </clause></subparagraph><subparagraph id="idb2e087a7e81d41a0b184237e518e2030"><enum>(B)</enum><header>Bcap project area selection criteria</header><text>In selecting BCAP project areas, the Secretary shall consider—</text> <clause id="id9a11a851fd314fe5a5d918631d5c162d"><enum>(i)</enum><text>the volume of the eligible crops proposed to be produced in the proposed BCAP project area and the probability that those crops will be used for the purposes of the BCAP;</text> </clause><clause id="idda0ddc5faee74346acc919f4ba895b6a"><enum>(ii)</enum><text>the volume of renewable biomass projected to be available from sources other than the eligible crops grown on contract acres;</text> </clause><clause id="idf0639f4d2e01473fb9b8ae1a675ccfd9"><enum>(iii)</enum><text>the anticipated economic impact in the proposed BCAP project area;</text> </clause><clause id="id521bfd10c1844980b29f1a253691008e"><enum>(iv)</enum><text>the opportunity for producers and local investors to participate in the ownership of the biomass conversion facility in the proposed BCAP project area;</text> </clause><clause id="id5c68526f0fc94d41affa8f7121f46af2"><enum>(v)</enum><text>the participation rate by—</text> <subclause id="id900e05a028eb40c6baf824f6f49bd4c2"><enum>(I)</enum><text>beginning farmers or ranchers (as defined in accordance with section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a))); or</text> </subclause><subclause id="id2f548fcc8c5243e88c552296c23727bc"><enum>(II)</enum><text>socially disadvantaged farmers or ranchers;</text> </subclause></clause><clause id="id0ab705ac6339473083af8b751d5522e7"><enum>(vi)</enum><text>the impact on soil, water, and related resources;</text> </clause><clause id="id09a1e152490248918a2acd324cbad641"><enum>(vii)</enum><text>the variety in biomass production approaches within a project area, including (as appropriate)—</text> <subclause id="idfe28156b4e97471f931ee907950840ae"><enum>(I)</enum><text>agronomic conditions;</text> </subclause><subclause id="idc37a9dfbfdf74311a155eb41f49c4051"><enum>(II)</enum><text>harvest and postharvest practices; and</text> </subclause><subclause id="id5de640e4b6004d978d79ce1734d9e867"><enum>(III)</enum><text>monoculture and polyculture crop mixes;</text> </subclause></clause><clause id="idd27b8a72d81345bbb05f2b66c246c955"><enum>(viii)</enum><text>the range of eligible crops among project areas; and</text> </clause><clause id="id6a5e87d70a354f52836f8064dbae47a6"><enum>(ix)</enum><text>any additional information that the Secretary determines to be necessary.</text> </clause></subparagraph></paragraph><paragraph id="id7f8d8f6f8b6a467a86ec2856a52c1d45"><enum>(3)</enum><header>Contract</header> <subparagraph id="id0c737c9de30748ec9471644935d04e3b"><enum>(A)</enum><header>In general</header><text>On approval of a BCAP project area by the Secretary, each producer in the BCAP project area shall enter into a contract directly with the Secretary.</text> </subparagraph><subparagraph id="id44b2edfc48064c6486e6f2252445d5d3"><enum>(B)</enum><header>Minimum terms</header><text>At a minimum, a contract under this subsection shall include terms that cover—</text> <clause id="id4027e1d14046427b8a2183bacbca0d2f"><enum>(i)</enum><text>an agreement to make available to the Secretary, or to an institution of higher education or other entity designated by the Secretary, such information as the Secretary considers to be appropriate to promote the production of eligible crops and the development of biomass conversion technology;</text> </clause><clause id="iddd9a2dca07e54319876b04a2b9a370ad"><enum>(ii)</enum><text>compliance with the highly erodible land conservation requirements of subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and the wetland conservation requirements of subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.);</text> </clause><clause id="id0e1515dd2e804a8f9a8bcb627470a046"><enum>(iii)</enum><text>the implementation of (as determined by the Secretary)—</text> <subclause id="idbaa5619d89eb44c7963de8e9b8af85f3"><enum>(I)</enum><text>a conservation plan;</text> </subclause><subclause id="idd4389ce7d7ee48e5bf59d6a6a9250732"><enum>(II)</enum><text>a forest stewardship plan; or</text> </subclause><subclause id="id804A20141B5A4E8F967D1625E931453F"><enum>(III)</enum><text>a plan that is equivalent to a conservation or forest stewardship plan; and</text> </subclause></clause><clause id="idb8d01e29711e4905834aab7fe1d847ee"><enum>(iv)</enum><text>any additional requirements that Secretary determines to be necessary.</text> </clause></subparagraph><subparagraph id="id243420d796d9429d8fde2c5d45382b4e"><enum>(C)</enum><header>Duration</header><text>A contract under this subsection shall have a term of not more than—</text> <clause id="id51323a63a6de455aad7b680412f15527"><enum>(i)</enum><text>5 years for annual and perennial crops; or</text> </clause><clause id="id5c263f6b40ba496b82a9c2ea3f071080"><enum>(ii)</enum><text>15 years for woody biomass.</text> </clause></subparagraph></paragraph><paragraph id="idacb38830023a4cf287afa2a454252030"><enum>(4)</enum><header>Relationship to other programs</header><text>In carrying out this subsection, the Secretary shall provide for the preservation of cropland base and yield history applicable to the land enrolled in a BCAP contract.</text> </paragraph><paragraph id="id14e0c671bff242cb91ce47b7a0546bd5"><enum>(5)</enum><header>Payments</header> <subparagraph id="id17125c1ab2e14f2b9b6230fd3fa234dc"><enum>(A)</enum><header>In general</header><text>The Secretary shall make establishment and annual payments directly to producers to support the establishment and production of eligible crops on contract acreage.</text> </subparagraph><subparagraph id="idff06cecea29b45938a0ca9ba27375646"><enum>(B)</enum><header>Amount of establishment payments</header> <clause id="id655EDECECF7D4C04940AE4105AD32618"><enum>(i)</enum><header>In general</header><text>Subject to clause (ii), the amount of an establishment payment under this subsection shall be not more than 50 percent of the costs of establishing an eligible perennial crop covered by the contract but not to exceed $500 per acre, including—</text> <subclause id="idae46d6ce4cf74f86ae50775d76d50f99"><enum>(I)</enum><text>the cost of seeds and stock for perennials;</text> </subclause><subclause id="ide127ac208af046698ac6d84bbae4b151"><enum>(II)</enum><text>the cost of planting the perennial crop, as determined by the Secretary; and</text> </subclause><subclause id="id894384f82f36463bb6c85d3bd7a356d9"><enum>(III)</enum><text>in the case of nonindustrial private forestland, the costs of site preparation and tree planting.</text> </subclause></clause><clause id="id6432DABE615A4010B0A793B52230A0BA"><enum>(ii)</enum><header>Socially disadvantaged farmers or ranchers</header><text>In the case of socially disadvantaged farmers or ranchers, the costs of establishment may not exceed $750 per acre.</text> </clause></subparagraph><subparagraph id="idb7b3052279a247edbe1c5b7ed41f2d6e"><enum>(C)</enum><header>Amount of annual payments</header> <clause id="id591d243501b643f886b52e4185980bfe"><enum>(i)</enum><header>In general</header><text>Subject to clause (ii), the amount of an annual payment under this subsection shall be determined by the Secretary.</text> </clause><clause id="id461dadef49b3496abb90b4932a3decee"><enum>(ii)</enum><header>Reduction</header><text>The Secretary shall reduce an annual payment by an amount determined to be appropriate by the Secretary, if—</text> <subclause id="id2021199c6d414bc7aeda3b4fdae65ff9"><enum>(I)</enum><text>an eligible crop is used for purposes other than the production of energy at the biomass conversion facility;</text> </subclause><subclause id="idf48c5ed0253847d893918df361151a1c"><enum>(II)</enum><text>an eligible crop is delivered to the biomass conversion facility;</text> </subclause><subclause id="id3012071844ba4fbda64c55a8ca6bce02"><enum>(III)</enum><text>the producer receives a payment under subsection (d);</text> </subclause><subclause id="idbb2eeba457cb4a90a4c34c10e879a4eb"><enum>(IV)</enum><text>the producer violates a term of the contract; or</text> </subclause><subclause id="id2dfe5e89c7ae443db78137caa6ac7993"><enum>(V)</enum><text>the Secretary determines a reduction is necessary to carry out this section.</text> </subclause></clause></subparagraph><subparagraph id="id26d0ebe899e14dbbb795198c25915fff"><enum>(D)</enum><header>Exclusion</header><text>The Secretary shall not make any BCAP payments on land for which payments are received under the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) or the agricultural conservation easement program established under subtitle H of title XII of that Act.</text> </subparagraph></paragraph></subsection><subsection id="idab757b87f8744ae880cd3f3c3e475729"><enum>(d)</enum><header>Assistance with collection, harvest, storage, and transportation</header> <paragraph id="ide80afcb319a94c5d94db1c87882f819d"><enum>(1)</enum><header>In general</header><text>The Secretary shall make a payment for the delivery of eligible material to a biomass conversion facility to—</text> <subparagraph id="id4718e680eeab488880e209b063fd9210"><enum>(A)</enum><text>a producer of an eligible crop that is produced on BCAP contract acreage; or</text> </subparagraph><subparagraph id="id87d385853d6042368237b647a94aa407"><enum>(B)</enum><text>a person with the right to collect or harvest eligible material, regardless of whether the eligible material is produced on contract acreage.</text> </subparagraph></paragraph><paragraph id="id22f12c4d45c54cf2872d2de38713f828"><enum>(2)</enum><header>Payments</header> <subparagraph id="id85ff387710544177b18de6ff573c9765"><enum>(A)</enum><header>Costs covered</header><text>A payment under this subsection shall be in an amount described in subparagraph (B) for—</text> <clause id="id5790340a1bea42a5bc09efad4f56bda5"><enum>(i)</enum><text>collection;</text> </clause><clause id="id5d02de667f90442a953674ef754510cb"><enum>(ii)</enum><text>harvest;</text> </clause><clause id="id441fac2c5c6d4ce596d15d3c368679cd"><enum>(iii)</enum><text>storage; and</text> </clause><clause id="id9e77bcb852ee420c9b6ee637c022d523"><enum>(iv)</enum><text>transportation to a biomass conversion facility.</text> </clause></subparagraph><subparagraph id="id50027eca582348e58b088ffa0ef02937"><enum>(B)</enum><header>Amount</header><text>Subject to paragraph (3), the Secretary may provide matching payments at a rate of up to $1 for each $1 per ton provided by the biomass conversion facility, in an amount not to exceed $20 per dry ton for a period of 4 years.</text> </subparagraph></paragraph><paragraph id="id0b47c0ac9cc0445a9e5c8cfb3ebca731"><enum>(3)</enum><header>Limitation on assistance for bcap contract acreage</header><text>As a condition of the receipt of an annual payment under subsection (c), a producer receiving a payment under this subsection for collection, harvest, storage, or transportation of an eligible crop produced on BCAP acreage shall agree to a reduction in the annual payment.</text> </paragraph></subsection><subsection id="id115143042fe04a95ad3328f69e086370"><enum>(e)</enum><header>Report</header><text>Not later than 4 years after the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the dissemination by the Secretary of the best practice data and information gathered from participants receiving assistance under this section.</text> </subsection><subsection id="id3b8aca7bd2334cbba4e8334895ccaf97"><enum>(f)</enum><header>Funding</header> <paragraph id="idB41FB614CE144DE98AC4D3DD54ADE6C6"><enum>(1)</enum><header>In general</header><text>Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $38,600,000 for each of fiscal years 2013 through 2017.</text> </paragraph><paragraph id="idC9A027F4201B4EDA9E1B3F6E2BC84601"><enum>(2)</enum><header>Collection, harvest, storage, and transportation payments</header><text>Of the amount made available under paragraph (1) for each fiscal year, the Secretary shall use not less than 10 percent, nor more than 50 percent, of the amount to make collection, harvest, transportation, and storage payments under subsection (d)(2).</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="idD9369D34998C468DAF2E7BEFEBD51041" section-type="subsequent-section"><enum>9011.</enum><header>Repeal of forest biomass for energy</header><text display-inline="no-display-inline">Section 9012 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8112) is repealed.</text> </section><section id="H30296DF8CEC84E66B8F4C0D6877B9850" section-type="subsequent-section"><enum>9012.</enum><header>Community wood energy program</header> <subsection id="id27A2436DBCB44EB7A4BF7A37FF4825D0"><enum>(a)</enum><header>Definition of biomass consumer cooperative</header><text>Section 9013(a) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8113(a)) is amended—</text> <paragraph id="id82FD81B3088C4D778658B8EAF4C91095"><enum>(1)</enum><text>by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively; and</text> </paragraph><paragraph id="idDCD373F726E147B880D28F132D6B82BA"><enum>(2)</enum><text>by inserting before paragraph (2) (as so redesignated) the following:</text> <quoted-block display-inline="no-display-inline" id="id1356C441313743CB8CF8154B3D436BAB" style="OLC"> <paragraph id="id15661052d41c46aaa6f336ff7e22821d"><enum>(1)</enum><header>Biomass consumer cooperative</header><text>The term <term>biomass consumer cooperative</term> means a consumer membership organization the purpose of which is to provide members with services or discounts relating to the purchase of biomass heating products or biomass heating systems.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="id076739509F7443E2A115199AC04D9B48"><enum>(b)</enum><header>Grant program</header><text>Section 9013(b)(1) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8113(b)(1)) is amended—</text> <paragraph id="id1DB9FE6ED4BB42D89971735BC36B7F7F"><enum>(1)</enum><text>in subparagraph (A), by striking <quote>and</quote> after the semicolon at the end;</text> </paragraph><paragraph id="id4080B9D28CB24E16A51CF3C0ACED3B3C"><enum>(2)</enum><text>in subparagraph (B), by striking the period at the end and inserting <quote>; and</quote>; and</text> </paragraph><paragraph id="idB8FCDF9639994D0EB87476B33A2C41E5"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idD2DD0CB59A58492BAD56EDB3BE1D11E4" style="OLC"> <subparagraph id="id90d53712e860479d8a49cf2b219283b7"><enum>(C)</enum><text>grants of up to $50,000 to biomass consumer cooperatives for the purpose of establishing or expanding biomass consumer cooperatives that will provide consumers with services or discounts relating to—</text> <clause id="id095a3f99484b4adba57ef073b0e64199"><enum>(i)</enum><text>the purchase of biomass heating systems;</text> </clause><clause id="id7ba53a9e6c7842079c3df7246709ac7e"><enum>(ii)</enum><text>biomass heating products, including wood chips, wood pellets, and advanced biofuels; or</text> </clause><clause id="id4820bfd1a203483da9ca47077cf1db2e"><enum>(iii)</enum><text>the delivery and storage of biomass of heating products.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="id134126BE26974E79BCA540EFDA0EC567"><enum>(c)</enum><header>Matching funds</header><text>Section 9013(d) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8113(d)) is amended—</text> <paragraph id="id4D5EF4B931B34F258526A2FBA5E6095C"><enum>(1)</enum><text>by striking <quote>A State or local government that receives a grant under subsection (b)</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id443059C46AFA4523A8E86169464A6F51" style="OLC"> <paragraph id="idB516B577219A402C9A48D0B247B0A778"><enum>(1)</enum><header>State and local governments</header><text>A State or local government that receives a grant under subparagraph (A) or (B) of subsection (b)(1)</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="id578B471B8EDC47D6B620858D5278518E"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idFBEF04EDB76348AD9DCC564D71CE01D5" style="OLC"> <paragraph id="idd12d7916354949b19d5a4c4e3bfc20a7"><enum>(2)</enum><header>Biomass consumer cooperatives</header><text>A biomass consumer cooperative that receives a grant under subsection (b)(1)(C) shall contribute an amount of non-Federal funds (which may include State, local, and nonprofit funds and membership dues) toward the establishment or expansion of a biomass consumer cooperative that is at least equal to 50 percent of the amount of Federal funds received for that purpose.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="idF98D06D80F554A0686A438F8E669C323"><enum>(d)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">Section 9013(e) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8113(e)) is amended by inserting before the period at the end <quote>and $5,000,000 for each of fiscal years 2013 through 2017</quote>.</text> </subsection></section><section id="idE26B1133CDBB44279DC103FC00F49C47"><enum>9013.</enum><header>Repeal of renewable fertilizer study</header><text display-inline="no-display-inline">Section 9003 of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 2096) is repealed.</text> </section><enum>X</enum><header>Horticulture</header> <section id="ID50982b17fde146498826a2fe1b1c1809"><enum>10001.</enum><header>Specialty crops market news allocation</header><text display-inline="no-display-inline">Section 10107(b) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 1622b(b)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="IDdb5b36b45a6148f485479b9170018327"><enum>10002.</enum><header>Repeal of grant program to improve movement of specialty crops</header><text display-inline="no-display-inline">Section 10403 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 1622c) is repealed.</text> </section><section commented="no" id="idF5655426DD804EA68C8E0F9FAC127EE5"><enum>10003.</enum><header>Farmers market and local food promotion program</header><text display-inline="no-display-inline">Section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 3005) is amended—</text> <paragraph commented="no" id="id38EB89534D854FE3A64C412C249419C4"><enum>(1)</enum><text>in the section heading, by adding <quote><header-in-text level="subsection" style="OLC">and local food</header-in-text></quote> after <quote><header-in-text level="subsection" style="OLC">market</header-in-text></quote>;</text> </paragraph><paragraph commented="no" id="id787E002987CC4347A2A899445D8E56C2"><enum>(2)</enum><text>in subsection (a)—</text> <subparagraph commented="no" id="idDF67939B18444D31AC97AAF8D16E290F"><enum>(A)</enum><text>by inserting <quote>and Local Food</quote> after <quote>Market</quote>;</text> </subparagraph><subparagraph commented="no" id="id104A6149C7BA44AC9A5E1396B2CD2E59"><enum>(B)</enum><text>by striking <quote>farmers’ markets and to promote</quote>; and</text> </subparagraph><subparagraph commented="no" id="idEF82709FA78F43B0A92DC9C5BFA74965"><enum>(C)</enum><text>by inserting <quote>and local food capacity development</quote> before the period at the end;</text> </subparagraph></paragraph><paragraph commented="no" id="ID0710761152a042939612aeeeadb540cd"><enum>(3)</enum><text>in subsection (b), by striking paragraph (1) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id760C12DC2F6D4C27B7E1168A2CDA5EFE" style="OLC"> <paragraph commented="no" id="ID8f0af4feea8e4489a89cff763db72ba0"><enum>(1)</enum><header>In general</header><text>The purposes of the Program are to increase domestic consumption of and access to locally and regionally produced agricultural products by developing, improving, expanding, and providing outreach, training, and technical assistance to, or assisting in the development, improvement and expansion of—</text> <subparagraph commented="no" id="ID3f04b141cc724123af07ed50a302b482"><enum>(A)</enum><text>domestic farmers’ markets, roadside stands, community-supported agriculture programs, agritourism activities, and other direct producer-to-consumer market opportunities; and</text> </subparagraph><subparagraph commented="no" id="IDce4417a7e4c446e2962123152e861c70"><enum>(B)</enum><text>local and regional food enterprises that are not direct producer-to-consumer markets but process, distribute, aggregate, store, and market locally or regionally produced food products.</text> </subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="ID3ae6328e38b14f29be1936c1893fd903"><enum>(4)</enum><text>in subsection (c)(1)—</text> <subparagraph commented="no" id="IDd2be6b933b3a40fba08b3176d90f7ddb"><enum>(A)</enum><text>by inserting <quote>or other business entity</quote> after <quote>cooperative</quote>; and</text> </subparagraph><subparagraph commented="no" id="ID7c4d7c30a4de4cb2bac43818818eb1e1"><enum>(B)</enum><text>by inserting <quote>, including a community supported agriculture network or association</quote> after <quote>association</quote>;</text> </subparagraph></paragraph><paragraph commented="no" id="ID16209dc0eee14af0bac3804a336f505a"><enum>(5)</enum><text>by redesignating subsection (e) as subsection (f);</text> </paragraph><paragraph commented="no" id="IDf3198b32887043dc9759152e5e70d115"><enum>(6)</enum><text>by inserting after subsection (d) the following:</text> <quoted-block display-inline="no-display-inline" id="id52A3FE82427B4D41885A6D1EA4BEA38C" style="OLC"> <subsection commented="no" id="ID47259865505348aebf26a839b655efed"><enum>(e)</enum><header>Priorities</header><text>In providing grants under the Program, priority shall be given to applications that include projects that—</text> <paragraph commented="no" id="ID7d6ab13c74274d4ebad51790ccd819d3"><enum>(1)</enum><text>benefit underserved communities;</text> </paragraph><paragraph commented="no" id="ID62ac8271f1f745918460de4f85f95871"><enum>(2)</enum><text>develop market opportunities for small and mid-sized farm and ranch operations; and</text> </paragraph><paragraph commented="no" id="ID70b6f72f121f4b26922b4dc197900424"><enum>(3)</enum><text>include a strategic plan to maximize the use of funds to build capacity for local and regional food systems in a community.</text> </paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="ID2f62ff872f434c43bb4c790faff02b82"><enum>(7)</enum><text>in subsection (f) (as redesignated by paragraph (5))—</text> <subparagraph commented="no" id="ID40a5dc6b747f4c4886d0f70992a6c7c2"><enum>(A)</enum><text>in paragraph (1)—</text> <clause commented="no" id="idCF37AA7C196A432A8DA62EA3E42B7E25"><enum>(i)</enum><text>in subparagraph (B), by striking <quote>and</quote> after the semicolon at the end;</text> </clause><clause commented="no" id="idF3688D14A55D4D28A813F102D7C6B8D1"><enum>(ii)</enum><text>in subparagraph (C), by striking the period at the end and inserting <quote>; and</quote>; and</text> </clause><clause commented="no" id="id152C087A5C2246738CF1BDF38BD6EBF1"><enum>(iii)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idF1A4A193D654497CBF99BB7E9C16E1E8" style="OLC"> <subparagraph commented="no" id="id39F2A7BB9E174699AE5BE5FA8A670A8C"><enum>(D)</enum><text>$20,000,000 for each of fiscal years 2013 through 2017.</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph commented="no" id="IDf27a9a79ce3648aa8663eab1baba7496"><enum>(B)</enum><text>by striking paragraphs (2) and (4);</text> </subparagraph><subparagraph commented="no" id="ID7c18ed35a9384da695d7a27b3036bbc5"><enum>(C)</enum><text>by redesignating paragraph (3) as paragraph (4);</text> </subparagraph><subparagraph commented="no" id="ID32aabd155a514a39ad5a5c8a7ee15070"><enum>(D)</enum><text>by inserting after paragraph (1) the following:</text> <quoted-block display-inline="no-display-inline" id="idE1A6F95B113745828DD20F7F73354149" style="OLC"> <paragraph commented="no" id="IDb1f972a730b6401dbc4ce969782c383e"><enum>(2)</enum><header>Authorization of appropriations</header><text>In addition to funds made available under paragraph (1), there is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph><paragraph commented="no" id="ID7fd7f055a2504573a6b03d4bb8c8b6d5"><enum>(3)</enum><header>Use of funds</header> <subparagraph commented="no" id="ID3b6376423c09480fb97f6cb9fd60e168"><enum>(A)</enum><header>In general</header><text>Of the funds made available to carry out the Program for each fiscal year, 50 percent shall be used for the purposes described in subsection (b)(1)(A) and 50 percent shall be used for the purposes described in subsection (b)(1)(B).</text> </subparagraph><subparagraph commented="no" id="ID1fb458f1855f4879a38f9ec610b20813"><enum>(B)</enum><header>Cost share</header><text>To be eligible to receive a grant for a project described in subsection (b)(1)(B), a recipient shall provide a match in the form of cash or in-kind contributions in an amount equal to 25 percent of the total cost of the project.</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph><subparagraph commented="no" id="ID1fe7e1060bd540a6aee4f9ec23a3d719"><enum>(E)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id3CD5BCA8955E4B4BACEE02D5E7E0CB54" style="OLC"> <paragraph commented="no" id="ID3f9b6173cfcc4b6392834975c44d3335"><enum>(5)</enum><header>Administrative expenses</header><text>Not more than 10 percent of the total amount made available to carry out this section for a fiscal year may be used for administrative expenses.</text> </paragraph><paragraph commented="no" id="idF4DEE6B87984421B830B9F852395C86D"><enum>(6)</enum><header>Limitations</header><text>An eligible entity may not use a grant or other assistance provided under the Program for the purchase, construction, or rehabilitation of a building or structure.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></section><section commented="no" id="id60EAA8446A66464899FE2029A2458E7E"><enum>10004.</enum><header>Study on local food production and program evaluation</header> <subsection id="id48b38d9e6a864340befd1df43c156ba4"><enum>(a)</enum><header>In general</header><text>The Secretary shall—</text> <paragraph id="id49bd3224fe184abab30be351524d13c6"><enum>(1)</enum><text>collect data on the production and marketing of locally or regionally produced agricultural food products;</text> </paragraph><paragraph id="idcf649d35a5d442eb984e06df4b6e7b9c"><enum>(2)</enum><text>facilitate interagency collaboration and data sharing on programs related to local and regional food systems; and</text> </paragraph><paragraph id="idccd12562d97746ff8b369a2d9e53ab52"><enum>(3)</enum><text>monitor the effectiveness of programs designed to expand or facilitate local food systems.</text> </paragraph></subsection><subsection id="id10446eeaf9bd4b60a434c7983311730f"><enum>(b)</enum><header>Requirements</header><text>In carrying out this section, the Secretary shall, at a minimum—</text> <paragraph id="idde4068403e6a443194909ef8499ecadc"><enum>(1)</enum><text>collect and distribute comprehensive reporting of prices of locally or regionally produced agricultural food products;</text> </paragraph><paragraph id="id86597369b74a4b23a8a4f76bca3d4f4b"><enum>(2)</enum><text>conduct surveys and analysis and publish reports relating to the production, handling, distribution, retail sales, and trend studies (including consumer purchasing patterns) of or on locally or regionally produced agricultural food products;</text> </paragraph><paragraph id="id697b934e35a64e618fba0da7ce7b6d90"><enum>(3)</enum><text>evaluate the effectiveness of existing programs in growing local and regional food systems, including—</text> <subparagraph id="id646E3039FCC24EB6AF924698CAD82AB2"><enum>(A)</enum><text>the impact of local food systems on job creation and economic development;</text> </subparagraph><subparagraph id="id47B3756C4F7242FEA957305041F99ADF"><enum>(B)</enum><text>the level of participation in the Farmers' Market and Local Food Promotion Program established under section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 3005), including the percentage of projects funded in comparison to applicants and the types of eligible entities receiving funds;</text> </subparagraph><subparagraph id="id1C8BED988C7F4C5E83512A60AA8C5C6D"><enum>(C)</enum><text>the ability for participants to leverage private capital and a synopsis of the places from which non-Federal funds are derived; and</text> </subparagraph><subparagraph id="idE8926BE145044085874F41F4965FF3F2"><enum>(D)</enum><text>any additional resources required to aid in the development or expansion of local and regional food systems;</text> </subparagraph></paragraph><paragraph id="id121b16bafd034adfbf507baec86ff3f0"><enum>(4)</enum><text>expand the Agricultural Resource Management Survey to include questions on locally or regionally produced agricultural food products; and</text> </paragraph><paragraph commented="no" id="idc074b6a8b4c84508819f90ee4812ab4d"><enum>(5)</enum><text>seek to establish or expand private-public partnerships to facilitate, to the maximum extent practicable, the collection of data on locally or regionally produced agricultural food products, including the development of a nationally coordinated and regionally balanced evaluation of the redevelopment of locally or regionally produced food systems.