    [Congressional Bills 113th Congress]
    [From the U.S. Government Publishing Office]
    [H.R. 2642 Engrossed Amendment Senate (EAS)]

                      In the Senate of the United States,

                                                             July 18, 2013.
        Resolved, That the bill from the House of Representatives (H.R.
    2642) entitled ``An Act to provide for the reform and continuation of
    agricultural and other programs of the Department of Agriculture
    through fiscal year 2018, and for other purposes.'', do pass with the
    following

                                   AMENDMENT:

                Strike out all after the enacting clause and insert:

    SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

        (a) In General.--This Act may be cited as the ``Agriculture Reform,
    Food, and Jobs Act of 2013''.
        (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. Base acres.
    Sec. 1106. Payment yields.
    Sec. 1107. Availability of adverse market payments.
    Sec. 1108. Agriculture risk coverage.
    Sec. 1109. Producer agreement required as condition of provision of
                                payments.
    Sec. 1110. Period of effectiveness.

      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. Economic adjustment assistance to users of 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 program pre-hearing procedure
                                for Class III pricing.

     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. Emergency watershed protection program.
    Sec. 2507. Terminal lakes assistance.
    Sec. 2508. Study of potential improvements to the wetland mitigation
                                process.
    Sec. 2509. Soil and water resource conservation.

                     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.
    Sec. 2610. Adjusted gross income limitation for conservation programs.

     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. Under Secretary of Agriculture for Trade and Foreign
                                Agricultural Affairs.

                              TITLE IV--NUTRITION

             Subtitle A--Supplemental Nutrition Assistance Program

    Sec. 4001. Access to Grocery Delivery for Homebound Seniors and
                                Individuals with Disabilities eligible for
                                supplemental nutrition assistance benefits.
    Sec. 4002. Food distribution program on Indian reservations.
    Sec. 4003. Standard utility allowances based on the receipt of energy
                                assistance payments.
    Sec. 4004. Eligibility disqualifications.
    Sec. 4005. Ending supplemental nutrition assistance program benefits
                                for lottery or gambling winners.
    Sec. 4006. Retail food stores.
    Sec. 4007. Improving security of food assistance.
    Sec. 4008. Technology modernization for retail food stores.
    Sec. 4009. Use of benefits for purchase of community-supported
                                agriculture share.
    Sec. 4010. Restaurant meals program.
    Sec. 4011. Quality control standards.
    Sec. 4012. Performance bonus payments.
    Sec. 4013. Funding of employment and training programs.
    Sec. 4014. Authorization of appropriations.
    Sec. 4015 Assistance for community food projects.
    Sec. 4016. Emergency food assistance.
    Sec. 4017. Nutrition education.
    Sec. 4018. Retail food store and recipient trafficking.
    Sec. 4019. Technical and conforming amendments.
    Sec. 4020. Eligibility disqualifications for certain convicted felons.

                  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. Processing of commodities.

                           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. Hunger-free communities.
    Sec. 4205. Healthy Food Financing Initiative.
    Sec. 4206. Pulse crop products.
    Sec. 4207. Dietary Guidelines for Americans.
    Sec. 4208. Purchases of locally produced foods.
    Sec. 4209. Multiagency task force.
    Sec. 4210. Food and Agriculture Service Learning Program.

                                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.
    Sec. 5104. Compensation disclosure by Farm Credit System institutions.

                          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. Definition of rural area for purposes of the Housing Act of
                                1949.
    Sec. 6203. Rural energy savings program.
    Sec. 6204. Funding of pending rural development loan and grant
                                applications.
    Sec. 6205. Study of rural transportation issues.
    Sec. 6206. Agricultural transportation policy.
    Sec. 6207. Value-added agricultural market development program grants.

              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. Agricultural Genome Initiative.
    Sec. 7208. High-priority research and extension initiatives.
    Sec. 7209. Organic agriculture research and extension initiative.
    Sec. 7210. Farm business management.
    Sec. 7211. Regional centers of excellence.
    Sec. 7212. Assistive technology program for farmers with disabilities.
    Sec. 7213. 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. Agricultural and food law research, legal tools, and
                                information.

                              TITLE VIII--FORESTRY

                Subtitle A--Repeal of Certain Forestry Programs

    Sec. 8001. Forest land enhancement program.
    Sec. 8002. Hispanic-serving institution agricultural land national
                                resources leadership program.
    Sec. 8003. 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.

           Subtitle C--Reauthorization of Other Forestry-Related Laws

    Sec. 8201. Rural revitalization technologies.
    Sec. 8202. Office of International Forestry.
    Sec. 8203. Insect and disease infestation.
    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.
    Sec. 8303. Reimbursement of fire funds.

                                TITLE IX--ENERGY

    Sec. 9001. Definitions.
    Sec. 9002. Biobased markets program.
    Sec. 9003. Biorefinery, renewable chemical, and biobased product
                                manufacturing assistance.
    Sec. 9004. Bioenergy program for advanced biofuels.
    Sec. 9005. Biodiesel fuel education program.
    Sec. 9006. Rural Energy for America Program.
    Sec. 9007. Biomass research and development.
    Sec. 9008. Feedstock flexibility program for bioenergy producers.
    Sec. 9009. Biomass Crop Assistance Program.
    Sec. 9010. Repeal of forest biomass for energy.
    Sec. 9011. Community wood energy program.
    Sec. 9012. 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. Removal of AMS inspection authority over apples in bulk
                                bins.
    Sec. 10012. Organic product promotion orders.
    Sec. 10013. Effective date.

                            TITLE XI--CROP INSURANCE

    Sec. 11001. Supplemental coverage option.
    Sec. 11002. Crop margin coverage option.
    Sec. 11003. Premium amounts for catastrophic risk protection.
    Sec. 11004. Permanent enterprise unit.
    Sec. 11005. Enterprise units for irrigated and nonirrigated crops.
    Sec. 11006. Data collection.
    Sec. 11007. Adjustment in actual production history to establish
                                insurable yields.
    Sec. 11008. Submission and review of policies.
    Sec. 11009. Board review and approval.
    Sec. 11010. Consultation.
    Sec. 11011. Budget limitations on renegotiation of the Standard
                                Reinsurance Agreement.
    Sec. 11012. Test weight for corn.
    Sec. 11013. Stacked Income Protection Plan for producers of upland
                                cotton.
    Sec. 11014. Peanut revenue crop insurance.
    Sec. 11015. Authority to correct errors.
    Sec. 11016. Implementation.
    Sec. 11017. Crop insurance fraud.
    Sec. 11018. Approval of costs for research and development.
    Sec. 11019. Whole farm risk management insurance.
    Sec. 11020. Study of food safety insurance.
    Sec. 11021. Crop insurance for livestock.
    Sec. 11022. Margin coverage for catfish.
    Sec. 11023. Poultry business disruption insurance policy.
    Sec. 11024. Study of crop insurance for seafood harvesters.
    Sec. 11025. Biomass and sweet sorghum energy crop insurance policies.
    Sec. 11026. Alfalfa crop insurance policy.
    Sec. 11027. Crop insurance for organic crops.
    Sec. 11028. Research and development.
    Sec. 11029. Pilot programs.
    Sec. 11030. Index-based weather insurance pilot program.
    Sec. 11031. Enhancing producer self-help through farm financial
                                benchmarking.
    Sec. 11032. Beginning farmer and rancher provisions.
    Sec. 11033. Limitation on premium subsidy based on average adjusted
                                gross income.
    Sec. 11034. Agricultural management assistance, risk management
                                education, and organic certification cost
                                share assistance.
    Sec. 11035. Crop production on native sod.
    Sec. 11036. Technical amendments.
    Sec. 11037. Greater accessibility for crop insurance.
    Sec. 11038. GAO crop insurance fraud report.

                            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. Socially disadvantaged farmers and ranchers policy research
                                center.
    Sec. 12003. 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.
    Sec. 12106. National animal health laboratory network.
    Sec. 12107. National poultry improvement plan (NPIP).

                   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. Bioenergy coverage in noninsured crop assistance program.
    Sec. 12206. Regional economic and infrastructure development.
    Sec. 12207. Office of Tribal Relations.
    Sec. 12208. Acer access and development program.
    Sec. 12209. Prohibition on attending an animal fight or causing a minor
                                to attend an animal fight; enforcement of
                                animal fighting provisions.
    Sec. 12210. Pima cotton trust fund.
    Sec. 12211. Agriculture wool apparel manufacturers trust fund.
    Sec. 12212. Citrus disease research and development trust fund.

    SEC. 2. DEFINITION OF SECRETARY.

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

                          TITLE I--COMMODITY PROGRAMS

                        Subtitle A--Repeals and Reforms

    SEC. 1101. REPEAL OF DIRECT PAYMENTS.

        (a) Repeal.--Sections 1103 and 1303 of the Food, Conservation, and
    Energy Act of 2008 (7 U.S.C. 8713, 8753) are repealed.
        (b) Continued Application for 2013 Crop Year.--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 2013 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.

    SEC. 1102. REPEAL OF COUNTER-CYCLICAL PAYMENTS.

        (a) Repeal.--Sections 1104 and 1304 of the Food, Conservation, and
    Energy Act of 2008 (7 U.S.C. 8714, 8754) are repealed.
        (b) Continued Application for 2013 Crop Year.--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 2013 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.

    SEC. 1103. REPEAL OF AVERAGE CROP REVENUE ELECTION PROGRAM.

        (a) Repeal.--Section 1105 of the Food, Conservation, and Energy Act
    of 2008 (7 U.S.C. 8715) is repealed.
        (b) Continued Application for 2013 Crop Year.--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 2013 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.

    SEC. 1104. DEFINITIONS.

        In this subtitle, subtitle B, and subtitle F:
                (1) Actual crop revenue.--The term ``actual crop revenue'',
            with respect to a covered commodity for a crop year, means the
            amount determined by the Secretary under section 1108(c)(3).
                (2) Adverse market payment.--The term ``adverse market
            payment'' means a payment made to producers on a farm under
            section 1107.
                (3) Agriculture risk coverage guarantee.--The term
            ``agriculture risk coverage guarantee'', with respect to a
            covered commodity for a crop year, means the amount determined
            by the Secretary under section 1108(c)(4).
                (4) Agriculture risk coverage payment.--The term
            ``agriculture risk coverage payment'' means a payment under
            section 1108(c).
                (5) Average individual yield.--The term ``average
            individual yield'' 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.
                (6) Base acres.--The term ``base acres'', with respect to a
            covered commodity on a farm, means the number of acres
            established under section 1101 or 1302 of the Farm Security and
            Rural Investment Act of 2002 (7 U.S.C. 7911, 7952) as in effect
            on the date of enactment of this Act, subject to any adjustment
            under section 1105 of this Act.
                (7) County coverage.--For the purposes of agriculture risk
            coverage under section 1108, the term ``county coverage'' 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.
                (8) Covered commodity.--
                        (A) In general.--The term ``covered commodity''
                    means wheat, corn, grain sorghum, barley, oats, long
                    grain rice, medium grain rice, pulse crops, soybeans,
                    other oilseeds, and peanuts.
                        (B) Popcorn.--The Secretary--
                                (i) shall study the feasibility of
                            including popcorn as a covered commodity by
                            2014; and
                                (ii) if the Secretary determines it to be
                            feasible, shall designate popcorn as a covered
                            commodity.
                (9) Eligible acres.--
                        (A) In general.--Except as provided in
                    subparagraphs (B) through (D), the term ``eligible
                    acres'' means all acres planted or prevented from being
                    planted to all covered commodities on a farm in any
                    crop year.
                        (B) Maximum.--Except as provided in subparagraph
                    (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.
                        (C) Adjustment.--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:
                                (i) 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--
                                        (I) the total base acreage for the
                                    farm, less any upland cotton base
                                    acreage, that was suspended during the
                                    conservation reserve contract; or
                                        (II) the product obtained by
                                    multiplying--
                                                (aa) the average proportion
                                            that--

                                                        (AA) the total
                                                    number of acres planted
                                                    to covered commodities
                                                    and upland cotton in
                                                    the county for crop
                                                    years 2009 through
                                                    2012; bears to

                                                        (BB) the total
                                                    number of all acres of
                                                    covered commodities,
                                                    grassland, and upland
                                                    cotton acres in the
                                                    county for the same
                                                    crop years; by

                                                (bb) the total acres for
                                            which coverage has expired,
                                            voluntarily terminated, or been
                                            released under the conservation
                                            reserve contract.
                                (ii) 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)).
                                (iii) 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.
                        (D) Exclusion.--The term ``eligible acres'' 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.
                (10) Extra long staple cotton.--The term ``extra long
            staple cotton'' means cotton that--
                        (A) 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
                        (B) is ginned on a roller-type gin or, if
                    authorized by the Secretary, ginned on another type gin
                    for experimental purposes.
                (11) Individual coverage.--For purposes of agriculture risk
            coverage under section 1108, the term ``individual coverage''
            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.
                (12) Medium grain rice.--The term ``medium grain rice''
            includes short grain rice.
                (13) Other oilseed.--The term ``other oilseed'' means a
            crop of sunflower seed, rapeseed, canola, safflower, flaxseed,
            mustard seed, crambe, sesame seed, or any oilseed designated by
            the Secretary.
                (14) Payment acres.--The term ``payment acres'' means, in
            the case of adverse market payments, 85 percent of the base
            acres for a covered commodity on a farm on which adverse market
            payments are made.
                (15) Payment yield.--The term ``payment yield'' means the
            yield established for adverse market payments under section
            1102 or 1302 of the Farm Security and Rural Investment Act of
            2002 (7 U.S.C. 7912, 7952) as in effect on the date of
            enactment of this Act, or under section 1106 of this Act, for a
            farm for a covered commodity.
                (16) Producer.--
                        (A) In general.--The term ``producer'' 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.
                        (B) Hybrid seed.--In determining whether a grower
                    of hybrid seed is a producer, the Secretary shall--
                                (i) not take into consideration the
                            existence of a hybrid seed contract; and
                                (ii) ensure that program requirements do
                            not adversely affect the ability of the grower
                            to receive a payment under this title.
                (17) Pulse crop.--The term ``pulse crop'' means dry peas,
            lentils, small chickpeas, and large chickpeas.
                (18) State.--The term ``State'' means--
                        (A) a State;
                        (B) the District of Columbia;
                        (C) the Commonwealth of Puerto Rico; and
                        (D) any other territory or possession of the United
                    States.
                (19) Reference price.--The term ``reference price'' means
            the price per bushel, pound, or hundredweight (or other
            appropriate unit) of a covered commodity used to determine the
            payment rate for adverse market payments.
                (20) Transitional yield.--The term ``transitional yield''
            has the meaning given the term in section 502(b) of the Federal
            Crop Insurance Act (7 U.S.C. 1502(b)).
                (21) United states.--The term ``United States'', when used
            in a geographical sense, means all of the States.
                (22) United states premium factor.--The term ``United
            States Premium Factor'' means the percentage by which the
            difference in the United States loan schedule premiums for
            Strict Middling (SM) 1\1/8\-inch upland cotton and for Middling
            (M) 1\3/32\-inch upland cotton exceeds the difference in the
            applicable premiums for comparable international qualities.

    SEC. 1105. BASE ACRES.

        (a) Adjustment of Base Acres.--
                (1) In general.--The Secretary shall provide for an
            adjustment, as appropriate, in the base acres for covered
            commodities for a farm whenever any of the following
            circumstances occurs:
                        (A) A conservation reserve contract entered into
                    under section 1231 of the Food Security Act of 1985 (16
                    U.S.C. 3831) with respect to the farm expires or is
                    voluntarily terminated, or was terminated or expired
                    during the period beginning on October 1, 2012, and
                    ending on the date of enactment of this Act.
                        (B) Cropland is released from coverage under a
                    conservation reserve contract by the Secretary, or was
                    released during the period beginning on October 1,
                    2012, and ending on the date of enactment of this Act.
                        (C) The producer has eligible pulse crop acreage,
                    which shall be determined in the same manner as
                    eligible oilseed acreage under section 1101(a)(2) of
                    the Farm Security and Rural Investment Act of 2002 (7
                    U.S.C. 7911(a)(2)).
                        (D) 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)(2) of
                    the Farm Security and Rural Investment Act of 2002 (7
                    U.S.C. 7911(a)(2)).
                (2) Special conservation reserve acreage payment rules.--
            For the crop year in which a base acres adjustment under
            subparagraph (A) or (B) of paragraph (1) is first made, the
            producer on the farm shall elect to receive either adverse
            market payments with respect to the acreage added to the farm
            under this subsection or a prorated payment under the
            conservation reserve contract, but not both.
                (3) Optional adjustment.--
                        (A) Election.--
                                (i) In general.--For the purpose of making
                            adverse market payments, the Secretary shall
                            give a producer on a farm a 1-time opportunity
                            to adjust the peanut base acres on the farm.
                                (ii) Notice.--As soon as practicable after
                            the date of enactment of this Act, the
                            Secretary shall provide notice of the election
                            described in clause (i) to producers on farms
                            with peanut base acres, including--
                                        (I) the manner in which the
                                    election is to be transmitted to the
                                    Secretary;
                                        (II) a deadline for transmission;
                                    and
                                        (III) notification that the
                                    election is a 1-time opportunity.
                                (iii) Effect of failure to make election.--
                            If the producer on a farm fails to notify the
                            Secretary of an election by the deadline
                            described in clause (ii), the producer shall be
                            considered to have not elected to update the
                            peanut base acres on the farm.
                        (B) Calculation.--
                                (i) In general.--If the producer on a farm
                            makes the election described in subparagraph
                            (A), the base acres for peanuts on the farm
                            established pursuant to section 1302 of the
                            Farm Security and Rural Investment Act of 2002
                            (7 U.S.C. 7952) shall be equal to the average
                            acreage planted on the farm to peanuts for
                            harvest or similar purposes for the 2009
                            through 2012 crop years, as determined by the
                            Secretary.
                                (ii) Inclusions.--In making the calculation
                            described in clause (i), the Secretary shall
                            include--
                                        (I) any acreage on the farm that
                                    the producer was prevented from
                                    planting to peanuts during the 2009
                                    through 2012 crop years because of
                                    drought, flood, or other natural
                                    disaster, or other condition beyond the
                                    control of the producer;
                                        (II) any crop year in which peanuts
                                    were not planted on the farm; and
                                        (III) any adjustment, as
                                    appropriate, whenever either of the
                                    following occurs:
                                                (aa) A conservation reserve
                                            contract entered into under
                                            section 1231 of the Food
                                            Security Act of 1985 (16 U.S.C.
                                            3831) with respect to the
                                            peanut base acres on the farm
                                            expires or is voluntarily
                                            terminated.
                                                (bb) Peanut cropland is
                                            released from coverage under a
                                            conservation reserve contract
                                            by the Secretary.
                        (C) Limit.--
                                (i) In general.--If the producer on a farm
                            makes the election described in subparagraph
                            (A), the Secretary shall ensure that the
                            adjustment does not result in a net increase in
                            the total base acres for the farm (including
                            the upland cotton base acres described in
                            subsection (e)).
                                (ii) Reduction required.--If the adjustment
                            in base acres made pursuant to an election
                            described in subparagraph (A) results in a net
                            increase in the total base acres of all covered
                            commodities and upland cotton on the farm, the
                            Secretary shall reduce the base acres on the
                            farm for all covered commodities (other than
                            peanuts) and upland cotton proportionately, as
                            determined by the Secretary.
        (b) Prevention of Excess Base Acres.--
                (1) Required reduction.--If the sum of the base acres for a
            farm, together with the acreage described in paragraph (2),
            exceeds the actual cropland acreage of the farm, the Secretary
            shall reduce the base acres for 1 or more covered commodities
            for the farm so that the sum of the base acres and acreage
            described in paragraph (2) does not exceed the actual cropland
            acreage of the farm.
                (2) Other acreage.--For purposes of paragraph (1), the
            Secretary shall include the following:
                        (A) Any acreage on the farm enrolled in the
                    conservation reserve program or agricultural
                    conservation easement program under subchapter B of
                    chapter 1 of subtitle D and subtitle H, respectively,
                    of title XII of the Food Security Act of 1985 (16
                    U.S.C. 3831 et seq.).
                        (B) Any other acreage on the farm enrolled in a
                    Federal conservation program for which payments are
                    made in exchange for not producing an agricultural
                    commodity on the acreage.
                        (C) Any eligible pulse crop acreage, which shall be
                    determined in the same manner as eligible oilseed
                    acreage under section 1101(a)(2) of the Farm Security
                    and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
                        (D) If the Secretary designates additional
                    oilseeds, any eligible oilseed acreage, which shall be
                    determined in the same manner as eligible oilseed
                    acreage under section 1101(a)(2) of the Farm Security
                    and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
                (3) Selection of acres.--The Secretary shall give the
            producer on the farm the opportunity to select the base acres
            for a covered commodity for the farm against which the
            reduction required by paragraph (1) will be made.
                (4) Exception for double-cropped acreage.--In applying
            paragraph (1), the Secretary shall make an exception in the
            case of double cropping, as determined by the Secretary.
        (c) Reduction in Base Acres.--
                (1) Reduction at option of producer.--
                        (A) In general.--The producer on a farm may reduce,
                    at any time, the base acres for any covered commodity
                    for the farm.
                        (B) Effect of reduction.--A reduction under
                    subparagraph (A) shall be permanent and made in a
                    manner prescribed by the Secretary.
                (2) Required action by secretary.--
                        (A) In general.--The Secretary shall
                    proportionately reduce base acres on a farm for covered
                    commodities for land that has been subdivided and
                    developed for multiple residential units or other
                    nonfarming uses if the size of the tracts and the
                    density of the subdivision is such that the land is
                    unlikely to return to the previous agricultural use,
                    unless the producers on the farm demonstrate that the
                    land--
                                (i) remains devoted to commercial
                            agricultural production; or
                                (ii) is likely to be returned to the
                            previous agricultural use.
                        (B) Requirement.--The Secretary shall establish
                    procedures to identify land described in subparagraph
                    (A).
                (3) Review and report.--Each year, to ensure, to the
            maximum extent practicable, that payments are received only by
            producers, the Secretary shall submit to Congress a report that
            describes the results of the actions taken under paragraph (2).
        (d) Treatment of Farms With Limited Base Acres.--
                (1) Prohibition on payments.--Except as provided in
            paragraph (2) and notwithstanding any other provision of this
            title, a producer on a farm may not receive adverse market
            payments if the sum of the base acres of the farm is 10 acres
            or less, as determined by the Secretary.
                (2) Exceptions.--Paragraph (1) shall not apply to a farm
            owned or operated by--
                        (A) a socially disadvantaged farmer (as defined in
                    section 3002 of the Consolidated Farm and Rural
                    Development Act); or
                        (B) a limited resource farmer or rancher, as
                    defined by the Secretary.
                (3) Data collection and publication.--The Secretary shall--
                        (A) collect and publish segregated data and survey
                    information about farm profiles, utilization of land,
                    and crop production; and
                        (B) perform an evaluation on the supply and price
                    of fruits and vegetables based on the effects of
                    suspension of base acres under this section.
        (e) Treatment of Farms With Upland Cotton Base Acres.--The
    Secretary shall maintain a record of farms with upland cotton base
    acres in effect on the day before the date of enactment of this Act.

    SEC. 1106. PAYMENT YIELDS.

        (a) Designated Oilseed or Eligible Pulse Crop.--
                (1) Adjustment.--For the purpose of making adverse market
            payments under this subtitle, the Secretary shall provide for
            the establishment of a yield for each farm for any designated
            oilseed or eligible pulse crop for which a payment yield was
            not established under section 1102 of the Farm Security and
            Rural Investment Act of 2002 (7 U.S.C. 7912) in accordance with
            this section.
                (2) Payment yields for designated oilseeds and eligible
            pulse crops.--
                        (A) Determination of average yield.--In the case of
                    designated oilseeds and eligible pulse crops, the
                    Secretary shall determine the average yield per planted
                    acre for the designated oilseed or pulse crop on a farm
                    for the 1998 through 2001 crop years, excluding any
                    crop year in which the acreage planted to the
                    designated oilseed or pulse crop was zero.
                        (B) Adjustment for payment yield.--
                                (i) In general.--The payment yield for a
                            farm for a designated oilseed or eligible pulse
                            crop shall be equal to the product of the
                            following:
                                        (I) The average yield for the
                                    designated oilseed or pulse crop
                                    determined under subparagraph (A).
                                        (II) The ratio resulting from
                                    dividing the national average yield for
                                    the designated oilseed or pulse crop
                                    for the 1981 through 1985 crops by the
                                    national average yield for the
                                    designated oilseed or pulse crop for
                                    the 1998 through 2001 crops.
                                (ii) No national average yield information
                            available.--To the extent that national average
                            yield information for a designated oilseed or
                            pulse crop is not available, the Secretary
                            shall use such information as the Secretary
                            determines to be fair and equitable to
                            establish a national average yield under this
                            section.
                        (C) Use of partial county average yield.--If the
                    yield per planted acre for a crop of a designated
                    oilseed or pulse crop for a farm for any of the 1998
                    through 2001 crop years was less than 75 percent of the
                    county yield for that designated oilseed or pulse crop,
                    the Secretary shall assign a yield for that crop year
                    equal to 75 percent of the county yield for the purpose
                    of determining the average under subparagraph (A).
                        (D) No historic yield data available.--In the case
                    of establishing yields for designated oilseeds and
                    eligible pulse crops, if historic yield data is not
                    available, the Secretary shall use the ratio for dry
                    peas calculated under subparagraph (B)(i)(II) in
                    determining the yields for designated oilseeds and
                    eligible pulse crops, as determined to be fair and
                    equitable by the Secretary.
        (b) Rice.--
                (1) Adjustment.--For the purpose of making adverse market
            payments under this subtitle, the Secretary shall give a
            producer on a farm a 1-time opportunity to adjust the payment
            yield for base acres of rice on the farm that was established
            under section 1102 of the Farm Security and Rural Investment
            Act of 2002 (7 U.S.C. 7912).
                (2) Election.--
                        (A) Notice.--As soon as practicable after the date
                    of enactment of this Act, the Secretary shall provide
                    notice of the election described in paragraph (1) to
                    producers on farms with rice base acres, including--
                                (i) the manner in which the election is to
                            be transmitted to the Secretary;
                                (ii) a deadline for transmission; and
                                (iii) notification that the election is a
                            1-time opportunity.
                        (B) Effect of failure to make election.--If the
                    producer on a farm fails to notify the Secretary of an
                    election by the deadline described in subparagraph (A),
                    the producer shall be considered to have not elected to
                    update the payment yields for base acres of rice on the
                    farm.
                (3) Calculation.--
                        (A) In general.--If the producer on a farm makes
                    the election described in paragraph (2), the Secretary
                    shall adjust the payment yields for the base acres of
                    rice using an average yield described in subparagraph
                    (B) and adjustment described in subparagraph (C).
                        (B) Determination of average yield.--Subject to
                    subparagraph (D), the Secretary shall determine the
                    average yield per planted acre for the rice on the farm
                    for the 2009 through 2012 crop years, excluding any
                    crop year in which the acreage planted to rice was
                    zero.
                        (C) Determination of adjustment.--The Secretary
                    shall adjust the payment yield for the base acres of
                    rice on the farm that was established under section
                    1102 of the Farm Security and Rural Investment Act of
                    2002 (7 U.S.C. 7912) in accordance with the following:
                                (i) In a case in which less than 50 percent
                            of the rice base acres on the farm were planted
                            to rice, on average, during the 2009 through
                            2012 crop years, the adjustment shall be equal
                            to the sum obtained by adding to the payment
                            yield--
                                        (I) the product obtained by
                                    multiplying--
                                                (aa) the difference between
                                            the average yield and the
                                            payment yield; by
                                                (bb) the percent of rice
                                            planted on the base acres of
                                            rice on the farm, on average.
                                (ii) In a case in which more than 50
                            percent of the rice base acres on the farm were
                            planted to rice, on average, during the 2009
                            through 2012 crop years, the payment yield
                            shall be equal to the product obtained by
                            multiplying--
                                        (I) the average yield; by
                                        (II) 90 percent.
                        (D) Use of partial county average yield.--If the
                    yield per planted acre for a crop of rice for a farm
                    for any of the 2009 through 2012 crop years was less
                    than 75 percent of the county yield for that rice crop,
                    the Secretary shall assign a yield for that crop year
                    equal to 75 percent of the county yield for purposes of
                    determining the average under subparagraph (B).
        (c) Peanuts.--
                (1) Adjustment.--If the producer on a farm elects to adjust
            the peanut base acres for the farm pursuant to section 1105,
            the Secretary shall adjust the payment yields for the base
            acres of peanuts for purposes of making adverse market
            payments.
                (2) Calculation.--Notwithstanding the payment yields
            established under section 1102 of the Farm Security and Rural
            Investment Act of 2002 (7 U.S.C. 7912), the payment yield for
            the base acres of peanuts adjusted pursuant to section 1105
            shall be the average yield per planted acre for such base acres
            for the 2009 through 2012 crop years, excluding any crop year
            in which the acreage planted to peanuts was zero.
                (3) Use of partial county average yield.--If the yield per
            planted acre for a crop of peanuts for a farm for any of the
            2009 through 2012 crop years was less than 75 percent of the
            county yield for that peanut crop, the Secretary shall assign a
            yield for that crop year equal to 75 percent of the county
            yield for purposes of determining the average under paragraph
            (2).

    SEC. 1107. AVAILABILITY OF ADVERSE MARKET PAYMENTS.

        (a) Payment Required.--For each of the 2014 through 2018 crop years
    for each covered commodity, the Secretary shall make adverse market
    payments to producers on farms for which payment yields and base acres
    are established with respect to the covered commodity if the Secretary
    determines that the actual price for the covered commodity is less than
    the reference price for the covered commodity.
        (b) Actual Price.--
                (1) Covered commodities other than rice.--Except as
            provided in paragraph (2), for purposes of subsection (a), the
            actual price for a covered commodity is equal to the higher of
            the following:
                        (A) The national average market price received by
                    producers during the 12-month marketing year for the
                    covered commodity, as determined by the Secretary.
                        (B) The national average loan rate for a marketing
                    assistance loan for the covered commodity in effect for
                    the applicable period under subtitle B.
                (2) Rice.--In the case of long grain rice and medium grain
            rice, for purposes of subsection (a), the actual price for each
            type or class of rice is equal to the higher of the following:
                        (A) The national average market price received by
                    producers during the 12-month marketing year for the
                    type or class of rice, as determined by the Secretary.
                        (B) The national average loan rate for a marketing
                    assistance loan for the type or class of rice in effect
                    for the applicable period under subtitle B.
        (c) Reference Price.--The reference price for a covered commodity
    shall be determined as follows:
                (1) In general.--Subject to paragraph (2), the reference
            price for a covered commodity shall be the product obtained by
            multiplying--
                        (A) 55 percent; by
                        (B) 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.
                (2) Alternative price for rice and peanuts.--In the case of
            long and medium grain rice and peanuts, the reference price
            shall be--
                        (A) in the case of long and medium grain rice,
                    $13.30 per hundredweight; and
                        (B) in the case of peanuts, $523.77 per ton.
        (d) Payment Rate.--The payment rate used to make adverse market
    payments with respect to a covered commodity for a crop year shall be
    equal to the amount that--
                (1) the reference price under subsection (c) for the
            covered commodity; exceeds
                (2) the actual price determined under subsection (b) for
            the covered commodity.
        (e) Payment Amount.--If adverse market payments are required to be
    paid under this section for any of the 2014 through 2018 crop years of
    a covered commodity, the amount of the adverse market payment to be
    paid to the producers on a farm for that crop year shall be equal to
    the product of the following:
                (1) The payment rate specified in subsection (d).
                (2) The payment acres of the covered commodity on the farm.
                (3) The payment yield for the covered commodity for the
            farm.
        (f) Duties of the Secretary.--ln carrying out the calculations in
    subsections (b) and (c), the Secretary shall differentiate by type or
    class the national average price of--
                (1) sunflower seeds;
                (2) barley, using malting barley values; and
                (3) wheat.
        (g) Time for Payments.--If the Secretary determines under
    subsection (a) that adverse market payments are required to be made
    under this section for the crop of a covered commodity, beginning
    October 1, or as soon as practicable thereafter, after the end of the
    applicable marketing year for the covered commodity, the Secretary
    shall make the adverse market payments for the crop.

    SEC. 1108. AGRICULTURE RISK COVERAGE.

        (a) Payments Required.--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.
        (b) Coverage Election.--
                (1) In general.--For the period of crop years 2014 through
            2018, the producers shall make a 1-time, irrevocable election
            to receive--
                        (A) individual coverage under this section, as
                    determined by the Secretary; or
                        (B) in the case of a county with sufficient data
                    (as determined by the Secretary), county coverage under
                    this section.
                (2) Effect of election.--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--
                        (A) acres brought under the operational control of
                    the producers after the election are included; and
                        (B) 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.
                (3) Duties of the secretary.--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).
        (c) Agriculture Risk Coverage.--
                (1) Payments.--The Secretary shall make agriculture risk
            coverage payments available under this subsection for each of
            the 2014 through 2018 crop years if the Secretary determines
            that--
                        (A) the actual crop revenue for the crop year for
                    the covered commodity; is less than
                        (B) the agriculture risk coverage guarantee for the
                    crop year for the covered commodity.
                (2) Time for payments.--If the Secretary determines under
            this subsection that agriculture risk coverage payments are
            required to be made for the covered commodity, beginning
            October 1, or as soon as practicable thereafter, after the end
            of the applicable marketing year for the covered commodity, the
            Secretary shall make the agriculture risk coverage payments.
                (3) Actual crop revenue.--The amount of the actual crop
            revenue for a crop year of a covered commodity shall be equal
            to the product obtained by multiplying--
                        (A)(i) in the case of individual coverage, the
                    actual average individual yield for the covered
                    commodity, as determined by the Secretary; or
                        (ii) in the case of county coverage, the actual
                    average yield for the county for the covered commodity,
                    as determined by the Secretary; and
                        (B) the higher of--
                                (i) the national average market price
                            received by producers during the 12-month
                            marketing year for the covered commodity, as
                            determined by the Secretary; or
                                (ii) if applicable, the reference price for
                            the covered commodity under section 1107.
                (4) Agriculture risk coverage guarantee.--
                        (A) In general.--The agriculture risk coverage
                    guarantee for a crop year for a covered commodity shall
                    equal 88 percent of the benchmark revenue.
                        (B) Benchmark revenue.--
                                (i) In general.--The benchmark revenue
                            shall be the product obtained by multiplying--
                                        (I)(aa) 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
                                        (bb) 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
                                        (II) 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.
                                (ii) Use of transitional yields.--If the
                            yield determined under clause (i)(I)(aa)--
                                        (I) for the 2013 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
                                        (II) for the 2014 crop year and any
                                    subsequent crop year, is less than 65
                                    percent of the applicable transitional
                                    yield, the Secretary shall use 65
                                    percent of the applicable transitional
                                    yield for that crop year.
                (5) Payment rate.--The payment rate for each covered
            commodity shall be equal to the lesser of--
                        (A) the amount that--
                                (i) the agriculture risk coverage guarantee
                            for the covered commodity; exceeds
                                (ii) the actual crop revenue for the crop
                            year of the covered commodity; or
                        (B) 10 percent of the benchmark revenue for the
                    crop year of the covered commodity.
                (6) Payment amount.--If agriculture risk coverage payments
            under this subsection are required to be paid for any of the
            2014 through 2018 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--
                        (A) the payment rate under paragraph (5); and
                        (B)(i) in the case of individual coverage the sum
                    of--
                                (I) 65 percent of the planted eligible
                            acres of the covered commodity; and
                                (II) 45 percent of the eligible acres that
                            were prevented from being planted to the
                            covered commodity; or
                        (ii) in the case of county coverage--
                                (I) 80 percent of the planted eligible
                            acres of the covered commodity; and
                                (II) 45 percent of the eligible acres that
                            were prevented from being planted to the
                            covered commodity.
                (7) Duties of the secretary.--In carrying out the program
            under this subsection, the Secretary shall--
                        (A) to the maximum extent practicable, use all
                    available information and analysis to check for
                    anomalies in the determination of payments under the
                    program;
                        (B) to the maximum extent practicable, calculate a
                    separate actual crop revenue and agriculture risk
                    coverage guarantee for irrigated and nonirrigated
                    covered commodities;
                        (C) differentiate by type or class the national
                    average price of--
                                (i) sunflower seeds;
                                (ii) barley, using malting barley values;
                            and
                                (iii) wheat; and
                        (D) 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.

    SEC. 1109. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISION OF
                  PAYMENTS.

        (a) Compliance With Certain Requirements.--
                (1) Requirements.--Before the producers on a farm may
            receive agriculture risk coverage payments or adverse market
            payments, the producers shall agree, during the crop year for
            which the payments are made and in exchange for the payments--
                        (A) 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.);
                        (B) to comply with applicable wetland protection
                    requirements under subtitle C of title XII of that Act
                    (16 U.S.C. 3821 et seq.);
                        (C) 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
                        (D) 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).
                (2) Compliance.--The Secretary may issue such rules as the
            Secretary considers necessary to ensure producer compliance
            with the requirements of paragraph (1).
                (3) Modification.--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.
        (b) Transfer or Change of Interest in Farm.--
                (1) Termination.--
                        (A) In general.--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 or adverse market payments are made shall
                    result in the termination of the payments, unless the
                    transferee or owner of the acreage agrees to assume all
                    obligations under subsection (a).
                        (B) Effective date.--The termination shall take
                    effect on the date determined by the Secretary.
                (2) Exception.--If a producer entitled to an agriculture
            risk coverage payment or adverse market 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.
        (c) Reports.--
                (1) Acreage reports.--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.
                (2) Production reports.--As a condition on the receipt of
            any benefits under section 1108, 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.
                (3) Penalties.--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.
                (4) Data reporting.--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.
        (d) Tenants and Sharecroppers.--In carrying out this subtitle, the
    Secretary shall provide adequate safeguards to protect the interests of
    tenants and sharecroppers.
        (e) Sharing of Payments.--The Secretary shall provide for the
    sharing of adverse market payments and agriculture risk coverage
    payments among the producers on a farm on a fair and equitable basis.

    SEC. 1110. PERIOD OF EFFECTIVENESS.

        Sections 1104 through 1109 shall be effective beginning with the
    2014 crop year of each covered commodity through the 2018 crop year.

      Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

    SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR
                  LOAN COMMODITIES.

        (a) Definition of Loan Commodity.--In this subtitle, the term
    ``loan commodity'' 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.
        (b) Nonrecourse Loans Available.--
                (1) In general.--For each of the 2014 through 2018 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.
                (2) Terms and conditions.--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.
        (c) Eligible Production.--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.
        (d) Compliance With Conservation and Wetlands Requirements.--
                (1) Requirements.--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--
                        (A) 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.);
                        (B) to comply with applicable wetland protection
                    requirements under subtitle C of title XII of that Act
                    (16 U.S.C. 3821 et seq.);
                        (C) 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
                        (D) 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).
                (2) Compliance.--The Secretary may issue such rules as the
            Secretary considers necessary to ensure producer compliance
            with paragraph (1).
                (3) Modification.--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.
        (e) Special Rules for Peanuts.--
                (1) In general.--This subsection shall apply only to
            producers of peanuts.
                (2) Options for obtaining loan.--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--
                        (A) a designated marketing association or marketing
                    cooperative of producers that is approved by the
                    Secretary; or
                        (B) the Farm Service Agency.
                (3) Storage of loan peanuts.--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--
                        (A) to provide the storage on a nondiscriminatory
                    basis; and
                        (B) 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.
                (4) Storage, handling, and associated costs.--
                        (A) In general.--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.
                        (B) Redemption and forfeiture.--The Secretary
                    shall--
                                (i) 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
                                (ii) pay storage, handling, and other
                            associated costs for all peanuts pledged as
                            collateral that are forfeited under this
                            section.
                (5) Marketing.--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.
                (6) Reimbursable agreements and payment of administrative
            expenses.--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.

    SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.

        (a) In General.--For purposes of each of the 2014 through 2018 crop
    years, the loan rate for a marketing assistance loan under section 1201
    for a loan commodity shall be equal to the following:
                (1) In the case of wheat, $2.94 per bushel.
                (2) In the case of corn, $1.95 per bushel.
                (3) In the case of grain sorghum, $1.95 per bushel.
                (4) In the case of barley, $1.95 per bushel.
                (5) In the case of oats, $1.39 per bushel.
                (6) In the case of base quality of upland cotton, for the
            2014 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 $0.45 per pound or more than $0.52 per pound.
                (7) In the case of extra long staple cotton, $0.7977 per
            pound.
                (8) In the case of long grain rice, $6.50 per
            hundredweight.
                (9) In the case of medium grain rice, $6.50 per
            hundredweight.
                (10) In the case of soybeans, $5.00 per bushel.
                (11) In the case of other oilseeds, $10.09 per
            hundredweight for each of the following kinds of oilseeds:
                        (A) Sunflower seed.
                        (B) Rapeseed.
                        (C) Canola.
                        (D) Safflower.
                        (E) Flaxseed.
                        (F) Mustard seed.
                        (G) Crambe.
                        (H) Sesame seed.
                        (I) Other oilseeds designated by the Secretary.
                (12) In the case of dry peas, $5.40 per hundredweight.
                (13) In the case of lentils, $11.28 per hundredweight.
                (14) In the case of small chickpeas, $7.43 per
            hundredweight.
                (15) In the case of large chickpeas, $11.28 per
            hundredweight.
                (16) In the case of graded wool, $1.15 per pound.
                (17) In the case of nongraded wool, $0.40 per pound.
                (18) In the case of mohair, $4.20 per pound.
                (19) In the case of honey, $0.69 per pound.
                (20) In the case of peanuts, $355 per ton.
        (b) Single County Loan Rate for Other Oilseeds.--The Secretary
    shall establish a single loan rate in each county for each kind of
    other oilseeds described in subsection (a)(11).

    SEC. 1203. TERM OF LOANS.

        (a) Term of Loan.--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.
        (b) Extensions Prohibited.--The Secretary may not extend the term
    of a marketing assistance loan for any loan commodity.

    SEC. 1204. REPAYMENT OF LOANS.

        (a) General Rule.--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--
                (1) 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));
                (2) a rate (as determined by the Secretary) that--
                        (A) is calculated based on average market prices
                    for the loan commodity during the preceding 30-day
                    period; and
                        (B) will minimize discrepancies in marketing loan
                    benefits across State boundaries and across county
                    boundaries; or
                (3) a rate that the Secretary may develop using alternative
            methods for calculating a repayment rate for a loan commodity
            that the Secretary determines will--
                        (A) minimize potential loan forfeitures;
                        (B) minimize the accumulation of stocks of the
                    commodity by the Federal Government;
                        (C) minimize the cost incurred by the Federal
                    Government in storing the commodity;
                        (D) allow the commodity produced in the United
                    States to be marketed freely and competitively, both
                    domestically and internationally; and
                        (E) minimize discrepancies in marketing loan
                    benefits across State boundaries and across county
                    boundaries.
        (b) Repayment Rates for Upland Cotton, Long Grain Rice, and Medium
    Grain Rice.--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--
                (1) 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
                (2) the prevailing world market price for the commodity, as
            determined and adjusted by the Secretary in accordance with
            this section.
        (c) Repayment Rates for Extra Long Staple Cotton.--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)).
        (d) Prevailing World Market Price.--For purposes of this section,
    the Secretary shall prescribe by regulation--
                (1) a formula to determine the prevailing world market
            price for each of upland cotton, long grain rice, and medium
            grain rice; and
                (2) a mechanism by which the Secretary shall announce
            periodically those prevailing world market prices.
        (e) Adjustment of Prevailing World Market Price for Upland Cotton,
    Long Grain Rice, and Medium Grain Rice.--
                (1) Rice.--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.
                (2) Cotton.--The prevailing world market price for upland
            cotton determined under subsection (d)--
                        (A) shall be adjusted to United States quality and
                    location, with the adjustment to include--
                                (i) a reduction equal to any United States
                            Premium Factor for upland cotton of a quality
                            higher than Middling (M) 1\3/32\-inch; and
                                (ii) the average costs to market the
                            commodity, including average transportation
                            costs, as determined by the Secretary; and
                        (B) may be further adjusted, during the period
                    beginning on the date of enactment of this Act and
                    ending on July 31, 2019, if the Secretary determines
                    the adjustment is necessary--
                                (i) to minimize potential loan forfeitures;
                                (ii) to minimize the accumulation of stocks
                            of upland cotton by the Federal Government;
                                (iii) to ensure that upland cotton produced
                            in the United States can be marketed freely and
                            competitively, both domestically and
                            internationally; and
                                (iv) 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--
                                        (I) there are insufficient current-
                                    crop price quotations; and
                                        (II) the forward-crop price
                                    quotation is the lowest such quotation
                                    available.
                (3) Guidelines for additional adjustments.--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.
        (f) Repayment Rates for Confectionery and Other Kinds of Sunflower
    Seeds.--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--
                (1) 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
                (2) the repayment rate established for oil sunflower seed.
        (g) Payment of Cotton Storage Costs.--Effective for each of the
    2014 through 2018 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.
        (h) Repayment Rate for Peanuts.--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--
                (1) 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
                (2) a rate that the Secretary determines will--
                        (A) minimize potential loan forfeitures;
                        (B) minimize the accumulation of stocks of peanuts
                    by the Federal Government;
                        (C) minimize the cost incurred by the Federal
                    Government in storing peanuts; and
                        (D) allow peanuts produced in the United States to
                    be marketed freely and competitively, both domestically
                    and internationally.
        (i) Authority To Temporarily Adjust Repayment Rates.--
                (1) Adjustment authority.--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.
                (2) Duration.--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.

    SEC. 1205. LOAN DEFICIENCY PAYMENTS.

        (a) Availability of Loan Deficiency Payments.--
                (1) In general.--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.
                (2) Unshorn pelts, hay, and silage.--
                        (A) Marketing assistance loans.--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.
                        (B) Loan deficiency payment.--Effective for the
                    2014 through 2018 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.
        (b) Computation.--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--
                (1) the payment rate determined under subsection (c) for
            the commodity; by
                (2) 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.
        (c) Payment Rate.--
                (1) In general.--In the case of a loan commodity, the
            payment rate shall be the amount by which--
                        (A) the loan rate established under section 1202
                    for the loan commodity; exceeds
                        (B) the rate at which a marketing assistance loan
                    for the loan commodity may be repaid under section
                    1204.
                (2) Unshorn pelts.--In the case of unshorn pelts, the
            payment rate shall be the amount by which--
                        (A) the loan rate established under section 1202
                    for ungraded wool; exceeds
                        (B) the rate at which a marketing assistance loan
                    for ungraded wool may be repaid under section 1204.
                (3) Hay and silage.--In the case of hay or silage derived
            from a loan commodity, the payment rate shall be the amount by
            which--
                        (A) the loan rate established under section 1202
                    for the loan commodity from which the hay or silage is
                    derived; exceeds
                        (B) the rate at which a marketing assistance loan
                    for the loan commodity may be repaid under section
                    1204.
        (d) Exception for Extra Long Staple Cotton.--This section shall not
    apply with respect to extra long staple cotton.
        (e) Effective Date for Payment Rate Determination.--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.

    SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED
                  ACREAGE.

        (a) Eligible Producers.--
                (1) In general.--Effective for the 2014 through 2018 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.
                (2) Grazing of triticale acreage.--Effective for the 2014
            through 2018 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.
        (b) Payment Amount.--
                (1) In general.--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--
                        (A) 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
                        (B) the payment quantity determined by
                    multiplying--
                                (i) 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
                                (ii)(I) 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
                                (II) in the case of a farm without a
                            payment yield for that loan commodity, an
                            appropriate yield established by the Secretary.
                (2) Grazing of triticale acreage.--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--
                        (A) 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
                        (B) the payment quantity determined by
                    multiplying--
                                (i) the quantity of the grazed acreage on
                            the farm with respect to which the producer
                            elects to forgo harvesting of triticale; and
                                (ii)(I) the yield in effect for the
                            calculation of agriculture risk coverage
                            payments under subtitle A with respect to wheat
                            on the farm; or
                                (II) 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).
        (c) Time, Manner, and Availability of Payment.--
                (1) Time and manner.--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.
                (2) Availability.--
                        (A) In general.--The Secretary shall establish an
                    availability period for the payments authorized by this
                    section.
                        (B) Certain commodities.--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.
        (d) Prohibition on Crop Insurance Indemnity or Noninsured Crop
    Assistance.--A 2014 through 2018 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).

    SEC. 1207. ECONOMIC ADJUSTMENT ASSISTANCE TO USERS OF UPLAND COTTON.

        (a) In General.--Subject to subsection (b), 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.
        (b) Value of Assistance.--Effective beginning on August 1, 2012,
    the value of the assistance provided under subsection (a) shall be 3
    cents per pound.
        (c) Allowable Purposes.--Economic adjustment assistance under this
    section 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.
        (d) Review or Audit.--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.
        (e) Improper Use of Assistance.--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 subsection (c), the domestic user shall be--
                (1) liable for the repayment of the assistance to the
            Secretary, plus interest, as determined by the Secretary; and
                (2) ineligible to receive assistance under this subsection
            for a period of 1 year following the determination of the
            Secretary.

    SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE COTTON.

        (a) Competitiveness Program.--Notwithstanding any other provision
    of law, during the period beginning on the date of enactment of this
    Act through July 31, 2019, the Secretary shall carry out a program--
                (1) to maintain and expand the domestic use of extra long
            staple cotton produced in the United States;
                (2) to increase exports of extra long staple cotton
            produced in the United States; and
                (3) to ensure that extra long staple cotton produced in the
            United States remains competitive in world markets.
        (b) Payments Under Program; Trigger.--Under the program, the
    Secretary shall make payments available under this section whenever--
                (1) 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
                (2) 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.
        (c) Eligible Recipients.--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.
        (d) Payment Amount.--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.

    SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS
                  AND SEED COTTON.

        (a) High Moisture Feed Grains.--
                (1) Definition of high moisture state.--In this subsection,
            the term ``high moisture state'' 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.
                (2) Recourse loans available.--For each of the 2014 through
            2018 crops of corn and grain sorghum, the Secretary shall make
            available recourse loans, as determined by the Secretary, to
            producers on a farm that--
                        (A) normally harvest all or a portion of their crop
                    of corn or grain sorghum in a high moisture state;
                        (B) present--
                                (i) 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
                                (ii) 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;
                        (C) 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
                        (D) 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.
                (3) Eligibility of acquired feed grains.--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--
                        (A) the acreage of the corn or grain sorghum in a
                    high moisture state harvested on the farm of the
                    producer; by
                        (B) 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.
        (b) Recourse Loans Available for Seed Cotton.--For each of the 2014
    through 2018 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.
        (c) Repayment Rates.--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)).

    SEC. 1210. ADJUSTMENTS OF LOANS.

        (a) Adjustment Authority.--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.
        (b) Manner of Adjustment.--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.
        (c) Adjustment on County Basis.--
                (1) In general.--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.
                (2) Prohibition.--Adjustments under this subsection shall
            not result in an increase in the national average loan rate for
            any year.
        (d) Adjustment in Loan Rate for Cotton.--
                (1) In general.--The Secretary may make appropriate
            adjustments in the loan rate for cotton for differences in
            quality factors.
                (2) Revisions to quality adjustments for upland cotton.--
                        (A) In general.--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.
                        (B) Mandatory revisions.--Revisions under
                    subparagraph (A) shall include--
                                (i) the elimination of warehouse location
                            differentials;
                                (ii) 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;
                                (iii) 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
                                (iv) 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.
                        (C) Discretionary revisions.--Revisions under
                    subparagraph (A) may include--
                                (i) 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;
                                (ii) 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
                                (iii) such other adjustments as the
                            Secretary determines appropriate, after
                            consultations conducted in accordance with
                            paragraph (3).
                (3) Consultation with private sector.--
                        (A) Prior to revision.--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.
                        (B) Inapplicability of federal advisory committee
                    act.--The Federal Advisory Committee Act (5 U.S.C.
                    App.) shall not apply to consultations under this
                    subsection.
                (4) Review of adjustments.--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--
                        (A) revoking or revising any actions taken under
                    paragraph (2)(B); or
                        (B) revoking or revising any actions taken or
                    authorized to be taken under paragraph (2)(C).
        (e) Rice.--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).

                               Subtitle C--Sugar

    SEC. 1301. SUGAR PROGRAM.

        (a) Continuation of Current Program and Loan Rates.--
                (1) Sugarcane.--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 ``the 2012 crop year'' and
            inserting ``each of the 2014 through 2018 crop years''.
                (2) Sugar beets.--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 ``2012'' and inserting
            ``2018''.
                (3) Effective period.--Section 156(i) of the Federal
            Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
            7272(i)) is amended by striking ``2012'' and inserting
            ``2018''.
        (b) Flexible Marketing Allotments for Sugar.--
                (1) Sugar estimates.--Section 359b(a)(1) of the
            Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is
            amended by striking ``2012'' and inserting ``2018''.
                (2) Effective period.--Section 359l(a) of the Agricultural
            Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by
            striking ``2012'' and inserting ``2018''.

                               Subtitle D--Dairy

          PART I--DAIRY PRODUCTION MARGIN PROTECTION AND DAIRY MARKET
                             STABILIZATION PROGRAMS

    SEC. 1401. DEFINITIONS.

        In this part:
                (1) Actual dairy production margin.--The term ``actual
            dairy production margin'' means the difference between the all-
            milk price and the average feed cost, as calculated under
            section 1402.
                (2) All-milk price.--The term ``all-milk price'' 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.
                (3) Annual production history.--The term ``annual
            production history'' means the production history determined
            for a participating dairy operation under section 1413(b)
            whenever the participating dairy operation purchases
            supplemental production margin protection.
                (4) Average feed cost.--The term ``average feed cost''
            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:
                        (A) The product determined by multiplying 1.0728 by
                    the price of corn per bushel.
                        (B) The product determined by multiplying 0.00735
                    by the price of soybean meal per ton.
                        (C) The product determined by multiplying 0.0137 by
                    the price of alfalfa hay per ton.
                (5) Basic production history.--The term ``basic production
            history'' means the production history determined for a
            participating dairy operation under section 1413(a) for
            provision of basic production margin protection.
                (6) Consecutive 2-month period.--The term ``consecutive 2-
            month period'' 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.
                (7) Dairy operation.--
                        (A) In general.--The term ``dairy operation''
                    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--
                                (i) shares in the pooling of resources and
                            a common ownership structure;
                                (ii) is at risk in the production of milk
                            on the dairy operation; and
                                (iii) contributes land, labor, management,
                            equipment, or capital to the dairy operation.
                        (B) Additional ownership structures.--The Secretary
                    shall determine additional ownership structures to be
                    covered by the definition of dairy operation.
                (8) Handler.--
                        (A) In general.--The term ``handler'' means the
                    initial individual or entity making payment to a dairy
                    operation for milk produced in the United States and
                    marketed for commercial use.
                        (B) Producer-handler.--The term includes a
                    ``producer-handler'' when the producer satisfies the
                    definition in subparagraph (A).
                (9) Participating dairy operation.--The term
            ``participating dairy operation'' means a dairy operation
            that--
                        (A) signs up under section 1412 to participate in
                    the production margin protection program under subpart
                    A; and
                        (B) as a result, also participates in the
                    stabilization program under subpart B.
                (10) Production margin protection program.--The term
            ``production margin protection program'' means the dairy
            production margin protection program required by subpart A.
                (11) Secretary.--The term ``Secretary'' means the Secretary
            of Agriculture.
                (12) Stabilization program.--The term ``stabilization
            program'' means the dairy market stabilization program required
            by subpart B for all participating dairy operations.
                (13) Stabilization program base.--The term ``stabilization
            program base'', with respect to a participating dairy
            operation, means the stabilization program base calculated for
            the participating dairy operation under section 1431(b).
                (14) United states.--The term ``United States'', 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.

    SEC. 1402. CALCULATION OF AVERAGE FEED COST AND ACTUAL DAIRY PRODUCTION
                  MARGINS.

        (a) Calculation of Average Feed Cost.--The Secretary shall
    calculate the national average feed cost for each month using the
    following data:
                (1) 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.
                (2) 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.
                (3) 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.
        (b) Calculation of Actual Dairy Production Margins.--
                (1) Production margin protection program.--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--
                        (A) the average feed cost for that consecutive 2-
                    month period, determined in accordance with subsection
                    (a); from
                        (B) the all-milk price for that consecutive 2-month
                    period.
                (2) Stabilization program.--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--
                        (A) the average feed cost for that preceding month,
                    determined in accordance with subsection (a); from
                        (B) the all-milk price for that preceding month.
                (3) Time for calculations.--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.

             Subpart A--Dairy Production Margin Protection Program

    SEC. 1411. ESTABLISHMENT OF DAIRY PRODUCTION MARGIN PROTECTION PROGRAM.

        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--
                (1) basic production margin protection program payments
            under section 1414 when actual dairy production margins are
            less than the threshold levels for such payments; and
                (2) supplemental production margin protection program
            payments under section 1415 if purchased by a participating
            dairy operation.

    SEC. 1412. PARTICIPATION OF DAIRY OPERATIONS IN PRODUCTION MARGIN
                  PROTECTION PROGRAM.

        (a) Eligibility.--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--
                (1) basic production margin protection program payments
            under section 1414; and
                (2) if the participating dairy operation purchases
            supplemental production margin protection under section 1415,
            supplemental production margin protection program payments
            under such section.
        (b) Registration Process.--
                (1) In general.--The Secretary shall specify the manner and
            form by which a participating dairy operation may register to
            participate in the production margin protection program.
                (2) Treatment of multiproducer dairy operations.--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--
                        (A) registration to receive basic production margin
                    protection and election to purchase supplemental
                    production margin protection;
                        (B) payment of the participation fee under
                    subsection (d) and producer premiums under section
                    1415; and
                        (C) participation in the stabilization program
                    under subtitle B.
                (3) Treatment of producers with multiple dairy
            operations.--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.
        (c) Time for Registration.--
                (1) Existing dairy operations.--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--
                        (A) to receive basic production margin protection;
                    and
                        (B) if the dairy operation elects, to purchase
                    supplemental production margin protection.
                (2) New entrants.--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--
                        (A) to receive basic production margin protection;
                    and
                        (B) if the dairy operation elects, to purchase
                    supplemental production margin protection.
        (d) Transition From MILC to Production Margin Protection.--
                (1) Definition of transition period.--In this subsection,
            the term ``transition period'' 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.
                (2) Notice of availability.--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).
                (3) Election.--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.
                (4) Transfer to production margin protection.--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.
        (e) Administration Fee.--
                (1) Administration fee required.--Except as provided in
            paragraph (5), a participating dairy operation shall--
                        (A) pay an administration fee under this subsection
                    to register to participate in the production margin
                    protection program; and
                        (B) pay the administration fee annually thereafter
                    to continue to participate in the production margin
                    protection program.
                (2) Fee amount.--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:

    ------------------------------------------------------------------------
       Pounds Marketed (in millions)              Administration Fee
    ------------------------------------------------------------------------
                     less than 1                                 $100
                          1 to 5                                 $250
               more than 5 to 10                                 $350
              more than 10 to 40                               $1,000
                    more than 40                              $2,500.
    ------------------------------------------------------------------------

                (3) Deposit of fees.--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).
                (4) Use of fees.--The Secretary shall use administration
            fees collected under this subsection--
                        (A) to cover administrative costs of the production
                    margin protection program and stabilization program;
                    and
                        (B) 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).
                (5) Waiver.--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.
        (f) Limitation.--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.

    SEC. 1413. PRODUCTION HISTORY OF PARTICIPATING DAIRY OPERATIONS.

        (a) Production History for Basic Production Margin Protection.--
                (1) Determination required.--For purposes of providing
            basic production margin protection, the Secretary shall
            determine the basic production history of a participating dairy
            operation.
                (2) Calculation.--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.
                (3) Election by new dairy operations.--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:
                        (A) The volume of the actual milk marketings for
                    the months the participating dairy operation has been
                    in operation extrapolated to a yearly amount.
                        (B) 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.
                (4) No change in production history for basic production
            margin protection.--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.
        (b) Annual Production History for Supplemental Production Margin
    Protection.--
                (1) Determination required.--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).
                (2) Calculation.--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.
                (3) New dairy operations.--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.
        (c) Required Information.--A participating dairy operation shall
    provide all information that the Secretary may require in order to
    establish--
                (1) the basic production history of the participating dairy
            operation under subsection (a); and
                (2) the production history of the participating dairy
            operation whenever the participating dairy operation purchases
            supplemental production margin protection under section 1415.
        (d) Transfer of Production Histories.--
                (1) Transfer by sale or lease.--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.
                (2) Coverage level.--
                        (A) Basic production margin protection.--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.
                        (B) Supplemental production margin protection.--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.
        (e) Movement and Transfer of Production History.--
                (1) Movement and transfer authorized.--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.
                (2) Notification requirement.--A participating dairy
            operation shall notify the Secretary of any move of a
            participating dairy operation under paragraph (1).
                (3) Subsequent occupation of vacated location.--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.

    SEC. 1414. BASIC PRODUCTION MARGIN PROTECTION.

        (a) Payment Threshold.--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.
        (b) Basic Production Margin Protection Payment.--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--
                (1) 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
                (2) the lesser of--
                        (A) 80 percent of the production history of the
                    participating dairy operation, divided by 6; or
                        (B) the actual quantity of milk marketed by the
                    participating dairy operation during the consecutive 2-
                    month period.

    SEC. 1415. SUPPLEMENTAL PRODUCTION MARGIN PROTECTION.

        (a) Election of Supplemental Production Margin Protection.--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.
        (b) Selection of Payment Threshold.--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.
        (c) Coverage Percentage.--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.
        (d) Premiums for Supplemental Production Margin Protection.--
                (1) Premiums required.--A participating dairy operation
            that purchases supplemental production margin protection shall
            pay an annual premium equal to the product obtained by
            multiplying--
                        (A) the coverage percentage elected by the
                    participating dairy operation under subsection (c);
                        (B) the annual production history of the
                    participating dairy operation; and
                        (C) the premium per hundredweight of milk, as
                    specified in the applicable table under paragraph (2)
                    or (3).
                (2) Premium per hundredweight for first 4 million pounds of
            production.--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:

    ------------------------------------------------------------------------
               Coverage Level                      Premium per Cwt.
    ------------------------------------------------------------------------
                           $4.50                                $0.01
                           $5.00                                $0.02
                           $5.50                               $0.035
                           $6.00                               $0.045
                           $6.50                                $0.09
                           $7.00                                $0.40
                           $7.50                                $0.60
                           $8.00                               $0.95.
    ------------------------------------------------------------------------

                (3) Premium per hundredweight for production in excess of 4
            million pounds.--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:

    ------------------------------------------------------------------------
               Coverage Level                      Premium per Cwt.
    ------------------------------------------------------------------------
                           $4.50                                $0.02
                           $5.00                                $0.04
                           $5.50                                $0.10
                           $6.00                                $0.15
                           $6.50                                $0.29
                           $7.00                                $0.62
                           $7.50                                $0.83
                           $8.00                               $1.06.
    ------------------------------------------------------------------------

                (4) Time for payment.--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.
        (e) Premium Obligations.--
                (1) Pro-ration of premium for new dairy operations.--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.
                (2) Legal obligation.--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.
        (f) Supplemental Payment Threshold.--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).
        (g) Supplemental Production Margin Protection Payments.--
                (1) In general.--The supplemental production margin
            protection payment for a participating dairy operation is in
            addition to the basic production margin protection payment.
                (2) Amount of payment.--The supplemental production margin
            protection payment for the participating dairy operation shall
            be determined as follows:
                        (A) The Secretary shall calculate the difference
                    between the coverage level threshold selected by the
                    participating dairy operation under subsection (b) and
                    the greater of--
                                (i) the average actual dairy production
                            margin for the consecutive 2-month period; or
                                (ii) $4.00.
                        (B) 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:
                                (i) The annual production history of the
                            participating dairy operation, divided by 6.
                                (ii) The actual amount of milk marketed by
                            the participating dairy operation during the
                            consecutive 2-month period.

    SEC. 1416. EFFECT OF FAILURE TO PAY ADMINISTRATION FEES OR PREMIUMS.

        (a) Loss of Benefits.--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--
                (1) remains legally obligated to pay the administration fee
            or premiums, as the case may be; and
                (2) may not receive basic production margin protection
            payments or supplemental production margin protection payments
            until the fees or premiums are fully paid.
        (b) Enforcement.--The Secretary may take such action as necessary
    to collect administration fees and premium payments for supplemental
    production margin protection.

                 Subpart B--Dairy Market Stabilization Program

    SEC. 1431. ESTABLISHMENT OF DAIRY MARKET STABILIZATION PROGRAM.

        (a) Program Required; Purpose.--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.
        (b) Election of Stabilization Program Base Calculation Method.--
                (1) Election.--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).
                (2) Change in calculation method.--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.
                (3) Calculation methods.--A participating dairy operation
            may elect either of the following methods for calculation of
            the stabilization program base for the participating dairy
            operation:
                        (A) 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.
                        (B) 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.

    SEC. 1432. THRESHOLD FOR IMPLEMENTATION AND REDUCTION IN DAIRY
                  PAYMENTS.

        (a) When Stabilization Program Required.--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--
                (1) the actual dairy production margin has been $6.00 or
            less per hundredweight of milk for each of the immediately
            preceding 2 months; or
                (2) the actual dairy production margin has been $4.00 or
            less per hundredweight of milk for the immediately preceding
            month.
        (b) Exception.--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--
                (1) suspend the stabilization program;
                (2) refrain from making the announcement under subsection
            (a) to implement order the stabilization payment; or
                (3) order reduced payments.
        (c) Effective Date for Implementation of Payment Reductions.--
    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).

    SEC. 1433. MILK MARKETINGS INFORMATION.

        (a) Collection of Milk Marketing Data.--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.
        (b) Reduce Regulatory Burden.--When implementing the process under
    subsection (a), the Secretary shall minimize the regulatory burden on
    participating dairy operations and handlers.

    SEC. 1434. CALCULATION AND COLLECTION OF REDUCED DAIRY OPERATION
                  PAYMENTS.

        (a) Reduced Participating Dairy Operation Payments Required.--
    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.
        (b) Reductions Based on Actual Dairy Production Margin.--
                (1) Reduction requirement 1.--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:
                        (A) 98 percent of the stabilization program base of
                    the participating dairy operation.
                        (B) 94 percent of the marketings of milk for the
                    month by the participating dairy operation.
                (2) Reduction requirement 2.--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:
                        (A) 97 percent of the stabilization program base of
                    the participating dairy operation.
                        (B) 93 percent of the marketings of milk for the
                    month by the participating dairy operation.
                (3) Reduction requirement 3.--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:
                        (A) 96 percent of the stabilization program base of
                    the participating dairy operation.
                        (B) 92 percent of the marketings of milk for the
                    month by the participating dairy operation.
        (c) Continuation of Reductions.--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.
        (d) Payment Reduction Exception.--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).

    SEC. 1435. REMITTING FUNDS TO THE SECRETARY AND USE OF FUNDS.

        (a) Remitting Funds.--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.
        (b) Deposit of Remitted Funds.--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).
        (c) Use of Funds.--
                (1) Availability for certain commodity donations.--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--
                        (A) purchasing dairy products for donation to food
                    banks and other programs that the Secretary determines
                    appropriate; and
                        (B) expanding consumption and building demand for
                    dairy products.
                (2) No duplication of effort.--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.).
                (3) Accounting.--The Secretary shall keep an accurate
            account of all funds expended under paragraph (1).
        (d) Annual Report.--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--
                (1) the funds received by the Secretary during the
            preceding fiscal year under subsection (a);
                (2) all expenditures made by the Secretary under subsection
            (b) during the preceding fiscal year; and
                (3) the impact of the stabilization program on dairy
            markets.
        (e) Enforcement.--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.

    SEC. 1436. SUSPENSION OF REDUCED PAYMENT REQUIREMENT.

        (a) Determination of Prices.--For purposes of this section:
                (1) The price in the United States for cheddar cheese and
            nonfat dry milk shall be determined by the Secretary.
                (2) The world price of cheddar cheese and skim milk powder
            shall be determined by the Secretary.
        (b) Suspension Thresholds.--The stabilization program shall be
    suspended or the Secretary shall refrain from making the announcement
    under section 1432(a) if the Secretary determines that--
                (1) the actual dairy production margin is greater than
            $6.00 per hundredweight of milk for 2 consecutive months;
                (2) 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--
                        (A) the price in the United States for cheddar
                    cheese is equal to or greater than the world price of
                    cheddar cheese; or
                        (B) the price in the United States for nonfat dry
                    milk is equal to or greater than the world price of
                    skim milk powder;
                (3) 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--
                        (A) the price in the United States for cheddar
                    cheese is more than 5 percent above the world price of
                    cheddar cheese; or
                        (B) the price in the United States for nonfat dry
                    milk is more than 5 percent above the world price of
                    skim milk powder; or
                (4) the actual dairy production margin is equal to or less
            than $4.00 for 2 consecutive months, and during the same 2
            consecutive months--
                        (A) the price in the United States for cheddar
                    cheese is more than 7 percent above the world price of
                    cheddar cheese; or
                        (B) the price in the United States for nonfat dry
                    milk is more than 7 percent above the world price of
                    skim milk powder.
        (c) Implementation by Handlers.--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.
        (d) Condition on Resumption of Stabilization Program.--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--
                (1) 2 months have passed, beginning on the first day of the
            month immediately following the announcement by the Secretary;
            and
                (2) the conditions of section 1432(a) are again met.

    SEC. 1437. ENFORCEMENT.

        (a) Unlawful Act.--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.
        (b) Order.--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.
        (c) Appeal.--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.
        (d) Noncompliance With Order.--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.

    SEC. 1438. AUDIT REQUIREMENTS.

        (a) Audits of Dairy Operation and Handler Compliance.--
                (1) Audits authorized.--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.
                (2) Sample of dairy operations.--Any audit conducted under
            this subsection shall include, at a minimum, investigation of a
            statistically valid and random sample of participating dairy
            operations.
        (b) Submission of Results.--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.

    SEC. 1439. STUDY; REPORT.

        (a) In General.--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).
        (b) Considerations.--The study conducted under subsection (a) shall
    consider--
                (1) 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
                (2) the impact of the program on the competitiveness of the
            United States dairy industry in international markets.
        (c) Report.--Not later than December 1, 2017, 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).

                           Subpart C--Administration

    SEC. 1451. DURATION.

        The production margin protection program and the stabilization
    program shall end on December 31, 2018.

    SEC. 1452. ADMINISTRATION AND ENFORCEMENT.

        (a) In General.--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.
        (b) Reconstitution and Eligibility Issues.--
                (1) Reconstitution.--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--
                        (A) receiving basic margin protection;
                        (B) purchasing supplemental margin protection; or
                        (C) avoiding participation in the market
                    stabilization program.
                (2) Eligibility issues.--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--
                        (A) to prohibit a scheme or device;
                        (B) to provide for equitable relief; and
                        (C) to provide for other issues affecting
                    eligibility and liability issues.
                (3) Administrative appeals.--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).

                       PART II--DAIRY MARKET TRANSPARENCY

    SEC. 1461. DAIRY PRODUCT MANDATORY REPORTING.

        (a) Definitions.--Section 272(1)(A) of the Agricultural Marketing
    Act of 1946 (7 U.S.C. 1637a(1)(A)) is amended by inserting ``, or any
    other products that may significantly aid price discovery in the dairy
    markets, as determined by the Secretary'' after ``of 1937''.
        (b) Mandatory Reporting for Dairy Products.--Section 273(b) of the
    Agricultural Marketing Act of 1946 (7 U.S.C. 1637b(b)) is amended--
                (1) by striking paragraph (1) and inserting the following
            new paragraph:
                ``(1) In general.--In establishing the program, the
            Secretary shall only--
                        ``(A)(i) 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
                        ``(ii) 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
                        ``(B) 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.''; and
                (2) in paragraph (2), by inserting ``or those that may
            significantly aid price discovery in the dairy markets'' after
            ``Federal milk marketing order'' each place it appears in
            subparagraphs (A), (B), and (C).

    SEC. 1462. FEDERAL MILK MARKETING ORDER PROGRAM PRE-HEARING PROCEDURE
                  FOR CLASS III PRICING.

        (a) In General.--The Secretary shall use the pre-hearing procedure
    described in this section to consider alternative formulas for Class
    III milk product pricing under section 8c of the Agricultural
    Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the
    Agricultural Marketing Agreement Act of 1937.
        (b) Requests for Proposals.--
                (1) In general.--Not later than 120 days after the date of
            enactment of this Act, the Secretary shall issue a request for
            the submission by interested persons of preliminary proposals
            for replacement of the Class III milk product pricing formula.
                (2) Preliminary proposals.--Preliminary proposals submitted
            under paragraph (1)--
                        (A) may include competitive pay price formulas; and
                        (B) shall provide sufficient detail in concept to
                    serve as the basis for the convening by the Secretary
                    of a public information session for review and
                    discussion in accordance with section 900.24 of title
                    7, Code of Federal Regulations (as in effect on the
                    date of enactment of this Act), but need not conform
                    with the other procedural requirements of part 900 of
                    title 7, Code of Federal Regulations (as in effect on
                    the date of enactment of this Act).
        (c) Pre-hearing Information Session Review.--
                (1) In general.--Not later than 180 days after the date on
            which the Secretary issues a request under subsection (b)(1),
            the Secretary shall convene a public information session in
            accordance with section 900.24 of title 7, Code of Federal
            Regulations (as in effect on the date of enactment of this
            Act).
                (2) Requirements.--The Secretary shall review all
            preliminary proposals submitted under this section that are of
            sufficient conceptual detail to allow for the review described
            in paragraph (b)(2)(B).
        (d) Hearing Determination.--
                (1) In general.--Not later than 90 days after the conduct
            of the public information session under subsection (c), the
            Secretary shall determine whether to conduct a formal hearing
            in accordance with part 900 of title 7, Code of Federal
            Regulations (as in effect on the date of enactment of this
            Act).
                (2) Hearing to be conducted.--If the Secretary determines
            under paragraph (1) to conduct a formal hearing, the Secretary
            shall issue notice and conduct the hearing in accordance with
            part 900 of title 7, Code of Federal Regulations (as in effect
            on the date of enactment of this Act).
                (3) Hearing not to be conducted.--If the Secretary
            determines under paragraph (1) not to conduct a formal hearing,
            not later than 90 days after that determination, 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 written report that explains the basis
            for the decision.
        (e) Proceeding With a Hearing at Any Time.--Consistent with the
    purposes of this section, the Secretary may dispense with the pre-
    hearing requirements of this section and initiate at any time a formal
    hearing under part 900 of title 7, Code of Federal Regulations (as in
    effect on the date of enactment of this Act).

     PART III--REPEAL OR REAUTHORIZATION OF OTHER DAIRY-RELATED PROVISIONS

    SEC. 1471. REPEAL OF DAIRY PRODUCT PRICE SUPPORT AND MILK INCOME LOSS
                  CONTRACT PROGRAMS.

        (a) Repeal of Dairy Product Price Support Program.--Section 1501 of
    the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8771) is
    repealed.
        (b) Repeal of Milk Income Loss Contract Program.--
                (1) Payments under milk income loss contract program.--
            Section 1506(c)(3) of the Food, Conservation, and Energy Act of
            2008 (7 U.S.C. 8773(c)(3)) is amended--
                        (A) in subparagraph (A), by inserting ``and'' after
                    the semicolon;
                        (B) in subparagraph (B), by striking ``August 31,
                    2013, 45 percent; and'' and inserting ``June 30, 2014,
                    45 percent.''; and
                        (C) by striking subparagraph (C).
                (2) Extension.--Section 1506(h)(1) of the Food,
            Conservation, and Energy Act of 2008 (7 U.S.C. 8773(h)(1)) is
            amended by striking ``September 30, 2013'' and inserting ``June
            30, 2014''.
                (3) Repeal.--Effective July 1, 2014, section 1506 of the
            Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is
            repealed.

    SEC. 1472. REPEAL OF DAIRY EXPORT INCENTIVE PROGRAM.

        (a) Repeal.--Section 153 of the Food Security Act of 1985 (15
    U.S.C. 713a-14) is repealed.
        (b) Conforming Amendments.--Section 902(2) of the Trade Sanctions
    Reform and Export Enhancement Act of 2000 (22 U.S.C. 7201(2)) is
    amended--
                (1) by striking subparagraph (D); and
                (2) by redesignating subparagraphs (E) and (F) as
            subparagraphs (D) and (E), respectively.

    SEC. 1473. EXTENSION OF DAIRY FORWARD PRICING PROGRAM.

        Section 1502(e) of the Food, Conservation, and Energy Act of 2008
    (7 U.S.C. 8772(e)) is amended--
                (1) in paragraph (1), by striking ``2012'' and inserting
            ``2018''; and
                (2) in paragraph (2), by striking ``2015'' and inserting
            ``2021''.

    SEC. 1474. EXTENSION OF DAIRY INDEMNITY PROGRAM.

        Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended by
    striking ``2012'' and inserting ``2018''.

    SEC. 1475. EXTENSION OF DAIRY PROMOTION AND RESEARCH PROGRAM.

        Section 113(e)(2) of the Dairy Production Stabilization Act of 1983
    (7 U.S.C. 4504(e)(2)) is amended by striking ``2012'' and inserting
    ``2018''.

    SEC. 1476. EXTENSION OF FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.

        Section 1509(a) of the Food, Conservation, and Energy Act of 2008
    (Public Law 110-246; 122 Stat. 1726) is amended by inserting ``or other
    funds'' after ``Subject to the availability of appropriations''.

