[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 923 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 923

 To modernize the conservation title of the Food Security Act of 1985, 
   protect long-term taxpayer investment, increase small and midsize 
  farmer's access to programs, and prioritize modern-day conservation 
 needs through management practices, local engagement, and stewardship.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 9, 2013

 Mr. Udall of New Mexico introduced the following bill; which was read 
  twice and referred to the Committee on Agriculture, Nutrition, and 
                                Forestry

_______________________________________________________________________

                                 A BILL


 
 To modernize the conservation title of the Food Security Act of 1985, 
   protect long-term taxpayer investment, increase small and midsize 
  farmer's access to programs, and prioritize modern-day conservation 
 needs through management practices, local engagement, and stewardship.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 101. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Balancing Food, 
Farm, and the Environment Act of 2013''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 101. Short title; table of contents.
                         TITLE I--CONSERVATION

                        Subtitle A--Definitions

Sec. 1001. Definitions.
             Subtitle B--Highly Erodible Land Conservation

Sec. 1101. Program ineligibility.
Sec. 1102. Exemptions.
Sec. 1103. Development and implementation of highly erodible land 
                            conservation plans and highly erodible land 
                            conservation systems.
Sec. 1104. Notice and investigation of possible compliance 
                            deficiencies.
Sec. 1105. Enforcement; funding for technical assistance.
                    Subtitle C--Wetland Conservation

Sec. 1201. Program ineligibility.
Sec. 1202. Delineation of wetlands; exemptions.
                    Subtitle D--Conservation Reserve

Sec. 1301. Conservation reserve.
Sec. 1302. Contracts.
Sec. 1303. Conservation reserve easement program.
              Subtitle E--Conservation Stewardship Program

Sec. 1401. Definitions.
Sec. 1402. Conservation Stewardship Program.
Sec. 1403. Stewardship contracts.
Sec. 1404. Duties of the Secretary.
          Subtitle F--Environmental Quality Incentives Program

Sec. 1501. Purposes.
Sec. 1502. Definitions.
Sec. 1503. Establishment and administration.
Sec. 1504. Evaluation of Applications.
Sec. 1505. Environmental quality incentives program plan.
Sec. 1506. Duties of the Secretary.
Sec. 1507. Limitation on payments.
           Subtitle G--Conservation Innovation Grant Program

Sec. 1601. Conservation innovation grant program.
                 Subtitle H--Funding and Administration

Sec. 1701. Commodity Credit Corporation.
Sec. 1702. Conservation loan and loan guarantee program.
         Subtitle I--Agricultural Conservation Easement Program

Sec. 1801. Agricultural conservation easement program.
         Subtitle J--Regional Conservation Partnership Program

Sec. 1901. Regional conservation partnership program.
            TITLE II--CROP INSURANCE AND DISASTER ASSISTANCE

Sec. 2001. Ineligibility for Federal crop insurance, noninsured crop 
                            disaster assistance, and certain payments 
                            because of crop production on native sod.
     TITLE III--REPEALS AND TRANSITIONAL PROVISIONS; TECHNICAL AND 
                 CONFORMING AMENDMENTS; EFFECTIVE DATE

Sec. 3001. Repeals and transitional provisions.
Sec. 3002. Technical and conforming amendments.
Sec. 3003. Effective date.

                         TITLE I--CONSERVATION

                        Subtitle A--Definitions

SEC. 1001. DEFINITIONS.