</text> </paragraph></subsection><subsection id="id56a266ad56cf49dbb48d8250ab627fbc"><enum>(c)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of this Act and annually thereafter, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the progress that has been made in implementing this section and identifying any additional needs related to developing local and regional food systems.</text> </subsection></section><section commented="no" id="idCFBBB713D728463EB57F94E6EB33994C"><enum>10005.</enum><header>Organic agriculture</header> <subsection commented="no" id="ID9edc0e8815184e22b749fdc7a5aba372"><enum>(a)</enum><header>Organic production and market data initiatives</header><text>Section 7407 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 5925c) is amended—</text> <paragraph commented="no" id="id3A5CD74A24DA4131A82B58252FCF7C75"><enum>(1)</enum><text>in subsection (c)—</text> <subparagraph commented="no" id="idD96F7C2ED111454CA58970138B28D6D1"><enum>(A)</enum><text>in the matter preceding paragraph (1), by inserting <quote>and annually thereafter</quote> after <quote>this subsection</quote>;</text> </subparagraph><subparagraph commented="no" id="id164650F592904E8FB912772119C30826"><enum>(B)</enum><text>in paragraph (1), by striking <quote>and</quote> at the end;</text> </subparagraph><subparagraph commented="no" id="idF6D0ABF7B5564F50B383287556AB03F0"><enum>(C)</enum><text>by redesignating paragraph (2) as paragraph (3); and</text> </subparagraph><subparagraph commented="no" id="id573AB032C94846B4B4F63C6B4D2CA731"><enum>(D)</enum><text>by inserting after paragraph (1) the following:</text> <quoted-block display-inline="no-display-inline" id="id3D8BC0B4362C43559DC2CA9BC066BBA0" style="OLC"> <paragraph id="idffe24dcc420c4e8f952c0bae0d5f7020"><enum>(2)</enum><text>describes how data collection agencies (such as the Agricultural Marketing Service and the National Agricultural Statistics Service) are coordinating with data user agencies (such as the Risk Management Agency) to ensure that data collected under this section can be used by data user agencies, including by the Risk Management Agency to offer price elections for all organic crops; and</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph commented="no" id="id9726AEC52A8F47D29F1B6817A072BD47"><enum>(2)</enum><text>in subsection (d)—</text> <subparagraph commented="no" id="IDd47b8aa67b0749af82ddd86c8407510a"><enum>(A)</enum><text>by redesignating paragraph (2) as paragraph (3);</text> </subparagraph><subparagraph commented="no" id="id494D2A343E58494E84FF23FD302EE05A"><enum>(B)</enum><text>by inserting after paragraph (1) the following:</text> <quoted-block display-inline="no-display-inline" id="idDFDBE10ECD8246F98DFEF0B9146ECC25" style="OLC"> <paragraph commented="no" id="IDbf006ef29d1542f0906a4d35da0ad294"><enum>(2)</enum><header>Mandatory funding</header><text>In addition to any funds available under paragraph (1), 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> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph><subparagraph commented="no" id="id26E00AF30A0C44238B95C4A4E374B3DE"><enum>(C)</enum><text>in paragraph (3) (as redesignated by subparagraph (A))—</text> <clause commented="no" id="ID1aa4f9dec6774f4198f9a0874d9d58c8"><enum>(i)</enum><text>by striking <quote>paragraph (1)</quote> and inserting <quote>paragraphs (1) and (2)</quote>; and</text> </clause><clause commented="no" id="ID966091405f634f7ca5a42fcdffcd2201"><enum>(ii)</enum><text>by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </clause></subparagraph></paragraph></subsection><subsection commented="no" id="idBA13986D02FF4F4CA7130A42B34ABB55"><enum>(b)</enum><header>Modernization and technology upgrade for national organic program</header><text display-inline="yes-display-inline">Section 2123 of the Organic Foods Production Act of 1990 (7 U.S.C. 6522) is amended—</text> <paragraph commented="no" id="id621586774CB94F3591C99672E29AE08D"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)—</text> <subparagraph commented="no" id="idC857873A787C4D8DA14256628C4A3018"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (5), by striking <quote>and</quote> at the end;</text> </subparagraph><subparagraph commented="no" id="idE7CF79C04A6347C196C89CE99BB18ADE"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating paragraph (6) as paragraph (7); and</text> </subparagraph><subparagraph commented="no" id="id1A7B7B695CC7433AA7DA7760CA9A959F"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting after paragraph (5) the following:</text> <quoted-block display-inline="no-display-inline" id="id20C1B19626F84572B84FB6CCA250CE54" style="OLC"> <paragraph commented="no" id="id5513603EFDCB41CA960D9DD2BB513FD0"><enum>(6)</enum><text display-inline="yes-display-inline">$15,000,000 for each of fiscal years 2013 through 2017; and</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph commented="no" id="idB6AAD62A25624B198BDC5AD15B0124DF"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id196E225FB40C47968625287C4BD8E969" style="OLC"> <subsection commented="no" id="idDAE454F6EA53461AA2BF6FB05814E492"><enum>(c)</enum><header>Modernization and technology upgrade for national organic program</header> <paragraph commented="no" id="idDD00EBB297CB4D2094B6A7A0EEC86CA2"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall modernize database and technology systems of the national organic program.</text> </paragraph><paragraph commented="no" id="id72B031A5F61C46C9840101BC2A156624"><enum>(2)</enum><header>Funding</header><text display-inline="yes-display-inline">Of the funds of the Commodity Credit Corporation and in addition to any other funds made available for that purpose, the Secretary shall make available to carry out this subsection $5,000,000 in fiscal year 2013, to remain available until expended.</text> </paragraph></subsection><subsection id="idefabf2b87400415680c75d3430278bf6"><enum>(d)</enum><header>Report</header><text>Not later than 180 days 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 a report that—</text> <paragraph id="id1ABBE3D74E5C4471A3AD822059914E19"><enum>(1)</enum><text>describes the efforts of the Secretary to ensure that activities conducted through commodity research and promotion programs adequately reflect the priorities of all members of the applicable orders; and</text> </paragraph><paragraph id="idD640565D158A45BA9B65920E4BDB8C37"><enum>(2)</enum><text>includes an assessment of the feasibility of establishing an organic research and promotion program, including any current barriers to establishment and challenges related to implementation.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="ID9a846b0c2476456bbc32012718d28565"><enum>10006.</enum><header>Food safety education initiatives</header><text display-inline="no-display-inline">Section 10105(c) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7655a(c)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section id="ID6c60964f87c64aa39d0e501f2912e6ec"><enum>10007.</enum><header>Coordinated plant management program</header> <subsection id="ID0f0c451ef97a40ce8c640a31a0799a8d"><enum>(a)</enum><header>In general</header><text>Section 420 of the Plant Protection Act (7 U.S.C. 7721) is amended—</text> <paragraph id="id579DEE7112BC4621A4C83E60A605B708"><enum>(1)</enum><text>by striking the section heading and inserting <quote><header-in-text level="section" style="OLC">Coordinated plant management program</header-in-text>.</quote>;</text> </paragraph><paragraph id="ID7e31c6ac317b47e4bfbb47552e2c1007"><enum>(2)</enum><text>by redesignating subsection (e) as subsection (f); and</text> </paragraph><paragraph id="ID8e4d2abb1cb348aeaf91512d2d9d55b5"><enum>(3)</enum><text>by inserting after subsection (d) the following:</text> <quoted-block display-inline="no-display-inline" id="id844F2D9F60314BCBB27B426DC481F1B7" style="OLC"> <subsection id="ID269868fbbf984365ad2a6c9645731926"><enum>(e)</enum><header>National clean plant network</header> <paragraph id="ID6c393ae845124372840da9395731897f"><enum>(1)</enum><header>In general</header><text>The Secretary shall establish a program to be known as the <quote>National Clean Plant Network</quote> (referred to in this subsection as the <quote>Program</quote>).</text> </paragraph><paragraph id="ID702363c096074747a53f768966e026a7"><enum>(2)</enum><header>Requirements</header><text>Under the Program, the Secretary shall establish a network of clean plant centers for diagnostic and pathogen elimination services—</text> <subparagraph id="ID167d5684bf8348c4b29371ea61797280"><enum>(A)</enum><text>to produce clean propagative plant material; and</text> </subparagraph><subparagraph id="IDe9d8dd3966cb49cb8bbf25eaf70f4ed6"><enum>(B)</enum><text>to maintain blocks of pathogen-tested plant material in sites located throughout the United States.</text> </subparagraph></paragraph><paragraph id="IDfc7abdea327f43439b168467c9fae3d4"><enum>(3)</enum><header>Availability of clean plant source material</header><text>Clean plant source material produced or maintained under the Program may be made available to—</text> <subparagraph id="ID1625d84c2d1843e4b5aeae6ba5dd6cdd"><enum>(A)</enum><text>a State for a certified plant program of the State; and</text> </subparagraph><subparagraph id="ID7fb817e2423d4ba4b0e4b239f5e2b68c"><enum>(B)</enum><text>private nurseries and producers.</text> </subparagraph></paragraph><paragraph id="ID3fd21b4553514fe68d039136ffd8ffd6"><enum>(4)</enum><header>Consultation and collaboration</header><text>In carrying out the Program, the Secretary shall—</text> <subparagraph id="ID94fa3a5479084c65a3747d3dd1aad6a7"><enum>(A)</enum><text>consult with—</text> <clause id="id64017A23E2F14986867436B343B96422"><enum>(i)</enum><text>State departments of agriculture; and</text> </clause><clause id="id8D1008D70F0E4F088A033B57E8E86D52"><enum>(ii)</enum><text>land-grant colleges and universities and NLGCA Institutions (as those terms are defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)); and</text> </clause></subparagraph><subparagraph id="ID6d08f2deaeed41d6a57f8cadcf2a9744"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="id1E40F8FB40EB45C8BD7C0EC458510B64"><enum>(b)</enum><header>Funding</header><text>Subsection (f) of section 420 of the Plant Protection Act (7 U.S.C. 7721) (as redesignated by subsection (a)(1)) is amended—</text> <paragraph id="id09F94A7DCEDC4961A8D1FC2654E9902E"><enum>(1)</enum><text>in paragraph (3), by striking <quote>and</quote> at the end;</text> </paragraph><paragraph id="idDFADED142A6F44AE85DF3201C51C7CB4"><enum>(2)</enum><text>in paragraph (4), by striking <quote>and each fiscal year thereafter.</quote> and inserting a semicolon; and</text> </paragraph><paragraph id="id9AFBF22925254C2C88A911EA00703AFC"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id151589BC5E634AADBA029FE5BEDCEF34" style="OLC"> <paragraph id="id4653CF1EA49441BF93E2FE7445271723"><enum>(5)</enum><text>$60,000,000 for each of fiscal years 2013 through 2016; and</text> </paragraph><paragraph id="id02B55EBF870740979E95BABF79FD356E"><enum>(6)</enum><text>$65,000,000 for fiscal year 2017 and each fiscal year thereafter.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="ID6947509216204c83969013c36924ab41"><enum>(c)</enum><header>Repeal of existing provision</header><text>Section 10202 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7761) is repealed.</text> </subsection><subsection id="IDfb39530cdbe14d58bec496bfb1f59c8c"><enum>(d)</enum><header>Clarification of use of funds for technical assistance</header><text>Section 420 of the Plant Protection Act (7 U.S.C. 7721) (as amended by subsection (a)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idC988A3B89BBA4BA29A5B55997C5A2CE4" style="OLC"> <subsection id="IDd42c56a48ddb44fca750dea1d2498464"><enum>(g)</enum><header>Relationship to other law</header><text>The use of Commodity Credit Corporation funds under this section to provide technical assistance shall not be considered an allotment or fund transfer from the Commodity Credit Corporation for purposes of the limit on expenditures for technical assistance imposed by section 11 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714i).</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="ID19b78eddfa39495d9897b6f0973532f2"><enum>10008.</enum><header>Specialty crop block grants</header><text display-inline="no-display-inline">Section 101 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108–465) is amended—</text> <paragraph id="ID665e88b4742b4ab68ad0fc4d9caf68bc"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="id14C1F3FA261241C5B8447B615EB122C0"><enum>(A)</enum><text>by striking <quote>subsection (j)</quote> and inserting <quote>subsection (l)</quote>; and</text> </subparagraph><subparagraph id="id2E873B1C1CB8419BB4BD0B7149594D21"><enum>(B)</enum><text>by striking <quote>2012</quote> and inserting <quote>2017</quote>;</text> </subparagraph></paragraph><paragraph id="ID580cfcf707564220b498116d6ba4401e"><enum>(2)</enum><text>by striking subsection (b) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id3AF311F957444BB18F5D1F26424B3DFC" style="OLC"> <subsection id="IDa7a05d4d9684445ca256b9a3a691de56"><enum>(b)</enum><header>Grants based on value and acreage</header><text>Subject to subsection (c), in the case of each State with an application for a grant for a fiscal year that is accepted by the Secretary of Agriculture under subsection (f), the amount of a grant for a fiscal year to a State under this section shall bear the same ratio to the total amount made available under subsection (l) for that fiscal year as—</text> <paragraph id="id1C89660D157C416FA4041772CFAE5D45"><enum>(1)</enum><text>the average of the most recent available value of specialty crop production in the State and the acreage of specialty crop production in the State, as demonstrated in the most recent Census of Agriculture data; bears to</text> </paragraph><paragraph id="id731E5FFBA6F448D096489F1C88848C39"><enum>(2)</enum><text>the average of the most recent available value of specialty crop production in all States and the acreage of specialty crop production in all States, as demonstrated in the most recent Census of Agriculture data.</text> </paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="idA6EB3137BE9340C6AF8CEFD55C2F53F1"><enum>(3)</enum><text>by redesignating subsection (j) as subsection (l);</text> </paragraph><paragraph id="ID81b3f17bc9fc458c8a492a89650fb007"><enum>(4)</enum><text>by inserting after subsection (i) the following:</text> <quoted-block display-inline="no-display-inline" id="idDA943B8C20EC49C7AB1997D09893607D" style="OLC"> <subsection id="ID4c33ed30bafc4ce58681520ec5f73ce8"><enum>(j)</enum><header>Multistate projects</header> <paragraph id="ID579098d7ca494e4aaee3d8658b733a2e"><enum>(1)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>, the Secretary of Agriculture shall issue guidance for the purpose of making grants to multistate projects under this section for projects involving—</text> <subparagraph id="ID509dd5cd218d431bab344ad9bcb89913"><enum>(A)</enum><text>food safety;</text> </subparagraph><subparagraph id="ID862fae7b05794c9f9601487538a2f019"><enum>(B)</enum><text>plant pests and disease;</text> </subparagraph><subparagraph id="ID41baf6ab4698434e89075a88c3ef6cc4"><enum>(C)</enum><text>crop-specific projects addressing common issues; and</text> </subparagraph><subparagraph id="IDee52fc95d7764a39bde0981591acf4db"><enum>(D)</enum><text>any other area that furthers the purposes of this section, as determined by the Secretary.</text> </subparagraph></paragraph><paragraph id="IDe16bf412d39649ddb7804719dc064214"><enum>(2)</enum><header>Funding</header><text>Of the funds provided under subsection (l), the Secretary of Agriculture may allocate for grants under this subsection, to remain available until expended—</text> <subparagraph id="ID55d5bcd824b1419f8bd84f57aacab703"><enum>(A)</enum><text>$1,000,000 for fiscal year 2013;</text> </subparagraph><subparagraph id="ID241e500249ed48ffaa3f77da71d2dc17"><enum>(B)</enum><text>$2,000,000 for fiscal year 2014;</text> </subparagraph><subparagraph id="IDc9fb91fecbb048deb7047792490604cc"><enum>(C)</enum><text>$3,000,000 for fiscal year 2015;</text> </subparagraph><subparagraph id="ID7a69e7cfc5fe4d52be85af0a8e5b4abe"><enum>(D)</enum><text>$4,000,000 for fiscal year 2016; and</text> </subparagraph><subparagraph id="ID476c9b88a20e4375b807c42d0910fbb5"><enum>(E)</enum><text>$5,000,000 for fiscal year 2017.</text> </subparagraph></paragraph></subsection><subsection id="ID431634ffc9dc4d4696f803ddfa7ecc80"><enum>(k)</enum><header>Administration</header> <paragraph id="IDb49d8bf5f99e445bb4e40e8f188c7996"><enum>(1)</enum><header>Department</header><text>The Secretary of Agriculture may not use more than 3 percent of the funds made available to carry out this section for a fiscal year for administrative expenses.</text> </paragraph><paragraph id="ID5d3d0ea5c4864d1ba0f7091d2d38ef8f"><enum>(2)</enum><header>States</header><text>A State receiving a grant under this section may not use more than 8 percent of the funds received under the grant for a fiscal year for administrative expenses.</text> </paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="id97F713EDDBD54BE9B5C2C027FAC92294"><enum>(5)</enum><text>in subsection (l) (as redesignated by paragraph (3))—</text> <subparagraph id="id1A427802E4734DE291BB6228C900B9A5"><enum>(A)</enum><text>in paragraph (2), by striking <quote>and</quote> at the end;</text> </subparagraph><subparagraph id="id8695B62A90404CD4B7E2BB084DAF0539"><enum>(B)</enum><text>in paragraph (3), by striking the period at the end and inserting <quote>; and</quote>; and</text> </subparagraph><subparagraph id="id5D5DFEEB2F31436DA1687122AA97A133"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id4D9C695769EA4626B57F44351F88D1D2" style="OLC"> <paragraph id="idA34DBD579A804D9DB3A7FC68C6B2EAD1"><enum>(4)</enum><text>$70,000,000 for fiscal year 2013 and each fiscal year thereafter.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></section><section id="id935EBCB0E47847BBBFA79F720CF2909F"><enum>10009.</enum><header>Recordkeeping, investigations, and enforcement</header><text display-inline="no-display-inline">The Organic Foods Production Act of 1990 is amended by inserting after section 2120 (7 U.S.C. 6519) the following:</text> <quoted-block display-inline="no-display-inline" id="id41cd05b8dab34a2482ddffca41ebe7e3" style="OLC"> <section id="idFB2DB5A7C4AA4C16A7E64BC575BA83DA"><enum>2120A.</enum><header>Recordkeeping, investigations, and enforcement</header> <subsection id="id9bb6f2d7790f48baaab24ae715873966"><enum>(a)</enum><header>Recordkeeping</header> <paragraph id="id9c1f91c63f0b47c3b03d468a6d5863e4"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this title, all persons, including producers, handlers, and certifying agents, required to report information to the Secretary under this title shall maintain, and make available to the Secretary on the request of the Secretary, all contracts, agreements, receipts, and other records associated with the organic certification program established by the Secretary under this title.</text> </paragraph><paragraph id="id1569ad511ec245a1ac5ecaf02f24f936"><enum>(2)</enum><header>Duration of recordkeeping requirement</header><text>A record covered by paragraph (1) shall be maintained—</text> <subparagraph id="id03f2eaf510e1479ca4ee6eb743a6b1b7"><enum>(A)</enum><text>by a person covered by this title, except for a certifying agent, for a period of 5 years beginning on the date of the creation of the record; and</text> </subparagraph><subparagraph id="id6a34111300654b9b9c1191c979bfca02"><enum>(B)</enum><text>by a certifying agent, for a period of 10 years beginning on the date of the creation of the record.</text> </subparagraph></paragraph></subsection><subsection id="idee4097ff1cc44bf2895d96bf38cc9351"><enum>(b)</enum><header>Confidentiality</header> <paragraph id="id8a105147f92149298929cb522179d490"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), and except as otherwise directed by the Secretary or the Attorney General for enforcement purposes, no officer, employee, or agent of the United States shall make available to the public information, statistics, or documents obtained from or made available by any person under this title, other than in a manner that ensures that confidentiality is preserved regarding the identity of persons, including parties to a contract, and proprietary business information.</text> </paragraph><paragraph id="ide4ede92608b94e37b3ba0abe45529714"><enum>(2)</enum><header>Alleged violators and nature of actions</header><text>The Secretary may release the name of the alleged violator and the nature of the actions triggering an order, suspension, or revocation under subsection (e).</text> </paragraph></subsection><subsection id="id076da8fdda854d61a665ce5b47a1ba86"><enum>(c)</enum><header>Investigation</header> <paragraph id="id54345012348d4037806cd079951d4fea"><enum>(1)</enum><header>In general</header><text>The Secretary may take such investigative actions as the Secretary considers to be necessary to carry out this title—</text> <subparagraph id="idb8d62d57d3854e2bbe573b32b6960f86"><enum>(A)</enum><text>to verify the accuracy of any information reported or made available under this title; and</text> </subparagraph><subparagraph id="idbaae82a2af1b4372acd8e995f2f42182"><enum>(B)</enum><text>to determine, with regard to actions, practices, or information required under this title, whether a person covered by this title has committed, or will commit, a violation of any provision of this title, including an order or regulation promulgated by the Secretary.</text> </subparagraph></paragraph><paragraph id="id0caae3ae4235478fab101e5d0aa5385a"><enum>(2)</enum><header>Investigative powers</header><text>The Secretary may administer oaths and affirmations, subpoena witnesses, compel attendance of witnesses, take evidence, and require the production of any books, papers, and documents that are relevant to the investigation.</text> </paragraph></subsection><subsection id="idd573a388fe4a4f0d9f80fe0f4f5d67f5"><enum>(d)</enum><header>Unlawful Act</header><text>It shall be unlawful and a violation of this title for any person covered by this title—</text> <paragraph id="iddd587049b10240e08fa8edda9ff66333"><enum>(1)</enum><text>to fail or refuse to provide, or delay the timely provision of, accurate information required by the Secretary under this section;</text> </paragraph><paragraph id="id71524fd997754c3f9d1be35df69b0a39"><enum>(2)</enum><text>to violate—</text> <subparagraph id="idabb684f93d0744d29fc2d9c09b846880"><enum>(A)</enum><text>an order of the Secretary;</text> </subparagraph><subparagraph id="id6289007ad56e4a4381be23c761b47ac8"><enum>(B)</enum><text>a suspension or revocation of the organic certification of a producer or handler; or</text> </subparagraph><subparagraph id="id1a9d21cfb0cc40b080d1071888ffc3ec"><enum>(C)</enum><text>a suspension or revocation of the accreditation of a certifying agent; or</text> </subparagraph></paragraph><paragraph id="id6728ac9141ed4d0fb44a808bb8d2ede6"><enum>(3)</enum><text>to sell, or attempt to sell, a product that is represented as being organically produced under this title if in fact the product has been produced or handled by an operation that is not yet a certified organic producer or handler under this title.</text> </paragraph></subsection><subsection id="idfb524e2fe97c45eba09b3544a4acd44c"><enum>(e)</enum><header>Enforcement</header> <paragraph id="id5b2b043815dd4378a3888533907dfda8"><enum>(1)</enum><header>Order</header><text>The Secretary may issue an order to stop the sale of an agricultural product that is labeled or otherwise represented as being organically produced—</text> <subparagraph id="ide98e1d6835a244469986e578dd75756d"><enum>(A)</enum><text>until the product can be verified—</text> <clause id="id71bca61c0dc343e0adedbbacb2489388"><enum>(i)</enum><text>as meeting the national and State standards for organic production and handling as provided in sections 2105 through 2114;</text> </clause><clause id="ida480787e7a62465d90bb31a131467905"><enum>(ii)</enum><text>as having been produced or handled without the use of a prohibited substance listed under section 2118; and</text> </clause><clause id="id0c6d0dc256f94902952b4e30d359601f"><enum>(iii)</enum><text>as being produced and handled by a certified organic operation; and</text> </clause></subparagraph><subparagraph id="id5be68dde48364c83845a3af984c55aa0"><enum>(B)</enum><text>if a person has committed an unlawful act with respect to the product under subsection (d).</text> </subparagraph></paragraph><paragraph id="id1bd36f52c0c8479ca21f03b8ee5dde8d"><enum>(2)</enum><header>Certification or accreditation</header> <subparagraph id="id93ce314ad8a64b39b8a05b1253a11929"><enum>(A)</enum><header>Suspension</header> <clause id="ided7351013fab4c4c8fed3dc3ee787b60"><enum>(i)</enum><header>In general</header><text>The Secretary may suspend the organic certification of a producer or handler, or accreditation of a certifying agent, for a period not to exceed 30 days, and may renew the suspension for an additional period, under the circumstances described in clause (ii).</text> </clause><clause id="idb26773c0e006494fac5faed4ee0b029a"><enum>(ii)</enum><header>Actions triggering suspension</header><text>The Secretary may take the suspension or renewal actions described in clause (i), if the Secretary has reason to believe that a person producing or handling an agricultural product, or a certifying agent, has violated or is violating any provision of this title, including an order or regulation promulgated under this title.</text> </clause><clause id="id869943c69426482b831aaa1e79d753ce"><enum>(iii)</enum><header>Continuation of suspension through appeal</header><text>If the Secretary determines subsequent to an investigation that a violation of this title by a person covered by this title has occurred, the suspension shall remain in effect until the Secretary issues a revocation of the certification of the person or of the accreditation of the certifying agent, covered by this title, after an expedited administrative appeal under section 2121 has been completed.</text> </clause></subparagraph><subparagraph id="id86fc51bb1b2c48fc83e52230f535f4f2"><enum>(B)</enum><header>Revocation</header><text>After notice and opportunity for an administrative appeal under section 2121, if a violation described in subparagraph (A)(ii) is determined to have occurred and is an unlawful act under subsection (d), the Secretary shall revoke the organic certification of the producer or handler, or the accreditation of the certifying agent.</text> </subparagraph></paragraph><paragraph id="idd6d5d1ba935b40109b610d12b22e0479"><enum>(3)</enum><header>Violation of order or revocation</header><text>A person who violates an order to stop the sale of a product as an organically produced product under paragraph (1), or a revocation of certification or accreditation under paragraph (2)(B), shall be subject to 1 or more of the penalties provided in subsections (a) and (b) of section 2120.</text> </paragraph></subsection><subsection id="idc0ab0c6cafcc416b99071fdb3b9f7817"><enum>(f)</enum><header>Appeal</header> <paragraph id="id8f9ca079719641a1a9135bd3c90e3266"><enum>(1)</enum><header>In general</header><text>An order under subsection (e)(1), or a revocation of certification or accreditation under subsection (e)(2)(B) shall be final and conclusive unless the affected person files an appeal of the order—</text> <subparagraph id="ide89ccac3c0af4284b259be864c3eda47"><enum>(A)</enum><text>first, to the administrative appeals process established under section 2121(a); and</text> </subparagraph><subparagraph id="id7766df14a04e4a87b3f099b9d5f6d33a"><enum>(B)</enum><text>second, if the affected person so elects, to a United States district court as provided in section 2121(b) not later than 30 days after the date of the determination under subparagraph (A).