                  PART IV--FEDERAL MILK MARKETING ORDER REFORM

    SEC. 1481. FEDERAL MILK MARKETING ORDERS.

        (a) Amendments.--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 ``milk marketing order''), as
    required by this section.
        (b) Use of End-Product Price Formulas.--In carrying out subsection
    (a), the Secretary shall--
                (1) consider replacing the use of end-product price
            formulas with other pricing alternatives; and
                (2) 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).

                             PART V--EFFECTIVE DATE

    SEC. 1491. EFFECTIVE DATE.

        Except as otherwise provided in this subtitle, this subtitle and
    the amendments made by this subtitle take effect on October 1, 2013.

       Subtitle E--Supplemental Agricultural Disaster Assistance Programs

    SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE PROGRAMS.

        (a) Definitions.--In this section:
                (1) Eligible producer on a farm.--
                        (A) In general.--The term ``eligible producer on a
                    farm'' 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.
                        (B) Description.--An individual or entity referred
                    to in subparagraph (A) is--
                                (i) a citizen of the United States;
                                (ii) a resident alien;
                                (iii) a partnership of citizens of the
                            United States; or
                                (iv) a corporation, limited liability
                            corporation, or other farm organizational
                            structure organized under State law.
                (2) Farm.--
                        (A) In general.--The term ``farm'' 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.
                        (B) Aquaculture.--In the case of aquaculture, the
                    term ``farm'' 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.
                        (C) Honey.--In the case of honey, the term ``farm''
                    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.
                (3) Farm-raised fish.--The term ``farm-raised fish'' means
            any aquatic species that is propagated and reared in a
            controlled environment.
                (4) Livestock.--The term ``livestock'' includes--
                        (A) cattle (including dairy cattle);
                        (B) bison;
                        (C) poultry;
                        (D) sheep;
                        (E) swine;
                        (F) horses; and
                        (G) other livestock, as determined by the
                    Secretary.
        (b) Livestock Indemnity Payments.--
                (1) Payments.--For each of fiscal years 2012 through 2018,
            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--
                        (A) attacks by animals reintroduced into the wild
                    by the Federal Government or protected by Federal law,
                    including wolves; or
                        (B) 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.
                (2) Payment rates.--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.
                (3) Special rule for payments made due to disease.--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)).
        (c) Livestock Forage Disaster Program.--
                (1) Establishment.--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--
                        (A) the livestock forage assistance functions of--
                                (i) 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
                                (ii) 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
                        (B) 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).
                (2) Definitions.--In this subsection:
                        (A) Covered livestock.--
                                (i) In general.--Except as provided in
                            clause (ii), the term ``covered livestock''
                            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--
                                        (I) owned;
                                        (II) leased;
                                        (III) purchased;
                                        (IV) entered into a contract to
                                    purchase;
                                        (V) was a contract grower; or
                                        (VI) sold or otherwise disposed of
                                    due to an eligible forage loss during--
                                                (aa) the current production
                                            year; or
                                                (bb) subject to paragraph
                                            (4)(B)(ii), 1 or both of the 2
                                            production years immediately
                                            preceding the current
                                            production year.
                                (ii) Exclusion.--The term ``covered
                            livestock'' 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.
                        (B) Drought monitor.--The term ``drought monitor''
                    means a system for classifying drought severity
                    according to a range of abnormally dry to exceptional
                    drought, as defined by the Secretary.
                        (C) Eligible forage loss.--The term ``eligible
                    forage loss'' 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--
                                (i) is grown on land that is native or
                            improved pastureland with permanent vegetative
                            cover; or
                                (ii) is a crop planted specifically for the
                            purpose of providing grazing for covered
                            livestock of an eligible livestock producer.
                        (D) Eligible livestock producer.--
                                (i) In general.--The term ``eligible
                            livestock producer'' means an eligible producer
                            on a farm that--
                                        (I) 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;
                                        (II) 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;
                                        (III) certifies the eligible forage
                                    loss; and
                                        (IV) meets all other eligibility
                                    requirements established under this
                                    subsection.
                                (ii) Exclusion.--The term ``eligible
                            livestock producer'' 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.
                        (E) Normal carrying capacity.--The term ``normal
                    carrying capacity'', 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.
                        (F) Normal grazing period.--The term ``normal
                    grazing period'', with respect to a county, means the
                    normal grazing period during the calendar year for the
                    county, as determined under paragraph (4)(D)(i).
                (3) Program.--For each of fiscal years 2012 through 2018,
            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.
                (4) Assistance for eligible forage losses due to drought
            conditions.--
                        (A) Eligible forage losses.--
                                (i) In general.--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--
                                        (I) is native or improved
                                    pastureland with permanent vegetative
                                    cover; or
                                        (II) is planted to a crop planted
                                    specifically for the purpose of
                                    providing grazing for covered
                                    livestock.
                                (ii) Exclusions.--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).
                        (B) Monthly payment rate.--
                                (i) In general.--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 50 percent of the
                            lesser of--
                                        (I) the monthly feed cost for all
                                    covered livestock owned or leased by
                                    the eligible livestock producer, as
                                    determined under subparagraph (C); or
                                        (II) the monthly feed cost
                                    calculated by using the normal carrying
                                    capacity of the eligible grazing land
                                    of the eligible livestock producer.
                                (ii) Partial compensation.--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).
                        (C) Monthly feed cost.--
                                (i) In general.--The monthly feed cost
                            shall equal the product obtained by
                            multiplying--
                                        (I) 30 days;
                                        (II) a payment quantity that is
                                    equal to the feed grain equivalent, as
                                    determined under clause (ii); and
                                        (III) a payment rate that is equal
                                    to the corn price per pound, as
                                    determined under clause (iii).
                                (ii) Feed grain equivalent.--For purposes
                            of clause (i)(II), the feed grain equivalent
                            shall equal--
                                        (I) in the case of an adult beef
                                    cow, 15.7 pounds of corn per day; or
                                        (II) 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.
                                (iii) Corn price per pound.--For purposes
                            of clause (i)(III), the corn price per pound
                            shall equal the quotient obtained by dividing--
                                        (I) the lesser of--
                                                (aa) 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
                                                (bb) the average national
                                            marketing year average corn
                                            price per bushel for the most
                                            recent 5 crop years, excluding
                                            each of the crop years with the
                                            highest and lowest prices; by
                                        (II) 56.
                        (D) Normal grazing period and drought monitor
                    intensity.--
                                (i) FSA county committee determinations.--
                                        (I) In general.--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, except that the normal
                                    grazing period shall not exceed 240
                                    days.
                                        (II) Changes.--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.
                                (ii) Drought intensity.--
                                        (I) D2.--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).
                                        (II) D3.--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--
                                                (aa) in an amount equal to
                                            2 monthly payments using the
                                            monthly payment rate determined
                                            under subparagraph (B); or
                                                (bb) 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 3 monthly payments
                                            using the monthly payment rate
                                            determined under subparagraph
                                            (B).
                                (iii) Annual payment based on drought
                            conditions determined by means other than the
                            u.s. drought monitor.--
                                        (I) In general.--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).
                                        (II) No duplicate payment.--A
                                    producer may not receive a payment
                                    under both clause (ii) and this clause.
                (5) Assistance for losses due to fire on public managed
            land.--
                        (A) In general.--An eligible livestock producer may
                    receive assistance under this paragraph only if--
                                (i) the eligible forage losses occur on
                            rangeland that is managed by a Federal agency;
                            and
                                (ii) the eligible livestock producer is
                            prohibited by the Federal agency from grazing
                            the normal permitted livestock on the managed
                            rangeland due to a fire.
                        (B) Payment rate.--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).
                        (C) Payment duration.--
                                (i) In general.--Subject to clause (ii), an
                            eligible livestock producer shall be eligible
                            to receive assistance under this paragraph for
                            the period--
                                        (I) beginning on the date on which
                                    the Federal agency excludes the
                                    eligible livestock producer from using
                                    the managed rangeland for grazing; and
                                        (II) ending on the last day of the
                                    Federal lease of the eligible livestock
                                    producer.
                                (ii) Limitation.--An eligible livestock
                            producer may only receive assistance under this
                            paragraph for losses that occur on not more
                            than 180 days per year.
                (6) Assistance for eligible forage losses due to other than
            drought or fire.--
                        (A) Eligible forage losses.--
                                (i) In general.--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--
                                        (I) is native or improved
                                    pastureland with permanent vegetative
                                    cover; or
                                        (II) is planted to a crop planted
                                    specifically for the purpose of
                                    providing grazing for covered
                                    livestock.
                                (ii) Exclusions.--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).
                        (B) Payments for eligible forage losses.--
                                (i) In general.--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--
                                        (I) drought under paragraph (4);
                                    and
                                        (II) fire on public managed land
                                    under paragraph (5).
                                (ii) Terms and conditions.--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.
                (7) No duplicative payments.--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.
                (8) Determinations by secretary.--A determination made by
            the Secretary under this subsection shall be final and
            conclusive.
        (d) Emergency Assistance for Livestock, Honey Bees, and Farm-raised
    Fish.--
                (1) In general.--For each of fiscal years 2012 through
            2018, the Secretary shall use not more than $15,000,000 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).
                (2) Use of funds.--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.
                (3) Availability of funds.--Any funds made available under
            this subsection shall remain available until expended.
        (e) Tree Assistance Program.--
                (1) Definitions.--In this subsection:
                        (A) Eligible orchardist.--The term ``eligible
                    orchardist'' means a person that produces annual crops
                    from trees for commercial purposes.
                        (B) Natural disaster.--The term ``natural
                    disaster'' means plant disease, insect infestation,
                    drought, fire, freeze, flood, earthquake, lightning, or
                    other occurrence, as determined by the Secretary.
                        (C) Nursery tree grower.--The term ``nursery tree
                    grower'' means a person who produces nursery,
                    ornamental, fruit, nut, or Christmas trees for
                    commercial sale, as determined by the Secretary.
                        (D) Tree.--The term ``tree'' includes a tree, bush,
                    and vine.
                (2) Eligibility.--
                        (A) Loss.--Subject to subparagraph (B), for each of
                    fiscal years 2012 through 2018, the Secretary shall use
                    such sums as are necessary of the funds of the
                    Commodity Credit Corporation to provide assistance--
                                (i) 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
                                (ii) 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.
                        (B) Limitation.--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).
                (3) Assistance.--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--
                        (A)(i) 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
                        (ii) at the option of the Secretary, sufficient
                    seedlings to reestablish a stand; and
                        (B) 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).
                (4) Limitations on assistance.--
                        (A) Definitions of legal entity and person.--In
                    this paragraph, the terms ``legal entity'' and
                    ``person'' have the meaning given those terms in
                    section 1001(a) of the Food Security Act of 1985 (7
                    U.S.C. 1308(a)).
                        (B) Amount.--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.
                        (C) Acres.--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.
        (f) Payments.--
                (1) Payment limitations.--
                        (A) Definitions of legal entity and person.--In
                    this subsection, the terms ``legal entity'' and
                    ``person'' have the meanings given those terms in
                    section 1001(a) of the Food Security Act of 1985 (7
                    U.S.C. 1308(a)).
                        (B) Amount.--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.
                        (C) Direct attribution.--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.
                (2) Payment delivery.--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.

                           Subtitle F--Administration

    SEC. 1601. ADMINISTRATION GENERALLY.

        (a) Use of Commodity Credit Corporation.--The Secretary shall use
    the funds, facilities, and authorities of the Commodity Credit
    Corporation to carry out this title.
        (b) Determinations by Secretary.--A determination made by the
    Secretary under this title shall be final and conclusive.
        (c) Regulations.--
                (1) In general.--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.
                (2) Procedure.--The promulgation of the regulations and
            administration of this title and the amendments made by this
            title and sections 11001 and 11012 shall be made without regard
            to--
                        (A) the notice and comment provisions of section
                    553 of title 5, United States Code;
                        (B) chapter 35 of title 44, United States Code
                    (commonly known as the ``Paperwork Reduction Act'');
                    and
                        (C) 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.
                (3) Congressional review of agency rulemaking.--In carrying
            out this subsection, the Secretary shall use the authority
            provided under section 808 of title 5, United States Code.
        (d) Adjustment Authority Related to Trade Agreements Compliance.--
                (1) Required determination; adjustment.--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.
                (2) Congressional notification.--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.

    SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

        (a) Agricultural Adjustment Act of 1938.--The following provisions
    of the Agricultural Adjustment Act of 1938 shall not be applicable to
    the 2014 through 2018 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, 2018:
                (1) Parts II through V of subtitle B of title III (7 U.S.C.
            1326 et seq.).
                (2) In the case of upland cotton, section 377 (7 U.S.C.
            1377).
                (3) Subtitle D of title III (7 U.S.C. 1379a et seq.).
                (4) Title IV (7 U.S.C. 1401 et seq.).
        (b) Agricultural Act of 1949.--The following provisions of the
    Agricultural Act of 1949 shall not be applicable to the 2014 through
    2018 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,
    2018:
                (1) Section 101 (7 U.S.C. 1441).
                (2) Section 103(a) (7 U.S.C. 1444(a)).
                (3) Section 105 (7 U.S.C. 1444b).
                (4) Section 107 (7 U.S.C. 1445a).
                (5) Section 110 (7 U.S.C. 1445e).
                (6) Section 112 (7 U.S.C. 1445g).
                (7) Section 115 (7 U.S.C. 1445k).
                (8) Section 201 (7 U.S.C. 1446).
                (9) Title III (7 U.S.C. 1447 et seq.).
                (10) Title IV (7 U.S.C. 1421 et seq.), other than sections
            404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
                (11) Title V (7 U.S.C. 1461 et seq.).
                (12) Title VI (7 U.S.C. 1471 et seq.).
        (c) Suspension of Certain Quota Provisions.--The joint resolution
    entitled ``A joint resolution relating to corn and wheat marketing
    quotas under the Agricultural Adjustment Act of 1938, as amended'',
    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 2014
    through 2018.

    SEC. 1603. PAYMENT LIMITATIONS.

        (a) In General.--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:
        ``(b) Limitation on Payments for Peanuts and Other Covered
    Commodities.--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 subtitle A of title I of
    the Agriculture Reform, Food, and Jobs Act of 2013 for--
                ``(1) peanuts may not exceed $50,000; and
                ``(2) 1 or more other covered commodities may not exceed
            $50,000.''.
        (b) Limitation on Marketing Loan Gains and Loan Deficiency Payments
    for Peanuts and Other Loan Commodities.--Section 1001 of the Food
    Security Act of 1985 (7 U.S.C. 1308) is amended by striking subsection
    (d) and inserting the following:
        ``(d) Limitation on Marketing Loan Gains and Loan Deficiency
    Payments for Peanuts and Other Loan Commodities.--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 2013 (or a successor
    provision) for--
                ``(1) peanuts may not exceed $75,000; and
                ``(2) 1 or more other loan commodities may not exceed
            $75,000.''.
        (c) Conforming Amendments.--
                (1) Section 1001 of the Food Security Act of 1985 (7 U.S.C.
            1308) is amended--
                        (A) in subsection (a)(1), by striking ``section
                    1001 of the Food, Conservation, and Energy Act of
                    2008'' and inserting ``section 1104 of the Agriculture
                    Reform, Food, and Jobs Act of 2013'';
                        (B) in subsection (e)--
                                (i) in paragraph (1), by striking
                            ``subsections (b) and (c) and a program
                            described in paragraphs (1)(C)'' and inserting
                            ``subsection (b) and a program described in
                            paragraph (1)(B)''; and
                                (ii) in paragraph (3)(B), by striking
                            ``subsections (b) and (c)'' each place it
                            appears and inserting ``subsection (b)'';
                        (C) in subsection (f)--
                                (i) by striking ``or title XII'' each place
                            it appears in paragraphs (5)(A) and (6)(A) and
                            inserting ``, title I of the Agriculture
                            Reform, Food, and Jobs Act of 2013, or title
                            XII'';
                                (ii) in paragraph (2), by striking
                            ``Subsections (b) and (c)'' and inserting
                            ``Subsection (b)'';
                                (iii) in paragraph (4)(B), by striking
                            ``subsection (b) or (c)'' and inserting
                            ``subsection (b)'';
                                (iv) in paragraph (5)--
                                        (I) in subparagraph (A), by
                                    striking ``subsection (d)'' and
                                    inserting ``subsection (c)''; and
                                        (II) in subparagraph (B), by
                                    striking ``subsection (b), (c), or
                                    (d)'' and inserting ``subsection (b) or
                                    (c)''; and
                                (v) in paragraph (6)--
                                        (I) in subparagraph (A), by
                                    striking ``subsection (d), except as
                                    provided in subsection (g)'' and
                                    inserting ``subsection (c), except as
                                    provided in subsection (f)''; and
                                        (II) in subparagraph (B), by
                                    striking ``subsections (b), (c), and
                                    (d)'' and inserting ``subsections (b)
                                    and (c)'';
                        (D) in subsection (g)--
                                (i) in paragraph (1)--
                                        (I) bv striking ``subsection
                                    (f)(6)(A)'' and inserting ``subsection
                                    (e)(6)(A)'' and
                                        (II) by striking ``subsection (b)
                                    or (c)'' and inserting ``subsection
                                    (b)''; and
                                (ii) in paragraph (2)(A), by striking
                            ``subsections (b) and (c)'' and inserting
                            ``subsection (b)''; and
                        (E) by redesignating subsections (d) through (h) as
                    subsections (c) through (g), respectively.
                (2) Section 1001A of the Food Security Act of 1985 (7
            U.S.C. 1308-1) is amended--
                        (A) in subsection (a), by striking ``subsections
                    (b) and (c)'' and inserting ``subsection (b)''; and
                        (B) in subsection (b)(1), by striking ``subsection
                    (b) or (c)'' and inserting ``subsection (b)''.
                (3) 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 ``subsections (b) and (c)'' and inserting
            ``subsection (b)''.
                (4) Section 1001C(a) of the Food Security Act of 1985 (7
            U.S.C. 1308-3(a)) is amended by inserting ``title I of the
            Agriculture Reform, Food, and Jobs Act of 2013,'' after
            ``2008,''.
        (d) Application.--The amendments made by this section shall apply
    beginning with the 2014 crop year.

    SEC. 1604. PAYMENTS LIMITED TO ACTIVE FARMERS.

        Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308-1) is
    amended--
                (1) in subsection (b)(2)--
                        (A) by striking ``or active personal management''
                    each place it appears in subparagraphs (A)(i)(II) and
                    (B)(ii); and
                        (B) in subparagraph (C), by striking ``, 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'' and
                    inserting ``are met by partners or members making a
                    significant contribution of personal labor, those
                    partners or members''; and
                (2) in subsection (c)--
                        (A) in paragraph (1)--
                                (i) by striking subparagraph (A) and
                            inserting the following:
                        ``(A) the landowner share-rents the land at a rate
                    that is usual and customary;'';
                                (ii) in subparagraph (B), by striking the
                            period at the end and inserting ``; and''; and
                                (iii) by adding at the end the following:
                        ``(C) the share of the payments received by the
                    landowner is commensurate with the share of the crop or
                    income received as rent.'';
                        (B) in paragraph (2)(A), by striking ``active
                    personal management or'';
                        (C) in paragraph (5)--
                                (i) by striking ``(5)'' and all that
                            follows through ``(A) In general.--A person''
                            and inserting the following:
                ``(5) Custom farming services.--A person'';
                                (ii) by inserting ``under usual and
                            customary terms'' after ``services''; and
                                (iii) by striking subparagraph (B); and
                        (D) by adding at the end the following:
                ``(7) Farm managers.--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--
                        ``(A) makes a significant contribution of
                    management to the farming operation necessary for the
                    farming operation, taking into account--
                                ``(i) the size and complexity of the
                            farming operation; and
                                ``(ii) the management requirements normally
                            and customarily required by similar farming
                            operations;
                        ``(B) is the only person in the farming operation
                    qualifying as actively engaged in farming;
                        ``(C) does not use the management contribution
                    under this paragraph to qualify as actively engaged in
                    more than 1 farming operation; and
                        ``(D) 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).''.

    SEC. 1605. ADJUSTED GROSS INCOME LIMITATION.

        (a) In General.--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:
                ``(1) Commodity programs.--
                        ``(A) Limitation.--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.
                        ``(B) Covered benefits.--Subparagraph (A) applies
                    with respect to the following:
                                ``(i) A payment under section 1107 or 1108
                            of the Agriculture Reform, Food, and Jobs Act
                            of 2013.
                                ``(ii) A marketing loan gain or loan
                            deficiency payment under subtitle B of title I
                            of the Agriculture Reform, Food, and Jobs Act
                            of 2013.
                                ``(iii) A payment under subtitle E of the
                            Agriculture Reform, Food, and Jobs Act of
                            2013.''.
                                ``(iv) A payment under section 196 of the
                            Federal Agriculture Improvement and Reform Act
                            of 1996 (7 U.S.C. 7333).''.
        (b) Application.--The amendments made by this section shall apply
    beginning with the 2014 crop year.

    SEC. 1606. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.

        Section 1621(d) of the Food, Conservation, and Energy Act of 2008
    (7 U.S.C. 8792(d)) is amended by striking ``2012'' and inserting
    ``2018''.

    SEC. 1607. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

        Section 164 of the Federal Agriculture Improvement and Reform Act
    of 1996 (7 U.S.C. 7284) is amended by striking ``and title I of the
    Food, Conservation, and Energy Act of 2008'' each place it appears and
    inserting ``title I of the Food, Conservation, and Energy Act of 2008
    (7 U.S.C. 8702 et seq.), and title I of the Agriculture Reform, Food,
    and Jobs Act of 2013''.

    SEC. 1608. PREVENTION OF DECEASED INDIVIDUALS RECEIVING PAYMENTS UNDER
                  FARM COMMODITY PROGRAMS.

        (a) Reconciliation.--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.
        (b) Preclusion.--The Secretary shall preclude the issuance of
    payments to, and on behalf of, deceased individuals that were not
    eligible for payments.

    SEC. 1609. APPEALS.

        (a) Direction, Control, and Support.--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:
        ``(c) Direction, Control, and Support.--
                ``(1) Direction and control.--
                        ``(A) In general.--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.
                        ``(B) Administrative support.--The Division shall
                    not receive administrative support (except on a
                    reimbursable basis) from any agency other than the
                    Office of the Secretary.
                        ``(C) Prohibition on delegation.--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.
                ``(2) Exception.--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.''.
        (b) Conforming Amendment.--Section 296(b) of the Department of
    Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
                (1) in the matter preceding paragraph (1) by striking
            ``affect--'' and inserting ``affect:'';
                (2) by striking ``the authority'' each place it appears in
            paragraphs (1) through (7) and inserting ``The authority'';
                (3) by striking the semicolon at the end of each of
            paragraphs (1) through (5) and inserting a period;
                (4) in paragraph (6)(C), by striking ``; or'' at the end
            and inserting a period; and
                (5) by adding at the end the following:
                ``(8) The authority of the Secretary to carry out
            amendments made by the Agriculture Reform, Food, and Jobs Act
            of 2013.''.

    SEC. 1610. TECHNICAL CORRECTIONS.

        (a) 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.
        (b)(1) 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
    ``1703(a)'' each place it appears and inserting ``1603(a)''.
        (2) 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).

    SEC. 1611. ASSIGNMENT OF PAYMENTS.

        (a) In General.--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.
        (b) Notice.--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.

    SEC. 1612. TRACKING OF BENEFITS.

        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.

    SEC. 1613. SIGNATURE AUTHORITY.

        (a) In General.--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.
        (b) Affirmation.--
                (1) In general.--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).
                (2) No retroactive effect.--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--
                        (A) relied on the prior approval by the Secretary
                    of the documents in good faith; and
                        (B) substantively complied with all program
                    requirements.

    SEC. 1614. IMPLEMENTATION.

        (a) Streamlining.--In implementing this title, the Secretary shall,
    to the maximum extent practicable--
                (1) seek to reduce administrative burdens and costs to
            producers by streamlining and reducing paperwork, forms, and
            other administrative requirements;
                (2) improve coordination, information sharing, and
            administrative work with the Risk Management Agency and the
            Natural Resources Conservation Service; and
                (3) take advantage of new technologies to enhance
            efficiency and effectiveness of program delivery to producers.
        (b) Implementation.--On October 1, 2013, the Secretary shall make
    available to the Farm Service Agency to carry out this title
    $97,000,000.

                             TITLE II--CONSERVATION

                    Subtitle A--Conservation Reserve Program

    SEC. 2001. EXTENSION AND ENROLLMENT REQUIREMENTS OF CONSERVATION
                  RESERVE PROGRAM.

        (a) Extension.--Section 1231(a) of the Food Security Act of 1985
    (16 U.S.C. 3831(a)) is amended by striking ``2012'' and inserting
    ``2018''.
        (b) Eligible Land.--Section 1231(b) of the Food Security Act of
    1985 (16 U.S.C. 3831(b)) is amended--
                (1) in paragraph (1)(B), by striking ``the date of
            enactment of the Food, Conservation, and Energy Act of 2008''
            and inserting ``the date of enactment of the Agriculture
            Reform, Food, and Jobs Act of 2013'';
                (2) by striking paragraph (2) and redesignating paragraph
            (3) as paragraph (2);
                (3) by inserting before paragraph (4) the following:
                ``(3) grassland that--
                        ``(A) contains forbs or shrubland (including
                    improved rangeland and pastureland) for which grazing
                    is the predominant use;
                        ``(B) is located in an area historically dominated
                    by grassland; and
                        ``(C) 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;'';
                (4) in paragraph (4)(C), by striking ``filterstrips devoted
            to trees or shrubs'' and inserting ``filterstrips and riparian
            buffers devoted to trees, shrubs, or grasses''; and
                (5) by striking paragraph (5) and inserting the following:
                ``(5) the portion of land in a field not enrolled in the
            conservation reserve in a case in which--
                        ``(A) 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
                        ``(B) the remainder of the field is--
                                ``(i) infeasible to farm; and
                                ``(ii) enrolled at regular rental rates.''.
        (c) Planting Status of Certain Land.--Section 1231(c) of the Food
    Security Act of 1985 (16 U.S.C. 3831(c)) is amended by striking ``if''
    and all that follows through the period at the end and inserting ``if,
    during the crop year, the land was devoted to a conserving use.''.
        (d) Enrollment.--Section 1231 of the Food Security Act of 1985 (16
    U.S.C. 3831) is amended by striking subsection (d) and inserting the
    following:
        ``(d) Enrollment.--
                ``(1) Maximum acreage enrolled.--The Secretary may maintain
            in the conservation reserve at any 1 time during--
                        ``(A) fiscal year 2014, no more than 30,000,000
                    acres;
                        ``(B) fiscal year 2015, no more than 27,500,000
                    acres;
                        ``(C) fiscal year 2016, no more than 26,500,000
                    acres;
                        ``(D) fiscal year 2017, no more than 25,500,000
                    acres; and
                        ``(E) fiscal year 2018, no more than 25,000,000
                    acres.
                ``(2) Grassland.--
                        ``(A) Limitation.--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 2014
                    through 2018 fiscal years.
                        ``(B) Priority.--In enrolling acres under
                    subparagraph (A), the Secretary may give priority to
                    land with expiring conservation reserve program
                    contracts.
                        ``(C) Method of enrollment.--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.''.
        (e) Duration of Contract.--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:
                ``(2) Special rule for certain land.--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.''.
        (f) Conservation Priority Areas.--Section 1231(f) of the Food
    Security Act of 1985 (16 U.S.C. 3831(f)) is amended--
                (1) in paragraph (1), by striking ``watershed areas of the
            Chesapeake Bay Region, the Great Lakes Region, the Long Island
            Sound Region, and other'';
                (2) in paragraph (2), by striking ``watersheds.--
            Watersheds'' and inserting ``areas.--Areas''; and
                (3) in paragraph (3), by striking ``a watershed's
            designation--'' and all that follows through the period at the
            end and inserting ``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.''.

    SEC. 2002. FARMABLE WETLAND PROGRAM.

        (a) Extension.--Section 1231B(a)(1) of the Food Security Act of
    1985 (16 U.S.C. 3831b(a)(1)) is amended--
                (1) by striking ``2012'' and inserting ``2018''; and
                (2) by striking ``a program'' and inserting ``a farmable
            wetland program''.
        (b) Eligible Acreage.--Section 1231B(b)(1)(B) of the Food Security
    Act of 1985 (16 U.S.C. 3831b(b)(1)(B)) is amended by striking ``flow
    from a row crop agriculture drainage system'' and inserting ``surface
    and subsurface flow from row crop agricultural production''.
        (c) Clerical Amendments.--Section 1231B of the Food Security Act of
    1985 (16 U.S.C. 3831b) is amended--
                (1) by striking the heading and inserting the following:

    ``SEC. 1231B. FARMABLE WETLAND PROGRAM.'';

            and
                (2) in subsection (f)(2), by striking ``section
            1234(c)(2)(B)'' and inserting ``section 1234(c)(2)(A)(ii)''.

    SEC. 2003. DUTIES OF OWNERS AND OPERATORS.

        (a) Limitation on Harvesting, Grazing or Commercial Use of
    Forage.--Section 1232(a)(8) of the Food Security Act of 1985 (16 U.S.C.
    3832(a)(8)) is amended by striking ``except that'' and all that follows
    through the semicolon at the end of the paragraph and inserting
    ``except as provided in section 1233(b);''.
        (b) Conservation Plan Requirements.--Section 1232 of the Food
    Security Act of 1985 (16 U.S.C. 3832) is amended by striking subsection
    (b) and inserting the following:
        ``(b) Conservation Plans.--The plan referred to in subsection
    (a)(1) shall set forth--
                ``(1) the conservation measures and practices to be carried
            out by the owner or operator during the term of the contract;
            and
                ``(2) the commercial use, if any, to be permitted on the
            land during the term.''.
        (c) Rental Payment Reduction.--Section 1232 of the Food Security
    Act of 1985 (16 U.S.C. 3832) is amended by striking subsection (d).

    SEC. 2004. DUTIES OF THE SECRETARY.

        Section 1233 of the Food Security Act of 1985 (16 U.S.C. 3833) is
    amended to read as follows:

    ``SEC. 1233. DUTIES OF THE SECRETARY.

        ``(a) Cost-Share and Rental Payments.--In return for a contract
    entered into by an owner or operator, the Secretary shall--
                ``(1) 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
                ``(2) 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--
                        ``(A) 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;
                        ``(B) the retirement of any cropland base and
                    allotment history that the owner or operator agrees to
                    retire permanently; and
                        ``(C) the development and management of grassland
                    for multiple natural resource conservation benefits,
                    including soil, water, air, and wildlife.
        ``(b) Specified Activities Permitted.--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--
                ``(1) harvesting, grazing, or other commercial use of the
            forage in response to drought, flooding, or other emergency
            without any reduction in the rental rate;
                ``(2) grazing by livestock of a beginning farmer or rancher
            without any reduction in the rental rate, if the grazing is--
                        ``(A) 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
                        ``(B) described in subparagraph (B) or (C) of
                    paragraph (3);
                ``(3) 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--
                        ``(A) 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--
                                ``(i) shall develop appropriate vegetation
                            management requirements; and
                                ``(ii) 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;
                        ``(B) prescribed grazing for the control of
                    invasive species, which may be conducted annually;
                        ``(C) routine grazing, except that in permitting
                    routine grazing, the Secretary, in coordination with
                    the State technical committee--
                                ``(i) shall develop appropriate vegetation
                            management requirements and stocking rates for
                            the land that are suitable for continued
                            routine grazing; and
                                ``(ii) 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--
                                        ``(I) climate, soil type, and
                                    natural resources;
                                        ``(II) the number of years that
                                    should be required between routine
                                    grazing activities; and
                                        ``(III) how often during a year in
                                    which routine grazing is permitted that
                                    routine grazing should be allowed to
                                    occur; and
                        ``(D) 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--
                                ``(i) the location, size, and other
                            physical characteristics of the land;
                                ``(ii) the extent to which the land
                            contains threatened or endangered wildlife and
                            wildlife habitat; and
                                ``(iii) the purposes of the conservation
                            reserve program under this subchapter; and
                ``(4) 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.
        ``(c) Authorized Activities on Grassland.--Notwithstanding section
    1232(a)(8), for eligible land described in section 1231(b)(3), the
    Secretary shall permit the following activities:
                ``(1) 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.
                ``(2) Haying, mowing, or harvesting for seed production,
            subject to appropriate restrictions during the primary nesting
            season for critical birds in the area.
                ``(3) Fire presuppression, rehabilitation, and construction
            of fire breaks.
                ``(4) Grazing-related activities, such as fencing and
            livestock watering.
        ``(d) Resource Conserving Use.--
                ``(1) In general.--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.
                ``(2) Conservation plan.--The Secretary shall require an
            owner or operator carrying out the activities described in
            paragraph (1) to develop and implement a conservation plan.
                ``(3) Reenrollment prohibited.--Land altered under
            paragraph (1) may not be reenrolled in the conservation reserve
            program for 5 years.
                ``(4) Payment.--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).''.

    SEC. 2005. PAYMENTS.

        (a) Trees, Windbreaks, Shelterbelts, and Wildlife Corridors.--
    Section 1234(b)(3)(A) of the Food Security Act of 1985 (16 U.S.C.
    3834(b)(3)(A)) is amended--
                (1) in clause (i), by inserting ``and'' after the
            semicolon;
                (2) by striking clause (ii); and
                (3) by redesignating clause (iii) as clause (ii).
        (b) Incentives.--Section 1234(b)(3)(B) of the Food Security Act of
    1985 (16 U.S.C. 3834(b)(3)(B)) is amended--
                (1) in clause (i), by inserting ``, practices to improve
            the condition of resources on the land,'' after ``operator)'';
            and
                (2) by adding at the end the following:
                                ``(iii) Incentives.--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.''.
        (c) Annual Rental Payments.--Section 1234(c) of the Food Security
    Act of 1985 (16 U.S.C. 3834(c)) is amended--
                (1) in paragraph (1), by inserting ``and other eligible
            land'' after ``highly erodible cropland'' both places it
            appears;
                (2) by striking paragraph (2) and inserting the following:
                ``(2) Methods of determination.--
                        ``(A) In general.--The amounts payable to owners or
                    operators in the form of rental payments under
                    contracts entered into under this subchapter may be
                    determined through--
                                ``(i) the submission of bids for such
                            contracts by owners and operators in such
                            manner as the Secretary may prescribe; or
                                ``(ii) such other means as the Secretary
                            determines are appropriate.
                        ``(B) Grassland.--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.''; and
                (3) in paragraph (5)(A)--
                        (A) by striking ``The Secretary'' and inserting the
                    following:
                                ``(i) Survey.--The Secretary''; and
                        (B) by adding at the end the following:
                                ``(ii) Use.--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.''.
        (d) Payment Schedule.--Section 1234 of the Food Security Act of
    1985 (16 U.S.C. 3834) is amended by striking subsection (d) and
    inserting the following:
        ``(d) Payment Schedule.--
                ``(1) In general.--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.
                ``(2) Source.--Payments under this subchapter shall be made
            using the funds of the Commodity Credit Corporation.
                ``(3) Advance payment.--Payments under this subchapter may
            be made in advance of determination of performance.''.
        (e) Payment Limitation.--Section 1234(f) of the Food Security Act
    of 1985 (16 U.S.C. 3834(f)) is amended--
                (1) in paragraph (1), by striking ``, including rental
            payments made in the form of in-kind commodities,'';
                (2) by striking paragraph (3); and
                (3) by redesignating paragraph (4) as paragraph (2).

    SEC. 2006. CONTRACT REQUIREMENTS.

        Section 1235 of the Food Security Act of 1985 (16 U.S.C. 3835) is
    amended--
                (1) in subsection (f)--
                        (A) in paragraph (1)--
                                (i) in the matter preceding subparagraph
                            (A), by striking ``Duties'' and all that
                            follows through ``a beginning farmer or rancher
                            or'' and inserting ``Transition to covered
                            farmer or rancher.--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 or rancher, 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))), or a'';
                                (ii) in subparagraph (D), by striking ``the
                            farmer or rancher'' and inserting ``the covered
                            farmer or rancher''; and
                                (iii) in subparagraph (E), by striking
                            ``section 1001A(b)(3)(B)'' and inserting
                            ``section 1001''; and
                        (B) in paragraph (2), by striking ``requirement of
                    section 1231(h)(4)(B)'' and inserting ``option provided
                    under section 1234(c)(2)(A)(ii)''; and
                (2) by adding at the end the following:
        ``(g) Final Year of Contract.--The Secretary shall not consider an
    owner or operator to be in violation of a term or condition of a
    conservation reserve contract if--
                ``(1) during the year prior to expiration of the contract,
            the land is enrolled in the conservation stewardship program;
            and
                ``(2) the activity required under the conservation
            stewardship program pursuant to the enrollment is consistent
            with this subchapter.
        ``(h) Land Enrolled in Agricultural Conservation Easement
    Program.--The Secretary may terminate or modify a contract entered into
    under this subchapter if eligible land that is subject to such contract
    is transferred into the agricultural conservation easement program
    under subtitle H.''.

    SEC. 2007. CONVERSION OF LAND SUBJECT TO CONTRACT TO OTHER CONSERVING
                  USES.

        Section 1235A of the Food Security Act of 1985 (16 U.S.C. 3835a) is
    repealed.

    SEC. 2008. EFFECTIVE DATE.

        (a) In General.--The amendments made by this subtitle shall take
    effect on October 1, 2013, except, the amendment made by section
    2001(d), which shall take effect on the date of enactment of this Act.
        (b) Effect on Existing Contracts.--
                (1) In general.--Except as provided in paragraph (2), the
            amendments made by this subtitle 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, 2013, or any payments required to be
            made in connection with the contract.
                (2) Updating of existing contracts.--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, 2013, 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).

                  Subtitle B--Conservation Stewardship Program

    SEC. 2101. CONSERVATION STEWARDSHIP PROGRAM.

        (a) Revision of Current Program.--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:

                ``Subchapter B--Conservation Stewardship Program

    ``SEC. 1238D. DEFINITIONS.

        ``In this subchapter:
                ``(1) Agricultural operation.--The term `agricultural
            operation' means all eligible land, whether or not contiguous,
            that is--
                        ``(A) under the effective control of a producer at
                    the time the producer enters into a contract under the
                    program; and
                        ``(B) operated with equipment, labor, management,
                    and production or cultivation practices that are
                    substantially separate from other agricultural
                    operations, as determined by the Secretary.
                ``(2) Conservation activities.--
                        ``(A) In general.--The term `conservation
                    activities' means conservation systems, practices, or
                    management measures.
                        ``(B) Inclusions.--The term `conservation
                    activities' includes--
                                ``(i) structural measures, vegetative
                            measures, and land management measures,
                            including agriculture drainage management
                            systems, as determined by the Secretary; and
                                ``(ii) planning needed to address a
                            priority resource concern.
                ``(3) Conservation stewardship plan.--The term
            `conservation stewardship plan' means a plan that--
                        ``(A) identifies and inventories priority resource
                    concerns;
                        ``(B) establishes benchmark data and conservation
                    objectives;
                        ``(C) describes conservation activities to be
                    implemented, managed, or improved; and
                        ``(D) includes a schedule and evaluation plan for
                    the planning, installation, and management of the new
                    and existing conservation activities.
                ``(4) Eligible land.--
                        ``(A) In general.--The term `eligible land' means--
                                ``(i) private and tribal land on which
                            agricultural commodities, livestock, or forest-
                            related products are produced; and
                                ``(ii) land associated with the land
                            described in clause (i) on which priority
                            resource concerns could be addressed through a
                            contract under the program.
                        ``(B) Inclusions.--The term `eligible land'
                    includes--
                                ``(i) cropland;
                                ``(ii) grassland;
                                ``(iii) rangeland;
                                ``(iv) pastureland;
                                ``(v) nonindustrial private forest land;
                            and
                                ``(vi) other agricultural land (including
                            cropped woodland, marshes, and agricultural
                            land used for the production of livestock), as
                            determined by the Secretary.
                ``(5) Priority resource concern.--The term `priority
            resource concern' means a natural resource concern or problem,
            as determined by the Secretary, that--
                        ``(A) is identified at the national, State or local
                    level, as a priority for a particular area of the
                    State;
                        ``(B) represents a significant concern in a State
                    or region; and
                        ``(C) is likely to be addressed successfully
                    through the implementation of conservation activities
                    under this program.
                ``(6) Program.--The term `program' means the conservation
            stewardship program established by this subchapter.
                ``(7) Stewardship threshold.--The term `stewardship
            threshold' means the level of management required, as
            determined by the Secretary, to conserve and improve the
            quality and condition of a natural resource.

    ``SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM.

        ``(a) Establishment and Purpose.--During each of fiscal years 2014
    through 2018, 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--
                ``(1) by undertaking additional conservation activities;
            and
                ``(2) by improving, maintaining, and managing existing
            conservation activities.
        ``(b) Exclusions.--
                ``(1) Land enrolled in other conservation programs.--
            Subject to paragraph (2), the following land (even if covered
            by the definition of eligible land) is not eligible for
            enrollment in the program:
                        ``(A) Land enrolled in the conservation reserve
                    program, unless--
                                ``(i) the conservation reserve contract
                            will expire at the end of the fiscal year in
                            which the land is to be enrolled in the
                            program; and
                                ``(ii) conservation reserve program
                            payments for land enrolled in the program cease
                            prior to the date on which the first program
                            payment is made to the applicant under this
                            subchapter.
                        ``(B) Land enrolled in the agricultural
                    conservation easement program in a wetland reserve
                    easement.
                        ``(C) Land enrolled in the conservation security
                    program.
                ``(2) Conversion to cropland.--Eligible land used for crop
            production after October 1, 2013, 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--
                        ``(A) the land had previously been enrolled in the
                    conservation reserve program;
                        ``(B) the land has been maintained using long-term
                    crop rotation practices, as determined by the
                    Secretary; or
                        ``(C) the land is incidental land needed for
                    efficient operation of the farm or ranch, as determined
                    by the Secretary.

    ``SEC. 1238F. STEWARDSHIP CONTRACTS.

        ``(a) Submission of Contract Offers.--To be eligible to participate
    in the conservation stewardship program, a producer shall submit a
    contract offer for the agricultural operation that--
                ``(1) 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
                ``(2) 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--
                        ``(A) installing and adopting additional
                    conservation activities; and
                        ``(B) 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.
        ``(b) Evaluation of Contract Offers.--
                ``(1) Ranking of applications.--In evaluating contract
            offers the Secretary shall rank applications based on--
                        ``(A) the level of conservation treatment on all
                    applicable priority resource concerns at the time of
                    application;
                        ``(B) the degree to which the proposed conservation
                    activities effectively increase conservation
                    performance;
                        ``(C) the number of applicable priority resource
                    concerns proposed to be treated to meet or exceed the
                    stewardship threshold by the end of the contract;
                        ``(D) 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;
                        ``(E) 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
                        ``(F) the extent to which priority resource
                    concerns will be addressed when transitioning from the
                    conservation reserve program to agricultural
                    production.
                ``(2) Prohibition.--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.
                ``(3) Additional criteria.--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.
        ``(c) Entering Into Contracts.--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.
        ``(d) Contract Provisions.--
                ``(1) Term.--A conservation stewardship contract shall be
            for a term of 5 years.
                ``(2) Required provisions.--The conservation stewardship
            contract of a producer shall--
                        ``(A) 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);
                        ``(B) require the producer--
                                ``(i) to implement a conservation
                            stewardship plan that describes the program
                            purposes to be achieved through 1 or more
                            conservation activities;
                                ``(ii) 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
                                ``(iii) not to conduct any activities on
                            the agricultural operation that would tend to
                            defeat the purposes of the program;
                        ``(C) permit all economic uses of the eligible land
                    that--
                                ``(i) maintain the agricultural nature of
                            the land; and
                                ``(ii) are consistent with the conservation
                            purposes of the conservation stewardship
                            contract;
                        ``(D) 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;
                        ``(E) include provisions where upon the violation
                    of a term or condition of the contract at any time the
                    producer has control of the land--
                                ``(i) if the Secretary determines that the
                            violation warrants termination of the
                            contract--
                                        ``(I) to forfeit all rights to
                                    receive payments under the contract;
                                    and
                                        ``(II) 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
                                ``(ii) 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;
                        ``(F) include provisions in accordance with
                    paragraphs (3) and (4) of this section; and
                        ``(G) include any additional provisions the
                    Secretary determines are necessary to carry out the
                    program.
                ``(3) Change of interest in land subject to a contract.--
                        ``(A) In general.--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.
                        ``(B) Transfer of duties and rights.--Subparagraph
                    (A) shall not apply if--
                                ``(i) 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;
                                ``(ii) the transferee meets the eligibility
                            requirements of the program; and
                                ``(iii) the Secretary approves the transfer
                            of all duties and rights under the contract.
                ``(4) Modification and termination of contracts.--
                        ``(A) Voluntary modification or termination.--The
                    Secretary may modify or terminate a contract with a
                    producer if--
                                ``(i) the producer agrees to the
                            modification or termination; and
                                ``(ii) the Secretary determines that the
                            modification or termination is in the public
                            interest.
                        ``(B) Involuntary termination.--The Secretary may
                    terminate a contract if the Secretary determines that
                    the producer violated the contract.
                ``(5) Repayment.--If a contract is terminated, the
            Secretary may, consistent with the purposes of the program--
                        ``(A) allow the producer to retain payments already
                    received under the contract; or
                        ``(B) require repayment, in whole or in part, of
                    payments received and assess liquidated damages.
        ``(e) Contract Renewal.--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--
                ``(1) demonstrates compliance with the terms of the
            existing contract;
                ``(2) agrees to adopt and continue to integrate
            conservation activities across the entire agricultural
            operation as determined by the Secretary; and
                ``(3) 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.

    ``SEC. 1238G. DUTIES OF THE SECRETARY.

        ``(a) In General.--To achieve the conservation goals of a contract
    under the conservation stewardship program, the Secretary shall--
                ``(1) 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;
                ``(2) identify not less than 5 priority resource concerns
            in a particular watershed or other appropriate region or area
            within a State; and
                ``(3) establish a science-based stewardship threshold for
            each priority resource concern identified under paragraph (2).
        ``(b) Allocation to States.--The Secretary shall allocate acres to
    States for enrollment, based--
                ``(1) primarily on each State's proportion of eligible land
            to the total acreage of eligible land in all States; and
                ``(2) also on consideration of--
                        ``(A) the extent and magnitude of the conservation
                    needs associated with agricultural production in each
                    State;
                        ``(B) the degree to which implementation of the
                    program in the State is, or will be, effective in
                    helping producers address those needs; and
                        ``(C) other considerations to achieve equitable
                    geographic distribution of funds, as determined by the
                    Secretary.
        ``(c) Acreage Enrollment Limitation.--During the period beginning
    on October 1, 2013, and ending on September 30, 2022, the Secretary
    shall, to the maximum extent practicable--
                ``(1) enroll in the program an additional 10,348,000 acres
            for each fiscal year; and
                ``(2) 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.
        ``(d) Conservation Stewardship Payments.--
                ``(1) Availability of payments.--The Secretary shall
            provide annual payments under the program to compensate the
            producer for--
                        ``(A) installing and adopting additional
                    conservation activities; and
                        ``(B) 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.
                ``(2) Payment amount.--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:
                        ``(A) Costs incurred by the producer associated
                    with planning, design, materials, installation, labor,
                    management, maintenance, or training.
                        ``(B) Income forgone by the producer.
                        ``(C) Expected conservation benefits.
                        ``(D) The extent to which priority resource
                    concerns will be addressed through the installation and
                    adoption of conservation activities on the agricultural
                    operation.
                        ``(E) The level of stewardship in place at the time
                    of application and maintained over the term of the
                    contract.
                        ``(F) 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.
                        ``(G) Such other factors as determined by the
                    Secretary.
                ``(3) Exclusions.--A payment to a producer under this
            subsection shall not be provided for--
                        ``(A) the design, construction, or maintenance of
                    animal waste storage or treatment facilities or
                    associated waste transport or transfer devices for
                    animal feeding operations; or
                        ``(B) conservation activities for which there is no
                    cost incurred or income forgone to the producer.
                ``(4) Delivery of payments.--In making stewardship
            payments, the Secretary shall, to the extent practicable--
                        ``(A) 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
                        ``(B) make stewardship payments as soon as
                    practicable after October 1 of each fiscal year for
                    activities carried out in the previous fiscal year.
        ``(e) Supplemental Payments for Resource-Conserving Crop
    Rotations.--
                ``(1) Availability of payments.--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.
                ``(2) Beneficial crop rotations.--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.
                ``(3) Eligibility.--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.
                ``(4) Resource-conserving crop rotation.--In this
            subsection, the term `resource-conserving crop rotation' means
            a crop rotation that--
                        ``(A) includes at least 1 resource conserving crop
                    (as defined by the Secretary);
                        ``(B) reduces erosion;
                        ``(C) improves soil fertility and tilth;
                        ``(D) interrupts pest cycles; and
                        ``(E) in applicable areas, reduces depletion of
                    soil moisture or otherwise reduces the need for
                    irrigation.
        ``(f) Payment Limitations.--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 2014 through 2018, excluding funding arrangements with
    Indian tribes, regardless of the number of contracts entered into under
    the program by the person or legal entity.
        ``(g) Specialty Crop and Organic Producers.--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.
        ``(h) Coordination With Organic Certification.--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.
        ``(i) Regulations.--The Secretary shall promulgate regulations
    that--
                ``(1) 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
                ``(2) otherwise enable the Secretary to carry out the
            program.''.
        (b) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2013.
        (c) Effect on Existing Contracts.--
                (1) In general.--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, 2013, or any payments
            required to be made in connection with the contract.
                (2) Conservation stewardship program.--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
            2013.

              Subtitle C--Environmental Quality Incentives Program

    SEC. 2201. PURPOSES.

        Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is
    amended--
                (1) in paragraph (3)--
                        (A) in subparagraph (A), by striking ``and'' at the
                    end;
                        (B) by redesignating subparagraph (B) as
                    subparagraph (C) and, in such subparagraph, by
                    inserting ``and'' after the semicolon; and
                        (C) by inserting after subparagraph (A) the
                    following:
                        ``(B) develop and improve wildlife habitat; and'';
                (2) in paragraph (4), by striking ``; and'' and inserting a
            period; and
                (3) by striking paragraph (5).

    SEC. 2202. DEFINITIONS.

        Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1)
    is amended--
                (1) by striking paragraph (2) and redesignating paragraphs
            (3) through (6) as paragraphs (2) through (5), respectively;
            and
                (2) in paragraph (2) (as so redesignated), by inserting
            ``established under the Organic Foods Production Act of 1990 (7
            U.S.C. 6501 et seq.)'' after ``national organic program''.

    SEC. 2203. ESTABLISHMENT AND ADMINISTRATION.

        Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-2)
    is amended--
                (1) in subsection (a), by striking ``2014'' and inserting
            ``2018'';
                (2) in subsection (b), by striking paragraph (2) and
            inserting the following:
                ``(2) Term.--A contract under the program shall have a term
            that does not exceed 10 years.'';
                (3) in subsection (d)--
                        (A) in paragraph (3), by striking subparagraphs (A)
                    through (G) and inserting the following:
                        ``(A) soil health;
                        ``(B) water quality and quantity improvement;
                        ``(C) nutrient management;
                        ``(D) pest management;
                        ``(E) air quality improvement;
                        ``(F) wildlife habitat development, including
                    pollinator habitat;
                        ``(G) invasive species management; or
                        ``(H) other resource issues of regional or national
                    significance, as determined by the Secretary.''; and
                        (B) in paragraph (4)--
                                (i) in subparagraph (A) in the matter
                            preceding clause (i), by inserting ``, 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))),''
                            before ``or a beginning farmer or rancher'';
                            and
                                (ii) by striking subparagraph (B) and
                            inserting the following:
                        ``(B) Advance payments.--
                                ``(i) In general.--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.
                                ``(ii) Return of funds.--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.'';
                (4) by striking subsection (f) and inserting the following:
        ``(f) Allocation of Funding.--
                ``(1) Livestock.--For each of fiscal years 2014 through
            2018, at least 60 percent of the funds made available for
            payments under the program shall be targeted at practices
            relating to livestock production.
                ``(2) Wildlife habitat.--For each of fiscal years 2014
            through 2018, 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).''; and
                (5) by striking subsection (g) and inserting the following:
        ``(g) Wildlife Habitat Incentive Program.--
                ``(1) In general.--The Secretary shall provide payments
            under the environmental quality incentives program for
            conservation practices that support the restoration,
            development, and improvement of wildlife habitat on eligible
            land, including--
                        ``(A) upland wildlife habitat;
                        ``(B) wetland wildlife habitat;
                        ``(C) habitat for threatened and endangered
                    species;
                        ``(D) fish habitat;
                        ``(E) habitat on pivot corners and other irregular
                    areas of a field; and
                        ``(F) other types of wildlife habitat, as
                    determined by the Secretary.
                ``(2) State technical committee.--In determining the
            practices eligible for payment under paragraph (1) and targeted
            for funding under subsection (f), the Secretary shall, at a
            minimum, consult with the relevant State technical committee
            once a year.
                ``(3) Waiver.--Notwithstanding any other provision of this
            chapter, the Secretary may make payments to a State or local
            unit of government to enroll land that is riparian to, or
            submerged under, a water body or wetland if the Secretary
            determines that the inclusion of the land would support the
            restoration, development, and improvement of wildlife
            habitat.''.

    SEC. 2204. EVALUATION OF APPLICATIONS.

        Section 1240C(b) of the Food Security Act of 1985 (16 U.S.C.
    3839aa-3(b)) is amended--
                (1) in paragraph (1), by striking ``environmental'' and
            inserting ``conservation''; and
                (2) in paragraph (3), by striking ``purpose of the
            environmental quality incentives program specified in section
            1240(1)'' and inserting ``purposes of the program''.

    SEC. 2205. DUTIES OF PRODUCERS.

        Section 1240D(2) of the Food Security Act of 1985 (16 U.S.C.
    3839aa-4(2)) is amended by striking ``farm, ranch, or forest'' and
    inserting ``enrolled''.

    SEC. 2206. LIMITATION ON PAYMENTS.

        Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7)
    is amended--
                (1) in subsection (a)--
                        (A) by striking ``by the person or entity during
                    any six-year period,'' and inserting ``during fiscal
                    years 2014 through 2018''; and
                        (B) by striking ``federally recognized'' and all
                    that follows through the period and inserting ``Indian
                    tribes under section 1244(l).''; and
                (2) in subsection (b)(2), by striking ``any six-year
            period'' and inserting ``fiscal years 2014 through 2018''.

    SEC. 2207. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

        Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8)
    is amended--
                (1) in subsection (b)(2), by striking ``2012'' and
            inserting ``2018''; and
                (2) by adding at the end the following:
        ``(c) Reporting.--Not later than December 31, 2014, 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--
                ``(1) funding awarded;
                ``(2) project results; and
                ``(3) incorporation of project findings, such as new
            technology and innovative approaches, into the conservation
            efforts implemented by the Secretary.''.

    SEC. 2208. EFFECTIVE DATE.

        (a) In General.--The amendments made by this subtitle shall take
    effect on October 1, 2013.
        (b) Effect on Existing Contracts.--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, 2013, or any payments required to be made in
    connection with the contract.

             Subtitle D--Agricultural Conservation Easement Program

    SEC. 2301. AGRICULTURAL CONSERVATION EASEMENT PROGRAM.

        (a) Establishment.--Title XII of the Food Security Act of 1985 is
    amended by adding at the end the following:

            ``Subtitle H--Agricultural Conservation Easement Program

    ``SEC. 1265. ESTABLISHMENT AND PURPOSES.

        ``(a) Establishment.--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.
        ``(b) Purposes.--The purposes of the program are to--
                ``(1) 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;
                ``(2) restore, protect, and enhance wetland on eligible
            land;
                ``(3) protect the agricultural use, viability, and related
            conservation values of eligible land by limiting
            nonagricultural uses of that land; and
                ``(4) protect grazing uses and related conservation values
            by restoring and conserving eligible land.

    ``SEC. 1265A. DEFINITIONS.

        ``In this subtitle:
                ``(1) Agricultural land easement.--The term `agricultural
            land easement' means an easement or other interest in eligible
            land that--
                        ``(A) 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
                        ``(B) permits the landowner the right to continue
                    agricultural production and related uses subject to an
                    agricultural land easement plan.
                ``(2) Eligible entity.--The term `eligible entity' means--
                        ``(A) an agency of State or local government or an
                    Indian tribe (including farmland protection board or
                    land resource council established under State law); or
                        ``(B) an organization that is--
                                ``(i) 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;
                                ``(ii) an organization described in section
                            501(c)(3) of that Code that is exempt from
                            taxation under section 501(a) of that Code; or
                                ``(iii) described in--
                                        ``(I) paragraph (1) or (2) of
                                    section 509(a) of that Code; or
                                        ``(II) section 509(a)(3) of that
                                    Code and is controlled by an
                                    organization described in section
                                    509(a)(2) of that Code.
                ``(3) Eligible land.--The term `eligible land' means
            private or tribal land that is--
                        ``(A) in the case of an agricultural land easement,
                    agricultural land, including land on a farm or ranch--
                                ``(i) that is subject to a pending offer
                            for purchase from an eligible entity;
                                ``(ii) that--
                                        ``(I) has prime, unique, or other
                                    productive soil;
                                        ``(II) contains historical or
                                    archaeological resources; or
                                        ``(III) the protection of which
                                    could, consistent with the purposes of
                                    the program--
                                                ``(aa) further a State or
                                            local policy; or
                                                ``(bb) conserve grassland
                                            or agricultural landscapes of
                                            significant ecological value;
                                            and
                                ``(iii) that is--
                                        ``(I) cropland;
                                        ``(II) rangeland;
                                        ``(III) grassland or land that
                                    contains forbs, or shrubland for which
                                    grazing is the predominant use;
                                        ``(IV) pastureland; or
                                        ``(V) 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;
                        ``(B) in the case of a wetland reserve easement, a
                    wetland or related area, including--
                                ``(i) farmed or converted wetland, together
                            with the adjacent land that is functionally
                            dependent on that land if the Secretary
                            determines it--
                                        ``(I) is likely to be successfully
                                    restored in a cost effective manner;
                                    and
                                        ``(II) 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;
                                ``(ii) 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;
                                ``(iii) farmed wetland and adjoining land
                            that--
                                        ``(I) is enrolled in the
                                    conservation reserve program;
                                        ``(II) has the highest wetland
                                    functions and values; and
                                        ``(III) is likely to return to
                                    production after the land leaves the
                                    conservation reserve program;
                                ``(iv) riparian areas that link wetland
                            that is protected by easements or some other
                            device that achieves the same purpose as an
                            easement; or
                                ``(v) 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
                        ``(C) in the case of both an agricultural land
                    easement or wetland reserve 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.
                ``(4) Program.--The term `program' means the Agricultural
            Conservation Easement Program established by this subtitle.
                ``(5) Wetland reserve easement.--The term `wetland reserve
            easement' means a reserved interest in eligible land that--
                        ``(A) is defined and delineated in a deed; and
                        ``(B) stipulates--
                                ``(i) the rights, title, and interests in
                            land conveyed to the Secretary; and
                                ``(ii) the rights, title, and interests in
                            land that are reserved to the landowner.

    ``SEC. 1265B. AGRICULTURAL LAND EASEMENTS.

        ``(a) Availability of Assistance.--The Secretary shall facilitate
    and provide funding for--
                ``(1) the purchase by eligible entities of agricultural
            land easements and other interests in eligible land; and
                ``(2) technical assistance to provide for the conservation
            of natural resources pursuant to an agricultural land easement
            plan.
        ``(b) Cost-Share Assistance.--
                ``(1) In general.--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.
                ``(2) Scope of assistance available.--
                        ``(A) Federal share.--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--
                                ``(i) the Uniform Standards of Professional
                            Appraisal Practices;
                                ``(ii) an area-wide market analysis or
                            survey; or
                                ``(iii) another industry approved method.
                        ``(B) Non-federal share.--
                                ``(i) In general.--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.
                                ``(ii) Source of contribution.--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.
                        ``(C) Waiver authority.--
                                ``(i) Grassland.--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.
                                ``(ii) Cash contribution.--For purposes of
                            subparagraph (B)(ii), the Secretary may waive
                            any portion of the eligible entity cash
                            contribution requirement for projects of
                            special significance, subject to an increase in
                            the private landowner donation that is equal to
                            the amount of the waiver, if the donation is
                            voluntary.
                ``(3) Evaluation and ranking of applications.--
                        ``(A) Criteria.--The Secretary shall establish
                    evaluation and ranking criteria to maximize the benefit
                    of Federal investment under the program.
                        ``(B) Considerations.--In establishing the
                    criteria, the Secretary shall emphasize support for--
                                ``(i) protecting agricultural uses and
                            related conservation values of the land; and
                                ``(ii) maximizing the protection of areas
                            devoted to agricultural use.
                        ``(C) Bidding down.--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.
                ``(4) Agreements with eligible entities.--
                        ``(A) In general.--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.
                        ``(B) Length of agreements.--An agreement shall be
                    for a term that is--
                                ``(i) in the case of an eligible entity
                            certified under the process described in
                            paragraph (5), a minimum of 5 years; and
                                ``(ii) for all other eligible entities, at
                            least 3, but not more than 5 years.
                        ``(C) Minimum terms and conditions.--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--
                                ``(i) are consistent with the purposes of
                            the program;
                                ``(ii) are permanent or for the maximum
                            duration allowed under applicable State law;
                                ``(iii) permit effective enforcement of the
                            conservation purposes of such easements,
                            including appropriate restrictions depending on
                            the purposes for which the easement is
                            acquired;
                                ``(iv) include a right of enforcement for
                            the Secretary if terms of the easement are not
                            enforced by the holder of the easement;
                                ``(v) subject the land in which an interest
                            is purchased to an agricultural land easement
                            plan that--
                                        ``(I) describes the activities
                                    which promote the long-term viability
                                    of the land to meet the purposes for
                                    which the easement was acquired;
                                        ``(II) requires the management of
                                    grassland according to a grassland
                                    management plan; and
                                        ``(III) 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
                                ``(vi) include a limit on the impervious
                            surfaces to be allowed that is consistent with
                            the agricultural activities to be conducted.
                        ``(D) Substitution of qualified projects.--An
                    agreement shall allow, upon mutual agreement of the
                    parties, substitution of qualified projects that are
                    identified at the time of the proposed substitution.
                        ``(E) Effect of violation.--If a violation occurs
                    of a term or condition of an agreement under this
                    subsection--
                                ``(i) the agreement may be terminated; and
                                ``(ii) 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.
                ``(5) Certification of eligible entities.--
                        ``(A) Certification process.--The Secretary shall
                    establish a process under which the Secretary may--
                                ``(i) directly certify eligible entities
                            that meet established criteria;
                                ``(ii) enter into long-term agreements with
                            certified eligible entities; and
                                ``(iii) accept proposals for cost-share
                            assistance for the purchase of agricultural
                            land easements throughout the duration of such
                            agreements.
                        ``(B) Certification criteria.--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--
                                ``(i) a plan for administering easements
                            that is consistent with the purposes of the
                            program described in paragraphs (3) and (4) of
                            section 1265(b);
                                ``(ii) the capacity and resources to
                            monitor and enforce agricultural land
                            easements; and
                                ``(iii) policies and procedures to ensure--
                                        ``(I) the long-term integrity of
                                    agricultural land easements on eligible
                                    land;
                                        ``(II) timely completion of
                                    acquisitions of easements; and
                                        ``(III) timely and complete
                                    evaluation and reporting to the
                                    Secretary on the use of funds provided
                                    under the program.
                        ``(C) Review and revision.--
                                ``(i) Review.--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).
                                ``(ii) Revocation.--If the Secretary finds
                            that the certified entity no longer meets the
                            criteria established under subparagraph (B),
                            the Secretary may--
                                        ``(I) 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
                                        ``(II) revoke the certification of
                                    the entity, if after the specified
                                    period of time, the certified entity
                                    does not meet such criteria.
        ``(c) Technical Assistance.--The Secretary may provide technical
    assistance, if requested, to assist in--
                ``(1) compliance with the terms and conditions of
            easements; and
                ``(2) implementation of an agricultural land easement plan.

    ``SEC. 1265C. WETLAND RESERVE EASEMENTS.

        ``(a) Availability of Assistance.--The Secretary shall provide
    assistance to owners of eligible land to restore, protect, and enhance
    wetland through--
                ``(1) easements and related wetland reserve easement plans;
            and
                ``(2) technical assistance.
        ``(b) Easements.--
                ``(1) Method of enrollment.--The Secretary shall enroll
            eligible land through the use of--
                        ``(A) 30-year easements;
                        ``(B) permanent easements;
                        ``(C) easements for the maximum duration allowed
                    under applicable State laws; or
                        ``(D) as an option for Indian tribes only, 30-year
                    contracts.
                ``(2) Limitations.--
                        ``(A) Ineligible land.--The Secretary may not
                    acquire easements on--
                                ``(i) 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
                                ``(ii) farmed wetland or converted wetland
                            where the conversion was not commenced prior to
                            December 23, 1985.
                        ``(B) Changes in ownership.--No easement shall be
                    created on land that has changed ownership during the
                    preceding 12-month period unless--
                                ``(i) the new ownership was acquired by
                            will or succession as a result of the death of
                            the previous owner;
                                ``(ii)(I) the ownership change occurred
                            because of foreclosure on the land; and
                                ``(II) immediately before the foreclosure,
                            the owner of the land exercises a right of
                            redemption from the mortgage holder in
                            accordance with State law; or
                                ``(iii) 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.
                ``(3) Evaluation and ranking of offers.--
                        ``(A) Criteria.--The Secretary shall establish
                    evaluation and ranking criteria to maximize the benefit
                    of Federal investment under the program.
                        ``(B) Considerations.--When evaluating offers from
                    landowners, the Secretary may consider--
                                ``(i) the conservation benefits of
                            obtaining an easement or 30-year contract,
                            including the potential environmental benefits
                            if the land was removed from agricultural
                            production;
                                ``(ii) the cost-effectiveness of each
                            easement or 30-year contract, so as to maximize
                            the environmental benefits per dollar expended;
                                ``(iii) 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
                                ``(iv) such other factors as the Secretary
                            determines are necessary to carry out the
                            purposes of the program.
                        ``(C) Priority.--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.
                ``(4) Agreement.--To be eligible to place eligible land
            into the program through a wetland reserve easement, the owner
            of such land shall enter into an agreement with the Secretary
            to--
                        ``(A) grant an easement on such land to the
                    Secretary;
                        ``(B) authorize the implementation of a wetland
                    reserve easement plan;
                        ``(C) create and record an appropriate deed
                    restriction in accordance with applicable State law to
                    reflect the easement agreed to;
                        ``(D) provide a written statement of consent to
                    such easement signed by those holding a security
                    interest in the land;
                        ``(E) comply with the terms and conditions of the
                    easement and any related agreements; and
                        ``(F) permanently retire any existing cropland base
                    and allotment history for the land on which the
                    easement has been obtained.
                ``(5) Terms and conditions of easement.--
                        ``(A) In general.--A wetland reserve easement shall
                    include terms and conditions that--
                                ``(i) permit--
                                        ``(I) repairs, improvements, and
                                    inspections on the land that are
                                    necessary to maintain existing public
                                    drainage systems; and
                                        ``(II) owners to control public
                                    access on the easement areas while
                                    identifying access routes to be used
                                    for restoration activities and
                                    management and easement monitoring;
                                ``(ii) prohibit--
                                        ``(I) the alteration of wildlife
                                    habitat and other natural features of
                                    such land, unless specifically
                                    authorized by the Secretary;
                                        ``(II) 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--
                                                ``(aa) to comply with
                                            Federal or State noxious weed
                                            control laws;
                                                ``(bb) to comply with a
                                            Federal or State emergency pest
                                            treatment program; or
                                                ``(cc) to meet habitat
                                            needs of specific wildlife
                                            species;
                                        ``(III) 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
                                        ``(IV) the adoption of any other
                                    practice that would tend to defeat the
                                    purposes of the program, as determined
                                    by the Secretary;
                                ``(iii) provide for the efficient and
                            effective establishment of wetland functions
                            and values; and
                                ``(iv) include such additional provisions
                            as the Secretary determines are desirable to
                            carry out the program or facilitate the
                            practical administration thereof.
                        ``(B) Violation.--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.
                        ``(C) Compatible uses.--Land subject to a wetland
                    reserve 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
                    reserve easement plan and is consistent with the long-
                    term protection and enhancement of the wetland
                    resources for which the easement was established.
                        ``(D) Reservation of grazing rights.--The Secretary
                    may include in the terms and conditions of an easement
                    a provision under which the owner reserves grazing
                    rights if--
                                ``(i) the Secretary determines that the
                            reservation and use of the grazing rights--
                                        ``(I) is compatible with the land
                                    subject to the easement;
                                        ``(II) is consistent with the
                                    historical natural uses of the land and
                                    long-term protection and enhancement
                                    goals for which the easement was
                                    established; and
                                        ``(III) complies with the wetland
                                    reserve easement plan; and
                                ``(ii) the agreement provides for a
                            commensurate reduction in the easement payment
                            to account for the grazing value, as determined
                            by the Secretary.
                        ``(E) Application.--The relevant provisions of this
                    paragraph shall also apply to a 30-year contract.
                ``(6) Compensation.--
                        ``(A) Determination.--
                                ``(i) In general.--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--
                                        ``(I) 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;
                                        ``(II) the amount corresponding to
                                    a geographical cap, as determined by
                                    the Secretary in regulations; or
                                        ``(III) the offer made by the
                                    landowner.
                                ``(ii) Other.--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.
                        ``(B) Form of payment.--Compensation shall be
                    provided by the Secretary in the form of a cash
                    payment, in an amount determined under subparagraph
                    (A).
                        ``(C) Payment schedule.--
                                ``(i) Easements valued at less than
                            $500,000.--For easements valued at $500,000 or
                            less, the Secretary may provide easement
                            payments in not more than 10 annual payments.
                                ``(ii) Easements valued at more than
                            $500,000.--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.
        ``(c) Easement Restoration.--
                ``(1) In general.--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 reserve easement plan.
                ``(2) Payments.--The Secretary shall--
                        ``(A) 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
                        ``(B) 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.
        ``(d) Technical Assistance.--
                ``(1) In general.--The Secretary shall assist owners in
            complying with the terms and conditions of easements and 30-
            year contracts.
                ``(2) Contracts or agreements.--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.
        ``(e) Wetland Enhancement Option.--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.
        ``(f) Administration.--
                ``(1) Wetland reserve easement plan.--The Secretary shall
            develop a wetland reserve easement plan for eligible land
            subject to a wetland reserve easement, which will include the
            practices and activities necessary to restore, protect,
            enhance, and maintain the enrolled land.
                ``(2) Delegation of easement administration.--
                        ``(A) In general.--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.
                        ``(B) Limitation.--The Secretary shall not delegate
                    any of the monitoring or enforcement responsibilities
                    under the program to conservation organizations.
                ``(3) Payments.--
                        ``(A) Timing of payments.--The Secretary shall
                    provide payment for obligations incurred by the
                    Secretary under this section--
                                ``(i) with respect to any easement
                            restoration obligation as soon as possible
                            after the obligation is incurred; and
                                ``(ii) with respect to any annual easement
                            payment obligation incurred by the Secretary as
                            soon as possible after October 1 of each
                            calendar year.
                        ``(B) Payments to others.--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.

    ``SEC. 1265D. ADMINISTRATION.

        ``(a) Ineligible Land.--The Secretary may not acquire an easement
    under the program on--
                ``(1) land owned by an agency of the United States, other
            than land held in trust for Indian tribes;
                ``(2) land owned in fee title by a State, including an
            agency or a subdivision of a State, or a unit of local
            government;
                ``(3) 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
                ``(4) 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.
        ``(b) Priority.--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--
                ``(1) in the case of an agricultural land easement, is
            grassland that would benefit from protection under a long-term
            easement; and
                ``(2) in the case of a wetland reserve 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.
        ``(c) Subordination, Exchange, Modification, and Termination.--
                ``(1) In general.--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--
                        ``(A) it is in the Federal Government's interest to
                    subordinate, exchange, modify or terminate the interest
                    in land;
                        ``(B) the subordination, exchange, modification, or
                    termination action--
                                ``(i) will address a compelling public need
                            for which there is no practicable alternative,
                            or
                                ``(ii) such action will further the
                            practical administration of the program; and
                        ``(C) the subordination, exchange, modification, or
                    termination action will result in comparable
                    conservation value and equivalent or greater economic
                    value to the United States.
                ``(2) Consultation.--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.
                ``(3) Notice.--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.
        ``(d) Land Enrolled in Other Programs.--
                ``(1) Conservation reserve program.--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.
                ``(2) Other.--Land enrolled in the wetlands reserve
            program, grassland reserve program, or farmland protection
            program shall be considered enrolled in this program.''.
        (b) Compliance With Certain Requirements.--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--
                (1) to comply with applicable conservation requirements
            under subtitle B of title XII of that Act (16 U.S.C. 3811 et
            seq.); and
                (2) to comply with applicable wetland protection
            requirements under subtitle C of title XII of that Act (16
            U.S.C. 3821 et seq.).
        (c) Cross-Reference.--Section 1244 of the Food Security Act of 1985
    (16 U.S.C. 3844) is amended--
                (1) in subsection (c)--
                        (A) in paragraph (1)--
                                (i) by inserting ``and'' at the end of
                            subparagraph (A);
                                (ii) by striking ``and'' at the end of
                            subparagraph (B); and
                                (iii) by striking subparagraph (C);
                        (B) by redesignating paragraph (2) as paragraph
                    (3); and
                        (C) by inserting after paragraph (1) the following:
                ``(2) the Agricultural Conservation Easement Program
            established under subtitle H; and''; and
                (2) in subsection (f)--
                        (A) in paragraph (1)--
                                (i) in subparagraph (A), by striking
                            ``programs administered under subchapters B and
                            C of chapter 1 of subtitle D'' and inserting
                            ``conservation reserve program established
                            under subchapter B of chapter 1 of subtitle D
                            and the Agricultural Conservation Easement
                            Program under subtitle H using wetland reserve
                            easements under section 1265C''; and
                                (ii) in subparagraph (B), by striking
                            ``subchapter C of chapter 1 of subtitle D'' and
                            inserting ``the Agricultural Conservation
                            Easement Program under subtitle H using wetland
                            reserve easements under section 1265C''; and
                        (B) by striking paragraph (4) and inserting the
                    following:
                ``(4) Exclusions.--
                        ``(A) Shelterbelts and windbreaks.--The limitations
                    established under paragraph (1) shall not apply to
                    cropland that is subject to an easement under
                    subchapter C of chapter 1 that is used for the
                    establishment of shelterbelts and windbreaks.
                        ``(B) Wet and saturated soils.--For the purposes of
                    enrolling land in a wetland reserve easement under
                    subtitle H, the limitations established under paragraph
                    (1) shall not apply to cropland designated by the
                    Secretary with subclass w in the land capability
                    classes IV through VIII because of severe use
                    limitations due to soil saturation or inundation.''.
        (d) Effective Date.--The amendments made by this section shall take
    effect on October 1, 2013.

             Subtitle E--Regional Conservation Partnership Program

    SEC. 2401. REGIONAL CONSERVATION PARTNERSHIP PROGRAM.

        (a) In General.--Title XII of the Food Security Act of 1985 is
    amended by inserting after subtitle H (as added by section 2301) the
    following:

            ``Subtitle I--Regional Conservation Partnership Program

    ``SEC. 1271. ESTABLISHMENT AND PURPOSES.

        ``(a) Establishment.--The Secretary shall establish a Regional
    Conservation Partnership Program to implement eligible activities
    through--
                ``(1) partnership agreements with eligible partners; and
                ``(2) contracts with producers.
        ``(b) Purposes.--The purposes of the program are--
                ``(1) to combine the purposes and coordinate the functions
            of--
                        ``(A) the agricultural water enhancement program
                    established under section 1240I;
                        ``(B) the Chesapeake Bay watershed program
                    established under section 1240Q;
                        ``(C) the cooperative conservation partnership
                    initiative established under section 1243; and
                        ``(D) the Great Lakes basin program for soil
                    erosion and sediment control established under section
                    1240P;
                ``(2) to further the conservation, restoration, and
            sustainable use of soil, water, wildlife, and related natural
            resources on a regional or watershed scale; and
                ``(3) to encourage partners to cooperate with producers
            in--
                        ``(A) meeting or avoiding the need for national,
                    State, and local natural resource regulatory
                    requirements related to production; and
                        ``(B) 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.

    ``SEC. 1271A. DEFINITIONS.