</text> </subparagraph></paragraph><paragraph id="idfd55d52ad4ad4a3abc8440dd708956b0"><enum>(2)</enum><header>Standard</header><text>An order under subsection (e)(1), or a revocation of certification or accreditation under subsection (e)(2)(B), shall be set aside only if the order, or the revocation of certification or accreditation, is not supported by substantial evidence.</text> </paragraph></subsection><subsection id="id8744ec3f6fed4f5abf70743c50dcc123"><enum>(g)</enum><header>Noncompliance</header> <paragraph id="id9c5c6f9f2fb94da7b9a2de13ad0d3695"><enum>(1)</enum><header>In general</header><text>If a person covered by this title fails to obey an order, or a revocation of certification or accreditation, described in subsection (f)(2) after the order or revocation has become final and conclusive or after the appropriate United States district court has entered a final judgment in favor of the Secretary, the United States may apply to the appropriate United States district court for enforcement of the order, or the revocation of certification or accreditation.</text> </paragraph><paragraph id="ida4c6067c5e0a46b1ba694f476b35345c"><enum>(2)</enum><header>Enforcement</header><text>If the court determines that the order or revocation was lawfully made and duly served and that the person violated the order or revocation, the court shall enforce the order or revocation.</text> </paragraph><paragraph id="id7c35747a81a64080aa8d975d6ba99559"><enum>(3)</enum><header>Civil penalty</header><text>If the court finds that the person violated the order or revocation, the person shall be subject to a civil penalty of not more than $10,000 for each offense.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id792B8816ED0E452FA7B7FE733606B491"><enum>10010.</enum><header>Report on honey</header> <subsection id="id0B91B97A207C49CCAFC6A871A82D2E79"><enum>(a)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary, in consultation with affected stakeholders, shall submit to the Commissioner of Food and Drugs a report describing how an appropriate Federal standard for the identity of honey would promote honesty and fair dealing and would be in the interest of consumers, the honey industry, and United States agriculture.</text> </subsection><subsection id="idEA6CE0E2453C4559A9FA578B45A26D75"><enum>(b)</enum><header>Contents</header><text>In preparing the report under subsection (a), the Secretary shall take into consideration the March 2006 Standard of Identity citizens petition filed with the Food and Drug Administration, including any current industry amendments or clarifications necessary to update that 2006 petition.</text> </subsection></section><section id="id8DFE31F135AF400F9D31597B180D5552"><enum>10011.</enum><header>Effective date</header><text display-inline="no-display-inline">This title and the amendments made by this title take effect on October 1, 2012.</text> </section><enum>XI</enum><header display-inline="yes-display-inline">Crop insurance</header> <section id="ida0747a240f7e4ea092bce963596ea578"><enum>11001.</enum><header>Supplemental coverage option</header> <subsection id="idBA048A2F84A843D1965F624DA80256D6"><enum>(a)</enum><header>Availability of supplemental coverage option</header><text>Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (3) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id8ca3ccc7fb754360aa2d5ad6b8ccdbe9" style="OLC"> <paragraph id="id5b05370630dc4e52a55d6f466a396a7d"><enum>(3)</enum><header>Yield and loss basis options</header><text>A producer shall have the option of purchasing additional coverage based on—</text> <subparagraph id="idb45fde948e8643f78c199e7329d1504f"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="id4FBA36E2BB0C4EC88159FA64AAB386D3"><enum>(i)</enum><text>an individual yield and loss basis; or</text> </clause><clause id="id9C62AC30C1B04C20B66D424BB6506EB0" indent="up1"><enum>(ii)</enum><text>an area yield and loss basis;</text> </clause></subparagraph><subparagraph id="id809981c5eaa3453f936b8cbe90cfa590"><enum>(B)</enum><text>an individual yield and loss basis, supplemented with coverage based on an area yield and loss basis to cover all or a part of the deductible under the individual yield and loss policy, as authorized in paragraph (4)(C); or</text> </subparagraph><subparagraph id="id59A382FD32D84B42873DC1FDFC2BFFE5"><enum>(C)</enum><text>a margin basis alone or in combination with—</text> <clause id="idF1AD334787E943188920B646DF9D8F20"><enum>(i)</enum><text>individual yield and loss coverage; or</text> </clause><clause id="id87259E77A72442509431B508F8315D03"><enum>(ii)</enum><text>area yield and loss coverage.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id5c4ca816699f44d99ab6f5092e68041e"><enum>(b)</enum><header>Level of coverage</header><text>Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (4) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="ida2167410bec445dfb8c5016e220fdfa8" style="OLC"> <paragraph id="id6bfc2b268acb47de89c1c411865f8653"><enum>(4)</enum><header>Level of coverage</header> <subparagraph id="ide14ab792f2944965b171efe83e840975"><enum>(A)</enum><header>Dollar denomination and percentage of yield</header><text>Except as provided in subparagraph (C), the level of coverage—</text> <clause id="id1b4c5797532e49b780fb699319e80831"><enum>(i)</enum><text>shall be dollar denominated; and</text> </clause><clause id="id96c57051b6d54303bbe3b7a90fdee63e"><enum>(ii)</enum><text>may be purchased at any level not to exceed 85 percent of the individual yield or 95 percent of the area yield (as determined by the Corporation).</text> </clause></subparagraph><subparagraph id="id79e1e5f4d58a46cdad89d98c42dae8b5"><enum>(B)</enum><header>Information</header><text>The Corporation shall provide producers with information on catastrophic risk and additional coverage in terms of dollar coverage (within the allowable limits of coverage provided in this paragraph).</text> </subparagraph><subparagraph id="ida3647478d9274586bada850976a917a7"><enum>(C)</enum><header>Supplemental coverage option</header> <clause id="id11cb1391f77040bb904f2fe58e742a14"><enum>(i)</enum><header>In general</header><text>Notwithstanding subparagraph (A), in the case of the supplemental coverage option described in paragraph (3)(B), the Corporation shall offer producers the opportunity to purchase coverage in combination with a policy or plan of insurance offered under this subtitle that would allow indemnities to be paid to a producer equal to all or part of the deductible under the policy or plan of insurance, if sufficient area data is available (as determined by the Corporation).</text> </clause><clause id="idc79e38ea62424c3a95f7b11c6d4086e4"><enum>(ii)</enum><header>Trigger</header><text>Coverage offered under this subparagraph shall be triggered only if the losses in the area exceed 10 percent of normal levels (as determined by the Corporation).</text> </clause><clause id="id99708f7319b5448c926905f100a7f9dc"><enum>(iii)</enum><header>Coverage</header><text>Subject to the trigger described in clause (ii) and the deductible imposed by clause (iv), coverage offered under this subparagraph shall cover the first loss incurred by the producer, not to exceed the difference between—</text> <subclause id="id1c73496d013f4dff983eb1acb5b45d83"><enum>(I)</enum><text>100 percent; and</text> </subclause><subclause id="id2332178680104f00b278323ef5a2d1b2"><enum>(II)</enum><text>the coverage level selected by the producer for the underlying policy or plan of insurance.</text> </subclause></clause><clause id="id399b3f75f2224b18b86fb1a4450e81a3"><enum>(iv)</enum><header>Deductible</header><text>Coverage offered under this subparagraph shall be subject to a deductible in an amount equal to—</text> <subclause id="id49253D6A187E4928A8CD90BF3AA9420F"><enum>(I)</enum><text>in the case of a producer who participates in the agriculture risk coverage program under section 1105(c) of the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>, 21 percent of the expected value of the crop of the producer covered by the underlying policy or plan of insurance, as determined by the Corporation; and</text> </subclause><subclause id="idac2a545888aa41daa6515f3a5f7fde69"><enum>(II)</enum><text>in the case of all other producers, 10 percent of the expected value of the crop of the producer covered by the underlying policy or plan of insurance, as determined by the Corporation.</text> </subclause></clause><clause id="iddb96167e1c5d404ba239424b7dfa0f5c"><enum>(v)</enum><header>Calculation of premium</header><text>Notwithstanding subsection (d), the premium shall—</text> <subclause id="idc6873b021d004c5096d688b4e14afc92"><enum>(I)</enum><text>be sufficient to cover anticipated losses and a reasonable reserve; and</text> </subclause><subclause id="id28ac74293d7948a0a81b6d735a253322"><enum>(II)</enum><text>include an amount for operating and administrative expenses established in accordance with subsection (k)(4)(F).</text> </subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id0c626ab9de7845b69530aa86c29475cb"><enum>(c)</enum><header>Payment of portion of premium by Corporation</header><text>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:</text> <quoted-block display-inline="no-display-inline" id="id584e170bba7d421f9510540fd02434d5" style="OLC"> <subparagraph id="id04bd00861d6947f08bd14c5147779448"><enum>(H)</enum><text>In the case of the supplemental coverage option authorized in subsection (c)(4)(C), the amount shall be equal to the sum of—</text> <clause id="id5ff295463e0c42029f633d0aad434318"><enum>(i)</enum><text>70 percent of the additional premium associated with the coverage; and</text> </clause><clause id="id1cd5a66bac7a4bdd956966fe3c72b96f"><enum>(ii)</enum><text>the amount determined under subsection (c)(4)(C)(v)(II) for the coverage to cover operating and administrative expenses.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id0f8f7cf3b67349a398233b908a9d37eb"><enum>(d)</enum><header>Conforming amendment</header><text>Section 508(k)(4)(F) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(F)) is amended by inserting <quote>or authorized under subsection (c)(4)(C)</quote> after <quote>of this subparagraph</quote>.</text> </subsection><subsection id="id69aba154b5e94bdbb15f5dfc6c3b7c12"><enum>(e)</enum><header>Effective date</header><text>The Federal Crop Insurance Corporation shall begin to provide additional coverage based on an individual yield and loss basis, supplemented with coverage based on an area yield and loss basis, not later than for the 2013 crop year.</text> </subsection></section><section id="id3e22c0e268d1422f8d996de89c3e248e"><enum>11002.</enum><header>Premium amounts for catastrophic risk protection</header><text display-inline="no-display-inline">Section 508(d)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)) is amended by striking subparagraph (A) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idfa5593e9823c4939916451b3ae8dee32" style="OLC"> <subparagraph id="id98f3cf136c4749d8b7fa3a55bd64ba07"><enum>(A)</enum><text>In the case of catastrophic risk protection, the amount of the premium established by the Corporation for each crop for which catastrophic risk protection is available shall be reduced by the percentage equal to the difference between the average loss ratio for the crop and 100 percent, plus a reasonable reserve, as determined by the Corporation.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="idc577b6cd27da44b1a102ddd1d6fd89db"><enum>11003.</enum><header>Permanent enterprise unit</header><text display-inline="no-display-inline">Section 508(e)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(5)) is amended by striking subparagraph (A) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="ida9168001a33748f2ab6f18f1eab83f38" style="OLC"> <subparagraph id="idd08c60087a86488090c8e3da07981e55"><enum>(A)</enum><header>In general</header><text>The Corporation may pay a portion of the premiums for plans or policies of insurance for which the insurable unit is defined on a whole farm or enterprise unit basis that is higher than would otherwise be paid in accordance with paragraph (2).</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="idaf75989f2d594685bb62174f8ce700a5"><enum>11004.</enum><header>Enterprise units for irrigated and nonirrigated crops</header><text display-inline="no-display-inline">Section 508(e)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(5)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id7a7eb3010807441ba866dfb5aad02a9b" style="OLC"> <subparagraph id="idbfc497aaf9144efca0821f8417bb4842"><enum>(D)</enum><header>Nonirrigated crops</header><text>Beginning with the 2013 crop year, the Corporation shall make available separate enterprise units for irrigated and nonirrigated acreages of crops in counties.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="idc00abe230ac44cd0a1817eaf5bb6a4c7"><enum>11005.</enum><header>Data collection</header><text display-inline="no-display-inline">Section 508(g)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)(2)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idce46181c9b8647f5b77fc94bc01bc2ee" style="OLC"> <subparagraph id="id7107d3e77017414591059650e0bdbe96"><enum>(E)</enum><header>Sources of yield data</header><text>To determine yields under this paragraph, the Corporation—</text> <clause id="id223aee5d099849e185ad542cd4524880"><enum>(i)</enum><text>shall use county data collected by the Risk Management Agency or the National Agricultural Statistics Service, or both; or</text> </clause><clause id="id60d5f140742a441e878e2ef8d227c251"><enum>(ii)</enum><text>if sufficient county data is not available, may use other data considered appropriate by the Secretary.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id9ef7805cbfe44e469771d1b199300dc1"><enum>11006.</enum><header>Adjustment in actual production history to establish insurable yields</header><text display-inline="no-display-inline">Section 508(g)(4)(B) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)(4)(B)) is amended—</text> <paragraph id="id7126D97941144E8BB78A2F9CDCF468DD"><enum>(1)</enum><text display-inline="yes-display-inline">in the matter preceding clause (i), by inserting <quote>for the 2012 crop year or any prior crop year, or 70 percent of the applicable transitional yield for the 2013 or any subsequent crop year,</quote> after <quote>transitional yield</quote>; and</text> </paragraph><paragraph id="idE70C743ADAE54DAEB8B0C504CE95CFDF"><enum>(2)</enum><text display-inline="yes-display-inline">in clause (ii), by striking <quote>60 percent of the applicable transitional yield</quote> and inserting <quote>the applicable percentage of the transitional yield described in this subparagraph</quote>.</text> </paragraph></section><section id="idae2361c2ab4c4d41accb2acf87045e52"><enum>11007.</enum><header>Submission and review of policies</header><text display-inline="no-display-inline">Section 508(h)(1) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)(1)) is amended—</text> <paragraph id="id84338b577eef4a138f4ad43726092c2b"><enum>(1)</enum><text>by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and indenting appropriately;</text> </paragraph><paragraph id="id02a5fcc47fe441c48b8a475bae1e74c8"><enum>(2)</enum><text>by striking <quote>(1) <header-in-text level="paragraph" style="OLC">In general</header-in-text>.—</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="ide82af27c44304082b5eb3adc6f3a3f8d" style="OLC"> <paragraph id="id94071810a5e04a9bacb718584d7433b0"><enum>(1)</enum><header>Submission and review of policies</header> <subparagraph id="id7388a504a9a044eb92fc56e0d7c25e6e"><enum>(A)</enum><header>Submissions</header><text>In addition</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="id84f4cd6dc89848a08d25add299d67ee5"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id22001bb696d643afaf7d06440e349762" style="OLC"> <subparagraph id="idb4c358725bba49b89c577c603f418978"><enum>(B)</enum><header>Review</header><text>The Corporation shall review any policy developed under section 522(c) or any pilot program developed under section 523 and submit the policy or program to the Board under this subsection if the Corporation, at the sole discretion of the Corporation, finds that the policy or program—</text> <clause id="idec374763b4a6488db3d5d8f068b87d59"><enum>(i)</enum><text>will likely result in a viable and marketable policy consistent with this subsection;</text> </clause><clause id="id3e8526397a0c42dfb8321af9142c56d6"><enum>(ii)</enum><text>would provide crop insurance coverage in a significantly improved form; and</text> </clause><clause id="id46aa7915303c4dc185d376b9faceb1e6"><enum>(iii)</enum><text>adequately protects the interests of producers.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="id6d4842cb3a4d4cb89565f9fc6eb72531"><enum>11008.</enum><header>Board review and approval</header> <subsection id="idADE08F5FCD8543FE9D65E67FE1F71AC5"><enum>(a)</enum><header>Review and approval by the board</header><text>Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)) is amended by striking paragraph (3) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id32337c6fb10a4240a249562077c94b23" style="OLC"> <paragraph id="id33a552440c0e40e9aec87e66c00398d4"><enum>(3)</enum><header>Review and approval by the board</header> <subparagraph id="id51121a00c3ef412580a3c76208c34dde"><enum>(A)</enum><header>In general</header><text>A policy, plan of insurance, or other material submitted to the Board under this subsection shall be reviewed by the Board and shall be approved by the Board for reinsurance and for sale by approved insurance providers to producers at actuarially appropriate rates and under appropriate terms and conditions if the Board, at the sole discretion of the Board, determines that—</text> <clause id="id0df72730fd7c489e893aaf6acb31e87b"><enum>(i)</enum><text>the interests of producers are adequately protected;</text> </clause><clause id="idd4faf24eb57747d9988506a008ed580e"><enum>(ii)</enum><text>the rates of premium and price election methodology are actuarially appropriate;</text> </clause><clause id="idecc4f16524f54ecc8d7556d612406e65"><enum>(iii)</enum><text>the terms and conditions for the proposed policy or plan of insurance are appropriate and would not unfairly discriminate among producers;</text> </clause><clause id="idfb999cf3865e4c43a136b553603f33ad"><enum>(iv)</enum><text>the proposed policy or plan of insurance will, at the sole discretion of the Board—</text> <subclause id="id46f0387915f648299fa085aad6b0d67b"><enum>(I)</enum><text>likely result in a viable and marketable policy that can reasonably attain levels of participation similar to other like policies or plans of insurance;</text> </subclause><subclause id="id5de9cfed1eec4289a8e2714fbbdeb768"><enum>(II)</enum><text>provide crop insurance coverage in a significantly improved form or in a manner that addresses a recognized flaw or problem in an existing policy; or</text> </subclause><subclause id="id019c9aa390914d2894644267398819ac"><enum>(III)</enum><text>provide a new kind of coverage for a commodity that previously had no available crop insurance, or has demonstrated a low level of participation under existing coverage;</text> </subclause></clause><clause id="ided069e7f416f49978fbb047e2b594c1c"><enum>(v)</enum><text>the proposed policy or plan of insurance will, at the sole discretion of the Board, not have a significant adverse impact on the crop insurance delivery system; and</text> </clause><clause id="id58ab987cf4af4e0f83b6fc905fb5b2de"><enum>(vi)</enum><text>the proposed policy or plan of insurance meets such other requirements as are determined appropriate by the Board.</text> </clause></subparagraph><subparagraph id="id23059e3d05b74dd6add3314f1e20ce21"><enum>(B)</enum><header>Priorities</header> <clause id="id6f6f63da938f49bab60670d16d63f1e3"><enum>(i)</enum><header>Establishment</header><text>The Board, at the sole discretion of the Board, may—</text> <subclause id="id29081b4bb5434814baad98efacf4ab4b"><enum>(I)</enum><text>annually establish priorities under this subsection that specify types of submissions needed to fulfill the portfolio of policies or plans of insurance to be reviewed and approved under this subsection; and</text> </subclause><subclause id="id8214e97218dd428da71f2b0493770e25"><enum>(II)</enum><text>make the priorities available on the website of the Corporation.</text> </subclause></clause><clause id="id817df57d721f4b7c8d1f08e60493d990"><enum>(ii)</enum><header>Process</header> <subclause id="idd0e3584dbb5b4d358c36c4abd1cdb33b"><enum>(I)</enum><header>In general</header><text>Policies or plans of insurance that satisfy the priorities established by the Board under this subsection shall be considered by the Board for approval prior to other submissions.</text> </subclause><subclause id="idc9b603a694124966b2351a920180208e"><enum>(II)</enum><header>Considerations</header><text>In approving policies or plans of insurance, the Board shall—</text> <item id="idb31067ed5e254775bbc7453b67b66557"><enum>(aa)</enum><text>consider providing the highest priorities for policies or plans of insurance that address underserved commodities, including commodities for which there is no insurance; and</text> </item><item id="id15e8fc2026dd4d789e07bd2d60963770"><enum>(bb)</enum><text>consider providing the highest priorities for existing policies for which there is inadequate coverage or there exists low levels of participation.</text> </item></subclause></clause><clause id="ida1a647358f1c4372a7bf4a41b9e80c92"><enum>(iii)</enum><header>Other criteria</header><text>The Board may establish such other criteria as the Board determines to meet the needs of producers and the priorities of this subsection, consistent with the purposes of this subtitle.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="id175b6a995c61436fbcf66e106224602d"><enum>11009.</enum><header>Consultation</header><text display-inline="no-display-inline">Section 508(h)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idFD041DDF73F74A8A9C16E47939970D15" style="OLC"> <subparagraph id="ide5df7aede2f64588b4affe2c25b8bf8f"><enum>(E)</enum><header>Consultation</header> <clause id="id9d41b4b3fe8b4f50a7c324e98affe64a"><enum>(i)</enum><header>Requirement</header><text>As part of the feasibility and research associated with the development of a policy or other material conducted prior to making a submission to the Board under this subsection, the submitter shall consult with groups representing producers of agricultural commodities in all major producing areas for the commodities to be served or potentially impacted, either directly or indirectly.</text> </clause><clause id="id3fde8bfb800b4757967050fc0bf7b3b5"><enum>(ii)</enum><header>Submission to the board</header><text>Any submission made to the Board under this subsection shall contain a summary and analysis of the feasibility and research findings from the impacted groups described in clause (i), including a summary assessment of the support for or against development of the policy and an assessment on the impact of the proposed policy to the general marketing and production of the crop from both a regional and national perspective.</text> </clause><clause id="idc33474c562c0451eaa68aef6811bbf3a"><enum>(iii)</enum><header>Evaluation by the board</header><text>In evaluating whether the interests of producers are adequately protected pursuant to paragraph (3) with respect to an submission made under this subsection, the Board shall review the information provided pursuant to clause (ii) to determine if the submission will create adverse market distortions with respect to the production of commodities that are the subject of the submission.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="idd29a1e2d1b6040c3972dd327cbfc306c"><enum>11010.</enum><header>Budget limitations on renegotiation of the standard reinsurance agreement</header><text display-inline="no-display-inline">Section 508(k)(8) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(8)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id22be854e0c09454582f0192805729f4c" style="OLC"> <subparagraph id="ide57e494a15ef4c749ba2e16325936ce8"><enum>(F)</enum><header>Budget</header> <clause id="idf473b129c2534d748ac172cc9e9d5871"><enum>(i)</enum><header>In general</header><text>The Board shall ensure that any Standard Reinsurance Agreement negotiated under subparagraph (A)(ii), as compared to the previous Standard Reinsurance Agreement—</text> <subclause id="idca2ae5c3adaf4256a6979547bd47cb25"><enum>(I)</enum><text>to the maximum extent practicable, shall be budget neutral; and</text> </subclause><subclause id="id864317ced6d8435aa8957131ce6f8fd4"><enum>(II)</enum><text>in no event, may significantly depart from budget neutrality.</text> </subclause></clause><clause id="ida0addf65540e40aba995dc46939e9340"><enum>(ii)</enum><header>Use of savings</header><text>To the extent that any budget savings is realized in the renegotiation of a Standard Reinsurance Agreement under subparagraph (A)(ii), and the savings are determined not to be a significant departure from budget neutrality under clause (i), the savings shall be used for programs administered or managed by the Risk Management Agency.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id33C5EFC8FEFF47D8A71FC644412785CF"><enum>11011.</enum><header>Stacked income protection plan for producers of upland cotton</header> <subsection id="id366d01fb486543f081167c2dd6680917"><enum>(a)</enum><header>Availability of stacked income protection plan</header><text>The Federal Crop Insurance Act is amended by inserting after section 508A (7 U.S.C. 1508a) the following:</text> <quoted-block display-inline="no-display-inline" id="id15bc5d78273646cdb442e2e05bb52f67" style="OLC"> <section id="id341f222d8e954f5eb246c3b67864d836"><enum>508B.</enum><header>Stacked income protection plan for producers of upland cotton</header> <subsection id="idc5d16b3250e54d0bb047cfd2604513c6"><enum>(a)</enum><header>Availability</header><text>Beginning not later than the 2013 crop of upland cotton, if practicable, the Corporation shall make available to producers of maximum eligible acres of upland cotton an additional policy (to be known as the <quote>Stacked Income Protection Plan</quote>), which shall provide coverage consistent with the Group Risk Income Protection Plan (and the associated Harvest Revenue Option Endorsement) offered by the Corporation for the 2011 crop year.</text> </subsection><subsection id="idbae586b597af4c448d763976cfdf76d4"><enum>(b)</enum><header>Required terms</header><text>The Corporation may modify the Stacked Income Protection Plan on a program-wide basis, except that the Stacked Income Protection Plan shall comply with the following requirements:</text> <paragraph id="id90111d31e20e4a36a197bed10d8a9b35"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id43C66256CB6D4CBEAA2397E8FEBB2999"><enum>(A)</enum><text>Provide coverage for revenue loss of not more than 30 percent of expected county revenue, specified in increments of 5 percent.</text> </subparagraph><subparagraph id="idA038DE79265B41D7BB72729A94BFCA82" indent="up1"><enum>(B)</enum><text>The deductible is the minimum percent of revenue loss at which indemnities are triggered under the plan, not to be less than 10 percent of the expected county revenue.</text> </subparagraph><subparagraph id="id50F9C1CF85D441A48C48A08693B6A1EE" indent="up1"><enum>(C)</enum><text>Once the deductible is met, any losses in excess of the deductible will be paid up to the coverage selected by the producer.</text> </subparagraph></paragraph><paragraph id="id6d4cb7dbfd7e46c7ae3a5ab2f42d1574"><enum>(2)</enum><text>Be offered to producers of upland cotton in all counties with upland cotton production—</text> <subparagraph id="id400ce1ec0c1442e095a105af2710d225"><enum>(A)</enum><text>at a county-wide level to the fullest extent practicable; or</text> </subparagraph><subparagraph id="id427d89ff9e834fb29527cae8dc5e8ca8"><enum>(B)</enum><text>in counties that lack sufficient data, on the basis of such larger geographical area as the Corporation determines to provide sufficient data for purposes of providing the coverage.