        ``In this subtitle:
                ``(1) Covered programs.--The term `covered programs'
            means--
                        ``(A) the agricultural conservation easement
                    program;
                        ``(B) the environmental quality incentives program;
                        ``(C) the conservation stewardship program; and
                        ``(D) the healthy forests reserve program
                    established under section 501 of the Healthy Forests
                    Restoration Act of 2003 (16 U.S.C. 6571).
                ``(2) Eligible activity.--The term `eligible activity'
            means any of the following conservation activities when
            delivered through a covered program:
                        ``(A) Water quality restoration or enhancement
                    projects, including nutrient management and sediment
                    reduction.
                        ``(B) Water quantity conservation, restoration, or
                    enhancement projects relating to surface water and
                    groundwater resources, including--
                                ``(i) the conversion of irrigated cropland
                            to the production of less water-intensive
                            agricultural commodities or dryland farming;
                            and
                                ``(ii) irrigation system improvement and
                            irrigation efficiency enhancement.
                        ``(C) Drought mitigation.
                        ``(D) Flood prevention.
                        ``(E) Water retention.
                        ``(F) Habitat conservation, restoration, and
                    enhancement.
                        ``(G) Erosion control.
                        ``(H) Forest restoration, including recovery of
                    threatened and endangered species, improvement of
                    biodiversity, and enhancement of carbon sequestration.
                        ``(I) Other related activities that the Secretary
                    determines will help achieve conservation benefits.
                ``(3) Eligible partner.--The term `eligible partner' means
            any of the following:
                        ``(A) An agricultural or silvicultural producer
                    association or other group of producers.
                        ``(B) A State or unit of local government.
                        ``(C) An Indian tribe.
                        ``(D) A farmer cooperative.
                        ``(E) An institution of higher education.
                        ``(F) A municipal water or wastewater treatment
                    entity.
                        ``(G) An organization or other nongovernmental
                    entity with an established history of working
                    cooperatively with producers on agricultural land, as
                    determined by the Secretary, to address--
                                ``(i) local conservation priorities related
                            to agricultural production, wildlife habitat
                            development, and nonindustrial private forest
                            land management; or
                                ``(ii) critical watershed-scale soil
                            erosion, water quality, sediment reduction, or
                            other natural resource concerns.
                ``(4) Partnership agreement.--The term `partnership
            agreement' means an agreement between the Secretary and an
            eligible partner.
                ``(5) Program.--The term `program' means the Regional
            Conservation Partnership Program established by this subtitle.

    ``SEC. 1271B. REGIONAL CONSERVATION PARTNERSHIPS.

        ``(a) Partnership Agreements Authorized.--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.
        ``(b) Length.--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.
        ``(c) Duties of Partners.--
                ``(1) In general.--Under a partnership agreement, the
            eligible partner shall--
                        ``(A) define the scope of a project, including--
                                ``(i) the eligible activities to be
                            implemented;
                                ``(ii) the potential agricultural or
                            nonindustrial private forest operations
                            affected;
                                ``(iii) the local, State, multi-State or
                            other geographic area covered; and
                                ``(iv) the planning, outreach,
                            implementation and assessment to be conducted;
                        ``(B) conduct outreach and education to producers
                    for potential participation in the project;
                        ``(C) at the request of a producer, act on behalf
                    of a producer participating in the project in applying
                    for assistance under section 1271C;
                        ``(D) leverage financial or technical assistance
                    provided by the Secretary with additional funds to help
                    achieve the project objectives;
                        ``(E) conduct an assessment of the project's
                    effects; and
                        ``(F) at the conclusion of the project, report to
                    the Secretary on its results and funds leveraged.
                ``(2) Contribution.--A partner shall provide a significant
            portion of the overall costs of the scope of the project as
            determined by the Secretary.
        ``(d) Applications.--
                ``(1) Competitive process.--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.
                ``(2) Criteria used.--In carrying out the process described
            in paragraph (1), the Secretary shall make public the criteria
            used in evaluating applications.
                ``(3) Content.--An application to the Secretary shall
            include a description of--
                        ``(A) the scope of the project as described in
                    subsection (c)(1)(A);
                        ``(B) the plan for monitoring, evaluating, and
                    reporting on progress made towards achieving the
                    project's objectives;
                        ``(C) the program resources requested for the
                    project, including the covered programs to be used and
                    estimated funding needed from the Secretary;
                        ``(D) the partners collaborating to achieve project
                    objectives, including their roles, responsibilities,
                    capabilities, and financial contribution; and
                        ``(E) any other elements the Secretary considers
                    necessary to adequately evaluate and competitively
                    select applications for funding under the program.
                ``(4) Application selection.--
                        ``(A) Priority to certain applications.--The
                    Secretary shall give a higher priority to applications
                    that--
                                ``(i) assist producers in meeting or
                            avoiding the need for a natural resource
                            regulatory requirement;
                                ``(ii) significantly leverage non-Federal
                            financial and technical resources and
                            coordinate with other local, State, regional,
                            or national efforts;
                                ``(iii) deliver high percentages of applied
                            conservation to address conservation priorities
                            or local, State, regional, or national
                            conservation initiatives;
                                ``(iv) provide innovation in conservation
                            methods and delivery, including outcome-based
                            performance measures and methods; or
                                ``(v) provide innovation in the improvement
                            and delivery of water quality or quantity,
                            including outcome-based performance measures
                            and methods.
                        ``(B) Other applications.--The Secretary may give
                    priority to applications that--
                                ``(i) have a high percentage of producers
                            in the area to be covered by the agreement; or
                                ``(ii) meet other factors that are
                            important for achieving the purposes of the
                            program, as determined by the Secretary.

    ``SEC. 1271C. ASSISTANCE TO PRODUCERS.

        ``(a) In General.--The Secretary shall enter into contracts to
    provide financial and technical assistance to--
                ``(1) producers participating in a project with an eligible
            partner as described in section 1271B; or
                ``(2) 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.
        ``(b) Terms and Conditions.--
                ``(1) Consistency with program rules.--
                        ``(A) In general.--Except as provided in paragraph
                    (2) and 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 partnership
                    agreement, as described in the application under
                    section 1271B(d)(3)(C).
                        ``(B) Adjustments.--
                                ``(i) In general.--The Secretary may adjust
                            rules of a covered program, including--
                                        ``(I) operational guidance and
                                    requirements for a covered program at
                                    the discretion of the Secretary so as
                                    to provide a simplified application and
                                    evaluation process; and
                                        ``(II) nonstatutory, regulatory
                                    rules or provisions to better reflect
                                    unique local circumstances and purposes
                                    if the Secretary determines such
                                    adjustments are necessary to achieve
                                    the purposes of the covered program.
                                ``(ii) Limitation.--The Secretary shall not
                            adjust the application of statutory
                            requirements for a covered program, including
                            requirements governing appeals, payment limits,
                            and conservation compliance.
                                ``(iii) Irrigation.--In States where
                            irrigation has not been used significantly for
                            agricultural purposes, as determined by the
                            Secretary, the Secretary shall not limit
                            eligibility under section 1271B or this section
                            on the basis of prior irrigation history.
                ``(2) Alternative funding arrangements.--
                        ``(A) In general.--Notwithstanding paragraph
                    (1)(A), 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--
                                ``(i) the Secretary determines that the
                            goals and objectives of the program will be met
                            by the alternative funding arrangements;
                                ``(ii) the agency or authority certifies
                            that the limitations established under this
                            section on agreements with individual producers
                            will not be exceeded; and
                                ``(iii) all participating producers meet
                            applicable payment eligibility provisions.
                        ``(B) Conditions.--As a condition on receipt of
                    funding under subparagraph (A), the multistate water
                    resource agency or authority shall agree--
                                ``(i) to submit an annual independent audit
                            to the Secretary that describes the use of
                            funds under this paragraph;
                                ``(ii) to provide any data necessary for
                            the Secretary to issue a report on the use of
                            funds under this paragraph; and
                                ``(iii) not to use any of the funds
                            provided pursuant to subparagraph (A) for
                            administration or provide for administrative
                            costs through contracts with another entity.
                        ``(C) Limitation.--The Secretary may enter into at
                    least 10 but not more than 20 alternative funding
                    arrangements under this paragraph.
        ``(c) Payments.--
                ``(1) In general.--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.
                ``(2) Payments to certain producers.--The Secretary may
            provide payments for a period of 5 years--
                        ``(A) 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
                        ``(B) 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.
                ``(3) Waiver authority.--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.

    ``SEC. 1271D. FUNDING.

        ``(a) Availability of Funds.--The Secretary shall use $110,000,000
    of the funds of the Commodity Credit Corporation for each of fiscal
    years 2014 through 2018 to carry out the program established under this
    subtitle.
        ``(b) Duration of Availability.--Funds made available under
    subsection (a) shall remain available until expended.
        ``(c) Additional Funding and Acres.--
                ``(1) In general.--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 2014 through 2018 in order to ensure
            additional resources are available to carry out this program.
                ``(2) Unused funds and acres.--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.
        ``(d) Allocation of Funding.--Of the funds and acres made available
    for the program under subsections (a) and (c), the Secretary shall
    allocate--
                ``(1) 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;
                ``(2) 40 percent of the funds and acres to projects based
            on a national competitive process to be established by the
            Secretary; and
                ``(3) 35 percent of the funds and acres to projects for the
            critical conservation areas designated in section 1271F.
        ``(e) Limitation on Administrative Expenses.--None of the funds
    made available under the program may be used to pay for the
    administrative expenses of partners.

    ``SEC. 1271E. ADMINISTRATION.

        ``(a) Disclosure.--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).
        ``(b) Reporting.--Not later than December 31, 2014, 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--
                ``(1) the number and types of partners and producers
            participating in the partnership agreements selected;
                ``(2) the number of producers receiving assistance;
                ``(3) total funding committed to projects, including
            Federal and non-Federal resources; and
                ``(4) a description of how the funds under section
            1271C(b)(3) are being administered, including--
                        ``(A) any oversight mechanisms that the Secretary
                    has implemented;
                        ``(B) the process through which the Secretary is
                    resolving appeals by program participants; and
                        ``(C) the means by which the Secretary is tracking
                    adherence to any applicable provisions for payment
                    eligibility.

    ``SEC. 1271F. CRITICAL CONSERVATION AREAS.

        ``(a) In General.--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.
        ``(b) Critical Conservation Area Designations.--
                ``(1) In general.--The Secretary shall designate up to 6
            geographical areas as critical conservation areas based on the
            degree to which an area--
                        ``(A) includes multiple States with significant
                    agricultural production;
                        ``(B) 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;
                        ``(C) 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;
                        ``(D) has water quantity concerns, including--
                                ``(i) concerns for groundwater, surface
                            water, aquifer, or other water sources; or
                                ``(ii) a need to promote water retention
                            and flood prevention;
                        ``(E) is vital habitat for migrating wildlife; or
                        ``(F) is subject to regulatory requirements that
                    could reduce the economic scope of agricultural
                    operations within the area.
                ``(2) Expiration.--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).
        ``(c) Administration.--
                ``(1) In general.--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.
                ``(2) Relationship to existing activity.--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.''.
        (b) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2013.

                    Subtitle F--Other Conservation Programs

    SEC. 2501. CONSERVATION OF PRIVATE GRAZING LAND.

        Section 1240M(e) of the Food Security Act of 1985 (16 U.S.C.
    3839bb(e)) is amended inserting ``and $30,000,000 for each of fiscal
    years 2014 through 2018'' before the period at the end.

    SEC. 2502. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

        Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C.
    3839bb-2(b)) is amended by inserting ``and $15,000,000 for each of
    fiscal years 2014 through 2018'' before the period at the end.

    SEC. 2503. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.

        (a) Funding.--Section 1240R(f)(1) of the Food Security Act of 1985
    (16 U.S.C. 3839bb-5(f)(1)) is amended--
                (1) in the heading, by striking ``Fiscal years 2009 through
            2012'' and inserting ``Mandatory funding''; and
                (2) by inserting ``and $40,000,000 for the period of fiscal
            years 2014 through 2018'' before the period at the end.
        (b) Report on Program Effectiveness.--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--
                (1) identifying cooperating agencies;
                (2) identifying the number of land holdings and total acres
            enrolled by State;
                (3) evaluating the extent of improved access on eligible
            land, improved wildlife habitat, and related economic benefits;
            and
                (4) any other relevant information and data relating to the
            program that would be helpful to such Committees.
        (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2013.

    SEC. 2504. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.

        (a) Funding.--Section 1252 of the Food Security Act of 1985 (16
    U.S.C. 3851) is amended by striking subsection (c) and inserting the
    following:
        ``(c) Funding.--
                ``(1) In general.--The Secretary may carry out the ACES
            program using funds made available to carry out each program
            under this title.
                ``(2) Exclusion.--Funds made available to carry out the
            conservation reserve program may not be used to carry out the
            ACES program.''.
        (b) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2013.

    SEC. 2505. SMALL WATERSHED REHABILITATION PROGRAM.

        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
    ``2012'' and inserting ``2018''.

    SEC. 2506. EMERGENCY WATERSHED PROTECTION PROGRAM.

        Section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203)
    is amended--
                (1) by striking ``Sec. 402.--The Secretary'' and inserting
            the following:

    ``SEC. 402. EMERGENCY MEASURES.

        ``(a) In General.--The Secretary''; and
                (2) by adding at the end the following:
        ``(b) Floodplain Easements.--
                ``(1) Modification and termination.--The Secretary may
            modify or terminate a floodplain easement administered by the
            Secretary under this section if--
                        ``(A) the current owner agrees to the modification
                    or termination; and
                        ``(B) the Secretary determines that the
                    modification or termination--
                                ``(i) will address a compelling public need
                            for which there is no practicable alternative;
                            and
                                ``(ii) is in the public interest.
                ``(2) Consideration.--
                        ``(A) Termination.--As consideration for
                    termination of an easement and associated agreements
                    under paragraph (1), the Secretary shall enter into
                    compensatory arrangements as determined to be
                    appropriate by the Secretary.
                        ``(B) Modification.--In the case of a modification
                    under paragraph (1)--
                                ``(i) as a condition of the modification,
                            the current owner shall enter into a
                            compensatory arrangement (as determined to be
                            appropriate by the Secretary) to incur the
                            costs of modification; and
                                ``(ii) the Secretary shall ensure that--
                                        ``(I) the modification will not
                                    adversely affect the floodplain
                                    functions and values for which the
                                    easement was acquired;
                                        ``(II) any adverse impacts will be
                                    mitigated by enrollment and restoration
                                    of other land that provides greater
                                    floodplain functions and values at no
                                    additional cost to the Federal
                                    Government; and
                                        ``(III) the modification will
                                    result in equal or greater
                                    environmental and economic values to
                                    the United States.''.

    SEC. 2507. TERMINAL LAKES ASSISTANCE.

        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:

    ``SEC. 2507. TERMINAL LAKES ASSISTANCE.

        ``(a) Definitions.--In this section:
                ``(1) Eligible land.--The term `eligible land' means
            privately owned agricultural land (including land in which a
            State has a property interest as a result of state water law)--
                        ``(A) that a landowner voluntarily agrees to sell
                    to a State; and
                        ``(B) which--
                                ``(i)(I) is ineligible for enrollment as a
                            wetland reserve easement established under the
                            Agricultural Conservation Easement Program
                            under subtitle H of the Food Security Act of
                            1985;
                                ``(II) is flooded to--
                                        ``(aa) an average depth of at least
                                    6.5 feet; or
                                        ``(bb) a level below which the
                                    State determines the management of the
                                    water level is beyond the control of
                                    the State or landowner; or
                                ``(III) is inaccessible for agricultural
                            use due to the flooding of adjoining property
                            (such as islands of agricultural land created
                            by flooding);
                                ``(ii) is located within a watershed with
                            water rights available for lease or purchase;
                            and
                                ``(iii) has been used during at least 5 of
                            the immediately preceding 30 years--
                                        ``(I) to produce crops or hay; or
                                        ``(II) as livestock pasture or
                                    grazing.
                ``(2) Program.--The term `program' means the voluntary land
            purchase program established under this section.
                ``(3) Terminal lake.--The term `terminal lake' means a lake
            and its associated riparian and watershed resources that is--
                        ``(A) 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
                        ``(B) 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.
        ``(b) Assistance.--The Secretary shall--
                ``(1) provide grants under subsection (c) for the purchase
            of eligible land impacted by a terminal lake described in
            subsection (a)(3)(A); and
                ``(2) 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).
        ``(c) Land Purchase Grants.--
                ``(1) In general.--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.
                ``(2) Implementation.--
                        ``(A) Amount.--A land purchase grant shall be in an
                    amount not to exceed the lesser of--
                                ``(i) 50 percent of the total purchase
                            price per acre of the eligible land; or
                                ``(ii)(I) in the case of eligible land that
                            was used to produce crops or hay, $400 per
                            acre; and
                                ``(II) in the case of eligible land that
                            was pasture or grazing land, $200 per acre.
                        ``(B) Determination of purchase price.--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.
                        ``(C) Cost-share required.--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.
                        ``(D) Conditions.--To receive a land purchase
                    grant, a State shall agree--
                                ``(i) to ensure that any eligible land
                            purchased is--
                                        ``(I) conveyed in fee simple to the
                                    State; and
                                        ``(II) free from mortgages or other
                                    liens at the time title is transferred;
                                ``(ii) to maintain ownership of the
                            eligible land in perpetuity;
                                ``(iii) 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
                                ``(iv) to keep eligible land in a
                            conserving use, as defined by the Secretary.
                        ``(E) Loss of federal benefits.--Eligible land
                    purchased with a grant under this section shall lose
                    eligibility for any benefits under other Federal
                    programs, including--
                                ``(i) benefits under title XII of the Food
                            Security Act of 1985 (16 U.S.C. 3801 et seq.);
                                ``(ii) benefits under the Federal Crop
                            Insurance Act (7 U.S.C. 1501 et seq.); and
                                ``(iii) covered benefits described in
                            section 1001D(b) of the Food Security Act of
                            1985 (7 U.S.C. 1308-3a).
                        ``(F) Prohibition.--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.
        ``(d) Water Assistance.--
                ``(1) In general.--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--
                        ``(A) to lease water;
                        ``(B) to purchase land, water appurtenant to the
                    land, and related interests; and
                        ``(C) to carry out research, support and
                    conservation activities for associated fish, wildlife,
                    plant, and habitat resources.''
                ``(2) Exclusions.--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.
                ``(3) Transitional provision.--
                        ``(A) In general.--Notwithstanding any other
                    provision of this section, any funds made available
                    before the date of enactment of the Agriculture Reform,
                    Food, and Jobs Act of 2013 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.
                        ``(B) Described laws.--The provisions of law
                    described in this section are--
                                ``(i) 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
                            Agriculture Reform, Food, and Jobs Act of
                            2013);
                                ``(ii) section 207 of the Energy and Water
                            Development Appropriations Act, 2003 (Public
                            Law 108-7; 117 Stat. 146);
                                ``(iii) section 208 of the Energy and Water
                            Development Appropriations Act, 2006 (Public
                            Law 109-103; 119 Stat. 2268, 123 Stat. 2856);
                            and
                                ``(iv) 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).
        ``(e) Funding.--
                ``(1) Authorization of appropriations.--There is authorized
            to be appropriated to the Secretary to carry out subsection (c)
            $25,000,000, to remain available until expended.
                ``(2) Commodity credit corporation.--As soon as practicable
            after the date of enactment of the Agriculture Reform, Food,
            and Jobs Act of 2013, 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.''.

    SEC. 2508. STUDY OF POTENTIAL IMPROVEMENTS TO THE WETLAND MITIGATION
                  PROCESS.

        (a) In General.--Not later than 180 after the date of enactment of
    this Act, the Secretary shall carry out a study--
                (1) to evaluate the use of wetland mitigation procedures
            under this title and the amendments made by this title;
                (2) to determine the impact to wildlife habitat of relaxing
            the acre-for-acre requirement for wetland mitigation plans that
            result in new wetland that possesses a function and value
            greater than the wetland that is replaced; and
                (3) to provide legislative recommendations for how wetland
            mitigation procedures could be improved to better enable
            agricultural producers to use wetland mitigation in a manner
            that--
                        (A) benefits wildlife habitat; and
                        (B) allows producers greater access to the wetland
                    mitigation process.
        (b) Report.--Not later than 2 years after the date of enactment of
    this Act, the Secretary shall--
                (1) submit to Congress a report that contains--
                        (A) the findings of the study; and
                        (B) any legislative recommendations under
                    subsection (a)(3); and
                (2) publish the findings of the study on a public website
            and in the Federal Register.

    SEC. 2509. SOIL AND WATER RESOURCE CONSERVATION.

        (a) Congressional Policy and Declaration of Purpose.--Section 4 of
    the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2003)
    is amended--
                (1) in subsection (b), by inserting ``and tribal'' after
            ``State'' each place it appears; and
                (2) in subsection (c)(2), by inserting ``, tribal,'' after
            ``State''.
        (b) Continuing Appraisal of Soil, Water, and Related Resources.--
    Section 5 of the Soil and Water Resources Conservation Act of 1977 (16
    U.S.C. 2004) is amended--
                (1) in subsection (a)(4), by striking ``and State'' and
            inserting ``, State, and tribal'';
                (2) in subsection (b), by inserting ``, tribal'' after
            ``State'' each place it appears; and
                (3) in subsection (c)--
                        (A) by striking ``State soil'' and inserting
                    ``State and tribal soil''; and
                        (B) by striking ``local'' and inserting ``local,
                    tribal,''.
        (c) Soil and Water Conservation Program.--Section 6(a) of the Soil
    and Water Resources Conservation Act of 1977 (16 U.S.C. 2005(a)) is
    amended--
                (1) by inserting ``, tribal'' after ``State'' each place it
            appears; and
                (2) by inserting ``, tribal,'' after ``private''.
        (d) Utilization of Available Information and Data.--Section 9 of
    the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 2008)
    is amended by inserting ``, tribal'' after ``State''.

                     Subtitle G--Funding and Administration

    SEC. 2601. FUNDING.

        (a) In General.--Section 1241 of the Food Security Act of 1985 (16
    U.S.C. 3841) is amended by striking subsection (a) and inserting the
    following:
        ``(a) Annual Funding.--For each of fiscal years 2014 through 2018,
    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):
                ``(1) The conservation reserve program under subchapter B
            of chapter 1 of subtitle D, including, to the maximum extent
            practicable--
                        ``(A) $10,000,000 for the period of fiscal years
                    2014 through 2018 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
                        ``(B) $50,000,000 for the period of fiscal years
                    2014 through 2018 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.
                ``(2) The Agricultural Conservation Easement Program under
            subtitle H using to the maximum extent practicable--
                        ``(A) $450,000,000 for fiscal year 2014;
                        ``(B) $475,000,000 for fiscal year 2015;
                        ``(C) $500,000,000 for fiscal year 2016;
                        ``(D) $525,000,000 for fiscal year 2017; and
                        ``(E) $250,000,000 for fiscal year 2018.
                ``(3) 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.
                ``(4) The conservation stewardship program under subchapter
            B of chapter 2 of subtitle D.
                ``(5) The environmental quality incentives program under
            chapter 4 of subtitle D, using, to the maximum extent
            practicable--
                        ``(A) $1,500,000,000 for fiscal year 2014;
                        ``(B) $1,600,000,000 for fiscal year 2015; and
                        ``(C) $1,650,000,000 for each of fiscal years 2016
                    through 2018.''.
        (b) Guaranteed Availability of Funds.--Section 1241 of the Food
    Security Act of 1985 (16 U.S.C. 3841) is amended--
                (1) by redesignating subsections (b) through (h) as
            subsections (c) through (i), respectively;
                (2) by inserting after subsection (a) the following:
        ``(b) Availability of Funds.--Amounts made available by subsection
    (a) shall be used by the Secretary to carry out the programs specified
    in such subsection for fiscal years 2014 through 2018 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.''; and
                (3) in subsection (d) (as redesignated by paragraph (1)),
            by striking ``subsection (b)'' and inserting ``subsection
            (c)''.
        (c) Effective Date.--The amendments made by this section shall take
    effect on October 1, 2013.

    SEC. 2602. TECHNICAL ASSISTANCE.

        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:
        ``(c) Technical Assistance.--
                ``(1) Availability.--Commodity Credit Corporation funds
            made available for a fiscal year for each of the programs
            specified in subsection (a)--
                        ``(A) 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;
                        ``(B) except for technical assistance for the
                    conservation reserve program under subchapter B of
                    chapter 1 of subtitle D, shall be apportioned for the
                    provision of technical assistance in the amount
                    determined by the Secretary, at the sole discretion of
                    the Secretary; and
                        ``(C) 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.
                ``(2) Priority.--
                        ``(A) In general.--In the delivery of technical
                    assistance under the Soil Conservation and Domestic
                    Allotment Act (16 U.S.C. 590a et seq.), the Secretary
                    shall give priority to producers who request technical
                    assistance from the Secretary in order to comply for
                    the first time with the requirements of subtitle B and
                    subtitle C of this title as a result of the amendments
                    made by section 2609 of the Agriculture Reform, Food,
                    and Jobs Act of 2013.
                        ``(B) Report.--Not later than 270 days after the
                    date of enactment of the Agriculture Reform, Food, and
                    Jobs Act of 2013, 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
                    regarding the extent to which the conservation
                    compliance requirements contained in the amendments
                    made by section 2609 of the Agriculture Reform, Food,
                    and Jobs Act of 2013 apply to and impact specialty crop
                    growers, including national analysis and surveys to
                    determine the extent of specialty crop acreage includes
                    highly erodible land and wetlands.
                ``(3) Report.--Not later than December 31, 2013, 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--
                        ``(A) detailing the amount of technical assistance
                    funds requested and apportioned in each program
                    specified in subsection (a) during the preceding fiscal
                    year; and
                        ``(B) any other data relating to this provision
                    that would be helpful to such Committees.
                ``(4) Compliance report.--Not later than November 1 of each
            year, 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 includes--
                        ``(A) a description of the extent to which the
                    requests for highly erodible land conservation and
                    wetland compliance determinations are being addressed
                    in a timely manner;
                        ``(B) the total number of requests completed in the
                    previous fiscal year;
                        ``(C) the incomplete determinations on record; and
                        ``(D) the number of requests that are still
                    outstanding more than 1 year since the date on which
                    the requests were received from the producer.''.

    SEC. 2603. REGIONAL EQUITY.

        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:
        ``(e) Regional Equity.--
                ``(1) Equitable distribution.--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, and subtitle I to
            ensure equitable program participation proportional to
            historical funding allocations and usage by all States.
                ``(2) Minimum percentage.--In determining the specific
            funding allocations under paragraph (1), the Secretary shall--
                        ``(A) 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
                        ``(B) 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.''.

    SEC. 2604. RESERVATION OF FUNDS TO PROVIDE ASSISTANCE TO CERTAIN
                  FARMERS OR RANCHERS FOR CONSERVATION ACCESS.

        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--
                (1) in paragraph (1) by striking ``2012'' and inserting
            ``2018''; and
                (2) by adding at the end the following:
                ``(4) Preference.--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).''.

    SEC. 2605. ANNUAL REPORT ON PROGRAM ENROLLMENTS AND ASSISTANCE.

        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--
                (1) in paragraph (1), by striking ``wetlands reserve
            program'' and inserting ``agricultural conservation easement
            program'';
                (2) by striking paragraphs (2) and (3) and redesignating
            paragraphs (4), (5), and (6) as paragraphs (2), (3), and (4),
            respectively;
                (3) in paragraph (3) (as so redesignated)--
                        (A) by striking ``agricultural water enhancement
                    program'' and inserting ``regional conservation
                    partnership program''; and
                        (B) by striking ``section 1240I(g)'' and inserting
                    ``section 1271C(c)(3)''; and
                (4) by adding at the end the following:
                ``(5) Payments made under the conservation stewardship
            program.
                ``(6) Waivers granted by the Secretary under section
            1265B(b)(2)(C).''.

    SEC. 2606. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

        Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) is
    amended--
                (1) in subsection (a)(2), by adding at the end the
            following:
                        ``(E) 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))).'';
                (2) in subsection (d), by inserting ``, H, and I'' before
            the period at the end;
                (3) in subsection (f)--
                        (A) in paragraph (1)(B), by striking ``country''
                    and inserting ``county'';
                        (B) in paragraph (3), by striking ``subsection
                    (c)(2)(B) or (f)(4)'' and inserting ``subsection
                    (c)(2)(A)(ii) or (f)(2)''; and
                (4) in subsection (h)(2), by inserting ``including, to the
            extent practicable, practices that maximize benefits for honey
            bees'' after ``pollinators''; and
                (5) by adding at the end the following:
        ``(j) Improved Administrative Efficiency and Effectiveness.--In
    administrating a conservation program under this title, the Secretary
    shall, to the maximum extent practicable--
                ``(1) seek to reduce administrative burdens and costs to
            producers by streamlining conservation planning and program
            resources; and
                ``(2) take advantage of new technologies to enhance
            efficiency and effectiveness.
        ``(k) Relation to Other Payments.--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:
                ``(1) This Act.
                ``(2) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).
                ``(3) The Agriculture Reform, Food, and Jobs Act of 2013.
                ``(4) Any law that succeeds a law specified in paragraph
            (1), (2), or (3).
        ``(l) Funding for Indian Tribes.--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.''.

    SEC. 2607. RULEMAKING AUTHORITY.

        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:

    ``SEC. 1246. REGULATIONS.

        ``(a) In General.--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).
        ``(b) Rulemaking Procedure.--The promulgation of regulations and
    administration of programs under this title--
                ``(1) shall be carried out without regard to--
                        ``(A) 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
                        ``(B) chapter 35 of title 44, United States Code
                    (commonly known as the Paperwork Reduction Act); and
                ``(2) shall be made as an interim rule effective on
            publication with an opportunity for notice and comment.
        ``(c) Congressional Review of Agency Rulemaking.--In promulgating
    regulations under this section, the Secretary shall use the authority
    provided under section 808 of title 5, United States Code.''.

    SEC. 2608. STANDARDS FOR STATE TECHNICAL COMMITTEES.

        Section 1261(b) of the Food Security Act of 1985 (16 U.S.C.
    3861(b)) is amended by striking ``Not later than 180 days after the
    date of enactment of the Food, Conservation, and Energy Act of 2008,
    the Secretary shall develop'' and inserting ``The Secretary shall
    review and update as necessary''.

    SEC. 2609. HIGHLY ERODIBLE LAND AND WETLAND CONSERVATION FOR CROP
                  INSURANCE.

        (a) Highly Erodible Land Program Ineligibility.--
                (1) In general.--Section 1211(a)(1) of the Food Security
            Act of 1985 (16 U.S.C. 3811(a)(1)) is amended--
                        (A) in subparagraph (C), by striking ``or'' at the
                    end;
                        (B) in subparagraph (D), by adding ``or'' at the
                    end; and
                        (C) by adding at the end the following:
                        ``(E) 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.), on the condition that if a person
                    is determined to have committed a violation under this
                    subsection during a crop year, ineligibility under this
                    subparagraph shall--
                                ``(i) only apply to reinsurance years
                            subsequent to the date of final determination
                            of a violation, including all administrative
                            appeals; and
                                ``(ii) not apply to the existing
                            reinsurance year or any reinsurance year prior
                            to the date of final determination.''.
                (2) Exemptions.--Section 1212(a)(2) of the Food Security
            Act of 1985 (16 U.S.C. 3812(a)(2)) is amended--
                        (A) in the first sentence, by striking ``(2) If,''
                    and inserting the following:
                ``(2) Eligibility based on compliance with conservation
            plan.--
                        ``(A) In general.--If,'';
                        (B) in the second sentence, by striking ``In
                    carrying'' and inserting the following:
                        ``(B) Minimization of documentation.--In
                    carrying''; and
                        (C) by adding at the end the following:
                        ``(C) Crop insurance.--Notwithstanding section
                    1211(a)--
                                ``(i) in the case of a person that is
                            subject to section 1211 for the first time
                            after May 1, 2013, due to the amendment made by
                            section 2609(a) of the Agriculture Reform,
                            Food, and Jobs Act of 2013, any person who
                            produces an agricultural commodity on the land
                            that is the basis of the payments described in
                            section 1211(a)(1)(E) shall have 5 reinsurance
                            years after the date on which such payments
                            become subject to section 1211 to develop and
                            comply with an approved conservation plan so as
                            to maintain eligibility for such payments; and
                                ``(ii) in the case of a person that the
                            Secretary determines would have been in
                            violation of section 1211(a) if the person had
                            continued participation in the programs
                            requiring compliance at any time after the date
                            of enactment of the Food, Conservation, and
                            Energy Act of 2008 (7 U.S.C. 8701 et seq.) and
                            is currently in violation of section 1211(a),
                            the person shall have 2 reinsurance years after
                            the date on which the payments described in
                            section 1211(a)(1)(E) become subject to section
                            1211 to develop and comply with an approved
                            conservation plan, as determined by the
                            Secretary, so as to maintain eligibility for
                            such payments.''.
        (b) Wetland Conservation Program Ineligibility.--Section 1221 of
    the Food Security Act of 1985 (16 U.S.C. 3821) is amended--
                (1) in subsection (b), by adding at the end the following:
                ``(4) Crop insurance.--
                        ``(A) In general.--Except as provided in this
                    paragraph, a person subject to a final determination,
                    including all administrative appeals, of a violation of
                    subsection (c) shall have 1 reinsurance year to
                    initiate a conservation plan to remedy the violation,
                    as determined by the Secretary, before becoming
                    ineligible under that subsection in the following
                    reinsurance year to receive any payment of 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.).
                        ``(B) Applicability.--In the case of a person that
                    is subject to this subsection or subsection (d) for the
                    first time due to the amendment made by section 2609(b)
                    of the Agriculture Reform, Food, and Jobs Act of 2013,
                    the person shall have 2 reinsurance years after the
                    date of final determination, including all
                    administrative appeals, to take such steps as the
                    Secretary determines appropriate to remedy or mitigate
                    the violation in accordance with subsection (c).
                        ``(C) Good faith.--If the Secretary determines that
                    a person subject to a final determination, including
                    all administrative appeals, of a violation of
                    subsection (c) acted in good faith and without intent
                    to violate this section as described in section
                    1222(h), the Secretary shall give the person 1
                    reinsurance year to begin mitigation, restoration, or
                    such other steps as are determined necessary by the
                    Secretary.
                        ``(D) Tenant relief.--
                                ``(i) In general.--If a tenant is
                            determined to be ineligible for payments and
                            other benefits under this section, the
                            Secretary may limit the ineligibility only to
                            the farm that is the basis for the
                            ineligibility determination if the tenant has
                            established, to the satisfaction of the
                            Secretary that--
                                        ``(I) the tenant has made a good
                                    faith effort to meet the requirements
                                    of this section, including enlisting
                                    the assistance of the Secretary to
                                    obtain a reasonable conservation plan
                                    for restoration or mitigation for the
                                    farm;
                                        ``(II) the landlord on the farm
                                    refuses to comply with the plan on the
                                    farm; and
                                        ``(III) the Secretary determines
                                    that the lack of compliance is not a
                                    part of a scheme or device to avoid the
                                    compliance.
                                ``(ii) Report.--The Secretary shall provide
                            an annual report to the Committee on
                            Agriculture of the House of Representatives and
                            the Committee on Agriculture, Nutrition, and
                            Forestry of the Senate concerning the
                            ineligibility determinations limited during the
                            previous 12-month period under this
                            subparagraph.
                        ``(E) Certification.--
                                ``(i) In general.--Beginning with the first
                            full reinsurance year immediately following the
                            date of enactment of this paragraph, all
                            persons seeking eligibility for the payment of
                            a portion of the 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.) shall provide
                            certification of compliance with this section
                            as determined by the Secretary.
                                ``(ii) Timely evaluation.--The Secretary
                            shall evaluate the certification in a timely
                            manner and--
                                        ``(I) a person who has properly
                                    complied with certification shall be
                                    held harmless with regard to
                                    eligibility during the period of
                                    evaluation; and
                                        ``(II) if the Secretary fails to
                                    evaluate the certification in a timely
                                    manner and the person is subsequently
                                    found to be in violation of subsection
                                    (c), ineligibility shall not apply to
                                    the person for that violation.
                                ``(iii) Equitable contribution.--
                                        ``(I) In general.--If a person
                                    fails to notify the Secretary as
                                    required and is subsequently found in
                                    violation of subsection (c), the
                                    Secretary shall determine the amount of
                                    an equitable contribution to
                                    conservation in accordance with section
                                    1241(f) by the person for the
                                    violation.
                                        ``(II) Limitation.--The
                                    contribution shall not exceed the total
                                    of the portion of premium paid by the
                                    Federal Crop Insurance Corporation for
                                    a plan or policy of insurance for all
                                    years the person is determined to have
                                    been in violation subsequent to the
                                    date on which certification was first
                                    required under this subparagraph.'';
                (2) by redesignating subsections (c), (d), and (e) as
            subsections (d), (e), and (f), respectively; and
                (3) by inserting after subsection (b) the following:
        ``(c) Ineligibility for Crop Insurance Premium Assistance.--
                ``(1) In general.--If a person is determined to have
            committed a violation under subsection (a) or (d) during a crop
            year, the person shall be ineligible to receive any payment of
            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.).
                ``(2) Applicability.--Ineligibility under this subsection
            shall--
                        ``(A) only apply to reinsurance years subsequent to
                    the date of final determination of a violation,
                    including all administrative appeals; and
                        ``(B) not apply to--
                                ``(i) the existing reinsurance year; or
                                ``(ii) any reinsurance year prior to the
                            date of final determination.
                ``(3) Date of conversion.--Notwithstanding subsection (d),
            ineligibility for crop insurance premium assistance shall apply
            as follows:
                        ``(A) In the case of wetland that the Secretary
                    determines was converted after the date of enactment of
                    the Food, Conservation and Energy Act of 2008 (7 U.S.C.
                    8701 et seq.) but on or before May 1, 2013, and
                    continues to be in violation, the person shall have 2
                    reinsurance years after the date on which this
                    subsection applies, to begin the mitigation process, as
                    determined by the Secretary.
                        ``(B) In the case of wetland that the Secretary
                    determines was converted after May 1, 2013--
                                ``(i) subject to clause (ii), the person
                            shall be ineligible to receive crop insurance
                            premium subsidies in subsequent reinsurance
                            years unless section 1222(b) applies; and
                                ``(ii) for any violation that the Secretary
                            determines impacts less than 5 acres of the
                            entire farm, the person may pay a contribution
                            in accordance with section 1241(f) in an amount
                            equal to 150 percent of the cost of mitigation,
                            as determined by the Secretary, for wetland
                            restoration in lieu of ineligibility to receive
                            crop insurance premium assistance.
                        ``(C) In the case of a wetland that the Secretary
                    determines was converted prior to the date of enactment
                    of the Food, Conservation, and Energy Act of 2008 (7
                    U.S.C. 8701 et seq.), ineligibility under this
                    subsection shall not apply.
                        ``(D) In the case of an agricultural commodity for
                    which an individual policy or plan of insurance is
                    available for the first time to the person after the
                    date of enactment of the Agriculture Reform, Food, and
                    Jobs Act of 2013--
                                ``(i) ineligibility shall apply only to
                            conversions that take place after the date on
                            which the policy or plan of insurance first
                            becomes available to the person; and
                                ``(ii) the person shall take such steps as
                            the Secretary determines appropriate to
                            mitigate any prior conversion in a timely
                            manner but not to exceed 2 calendar years.
                ``(4) Certification.--
                        ``(A) In general.--In enforcing eligibility under
                    this subsection, the Secretary shall use existing
                    processes and procedures for certifying compliance.
                        ``(B) Responsibility.--The Secretary, acting
                    through the agencies of the Department of Agriculture,
                    shall be solely responsible for determining whether a
                    producer is eligible to receive crop insurance premium
                    subsidies in accordance with this subsection.
                        ``(C) Limitation.--The Secretary shall ensure that
                    no agent, approved insurance provider, or employee or
                    contractor of an agency or approved insurance provider,
                    bears responsibility or liability for the eligibility
                    of an insured producer under this subsection, other
                    than in cases of misrepresentation, fraud, or scheme
                    and devise.''.

    SEC. 2610. ADJUSTED GROSS INCOME LIMITATION FOR CONSERVATION PROGRAMS.

        Section 1001D(b)(2)(A) of the Food Security Act of 1985 (7 U.S.C.
    1308-3a(b)(2)(A)) is amended--
                (1) by striking ``Limits.--'' and all that follows through
            ``clause (ii),'' and inserting ``Limits.--Notwithstanding any
            other provision of law,''; and
                (2) by striking clause (ii).

     Subtitle H--Repeal of Superseded Program Authorities and Transitional
                                   Provisions

    SEC. 2701. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.

        Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is
    repealed.

    SEC. 2702. EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.

        (a) Repeal.--Section 1231A of the Food Security Act of 1985 (16
    U.S.C. 3831a) is repealed.
        (b) Transitional Provisions.--
                (1) Effect on existing contracts.--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, 2013, or any payments required to be
            made in connection with the contract.
                (2) Funding.--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, 2013.
        (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2013.

    SEC. 2703. WETLANDS RESERVE PROGRAM.

        (a) Repeal.--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.
        (b) Transitional Provisions.--
                (1) Effect on existing contracts and easements.--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, 2013, or any payments required to be
            made in connection with the contract or easement.
                (2) Funding.--
                        (A) Use of prior year funds.--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 2013 shall be made available to carry out
                    contracts or easements referred to in paragraph (1)
                    that were entered into prior to October 1, 2013
                    (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.
                        (B) Other.--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, 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, 2013.
        (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2013.

    SEC. 2704. FARMLAND PROTECTION PROGRAM AND FARM VIABILITY PROGRAM.

        (a) Repeal.--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.
        (b) Transitional Provisions.--
                (1) Effect on existing agreements and easements.--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, 2013, or any payments
            required to be made in connection with the agreement or
            easement.
                (2) Funding.--
                        (A) Use of prior year funds.--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 2013 shall be made available to
                    carry out agreements and easements referred to in
                    paragraph (1) that were entered into prior to October
                    1, 2013 (including the provision of technical
                    assistance).
                        (B) Other.--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, 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, 2013.
        (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2013.

    SEC. 2705. GRASSLAND RESERVE PROGRAM.

        (a) Repeal.--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.
        (b) Transitional Provisions.--
                (1) Effect on existing contracts, agreements, and
            easements.--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, 2013,
            or any payments required to be made in connection with the
            contract, agreement, or easement.
                (2) Funding.--
                        (A) Use of prior year funds.--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 2013 shall be made available to carry out
                    contracts, agreements, or easements referred to in
                    paragraph (1) that were entered into prior to October
                    1, 2013 (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.
                        (B) Other.--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, 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, 2013.
        (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2013.

    SEC. 2706. AGRICULTURAL WATER ENHANCEMENT PROGRAM.

        (a) Repeal.--Section 1240I of the Food Security Act of 1985 (16
    U.S.C. 3839aa-9) is repealed.
        (b) Transitional Provisions.--
                (1) Effect on existing contracts and agreements.--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,
            2013, or any payments required to be made in connection with
            the contract or agreement.
                (2) Funding.--
                        (A) Use of prior year funds.--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 2013 shall be
                    made available to carry out contracts and agreements
                    referred to in paragraph (1) that were entered into
                    prior to October 1, 2013 (including the provision of
                    technical assistance).
                        (B) Other.--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, 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, 2013.
        (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2013.

    SEC. 2707. WILDLIFE HABITAT INCENTIVE PROGRAM.

        (a) Repeal.--Section 1240N of the Food Security Act of 1985 (16
    U.S.C. 3839bb-1) is repealed.
        (b) Transitional Provisions.--
                (1) Effect on existing contracts.--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, 2013, or any payments required to
            be made in connection with the contract.
                (2) Funding.--
                        (A) Use of prior year funds.--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 2013 shall be made
                    available to carry out contracts referred to in
                    paragraph (1) which were entered into prior to October
                    1, 2013 (including the provision of technical
                    assistance).
                        (B) Other.--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, 2013.
        (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2013.

    SEC. 2708. GREAT LAKES BASIN PROGRAM.

        (a) Repeal.--Section 1240P of the Food Security Act of 1985 (16
    U.S.C. 3839bb-3) is repealed.
        (b) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2013.

    SEC. 2709. CHESAPEAKE BAY WATERSHED PROGRAM.

        (a) Repeal.--Section 1240Q of the Food Security Act of 1985 (16
    U.S.C. 3839bb-4) is repealed.
        (b) Transitional Provisions.--
                (1) Effect on existing contracts, agreements, and
            easements.--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, 2013, or any payments required to be made in
            connection with the contract, agreement, or easement.
                (2) Funding.--
                        (A) Use of prior year funds.--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 2013 shall be made available
                    to carry out contracts, agreements, and easements
                    referred to in paragraph (1) that were entered into
                    prior to October 1, 2013 (including the provision of
                    technical assistance).
                        (B) Other.--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, 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, 2013.
        (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2013.

    SEC. 2710. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

        (a) Repeal.--Section 1243 of the Food Security Act of 1985 (16
    U.S.C. 3843) is repealed.
        (b) Transitional Provisions.--
                (1) Effect on existing contracts and agreements.--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, 2013,
            or any payments required to be made in connection with the
            contract or agreement.
                (2) Funding.--
                        (A) Use of prior year funds.--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 2013 shall
                    be made available to carry out contracts and agreements
                    referred to in paragraph (1) that were entered into
                    prior to October 1, 2013 (including the provision of
                    technical assistance).
                        (B) Other.--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, 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, 2013.
        (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2013.

    SEC. 2711. ENVIRONMENTAL EASEMENT PROGRAM.

        Chapter 3 of subtitle D of title XII of the Food Security Act of
    1985 (16 U.S.C. 3839 et seq.) is repealed.

    SEC. 2712. TECHNICAL AMENDMENTS.

        (a) 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
    ``E'' and inserting ``I''.
        (b) Section 1211(a) of the Food Security Act of 1985 (16 U.S.C.
    3811(a)) is amended by striking ``predominate'' each place it appears
    and inserting ``predominant''.
        (c) Section 1242(i) of the Food Security Act of 1985 (16 U.S.C.
    3842(i)) is amended in the subsection heading by striking
    ``Speciality'' and inserting ``Specialty''.

                                TITLE III--TRADE

                         Subtitle A--Food for Peace Act

    SEC. 3001. SET-ASIDE FOR SUPPORT FOR ORGANIZATIONS THROUGH WHICH
                  NONEMERGENCY ASSISTANCE IS PROVIDED.

        Effective October 1, 2013, section 202(e)(1) of the Food for Peace
    Act (7 U.S.C. 1722(e)(1)) is amended--
                (1) in the matter preceding subparagraph (A), by striking
            ``13 percent'' and inserting ``15 percent''; and
                (2) in subparagraph (A), by striking ``new'' and inserting
            ``and enhancing''.

    SEC. 3002. FOOD AID QUALITY.

        Section 202(h) of the Food for Peace Act (7 U.S.C. 1722(h)) is
    amended--
                (1) by striking paragraph (1) and inserting the following:
                ``(1) In general.--The Administrator shall use funds made
            available for fiscal year 2014 and subsequent fiscal years to
            carry out this title--
                        ``(A) to assess the types and quality of
                    agricultural commodities and products donated for food
                    aid;
                        ``(B) to adjust products and formulations,
                    including potential introduction of new fortificants
                    and products, as necessary to cost-effectively meet
                    nutrient needs of target populations;
                        ``(C) to test prototypes;
                        ``(D) 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;
                        ``(E) to develop new program guidance to facilitate
                    improved matching of products to purposes having
                    nutritional intent, in coordination with other
                    international partners;
                        ``(F) 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
                        ``(G) 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.'';
                    and
                (2) in paragraph (3), by striking ``2011'' and inserting
            ``2018''.

    SEC. 3003. MINIMUM LEVELS OF ASSISTANCE.

        Section 204(a) of the Food for Peace Act (7 U.S.C. 1724(a)) is
    amended--
                (1) in paragraph (1), by striking ``2012'' and inserting
            ``2018''; and
                (2) in paragraph (2), by striking ``2012'' and inserting
            ``2018''.

    SEC. 3004. REAUTHORIZATION OF FOOD AID CONSULTATIVE GROUP.

        Section 205(f) of the Food for Peace Act (7 U.S.C. 1725(f)) is
    amended by striking ``2012'' and inserting ``2018''.

    SEC. 3005. OVERSIGHT, MONITORING, AND EVALUATION OF FOOD FOR PEACE ACT
                  PROGRAMS.

        Section 207(f) of the Food for Peace Act (7 U.S.C. 1726a(f)) is
    amended--
                (1) by striking paragraph (4) and redesignating paragraphs
            (5) and (6) as paragraphs (4) and (5), respectively; and
                (2) in subparagraph (A) of paragraph (5) (as so
            redesignated)--
                        (A) by striking ``2012'' and inserting ``2018'';
                    and
                        (B) by striking ``during fiscal year 2009'' and
                    inserting ``during the period of fiscal years 2014
                    through 2018''.

    SEC. 3006. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION,
                  DELIVERY, AND DISTRIBUTION OF SHELF-STABLE PREPACKAGED
                  FOODS.

        Section 208(f) of the Food for Peace Act (7 U.S.C. 1726b(f)) is
    amended by striking ``2012'' and inserting ``2018''.

    SEC. 3007. LIMITATION ON TOTAL VOLUME OF COMMODITIES MONETIZED.

        Section 403 of the Food for Peace Act (7 U.S.C. 1733) is amended by
    adding at the end the following:
        ``(m) Limitation on Monetization of Commodities.--
                ``(1) Limitation.--
                        ``(A) In general.--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.
                        ``(B) Rate of return.--For purposes of subparagraph
                    (A), the rate of return shall be equal to the
                    proportion that--
                                ``(i) the proceeds the implementing
                            partners generate through monetization; bears
                            to
                                ``(ii) the cost to the Federal Government
                            to procure and ship the commodities to a
                            recipient country for monetization.
                ``(2) Waiver authority.--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.
                ``(3) Report.--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--
                        ``(A) contains the reasons for granting the waiver
                    and the actual rate of return for the commodity; and
                        ``(B) 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.''.

    SEC. 3008. FLEXIBILITY.

        Section 406 of the Food for Peace Act (7 U.S.C. 1736) is amended--
                (1) by redesignating subsections (c) and (d) as subsections
            (d) and (e), respectively; and
                (2) by inserting after subsection (b) the following:
        ``(c) Flexibility.--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.''.

    SEC. 3009. PROCUREMENT, TRANSPORTATION, TESTING, AND STORAGE OF
                  AGRICULTURAL COMMODITIES FOR PREPOSITIONING IN THE UNITED
                  STATES AND FOREIGN COUNTRIES.

        Section 407 of the Food for Peace Act (7 U.S.C. 1736a) is amended--
                (1) in subparagraph (c)(4)(A)--
                        (A) by striking ``2012'' and inserting ``2018'';
                    and
                        (B) by striking ``for each such fiscal year not
                    more than $10,000,000 of such funds'' and inserting
                    ``for each of fiscal years 2001 through 2012 not more
                    than $10,000,000 of such funds and for each of fiscal
                    years 2014 through 2018 not more than $15,000,000 of
                    such funds''; and
                (2) by adding at the end the following:
        ``(g) Funding for Testing of Food Aid Shipments.--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.''.

    SEC. 3010. DEADLINE FOR AGREEMENTS TO FINANCE SALES OR TO PROVIDE OTHER
                  ASSISTANCE.

        Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is amended
    by striking ``2012'' and inserting ``2018''.

    SEC. 3011. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.

        Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is amended
    by striking subsection (e) and inserting the following:
        ``(e) Minimum Level of Nonemergency Food Assistance.--
                ``(1) In general.--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 2014 through 2018
            shall be expended for nonemergency food assistance programs
            under title II.
                ``(2) Minimum level.--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.''.

    SEC. 3012. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS REPORT.

        Section 413 of the Food for Peace Act (7 U.S.C. 1736g) is amended--
                (1) by striking ``(a) In General.--To the maximum'' and
            inserting ``To the maximum''; and
                (2) by striking subsection (b).

    SEC. 3013. MICRONUTRIENT FORTIFICATION PROGRAMS.

        (a) Elimination of Obsolete Reference to Study.--Section
    415(a)(2)(B) of the Food for Peace Act (7 U.S.C. 1736g-2(a)(2)(B)) is
    amended by striking ``, using recommendations'' and all that follows
    through ``quality enhancements''.
        (b) Extension.--Section 415(c) of the Food for Peace Act (7 U.S.C.
    1736g-2(c)) is amended by striking ``2012'' and inserting ``2018''.

    SEC. 3014. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER PROGRAM.

        Section 501 of the Food for Peace Act (7 U.S.C. 1737) is amended--
                (1) in subsection (d)--
                        (A) by striking ``0.5 percent'' and inserting ``0.6
                    percent''; and
                        (B) by striking ``2012'' and inserting ``2018'';
                    and
                (2) in subsection (e)(1), by striking ``2012'' and
            inserting ``2018''.

    SEC. 3015. PROHIBITION ON ASSISTANCE FOR NORTH KOREA.

        (a) In General.--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.
        (b) National Interest Waiver.--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.

                   Subtitle B--Agricultural Trade Act of 1978

    SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAMS.

        Section 211 of the Agricultural Trade Act of 1978 (7 U.S.C. 5641)
    is amended by striking subsection (b) and inserting the following:
        ``(b) Export Credit Guarantee Programs.--The Commodity Credit
    Corporation shall make available for each of fiscal years 2014 through
    2018 credit guarantees under section 202(a) in an amount equal to not
    more than $4,500,000,000 in credit guarantees.''.

    SEC. 3102. FUNDING FOR MARKET ACCESS PROGRAM.

        Section 211(c)(1)(A) of the Agricultural Trade Act of 1978 (7
    U.S.C. 5641(c)(1)(A)) is amended by striking ``2012'' and inserting
    ``2018''.

    SEC. 3103. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

        Section 703(a) of the Agricultural Trade Act of 1978 (7 U.S.C.
    5723(a)) is amended by striking ``2012'' and inserting ``2018''.

                   Subtitle C--Other Agricultural Trade Laws

    SEC. 3201. FOOD FOR PROGRESS ACT OF 1985.

        (a) Extension.--The Food for Progress Act of 1985 (7 U.S.C. 1736o)
    is amended--
                (1) in subsection (f)(3), by striking ``2012'' and
            inserting ``2018'';
                (2) in subsection (g), by striking ``2012'' and inserting
            ``2018'';
                (3) in subsection (k), by striking ``2012'' and inserting
            ``2018''; and
                (4) in subsection (l)(1), by striking ``2012'' and
            inserting ``2018''.
        (b) Repeal of Completed Project.--Subsection (f) of the Food for
    Progress Act of 1985 (7 U.S.C. 1736o) is amended by striking paragraph
    (6).
        (c) Flexibility.--The Food for Progress Act of 1985 (7 U.S.C.
    1736o) is amended in subsection (l) by adding at the end the following:
                ``(5) Flexibility.--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.''.
        (d) Limitation on Total Volume of Commodities Monetized.--The Food
    for Progress Act of 1985 (7 U.S.C. 1736o) is amended by adding at the
    end the following:
        ``(p) Limitation on Monetization of Commodities.--
                ``(1) Limitation.--
                        ``(A) In general.--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.
                        ``(B) Rate of return.--For purposes of subparagraph
                    (A), the rate of return shall be equal to the
                    proportion that--
                                ``(i) the proceeds the implementing
                            partners generate through monetization; bears
                            to
                                ``(ii) the cost to the Federal Government
                            to procure and ship the eligible commodities to
                            a recipient country for monetization.
                ``(2) Waiver authority.--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.
                ``(3) Report.--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--
                        ``(A) contains the reasons for granting the waiver
                    and the actual rate of return for the eligible
                    commodity; and
                        ``(B) 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.''.

    SEC. 3202. BILL EMERSON HUMANITARIAN TRUST.

        Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C.
    1736f-1) is amended--
                (1) in subsection (b)(2)(B)(i), by striking ``2012'' both
            places it appears and inserting ``2018''; and
                (2) in subsection (h), by striking ``2012'' both places it
            appears and inserting ``2018''.

    SEC. 3203. PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING MARKETS.

        (a) Direct Credits or Export Credit Guarantees.--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 ``2012'' and
    inserting ``2018''.
        (b) Development of Agricultural Systems.--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 ``2012'' and
    inserting ``2018''.

    SEC. 3204. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD
                  NUTRITION PROGRAM.

        (a) Reauthorization.--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 ``2012'' and inserting ``2018''.
        (b) Technical Correction.--Section 3107(d) of the Farm Security and
    Rural Investment Act of 2002 (7 U.S.C. 1736o-1(d)) is amended by
    striking ``to'' in the matter preceding paragraph (1).

    SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

        (a) Purpose.--Section 3205(b) of the Farm Security and Rural
    Investment Act of 2002 (7 U.S.C. 5680(b)) is amended by striking
    ``related barriers to trade'' and inserting ``technical barriers to
    trade''.
        (b) Funding.--Section 3205(e)(2) of the Farm Security and Rural
    Investment Act of 2002 (7 U.S.C. 5680(e)(2)) is amended--
                (1) by inserting ``and'' at the end of subparagraph (C);
            and
                (2) by striking subparagraphs (D) and (E) and inserting the
            following new subparagraph:
                        ``(D) $9,000,000 for each of fiscal years 2011
                    through 2018.''.

    SEC. 3206. GLOBAL CROP DIVERSITY TRUST.

        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
    ``2008 through 2012'' and inserting ``2014 through 2018''.

    SEC. 3207. LOCAL AND REGIONAL FOOD AID PROCUREMENT PROJECTS.

        Section 3206 of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 1726c) is amended--
                (1) in subsection (b)--
                        (A) by striking ``(b) Study; Field-Based
                    Projects.--'' and all that follows through ``(2) Field-
                    based projects.--'' and inserting the following:
        ``(b) Field-Based Projects.--'';
                        (B) by redesignating subparagraphs (A) and (B) as
                    paragraphs (1) and (2), respectively, and indenting
                    appropriately;
                        (C) in paragraph (1) (as so redesignated), by
                    striking ``subparagraph (B)'' and inserting ``paragraph
                    (2)''; and
                        (D) in paragraph (2) (as so redesignated), by
                    striking ``subparagraph (A)'' and inserting ``paragraph
                    (1)'';
                (2) in subsection (c)(1), by striking ``subsection (b)(2)''
            and inserting ``subsection (b)'';
                (3) by striking subsections (d), (f), and (g);
                (4) by redesignating subsection (e) as subsection (d);
                (5) in subsection (d) (as so redesignated)--
                        (A) in paragraph (2)--
                                (i) by striking subparagraph (B); and
                                (ii) in subparagraph (A)--
                                        (I) by striking ``(A)
                                    Application.--'' and all that follows
                                    through ``To be eligible'' in clause
                                    (i) and inserting the following:
                        ``(A) In general.--To be eligible'';
                                        (II) by redesignating clause (ii)
                                    as subparagraph (B) and indenting
                                    appropriately; and
                                        (III) in subparagraph (B) (as so
                                    redesignated), by striking ``clause
                                    (i)'' and inserting ``subparagraph
                                    (A)''; and
                        (B) by striking paragraph (4); and
                (6) by adding at the end the following:
        ``(e) Funding.--
                ``(1) Authorization of appropriations.--There is authorized
            to be appropriated to carry out this section $60,000,000 for
            each of fiscal years 2014 through 2018.
                ``(2) Preference.--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).
                ``(3) Reporting.--Each year, the Secretary shall submit to
            the appropriate committees of Congress a report that describes
            the use of funds under this section, including--
                        ``(A) the impact of procurements and projects on--
                                ``(i) local and regional agricultural
                            producers; and
                                ``(ii) markets and consumers, including
                            low-income consumers; and
                        ``(B) implementation time frames and costs.''.

    SEC. 3208. DONALD PAYNE HORN OF AFRICA FOOD RESILIENCE PROGRAM.

        (a) Definitions.--In this section:
                (1) Administrator.--The term ``Administrator'' means the
            Administrator of the Agency for International Development.
                (2) Appropriate committees of congress.--The term
            ``appropriate committees of Congress'' means--
                        (A) the Committee on Agriculture, Nutrition, and
                    Forestry of the Senate;
                        (B) the Committee on Agriculture of the House of
                    Representatives;
                        (C) the Committee on Foreign Relations of the
                    Senate; and
                        (D) the Committee on Foreign Affairs of the House
                    of Representatives.
                (3) Eligible organization.--The term ``eligible
            organization'' means an organization that is--
                        (A) a private voluntary organization or cooperative
                    that is, to the extent practicable, registered with the
                    Administrator; or
                        (B) an intergovernmental organization, such as the
                    World Food Program.
                (4) Horn of africa.--The term ``Horn of Africa'' means the
            countries of--
                        (A) Ethiopia;
                        (B) Somalia;
                        (C) Kenya;
                        (D) Djibouti;
                        (E) Eritrea;
                        (F) South Sudan;
                        (G) Uganda; and
                        (H) such other countries as the Administrator
                    determines to be appropriate after providing
                    notification to the appropriate committees of Congress.
                (5) Resilience.--The term ``resilience'' means--
                        (A) 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;
                        (B) the capacity to respond effectively to crises,
                    ensuring basic needs are met in a way that is
                    integrated with long-term development efforts; and
                        (C) the capacity to recover and rebuild after
                    crises so that future shocks can be absorbed with less
                    need for ongoing external assistance.
        (b) Purpose.--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--
                (1) to reduce the impacts of future crises;
                (2) to enhance local capacity for emergency response;
                (3) to enhance sustainability of long-term development
            programs targeting poor and vulnerable households; and
                (4) to reduce the need for repeated costly emergency
            operations.
        (c) Study.--
                (1) In general.--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--
                        (A) other donor countries;
                        (B) private voluntary organizations;
                        (C) the World Food Program of the United Nations;
                    and
                        (D) multilateral institutions, including the World
                    Bank.
                (2) Requirements.--The study shall--
                        (A) include all programs implemented through the
                    Agency for International Development, the Department of
                    Agriculture, the Department of the Treasury, the
                    Millennium Challenge Corporation, the Peace Corps, and
                    other relevant Federal agencies;
                        (B) evaluate how well the programs described in
                    subparagraph (A) work together to complement each other
                    and leverage impacts across programs;
                        (C) include recommendations for how full
                    integration of efforts can be achieved; and
                        (D) 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.
                (3) Report.--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.
        (d) Field-Based Project Grants or Cooperative Agreements.--
                (1) In general.--The Administrator shall--
                        (A) 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
                        (B) develop a project approval process to ensure
                    full integration of efforts.
                (2) Requirements of eligible organizations.--
                        (A) Application.--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.
                        (B) Completion requirement.--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--
                                (i) 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
                                (ii) to provide to the Administrator the
                            data collected under clause (i).
                (3) Requirements of administrator.--
                        (A) Project diversity.--
                                (i) In general.--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--
                                        (I) areas most prone to repeated
                                    crises;
                                        (II) areas with effective existing
                                    resilience programs that can be scaled;
                                    and
                                        (III) areas in all countries of the
                                    Horn of Africa.
                                (ii) Priority.--In selecting proposals for
                            field-based projects under clause (i), the
                            Administrator shall ensure that the selected
                            proposals are for field-based projects that--
                                        (I) effectively integrate emergency
                                    and long-term development programs to
                                    improve sustainability;
                                        (II) demonstrate the potential to
                                    reduce the need for future emergency
                                    assistance; and
                                        (III) build targeted productive
                                    safety nets, in coordination with host
                                    country governments, through food for
                                    work, cash for work, and other proven
                                    program methodologies.
                        (B) Availability.--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).
        (e) Regulations; Guidelines.--
                (1) In general.--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.
                (2) Requirements.--In promulgating regulations or issuing
            guidelines under paragraph (1), the Administrator shall--
                        (A) take into consideration the results of the
                    study described in subsection (c); and
                        (B) provide an opportunity for public review and
                    comment.
        (f) Report.--
                (1) In general.--Not later than November 1, 2016, the
            Administrator shall submit to the appropriate committees of
            Congress a report that--
                        (A) addresses each factor described in paragraph
                    (2); and
                        (B) is conducted in accordance with this section.
                (2) Required factors.--The report shall include baseline
            and end-of-project data that measures--
                        (A) 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;
                        (B) household ownership of and access to productive
                    assets, including at a minimum land, livestock, homes,
                    equipment, and other materials assets needed for income
                    generation;
                        (C) household incomes, including informal sources
                    of employment; and
                        (D) the productive assets of women using the
                    Women's Empowerment in Agriculture Index.
                (3) Public access to records and reports.--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.
        (g) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $10,000,000 for each of fiscal
    years 2014 through 2018.

    SEC. 3209. UNDER SECRETARY OF AGRICULTURE FOR TRADE AND FOREIGN
                  AGRICULTURAL AFFAIRS.

        (a) Definition of Agriculture Committees and Subcommittees.--In
    this section, the term ``agriculture committees and subcommittees''
    means--
                (1) the Committee on Agriculture of the House of
            Representatives;
                (2) the Committee on Agriculture, Nutrition, and Forestry
            of the Senate; and
                (3) 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.
        (b) Proposal.--
                (1) In general.--The Secretary, in consultation with the
            agriculture committees and subcommittees, shall propose a
            reorganization of international trade functions for imports and
            exports of the Department of Agriculture.
                (2) Considerations.--In producing the proposal under this
            section, the Secretary shall--
                        (A) in recognition of the importance of
                    agricultural exports to the farm economy and the
                    economy as a whole, include a plan for the
                    establishment of an Under Secretary of Agriculture for
                    Trade and Foreign Agricultural Affairs;
                        (B) take into consideration how the Under Secretary
                    described in subparagraph (A) 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
                        (C) take into consideration all implications of a
                    reorganization described in paragraph (1) on domestic
                    programs and operations of the Department of
                    Agriculture.
                (3) Report.--Not later than 180 days after the date of
            enactment of this Act and before the reorganization described
            in paragraph (1) can take effect, the Secretary shall submit to
            the agriculture committees and subcommittees a report that--
                        (A) includes the results of the proposal under this
                    section; and
                        (B) provides a notice of the reorganization plan.
                (4) Implementation.--Not later than 1 year after the date
            of the submission of the report under paragraph (3), the
            Secretary shall implement a reorganization of international
            trade functions for imports and exports of the Department of
            Agriculture, including the establishment of an Under Secretary
            of Agriculture for Trade and Foreign Agricultural Affairs.
        (c) Confirmation Required.--The position of Under Secretary of
    Agriculture for Trade and Foreign Agricultural Affairs established
    under subsection (b)(2)(A) shall be appointed by the President, by and
    with the advice and consent of the Senate.

                              TITLE IV--NUTRITION

             Subtitle A--Supplemental Nutrition Assistance Program

    SEC. 4001. ACCESS TO GROCERY DELIVERY FOR HOMEBOUND SENIORS AND
                  INDIVIDUALS WITH DISABILITIES ELIGIBLE FOR SUPPLEMENTAL
                  NUTRITION ASSISTANCE BENEFITS.

        (a) In General.--Section 3(p) of the Food and Nutrition Act of 2008
    (7 U.S.C. 2012(p)) is amended--
                (1) in paragraph (3), by striking ``and'' at the end;
                (2) in paragraph (4), by striking the period at the end and
            inserting ``; and''; and
                (3) by inserting after paragraph (4) the following:
                ``(5) a public or private nonprofit food purchasing and
            delivery service that--
                        ``(A) purchases food for, and delivers the food to,
                    individuals who are--
                                ``(i) unable to shop for food; and
                                ``(ii)(I) not less than 60 years of age; or
                                ``(II) individuals with disabilities;
                        ``(B) clearly notifies the participating household
                    at the time the household places a food order--
                                ``(i) of any delivery fee associated with
                            the food purchase and delivery provided to the
                            household by the service; and
                                ``(ii) that a delivery fee cannot be paid
                            with benefits provided under the supplemental
                            nutrition assistance program; and
                        ``(C) sells food purchased for the household at the
                    price paid by the service for the food without any
                    additional cost markup.''.
        (b) Issuance of Regulations.--Not later than 1 year after the date
    of enactment of this Act, the Secretary shall issue regulations that--
                (1) establish criteria to identify a food purchasing and
            delivery service described in section 3(p)(5) of the Food and
            Nutrition Act of 2008 (as added by subsection (a)(3)); and
                (2) establish procedures to ensure that the service--
                        (A) does not charge more for a food item than the
                    price paid by the service for the food item;
                        (B) offers food delivery service at no or low cost
                    to households under that Act;
                        (C) ensures that benefits provided under the
                    supplemental nutrition assistance program are used only
                    to purchase food, as defined in section 3 of that Act
                    (7 U.S.C. 2012);
                        (D) limits the purchase of food, and the delivery
                    of the food, to households eligible to receive services
                    described in section 3(p)(5) of that Act (as added by
                    subsection (a)(3));
                        (E) has established adequate safeguards against
                    fraudulent activities, including unauthorized use of
                    electronic benefit cards issued under that Act; and
                        (F) such other requirements as the Secretary
                    considers appropriate.
        (c) Limitation.--Before the issuance of regulations under
    subsection (b), the Secretary may not approve more than 20 food
    purchasing and delivery services described in section 3(p)(5) of the
    Food and Nutrition Act of 2008 (as added by subsection (a)(3)) to
    participate as retail food stores under the supplemental nutrition
    assistance program.
        (d) Effective Date.--This section and the amendments made by this
    section take effect on the date that is 30 days after the date of the
    enactment of this Act.

    SEC. 4002. FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.

        (a) In General.--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 ``2012'' and
    inserting ``2018''.
        (b) Feasability Study for Indian Tribes.--Section 17 of the Food
    and Nutrition Act of 2008 (7 U.S.C. 2026) is amended by inserting at
    the end the following:
        ``(l) Feasibility Study for Indian Tribes.--
                ``(1) In general.--The Secretary shall conduct a study to
            determine the feasibility of a tribal demonstration project for
            tribes, in lieu of State agencies or other administrating
            entities, to administer Federal food assistance programs,
            services, functions, and activities (or portions thereof).
                ``(2) Considerations.--In conducting the study, the
            Secretary shall consider--
                        ``(A) the probable effects on specific programs and
                    program beneficiaries of such a demonstration project;
                        ``(B) statutory, regulatory, or other impediments
                    to implementation of such a demonstration project;
                        ``(C) strategies for implementing such a
                    demonstration project;
                        ``(D) probable costs or savings associated with
                    such a demonstration project;
                        ``(E) methods to assure quality and accountability
                    in such a demonstration project; and
                        ``(F) such other issues that may be determined by
                    the Secretary or developed through consultation
                    pursuant to paragraph (4).
                ``(3) Report.--Not later than 18 months after the date of
            the 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 contains--
                        ``(A) the results of the study under this
                    subsection;
                        ``(B) a list of programs, services, functions, and
                    activities (or portions thereof) within each agency
                    that would be feasible to include in a tribal
                    demonstration project;
                        ``(C) a list of programs, services, functions, and
                    activities (or portions thereof) included in the list
                    described in subparagraph (B) that could be included in
                    a tribal demonstration project without amending
                    existing law or without waiving regulations that the
                    Secretary may not waive; and
                        ``(D) a list of legislative actions required in
                    order to include those programs, services, functions,
                    and activities (or portions thereof) included in the
                    list described in subparagraph (B) but not included in
                    the list described in subparagraph (C) in a tribal
                    demonstration project.
                ``(4) Consultation with indian tribes.--
                        ``(A) In general.--Prior to consultation, the
                    Secretary shall consult with Indian tribes to determine
                    a protocol for consultation.
                        ``(B) Requirements.--The protocol shall require, at
                    a minimum, that--
                                ``(i) the government-to-government
                            relationship with Indian tribes forms the basis
                            for the consultation process;
                                ``(ii) the Indian tribes and the Secretary
                            jointly conduct the consultations required by
                            this paragraph; and
                                ``(iii) the consultation process allows for
                            separate and direct recommendations from the
                            Indian tribes and other entities referenced in
                            this subsection.''.
        (c) Traditional and Locally-grown Food.--Section 4(b)(6) of the
    Food and Nutrition Act of 2008 (7 U.S.C. 2013(b)(6)) is amended--
                (1) by redesignating subparagraph (F) as subparagraph (G);
            and
                (2) by inserting after subparagraph (E) the following:
                        ``(F) Traditional and locally-grown food.--A tribe
                    that is authorized to administer the distribution
                    described in paragraph (1) shall have the option to use
                    5 percent of the program funding of the tribe to
                    promote local purchase of traditional and locally-grown
                    food to be used in the food package of the tribe by
                    purchasing traditional and locally-grown foods from
                    local Native American farmers, ranchers, and
                    producers.''.

    SEC. 4003. STANDARD UTILITY ALLOWANCES BASED ON THE RECEIPT OF ENERGY
                  ASSISTANCE PAYMENTS.

        (a) Standard Utility Allowances in the Supplemental Nutrition
    Assistance Program.--Section 5(e)(6)(C) of the Food and Nutrition Act
    of 2008 (7 U.S.C. 2014(e)(6)(C)) is amended--
                (1) in clause (i), by inserting ``, subject to clause
            (iv)'' after ``Secretary''; and
                (2) in clause (iv), by striking subclause (I) and inserting
            the following:
                                        ``(I) In general.--Subject to
                                    subclause (II), if a State agency
                                    elects to use a standard utility
                                    allowance that reflects heating and
                                    cooling costs, the standard utility
                                    allowance shall be made available to
                                    households that have received a
                                    payment, or on behalf of which a
                                    payment has been made, under the Low-
                                    Income Home Energy Assistance Act of
                                    1981 (42 U.S.C. 8621 et seq.) or other
                                    similar energy assistance program, if
                                    in the current month or during the
                                    immediately preceding 12 months, the
                                    household either has received a
                                    payment, or a payment has been made on
                                    behalf of the household, that is
                                    greater than $10 annually, as
                                    determined by the Secretary.''.
        (b) Conforming Amendment.--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 ``, except that, for
    purposes of the supplemental nutrition assistance program established
    under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), such
    payments or allowances were greater than $10 annually, consistent with
    section 5(e)(6)(C)(iv)(I) of that Act (7 U.S.C. 2014(e)(6)(C)(iv)(I)),
    as determined by the Secretary of Agriculture.''.
        (c) Effective and Implementation Date.--
                (1) In general.--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.
                (2) State option to delay implementation for current
            recipients.--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.

    SEC. 4004. ELIGIBILITY DISQUALIFICATIONS.

        Section 6(e)(3)(B) of Food and Nutrition Act of 2008 (7 U.S.C.
    2015(e)(3)(B)) is amended by striking ``section'' and inserting the
    following: ``section, subject to the condition that the course or
    program of study--
                                ``(i) 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
                                ``(ii) is limited to remedial courses,
                            basic adult education, literacy, or English as
                            a second language;''.

    SEC. 4005. ENDING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS
                  FOR LOTTERY OR GAMBLING WINNERS.

        (a) In General.--Section 6 of the Food and Nutrition Act of 2008 (7
    U.S.C. 2015) is amended by adding at the end the following:
        ``(r) Ineligibility for Benefits Due to Receipt of Substantial
    Lottery or Gambling Winnings.--
                ``(1) In general.--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.
                ``(2) Duration of ineligibility.--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.
                ``(3) Agreements.--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.''.
        (b) Conforming Amendments.--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 ``sections 6(b), 6(d)(2), and 6(g)'' and inserting
    ``subsections (b), (d)(2), (g), and (r) of section 6''.

    SEC. 4006. RETAIL FOOD STORES.

        (a) Definition of Retail Food Store.--Subsection (o)(1)(A) of
    section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) (as
    redesignated by section 4018(a)(4)) is amended by striking ``at least
    2'' and inserting ``at least 3''.
        (b) Alternative Benefit Delivery.--Section 7(f) of the Food and
    Nutrition Act of 2008 (7 U.S.C. 2016(f)) is amended--
                (1) by striking paragraph (2) and inserting the following:
                ``(2) Imposition of costs.--
                        ``(A) In general.--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.
                        ``(B) Exemptions.--The Secretary may exempt from
                    subparagraph (A)--
                                ``(i) farmers' markets and other direct-to-
                            consumer 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
                                ``(ii) establishments described in
                            paragraphs (3), (4), and (9) of section 3(k),
                            other than restaurants participating in a State
                            option restaurant program.
                        ``(C) Interchange fees.--Nothing in this paragraph
                    permits the charging of fees relating to the redemption
                    of supplemental nutrition assistance program benefits,
                    in accordance with subsection (h)(13).''; and
                (2) by adding at the end the following:
                ``(4) Termination of manual vouchers.--
                        ``(A) In general.--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.
                        ``(B) Exemptions.--The Secretary may exempt
                    categories of retail food stores or individual retail
                    food stores from subparagraph (A) based on criteria
                    established by the Secretary.
                ``(5) Unique identification number required.--
                        ``(A) In general.--To enhance the anti-fraud
                    protections of the program, 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.
                        ``(B) Regulations.--
                                ``(i) In general.--Not earlier than 2 years
                            after the date of enactment of this paragraph,
                            the Secretary shall issue proposed regulations
                            to carry out this paragraph.
                                ``(ii) Commercial practices.--In issuing
                            regulations to carry out this paragraph, the
                            Secretary shall consider existing commercial
                            practices for other point-of-sale debit
                            transactions.''.
        (c) Electronic Benefit Transfers.--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 ``is operational--'' and all that follows through ``(ii) in
    the case of other participating stores,'' and inserting ``is
    operational''.
        (d) Approval of Retail Food Stores and Wholesale Food Concerns.--
    Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) is
    amended--
                (1) in the second sentence of subsection (a)(1)--
                        (A) in subparagraph (A), by inserting ``, including
                    the depth of stock, variety of staple food items, and
                    the sale of excepted items described in 3(k)(1)'' after
                    ``applicant''; and
                        (B) by striking ``; and (C)'' and inserting ``; (C)
                    whether the applicant is located in an area with
                    significantly limited access to food; and (D)''; and
                (2) by adding at the end the following:
        ``(g) EBT Service Requirement.--An approved retail food store shall
    provide adequate EBT service as described in section 7(h)(3)(B).''.

    SEC. 4007. IMPROVING SECURITY OF FOOD ASSISTANCE.

        Section 7(h)(8) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2016(h)(8)) is amended--
                (1) by striking the paragraph heading and inserting
            ``Replacement of cards.--'';
                (2) by striking ``A State'' and inserting the following:
                        ``(A) Fees.--A State''; and
                (3) by adding after subparagraph (A) (as so designated by
            paragraph (2)) the following:
                        ``(B) Purposeful loss of cards.--
                                ``(i) In general.--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.
                                ``(ii) Requirements.--The terms and
                            conditions established by the Secretary shall
                            provide that--
                                        ``(I) the household be given the
                                    opportunity to provide the requested
                                    explanation and meet the requirements
                                    under this paragraph promptly;
                                        ``(II) 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
                                        ``(III) 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.
                        ``(C) Protecting vulnerable persons.--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.
                        ``(D) Effect on eligibility.--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.''.

    SEC. 4008. TECHNOLOGY MODERNIZATION FOR RETAIL FOOD STORES.

        (a) Mobile Technologies.--Section 7(h) of the Food and Nutrition
    Act of 2008 (7 U.S.C. 2016(h)) (as amended by section 4018(e)) is
    amended by adding at the end the following:
                ``(14) Mobile technologies.--
                        ``(A) In general.--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--
                                ``(i) establish recipient protections
                            regarding privacy, ease of use, access, and
                            support similar to the protections provided for
                            transactions made in retail food stores;
                                ``(ii) bear the costs of obtaining,
                            installing, and maintaining mobile
                            technologies, including mechanisms needed to
                            process EBT cards and transaction fees;
                                ``(iii) 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;
                                ``(iv) provide adequate documentation for
                            each authorized transaction, as determined by
                            the Secretary; and
                                ``(v) meet other criteria as established by
                            the Secretary.
                        ``(B) Demonstration project on acceptance of
                    benefits of mobile transactions.--
                                ``(i) In general.--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.
                                ``(ii) Demonstration projects.--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--
                                        ``(I) a description of the
                                    technology;
                                        ``(II) the manner by which the
                                    retail food store will provide proof of
                                    the transaction to households;
                                        ``(III) 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
                                        ``(IV) such other criteria as the
                                    Secretary may require.
                                ``(iii) Date of completion.--The
                            demonstration projects under this subparagraph
                            shall be completed and final reports submitted
                            to the Secretary by not later than July 1,
                            2015.
                        ``(C) Report to congress.--The Secretary shall--
                                ``(i) 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
                                ``(ii) 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.''.
        (b) Acceptance of Benefits Through On-Line Transactions.--
                (1) In general.--Section 7 of the Food and Nutrition Act of
            2008 (7 U.S.C. 2016) is amended by adding at the end the
            following:
        ``(k) Option To Accept Program Benefits Through On-Line
    Transactions.--
                ``(1) In general.--Subject to paragraph (4), the Secretary
            shall approve retail food stores to accept benefits from
            recipients of supplemental nutrition assistance through on-line
            transactions.
                ``(2) Requirements to accept benefits.--A retail food store
            seeking to accept benefits from recipients of supplemental
            nutrition assistance through on-line transactions shall--
                        ``(A) establish recipient protections regarding
                    privacy, ease of use, access, and support similar to
                    the protections provided for transactions made in
                    retail food stores;
                        ``(B) ensure benefits are not used to pay delivery,
                    ordering, convenience, or other fees or charges;
                        ``(C) clearly notify participating households at
                    the time a food order is placed--
                                ``(i) of any delivery, ordering,
                            convenience, or other fee or charge associated
                            with the food purchase; and
                                ``(ii) that any such fee cannot be paid
                            with benefits provided under this Act;
                        ``(D) 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
                        ``(E) meet other criteria as established by the
                    Secretary.
                ``(3) State agency action.--Each State agency shall ensure
            that recipients of supplemental nutrition assistance can use
            benefits on-line as described in this subsection as
            appropriate.
                ``(4) Demonstration project on acceptance of benefits
            through on-line transactions.--
                        ``(A) In general.--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.
                        ``(B) Demonstration projects.--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--
                                ``(i) a method of ensuring that benefits
                            may be used to purchase only eligible items
                            under this Act;
                                ``(ii) a description of the method of
                            educating participant households about the
                            availability and operation of on-line
                            purchasing;
                                ``(iii) adequate testing of the on-line
                            purchasing option prior to implementation;
                                ``(iv) 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;
                                ``(v) reports on progress, challenges, and
                            results, as determined by the Secretary; and
                                ``(vi) such other criteria, including
                            security criteria, as established by the
                            Secretary.
                        ``(C) Date of completion.--The demonstration
                    projects under this paragraph shall be completed and
                    final reports submitted to the Secretary by not later
                    than July 1, 2015.
                ``(5) Report to congress.--The Secretary shall--
                        ``(A) 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
                        ``(B) 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.''.
                (2) Conforming amendments.--
                        (A) Section 7(b) of the Food and Nutrition Act of
                    2008 (7 U.S.C. 2016(b)) is amended by striking
                    ``purchase food in retail food stores'' and inserting
                    ``purchase food from retail food stores''.
                        (B) Section 10 of the Food and Nutrition Act of
                    2008 (7 U.S.C. 2019) is amended in the first sentence
                    by inserting ``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,''
                    after ``food so purchased,''.
        (c) Savings Clause.--Nothing in this section or an amendment made
    by this section alter any requirements of the Food and Nutrition Act of
    2008 (7 U.S.C. 2011 et seq.) unless specifically authorized in this
    section or an amendment made by this section.

    SEC. 4009. USE OF BENEFITS FOR PURCHASE OF COMMUNITY-SUPPORTED
                  AGRICULTURE SHARE.

        Subsection (o)(4) of section 3 of the Food and Nutrition Act of
    2008 (7 U.S.C. 2012) (as redesignated by section 4018(a)(4)) is amended
    by inserting ``, or agricultural producers who market agricultural
    products directly to consumers'' after ``such food''.

    SEC. 4010. RESTAURANT MEALS PROGRAM.

        (a) In General.--Section 11(e) of the Food and Nutrition Act of
    2008 (7 U.S.C. 2020(e)) is amended--
                (1) in paragraph (22), by striking ``and'' at the end;
                (2) in paragraph (23), by striking the period at the end of
            subparagraph (C) and inserting ``; and''; and
                (3) by adding at the end the following:
                ``(24) 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)--
                        ``(A) the plans of the State agency for operating
                    the program, including--
                                ``(i) documentation of a need that eligible
                            homeless, elderly, and disabled clients are
                            underserved in a particular geographic area;
                                ``(ii) 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
                                ``(iii) 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
                        ``(B) a report by the State agency to the Secretary
                    annually, the schedule of which shall be established by
                    the Secretary, that includes--
                                ``(i) 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
                                ``(ii) an assessment of whether the program
                            is meeting an established need, as documented
                            under subparagraph (A)(i).''.
        (b) Approval of Retail Food Stores and Wholesale Food Concerns.--
    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:
        ``(h) Private Establishments.--
                ``(1) In general.--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).
                ``(2) Existing contracts.--
                        ``(A) In general.--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).
                        ``(B) Justification.--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.
                ``(3) Report to congress.--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.''.
        (c) Conforming Amendments.--Section 3(k) of the Food and Nutrition
    Act of 2008 (7 U.S.C. 2012(k)) is amended by inserting ``subject to
    section 9(h)'' after ``concessional prices'' each place it appears.

    SEC. 4011. QUALITY CONTROL STANDARDS.

        (a) In General.--Section 16(c)(1)(D)(i) of the Food and Nutrition
    Act of 2008 (7 U.S.C. 2025(c)(1)(D)(i)) is amended by striking
    subclause (I).
        (b) Conforming Amendments.--
                (1) Section 13(a)(1) of the Food and Nutrition Act of 2008
            (7 U.S.C. 2022(a)(1)) is amended in the first sentence by
            striking ``section 16(c)(1)(D)(i)(III)'' and inserting
            ``section 16(c)(1)(D)(i)(II)''.
                (2) Section 16(c)(1) of the Food and Nutrition Act of 2008
            (7 U.S.C. 2025(c)(1)) is amended--
                        (A) in subparagraph (D)(i)--
                                (i) by redesignating subclauses (II)
                            through (IV) as subclauses (I) through (III),
                            respectively; and
                                (ii) in subclause (III) (as so
                            redesignated), by striking ``through (III)''
                            and inserting ``and (II)'';
                        (B) in subparagraph (E)(i), by striking
                    ``(D)(i)(III)'' and inserting ``(D)(i)(II)''; and
                        (C) in subparagraph (F), by striking ``(D)(i)(II)''
                    each place it appears and inserting ``(D)(i)(I)''.

    SEC. 4012. PERFORMANCE BONUS PAYMENTS.

        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:
                ``(5) Use of performance bonus payments.--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--
                        ``(A) technology;
                        ``(B) improvements in administration and
                    distribution; and
                        ``(C) actions to prevent fraud, waste, and
                    abuse.''.

    SEC. 4013. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.

        Section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2025(h)(1)(A)) is amended by striking ``section 18(a)(1), $90,000,000''
    and all that follows through the end of the subparagraph and inserting
    ``section 18(a)(1)--
                                ``(i) for each of fiscal years 2014 through
                            2017, $90,000,000; and
                                ``(ii) for fiscal year 2018 and each fiscal
                            year thereafter, $80,000,000.''.

    SEC. 4014. AUTHORIZATION OF APPROPRIATIONS.

        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 ``2012'' and
    inserting ``2018''.

    SEC. 4015. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

        Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is
    amended--
                (1) in subsection (a)--
                        (A) in paragraph (1)(B)--
                                (i) in clause (i)--
                                        (I) in subclause (I), by inserting
                                    after ``individuals'' the following:
                                    ``through food distribution, community
                                    outreach to assist in participation in
                                    Federally assisted nutrition programs,
                                    or improving access to food as part of
                                    a comprehensive service;''; and
                                        (II) in subclause (III), by
                                    inserting ``food access,'' after
                                    ``food,''; and
                                (ii) in clause (ii), by striking subclause
                            (I) and inserting the following:
                                        ``(I) equipment necessary for the
                                    efficient operation of a project;'';
                                    and
                        (B) by striking paragraph (2) and inserting the
                    following:
                ``(2) Hunger-free communities goal.--The term `hunger-free
            communities goal' means any of the 14 goals described in House
            Concurrent Resolution 302, 102nd Congress, agreed to October 5,
            1992.'';
                (2) in subsection (c)--
                        (A) in the matter preceding paragraph (1), by
                    inserting ``public food program service provider or a''
                    before ``private'';
                        (B) in paragraph (1)--
                                (i) in subparagraph (A), by striking ``or''
                            after the semicolon at the end;
                                (ii) in subparagraph (B), by inserting
                            ``or'' after the semicolon at the end; and
                                (iii) by adding at the end the following:
                        ``(C) efforts to reduce food insecurity in the
                    community, including food distribution, improving
                    access to services, or coordinating services and
                    programs;'';
                        (C) in paragraph (2), by striking ``and'' after the
                    semicolon at the end;
                        (D) in paragraph (3), by striking the period at the
                    end and inserting ``; and''; and
                        (E) by adding at the end the following:
                ``(4) collaborate with 1 or more local partner
            organizations to achieve at least 1 hunger-free communities
            goal.'';
                (3) in subsection (d)--
                        (A) in paragraph (3), by striking ``or'' after the
                    semicolon at the end;
                        (B) in paragraph (4), by striking the period at the
                    end and inserting ``; or''; and
                        (C) by adding at the end the following:
                ``(5) develop new resources and strategies to help reduce
            food insecurity in the community and prevent food insecurity in
            the future by--
                        ``(A) developing creative food resources;
                        ``(B) coordinating food services with park and
                    recreation programs and other community-based outlets
                    to reduce barriers to access; or
                        ``(C) creating nutrition education programs for at-
                    risk populations to enhance food-purchasing and food-
                    preparation skills and to heighten awareness of the
                    connection between diet and health.'';
                (4) in subsection (f)(2), by striking ``3 years'' and
            inserting ``5 years''; and
                (5) by striking subsections (h) and (i) and inserting the
            following:
        ``(h) Reports to Congress.--Not later than September 30, 2014, and
    each year thereafter, the Secretary shall submit to Congress a report
    that describes each grant made under this section, including--
                ``(1) a description of any activity funded;
                ``(2) the degree of success of each activity funded in
            achieving hunger-free community goals; and
                ``(3) the degree of success in improving the long-term
            capacity of a community to address food and agriculture
            problems related to hunger or access to healthy food.''.

    SEC. 4016. EMERGENCY FOOD ASSISTANCE.

        (a) Purchase of Commodities.--Section 27(a) of the Food and
    Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended--
                (1) in paragraph (1), by striking ``2008 through 2012'' and
            inserting ``2014 through 2018'';
                (2) by striking paragraph (2) and inserting the following:
                ``(2) Amounts.--The Secretary shall use to carry out
            paragraph (1)--
                        ``(A) for fiscal year 2013, $265,750,000; and
                        ``(B) 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, 2013, and June 30 of the immediately preceding
                    fiscal year, and subsequently increased by--
                                ``(i) for fiscal year 2014, $22,000,000;
                                ``(ii) for fiscal year 2015, $18,000,000;
                                ``(iii) for fiscal year 2016, $10,000,000;
                            and
                                ``(iv) for fiscal year 2017, $4,000,000.'';
                            and
                (3) by adding at the end the following:
                ``(3) Funds availability.--For purposes of the funds
            described in this subsection, the Secretary shall--
                        ``(A) make the funds available for 2 fiscal years;
                    and
                        ``(B) allow States to carry over unexpended
                    balances to the next fiscal year pursuant to such terms
                    and conditions as are determined by the Secretary.''.
        (b) Emergency Food Program Infrastructure Grants.--Section 209(d)
    of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7511a(d)) is
    amended by striking ``2012'' and inserting ``2018''.

    SEC. 4017. NUTRITION EDUCATION.

        Section 28(b) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2036a(b)) is amended by inserting ``and physical activity'' after
    ``healthy food choices''.

    SEC. 4018. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.

        The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is
    amended by adding at the end the following:

    ``SEC. 29. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.

        ``(a) Purpose.--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.
        ``(b) Use of Funds.--
                ``(1) In general.--Additional funds are provided under this
            section to supplement the retail food store and recipient
            integrity activities of the Department.
                ``(2) Information technologies.--The Secretary shall use an
            appropriate amount of the funds provided under this section to
            employ information technologies known as data mining and data
            warehousing and other available information technologies to
            administer the supplemental nutrition assistance program and
            enforce regulations promulgated under section 4(c).
        ``(c) Funding.--
                ``(1) Authorization of appropriations.--There is authorized
            to be appropriated to carry out this section $12,000,000 for
            each of fiscal years 2014 through 2018.
                ``(2) Mandatory funding.--
                        ``(A) In general.--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
                    2014, to remain available until expended.
                        ``(B) Receipt and acceptance.--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.
                        ``(C) Maintenance of funding.--The funding provided
                    under subparagraph (A) shall supplement (and not
                    supplant) other Federal funding for programs carried
                    out under this Act.''.

    SEC. 4019. TECHNICAL AND CONFORMING AMENDMENTS.

        (a) Section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012)
    is amended--
                (1) in subsection (g), by striking ``coupon,'' and
            inserting ``coupon'';
                (2) in subsection (k)(7), by striking ``or are'' and
            inserting ``and'';
                (3) by striking subsection (l);
                (4) by redesignating subsections (m) through (t) as
            subsections (l) through (s), respectively; and
                (5) by inserting after subsection (s) (as so redesignated)
            the following:
        ``(t) `Supplemental nutrition assistance program' means the program
    operated pursuant to this Act.''.
        (b) 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 ``benefits'' and
    inserting ``Benefits''.
        (c) Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014)
    is amended--
                (1) in the last sentence of subsection (i)(2)(D), by
            striking ``section 13(b)(2)'' and inserting ``section 13(b)'';
            and
                (2) in subsection (k)(4)(A), by striking ``paragraph
            (2)(H)'' and inserting ``paragraph (2)(G)''.
        (d) 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.
        (e) 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).
        (f) Section 9(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2018(a)) is amended by indenting paragraph (3) appropriately.
        (g) Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C.
    2021) is amended--
                (1) in subsection (b)(3)(C), by striking ``civil money
            penalties'' and inserting ``civil penalties''; and
                (2) in subsection (g)(1), by striking ``(7 U.S.C. 1786)''
            and inserting ``(42 U.S.C. 1786)''.
        (h) 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 ``an
    benefit'' and inserting ``a benefit''.
        (i) 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
    ``as amended.''.
        (j) 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 ``sections 7(f)''
    and inserting ``section 7(f)''.
        (k) 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 ``Food benefits'' and inserting ``Benefits''.
        (l) 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 ``subsection'' and
    inserting ``subsections''.
        (m) Section 27(a)(1) of the Food and Nutrition Act of 2008 (7
    U.S.C. 2036(a)(1)) is amended by striking ``(Public Law 98-8; 7 U.S.C.
    612c note)'' and inserting ``(7 U.S.C. 7515)''.
        (n) Section 509 of the Older Americans Act of 1965 (42 U.S.C.
    3056g) is amended in the section heading by striking ``food stamp
    programs'' and inserting ``supplemental nutrition assistance
    programs''.
        (o) 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
    ``531'' and inserting ``454''.

    SEC. 4020. ELIGIBILITY DISQUALIFICATIONS FOR CERTAIN CONVICTED FELONS.

        Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015) (as
    amended by section 4004) is amended by adding at the end the following:
        ``(s) Disqualification for Certain Convicted Felons.--
                ``(1) In general.--An individual shall not be eligible for
            benefits under this Act if the individual is convicted of--
                        ``(A) aggravated sexual abuse under section 2241 of
                    title 18, United States Code;
                        ``(B) murder under section 1111 of title 18, United
                    States Code;
                        ``(C) an offense under chapter 110 of title 18,
                    United States Code;
                        ``(D) a Federal or State offense involving sexual
                    assault, as defined in 40002(a) of the Violence Against
                    Women Act of 1994 (42 U.S.C. 13925(a)); or
                        ``(E) an offense under State law determined by the
                    Attorney General to be substantially similar to an
                    offense described in subparagraph (A), (B), or (C).
                ``(2) Effects on assistance and benefits for others.--The
            amount of benefits otherwise required to be provided to an
            eligible household under this Act shall be determined by
            considering the individual to whom paragraph (1) applies not to
            be a member of such household, except that the income and
            resources of the individual shall be considered to be income
            and resources of the household.
                ``(3) Enforcement.--Each State shall require each
            individual applying for benefits under this Act, during the
            application process, to state, in writing, whether the
            individual, or any member of the household of the individual,
            has been convicted of a crime described in paragraph (1).''.

                  Subtitle B--Commodity Distribution Programs

    SEC. 4101. COMMODITY DISTRIBUTION PROGRAM.

        Section 4(a) of the Agriculture and Consumer Protection Act of 1973
    (7 U.S.C. 612c note; Public Law 93-86) is amended in the first sentence
    by striking ``2012'' and inserting ``2018''.

    SEC. 4102. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

        Section 5 of the Agriculture and Consumer Protection Act of 1973 (7
    U.S.C. 612c note; Public Law 93-86) is amended--
                (1) in paragraphs (1) and (2)(B) of subsection (a), by
            striking ``2012'' each place it appears and inserting ``2018'';
                (2) in the first sentence of subsection (d)(2), by striking
            ``2012'' and inserting ``2018'';
                (3) by striking subsection (g) and inserting the following:
        ``(g) Eligibility.--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.''; and
                (4) by adding at the end the following:
        ``(m) Phase-Out.--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.''.

    SEC. 4103. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL NUTRITION
                  PROJECTS.

        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
    ``2012'' and inserting ``2018''.

    SEC. 4104. PROCESSING OF COMMODITIES.

        (a) In General.--Section 17 of the Commodity Distribution Reform
    Act and WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-237)
    is amended--
                (1) in the section heading, by inserting ``and processing''
            after ``donations''; and
                (2) by adding at the end the following:
        ``(c) Processing.--
                ``(1) In general.--For any program included under
            subsection (b), the Secretary may, notwithstanding any other
            provision of Federal or State law relating to the procurement
            of goods and services--
                        ``(A) retain title to commodities delivered to a
                    processor, on behalf of a State (including a State
                    distributing agency and a recipient agency), until such
                    time as end products containing the commodities, or
                    similar commodities as approved by the Secretary, are
                    delivered to a State distributing agency or to a
                    recipient agency; and
                        ``(B) promulgate regulations to ensure
                    accountability for commodities provided to a processor
                    for processing into end products, and to facilitate
                    processing of commodities into end products for use by
                    recipient agencies.
                ``(2) Regulations.--The regulations described in paragraph
            (1)(B) may provide that--
                        ``(A) a processor that receives commodities for
                    processing into end products, or provides a service
                    with respect to the commodities or end products, in
                    accordance with the agreement of the processor with a
                    State distributing agency or a recipient agency,
                    provide to the Secretary a bond or other means of
                    financial assurance to protect the value of the
                    commodities; and
                        ``(B) in the event a processor fails to deliver to
                    a State distributing agency or a recipient agency an
                    end product in conformance with the processing
                    agreement entered into under this Act, the Secretary--
                                ``(i) take action with respect to the bond
                            or other means of financial assurance pursuant
                            to regulations promulgated under this
                            subsection; and
                                ``(ii) distribute any proceeds obtained by
                            the Secretary to 1 or more State distributing
                            agencies and recipient agencies, as determined
                            appropriate by the Secretary.''.
        (b) Definitions.--Section 18 of the Commodity Distribution Reform
    Act and WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-237)
    is amended by striking paragraphs (1) and (2) and inserting the
    following:
                ``(1) Commodities.--The term `commodities' means
            agricultural commodities and their products that are donated by
            the Secretary for use by recipient agencies.
                ``(2) End product.--The term `end product' means a food
            product that contains processed commodities.''.
        (c) Technical and Conforming Amendments.--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--
                (1) in subsection (a)--
                        (A) in paragraph (2), by striking subparagraph (B)
                    and inserting the following:
                        ``(B) the program established under section 4(b) of
                    the Food and Nutrition Act of 2008 (7 U.S.C.
                    2013(b));''; and
                        (B) in paragraph (3)(D), by striking ``the
                    Committee on Education and Labor'' and inserting ``the
                    Committee on Education and the Workforce'';
                (2) in subsection (b)(1)(A)(ii), by striking ``section 32
            of the Agricultural Adjustment Act (7 U.S.C. 601 et seq.)'' and
            inserting ``section 32 of the Act of August 24, 1935 (7 U.S.C.
            612c)'';
                (3) in subsection (e)(1)(D)(iii), by striking subclause
            (II) and inserting the following:
                                        ``(II) the program established
                                    under section 4(b) of the Food and
                                    Nutrition Act of 2008 (7 U.S.C.
                                    2013(b));''; and
                (4) in subsection (k), by striking ``the Committee on
            Education and Labor'' and inserting ``the Committee on
            Education and the Workforce''.

                           Subtitle C--Miscellaneous

    SEC. 4201. PURCHASE OF FRESH FRUITS AND VEGETABLES FOR DISTRIBUTION TO
                  SCHOOLS AND SERVICE INSTITUTIONS.

        Section 10603(b) of the Farm Security and Rural Investment Act of
    2002 (7 U.S.C. 612c-4(b)) is amended by striking ``2012'' and inserting
    ``2018''.

    SEC. 4202. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

        Section 4402(a) of the Farm Security and Rural Investment Act of
    2002 (7 U.S.C. 3007(a)) is amended by striking ``2012'' and inserting
    ``2018''.

    SEC. 4203. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

        Section 4403 of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 3171 note; Public Law 107-171) is repealed.

    SEC. 4204. HUNGER-FREE COMMUNITIES.

        Section 4405 of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 7517) is amended to read as follows:

    ``SEC. 4405. HUNGER-FREE COMMUNITIES.

        ``(a) In General.--In this section:
                ``(1) Eligible entity.--The term `eligible entity' means--
                        ``(A) a nonprofit organization (including an
                    emergency feeding organization);
                        ``(B) an agricultural cooperative;
                        ``(C) a producer network or association;
                        ``(D) a community health organization;
                        ``(E) a public benefit corporation;
                        ``(F) an economic development corporation;
                        ``(G) a farmers' market;
                        ``(H) a community-supported agriculture program;
                        ``(I) a buying club;
                        ``(J) a retail food store participating in the
                    supplemental nutrition assistance program;
                        ``(K) a State, local, or tribal agency; and
                        ``(L) any other entity the Secretary designates.
                ``(2) Emergency feeding organization.--The term `emergency
            feeding organization' has the meaning given the term in section
            201A of the Emergency Food Assistance Act of 1983 (7 U.S.C.
            7501).
                ``(3) Supplemental nutrition assistance program.--The term
            `supplemental nutrition assistance program' means the
            supplemental nutrition assistance program established under the
            Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
        ``(b) Hunger-Free Communities Incentive Grants.--
                ``(1) Authorization.--
                        ``(A) In general.--In each of the years specified
                    in subsection (c), the Secretary shall make grants to
                    eligible entities in accordance with paragraph (2).
                        ``(B) Federal share.--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.
                        ``(C) Non-federal share.--
                                ``(i) In general.--The non-Federal share of
                            the cost of an activity under this subsection
                            may be provided--
                                        ``(I) in cash or in-kind
                                    contributions as determined by the
                                    Secretary, including facilities,
                                    equipment, or services; and
                                        ``(II) by a State or local
                                    government or a private source.
                                ``(ii) Limitation.--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.
                ``(2) Criteria.--
                        ``(A) In general.--For purposes of this subsection,
                    an eligible entity is a governmental agency or
                    nonprofit organization that--
                                ``(i) meets the application criteria set
                            forth by the Secretary; and
                                ``(ii) proposes a project that, at a
                            minimum--
                                        ``(I) has the support of the State
                                    agency;
                                        ``(II) 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;
                                        ``(III) agrees to participate in
                                    the evaluation described in paragraph
                                    (4);
                                        ``(IV) 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
                                        ``(V) includes effective and
                                    efficient technologies for benefit
                                    redemption systems that may be
                                    replicated in other for States and
                                    communities.
                        ``(B) Priority.--In awarding grants under this
                    section, the Secretary shall give priority to projects
                    that--
                                ``(i) maximize the share of funds used for
                            direct incentives to participants;
                                ``(ii) use direct-to-consumer sales
                            marketing;
                                ``(iii) demonstrate a track record of
                            designing and implementing successful nutrition
                            incentive programs that connect low-income
                            consumers and agricultural producers;
                                ``(iv) provide locally or regionally
                            produced fruits and vegetables;
                                ``(v) are located in underserved
                            communities; or
                                ``(vi) address other criteria as
                            established by the Secretary.
                ``(3) Applicability.--
                        ``(A) In general.--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.
                        ``(B) Prohibition on collection of sales taxes.--
                    Each State shall ensure that no State or local tax is
                    collected on a purchase of food under this subsection.
                        ``(C) No limitation on benefits.--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.
                        ``(D) Household allotment.--Assistance provided
                    under this subsection to households receiving benefits
                    under the supplemental nutrition assistance program
                    shall not--
                                ``(i) be considered part of the
                            supplemental nutrition assistance program
                            benefits of the household; or
                                ``(ii) 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).
                ``(4) Evaluation.--
                        ``(A) Independent evaluation.--The Secretary shall
                    provide for an independent evaluation of projects
                    selected under this subsection that measures the impact
                    of each project on--
                                ``(i) improving the nutrition and health
                            status of participating households receiving
                            incentives under this subsection; and
                                ``(ii) increasing fruit and vegetable
                            purchases in participating households.
                        ``(B) Requirement.--The independent evaluation
                    under subparagraph (A) shall use rigorous methodologies
                    capable of producing scientifically valid information
                    regarding the effectiveness of a project.
                        ``(C) Costs.--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.
        ``(c) Funding.--
                ``(1) Authorization of appropriations.--There is authorized
            to be appropriated to carry out subsection (b) $5,000,000 for
            each of fiscal years 2014 through 2018.
                ``(2) Mandatory funding.--Of the funds of the Commodity
            Credit Corporation, the Secretary shall use to carry out
            subsection (b)--
                        ``(A) $15,000,000 for fiscal year 2014;
                        ``(B) $20,000,000 for each of fiscal years 2015
                    through 2017; and
                        ``(C) $25,000,000 for fiscal year 2018.''.

    SEC. 4205. HEALTHY FOOD FINANCING INITIATIVE.

        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:

    ``SEC. 242. HEALTHY FOOD FINANCING INITIATIVE.

        ``(a) Purpose.--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.
        ``(b) Definitions.--In this section:
                ``(1) Community development financial institution.--The
            term `community development financial institution' 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).
                ``(2) Initiative.--The term `Initiative' means the Healthy
            Food Financing Initiative established under subsection (c)(1).
                ``(3) National fund manager.--The term `national fund
            manager' means a community development financial institution
            that is--
                        ``(A) in existence on the date of enactment of this
                    section; and
                        ``(B) certified by the Community Development
                    Financial Institution Fund of the Department of the
                    Treasury to manage the Initiative for purposes of--
                                ``(i) raising private capital;
                                ``(ii) providing financial and technical
                            assistance to partnerships; and
                                ``(iii) funding eligible projects to
                            attract fresh, healthy food retailers to
                            underserved areas, in accordance with this
                            section.
                ``(4) Partnership.--The term `partnership' means a
            regional, State, or local public-private partnership that--
                        ``(A) is organized to improve access to fresh,
                    healthy foods;
                        ``(B) provides financial and technical assistance
                    to eligible projects; and
                        ``(C) meets such other criteria as the Secretary
                    may establish.
                ``(5) Perishable food.--The term `perishable food' means a
            staple food that is fresh, refrigerated, or frozen.
                ``(6) Quality job.--The term `quality job' 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.
                ``(7) Staple food.--
                        ``(A) In general.--The term `staple food' means
                    food that is a basic dietary item.
                        ``(B) Inclusions.--The term `staple food'
                    includes--
                                ``(i) bread;
                                ``(ii) flour;
                                ``(iii) fruits;
                                ``(iv) vegetables; and
                                ``(v) meat.
        ``(c) Initiative.--
                ``(1) Establishment.--The Secretary shall establish an
            initiative to achieve the purpose described in subsection (a)
            in accordance with this subsection.
                ``(2) Implementation.--
                        ``(A) In general.--
                                ``(i) In general.--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).
                                ``(ii) Use of funds.--Funds provided to an
                            entity pursuant to clause (i) shall be used--
                                        ``(I) to create revolving loan
                                    pools of capital or other products to
                                    provide loans to finance eligible
                                    projects or partnerships;
                                        ``(II) to provide grants for
                                    eligible projects or partnerships;
                                        ``(III) to provide technical
                                    assistance to funded projects and
                                    entities seeking Initiative funding;
                                    and
                                        ``(IV) to cover administrative
                                    expenses of the national fund manager
                                    in an amount not to exceed 10 percent
                                    of the Federal funds provided.
                        ``(B) Eligible projects.--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--
                                ``(i) 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
                                ``(ii) 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.).
                        ``(C) Priorities.--In carrying out the Initiative,
                    priority shall be given to projects that--
                                ``(i) are located in severely distressed
                            low-income communities, as defined by the
                            Community Development Financial Institutions
                            Fund of the Department of the Treasury; and
                                ``(ii) include 1 or more of the following
                            characteristics:
                                        ``(I) The project will create or
                                    retain quality jobs for low-income
                                    residents in the community.
                                        ``(II) The project supports
                                    regional food systems and locally grown
                                    foods, to the maximum extent
                                    practicable.
                                        ``(III) In areas served by public
                                    transit, the project is accessible by
                                    public transit.
                                        ``(IV) The project involves women-
                                    or minority-owned businesses.
                                        ``(V) The project receives funding
                                    from other sources, including other
                                    Federal agencies.
                                        ``(VI) The project otherwise
                                    advances the purpose of this section,
                                    as determined by the Secretary.
        ``(d) Authorization of Appropriations.--There is authorized to be
    appropriated to the Secretary to carry out this section $125,000,000,
    to remain available until expended.''.

    SEC. 4206. PULSE CROP PRODUCTS.

        (a) Purpose.--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).
        (b) Definitions.--In this section:
                (1) Eligible pulse crop.--The term ``eligible pulse crop''
            means dry beans, dry peas, lentils, and chickpeas.
                (2) Pulse crop product.--The term ``pulse crop product''
            means a food product derived in whole or in part from an
            eligible pulse crop.
        (c) Purchase of Pulse Crops and Pulse Crop Products.--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--
                (1) the school lunch program established under the Richard
            B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.);
            and
                (2) the school breakfast program established by section 4
            of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
        (d) Evaluation.--Not later than September 30, 2016, the Secretary
    shall conduct an evaluation of the activities conducted under
    subsection (c), including--
                (1) 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;
                (2) an evaluation of which eligible pulse crops and pulse
            crop products are most acceptable for use in the school lunch
            and breakfast programs;
                (3) any recommendations of the Secretary regarding the
            integration of the use of pulse crop products in carrying out
            the school lunch and breakfast programs;
                (4) an evaluation of any change in the nutrient composition
            in the school lunch and breakfast programs due to the
            activities; and
                (5) an evaluation of any other outcomes determined to be
            appropriate by the Secretary.
        (e) Report.--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.
        (f) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $10,000,000, to remain available
    until expended.

    SEC. 4207. DIETARY GUIDELINES FOR AMERICANS.

        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:
                ``(3) Pregnant women and young children.--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.''.

    SEC. 4208. PURCHASES OF LOCALLY PRODUCED FOODS.

        Section 9(j) of the Richard B. Russell National School Lunch Act
    (42 U.S.C. 1758(j)) is amended--
                (1) by redesignating paragraphs (1) through (3) as
            subparagraphs (A) through (C), respectively, and indenting the
            subparagraphs appropriately;
                (2) by striking ``The Secretary'' and inserting the
            following:
                ``(1) In general.--The Secretary'';
                (3) in paragraph (1) (as so redesignated)--
                        (A) in subparagraph (B)--
                                (i) by striking ``paragraph (1) of the
                            policy described in that paragraph and
                            paragraph (3)'' and inserting ``subparagraph
                            (A) of the policy described in that
                            subparagraph and subparagraph (C)''; and
                                (ii) by striking ``and'' at the end;
                        (B) in subparagraph (C), by striking the period at
                    the end and inserting ``; and''; and
                        (C) by adding at the end the following:
                        ``(D) 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.''; and
                (4) by adding at the end the following:
                ``(2) Selection.--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--
                        ``(A) the Pacific Northwest Region;
                        ``(B) the Northeast Region;
                        ``(C) the Western Region;
                        ``(D) the Midwest Region; and
                        ``(E) the Southern Region.
                ``(3) Priority.--In selecting States for participation in
            the demonstration projects under paragraph (2), the Secretary
            shall prioritize applications based on--
                        ``(A) the quantity and variety of growers of local
                    fruits and vegetables in the State;
                        ``(B) 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
                        ``(C) whether the State contains a sufficient
                    quantity of school districts of varying population
                    sizes and geographical locations.''.

    SEC. 4209. MULTIAGENCY TASK FORCE.

        Subtitle D of title II of the Department of Agriculture
    Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) (as amended by
    section 4205) is amended by adding at the end the following:

    ``SEC. 243. MULTIAGENCY TASK FORCE.

        ``(a) In General.--The Secretary shall establish, in the office of
    the Under Secretary for Food, Nutrition, and Consumer Services, a
    multiagency task force for the purpose of providing coordination and
    direction for commodity programs.
        ``(b) Composition.--The Task Force shall be composed of at least 4
    members, including--
                ``(1) a representative from the Food Distribution Division
            of the Food and Nutrition Service, who shall--
                        ``(A) be appointed by the Under Secretary for Food,
                    Nutrition, and Consumer Services; and
                        ``(B) serve as Chairperson of the Task Force;
                ``(2) at least 1 representative from the Agricultural
            Marketing Service, who shall be appointed by the Under
            Secretary for Marketing and Regulatory Programs;
                ``(3) at least 1 representative from the Farm Services
            Agency, who shall be appointed by the Under Secretary for Farm
            and Foreign Agricultural Services; and
                ``(4) at least 1 representative from the Food Safety and
            Inspection Service, who shall be appointed by the Under
            Secretary for Food Safety.
        ``(c) Duties.--
                ``(1) In general.--The Task Force shall be responsible for
            evaluation and monitoring of the commodity programs to ensure
            that the commodity programs meet the mission of the
            Department--
                        ``(A) to support the United States farm sector; and
                        ``(B) to contribute to the health and well-being of
                    individuals in the United States through the
                    distribution of domestic agricultural products through
                    commodity programs.
                ``(2) Specific duties.--In carrying out paragraph (1), the
            Task Force shall--
                        ``(A) review and make recommendations regarding the
                    specifications used for the procurement of food
                    commodities;
                        ``(B) review and make recommendations regarding the
                    efficient and effective distribution of food
                    commodities; and
                        ``(C) review and make recommendations regarding the
                    degree to which the quantity, quality, and
                    specifications of procured food commodities align the
                    needs of producers and the preferences of recipient
                    agencies.
        ``(d) Reports.--Not later than 1 year after the date of enactment
    of this section, and annually thereafter, the Secretary shall submit to
    Congress a report that describes, for the period covered by the
    report--
                ``(1) the findings and recommendations of the Task Force;
            and
                ``(2) policies implemented for the improvement of commodity
            procurement programs.''.

    SEC. 4210. FOOD AND AGRICULTURE SERVICE LEARNING PROGRAM.

        Subtitle D of title II of the Department of Agriculture
    Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) (as amended by
    section 4209) is amended by adding at the end the following:

    ``SEC. 244. FOOD AND AGRICULTURE SERVICE LEARNING PROGRAM.

        ``(a) Definitions.--In this section:
                ``(1) Approved national service position.--The term
            `approved national service position' has the meaning given the
            term in section 101 of the National and Community Service Act
            of 1990 (42 U.S.C. 12511)).
                ``(2) Elementary school.--The term `elementary school' has
            the meaning given the term in section 9101 of the Elementary
            and Secondary Education Act of 1965 (20 U.S.C. 7801).
                ``(3) Program.--The term `Program' means the Food and
            Agriculture Service Learning Program established under
            subsection (b).
                ``(4) Secondary school.--The term `secondary school' has
            the meaning given the term in section 9101 of the Elementary
            and Secondary Education Act of 1965 (20 U.S.C. 7801).
        ``(b) Establishment.--The Secretary shall establish a Food and
    Agriculture Service Learning Program to increase knowledge of
    agriculture and improve the nutritional health of children.
        ``(c) Purposes.--The purposes of the Program are--
                ``(1) to increase capacity for food, garden, and nutrition
            education within host organizations or entities and school
            cafeterias and in the classroom;
                ``(2) to complement and build on the efforts of the farm to
            school programs implemented under section 18(g) of the Richard
            B. Russell National School Lunch Act (42 U.S.C. 1769(g));
                ``(3) to complement efforts by the Department and school
            food authorities to implement school meal programs under
            section 4(b)(3) of the Richard B. Russell National School Lunch
            Act (42 U.S.C. 1753(b)(3));
                ``(4) to carry out activities that advance the nutritional
            health of children and nutrition education in elementary
            schools and secondary schools;
                ``(5) to build on activities carried out by the Food and
            Nutrition Service and the Corporation for National and
            Community Service by providing funds to establish new approved
            national service positions for a national service program; and
                ``(6) to further expand the impact of the efforts described
            in paragraphs (1) through (5) through coordination with the
            National Institute of Food and Agriculture.
        ``(d) Eligibility.--In carrying out the Program, the Secretary may
    make awards to an organization or other entity that, as determined by
    the Secretary--
                ``(1) has a proven track record in carrying out the
            activities described in subsection (c);
                ``(2) is designated as a national service organization by
            the Corporation for National and Community Service under
            subtitle C of title I of the National and Community Service Act
            of 1990 (42 U.S.C. 12571 et seq.);
                ``(3) works in underserved rural and urban communities;
                ``(4) teaches and engages children in experiential learning
            about agriculture, gardening, nutrition, cooking, and where
            food comes from; and
                ``(5) facilitates a connection between elementary schools
            and secondary schools and agricultural producers in the local
            and regional area.
        ``(e) Accountability.--
                ``(1) In general.--The Secretary may require an
            organization or other entity receiving an award under
            subsection (d), or another qualified entity, to collect and
            report any data on the activities carried out under the
            Program, as determined by the Secretary.
                ``(2) Evaluation.--The Secretary shall--
                        ``(A) conduct regular evaluation of the activities
                    carried out under the Program; and
                        ``(B) 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 includes a description of the results of an
                    evaluation conducted under subparagraph (A).
        ``(f) Funding.--
                ``(1) Authorization of appropriations.--There is authorized
            to be appropriated to carry out this section $25,000,000, to
            remain available until expended.
                ``(2) Use of certain funds.--Of the funds made available to
            carry out this section for a fiscal year, 20 percent shall be
            made available to the National Institute of Food and
            Agriculture to offset costs associated with hosting, training,
            and overseeing individuals in approved national service
            positions under the Program.
                ``(3) Maintenance of effort.--Funds made available under
            paragraph (1) shall be used only to supplement, not to
            supplant, the amount of Federal funding otherwise expended for
            nutrition, research, and extension programs of the
            Department.''.

                                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.

        The Consolidated Farm and Rural Development Act (as amended by
    section 6001) is amended by inserting after section 3002 the following:

          ``Subtitle A--Farmer Loans, Servicing, and Other Assistance

                       ``CHAPTER 1--FARM OWNERSHIP LOANS

    ``SEC. 3101. FARM OWNERSHIP LOANS.

        ``(a) In General.--The Secretary may make or guarantee a farm
    ownership loan under this chapter to an eligible farmer for a farm in
    the United States.
        ``(b) Eligibility.--A farmer shall be eligible under subsection (a)
    only--
                ``(1) if the farmer, or, in the case of an entity, 1 or
            more individuals holding a majority interest in the entity--
                        ``(A) is a citizen of the United States; and
                        ``(B) 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;
                ``(2)(A) 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
                ``(B) in the case of a lessee-operator of a farm located in
            the State of Hawaii, if the Secretary determines that--
                        ``(i) the farm is not larger than a family farm;
                        ``(ii) the farm cannot be acquired in fee simple by
                    the lessee-operator;
                        ``(iii) adequate security is provided for the loan
                    with respect to the farm for which the lessee-operator
                    applies under this chapter; and
                        ``(iv) there is a reasonable probability of
                    accomplishing the objectives and repayment of the loan;
                ``(3) 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--
                        ``(A) if--
                                ``(i) a majority interest is held by
                            individuals who are related by blood or
                            marriage, as defined by the Secretary;
                                ``(ii) at least 1 of the individuals is or
                            will be the operator of the farm; and
                                ``(iii) the farm is not larger than a
                            family farm;
                        ``(B) if--
                                ``(i) all of the individuals who are or
                            propose to become owners or operators of a farm
                            are related by blood or marriage;
                                ``(ii) all of the individuals are or
                            propose to become operators of the farm; and
                                ``(iii) each of the interests of the
                            individuals separately constitutes not larger
                            than a family farm even if the ownership
                            interests of the individuals collectively
                            constitute larger than a family farm; or
                        ``(C) if--
                                ``(i) the entire interest is not held by
                            individuals who are related by blood or
                            marriage, as defined by the Secretary;
                                ``(ii) all of the individuals are or
                            propose to become farm operators; and
                                ``(iii) the farm is not larger than a
                            family farm;
                ``(4) 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--
                        ``(A) a percentage of the family farm that exceeds
                    50 percent; or
                        ``(B) such other percentage as the Secretary
                    determines to be appropriate;
                ``(5) 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; and
                ``(6) if the farmer (or in the case of a farmer that is an
            entity, the 1 or more individuals that hold a majority interest
            in the entity) is unable to obtain credit elsewhere.
        ``(c) Direct Loans.--
                ``(1) In general.--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--
                        ``(A) is a qualified beginning farmer;
                        ``(B) has not received a previous direct farm
                    ownership loan made under this chapter; or
                        ``(C) 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.
                ``(2) Youth loans.--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).

    ``SEC. 3102. PURPOSES OF LOANS.

        ``(a) Allowed Purposes.--
                ``(1) Direct loans.--A farmer may use a direct loan made
            under this chapter only--
                        ``(A) to acquire or enlarge a farm;
                        ``(B) to make capital improvements to a farm;
                        ``(C) to pay loan closing costs related to
                    acquiring, enlarging, or improving a farm;
                        ``(D) to pay for activities to promote soil and
                    water conservation and protection described in section
                    3103 on a farm; or
                        ``(E) 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--
                                ``(i) the Secretary approved an application
                            for a direct farm ownership loan to the farmer
                            for acquisition of the land; and
                                ``(ii) funds for direct farm ownership
                            loans under section 3201(a) were not available
                            at the time at which the application was
                            approved.
                ``(2) Guaranteed loans.--A farmer may use a loan guaranteed
            under this chapter only--
                        ``(A) to acquire or enlarge a farm;
                        ``(B) to make capital improvements to a farm;
                        ``(C) to pay loan closing costs related to
                    acquiring, enlarging, or improving a farm;
                        ``(D) to pay for activities to promote soil and
                    water conservation and protection described in section
                    3103 on a farm; or
                        ``(E) to refinance indebtedness.
        ``(b) Preferences.--In making or guaranteeing a loan under this
    chapter for purchase of a farm, the Secretary shall give preference to
    a person who--
                ``(1) has a dependent family;
                ``(2) to the extent practicable, is able to make an initial
            down payment on the farm; or
                ``(3) is an owner of livestock or farm equipment that is
            necessary to successfully carry out farming operations.
        ``(c) Hazard Insurance Requirement.--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.

    ``SEC. 3103. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

        ``(a) In General.--The Secretary may make or guarantee qualified
    conservation loans to eligible borrowers under this section.
        ``(b) Definitions.--In this section:
                ``(1) Conservation plan.--The term `conservation plan'
            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--
                        ``(A) the installation of conservation structures
                    to address soil, water, and related resources;
                        ``(B) the establishment of forest cover for
                    sustained yield timber management, erosion control, or
                    shelter belt purposes;
                        ``(C) the installation of water conservation
                    measures;
                        ``(D) the installation of waste management systems;
                        ``(E) the establishment or improvement of permanent
                    pasture;
                        ``(F) compliance with section 1212 of the Food
                    Security Act of 1985 (16 U.S.C. 3812); and
                        ``(G) other purposes consistent with the plan,
                    including the adoption of any other emerging or
                    existing conservation practices, techniques, or
                    technologies approved by the Secretary.
                ``(2) Qualified conservation loan.--The term `qualified
            conservation loan' means a loan, the proceeds of which are used
            to cover the costs to the borrower of carrying out a qualified
            conservation project.
                ``(3) Qualified conservation project.--The term `qualified
            conservation project' means conservation measures that address
            provisions of a conservation plan of the eligible borrower.
        ``(c) Eligibility.--
                ``(1) In general.--The Secretary may make or guarantee
            loans to farmers.
                ``(2) Requirements.--To be eligible for a loan under this
            section, applicants shall meet the citizenship and training and
            experience requirements of section 3101(b).
        ``(d) Priority.--In making or guaranteeing loans under this
    section, the Secretary shall give priority to--
                ``(1) qualified beginning farmers and socially
            disadvantaged farmers;
                ``(2) owners or tenants who use the loans to convert to
            sustainable or organic agricultural production systems; and
                ``(3) 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).
        ``(e) Limitations Applicable to Loan Guarantees.--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.
        ``(f) Administrative Provisions.--The Secretary shall ensure, to
    the maximum extent practicable, that loans made or guaranteed under
    this section are distributed across diverse geographic regions.
        ``(g) Credit Eligibility.--The provisions of paragraphs (1) and (3)
    of section 3406(a) shall not apply to loans made or guaranteed under
    this section.
        ``(h) Authorization of Appropriations.--For each of fiscal years
    2013 through 2018, there are authorized to be appropriated to the
    Secretary such sums as are necessary to carry out this section.

    ``SEC. 3104. LOAN MAXIMUMS.

        ``(a) Maximum.--
                ``(1) In general.--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--
                        ``(A) the value of the farm or other security, or
                        ``(B)(i) in the case of a loan made by the
                    Secretary, $300,000; or
                        ``(ii) in the case of a loan guaranteed by the
                    Secretary, $700,000 (as modified under paragraph (2)).
                ``(2) Modification.--The amount specified in paragraph
            (1)(B)(ii) shall be--
                        ``(A) increased, beginning with fiscal year 2000,
                    by the inflation percentage applicable to the fiscal
                    year in which the loan is guaranteed; and
                        ``(B) reduced by the amount of any unpaid
                    indebtedness of the borrower on loans under chapter 2
                    that are guaranteed by the Secretary.
        ``(b) Determination of Value.--In determining the value of the
    farm, the Secretary shall consider appraisals made by competent
    appraisers under rules established by the Secretary.
        ``(c) Inflation Percentage.--For purposes of this section, the
    inflation percentage applicable to a fiscal year is the percentage (if
    any) by which--
                ``(1) 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
                ``(2) the average of that index (as so defined) for the 12-
            month period ending on August 31, 1996.

    ``SEC. 3105. REPAYMENT REQUIREMENTS FOR FARM OWNERSHIP LOANS.

        ``(a) Period for Repayment.--The period for repayment of a loan
    under this chapter 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 chapter shall be
            determined by the Secretary at a rate--
                        ``(A) not to exceed the 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) Low income farm ownership loans.--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--
                        ``(A) not greater than the sum obtained by adding--
                                ``(i) an amount that does not exceed \1/2\
                            of the current average market yield on
                            outstanding marketable obligations of the
                            United States with maturities of 5 years; and
                                ``(ii) an amount not to exceed 1 percent
                            per year, as the Secretary determines is
                            appropriate; and
                        ``(B) not less than 5 percent per year.
                ``(3) Joint financing arrangement.--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.
                ``(4) Guaranteed loans.--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.
        ``(c) Payment of Charges.--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.
        ``(d) Security.--
                ``(1) In general.--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.
                ``(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 chapter, except that the outstanding amount of the loans
            may not exceed the total value of the collateral.
        ``(e) Mineral Rights as Collateral.--
                ``(1) In general.--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.
                ``(2) Compensatory payments.--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.
        ``(f) Additional Collateral.--The Secretary may not--
                ``(1) 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
                ``(2) 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.

    ``SEC. 3106. LIMITED-RESOURCE LOANS.

        ``(a) In General.--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--
                ``(1) in the case of an entity, all members, stockholders,
            or partners are eligible under section 3101(b);
                ``(2) has a low income; and
                ``(3) demonstrates a need to maximize the income of the
            farmer from farming operations.
        ``(b) Installments.--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.
        ``(c) Interest Rates.--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--
                ``(1) greater than the sum obtained by adding--
                        ``(A) an amount that does not exceed \1/2\ of the
                    current average market yield on outstanding marketable
                    obligations of the United States with maturities of 5
                    years; and
                        ``(B) an amount not exceeding 1 percent per year,
                    as the Secretary determines is appropriate; or
                ``(2) less than 5 percent per year.

    ``SEC. 3107. DOWNPAYMENT LOAN PROGRAM.

        ``(a) In General.--
                ``(1) Establishment.--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.
                ``(2) Coordination.--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).
        ``(b) Loan Terms.--
                ``(1) Principal.--Each loan made under this section shall
            be in an amount that does not exceed 45 percent of the lesser
            of--
                        ``(A) the purchase price of the farm to be
                    acquired;
                        ``(B) the appraised value of the farm to be
                    acquired; or
                        ``(C) $667,000.
                ``(2) Interest rate.--The interest rate on any loan made by
            the Secretary under this section shall be a rate equal to the
            greater of--
                        ``(A) the difference between--
                                ``(i) 4 percent; and
                                ``(ii) the interest rate for farm ownership
                            loans under this chapter; or
                        ``(B) 1.5 percent.
                ``(3) Duration.--Each loan under this section shall be made
            for a period of 20 years or less, at the option of the
            borrower.
                ``(4) Repayment.--Each borrower of a loan under this
            section shall repay the loan to the Secretary in equal annual
            installments.
                ``(5) Nature of retained security interest.--The Secretary
            shall retain an interest in each farm acquired with a loan made
            under this section that shall--
                        ``(A) be secured by the farm;
                        ``(B) 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
                        ``(C) require the borrower to obtain the permission
                    of the Secretary before the borrower may grant an
                    additional security interest in the farm.
        ``(c) Limitations.--
                ``(1) Borrowers required to make minimum down payment.--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.
                ``(2) Prohibited types of financing.--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:
                        ``(A) The financing is to be amortized over a
                    period of less than 30 years.
                        ``(B) 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.
        ``(d) Administration.--In carrying out this section, the Secretary
    shall, to the maximum extent practicable--
                ``(1) facilitate the transfer of farms from retiring
            farmers to persons eligible for insured loans under this
            subtitle;
                ``(2) make efforts to widely publicize the availability of
            loans under this section among--
                        ``(A) potentially eligible recipients of the loans;
                        ``(B) retiring farmers; and
                        ``(C) applicants for farm ownership loans under
                    this chapter;
                ``(3) encourage retiring farmers to assist in the sale of
            their farms to qualified beginning farmers and socially
            disadvantaged farmers providing seller financing;
                ``(4) 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
                ``(5) 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.

    ``SEC. 3108. BEGINNING FARMER AND SOCIALLY DISADVANTAGED FARMER
                  CONTRACT LAND SALES PROGRAM.

        ``(a) In General.--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.
        ``(b) Eligibility.--To be eligible for a loan guarantee under
    subsection (a)--
                ``(1) the qualified beginning farmer or socially
            disadvantaged farmer shall--
                        ``(A) 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;
                        ``(B) have a credit history that--
                                ``(i) includes a record of satisfactory
                            debt repayment, as determined by the Secretary;
                            and
                                ``(ii) is acceptable to the Secretary; and
                        ``(C) 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
                ``(2) the loan shall meet applicable underwriting criteria,
            as determined by the Secretary.
        ``(c) Limitations.--The Secretary shall not provide a loan
    guarantee under subsection (a) if--
                ``(1) 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
                ``(2) the purchase price or the appraisal value of the farm
            that is the subject of the contract land sale is greater than
            $500,000.
        ``(d) Period of Guarantee.--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.
        ``(e) Guarantee Plan.--
                ``(1) Selection of plan.--A private seller of a farm who
            makes a loan guaranteed by the Secretary under subsection (a)
            may select--
                        ``(A) a prompt payment guarantee plan, which shall
                    cover--
                                ``(i) 3 amortized annual installments; or
                                ``(ii) 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
                        ``(B) a standard guarantee plan, which shall cover
                    an amount equal to 90 percent of the outstanding
                    principal of the loan.
                ``(2) Eligibility for standard guarantee plan.--To be
            eligible for a standard guarantee plan referred to in paragraph
            (1)(B), a private seller shall--
                        ``(A) secure a commercial lending institution or
                    similar entity, as determined by the Secretary, to
                    serve as an escrow agent; or
                        ``(B) in cooperation with the farmer, use an
                    appropriate alternate arrangement, as determined by the
                    Secretary.

                          ``CHAPTER 2--OPERATING LOANS

    ``SEC. 3201. OPERATING LOANS.

        ``(a) In General.--The Secretary may make or guarantee an operating
    loan under this chapter to an eligible farmer in the United States.
        ``(b) Eligibility.--A farmer shall be eligible under subsection (a)
    only--
                ``(1) if the farmer, or an individual holding a majority
            interest in the farmer--
                        ``(A) is a citizen of the United States; and
                        ``(B) 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;
                ``(2) 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;
                ``(3) 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--
                        ``(A) if--
                                ``(i) a majority interest is held by
                            individuals who are related by blood or
                            marriage, as defined by the Secretary;
                                ``(ii) at least 1 of the individuals is or
                            will be the operator of the farm; and
                                ``(iii) the farm is not larger than a
                            family farm;
                        ``(B) if--
                                ``(i) all of the individuals who are or
                            propose to become owners or operators of a farm
                            are related by blood or marriage;
                                ``(ii) all of the individuals are or
                            propose to become operators of the farm; and
                                ``(iii) each of the interests of the
                            individuals separately constitutes not larger
                            than a family farm even if the ownership
                            interests of the individuals collectively
                            constitute larger than a family farm; or
                        ``(C) if--
                                ``(i) the entire interest is not held by
                            individuals who are related by blood or
                            marriage, as defined by the Secretary;
                                ``(ii) all of the individuals are or
                            propose to become farm operators; and
                                ``(iii) the farm is not larger than a
                            family farm;
                ``(4) 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
                ``(5) if the farmer (or in the case of a farmer that is an
            entity, the 1 or more individuals that hold a majority interest
            in the entity) is unable to obtain credit elsewhere.
        ``(c) Direct Loans.--
                ``(1) In general.--The Secretary may make a direct loan
            under this chapter only to a farmer who--
                        ``(A) is a qualified beginning farmer;
                        ``(B) has not received a previous direct operating
                    loan made under this chapter; or
                        ``(C) has not received a direct operating loan made
                    under this chapter for a total of 10 years, plus any
                    year the farmer or rancher 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.
                ``(2) Youth loans.--In this subsection, the term `direct
            operating loan' shall not include a loan made to a youth under
            subsection (d).
                ``(3) Waivers.--
                        ``(A) Farm operations on tribal land.--The
                    Secretary shall waive the limitation under paragraph
                    (1)(C) 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.
                        ``(B) Other farm operations.--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) for a direct operating loan if the
                    borrower demonstrates to the satisfaction of the
                    Secretary that--
                                ``(i) the borrower has a viable farm
                            operation;
                                ``(ii) the borrower applied for commercial
                            credit from at least 2 commercial lenders;
                                ``(iii) the borrower was unable to obtain a
                            commercial loan (including a loan guaranteed by
                            the Secretary); and
                                ``(iv) 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)).
        ``(d) Youth Loans.--
                ``(1) In general.--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.
                ``(2) Full personal liability.--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.
                ``(3) Cosigner.--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.
                ``(4) Youth enterprises not farming.--The operation of an
            enterprise by a youth under this subsection shall not be
            considered the operation of a farm under this subtitle.
                ``(5) Relation to other loan programs.--Notwithstanding any
            other provision of law, if a borrower becomes delinquent with
            respect to a youth loan made under this subsection, the
            borrower shall not become ineligible, as a result of the
            delinquency, to receive loans and loan guarantees from the
            Federal government to pay for education expenses of the
            borrower.
        ``(e) Pilot Loan Program To Support Healthy Foods for the Hungry.--
                ``(1) Definition of gleaner.--In this subsection, the term
            `gleaner' means an entity that--
                        ``(A) collects edible, surplus food that would be
                    thrown away and distributes the food to agencies or
                    nonprofit organizations that feed the hungry; or
                        ``(B) 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.
                ``(2) Program.--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.
                ``(3) Eligibility.--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.
                ``(4) Loan amount.--
                        ``(A) In general.--Each loan issued under the
                    program shall be in an amount of not less than $500 and
                    not more than $5,000.
                        ``(B) Redistribution.--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.
                ``(5) Loan processing.--
                        ``(A) In general.--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.
                        ``(B) Expediting applications.--The Secretary shall
                    take any measure the Secretary determines necessary to
                    expedite any application submitted under the program.
                ``(6) Paperwork reduction.--The Secretary shall take
            measures to reduce any paperwork requirements for loans under
            the program.
                ``(7) Program integrity.--The Secretary shall take such
            actions as are necessary to ensure the integrity of the program
            established under this subsection.
                ``(8) Maximum amount.--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.
                ``(9) Report.--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.

    ``SEC. 3202. PURPOSES OF LOANS.

        ``(a) Direct Loans.--A direct loan may be made under this chapter
    only--
                ``(1) to pay the costs incident to reorganizing a farm for
            more profitable operation;
                ``(2) to purchase livestock, poultry, or farm equipment;
                ``(3) to purchase feed, seed, fertilizer, insecticide, or
            farm supplies, or to meet other essential farm operating
            expenses, including cash rent;
                ``(4) to finance land or water development, use, or
            conservation;
                ``(5) to pay loan closing costs;
                ``(6) 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;
                ``(7) to train a limited-resource borrower receiving a loan
            under section 3106 in maintaining records of farming
            operations;
                ``(8) to train a borrower under section 3419;
                ``(9) to refinance the indebtedness of a borrower, if the
            borrower--
                        ``(A) has refinanced a loan under this chapter not
                    more than 4 times previously; and
                        ``(B)(i) is a direct loan borrower under this
                    subtitle at the time of the refinancing and has
                    suffered a qualifying loss because of a natural or
                    major disaster or emergency; or
                        ``(ii) is refinancing a debt obtained from a
                    creditor other than the Secretary;
                ``(10) to provide other farm or home needs, including
            family subsistence; or
                ``(11) to assist a farmer in the production of a locally or
            regionally produced agricultural food product (as defined in
            section 3601(e)(11)(A)), including to qualified producers
            engaged in direct-to-consumer marketing, direct-to-institution
            marketing, or direct-to-store marketing, business, or
            activities that produce a value-added agricultural product (as
            defined in section 231(a) of the Agricultural Risk Protection
            Act of 2000 (7 U.S.C. 1632a(a))).
        ``(b) Guaranteed Loans.--A loan may be guaranteed under this
    chapter only--
                ``(1) to pay the costs incident to reorganizing a farm for
            more profitable operation;
                ``(2) to purchase livestock, poultry, or farm equipment;
                ``(3) to purchase feed, seed, fertilizer, insecticide, or
            farm supplies, or to meet other essential farm operating
            expenses, including cash rent;
                ``(4) to finance land or water development, use, or
            conservation;
                ``(5) to refinance indebtedness;
                ``(6) to pay loan closing costs;
                ``(7) 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;
                ``(8) to train a borrower under section 3419; or
                ``(9) to provide other farm or home needs, including family
            subsistence.
        ``(c) Hazard Insurance Requirement.--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.
        ``(d) Private Reserve.--
                ``(1) In general.--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.
                ``(2) Limit on size of the reserve.--The size of the
            reserve shall not exceed the lesser of--
                        ``(A) 10 percent of the loan;
                        ``(B) $5,000; or
                        ``(C) the amount needed to provide for the basic
                    family needs of the borrower and the immediate family
                    of the borrower for 3 calendar months.
        ``(e) Loans to Local and Regional Food Producers.--
                ``(1) Training.--The Secretary shall ensure that loan
            officers processing loans under subsection (a)(11) receive
            appropriate training to serve borrowers and potential borrowers
            engaged in local and regional food production.
                ``(2) Valuation.--
                        ``(A) In general.--The Secretary shall develop ways
                    to determine unit prices (or other appropriate forms of
                    valuation) for crops and other agricultural products,
                    the end use of which is intended to be in locally or
                    regionally produced agricultural food products, to
                    facilitate lending to local and regional food
                    producers.
                        ``(B) Price history.--The Secretary shall implement
                    a mechanism for local and regional food producers to
                    establish price history for the crops and other
                    agricultural products produced by local and regional
                    food producers.
                ``(3) Outreach.--The Secretary shall develop and implement
            an outreach strategy to engage and provide loan services to
            local and regional food producers.

    ``SEC. 3203. RESTRICTIONS ON LOANS.

        ``(a) Requirements.--
                ``(1) In general.--The Secretary may not make or guarantee
            a loan under this chapter--
                        ``(A) that would cause the total principal
                    indebtedness outstanding at any 1 time for loans made
                    under this chapter to any 1 borrower to exceed--
                                ``(i)(I) in the case of a loan made by the
                            Secretary, $300,000; or
                                ``(II) in the case of a loan guaranteed by
                            the Secretary, $700,000 (as modified under
                            paragraph (2)); or
                        ``(B) for the purchasing or leasing of land other
                    than for cash rent, or for carrying on a land leasing
                    or land purchasing program.
                ``(2) Modification.--The amount specified in paragraph
            (1)(A)(ii) shall be--
                        ``(A) increased, beginning with fiscal year 2000,
                    by the inflation percentage applicable to the fiscal
                    year in which the loan is guaranteed; and
                        ``(B) reduced by the unpaid indebtedness of the
                    borrower on loans under sections specified in section
                    3104 that are guaranteed by the Secretary.
        ``(b) Inflation Percentage.--For purposes of this section, the
    inflation percentage applicable to a fiscal year is the percentage (if
    any) by which--
                ``(1) 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
                ``(2) the average of that index (as so defined) for the 12-
            month period ending on August 31, 1996.

    ``SEC. 3204. TERMS OF LOANS.

        ``(a) Personal Liability.--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.
        ``(b) Interest Rates.--
                ``(1) Maximum rate.--
                        ``(A) In general.--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--
                                ``(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 additional charge not to exceed 1
                            percent, as determined by the Secretary.
                        ``(B) Adjustment.--The sum obtained under
                    subparagraph (A) shall be adjusted to the nearest \1/8\
                    of 1 percent.
                ``(2) Guaranteed loan.--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.
                ``(3) Low income loan.--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--
                        ``(A) greater than the sum obtained by adding--
                                ``(i) an amount that does not exceed \1/2\
                            of the current average market yield on
                            outstanding marketable obligations of the
                            United States with a maturity of 5 years; and
                                ``(ii) an amount not to exceed 1 percent
                            per year, as the Secretary determines is
                            appropriate; or
                        ``(B) less than 5 percent per year.
        ``(c) Period for Repayment.--The period for repayment of a loan
    made under this chapter may not exceed 7 years.
        ``(d) Line-of-Credit Loans.--
                ``(1) In general.--A loan made or guaranteed by the
            Secretary under this chapter may be in the form of a line-of-
            credit loan.
                ``(2) Term.--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.
                ``(3) Eligibility.--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.
                ``(4) Termination of delinquent loans.--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--
                        ``(A) the failure of the borrower to pay on
                    schedule was due to unusual conditions that the
                    borrower could not control; and
                        ``(B) the borrower will reduce the line-of-credit
                    balance to the scheduled level at the end of--
                                ``(i) the production cycle; or
                                ``(ii) the marketing of the agricultural
                            products of the borrower.
                ``(5) Agricultural commodities.--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.

                          ``CHAPTER 3--EMERGENCY LOANS

    ``SEC. 3301. EMERGENCY LOANS.

        ``(a) In General.--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.
        ``(b) Eligibility.--An established farmer shall be eligible under
    subsection (a) only--
                ``(1) if the farmer or an individual holding a majority
            interest in the farmer--
                        ``(A) is a citizen of the United States; and
                        ``(B) 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;
                ``(2) in the case of a farmer that is an individual, if the
            farmer is--
                        ``(A) 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
                        ``(B) 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;
                ``(3) 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--
                        ``(A) if--
                                ``(i) a majority interest is held by
                            individuals who are related by blood or
                            marriage, as defined by the Secretary;
                                ``(ii) at least 1 of the individuals is or
                            will be the operator of the farm; and
                                ``(iii) the farm is not larger than a
                            family farm;
                        ``(B) if--
                                ``(i) all of the individuals who are or
                            propose to become owners or operators of a farm
                            are related by blood or marriage;
                                ``(ii) all of the individuals are or
                            propose to become operators of the farm; and
                                ``(iii) each of the interests of the
                            individuals separately constitutes not larger
                            than a family farm even if the ownership
                            interests of the individuals collectively
                            constitute larger than a family farm; or
                        ``(C) if--
                                ``(i) the entire interest is not held by
                            individuals who are related by blood or
                            marriage, as defined by the Secretary;
                                ``(ii) all of the individuals are or
                            propose to become farm operators; and
                                ``(iii) the farm is not larger than a
                            family farm;
                ``(4) 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;
                ``(5) if the farmer (or in the case of a farmer that is an
            entity, the 1 or more individuals that hold a majority interest
            in the entity) is unable to obtain credit elsewhere; and
                ``(6)(A) if the Secretary finds that the operations of the
            farmer have been substantially affected by--
                        ``(i) 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
                        ``(ii) 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
                ``(B) 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.
        ``(c) Time for Accepting an Application.--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--
                ``(1) the Secretary determines that farming operations of
            the farmer have been substantially affected by--
                        ``(A) 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
                        ``(B) a natural disaster; or
                ``(2) 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).
        ``(d) Hazard Insurance Requirement.--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.
        ``(e) Family Farm.--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)).

    ``SEC. 3302. PURPOSES OF LOANS.

        ``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--
                ``(1) any purpose authorized for a loan under chapter 1 or
            2; and
                ``(2) crop or livestock purposes that are--
                        ``(A) necessitated by a quarantine, natural
                    disaster, major disaster, or emergency; and
                        ``(B) considered desirable by the farmer.

    ``SEC. 3303. TERMS OF LOANS.

        ``(a) Maximum Amount of Loan.--The Secretary may not make or
    guarantee a loan under this chapter to a borrower who has suffered a
    loss in an amount that--
                ``(1) exceeds the actual loss caused by a disaster; or
                ``(2) would cause the total indebtedness of the borrower
            under this chapter to exceed $500,000.
        ``(b) Interest Rates.--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.
        ``(c) Interest Subsidies for Guaranteed Loans.--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.
        ``(d) Time for Repayment.--
                ``(1) In general.--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.
                ``(2) Extended repayment period.--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.
        ``(e) Security for Loan.--
                ``(1) In general.--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.
                ``(2) Adequate security.--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.
                ``(3) Inadequate security due to disaster.--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.
                ``(4) Valuation of farm assets.--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.
        ``(f) Review of Loan.--
                ``(1) In general.--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.
                ``(2) Termination of federal assistance.--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.

    ``SEC. 3304. PRODUCTION LOSSES.

        ``(a) In General.--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.
        ``(b) Basis for Percentage.--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.
        ``(c) Amount of Loan.--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.

                  ``CHAPTER 4--GENERAL FARMER LOAN PROVISIONS

    ``SEC. 3401. AGRICULTURAL CREDIT INSURANCE FUND.

        ``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 `Fund', 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.

    ``SEC. 3402. GUARANTEED FARMER 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, but shall not
    exceed the average interest rate charged by the lender on loans made to
    farm borrowers.
        ``(c) Fees.--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--
                ``(1) the Secretary shall not charge a fee to any person
            (including a lender); and
                ``(2) a lender may charge a loan origination and servicing
            fee in an amount not to exceed 1 percent of the amount of the
            loan.
        ``(d) Maximum Guarantee of 90 Percent.--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.
        ``(e) 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 the loan is guaranteed.
        ``(f) Beginning Farmer Loans Guaranteed up to 95 Percent.--The
    Secretary may guarantee not more than 95 percent of--
                ``(1) a farm ownership loan for acquiring a farm to a
            borrower who is participating in the downpayment loan program
            under section 3107; or
                ``(2) 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.
        ``(g) Guarantee of Loans Made Under State Beginning Farmer
    Programs.--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.
        ``(h) Partial Liquidations.--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 subtitle,
    the Secretary shall not require full liquidation of the loan for the
    lender to be eligible to receive payment on losses.

    ``SEC. 3403. PROVISION OF INFORMATION TO BORROWERS.

        ``(a) Approval Notification.--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.
        ``(b) List of Lenders.--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.
        ``(c) Other Information.--
                ``(1) In general.--On the request of a borrower, the
            Secretary shall make available to the borrower--
                        ``(A) a copy of each document signed by the
                    borrower;
                        ``(B) a copy of each appraisal performed with
                    respect to the loan; and
                        ``(C) any document that the Secretary is required
                    to provide to the borrower under any law in effect on
                    the date of the request.
                ``(2) Rule of construction.--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).

    ``SEC. 3404. NOTICE OF LOAN SERVICE PROGRAMS.

        ``(a) Requirement.--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.
        ``(b) Contents.--The notice required under subsection (a) shall--
                ``(1) 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;
                ``(2) 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;
                ``(3) advise the borrower regarding all filing requirements
            and any deadlines that must be met for requesting loan
            servicing;
                ``(4) provide any relevant forms, including applicable
            response forms;
                ``(5) advise the borrower that a copy of regulations is
            available on request; and
                ``(6) be designed to be readable and understandable by the
            borrower.
        ``(c) Contained in Regulations.--All notices required by this
    section shall be contained in the regulations issued to carry out this
    subtitle.
        ``(d) Timing.--The notice described in subsection (b) shall be
    provided--
                ``(1) at the time an application is made for participation
            in a loan service program;
                ``(2) on written request of the borrower; and
                ``(3) before the earliest of the date of--
                        ``(A) initiating any liquidation;
                        ``(B) requesting the conveyance of security
                    property;
                        ``(C) accelerating the loan;
                        ``(D) repossessing property;
                        ``(E) foreclosing on property; or
                        ``(F) taking any other collection action.
        ``(e) Consideration of Borrowers for Loan Service Programs.--
                ``(1) In general.--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.
                ``(2) Priority.--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.

    ``SEC. 3405. PLANTING AND PRODUCTION HISTORY GUIDELINES.

        ``(a) In General.--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.
        ``(b) Calculation of Yields.--
                ``(1) In general.--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 subtitle, 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.
                ``(2) Affected by a natural or major disaster or
            emergency.--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.
                ``(3) Application of subsection.--This subsection shall
            apply to any action taken by the Secretary that involves--
                        ``(A) a loan under chapter 1 or 2; and
                        ``(B) the yield of a farm of a farmer, including
                    making a loan or loan guarantee, servicing a loan, or
                    making a credit sale.

    ``SEC. 3406. SPECIAL CONDITIONS AND LIMITATIONS ON LOANS.

        ``(a) Applicant Requirements.--In connection with a loan made or
    guaranteed under this subtitle, the Secretary shall require--
                ``(1) the applicant--
                        ``(A) to certify in writing that, and the Secretary
                    shall determine whether, the applicant is unable to
                    obtain credit elsewhere; and
                        ``(B) to furnish an appropriate written financial
                    statement;
                ``(2) 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;
                ``(3) 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
                ``(4) 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.
        ``(b) Agency Processing Requirements.--
                ``(1) Notifications.--
                        ``(A) Incomplete application notification.--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.
                        ``(B) Operating loans.--
                                ``(i) Additional information needed.--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.
                                ``(ii) Information not received.--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.
                        ``(C) Request information.--
                                ``(i) In general.--On receipt of an
                            application, the Secretary shall request from
                            other parties such information as may be needed
                            in connection with the application.
                                ``(ii) Information from an agency of the
                            department.--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.
                ``(2) Report of pending applications.--
                        ``(A) In general.--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.
                        ``(B) Action on pending applications.--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.
                        ``(C) Pending application report.--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.
                        ``(D) Report to congress.--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.
                ``(3) Disapprovals.--
                        ``(A) In general.--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).
                        ``(B) Disapproval due to lack of funds.--
                                ``(i) In general.--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.
                                ``(ii) Reconsideration.--The Secretary
                            shall retain each pending application and
                            reconsider the application beginning on the
                            date that sufficient funds become available.
                                ``(iii) Notification.--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.
                ``(4) Approvals on appeal.--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.
                ``(5) Provision of proceeds.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), if an application for a guaranteed
                    loan under this subtitle 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.
                        ``(B) Lack of funds.--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.

    ``SEC. 3407. GRADUATION OF BORROWERS.

        ``(a) Graduation of Seasoned Direct Loan Borrowers to the Loan
    Guarantee Program.--
                ``(1) Review of loans.--
                        ``(A) In general.--The Secretary, or a contracting
                    third party, shall annually review under section 3420
                    the loans of each seasoned direct loan borrower.
                        ``(B) Assistance.--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.
                ``(2) Prospectus.--
                        ``(A) In general.--In accordance with section 3422,
                    the Secretary shall prepare a prospectus on each
                    seasoned direct loan borrower determined eligible to
                    obtain a guaranteed loan.
                        ``(B) Requirements.--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.
                ``(3) Verification.--
                        ``(A) In general.--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.
                        ``(B) Notification.--The Secretary shall notify
                    each borrower of a loan that a prospectus has been
                    provided to a lender under subparagraph (A).
                        ``(C) Credit extended.--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.
                ``(4) Insufficient assistance or offers.--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.
                ``(5) Interest rate reductions.--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.
        ``(b) Transition to Private Commercial or Other Sources of
    Credit.--
                ``(1) In general.--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.
                ``(2) Coordination.--In carrying out this section, the
            Secretary shall integrate and coordinate the transition policy
            described in subsection (a) with--
                        ``(A) the borrower training program established by
                    section 3419;
                        ``(B) the loan assessment process established by
                    section 3420;
                        ``(C) the supervised credit requirement established
                    by section 3421;
                        ``(D) the market placement program established by
                    section 3422; and
                        ``(E) other appropriate programs and authorities,
                    as determined by the Secretary.
        ``(c) Graduation of Borrowers With Operating Loans or Guarantees to
    Private Commercial Credit.--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.

    ``SEC. 3408. DEBT ADJUSTMENT AND CREDIT COUNSELING.

        ``In carrying out this subtitle, the Secretary may--
                ``(1) provide voluntary debt adjustment assistance
            between--
                        ``(A) farmers; and
                        ``(B) the creditors of the farmers;
                ``(2) cooperate with State, territorial, and local agencies
            and committees engaged in the debt adjustment; and
                ``(3) give credit counseling.

    ``SEC. 3409. SECURITY SERVICING.