</text> </subparagraph></paragraph><paragraph id="ida11808d8279c4e859960d76b61e6a552"><enum>(3)</enum><text>Be purchased in addition to any other individual or area coverage in effect on the producer’s acreage or as a stand-alone policy, except that if a producer has an individual or area coverage for the same acreage, the maximum coverage available under the Stacked Income Protection Plan shall not exceed the deductible for the individual or area coverage.</text> </paragraph><paragraph id="id3b1d265669a847f587fc2cbb5f9a505b"><enum>(4)</enum><text>Establish coverage based on—</text> <subparagraph id="id70f732b923f44599a50d8620f4db5494"><enum>(A)</enum><text>an expected price that is the expected price established under existing Group Risk Income Protection or area wide policy offered by the Corporation for the applicable county (or area) and crop year; and</text> </subparagraph><subparagraph id="ideedf4220c09a4d48982b235a4805a205"><enum>(B)</enum><text>an expected county yield that is the higher of—</text> <clause id="idc1d7a3d2b07a45d4ba1084bb46140e94"><enum>(i)</enum><text>the expected county yield established for the existing area-wide plans offered by the Corporation for the applicable county (or area) and crop year (or, in geographic areas where area-wide plans are not offered, an expected yield determined in a manner consistent with those of area-wide plans); or</text> </clause><clause id="id30185fe891d54a95886145cb3296abe6"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id9FDD08F4954D45129546317ED2102B24"><enum>(I)</enum><text>the average of the applicable yield data for the county (or area) for the most recent 5 years, excluding the highest and lowest observations, from the Risk Management Agency or the National Agricultural Statistics, or both; or</text> </subclause><subclause id="id8F5E03A0A43B40AEAC76ED69A8D7AB3D" indent="up1"><enum>(II)</enum><text>if sufficient county data is not available, such other data considered appropriate by the Secretary.</text> </subclause></clause></subparagraph></paragraph><paragraph id="id7c3ed559c0c743a08b91547857032fa2"><enum>(5)</enum><text>Use a multiplier factor to establish maximum protection per acre (referred to as a <quote>protection factor</quote>) of not more than 120 percent.</text> </paragraph><paragraph id="id799302318a744d8c8dce039876bcb93e"><enum>(6)</enum><text>Pay an indemnity based on the amount that the expected county revenue exceeds the actual county revenue, as applied to the individual coverage of the producer. Indemnities under the Stacked Income Protection Plan shall not include or overlap the amount of the deductible selected under paragraph (1).</text> </paragraph><paragraph id="id2e37017caf3440388d74b7c27a9c7977"><enum>(7)</enum><text>To the maximum extent practicable, in all counties for which data are available, establish separate coverage for irrigated and nonirrigated practices.</text> </paragraph><paragraph id="id3d3f52aa5fea405dba489c27c14e1d9a"><enum>(8)</enum><text>Notwithstanding section 508(d), include a premium that—</text> <subparagraph id="id11c6a99d6dfa4286a6e40eaef49748a7"><enum>(A)</enum><text>is sufficient to cover anticipated losses and a reasonable reserve; and</text> </subparagraph><subparagraph id="iddfc9d90d950f4758b4d15bacdddd7306"><enum>(B)</enum><text>includes an amount for operating and administrative expenses established in accordance with section 508(k)(4)(F).</text> </subparagraph></paragraph></subsection><subsection id="id874c7a148a3448c9859ce6d7fbb1e9f3"><enum>(c)</enum><header>Relation to other coverages</header> <paragraph id="id665E81E392B24816B8C78ED89BECA627"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the Stacked Income Protection Plan is in addition to all other coverages available to producers of upland cotton.</text> </paragraph><paragraph id="idA564CB27C24C41BCBE28A8FBE1A60BE4"><enum>(2)</enum><header>Limitation</header><text>Acreage of upland cotton insured under the Supplemental Coverage Option shall not be eligible for the Stacked Income Protection Plan.</text> </paragraph></subsection><subsection id="id5871f9a42b4f447487d941c990d826a0"><enum>(d)</enum><header>Payment of portion of premium by Corporation</header><text>Subject to section 508(e)(4), the amount of premium paid by the Corporation for all qualifying coverage levels of the Stacked Income Protection Plan shall be—</text> <paragraph id="idedfbfdbd8d6848e499643a24e00d3706"><enum>(1)</enum><text>80 percent of the amount of the premium established under subsection (b)(8)(A) for the coverage level selected; and</text> </paragraph><paragraph id="id181ed2beea594a529c73c10f68886374"><enum>(2)</enum><text>the amount determined under subsection (b)(8)(B) to cover administrative and operating expenses.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="id5C5852221A824CC0A874F5E5B1017ED2"><enum>(b)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">Section 508(k)(4)(F) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(F)) (as amended by section 11001(d)) is amended by inserting <quote>or under section 508B</quote> after <quote>subsection (c)(4)(C)</quote>.</text> </subsection></section><section id="ida00d84b61dd343c3823e4a38ca88f666"><enum>11012.</enum><header>Peanut revenue crop insurance</header><text display-inline="no-display-inline">The Federal Crop Insurance Act is amended by inserting after section 508B (as added by section 11011(a)) the following:</text> <quoted-block display-inline="no-display-inline" id="idca35f559c05243928c264d083d10320b" style="OLC"> <section id="id8d949ce0f10e49c7ab087303555c49da"><enum>508C.</enum><header>Peanut revenue crop insurance</header> <subsection id="id8d2377374c504aa486bfcd9a133713fa"><enum>(a)</enum><header>In general</header><text>Effective beginning with the 2013 crop year, the Risk Management Agency and the Corporation shall make available to producers of peanuts a revenue crop insurance program for peanuts.</text> </subsection><subsection id="idbad2f400bdb64c0fb90349e69c4ea808"><enum>(b)</enum><header>Effective price</header> <paragraph id="id450f1465390c490b8573b2c472fe1765"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), for purposes of the policies and plans of insurance offered under subsections (a) and (b) of section 508, the effective price for peanuts shall be equal to the Rotterdam price index for peanuts, as adjusted to reflect the farmer stock price of peanuts in the United States.</text> </paragraph><paragraph id="id4ef8757a637349798f8a2a94645c67e0"><enum>(2)</enum><header>Adjustments</header> <subparagraph id="id89d80145c2a04b729f95198f64361b9c"><enum>(A)</enum><header>In general</header><text>The effective price for peanuts established under paragraph (1) may be adjusted by the Risk Management Agency and the Corporation to correct distortions.</text> </subparagraph><subparagraph id="ida75628d072ae44d1aa024d6f811ea2a5"><enum>(B)</enum><header>Administration</header><text>If an adjustment is made under subparagraph (A), the Risk Management Agency and the Corporation shall—</text> <clause id="idcaea2561c2a2400b8da4efb686fc2049"><enum>(i)</enum><text>make the adjustment in an open and transparent manner; and</text> </clause><clause id="id518b9e13c4a64eb78f0ffca9e91f4f21"><enum>(ii)</enum><text>submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the reasons for the adjustment.</text> </clause></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id3cccccd0669b4adc94b7a73123335a41"><enum>11013.</enum><header>Authority to correct errors</header><text display-inline="no-display-inline">Section 515(c) of the Federal Crop Insurance Act (7 U.S.C. 1515(c)) is amended—</text> <paragraph id="id26ade7c6554f425fb84422a9ca7a75a0"><enum>(1)</enum><text>in the first sentence, by striking <quote>The Secretary</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id51e07d3a0f924df3849860b61be8b437" style="OLC"> <paragraph id="id55226ee9147a410c9cd91e087ee8688d"><enum>(1)</enum><header>In general</header><text>The Secretary</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="id944b041d9a0b4e62acb3b5c57b112c3f"><enum>(2)</enum><text>in the second sentence, by striking <quote>Beginning with</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="ida378d5dbde2845119b7eed7014a61457" style="OLC"> <paragraph id="id20e9d72660834962be1adab18bd4b218"><enum>(2)</enum><header>Frequency</header><text>Beginning with</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="id0d24f60bd0f54a75b68e39411d483c45"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idc46e3a9683994a7b94a996828eba3efc" style="OLC"> <paragraph id="id0866208232434b57b5be336f1dcdf81e"><enum>(3)</enum><header>Corrections</header> <subparagraph id="id200d10f73bed416eafb66592271705c5"><enum>(A)</enum><header>In general</header><text>The Corporation shall establish procedures that allow an agent and approved insurance provider within a reasonable amount of time following the applicable sales closing date to correct information regarding the entity name, social security number, tax identification number, or such other eligibility information as determined by the Corporation that is provided by a producer for the purpose of obtaining coverage under any policy or plan of insurance made available under this subtitle to ensure that the eligibility information is consistent with the information reported by the producer to the Farm Service Agency.</text> </subparagraph><subparagraph id="idfac9d731b4dd4f42a29c1bb6f1346e36"><enum>(B)</enum><header>Limitation</header><text>In accordance with the procedures of the Corporation, procedures under subparagraph (A) may include any subsequent correction to the eligibility information described in that subparagraph made by the Farm Service Agency if the corrections do not allow the producer—</text> <clause id="id45d3cea67d7f49b2af2b994c7a52805b"><enum>(i)</enum><text>to obtain a disproportionate benefit under the crop insurance program or any related program of the Department of Agriculture;</text> </clause><clause id="ide79deb05b27442309926c7275ae63028"><enum>(ii)</enum><text>to avoid ineligibility requirements for insurance; or</text> </clause><clause id="idf86f6dcf43694dce8222df0ccbfdd748"><enum>(iii)</enum><text>to avoid an obligation or requirement under any Federal or State law.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="ida11da023cfe545688eaea3c8ec687462"><enum>11014.</enum><header>Implementation</header><text display-inline="no-display-inline">Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1515) is amended—</text> <paragraph id="id6d102a3061e84c0ca57b89ea167dc46d"><enum>(1)</enum><text>in subsection (j), by striking paragraph (1) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idfa74903e5eec48b6b0011ee7c5274128" style="OLC"> <paragraph id="id1ad4a74ee0a9452aaf129326bd797de4"><enum>(1)</enum><header>Systems maintenance and upgrades</header> <subparagraph id="id405cdd6e6f0f44b0a67880f6b233d790"><enum>(A)</enum><header>In general</header><text>The Secretary shall maintain and upgrade the information management systems of the Corporation used in the administration and enforcement of this subtitle.</text> </subparagraph><subparagraph id="id22ca5fb1bedc40eab3f5d67e3715af6f"><enum>(B)</enum><header>Requirement</header> <clause id="idff6666f5cbf04e51baeb35672b4d8b71"><enum>(i)</enum><header>In general</header><text>In maintaining and upgrading the systems, the Secretary shall ensure that new hardware and software are compatible with the hardware and software used by other agencies of the Department to maximize data sharing and promote the purposes of this section.</text> </clause><clause id="id6a7e79ac87074f3896af1ee8bf4a1c50"><enum>(ii)</enum><header>Acreage report streamlining initiative project</header><text>As soon as practicable, the Secretary shall develop and implement an acreage report streamlining initiative project to allow producers to report acreage and other information directly to the Department.</text> </clause></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="idb4c6e2561b1a4351a022565cd5b0f055"><enum>(2)</enum><text>in subsection (k), by striking paragraph (1) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idc491a64b8697419494b377bf7aa34b31" style="OLC"> <paragraph id="ide75ba09baf8e4c509bd3b3a9cc010fd1"><enum>(1)</enum><header>Information technology</header> <subparagraph id="id785ce826e3d44b57ba8c5f253a12798e"><enum>(A)</enum><header>In general</header><text>For purposes of subsection (j)(1), the Corporation may use, from amounts made available from the insurance fund established under section 516(c), not more than—</text> <clause id="ide6adea796d3d4215bcc11359f4b92b2a"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="idF22AD88B4DB647FFA5C3F68C8B77F08D"><enum>(I)</enum><text>for fiscal year 2013, $25,000,000; and</text> </subclause><subclause id="id9508F39E7B8943669BF039028E76E241" indent="up1"><enum>(II)</enum><text>for each of fiscal years 2014 through 2017, $10,000,000; or</text> </subclause></clause><clause id="id0c9921ce5fb34ca9ac53880b36b6d979"><enum>(ii)</enum><text>if the Acreage Crop Reporting Streamlining Initiative (ACRSI) project is substantially completed by September 30, 2013, not more than $15,000,000 for each of fiscal years 2014 through 2017.</text> </clause></subparagraph><subparagraph id="id60b20d267dac4fa692f5e91c78623c74"><enum>(B)</enum><header>Notification</header><text>Not later than July 1, 2013, the Secretary shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the status of the substantial completion of the Acreage Crop Reporting Streamlining Initiative (ACRSI) project.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="id62ce5be505e443fe978877a15956913f"><enum>11015.</enum><header>Approval of costs for research and development</header><text display-inline="no-display-inline">Section 522(b)(2) of the Federal Crop Insurance Act (7 U.S.C. 1522(b)(2)) is amended by striking subparagraph (E) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idf0afaa33aaf14a8db663fdadba4614d1" style="OLC"> <subparagraph id="id0a4f789f41ae4eab941782436fb5298c"><enum>(E)</enum><header>Approval</header> <clause id="id2159e5e55e0c49d09aa8ed427a5994ca"><enum>(i)</enum><header>In general</header><text>The Board may approve up to 50 percent of the projected total research and development costs to be paid in advance to an applicant, in accordance with the procedures developed by the Board for the making of the payments, if, after consideration of the reviewer reports described in subparagraph (D) and such other information as the Board determines appropriate, the Board determines that—</text> <subclause id="id79ce44ff078b4f91991d95922fdd4895"><enum>(I)</enum><text>the concept, in good faith, will likely result in a viable and marketable policy consistent with section 508(h);</text> </subclause><subclause id="id01f5cf086a634eba944ce3444b47ee48"><enum>(II)</enum><text>at the sole discretion of the Board, the concept, if developed into a policy and approved by the Board, would provide crop insurance coverage—</text> <item id="id2512f886a7594f638c0807ff8c9f2cf1"><enum>(aa)</enum><text>in a significantly improved form or that addresses a unique need of agricultural producers;</text> </item><item id="id5951220823fb400faae8524cffe4d069"><enum>(bb)</enum><text>to a crop or region not traditionally served by the Federal crop insurance program; or</text> </item><item id="id0d01ed7fa54541c084827cb244a93e6d"><enum>(cc)</enum><text>in a form that addresses a recognized flaw or problem in the program;</text> </item></subclause><subclause id="idd552e50bd68c42e08758c475d909a334"><enum>(III)</enum><text>the applicant agrees to provide such reports as the Corporation determines are necessary to monitor the development effort;</text> </subclause><subclause id="id6202d8fd554b4e1197fd5c8263be0505"><enum>(IV)</enum><text>the proposed budget and timetable are reasonable, as determined by the Board; and</text> </subclause><subclause id="id4b130bb5f65e4841874541e410c77e01"><enum>(V)</enum><text>the concept proposal meets any other requirements that the Board determines appropriate.</text> </subclause></clause><clause id="id1acbc256b1344b6f93aaac640df39ebc"><enum>(ii)</enum><header>Waiver</header><text>The Board may waive the 50-percent limitation and, upon request of the submitter after the submitter has begun research and development activities, the Board may approve an additional 25 percent advance payment to the submitter for research and development costs, if, at the sole discretion of the Board, the Board determines that—</text> <subclause id="id44fb93f023b04477b55849a82e94b679"><enum>(I)</enum><text>the intended policy or plan of insurance developed by the submitter will provide coverage for a region or crop that is underserved by the Federal crop insurance program, including specialty crops;</text> </subclause><subclause id="id20D980FE91F84721A0F170BDEAC47864"><enum>(II)</enum><text>the submitter is making satisfactory progress towards developing a viable and marketable policy or plan of insurance consistent with section 508(h); and</text> </subclause><subclause id="id317447ae80e54ae8abec0162060e3056"><enum>(III)</enum><text>the submitter does not have sufficient financial resources to complete the development of the submission into a viable and marketable policy or plan of insurance consistent with section 508(h).</text> </subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id53e01e4b90d24b75a1e0c9fa038754e6"><enum>11016.</enum><header>Whole farm risk management insurance</header><text display-inline="no-display-inline">Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id939d736ecdfa4eb4bd1091e5b541088a" style="OLC"> <paragraph id="id7dd56a9e46c043f7a048a48d89dedf92"><enum>(18)</enum><header>Whole farm diversified risk management insurance plan</header> <subparagraph id="id8b9ab2147c1e4cce8691bad00433de62"><enum>(A)</enum><header>In general</header><text>The Corporation shall conduct activities or enter into contracts to carry out research and development to develop a whole farm risk management insurance plan, with a liability limitation of $1,500,000, that allows a diversified crop or livestock producer the option to qualify for an indemnity if actual gross farm revenue is below 85 percent of the average gross farm revenue or the expected gross farm revenue that can reasonably be expected of the producer, as determined by the Corporation.</text> </subparagraph><subparagraph id="ide348d22903744598ab55204020cd1d87"><enum>(B)</enum><header>Eligible producers</header><text>The Corporation shall permit producers (including direct-to-consumer marketers, and producers servicing local and regional and farm identity-preserved markets) who produce multiple agricultural commodities, including specialty crops, industrial crops, livestock, and aquaculture products, to participate in the plan in lieu of any other plan under this subtitle.</text> </subparagraph><subparagraph id="id2f372a461f9940f3a381c9244f612115"><enum>(C)</enum><header>Diversification</header><text>The Corporation may provide diversification-based additional coverage payment rates, premium discounts, or other enhanced benefits in recognition of the risk management benefits of crop and livestock diversification strategies for producers that grow multiple crops or that may have income from the production of livestock that uses a crop grown on the farm.</text> </subparagraph><subparagraph id="id1d0f86908e314c128890269d854b20dd"><enum>(D)</enum><header>Market readiness</header><text>The Corporation may include coverage for the value of any packing, packaging, or any other similar on-farm activity the Corporation determines to be the minimum required in order to remove the commodity from the field.</text> </subparagraph><subparagraph id="idc10862e54ffb458889c703cc8fdd218f"><enum>(E)</enum><header>Report</header><text>Not later than 2 years after the date of enactment of this paragraph, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results and feasibility of the research and development conducted under this paragraph, including an analysis of potential adverse market distortions.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id840e0864b20a4e3badbf4a145d97beca"><enum>11017.</enum><header>Study of food safety insurance</header><text display-inline="no-display-inline">Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) (as amended by section 11016) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id3EC9CE2E55284C249EE42CF00ADF793B" style="OLC"> <paragraph id="id04ede65a3a5c4b4083b09cd4ee66800d"><enum>(19)</enum><header>Study of food safety insurance</header> <subparagraph id="id214f7fa51d7e421baec72ac6182236e8"><enum>(A)</enum><header>In general</header><text>The Corporation shall offer to enter into a contract with 1 or more qualified entities to conduct a study to determine whether offering policies that provide coverage for specialty crops from food safety and contamination issues would benefit agricultural producers.</text> </subparagraph><subparagraph id="id5ad621f944464c4ea90ca26c4df69e05"><enum>(B)</enum><header>Subject</header><text>The study described in subparagraph (A) shall evaluate policies and plans of insurance coverage that provide protection for production or revenue impacted by food safety concerns including, at a minimum, government, retail, or national consumer group announcements of a health advisory, removal, or recall related to a contamination concern.</text> </subparagraph><subparagraph id="idca052480d4c6466d945143faf4d6e26c"><enum>(C)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of this paragraph, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study conducted under subparagraph (A).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id3CBD980774094C14B5A09A4FED86E577"><enum>11018.</enum><header>Crop insurance for livestock</header><text display-inline="no-display-inline">Section 522(c) of the Federal Crop Insurance Act (as amended by section 11016) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id6A6578CF6DA84A42B17FE1D550968716" style="OLC"> <paragraph id="id814DCF4049CC40D992EBB9FA8A2EB000"><enum>(19)</enum><header>Study on swine catastrophic disease program</header> <subparagraph id="id810aed3520894489814cd6c6236501e3"><enum>(A)</enum><header>In general</header><text>The Corporation shall contract with a qualified person to conduct a study to determine the feasibility of insuring swine producers for a catastrophic event.</text> </subparagraph><subparagraph id="idd1162d9bd16e46e7a3e39ab2ff5b5f31"><enum>(B)</enum><header>Report</header><text>Not later than 1 year after the date of the enactment of this paragraph, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study conducted under subparagraph (A).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id4C1ABD8C46524D4CB6713DC5ED791CB6"><enum>11019.</enum><header>Margin coverage for catfish</header><text display-inline="no-display-inline">Section 522(c) of the Federal Crop Insurance Act (as amended by section 11017) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id558b72cd05bf416c9704aa4a40c10166" style="OLC"> <paragraph id="idf1f6a285b1324b1e874a9392ad100053"><enum>(20)</enum><header>Margin coverage for catfish</header> <subparagraph id="id2d1f9cc42c454edabe075e9f3ef44f48"><enum>(A)</enum><header>In general</header><text>The Corporation shall offer to enter into a contract with a qualified entity to conduct research and development regarding a policy to insure producers against reduction in the margin between the market value of catfish and selected costs incurred in the production of catfish.</text> </subparagraph><subparagraph id="idccd23d622aca465cb3cc8dc59c9f669b"><enum>(B)</enum><header>Eligibility</header><text>Eligibility for the policy described in subparagraph (A) shall be limited to freshwater species of catfish that are propagated and reared in controlled or selected environments.</text> </subparagraph><subparagraph id="id89fdc7ad72a14397aba1535298f905b4"><enum>(C)</enum><header>Implementation</header><text>The Board shall review the policy described in subparagraph (B) under subsection 508(h) and approve the policy if the Board finds that the policy—</text> <clause id="idf48ad5960ba24f22b376aa50e2ae4f65"><enum>(i)</enum><text>will likely result in a viable and marketable policy consistent with this subsection;</text> </clause><clause id="id176f8847cc43440ebc65701fca3e572c"><enum>(ii)</enum><text>would provide crop insurance coverage in a significantly improved form;</text> </clause><clause id="id0c89c7d8e8a8402d9881609beac67605"><enum>(iii)</enum><text>adequately protects the interests of producers; and</text> </clause><clause id="idf3a71d769f5b49588eff65fe7d753d00"><enum>(iv)</enum><text>the proposed policy meets other requirements of this subtitle determined appropriate by the Board.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id69f5b5f779df4bddb576ad73ad9f455e"><enum>11020.</enum><header>Poultry business disruption insurance policy</header><text display-inline="no-display-inline">Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) (as amended by sections 11016, 11017, and 11018) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id216E0520D5104FA7979CF77A3645A2FF" style="OLC"> <paragraph id="ida1450a52b67742e0a50f4a9277692722"><enum>(21)</enum><header>Poultry business disruption insurance policy and catastrophic disease program</header> <subparagraph id="idc8ae5aa03eec46669007fee75ef73023"><enum>(A)</enum><header>Definition of poultry</header><text>In this paragraph, the term <term>poultry</term> has the meaning given the term in section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 182(a)).</text> </subparagraph><subparagraph id="id0e3f7f00161d474d97ebb0fb73129ab3"><enum>(B)</enum><header>Authority</header><text>The Corporation shall offer to enter into 1 or more contracts with qualified entities to carry out—</text> <clause id="id3330BC82B9DE4B7CBAD7E482165571C4"><enum>(i)</enum><text>a study to determine the feasibility of insuring commercial poultry production against business disruptions caused by integrator bankruptcy; and</text> </clause><clause id="idF5A7C8443C5247A596A74214F7EFF404"><enum>(ii)</enum><text>a study to determine the feasibility of insuring poultry producers for a catastrophic event.</text> </clause></subparagraph><subparagraph id="id8b5ad0dc91e64723ba703cf312126a59"><enum>(C)</enum><header>Business disruption study</header><text>The study described in subparagraph (B)(i) shall—</text> <clause id="idB3375729AFEA4EAD923B7BB9E6C3A107"><enum>(i)</enum><text>evaluate the market place for business disruption insurance that is available to poultry producers;</text> </clause><clause id="id8ED124190AC74C9AA48AE8269A6184D3"><enum>(ii)</enum><text>assess the feasibility of a policy to allow producers to ensure against a portion of losses from loss under contract due to business disruption from integrator bankruptcy; and</text> </clause><clause id="id1E2AFF3E776D43BA8F839EE501208431"><enum>(iii)</enum><text>analyze the costs to the Federal government of a Federal business disruption insurance program for poultry producers.</text> </clause></subparagraph><subparagraph id="id7EC979C90E114CD88ABA72B56A7E7E02"><enum>(D)</enum><header>Reports</header><text>Not later than 1 year after the date of enactment of this paragraph, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of—</text> <clause id="idC8CCFF4D491F4BF8974BB716F0469C84"><enum>(i)</enum><text>the study carried out under subparagraph (B)(i); and</text> </clause><clause id="idC212240E767D4BD4B86C8C3B7FD7C008"><enum>(ii)</enum><text>the study carried out under subparagraph (B)(ii).</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id737D6EE289224315B4A50A52D5E90580"><enum>11021.</enum><header>Crop insurance for organic crops</header> <subsection id="id2D2F45CC878B4683B1FAF36E2260AD94"><enum>(a)</enum><header>In general</header><text>Section 508(c)(6) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(6)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id6F52E15074D4464C8A5B0F9366F72628" style="OLC"> <subparagraph id="idb2849ddf765d4dbfaa99aaf5d8170fea"><enum>(D)</enum><header>Organic crops</header> <clause id="id37aa57b566b2415dbc656f303e6dcca1"><enum>(i)</enum><header>In general</header><text>As soon as possible, but not later than the 2015 reinsurance year, the Corporation shall offer producers of organic crops price elections for all organic crops produced in compliance with standards issued by the Department of Agriculture under the national organic program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) that reflect the actual retail or wholesale prices, as appropriate, received by producers for organic crops, as determined by the Secretary using all relevant sources of information.