        ``(a) Sale of Property.--
                ``(1) In general.--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:
                        ``(A) Advertisement.--Not later than 15 days after
                    acquiring real property, the Secretary shall publicly
                    advertise the property for sale.
                        ``(B) Qualified beginning farmer.--
                                ``(i) In general.--Not later than 135 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.
                                ``(ii) Random selection.--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.
                                ``(iii) Appeal of random selection.--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.
                        ``(C) Public sale.--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.
                ``(2) Interest.--
                        ``(A) In general.--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.
                        ``(B) Conservation.--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.
                ``(3) Other law.--Subtitle I of title 40, United States
            Code, and title III of the Federal Property and Administrative
            Services Act of 1949 (41 U.S.C. 251 et seq.) shall not apply to
            any exercise of authority under this subtitle.
                ``(4) Lease of property.--
                        ``(A) In general.--Subject to subparagraph (B), the
                    Secretary may not lease any real property acquired
                    under this subtitle.
                        ``(B) Exception.--
                                ``(i) Qualified beginning farmer or
                            socially disadvantaged farmer.--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.
                                ``(ii) Term.--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--
                                        ``(I) the date that is 18 months
                                    after the date of the lease or sale; or
                                        ``(II) 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.
                                ``(iii) Income-producing capability.--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.
                ``(5) Expedited determination.--
                        ``(A) In general.--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.
                        ``(B) Appeal.--The determination of a State
                    Director under subparagraph (A) shall be final and not
                    administratively appealable.
                        ``(C) Effects of determinations.--
                                ``(i) In general.--The Secretary shall
                            maintain statistical data on the number and
                            results of determinations made under
                            subparagraph (A) and the effect of the
                            determinations on--
                                        ``(I) selling farm inventory
                                    property to qualified beginning farmers
                                    or socially disadvantaged farmers; and
                                        ``(II) disposing of real property
                                    in inventory.
                                ``(ii) Notification.--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.
        ``(b) Road and Utility Easements and Condemnations.--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.
        ``(c) Sale or Lease of Farmland.--
                ``(1) Disposition of real property on indian
            reservations.--
                        ``(A) Definition of indian reservation.--In this
                    paragraph, the term `Indian reservation' means--
                                ``(i) 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;
                                ``(ii) trust or restricted land located
                            within the boundaries of a former reservation
                            of an Indian tribe in the State of Oklahoma; or
                                ``(iii) all Indian allotments the Indian
                            titles to which have not been extinguished if
                            the allotments are subject to the jurisdiction
                            of an Indian tribe.
                        ``(B) Disposition.--Except as provided in paragraph
                    (3), the Secretary shall dispose of or administer the
                    property as provided in this paragraph when--
                                ``(i) the Secretary acquires property under
                            this subtitle that is located within an Indian
                            reservation; and
                                ``(ii) 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;
                        ``(C) Priority.--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:
                                ``(i) An Indian member of the Indian tribe
                            that has jurisdiction over the reservation
                            within which the real property is located.
                                ``(ii) An Indian corporate entity.
                                ``(iii) The Indian tribe.
                        ``(D) Revision of priority and restriction of
                    eligibility.--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--
                                ``(i) persons who are members of the Indian
                            tribe;
                                ``(ii) Indian corporate entities that are
                            authorized by the Indian tribe to lease or
                            purchase land within the boundaries of the
                            reservation; or
                                ``(iii) the Indian tribe itself.
                        ``(E) Transfer of property to secretary of the
                    interior.--
                                ``(i) In general.--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.
                                ``(ii) Use of rental income.--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--
                                        ``(I) the expiration of the 4-year
                                    period beginning on the date on which
                                    the real property is so transferred; or
                                        ``(II) such time as the land is
                                    transferred into trust pursuant to
                                    subparagraph (H).
                        ``(F) Responsibilities of secretaries.--If any real
                    property is transferred to the Secretary of the
                    Interior under subparagraph (E)--
                                ``(i) the Secretary of Agriculture shall
                            have no further responsibility under this
                            subtitle for--
                                        ``(I) collection of any amounts
                                    with regard to the farm program loan
                                    that had been secured by the real
                                    property;
                                        ``(II) any lien arising out of the
                                    loan transaction; or
                                        ``(III) repayment of any amount
                                    with regard to the loan transaction or
                                    lien to the Treasury of the United
                                    States; and
                                ``(ii) 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).
                        ``(G) Use of income.--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--
                                ``(i) 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;
                                ``(ii) the fair market value of the real
                            property, as of the date of the transfer to the
                            Secretary of the Interior; or
                                ``(iii) the capitalized value of the real
                            property, as of the date of the transfer to the
                            Secretary of the Interior.
                        ``(H) Holding of title in trust.--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.
                        ``(I) Payment of remaining lien or fair market
                    value of property.--
                                ``(i) In general.--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.
                                ``(ii) Effect of payment.--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.
                        ``(J) Applicability.--
                                ``(i) In general.--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.
                                ``(ii) Opportunity to purchase or lease.--
                            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).
                                ``(iii) Transfer.--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).
                ``(2) Additional rights.--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.
                ``(3) Disposition of real property on indian reservations
            after procedures exhausted.--
                        ``(A) In general.--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--
                                ``(i) the real property described in
                            paragraph (1)(B) is located within an Indian
                            reservation;
                                ``(ii) 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;
                                ``(iii) the borrower-owner has obtained a
                            loan made or guaranteed under this subtitle;
                            and
                                ``(iv) the borrower-owner and the Secretary
                            have exhausted all of the procedures provided
                            for in this subtitle to permit a borrower-owner
                            to retain title to the real property, so that
                            it is necessary for the borrower-owner to
                            relinquish title.
                        ``(B) Notice of right to convey property.--The
                    Secretary shall provide the borrower-owner of real
                    property that is described in subparagraph (A) with
                    written notice of--
                                ``(i) the right of the borrower-owner to
                            voluntarily convey the real property to the
                            Secretary; and
                                ``(ii) the fact that real property so
                            conveyed will be placed in the inventory of the
                            Secretary.
                        ``(C) Notice of rights and protections.--The
                    Secretary shall provide the borrower-owner of the real
                    property with written notice of the rights and
                    protections provided under this subtitle 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--
                                ``(i) of paragraph (1), this paragraph, and
                            subsection (e)(3);
                                ``(ii) if the borrower-owner does not
                            voluntarily convey the real property to the
                            Secretary, that--
                                        ``(I) the Secretary may foreclose
                                    on the property;
                                        ``(II) in the event of foreclosure,
                                    the property will be offered for sale;
                                        ``(III) 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;
                                        ``(IV) the property may be
                                    purchased by another party; and
                                        ``(V) 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 subtitle; and
                                ``(iii) 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 subtitle.
                        ``(D) Acceptance of voluntary conveyance.--
                                ``(i) In general.--Except as provided in
                            clause (ii), the Secretary shall accept the
                            voluntary conveyance of real property described
                            in subparagraph (A).
                                ``(ii) Hazardous substances.--If a
                            hazardous substance (as defined in section
                            101(14) of the Comprehensive Environmental
                            Response, Compensation, and Liability Act of
                            1980 (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.
                        ``(E) Foreclosure procedures.--
                                ``(i) Notice to borrower.--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--
                                        ``(I) 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
                                        ``(II) 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).
                                ``(ii) Notice to tribe.--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--
                                        ``(I) the sale;
                                        ``(II) the fair market value of the
                                    property; and
                                        ``(III) the requirements of this
                                    paragraph.
                                ``(iii) Assumed loans.--If an Indian tribe
                            assumes a loan under clause (i)--
                                        ``(I) the Secretary shall not
                                    foreclose the loan because of any
                                    default that occurred prior to the date
                                    of the assumption;
                                        ``(II) 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
                                        ``(III) the loan shall be treated
                                    as though the loan was made under
                                    Public Law 91-229 (25 U.S.C. 488 et
                                    seq.).
                        ``(F) Amount of bid by secretary.--
                                ``(i) In general.--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--
                                        ``(I) the fair market value of the
                                    property; or
                                        ``(II) the outstanding principal
                                    and interest on the loan.
                                ``(ii) Hazardous substances.--If a
                            hazardous substance (as defined in section
                            101(14) of the Comprehensive Environmental
                            Response, Compensation, and Liability Act of
                            1980 (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.
                ``(4) Detrimental effect on value of area farmland.--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.
                ``(5) Installment sales and multiple operators.--
                        ``(A) In general.--The Secretary may sell farmland
                    administered under this subtitle 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.
                        ``(B) Sale of contract.--The Secretary may
                    subsequently sell any contract entered into to carry
                    out subparagraph (A).
                ``(6) Highly erodible land.--In the case of farmland
            administered under this subtitle 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.
                ``(7) No effect on acreage allotments, marketing quotas, or
            acreage bases.--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.
                ``(8) No preemption of state law.--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.
        ``(d) Release of Normal Income Security.--
                ``(1) Definition of normal income security.--In this
            subsection:
                        ``(A) In general.--Except as provided in
                    subparagraph (B), the term `normal income security'
                    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.
                        ``(B) Exceptions.--The term `normal income
                    security' does not include any equipment (including
                    fixtures in States that have adopted the Uniform
                    Commercial Code), or foundation herd or flock, that
                    is--
                                ``(i) the basis of the farming or other
                            operation; and
                                ``(ii) the basic security for a farmer
                            program loan.
                ``(2) General release.--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.
                ``(3) Notice of reporting requirements and rights.--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--
                        ``(A) the requirement; and
                        ``(B) the right to the release of funds under this
                    subsection and the means by which a request for the
                    funds may be made.
        ``(e) Easements on Inventoried Property.--
                ``(1) In general.--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.
                ``(2) Limitation.--The Secretary shall not establish a
            wetland conservation easement on an inventoried property that--
                        ``(A) was cropland on the date the property entered
                    the inventory of the Secretary; or
                        ``(B) was used for farming at any time during the
                    period--
                                ``(i) beginning on the date that is 5 years
                            before the property entered the inventory of
                            the Secretary; and
                                ``(ii) ending on the date on which the
                            property entered the inventory of the
                            Secretary.
                ``(3) Notification.--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.
                ``(4) Appraised value.--The appraised value of the farm
            shall reflect the value of the land due to the placement of
            wetland conservation easements.

    ``SEC. 3410. CONTRACTS ON LOAN SECURITY PROPERTIES.

        ``(a) Contracts on Loan Security Properties.--Subject to subsection
    (b), the Secretary may enter into a contract related to real property
    for conservation, recreation, or wildlife purposes.
        ``(b) Limitations.--The Secretary may enter into a contract under
    subsection (a) if--
                ``(1) the property is wetland, upland, or highly erodible
            land;
                ``(2) the property is determined by the Secretary to be
            suitable for the purpose involved; and
                ``(3)(A) the property secures a loan made under a law
            administered and held by the Secretary; and
                ``(B) the contract would better enable a qualified borrower
            to repay the loan in a timely manner, as determined by the
            Secretary.
        ``(c) Terms and Conditions.--The terms and conditions specified in
    a contract under subsection (a) shall--
                ``(1) specify the purposes for which the real property may
            be used;
                ``(2) identify any conservation measure to be taken, and
            any recreational and wildlife use to be allowed, with respect
            to the real property; and
                ``(3) 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.
        ``(d) Reduction or Forgiveness of Debt.--
                ``(1) In general.--Subject to this section, the Secretary
            may reduce or forgive the outstanding debt of a borrower--
                        ``(A) 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--
                                ``(i) the number of acres of the real
                            property of the borrower that are subject to
                            the contract; bears to
                                ``(ii) the aggregate number of acres
                            securing the loan; or
                        ``(B) 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--
                                ``(i) the number of acres of the real
                            property of the borrower that are subject to
                            the contract; bears to
                                ``(ii) the aggregate number of acres
                            securing the new loan.
                ``(2) Maximum canceled amount.--The amount canceled or
            treated as prepaid under paragraph (1) shall not exceed--
                        ``(A) in the case of a delinquent loan, the greater
                    of--
                                ``(i) the value of the land on which the
                            contract is entered into; or
                                ``(ii) the difference between--
                                        ``(I) the amount of the outstanding
                                    loan secured by the land; and
                                        ``(II) the value of the land; or
                        ``(B) in the case of a nondelinquent loan, 33
                    percent of the amount of the loan secured by the land.
        ``(e) Consultation With Fish and Wildlife Service.--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--
                ``(1) selecting real property in which the Secretary may
            enter into a contract under this section;
                ``(2) formulating the terms and conditions of the contract;
            and
                ``(3) enforcing the contract.
        ``(f) Enforcement.--The Secretary, and any person or governmental
    entity (including an agency of the Federal Government) designated by
    the Secretary, may enforce a contract entered into by the Secretary
    under this section.

    ``SEC. 3411. DEBT RESTRUCTURING AND LOAN SERVICING.

        ``(a) In General.--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--
                ``(1) 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
                ``(2) to ensure that a borrower is able to continue farming
            operations.
        ``(b) Eligibility.--To be eligible to obtain assistance under
    subsection (a)--
                ``(1) 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);
                ``(2) the borrower shall have acted in good faith with the
            Secretary in connection with the loan as defined in regulations
            issued by the Secretary;
                ``(3) the borrower shall present a preliminary plan to the
            Secretary that contains reasonable assumptions that demonstrate
            that the borrower will be able--
                        ``(A) to meet the necessary family living and farm
                    operating expenses of the borrower; and
                        ``(B) to service all debts of the borrower,
                    including restructured loans; and
                ``(4) 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.
        ``(c) Restructuring Determinations.--
                ``(1) Determination of net recovery.--In determining the
            net recovery from the involuntary liquidation of a loan under
            this section, the Secretary shall calculate--
                        ``(A) the recovery value of the collateral securing
                    the loan, in accordance with paragraph (2); and
                        ``(B) the value of the restructured loan, in
                    accordance with paragraph (3).
                ``(2) Recovery value.--For the purpose of paragraph (1),
            the recovery value of the collateral securing the loan shall be
            based on the difference between--
                        ``(A)(i) the amount of the current appraised value
                    of the interests of the borrower in the property
                    securing the loan; and
                        ``(ii) the value of the interests of the borrower
                    in all other assets that are--
                                ``(I) not essential for necessary family
                            living expenses;
                                ``(II) not essential to the operation of
                            the farm; and
                                ``(III) not exempt from judgment creditors
                            or in a bankruptcy action under Federal or
                            State law;
                        ``(B) the estimated administrative, attorney, and
                    other expenses associated with the liquidation and
                    disposition of the loan and collateral, including--
                                ``(i) the payment of prior liens;
                                ``(ii) 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;
                                ``(iii) resale expenses, such as repairs,
                            commissions, and advertising; and
                                ``(iv) other administrative and attorney
                            costs; and
                        ``(C) 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.
                ``(3) Value of the restructured loan.--
                        ``(A) In general.--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.
                        ``(B) Present value.--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.
                        ``(C) Cash flow margin.--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.
                ``(4) Notification.--Not later than 90 days after receipt
            of a written request for restructuring from the borrower, the
            Secretary shall--
                        ``(A) make the calculations specified in paragraphs
                    (2) and (3);
                        ``(B) notify the borrower in writing of the results
                    of the calculations; and
                        ``(C) provide documentation for the calculations.
                ``(5) Restructuring of loans.--
                        ``(A) In general.--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.
                        ``(B) Restructuring.--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.
                ``(6) Termination of loan obligations.--The obligations of
            a borrower to the Secretary under a loan shall terminate if--
                        ``(A) the borrower satisfies the requirements of
                    paragraphs (1) and (2) of subsection (b);
                        ``(B) the value of the restructured loan is less
                    than the recovery value; and
                        ``(C) 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.
                ``(7) Negotiation of appraisal.--
                        ``(A) In general.--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.
                        ``(B) Independent appraisal.--
                                ``(i) In general.--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.
                                ``(ii) Value of final appraisal.--The
                            average of the 2 appraisals under clause (i)
                            that are closest in value shall become the
                            final appraisal under this paragraph.
                                ``(iii) Cost of appraisal.--The borrower
                            and the Secretary shall each pay \1/2\ of the
                            cost of any independent appraisal.
        ``(d) Principal and Interest Write-down.--
                ``(1) In general.--
                        ``(A) Priority consideration.--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.
                        ``(B) Failure of creditors to agree.--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.
                ``(2) Participation of creditors.--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.
        ``(e) Shared Appreciation Arrangements.--
                ``(1) In general.--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.
                ``(2) Terms.--A shared appreciation agreement shall--
                        ``(A) have a term not to exceed 10 years; and
                        ``(B) 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.
                ``(3) Percentage of recapture.--The amount of the
            appreciation to be recaptured by the Secretary shall be--
                        ``(A) 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
                        ``(B) 50 percent if the recapture occurs during the
                    remainder of the term of the agreement.
                ``(4) Time of recapture.--Recapture shall take place on the
            date that is the earliest of--
                        ``(A) the end of the term of the agreement;
                        ``(B) the conveyance of the real security property;
                        ``(C) the repayment of the loans; or
                        ``(D) the cessation of farming operations by the
                    borrower.
                ``(5) Transfer of title.--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).
                ``(6) Notice of recapture.--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.
                ``(7) Financing of recapture payment.--
                        ``(A) In general.--The Secretary may amortize a
                    recapture payment owed to the Secretary under this
                    subsection.
                        ``(B) Term.--The term of an amortization under this
                    paragraph may not exceed 25 years.
                        ``(C) Interest rate.--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.
                        ``(D) Reamortization.--
                                ``(i) In general.--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--
                                        ``(I) the default is due to
                                    circumstances beyond the control of the
                                    borrower; and
                                        ``(II) the borrower acted in good
                                    faith (as determined by the Secretary)
                                    in attempting to repay the recapture
                                    amount.
                                ``(ii) Limitations.--
                                        ``(I) Term of reamortization.--The
                                    term of a reamortization under this
                                    subparagraph may not exceed 25 years
                                    from the date of the original
                                    amortization agreement.
                                        ``(II) No reduction or principal or
                                    unpaid interest due.--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.
        ``(f) Interest Rates.--Any loan for farm ownership purposes, farm
    operating purposes, or disaster emergency purposes, 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--
                ``(1) the rate of interest on the original loan;
                ``(2) 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
                ``(3) 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.
        ``(g) Period and Effect.--
                ``(1) Period.--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.
                ``(2) Effect.--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.
        ``(h) Prerequisites to Foreclosure or Liquidation.--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--
                ``(1) until the borrower has been given the opportunity to
            appeal the decision; and
                ``(2) if the borrower appeals, the appeals process has been
            completed, and a determination has been made that the loan is
            ineligible for restructuring.
        ``(i) Notice of Ineligibility for Restructuring.--
                ``(1) In general.--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.
                ``(2) Contents.--The notice required under paragraph (1)
            shall contain--
                        ``(A) the determination and the reasons for the
                    determination;
                        ``(B) the computations used to make the
                    determination, including the calculation of the
                    recovery value of the collateral securing the loan; and
                        ``(C) a statement of the right of the borrower to
                    appeal the decision to the appeals division, and to
                    appear before a hearing officer.
        ``(j) Independent Appraisals.--
                ``(1) In general.--An appeal may include a request by the
            borrower for an independent appraisal of any property securing
            the loan.
                ``(2) Process for appraisal.--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.
                ``(3) Cost.--The cost of an appraisal under this subsection
            shall be paid by the borrower.
                ``(4) Result.--The result of an appraisal under this
            subsection shall be considered in any final determination
            concerning the loan.
                ``(5) Copy.--A copy of any appraisal under this subsection
            shall be provided to the borrower.
        ``(k) Only 1 Write-Down or Net Recovery Buy-Out Per Borrower for a
    Loan Made After January 6, 1988.--
                ``(1) In general.--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.
                ``(2) Special rule.--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.
        ``(l) Liquidation of Assets.--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).
        ``(m) Lifetime Limitation on Debt Forgiveness Per Borrower.--The
    Secretary may provide each borrower not more than $300,000 in debt
    forgiveness under this section.

    ``SEC. 3412. RELIEF FOR MOBILIZED MILITARY RESERVISTS FROM CERTAIN
                  AGRICULTURAL LOAN OBLIGATIONS.

        ``(a) Definition of Mobilized Military Reservist.--In this section,
    the term `mobilized military reservist' means an individual who--
                ``(1) 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
                ``(2) 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.
        ``(b) Forgiveness of Interest Payments Due While Borrower Is a
    Mobilized Military Reservist.--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.
        ``(c) Deferral of Principal Payments Due While or After Borrower Is
    a Mobilized Military Reservist.--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.
        ``(d) Nonaccrual of Interest.--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.
        ``(e) Borrower Not Considered To Be Delinquent or Receiving Debt
    Forgiveness.--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.

    ``SEC. 3413. INTEREST RATE REDUCTION PROGRAM.

        ``(a) Establishment of Program.--The Secretary shall establish and
    carry out in accordance with this section an interest rate reduction
    program for any loan guaranteed under this subtitle.
        ``(b) Entering Into Contracts.--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--
                ``(1) the borrower--
                        ``(A) is unable to obtain credit elsewhere;
                        ``(B) is unable to make payments on the loan in a
                    timely manner; and
                        ``(C) 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
                ``(2) 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.
        ``(c) Payments.--
                ``(1) In general.--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.
                ``(2) Limitation.--Payments under paragraph (1) may not
            exceed the cost of reducing the rate by more than 400 basis
            points.
        ``(d) Term.--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.
        ``(e) Condition on Foreclosure.--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.

    ``SEC. 3414. HOMESTEAD PROPERTY.

        ``(a) Definitions.--In this section:
                ``(1) Administrator.--The term `Administrator' means the
            Administrator of the Small Business Administration.
                ``(2) Borrower-owner.--The term `borrower-owner' means--
                        ``(A) 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
                        ``(B) 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.
                ``(3) Farm program loan.--The term `farm program loan'
            means a loan made by the Administrator under the Small Business
            Act (15 U.S.C. 631 et seq.) for any of the purposes authorized
            for loans under chapter 1 or 2.
                ``(4) Homestead property.--The term `homestead property'
            means--
                        ``(A) 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
                        ``(B) not more than 10 acres of adjoining land that
                    is used to maintain the family of the borrower-owner.
        ``(b) Retention of Homestead Property.--
                ``(1) In general.--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--
                        ``(A) the Secretary forecloses or takes into
                    inventory property securing a loan made under this
                    subtitle;
                        ``(B) the Administrator forecloses or takes into
                    inventory property securing a farm program loan made
                    under the Small Business Act (15 U.S.C. 631 et seq.);
                    or
                        ``(C) 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.
                ``(2) Period of occupancy.--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.
        ``(c) Eligibility.--
                ``(1) In general.--To be eligible to occupy homestead
            property, a borrower-owner of a loan made by the Secretary or
            the Administrator shall--
                        ``(A) apply for the occupancy not later than 30
                    days after the property is acquired by the Secretary or
                    Administrator;
                        ``(B) have received from farming operations gross
                    farm income that is reasonably commensurate with--
                                ``(i) the size and location of the farming
                            unit of the borrower-owner; and
                                ``(ii) 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;
                        ``(C) 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);
                        ``(D) 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;
                        ``(E) 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;
                        ``(F) during the period of the occupancy of the
                    homestead property, maintain the property in good
                    condition; and
                        ``(G) meet such other reasonable and necessary
                    terms and conditions as the Secretary may require.
                ``(2) Definition of farming operations.--In subparagraphs
            (B) and (C) of paragraph (1), the term `farming operations'
            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.
                ``(3) Termination of rights.--
                        ``(A) In general.--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.
                        ``(B) Procedure for termination.--In effecting a
                    termination under subparagraph (A), the Secretary
                    shall--
                                ``(i) 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
                                ``(ii) comply with any applicable State and
                            local law governing eviction of a person from
                            residential property.
                ``(4) Rights of borrower-owner.--
                        ``(A) Period of occupancy.--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.
                        ``(B) Right to reacquire.--
                                ``(i) In general.--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.
                                ``(ii) Socially disadvantaged borrower-
                            owner.--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.
                                ``(iii) Independent appraisal.--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.
                                ``(iv) Conduct of appraisal.--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.
                ``(5) Transfer of rights.--
                        ``(A) In general.--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.
                        ``(B) Death or incompetency.--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.
                ``(6) Notification.--Not later than the date of acquisition
            of the property securing a loan made under this subtitle, the
            Secretary shall notify the borrower-owner of the property of
            the availability of homestead protection rights under this
            section.
        ``(d) End of Period of Occupancy.--
                ``(1) In general.--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.
                ``(2) Terms and conditions.--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.
        ``(e) Maximum Payment of Principal.--
                ``(1) In general.--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.
                ``(2) Determination of value.--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.
        ``(f) Title Not Needed To Enter Into Contracts.--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.
        ``(g) State Law Prevails.--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.

    ``SEC. 3415. TRANSFER OF INVENTORY LAND.

        ``(a) In General.--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--
                ``(1) with respect to which the rights of all prior owners
            and operators have expired;
                ``(2) that is eligible to be disposed of in accordance with
            section 3409; and
                ``(3) that--
                        ``(A) has marginal value for agricultural
                    production;
                        ``(B) is environmentally sensitive; or
                        ``(C) has special management importance.
        ``(b) Conditions.--The Secretary may not transfer any property or
    interest in property under subsection (a) unless--
                ``(1) at least 2 public notices are given of the transfer;
                ``(2) if requested, at least 1 public meeting is held prior
            to the transfer; and
                ``(3) 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.

    ``SEC. 3416. TARGET PARTICIPATION RATES.

        ``(a) Establishment.--
                ``(1) In general.--The Secretary shall establish annual
            target participation rates, on a county-wide basis, that shall
            ensure that members of socially disadvantaged groups shall--
                        ``(A) receive loans made or guaranteed under
                    chapter 1; and
                        ``(B) have the opportunity to purchase or lease
                    farmland acquired by the Secretary under this subtitle.
                ``(2) Group population.--Except as provided in paragraph
            (3), in establishing the target rates, the Secretary shall take
            into consideration--
                        ``(A) the portion of the population of the county
                    made up of the socially disadvantaged groups; and
                        ``(B) the availability of inventory farmland in the
                    county.
                ``(3) Gender.--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.
        ``(b) Reservation and Allocation.--
                ``(1) Reservation.--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).
                ``(2) Allocation.--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.
                ``(3) Indian reservations.--In distributing loan funds in
            counties within the boundaries of an Indian reservation, the
            Secretary shall allocate the funds on a reservation-wide basis.
        ``(c) Operating Loans.--
                ``(1) Establishment.--
                        ``(A) In general.--The Secretary shall establish
                    annual target participation rates that shall ensure
                    that socially disadvantaged farmers receive loans made
                    or guaranteed under chapter 2.
                        ``(B) Considerations.--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.
                ``(2) Reservation and allocation.--
                        ``(A) In general.--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.
                        ``(B) Distribution.--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.
                        ``(C) Reallocation of unused funds.--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 subtitle, 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.
        ``(d) Report.--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.
        ``(e) Implementation Consistent With Supreme Court Holding.--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).

    ``SEC. 3417. COMPROMISE OR ADJUSTMENT OF DEBTS OR CLAIMS BY GUARANTEED
                  LENDER.

        ``(a) Loss by Lender.--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--
                ``(1) the outstanding balance of the loan immediately
            before the action; exceeds
                ``(2) the outstanding balance of the loan immediately after
            the action.
        ``(b) Net Present Value of Loan.--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--
                ``(1) the greatest net present value of a loan the borrower
            could reasonably be expected to repay; and
                ``(2) the difference between--
                        ``(A) 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
                        ``(B) 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.
        ``(c) No Limitation on Authority.--This section shall not limit the
    authority of the Secretary to enter into a shared appreciation
    arrangement with a borrower under section 3411(e).

    ``SEC. 3418. WAIVER OF MEDIATION RIGHTS BY BORROWERS.

        ``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.

    ``SEC. 3419. BORROWER TRAINING.

        ``(a) In General.--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.
        ``(b) Contract.--
                ``(1) In general.--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.
                ``(2) Consultation.--The Secretary may consult with the
            chief executive officer of a State concerning the identity of
            the contracting organization and the process for contracting.
        ``(c) Eligibility for Loans.--
                ``(1) In general.--Subject to paragraph (2), to be eligible
            to obtain a direct 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.
                ``(2) Loan conditions.--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 loan under this subtitle.
        ``(d) Guidelines and Curriculum.--The Secretary shall issue
    regulations establishing guidelines and curriculum for the borrower
    training program established under this section.
        ``(e) Payment.--A borrower--
                ``(1) shall pay for training received under this section;
            and
                ``(2) may use funds from operating loans made under chapter
            2 to pay for the training.
        ``(f) Waivers.--
                ``(1) In general.--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.
                ``(2) Criteria.--The Secretary shall establish criteria
            providing for the application of paragraph (1) consistently in
            all counties nationwide.

    ``SEC. 3420. LOAN ASSESSMENTS.

        ``(a) In General.--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.
        ``(b) Determinations.--In evaluating the farming plan and financial
    situation of an applicant under this section, the Secretary shall
    determine--
                ``(1) the amount that the applicant needs to borrow to
            carry out the proposed farming plan;
                ``(2) the rate of interest that the applicant would need to
            be able to cover expenses and build an adequate equity base;
                ``(3) the goals of the proposed farming plan of the
            applicant;
                ``(4) the financial viability of the plan and any changes
            that are necessary to make the plan viable; and
                ``(5) whether assistance is necessary under this subtitle
            and, if so, the amount of the assistance.
        ``(c) Contract.--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.
        ``(d) Review of Loans.--
                ``(1) In general.--Loan assessments conducted under this
            section shall include annual review of direct loans, and
            periodic review (as determined necessary by the Secretary) of
            guaranteed loans, made under this subtitle to assess the
            progress of a borrower in meeting the goals for the farm
            operation.
                ``(2) Contracts.--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).
                ``(3) Problem assessments.--If a borrower is delinquent in
            payments on a direct or guaranteed loan made under this
            subtitle, the Secretary or the contracting entity shall
            determine the cause of, and action necessary to correct, the
            delinquency.
        ``(e) Guidelines.--The Secretary shall issue regulations providing
    guidelines for loan assessments conducted under this section.

    ``SEC. 3421. SUPERVISED CREDIT.

        ``The Secretary shall provide adequate training to employees of the
    Farm Service Agency on credit analysis and financial and farm
    management--
                ``(1) to better acquaint the employees with what
            constitutes adequate financial data on which to base a direct
            or guaranteed loan approval decision; and
                ``(2) to ensure proper supervision of farmer program loans.

    ``SEC. 3422. MARKET PLACEMENT.

        ``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.

    ``SEC. 3423. RECORDKEEPING OF LOANS BY GENDER OF BORROWER.

        ``The Secretary shall classify, by gender, records of applicants
    for loans and loan guarantees under this subtitle.

    ``SEC. 3424. CROP INSURANCE REQUIREMENT.

        ``(a) In General.--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.
        ``(b) Applicable Benefits.--Subsection (a) shall apply to--
                ``(1) a farm ownership loan under section 3102;
                ``(2) an operating loan under section 3202; and
                ``(3) an emergency loan under section 3301.

    ``SEC. 3425. LOAN AND LOAN SERVICING LIMITATIONS.

        ``(a) Delinquent Borrowers Prohibited From Obtaining Direct
    Operating Loans.--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.
        ``(b) Loans Prohibited for Borrowers That Have Received Debt
    Forgiveness.--
                ``(1) Prohibitions.--Except as provided in paragraph (2)--
                        ``(A) 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
                        ``(B) the Secretary may not guarantee a loan under
                    this subtitle to a borrower that has received--
                                ``(i) debt forgiveness after April 4, 1996,
                            on a loan made or guaranteed under this
                            subtitle; or
                                ``(ii) received debt forgiveness on more
                            than 3 occasions on or before April 4, 1996.
                ``(2) Exceptions.--
                        ``(A) In general.--The Secretary may make a direct
                    or guaranteed farm operating loan for paying annual
                    farm operating expenses of a borrower who--
                                ``(i) was restructured with a write-down
                            under section 3411;
                                ``(ii) is current on payments under a
                            confirmed reorganization plan under chapters
                            11, 12, or 13 of title 11 of the United States
                            Code; or
                                ``(iii) 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.).
                        ``(B) Emergency loans.--The Secretary may make an
                    emergency loan under section 3301 to a borrower that--
                                ``(i) on or before April 4, 1996, received
                            not more than 1 debt forgiveness on a loan made
                            or guaranteed under this subtitle; and
                                ``(ii) after April 4, 1996, has not
                            received debt forgiveness on a loan made or
                            guaranteed under this subtitle.
        ``(c) No More Than 1 Debt Forgiveness for a Borrower on a Direct
    Loan.--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.

    ``SEC. 3426. SHORT FORM CERTIFICATION OF FARM PROGRAM BORROWER
                  COMPLIANCE.

        ``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.

    ``SEC. 3427. UNDERWRITING FORMS AND STANDARDS.

        ``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.

    ``SEC. 3428. BEGINNING FARMER INDIVIDUAL DEVELOPMENT ACCOUNTS PILOT
                  PROGRAM.

        ``(a) Definitions.--In this section:
                ``(1) Demonstration program.--The term `demonstration
            program' means a demonstration program carried out by a
            qualified entity under the pilot program established in
            subsection (b)(1).
                ``(2) Eligible participant.--The term `eligible
            participant' means a qualified beginning farmer that--
                        ``(A) lacks significant financial resources or
                    assets; and
                        ``(B) has an income that is less than--
                                ``(i) 80 percent of the median income of
                            the State in which the farmer resides; or
                                ``(ii) 200 percent of the most recent
                            annual Federal Poverty Income Guidelines
                            published by the Department of Health and Human
                            Services for the State.
                ``(3) Individual development account.--The term `individual
            development account' means a savings account described in
            subsection (b)(4)(A).
                ``(4) Qualified entity.--
                        ``(A) In general.--The term `qualified entity'
                    means--
                                ``(i) 1 or more organizations--
                                        ``(I) described in section
                                    501(c)(3) of the Internal Revenue Code
                                    of 1986; and
                                        ``(II) exempt from taxation under
                                    section 501(a) of such Code; or
                                ``(ii) a State, local, or tribal government
                            submitting an application jointly with an
                            organization described in clause (i).
                        ``(B) No prohibition on collaboration.--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.
        ``(b) Pilot Program.--
                ``(1) In general.--The Secretary shall establish a pilot
            program to be known as the `New Farmer Individual Development
            Accounts Pilot Program' under which the Secretary shall work
            through qualified entities to establish demonstration
            programs--
                        ``(A) of at least 5 years in duration; and
                        ``(B) in at least 15 States.
                ``(2) Coordination.--The Secretary shall operate the pilot
            program through and in coordination with the farmer program
            loans of the Farm Service Agency.
                ``(3) Reserve funds.--
                        ``(A) In general.--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.
                        ``(B) Federal funds.--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.
                        ``(C) Use of funds.--Of the funds deposited under
                    subparagraph (B) in the reserve fund established for a
                    demonstration program, the qualified entity carrying
                    out the demonstration program--
                                ``(i) may use up to 10 percent for
                            administrative expenses; and
                                ``(ii) shall use the remainder in making
                            matching awards described in paragraph
                            (4)(B)(ii)(I).
                        ``(D) Interest.--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.
                        ``(E) Guidance.--The Secretary shall issue guidance
                    regarding the investment requirements of reserve funds
                    established under this paragraph.
                        ``(F) Reversion.--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--
                                ``(i) the amount of Federal funds deposited
                            in the reserve fund under subparagraph (B) that
                            were not used for administrative expenses;
                            divided by
                                ``(ii) the total amount of funds deposited
                            in the reserve fund.
                ``(4) Individual development accounts.--
                        ``(A) In general.--A qualified entity receiving a
                    grant under this section shall establish and administer
                    individual development accounts for eligible
                    participants.
                        ``(B) Contract requirements.--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--
                                ``(i) the eligible participant agrees--
                                        ``(I) 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;
                                        ``(II) to use the funds described
                                    in subclause (I) only for 1 or more
                                    eligible expenditures described in
                                    paragraph (5)(A); and
                                        ``(III) to complete financial
                                    training; and
                                ``(ii) the qualified entity agrees--
                                        ``(I) 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
                                        ``(II) with uses of funds proposed
                                    by the eligible participant.
                        ``(C) Limitation.--
                                ``(i) In general.--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.
                                ``(ii) Treatment of amount.--An amount
                            provided under clause (i) shall not be
                            considered to be a gift or loan for mortgage
                            purposes.
                ``(5) Eligible expenditures.--
                        ``(A) In general.--An eligible expenditure
                    described in this subparagraph is an expenditure--
                                ``(i) to purchase farmland or make a down
                            payment on an accepted purchase offer for
                            farmland;
                                ``(ii) to make mortgage payments on
                            farmland purchased pursuant to clause (i), for
                            up to 180 days after the date of the purchase;
                                ``(iii) to purchase breeding stock, fruit
                            or nut trees, or trees to harvest for timber;
                            and
                                ``(iv) for other similar expenditures, as
                            determined by the Secretary.
                        ``(B) Timing.--
                                ``(i) In general.--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.
                                ``(ii) Unexpended funds.--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.
        ``(c) Applications.--
                ``(1) In general.--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.
                ``(2) Criteria.--In considering whether to approve an
            application to carry out a demonstration program under this
            section, the Secretary shall assess--
                        ``(A) the degree to which the demonstration program
                    described in the application is likely to aid eligible
                    participants in successfully pursuing new farming
                    opportunities;
                        ``(B) the experience and ability of the qualified
                    entity to responsibly administer the demonstration
                    program;
                        ``(C) 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;
                        ``(D) 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;
                        ``(E) the adequacy of the plan of the qualified
                    entity to provide information relevant to an evaluation
                    of the demonstration program; and
                        ``(F) such other factors as the Secretary considers
                    to be appropriate.
                ``(3) Preferences.--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--
                        ``(A) a track record of serving clients targeted by
                    the program, including, as appropriate, socially
                    disadvantaged farmers; and
                        ``(B) expertise in dealing with financial
                    management aspects of farming.
                ``(4) Approval.--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.
                ``(5) Term of authority.--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).
        ``(d) Grant Authority.--
                ``(1) In general.--The Secretary shall make a grant to a
            qualified entity authorized to carry out a demonstration
            program under this section.
                ``(2) Maximum amount of grants.--The aggregate amount of
            grant funds provided to a demonstration program carried out
            under this section shall not exceed $250,000.
                ``(3) Timing of grant payments.--The Secretary shall pay
            the amounts awarded under a grant made under this section--
                        ``(A) on the awarding of the grant; or
                        ``(B) pursuant to such payment plan as the
                    qualified entity may specify.
        ``(e) Reports.--
                ``(1) Annual progress reports.--
                        ``(A) In general.--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--
                                ``(i) an evaluation of the progress of the
                            demonstration program;
                                ``(ii) information about the demonstration
                            program, including the eligible participants
                            and the individual development accounts that
                            have been established; and
                                ``(iii) such other information as the
                            Secretary may require.
                        ``(B) Submission of reports.--A qualified entity
                    shall submit each report required under subparagraph
                    (A) to the Secretary.
                ``(2) Reports by the secretary.--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.
        ``(f) Annual Review.--The Secretary may conduct an annual review of
    the financial records of a qualified entity--
                ``(1) to assess the financial soundness of the qualified
            entity; and
                ``(2) to determine the use of grant funds made available to
            the qualified entity under this section.
        ``(g) Regulations.--In carrying out this section, the Secretary may
    promulgate regulations to ensure that the program includes provisions
    for--
                ``(1) the termination of demonstration programs;
                ``(2) control of the reserve funds in the case of such a
            termination;
                ``(3) transfer of demonstration programs to other qualified
            entities; and
                ``(4) 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.
        ``(h) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $5,000,000 for each of fiscal
    years 2013 through 2018.

    ``SEC. 3429. FARMER LOAN PILOT PROJECTS.

        ``(a) In General.--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
        ``(b) Notification.--The Secretary shall--
                ``(1) 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
                ``(2) consider any recommendations or feedback provided to
            the Secretary in response to the notice provided under
            paragraph (1).

    ``SEC. 3430. PROHIBITION ON USE OF LOANS FOR CERTAIN PURPOSES.

        ``(a) In General.--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.
        ``(b) Prior Activity.--Subsection (a) does not apply in the case
    of--
                ``(1) an activity related to the maintenance of a
            previously converted wetland; or
                ``(2) an activity that had already commenced before
            November 28, 1990.
        ``(c) Exception.--This section shall not apply to a loan made or
    guaranteed under this subtitle for a utility line.

    ``SEC. 3431. AUTHORIZATION OF APPROPRIATIONS AND ALLOCATION OF FUNDS.

        ``(a) Authorization for Loans.--
                ``(1) In general.--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 2013 through 2018, of which, for each fiscal
            year--
                        ``(A) $1,200,000,000 shall be for direct loans, of
                    which--
                                ``(i) $350,000,000 shall be for farm
                            ownership loans; and
                                ``(ii) $850,000,000 shall be for operating
                            loans; and
                        ``(B) $3,026,000,000 shall be for guaranteed loans,
                    of which--
                                ``(i) $1,000,000,000 shall be for
                            guarantees of farm ownership loans; and
                                ``(ii) $2,026,000,000 shall be for
                            guarantees of operating loans.
                ``(2) Beginning farmers.--
                        ``(A) Direct loans.--
                                ``(i) Farm ownership loans.--
                                        ``(I) In general.--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.
                                        ``(II) Down payment loans; joint
                                    financing arrangements.--Of the amounts
                                    reserved for a fiscal year under
                                    subclause (I), the Secretary shall
                                    reserve an amount not less than \2/3\
                                    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.
                                ``(ii) Operating loans.--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 2013 through 2018, an amount that
                            is not less than 50 percent of the total
                            amount.
                                ``(iii) Funds reserved until september 1.--
                            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.
                        ``(B) Guaranteed loans.--
                                ``(i) Farm ownership loans.--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.
                                ``(ii) Operating loans.--Of the amounts
                            made available under paragraph (1) for
                            guarantees of operating loans, the Secretary
                            shall reserve 40 percent for qualified
                            beginning farmers.
                                ``(iii) Funds reserved until april 1.--
                            Funds reserved for qualified beginning farmers
                            under this subparagraph for a fiscal year shall
                            be reserved only until April 1 of the fiscal
                            year.
                        ``(C) Reserved funds for all qualified beginning
                    farmers.--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.
                ``(3) Transfer for down payment loans.--
                        ``(A) In general.--Subject to subparagraph (B)--
                                ``(i) 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
                                ``(ii) 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.
                        ``(B) Limitation.--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.
                ``(4) Transfer for credit sales of farm inventory
            property.--
                        ``(A) In general.--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.
                        ``(B) Supplemental appropriations.--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.
                        ``(C) Limitation.--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.
                ``(5) Availability of funds.--Funds made available to carry
            out this subtitle shall remain available until expended.
        ``(b) Cost Projections.--
                ``(1) In general.--The Secretary shall develop long-term
            cost projections for loan program authorizations required under
            subsection (a).
                ``(2) Analysis.--Each projection under paragraph (1) shall
            include analyses of--
                        ``(A) the long-term costs of the lending levels
                    that the Secretary requests to be authorized under
                    subsection (a); and
                        ``(B) 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.
                ``(3) Submission to congress.--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.
        ``(c) Low-Income, Limited-Resource Borrowers.--
                ``(1) Reserve.--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.
                ``(2) Notification.--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.''.

                           Subtitle B--Miscellaneous

    SEC. 5101. STATE AGRICULTURAL MEDIATION PROGRAMS.

        Section 506 of the Agricultural Credit Act of 1987 (7 U.S.C. 5106)
    is amended by striking ``2015'' and inserting ``2018''.

    SEC. 5102. LOANS TO PURCHASERS OF HIGHLY FRACTIONATED LAND.

        (a) In General.--The first sentence of Public Law 91-229 (25 U.S.C.
    488) is amended--
                (1) in subsection (a), in the first sentence, by striking
            ``loans from'' and all that follows through ``1929)'' and
            inserting ``direct loans in a manner consistent with direct
            loans pursuant to chapter 4 of subtitle A of the Consolidated
            Farm and Rural Development Act'';
                (2) in subsection (b)(1)--
                        (A) by striking ``pursuant to section 205(c) of the
                    Indian Land Consolidation Act (25 U.S.C. 2204(c))'';
                    and
                        (B) by inserting ``or to intermediaries in order to
                    establish revolving loan funds for the purchase of
                    highly fractionated land under that section'' before
                    the period at the end; and
                (3) by adding at the end the following:
        ``(c) Consultation Required.--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.''.

    SEC. 5103. REMOVAL OF DUPLICATIVE APPRAISALS.

        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.

    SEC. 5104. COMPENSATION DISCLOSURE BY FARM CREDIT SYSTEM INSTITUTIONS.

        (a) Findings.--Congress finds that --
                (1) the reasonable disclosure to stockholders by Farm
            Credit System institutions regarding the compensation of Farm
            Credit System institution senior officers is beneficial to
            stockholders' understanding of the operation of their
            institutions;
                (2) transparency regarding compensation practices
            reinforces the cooperative nature of Farm Credit System
            institutions;
                (3) the unique cooperative structure of the Farm Credit
            System should be considered when promulgating rules;
                (4) the participation of stockholders in the election of
            the boards of directors of Farm Credit System institutions
            provides stockholders the opportunity to participate in the
            management of their institutions;
                (5) as representatives of stockholders, the boards of
            directors of Farm Credit System institutions importantly
            establish and oversee the compensation practices of Farm Credit
            System institutions to ensure the safe and sound operation of
            those institutions; and
                (6) any regulation should strengthen and not hinder the
            ability of Farm Credit System boards of directors to oversee
            compensation practices.
        (b) Implementation.--Not later than 60 days after the date of
    enactment of this Act, the Farm Credit Administration shall review its
    rules to reflect Congressional intent that a primary responsibility of
    the boards of directors of Farm Credit System institutions, as elected
    representatives of their stockholders, is to oversee compensation
    practices.

                          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.

        Title III of the Agricultural Act of 1961 (7 U.S.C. 1921 et seq.)
    is amended to read as follows:

                        ``TITLE III--AGRICULTURAL CREDIT

    ``SEC. 3001. SHORT TITLE; TABLE OF CONTENTS.

        ``(a) Short Title.--This title may be cited as the `Consolidated
    Farm and Rural Development Act'.
        ``(b) Table of Contents.--The table of contents of this title is as
    follows:

                        ``TITLE III--AGRICULTURAL CREDIT

    ``Sec. 3001. Short title; table of contents.
    ``Sec. 3002. Definitions.

          ``Subtitle A--Farmer Loans, Servicing, and Other Assistance

                       ``Chapter 1--Farm Ownership Loans

    ``Sec. 3101. Farm ownership loans.
    ``Sec. 3102. Purposes of loans.
    ``Sec. 3103. Conservation loan and loan guarantee program.
    ``Sec. 3104. Loan maximums.
    ``Sec. 3105. Repayment requirements for farm ownership loans.
    ``Sec. 3106. Limited-resource loans.
    ``Sec. 3107. Downpayment loan program.
    ``Sec. 3108. Beginning farmer and socially disadvantaged farmer
                                contract land sales program.

                          ``Chapter 2--Operating Loans

    ``Sec. 3201. Operating loans.
    ``Sec. 3202. Purposes of loans.
    ``Sec. 3203. Restrictions on loans.
    ``Sec. 3204. Terms of loans.

                          ``Chapter 3--Emergency Loans

    ``Sec. 3301. Emergency loans.
    ``Sec. 3302. Purposes of loans.
    ``Sec. 3303. Terms of loans.
    ``Sec. 3304. Production losses.

                  ``Chapter 4--General Farmer Loan Provisions

    ``Sec. 3401. Agricultural Credit Insurance Fund.
    ``Sec. 3402. Guaranteed farmer loans.
    ``Sec. 3403. Provision of information to borrowers.
    ``Sec. 3404. Notice of loan service programs.
    ``Sec. 3405. Planting and production history guidelines.
    ``Sec. 3406. Special conditions and limitations on loans.
    ``Sec. 3407. Graduation of borrowers.
    ``Sec. 3408. Debt adjustment and credit counseling.
    ``Sec. 3409. Security servicing.
    ``Sec. 3410. Contracts on loan security properties.
    ``Sec. 3411. Debt restructuring and loan servicing.
    ``Sec. 3412. Relief for mobilized military reservists from certain
                                agricultural loan obligations.
    ``Sec. 3413. Interest rate reduction program.
    ``Sec. 3414. Homestead property.
    ``Sec. 3415. Transfer of inventory land.
    ``Sec. 3416. Target participation rates.
    ``Sec. 3417. Compromise or adjustment of debts or claims by guaranteed
                                lender.
    ``Sec. 3418. Waiver of mediation rights by borrowers.
    ``Sec. 3419. Borrower training.
    ``Sec. 3420. Loan assessments.
    ``Sec. 3421. Supervised credit.
    ``Sec. 3422. Market placement.
    ``Sec. 3423. Recordkeeping of loans by gender of borrower.
    ``Sec. 3424. Crop insurance requirement.
    ``Sec. 3425. Loan and loan servicing limitations.
    ``Sec. 3426. Short form certification of farm program borrower
                                compliance.
    ``Sec. 3427. Underwriting forms and standards.
    ``Sec. 3428. Beginning farmer individual development accounts pilot
                                program.
    ``Sec. 3429. Farmer loan pilot projects.
    ``Sec. 3430. Prohibition on use of loans for certain purposes.
    ``Sec. 3431. Authorization of appropriations and allocation of funds.

                        ``Subtitle B--Rural Development

                     ``Chapter 1--Rural Community Programs

    ``Sec. 3501. Water and waste disposal loans, loan guarantees, and
                                grants.
    ``Sec. 3502. Community facilities loans, loan guarantees, and grants.
    ``Sec. 3503. Health care services.

            ``Chapter 2--Rural Business and Cooperative Development

    ``Sec. 3601. Business programs.
    ``Sec. 3602. Rural Business Investment Program.

               ``Chapter 3--General Rural Development Provisions

    ``Sec. 3701. General provisions for loans and grants.
    ``Sec. 3702. Strategic economic and community development.
    ``Sec. 3703. Guaranteed rural development loans.
    ``Sec. 3704. Rural Development Insurance Fund.
    ``Sec. 3705. Rural economic area partnership zones.
    ``Sec. 3706. Streamlining applications and improving accessibility of
                                rural development programs.
    ``Sec. 3707. State Rural Development Partnership.

                     ``Chapter 4--Delta Regional Authority

    ``Sec. 3801. Definitions.
    ``Sec. 3802. Delta Regional Authority.
    ``Sec. 3803. Economic and community development grants.
    ``Sec. 3804. Supplements to Federal grant programs.
    ``Sec. 3805. Local development districts; certification and
                                administrative expenses.
    ``Sec. 3806. Distressed counties and areas and nondistressed counties.
    ``Sec. 3807. Development planning process.
    ``Sec. 3808. Program development criteria.
    ``Sec. 3809. Approval of development plans and projects.
    ``Sec. 3810. Consent of States.
    ``Sec. 3811. Records.
    ``Sec. 3812. Annual report.
    ``Sec. 3813. Authorization of appropriations.
    ``Sec. 3814. Termination of authority.

             ``Chapter 5--Northern Great Plains Regional Authority

    ``Sec. 3821. Definitions.
    ``Sec. 3822. Northern Great Plains Regional Authority.
    ``Sec. 3823. Interstate cooperation for economic opportunity and
                                efficiency.
    ``Sec. 3824. Economic and community development grants.
    ``Sec. 3825. Supplements to Federal grant programs.
    ``Sec. 3826. Multistate and local development districts and
                                organizations and Northern Great Plains
                                Inc.
    ``Sec. 3827. Distressed counties and areas and nondistressed counties.
    ``Sec. 3828. Development planning process.
    ``Sec. 3829. Program development criteria.
    ``Sec. 3830. Approval of development plans and projects.
    ``Sec. 3831. Consent of States.
    ``Sec. 3832. Records.
    ``Sec. 3833. Annual report.
    ``Sec. 3834. Authorization of appropriations.
    ``Sec. 3835. Termination of authority.

                        ``Subtitle C--General Provisions

    ``Sec. 3901. Full faith and credit.
    ``Sec. 3902. Purchase and sale of guaranteed portions of loans.
    ``Sec. 3903. Administration.
    ``Sec. 3904. Loan moratorium and policy on foreclosures.
    ``Sec. 3905. Oil and gas royalty payments on loans.
    ``Sec. 3906. Taxation.
    ``Sec. 3907. Conflicts of interest.
    ``Sec. 3908. Loan summary statements.
    ``Sec. 3909. Certified lenders program.
    ``Sec. 3910. Loans to resident aliens.
    ``Sec. 3911. Expedited clearing of title to inventory property.
    ``Sec. 3912. Transfer of land to Secretary.
    ``Sec. 3913. Competitive sourcing limitations.
    ``Sec. 3914. Regulations.

    ``SEC. 3002. DEFINITIONS.

        ``In this title (unless the context otherwise requires):
                ``(1) Able to obtain credit elsewhere.--The term `able to
            obtain credit elsewhere' 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.
                ``(2) Agricultural credit insurance fund.--The term
            `Agricultural Credit Insurance Fund' means the fund established
            under section 3401.
                ``(3) Approved lender.--The term `approved lender' means--
                        ``(A) 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
                        ``(B) a lender certified under section 3909.
                ``(4) Aquaculture.--The term `aquaculture' 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.
                ``(5) Beginning farmer.--The term `beginning farmer' has
            the meaning given the term by the Secretary.
                ``(6) Borrower.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), the term `borrower' 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.
                        ``(B) Exclusions.--The term `borrower' does not
                    include an individual or entity all of whose loans and
                    accounts have been foreclosed on or liquidated,
                    voluntarily or otherwise.
                ``(7) County committee.--The term `county committee' 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)).
                ``(8) Debt forgiveness.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), the term `debt forgiveness' means
                    reducing or terminating a loan made or guaranteed under
                    this title, in a manner that results in a loss to the
                    Secretary, through--
                                ``(i) writing down or writing off a loan
                            under section 3411;
                                ``(ii) compromising, adjusting, reducing,
                            or charging-off a debt or claim under section
                            3903;
                                ``(iii) paying a loss on a guaranteed loan
                            under this title; or
                                ``(iv) discharging a debt as a result of
                            bankruptcy.
                        ``(B) Loan restructuring.--The term `debt
                    forgiveness' does not include consolidation,
                    rescheduling, reamortization, or deferral.
                ``(9) Department.--The term `Department' means the
            Department of Agriculture.
                ``(10) Direct loan.--The term `direct loan' means a loan
            made by the Secretary from appropriated funds.
                ``(11) Entity.--The term `entity' means a corporation, farm
            cooperative, partnership, joint operation, governmental entity,
            or other legal organization, as determined by the Secretary.
                ``(12) Farm.--The term `farm' means an operation involved
            in--
                        ``(A) the production of an agricultural commodity;
                        ``(B) ranching; or
                        ``(C) aquaculture, in a controlled environment.
                ``(13) Farmer.--The term `farmer' means an individual or
            entity engaged primarily and directly in--
                        ``(A) the production of an agricultural commodity;
                        ``(B) ranching; or
                        ``(C) aquaculture, in a controlled environment.
                ``(14) Farmer program loan.--The term `farmer program loan'
            means--
                        ``(A) a farm ownership loan under section 3101;
                        ``(B) a conservation loan under section 3103;
                        ``(C) an operating loan under section 3201;
                        ``(D) an emergency loan under section 3301;
                        ``(E) 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);
                        ``(F) a loan for a farm service building under
                    section 502 of the Housing Act of 1949 (42 U.S.C.
                    1472);
                        ``(G) 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));
                        ``(H) 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
                        ``(I) any other loan described in section
                    343(a)(10) of this title (as it existed before the
                    amendment made by section 2 of the Agriculture Reform,
                    Food, and Jobs Act of 2013) that is outstanding on the
                    date of enactment of that Act.
                ``(15) Farm service agency.--The term `Farm Service Agency'
            means the offices of the Farm Service Agency to which the
            Secretary delegates responsibility to carry out this title.
                ``(16) Governmental entity.--The term `governmental entity'
            means any agency of a State or a unit of local government of a
            State, or subdivision thereof.
                ``(17) Guarantee.--The term `guarantee' means guaranteeing
            the payment of a loan originated, held, and serviced by a
            private financial agency, or lender, approved by the Secretary.
                ``(18) Highly erodible land.--The term `highly erodible
            land' has the meaning given the term in section 1201(a) of the
            Food Security Act of 1985 (16 U.S.C. 3801(a)).
                ``(19) Homestead retention.--The term `homestead retention'
            means homestead retention as authorized under section 3414.
                ``(20) Indian tribe.--The term `Indian tribe' means a
            Federal or 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)).
                ``(21) Loan service program.--The term `loan service
            program' means, with respect to a farmer program loan borrower,
            a primary loan service program or a homestead retention
            program.
                ``(22) Natural or major disaster or emergency.--The term
            `natural or major disaster or emergency' means--
                        ``(A) a disaster due to nonmanmade causes declared
                    by the Secretary; or
                        ``(B) 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.).
                ``(23) Primary loan service program.--The term `primary
            loan service program' means, with respect to a farmer program
            loan--
                        ``(A) loan consolidation, rescheduling, or
                    reamortization;
                        ``(B) interest rate reduction, including the use of
                    the limited resource program;
                        ``(C) loan restructuring, including deferral, set
                    aside, or writing down of the principal or accumulated
                    interest charges, or both, of the loan; or
                        ``(D) any combination of actions described in
                    subparagraphs (A), (B), and (C).
                ``(24) Prime farmland.--The term `prime farmland' 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)).
                ``(25) Project.--For purposes of section 3501, the term
            `project' includes a facility providing central service or a
            facility serving an individual property, or both.
                ``(26) Qualified beginning farmer.--The term `qualified
            beginning farmer' means an applicant, regardless of whether the
            applicant is participating in a program under section 3107,
            who--
                        ``(A) is eligible for assistance under subtitle A;
                        ``(B) has not operated a farm, or has operated a
                    farm for not more than 10 years;
                        ``(C) 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;
                        ``(D) in the case of a farmer who is the owner and
                    operator of a farm--
                                ``(i) in the case of a loan made to an
                            individual, individually or with the immediate
                            family of the applicant--
                                        ``(I) materially and substantially
                                    participates in the operation of the
                                    farm; and
                                        ``(II) 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
                                ``(ii)(I) 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
                                ``(II) in the case of a loan made to a
                            corporation, has stockholders who all qualify
                            individually as beginning farmers;
                        ``(E) in the case of an applicant seeking to become
                    an owner and operator of a farm--
                                ``(i) in the case of a loan made to an
                            individual, individually or with the immediate
                            family of the applicant, will--
                                        ``(I) materially and substantially
                                    participate in the operation of the
                                    farm; and
                                        ``(II) 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
                                ``(ii)(I) 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
                                ``(II) in the case of a loan made to a
                            corporation, has stockholders who will all
                            qualify individually as beginning farmers;
                        ``(F) agrees to participate in such loan
                    assessment, borrower training, and financial management
                    programs as the Secretary may require;
                        ``(G)(i) does not own farm land; or
                        ``(ii) 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
                        ``(H) 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.
                ``(27) Recreational purpose.--For purposes of section 3410,
            the term `recreational purpose' has the meaning provided by the
            Secretary, but shall include hunting.
                ``(28) Rural and rural area.--
                        ``(A) In general.--Subject to any determination
                    made under subparagraph (B), the terms `rural' and
                    `rural area' mean any area other than--
                                ``(i) a city or town that has a population
                            of greater than 50,000 inhabitants; and
                                ``(ii) any urbanized area contiguous and
                            adjacent to a city or town described in clause
                            (i).
                        ``(B) Determination of areas rural in character.--
                                ``(i) In general.--If part of an area
                            described in subparagraph (A)(ii) was eligible
                            under the definitions of the terms `rural' and
                            `rural area' in section 343 (as in effect on
                            the day before the date of enactment of the
                            Agriculture Reform, Food, and Jobs Act of 2013)
                            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 `Under Secretary'), determines the area
                            is no longer rural, based on the criteria
                            described in clause (iii).
                                ``(ii) Other areas.--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).
                                ``(iii) Criteria.--In making a
                            determination under clause (i), the Under
                            Secretary shall consider--
                                        ``(I) population density;
                                        ``(II) economic conditions,
                                    favoring a rural determination for
                                    areas facing--
                                                ``(aa) chronic unemployment
                                            in excess of statewide
                                            averages;
                                                ``(bb) sudden loss of
                                            employment from natural
                                            disaster or the loss of a
                                            significant employer in the
                                            area; or
                                                ``(cc) chronic poverty
                                            demonstrated at the census
                                            block or county level compared
                                            to statewide median household
                                            income; and
                                        ``(III) commuting patterns,
                                    favoring a rural determination for
                                    areas that can demonstrate higher
                                    proportions of the population living
                                    and working in the area.
                                ``(iv) Administration.--In carrying out
                            this subparagraph, the Under Secretary shall--
                                        ``(I) not delegate the authority to
                                    carry out this subparagraph;
                                        ``(II) not make a determination
                                    under clause (i) until the date that is
                                    3 years after the date of enactment of
                                    the Agriculture Reform, Food, and Jobs
                                    Act of 2013;
                                        ``(III) consult with the applicable
                                    rural development State or regional
                                    director of the Department and the
                                    Governor of the respective State;
                                        ``(IV) provide an opportunity to
                                    appeal to the Under Secretary a
                                    determination made under this
                                    subparagraph;
                                        ``(V) 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;
                                        ``(VI) 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
                                        ``(VII) 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.
                                ``(v) Hawaii and puerto rico.--
                            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.
                        ``(C) Exclusions.--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.
                ``(29) Seasoned direct loan borrower.--The term `seasoned
            direct loan borrower' means a borrower who could reasonably be
            expected to qualify for commercial credit using criteria
            determined by the Secretary.
                ``(30) Secretary.--The term `Secretary' means the Secretary
            of Agriculture.
                ``(31) Socially disadvantaged farmer.--The term `socially
            disadvantaged farmer' means a farmer who is a member of a
            socially disadvantaged group.
                ``(32) Socially disadvantaged group.--The term `socially
            disadvantaged group' 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.
                ``(33) Solar energy.--The term `solar energy' 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.).
                ``(34) State.--The term `State' means--
                        ``(A) 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
                        ``(B) 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.
                ``(35) State beginning farmer program.--The term `State
            beginning farmer program' means any program that is--
                        ``(A) carried out by, or under contract with, a
                    State; and
                        ``(B) designed to assist qualified beginning
                    farmers in obtaining the financial assistance necessary
                    to enter agriculture and establish viable farming
                    operations.
                ``(36) Veteran.--The term `veteran' has the meaning given
            the term in section 101 of title 38, United States Code.
                ``(37) Wetland.--The term `wetland' has the meaning given
            the term in section 1201(a) of the Food Security Act of 1985
            (16 U.S.C. 3801(a)).
                ``(38) Wildlife.--The term `wildlife' means fish or
            wildlife (as defined in section 2(a) of the Lacey Act
            Amendments of 1981 (16 U.S.C. 3371(a))).

                        ``Subtitle B--Rural Development

                     ``CHAPTER 1--RURAL COMMUNITY PROGRAMS

    ``SEC. 3501. WATER AND WASTE DISPOSAL LOANS, LOAN GUARANTEES, AND
                  GRANTS.

        ``(a) In General.--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--
                ``(1) the development, storage, treatment, purification, or
            distribution of water or the collection, treatment, or disposal
            of waste; and
                ``(2) financial assistance and other aid in the planning of
            projects for purposes described in paragraph (1).
        ``(b) Eligible Entities.--Entities eligible for assistance
    described in subsection (a) are--
                ``(1) associations (including corporations not operated for
            profit);
                ``(2) Indian tribes;
                ``(3) public and quasi-public agencies; and
                ``(4) 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.
        ``(c) Loan and Loan Guarantee Requirements.--In connection with
    loans made or guaranteed under this section, the Secretary shall
    require the applicant--
                ``(1) to certify in writing, and the Secretary shall
            determine, that the applicant is unable to obtain 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
                ``(2) to furnish an appropriate written financial
            statement.
        ``(d) Grant Amounts.--
                ``(1) Maximum.--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.
                ``(2) Grant rate.--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--
                        ``(A) lower community population;
                        ``(B) higher rates of outmigration; and
                        ``(C) lower income levels.
                ``(3) Local share requirements.--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.
        ``(e) Special Grants.--
                ``(1) Revolving funds for financing water and wastewater
            projects.--
                        ``(A) In general.--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--
                                ``(i) predevelopment costs associated with
                            proposed water and wastewater projects or with
                            existing water and wastewater systems; and
                                ``(ii) 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.
                        ``(B) Maximum amount of financing.--The amount of
                    financing made to an eligible entity under this
                    paragraph shall not exceed--
                                ``(i) $100,000 for costs described in
                            subparagraph (A)(i); and
                                ``(ii) $100,000 for costs described in
                            subparagraph (A)(ii).
                        ``(C) Term.--The term of financing provided to an
                    eligible entity under this paragraph shall not exceed
                    10 years.
                        ``(D) Administration.--The Secretary shall limit
                    the amount of grant funds that may be used by a grant
                    recipient for administrative costs incurred under this
                    paragraph.
                        ``(E) Annual report.--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.
                        ``(F) Authorization of appropriations.--There is
                    authorized to be appropriated to carry out this
                    paragraph $30,000,000 for each of fiscal years 2014
                    through 2018.
                ``(2) Emergency and imminent community water assistance
            program.--
                        ``(A) In general.--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--
                                ``(i) 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
                                ``(ii) when repairs, partial replacement,
                            or significant maintenance efforts on
                            established water systems would remedy--
                                        ``(I) an acute or imminent shortage
                                    of quality water; or
                                        ``(II) a significant or imminent
                                    decline in the quantity or quality of
                                    water that is available.
                        ``(B) Priority.--In carrying out subparagraph (A),
                    the Secretary shall--
                                ``(i) give priority to projects described
                            in subparagraph (A)(i); and
                                ``(ii) provide at least 70 percent of all
                            grants under this paragraph to those projects.
                        ``(C) Eligibility.--To be eligible to obtain a
                    grant under this paragraph, an applicant shall--
                                ``(i) be a public or private nonprofit
                            entity; and
                                ``(ii) 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.
                        ``(D) Uses.--
                                ``(i) In general.--Grants made under this
                            paragraph may be used--
                                        ``(I) for waterline extensions from
                                    existing systems, laying of new
                                    waterlines, repairs, significant
                                    maintenance, digging of new wells,
                                    equipment replacement, and hook and tap
                                    fees;
                                        ``(II) for any other appropriate
                                    purpose associated with developing
                                    sources of, treating, storing, or
                                    distributing water;
                                        ``(III) 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
                                        ``(IV) to provide potable water to
                                    communities through other means.
                                ``(ii) Joint proposals.--
                                        ``(I) In general.--Subject to the
                                    restrictions in subparagraph (E),
                                    nothing in this paragraph precludes
                                    rural communities from submitting joint
                                    proposals for emergency water
                                    assistance.
                                        ``(II) Consideration of
                                    restrictions.--The restrictions in
                                    subparagraph (E) shall be considered in
                                    the aggregate, depending on the number
                                    of communities involved.
                        ``(E) Restrictions.--
                                ``(i) Maximum income.--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.
                                ``(ii) Set-aside for smaller communities.--
                            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.
                        ``(F) Maximum grants.--Grants made under this
                    paragraph may not exceed--
                                ``(i) in the case of each grant made under
                            subparagraph (A)(i), $500,000; and
                                ``(ii) in the case of each grant made under
                            subparagraph (A)(ii), $150,000.
                        ``(G) Full funding.--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.
                        ``(H) Application.--
                                ``(i) Nationally competitive application
                            process.--
                                        ``(I) In general.--The Secretary
                                    shall develop a nationally competitive
                                    application process to award grants
                                    under this paragraph.
                                        ``(II) Requirements.--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.
                                ``(ii) Timing of review of applications.--
                                        ``(I) Simplified application.--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.
                                        ``(II) Priority review.--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.
                                        ``(III) Timing.--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.
                        ``(I) Funding.--
                                ``(i) Reservation.--
                                        ``(I) In general.--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.
                                        ``(II) Release.--Funds reserved
                                    under subclause (I) for a fiscal year
                                    shall be reserved only until July 1 of
                                    the fiscal year.
                                ``(ii) Authorization of appropriations.--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 2014 through 2018.
                ``(3) Water and waste facility loans and grants to
            alleviate health risks.--
                        ``(A) Definition of cooperative.--In this
                    paragraph, the term `cooperative' means a cooperative
                    formed specifically for the purpose of the
                    installation, expansion, improvement, or operation of
                    water supply or waste disposal facilities or systems.
                        ``(B) Loans and grants to persons other than
                    individuals.--
                                ``(i) In general.--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--
                                        ``(I) rural water supply
                                    corporations, cooperatives, or similar
                                    entities;
                                        ``(II) Indian tribes on Federal or
                                    State reservations and other federally
                                    recognized Indian tribes;
                                        ``(III) rural or native villages in
                                    the State of Alaska;
                                        ``(IV) native tribal health
                                    consortiums;
                                        ``(V) public agencies; and
                                        ``(VI) Native Hawaiian Home Lands.
                                ``(ii) Eligible projects.--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--
                                        ``(I) water supply systems; or
                                        ``(II) waste disposal facilities.
                                ``(iii) Matching requirements.--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.
                                ``(iv) Certain areas targeted.--
                                        ``(I) In general.--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--
                                                ``(aa) 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
                                                ``(bb) 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.
                                        ``(II) Exceptions.--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--
                                                ``(aa) a rural area that
                                            was recognized as a colonia as
                                            of October 1, 1989; or
                                                ``(bb) an area described
                                            under subclause (II), (III), or
                                            (VI) of clause (i).
                        ``(C) Loans and grants to individuals.--
                                ``(i) In general.--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.
                                ``(ii) Interest.--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.
                                ``(iii) Amortization.--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.
                                ``(iv) Manner in which loans and grants are
                            to be made.--Loans and grants to individuals
                            under clause (i) shall be made--
                                        ``(I) directly to the individuals
                                    by the Secretary; or
                                        ``(II) 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.
                        ``(D) Preference.--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.
                        ``(E) Relationship to other authority.--
                    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.
                        ``(F) Authorization of appropriations.--There are
                    authorized to be appropriated--
                                ``(i) for grants under this paragraph,
                            $60,000,000 for each fiscal year;
                                ``(ii) for loans under this paragraph,
                            $60,000,000 for each fiscal year; and
                                ``(iii) in addition to grants provided
                            under clause (i), for grants under this section
                            to benefit Indian tribes, $20,000,000 for each
                            fiscal year.
                ``(4) Solid waste management grants.--
                        ``(A) In general.--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.
                        ``(B) Technical assistance grant amounts.--Grants
                    made under this paragraph for the provision of
                    technical assistance shall be made for 100 percent of
                    the cost of the technical assistance.
                        ``(C) Authorization of appropriations.--There is
                    authorized to be appropriated to carry out this
                    paragraph $10,000,000 for each of fiscal years 2014
                    through 2018.
                ``(5) Rural water and wastewater technical assistance and
            training programs.--
                        ``(A) Grants to nonprofits.--
                                ``(i) In general.--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--
                                        ``(I) 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;
                                        ``(II) to prepare applications to
                                    receive financial assistance for any
                                    purpose specified in subsection (a)(1)
                                    from any public or private source; and
                                        ``(III) 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.
                                ``(ii) Selection priority.--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--
                                        ``(I) residents have low income;
                                    and
                                        ``(II) water supply systems or
                                    waste facilities are unhealthful.
                                ``(iii) Funding.--
                                        ``(I) In general.--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.
                                        ``(II) Exception.--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.
                        ``(B) Rural water and wastewater circuit rider
                    program.--
                                ``(i) In general.--The Secretary shall
                            continue a national rural water and wastewater
                            circuit rider program that--
                                        ``(I) is consistent with the
                                    activities and results of the program
                                    conducted before January 1, 2012, as
                                    determined by the Secretary; and
                                        ``(II) received funding from the
                                    Secretary, acting through the
                                    Administrator of the Rural Utilities
                                    Service.
                                ``(ii) Authorization of appropriations.--
                            There is authorized to be appropriated to carry
                            out this subparagraph $25,000,000 for fiscal
                            year 2014 and each fiscal year thereafter.
                ``(6) SEARCH program.--
                        ``(A) In general.--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.
                        ``(B) Terms.--
                                ``(i) Documentation.--With respect to
                            grants made under this paragraph, the Secretary
                            shall require the lowest quantity of
                            documentation practicable.
                                ``(ii) Matching.--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.
                                ``(iii) Funding.--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.
                        ``(C) Relationship to other authority.--
                                ``(i) In general.--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.
                                ``(ii) Authorized activities.--The
                            Secretary may furnish financial assistance or
                            other aid in planning projects for the purposes
                            described in subparagraph (A).
        ``(f) Priority.--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--
                ``(1) have a population of less than 5,500 permanent
            residents;
                ``(2) have a community water, wastewater, or waste disposal
            system that--
                        ``(A) is experiencing--
                                ``(i) an unanticipated reduction in the
                            quality of water, the quantity of water, or the
                            ability to deliver water; or
                                ``(ii) some other deterioration in the
                            supply of water to the community;
                        ``(B) is not adequate to meet the needs of the
                    community; and
                        ``(C) requires immediate corrective action;
                ``(3) are experiencing outmigration;
                ``(4) have a high percentage of low-income residents; or
                ``(5) are isolated from other significant population
            centers.
        ``(g) Curtailment or Limitation of Service Prohibited.--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.
        ``(h) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as are necessary.

    ``SEC. 3502. COMMUNITY FACILITIES LOANS, LOAN GUARANTEES, AND GRANTS.

        ``(a) In General.--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--
                ``(1) essential community facilities, including--
                        ``(A) necessary equipment;
                        ``(B) recreational developments; and
                ``(2) financial assistance and other assistance in the
            planning of projects for purposes described in this section.
        ``(b) Eligible Entities.--Entities eligible for assistance
    described in subsection (a) are--
                ``(1) associations (including corporations not operated for
            profit);
                ``(2) 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
                ``(3) public and quasi-public agencies.
        ``(c) Loan and Loan Guarantee Requirements.--
                ``(1) In general.--In connection with loans made or
            guaranteed under this section, the Secretary shall require the
            applicant--
                        ``(A) to certify in writing, and the Secretary
                    shall determine, that the applicant is unable to obtain
                    credit elsewhere to finance the actual needs of the
                    applicant; and
                        ``(B) to furnish an appropriate written financial
                    statement.
                ``(2) Debt restructuring and loan servicing for community
            facility loans.--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).
        ``(d) Grant Amounts.--
                ``(1) Maximum.--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.
                ``(2) Grant rate.--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--
                        ``(A) low community population;
                        ``(B) high rates of outmigration; and
                        ``(C) low income levels.
                ``(3) Local share requirements.--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.
        ``(e) Priority.--In making grants and loans, and guaranteeing loans
    under this section, the Secretary shall give priority consideration to
    projects that serve rural communities that--
                ``(1) have a population of less than 20,000 permanent
            residents;
                ``(2) are experiencing outmigration;
                ``(3) have a high percentage of low-income residents; or
                ``(4) are isolated from other significant population
            centers.
        ``(f) Tribal Colleges and Universities.--
                ``(1) In general.--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.
                ``(2) Federal share.--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.
                ``(3) Authorization of appropriations.--There is authorized
            to be appropriated to carry out this subsection $10,000,000 for
            each of fiscal years 2014 through 2018.
        ``(g) Technical Assistance for Community Facilities Projects.--
                ``(1) In general.--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.
                ``(2) Funding.--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).
        ``(h) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as are necessary.

    ``SEC. 3503. HEALTH CARE SERVICES.

        ``(a) Purpose.--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.
        ``(b) Definition of Eligible Entity.--In this section, the term
    `eligible entity' 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.
        ``(c) Grants.--To carry out the purpose described in subsection
    (a), the Secretary may award a grant to an eligible entity for--
                ``(1) the development of--
                        ``(A) health care services;
                        ``(B) health education programs; and
                        ``(C) health care job training programs; and
                ``(2) the development and expansion of public health-
            related facilities in the Delta region to address longstanding
            and unmet health needs of the region.
        ``(d) Use.--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.
        ``(e) Authorization of Appropriations.--There is authorized to be
    appropriated to the Secretary to carry out this section $3,000,000 for
    each of fiscal years 2014 through 2018.

            ``CHAPTER 2--RURAL BUSINESS AND COOPERATIVE DEVELOPMENT

    ``SEC. 3601. BUSINESS PROGRAMS.

        ``(a) Rural Business Development Grants.--
                ``(1) In general.--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).
                ``(2) Eligible entities.--The Secretary may make grants
            under this subsection to--
                        ``(A) governmental entities;
                        ``(B) Indian tribes; and
                        ``(C) nonprofit entities.
                ``(3) Eligible purposes for grants.--Eligible entities that
            receive grants under this subsection may use the grant funds
            for--
                        ``(A) business opportunity projects that--
                                ``(i) identify and analyze business
                            opportunities;
                                ``(ii) identify, train, and provide
                            technical assistance to existing or prospective
                            rural entrepreneurs and managers;
                                ``(iii) assist in the establishment of new
                            rural businesses and the maintenance of
                            existing businesses, including through business
                            support centers;
                                ``(iv) conduct regional, community, and
                            local economic development planning and
                            coordination, and leadership development; and
                                ``(v) 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
                        ``(B) projects that support the development of
                    business enterprises that finance or facilitate--
                                ``(i) the development of small and emerging
                            private business enterprise;
                                ``(ii) the establishment, expansion, and
                            operation of rural distance learning networks;
                                ``(iii) 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
                                ``(iv) the provision of technical
                            assistance and training to rural communities
                            for the purpose of improving passenger
                            transportation services or facilities.
                ``(4) Authorization of appropriations.--There is authorized
            to be appropriated to the Secretary to carry out this
            subsection $65,000,000 for each of fiscal years 2014 through
            2018, to remain available until expended.
        ``(b) Value-Added Agricultural Producer Grants.--
                ``(1) Definitions.--In this subsection:
                        ``(A) Mid-tier value chain.--The term `mid-tier
                    value chain' 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--
                                ``(i) targets and strengthens the
                            profitability and competitiveness of small- and
                            medium-sized farms that are structured as
                            family farms; and
                                ``(ii) 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.
                        ``(B) Producer.--The term `producer' means a
                    farmer.
                        ``(C) Value-added agricultural product.--The term
                    `value-added agricultural product' means any
                    agricultural commodity or product--
                                ``(i) that--
                                        ``(I) has undergone a change in
                                    physical state;
                                        ``(II) 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;
                                        ``(III) is physically segregated in
                                    a manner that results in the
                                    enhancement of the value of the
                                    agricultural commodity or product;
                                        ``(IV) is a source of farm-based
                                    renewable energy, including E-85 fuel;
                                    or
                                        ``(V) is aggregated and marketed as
                                    a locally produced agricultural food
                                    product; and
                                ``(ii) 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--
                                        ``(I) the customer base for the
                                    agricultural commodity or product is
                                    expanded; and
                                        ``(II) 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.
                ``(2) Grants.--
                        ``(A) In general.--The Secretary may make grants
                    under this subsection to--
                                ``(i) independent producers of value-added
                            agricultural products; and
                                ``(ii) an agricultural producer group,
                            farmer cooperative, or majority-controlled
                            producer-based business venture, as determined
                            by the Secretary.
                        ``(B) Grants to a producer.--A grantee under
                    subparagraph (A)(i) shall use the grant--
                                ``(i) 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
                                ``(ii) to provide capital to establish
                            alliances or business ventures that allow the
                            producer to better compete in domestic or
                            international markets.
                        ``(C) Grants to an agricultural producer group,
                    cooperative or producer-based business venture.--A
                    grantee under subparagraph (A)(ii) shall use the
                    grant--
                                ``(i) to develop a business plan for viable
                            marketing opportunities in emerging markets for
                            a value-added agricultural product; or
                                ``(ii) to develop strategies that are
                            intended to create marketing opportunities in
                            emerging markets for the value-added
                            agricultural product.
                        ``(D) Award selection.--
                                ``(i) Priority.--In awarding grants under
                            this subsection, the Secretary shall give
                            priority to projects--
                                        ``(I) that contribute to increasing
                                    opportunities for operators of small-
                                    and medium-sized farms that are
                                    structured as family farms; or
                                        ``(II) at least \1/4\ of the
                                    recipients of which are beginning
                                    farmers or socially disadvantaged
                                    farmers.
                                ``(ii) Ranking.--In evaluating and ranking
                            proposals under this subsection, the Secretary
                            shall provide substantial weight to the
                            priorities described in clause (i).
                        ``(E) Amount of grant.--
                                ``(i) In general.--The total amount
                            provided to a grant recipient under this
                            subsection shall not exceed $500,000.
                                ``(ii) Majority-controlled, producer-based
                            business ventures.--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.
                        ``(F) Term.--The term of a grant under this
                    paragraph shall not exceed 3 years.
                        ``(G) Simplified application.--The Secretary shall
                    offer a simplified application form and process for
                    project proposals requesting less than $50,000 under
                    this subsection.
                ``(3) Funding.--
                        ``(A) Authorization of appropriations.--There is
                    authorized to be appropriated to carry out this
                    subsection $40,000,000 for each of fiscal years 2014
                    through 2018.
                        ``(B) Reservation of funds for projects to benefit
                    beginning farmers, socially disadvantaged farmers, and
                    mid-tier value chains.--
                                ``(i) In general.--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.
                                ``(ii) Mid-tier value chains.--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.
                                ``(iii) Unobligated amounts.--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.
                        ``(C) Mandatory funding.--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 2018, to remain available
                    until expended.
        ``(c) Rural Cooperative Development Grants.--
                ``(1) Definitions.--In this subsection:
                        ``(A) Nonprofit institution.--The term `nonprofit
                    institution' 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.
                        ``(B) United states.--The term `United States'
                    means--
                                ``(i) the several States; and
                                ``(ii) the District of Columbia.
                ``(2) Grants.--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.
                ``(3) Goals.--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.
                ``(4) Application.--
                        ``(A) In general.--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.
                        ``(B) Requirements.--The Secretary may approve an
                    application if the plan contains the following:
                                ``(i) A provision that substantiates that
                            the center will effectively serve rural areas
                            in the United States.
                                ``(ii) A provision that the primary
                            objective of the center will be to improve the
                            economic condition of rural areas through
                            cooperative development.
                                ``(iii) A description of the activities
                            that the center will carry out to accomplish
                            the objective, which may include programs--
                                        ``(I) 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;
                                        ``(II) 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;
                                        ``(III) providing training and
                                    instruction for individuals,
                                    cooperatives, small businesses, and
                                    other similar entities in rural areas
                                    served by the center;
                                        ``(IV) providing loans and grants
                                    to individuals, cooperatives, small
                                    businesses, and other similar entities
                                    in rural areas served by the center;
                                        ``(V) 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
                                        ``(VI) providing for the
                                    coordination of services and sharing of
                                    information by the center.
                                ``(iv) 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.
                                ``(v) 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.
                                ``(vi) 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.
                                ``(vii) Provisions for--
                                        ``(I) monitoring and evaluating the
                                    activities by the nonprofit institution
                                    operating the center; and
                                        ``(II) accounting for funds
                                    received by the institution under this
                                    section.
                ``(5) Awarding grants.--
                        ``(A) In general.--Grants made under paragraph (2)
                    shall be made on a competitive basis.
                        ``(B) Preference.--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--
                                ``(i) demonstrate a proven track record in
                            carrying out activities to promote and assist
                            the development of cooperatively and mutually
                            owned businesses;
                                ``(ii) demonstrate previous expertise in
                            providing technical assistance in rural areas
                            to promote and assist the development of
                            cooperatively and mutually owned businesses;
                                ``(iii) 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;
                                ``(iv) commit to providing technical
                            assistance and other services to underserved
                            and economically distressed areas in rural
                            areas of the United States;
                                ``(v) demonstrate a commitment to--
                                        ``(I) 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
                                        ``(II) developing multiorganization
                                    and multistate approaches to addressing
                                    the economic development and
                                    cooperative needs of rural areas; and
                                ``(vi) 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)).
                ``(6) Grant period.--
                        ``(A) In general.--A grant awarded to a center that
                    has received no prior funding under this subsection
                    shall be made for a period of 1 year.
                        ``(B) Multiyear grants.--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.
                ``(7) Authority to extend grant period.--The Secretary may
            extend for 1 additional 12-month period the period during which
            a grantee may use a grant made under this subsection.
                ``(8) Technical assistance to prevent excessive
            unemployment or underemployment.--
                        ``(A) In general.--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.
                        ``(B) Inclusions.--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.
                ``(9) Grants to defray administrative costs.--
                        ``(A) In general.--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.
                        ``(B) Cost-sharing.--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.
                ``(10) Cooperative research program.--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.
                ``(11) Addressing needs of minority communities.--
                        ``(A) In general.--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--
                                ``(i) that serve socially disadvantaged
                            groups; and
                                ``(ii) a majority of the boards of
                            directors or governing boards of which are
                            comprised of individuals who are members of
                            socially disadvantaged groups.
                        ``(B) Insufficient applications.--To the extent
                    there are insufficient applications to carry out
                    subparagraph (A), the Secretary shall use the funds as
                    otherwise authorized by this subsection.
                ``(12) Interagency working group.--Not later than 90 days
            after the date of enactment of the Agriculture Reform, Food,
            and Jobs Act of 2013, 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.
                ``(13) Authorization of appropriations.--There is
            authorized to be appropriated to carry out this subsection
            $50,000,000 for each of fiscal years 2014 through 2018.
        ``(d) Appropriate Technology Transfer for Rural Areas Program.--
                ``(1) Definition of national nonprofit agricultural
            assistance institution.--In this subsection, the term `national
            nonprofit agricultural assistance institution' means an
            organization that--
                        ``(A) is described in section 501(c)(3) of the
                    Internal Revenue Code of 1986 and exempt from taxation
                    under 501(a) of that Code;
                        ``(B) has staff and offices in multiple regions of
                    the United States;
                        ``(C) has experience and expertise in operating
                    national agricultural technical assistance programs;
                        ``(D) 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
                        ``(E) improves the economic viability of
                    agricultural operations.
                ``(2) Establishment.--The Secretary shall establish a
            national appropriate technology transfer for rural areas
            program to assist agricultural producers that are seeking
            information--
                        ``(A) to reduce input costs;
                        ``(B) to conserve energy resources;
                        ``(C) to diversify operations through new energy
                    crops and energy generation facilities; and
                        ``(D) to expand markets for agricultural
                    commodities produced by the producers by using
                    practices that enhance the environment, natural
                    resource base, and quality of life.
                ``(3) Implementation.--
                        ``(A) In general.--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.
                        ``(B) Grant amount.--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).
                ``(4) Authorization of appropriations.--There is authorized
            to be appropriated to carry out this subsection $5,000,000 for
            each of fiscal years 2014 through 2018.
        ``(e) Business and Industry Direct and Guaranteed Loans.--
                ``(1) Definition of business and industry loan.--In this
            section, the term `business and industry loan' means a direct
            loan that is made, or a loan that is guaranteed, by the
            Secretary under this subsection.
                ``(2) Loan purposes.--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--
                        ``(A) to improve, develop, or finance business,
                    industry, and employment and improve the economic and
                    environmental climate in rural communities, including
                    pollution abatement and control;
                        ``(B) to conserve, develop, and use water for
                    aquaculture purposes in rural areas; and
                        ``(C) 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.
                ``(3) Loan guarantees for certain loans.--The Secretary may
            guarantee loans made under this subsection to finance the
            issuance of bonds for the projects described in paragraph (2).
                ``(4) Maximum amount of principal.--
                        ``(A) In general.--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.
                        ``(B) Limitations on loan guarantees for
                    cooperative organizations.--
                                ``(i) Principal amount.--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.
                                ``(ii) Use.--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--
                                        ``(I) provides for the value-added
                                    processing of agricultural commodities;
                                    or
                                        ``(II) significantly benefits 1 or
                                    more entities eligible for assistance
                                    for the purposes described in paragraph
                                    (2), as determined by the Secretary.
                                ``(iii) Applications.--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.
                                ``(iv) Maximum amount.--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.
                ``(5) Fees.--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.
                ``(6) Intangible assets.--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.
                ``(7) Loan appraisals.--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.
                ``(8) Loan guarantees for the purchase of cooperative
            stock.--
                        ``(A) In general.--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.
                        ``(B) Processing contracts during initial period.--
                    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.
                        ``(C) Financial information.--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.
                ``(9) Loans to cooperatives.--
                        ``(A) Eligibility.--
                                ``(i) In general.--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--
                                        ``(I) used for a project or venture
                                    described in paragraph (2) that is
                                    located in a rural area; or
                                        ``(II) a loan guarantee that meets
                                    the requirements of paragraph (10).
                                ``(ii) Equity.--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.
                        ``(B) Refinancing.--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--
                                ``(i) the cooperative organization--
                                        ``(I) is current and performing
                                    with respect to the existing loan; and
                                        ``(II)(aa) is not, and has not
                                    been, in payment default, with respect
                                    to the existing loan; or
                                        ``(bb) has not converted any of the
                                    collateral with respect to the existing
                                    loan; and
                                ``(ii) there is adequate security or full
                            collateral for the refinanced loan.
                ``(10) Loan guarantees in nonrural areas.--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--
                        ``(A) 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;
                        ``(B) 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
                        ``(C) 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.
                ``(11) Locally or regionally produced agricultural food
            products.--
                        ``(A) Definitions.--In this paragraph:
                                ``(i) Locally or regionally produced
                            agricultural food product.--The term `locally
                            or regionally produced agricultural food
                            product' means any agricultural food product
                            that is raised, produced, and distributed in--
                                        ``(I) 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
                                        ``(II) the State in which the
                                    product is produced.
                                ``(ii) Underserved community.--The term
                            `underserved community' means a community
                            (including an urban or rural community and an
                            Indian tribal community) that, as determined by
                            the Secretary, has--
                                        ``(I) limited access to affordable,
                                    healthy foods, including fresh fruits
                                    and vegetables, in grocery retail
                                    stores or farmer-to-consumer direct
                                    markets; and
                                        ``(II) a high rate of hunger or
                                    food insecurity or a high poverty rate.
                        ``(B) Loan and loan guarantee program.--
                                ``(i) In general.--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.
                                ``(ii) Requirement.--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.
                                ``(iii) Priority.--In making or
                            guaranteeing a loan under this paragraph, the
                            Secretary shall give priority to projects that
                            have components benefitting underserved
                            communities.
                                ``(iv) Reports.--Not later than 2 years
                            after the date of enactment of the Agriculture
                            Reform, Food, and Jobs Act of 2013 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--
                                        ``(I) summary information about all
                                    projects;
                                        ``(II) the characteristics of the
                                    communities served; and
                                        ``(III) resulting benefits.
                                ``(v) Reservation of funds.--For each of
                            fiscal years 2014 through 2018, 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.
                                ``(vi) Outreach.--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.
                ``(12) Authorization of appropriations.--There is
            authorized to be appropriated to carry out this subsection
            $75,000,000 for each of fiscal years 2014 through 2018.
        ``(f) Relending Programs.--
                ``(1) Intermediate relending program.--
                        ``(A) In general.--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).
                        ``(B) Eligible entities.--Entities eligible for
                    loans and loan guarantees described in subparagraph (A)
                    are--
                                ``(i) public agencies;
                                ``(ii) Indian tribes;
                                ``(iii) cooperatives; and
                                ``(iv) nonprofit corporations.
                        ``(C) Eligible purposes.--The proceeds from loans
                    made or guaranteed by the Secretary pursuant to
                    subparagraph (A) may be relent by eligible entities for
                    projects that--
                                ``(i) predominately serve communities in
                            rural areas; and
                                ``(ii) as determined by the Secretary--
                                        ``(I) promote community
                                    development;
                                        ``(II) establish new businesses;
                                        ``(III) establish and support
                                    microlending programs; and
                                        ``(IV) create or retain employment
                                    opportunities.
                        ``(D) Authorization of appropriations.--There is
                    authorized to be appropriated to carry out this
                    subsection $50,000,000 for each of fiscal years 2014
                    through 2018.
                ``(2) Rural microentrepreneur assistance program.--
                        ``(A) Definitions.--In this paragraph:
                                ``(i) Microentrepreneur.--The term
                            `microentrepreneur' 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.
                                ``(ii) Microenterprise development
                            organization.--The term `microenterprise
                            development organization' means an organization
                            that is--
                                        ``(I) a nonprofit entity;
                                        ``(II) an Indian tribe, the tribal
                                    government of which certifies to the
                                    Secretary that--
                                                ``(aa) no microenterprise
                                            development organization serves
                                            the Indian tribe; and
                                                ``(bb) no rural
                                            microentrepreneur assistance
                                            program exists under the
                                            jurisdiction of the Indian
                                            tribe;
                                        ``(III) a public institution of
                                    higher education; or
                                        ``(IV) 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.
                                ``(iii) Microloan.--The term `microloan'
                            means a business loan of not more than $50,000
                            that is provided to a rural microenterprise.
                                ``(iv) Program.--The term `program' means
                            the rural microentrepreneur assistance program
                            established under subparagraph (B).
                                ``(v) Rural microenterprise.--The term
                            `rural microenterprise' means a business entity
                            with not more than 10 full-time equivalent
                            employees located in a rural area.
                                ``(vi) Training.--The term `training' means
                            teaching broad business principles or general
                            business skills in a group or public setting.
                                ``(vii) Technical assistance.--The term
                            `technical assistance' 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.
                        ``(B) Rural microentrepreneur assistance program.--
                                ``(i) Establishment.--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.
                                ``(ii) Purpose.--The purpose of the program
                            is to provide microentrepreneurs with--
                                        ``(I) the skills necessary to
                                    establish new rural microenterprises;
                                    and
                                        ``(II) continuing technical and
                                    financial assistance related to the
                                    successful operation of rural
                                    microenterprises.
                                ``(iii) Loans.--
                                        ``(I) In general.--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.
                                        ``(II) Loan terms.--A loan made by
                                    the Secretary to a microenterprise
                                    development organization under this
                                    subparagraph shall--
                                                ``(aa) be for a term not to
                                            exceed 20 years; and
                                                ``(bb) bear an annual
                                            interest rate of at least 1
                                            percent.
                                        ``(III) Loan loss reserve fund.--
                                    The Secretary shall require each
                                    microenterprise development
                                    organization that receives a loan under
                                    this subparagraph to--
                                                ``(aa) establish a loan
                                            loss reserve fund; and
                                                ``(bb) 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.
                                        ``(IV) Deferral of interest and
                                    principal.--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.
                                ``(iv) Grants to support rural
                            microenterprise development.--
                                        ``(I) In general.--The Secretary
                                    shall make grants to microenterprise
                                    development organizations--
                                                ``(aa) to provide training
                                            and technical assistance, and
                                            other related services to rural
                                            microentrepreneurs; and
                                                ``(bb) to carry out such
                                            other projects and activities
                                            as the Secretary determines
                                            appropriate to further the
                                            purposes of the program.
                                        ``(II) Selection.--In making grants
                                    under subclause (I), the Secretary
                                    shall--
                                                ``(aa) 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
                                                ``(bb) ensure, to the
                                            maximum extent practicable,
                                            that grant recipients include
                                            microenterprise development
                                            organizations of varying sizes
                                            and that serve racially and
                                            ethnically diverse populations.
                                ``(v) Grants to assist
                            microentrepreneurs.--
                                        ``(I) In general.--The Secretary
                                    shall make annual grants to
                                    microenterprise development
                                    organizations to provide technical
                                    assistance to microentrepreneurs that--
                                                ``(aa) received a loan from
                                            the microenterprise development
                                            organization under subparagraph
                                            (B)(iii); or
                                                ``(bb) are seeking a loan
                                            from the microenterprise
                                            development organization under
                                            subparagraph (B)(iii).
                                        ``(II) Maximum amount of technical
                                    assistance grant.--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.
                                ``(vi) Administrative expenses.--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.
                        ``(C) Administration.--
                                ``(i) Matching requirement.--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.
                                ``(ii) Oversight.--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.
                        ``(D) Authorization of appropriations.--There is
                    authorized to be appropriated to carry out this
                    paragraph $40,000,000 for each of fiscal years 2014
                    through 2018.
                        ``(E) Mandatory funding for fiscal years 2014
                    through 2018.--Of the funds of the Commodity Credit
                    Corporation, the Secretary shall use to carry out this
                    paragraph $3,000,000 for each of fiscal years 2014
                    through 2018, to remain available until expended.

    ``SEC. 3602. RURAL BUSINESS INVESTMENT PROGRAM.

        ``(a) Definitions.--In this section:
                ``(1) Articles.--The term `articles' means articles of
            incorporation for an incorporated body or the functional
            equivalent or other similar documents specified by the
            Secretary for other business entities.
                ``(2) Developmental venture capital.--The term
            `developmental venture capital' means capital in the form of
            equity capital investments in rural business investment
            companies with an objective of fostering economic development
            in rural areas.
                ``(3) Employee welfare benefit plan; pension plan.--
                        ``(A) In general.--The terms `employee welfare
                    benefit plan' and `pension plan' have the meanings
                    given the terms in section 3 of the Employee Retirement
                    Income Security Act of 1974 (29 U.S.C. 1002).
                        ``(B) Inclusions.--The terms `employee welfare
                    benefit plan' and `pension plan' include--
                                ``(i) public and private pension or
                            retirement plans subject to this subtitle; and
                                ``(ii) 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.
                ``(4) Equity capital.--The term `equity capital' means
            common or preferred stock or a similar instrument, including
            subordinated debt with equity features.
                ``(5) Leverage.--The term `leverage' includes--
                        ``(A) debentures purchased or guaranteed by the
                    Secretary;
                        ``(B) participating securities purchased or
                    guaranteed by the Secretary; and
                        ``(C) preferred securities outstanding as of the
                    date of enactment of the Agriculture Reform, Food, and
                    Jobs Act of 2013.
                ``(6) License.--The term `license' means a license issued
            by the Secretary in accordance with in subsection (d)(5).
                ``(7) Limited liability company.--The term `limited
            liability company' means a business entity that is organized
            and operating in accordance with a State limited liability
            company law approved by the Secretary.
                ``(8) Member.--The term `member' 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.
                ``(9) Operational assistance.--The term `operational
            assistance' means management, marketing, and other technical
            assistance that assists a rural business concern with business
            development.
                ``(10) Participation agreement.--The term `participation
            agreement' 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.
                ``(11) Private capital.--
                        ``(A) In general.--The term `private capital' means
                    the total of--
                                ``(i)(I) the paid-in capital and paid-in
                            surplus of a corporate rural business
                            investment company;
                                ``(II) the contributed capital of the
                            partners of a partnership rural business
                            investment company; or
                                ``(III) the equity investment of the
                            members of a limited liability company rural
                            business investment company; and
                                ``(ii) unfunded binding commitments from
                            investors that meet criteria established by the
                            Secretary to contribute capital to the rural
                            business investment company, except that--
                                        ``(I) unfunded commitments may be
                                    counted as private capital for purposes
                                    of approval by the Secretary of any
                                    request for leverage; but
                                        ``(II) leverage shall not be funded
                                    based on the commitments.
                        ``(B) Exclusions.--The term `private capital' does
                    not include--
                                ``(i) any funds borrowed by a rural
                            business investment company from any source;
                                ``(ii) any funds obtained through the
                            issuance of leverage; or
                                ``(iii) 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--
                                        ``(I) 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
                                    Agriculture Reform, Food, and Jobs Act
                                    of 2013;
                                        ``(II) funds invested by an
                                    employee welfare benefit plan or
                                    pension plan; and
                                        ``(III) 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).
                ``(12) Qualified nonprivate funds.--The term `qualified
            nonprivate funds' means any--
                        ``(A) funds directly or indirectly invested in any
                    applicant or rural business investment company on or
                    before the date of enactment of the Agriculture Reform,
                    Food, and Jobs Act of 2013 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 `private capital'; and
                        ``(B) 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.
                ``(13) Rural business concern.--The term `rural business
            concern' means--
                        ``(A) a public, private, or cooperative for-profit
                    or nonprofit organization;
                        ``(B) a for-profit or nonprofit business controlled
                    by an Indian tribe; or
                        ``(C) any other person or entity that primarily
                    operates in a rural area, as determined by the
                    Secretary.
                ``(14) Rural business investment company.--The term `rural
            business investment company' means a company that--
                        ``(A) has been granted final approval by the
                    Secretary under subsection (d)(5); and
                        ``(B) has entered into a participation agreement
                    with the Secretary.
                ``(15) Smaller enterprise.--
                        ``(A) In general.--The term `smaller enterprise'
                    means any rural business concern that, together with
                    its affiliates--
                                ``(i) has--
                                        ``(I) 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
                                        ``(II) 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
                                ``(ii) 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.
                        ``(B) Exception.--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--
                                ``(i) 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--
                                        ``(I) the net income (determined
                                    without regard to this subparagraph);
                                    by
                                        ``(II) 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
                                ``(ii) the product obtained by
                            multiplying--
                                        ``(I) the net income (so
                                    determined) less any deduction for
                                    State (and local) income taxes
                                    calculated under clause (i); by
                                        ``(II) the marginal Federal income
                                    tax rate that would have applied if the
                                    rural business concern were a
                                    corporation.
        ``(b) Purposes.--The purposes of the Rural Business Investment
    Program established under this section are--
                ``(1) 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
                ``(2) 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--
                        ``(A) to enter into participation agreements with
                    rural business investment companies;
                        ``(B) 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
                        ``(C) 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.
        ``(c) Establishment.--In accordance with this subtitle, the
    Secretary shall establish a Rural Business Investment Program, under
    which the Secretary may--
                ``(1) enter into participation agreements with companies
            granted final approval under subsection (d)(5) for the purposes
            described in subsection (b);
                ``(2) guarantee the debentures issued by rural business
            investment companies as provided in subsection (e); and
                ``(3) make grants to rural business investment companies,
            and to other entities, under subsection (h).
        ``(d) Selection of Rural Business Investment Companies.--
                ``(1) Eligibility.--A company shall be eligible to apply to
            participate, as a rural business investment company, in the
            program established under this section if--
                        ``(A) the company is a newly formed for-profit
                    entity or a newly formed for-profit subsidiary of such
                    an entity;
                        ``(B) the company has a management team with
                    experience in community development financing or
                    relevant venture capital financing; and
                        ``(C) the company will invest in enterprises that
                    will create wealth and job opportunities in rural
                    areas, with an emphasis on smaller enterprises.
                ``(2) Application.--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--
                        ``(A) a business plan describing how the company
                    intends to make successful developmental venture
                    capital investments in identified rural areas;
                        ``(B) information regarding the community
                    development finance or relevant venture capital
                    qualifications and general reputation of the management
                    of the company;
                        ``(C) 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;
                        ``(D) 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;
                        ``(E) 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;
                        ``(F) 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;
                        ``(G) 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
                        ``(H) such other information as the Secretary may
                    require.
                ``(3) Status.--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.
                ``(4) Matters considered.--In reviewing and processing any
            application under this subsection, the Secretary shall--
                        ``(A) determine whether--
                                ``(i) the applicant meets the requirements
                            of paragraph (5); and
                                ``(ii) the management of the applicant is
                            qualified and has the knowledge, experience,
                            and capability necessary to comply with this
                            section;
                        ``(B) take into consideration--
                                ``(i) the need for and availability of
                            financing for rural business concerns in the
                            geographic area in which the applicant is to
                            commence business;
                                ``(ii) the general business reputation of
                            the owners and management of the applicant; and
                                ``(iii) the probability of successful
                            operations of the applicant, including adequate
                            profitability and financial soundness; and
                        ``(C) not take into consideration any projected
                    shortage or unavailability of grant funds or leverage.
                ``(5) Approval; license.--
                        ``(A) In general.--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--
                                ``(i) the Secretary determines that the
                            application satisfies the requirements of
                            paragraph (2);
                                ``(ii) 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
                                ``(iii) the applicant enters into a
                            participation agreement with the Secretary.
                        ``(B) Capital requirements.--
                                ``(i) In general.--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--
                                        ``(I) has private capital as
                                    determined by the Secretary;
                                        ``(II) would otherwise be approved
                                    under this section, except that the
                                    applicant does not satisfy the
                                    requirements of subsection (i)(3); and
                                        ``(III) has a viable business plan
                                    that--
                                                ``(aa) reasonably projects
                                            profitable operations; and
                                                ``(bb) has a reasonable
                                            timetable for achieving a level
                                            of private capital that
                                            satisfies the requirements of
                                            subsection (i)(3).
                                ``(ii) Leverage.--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).
                                ``(iii) Grants.--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.
        ``(e) Debentures.--
                ``(1) In general.--The Secretary may guarantee the timely
            payment of principal and interest, as scheduled, on debentures
            issued by any rural business investment company.
                ``(2) Terms and conditions.--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.
                ``(3) Full faith and credit of the united states.--Section
            3901 shall apply to any guarantee under this subsection.
                ``(4) Maximum guarantee.--Under this subsection, the
            Secretary may--
                        ``(A) 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--
                                ``(i) 300 percent of the private capital of
                            the rural business investment company; or
                                ``(ii) $105,000,000; and
                        ``(B) provide for the use of discounted debentures.
        ``(f) Issuance and Guarantee of Trust Certificates.--
                ``(1) Issuance.--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.
                ``(2) Guarantee.--
                        ``(A) In general.--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.
                        ``(B) Limitation.--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.
                        ``(C) Prepayment or default.--
                                ``(i) In general.--
                                        ``(I) Authority to prepay.--A
                                    debenture may be prepaid at any time
                                    without penalty.
                                        ``(II) Reduction of guarantee.--
                                    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.
                                ``(ii) Interest.--Interest on prepaid or
                            defaulted debentures shall accrue and be
                            guaranteed by the Secretary only through the
                            date of payment of the guarantee.
                                ``(iii) Redemption.--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.
                ``(3) Full faith and credit of the united states.--Section
            3901 shall apply to any guarantee of a trust certificate issued
            by the Secretary under this section.
                ``(4) Subrogation and ownership rights.--
                        ``(A) Subrogation.--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.
                        ``(B) Ownership rights.--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.
                ``(5) Management and administration.--
                        ``(A) Registration.--The Secretary shall provide
                    for a central registration of all trust certificates
                    issued under this subsection.
                        ``(B) Creation of pools.--The Secretary may--
                                ``(i) 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
                                ``(ii) issue trust certificates to
                            facilitate the creation of those trusts or
                            pools.
                        ``(C) Fidelity bond or insurance requirement.--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.
                        ``(D) Regulation of brokers and dealers.--The
                    Secretary may regulate brokers and dealers in trust
                    certificates issued under this subsection.
                        ``(E) Electronic registration.--Nothing in this
                    paragraph prohibits the use of a book-entry or other
                    electronic form of registration for trust certificates
                    issued under this subsection.
        ``(g) Fees.--
                ``(1) In general.--The Secretary may charge a fee that does
            not exceed $500 with respect to any guarantee or grant issued
            under this section.
                ``(2) Trust certificate.--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).
                ``(3) License.--
                        ``(A) In general.--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.
                        ``(B) Use of amounts.--Fees collected under this
                    paragraph--
                                ``(i) shall be deposited in the account for
                            salaries and expenses of the Secretary;
                                ``(ii) are authorized to be appropriated
                            solely to cover the costs of licensing
                            examinations; and
                                ``(iii) shall--
                                        ``(I) in the case of a license
                                    issued before the date of enactment of
                                    the Agriculture Reform, Food, and Jobs
                                    Act of 2013, not exceed $500 for any
                                    fee collected under this paragraph; and
                                        ``(II) in the case of a license
                                    issued after the date of enactment of
                                    the Agriculture Reform, Food, and Jobs
                                    Act of 2013, be a rate as determined by
                                    the Secretary.
                        ``(C) Prohibition on collection of certain fees.--
                    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 Agriculture Reform, Food, and Jobs Act
                    of 2013.
        ``(h) Operational Assistance Grants.--
                ``(1) In general.--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.
                ``(2) Terms.--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.
                ``(3) Use of funds.--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.
                ``(4) Submission of plans.--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.
                ``(5) Grant amount.--
                        ``(A) Rural business investment companies.--The
                    amount of a grant made under this subsection to a rural
                    business investment company shall be equal to the
                    lesser of--
                                ``(i) 10 percent of the private capital
                            raised by the rural business investment
                            company; or
                                ``(ii) $1,000,000.
                ``(6) Other entities.--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.
        ``(i) Rural Business Investment Companies.--
                ``(1) Organization.--For purposes of this subsection, a
            rural business investment company shall--
                        ``(A) 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
                        ``(B)(i) 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
                        ``(ii) if a limited partnership or a limited
                    liability company, have succession for a period of not
                    less than 10 years; and
                        ``(iii) possess the powers reasonably necessary to
                    perform the functions and conduct the activities.
                ``(2) Articles.--The articles of any rural business
            investment company--
                        ``(A) shall specify in general terms--
                                ``(i) the purposes for which the rural
                            business investment company is formed;
                                ``(ii) the name of the rural business
                            investment company;
                                ``(iii) the 1 or more areas in which the
                            operations of the rural business investment
                            company are to be carried out;
                                ``(iv) the place where the principal office
                            of the rural business investment company is to
                            be located; and
                                ``(v) the amount and classes of the shares
                            of capital stock of the rural business
                            investment company;
                        ``(B) 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
                        ``(C) shall be subject to the approval of the
                    Secretary.
                ``(3) Capital requirements.--
                        ``(A) In general.--Each rural business investment
                    company shall be required to meet the capital
                    requirements as provided by the Secretary.
                        ``(B) Time frame.--Each rural business investment
                    company shall have a period of 2 years to meet the
                    capital requirements of this paragraph.
                        ``(C) Adequacy.--In addition to the requirements of
                    subparagraph (A), the Secretary shall--
                                ``(i) 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;
                                ``(ii) determine that the rural business
                            investment company will be able to comply with
                            the requirements of this section;
                                ``(iii) require that at least 75 percent of
                            the capital of each rural business investment
                            company is invested in rural business concerns;
                                ``(iv) 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
                                ``(v) 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.
                ``(4) Diversification of ownership.--The Secretary shall
            ensure that the management of each rural business investment
            company licensed after the date of enactment of the Agriculture
            Reform, Food, and Jobs Act of 2013 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.
        ``(j) Financial Institution Investments.--
                ``(1) In general.--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:
                        ``(A) 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.
                        ``(B) Any Farm Credit System institution described
                    in subsection 1.2(a) of the Farm Credit Act of 1971 (12
                    U.S.C. 2002(a)).
                ``(2) Limitation.--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.
                ``(3) Limitation on rural business investment companies
            controlled by farm credit system institutions.--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.).
        ``(k) Examinations.--
                ``(1) In general.--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.
                ``(2) Assistance of private sector entities.--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.
                ``(3) Costs.--
                        ``(A) In general.--The Secretary may assess the
                    cost of an examination under this section, including
                    compensation of the examiners, against the rural
                    business investment company examined.
                        ``(B) Payment.--Any rural business investment
                    company against which the Secretary assesses costs
                    under this subparagraph shall pay the costs.
                ``(4) Deposit of funds.--Funds collected under this
            subsection shall--
                        ``(A) be deposited in the account that incurred the
                    costs for carrying out this subsection;
                        ``(B) be made available to the Secretary to carry
                    out this subsection, without further appropriation; and
                        ``(C) remain available until expended.
        ``(l) Reporting Requirements.--
                ``(1) Rural business investment companies.--Each entity
            that participates in a program established under this section
            shall provide to the Secretary such information as the
            Secretary may require, including--
                        ``(A) information relating to the measurement
                    criteria that the entity proposed in the program
                    application of the rural business investment company;
                    and
                        ``(B) 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.
                ``(2) Public reports.--
                        ``(A) In general.--The Secretary shall prepare and
                    make available to the public an annual report on the
                    programs established under this section, including
                    detailed information on--
                                ``(i) the number of rural business
                            investment companies licensed by the Secretary
                            during the previous fiscal year;
                                ``(ii) the aggregate amount of leverage
                            that rural business investment companies have
                            received from the Federal Government during the
                            previous fiscal year;
                                ``(iii) 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;
                                ``(iv) 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;
                                ``(v) 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;
                                ``(vi) 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);
                                ``(vii) the amount of Federal Government
                            leverage that each licensee received in the
                            previous fiscal year and the types of leverage
                            instruments each licensee used;
                                ``(viii) 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
                                ``(ix) the actions of the Secretary to
                            carry out this section
                        ``(B) Prohibition.--In compiling the report
                    required under subparagraph (A), the Secretary may
                    not--
                                ``(i) 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
                                ``(ii) release any information that is
                            prohibited under section 1905 of title 18,
                            United States Code.
        ``(m) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $25,000,000 for the period of
    fiscal years 2008 through 2018.''.

               ``CHAPTER 3--GENERAL RURAL DEVELOPMENT PROVISIONS

    ``SEC. 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 (4), 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
                            2013.
                ``(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.

    ``SEC. 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.
        ``(c) Funds.--
                ``(1) In general.--Subject to paragraph (3), the Secretary
            may reserve for projects that support multijurisdictional
            strategic community and economic development plans described in
            subsection (a) an amount that does not exceed--
                        ``(A) 20 percent of the funds made available for a
                    fiscal year for a functional category described in
                    paragraph (2); and
                        ``(B) 15 percent of the total funds available for
                    all functional categories.
                ``(2) Functional categories.--The function categories
            described in this subsection are the following:
                        ``(A) Rural community facilities.--The rural
                    community development category consists of all amounts
                    made available for community facility grants and direct
                    and guaranteed loans under section 3502.
                        ``(B) Rural utilities.--The rural utilities
                    category consists of all amounts made available for--
                                ``(i) water or waste disposal grants or
                            direct or guaranteed loans under section
                            3501(a);
                                ``(ii) emergency community water assistance
                            grants under section 3501(e)(2);
                                ``(iii) solid waste management grants under
                            section 3501(e)(4); or
                                ``(iv) rural water or wastewater technical
                            assistance and training grants under section
                            3501(e)(5).
                        ``(C) Rural business and cooperative development.--
                    The rural business and cooperative development category
                    consists of all amounts made available for--
                                ``(i) rural business opportunity grants,
                            rural business enterprise grants, or rural
                            educational network grants under section
                            3601(a); or
                                ``(ii) business and industry direct and
                            guaranteed loans under section 3601(e).
                ``(3) Limitation.--The reservation of funds described in
            paragraph (2) may only extend through June 30 of the fiscal
            year in which the funds were first made available.

    ``SEC. 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.

    ``SEC. 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.

    ``SEC. 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 2013 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.

    ``SEC. 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 applicant level with an
    emphasis on utilizing current technology including online applications
    and submission processes.

    ``SEC. 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 2014 through 2018.
                ``(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, 2018.

                     ``CHAPTER 4--DELTA REGIONAL AUTHORITY

    ``SEC. 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)).

    ``SEC. 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.

    ``SEC. 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.

    ``SEC. 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.

    ``SEC. 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 2013 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.

    ``SEC. 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).

    ``SEC. 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.

    ``SEC. 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 subtitle 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.

    ``SEC. 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.

    ``SEC. 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.

    ``SEC. 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).

    ``SEC. 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.

    ``SEC. 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 2014 through 2018, 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.

    ``SEC. 3814. TERMINATION OF AUTHORITY.

        ``This chapter and the authority provided under this chapter expire
    on October 1, 2018.

             ``CHAPTER 5--NORTHERN GREAT PLAINS REGIONAL AUTHORITY

    ``SEC. 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.

    ``SEC. 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 2013, 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.--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 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 fiscal year 2014, 100 percent;
                        ``(B) for fiscal year 2015, 75 percent; and
                        ``(C) for fiscal year 2016 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.--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 member 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,
                            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.--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, 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.

    ``SEC. 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.

    ``SEC. 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.--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 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, 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.

    ``SEC. 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.--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 3830 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.

    ``SEC. 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 2013 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.

    ``SEC. 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).

    ``SEC. 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.

    ``SEC. 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.--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.

    ``SEC. 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.--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 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.

    ``SEC. 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.

    ``SEC. 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.--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 to the Authority 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).
        ``(c) Annual Audit.--The Inspector General of the Department of
    Agriculture shall audit the activities, transactions, and records of
    the Authority on an annual basis for any fiscal year for which funds
    are appropriated.

    ``SEC. 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.

    ``SEC. 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 2014 through 2018, 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).

    ``SEC. 3835. TERMINATION OF AUTHORITY.

        ``The authority provided by this chapter terminates effective
    October 1, 2018.

                        ``Subtitle C--General Provisions

    ``SEC. 3901. FULL FAITH AND CREDIT.

        ``(a) In General.--A 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 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 guarantee is
            executed; or
                ``(2) participates in or condones.

    ``SEC. 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).

    ``SEC. 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)(A) except for activities conducted under the Housing
            Act of 1949 (42 U.S.C. 1441 et seq.), collect all claims and
            obligations administered by the Farm Service Agency, the Rural
            Utilities Service, the Rural Housing Service, or the Rural
            Business-Cooperative Service, or under any mortgage, lease,
            contract, or agreement entered into or administered by the
            Agency or Service; and
                ``(B) if the Secretary determines the action is necessary
            and advisable, pursue the collection to final collection in any
            court having jurisdiction;
                ``(6) 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;
                ``(7) 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;
                ``(8) 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
                ``(9) 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) $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.

    ``SEC. 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 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).

    ``SEC. 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.

    ``SEC. 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.

    ``SEC. 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) 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.

    ``SEC. 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.

    ``SEC. 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 not more than 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 not more than 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.

    ``SEC. 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.

    ``SEC. 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.

    ``SEC. 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.

    ``SEC. 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.

    ``SEC. 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.''.

    SEC. 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. 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).

                       Subtitle B--Rural Electrification

    SEC. 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''.

    SEC. 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 ``2018''.

    SEC. 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 ``2018''.

    SEC. 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.
                ``(4) Ultra-high speed service.--The term `ultra-high speed
            service' means broadband service operating at a 1 gigabit per
            second downstream transmission capacity.'';
                (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--
                                        ``(I) 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); or
                                        ``(II) to carry out a project under
                                    paragraph (4)(B)(ii);'';
                                (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 ``3'' and inserting ``2'';
                                        (II) in clause (i), by inserting
                                    ``the minimum acceptable level of
                                    broadband service established under
                                    subsection (e) in'' after ``service
                                    to''; and
                                        (III) by striking clause (ii) and
                                    inserting the following:
                                ``(ii) Exceptions.--Clause (i) shall not
                            apply if--
                                        ``(I) the applicant is eligible for
                                    funding under another title of this
                                    Act; or
                                        ``(II) the project is being carried
                                    out under paragraph (4)(B)(ii), unless
                                    an incumbent service provider is
                                    providing ultra-high speed service as
                                    of the date of an application for
                                    assistance submitted to the Secretary
                                    under this section.'';
                        (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 shall
                    establish pilot programs under which the Secretary may,
                    at the discretion of the Secretary, provide grants,
                    loans, or loan guarantees under this section to
                    eligible entities, including interested entities
                    described in subparagraph (A)--
                                ``(i) to address areas that are unserved or
                            have service levels below the minimum
                            acceptable level of broadband service
                            established under subsection (e); or
                                ``(ii) for the purposes of providing a
                            proposed service territory with ultra-high
                            speed service, subject to the conditions that--
                                        ``(I) not more than 5 projects, and
                                    not more than 1 project in any State,
                                    shall be carried out under this clause
                                    during the period beginning on the date
                                    of enactment of this Act and ending on
                                    September 30, 2018;
                                        ``(II) for each fiscal year, not
                                    more than 10 percent of the funds made
                                    available under subsection (l) shall be
                                    used to carry out this clause;
                                        ``(III) for each fiscal year, not
                                    more than 20 percent of the funds made
                                    available under subclause (II) shall be
                                    used for any 1 project; and
                                        ``(IV) paragraph (2)(A)(i) shall
                                    apply to the project, unless--
                                                ``(aa) the Secretary
                                            determines that no other
                                            project in the State is funded
                                            under this section; and
                                                ``(bb) no application for
                                            any other project that could be
                                            funded under this section,
                                            other than under this clause,
                                            is pending in the State.'';
                        (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
                            ``2018''; 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 ``2018''.

                           Subtitle C--Miscellaneous

    SEC. 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 ``2018''.
        (b) Conforming Amendment.--Section 1(b) of Public Law 102-551 (7
    U.S.C. 950aaa note) is amended by striking ``2012'' and inserting
    ``2018''.

    SEC. 6202. DEFINITION OF RURAL AREA FOR PURPOSES OF THE HOUSING ACT OF
                  1949.

        The second sentence of section 520 of the Housing Act of 1949 (42
    U.S.C. 1490) is amended--
                (1) by striking ``1990 or 2000 decennial census shall
            continue to be so classified until the receipt of data from the
            decennial census in the year 2010'' and inserting ``1990, 2000,
            or 2010 decennial census, and any area deemed to be a `rural
            area' 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''; and
                (2) by striking ``25,000'' and inserting ``35,000''.

    SEC. 6203. 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:

    ``SEC. 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.''.

    SEC. 6204. 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 $150,000,000, to
    remain available until expended.

    SEC. 6205. 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).

    SEC. 6206. 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.''.

    SEC. 6207. VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT PROGRAM GRANTS.

        Section 231(b) of the Agricultural Risk Protection Act of 2000 (7
    U.S.C. 1632a(b)) is amended--
                (1) in paragraph (6)--
                        (A) in subparagraph (B), by striking ``and'' at the
                    end;
                        (B) in subparagraph (C), by striking the period at
                    the end and inserting ``; and''; and
                        (C) by adding at the end the following:
                        ``(D) 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))).''; and
                (2) in paragraph (7)(B), by striking ``2012'' and inserting
            ``2017''.

              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.

        (a) Authorization of Appropriations.--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 ``2012'' and inserting
    ``2018''.
        (b) Duties of National Agricultural Research, Extension, Education,
    and Economics Advisory Board.--Section 1408(c) of the National
    Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
    U.S.C. 3123(c)) is amended--
                (1) in paragraph (3), by striking ``and'' at the end;
                (2) in paragraph (4)(C), by striking the period at the end
            and inserting ``; and''; and
                (3) by adding at the end the following:
                ``(5) consult with industry groups on agricultural
            research, extension, education, and economics, and make
            recommendations to the Secretary based on that consultation.''.

    SEC. 7102. SPECIALTY CROP COMMITTEE.

        Section 1408A of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3123a) is amended--
                (1) in subsection (b)--
                        (A) by striking ``Individuals'' and inserting the
                    following:
                ``(1) Eligibility.--Individuals'';
                        (B) by striking ``Members'' and inserting the
                    following:
                ``(2) Service.--Members''; and
                        (C) by adding at the end the following:
                ``(3) Diversity.--Membership of the specialty crops
            committee shall reflect diversity in the specialty crops
            represented.'';
                (2) in subsection (c), by adding at the end the following:
                ``(6) 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).'';
                (3) by redesignating subsections (d) and (e) as subsections
            (e) and (f), respectively;
                (4) by inserting after subsection (c) the following:
        ``(d) Consultation With Specialty Crop Industry.--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.''; and
                (5) in subsection (f) (as redesignated by paragraph (3)),
            by striking ``subsection (d)'' and inserting ``subsection
            (e)''.

    SEC. 7103. VETERINARY SERVICES GRANT PROGRAM.

        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:

    ``SEC. 1415B. VETERINARY SERVICES GRANT PROGRAM.

        ``(a) Definitions.--In this section:
                ``(1) Qualified entity.--The term `qualified entity'
            means--
                        ``(A) a for-profit or nonprofit entity located in
                    the United States that operates a veterinary clinic
                    providing veterinary services--
                                ``(i) 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
                                ``(ii) in response to a veterinarian
                            shortage situation;
                        ``(B) a State, national, allied, or regional
                    veterinary organization or specialty board recognized
                    by the American Veterinary Medical Association;
                        ``(C) a college or school of veterinary medicine
                    accredited by the American Veterinary Medical
                    Association;
                        ``(D) a university research foundation or
                    veterinary medical foundation;
                        ``(E) a department of veterinary science or
                    department of comparative medicine accredited by the
                    Department of Education;
                        ``(F) a State agricultural experiment station; and
                        ``(G) a State, local, or tribal government agency.
                ``(2) Veterinarian shortage situation.--The term
            `veterinarian shortage situation' means a veterinarian shortage
            situation determined by the Secretary under section 1415A(b).
        ``(b) Establishment of Program.--
                ``(1) Competitive grants.--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.
                ``(2) Eligibility requirements.--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--
                        ``(A) substantially relieve veterinarian shortage
                    situations;
                        ``(B) support or facilitate private veterinary
                    practices engaged in public health activities; or
                        ``(C) support or facilitate the practices of
                    veterinarians who are participating in or have
                    successfully completed a service requirement under
                    section 1415A(a)(2).
        ``(c) Award Processes and Preferences.--
                ``(1) Application, evaluation, and input processes.--In
            administering the grant program under this section, the
            Secretary shall--
                        ``(A) use an appropriate application and evaluation
                    process, as determined by the Secretary; and
                        ``(B) seek the input of interested persons.
                ``(2) Grant preferences.--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.
                ``(3) Additional preferences.--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.
                ``(4) Applicability of other provisions.--Sections 1413B,
            1462(a), 1469(a)(3), 1469(c), and 1470 apply to the
            administration of the grant program under this section.
        ``(d) Use of Grants To Relieve Veterinarian Shortage Situations and
    Support Veterinary Services.--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:
                ``(1) To assist veterinarians with establishing or
            expanding practices for the purpose of--
                        ``(A) equipping veterinary offices;
                        ``(B) sharing in the reasonable overhead costs of
                    the practices, as determined by the Secretary; or
                        ``(C) establishing mobile veterinary facilities in
                    which a portion of the facilities will address
                    education or extension needs.
                ``(2) 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.
                ``(3) 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.
                ``(4) 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.
                ``(5) 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).
                ``(6) 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.
        ``(e) Special Requirements for Certain Grants.--
                ``(1) Terms of service requirements.--
                        ``(A) In general.--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.
                        ``(B) Considerations.--In establishing a term of
                    service under subparagraph (A), the Secretary shall
                    consider only--
                                ``(i) the amount of the grant awarded; and
                                ``(ii) the specific purpose of the grant.
                ``(2) Breach remedies.--
                        ``(A) In general.--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.
                        ``(B) Waiver.--The Secretary may grant a waiver of
                    the repayment obligation for breach of contract if the
                    Secretary determines that the grant recipient
                    demonstrates extreme hardship or extreme need.
                        ``(C) Treatment of amounts recovered.--Funds
                    recovered under this paragraph shall--
                                ``(i) be credited to the account available
                            to carry out this section; and
                                ``(ii) remain available until expended.
        ``(f) Cost-Sharing Requirements.--
                ``(1) Recipient share.--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.
                ``(2) Waiver.--The Secretary may establish, by regulation,
            conditions under which the cost-sharing requirements of
            paragraph (1) may be reduced or waived.
        ``(g) Prohibition on Use of Grant Funds for Construction.--Funds
    made available for grants under this section may not be used--
                ``(1) to construct a new building or facility; or
                ``(2) to acquire, expand, remodel, or alter an existing
            building or facility, including site grading and improvement
            and architect fees.
        ``(h) Regulations.--Not later than 1 year after the date of
    enactment of this section, the Secretary shall promulgate regulations
    to carry out this section.
        ``(i) Authorization of Appropriations.--There is authorized to be
    appropriated to the Secretary to carry out this section $10,000,000 for
    fiscal year 2014 and each fiscal year thereafter, to remain available
    until expended.''.

    SEC. 7104. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURE SCIENCES
                  EDUCATION.

        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 ``section $60,000,000'' and all that follows and inserting the
    following: ``section--
                ``(1) $60,000,000 for each of fiscal years 1990 through
            2013; and
                ``(2) $40,000,000 for each of fiscal years 2014 through
            2018.''.

    SEC. 7105. AGRICULTURAL AND FOOD POLICY RESEARCH CENTERS.

        Section 1419A of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended--
                (1) in the section heading, by inserting ``agricultural and
            food'' before ``policy'';
                (2) in subsection (a), in the matter preceding paragraph
            (1)--
                        (A) by striking ``Secretary may'' and inserting
                    ``Secretary shall, acting through the Office of the
                    Chief Economist,''; and
                        (B) by inserting ``with a history of providing
                    unbiased, nonpartisan economic analysis to Congress''
                    after ``subsection (b)'';
                (3) in subsection (b), by striking ``other research
            institutions'' and all that follows through ``shall be
            eligible'' and inserting ``other public research institutions
            and organizations shall be eligible'';
                (4) in subsection (c)--
                        (A) in the matter preceding paragraph (1), by
                    inserting ``, 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, including information, analysis,
                    and research relating to drought mitigation,'' after
                    ``with this section''; and
                        (B) in paragraph (2), by inserting ``applied''
                    after ``theoretical''; and
                (5) by striking subsection (d) and inserting the following:
        ``(d) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $10,000,000 for fiscal year 2013
    and each fiscal year thereafter.''.

    SEC. 7106. EDUCATION GRANTS TO ALASKA NATIVE SERVING INSTITUTIONS AND
                  NATIVE HAWAIIAN SERVING INSTITUTIONS.

        Section 1419B of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3156) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (1), by striking ``(or grants
                    without regard to any requirement for competition)'';
                    and
                        (B) in paragraph (3), by striking ``2012'' and
                    inserting ``2018''; and
                (2) in subsection (b)(1), by striking ``(or grants without
            regard to any requirement for competition)''; and
                (3) in paragraph (3), by striking ``2012'' and inserting
            ``2018''.

    SEC. 7107. NUTRITION EDUCATION PROGRAM.

        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 ``2012'' and inserting ``2018''.

    SEC. 7108. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.

        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:

    ``SEC. 1433. APPROPRIATIONS FOR CONTINUING ANIMAL HEALTH AND DISEASE
                  RESEARCH PROGRAMS.

        ``(a) Authorization of Appropriations.--
                ``(1) In general.--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 2018.
                ``(2) Use of funds.--Funds made available under this
            section shall be used--
                        ``(A) 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);
                        ``(B) for administrative planning and direction;
                    and
                        ``(C) to purchase equipment and supplies necessary
                    for conducting research described in subparagraph
                    (A).''.

    SEC. 7109. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES
                  AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE
                  UNIVERSITY.

        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 ``2012'' and inserting ``2018''.

    SEC. 7110. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES
                  AND EQUIPMENT AT INSULAR AREA LAND-GRANT INSTITUTIONS.

        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 ``2012'' and inserting ``2018''.

    SEC. 7111. HISPANIC-SERVING INSTITUTIONS.

        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 ``2012'' and inserting ``2018''.

    SEC. 7112. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE
                  AND EDUCATION PROGRAMS.

        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:
        ``(c) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section--
                ``(1) such sums as are necessary for each of fiscal years
            1999 through 2013; and
                ``(2) $5,000,000 for each of fiscal years 2014 through
            2018.''.

    SEC. 7113. UNIVERSITY RESEARCH.

        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 ``2012'' each place it appears and
    inserting ``2018''.

    SEC. 7114. EXTENSION SERVICE.

        Section 1464 of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking
    ``2012'' and inserting ``2018''.

    SEC. 7115. SUPPLEMENTAL AND ALTERNATIVE CROPS.

        (a) Authorization of Appropriations and Termination.--Section 1473D
    of the National Agricultural Research, Extension, and Teaching Policy
    Act of 1977 (7 U.S.C. 3319d) is amended--
                (1) in subsection (a), by striking ``2012'' and inserting
            ``2018''; and
                (2) by adding at the end the following:
        ``(e) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section--
                ``(1) such sums as are necessary for each of fiscal years
            2012 and 2013; and
                ``(2) $1,000,000 for each of fiscal years 2014 through
            2018.''.
        (b) Competitive Grants.--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 ``use such research funding,
    special or competitive grants, or other means, as the Secretary
    determines,'' and inserting ``make competitive grants''.

    SEC. 7116. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.

        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 ``2012'' and inserting ``2018''.

    SEC. 7117. AQUACULTURE ASSISTANCE PROGRAMS.

        (a) Competitive Grants.--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 ``competitive'' before ``grants''.
        (b) Authorization of Appropriations.--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:

    ``SEC. 1477. AUTHORIZATION OF APPROPRIATIONS.

        ``(a) In General.--There are authorized to be appropriated to carry
    out this subtitle--
                ``(1) $7,500,000 for each of fiscal years 1991 through
            2013; and
                ``(2) $5,000,000 for each of fiscal years 2014 through
            2018.
        ``(b) Prohibition on Use.--Funds made available under this section
    may not be used to acquire or construct a building.''.

    SEC. 7118. RANGELAND RESEARCH PROGRAMS.

        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 ``subtitle'' and all that follows and inserting the following:
    ``subtitle--
                ``(1) $10,000,000 for each of fiscal years 1991 through
            2013; and
                ``(2) $2,000,000 for each of fiscal years 2014 through
            2018.''.

    SEC. 7119. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND RESPONSE.

        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 ``response such sums as are necessary'' and all that follows
    and inserting the following: ``response--
                ``(1) such sums as are necessary for each of fiscal years
            2002 through 2013; and
                ``(2) $20,000,000 for each of fiscal years 2014 through
            2018.''.

    SEC. 7120. DISTANCE EDUCATION AND RESIDENT INSTRUCTION GRANTS PROGRAM
                  FOR INSULAR AREA INSTITUTIONS OF HIGHER EDUCATION.

        (a) Distance Education Grants for Insular Areas.--
                (1) Competitive grants.--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 ``or
            noncompetitive''.
                (2) Authorization of appropriations.--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
            ``section'' and all that follows and inserting the following:
            ``section--
                ``(1) such sums as are necessary for each of fiscal years
            2002 through 2013; and
                ``(2) $2,000,000 for each of fiscal years 2014 through
            2018.''.
        (b) Resident Instruction Grants for Insular Areas.--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 ``such sums as
    are necessary'' and all that follows and inserting the following: ``to
    carry out this section--
                ``(1) such sums as are necessary for each of fiscal years
            2002 through 2013; and
                ``(2) $2,000,000 for each of fiscal years 2014 through
            2018.''.

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

    SEC. 7201. BEST UTILIZATION OF BIOLOGICAL APPLICATIONS.

        Section 1624 of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 5814) is amended--
                (1) by striking ``$40,000,000 for each fiscal year''; and
                (2) by inserting ``$40,000,000 for each of fiscal years
            2014 through 2018'' after ``chapter''.

    SEC. 7202. INTEGRATED MANAGEMENT SYSTEMS.

        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:
        ``(d) Authorization of Appropriations.--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 2014
    through 2018.''.

    SEC. 7203. SUSTAINABLE AGRICULTURE TECHNOLOGY DEVELOPMENT AND TRANSFER
                  PROGRAM.

        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:
        ``(f) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as are necessary for
    each of fiscal years 2014 through 2018.''.

    SEC. 7204. NATIONAL TRAINING PROGRAM.

        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:
        ``(i) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out the National Training Program $20,000,000 for
    each of fiscal years 2014 through 2018.''.

    SEC. 7205. NATIONAL GENETICS RESOURCES PROGRAM.

        Section 1635(b) of the Food, Agriculture, Conservation, and Trade
    Act of 1990 (7 U.S.C. 5844(b)) is amended--
                (1) by striking ``such funds as may be necessary''; and
                (2) by striking ``subtitle'' and all that follows and
            inserting the following: ``subtitle--
                ``(1) such sums as are necessary for each of fiscal years
            1991 through 2013; and
                ``(2) $1,000,000 for each of fiscal years 2014 through
            2018.''.

    SEC. 7206. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.

        Section 1641(c) of the Food, Agriculture, Conservation, and Trade
    Act of 1990 (7 U.S.C. 5855(c)) is amended by inserting ``and $1,000,000
    for each of fiscal years 2014 through 2018'' before the period at the
    end.

    SEC. 7207. AGRICULTURAL GENOME INITIATIVE.

        Section 1671(c) of the Food, Agriculture, Conservation, and Trade
    Act of 1990 (7 U.S.C. 5924(c)) is amended by adding at the end the
    following:
                ``(3) Consortia.--The Secretary shall encourage awards
            under this section to consortia of eligible entities.''.

    SEC. 7208. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

        Section 1672 of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 5925) is amended--
                (1) in the first sentence of subsection (a), by striking
            ``subsections (e) through (i) of'';
                (2) in subsection (b)(2)--
                        (A) by striking the first sentence and inserting
                    the following:
                        ``(A) In general.--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.''; and
                        (B) in the second sentence, by striking ``The
                    Secretary may not incur costs in excess of $1,000 for
                    any fiscal year in connection with each'' and inserting
                    the following:
                        ``(B) Costs.--The Secretary may not incur costs in
                    excess of $1,000 for any fiscal year in connection with
                    a'';
                (3) in subsection (e)--
                        (A) by striking paragraphs (1) through (5), (7),
                    (8), (11) through (43), (47), (48), (51), and (52);
                        (B) by redesignating paragraphs (6), (9), (10),
                    (44), (45), (46), (49), and (50) as paragraphs (1),
                    (2), (3), (4), (5), (6), (7), and (8), respectively;
                    and
                        (C) by adding at the end the following:
                ``(9) Cervidae initiative.--Research and extension grants
            may be made under this section to support collaborative
            research focusing on the development of viable strategies for
            the prevention, diagnosis, and treatment of parasites and
            diseases of farmed deer and elk such as epizootic hemorrhagic
            disease and chronic wasting disease and the mapping of the
            cervid genome.
                ``(10) Corn, soybean meal, cereal grains, and grain
            byproducts research and extension.--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.'';
                (4) by striking subsections (f), (g), and (i);
                (5) by redesignating subsections (h) and (j) as subsections
            (j) and (k), respectively;
                (6) by inserting after subsection (e) the following:
        ``(f) Pulse Health Initiative.--
                ``(1) Definitions.--In this subsection;
                        ``(A) Initiative.--The term `Initiative' means the
                    pulse health initiative established by paragraph (2).
                        ``(B) Pulse.--The term `pulse' means dry beans, dry
                    peas, lentils, and chickpeas or garbanzo beans.
                ``(2) Establishment.--Notwithstanding any other provision
            of law, during the period beginning on the date of enactment of
            the Agriculture Reform, Food, and Jobs Act of 2013 and ending
            on September 30, 2018, 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--
                        ``(A) research in health and nutrition, such as--
                                ``(i) identifying global dietary patterns
                            of pulse crops in relation to population
                            health;
                                ``(ii) 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
                                ``(iii) 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);
                        ``(B) research in functionality, such as--
                                ``(i) improving the functional properties
                            of pulse crops and pulse fractions;
                                ``(ii) developing new and innovative
                            technologies to improve pulse crops as an
                            ingredient in food products; and
                                ``(iii) developing nutrient-dense food
                            product solutions to ameliorate chronic disease
                            and enhance food security worldwide;
                        ``(C) research in sustainability to enhance global
                    food security, such as--
                                ``(i) plant breeding, genetics and genomics
                            to improve productivity, nutrient density, and
                            phytonutrient content for a growing world
                            population;
                                ``(ii) pest and disease management,
                            including resistance to pests and diseases
                            resulting in reduced application management
                            strategies; and
                                ``(iii) improving nitrogen fixation to
                            reduce the carbon and energy footprint of
                            agriculture;
                        ``(D) optimizing pulse cropping systems to reduce
                    water usage; and
                        ``(E) education and technical service, such as--
                                ``(i) providing technical expertise to help
                            food companies include nutrient-dense pulse
                            crops in innovative and healthy foods; and
                                ``(ii) establishing an educational program
                            to encourage the consumption and production of
                            pulse crops in the United States and other
                            countries.
                ``(3) Eligible entities.--The Secretary may carry out the
            Initiative through--
                        ``(A) Federal agencies, including the Agricultural
                    Research Service and the National Institute of Food and
                    Agriculture;
                        ``(B) National Laboratories;
                        ``(C) institutions of higher education;
                        ``(D) research institutions or organizations;
                        ``(E) private organizations or corporations;
                        ``(F) State agricultural experiment stations;
                        ``(G) individuals; or
                        ``(H) groups consisting of 2 or more entities or
                    individuals described in subparagraphs (A) through (G).
                ``(4) Research project grants.--
                        ``(A) In general.--In carrying out this subsection,
                    the Secretary shall award grants on a competitive
                    basis.
                        ``(B) In general.--The Secretary shall--
                                ``(i) seek and accept proposals for grants;
                                ``(ii) determine the relevance and merit of
                            proposals through a system of peer review, in
                            consultation with the pulse crop industry; and
                                ``(iii) award grants on the basis of merit,
                            quality, and relevance.
                        ``(C) Priorities.--In making grants under this
                    subsection, the Secretary shall provide a higher
                    priority to projects that--
                                ``(i) are multistate, multiinstitutional,
                            and multidisciplinary; and
                                ``(ii) include explicit mechanisms to
                            communicate results to the pulse crop industry
                            and the public.
                ``(5) Authorization of appropriations.--There is authorized
            to be appropriated to carry out this subsection $25,000,000 for
            each of fiscal years 2014 through 2018.
        ``(g) Forestry Products Advanced Utilization Research.--
                ``(1) Establishment.--The Secretary shall establish a
            forestry and forestry products research and extension
            initiative to develop and disseminate science-based tools that
            address the needs of the forestry sector and their respective
            regions, forest and timberland owners and managers, and
            forestry products engineering, manufacturing, and related
            interests, including--
                        ``(A) research in wood quality improvement with
                    respect to lumber strength and grade yield;
                        ``(B) improvement in forestry products, lumber, and
                    evaluation standards and valuation techniques;
                        ``(C) research and development of novel engineered
                    lumber products and renewable energy from wood;
                        ``(D) efforts to improve lumber quality and value
                    based on forest management techniques;
                        ``(E) efforts to improve forestry products
                    conversion and manufacturing efficiency, productivity,
                    and profitability over the long term (including
                    forestry product marketing); and
                        ``(F) other research to support the longevity,
                    sustainability, and profitability of timberland through
                    sound management and utilization.
                ``(2) Grants.--
                        ``(A) In general.--As part of the initiative
                    described in paragraph (1), the Secretary shall make
                    grants to eligible entities to carry out the activities
                    described in subparagraphs (A) through (F) of paragraph
                    (1).
                        ``(B) Eligible entities.--Entities eligible for
                    grants described in subparagraph (A) shall include--
                                ``(i) Federal agencies;
                                ``(ii) National Laboratories
                                ``(iii) colleges and universities;
                                ``(iv) research institutions and
                            organizations;
                                ``(v) private organizations or
                            corporations;
                                ``(vi) State agricultural experiment
                            stations; and
                                ``(vii) groups consisting of 2 or more such
                            entities.
                        ``(C) Priorities.--In making grants, the Secretary
                    shall give higher priority to projects that--
                                ``(i) are multistate, multiinstitutional,
                            or multidisciplinary;
                                ``(ii) include explicit mechanisms to
                            communicate results to producers, forestry
                            industry stakeholders, policymakers, and the
                            public; and
                                ``(iii) have--
                                        ``(I) extensive history and
                                    demonstrated experience in forestry and
                                    forestry products research;
                                        ``(II) existing capacity in
                                    forestry products research and
                                    dissemination; and
                                        ``(III) a demonstrated means of
                                    evaluating and responding to the needs
                                    of the related commercial sector.
                        ``(D) Administration.--
                                ``(i) Selection process.--In awarding
                            grants under this subsection, the Secretary
                            shall--
                                        ``(I) seek and accept proposals;
                                        ``(II) determine the relevance and
                                    merit of proposals through a system of
                                    peer and merit review; and
                                        ``(III) award grants on the basis
                                    of merit, quality, and relevance.
                                ``(ii) Terms.--The term of a grant made
                            under this paragraph may not exceed 10 years.
                                ``(iii) Matching funds.--The Secretary
                            shall require the recipient of a grant to
                            provide funds or in-kind support from non-
                            Federal sources in an amount that is at least
                            equal to the amount provided by the Federal
                            Government.
                                ``(iv) Buildings and facilities.--Funds
                            made available under this paragraph shall not
                            be used for the construction of a new building
                            or facility or the acquisition, expansion,
                            remodeling, or alteration of an existing
                            building or facility (including site grading
                            and improvement, and architect fees).
                                ``(v) Coordination.--The Secretary shall
                            ensure that any activities carried out under
                            this paragraph are done in coordination with
                            the Forest Products Laboratory.
                ``(3) Authorization of appropriations.--
                        ``(A) In general.--There is authorized to be
                    appropriated to carry out this subsection $7,000,000
                    for each of fiscal years 2014 through 2018.
                        ``(B) Matching funds.--To the extent practicable,
                    the Secretary shall match any funds received under
                    subparagraph (A) with funds received for the research
                    and development program of the Forest Service under
                    section 3 of the Forest and Rangeland Renewable
                    Resources Research Act of 1978 (16 U.S.C. 1642).
        ``(h) Training Coordination for Food and Agriculture Protection.--
                ``(1) In general.--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.
                ``(2) Eligibility.--
                        ``(A) In general.--For purposes of this subsection,
                    an eligible entity is a multiinstitutional consortium
                    that includes--
                                ``(i) a nonprofit institution that provides
                            administering food protection training; and
                                ``(ii) 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.
                        ``(B) Requirements.--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.
                        ``(C) Membership.--An eligible entity may alter the
                    consortium membership to meet specific training
                    expertise needs.
                ``(3) Duties of eligible entity.--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--
                        ``(A) 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;
                        ``(B) serving as the hub for the administration of
                    an open training network;
                        ``(C) implementing standards to ensure the delivery
                    of quality training through a national curricula;
                        ``(D) building and overseeing a nationally
                    recognized instructor cadre to ensure the availability
                    of highly qualified instructors;
                        ``(E) 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;
                        ``(F) assisting Federal agencies in the
                    implementation of food protection training requirements
                    including requirements contained in the Agriculture
                    Reform, Food, and Jobs Act of 2013, the FDA Food Safety
                    Modernization Act (Public Law 111-353; 124 Stat. 3885),
                    and amendments made by those Acts; and
                        ``(G) 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.
                ``(4) Authorization of appropriations.--There is authorized
            to be appropriated to carry out this section $20,000,000 for
            each of fiscal years 2014 through 2018, to remain available
            until expended.
        ``(i) Farm Animal Agriculture Integrated Research Initiative.--
                ``(1) Definition of initiative.--In this subsection, the
            term `Initiative' means the farm animal integrated research
            initiative established under paragraph (2).
                ``(2) Establishment.--Notwithstanding any other provision
            of law, during the period beginning on the date of enactment of
            the Agriculture Reform, Food, and Jobs Act of 2013 and ending
            on September 30, 2018, the Secretary shall carry out a farm
            animal integrated research initiative to address the critical
            needs of animal agriculture, by developing and disseminating
            science-based tools and information, including--
                        ``(A) research to promote food security, such as--
                                ``(i) improving feed efficiency;
                                ``(ii) improving energetic efficiency;
                                ``(iii) connecting genomics, proteomics,
                            metabolomics, and related phenomena to animal
                            production;
                                ``(iv) improving reproductive efficiency;
                            and
                                ``(v) enhancing pre- and post-harvest food
                            safety systems;
                        ``(B) research on the interrelationship between
                    animal and human health, such as--
                                ``(i) exploring new approaches for vaccine
                            development;
                                ``(ii) understanding and controlling
                            zoonoses, including the impact of zoonoses on
                            food safety;
                                ``(iii) improving animal health through
                            feed; and
                                ``(iv) enhancing product quality and
                            nutritive value; and
                        ``(C) research on stewardship, such as--
                                ``(i) minimizing or reducing the flow of
                            nutrients from animal production systems;
                                ``(ii) improving sustainability and
                            increasing efficiency of natural resource use;
                            and
                                ``(iii) better understanding animal
                            production systems and the interactions between
                            animals, plants, and human management.
                ``(3) Eligible entities.--The Secretary may carry out the
            Initiative through--
                        ``(A) Federal agencies, including the Agricultural
                    Research Service and the National Institute of Food and
                    Agriculture;
                        ``(B) National Laboratories;
                        ``(C) institutions of higher education;
                        ``(D) research institutions or organizations;
                        ``(E) private organizations or corporations;
                        ``(F) State agricultural experiment stations;
                        ``(G) individuals; and
                        ``(H) groups consisting of 2 or more entities or
                    individuals described in subparagraphs (A) through (G).
                ``(4) Research project grants.--
                        ``(A) In general.--In carrying out this subsection,
                    the Secretary shall award grants on a competitive basis
                    in accordance with subparagraphs (B) and (C).
                        ``(B) Process for awarding grants.--The Secretary
                    shall--
                                ``(i) seek and accept proposals for grants;
                                ``(ii) determine the relevance and merit of
                            proposals through a system of peer review, in
                            consultation with the animal agriculture
                            industry; and
                                ``(iii) award grants on the basis of merit,
                            quality, and relevance.
                        ``(C) Priorities.--In making grants under this
                    subsection, the Secretary shall give priority to
                    projects that--
                                ``(i) are multistate, multiinstitutional,
                            and multidisciplinary; and
                                ``(ii) include explicit mechanisms to
                            communicate results to the animal agriculture
                            industry and the public.
                ``(5) Authorization of appropriations.--There is authorized
            to be appropriated to carry out this subsection $50,000,000 for
            each of fiscal years 2014 through 2018.'';
                (7) in subsection (j) (as redesignated by paragraph (5)),
            by striking ``2012'' each place it appears and inserting
            ``2018''; and
                (8) in subsection (k) (as redesignated by paragraph (5)),
            by striking ``2012'' and inserting ``2018''.

    SEC. 7209. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.

        Section 1672B of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 5925b) is amended--
                (1) in subsection (a)--
                        (A) in the matter preceding paragraph (1), by
                    inserting ``, education,'' after ``support research'';
                        (B) in paragraph (1), by inserting ``and
                    improvement'' after ``development'';
                        (C) in paragraph (2), by striking ``to producers
                    and processors who use organic methods'' and inserting
                    ``of organic agricultural production and methods to
                    producers, processors, and rural communities'';
                        (D) in paragraph (5), by inserting ``and
                    researching solutions to'' after ``identifying''; and
                        (E) in paragraph (6), by striking ``and marketing''
                    and inserting ``, marketing, and food safety'';
                (2) by striking subsection (e);
                (3) by redesignating subsection (f) as subsection (e); and
                (4) in paragraph (1) of subsection (e) (as so
            redesignated)--
                        (A) in the heading, by striking ``for fiscal years
                    2008 through 2012'';
                        (B) in subparagraph (A), by striking ``and'' at the
                    end;
                        (C) in subparagraph (B), by striking the period at
                    the end and inserting ``; and''; and
                        (D) by adding at the end the following:
                        ``(C) $16,000,000 for each of fiscal years 2014
                    through 2018.''.

    SEC. 7210. FARM BUSINESS MANAGEMENT.

        Section 1672D(d) of the Food, Agriculture, Conservation, and Trade
    Act of 1990 (7 U.S.C. 5925f(d)) is amended by striking ``such sums as
    are necessary to carry out this section.'' and inserting the following:
    ``to carry out this section--
                ``(1) such sums as are necessary for fiscal year 2013; and
                ``(2) $5,000,000 for each of fiscal years 2014 through
            2018.''.

    SEC. 7211. REGIONAL CENTERS OF EXCELLENCE.

        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:

    ``SEC. 1673. REGIONAL CENTERS OF EXCELLENCE.

        ``(a) Establishment.--The Secretary may prioritize regional centers
    of excellence established for specific agricultural commodities for the
    receipt of funding.
        ``(b) Composition.--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.
        ``(c) Criteria for Regional Centers of Excellence.--The criteria
    for consideration to be a regional center of excellence shall include
    efforts--
                ``(1) to ensure coordination and cost-effectiveness by
            reducing unnecessarily duplicative efforts regarding research,
            teaching, and extension;
                ``(2) to leverage available resources by using public/
            private partnerships among agricultural industry groups,
            institutions of higher education, and the Federal Government;
                ``(3) to implement teaching initiatives to increase
            awareness and effectively disseminate solutions to target
            audiences through extension activities;
                ``(4) to increase the economic returns to rural communities
            by identifying, attracting, and directing funds to high-
            priority agricultural issues; and
                ``(5) 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).
        ``(d) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $10,000,000 for each of fiscal
    years 2014 through 2018.''.

    SEC. 7212. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

        Section 1680(c)(1) of the Food, Agriculture, Conservation, and
    Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended--
                (1) by striking ``is'' and inserting ``are''; and
                (2) by striking ``section'' and all that follows and
            inserting the following: ``section--
                        ``(A) $6,000,000 for each of fiscal years 1999
                    through 2013; and
                        ``(B) $5,000,000 for each of fiscal years 2014
                    through 2018.''.

    SEC. 7213. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

        Section 2381(e) of the Food, Agriculture, Conservation, and Trade
    Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking ``2012'' and
    inserting ``2018''.

    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.

        Section 103(a)(2) of the Agricultural Research, Extension, and
    Education Reform Act of 1998 (7 U.S.C. 7613(a)(2)) is amended--
                (1) by striking the paragraph designation and heading and
            inserting the following:
                ``(2) Relevance and merit review of research, extension,
            and education grants.--'';
                (2) in subparagraph (A)--
                        (A) by inserting ``relevance and'' before
                    ``merit''; and
                        (B) by striking ``extension or education'' and
                    inserting, ``research, extension, or education''; and
                (3) in subparagraph (B) by inserting ``on a continuous
            basis'' after ``procedures''.

    SEC. 7302. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE
                  GRANTS PROGRAM.

        Section 406(f) of the Agricultural Research, Extension, and
    Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by striking
    ``2012'' and inserting ``2018''.

    SEC. 7303. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, TRITICALE,
                  AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY TILLETIA
                  INDICA.

        Section 408(e) of the Agricultural Research, Extension, and
    Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by striking
    ``such sums as may be necessary for each of fiscal years 1999 through
    2012'' and inserting ``$10,000,000 for each of fiscal years 2014
    through 2018''.

    SEC. 7304. GRANTS FOR YOUTH ORGANIZATIONS.

        Section 410(d) of the Agricultural Research, Extension, and
    Education Reform Act of 1998 (7 U.S.C. 7630(d)) is amended by striking
    ``section such sums as are necessary'' and all that follows and
    inserting the following: ``section--
                ``(1) such sums as are necessary for each of fiscal years
            2008 through 2013; and
                ``(2) $3,000,000 for each of fiscal years 2014 through
            2018.''.

    SEC. 7305. SPECIALTY CROP RESEARCH INITIATIVE.

        Section 412 of the Agricultural Research, Extension, and Education
    Reform Act of 1998 (7 U.S.C. 7632) is amended--
                (1) in subsection (b)(3), by inserting ``handling and
            processing,'' after ``production efficiency,'';
                (2) in subsection (e)--
                        (A) in paragraph (1)--
                                (i) in subparagraph (B), by striking
                            ``and'' at the end;
                                (ii) in subparagraph (C), by striking the
                            period at the end and inserting ``; and''; and
                                (iii) by inserting after subparagraph (C)
                            the following:
                        ``(D) 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.''; and
                        (B) in paragraph (3), by striking ``non-Federal''
                    and all that follows through the end of the paragraph
                    and inserting ``other sources in an amount that is at
                    least equal to the amount provided by a grant received
                    under this section.''; and
                (3) in subsection (h), by striking paragraph (3) and
            inserting the following:
                ``(3) Subsequent funding.--Of the funds of the Commodity
            Credit Corporation, the Secretary shall make available to carry
            out this section--
                        ``(A) $25,000,000 for fiscal year 2014;
                        ``(B) $30,000,000 for each of fiscal years 2015 and
                    2016;
                        ``(C) $65,000,000 for fiscal year 2017; and
                        ``(D) $50,000,000 for fiscal year 2018 and each
                    fiscal year thereafter.''.

    SEC. 7306. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.

        Section 604(e) of the Agricultural Research, Extension, and
    Education Reform Act of 1998 (7 U.S.C. 7642(e)) is amended by striking
    ``2012'' and inserting ``2018''.

    SEC. 7307. OFFICE OF PEST MANAGEMENT POLICY.