</text> </clause><clause id="id9e97ce573ed74e028950717390e86b29"><enum>(ii)</enum><header>Annual report</header><text>The Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report on progress made in developing and improving Federal crop insurance for organic crops, including—</text> <subclause id="id74dbddff809440689b6ead874b33d913"><enum>(I)</enum><text>the numbers and varieties of organic crops insured;</text> </subclause><subclause id="id10cb39edf1074f8ea644dfeee0208c53"><enum>(II)</enum><text>the progress of implementing the price elections required under this subparagraph, including the rate at which additional price elections are adopted for organic crops;</text> </subclause><subclause id="id39b65831595e4f639df71e689d7bbf9d"><enum>(III)</enum><text>the development of new insurance approaches relevant to organic producers; and</text> </subclause><subclause id="id44d516903026437dba481eee063ae018"><enum>(IV)</enum><text>any recommendations the Corporation considers appropriate to improve Federal crop insurance coverage for organic crops.</text> </subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id5117A288084A4B8FA0FF925EDC3AEE28"><enum>(b)</enum><header>Conforming amendment</header><text>Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) (as amended by section 11018) is amended—</text> <paragraph id="id3967F0CA3E534B388841F82D559BB3D6"><enum>(1)</enum><text>by striking paragraph (10); and</text> </paragraph><paragraph id="idFE905F54C6F0487284A325367633D863"><enum>(2)</enum><text>by redesignating paragraphs (11) through (20) as paragraphs (10) through (19), respectively.</text> </paragraph></subsection></section><section id="ida760e9c0f6184eb28f9fa4664c4a666e"><enum>11022.</enum><header>Research and development</header> <subsection id="idBE08E3409C23472088067D4DDDE025CF"><enum>(a)</enum><header>In general</header><text>Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) is amended—</text> <paragraph id="id55eb434b661e4bf28a13ea3dd76b8500"><enum>(1)</enum><text>in the subsection heading, by striking <quote>Contracting</quote>;</text> </paragraph><paragraph id="id7135a20b7c9f49d989e2f2f0e7a33458"><enum>(2)</enum><text>in paragraph (1), in the matter preceding subparagraph (A), by striking <quote>may enter into contracts to carry out research and development to</quote> and inserting <quote>may conduct activities or enter into contracts to carry out research and development to maintain or improve existing policies or develop new policies to</quote>;</text> </paragraph><paragraph id="id693437cd61dc4980b4d9ae0676987f99"><enum>(3)</enum><text>in paragraph (2)—</text> <subparagraph id="id509303e2a1864a5893d6254fc3da7c1b"><enum>(A)</enum><text>in subparagraph (A), by inserting <quote>conduct research and development or</quote> after <quote>The Corporation may</quote>; and</text> </subparagraph><subparagraph id="idb8f4233bf0794c5ba2ca6fcb689e80c5"><enum>(B)</enum><text>by striking subparagraph (B) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id432B95082FAA404992BBBD657774C78D" style="OLC"> <subparagraph id="id512f1d1a59464776b4d1d2e52a62395c"><enum>(B)</enum><header>Consultation</header><text>Before conducting research and development or entering into a contract under subparagraph (A), the Corporation shall follow the consultation requirements described in section 508(h)(4)(E).</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="iddbea2d31ae654bd5b7bc699469af3641"><enum>(4)</enum><text>in paragraph (5), by inserting <quote>after expert review in accordance with section 505(e) and procedures of the Board</quote> after <quote>approved by the Board</quote>; and</text> </paragraph><paragraph id="idc408323fc59a4d6d81c2d50219890ef8"><enum>(5)</enum><text>in paragraph (6), by striking <quote>a pasture, range, and forage program</quote> and inserting <quote>policies that increase participation by producers of underserved agricultural commodities, including sweet sorghum, sorghum for biomass, specialty crops, sugarcane, and dedicated energy crops</quote>.</text> </paragraph></subsection><subsection id="id4adf1eb9c7c240d8a8496468c28b9045"><enum>(b)</enum><header>Funding</header><text>Section 522(e) of the Federal Crop Insurance Act (7 U.S.C. 1522(e)) is amended—</text> <paragraph id="idfe943749f33e4741868c09e8fc41b08f"><enum>(1)</enum><text>in paragraph (2)—</text> <subparagraph id="id7979f7197581419cbb996f9666a26f38"><enum>(A)</enum><text>by striking <quote>(A) <header-in-text level="subparagraph" style="OLC">Authority</header-in-text>.—</quote> and inserting <quote>(A) <header-in-text level="subparagraph" style="OLC">Conducting and contracting for research and development</header-in-text>.—</quote>;</text> </subparagraph><subparagraph id="id5b1c454e56e445639d829601850422f9"><enum>(B)</enum><text>in subparagraph (A), by inserting <quote>conduct research and development and</quote> after <quote>the Corporation may use to</quote>; and</text> </subparagraph><subparagraph id="ideeb05c4c50924f6081b385c10293c016"><enum>(C)</enum><text>in subparagraph (B), by inserting <quote>conduct research and development and</quote> after <quote>for the fiscal year to</quote>;</text> </subparagraph></paragraph><paragraph id="id15ed5238b9764c5ba5f92567b044ca25"><enum>(2)</enum><text>in paragraph (3), in the matter preceding subparagraph (A), by striking <quote>to provide either reimbursement payments or contract payments</quote>; and</text> </paragraph><paragraph id="idbbb9c4ae4eab4ec6adedb62237754f40"><enum>(3)</enum><text>by striking paragraph (4).</text> </paragraph></subsection></section><section id="idefaa9e81988a41c086e4003b57d90051"><enum>11023.</enum><header>Pilot programs</header><text display-inline="no-display-inline">Section 523(a) of the Federal Crop Insurance Act (7 U.S.C. 1523(a)) is amended—</text> <paragraph id="id1c0879d17c2d4af992d24b1228c36929"><enum>(1)</enum><text>in paragraph (1), by inserting <quote>, at the sole discretion of the Corporation,</quote> after <quote>may</quote>; and</text> </paragraph><paragraph id="idef51913b6d1f4a4286f52193f30d0595"><enum>(2)</enum><text>by striking paragraph (5).</text> </paragraph></section><section id="id57380AE307894283BFB66CE26C42F396"><enum>11024.</enum><header>Index-based weather insurance pilot program</header><text display-inline="no-display-inline">Section 523(a)(2) of the Federal Crop Insurance Act (7 U.S.C. 1523(a)(2)) is amended—</text> <paragraph id="idDE7700E9C2F647D589094DFF4BFADFAD"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Under</quote> inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idE44D4E6E53B84AD9A633E32C85B3E1B7" style="OLC"> <subparagraph id="id3CE84B1EBF4D4C0A9A35B9BA53DE4E37"><enum>(A)</enum><header>In general</header><text>Under</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="idD0335B852DEB4DB5881009146C509776"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id24ad82a1d9574462a8c635b7b5a4e1a1" style="OLC"> <subparagraph id="id1670424b382347878a55606dd4e01c46"><enum>(B)</enum><header>Index-based weather insurance pilot program</header> <clause id="id6ECDE9555DFD42169F3EAE1BDEA3CCB4"><enum>(i)</enum><header>In general</header><text>Notwithstanding subparagraph (A), the Corporation, at the sole discretion of the Corporation, may conduct a pilot program to provide financial assistance for producers of underserved crops and livestock (including specialty crops) to purchase an index-based weather insurance product from a private insurance company, subject to the requirements of this subparagraph.</text> </clause><clause id="id67bbdf5e70214432b6c97fa6fd297afd"><enum>(ii)</enum><header>Payment of premium</header> <subclause id="id5B2DE33078714466B1F77AA2B5ED1913"><enum>(I)</enum><header>In general</header><text>Subject to subclause (II) and clause (v), the Corporation may pay a portion of the premium for producers who purchase index-based weather insurance protection from a private insurance company for a crop and policy that is not reinsured under this subtitle, as determined by the Corporation.</text> </subclause><subclause id="id574FF52FD9F94298A4C2FAF3C2B821E2"><enum>(II)</enum><header>Condition</header><text>The premium assistance under subclause (I) shall not exceed 60 percent of the estimated premium amount, based on expected losses, representative operating expenses, and representative profit margins, as determined by the Corporation.</text> </subclause></clause><clause id="id56ecba3c3f3e4e55a66f3ef36ce84284"><enum>(iii)</enum><header>Eligible providers</header><text>Before providing premium assistance to producers to purchase index-based weather insurance from a private insurance company pursuant to this subparagraph, the Corporation shall verify that the company has adequate experience—</text> <subclause id="id56E14FCF98D342EF9E959FA7CF916634"><enum>(I)</enum><text>to develop and manage the index-based weather insurance products, including adequate resources, experience, and assets or sufficient reinsurance to meet the obligations of the company under this subparagraph; and</text> </subclause><subclause id="id6F66A13E82D94817A72E573A32F1B85B"><enum>(II)</enum><text>to support and deliver the index-based weather insurance products.</text> </subclause></clause><clause id="id89cd1f0480b445378a10e1990cae6093"><enum>(iv)</enum><header>Procedures</header><text>The Corporation shall develop and publish procedures to administer the pilot program under this subparagraph that—</text> <subclause id="id7c62ff560bd2410daaaabfc4f1ad76d9"><enum>(I)</enum><text>require each applicable private insurance company to report claim and sales data, and any other data the Corporation determines to be appropriate, to allow the Corporation to evaluate product pricing and performance;</text> </subclause><subclause id="id4df8279d605348049ddb03b6dac32790"><enum>(II)</enum><text>allow the private insurance companies exclusive rights over the private insurance offered under this subparagraph, including rating of policies, protection of intellectual property rights on the product or policy, and associated rating methodology, for the period during which the companies are eligible under clause (iii); and</text> </subclause><subclause id="idb2f8cafffefd4680856dc2f4d41ab388"><enum>(III)</enum><text>contain such other requirements as the Corporation determines to be necessary to ensure that—</text> <item id="idCD143EA9473A405B9D76963F229659A6"><enum>(aa)</enum><text>the interests of producers are protected; and</text> </item><item id="id9AA857E84B22438E88943C933DB91B62"><enum>(bb)</enum><text>the program operates in an actuarially sound manner.</text> </item></subclause></clause><clause id="idE8B66FB984954BA2A9EB14A3443B1E3F"><enum>(v)</enum><header>Funding</header><text>Of the funds of the Corporation, the Corporation shall use to carry out this subparagraph $10,000,000 for each of fiscal years 2013 through 2017, to remain available until expended.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="id60C3FAC261C2437FB7BC66B436BC58A0"><enum>11025.</enum><header>Enhancing producer self-help through farm financial benchmarking</header> <subsection id="id24D48BF24BDB4540A0F90E15976380E7"><enum>(a)</enum><header>Definition</header><text>Section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)) is amended—</text> <paragraph id="idcfb411550b9a4ade82a0608070e13416"><enum>(1)</enum><text>by redesignating paragraphs (6) through (9) as paragraphs (7) through (10), respectively; and</text> </paragraph><paragraph id="id1979af220c6c43cd8086cc4bfec95156"><enum>(2)</enum><text>by inserting after paragraph (5) the following:</text> <quoted-block display-inline="no-display-inline" id="id1A11A5B3316941C29E9F8733F283627B" style="OLC"> <paragraph id="id2d13476b0b76473791922ff57571db4a"><enum>(6)</enum><header>Farm financial benchmarking</header><text>The term <term>farm financial benchmarking</term> means—</text> <subparagraph id="idf8745355a8f046cc80ca66328878ab58"><enum>(A)</enum><text>the process of comparing the performance of an agricultural enterprise against the performance of other similar enterprises, through the use of comparable and reliable data, in order to identify business management strengths, weaknesses, and steps necessary to improve management performance and business profitability; and</text> </subparagraph><subparagraph id="id7a2f239754ce4978845a9c4794846c35"><enum>(B)</enum><text>benchmarking of the type conducted by farm management and producer associations consistent with the activities described in or funded pursuant to section 1672D of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925f).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="iddb50358dbcf94c118b1f7abc6f5ddaea"><enum>(b)</enum><header>Partnerships for risk management for producers of specialty crops and underserved agricultural commodities</header><text>Section 522(d)(3)(F) of the Federal Crop Insurance Act (7 U.S.C. 1522(d)(3)(F)) is amended by inserting <quote>farm financial benchmarking,</quote> after <quote>management,</quote>.</text> </subsection><subsection id="idfe6a6602207d4fa3968177136789c006"><enum>(c)</enum><header>Crop insurance education and risk management assistance</header><text>Section 524(a) of the Federal Crop Insurance Act (7 U.S.C. 1524(a)) is amended—</text> <paragraph id="id1a22226591bd4c04a87748cf730c8974"><enum>(1)</enum><text>in paragraph (3)(A), by inserting <quote>farm financial benchmarking,</quote> after <quote>risk reduction,</quote>; and</text> </paragraph><paragraph id="id6796daa8dab641b8ac584a74848a3e54"><enum>(2)</enum><text>in paragraph (4), in the matter preceding subparagraph (A), by inserting <quote>(including farm financial benchmarking)</quote> after <quote>management strategies</quote>.</text> </paragraph></subsection></section><section id="idA66F4186345A4B25B01CDE9CFC86559A"><enum>11026.</enum><header>Beginning farmer and rancher provisions</header> <subsection id="id5A02A7F653074D9BA219EA77A0A823D8"><enum>(a)</enum><header>Definition</header><text>Section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)) (as amended by section 11022(a)) is amended—</text> <paragraph id="idEF7EA9B35CC341279572F042385C90DB"><enum>(1)</enum><text>by redesignating paragraphs (3) through (10) as paragraphs (4) through (11), respectively; and</text> </paragraph><paragraph id="id0CF26365015D4AAC9B533A33DC9A9B70"><enum>(2)</enum><text>by inserting after paragraph (2) the following:</text> <quoted-block display-inline="no-display-inline" id="idcf3a9fef70c34979b9e774fd92554f44" style="OLC"> <paragraph id="ida216093b5b63423a8e6aac7b7972290b"><enum>(3)</enum><header>Beginning farmer or rancher</header><text>The term <term>beginning farmer or rancher</term> means a farmer or rancher who has not actively operated and managed a farm or ranch with a bona fide insurable interest in a crop or livestock as an owner-operator, landlord, tenant, or sharecropper for more than 5 crop years, as determined by the Secretary.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="id132662601db94fcc83ae81e5e34da211"><enum>(b)</enum><header>Premium adjustments</header><text>Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is amended—</text> <paragraph id="id64e5e64a01134e368095a94a98631c6e"><enum>(1)</enum><text>in subsection (b)(5)(E), by inserting <quote>and beginning farmers or ranchers</quote> after <quote>limited resource farmers</quote>;</text> </paragraph><paragraph id="id48e59d1ccb2042f2ba2e2a593cafe38c"><enum>(2)</enum><text>in subsection (e), by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id7ab8fbd861324a2db45d6bf1a86432fd" style="OLC"> <paragraph id="ideb0a358d65e0406dbb5d0c5f043fd765"><enum>(8)</enum><header>Premium for beginning farmers or ranchers</header><text>Notwithstanding any other provision of this subsection regarding payment of a portion of premiums, a beginning farmer or rancher shall receive premium assistance that is 10 percentage points greater than premium assistance that would otherwise be available under paragraphs (2) (except for subparagraph (A) of that paragraph), (5), (6), and (7) for the applicable policy, plan of insurance, and coverage level selected by the beginning farmer or rancher.</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="idc05894de85db484bad6d9cc766a60c81"><enum>(3)</enum><text>in subsection (g)—</text> <subparagraph id="idebd930fb61274086a96f7ba120ea7461"><enum>(A)</enum><text>in paragraph (2)(B)—</text> <clause id="ide197704b52684b2cba30286319786959"><enum>(i)</enum><text>in clause (i), by striking <quote>or</quote> at the end;</text> </clause><clause id="ida983a625a7d9469cbbbe93b499ebca2a"><enum>(ii)</enum><text>in clause (ii)(III), by striking the period at the end and inserting <quote>; or</quote>; and</text> </clause><clause id="ida958ba479f884f4ead2279bc6196f2e9"><enum>(iii)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idc00f9895c6b44eadb9333353d11647af" style="OLC"> <clause id="id98364fd169d84a36aa14ea48d21f0315"><enum>(iii)</enum><text>if the producer is a beginning farmer or rancher who was previously involved in a farming or ranching operation, including involvement in the decisionmaking or physical involvement in the production of the crop or livestock on the farm, for any acreage obtained by the beginning farmer or rancher, a yield that is the higher of—</text> <subclause id="id6723a18939df40a4919b5e57129c117e"><enum>(I)</enum><text>the actual production history of the previous producer of the crop or livestock on the acreage determined under subparagraph (A); or</text> </subclause><subclause id="id6972804cfe1b47858744aa8dbe29a909"><enum>(II)</enum><text>a yield of the producer, as determined in clause (i).</text> </subclause></clause><after-quoted-block>; and</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph id="id75323c5911d54e779cbb3a134a7db9a8"><enum>(B)</enum><text>in paragraph (4)(B)(ii) (as amended by section 11006)—</text> <clause id="id8165ad387781472c9c049afb6b1c34a1"><enum>(i)</enum><text>by inserting <quote>(I)</quote> after <quote>(ii)</quote>;</text> </clause><clause id="idf6605e4c0c05480a9ea45c0c0cdfbb3e"><enum>(ii)</enum><text>by striking the period at the end and inserting <quote>; or</quote>; and</text> </clause><clause id="id22b287fed96b4f64bdacac803d12a9b2"><enum>(iii)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id6b057670cf9740cc9f37d5fbae757ead" style="OLC"> <subitem id="id55b9a96bc1ee449ea873e3987c494d40" indent="up1"><enum>(II)</enum><text>in the case of beginning farmers or ranchers, replace each excluded yield with a yield equal to 80 percent of the applicable transitional yield.</text> </subitem><after-quoted-block>.</after-quoted-block></quoted-block> </clause></subparagraph></paragraph></subsection></section><section id="idCF3B9D2078804CA389C08253709B3FAA"><enum>11027.</enum><header>Agricultural management assistance, risk management education, and organic certification cost share assistance</header><text display-inline="no-display-inline">Section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524) is amended by striking subsection (b) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id214228CCC9FB435FBFF1BFF9AD942058" style="OLC"> <subsection id="id3f3827dab07d4ac9858092506fc3e42e"><enum>(b)</enum><header>Agricultural management assistance, risk management education, and organic certification cost share assistance</header> <paragraph id="id54057a63f30546d0a08f3caaa50b81ad"><enum>(1)</enum><header>Authority for provision of assistance</header><text>The Secretary shall provide assistance under this section as follows:</text> <subparagraph id="ida1527f0fa5474ca395c81477618b06a4"><enum>(A)</enum><text>Provision of organic certification cost share assistance pursuant to section 10606 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 6523).</text> </subparagraph><subparagraph id="id187f0d8680e8478e8048cf75a268a403"><enum>(B)</enum><text>Activities to support risk management education and community outreach partnerships pursuant to section 522(d), including—</text> <clause id="idfa1a9d86f20e4d32a25ed60bba426804"><enum>(i)</enum><text>entering into futures or hedging;</text> </clause><clause id="idF2AFF2DDC85F418DBC0329E7EF541AE7"><enum>(ii)</enum><text>entering into agricultural trade options as a hedging transaction to reduce production, price, or revenue risk; or</text> </clause><clause id="idC0302CB61498412B9DD7769CF8835EDA"><enum>(iii)</enum><text>conducting any other activity relating to an activity described in clause (i) or (ii), including farm financial benchmarking, as determined by the Secretary.</text> </clause></subparagraph><subparagraph id="ida6407c26e90a476f8627b5b3c31fe8a4"><enum>(C)</enum><text>Provision of agricultural management assistance grants to producers in States in which there has been traditionally, and continues to be, a low level of Federal crop insurance participation and availability, and producers underserved by the Federal crop insurance program, as determined by the Secretary, for the purposes of—</text> <clause id="id8995abdcf19f4254885f73eba116f290"><enum>(i)</enum><text>constructing or improving—</text> <subclause id="idDCF90D1606B74BE686B0E48FB047EB5C"><enum>(I)</enum><text>watershed management structures; or</text> </subclause><subclause id="id07387279aaef4fbcb13fe803566c732a"><enum>(II)</enum><text>irrigation structures;</text> </subclause></clause><clause id="ide1dfd651329945dfa53160243a4cac58"><enum>(ii)</enum><text>planting trees to form windbreaks or to improve water quality; and</text> </clause><clause id="idED9504B5796F40C59E65532808575AEF"><enum>(iii)</enum><text>mitigating financial risk through production or marketing diversification or resource conservation practices, including—</text> <subclause id="idA638318A86FF4362814577B3A0CD0878"><enum>(I)</enum><text>soil erosion control;</text> </subclause><subclause id="id975b32083c474edca8704b7d363b5004"><enum>(II)</enum><text>integrated pest management;</text> </subclause><subclause id="id9f70848dd8c04c8aa705c9f3f2bff97f"><enum>(III)</enum><text>organic farming; or</text> </subclause><subclause id="id92d0ead416fc481fb7067f3505eb9c47"><enum>(IV)</enum><text>to develop and implement a plan to create marketing opportunities for the producer, including through value-added processing.</text> </subclause></clause></subparagraph></paragraph><paragraph id="id2eafa9a0198c45e5b3caab0948fd9f48"><enum>(2)</enum><header>Payment limitation</header><text>The total amount of payments made to a person (as defined in section 1001(5) of the Food Security Act (7 U.S.C. 1308(5))) (as in existence before the amendment made by section 1603(b) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1730)) under paragraph (1) for any year may not exceed $50,000.</text> </paragraph><paragraph id="ida8c98ab7c08f44d4a2d9a0acdbc199d4"><enum>(3)</enum><header>Funding</header> <subparagraph id="idA5E55E74B5664EF59E7E4E233497F3A8"><enum>(A)</enum><header>In general</header><text>The Secretary shall carry out this subsection through the Commodity Credit Corporation.</text> </subparagraph><subparagraph id="id33224f302ffb4248b6a73386eb08caef"><enum>(B)</enum><header>Funding</header><text>For each of fiscal years 2013 through 2017, the Commodity Credit Corporation shall make available to carry out this subsection $23,000,000.</text> </subparagraph><subparagraph id="id63635861277143cf997af46e66d87aec"><enum>(C)</enum><header>Distribution of funds</header><text>Of the amount made available to carry out this subsection for a fiscal year, the Commodity Credit Corporation shall use not less than—</text> <clause id="id19c3d35afd204339a23078d7c5f1ab72"><enum>(i)</enum><text>50 percent to carry out paragraph (1)(A);</text> </clause><clause id="id0e4bc36c447d4794952a27a0d49818c6"><enum>(ii)</enum><text>26 percent to carry out paragraph (1)(B); and</text> </clause><clause id="id70874f306b5644a891c437a86c06fb91"><enum>(iii)</enum><text>24 percent to carry out paragraph (1)(C).</text> </clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id7F251327DDA9477787A5095ABA782230"><enum>11028.</enum><header>Crop production on native sod</header> <subsection id="id0D39A91539154ADA90B6C26FB8452541"><enum>(a)</enum><header>Federal crop insurance</header><text display-inline="yes-display-inline">Section 508(o) of the Federal Crop Insurance Act (7 U.S.C. 1508(o)) is amended—</text> <paragraph id="idAA0A2ECC71004A2DA0C2656E3FF7FBB3"><enum>(1)</enum><text>in paragraph (1)(B), by inserting <quote>, or the producer cannot substantiate that the ground has ever been tilled,</quote> after <quote>tilled</quote>;</text> </paragraph><paragraph id="id367D709C207B40A88259A1FB2F2FCDF1"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2)(A), by striking <quote>for benefits under—</quote> and all that follows through the period at the end and inserting “for—</text> <quoted-block display-inline="no-display-inline" id="id23D2DA97F5054D7A8B55550B5D00BF8D" style="OLC"> <clause id="id4A1533D996594FAF9C3118F858BDF540"><enum>(i)</enum><text>a portion of crop insurance premium subsidies under this subtitle in accordance with paragraph (3);</text> </clause><clause id="id4EF09A414EDC4EEFB850DA11D8D76C4F"><enum>(ii)</enum><text>benefits under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333); and</text> </clause><clause id="id2513DAC5DD5343969805ED5F41F725CD"><enum>(iii)</enum><text>payments described in subsection (b) of section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308).</text> </clause><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="id6DFBBA849BB14A0C9ED9C9CDA2845C9D"><enum>(3)</enum><text>by striking paragraph (3) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id3A341DEE6E2A44BE9ABDA73FE2F21C31" style="OLC"> <paragraph id="id006DCE2035724F43AB58671302441CA8"><enum>(3)</enum><header>Administration</header> <subparagraph id="idD8B5B797171F4564B5FAB9E29D6F88C5"><enum>(A)</enum><header>In general</header><text>During the first 4 crop years of planting on native sod acreage by a producer described in paragraph (2)—</text> <clause id="id7c458a95ddea4cc09012bf22615386db"><enum>(i)</enum><text>paragraph (2) shall apply to 65 percent of the applicable transitional yield; and</text> </clause><clause id="id5715f1aa257841a5830f4bc49d018779"><enum>(ii)</enum><text>the crop insurance premium subsidy provided for the producer under this subtitle shall be 50 percentage points less than the premium subsidy that would otherwise apply.</text> </clause></subparagraph><subparagraph id="id6E2BBC798AFE4E0D8855CEDA74345BF6"><enum>(B)</enum><header>Yield substitution</header><text>During the period native sod acreage is covered by this subsection, a producer may not substitute yields for the native sod acreage.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="idA66B962B410B4E3E9767D8889A0467CD"><enum>(b)</enum><header>Noninsured crop disaster assistance</header><text>Section 196(a)(4) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333(a)(4)) is amended—</text> <paragraph id="id534F8DE8615849808432392FE105D4D6"><enum>(1)</enum><text>in subparagraph (A)(ii), by inserting <quote>, or the producer cannot substantiate that the ground has ever been tilled,</quote> after <quote>tilled</quote>;</text> </paragraph><paragraph id="idA8C8ADDD863F4545A90514BE4F337B51"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (B)(i), by striking <quote>for benefits under—</quote> and all that follows through the period at the end and inserting “for—</text> <quoted-block display-inline="no-display-inline" id="id56C880CB4B8B4BAAB9BF1EF6624A4955" style="OLC"> <subclause id="idB34995B84768454B99E306CE090D6952"><enum>(I)</enum><text>benefits under this section;</text> </subclause><subclause id="idC4005BE655424DF0A65C2ACF181DF070"><enum>(II)</enum><text>a portion of crop insurance premium subsidies under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) in accordance with subparagraph (C); and</text> </subclause><subclause id="id335B4BD2020C49E9960C0323ABBFC75C"><enum>(III)</enum><text>payments described in subsection (b) of section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308).</text> </subclause><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4B526CE648EA4E738DF9B205E38F708B"><enum>(3)</enum><text>by striking subparagraph (C) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id52A0AAB04998419A8F29D4B4818F2B22" style="OLC"> <subparagraph id="id94D22BCACBF34D38B76C9B8D74085CC9"><enum>(C)</enum><header>Administration</header> <clause id="idF611775FEB294AAC8C10DF6299F53181"><enum>(i)</enum><header>In general</header><text>During the first 4 crop years of planting on native sod acreage by a producer described in subparagraph (B)—</text> <subclause id="id019145C0A87D43B7B0529EC2284D36B4"><enum>(I)</enum><text>subparagraph (B) shall apply to 65 percent of the applicable transitional yield; and</text> </subclause><subclause id="idD3DB0CBF37134B0F8F251D1B9C602A63"><enum>(II)</enum><text>the crop insurance premium subsidy provided for the producer under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) shall be 50 percentage points less than the premium subsidy that would otherwise apply.</text> </subclause></clause><clause id="id8E25E20D1E1041FEAFB0D71A1665C82C"><enum>(ii)</enum><header>Yield substitution</header><text>During the period native sod acreage is covered by this paragraph, a producer may not substitute yields for the native sod acreage.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="id824595ab7f43410383681fb1b709868e"><enum>(c)</enum><header>Cropland report</header> <paragraph id="id7e5aeb4ddefb4533b70ce6fef6ca3179"><enum>(1)</enum><header>Baseline</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary of Agriculture shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the cropland acreage in each county and State, and the change in cropland acreage from the preceding year in each county and State, beginning with calendar year 2000 and including that information for the most recent year for which that information is available.</text> </paragraph><paragraph id="idfeb51f02b9a74bd184ccb23020f6ebcc"><enum>(2)</enum><header>Annual updates</header><text>Not later than January 1, 2014, and each January 1 thereafter through January 1, 2017, the Secretary of Agriculture shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes—</text> <subparagraph id="idd8e6d431b5764d0abb51904eb0b4fbf0"><enum>(A)</enum><text>the cropland acreage in each county and State as of the date of submission of the report; and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id579fed343b2d47eab7ec748ffac1d730"><enum>(B)</enum><text>the change in cropland acreage from the preceding year in each county and State.</text> </subparagraph></paragraph></subsection></section><section id="idfa77aef0db374d2cb0e9bab040c0e807"><enum>11029.</enum><header>Technical amendments</header><text display-inline="no-display-inline">Section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)) is amended—</text> <paragraph id="id60a4a22dde3d4b8c9eafa5ea4bcd0b4e"><enum>(1)</enum><text>by striking paragraph (7); and</text> </paragraph><paragraph id="id14884a52f49e46aa85919a8d975e0f91"><enum>(2)</enum><text>by redesignating paragraphs (8) through (11) as paragraphs (7) through (10), respectively.</text> </paragraph></section><section id="id85A197EF01D74833BAE51A301D02DA10"><enum>11030.</enum><header>Greater accessibility for crop insurance</header> <subsection id="id33FF1CA1909D4C23861E5F9C7CE8DB11"><enum>(a)</enum><header>Findings</header><text display-inline="yes-display-inline">Congress finds that—</text> <paragraph id="id7BEEF1CA11EB435FBA6B14FF3B179B3B"><enum>(1)</enum><text>due to changes in commodity and other agricultural programs made by the <short-title>Agriculture Reform, Food, and Jobs Act of 2012</short-title>, it is more important than ever that agricultural producers be able to fully understand the terms of plans and policies of crop insurance offered under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.); and</text> </paragraph><paragraph id="idA014A929D14848A99AF90BAFDF81B9FD"><enum>(2)</enum><text>proposed reductions by the Secretary in the number of State and local offices of the Farm Service Agency will reduce the services available to assist agricultural producers in understanding crop insurance.</text> </paragraph></subsection><subsection id="id9B1E979601BC465C98C4BAF0C7CA3114"><enum>(b)</enum><header>Requirement for use of plain language</header> <paragraph id="idA88F057AD0EA4695A19DDEAF10DB40FE"><enum>(1)</enum><header>In general</header><text>In issuing regulations and guidance relating to plans and policies of crop insurance, the Risk Management Agency and the Federal Crop Insurance Corporation shall, to the greatest extent practicable, use plain language, as required under Executive Orders 12866 (5 U.S.C. 601 note; relating to regulatory planning and review) and 12988 (28 U.S.C. 519 note; relating to civil justice reform).</text> </paragraph><paragraph id="idECE69E8E1D204C449FF8E0CA9DB12A30"><enum>(2)</enum><header>Report</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the efforts of the Secretary to accelerate compliance with the Executive Orders described in paragraph (1).</text> </paragraph></subsection><subsection id="idCD03FD6079644130B23C33788747C3AF"><enum>(c)</enum><header>Website</header> <paragraph id="id1686CA97CB5446EA9E55F7D4207DE593"><enum>(1)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the approved insurance providers (as defined in section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)), shall improve the existing Internet website through which agricultural producers in any State may identify crop insurance options in that State.</text> </paragraph><paragraph id="idE6EA44751A5443B38604B24092E0498E"><enum>(2)</enum><header>Requirements</header><text>The website described in paragraph (1) shall—</text> <subparagraph id="id3b895d51696a43f38384ddc17577bd9a"><enum>(A)</enum><text>provide answers in an easily accessible format to frequently asked questions; and</text> </subparagraph><subparagraph id="id95024a6ae32f49aeb01aaa7b90760c54"><enum>(B)</enum><text>include published materials of the Department of Agriculture that relate to plans and policies of crop insurance offered under that Act.</text> </subparagraph></paragraph></subsection><subsection id="id04a9bef930524a84bf2894d6a3cde5ea"><enum>(d)</enum><header>Administration</header><text>Nothing in this section authorizes the Risk Management Agency to sell a crop insurance policy or plan of insurance.</text> </subsection></section><section id="id5F7D0CA99EF54B48A31E84629265B9C6"><enum>11031.</enum><header>GAO crop insurance fraud report</header><text display-inline="no-display-inline">Section 515(d) of the Federal Crop Insurance Act (7 U.S.C. 1515(d)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id8ECD4171A1FA40269D11FD44C0C0AA27" style="OLC"> <paragraph id="id1D635876785B4666AAA06B1D510825EF"><enum>(6)</enum><header>GAO crop insurance fraud report</header><text>As soon as practicable after the date of enactment of this paragraph, the Comptroller General of the United States shall conduct, and submit to Congress a report describing the results of, a study regarding fraudulent claims filed, and benefits provided, under this subtitle.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id163a1e9d83e540c4a89102421e341cc3"><enum>11032.</enum><header>Limitation on premium subsidy based on average adjusted gross income</header><text display-inline="no-display-inline">Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) (as amended by section 11023(b)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idf43fc75e879c4c3d85e332d74957cfe7" style="OLC"> <paragraph id="id28b0c3b9e2114509baeb2bfb36bf044a"><enum>(9)</enum><header>Limitation on premium subsidy based on average adjusted gross income</header> <subparagraph id="id49C499E3BA5E4EAFB54621B233EEEB76"><enum>(A)</enum><header>Definition of average adjusted gross income</header><text>In this paragraph, the term <term>average adjusted gross income</term> has the meaning given the term in section 1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(a)).</text> </subparagraph><subparagraph id="id37E56F4DEB42449BA800A4C4E9C478F9"><enum>(B)</enum><header>Limitation</header><text>Notwithstanding any other provision of this subtitle and beginning with the 2014 reinsurance year, in the case of any producer that is a person or legal entity that has an average adjusted gross income in excess of $750,000 based on the most recent data available from the Farm Service Agency as of the beginning of the reinsurance year, the total amount of premium subsidy provided with respect to additional coverage under subsection (c), section 508B, or section 508C issued on behalf of the producer for a reinsurance year shall be 15 percentage points less than the premium subsidy provided in accordance with this subsection that would otherwise be available for the applicable policy, plan of insurance, and coverage level selected by the producer.</text> </subparagraph><subparagraph id="id31b2970f3a3441108eb9713f887746ee"><enum>(C)</enum><header>Application</header> <clause id="idFCCB670038C24EB2B85DEFB33782B5ED"><enum>(i)</enum><header>Study</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the Government Accountability Office, shall carry out a study to determine the effects of the limitation described in subparagraph (B) on—</text> <subclause id="id4a671427543f4ee481c9e1a44cc24b99"><enum>(I)</enum><text>the overall operations of the Federal crop insurance program;</text> </subclause><subclause id="id29ec4e8a766541c0ac2744aa8c0907ba"><enum>(II)</enum><text>the number of producers participating in the Federal crop insurance program;</text> </subclause><subclause id="id65ab3a5b46a54c4c8d989421f26794ee"><enum>(III)</enum><text>the level of coverage purchased by participating producers;</text> </subclause><subclause id="id1777f081423e4c97bc63bc16a2e5d17e"><enum>(IV)</enum><text>the amount of premiums paid by participating producers and the Federal Government;</text> </subclause><subclause id="idb8285776b01c413291cb37067fcfe3ce"><enum>(V)</enum><text>any potential liability for participating producers, approved insurance providers, and the Federal Government;</text> </subclause><subclause id="idb0d52129eecf4825a160575426ef1dac"><enum>(VI)</enum><text>different crops or growing regions;</text> </subclause><subclause id="ide548465b14344cacb148b449e11c6a01"><enum>(VII)</enum><text>program rating structures;</text> </subclause><subclause id="idece1e9ad189240bd99b86eba0caa5ba2"><enum>(VIII)</enum><text>creation of schemes or devices to evade the impact of the limitation; and</text> </subclause><subclause id="id3e8a5ff29ea04692915f0aca66012773"><enum>(IX)</enum><text>administrative and operating expenses paid to approved insurance providers and underwriting gains and loss for the Federal government and approved insurance providers.</text> </subclause></clause><clause id="id3210E286714448B5A595C6E771537B30"><enum>(ii)</enum><header>Effectiveness</header><text>The limitation described in subparagraph (B) shall not take effect unless the Secretary determines, through the study described in clause (i), that the limitation would not—</text> <subclause id="idf29e0cafce85417ea7bcd7582edee82e"><enum>(I)</enum><text>significantly increase the premium amount paid by producers with an average adjusted gross income of less than $750,000;</text> </subclause><subclause id="id580e7bf844124b6789ec521c81dd4b33"><enum>(II)</enum><text>result in a decline in the crop insurance coverage available to producers; and</text> </subclause><subclause id="id26b55f9dd0504736b54aa854dd785fee"><enum>(III)</enum><text>increase the total cost of the Federal crop insurance program.</text> </subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><enum>XII</enum><header>Miscellaneous</header> <subtitle id="H43001458FFE446C8A84E82BEEDABE13E"><enum>A</enum><header>Socially disadvantaged producers and limited resource producers</header> <section id="idDD2291DFACC74BE9B70F96592D7522C5"><enum>12001.</enum><header>Outreach and assistance for socially disadvantaged farmers and ranchers and veteran farmers and ranchers</header> <subsection id="id540A1204392B4FE3B854E96A040F412E"><enum>(a)</enum><header>Outreach and assistance for socially disadvantaged farmers and ranchers and veteran farmers and ranchers</header><text>Section 2501 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is amended—</text> <paragraph id="id3B598BBB15CC4A3E80136373A6E2DE25"><enum>(1)</enum><text>in the section heading, by inserting <quote><header-in-text level="section" style="OLC">and veteran farmers and ranchers</header-in-text></quote> after <quote><header-in-text level="section" style="OLC">ranchers</header-in-text></quote>;</text> </paragraph><paragraph id="id650D78AD209347E8B56EB4774649BB9B"><enum>(2)</enum><text>in subsection (a)—</text> <subparagraph id="idE15441BB374345EF972255A9E96C087D"><enum>(A)</enum><text>in paragraph (2)(B)(i), by inserting <quote>and veteran farmers or ranchers</quote> after <quote>ranchers</quote>; and</text> </subparagraph><subparagraph id="idB27FE069AD044B389A4F77A64CD18037"><enum>(B)</enum><text>in paragraph (4)—</text> <clause id="id7015C29DFFC74E239FEE74B42F1AB092"><enum>(i)</enum><text>in subparagraph (A)—</text> <subclause id="id8AAC9134548045A08FB27478E6CE0647"><enum>(I)</enum><text>in clause (i), by striking <quote>and</quote> at the end;</text> </subclause><subclause id="id1503C67009FF41A58A9D7A21B06EBA48"><enum>(II)</enum><text>in clause (ii), by striking the period at the end and inserting <quote>; and</quote>; and</text> </subclause><subclause id="idEC6B02B1F06341E5AA9363791CA8178C"><enum>(III)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id2F7CC6B9B238487CA6E5A296C7D716BC" style="OLC"> <clause id="id57E15B3ED5C043DCB397373B602EF04A"><enum>(iii)</enum><text>$5,000,000 for each of fiscal years 2013 through 2017.</text> </clause><after-quoted-block>; and</after-quoted-block></quoted-block> </subclause></clause><clause id="id8890DDB5322C444BBDBE956F3D194EB3"><enum>(ii)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id1CFA3A326B56447F8391E04B3A8594A5" style="OLC"> <subparagraph id="id838127282e3a42d3824abff9cd1a6a03"><enum>(D)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2013 through 2017.</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </clause></subparagraph></paragraph><paragraph id="id133DFAB4E85F493386F8B88860377A52"><enum>(3)</enum><text>in subsection (b)(2), by inserting <quote>or veteran farmers and ranchers</quote> after <quote>socially disadvantaged farmers and ranchers</quote>; and</text> </paragraph><paragraph id="idBD58527FF06449D18DD7024BE585F3C8"><enum>(4)</enum><text>in subsection (c)—</text> <subparagraph id="id546E3EA70586482990CA081E23823D37"><enum>(A)</enum><text>in paragraph (1)(A), by inserting <quote>veteran farmers or ranchers and</quote> before <quote>members</quote>; and</text> </subparagraph><subparagraph id="id12122C2993EF4B33B2A4DEB51838FC69"><enum>(B)</enum><text>in paragraph (2)(A), by inserting <quote>veteran farmers or ranchers and</quote> before <quote>members</quote>.</text> </subparagraph></paragraph></subsection><subsection id="id30854228C1D14817AA927E2796B3A895"><enum>(b)</enum><header>Definition of veteran farmer or rancher</header><text>Section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idD1DA7B4406804CAA9DC9D651E4488FD1" style="OLC"> <paragraph id="id6123024C84E5499D9DB596CA87A4BBB8"><enum>(7)</enum><header>Veteran farmer or rancher</header><text>The term <quote>veteran farmer or rancher</quote> means a farmer or rancher who served in the active military, naval, or air service, and who was discharged or released from the service under conditions other than dishonorable.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section display-inline="no-display-inline" id="H51A648BAEBF44AB1A23CEC33B9ABE727" section-type="subsequent-section"><enum>12002.</enum><header>Office of Advocacy and Outreach</header><text display-inline="no-display-inline">Section 226B(f)(3) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6934(f)(3)) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HD6B6BD9596764FC8A5DDEEFB3344DAA7" style="OLC"> <paragraph id="HAFAFF748EC614C73BE9854042031DBE0"><enum>(3)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There are authorized to be appropriated to carry out this subsection—</text> <subparagraph id="H2022648A69CA4DB68BE19ECFE8F30A42"><enum>(A)</enum><text>such sums as are necessary for each of fiscal years 2009 through 2012; and</text> </subparagraph><subparagraph id="H82F865E4849D479BA39C407620D3C08B"><enum>(B)</enum><text>$2,000,000 for each of fiscal years 2013 through 2017.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section></subtitle><subtitle id="H3633B9B3AB994910851D31C6C2996E94"><enum>B</enum><header>Livestock</header> <section id="id8b29262166a6456ebdf25451b82a3def"><enum>12101.</enum><header>Wildlife reservoir zoonotic disease initiative</header><text display-inline="no-display-inline">Title IV of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id91E629A8A559441F93B9B10A388F5914" style="OLC"> <section id="id739ebe822a1742928e21c5e7bf055fc4"><enum>413.</enum><header>Wildlife reservoir zoonotic disease initiative</header> <subsection id="idf66d86cf881c489c91ab89b51cc80f65"><enum>(a)</enum><header>Definition of covered disease</header><text>In this section, the term <term>covered disease</term> means a zoonotic disease affecting domestic livestock that is transmitted primarily from wildlife.</text> </subsection><subsection id="idf7c3e9b1defa47a987fcb35457c67a0c"><enum>(b)</enum><header>Establishment</header><text>There is established within the Department a wildlife reservoir zoonotic disease initiative to provide assistance through Coordinated Agricultural Project grants for research and development of surveillance methods, vaccines, vaccination delivery systems, or diagnostic tests for covered diseases.</text> </subsection><subsection commented="no" id="id37d011b7a85e40a4a90b6b6a43c075d3"><enum>(c)</enum><header>Covered disease</header> <paragraph commented="no" id="idb9def6844ac149e6adb7f2ea17f04e22"><enum>(1)</enum><header>In general</header><text>To be eligible for a grant under this section, an eligible entity shall conduct research and development of surveillance methods, vaccines, vaccination delivery systems, or diagnostic tests for covered diseases in—</text> <subparagraph id="id8b2a5e363a4b4341935c87363dcb5ded"><enum>(A)</enum><text>a wildlife reservoir in the United States; or</text> </subparagraph><subparagraph id="id14060cc53daa44a2a7103984215a26ff"><enum>(B)</enum><text>domestic livestock or wildlife presenting a potential concern to public health.</text> </subparagraph></paragraph><paragraph id="id4ed9c7ff89bd4f9caa9c0512be8b31ff"><enum>(2)</enum><header>Priority</header><text>In making grants under this section, the Secretary shall give priority to grants that address—</text> <subparagraph id="ide9ab345a823b42cd9bee5a0c6668f48c"><enum>(A)</enum><text>Brucella abortus (Bovine Brucellosis);</text> </subparagraph><subparagraph id="id5c8eb2c4358a4ed5abc6987705abf645"><enum>(B)</enum><text>Mycobacterium bovis (Bovine Tuberculosis); or</text> </subparagraph><subparagraph id="id7d332b33524b4fd196416866cc48a739"><enum>(C)</enum><text>other zoonotic disease in livestock that is covered by a high-priority research and extension initiative conducted under section 1672 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925).</text> </subparagraph></paragraph></subsection><subsection id="id9bf27e3783314cf2b9709f5639b12aa9"><enum>(d)</enum><header>Eligible entities</header><text>The Secretary shall carry out the initiative established under subsection (b) through public scientific research consortia that may consist of members from—</text> <paragraph id="id9b75c5dd6ce94769bf1f04c7356ecd9e"><enum>(1)</enum><text>Federal agencies;</text> </paragraph><paragraph id="ida4969a573ce94dbfb3b060fbb6ce9344"><enum>(2)</enum><text>National Laboratories;</text> </paragraph><paragraph id="id3f6213962d5a4c91838b024b602316b3"><enum>(3)</enum><text>institutions of higher education;</text> </paragraph><paragraph id="id006c61b791734ed3bfcb001895283196"><enum>(4)</enum><text>research institutions and organizations; or</text> </paragraph><paragraph id="iddae584b8df42496fb54a68d887f272fb"><enum>(5)</enum><text>State agricultural experiment stations.</text> </paragraph></subsection><subsection id="id2da31b4448814841920a1ed1808aaf54"><enum>(e)</enum><header>Research projects</header><text>In carrying out this section, the Secretary shall award grants on a competitive basis.</text> </subsection><subsection id="id0af322a5bfc74e08b9bb2c060f2d5c66"><enum>(f)</enum><header>Administration</header> <paragraph id="id6bcb44b239b64740b3cc3a2a922d146e"><enum>(1)</enum><header>In general</header><text>In the case of grants awarded under this section, the Secretary shall—</text> <subparagraph id="id1bea0721a54d4e9e9b418bd410d437ad"><enum>(A)</enum><text>seek and accept proposals for grants;</text> </subparagraph><subparagraph id="id5dbd25ae19e044f29f44243102345e6e"><enum>(B)</enum><text>determine the relevance and merit of proposals through a system of peer and merit review in accordance with section 103;</text> </subparagraph><subparagraph id="id5e487a72661947198fc69663442ab774"><enum>(C)</enum><text>award grants on the basis of merit, quality, and relevance; and</text> </subparagraph><subparagraph id="idecd90b7800a84f77a4d69d6e7551a7b4"><enum>(D)</enum><text>manage the initiative established under subsection (b) using a Coordinated Agricultural Project format.</text> </subparagraph></paragraph><paragraph id="id8de7bc7afd9a4a4f9e2c815c1fe2f86e"><enum>(2)</enum><header>Term</header><text>The term of a grant under this section may not exceed 10 years.</text> </paragraph><paragraph id="id86d2529dabae4c0a8f53a0cefb185646"><enum>(3)</enum><header>Matching funds required</header><text>The Secretary shall require the recipient of a grant under this section to provide funds or in-kind support from non-Federal sources in an amount that is not less than 25 percent of the amount provided by the Federal Government.</text> </paragraph><paragraph id="id9386f1cf2b6143329c710cdd281b05f8"><enum>(4)</enum><header>Other conditions</header><text>The Secretary may set such other conditions on the award of a grant under this section as the Secretary determines to be appropriate.</text> </paragraph></subsection><subsection id="id29c6fdf83240452c8071655baa065704"><enum>(g)</enum><header>Buildings and facilities</header><text>Funds made available under this section shall not be used for—</text> <paragraph id="id9BAE3FE02B754A0AAB0A7156DD68461B"><enum>(1)</enum><text>the construction of a new building or facility; or</text> </paragraph><paragraph id="id7B14BEF3706E4D278DFEE8578950FD26"><enum>(2)</enum><text>the acquisition, expansion, remodeling, or alteration of an existing building or facility (including site grading and improvement and architect fees).</text> </paragraph></subsection><subsection id="id35b50e0c184648d58753227628b1430e"><enum>(h)</enum><header>Authorization of appropriations</header> <paragraph id="idD93807567A294447B0608F5B7F349599"><enum>(1)</enum><header>In general</header><text>There is authorized to be appropriated to carry out this section $7,000,000 for each of fiscal years 2012 through 2017.</text> </paragraph><paragraph id="id970BCD4669D646D3ACEF770E95F6D2DC"><enum>(2)</enum><header>Allocation</header><text>Of the amount made available for a fiscal year under paragraph (1), the Secretary shall use not less than 30 percent of the amount for the fiscal year to carry out activities under each of subparagraphs (A) and (B) of subsection (c)(2).</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section display-inline="no-display-inline" id="H4AEA1734926240BCA73081E7D124D06"><enum>12102.</enum><header>Trichinae certification program</header><text display-inline="no-display-inline">Section 10405(d)(1) of the Animal Health Protection Act (7 U.S.C. 8304(d)(1)) is amended in subparagraphs (A) and (B) by striking <quote>2012</quote> each place it appears and inserting <quote>2017</quote>.</text> </section><section display-inline="no-display-inline" id="H6A8AA3ABE14648B0BB73931B35D14B16"><enum>12103.</enum><header>National Aquatic Animal Health Plan</header><text display-inline="no-display-inline">Section 11013(d) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8322(d)) is amended by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text> </section><section display-inline="no-display-inline" id="idADEBDFE1EEA24E618F6BE7B633C86DB3"><enum>12104.</enum><header>Sheep production and marketing grant program</header> <subsection display-inline="no-display-inline" id="idBBF90B4F15A744399E2426FDFA5379BB"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subtitle A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id0bd6d57e98fa420f89967f6cc93b99c9" style="OLC"> <section id="id22ff9ac61a1c4584b7192c23f994f64b"><enum>209.</enum><header>Sheep production and marketing grant program</header> <subsection id="idd11ef747d97c49fead8fd1d0bc2fe7ce"><enum>(a)</enum><header>Establishment</header><text>The Secretary, acting through the Administrator of the Agricultural Marketing Service (referred to in this section as the <quote>Secretary</quote>) shall establish a competitive grant program for the purposes of improving the United States sheep industry.</text> </subsection><subsection id="id3b12e167529740a9bf181bac490b5397"><enum>(b)</enum><header>Purpose</header><text>The purpose of the grant program shall be to strengthen and enhance the production and marketing of sheep and sheep products, including improvement of—</text> <paragraph id="id3b9d24d949164a03911c47d63aeaa5be"><enum>(1)</enum><text>infrastructure;</text> </paragraph><paragraph id="idced424eb7e6b44db9720554297cd225c"><enum>(2)</enum><text>business;</text> </paragraph><paragraph id="id46f94b8467934b8c9223d98f620ea661"><enum>(3)</enum><text>resource development; and</text> </paragraph><paragraph id="id307d5c1f965047bd91fdac74e6e070b4"><enum>(4)</enum><text>innovative approaches to solve long-term needs.</text> </paragraph></subsection><subsection id="id27e863ab65674e959a9a5e1113e3b195"><enum>(c)</enum><header>Eligibility</header><text>The Secretary shall make grants under this section to 1 or more national entities the mission of which is consistent with the purpose of the grant program.</text> </subsection><subsection id="id1FECA2C40CC745ACA85F77FF2631E526"><enum>(d)</enum><header>Funding</header><text>Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $1,500,000 for fiscal year 2013, to remain available until expended.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection display-inline="no-display-inline" id="idF9CF4C2CAC6745378CCDAAEA2BD38FCC"><enum>(b)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">Section 374 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008j) (as in existence on the day before the date of enactment of this Act) is—</text> <paragraph display-inline="no-display-inline" id="idA3689DBB4BA14BBC8F1D669CEFD60F72"><enum>(1)</enum><text display-inline="yes-display-inline">amended in subsection (e)—</text> <subparagraph display-inline="no-display-inline" id="id8F5ACBEA9A3548F2AD17477FC521F500"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (3)(D), by striking <quote>3 percent</quote> and inserting <quote>10 percent</quote>; and</text> </subparagraph><subparagraph display-inline="no-display-inline" id="idB451BD15ACAC45B283F05E6756F6D4E1"><enum>(B)</enum><text display-inline="yes-display-inline">by striking paragraph (6); and</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="id0D6913BCF2BB4F208FED3766A1E01D6F"><enum>(2)</enum><text>redesignated as section 210 of the Agricultural Marketing Act of 1946; and</text> </paragraph><paragraph display-inline="no-display-inline" id="id4B3FD20E70174A458448642423094DC3"><enum>(3)</enum><text>moved so as to appear at the end of subtitle A of that Act (as amended by subsection (a)).</text> </paragraph></subsection></section><section id="idb84445a46dcf474e8205e928c4bc844a"><enum>12105.</enum><header>Feral swine eradication pilot program</header> <subsection id="id0425614e844c4d68a21104e9525b58b4"><enum>(a)</enum><header>In general</header><text>To eradicate or control the threat feral swine pose to the domestic swine population, the entire livestock industry, and the destruction of crops and natural plant communities and native habitats, the Secretary of Agriculture may establish a feral swine eradication pilot program.