        Section 614(f) of the Agricultural Research, Extension, and
    Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended--
                (1) by striking ``such sums as are necessary''; and
                (2) by striking ``section'' and all that follows and
            inserting the following: ``section--
                ``(1) such sums as are necessary for each of fiscal years
            1999 through 2013; and
                ``(2) $3,000,000 for each of fiscal years 2014 through
            2018.''.

    SEC. 7308. AUTHORIZATION OF REGIONAL INTEGRATED PEST MANAGEMENT
                  CENTERS.

        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:

    ``SEC. 621. AUTHORIZATION OF REGIONAL INTEGRATED PEST MANAGEMENT
                  CENTERS.

        ``(a) In General.--There are established 4 regional integrated pest
    management centers (referred to in this section as the `Centers'),
    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.
        ``(b) Purposes.--The purposes of the Centers shall be--
                ``(1) to strengthen the connection of the Department with
            production agriculture, research, and extension programs, and
            agricultural stakeholders throughout the United States;
                ``(2) to increase the effectiveness of providing pest
            management solutions for the private and public sectors;
                ``(3) to quickly respond to information needs of the public
            and private sectors; and
                ``(4) to improve communication among the relevant
            stakeholders.
        ``(c) Duties.--In meeting the purposes described in subsection (b)
    and otherwise carrying out this section, the Centers shall--
                ``(1) develop regional strategies to address pest
            management needs;
                ``(2) 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;
                ``(3) establish a national pest management communication
            network that includes--
                        ``(A) the agencies of the Department and other
                    government agencies;
                        ``(B) scientists at institutions of higher
                    education; and
                        ``(C) stakeholders focusing on pest management
                    issues;
                ``(4) serve as regional hubs responsible for ensuring
            efficient access to pest management expertise and data
            available through institutions of higher education; and
                ``(5) on behalf of the Department, manage grants that can
            be most effectively and efficiently delivered at the regional
            level, as determined by the Secretary.''.

                             Subtitle D--Other Laws

    SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT.

        Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C.
    178n(a)) is amended--
                (1) by striking ``such sums as are necessary''; and
                (2) by striking ``Act'' and all that follows and inserting
            the following: ``Act--
                ``(1) such sums as are necessary for each of fiscal years
            1991 through 2013; and
                ``(2) $2,000,000 for each of fiscal years 2014 through
            2018.''.

    SEC. 7402. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.

        (a) Definition of 1994 Institutions.--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:

    ``SEC. 532. DEFINITION OF 1994 INSTITUTIONS.

        ``In this part, the term `1994 Institutions' means any 1 of the
    following:
                ``(1) Aaniiih Nakoda College.
                ``(2) Bay Mills Community College.
                ``(3) Blackfeet Community College.
                ``(4) Cankdeska Cikana Community College.
                ``(5) Chief Dull Knife Memorial College.
                ``(6) College of Menominee Nation.
                ``(7) College of the Muscogee Nation.
                ``(8) D-Q University.
                ``(9) Dine College.
                ``(10) Fond du Lac Tribal and Community College.
                ``(11) Fort Berthold Community College.
                ``(12) Fort Peck Community College.
                ``(13) Haskell Indian Nations University.
                ``(14) Ilisagvik College.
                ``(15) Institute of American Indian and Alaska Native
            Culture and Arts Development.
                ``(16) Keweenaw Bay Ojibwa Community College.
                ``(17) Lac Courte Oreilles Ojibwa Community College.
                ``(18) Leech Lake Tribal College.
                ``(19) Little Big Horn College.
                ``(20) Little Priest Tribal College.
                ``(21) Navajo Technical College.
                ``(22) Nebraska Indian Community College.
                ``(23) Northwest Indian College.
                ``(24) Oglala Lakota College.
                ``(25) Saginaw Chippewa Tribal College.
                ``(26) Salish Kootenai College.
                ``(27) Sinte Gleska University.
                ``(28) Sisseton Wahpeton College.
                ``(29) Sitting Bull College.
                ``(30) Southwestern Indian Polytechnic Institute.
                ``(31) Stone Child College.
                ``(32) Tohono O'odham Community College.
                ``(33) Turtle Mountain Community College.
                ``(34) United Tribes Technical College.
                ``(35) White Earth Tribal and Community College.''.
        (b) Endowment for 1994 Institutions.--
                (1) In general.--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--
                        (A) in subsection (a)(2)(A)(ii), by striking ``of
                    such Act as added by section 534(b)(1) of this part''
                    and inserting ``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))''; and
                        (B) in subsection (b), in the first sentence by
                    striking ``2012'' and inserting ``2018''.
                (2) Conforming amendment.--Section 3(d) of the Smith-Lever
            Act (7 U.S.C. 343(d)) is amended in the second sentence by
            inserting ``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)),'' before ``may compete for''.
        (c) Institutional Capacity Building Grants.--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 ``2012'' each place it
    appears in subsections (b)(1) and (c) and inserting ``2018''.
        (d) Research Grants.--
                (1) Authorization of appropriations.--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 ``2012'' and inserting ``2018''.
                (2) Research grant requirements.--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 ``with at
            least 1 other land-grant college or university'' and all that
            follows and inserting the following: ``with--
                ``(1) the Agricultural Research Service of the Department
            of Agriculture; or
                ``(2) at least 1--
                        ``(A) other land-grant college or university
                    (exclusive of another 1994 Institution);
                        ``(B) 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
                        ``(C) cooperating forestry school (as defined in
                    that section).''.
        (e) Effective Date.--The amendments made by subsections (a), (b),
    and (d)(2) take effect on October 1, 2013.

    SEC. 7403. RESEARCH FACILITIES ACT.

        Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is
    amended by striking ``2012'' and inserting ``2018''.

    SEC. 7404. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANT ACT.

        Section 2 of the Competitive, Special, and Facilities Research
    Grant Act (7 U.S.C. 450i) is amended--
                (1) in subsection (b)(11)(A)--
                        (A) in the matter preceding clause (i), by striking
                    ``2012'' and inserting ``2018''; and
                        (B) in clause (i), by striking ``integrated
                    research'' and all that follows through ``; and'' and
                    inserting ``integrated research, extension, and
                    education activities; and''; and
                (2) by adding at the end the following:
        ``(l) Streamlining Grant Application Process.--Not later than 1
    year after the date of enactment of this subsection, the Secretary
    shall submit to Congress a report that includes--
                ``(1) 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
                ``(2) 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).''.

    SEC. 7405. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM UNDER DEPARTMENT
                  OF AGRICULTURE REORGANIZATION ACT OF 1994.

        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:
                        ``(A) on September 30, 2018; or''.

    SEC. 7406. RENEWABLE RESOURCES EXTENSION ACT OF 1978.

        (a) Authorization of Appropriations.--Section 6 of the Renewable
    Resources Extension Act of 1978 (16 U.S.C. 1675) is amended in the
    first sentence by striking ``2012'' and inserting ``2018''.
        (b) Termination Date.--Section 8 of the Renewable Resources
    Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-306) is
    amended by striking ``2012'' and inserting ``2018''.

    SEC. 7407. NATIONAL AQUACULTURE ACT OF 1980.

        Section 10 of the National Aquaculture Act of 1980 (16 U.S.C. 2809)
    is amended by striking ``2012'' each place it appears and inserting
    ``2018''.

    SEC. 7408. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM UNDER FARM
                  SECURITY AND RURAL INVESTMENT ACT OF 2002.

        Section 7405 of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 3319f) is amended--
                (1) in subsection (c)(8)--
                        (A) in subparagraph (B), by striking ``and'' at the
                    end;
                        (B) in subparagraph (C), by striking the period at
                    the end and inserting ``; and''; and
                        (C) by adding at the end the following:
                        ``(D) beginning farmers and ranchers who are
                    veterans (as defined in section 101 of title 38, United
                    States Code).''; and
                (2) by redesignating subsection (h) as subsection (i);
                (3) by inserting after subsection (g) the following:
        ``(h) State Grants.--
                ``(1) Definition of eligible entity.--In this subsection,
            the term `eligible entity' means--
                        ``(A) an agency of a State or political subdivision
                    of a State;
                        ``(B) a national, State, or regional organization
                    of agricultural producers; and
                        ``(C) any other entity determined appropriate by
                    the Secretary.
                ``(2) Grants.--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.''; and
                (4) in subsection (i) (as redesignated by paragraph (2))--
                        (A) in paragraph (1)--
                                (i) in the heading, by striking ``for
                            fiscal years 2009 through 2012'';
                                (ii) in subparagraph (A), by striking
                            ``and'' at the end;
                                (iii) in subparagraph (B), by striking the
                            period at the end and inserting ``; and''; and
                                (iv) by adding at the end the following:
                        ``(C) $17,000,000 for each of fiscal years 2014
                    through 2018, to remain available until expended.'';
                        (B) in paragraph (2)--
                                (i) in the heading, by striking ``for
                            fiscal years 2009 through 2012''; and
                                (ii) striking ``2012'' and inserting
                            ``2018''; and
                        (C) by striking paragraph (3).

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

                         PART I--AGRICULTURAL SECURITY

    SEC. 7501. AGRICULTURAL BIOSECURITY COMMUNICATION CENTER.

        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:
        ``(c) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section--
                ``(1) such sums as are necessary for each of fiscal years
            2008 through 2013; and
                ``(2) $2,000,000 for each of fiscal years 2014 through
            2018.''.

    SEC. 7502. ASSISTANCE TO BUILD LOCAL CAPACITY IN AGRICULTURAL
                  BIOSECURITY PLANNING, PREPARATION, AND RESPONSE.

        Section 14113 of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 8913) is amended--
                (1) in subsection (a)(2)--
                        (A) by striking ``such sums as may be necessary'';
                    and
                        (B) by striking ``subsection'' and all that follows
                    and inserting the following: ``subsection--
                ``(1) such sums as are necessary for each of fiscal years
            2008 through 2013; and
                ``(2) $15,000,000 for each of fiscal years 2014 through
            2018.''; and
                (2) in subsection (b)(2), by striking ``is authorized to be
            appropriated to carry out this subsection'' and all that
            follows and inserting the following: ``are authorized to be
            appropriated to carry out this subsection--
                ``(1) $25,000,000 for each of fiscal years 2008 through
            2013; and
                ``(2) $15,000,000 for each of fiscal years 2014 through
            2018.''.

    SEC. 7503. RESEARCH AND DEVELOPMENT OF AGRICULTURAL COUNTERMEASURES.

        Section 14121(b) of the Food, Conservation, and Energy Act of 2008
    (7 U.S.C. 8921(b)) is amended by striking ``is authorized to be
    appropriated to carry out this section'' and all that follows and
    inserting the following: ``are authorized to be appropriated to carry
    out this section--
                ``(1) $50,000,000 for each of fiscal years 2008 through
            2013; and
                ``(2) $15,000,000 for each of fiscal years 2014 through
            2018.''.

    SEC. 7504. AGRICULTURAL BIOSECURITY GRANT PROGRAM.

        Section 14122(e) of the Food, Conservation, and Energy Act of 2008
    (7 U.S.C. 8922(e)) is amended--
                (1) by striking ``such sums as are necessary''; and
                (2) by striking ``section'' and all that follows and
            inserting the following: ``section--
                ``(1) such sums as are necessary for each of fiscal years
            2008 through 2013, to remain available until expended; and
                ``(2) $5,000,000 for each of fiscal years 2014 through
            2018, to remain available until expended.''.

                             PART II--MISCELLANEOUS

    SEC. 7511. GRAZINGLANDS RESEARCH LABORATORY.

        Section 7502 of the Food, Conservation, and Energy Act of 2008
    (Public Law 110-246; 112 Stat. 2019) is amended by striking ``for the
    5-year period beginning on the date of enactment of this Act'' and
    inserting ``until September 30, 2018''.

    SEC. 7512. BUDGET SUBMISSION AND FUNDING.

        Section 7506 of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 7614c) is amended--
                (1) in subsection (a)--
                        (A) by striking ``(a) Definition of Competitive
                    Programs.--In this section, the term''; and inserting
                    the following:
        ``(a) Definitions.--In this section:
                ``(1) Competitive programs.--The term''; and
                        (B) by adding at the end the following:
                ``(2) Covered program.--The term `covered program' means--
                        ``(A) 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
                        ``(B) 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.
                ``(3) Request for awards.--The term `request for awards'
            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.''; and
                (2) by adding at the end the following:
        ``(e) Additional Presidential Budget Submission Requirement.--
                ``(1) In general.--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.
                ``(2) Information described.--The information described in
            this paragraph includes--
                        ``(A) baseline information, including with respect
                    to each covered program--
                                ``(i) the funding level for the program for
                            the fiscal year preceding the year the annual
                            budget submission of the President is
                            submitted;
                                ``(ii) the funding level requested in the
                            annual budget submission of the President,
                            including any increase or decrease in the
                            funding level; and
                                ``(iii) an explanation justifying any
                            change from the funding level specified in
                            clause (i) to the level specified in clause
                            (ii);
                        ``(B) 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;
                        ``(C) 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--
                                ``(i) 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));
                                ``(ii) 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));
                                ``(iii) each grant awarded under section
                            1672B(a) of the Food, Agriculture,
                            Conservation, and Trade Act of 1990 (7 U.S.C.
                            5925b(a));
                                ``(iv) 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
                                ``(v) 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
                        ``(D) any other information the Secretary
                    determines will increase congressional oversight with
                    respect to covered programs.
        ``(f) Report of the Secretary of Agriculture.--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--
                ``(1) a review of the extent to which those activities--
                        ``(A) are duplicative or overlap within the
                    Department of Agriculture; or
                        ``(B) are similar to activities carried out by--
                                ``(i) other Federal agencies;
                                ``(ii) the States (including the District
                            of Columbia, the Commonwealth of Puerto Rico,
                            and other territories or possessions of the
                            United States);
                                ``(iii) institutions of higher education
                            (as defined in section 101 of the Higher
                            Education Act of 1965 (20 U.S.C. 1001)); or
                                ``(iv) the private sector; and
                ``(2) for each report submitted under this section on or
            after January 1, 2014, a 5-year projection of national
            priorities with respect to agricultural research, extension,
            and education, taking into account both domestic and
            international needs.''.

    SEC. 7513. NATURAL PRODUCTS RESEARCH PROGRAM.

        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:
        ``(e) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $7,000,000 for each of fiscal
    years 2014 through 2018.''.

    SEC. 7514. SUN GRANT PROGRAM.

        (a) In General.--Section 7526 of the Food, Conservation, and Energy
    Act of 2008 (7 U.S.C. 8114) is amended--
                (1) in subsection (a)(4)(B), by striking ``the Department
            of Energy'' and inserting ``other appropriate Federal agencies
            (as determined by the Secretary)'';
                (2) in subsection (b)(1)--
                        (A) in subparagraph (A), by striking ``at South
                    Dakota State University'';
                        (B) in subparagraph (B), by striking ``at the
                    University of Tennessee at Knoxville'';
                        (C) in subparagraph (C), by striking ``at Oklahoma
                    State University'';
                        (D) in subparagraph (D), by striking ``at Oregon
                    State University'';
                        (E) in subparagraph (E), by striking ``at Cornell
                    University''; and
                        (F) in subparagraph (F), by striking ``at the
                    University of Hawaii'';
                (3) in subsection (c)(1)--
                        (A) in subparagraph (B), by striking ``multistate''
                    and all that follows through ``technology
                    implementation'' and inserting ``integrated, multistate
                    research, extension, and education programs on
                    technology development and technology implementation'';
                        (B) by striking subparagraph (C); and
                        (C) by redesignating subparagraph (D) as
                    subparagraph (C);
                (4) in subsection (d)--
                        (A) in paragraph (1)--
                                (i) by striking ``gasification'' and
                            inserting ``bioproducts''; and
                                (ii) by striking ``the Department of
                            Energy'' and inserting ``other appropriate
                            Federal agencies'';
                        (B) by striking paragraph (2);
                        (C) by redesignating paragraphs (3) and (4) as
                    paragraphs (2) and (3), respectively; and
                        (D) in paragraph (1), by striking ``in accordance
                    with paragraph (2)''; and
                (5) in subsection (g), by striking ``2012'' and inserting
            ``2018''.
        (b) Conforming Amendments.--Section 7526(f) of the Food,
    Conservation, and Energy Act of 2008 (7 U.S.C. 8114(f)) is amended--
                (1) in paragraph (1), by striking ``subsection
            (c)(1)(D)(i)'' and inserting ``subsection (c)(1)(C)(i)''; and
                (2) in paragraph (2), by striking ``subsection (d)(1)'' and
            inserting ``subsection (d)''.

                           Subtitle F--Miscellaneous

    SEC. 7601. FOUNDATION FOR FOOD AND AGRICULTURE RESEARCH.

        (a) Definitions.--In this section:
                (1) Board.--The term ``Board'' means the Board of Directors
            described in subsection (e).
                (2) Department.--The term ``Department'' means the
            Department of Agriculture.
                (3) Foundation.--The term ``Foundation'' means the
            Foundation for Food and Agriculture Research established under
            subsection (b).
                (4) Secretary.--The term ``Secretary'' means the Secretary
            of Agriculture.
        (b) Establishment.--
                (1) In general.--The Secretary shall establish a nonprofit
            corporation to be known as the ``Foundation for Food and
            Agriculture Research''.
                (2) Status.--The Foundation shall not be an agency or
            instrumentality of the United States Government.
        (c) Purposes.--The purposes of the Foundation shall be--
                (1) to advance the research mission of the Department by
            supporting agricultural research activities focused on
            addressing key problems of national and international
            significance including--
                        (A) plant health, production, and plant products;
                        (B) animal health, production, and products;
                        (C) food safety, nutrition, and health;
                        (D) renewable energy, natural resources, and the
                    environment;
                        (E) agricultural and food security;
                        (F) agriculture systems and technology; and
                        (G) agriculture economics and rural communities;
                    and
                (2) to foster collaboration with agricultural researchers
            from the Federal Government, institutions of higher education,
            industry, and nonprofit organizations.
        (d) Duties.--
                (1) In general.--The Foundation shall--
                        (A) 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;
                        (B) in consultation with the Secretary--
                                (i) identify existing and proposed Federal
                            intramural and extramural research and
                            development programs relating to the purposes
                            of the Foundation described in subsection (c);
                            and
                                (ii) coordinate Foundation activities with
                            those programs so as to minimize duplication of
                            existing efforts;
                        (C) 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);
                        (D) facilitate technology transfer and release of
                    information and data gathered from the activities of
                    the Foundation to the agricultural research community;
                        (E) promote and encourage the development of the
                    next generation of agricultural research scientists;
                    and
                        (F) carry out such other activities as the Board
                    determines to be consistent with the purposes of the
                    Foundation.
                (2) Authority.--Subject to paragraph (3), the Foundation
            shall be the sole entity responsible for carrying out the
            duties enumerated in this subsection.
                (3) Relationship to other activities.--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.
        (e) Board of Directors.--
                (1) Establishment.--The Foundation shall be governed by a
            Board of Directors.
                (2) Composition.--
                        (A) In general.--The Board shall be composed of
                    appointed and ex-officio, nonvoting members.
                        (B) Ex-officio members.--The ex-officio members of
                    the Board shall be the following individuals or
                    designees:
                                (i) The Secretary.
                                (ii) The Under Secretary of Agriculture for
                            Research, Education, and Economics.
                                (iii) The Administrator of the Agricultural
                            Research Service.
                                (iv) The Director of the National Institute
                            of Food and Agriculture.
                                (v) The Director of the National Science
                            Foundation.
                        (C) Appointed members.--
                                (i) In general.--The ex-officio members of
                            the Board under subparagraph (B) shall, by
                            majority vote, appoint to the Board 15
                            individuals, of whom--
                                        (I) 8 shall be selected from a list
                                    of candidates to be provided by the
                                    National Academy of Sciences; and
                                        (II) 7 shall be selected from lists
                                    of candidates provided by industry.
                                (ii) Requirements.--
                                        (I) Expertise.--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.
                                        (II) Limitation.--No employee of
                                    the Federal Government may serve as an
                                    appointed member of the Board under
                                    this subparagraph.
                                        (III) Not federal employment.--
                                    Appointment to the Board under this
                                    subparagraph shall not constitute
                                    Federal employment.
                                (iii) Authority.--All appointed members of
                            the Board shall be voting members.
                        (D) Chair.--The Board shall, from among the members
                    of the Board, designate an individual to serve as Chair
                    of the Board.
                (3) Initial meeting.--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--
                        (A) to incorporate the Foundation; and
                        (B) to appoint the members of the Board in
                    accordance with paragraph (2)(C)(i).
                (4) Duties.--
                        (A) In general.--The Board shall--
                                (i) establish bylaws for the Foundation
                            that, at a minimum, include--
                                        (I) policies for the selection of
                                    future Board members, officers,
                                    employees, agents, and contractors of
                                    the Foundation;
                                        (II) policies, including ethical
                                    standards, for--
                                                (aa) the acceptance,
                                            solicitation, and disposition
                                            of donations and grants to the
                                            Foundation; and
                                                (bb) 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;
                                        (III) 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;
                                        (IV) policies for writing, editing,
                                    printing, publishing, and vending of
                                    books and other materials;
                                        (V) 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
                                        (VI) specific duties for the
                                    Executive Director;
                                (ii) prioritize and provide overall
                            direction for the activities of the Foundation;
                                (iii) evaluate the performance of the
                            Executive Director; and
                                (iv) carry out any other necessary
                            activities regarding the Foundation.
                        (B) Establishment of bylaws.--In establishing
                    bylaws under subparagraph (A)(i), the Board shall
                    ensure that the bylaws do not--
                                (i) reflect unfavorably on the ability of
                            the Foundation to carry out the duties of the
                            Foundation in a fair and objective manner; or
                                (ii) 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.
                (5) Terms and vacancies.--
                        (A) Terms.--
                                (i) In general.--The term of each member of
                            the Board appointed under paragraph (2)(C)
                            shall be 5 years.
                                (ii) Partial terms.--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.
                                (iii) Transition.--A member of the Board
                            may continue to serve after the expiration of
                            the term of the member until a successor is
                            appointed.
                        (B) Vacancies.--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.
                (6) Compensation.--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.
                (7) Meetings and quorum.--A majority of the members of the
            Board shall constitute a quorum for purposes of conducting
            business of the Board.
        (f) Administration.--
                (1) Executive director.--
                        (A) In general.--The Board shall hire an Executive
                    Director who shall carry out such duties and
                    responsibilities as the Board may prescribe.
                        (B) Service.--The Executive Director shall serve at
                    the pleasure of the Board.
                (2) Administrative powers.--
                        (A) In general.--In carrying out this section, the
                    Board, acting through the Executive Director, may--
                                (i) adopt, alter, and use a corporate seal,
                            which shall be judicially noticed;
                                (ii) 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;
                                (iii) 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;
                                (iv) prescribe the manner in which--
                                        (I) real or personal property of
                                    the Foundation is acquired, held, and
                                    transferred;
                                        (II) general operations of the
                                    Foundation are to be conducted; and
                                        (III) the privileges granted to the
                                    Board by law are exercised and enjoyed;
                                (v) 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;
                                (vi) enter into contracts with public and
                            private organizations for the writing, editing,
                            printing, and publishing of books and other
                            material;
                                (vii) hold, administer, invest, and spend
                            any gift, devise, or bequest of real or
                            personal property made to the Foundation;
                                (viii) enter into such contracts, leases,
                            cooperative agreements, and other transactions
                            as the Board considers appropriate to conduct
                            the activities of the Foundation;
                                (ix) 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;
                                (x) 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;
                                (xi) sue and be sued in the corporate name
                            of the Foundation, and complain and defend in
                            courts of competent jurisdiction;
                                (xii) appoint other groups of advisors as
                            may be determined necessary to carry out the
                            functions of the Foundation; and
                                (xiii) exercise such other incidental
                            powers as are necessary to carry out the duties
                            and functions of the Foundation in accordance
                            with this section.
                        (B) Limitation.--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.
                (3) Records.--
                        (A) Audits.--The Foundation shall--
                                (i) provide for annual audits of the
                            financial condition of the Foundation; and
                                (ii) 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.
                        (B) Reports.--
                                (i) Annual report on foundation.--
                                        (I) In general.--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--
                                                (aa) a description of
                                            Foundation activities,
                                            including accomplishments; and
                                                (bb) a comprehensive
                                            statement of the operations and
                                            financial condition of the
                                            Foundation.
                                        (II) Financial condition.--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--
                                                (aa) the source of the
                                            gifts or grants; and
                                                (bb) any restrictions on
                                            the purposes for which the gift
                                            or grant may be used.
                                        (III) Availability.--The Foundation
                                    shall--
                                                (aa) make copies of each
                                            report submitted under
                                            subclause (I) available for
                                            public inspection; and
                                                (bb) on request, provide a
                                            copy of the report to any
                                            individual.
                                        (IV) Public meeting.--The Board
                                    shall hold an annual public meeting to
                                    summarize the activities of the
                                    Foundation.
                                (ii) Grant reporting.--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.
                (4) Integrity.--
                        (A) In general.--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.
                        (B) Financial conflicts of interest.--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--
                                (i) the individual;
                                (ii) a relative (as defined in section 109
                            of the Ethics in Government Act of 1978 (5
                            U.S.C. App.)) of that individual; or
                                (iii) 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.
                (5) Intellectual property.--The Board shall adopt written
            standards to govern ownership of any intellectual property
            rights derived from the collaborative efforts of the
            Foundation.
                (6) Liability.--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.
        (g) Funds.--
                (1) Mandatory funding.--
                        (A) In general.--On October 1, 2013, of the funds
                    of the Commodity Credit Corporation, the Secretary
                    shall transfer to the Foundation to carry out this
                    section $200,000,000, to remain available until
                    expended under the conditions described in subparagraph
                    (B).
                        (B) Conditions on expenditure.--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.
                        (C) Prohibition on construction.--None of the funds
                    made available under subparagraph (A) may be used for
                    construction.
                (2) Separation of funds.--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).

    SEC. 7602. AGRICULTURAL AND FOOD LAW RESEARCH, LEGAL TOOLS, AND
                  INFORMATION.

        (a) Findings.--Congress finds that--
                (1) the farms, ranches, and forests of the United States
            are impacted by a complex and rapidly evolving web of
            competition and international, Federal, State, and local laws
            (including regulations);
                (2) objective, scholarly, and authoritative agricultural
            and food law research, legal tools, 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 and diversified local and regional
            supplies of food, fiber, and fuel; and
                (3) 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.
        (b) Partnerships.--The Secretary, acting through the National
    Agricultural Library, shall support the dissemination of objective,
    scholarly, and authoritative agricultural and food law research, legal
    tools, and information by entering into cooperative agreements with
    institutions of higher education that on the date of enactment of this
    Act are carrying out objective programs for research, legal tools, and
    information in agricultural and food law.
        (c) Authorization of Appropriations.--For each fiscal year, the
    Secretary may use not more than $5,000,000 of the amounts made
    available to the National Agricultural Library to carry out this
    section.

                              TITLE VIII--FORESTRY

                Subtitle A--Repeal of Certain Forestry Programs

    SEC. 8001. FOREST LAND ENHANCEMENT PROGRAM.

        (a) Repeal.--Section 4 of the Cooperative Forestry Assistance Act
    of 1978 (16 U.S.C. 2103) is repealed.
        (b) Conforming Amendment.--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).
        (c) Effective Date.--The amendments made by this section shall take
    effect on October 1, 2013.

    SEC. 8002. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND NATIONAL
                  RESOURCES LEADERSHIP PROGRAM.

        (a) Repeal.--Section 8402 of the Food, Conservation, and Energy Act
    of 2008 (16 U.S.C. 1649a) is repealed.
        (b) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2013.

    SEC. 8003. TRIBAL WATERSHED FORESTRY ASSISTANCE PROGRAM.

        (a) Repeal.--Section 303 of the Healthy Forests Restoration Act of
    2003 (16 U.S.C. 6542) is repealed.
        (b) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2013.

     Subtitle B--Reauthorization of Cooperative Forestry Assistance Act of
                                 1978 Programs

    SEC. 8101. STATE-WIDE ASSESSMENT AND STRATEGIES FOR FOREST RESOURCES.

        Section 2A(f)(1) of the Cooperative Forestry Assistance Act of 1978
    (16 U.S.C. 2101a(f)(1)) is amended by striking ``2012'' and inserting
    ``2018''.

           Subtitle C--Reauthorization of Other Forestry-Related Laws

    SEC. 8201. RURAL REVITALIZATION TECHNOLOGIES.

        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 ``2012''
    and inserting ``2018''.

    SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY.

        Section 2405(d) of the Global Climate Change Prevention Act of 1990
    (7 U.S.C. 6704(d)) is amended by striking ``2012'' and inserting
    ``2018''.

    SEC. 8203. INSECT AND DISEASE INFESTATION.

        Title VI of the Healthy Forests Restoration Act of 2003 (16 U.S.C.
    6591 et seq.) is amended by adding at the end the following:

    ``SEC. 602. DESIGNATION OF TREATMENT AREAS.

        ``(a) Definition of Declining Forest Health.--In this section, the
    term `declining forest health' means a forest that is experiencing--
                ``(1) substantially increased tree mortality due to insect
            or disease infestation; or
                ``(2) dieback due to infestation or defoliation by insects
            or disease.
        ``(b) Designation of Treatment Areas.--
                ``(1) Initial areas.--Not later than 60 days after the date
            of enactment of the Agriculture Reform, Food, and Jobs Act of
            2013, the Secretary shall, if requested by the Governor of the
            State, designate as part of an insect and disease treatment
            program 1 or more subwatersheds (sixth-level hydrologic units,
            according to the System of Hydrologic Unit Codes of the United
            States Geological Survey) in at least 1 national forest in each
            State that is experiencing an insect or disease epidemic.
                ``(2) Additional areas.--After the end of the 60-day period
            described in paragraph (1), the Secretary may designate
            additional subwatersheds under this section as needed to
            address insect or disease threats.
        ``(c) Requirements.--To be designated a subwatershed under
    subsection (b), the subwatershed shall be--
                ``(1) experiencing declining forest health, based on annual
            forest health surveys conducted by the Secretary;
                ``(2) at risk of experiencing substantially increased tree
            mortality over the next 15 years due to insect or disease
            infestation, based on the most recent National Insect and
            Disease Risk Map published by the Forest Service; or
                ``(3) in an area in which the risk of hazard trees poses an
            imminent risk to public infrastructure, health, or safety.
        ``(d) Treatment of Areas.--
                ``(1) In general.--The Secretary may carry out priority
            projects on Federal land in the subwatersheds designated under
            subsection (b) to reduce the risk or extent of, or increase the
            resilience to, insect or disease infestation in the
            subwatersheds.
                ``(2) Authority.--Any project under paragraph (1) for which
            a public notice to initiate scoping is issued on or before
            September 30, 2018, may be carried out in accordance with
            subsections (b), (c), and (d) of section 102, and sections 104,
            105, and 106.
                ``(3) Effect.--Projects carried out under this subsection
            shall be considered authorized hazardous fuel reduction
            projects for purposes of the authorities described in paragraph
            (2).
                ``(4) Report.--Not later than September 30, 2018, the
            Secretary shall issue a report on actions taken to carry out
            this subsection, including--
                        ``(A) an evaluation of the progress towards project
                    goals; and
                        ``(B) recommendations for modifications to the
                    projects and management treatments.
        ``(e) Tree Retention.--The Secretary shall carry out projects under
    subsection (d) in a manner that maximizes the retention of old-growth
    and large trees, as appropriate for the forest type, to the extent that
    the trees promote stands that are resilient to insects and disease.
        ``(f) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $200,000,000 for each of fiscal
    years 2014 through 2018.''.

    SEC. 8204. STEWARDSHIP END RESULT CONTRACTING PROJECTS.

        (a) In General.--Title VI of the Healthy Forests Restoration Act of
    2003 (16 U.S.C. 6591) (as amended by section 8203) is amended by adding
    at the end the following:

    ``SEC. 603. STEWARDSHIP END RESULT CONTRACTING PROJECTS.

        ``(a) Definitions.--In this section:
                ``(1) Chief.--The term `Chief' means the Chief of the
            Forest Service.
                ``(2) Director.--The term `Director' means the Director of
            the Bureau of Land Management.
        ``(b) Projects.--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.
        ``(c) Land Management Goals.--The land management goals of a
    project under subsection (b) may include--
                ``(1) road and trail maintenance or obliteration to restore
            or maintain water quality;
                ``(2) soil productivity, habitat for wildlife and
            fisheries, or other resource values;
                ``(3) setting of prescribed fires to improve the
            composition, structure, condition, and health of stands or to
            improve wildlife habitat;
                ``(4) removing vegetation or other activities to promote
            healthy forest stands, reduce fire hazards, or achieve other
            land management objectives;
                ``(5) watershed restoration and maintenance;
                ``(6) restoration and maintenance of wildlife and fish; or
                ``(7) control of noxious and exotic weeds and
            reestablishing native plant species.
        ``(d) Agreements or Contracts.--
                ``(1) Procurement procedure.--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.
                ``(2) Contract for sale of property.--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.
                ``(3) Term.--
                        ``(A) In general.--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.
                        ``(B) Maximum.--The period of the contract under
                    subsection (b) may exceed 5 years but may not exceed 10
                    years.
                ``(4) Offsets.--
                        ``(A) In general.--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).
                        ``(B) Methods of appraisal.--The value of timber or
                    other forest products used as an offset under
                    subparagraph (A)--
                                ``(i) shall be determined using appropriate
                            methods of appraisal commensurate with the
                            quantity of products to be removed; and
                                ``(ii) may--
                                        ``(I) be determined using a unit of
                                    measure appropriate to the contracts;
                                    and
                                        ``(II) may include valuing products
                                    on a per-acre basis.
                ``(5) Relation to other laws.--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).
                ``(6) Contracting officer.--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).
        ``(e) Receipts.--
                ``(1) In general.--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.
                ``(2) Use.--Monies from an agreement or contract under
            subsection (b)--
                        ``(A) may be retained by the Chief and the
                    Director; and
                        ``(B) shall be available for expenditure without
                    further appropriation at the project site from which
                    the monies are collected or at another project site.
                ``(3) Relation to other laws.--
                        ``(A) In general.--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.
                        ``(B) Knutson-vanderberg act.--The Act of June 9,
                    1930 (commonly known as the `Knutson-Vanderberg Act')
                    (16 U.S.C. 576 et seq.) shall not apply to any
                    agreement or contract under subsection (b).
        ``(f) Costs of Removal.--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--
                ``(1) the Act of August 11, 1916 (16 U.S.C. 490); and
                ``(2) the Act of June 30, 1914 (16 U.S.C. 498).
        ``(g) Performance and Payment Guarantees.--
                ``(1) In general.--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).
                ``(2) Excess offset value.--If the offset value of the
            forest products exceeds the value of the resource improvement
            treatments, the Chief and the Director may--
                        ``(A) collect any residual receipts under the Act
                    of June 9, 1930 (commonly known as the `Knutson-
                    Vanderberg Act') (16 U.S.C. 576 et seq.); and
                        ``(B) apply the excess to other authorized
                    stewardship projects.
        ``(h) Monitoring and Evaluation.--
                ``(1) In general.--The Chief and the Director shall
            establish a multiparty monitoring and evaluation process that
            accesses the stewardship contracting projects conducted under
            this section.
                ``(2) Participants.--Other than the Chief and Director,
            participants in the process described in paragraph (1) may
            include--
                        ``(A) any cooperating governmental agencies,
                    including tribal governments; and
                        ``(B) any other interested groups or individuals.
        ``(i) Reporting.--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--
                ``(1) the status of development, execution, and
            administration of agreements or contracts under subsection (b);
                ``(2) the specific accomplishments that have resulted; and
                ``(3) the role of local communities in the development of
            agreements or contract plans.''.
        (b) Conforming Amendment.--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.

    SEC. 8205. HEALTHY FORESTS RESERVE PROGRAM.

        (a) Definition of Acreage Owned by Indian Tribes.--Section
    502(e)(3) of the Healthy Forests Restoration Act (16 U.S.C. 6572(e)(3))
    is amended--
                (1) in subparagraph (C), by striking ``subparagraphs (A)
            and (B)'' and inserting ``clauses (i) and (ii)'';
                (2) by redesignating subparagraphs (A) through (C) as
            clauses (i) through (iii), respectively, and indenting
            appropriately; and
                (3) by striking ``In the case of'' and inserting the
            following:
                        ``(A) Definition of acreage owned by indian
                    tribes.--In this paragraph, the term `acreage owned by
                    Indian tribes' includes--
                                ``(i) land that is held in trust by the
                            United States for Indian tribes or individual
                            Indians;
                                ``(ii) land, the title to which is held by
                            Indian tribes or individual Indians subject to
                            Federal restrictions against alienation or
                            encumbrance;
                                ``(iii) land that is subject to rights of
                            use, occupancy, and benefit of certain Indian
                            tribes;
                                ``(iv) land that is held in fee title by an
                            Indian tribe; or
                                ``(v) land that is owned by a native
                            corporation formed under section 17 of the Act
                            of June 18, 1934 (commonly known as the `Indian
                            Reorganization Act') (25 U.S.C. 477) or section
                            8 of the Alaska Native Claims Settlement Act
                            (43 U.S.C. 1607); or
                                ``(vi) a combination of 1 or more types of
                            land described in clauses (i) through (v).
                        ``(B) Enrollment of acreage.--In the case of''.
        (b) Change in Funding Source for Healthy Forests Reserve Program.--
    Section 508 of the Healthy Forests Restoration Act of 2003 (16 U.S.C.
    6578) is amended--
                (1) in subsection (a), by striking ``In General'' and
            inserting ``Fiscal Years 2009 Through 2013'';
                (2) by redesignating subsection (b) as subsection (d); and
                (3) by inserting after subsection (a) the following:
        ``(b) Fiscal Years 2014 Through 2018.--There is authorized to be
    appropriated to the Secretary of Agriculture to carry out this section
    $9,750,000 for each of fiscal years 2014 through 2018.
        ``(c) Additional Source of Funds.--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.''.

                      Subtitle D--Miscellaneous Provisions

    SEC. 8301. MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT.

        (a) 1890 Waivers.--Section 4 of Public Law 87-788 (commonly known
    as the ``McIntire-Stennis Cooperative Forestry Act'') (16 U.S.C. 582a-
    3) is amended by inserting ``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.'' before ``The
    Secretary is authorized'' in the second sentence.
        (b) Participation.--Section 8 of Public Law 87-788 (commonly known
    as the ``McIntire-Stennis Cooperative Forestry Act'') (16 U.S.C. 582a-
    7) is amended by inserting ``the Federated States of Micronesia,
    American Samoa, the Northern Mariana Islands, the District of
    Columbia,'' before ``and Guam''.
        (c) Effective Date.--The amendments made by this section take
    effect on October 1, 2013.

    SEC. 8302. REVISION OF STRATEGIC PLAN FOR FOREST INVENTORY AND
                  ANALYSIS.

        (a) Revision Required.--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).
        (b) Elements of Revised Strategic Plan.--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:
                (1) Complete the transition to a fully annualized forest
            inventory program and include inventory and analysis of
            interior Alaska.
                (2) 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.
                (3) Report information on renewable biomass supplies and
            carbon stocks at the local, State, regional, and national
            level, including by ownership type.
                (4) 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.
                (5) Improve the timeliness of the timber product output
            program and accessibility of the annualized information on that
            database.
                (6) 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.
                (7) Availability of and access to non-Federal resources to
            improve information analysis and information management.
                (8) 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.
                (9) Understand and report on changes in land cover and use.
                (10) 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.
                (11) Implement procedures to improve the statistical
            precision of estimates at the sub-State level.
        (c) Submission of Revised Strategic Plan.--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.

    SEC. 8303. REIMBURSEMENT OF FIRE FUNDS.

        (a) Definition of State.--In this section, the term ``State''
    means--
                (1) a State; and
                (2) the Commonwealth of Puerto Rico.
        (b) In General.--If a State seeks reimbursement for amounts
    expended for resources and services provided to another State for the
    management and suppression of a wildfire, the Secretary of Agriculture,
    subject to subsections (c) and (d)--
                (1) may accept the reimbursement amounts from the other
            State; and
                (2) shall pay those amounts to the State seeking
            reimbursement.
        (c) Mutual Assistance Agreement.--As a condition of seeking and
    providing reimbursement under subsection (b), the State seeking
    reimbursement and the State providing reimbursement must each have a
    mutual assistance agreement with the Forest Service or another Federal
    agency for providing and receiving wildfire management and suppression
    resources and services.
        (d) Terms and Conditions.--The Secretary of Agriculture may
    prescribe the terms and conditions determined to be necessary to carry
    out subsection (b).
        (e) Effect on Prior Reimbursements.--Any acceptance of funds or
    reimbursements made by the Secretary of Agriculture before the date of
    enactment of this Act that otherwise would have been authorized under
    this section shall be considered to have been made in accordance with
    this section.

                                TITLE IX--ENERGY

    SEC. 9001. DEFINITIONS.

        Section 9001 of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 8101) is amended--
                (1) by redesignating paragraphs (9) through (12) and (13)
            and (14) as paragraphs (10) through (13) and (15) and (16)
            respectively;
                (2) by inserting after paragraph (8) the following:
                ``(9) Forest product.--The term `forest product' means a
            product made from materials derived from the practice of
            forestry or the management of growing timber, including--
                        ``(A) pulp, paper, paperboard, pellets, lumber, and
                    wood products; and
                        ``(B) any recycled products derived from forest
                    materials.''; and
                (3) by inserting after paragraph (13) (as redesignated by
            paragraph (1)) the following:
                ``(14) Renewable chemical.--The term `renewable chemical'
            means a monomer, polymer, plastic, formulated product, or
            chemical substance produced from renewable biomass.''.

    SEC. 9002. BIOBASED MARKETS PROGRAM.

        (a) In General.--Section 9002 of the Farm Security and Rural
    Investment Act of 2002 (7 U.S.C. 8102) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (2)(A)(i)--
                                (i) in subclause (I), by striking ``and''
                            at the end;
                                (ii) in subclause (II)(bb), by striking the
                            period at the end and inserting ``; and''; and
                                (iii) by adding at the end the following:
                                        ``(III) 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.''; and
                        (B) in paragraph (3)--
                                (i) in subparagraph (B)--
                                        (I) in clause (v), by inserting
                                    ``as determined to be necessary by the
                                    Secretary based on the availability of
                                    data,'' before ``provide information'';
                                        (II) by redesignating clauses (v)
                                    and (vi) as clauses (vii) and (viii),
                                    respectively; and
                                        (III) by inserting after clause
                                    (iv) the following:
                                ``(v) require reporting of quantities and
                            types of biobased products purchased by
                            procuring agencies;
                                ``(vi) focus on products that meet the
                            biobased content requirements, including forest
                            products, that apply an innovative approach to
                            growing, harvesting, sourcing, procuring,
                            processing, manufacturing, or application of
                            biobased products regardless of the date of
                            entry of the products into the marketplace;'';
                            and
                                (ii) by adding at the end the following:
                        ``(F) Required designations.--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.'';
                (2) in subsection (b)--
                        (A) in paragraph (3)--
                                (i) by striking ``The Secretary'' and
                            inserting the following:
                        ``(A) In general.--The Secretary''; and
                                (ii) by adding at the end the following:
                        ``(B) Auditing and compliance.--The Secretary may
                    carry out such auditing and compliance activities as
                    the Secretary determines to be necessary to ensure
                    compliance with subparagraph (A).''; and
                        (B) by adding at the end the following:
                ``(4) Assembled and finished products.--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).'';
                (3) by redesignating subsections (d), (e), (f), (g), and
            (h) as subsections (e), (f), (g), (i), and (j), respectively;
                (4) by inserting after subsection (c) the following:
        ``(d) Outreach, Education, and Promotion.--
                ``(1) In general.--The Secretary may engage in outreach,
            educational, and promotional activities intended to increase
            knowledge, awareness, and benefits of biobased products.
                ``(2) Authorized activities.--In carrying out this
            subsection, the Secretary may--
                        ``(A) conduct consumer education and outreach
                    (including consumer and awareness surveys);
                        ``(B) conduct outreach to and support for State and
                    local governments interested in implementing biobased
                    purchasing programs;
                        ``(C) partner with industry and nonprofit groups to
                    produce educational and outreach materials and conduct
                    educational and outreach events;
                        ``(D) sponsor special conferences and events to
                    bring together buyers and sellers of biobased products;
                    and
                        ``(E) support pilot and demonstration projects.'';
                (5) in subsection (h) (as redesignated by paragraph (3))--
                        (A) in paragraph (2)--
                                (i) in the matter preceding subparagraph
                            (A) by striking ``The report'' and inserting
                            ``Each report under paragraph (1)'';
                                (ii) in subparagraph (A), by striking
                            ``and'' at the end;
                                (iii) in subparagraph (B)(ii), by striking
                            the period at the end and inserting a
                            semicolon; and
                                (iv) by adding at the end the following:
                        ``(C) the progress made by other Federal agencies
                    in compliance with the biobased procurement
                    requirements, including the quantity of purchases made;
                    and
                        ``(D) 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.''; and
                        (B) by adding at the end the following:
                ``(3) Economic impact study and report.--
                        ``(A) In general.--The Secretary shall conduct a
                    study to assess the economic impact of the biobased
                    products industry, including--
                                ``(i) the quantity of biobased products
                            sold;
                                ``(ii) the value of the biobased products;
                                ``(iii) the quantity of jobs created;
                                ``(iv) the quantity of petroleum displaced;
                                ``(v) other environmental benefits; and
                                ``(vi) 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.
                        ``(B) Report.--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).''.
                (6) by inserting after subsection (g) (as redesignated by
            paragraph (3)) the following:
        ``(h) Forest Products Laboratory Coordination.--In determining
    whether products are eligible for the `USDA Certified Biobased Product'
    label, the Secretary (acting through the Forest Products Laboratory)
    shall provide appropriate technical and other assistance to the program
    and applicants for forest products.''; and
                (7) in subsection (j) (as redesignated by paragraph (3))--
                        (A) in the heading of paragraph (1), by inserting
                    ``for fiscal years 2008 through 2012'' after
                    ``funding'';
                        (B) in the heading of paragraph (2), by inserting
                    ``for fiscal years 2009 through 2013'' after
                    ``funding''; and
                        (C) by adding at the end the following:
                ``(3) Fiscal years 2014 through 2018.--There is authorized
            to be appropriated to carry out this section $2,000,000 for
            each of fiscal years 2014 through 2018.
                ``(4) Mandatory funding for fiscal years 2014 through
            2018.--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 2014 through 2018.''.
        (b) Conforming Amendment.--Section 944(c)(2)(A) of the Energy
    Policy Act of 2005 (42 U.S.C. 16253(c)(2)(A)) is amended by striking
    ``section 9002(h)(1)'' and inserting ``section 9002(b)''.

    SEC. 9003. BIOREFINERY, RENEWABLE CHEMICAL, AND BIOBASED PRODUCT
                  MANUFACTURING ASSISTANCE.

        (a) Program Adjustments.--
                (1) In general.--Section 9003 of the Farm Security and
            Rural Investment Act of 2002 (7 U.S.C. 8103) is amended--
                        (A) in the section heading, by inserting ``,
                    renewable chemical, and biobased product
                    manufacturing'' after ``biorefinery'';
                        (B) in subsection (a), in the matter preceding
                    paragraph (1), by inserting ``renewable chemicals, and
                    biobased product manufacturing'' after ``advanced
                    biofuels,'';
                        (C) in subsection (b)--
                                (i) by redesignating paragraphs (1) and (2)
                            as paragraphs (2) and (3), respectively; and
                                (ii) by inserting before paragraph (2) (as
                            so redesignated) the following:
                ``(1) Biobased product manufacturing.--The term `biobased
            product manufacturing' 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.''; and
                        (D) in subsection (c)--
                                (i) in paragraph (1), by striking ``and''
                            at the end;
                                (ii) in paragraph (2), by striking the
                            period at the end and inserting ``; and''; and
                                (iii) by adding at the end the following:
                ``(3) grants and loan guarantees to fund the development
            and construction of renewable chemical and biobased product
            manufacturing facilities.''.
                (2) Effective date.--The amendments made by paragraph (1)
            shall take effect on October 1, 2013.
        (b) Funding.--Section 9003(h) of the Farm Security and Rural
    Investment Act of 2002 (7 U.S.C. 8103(h)) is amended--
                (1) by striking paragraph (1) and inserting the following:
                ``(1) Mandatory funding.--
                        ``(A) In general.--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--
                                ``(i) $100,000,000 for fiscal year 2014;
                            and
                                ``(ii) $58,000,000 for each of fiscal years
                            2015 and 2016.
                        ``(B) Biobased product manufacturing.--Of the total
                    amount of funds made available for fiscal years 2014
                    and 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.''; and
                (2) in paragraph (2), by striking ``2013'' and inserting
            ``2018''.

    SEC. 9004. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.

        Section 9005(g) of the Farm Security and Rural Investment Act of
    2002 (7 U.S.C. 8105(g)) is amended--
                (1) in the heading of paragraph (1), by inserting ``for
            fiscal years 2009 through 2012'' after ``funding'';
                (2) in the heading of paragraph (2), by inserting ``for
            fiscal years 2009 through 2013'' after ``funding'';
                (3) by redesignating paragraph (3) as paragraph (4); and
                (4) by inserting after paragraph (2) the following:
                ``(3) Fiscal years 2014 through 2018.--There is authorized
            to be appropriated to carry out this section $20,000,000 for
            each of fiscal years 2014 through 2018.''.

    SEC. 9005. BIODIESEL FUEL EDUCATION PROGRAM.

        Section 9006(d) of the Farm Security and Rural Investment Act of
    2002 (7 U.S.C. 8106(d)) is amended--
                (1) in paragraph (1)--
                        (A) in the heading, by striking ``Fiscal years 2009
                    through 2012'' and inserting ``Mandatory funding'' ;
                    and
                        (B) by striking ``2012'' and inserting ``2018'';
                    and
                (2) in paragraph (2), by striking ``fiscal year 2013'' and
            inserting ``each of fiscal years 2014 through 2018''.

    SEC. 9006. RURAL ENERGY FOR AMERICA PROGRAM.

        (a) Program Adjustments.--
                (1) In general.--Section 9007 of the Farm Security and
            Rural Investment Act of 2002 (7 U.S.C. 8107) is amended--
                        (A) in subsection (b)(2)--
                                (i) in subparagraph (C), by striking
                            ``and'' at the end;
                                (ii) by redesignating subparagraph (D) as
                            subparagraph (E); and
                                (iii) by inserting after subparagraph (C)
                            the following:
                        ``(D) a council (as defined in section 1528 of the
                    Agriculture and Food Act of 1981 (16 U.S.C. 3451));
                    and''; and
                        (B) in subsection (c)--
                                (i) in paragraph (1)(A), by inserting ``,
                            such as for agricultural and associated
                            residential purposes'' after ``electricity'';
                                (ii) by striking paragraph (3);
                                (iii) by redesignating paragraph (4) as
                            paragraph (3);
                                (iv) in paragraph (3) (as so redesignated),
                            by striking subparagraph (A) and inserting the
                            following:
                        ``(A) Grants.--The amount of a grant under this
                    subsection shall not exceed the lesser of--
                                ``(i) $500,000; and
                                ``(ii) 25 percent of the cost of the
                            activity carried out using funds from the
                            grant.''; and
                                (v) by adding at the end the following:
                ``(4) Tiered application process.--
                        ``(A) In general.--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.
                        ``(B) Tier 1.--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.
                        ``(C) Tier 2.--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.
                        ``(D) Tier 3.--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.
                        ``(E) Application process.--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.''.
                (2) Effective date.--The amendments made by paragraph (1)
            shall take effect on October 1, 2013.
        (b) Funding.--Section 9007(g) of the Farm Security and Rural
    Investment Act of 2002 (7 U.S.C. 8107(g)) is amended--
                (1) in the heading of paragraph (1), by inserting ``for
            fiscal years 2009 through 2012'' after ``funding'';
                (2) in the heading of paragraph (2), by inserting ``for
            fiscal years 2009 through 2012'' after ``funding'';
                (3) in the heading of paragraph (3), by inserting ``for
            fiscal years 2009 through 2013'' after ``funding''; and
                (4) by adding at the end the following:
                ``(4) Fiscal years 2014 through 2018.--There is authorized
            to be appropriated to carry out this section $20,000,000 for
            each of fiscal years 2014 through 2018.
                ``(5) Mandatory funding for fiscal years 2014 through
            2018.--Of the funds of the Commodity Credit Corporation, the
            Secretary shall use to carry out this section $68,200,000 for
            each of fiscal years 2014 through 2018.''.

    SEC. 9007. BIOMASS RESEARCH AND DEVELOPMENT.

        Section 9008(h) of the Farm Security and Rural Investment Act of
    2002 (7 U.S.C. 8108(h)) is amended--
                (1) in the heading of paragraph (1), by inserting ``for
            fiscal years 2009 through 2012'' after ``funding'';
                (2) in the heading of paragraph (2), by inserting ``for
            fiscal years 2009 through 2013'' after ``funding''; and
                (3) by adding at the end the following:
                ``(3) Fiscal years 2014 through 2018.--There is authorized
            to be appropriated to carry out this section $30,000,000 for
            each of fiscal years 2014 through 2018.
                ``(4) Mandatory funding for fiscal years 2014 through
            2018.--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 2014 through 2018.''.

    SEC. 9008. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.

        Section 9010(b) of the Farm Security and Rural Investment Act of
    2002 (7 U.S.C. 8110(b)) is amended--
                (1) in paragraph (1)(A), by striking ``2013'' and inserting
            ``2018''; and
                (2) in paragraph (2)(A), by striking ``2013'' and inserting
            ``2018''.

    SEC. 9009. BIOMASS CROP ASSISTANCE PROGRAM.

        Section 9011 of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 8111) is amended to read as follows:

    ``SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM.

        ``(a) Definitions.--In this section:
                ``(1) BCAP.--The term `BCAP' means the Biomass Crop
            Assistance Program established under this section.
                ``(2) BCAP project area.--The term `BCAP project area'
            means an area that--
                        ``(A) has specified boundaries that are submitted
                    to the Secretary by the project sponsor and
                    subsequently approved by the Secretary;
                        ``(B) includes producers with contract acreage that
                    will supply a portion of the renewable biomass needed
                    by a biomass conversion facility; and
                        ``(C) is physically located within an economically
                    practicable distance from the biomass conversion
                    facility.
                ``(3) Contract acreage.--The term `contract acreage' means
            eligible land that is covered by a BCAP contract entered into
            with the Secretary.
                ``(4) Eligible crop.--
                        ``(A) In general.--The term `eligible crop' means a
                    crop of renewable biomass.
                        ``(B) Exclusions.--The term `eligible crop' does
                    not include--
                                ``(i) 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; or
                                ``(ii) 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.
                ``(5) Eligible land.--
                        ``(A) In general.--The term `eligible land'
                    includes--
                                ``(i) 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
                                ``(ii) land enrolled in the conservation
                            reserve program established under subchapter B
                            of chapter I 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 under a contract that will
                            expire at the end of the current fiscal year.
                        ``(B) Exclusions.--The term `eligible land' does
                    not include--
                                ``(i) Federal- or State-owned land;
                                ``(ii) 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.);
                                ``(iii) 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.), other than land described in
                            subparagraph (A)(ii); or
                                ``(iv) land enrolled in the Agricultural
                            Conservation Easement Program established under
                            subtitle H of title XII of that Act, other than
                            land described in subparagraph (A)(ii).
                ``(6) Eligible material.--
                        ``(A) In general.--The term `eligible material'
                    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
                    Agriculture Reform, Food, and Jobs Act of 2013 or an
                    amendment made by that title.
                        ``(B) Inclusions.--The term `eligible material'
                    shall only include--
                                ``(i) eligible material that is collected
                            or harvested by the eligible material owner--
                                        ``(I) directly from--
                                                ``(aa) National Forest
                                            System;
                                                ``(bb) Bureau of Land
                                            Management land;
                                                ``(cc) non-Federal land; or
                                                ``(dd) 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;
                                        ``(II) in a manner that is
                                    consistent with--
                                                ``(aa) a conservation plan;
                                                ``(bb) a forest stewardship
                                            plan; or
                                                ``(cc) 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);
                                ``(ii) if woody eligible material, woody
                            eligible material that is produced on land
                            other than contract acreage that--
                                        ``(I) is a byproduct of a
                                    preventative treatment that is removed
                                    to reduce hazardous fuel or to reduce
                                    or contain disease or insect
                                    infestation; and
                                        ``(II) 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
                                ``(iii) eligible material that is delivered
                            to a qualified biomass conversion facility to
                            be used for heat, power, biobased products,
                            research, or advanced biofuels.
                        ``(C) Exclusions.--The term `eligible material'
                    does not include--
                                ``(i) material that is whole grain from any
                            crop that is eligible to receive payments under
                            title I of the Agriculture Reform, Food, and
                            Jobs Act of 2013 or an amendment made by that
                            title, including--
                                        ``(I) barley, corn, grain sorghum,
                                    oats, rice, or wheat;
                                        ``(II) honey;
                                        ``(III) mohair;
                                        ``(IV) oilseeds, including canola,
                                    crambe, flaxseed, mustard seed,
                                    rapeseed, safflower seed, soybeans,
                                    sesame seed, and sunflower seed;
                                        ``(V) peanuts;
                                        ``(VI) pulse;
                                        ``(VII) chickpeas, lentils, and dry
                                    peas;
                                        ``(VIII) dairy products;
                                        ``(IX) sugar; and
                                        ``(X) wool and cotton boll fiber;
                                ``(ii) animal waste and byproducts,
                            including fat, oil, grease, and manure;
                                ``(iii) food waste and yard waste;
                                ``(iv) algae;
                                ``(v) woody eligible material that--
                                        ``(I) is removed outside contract
                                    acreage; and
                                        ``(II) is not a byproduct of a
                                    preventative treatment to reduce
                                    hazardous fuel or to reduce or contain
                                    disease or insect infestation;
                                ``(vi) any woody eligible material
                            collected or harvested outside contract acreage
                            that would otherwise be used for existing
                            market products; or
                                ``(vii) bagasse.
                ``(7) Producer.--The term `producer' means an owner or
            operator of contract acreage that is physically located within
            a BCAP project area.
                ``(8) Project sponsor.--The term `project sponsor' means--
                        ``(A) a group of producers; or
                        ``(B) a biomass conversion facility.
                ``(9) Socially disadvantaged farmer or rancher.--The term
            `socially disadvantaged farmer or rancher' 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)).
        ``(b) Establishment and Purpose.--The Secretary shall establish and
    administer a Biomass Crop Assistance Program to--
                ``(1) support the establishment and production of eligible
            crops for conversion to bioenergy in selected BCAP project
            areas; and
                ``(2) 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.
        ``(c) BCAP Project Area.--
                ``(1) In general.--The Secretary shall provide financial
            assistance to a producer of an eligible crop in a BCAP project
            area.
                ``(2) Selection of project areas.--
                        ``(A) In general.--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--
                                ``(i) a description of the eligible land
                            and eligible crops of each producer that will
                            participate in the proposed BCAP project area;
                                ``(ii) 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;
                                ``(iii) 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
                                ``(iv) 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.
                        ``(B) BCAP project area selection criteria.--In
                    selecting BCAP project areas, the Secretary shall
                    consider--
                                ``(i) 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;
                                ``(ii) the volume of renewable biomass
                            projected to be available from sources other
                            than the eligible crops grown on contract
                            acres;
                                ``(iii) the anticipated economic impact in
                            the proposed BCAP project area;
                                ``(iv) the opportunity for producers and
                            local investors to participate in the ownership
                            of the biomass conversion facility in the
                            proposed BCAP project area;
                                ``(v) the participation rate by--
                                        ``(I) 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
                                        ``(II) socially disadvantaged
                                    farmers or ranchers;
                                ``(vi) the impact on soil, water, and
                            related resources;
                                ``(vii) the variety in biomass production
                            approaches within a project area, including (as
                            appropriate)--
                                        ``(I) agronomic conditions;
                                        ``(II) harvest and postharvest
                                    practices; and
                                        ``(III) monoculture and polyculture
                                    crop mixes;
                                ``(viii) the range of eligible crops among
                            project areas; and
                                ``(ix) any additional information that the
                            Secretary determines to be necessary.
                ``(3) Contract.--
                        ``(A) In general.--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.
                        ``(B) Minimum terms.--At a minimum, a contract
                    under this subsection shall include terms that cover--
                                ``(i) 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;
                                ``(ii) 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.);
                                ``(iii) the implementation of (as
                            determined by the Secretary)--
                                        ``(I) a conservation plan;
                                        ``(II) a forest stewardship plan;
                                    or
                                        ``(III) a plan that is equivalent
                                    to a conservation or forest stewardship
                                    plan; and
                                ``(iv) any additional requirements that
                            Secretary determines to be necessary.
                        ``(C) Duration.--A contract under this subsection
                    shall have a term of not more than--
                                ``(i) 5 years for annual and perennial
                            crops; or
                                ``(ii) 15 years for woody biomass.
                ``(4) Relationship to other programs.--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.
                ``(5) Payments.--
                        ``(A) In general.--The Secretary shall make
                    establishment and annual payments directly to producers
                    to support the establishment and production of eligible
                    crops on contract acreage.
                        ``(B) Amount of establishment payments.--
                                ``(i) In general.--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--
                                        ``(I) the cost of seeds and stock
                                    for perennials;
                                        ``(II) the cost of planting the
                                    perennial crop, as determined by the
                                    Secretary; and
                                        ``(III) in the case of
                                    nonindustrial private forestland, the
                                    costs of site preparation and tree
                                    planting.
                                ``(ii) Socially disadvantaged farmers or
                            ranchers.--In the case of socially
                            disadvantaged farmers or ranchers, the costs of
                            establishment may not exceed $750 per acre.
                        ``(C) Amount of annual payments.--
                                ``(i) In general.--Subject to clause (ii),
                            the amount of an annual payment under this
                            subsection shall be determined by the
                            Secretary.
                                ``(ii) Reduction.--The Secretary shall
                            reduce an annual payment by an amount
                            determined to be appropriate by the Secretary,
                            if--
                                        ``(I) an eligible crop is used for
                                    purposes other than the production of
                                    energy at the biomass conversion
                                    facility;
                                        ``(II) an eligible crop is
                                    delivered to the biomass conversion
                                    facility;
                                        ``(III) the producer receives a
                                    payment under subsection (d);
                                        ``(IV) the producer violates a term
                                    of the contract; or
                                        ``(V) the Secretary determines a
                                    reduction is necessary to carry out
                                    this section.
                        ``(D) Exclusion.--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.
        ``(d) Assistance With Collection, Harvest, Storage, and
    Transportation.--
                ``(1) In general.--The Secretary shall make a payment for
            the delivery of eligible material to a biomass conversion
            facility to--
                        ``(A) a producer of an eligible crop that is
                    produced on BCAP contract acreage; or
                        ``(B) a person with the right to collect or harvest
                    eligible material, regardless of whether the eligible
                    material is produced on contract acreage.
                ``(2) Payments.--
                        ``(A) Costs covered.--A payment under this
                    subsection shall be in an amount described in
                    subparagraph (B) for--
                                ``(i) collection;
                                ``(ii) harvest;
                                ``(iii) storage; and
                                ``(iv) transportation to a biomass
                            conversion facility.
                        ``(B) Amount.--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.
                ``(3) Limitation on assistance for bcap contract acreage.--
            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.
        ``(e) Report.--Not later than 4 years after the date of enactment
    of the Agriculture Reform, Food, and Jobs Act of 2013, 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.
        ``(f) Funding.--
                ``(1) In general.--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 2014 through 2018.
                ``(2) Collection, harvest, storage, and transportation
            payments.--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).''.

    SEC. 9010. REPEAL OF FOREST BIOMASS FOR ENERGY.

        Section 9012 of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 8112) is repealed.

    SEC. 9011. COMMUNITY WOOD ENERGY PROGRAM.

        (a) Definition of Biomass Consumer Cooperative.--Section 9013(a) of
    the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8113(a))
    is amended--
                (1) by redesignating paragraphs (1) and (2) as paragraphs
            (2) and (3), respectively; and
                (2) by inserting before paragraph (2) (as so redesignated)
            the following:
                ``(1) Biomass consumer cooperative.--The term `biomass
            consumer cooperative' 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.''.
        (b) Grant Program.--Section 9013(b)(1) of the Farm Security and
    Rural Investment Act of 2002 (7 U.S.C. 8113(b)(1)) is amended--
                (1) in subparagraph (A), by striking ``and'' after the
            semicolon at the end;
                (2) in subparagraph (B), by striking the period at the end
            and inserting ``; and''; and
                (3) by adding at the end the following:
                        ``(C) 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--
                                ``(i) the purchase of biomass heating
                            systems;
                                ``(ii) biomass heating products, including
                            wood chips, wood pellets, and advanced
                            biofuels; or
                                ``(iii) the delivery and storage of biomass
                            of heating products.''.
        (c) Matching Funds.--Section 9013(d) of the Farm Security and Rural
    Investment Act of 2002 (7 U.S.C. 8113(d)) is amended--
                (1) by striking ``A State or local government that receives
            a grant under subsection (b)'' and inserting the following:
                ``(1) State and local governments.--A State or local
            government that receives a grant under subparagraph (A) or (B)
            of subsection (b)(1)''; and
                (2) by adding at the end the following:
                ``(2) Biomass consumer cooperatives.--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.''.
        (d) Authorization of Appropriations.--Section 9013(e) of the Farm
    Security and Rural Investment Act of 2002 (7 U.S.C. 8113(e)) is amended
    by striking ``2013'' and inserting ``2018''.

    SEC. 9012. REPEAL OF RENEWABLE FERTILIZER STUDY.

        Section 9003 of the Food, Conservation, and Energy Act of 2008
    (Public Law 110-246; 122 Stat. 2096) is repealed.

                             TITLE X--HORTICULTURE

    SEC. 10001. SPECIALTY CROPS MARKET NEWS ALLOCATION.

        Section 10107(b) of the Food, Conservation, and Energy Act of 2008
    (7 U.S.C. 1622b(b)) is amended by striking ``2012'' and inserting
    ``2018''.

    SEC. 10002. REPEAL OF GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY
                  CROPS.

        Section 10403 of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 1622c) is repealed.

    SEC. 10003. FARMERS MARKET AND LOCAL FOOD PROMOTION PROGRAM.

        Section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7
    U.S.C. 3005) is amended--
                (1) in the section heading, by adding ``and Local Food''
            after ``Market'';
                (2) in subsection (a)--
                        (A) by inserting ``and Local Food'' after
                    ``Market'';
                        (B) by striking ``farmers' markets and to
                    promote''; and
                        (C) by inserting ``and local food capacity
                    development'' before the period at the end;
                (3) in subsection (b), by striking paragraph (1) and
            inserting the following:
                ``(1) In general.--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--
                        ``(A) domestic farmers' markets, roadside stands,
                    community-supported agriculture programs, agritourism
                    activities, and other direct producer-to-consumer
                    market opportunities; and
                        ``(B) 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.'';
                (4) in subsection (c)(1)--
                        (A) by inserting ``or other business entity'' after
                    ``cooperative''; and
                        (B) by inserting ``, including a community
                    supported agriculture network or association'' after
                    ``association'';
                (5) by redesignating subsection (e) as subsection (f);
                (6) by inserting after subsection (d) the following:
        ``(e) Priorities.--In providing grants under the Program, priority
    shall be given to applications that include projects that--
                ``(1) benefit underserved communities;
                ``(2) develop market opportunities for small and mid-sized
            farm and ranch operations; and
                ``(3) include a strategic plan to maximize the use of funds
            to build capacity for local and regional food systems in a
            community.'';
                (7) in subsection (f) (as redesignated by paragraph (5))--
                        (A) in paragraph (1)--
                                (i) in the heading, by striking ``Fiscal
                            years 2008 through 2012'' and inserting
                            ``Mandatory funding'';
                                (ii) in subparagraph (B), by striking
                            ``and'' after the semicolon at the end;
                                (iii) in subparagraph (C), by striking the
                            period at the end and inserting ``; and''; and
                                (iv) by adding at the end the following:
                        ``(D) $20,000,000 for each of fiscal years 2014
                    through 2018.'';
                        (B) by striking paragraphs (3) and (5);
                        (C) by inserting after paragraph (2) the following:
                ``(3) Authorization of appropriations.--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 2014 through 2018.''; and
                        (D) by adding at the end the following:
                ``(5) Use of funds.--
                        ``(A) In general.--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).
                        ``(B) Cost share.--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.
                ``(6) Administrative expenses.--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.
                ``(7) Limitations.--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.''.

    SEC. 10004. STUDY ON LOCAL FOOD PRODUCTION AND PROGRAM EVALUATION.

        (a) In General.--The Secretary shall--
                (1) collect data on the production and marketing of locally
            or regionally produced agricultural food products;
                (2) facilitate interagency collaboration and data sharing
            on programs related to local and regional food systems; and
                (3) monitor the effectiveness of programs designed to
            expand or facilitate local food systems.
        (b) Requirements.--In carrying out this section, the Secretary
    shall, at a minimum--
                (1) collect and distribute comprehensive reporting of
            prices of locally or regionally produced agricultural food
            products;
                (2) 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;
                (3) evaluate the effectiveness of existing programs in
            growing local and regional food systems, including--
                        (A) the impact of local food systems on job
                    creation and economic development;
                        (B) 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;
                        (C) the ability for participants to leverage
                    private capital and a synopsis of the places from which
                    non-Federal funds are derived; and
                        (D) any additional resources required to aid in the
                    development or expansion of local and regional food
                    systems;
                (4) expand the Agricultural Resource Management Survey to
            include questions on locally or regionally produced
            agricultural food products; and
                (5) 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.
        (c) Report.--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.

    SEC. 10005. ORGANIC AGRICULTURE.

        (a) Organic Production and Market Data Initiatives.--Section 7407
    of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 5925c)
    is amended--
                (1) in subsection (c)--
                        (A) in the matter preceding paragraph (1), by
                    inserting ``and annually thereafter'' after ``this
                    subsection'';
                        (B) in paragraph (1), by striking ``and'' at the
                    end;
                        (C) by redesignating paragraph (2) as paragraph
                    (3); and
                        (D) by inserting after paragraph (1) the following:
                ``(2) 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''; and
                (2) in subsection (d)--
                        (A) by striking paragraph (3);
                        (B) by redesignating paragraph (2) as paragraph
                    (3);
                        (C) by inserting after paragraph (1) the following:
                ``(2) Mandatory funding.--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.''; and
                        (D) in paragraph (3) (as redesignated by
                    subparagraph (B))--
                                (i) in the heading, by striking ``for
                            fiscal years 2008 through 2012'';
                                (ii) by striking ``paragraph (1)'' and
                            inserting ``paragraphs (1) and (2)''; and
                                (iii) by striking ``2012'' and inserting
                            ``2018''.
        (b) Modernization and Technology Upgrade for National Organic
    Program.--Section 2123 of the Organic Foods Production Act of 1990 (7
    U.S.C. 6522) is amended--
                (1) in subsection (b)--
                        (A) in paragraph (5), by striking ``and'' at the
                    end;
                        (B) by redesignating paragraph (6) as paragraph
                    (7); and
                        (C) by inserting after paragraph (5) the following:
                ``(6) $15,000,000 for each of fiscal years 2014 through
            2018; and''; and
                (2) by adding at the end the following:
        ``(c) Modernization and Technology Upgrade for National Organic
    Program.--
                ``(1) In general.--The Secretary shall modernize database
            and technology systems of the national organic program.
                ``(2) Funding.--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 for fiscal year 2014, to remain
            available until expended.''.

    SEC. 10006. FOOD SAFETY EDUCATION INITIATIVES.

        Section 10105(c) of the Food, Conservation, and Energy Act of 2008
    (7 U.S.C. 7655a(c)) is amended by striking ``2012'' and inserting
    ``2018''.

    SEC. 10007. COORDINATED PLANT MANAGEMENT PROGRAM.

        (a) In General.--Section 420 of the Plant Protection Act (7 U.S.C.
    7721) is amended--
                (1) by striking the section heading and inserting
            ``coordinated plant management program.'';
                (2) by redesignating subsection (e) as subsection (f); and
                (3) by inserting after subsection (d) the following:
        ``(e) National Clean Plant Network.--
                ``(1) In general.--The Secretary shall establish a program
            to be known as the `National Clean Plant Network' (referred to
            in this subsection as the `Program').
                ``(2) Requirements.--Under the Program, the Secretary shall
            establish a network of clean plant centers for diagnostic and
            pathogen elimination services--
                        ``(A) to produce clean propagative plant material;
                    and
                        ``(B) to maintain blocks of pathogen-tested plant
                    material in sites located throughout the United States.
                ``(3) Availability of clean plant source material.--Clean
            plant source material produced or maintained under the Program
            may be made available to--
                        ``(A) a State for a certified plant program of the
                    State; and
                        ``(B) private nurseries and producers.
                ``(4) Consultation and collaboration.--In carrying out the
            Program, the Secretary shall--
                        ``(A) consult with--
                                ``(i) State departments of agriculture; and
                                ``(ii) 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
                        ``(B) 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.''.
        (b) Funding.--Subsection (f) of section 420 of the Plant Protection
    Act (7 U.S.C. 7721) (as redesignated by subsection (a)(2)) is amended--
                (1) in paragraph (3), by striking ``and'' at the end;
                (2) in paragraph (4), by striking ``and each fiscal year
            thereafter.'' and inserting a semicolon; and
                (3) by adding at the end the following:
                ``(5) $60,000,000 for each of fiscal years 2014 through
            2017; and
                ``(6) $65,000,000 for fiscal year 2018 and each fiscal year
            thereafter.''.
        (c) Repeal of Existing Provision.--Section 10202 of the Food,
    Conservation, and Energy Act of 2008 (7 U.S.C. 7761) is repealed.
        (d) Clarification of Use of Funds for Technical Assistance.--
    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:
        ``(g) Relationship to Other Law.--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).''.

    SEC. 10008. SPECIALTY CROP BLOCK GRANTS.

        Section 101 of the Specialty Crops Competitiveness Act of 2004 (7
    U.S.C. 1621 note; Public Law 108-465) is amended--
                (1) in subsection (a)--
                        (A) by striking ``subsection (j)'' and inserting
                    ``subsection (l)''; and
                        (B) by striking ``2012'' and inserting ``2018'';
                (2) by striking subsection (b) and inserting the following:
        ``(b) Grants Based on Value and Acreage.--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--
                ``(1) 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
                ``(2) 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.'';
                (3) by redesignating subsection (j) as subsection (l);
                (4) by inserting after subsection (i) the following:
        ``(j) Multistate Projects.--
                ``(1) In general.--Not later than 180 days after the date
            of enactment of the Agriculture Reform, Food, and Jobs Act of
            2013, the Secretary of Agriculture shall issue guidance for the
            purpose of making grants to multistate projects under this
            section for projects involving--
                        ``(A) food safety;
                        ``(B) plant pests and disease;
                        ``(C) crop-specific projects addressing common
                    issues; and
                        ``(D) any other area that furthers the purposes of
                    this section, as determined by the Secretary.
                ``(2) Funding.--Of the funds provided under subsection (l),
            the Secretary of Agriculture may allocate for grants under this
            subsection, to remain available until expended--
                        ``(A) $1,000,000 for fiscal year 2014;
                        ``(B) $2,000,000 for fiscal year 2015;
                        ``(C) $3,000,000 for fiscal year 2016;
                        ``(D) $4,000,000 for fiscal year 2017; and
                        ``(E) $5,000,000 for fiscal year 2018.
        ``(k) Administration.--
                ``(1) Department.--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.
                ``(2) States.--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.''; and
                (5) in subsection (l) (as redesignated by paragraph (3))--
                        (A) in paragraph (2), by striking ``and'' at the
                    end;
                        (B) in paragraph (3), by striking the period at the
                    end and inserting ``; and''; and
                        (C) by adding at the end the following:
                ``(4) $70,000,000 for fiscal year 2014 and each fiscal year
            thereafter.''.

    SEC. 10009. RECORDKEEPING, INVESTIGATIONS, AND ENFORCEMENT.

        The Organic Foods Production Act of 1990 is amended by inserting
    after section 2120 (7 U.S.C. 6519) the following:

    ``SEC. 2120A. RECORDKEEPING, INVESTIGATIONS, AND ENFORCEMENT.