</text> </subsection><subsection id="idca5f15b4b2714edba6b067007eb2da3e"><enum>(b)</enum><header>Pilot</header><text>Subject to the availability of appropriations under this section, the Secretary may provide financial assistance for the cost of carrying out a pilot program—</text> <paragraph id="idea006ee6373c47b3a60e76f389443be2"><enum>(1)</enum><text>to study and assess the nature and extent of damage to the pilot area caused by feral swine;</text> </paragraph><paragraph id="id57aa833d427e447598f7923422c1f3ce"><enum>(2)</enum><text>to develop methods to eradicate or control feral swine in the pilot area; and</text> </paragraph><paragraph id="id90776df6a43a438789b77b3149a92b6c"><enum>(3)</enum><text>to develop methods to restore damage caused by feral swine.</text> </paragraph></subsection><subsection id="id129913d8dd8247f8919d98c04607179a"><enum>(c)</enum><header>Coordination</header><text>The Secretary shall ensure that the Natural Resource Conservation Service and the Animal and Plant Health Inspection Service coordinate to carry out the pilot program.</text> </subsection><subsection id="id57e9531d07334bc6bf7f2a2ad3e3f00a"><enum>(d)</enum><header>Cost sharing</header> <paragraph id="ide85ac515da554091a8267ccd9554620a"><enum>(1)</enum><header>Federal share</header><text>The Federal share of the costs of the pilot program under this section may not exceed 75 percent of the total costs of carrying out the pilot program.</text> </paragraph><paragraph id="idea45769fd1774cfc938388c440cd86e3"><enum>(2)</enum><header>In-kind contributions</header><text>The non-Federal share of the costs of the pilot program may be provided in the form of in-kind contributions of materials or services.</text> </paragraph></subsection><subsection id="idde64ffe505af4197a2f4e1963d6a3f7f"><enum>(e)</enum><header>Limitation on administrative expenses</header><text>Not more than 10 percent of financial assistance provided by the Secretary under this section may be used for administrative expenses.</text> </subsection><subsection id="id1639021329d14c069bfd1121d010036f"><enum>(f)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $2,000,000 for each of fiscal years 2013 through 2017.</text> </subsection></section></subtitle><subtitle id="HAD00AC283005446D899C28948D09EE98"><enum>C</enum><header>Other miscellaneous provisions</header> <section id="id9c6633f4edfa4d6a93740b4dd64698dd"><enum>12201.</enum><header>Military veterans agricultural liaison</header> <subsection id="id87E3FE27F0104596BDE1688BD7B9BFD9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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="id7766238a9b344156a5fbc6046cbf56ed" style="OLC"> <section id="idd0a90d78610040ed9aef58e7448ad112"><enum>219.</enum><header>Military veterans agricultural liaison</header> <subsection id="ida28afa7190114ff293a72162f50949c2"><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="id92eff892d9654e2b943e312e8c2befe1"><enum>(b)</enum><header>Duties</header><text>The Military Veterans Agricultural Liaison shall—</text> <paragraph id="ida365c9b8d3db4443b0fe392e9c07c0cc"><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="id7895aafdf38949d78375e5e25623a7a4"><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="idd1b8580e02054ee4877095df2a9b98a5"><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="id3e61359ca7614016bcfe427bd7091374"><enum>(4)</enum><text>advocating on behalf of veterans in interactions with employees of the Department.</text> </paragraph></subsection><subsection id="idae39eb3985ec42e999f6d808113d5b33"><enum>(c)</enum><header>Contracts and cooperative agreements</header><text>For purposes of carrying out the duties under subsection (b), the Military Veterans Agricultural Liaison may enter into contracts or cooperative agreements with the research centers of the Agricultural Research Service, institutions of higher education, or nonprofit organizations for—</text> <paragraph id="id5c7e1aa9d09444e8bb432ab818009024"><enum>(1)</enum><text>the conduct of regional research on the profitability of small farms;</text> </paragraph><paragraph id="id769d9b7add5e419c9ad0894dd5d9468c"><enum>(2)</enum><text>the development of educational materials;</text> </paragraph><paragraph id="id4ae672c8167e4715a7a2dbdc6f5b31dd"><enum>(3)</enum><text>the conduct of workshops, courses, and certified vocational training;</text> </paragraph><paragraph id="idb63330b143f543f89e5dab68156ddb45"><enum>(4)</enum><text>the conduct of mentoring activities; or</text> </paragraph><paragraph id="idff566cedf41049e6b7c0886d31749b3f"><enum>(5)</enum><text>the provision of internship opportunities.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="idd1322223bfed4a5e893af7b6dc6d58cc"><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)) (as amended by section 4206(b)) is amended—</text> <paragraph id="id2250b69ce4464e819021079860e2de3e"><enum>(1)</enum><text>in paragraph (8), by striking the <quote>or</quote> at the end;</text> </paragraph><paragraph id="idDD101C727AB145388206F04501714E0E"><enum>(2)</enum><text>in paragraph (9), by striking the period at the end and inserting <quote>; or</quote>; and</text> </paragraph><paragraph id="id9017351f77064e2f95f88901eae60483"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id5c474b51bfa3426db1e5be35a488e4c3" style="OLC"> <paragraph id="id2b0e3bb7f3ee48c6b0b962ebad1de214"><enum>(10)</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 commented="no" display-inline="no-display-inline" id="id2BED837E50404FB2A4A46D1EE3F006D9" section-type="subsequent-section"><enum>12202.</enum><header display-inline="yes-display-inline">Information gathering</header><text display-inline="no-display-inline">Section 1619(b)(3) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8791) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id2B5B56A9BE5D4163B5CF7F3BCFFA6CF5" style="OLC"> <subparagraph commented="no" display-inline="no-display-inline" id="idB633597BABA34655894210FC7DE7C9F0"><enum>(B)</enum><header display-inline="yes-display-inline">Cooperation with State and local governments</header> <clause commented="no" display-inline="no-display-inline" id="id44C1A85672914B4EB3C0228C84A53679"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subject to clause (ii), in the case of a State agency, political subdivision, or local governmental agency that is charged with implementing an agriculture or conservation program under State law, on request of the State agency, political subdivision, or local governmental agency, the information described in paragraph (2) shall be disclosed to the State agency, political subdivision, or local governmental agency if the Secretary determines that the State agency, political subdivision, or local governmental agency demonstrates that the disclosure is required for implementing the State program.</text> </clause><clause commented="no" display-inline="no-display-inline" id="id0BE8DB54DD294E95831926D759049B78"><enum>(ii)</enum><header display-inline="yes-display-inline">Restriction</header><text display-inline="yes-display-inline">Any information disclosed to a State agency, political subdivision, or local governmental agency under clause (i) shall be—</text> <subclause commented="no" display-inline="no-display-inline" id="id70C67CAA433441E8A0AF72D8B5D65432"><enum>(I)</enum><text display-inline="yes-display-inline">used solely by the State agency, political subdivision, or local governmental agency; and</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="id3BBAD2A2D1404734A45FB0C4BFBD83DD"><enum>(II)</enum><text display-inline="yes-display-inline">exempt from disclosure to the public, including under any State law that allows a citizen to petition a State agency for that information.</text> </subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section commented="no" display-inline="no-display-inline" id="H0A757B5F7B2947C58C8BEADB2F4E86F3" section-type="subsequent-section"><enum>12203.</enum><header display-inline="yes-display-inline">Grants to improve supply, stability, safety, and training of agricultural labor force</header><text display-inline="no-display-inline">Section 14204(d) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 2008q–1(d)) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H0CFB119CCCD744CEB40D285AE53813CD" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="HBDAF665860DB4957B5BD7C7116910D08"><enum>(d)</enum><header display-inline="yes-display-inline">Authorization of appropriations</header><text display-inline="yes-display-inline">There are authorized to be appropriated to carry out this section—</text> <paragraph commented="no" display-inline="no-display-inline" id="HA0BD03A614944377A54B7A77558828AD"><enum>(1)</enum><text display-inline="yes-display-inline">such sums as are necessary for each of fiscal years 2008 through 2012; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H54A626BD946C41F78666CFBB4CFC8297"><enum>(2)</enum><text display-inline="yes-display-inline">$10,000,000 for each of fiscal years 2013 through 2017.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section commented="no" display-inline="no-display-inline" id="id888B998F53734DFE8C256A2499656A3E" section-type="subsequent-section"><enum>12204.</enum><header display-inline="yes-display-inline">Noninsured crop assistance program</header> <subsection commented="no" display-inline="no-display-inline" id="id0353DA79174642FA84158E59AC244F35"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333) is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="id0F6C3BD8E5EF4803B5AE812593B13003"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)—</text> <subparagraph commented="no" display-inline="no-display-inline" id="idE1BE18B0B8A648FB9BE4B63873B10CE1"><enum>(A)</enum><text display-inline="yes-display-inline">by striking paragraph (1) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idB6F3F9660B7943E09283DB4052ADF17C" style="OLC"> <paragraph commented="no" display-inline="no-display-inline" id="ide88d961fe0a448f2bb38b96e3478301f"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header> <subparagraph commented="no" display-inline="no-display-inline" id="idf1fcc34a8a234cf0ad63ed27b4cf06ef"><enum>(A)</enum><header display-inline="yes-display-inline">Coverages</header><text display-inline="yes-display-inline">In the case of an eligible crop described in paragraph (2), the Secretary of Agriculture shall operate a noninsured crop disaster assistance program to provide coverages based on individual yields (other than for value-loss crops) equivalent to—</text> <clause commented="no" display-inline="no-display-inline" id="idc4ded35051534541b06fdf8620305f8a"><enum>(i)</enum><text display-inline="yes-display-inline">catastrophic risk protection available under section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)); or</text> </clause><clause commented="no" display-inline="no-display-inline" id="idc6b41ffadb994eff8ad772a6d6cf6e67"><enum>(ii)</enum><text display-inline="yes-display-inline">additional coverage available under subsections (c) and (h) of section 508 of that Act (7 U.S.C. 1508) that does not exceed 65 percent.</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id67fc512059e44610ac9a34c92b3e55bf"><enum>(B)</enum><header display-inline="yes-display-inline">Administration</header><text display-inline="yes-display-inline">The Secretary shall carry out this section through the Farm Service Agency (referred to in this section as the <quote>Agency</quote>).</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1D6F5C70186C41E29D7C40CFB4B155A1"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text> <clause commented="no" display-inline="no-display-inline" id="idC0D439E055DF472FAE4074C906089163"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text> <subclause commented="no" display-inline="no-display-inline" id="IDdfba015184e74421953c53e6f15e4500"><enum>(I)</enum><text display-inline="yes-display-inline">in the matter before clause (i), by striking <quote>(except livestock)</quote> and inserting <quote>(except livestock and crops and grasses used for grazing)</quote>;</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="id2B579AF60D5E4D8D8B559E1EB843F6CC"><enum>(II)</enum><text display-inline="yes-display-inline">in clause (i), by striking <quote>and</quote> after the semicolon at the end;</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="id10B3C7F21C1B4C7DA80FC1E9D15754AF"><enum>(III)</enum><text display-inline="yes-display-inline">by redesignating clause (ii) as clause (iii); and</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="id6AAF14B8624C4082B2D618F5053C722E"><enum>(IV)</enum><text display-inline="yes-display-inline">by inserting after clause (i) the following:</text> <quoted-block display-inline="no-display-inline" id="id7523F547C8C04BB4B05DA44E726DE2AE" style="OLC"> <item commented="no" display-inline="no-display-inline" id="idb5b4eaa5f7a54f859f942d6e08fa43a6"><enum>(ii)</enum><text display-inline="yes-display-inline">for which additional coverage under subsections (c) and (h) of section 508 of that Act (7 U.S.C. 1508) is not available; and</text> </item><after-quoted-block>; and</after-quoted-block></quoted-block> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="IDbd1bd9070f9b49a998e6fcaef0ad818f"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text> <subclause commented="no" display-inline="no-display-inline" id="ID74ace6311ca1435eaac68f9ad425f0d5"><enum>(I)</enum><text display-inline="yes-display-inline">by inserting <quote>(except ferns)</quote> after <quote>floricultural</quote>;</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="ID70eff4ae91c04dd1be7d3e6ea69126d8"><enum>(II)</enum><text display-inline="yes-display-inline">by inserting <quote>(except ferns)</quote> after <quote>ornamental nursery</quote>; and</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="IDbdc9636d60b64115816325dabfd8bfbf"><enum>(III)</enum><text display-inline="yes-display-inline">by striking <quote>(including ornamental fish)</quote> and inserting <quote>(including ornamental fish, but excluding tropical fish)</quote>;</text> </subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id92D1C33A338749008B0B26C841E4EA5A"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (d), by striking <quote>The Secretary</quote> and inserting <quote>Subject to subsection (l), the Secretary</quote>;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0DCA57EB46754FC19FE11658E4D5F228"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (k)(1)—</text> <subparagraph commented="no" display-inline="no-display-inline" id="id1805E2294E714110B0D86552635A2F2D"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking <quote>$250</quote> and inserting <quote>$260</quote>; and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDDF17EE08E924951B79507FDF09775E5"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text> <clause commented="no" display-inline="no-display-inline" id="idCFF52A6D4E8147038AAB03709A60B148"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>$750</quote> and inserting <quote>$780</quote>; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="idB8851F1361D14374BE29ED1CE394205D"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>$1,875</quote> and inserting <quote>$1,950</quote>; and</text> </clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7163B459D06C4937BC295399BDB372E9"><enum>(4)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idEE3E1C6B20494C4891CE6C25BAB66F69" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="idfe3f58884d604e5c9ba3353fde200fcc"><enum>(l)</enum><header display-inline="yes-display-inline">Payment equivalent to additional coverage</header> <paragraph commented="no" display-inline="no-display-inline" id="id3d8378a2f6e94686a738a408995d981d"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary shall make available to a producer eligible for noninsured assistance under this section a payment equivalent to an indemnity for additional coverage under subsections (c) and (h) of section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) that does not exceed 65 percent, computed by multiplying—</text> <subparagraph commented="no" display-inline="no-display-inline" id="id368d55b2b5494f68a97a62370f21a5b6"><enum>(A)</enum><text display-inline="yes-display-inline">the quantity that is less than 50 to 65 percent of the established yield for the crop, as determined by the Secretary, specified in increments of 5 percent;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id82b4700da51c4881acf80adfc8dca37d"><enum>(B)</enum><text display-inline="yes-display-inline">100 percent of the average market price for the crop, as determined by the Secretary; and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idd65523c057b14a08bd524d37518f60db"><enum>(C)</enum><text display-inline="yes-display-inline">a payment rate for the type of crop, as determined by the Secretary, that reflects—</text> <clause commented="no" display-inline="no-display-inline" id="id4d7ae19e0e944003808885c98fb48e44"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a crop that is produced with a significant and variable harvesting expense, the decreasing cost incurred in the production cycle for the crop that is, as applicable—</text> <subclause commented="no" display-inline="no-display-inline" id="idb20677f6a37c431694fb7d98d58b57f8"><enum>(I)</enum><text display-inline="yes-display-inline">harvested;</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="id628e605cf55542bb841835a5ffe6410a"><enum>(II)</enum><text display-inline="yes-display-inline">planted but not harvested; or</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="id694b4423aaa24db48f7b431b0a5757e8"><enum>(III)</enum><text display-inline="yes-display-inline">prevented from being planted because of drought, flood, or other natural disaster, as determined by the Secretary; or</text> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="id738f317e3c4840818072cb9d55cc7a0e"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a crop that is produced without a significant and variable harvesting expense, such rate as shall be determined by the Secretary.</text> </clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id278d95a8b3fd4dde9cc30c829204168e"><enum>(2)</enum><header display-inline="yes-display-inline">Premium</header><text display-inline="yes-display-inline">To be eligible to receive a payment under this subsection, a producer shall pay—</text> <subparagraph commented="no" display-inline="no-display-inline" id="id5264CFF3BE114B788DF0B85E7190D9F0"><enum>(A)</enum><text display-inline="yes-display-inline">the service fee required by subsection (k); and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEA8837338FCE4CD88959165459E7DB87"><enum>(B)</enum><text display-inline="yes-display-inline">a premium for the applicable crop year that is equal to—</text> <clause commented="no" display-inline="no-display-inline" id="id1C23E9D903A2466197AFC4508C43408A"><enum>(i)</enum><text display-inline="yes-display-inline">the product obtained by multiplying—</text> <subclause commented="no" display-inline="no-display-inline" id="idfcb92bc75ecc449bad3ce30de51a7967"><enum>(I)</enum><text display-inline="yes-display-inline">the number of acres devoted to the eligible crop;</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="id8d8b6b36cda84f7dbdbbba91665aa2fa"><enum>(II)</enum><text display-inline="yes-display-inline">the yield, as determined by the Secretary under subsection (e);</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="idc0ede37d90e846419cca2b8e97c9d046"><enum>(III)</enum><text display-inline="yes-display-inline">the coverage level elected by the producer;</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="idcec8e3233eb6422cbe06b6596030c7fd"><enum>(IV)</enum><text display-inline="yes-display-inline">the average market price, as determined by the Secretary; and</text> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="id2ffba17a736940ea834971ce90088e7e"><enum>(ii)</enum><text display-inline="yes-display-inline">5.25-percent premium fee.</text> </clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ide235c48760c840f3882ba8c60e1e4204"><enum>(3)</enum><header display-inline="yes-display-inline">Limited resource, beginning, and socially disadvantaged farmers</header><text display-inline="yes-display-inline">The additional coverage made available under this subsection shall be available to limited resource, beginning, and socially disadvantaged producers, as determined by the Secretary, in exchange for a premium that is 50 percent of the premium determined for a producer under paragraph (2).</text> </paragraph><paragraph id="id8f3a6e9c32cc4cbc84faa45c6a391b41"><enum>(4)</enum><header>Additional availability</header> <subparagraph id="id46da175b5f6f481785fe171f455e1321"><enum>(A)</enum><header>In general</header><text>As soon as practicable after October 1, 2013, the Secretary shall make assistance available to producers of an otherwise eligible crop described in subsection (a)(2) that suffered losses—</text> <clause id="idd2f80447ff4345079b26a15db6a78e49"><enum>(i)</enum><text>to a 2012 annual fruit crop grown on a bush or tree; and</text> </clause><clause id="id061ce0b8b3714fd3bb6338ec2df59594"><enum>(ii)</enum><text>in a county covered by a declaration by the Secretary of a natural disaster for production losses due to a freeze or frost.</text> </clause></subparagraph><subparagraph id="id3ae862e91b884277b8ccea81b8e5ac54"><enum>(B)</enum><header>Assistance</header><text>The Secretary shall make assistance available under subparagraph (A) in an amount equivalent to assistance available under paragraph (1), less any fees not previously paid under paragraph (2).</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id43A91AC2917A4CDAB6332C2623CFF227"><enum>(b)</enum><header display-inline="yes-display-inline">Termination date</header> <paragraph commented="no" display-inline="no-display-inline" id="id39B7940F71FC430BB0E33003C7F4DB11"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Effective October 1, 2017, subsection (a) and the amendments made by subsection (a) (other than the amendments made by clauses (i)(I) and (ii) of subsection (a)(1)(B)) are repealed</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id97F63F280C5542D2A92C9DE3703EDB77"><enum>(2)</enum><header display-inline="yes-display-inline">Administration</header><text display-inline="yes-display-inline">Effective October 1, 2017, section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333) shall be applied and administered as if subsection (a) and the amendments made by subsection (a) (other than the amendments made by clauses (i)(I) and (ii) of subsection (a)(1)(B)) had not been enacted.</text> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id28533A1CA8D644A6B021F81A4781FC32" section-type="subsequent-section"><enum>12205.</enum><header display-inline="yes-display-inline">Regional economic and infrastructure development</header><text display-inline="no-display-inline">Section 15751 of title 40, United States Code, is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="id018313722C894808AC35AC30D0AB08DF"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), by striking <quote>2012</quote> and inserting <quote>2017</quote>; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA3EF70A95FB44EE9BA7163C4A888F0B3"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)—</text> <subparagraph commented="no" display-inline="no-display-inline" id="id1B08C4E8C5034797BC2798E617995A91"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>Not more than</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id64CA0C4B6F3E47D58FACD4253E97ABFC" style="OLC"> <paragraph commented="no" display-inline="no-display-inline" id="id25324B3FB04F44A1A5A544897473B199"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), not more than</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCF21902FF8BE449592673BFD5A8238DA"><enum>(B)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idB6A43D2733BF478DB32C1261979E46FE" style="OLC"> <paragraph commented="no" display-inline="no-display-inline" id="id57E285250DD84D4E9FD2E3F9BDBBE327"><enum>(2)</enum><header display-inline="yes-display-inline">Limited funding</header><text display-inline="yes-display-inline">In a case in which less than $10,000,000 is made available to a Commission for a fiscal year under this section, paragraph (1) shall not apply.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="id364283CC7AFB46ACB1700A3A888400E2" section-type="subsequent-section"><enum>12206.</enum><header display-inline="yes-display-inline">Canada geese removal</header> <subsection commented="no" display-inline="no-display-inline" id="id7ec9934c27b94394b2460170b28f0f78"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">On a determination by the Administrator of the Federal Aviation Administration that the population of Canada geese residing on land under the jurisdiction of the National Park Service that is located within 5 miles of any commercial airport poses a risk to flight safety, the Secretary (acting through the Administrator of the Animal and Plant Health Inspection Service), in consultation with the Secretary of the Interior and the Administrator of the Federal Aviation Administration, shall—</text> <paragraph commented="no" display-inline="no-display-inline" id="id57ed2f8a213543d48bce99b620226eba"><enum>(1)</enum><text display-inline="yes-display-inline">by the first subsequent molting period for Canada geese that occurs after the date of enactment of this Act, publish a management plan that provides for the removal, by not later than 1 year after the date of publication, of all Canada geese residing on the applicable land; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id566f5f7d412442c19b692f734a059bb7"><enum>(2)</enum><text display-inline="yes-display-inline">as soon as practicable after the date of publication of the management plan under paragraph (1), commence removal of Canada geese from the applicable land.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4807963d29274f9fb2e5dbbecc27e9a9"><enum>(b)</enum><header display-inline="yes-display-inline">JFK International Airport</header><text display-inline="yes-display-inline">Not later than June 1, 2012, the Secretary (acting through the Administrator of the Animal and Plant Health Inspection Service) shall—</text> <paragraph commented="no" display-inline="no-display-inline" id="idDB7024FDAD8442C0B373643D31CE4FFC"><enum>(1)</enum><text display-inline="yes-display-inline">issue a record of decision for the document entitled <quote>Supplement to the Environmental Impact Statement Bird Hazard Reduction Program: John F. Kennedy International Airport</quote>; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3C67ECA1FD894A329EE488A8724C59F3"><enum>(2)</enum><text display-inline="yes-display-inline">commence consultation with the Secretary of the Interior to complete the collection and removal of Canada geese from the applicable National Park Service land to ensure that the removal is completed by not later than August 1, 2012.</text> </paragraph></subsection></section><section id="idA443FE9C366340FB94B46122E106BFD8"><enum>12207.</enum><header>Office of Tribal Relations</header> <subsection id="id34595656F66841D1851E87C3F846F717"><enum>(a)</enum><header>In general</header><text>Title III of the Department of Agriculture Reorganization Act of 1994 is amended by adding after section 308 (7 U.S.C. 3125a note; Public Law 103–354) the following:</text> <quoted-block display-inline="no-display-inline" id="id8C1C7752A54443FB9AA04C4FEBFBFA7E" style="OLC"> <section id="idC930B29BBD21477E88C433B9AD6E6257"><enum>309.</enum><header>Office of Tribal Relations</header><text display-inline="no-display-inline">The Secretary shall establish in the Office of the Secretary an Office of Tribal Relations.</text> </section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="idE583433AF623466EBFEB83B2432BE8EA"><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)) (as amended by section 12201(b)) is amended—</text> <paragraph id="id5712A476DA8F45D5B92B07EE00FA98B2"><enum>(1)</enum><text>in paragraph (8), by striking <quote>or</quote> at the end;</text> </paragraph><paragraph id="idC3F588CD15DE4BA88D22487AC4A245C1"><enum>(2)</enum><text>in paragraph (9), by striking the period at the end and inserting <quote>; or</quote>; and</text> </paragraph><paragraph id="idC6D1AA9035DE4A3EBA296E28A007CB3E"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id323C3A0A726948C0AB5E4AFEA2DC95AD" style="OLC"> <paragraph id="id4286101AEC31477A9D04AF15AD6F1FDF"><enum>(10)</enum><text>the authority of the Secretary to establish in the Office of the Secretary the Office of Tribal Relations in accordance with section 309.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="id7A27E15FE6384AF5B9F80435C06234E6"><enum>12208.</enum><header>Repeal of duplicative program</header> <subsection id="idC973DEBE379F428DBE1EE39EAD183F52"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Effective on the date of enactment of the Food, Conservation, and Energy Act (7 U.S.C. 8701 et seq.), section 11016 of that Act (Public Law 110–246; 122 Stat. 2130) and the amendments made by that section are repealed.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="idD5642885D3684EED8A7680B85C8C5AC5"><enum>(b)</enum><header>Application</header><text>The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.) and the Federal Meat Inspection Act (21 U.S.C. 601 et seq.) shall be applied and administered as if section 11016 of the Food, Conservation, and Energy Act (Public Law 110–246; 122 Stat. 2130) and the amendments made by that section had not been enacted.</text> </subsection></section><section id="id7294E4C827744344B1DE681237C5B60D"><enum>12209.</enum><header>Sense of the Senate</header><text display-inline="no-display-inline">It is the sense of the Senate that nothing in this Act or an amendment made by this Act should manipulate prices or interfere with the free market.</text> </section><section id="H8D421980B6D74DA685218A57471A8817"><enum>12210.</enum><header>Acer Access and Development Program</header> <subsection id="HEBB6C0AD324C45B99C4ACDF633270F7F"><enum>(a)</enum><header>Grants authorized; authorized activities</header><text display-inline="yes-display-inline">The Secretary of Agriculture may make grants to States and tribal governments to support their efforts to promote the domestic maple syrup industry through the following activities:</text> <paragraph id="H0CD4699D57D741D19CFA11467DEFE8B4"><enum>(1)</enum><text display-inline="yes-display-inline">Promotion of research and education related to maple syrup production.</text> </paragraph><paragraph id="H300F07568E5B484D98D8262748D4D07E"><enum>(2)</enum><text>Promotion of natural resource sustainability in the maple syrup industry.</text> </paragraph><paragraph id="HA514644BFE644DC8839D00332E14B46D"><enum>(3)</enum><text>Market promotion for maple syrup and maple-sap products.</text> </paragraph><paragraph id="H293010B3AADC4317A966CAF55936A149"><enum>(4)</enum><text display-inline="yes-display-inline">Encouragement of owners and operators of privately held land containing species of tree in the genus Acer—</text> <subparagraph id="HF8016C976CEF4A6EADC2BFD128CC8145"><enum>(A)</enum><text display-inline="yes-display-inline">to initiate or expand maple-sugaring activities on the land; or</text> </subparagraph><subparagraph id="HE779845F977E44B2A37011BCA65571D4"><enum>(B)</enum><text>to voluntarily make the land available, including by lease or other means, for access by the public for maple-sugaring activities.</text> </subparagraph></paragraph></subsection><subsection id="H5EBCE914FC2641A6819F20DF95D4A100"><enum>(b)</enum><header>Applications</header><text>In submitting an application for a grant under this section, a State or tribal government shall include—</text> <paragraph id="H92C4F0D0CDF94108AA9E2413D22CCAC3"><enum>(1)</enum><text>a description of the activities to be supported using the grant funds;</text> </paragraph><paragraph id="H06168F18D6814684993A356A177DCBC7"><enum>(2)</enum><text display-inline="yes-display-inline">a description of the benefits that the State or tribal government intends to achieve as a result of engaging in such activities; and</text> </paragraph><paragraph id="H19BD4942400D439EADE6526120DAAEB2"><enum>(3)</enum><text display-inline="yes-display-inline">an estimate of the increase in maple-sugaring activities or maple syrup production that the State or tribal government anticipates will occur as a result of engaging in such activities.</text> </paragraph></subsection><subsection id="H463D209860344564AF8CE9D0194C97E8"><enum>(c)</enum><header>Relationship to other laws</header><text>Nothing in this section preempts a State or tribal government law, including any State or tribal government liability law.</text> </subsection><subsection id="H8C7BF65901944E3F912702D517B55B6B"><enum>(d)</enum><header>Definition of maple sugaring</header><text>In this section, the term <term>maple-sugaring</term> means the collection of sap from any species of tree in the genus Acer for the purpose of boiling to produce food.</text> </subsection><subsection id="H851AA4F77710458190796D3DBEC6DB55"><enum>(e)</enum><header>Regulations</header><text>The Secretary of Agriculture shall promulgate such regulations as are necessary to carry out this section.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="HA5EE3C982705432C8CEAFD1CD504351A"><enum>(f)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2012 through 2015.</text> </subsection></section><section id="idC86D677205414D2E82E96ABE926591B1"><enum>12211.</enum><header>Definition of rural area for purposes of the Housing Act of 1949</header><text display-inline="no-display-inline">The second sentence of section 520 of the Housing Act of 1949 (42 U.S.C. 1490) is amended—</text> <paragraph id="id0E341A9BF953406BA66B3730E2E24609"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>1990 or 2000 decennial census shall continue to be so classified until the receipt of data from the decennial census in the year 2010</quote> and inserting <quote>1990, 2000, or 2010 decennial census, and any area deemed to be a <quote>rural area</quote> for purposes of this title under any other provision of law at any time during the period beginning January 1, 2000, and ending December 31, 2010, shall continue to be so classified until the receipt of data from the decennial census in the year 2020</quote>; and</text> </paragraph><paragraph id="id8E9681F5C7CC4825B7CAF2A8269E7B02"><enum>(2)</enum><text>by striking <quote>25,000</quote> and inserting <quote>35,000</quote>.</text> </paragraph></section><section id="idAC9E288920F74D6DAF3AAEE9AA1CBC5E"><enum>12212.</enum><header>Animal welfare</header><text display-inline="no-display-inline">Section 2(h) of the Animal Welfare Act (7 U.S.C. 2132(h)) is amended by adding <quote>an owner of a common, domesticated household pet who derives less than a substantial portion of income from a nonprimary source (as determined by the Secretary) for exhibiting an animal that exclusively resides at the residence of the pet owner,</quote> after <quote>stores,</quote>.</text> </section><section id="HCFC6F232E06340138B5945E6FA12BBC4"><enum>12213.</enum><header>Prohibition on attending an animal fight or causing a minor to attend an animal fight; enforcement of animal fighting provisions</header> <subsection id="id0B802E73D5004B44A7AAA2B16B4CBF15"><enum>(a)</enum><header>Prohibition on attending an animal fight or causing a minor To attend an animal fight</header><text display-inline="yes-display-inline">Section 26 of the Animal Welfare Act (7 U.S.C. 2156) is amended—</text> <paragraph id="H5698DE94FA214C519C5B366CFC5391EE"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="HEA1DF3CC361A44F29F70CA3C45EABCBA"><enum>(A)</enum><text display-inline="yes-display-inline">in the heading, by striking <quote><header-in-text level="subsection" style="OLC">Sponsoring or Exhibiting an Animal in</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Sponsoring or Exhibiting an Animal in, Attending, or Causing a Minor To Attend</header-in-text></quote>;</text> </subparagraph><subparagraph id="H7974BE4822794B59A90BE8FBA197A658"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text> <clause id="HBADF2F39CE714D92A95BC8E4AEFB0097"><enum>(i)</enum><text>in the heading, by striking <quote><header-in-text level="subsection" style="OLC">In general</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Sponsoring or Exhibiting</header-in-text></quote>; and</text> </clause><clause id="H39AD7DE55C8B4B08B116FE1887FEE96F"><enum>(ii)</enum><text>by striking <quote>paragraph (2)</quote> and inserting <quote>paragraph (3)</quote>;</text> </clause></subparagraph><subparagraph id="H0F9ED106CE1C484CAE04005AB8D58D01"><enum>(C)</enum><text>by redesignating paragraph (2) as paragraph (3); and</text> </subparagraph><subparagraph id="HE84C5DC0592740D489DB095A0BBF1A61"><enum>(D)</enum><text>by inserting after paragraph (1) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H3342FBAEAF7245DE8067B5D99B425876" style="OLC"> <paragraph id="H124D692697AD46D6BEDAF3D34988F54D"><enum>(2)</enum><header>Attending or causing a minor to attend</header><text display-inline="yes-display-inline">It shall be unlawful for any person to—</text> <subparagraph id="HBE11B0EDB7C449FAB1F6B1C76C6F5204"><enum>(A)</enum><text>knowingly attend an animal fighting venture; or</text> </subparagraph><subparagraph id="H1775F0EBC2DD4C0B83879D082874B31C"><enum>(B)</enum><text>knowingly cause a minor to attend an animal fighting venture.</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H5E9D0A8B26E84A3198D4A6EEB174457E"><enum>(2)</enum><text>in subsection (g), by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H907FF34E7DCD4354B68332B07625A1A0" style="OLC"> <paragraph id="HE5FD524391E34A62B05C59F3501A6BDE"><enum>(5)</enum><text display-inline="yes-display-inline">the term <term>minor</term> means a person under the age of 18 years old.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H5752F4101D644675AFF0F87C5056A94D"><enum>(b)</enum><header>Enforcement of animal fighting prohibitions</header><text display-inline="yes-display-inline">Section 49 of title 18, United States Code, is amended—</text> <paragraph id="H4FFBEC2F5E33433E886BD10B105537FA"><enum>(1)</enum><text>by striking <quote>Whoever</quote> and inserting <quote><header-in-text level="subsection" style="USC"><enum-in-header>(a) </enum-in-header>In general.—</header-in-text>Whoever</quote>;</text> </paragraph><paragraph id="H58BB51B8586541F4BBA75F2D21C8E837"><enum>(2)</enum><text>in subsection (a), as designated by paragraph (1) of this section, by striking <quote>subsection (a),</quote> and inserting <quote>subsection (a)(1),</quote>; and</text> </paragraph><paragraph id="HAA58B2692F714EF5BEC2AA27E6E82C25"><enum>(3)</enum><text>by adding at the end the following new subsections:</text> <quoted-block display-inline="no-display-inline" id="HE851D1308CF04BC98CD5E0B85C64404A" style="USC"> <subsection id="HDBBA5FAA55AF4DDCAE718B20EA3B2B09"><enum>(b)</enum><header>Attending an animal fighting venture</header><text display-inline="yes-display-inline">Whoever violates subsection (a)(2)(A) of section 26 of the Animal Welfare Act (7 U.S.C. 2156) shall be fined under this title, imprisoned for not more than 1 year, or both, for each violation.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="HD317E63F90664845A8FCB83D868C7BB1"><enum>(c)</enum><header>Causing a minor To attend an animal fighting venture</header><text display-inline="yes-display-inline">Whoever violates subsection (a)(2)(B) of section 26 (7 U.S.C. 2156) of the Animal Welfare Act shall be fined under this title, imprisoned for not more than 3 years, or both, for each violation.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="HA299C58B91E7464E85F28C862EDE2924" section-type="subsequent-section"><enum>12214.</enum><header>Prohibiting use of presidential election campaign funds for party conventions</header> <subsection id="id5D9756642B5D4BECB4E6D46D11D53FA3"><enum>(a)</enum><header>In general</header> <paragraph id="H2AB29C6B516C4B1C921BD3A2E19A68D4"><enum>(1)</enum><header>In general</header><text>Chapter 95 of the Internal Revenue Code of 1986 is amended by striking section 9008.</text> </paragraph><paragraph id="HB7BF6FE023A14347833511995B0DF9EE"><enum>(2)</enum><header>Clerical amendment</header><text>The table of sections of chapter 95 of such Code is amended by striking the item relating to section 9008.</text> </paragraph></subsection><subsection id="HE3D3FD03FA384FAE83923DC1B7408FE7"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H91D0E5B6F6EA4100AD3D96EF5C9AAC4C"><enum>(1)</enum><header>Availability of payments to candidates</header><text>The third sentence of section 9006(c) of the Internal Revenue Code of 1986 is amended by striking <quote>, section 9008(b)(3),</quote>.</text> </paragraph><paragraph id="HF729B962FCCB485EAB3BB946D55F0F5B"><enum>(2)</enum><header>Reports by Federal election commission</header><text>Section 9009(a) of such Code is amended—</text> <subparagraph id="H94F0594ED7CE4F418FE8B8222F899AF1"><enum>(A)</enum><text>by adding <quote>and</quote> at the end of paragraph (2);</text> </subparagraph><subparagraph id="HE5474E583730429F8E0FA6FF9CA2C333"><enum>(B)</enum><text>by striking the semicolon at the end of paragraph (3) and inserting a period; and</text> </subparagraph><subparagraph id="HD94B8D4281D444F3873C800788F39822"><enum>(C)</enum><text>by striking paragraphs (4), (5), and (6).</text> </subparagraph></paragraph><paragraph id="H5918E2A1EBAD44FA86336B98DDF6820E"><enum>(3)</enum><header>Penalties</header><text>Section 9012 of such Code is amended—</text> <subparagraph id="HF0EDDE4B902046D1A30B4A1A3D6783AE"><enum>(A)</enum><text>in subsection (a)(1), by striking the second sentence; and</text> </subparagraph><subparagraph id="H1F98BE1C94A0497392C80D3CE72B29B5"><enum>(B)</enum><text>in subsection (c), by striking paragraph (2) and redesignating paragraph (3) as paragraph (2).</text> </subparagraph></paragraph><paragraph id="H6A03736E1B674783AE9F778CC92D3D01"><enum>(4)</enum><header>Availability of payments from presidential primary matching payment account</header><text>The second sentence of section 9037(a) of such Code is amended by striking <quote>and for payments under section 9008(b)(3)</quote>.</text> </paragraph></subsection><subsection id="id205A50834782492FA0C584E6DC5EB260"><enum>(c)</enum><header>Return of previously submitted money for deficit reduction</header><text display-inline="yes-display-inline">Any amount which is returned by the national committee of a major party or a minor party to the general fund of the Treasury from an account established under section 9008 of the Internal Revenue Code of 1986 after the date of the enactment of this Act shall be dedicated to the sole purpose of deficit reduction.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="H51A3594336524B9F93454D06F75FC4C4"><enum>(d)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply with respect to elections occurring after December 31, 2012.</text> </subsection></section><section id="ide1dffeee4cc840e2af12fa562dfa63b8"><enum>12215.</enum><header>Reports on effects of defense and nondefense budget sequestration</header> <subsection id="ide3255df6e0a04943bfefb45071d5972c"><enum>(a)</enum><header>Findings</header><text>Congress makes the following findings:</text> <paragraph id="ide4d401c5f15e438a9928ce38c7581aa6"><enum>(1)</enum><text>The inability of the Joint Select Committee on Deficit Reduction to find $1,200,000,000,000 in savings will trigger automatic funding reductions known as <quote>sequestration</quote> to raise an equivalent level of savings between fiscal years 2013 and 2021.</text> </paragraph><paragraph id="id52ec672e292e4a77afddfd86266819db"><enum>(2)</enum><text>These savings are in addition to $900,000,000,000 in deficit reduction resulting from discretionary spending limits established by the Budget Control Act of 2011.</text> </paragraph></subsection><subsection id="idd293b66374504a06b059a52b120f8703"><enum>(b)</enum><header>Reports</header> <paragraph id="ide9075a9b9c13432cb565ae213dfdac18"><enum>(1)</enum><header>Report by the Director of the Office of Management and Budget</header> <subparagraph id="id9ED1B743AD48415DBF1AF21748EDE9B1"><enum>(A)</enum><header>In general</header><text>Not later than 30 days after the date of enactment of this Act, the Director of the Office of Management and Budget shall report upon the impact of sequestration of funds with respect to a sequestration under paragraphs (7)(A) and (8) of section 251(A) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901a) for fiscal year 2013 on January 2, 2013, using enacted levels of appropriations for accounts funded pursuant to an enacted regular appropriations bill for fiscal year 2013, and estimates pursuant to a current rate continuing resolution for accounts not funded through an enacted appropriations measure for fiscal year 2013 as the levels to which the sequestration should be applied.</text> </subparagraph><subparagraph id="id38d9ea0e6ab34fa5be2be638b1898a3c"><enum>(B)</enum><header>Elements</header><text>The report required by subparagraph (A) shall include the following:</text> <clause id="id9afca697d08b4be9b2f2a7f967102486"><enum>(i)</enum><text>Each account that would be subject to such a sequestration.</text> </clause><clause id="ide9dd5eca7fa04568be886b93e2839594"><enum>(ii)</enum><text>Each account that would be subject to such a sequestration but subject to a special rule under section 255 or 256 of the Balanced Budget and Emergency Deficit Control Act of 1985 (and the citation to such rule).</text> </clause><clause id="ida1c9822eed344cc09d8ef91a58e221c0"><enum>(iii)</enum><text>Each account that would be exempt from such a sequestration.</text> </clause><clause id="idd40b1120eed54d699d96e17474da91ec"><enum>(iv)</enum><text>Any other data or information that would enhance public understanding of the sequester and its effect on the defense and nondefense functions of the Federal Government including the impact on essential public safety responsibilities such as homeland security, food safety, and air traffic control activities.</text> </clause></subparagraph><subparagraph id="idff73de4d91414909be07bf56632862ea"><enum>(C)</enum><header>Catagorize and group</header><text>The report required under this paragraph shall categorize and group the listed accounts by the appropriations Act covering such accounts.</text> </subparagraph></paragraph><paragraph id="ide2947e1874a54ac9a9eb82b4e8c8afbc"><enum>(2)</enum><header>Report by the President</header> <subparagraph id="id46E7AD168B35487186A306298BCEF39A"><enum>(A)</enum><header>In general</header><text>Not later than 60 days after the date of the enactment of this Act, or by October 30, 2012, whichever is earlier, the President shall submit to Congress a detailed report on the sequestration required by paragraphs (7)(A) and (8) of section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901a) for fiscal year 2013 on January 2, 2013.</text> </subparagraph><subparagraph id="id3bd0f54b712045b19f8585a5eb26650c"><enum>(B)</enum><header>Elements</header><text>The reports required by subparagraph (A) shall include—</text> <clause id="idd96c47ad204841639ea27ddee5a0b330"><enum>(i)</enum><text>for discretionary appropriations—</text> <subclause id="idec7746a8bcf945748fa868bf7e3eba9e"><enum>(I)</enum><text>an estimate for each category, of the sequestration percentages and amounts necessary to achieve the required reduction; and</text> </subclause><subclause id="id23cc220cd6554f37adf9e3bf0200cf98"><enum>(II)</enum><text>an identification of each account to be sequestered and estimates of the level of sequestrable budgetary resources and resulting outlays and the amount of budgetary resources to be sequestered and resulting outlay reductions at the program, project, and activity level, using enacted levels of appropriations for accounts funded pursuant to an enacted regular appropriations bill for fiscal year 2013, and estimates pursuant to a current rate continuing resolution for accounts not funded through an enacted appropriations measure for fiscal year 2013;</text> </subclause></clause><clause id="id1c394a86da924d2f91f7e5a0365d1956"><enum>(ii)</enum><text>for non-defense discretionary spending only—</text> <subclause id="id4fc1a1e6d5b0499ba4ff2ef19e3b881b"><enum>(I)</enum><text>a list of the programs, projects, and activities that would be reduced or terminated;</text> </subclause><subclause id="idbde6df95ca82486db4c0798f17aa4758"><enum>(II)</enum><text>an assessment of the jobs lost directly though program and personnel cuts;</text> </subclause><subclause id="idf2c4f33fe86f47748e758fb9d2ef64a0"><enum>(III)</enum><text>an estimate of the impact program cuts would have on the long-term competitiveness of the United States and its ability to maintain its lead on research and development, as well as the impact on our national goal to graduate the most students with degrees in in-demand fields;</text> </subclause><subclause id="id1220fd61363e4dc7aa24dff7fc138aca"><enum>(IV)</enum><text>an assessment of the impact of program cuts to education funding across the country, including estimates on teaching jobs lost, the number of students cut off programs they depend on, and education resources lost by States and local educational agencies;</text> </subclause><subclause id="id6cd85994c904435586beb54a60d59c28"><enum>(V)</enum><text>an analysis of the impact of cuts to programs middle class families and the most vulnerable families depend on, including estimates of how many families would lose access to support for children, housing and nutrition assistance, and skills training to help workers get better jobs;</text> </subclause><subclause id="id680442d142874a83ace399e84280eb9b"><enum>(VI)</enum><text>an analysis of the impact on small business owners’ ability to access credit and support to expand and create jobs;</text> </subclause><subclause id="id2f72b11bccc64a98a25b24168d1ab281"><enum>(VII)</enum><text>an assessment of the impact to public safety, including an estimate of the reduction of police officers, emergency medical technicians, and firefighters;</text> </subclause><subclause id="id79113cfedd9b4595a7016749a2a4cbe3"><enum>(VIII)</enum><text>a review of the health and safety impact of cuts on communities, including the impact on food safety, national border security, and environmental cleanup;</text> </subclause><subclause id="id101988f910cf4afabdd62a5f34a39b7f"><enum>(IX)</enum><text>an assessment of the impact of sequestration on environmental programs that protect the Nation’s air and water, and safeguard children and families;</text> </subclause><subclause id="ide85c0d85529e4e01892bc642985aa82d"><enum>(X)</enum><text>assessment of the impact of sequestration on the Nation’s infrastructure, including how cuts would harm the ability of States and communities to invest in roads, bridges, and waterways;</text> </subclause><subclause id="id4d64be723b064488b9bd3473394ecc7b"><enum>(XI)</enum><text>an assessment of the impact on ongoing government operations and the safety of Federal Government personnel;</text> </subclause><subclause id="id2eed9ff2b11744eeb11081d9c9c25417"><enum>(XII)</enum><text>a detailed estimate of the reduction in force of civilian personnel as a result of sequestration, including the estimated timing of such reduction in force actions and the timing of reduction in force notifications thereof; and</text> </subclause><subclause id="id1513de6fb36c468ead6cbd49b5a5772b"><enum>(XIII)</enum><text>an estimate of the number and value of all contracts that will be terminated, restructured, or revised in scope as a result of sequestration, including an estimate of potential termination costs and of increased contract costs due to renegotiation and reinstatement of contracts;</text> </subclause></clause><clause id="id7de4ce4bd5414a6daadd38580deb5de7"><enum>(iii)</enum><text>for direct spending—</text> <subclause id="id69ded09a294542e29a8cc016bfa9b237"><enum>(I)</enum><text>an estimate for the defense and nondefense functions based on current law of the sequestration percentages and amount necessary to achieve the required reduction;</text> </subclause><subclause id="id6c3c9c86b1d248b7994fa784f47b235d"><enum>(II)</enum><text>a specific identification of the reductions required for each nonexempt direct spending account at the program, project, and activity level; and</text> </subclause><subclause id="id230b8b43c6f048ef8a2cae4c1e6b9928"><enum>(III)</enum><text>a specific identification of exempt direct spending accounts at the program, project, and activity level; and</text> </subclause></clause><clause id="id6ff5c8b229a1413385828dfed52ae24f"><enum>(iv)</enum><text>any other data or information that would enhance public understanding of the sequester and its effect on the defense and nondefense functions of the Federal Government including the impact on essential public safety responsibilities such as—</text> <subclause id="id2C3CA0CDE2C344389EC11E36762F0583"><enum>(I)</enum><text>homeland security, food safety, and air traffic control activities;</text> </subclause><subclause id="id8811D67B8251479787E71B71EE2A0C06"><enum>(II)</enum><text>an assessment of the impact of cuts to programs that the Nation’s farmers rely on to help them through difficult economic times; and</text> </subclause><subclause id="id42E44D947B2B46F4A7816A221011FA73"><enum>(III)</enum><text>an assessment of the impact of Medicare cuts to the ability for seniors to access care.</text> </subclause></clause></subparagraph></paragraph><paragraph id="idf4c6306d30c443c7b5c2789ada0edea6"><enum>(3)</enum><header>Report by the Secretary of Defense</header> <subparagraph id="id7C7FB08FE6F84E4DA8660BEA8BB18DDA"><enum>(A)</enum><header>In general</header><text>Not later than August 15, 2012, the Secretary of Defense shall report on the impact on national defense accounts as defined by paragraphs (7)(A) and (8) of section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901a) using enacted levels of appropriations for accounts funded pursuant to an enacted regular appropriations bill for fiscal year 2013, and estimates pursuant to a current rate continuing resolution for accounts not funded through an enacted appropriations measure for fiscal year 2013 as the levels to which the sequestration should be applied.</text> </subparagraph><subparagraph id="idc585f4fe684c4a528262962b01e63998"><enum>(B)</enum><header>Elements of the defense reports</header><text>The report required by subparagraph (A) shall include the following:</text> <clause id="id5474f3b547fd4354b1a1372b6fb0dd03"><enum>(i)</enum><text>An assessment of the impact on ongoing operations and the safety of United States military and civilian personnel.</text> </clause><clause id="id4cf0788ddbc34e42abb7ead9a50b1f5a"><enum>(ii)</enum><text>An assessment of the impact on the readiness of the Armed Forces, including impacts to steaming hours, flying hours, and full spectrum training miles, and an estimate of the increase or decrease in readiness (as defined in the C status C–1 through C–5).</text> </clause><clause id="id1b06028c44894bf79c4386437c373bba"><enum>(iii)</enum><text>A detailed estimate of the reduction in force of civilian personnel, including the estimated timing of such reduction in force actions and timing of reduction in force notifications thereof.</text> </clause><clause id="idf730b3e58ff44e478dfb8c3f0b7ff6da"><enum>(iv)</enum><text>A list of the programs, projects, and activities of the Department of Defense that would be reduced or terminated and the expected savings for each program, project and activity.</text> </clause><clause id="id0cbc7812e2ea4f348e4d26df8be7f170"><enum>(v)</enum><text>An estimate of the number and value of all contracts that will be terminated, restructured, or revised in scope, including an estimate of potential termination costs and of increased contract costs due to renegotiation and reinstatement of contracts.</text> </clause><clause id="id471afe1575ec485883786ede49b28901"><enum>(vi)</enum><text>An assessment of the impact on the ability of the Department of Defense to carry out the National Military Strategy of the United States, and any changes to the most recent Risk Assessment of the Chairman of the Joint Chiefs of Staff under section 153(b) of title 10, United States Code, arising from sequestration.</text> </clause></subparagraph></paragraph></subsection></section></subtitle>

Passed the Senate June 21, 2012.

Secretary

July 10, 2012

Ordered to be printed as passed