        ``(a) Recordkeeping.--
                ``(1) In general.--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.
                ``(2) Duration of recordkeeping requirement.--A record
            covered by paragraph (1) shall be maintained--
                        ``(A) 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
                        ``(B) by a certifying agent, for a period of 10
                    years beginning on the date of the creation of the
                    record.
        ``(b) Confidentiality.--
                ``(1) In general.--Subject to paragraph (2), and except as
            provided in section 2107(a)(9) and 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.
                ``(2) Violators and nature of actions.--The Secretary may
            release the name of the violator and the nature of the actions
            triggering an order or revocation under subsection (e).
        ``(c) Investigation.--
                ``(1) In general.--The Secretary may take such
            investigative actions as the Secretary considers to be
            necessary to carry out this title--
                        ``(A) to verify the accuracy of any information
                    reported or made available under this title; and
                        ``(B) 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.
                ``(2) Investigative powers.--The Secretary may administer
            oaths and affirmations, subpoena witnesses, compel attendance
            of witnesses, take evidence, and require the production of any
            records required to be maintained under subsection (a) or
            section 2112(d) or 2116(c) that are relevant to the
            investigation.
        ``(d) Unlawful Act.--It shall be unlawful and a violation of this
    title for any person covered by this title--
                ``(1) to fail or refuse to provide, or delay the timely
            provision of, accurate information required by the Secretary
            under this section;
                ``(2) to violate--
                        ``(A) an order of the Secretary;
                        ``(B) a revocation of the organic certification of
                    a producer or handler; or
                        ``(C) a revocation of the accreditation of a
                    certifying agent; or
                ``(3) to sell, or attempt to sell, a product that is
            represented as being organically produced under this title
            (including an order or regulation promulgated 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.
        ``(e) Enforcement.--
                ``(1) Order.--
                        ``(A) In general.--The Secretary may issue an order
                    to stop the sale of an agricultural product that is
                    labeled or otherwise represented as being organically
                    produced in cases of suspected fraudulent or otherwise
                    unlawful acts as described in subsection (d) that are
                    willful, noncorrectable, or the subject of a combined
                    noncompliance and adverse action until the product can
                    be verified--
                                ``(i) as meeting the national and State
                            standards for organic production and handling
                            as provided in sections 2105 through 2114;
                                ``(ii) as having been produced or handled
                            without the use of a prohibited substance
                            listed under section 2118; and
                                ``(iii) as being produced and handled by a
                            certified organic operation.
                        ``(B) Affirmative defense to stop sale order.--
                                ``(i) In general.--If a producer or handler
                            has a valid organic certification from the
                            Department of Agriculture, the burden shall
                            shift to the Secretary to prove fraud or
                            unlawful activity that is willful,
                            noncorrectable, or the subject of a combined
                            noncompliance and adverse action before a stop
                            sale order under subparagraph (A) may be
                            implemented.
                                ``(ii) Information.--
                                        ``(I) In general.--The producer or
                                    handler shall comply with any requests
                                    of the Secretary for documents and
                                    other information not later than 30
                                    days after a request is made.
                                        ``(II) Noncompliance.--If the
                                    producer or handler fails to comply
                                    within the period described in
                                    subclause (I), the Secretary may issue
                                    a stop sale order.
                        ``(C) Appeal of stop sale order.--
                                ``(i) In general.--If the Secretary proves
                            fraud or unlawful activity that is willful,
                            noncorrectable, or the subject of a combined
                            noncompliance and adverse action, the
                            determination may be appealed through an
                            expedited administrative appeal process.
                                ``(ii) Deadline.--The expedited appeal
                            process shall be completed not later than 30
                            days after the date of the issuance of the stop
                            sale order.
                                ``(iii) Stay.--Any stop sale order shall be
                            stayed pending the 30 day-expedited appeal
                            under this subparagraph.
                ``(2) Certification or accreditation.--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.
                ``(3) Violation of order or revocation.--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), shall be subject to 1 or more of the penalties provided
            under subsections (a) and (b) of section 2120.
        ``(f) Appeal.--
                ``(1) In general.--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--
                        ``(A) first, to the administrative appeals process
                    established under section 2121(a); and
                        ``(B) after a final decision of the Secretary, 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).
                ``(2) Standard.--An order under subsection (e)(1)(A), or a
            revocation of certification or accreditation under subsection
            (e)(2), shall be set aside if the order, or the revocation of
            certification or accreditation, fails to comply with section
            706 of title 5, United States Code.
        ``(g) Noncompliance.--
                ``(1) In general.--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.
                ``(2) Enforcement.--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.
                ``(3) Civil penalty.--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.''.

    SEC. 10010. REPORT ON HONEY.

        (a) In General.--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.
        (b) Contents.--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.

    SEC. 10011. REMOVAL OF AMS INSPECTION AUTHORITY OVER APPLES IN BULK
                  BINS.

        (a) Definition of Bulk Bin.--In this section, the term ``bulk bin''
    means a bin that contains a quantity of apples weighing more than 100
    pounds.
        (b) Prohibition.--Notwithstanding any other provision of law, the
    Secretary of Agriculture, acting through the Agricultural Marketing
    Service, shall have no authority to inspect apples in bulk bins prior
    to export to Canada.

    SEC. 10012. ORGANIC PRODUCT PROMOTION ORDERS.

        (a) Exemption of Certified Organic Products From Promotion Order
    Assessments.--Section 501 of the Federal Agriculture Improvement and
    Reform Act of 1996 (7 U.S.C. 7401) is amended by striking subsection
    (e) and inserting the following:
        ``(e) Exemption of Certified Organic Products From Promotion Order
    Assessments.--
                ``(1) In general.--Notwithstanding any provision of a
            commodity promotion law, a person that produces, handles,
            markets, or imports organic products may be exempt from the
            payment of an assessment under a commodity promotion law with
            respect to any agricultural commodity that is certified as
            `organic' or `100 percent organic' (as defined in part 205 of
            title 7, Code of Federal Regulations (or successor
            regulations)).
                ``(2) Split operations.--The exemption described in
            paragraph (1) shall apply to an agricultural commodity
            described in that paragraph regardless of whether the
            agricultural commodity subject to the exemption is produced,
            handled, or marketed by a person that also produces, handles,
            or markets conventional or nonorganic agricultural products,
            including conventional or nonorganic agricultural products of
            the same agricultural commodity as that for which the exemption
            is claimed.
                ``(3) Approval.--The Secretary shall approve the exemption
            of a person under this subsection if the person maintains a
            valid organic certificate issued under the Organic Foods
            Production Act of 1990 (7 U.S.C. 6501 et seq.).
                ``(4) Termination of effectiveness.--This subsection shall
            be effective until the date on which the Secretary issues an
            organic commodity promotion order in accordance with subsection
            (f).
                ``(5) Regulations.--The Secretary shall promulgate
            regulations concerning eligibility and compliance for an
            exemption under paragraph (1).''.
        (b) Organic Commodity Promotion Order.--Section 501 of the Federal
    Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7401) (as
    amended by subsection (a)) is amended by adding at the end the
    following:
        ``(f) Organic Commodity Promotion Order.--
                ``(1) Definitions.--In this subsection:
                        ``(A) Certified organic farm.--The term `certified
                    organic farm' has the meaning given the term in section
                    2103 of the Organic Foods Production Act of 1990 (7
                    U.S.C. 6502).
                        ``(B) Covered person.--The term `covered person'
                    means a producer, handler, marketer, or importer of an
                    organic agricultural commodity.
                        ``(C) Dual-covered agricultural commodity.--The
                    term `dual-covered agricultural commodity' means an
                    agricultural commodity that--
                                ``(i) is produced on a certified organic
                            farm; and
                                ``(ii) is covered under both--
                                        ``(I) an organic commodity
                                    promotion order issued under paragraph
                                    (2); and
                                        ``(II) any other agricultural
                                    commodity promotion order issued under
                                    this section.
                ``(2) Authorization.--The Secretary may issue an organic
            commodity promotion order under section 514 that includes any
            agricultural commodity that--
                        ``(A) is--
                                ``(i) produced or handled (as defined in
                            section 2103 of the Organic Foods Production
                            Act of 1990 (7 U.S.C. 6502)); and
                                ``(ii) certified to be sold or labeled as
                            `organic' or `100 percent organic' (as defined
                            in part 205 of title 7, Code of Federal
                            Regulations (or successor regulations)); or
                        ``(B) is imported with a valid organic certificate
                    (as defined in that part).
                ``(3) Election.--If the Secretary issues an organic
            commodity promotion order described in paragraph (2), a covered
            person may elect, for applicable dual-covered agricultural
            commodities and in the sole discretion of the covered person,
            whether to be assessed under the organic commodity promotion
            order or another applicable agricultural commodity promotion
            order.
                ``(4) Regulations.--The Secretary shall promulgate
            regulations concerning eligibility and compliance for an
            exemption under paragraph (1).''.
        (c) Definition of Agricultural Commodity.--Section 513(1) of the
    Commodity Promotion, Research, and Information Act of 1996 (7 U.S.C.
    7412(1)) is amended--
                (1) by redesignating subparagraphs (E) and (F) as
            subparagraphs (F) and (G), respectively; and
                (2) by inserting after subparagraph (D) the following:
                        ``(E) products, as a class, that are produced on a
                    certified organic farm (as defined in section 2103 of
                    the Organic Foods Production Act of 1990 (7 U.S.C.
                    6502)) and that are certified to be sold or labeled as
                    `organic' or `100 percent organic' (as defined in part
                    205 of title 7, Code of Federal Regulations (or
                    successor regulations));''.

    SEC. 10013. EFFECTIVE DATE.

        This title and the amendments made by this title take effect on
    October 1, 2013.

                            TITLE XI--CROP INSURANCE

    SEC. 11001. SUPPLEMENTAL COVERAGE OPTION.

        (a) Availability of Supplemental Coverage Option.--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:
                ``(3) Yield and loss basis options.--A producer shall have
            the option of purchasing additional coverage based on--
                        ``(A)(i) an individual yield and loss basis; or
                        ``(ii) an area yield and loss basis; or
                        ``(B) an individual yield and loss basis,
                    supplemented with coverage based on an area yield and
                    loss basis to cover part of the deductible under the
                    individual yield and loss policy, as authorized in
                    paragraph (4)(C).''.
        (b) Level of Coverage.--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:
                ``(4) Level of coverage.--
                        ``(A) Dollar denomination and percentage of
                    yield.--Except as provided in subparagraph (C), the
                    level of coverage--
                                ``(i) shall be dollar denominated; and
                                ``(ii) 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).
                        ``(B) Information.--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).
                        ``(C) Supplemental coverage option.--
                                ``(i) In general.--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 an individual buy up policy
                            or plan of insurance offered under this
                            subtitle that would allow indemnities to be
                            paid to a producer equal to part of the
                            deductible under the policy or plan of
                            insurance, if sufficient area data is available
                            (as determined by the Corporation).
                                ``(ii) Deductible.--Coverage offered under
                            this subparagraph shall be subject to a
                            deductible in an amount equal to--
                                        ``(I) in the case of a producer who
                                    participates in the agriculture risk
                                    coverage program under section 1108(c)
                                    of the Agriculture Reform, Food, and
                                    Jobs Act of 2013, 22 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
                                        ``(II) 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.
                                ``(iii) Coverage.--Subject to the
                            deductible imposed by clause (ii), coverage
                            offered under this subparagraph shall cover the
                            first loss incurred by the producer, not to
                            exceed the difference between--
                                        ``(I) 100 percent; and
                                        ``(II) the coverage level selected
                                    by the producer for the underlying
                                    policy or plan of insurance.
                                ``(iv) Calculation of premium.--
                            Notwithstanding subsection (d), the premium
                            shall--
                                        ``(I) be sufficient to cover
                                    anticipated losses and a reasonable
                                    reserve; and
                                        ``(II) include an amount for
                                    operating and administrative expenses
                                    established in accordance with
                                    subsection (k)(4)(F).''.
        (c) Payment of Portion of Premium by Corporation.--Section
    508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is
    amended by adding at the end the following:
                        ``(H) In the case of the supplemental coverage
                    option authorized in subsection (c)(4)(C), the amount
                    shall be equal to the sum of--
                                ``(i) 65 percent of the additional premium
                            associated with the coverage; and
                                ``(ii) the amount determined under
                            subsection (c)(4)(C)(iv)(II) for the coverage
                            to cover operating and administrative
                            expenses.''.
        (d) Conforming Amendment.--Section 508(k)(4)(F) of the Federal Crop
    Insurance Act (7 U.S.C. 1508(k)(4)(F)) is amended by inserting ``or
    authorized under subsection (c)(4)(C)'' after ``of this subparagraph''.
        (e) Effective Date.--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 2014 crop year.

    SEC. 11002. CROP MARGIN COVERAGE OPTION.

        (a) Availability of Crop Margin Coverage Option.--Section 508(c)(3)
    of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) (as amended by
    section 11001(a)) is amended--
                (1) in subparagraph (A)(ii), by striking ``or'' at the end;
                (2) in subparagraph (B), by striking the period at the end
            and inserting ``; or''; and
                (3) by adding at the end the following:
                        ``(C) a margin basis alone or in combination with--
                                ``(i) individual yield and loss coverage;
                            or
                                ``(ii) area yield and loss coverage.''.

    SEC. 11003. PREMIUM AMOUNTS FOR CATASTROPHIC RISK PROTECTION.

        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:
                        ``(A) 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.''.

    SEC. 11004. PERMANENT ENTERPRISE UNIT.

        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:
                        ``(A) In general.--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).''.

    SEC. 11005. ENTERPRISE UNITS FOR IRRIGATED AND NONIRRIGATED CROPS.

        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:
                        ``(D) Nonirrigated crops.--Beginning with the 2014
                    crop year, the Corporation shall make available
                    separate enterprise units for irrigated and
                    nonirrigated acreages of crops in counties.''.

    SEC. 11006. DATA COLLECTION.

        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:
                        ``(E) Sources of yield data.--To determine yields
                    under this paragraph, the Corporation--
                                ``(i) shall use county data collected by
                            the Risk Management Agency or the National
                            Agricultural Statistics Service, or both; or
                                ``(ii) if sufficient county data is not
                            available, may use other data considered
                            appropriate by the Secretary.''.

    SEC. 11007. ADJUSTMENT IN ACTUAL PRODUCTION HISTORY TO ESTABLISH
                  INSURABLE YIELDS.

        Section 508(g)(4)(B) of the Federal Crop Insurance Act (7 U.S.C.
    1508(g)(4)(B)) is amended--
                (1) in the matter preceding clause (i), by inserting ``for
            the 2013 crop year or any prior crop year, or 65 percent of the
            applicable transitional yield for the 2014 or any subsequent
            crop year,'' after ``transitional yield''; and
                (2) in clause (ii), by striking ``60 percent of the
            applicable transitional yield'' and inserting ``the applicable
            percentage of the transitional yield described in this
            subparagraph''.

    SEC. 11008. SUBMISSION AND REVIEW OF POLICIES.

        Section 508(h)(1) of the Federal Crop Insurance Act (7 U.S.C.
    1508(h)(1)) is amended--
                (1) by redesignating subparagraphs (A) and (B) as clauses
            (i) and (ii), respectively, and indenting appropriately;
                (2) by striking ``(1) In general.--'' and inserting the
            following:
                ``(1) Submission and review of policies.--
                        ``(A) Submissions.--In addition''; and
                (3) by adding at the end the following:
                        ``(B) Review.--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--
                                ``(i) will likely result in a viable and
                            marketable policy consistent with this
                            subsection;
                                ``(ii) would provide crop insurance
                            coverage in a significantly improved form; and
                                ``(iii) adequately protects the interests
                            of producers.''.

    SEC. 11009. BOARD REVIEW AND APPROVAL.

        (a) Review and Approval by the Board.--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:
                ``(3) Review and approval by the board.--
                        ``(A) In general.--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--
                                ``(i) the interests of producers are
                            adequately protected;
                                ``(ii) the rates of premium and price
                            election methodology are actuarially
                            appropriate;
                                ``(iii) the terms and conditions for the
                            proposed policy or plan of insurance are
                            appropriate and would not unfairly discriminate
                            among producers;
                                ``(iv) the proposed policy or plan of
                            insurance will, at the sole discretion of the
                            Board--
                                        ``(I) likely result in a viable and
                                    marketable policy that can reasonably
                                    attain levels of participation similar
                                    to other like policies or plans of
                                    insurance;
                                        ``(II) 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
                                        ``(III) 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;
                                ``(v) 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
                                ``(vi) the proposed policy or plan of
                            insurance meets such other requirements as are
                            determined appropriate by the Board.
                        ``(B) Priorities.--
                                ``(i) Establishment.--The Board, at the
                            sole discretion of the Board, may--
                                        ``(I) 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
                                        ``(II) make the priorities
                                    available on the website of the
                                    Corporation.
                                ``(ii) Process.--
                                        ``(I) In general.--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.
                                        ``(II) Considerations.--In
                                    approving policies or plans of
                                    insurance, the Board shall--
                                                ``(aa) consider providing
                                            the highest priorities for
                                            policies or plans of insurance
                                            that address underserved
                                            commodities, including
                                            commodities for which there is
                                            no insurance; and
                                                ``(bb) consider providing
                                            the highest priorities for
                                            existing policies for which
                                            there is inadequate coverage or
                                            there exists low levels of
                                            participation.
                                ``(iii) Other criteria.--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.''.

    SEC. 11010. CONSULTATION.

        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:
                        ``(E) Consultation.--
                                ``(i) Requirement.--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.
                                ``(ii) Submission to the board.--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.
                                ``(iii) Evaluation by the board.--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.''.

    SEC. 11011. BUDGET LIMITATIONS ON RENEGOTIATION OF THE STANDARD
                  REINSURANCE AGREEMENT.

        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:
                        ``(F) Budget.--
                                ``(i) In general.--The Board shall ensure
                            that any Standard Reinsurance Agreement
                            negotiated under subparagraph (A)(ii), as
                            compared to the previous Standard Reinsurance
                            Agreement--
                                        ``(I) to the maximum extent
                                    practicable, shall be budget neutral;
                                    and
                                        ``(II) in no event, may
                                    significantly depart from budget
                                    neutrality.
                                ``(ii) Use of savings.--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.''.

    SEC. 11012. TEST WEIGHT FOR CORN.

        Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 1508(m))
    is amended by adding at the end the following:
                ``(6) Test weight for corn.--
                        ``(A) In general.--The Corporation shall establish
                    procedures to allow insured producers not more than 120
                    days to settle claims, in accordance with procedures
                    established by the Secretary, involving corn that is
                    determined to have low test weight.
                        ``(B) Implementation.--As soon as practicable after
                    the date of enactment of this paragraph, the
                    Corporation shall implement subparagraph (A) on a
                    regional basis based on market conditions and the
                    interests of producers.
                        ``(C) Termination of effectiveness.--The authority
                    provided by this paragraph terminates effective on the
                    date that is 5 years after the date on which
                    subparagraph (A) is implemented.''.

    SEC. 11013. STACKED INCOME PROTECTION PLAN FOR PRODUCERS OF UPLAND
                  COTTON.

        (a) Availability of Stacked Income Protection Plan.--The Federal
    Crop Insurance Act is amended by inserting after section 508A (7 U.S.C.
    1508a) the following:

    ``SEC. 508B. STACKED INCOME PROTECTION PLAN FOR PRODUCERS OF UPLAND
                  COTTON.

        ``(a) Availability.--Beginning not later than the 2014 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 `Stacked Income Protection Plan'), 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.
        ``(b) Required Terms.--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:
                ``(1)(A) Provide coverage for revenue loss of not more than
            30 percent of expected county revenue, specified in increments
            of 5 percent.
                ``(B) 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.
                ``(C) Once the deductible is met, any losses in excess of
            the deductible will be paid up to the coverage selected by the
            producer.
                ``(2) Be offered to producers of upland cotton in all
            counties with upland cotton production--
                        ``(A) at a county-wide level to the fullest extent
                    practicable; or
                        ``(B) 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.
                ``(3) 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.
                ``(4) Establish coverage based on--
                        ``(A) 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
                        ``(B) an expected county yield that is the higher
                    of--
                                ``(i) 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
                                ``(ii)(I) 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
                                ``(II) if sufficient county data is not
                            available, such other data considered
                            appropriate by the Secretary.
                ``(5) Use a multiplier factor to establish maximum
            protection per acre (referred to as a `protection factor') of
            not more than 120 percent.
                ``(6) 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).
                ``(7) To the maximum extent practicable, in all counties
            for which data are available, establish separate coverage for
            irrigated and nonirrigated practices.
                ``(8) Notwithstanding section 508(d), include a premium
            that--
                        ``(A) is sufficient to cover anticipated losses and
                    a reasonable reserve; and
                        ``(B) includes an amount for operating and
                    administrative expenses established in accordance with
                    section 508(k)(4)(F).
        ``(c) Relation to Other Coverages.--
                ``(1) In general.--Except as provided in paragraph (2), the
            Stacked Income Protection Plan is in addition to all other
            coverages available to producers of upland cotton.
                ``(2) Limitation.--Acreage of upland cotton insured under
            the Supplemental Coverage Option shall not be eligible for the
            Stacked Income Protection Plan.
        ``(d) Payment of Portion of Premium by Corporation.--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--
                ``(1) 80 percent of the amount of the premium established
            under subsection (b)(8)(A) for the coverage level selected; and
                ``(2) the amount determined under subsection (b)(8)(B) to
            cover administrative and operating expenses.''.
        (b) Conforming Amendment.--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 ``or under section 508B'' after ``subsection
    (c)(4)(C)''.

    SEC. 11014. PEANUT REVENUE CROP INSURANCE.

        The Federal Crop Insurance Act is amended by inserting after
    section 508B (as added by section 11013(a)) the following:

    ``SEC. 508C. PEANUT REVENUE CROP INSURANCE.

        ``(a) In General.--Effective beginning with the 2014 crop year, the
    Risk Management Agency and the Corporation shall make available to
    producers of peanuts a revenue crop insurance program for peanuts.
        ``(b) Effective Price.--
                ``(1) In general.--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.
                ``(2) Adjustments.--
                        ``(A) In general.--The effective price for peanuts
                    established under paragraph (1) may be adjusted by the
                    Risk Management Agency and the Corporation to correct
                    distortions.
                        ``(B) Administration.--If an adjustment is made
                    under subparagraph (A), the Risk Management Agency and
                    the Corporation shall--
                                ``(i) make the adjustment in an open and
                            transparent manner; and
                                ``(ii) 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.''.

    SEC. 11015. AUTHORITY TO CORRECT ERRORS.

        Section 515(c) of the Federal Crop Insurance Act (7 U.S.C. 1515(c))
    is amended--
                (1) in the first sentence, by striking ``The Secretary''
            and inserting the following:
                ``(1) In general.--The Secretary'';
                (2) in the second sentence, by striking ``Beginning with''
            and inserting the following:
                ``(2) Frequency.--Beginning with''; and
                (3) by adding at the end the following:
                ``(3) Corrections.--
                        ``(A) In general.--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.
                        ``(B) Limitation.--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--
                                ``(i) to obtain a disproportionate benefit
                            under the crop insurance program or any related
                            program of the Department of Agriculture;
                                ``(ii) to avoid ineligibility requirements
                            for insurance; or
                                ``(iii) to avoid an obligation or
                            requirement under any Federal or State law.''.

    SEC. 11016. IMPLEMENTATION.

        Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1515) is
    amended--
                (1) in subsection (j), by striking paragraph (1) and
            inserting the following:
                ``(1) Systems maintenance and upgrades.--
                        ``(A) In general.--The Secretary shall maintain and
                    upgrade the information management systems of the
                    Corporation used in the administration and enforcement
                    of this subtitle.
                        ``(B) Requirement.--
                                ``(i) In general.--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.
                                ``(ii) Acreage report streamlining
                            initiative project.--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.''; and
                (2) in subsection (k), by striking paragraph (1) and
            inserting the following:
                ``(1) Information technology.--
                        ``(A) In general.--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--
                                ``(i)(I) for fiscal year 2014, $25,000,000;
                            and
                                ``(II) for each of fiscal years 2015
                            through 2018, $10,000,000; or
                                ``(ii) 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 2015 through 2018.
                        ``(B) Notification.--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.''.

    SEC. 11017. CROP INSURANCE FRAUD.

        Section 516(b)(2) of the Federal Crop Insurance Act (7 U.S.C.
    1516(b)(2)) is amended by adding at the end the following:
                        ``(C) Reviews, compliance, and program integrity.--
                    For each of the 2014 and subsequent reinsurance years,
                    the Corporation may use the insurance fund established
                    under subsection (c), but not to exceed $5,000,000 for
                    each fiscal year, to pay the following:
                                ``(i) Costs to reimburse expenses incurred
                            for the review of policies, plans of insurance,
                            and related materials and to assist the
                            Corporation in maintaining program integrity.
                                ``(ii) In addition to other available
                            funds, costs incurred by the Risk Management
                            Agency for compliance operations associated
                            with activities authorized under this title.''.

    SEC. 11018. APPROVAL OF COSTS FOR RESEARCH AND DEVELOPMENT.

        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:
                        ``(E) Approval.--
                                ``(i) In general.--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--
                                        ``(I) the concept, in good faith,
                                    will likely result in a viable and
                                    marketable policy consistent with
                                    section 508(h);
                                        ``(II) at the sole discretion of
                                    the Board, the concept, if developed
                                    into a policy and approved by the
                                    Board, would provide crop insurance
                                    coverage--
                                                ``(aa) in a significantly
                                            improved form or that addresses
                                            a unique need of agricultural
                                            producers;
                                                ``(bb) to a crop or region
                                            not traditionally served by the
                                            Federal crop insurance program;
                                            or
                                                ``(cc) in a form that
                                            addresses a recognized flaw or
                                            problem in the program;
                                        ``(III) the applicant agrees to
                                    provide such reports as the Corporation
                                    determines are necessary to monitor the
                                    development effort;
                                        ``(IV) the proposed budget and
                                    timetable are reasonable, as determined
                                    by the Board; and
                                        ``(V) the concept proposal meets
                                    any other requirements that the Board
                                    determines appropriate.
                                ``(ii) Waiver.--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--
                                        ``(I) 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;
                                        ``(II) the submitter is making
                                    satisfactory progress towards
                                    developing a viable and marketable
                                    policy or plan of insurance consistent
                                    with section 508(h); and
                                        ``(III) 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).''.

    SEC. 11019. WHOLE FARM RISK MANAGEMENT INSURANCE.

        Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c))
    is amended by adding at the end the following:
                ``(18) Whole farm diversified risk management insurance
            plan.--
                        ``(A) In general.--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.
                        ``(B) Eligible producers.--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.
                        ``(C) Diversification.--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.
                        ``(D) Market readiness.--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.
                        ``(E) Report.--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.''.

    SEC. 11020. STUDY OF FOOD SAFETY INSURANCE.

        Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c))
    (as amended by section 11018) is amended by adding at the end the
    following:
                ``(19) Study of food safety insurance.--
                        ``(A) In general.--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.
                        ``(B) Subject.--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.
                        ``(C) Report.--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).''.

    SEC. 11021. CROP INSURANCE FOR LIVESTOCK.

        Section 522(c) of the Federal Crop Insurance Act (as amended by
    section 11019) is amended by adding at the end the following:
                ``(20) Study on swine catastrophic disease program.--
                        ``(A) In general.--The Corporation shall contract
                    with a qualified person to conduct a study to determine
                    the feasibility of insuring swine producers for a
                    catastrophic event.
                        ``(B) Report.--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).''.

    SEC. 11022. MARGIN COVERAGE FOR CATFISH.

        Section 522(c) of the Federal Crop Insurance Act (as amended by
    section 11020) is amended by adding at the end the following:
                ``(21) Margin coverage for catfish.--
                        ``(A) In general.--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.
                        ``(B) Eligibility.--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.
                        ``(C) Implementation.--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--
                                ``(i) will likely result in a viable and
                            marketable policy consistent with this
                            subsection;
                                ``(ii) would provide crop insurance
                            coverage in a significantly improved form;
                                ``(iii) adequately protects the interests
                            of producers; and
                                ``(iv) the proposed policy meets other
                            requirements of this subtitle determined
                            appropriate by the Board.''.

    SEC. 11023. POULTRY BUSINESS DISRUPTION INSURANCE POLICY.

        Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c))
    (as amended by section 11021) is amended by adding at the end the
    following:
                ``(22) Poultry business disruption insurance policy and
            catastrophic disease program.--
                        ``(A) Definition of poultry.--In this paragraph,
                    the term `poultry' has the meaning given the term in
                    section 2(a) of the Packers and Stockyards Act, 1921 (7
                    U.S.C. 182(a)).
                        ``(B) Authority.--The Corporation shall offer to
                    enter into 1 or more contracts with qualified entities
                    to carry out--
                                ``(i) a study to determine the feasibility
                            of insuring commercial poultry production
                            against business disruptions caused by
                            integrator bankruptcy; and
                                ``(ii) a study to determine the feasibility
                            of insuring poultry producers for a
                            catastrophic event.
                        ``(C) Business disruption study.--The study
                    described in subparagraph (B)(i) shall--
                                ``(i) evaluate the market place for
                            business disruption insurance that is available
                            to poultry producers;
                                ``(ii) 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
                                ``(iii) analyze the costs to the Federal
                            Government of a Federal business disruption
                            insurance program for poultry producers.
                        ``(D) Reports.--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--
                                ``(i) the study carried out under
                            subparagraph (B)(i); and
                                ``(ii) the study carried out under
                            subparagraph (B)(ii).''.

    SEC. 11024. STUDY OF CROP INSURANCE FOR SEAFOOD HARVESTERS.

        Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c))
    (as amended by section 11022) is amended by adding at the end the
    following:
                ``(23) Feasibility study to assist seafood harvesters.--
                        ``(A) In general.--The Corporation shall offer to
                    enter into a contract with a qualified entity to
                    conduct a feasibility study to determine the best
                    method of insuring seafood harvesters, including such
                    data collection and analysis as is necessary to conduct
                    the study.
                        ``(B) Report.--Not later than 1 year after the date
                    of enactment of this subsection, 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
                    describing the results of the study.''.

    SEC. 11025. BIOMASS AND SWEET SORGHUM ENERGY CROP INSURANCE POLICIES.

        Section 522(c) of the Federal Crop Insurance Act of 1938 (7 U.S.C.
    1522(c)) (as amended by section 11023) is amended by adding at the end
    the following:
                ``(24) Biomass and sweet sorghum energy crop insurance
            policies.--
                        ``(A) Authority.--The Corporation shall offer to
                    enter into 1 or more contracts with qualified entities
                    to carry out research and development regarding--
                                ``(i) a policy to insure biomass sorghum
                            that is grown expressly for the purpose of
                            producing a feedstock for renewable biofuel,
                            renewable electricity, or biobased products;
                            and
                                ``(ii) a policy to insure sweet sorghum
                            that is grown for a purpose described in clause
                            (i).
                        ``(B) Research and development.--Research and
                    development with respect to each of the policies
                    described in subparagraph (A) shall evaluate the
                    effectiveness of risk management tools for the
                    production of biomass sorghum or sweet sorghum,
                    including policies and plans of insurance that--
                                ``(i) are based on market prices and
                            yields;
                                ``(ii) to the extent that insufficient data
                            exist to develop a policy based on market
                            prices and yields, are based on the use of
                            weather indices, including, at a minimum,
                            excessive or inadequate rainfall, to protect
                            the interests of crop producers; and
                                ``(iii) provide protection for production
                            or revenue losses, or both.''.

    SEC. 11026. ALFALFA CROP INSURANCE POLICY.

        Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c))
    (as amended by section 11024) is amended by adding at the end the
    following:
                ``(25) Alfalfa crop insurance policy.--
                        ``(A) In general.--The Corporation shall offer to
                    enter into 1 or more contracts with qualified entities
                    to carry out research and development regarding a
                    policy to insure alfalfa.
                        ``(B) Report.--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).''.

    SEC. 11027. CROP INSURANCE FOR ORGANIC CROPS.

        (a) In General.--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:
                        ``(D) Organic crops.--
                                ``(i) In general.--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.
                                ``(ii) Annual report.--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--
                                        ``(I) the numbers and varieties of
                                    organic crops insured;
                                        ``(II) the progress of implementing
                                    the price elections required under this
                                    subparagraph, including the rate at
                                    which additional price elections are
                                    adopted for organic crops;
                                        ``(III) the development of new
                                    insurance approaches relevant to
                                    organic producers; and
                                        ``(IV) any recommendations the
                                    Corporation considers appropriate to
                                    improve Federal crop insurance coverage
                                    for organic crops.''.
        (b) Conforming Amendment.--Section 522(c) of the Federal Crop
    Insurance Act (7 U.S.C. 1522(c)) (as amended by section 11024) is
    amended--
                (1) by striking paragraph (10); and
                (2) by redesignating paragraphs (11) through (24) as
            paragraphs (10) through (23), respectively.

    SEC. 11028. RESEARCH AND DEVELOPMENT.

        (a) In General.--Section 522(c) of the Federal Crop Insurance Act
    (7 U.S.C. 1522(c)) is amended--
                (1) in the subsection heading, by striking ``Contracting'';
                (2) in paragraph (1), in the matter preceding subparagraph
            (A), by striking ``may enter into contracts to carry out
            research and development to'' and inserting ``may conduct
            activities or enter into contracts to carry out research and
            development to maintain or improve existing policies or develop
            new policies to'';
                (3) in paragraph (2)--
                        (A) in subparagraph (A), by inserting ``conduct
                    research and development or'' after ``The Corporation
                    may''; and
                        (B) by striking subparagraph (B) and inserting the
                    following:
                        ``(B) Consultation.--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).'';
                (4) in paragraph (5), by inserting ``after expert review in
            accordance with section 505(e) and procedures of the Board''
            after ``approved by the Board''; and
                (5) in paragraph (6), by striking ``a pasture, range, and
            forage program'' and inserting ``policies that increase
            participation by producers of underserved agricultural
            commodities, including sweet sorghum, sorghum for biomass,
            specialty crops, sugarcane, and dedicated energy crops''.
        (b) Funding.--Section 522(e) of the Federal Crop Insurance Act (7
    U.S.C. 1522(e)) is amended--
                (1) in paragraph (2)--
                        (A) by striking ``(A) Authority.--'' and inserting
                    ``(A) Conducting and contracting for research and
                    development.--'';
                        (B) in subparagraph (A), by inserting ``conduct
                    research and development and'' after ``the Corporation
                    may use to''; and
                        (C) in subparagraph (B), by inserting ``conduct
                    research and development and'' after ``for the fiscal
                    year to'';
                (2) in paragraph (3), in the matter preceding subparagraph
            (A), by striking ``to provide either reimbursement payments or
            contract payments''; and
                (3) by striking paragraph (4).

    SEC. 11029. PILOT PROGRAMS.

        Section 523(a) of the Federal Crop Insurance Act (7 U.S.C. 1523(a))
    is amended--
                (1) in paragraph (1), by inserting ``, at the sole
            discretion of the Corporation,'' after ``may''; and
                (2) by striking paragraph (5).

    SEC. 11030. INDEX-BASED WEATHER INSURANCE PILOT PROGRAM.

        Section 523(a)(2) of the Federal Crop Insurance Act (7 U.S.C.
    1523(a)(2)) is amended--
                (1) by striking ``Under'' inserting the following:
                        ``(A) In general.--Under''; and
                (2) by adding at the end the following:
                        ``(B) Index-based weather insurance pilot
                    program.--
                                ``(i) In general.--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.
                                ``(ii) Payment of premium.--
                                        ``(I) In general.--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.
                                        ``(II) Condition.--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.
                                ``(iii) Eligible providers.--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--
                                        ``(I) 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
                                        ``(II) to support and deliver the
                                    index-based weather insurance products.
                                ``(iv) Procedures.--The Corporation shall
                            develop and publish procedures to administer
                            the pilot program under this subparagraph
                            that--
                                        ``(I) 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;
                                        ``(II) 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
                                        ``(III) contain such other
                                    requirements as the Corporation
                                    determines to be necessary to ensure
                                    that--
                                                ``(aa) the interests of
                                            producers are protected; and
                                                ``(bb) the program operates
                                            in an actuarially sound manner.
                                ``(v) Funding.--Of the funds of the
                            Corporation, the Corporation shall use to carry
                            out this subparagraph $10,000,000 for each of
                            fiscal years 2014 through 2018, to remain
                            available until expended.''.

    SEC. 11031. ENHANCING PRODUCER SELF-HELP THROUGH FARM FINANCIAL
                  BENCHMARKING.

        (a) Definition.--Section 502(b) of the Federal Crop Insurance Act
    (7 U.S.C. 1502(b)) is amended--
                (1) by redesignating paragraphs (6) through (9) as
            paragraphs (7) through (10), respectively; and
                (2) by inserting after paragraph (5) the following:
                ``(6) Farm financial benchmarking.--The term `farm
            financial benchmarking' means--
                        ``(A) 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
                        ``(B) 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).''.
        (b) Partnerships for Risk Management for Producers of Specialty
    Crops and Underserved Agricultural Commodities.--Section 522(d)(3)(F)
    of the Federal Crop Insurance Act (7 U.S.C. 1522(d)(3)(F)) is amended
    by inserting ``farm financial benchmarking,'' after ``management,''.
        (c) Crop Insurance Education and Risk Management Assistance.--
    Section 524(a) of the Federal Crop Insurance Act (7 U.S.C. 1524(a)) is
    amended--
                (1) in paragraph (3)(A), by inserting ``farm financial
            benchmarking,'' after ``risk reduction,''; and
                (2) in paragraph (4), in the matter preceding subparagraph
            (A), by inserting ``(including farm financial benchmarking)''
            after ``management strategies''.

    SEC. 11032. BEGINNING FARMER AND RANCHER PROVISIONS.

        (a) Definition.--Section 502(b) of the Federal Crop Insurance Act
    (7 U.S.C. 1502(b)) (as amended by section 11029(a)) is amended--
                (1) by redesignating paragraphs (3) through (10) as
            paragraphs (4) through (11), respectively; and
                (2) by inserting after paragraph (2) the following:
                ``(3) Beginning farmer or rancher.--The term `beginning
            farmer or rancher' 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.''.
        (b) Premium Adjustments.--Section 508 of the Federal Crop Insurance
    Act (7 U.S.C. 1508) is amended--
                (1) in subsection (b)(5)(E), by inserting ``and beginning
            farmers or ranchers'' after ``limited resource farmers'';
                (2) in subsection (e), by adding at the end the following:
                ``(8) Premium for beginning farmers or ranchers.--
            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.''; and
                (3) in subsection (g)--
                        (A) in paragraph (2)(B)--
                                (i) in clause (i), by striking ``or'' at
                            the end;
                                (ii) in clause (ii)(III), by striking the
                            period at the end and inserting ``; or''; and
                                (iii) by adding at the end the following:
                                ``(iii) 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--
                                        ``(I) the actual production history
                                    of the previous producer of the crop or
                                    livestock on the acreage determined
                                    under subparagraph (A); or
                                        ``(II) a yield of the producer, as
                                    determined in clause (i).''; and
                        (B) in paragraph (4)(B)(ii) (as amended by section
                    11007)--
                                (i) by inserting ``(I)'' after ``(ii)'';
                                (ii) by striking the period at the end and
                            inserting ``; or''; and
                                (iii) by adding at the end the following:
                                                ``(II) in the case of
                                            beginning farmers or ranchers,
                                            replace each excluded yield
                                            with a yield equal to 80
                                            percent of the applicable
                                            transitional yield.''.

    SEC. 11033. LIMITATION ON PREMIUM SUBSIDY BASED ON AVERAGE ADJUSTED
                  GROSS INCOME.

        Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e))
    (as amended by section 11030(b)) is amended by adding at the end the
    following:
                ``(9) Limitation on premium subsidy based on average
            adjusted gross income.--
                        ``(A) Definition of average adjusted gross
                    income.--In this paragraph, the term `average adjusted
                    gross income' has the meaning given the term in section
                    1001D(a) of the Food Security Act of 1985 (7 U.S.C.
                    1308-3a(a)).
                        ``(B) Limitation.--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.
                        ``(C) Application.--
                                ``(i) Study.--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--
                                        ``(I) the overall operations of the
                                    Federal crop insurance program;
                                        ``(II) the number of producers
                                    participating in the Federal crop
                                    insurance program;
                                        ``(III) the level of coverage
                                    purchased by participating producers;
                                        ``(IV) the amount of premiums paid
                                    by participating producers and the
                                    Federal Government;
                                        ``(V) any potential liability for
                                    participating producers, approved
                                    insurance providers, and the Federal
                                    Government;
                                        ``(VI) different crops or growing
                                    regions;
                                        ``(VII) program rating structures;
                                        ``(VIII) creation of schemes or
                                    devices to evade the impact of the
                                    limitation; and
                                        ``(IX) administrative and operating
                                    expenses paid to approved insurance
                                    providers and underwriting gains and
                                    loss for the Federal government and
                                    approved insurance providers.
                                ``(ii) Effectiveness.--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--
                                        ``(I) significantly increase the
                                    premium amount paid by producers with
                                    an average adjusted gross income of
                                    less than $750,000;
                                        ``(II) result in a decline in the
                                    crop insurance coverage available to
                                    producers; and
                                        ``(III) increase the total cost of
                                    the Federal crop insurance program.''.

    SEC. 11034. AGRICULTURAL MANAGEMENT ASSISTANCE, RISK MANAGEMENT
                  EDUCATION, AND ORGANIC CERTIFICATION COST SHARE
                  ASSISTANCE.

        Section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524) is
    amended by striking subsection (b) and inserting the following:
        ``(b) Agricultural Management Assistance, Risk Management
    Education, and Organic Certification Cost Share Assistance.--
                ``(1) Authority for provision of assistance.--The Secretary
            shall provide assistance under this section as follows:
                        ``(A) 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).
                        ``(B) Activities to support risk management
                    education and community outreach partnerships pursuant
                    to section 522(d), including--
                                ``(i) entering into futures or hedging;
                                ``(ii) entering into agricultural trade
                            options as a hedging transaction to reduce
                            production, price, or revenue risk; or
                                ``(iii) conducting any other activity
                            relating to an activity described in clause (i)
                            or (ii), including farm financial benchmarking,
                            as determined by the Secretary.
                        ``(C) 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--
                                ``(i) constructing or improving--
                                        ``(I) watershed management
                                    structures; or
                                        ``(II) irrigation structures;
                                ``(ii) planting trees to form windbreaks or
                            to improve water quality; and
                                ``(iii) mitigating financial risk through
                            production or marketing diversification or
                            resource conservation practices, including--
                                        ``(I) soil erosion control;
                                        ``(II) integrated pest management;
                                        ``(III) organic farming; or
                                        ``(IV) to develop and implement a
                                    plan to create marketing opportunities
                                    for the producer, including through
                                    value-added processing.
                ``(2) Payment limitation.--The total amount of payments
            made to a person (as defined in section 1001(a)(5) of the Food
            Security Act (7 U.S.C. 1308(a)(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.
                ``(3) Funding.--
                        ``(A) In general.--The Secretary shall carry out
                    this subsection through the Commodity Credit
                    Corporation.
                        ``(B) Funding.--For each of fiscal years 2014
                    through 2018, the Commodity Credit Corporation shall
                    make available to carry out this subsection
                    $23,000,000.
                        ``(C) Distribution of funds.--Of the amount made
                    available to carry out this subsection for a fiscal
                    year, the Commodity Credit Corporation shall use not
                    less than--
                                ``(i) 50 percent to carry out paragraph
                            (1)(A);
                                ``(ii) 26 percent to carry out paragraph
                            (1)(B); and
                                ``(iii) 24 percent to carry out paragraph
                            (1)(C).''.

    SEC. 11035. CROP PRODUCTION ON NATIVE SOD.

        (a) Federal Crop Insurance.--Section 508(o) of the Federal Crop
    Insurance Act (7 U.S.C. 1508(o)) is amended--
                (1) in paragraph (1)(B), by inserting ``, or the producer
            cannot substantiate that the ground has ever been tilled,''
            after ``tilled'';
                (2) in paragraph (2)(A), by striking ``for benefits under--
            '' and all that follows through the period at the end and
            inserting ``for--
                                ``(i) a portion of crop insurance premium
                            subsidies under this subtitle in accordance
                            with paragraph (3);
                                ``(ii) benefits under section 196 of the
                            Federal Agriculture Improvement and Reform Act
                            of 1996 (7 U.S.C. 7333); and
                                ``(iii) payments described in section
                            1001(b) of the Food Security Act of 1985 (7
                            U.S.C. 1308(b)).''; and
                (3) by striking paragraph (3) and inserting the following:
                ``(3) Administration.--
                        ``(A) In general.--During the first 4 crop years of
                    planting on native sod acreage by a producer described
                    in paragraph (2)--
                                ``(i) paragraph (2) shall apply to 65
                            percent of the applicable transitional yield;
                            and
                                ``(ii) 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.
                        ``(B) Yield substitution.--During the period native
                    sod acreage is covered by this subsection, a producer
                    may not substitute yields for the native sod
                    acreage.''.
        (b) Noninsured Crop Disaster Assistance.--Section 196(a)(4) of the
    Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
    7333(a)(4)) is amended--
                (1) in subparagraph (A)(ii), by inserting ``, or the
            producer cannot substantiate that the ground has ever been
            tilled,'' after ``tilled'';
                (2) in subparagraph (B)(i), by striking ``for benefits
            under--'' and all that follows through the period at the end
            and inserting ``for--
                                        ``(I) benefits under this section;
                                        ``(II) 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
                                        ``(III) payments described in
                                    section 1001(b) of the Food Security
                                    Act of 1985 (7 U.S.C. 1308(b)).''; and
                (3) by striking subparagraph (C) and inserting the
            following:
                        ``(C) Administration.--
                                ``(i) In general.--During the first 4 crop
                            years of planting on native sod acreage by a
                            producer described in subparagraph (B)--
                                        ``(I) subparagraph (B) shall apply
                                    to 65 percent of the applicable
                                    transitional yield; and
                                        ``(II) 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.
                                ``(ii) Yield substitution.--During the
                            period native sod acreage is covered by this
                            paragraph, a producer may not substitute yields
                            for the native sod acreage.''.
        (c) Cropland Report.--
                (1) Baseline.--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.
                (2) Annual updates.--Not later than January 1, 2014, and
            each January 1 thereafter through January 1, 2018, 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--
                        (A) the cropland acreage in each county and State
                    as of the date of submission of the report;
                        (B) the change in cropland acreage from the
                    preceding year in each county and State; and
                        (C) the number of acres of native sod that have
                    been converted to cropland or to any other use in the
                    preceding year in each county and State.

    SEC. 11036. TECHNICAL AMENDMENTS.

        Section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b))
    is amended--
                (1) by striking paragraph (7); and
                (2) by redesignating paragraphs (8) through (11) as
            paragraphs (7) through (10), respectively.

    SEC. 11037. GREATER ACCESSIBILITY FOR CROP INSURANCE.

        (a) Findings.--Congress finds that--
                (1) due to changes in commodity and other agricultural
            programs made by the Agriculture Reform, Food, and Jobs Act of
            2013, 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
                (2) 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.
        (b) Requirement for Use of Plain Language.--
                (1) In general.--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).
                (2) Report.--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).
        (c) Website.--
                (1) In general.--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.
                (2) Requirements.--The website described in paragraph (1)
            shall--
                        (A) provide answers in an easily accessible format
                    to frequently asked questions; and
                        (B) include published materials of the Department
                    of Agriculture that relate to plans and policies of
                    crop insurance offered under that Act.
        (d) Administration.--Nothing in this section authorizes the Risk
    Management Agency to sell a crop insurance policy or plan of insurance.

    SEC. 11038. GAO CROP INSURANCE FRAUD REPORT.

        Section 515(d) of the Federal Crop Insurance Act (7 U.S.C. 1515(d))
    is amended by adding at the end the following:
                ``(6) GAO crop insurance fraud report.--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.''.

                            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.

        (a) Outreach and Assistance for Socially Disadvantaged Farmers and
    Ranchers and Veteran Farmers and Ranchers.--Section 2501 of the Food,
    Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is
    amended--
                (1) in the section heading, by inserting ``and veteran
            farmers and ranchers'' after ``ranchers'';
                (2) in subsection (a)--
                        (A) in paragraph (2)(B)(i), by inserting ``and
                    veteran farmers or ranchers'' after ``ranchers''; and
                        (B) in paragraph (4)--
                                (i) in subparagraph (A)--
                                        (I) in the heading, by striking
                                    ``Fiscal years 2009 through 2012'' and
                                    inserting ``Mandatory funding'';
                                        (II) in clause (i), by striking
                                    ``and'' at the end;
                                        (III) in clause (ii), by striking
                                    the period at the end and inserting ``;
                                    and''; and
                                        (IV) by adding at the end the
                                    following:
                                ``(iii) $10,000,000 for each of fiscal
                            years 2014 through 2018.''; and
                                (ii) by striking subparagraph (B) and
                            inserting the following:
                        ``(B) Authorization of appropriations.--There is
                    authorized to be appropriated to carry out this section
                    $20,000,000 for each of fiscal years 2014 through
                    2018.'';
                (3) in subsection (b)(2), by inserting ``or veteran farmers
            and ranchers'' after ``socially disadvantaged farmers and
            ranchers''; and
                (4) in subsection (c)--
                        (A) in paragraph (1)(A), by inserting ``veteran
                    farmers or ranchers and'' before ``members''; and
                        (B) in paragraph (2)(A), by inserting ``veteran
                    farmers or ranchers and'' before ``members''.
        (b) Definition of Veteran Farmer or Rancher.--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:
                ``(7) Veteran farmer or rancher.--The term `veteran farmer
            or rancher' 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.''.

    SEC. 12002. SOCIALLY DISADVANTAGED FARMERS AND RANCHERS POLICY RESEARCH
                  CENTER.

        Section 2501 of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 2279) is amended by adding at the end the following:
        ``(i) Socially Disadvantaged Farmers and Ranchers Policy Research
    Center.--The Secretary shall award a grant, through a competitive grant
    program, to an eligible 1890 Institution (as defined in section 2 of
    the Agricultural Research, Extension, and Education Reform Act of 1998
    (7 U.S.C. 7601)) to establish a policy research center, to be known as
    the `Socially Disadvantaged Farmers and Ranchers Policy Research
    Center', for the purpose of developing policy recommendations for the
    protection and promotion of the interests of socially disadvantaged
    farmers and ranchers.''.

    SEC. 12003. OFFICE OF ADVOCACY AND OUTREACH.

        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:
                ``(3) Authorization of appropriations.--There are
            authorized to be appropriated to carry out this subsection--
                        ``(A) such sums as are necessary for each of fiscal
                    years 2009 through 2013; and
                        ``(B) $2,000,000 for each of fiscal years 2014
                    through 2018.''.

                             Subtitle B--Livestock

    SEC. 12101. WILDLIFE RESERVOIR ZOONOTIC DISEASE INITIATIVE.

        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:

    ``SEC. 413. WILDLIFE RESERVOIR ZOONOTIC DISEASE INITIATIVE.

        ``(a) Definition of Covered Disease.--In this section, the term
    `covered disease' means a zoonotic disease affecting domestic livestock
    that is transmitted primarily from wildlife.
        ``(b) Establishment.--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.
        ``(c) Covered Disease.--
                ``(1) In general.--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--
                        ``(A) a wildlife reservoir in the United States; or
                        ``(B) domestic livestock or wildlife presenting a
                    potential concern to public health.
                ``(2) Priority.--In making grants under this section, the
            Secretary shall give priority to grants that address--
                        ``(A) Brucella abortus (Bovine Brucellosis);
                        ``(B) Mycobacterium bovis (Bovine Tuberculosis); or
                        ``(C) 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).
        ``(d) Eligible Entities.--The Secretary shall carry out the
    initiative established under subsection (b) through public scientific
    research consortia that may consist of members from--
                ``(1) Federal agencies;
                ``(2) National Laboratories;
                ``(3) institutions of higher education;
                ``(4) research institutions and organizations; or
                ``(5) State agricultural experiment stations.
        ``(e) Research Projects.--In carrying out this section, the
    Secretary shall award grants on a competitive basis.
        ``(f) Administration.--
                ``(1) In general.--In the case of grants awarded under this
            section, the Secretary shall--
                        ``(A) seek and accept proposals for grants;
                        ``(B) determine the relevance and merit of
                    proposals through a system of peer and merit review in
                    accordance with section 103;
                        ``(C) award grants on the basis of merit, quality,
                    and relevance; and
                        ``(D) manage the initiative established under
                    subsection (b) using a Coordinated Agricultural Project
                    format.
                ``(2) Term.--The term of a grant under this section may not
            exceed 10 years.
                ``(3) Matching funds required.--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.
                ``(4) Other conditions.--The Secretary may set such other
            conditions on the award of a grant under this section as the
            Secretary determines to be appropriate.
        ``(g) Buildings and Facilities.--Funds made available under this
    section shall not be used for--
                ``(1) the construction of a new building or facility; or
                ``(2) the acquisition, expansion, remodeling, or alteration
            of an existing building or facility (including site grading and
            improvement and architect fees).
        ``(h) Authorization of Appropriations.--
                ``(1) In general.--There is authorized to be appropriated
            to carry out this section $7,000,000 for each of fiscal years
            2014 through 2018.
                ``(2) Allocation.--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).''.

    SEC. 12102. TRICHINAE CERTIFICATION PROGRAM.

        (a) Alternative Certification Process.--
                (1) In general.--The Secretary shall amend the regulation
            issued under section 11010(a)(2) of the Food, Conservation, and
            Energy Act of 2008 (7 U.S.C. 8304(a)(2)) to implement the
            voluntary trichinae certification program established under
            section 11010(a)(1) of that Act, to include a requirement to
            establish an alternative trichinae certification process based
            on surveillance or other methods consistent with international
            standards for categorizing compartments as having negligible
            risk for trichinae.
                (2) Final regulations.--Not later than 1 year after the
            date on which the international standards described in
            paragraph (1) are adopted, the Secretary shall finalize the
            rule amended under paragraph (1).
        (b) Reauthorization.--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 ``2012'' each place it appears and inserting
    ``2018''.

    SEC. 12103. NATIONAL AQUATIC ANIMAL HEALTH PLAN.

        Section 11013(d) of the Food, Conservation, and Energy Act of 2008
    (7 U.S.C. 8322(d)) is amended by striking ``2012'' and inserting
    ``2018''.

    SEC. 12104. SHEEP PRODUCTION AND MARKETING GRANT PROGRAM.

        (a) In General.--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:

    ``SEC. 209. SHEEP PRODUCTION AND MARKETING GRANT PROGRAM.

        ``(a) Establishment.--The Secretary, acting through the
    Administrator of the Agricultural Marketing Service (referred to in
    this section as the `Secretary') shall establish a competitive grant
    program for the purposes of improving the United States sheep industry.
        ``(b) Purpose.--The purpose of the grant program shall be to
    strengthen and enhance the production and marketing of sheep and sheep
    products, including improvement of--
                ``(1) infrastructure;
                ``(2) business;
                ``(3) resource development; and
                ``(4) innovative approaches to solve long-term needs.
        ``(c) Eligibility.--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.
        ``(d) Funding.--Of the funds of the Commodity Credit Corporation,
    the Secretary shall use to carry out this section $1,500,000 for fiscal
    year 2014, to remain available until expended.''.
        (b) Conforming Amendment.--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--
                (1) amended in subsection (e)--
                        (A) in paragraph (3)(D), by striking ``3 percent''
                    and inserting ``10 percent''; and
                        (B) by striking paragraph (6); and
                (2) redesignated as section 210 of the Agricultural
            Marketing Act of 1946; and
                (3) moved so as to appear at the end of subtitle A of that
            Act (as amended by subsection (a)).

    SEC. 12105. FERAL SWINE ERADICATION PILOT PROGRAM.

        (a) In General.--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.
        (b) Pilot.--Subject to the availability of appropriations under
    this section, the Secretary may provide financial assistance for the
    cost of carrying out a pilot program--
                (1) to study and assess the nature and extent of damage to
            the pilot area caused by feral swine;
                (2) to develop methods to eradicate or control feral swine
            in the pilot area; and
                (3) to develop methods to restore damage caused by feral
            swine.
        (c) Coordination.--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.
        (d) Cost Sharing.--
                (1) Federal share.--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.
                (2) In-kind contributions.--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.
        (e) Limitation on Administrative Expenses.--Not more than 10
    percent of financial assistance provided by the Secretary under this
    section may be used for administrative expenses.
        (f) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $2,000,000 for each of fiscal
    years 2014 through 2018.

    SEC. 12106. NATIONAL ANIMAL HEALTH LABORATORY NETWORK.

        Subtitle E of title X of the Farm Security and Rural Investment Act
    of 2002 (7 U.S.C. 8301 et seq.) is amended by inserting after section
    10409 the following:

    ``SEC. 10409A. NATIONAL ANIMAL HEALTH LABORATORY NETWORK.

        ``(a) Definition of Eligible Laboratory.--In this section, the term
    `eligible laboratory' means a diagnostic laboratory that meets specific
    criteria developed by the Secretary, in consultation with State animal
    health officials, State veterinary diagnostic laboratories, and
    veterinary diagnostic laboratories at institutions of higher education.
        ``(b) Contracts.--The Secretary, in consultation with State
    veterinarians, shall offer to enter into contracts, grants, cooperative
    agreements, or other legal instruments with eligible laboratories--
                ``(1) to enhance the capability of the Secretary to respond
            in a timely manner to emerging or existing bioterrorist threats
            to animal health; and
                ``(2) to provide the capacity and capability for
            standardized--
                        ``(A) test procedures, reference materials, and
                    equipment;
                        ``(B) laboratory biosafety and biosecurity levels;
                        ``(C) quality management system requirements;
                        ``(D) interconnected electronic reporting and
                    transmission of data; and
                        ``(E) evaluation for emergency preparedness; and
                ``(3) to coordinate the development, implementation, and
            enhancement of national veterinary diagnostic laboratory
            capabilities, with special emphasis on surveillance planning
            and vulnerability analysis, technology development and
            validation, training, and outreach.
        ``(c) Priority.--To the extent practicable and to the extent
    capacity and specialized expertise may be necessary, the Secretary
    shall give priority to eligible laboratories at existing Federal
    facilities, State facilities, and facilities at institutions of higher
    education.
        ``(d) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $15,000,000 for each of fiscal
    years 2014 through 2018.''.

    SEC. 12107. NATIONAL POULTRY IMPROVEMENT PLAN (NPIP).

        (a) Surveillance Program.--The Secretary shall ensure that the
    Department of Agriculture continues to administer the avian influenza
    surveillance program in commercial poultry through the National Poultry
    Improvement Program.
        (b) Standards.--The Secretary shall ensure that the program
    described in subsection (a) meets any relevant standards established by
    the World Organization for Animal Health.

                   Subtitle C--Other Miscellaneous Provisions

    SEC. 12201. MILITARY VETERANS AGRICULTURAL LIAISON.

        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:

    ``SEC. 219. MILITARY VETERANS AGRICULTURAL LIAISON.

        ``(a) Authorization.--The Secretary shall establish in the
    Department the position of Military Veterans Agricultural Liaison.
        ``(b) Duties.--The Military Veterans Agricultural Liaison shall--
                ``(1) 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;
                ``(2) 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;
                ``(3) serving as a resource for assisting veteran farmers
            and ranchers, and potential farmers and ranchers, in applying
            for participation in agricultural programs; and
                ``(4) advocating on behalf of veterans in interactions with
            employees of the Department.
        ``(c) Contracts and Cooperative Agreements.--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--
                ``(1) the conduct of regional research on the profitability
            of small farms;
                ``(2) the development of educational materials;
                ``(3) the conduct of workshops, courses, and certified
            vocational training;
                ``(4) the conduct of mentoring activities; or
                ``(5) the provision of internship opportunities.''.

    SEC. 12202. INFORMATION GATHERING.

        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:
                        ``(B) Cooperation with state and local
                    governments.--
                                ``(i) In general.--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.
                                ``(ii) Restriction.--Any information
                            disclosed to a State agency, political
                            subdivision, or local governmental agency under
                            clause (i) shall be--
                                        ``(I) used solely by the State
                                    agency, political subdivision, or local
                                    governmental agency; and
                                        ``(II) exempt from disclosure to
                                    the public, including under any State
                                    law that allows a citizen to petition a
                                    State agency for that information.''.

    SEC. 12203. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND TRAINING
                  OF AGRICULTURAL LABOR FORCE.

        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:
        ``(d) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section--
                ``(1) such sums as are necessary for each of fiscal years
            2008 through 2013; and
                ``(2) $10,000,000 for each of fiscal years 2014 through
            2018.''.

    SEC. 12204. NONINSURED CROP ASSISTANCE PROGRAM.

        (a) In General.--Section 196 of the Federal Agriculture Improvement
    and Reform Act of 1996 (7 U.S.C. 7333) is amended--
                (1) in subsection (a)--
                        (A) by striking paragraph (1) and inserting the
                    following:
                ``(1) In general.--
                        ``(A) Coverages.--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--
                                ``(i) catastrophic risk protection
                            available under section 508(b) of the Federal
                            Crop Insurance Act (7 U.S.C. 1508(b)); or
                                ``(ii) 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.
                        ``(B) Administration.--The Secretary shall carry
                    out this section through the Farm Service Agency
                    (referred to in this section as the `Agency').''; and
                        (B) in paragraph (2)--
                                (i) in subparagraph (A)--
                                        (I) in the matter before clause
                                    (i), by striking ``(except livestock)''
                                    and inserting ``(except livestock and
                                    crops and grasses used for grazing)'';
                                        (II) in clause (i), by striking
                                    ``and'' after the semicolon at the end;
                                        (III) by redesignating clause (ii)
                                    as clause (iii); and
                                        (IV) by inserting after clause (i)
                                    the following:
                                                ``(ii) for which additional
                                            coverage under subsections (c)
                                            and (h) of section 508 of that
                                            Act (7 U.S.C. 1508) is not
                                            available; and''; and
                                (ii) in subparagraph (B)--
                                        (I) by inserting ``(except ferns)''
                                    after ``floricultural'';
                                        (II) by inserting ``(except
                                    ferns)'' after ``ornamental nursery'';
                                    and
                                        (III) by striking ``(including
                                    ornamental fish)'' and inserting
                                    ``(including ornamental fish, but
                                    excluding tropical fish)'';
                (2) in subsection (d), by striking ``The Secretary'' and
            inserting ``Subject to subsection (l), the Secretary'';
                (3) in subsection (k)(1)--
                        (A) in subparagraph (A), by striking ``$250'' and
                    inserting ``$260''; and
                        (B) in subparagraph (B)--
                                (i) by striking ``$750'' and inserting
                            ``$780''; and
                                (ii) by striking ``$1,875'' and inserting
                            ``$1,950''; and
                (4) by adding at the end the following:
        ``(l) Payment Equivalent to Additional Coverage.--
                ``(1) In general.--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--
                        ``(A) 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;
                        ``(B) 100 percent of the average market price for
                    the crop, as determined by the Secretary; and
                        ``(C) a payment rate for the type of crop, as
                    determined by the Secretary, that reflects--
                                ``(i) 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--
                                        ``(I) harvested;
                                        ``(II) planted but not harvested;
                                    or
                                        ``(III) prevented from being
                                    planted because of drought, flood, or
                                    other natural disaster, as determined
                                    by the Secretary; or
                                ``(ii) 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.
                ``(2) Premium.--To be eligible to receive a payment under
            this subsection, a producer shall pay--
                        ``(A) the service fee required by subsection (k);
                    and
                        ``(B) a premium for the applicable crop year that
                    is equal to--
                                ``(i) the product obtained by multiplying--
                                        ``(I) the number of acres devoted
                                    to the eligible crop;
                                        ``(II) the yield, as determined by
                                    the Secretary under subsection (e);
                                        ``(III) the coverage level elected
                                    by the producer;
                                        ``(IV) the average market price, as
                                    determined by the Secretary; and
                                ``(ii) 5.25-percent premium fee.
                ``(3) Limited resource, beginning, and socially
            disadvantaged farmers.--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).
                ``(4) Additional availability.--
                        ``(A) In general.--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--
                                ``(i) to a 2012 annual fruit crop grown on
                            a bush or tree; and
                                ``(ii) in a county covered by a declaration
                            by the Secretary of a natural disaster for
                            production losses due to a freeze or frost.
                        ``(B) Assistance.--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).''.
        (b) Termination Date.--
                (1) In general.--Effective October 1, 2018, 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.
                (2) Administration.--Effective October 1, 2018, 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.

    SEC. 12205. BIOENERGY COVERAGE IN NONINSURED CROP ASSISTANCE PROGRAM.

        Section 196(a)(2)(B) of the Federal Agriculture Improvement and
    Reform Act of 1996 (7 U.S.C. 7333(a)(2)(B)) is amended by inserting
    ``(including those grown expressly for the purpose of producing a
    feedstock for renewable biofuel, renewable electricity, or biobased
    products)'' after ``industrial crops''.

    SEC. 12206. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT.

        Section 15751 of title 40, United States Code, is amended--
                (1) in subsection (a), by striking ``2012'' and inserting
            ``2018''; and
                (2) in subsection (b)--
                        (A) by striking ``Not more than'' and inserting the
                    following:
                ``(1) In general.--Except as provided in paragraph (2), not
            more than''; and
                        (B) by adding at the end the following:
                ``(2) Limited funding.--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.''.

    SEC. 12207. OFFICE OF TRIBAL RELATIONS.

        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:

    ``SEC. 309. OFFICE OF TRIBAL RELATIONS.

        ``The Secretary shall establish in the Office of the Secretary an
    Office of Tribal Relations.''.

    SEC. 12208. ACER ACCESS AND DEVELOPMENT PROGRAM.

        (a) Grants Authorized; Authorized Activities.--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:
                (1) Promotion of research and education related to maple
            syrup production.
                (2) Promotion of natural resource sustainability in the
            maple syrup industry.
                (3) Market promotion for maple syrup and maple-sap
            products.
                (4) Encouragement of owners and operators of privately held
            land containing species of tree in the genus Acer--
                        (A) to initiate or expand maple-sugaring activities
                    on the land; or
                        (B) to voluntarily make the land available,
                    including by lease or other means, for access by the
                    public for maple-sugaring activities.
        (b) Applications.--In submitting an application for a grant under
    this section, a State or tribal government shall include--
                (1) a description of the activities to be supported using
            the grant funds;
                (2) a description of the benefits that the State or tribal
            government intends to achieve as a result of engaging in such
            activities; and
                (3) 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.
        (c) Relationship to Other Laws.--Nothing in this section preempts a
    State or tribal government law, including any State or tribal
    government liability law.
        (d) Definition of Maple Sugaring.--In this section, the term
    ``maple-sugaring'' means the collection of sap from any species of tree
    in the genus Acer for the purpose of boiling to produce food.
        (e) Regulations.--The Secretary of Agriculture shall promulgate
    such regulations as are necessary to carry out this section.
        (f) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $20,000,000 for each of fiscal
    years 2014 and 2015.

    SEC. 12209. PROHIBITION ON ATTENDING AN ANIMAL FIGHT OR CAUSING A MINOR
                  TO ATTEND AN ANIMAL FIGHT; ENFORCEMENT OF ANIMAL FIGHTING
                  PROVISIONS.

        (a) Prohibition on Attending an Animal Fight or Causing a Minor To
    Attend an Animal Fight.--Section 26 of the Animal Welfare Act (7 U.S.C.
    2156) is amended--
                (1) in subsection (a)--
                        (A) in the heading, by striking ``Sponsoring or
                    Exhibiting an Animal in'' and inserting ``Sponsoring or
                    Exhibiting an Animal in, Attending, or Causing a Minor
                    To Attend'';
                        (B) in paragraph (1)--
                                (i) in the heading, by striking ``In
                            General'' and inserting ``Sponsoring or
                            Exhibiting''; and
                                (ii) by striking ``paragraph (2)'' and
                            inserting ``paragraph (3)'';
                        (C) by redesignating paragraph (2) as paragraph
                    (3); and
                        (D) by inserting after paragraph (1) the following:
                ``(2) Attending or causing a minor to attend.--It shall be
            unlawful for any person to--
                        ``(A) knowingly attend an animal fighting venture;
                    or
                        ``(B) knowingly cause a minor to attend an animal
                    fighting venture.''; and
                (2) in subsection (g), by adding at the end the following:
                ``(5) the term `minor' means a person under the age of 18
            years old.''.
        (b) Enforcement of Animal Fighting Prohibitions.--Section 49 of
    title 18, United States Code, is amended--
                (1) by striking ``Whoever'' and inserting ``(a) In
            General.--Whoever'';
                (2) in subsection (a), as designated by paragraph (1) of
            this section, by striking ``subsection (a),'' and inserting
            ``subsection (a)(1),''; and
                (3) by adding at the end the following:
        ``(b) Attending an Animal Fighting Venture.--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.
        ``(c) Causing a Minor T O Attend an Animal Fighting Venture.--
    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.''.

    SEC. 12210. PIMA COTTON TRUST FUND.

        (a) Establishment of Trust Fund.--There is established in the
    Treasury of the United States a trust fund to be known as the ``Pima
    Cotton Trust Fund'', consisting of such amounts as may be transferred
    to the Pima Cotton Trust Fund pursuant to the authorization of
    appropriations under subsection (e).
        (b) Distribution of Funds.--From amounts in the Pima Cotton Trust
    Fund, the Secretary may make payments annually beginning in fiscal year
    2014 as follows:
                (1) To nationally recognized associations established for
            the promotion of pima cotton for use in textile and apparel
            goods.
                (2) To yarn spinners of pima cotton that produce ring spun
            cotton yarns in the United States, to be allocated to each
            spinner in an amount that bears the same ratio as--
                        (A) the spinner's production of ring spun cotton
                    yarns, measuring less than 83.33 decitex (exceeding 120
                    metric number) from pima cotton in single and plied
                    form during the period January 1, 1998, through
                    December 31, 2003 (as evidenced by an affidavit
                    provided by the spinner that meets the requirements of
                    subsection (c)) bears to--
                        (B) the production of the yarns described in
                    subparagraph (A) during the period January 1, 1998,
                    through December 31, 2003, for all spinners who qualify
                    under this paragraph.
                (3) To manufacturers who cut and sew cotton shirts in the
            United States who certify that they used imported cotton fabric
            during the period January 1, 1998, through July 1, 2003, to be
            allocated to each such manufacturer in an amount that bears the
            same ratio as--
                        (A) the dollar value (excluding duty, shipping, and
                    related costs) of imported woven cotton shirting fabric
                    of 80s or higher count and 2-ply in warp purchased by
                    the manufacturer during calendar year 2002 (as
                    evidenced by an affidavit provided by the manufacturer
                    that meets the requirements of subsection (d)) used in
                    the manufacturing of men's and boys' cotton shirts,
                    bears to--
                        (B) the dollar value (excluding duty, shipping, and
                    related costs) of the fabric described in subparagraph
                    (A) purchased during calendar year 2002 by all
                    manufacturers who qualify under this paragraph.
        (c) Affidavit of Yarn Spinners.--The affidavit required by
    subsection (c)(2)(A) is a notarized affidavit provided annually by an
    officer of a producer of ring spun yarns that affirms--
                (1) that the producer used pima cotton during the year in
            which the affidavit is filed and during the period January 1,
            2002, through December 31, 2002, to produce ring spun cotton
            yarns in the United States, measuring less than 83.33 decitex
            (exceeding 120 metric number), in single and plied form during
            2002;
                (2) the quantity, measured in pounds, of ring spun cotton
            yarns, measuring less than 83.33 decitex (exceeding 120 metric
            number), in single and plied form during calendar year 2002;
            and
                (3) that the producer maintains supporting documentation
            showing the quantity of such yarns produced, and evidencing the
            yarns as ring spun cotton yarns, measuring less than 83.33
            decitex (exceeding 120 metric number), in single and plied form
            during calendar year 2002.
        (d) Affidavit of Shirting Manufacturers.--The affidavit required by
    subsection (c)(3)(A) is a notarized affidavit provided annually by an
    officer of a manufacturer of men's and boys' shirts that affirms--
                (1) that the manufacturer used imported cotton fabric
            during the year in which the affidavit is filed and during the
            period January 1, 1998, through July 1, 2003, to cut and sew
            men's and boys' woven cotton shirts in the United States;
                (2) the dollar value of imported woven cotton shirting
            fabric of 80s or higher count and 2-ply in warp purchased by
            the manufacturer during calendar year 2002;
                (3) that the manufacturer maintains invoices along with
            other supporting documentation (such as price lists and other
            technical descriptions of the fabric qualities) showing the
            dollar value of such fabric purchased, the date of purchase,
            and evidencing the fabric as woven cotton fabric of 80s or
            higher count and 2-ply in warp; and
                (4) that the fabric was suitable for use in the
            manufacturing of men's and boys' cotton shirts.
        (e) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section for
    each of fiscal years 2014 through 2019.

    SEC. 12211. AGRICULTURE WOOL APPAREL MANUFACTURERS TRUST FUND.

        (a) Establishment of Trust Fund.--There is established in the
    Treasury of the United States a trust fund to be known as the
    ``Agriculture Wool Apparel Manufacturers Trust Fund'' (in this section
    referred to as the ``Wool Trust Fund''), consisting of such amounts as
    may be transferred to the Wool Trust Fund pursuant to the authorization
    of appropriations under subsection (e).
        (b) Distribution of Funds.--From amounts in the Wool Trust Fund,
    the Secretary of Agriculture may make payments annually beginning in
    fiscal year 2014 for calendar years 2010 through 2019 as follows:
                (1) To eligible manufactures under paragraph (3) of section
            4002(c) of the Wool Suit and Textile Trade Extension Act of
            2004 (Public Law 108-429; 118 Stat. 2600), as amended by
            section 1633(c) of the Miscellaneous Trade and Technical
            Corrections Act of 2006 (Public Law 109-280; 120 Stat. 1166)
            and section 325(b) of the Tax Extenders and Alternative Minimum
            Tax Relief Act of 2008 (division C of Public Law 110-343; 122
            Stat. 3875), who filed an affidavit with U.S. Customs and
            Border Protection not later than April 15 of the year of the
            payment, so that the amount of such payments, when added to any
            other payments made to eligible manufacturers under that
            paragraph in calendar years 2010 through 2019, equal the total
            amount of payments authorized to be provided to eligible
            manufacturers under that paragraph, or the provisions of this
            section, in such calendar years.
                (2) To eligible manufacturers under paragraph (6) of such
            section 4002(c), so that the amount of such payments, when
            added to any other payments made to eligible manufacturers
            under that paragraph in calendar years 2010 through 2019, equal
            the total amount of payments authorized to be provided to
            eligible manufacturers under that paragraph, or the provisions
            of this section, in such calendar years.
        (c) Payment of Amounts.--The Secretary of Agriculture shall make
    payments to eligible manufacturers described in paragraphs (1) and (2)
    of subsection (b)--
                (1) for calendar years 2010 through 2013, not later than 30
            days after the transfer of amounts from the general fund of the
            Treasury to the Wool Trust Fund under this section; and
                (2) for calendar years 2014 through 2019, not later than
            April 15 of the year of the payment.
        (d) Relationship to Other Law.--The payments authorized under this
    section shall be made through the end of fiscal year 2019
    notwithstanding any lapse of authority under any other provision of law
    to transfer funds to--
                (1) the Wool Apparel Manufacturers Trust Fund established
            by section 4002(c) of the Wool Suit and Textile Trade Extension
            Act of 2004 (Public Law 108-429; 118 Stat. 2600), as amended by
            section 1633(c) of the Miscellaneous Trade and Technical
            Corrections Act of 2006 (Public Law 109-280; 120 Stat. 1166)
            and section 325(b) of the Tax Extenders and Alternative Minimum
            Tax Relief Act of 2008 (division C of Public Law 110-343; 122
            Stat. 3875); or
                (2) the Wool Research, Development, and Promotion Trust
            Fund established by 506 of the Trade and Development Act of
            2000 (7 U.S.C. 7101 note).
        (e) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section for
    each of fiscal years 2014 through 2019.

    SEC. 12212. CITRUS DISEASE RESEARCH AND DEVELOPMENT TRUST FUND.

        (a) Establishment of Trust Fund.--There is established in the
    Treasury of the United States a trust fund to be known as the ``Citrus
    Disease Research and Development Trust Fund'' (in this section referred
    to as the ``Citrus Trust Fund''), consisting of such amounts as may be
    transferred to the Citrus Trust Fund pursuant to the authorization of
    appropriations under subsection (f).
        (b) Distribution of Funds.--From amounts in the Citrus Trust Fund,
    the Secretary may make payments annually beginning in fiscal year 2014
    to the following:
                (1) Entities engaged in scientific research concerning
            diseases and pests, both domestic and invasive, afflicting the
            citrus industry.
                (2) Entities engaged in dissemination and commercialization
            of relevant information, techniques, or technologies, or in
            research projects intended to solve problems caused by citrus
            production diseases and invasive pests.
                (3) The Citrus Disease Research and Development Trust Fund
            Advisory Board, if established under subsection (c).
        (c) Citrus Advisory Board.--
                (1) In general.--From amounts in the Citrus Trust Fund, and
            with the advice and recommendations of citrus producers and
            other entities with an interest in the citrus industry, the
            Secretary may establish a Citrus Disease Research and
            Development Trust Fund Advisory Board (in this subsection
            referred to as the ``Citrus Advisory Board'').
                (2) Membership.--The Citrus Advisory Board, if established
            under paragraph (1), shall consist of 9 members, who shall be
            appointed by the Secretary as follows:
                        (A) Five members who are domestic producers of
                    citrus in Florida.
                        (B) Three members who are domestic producers of
                    citrus in Arizona or California.
                        (C) One member who is a domestic producer of citrus
                    in Texas.
                (3) Regulations.--The Secretary may prescribe such rules
            and regulations as are necessary to carry out this subsection,
            including rules establishing procedures for disqualification
            from service on the Citrus Advisory Board, appointment terms
            for members of the Citrus Advisory Board, compensation for
            those members, and powers and responsibilities of the Citrus
            Advisory Board.
                (4) Limitation on expenditures.--The Secretary shall ensure
            that not more than 5 percent of total expenditures from the
            Citrus Trust Fund in any year are used for the operations of
            the Citrus Advisory Board.
        (d) Secretarial Discretion of Fund Allocation.--Subject to
    subsection (e), in distributing amounts under subsection (b), the
    Secretary shall give strong deference to providing funding for research
    projects exploring the proximity of citrus producers to the effects of
    diseases such as huanglongbing and the quickly evolving nature of
    scientific understanding of the effect of the diseases on citrus
    production.
        (e) Other Funding.--The Secretary should take into account other
    public and private citrus-related research and development projects and
    funding.
        (f) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section for
    each of fiscal years 2014 through 2019.

                Attest:

                                                                 Secretary.
    113th CONGRESS

      1st Session

                                   H.R. 2642

    _______________________________________________________________________

                                   AMENDMENT