    (a) Conservation System.--Section 1201(a)(4) of the Food Security 
Act of 1985 (16 U.S.C. 3801(a)(4)) is amended to read as follows:
            ``(4) Conservation system.--The term `conservation system' 
        means a combination of conservation measures or practices that 
        are based on local natural resource and environmental 
        conditions and are designed to cost-effectively address one or 
        more priority resource concerns.''.
    (b) Highly Erodible Land.--Section 1201(a)(11)(A)(ii) of the Food 
Security Act of 1985 (16 U.S.C. 3801(a)(11)(A)(ii)) is amended--
            (1) by striking ``excessive'' before ``average annual 
        rate'';
            (2) by striking ``in relation to'' and inserting 
        ``exceeding''; and
            (3) by inserting ``revised'' before ``universal soil 
        loss''.
    (c) Comprehensive Conservation Plan; Conservation Outcome; Highly 
Erodible Land Conservation Plan; Highly Erodible Land Conservation 
System; Nutrient-Impacted Watershed; Priority Resource Concern.--
Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is 
amended by adding at the end the following new paragraphs:
            ``(28) Comprehensive conservation plan.--The term 
        `comprehensive conservation plan' means a document that, 
        subject to the unique purposes of each conservation program--
                    ``(A) identifies priority resource concerns that 
                can be effectively addressed through conservation 
                activities, practices, systems, and management measures 
                on an agricultural operation;
                    ``(B) inventories natural resource and 
                environmental conditions related to priority resource 
                concerns and establishes benchmark data and 
                conservation objectives;
                    ``(C) determines the most cost-effective 
                conservation activities, practices, systems, and 
                management measures to be implemented, improved or 
                maintained to address the designated priority resource 
                concerns;
                    ``(D) provides a schedule for planning, 
                implementing, improving, or maintaining the identified 
                conservation activities, practices, systems, and 
                management measures; and
                    ``(E) contains a description and schedule for on-
                farm activities to evaluate the extent to which the 
                planned conservation activities, practices, systems, 
                and management measures are effectively improving the 
                condition of priority resource concerns.
            ``(29) Conservation outcome.--The term `conservation 
        outcome' means a natural resource or environmental change that 
        is that is correlated with conservation activities.
            ``(30) Highly erodible land conservation plan.--The term 
        `highly erodible land conservation plan' means the document 
        that--
                    ``(A) applies to highly erodible land;
                    ``(B) describes the highly erodible land 
                conservation system applicable to the highly erodible 
                land and describes the decisions of the person with 
                respect to location, land use, tillage systems, and 
                conservation treatment measures and schedule; and
                    ``(C) is approved by the local soil conservation 
                district, in consultation with the local committees 
                established under section 8(b)(5) of the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 
                590h(b)(5)) and the Secretary, or by the Secretary.
            ``(31) Highly erodible land conservation system.--The term 
        `highly erodible land conservation system' means a combination 
        of 1 or more conservation measures or management practices 
        that--
                    ``(A) are based on local resource conditions, 
                available conservation technology, and the standards 
                and guidelines contained in the Natural Resources 
                Conservation Service field office technical guides;
                    ``(B) are designed to achieve, in a cost effective 
                and technically practicable manner, a substantial 
                reduction in soil erosion or a substantial improvement 
                in soil conditions on a field or group of fields 
                containing highly erodible land when compared to the 
                level of erosion or soil conditions that existed before 
                the application of the conservation measures and 
                management practices;
                    ``(C) at a minimum are designed to achieve, within 
                five years of actively applying a highly erodible land 
                conservation plan, a level of erosion not to exceed 
                twice the soil loss tolerance level; and
                    ``(D) effectively treat all ephemeral gullies.
            ``(32) Nutrient-impacted watershed.--The term `nutrient-
        impacted watershed' means a watershed, including its surface 
        and ground waters, any portion of which the Secretary, in 
        consultation with officials from State water quality agencies, 
        the Environmental Protection Agency, and the United States 
        Geological Survey, determines to be degraded, or contributing 
        to the degradation of downstream waters, due to the presence of 
        excess agricultural nutrients.
            ``(33) Priority resource concern.--The term `priority 
        resource concern' means a specific impairment to soil, soil 
        quality, water quality, water quantity, energy, air quality, 
        biodiversity, or fish, wildlife, or pollinator habitat, that, 
        as determined by the Secretary--
                    ``(A) represents a significant environmental, human 
                health, or sustainable agricultural production concern 
                in a State, region, or watershed;
                    ``(B) is likely to be addressed successfully 
                through implementation of conservation systems, 
                practices, or activities by producers on land eligible 
                for enrollment in one or more programs under this 
                title; and
                    ``(C) if successfully addressed will substantially 
                contribute to the achievement of the purposes of the 
                relevant program or programs under this title.''.

             Subtitle B--Highly Erodible Land Conservation

SEC. 1101. PROGRAM INELIGIBILITY.

    Section 1211(a)(1) of the Food Security Act of 1985 (16 U.S.C. 
3811(a)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) by inserting ``or revenue'' after ``price''; 
                and
                    (B) by inserting ``the Food, Conservation, and 
                Energy Act of 2008 (7 U.S.C. 8701 et seq.),'' before 
                ``or any other Act'';
            (2) in subparagraph (C), by striking ``; or'' and inserting 
        a semicolon;
            (3) in subparagraph (D)--
                    (A) by striking ``Consolidated'' before ``Farm 
                Service Agency''; and
                    (B) by striking the semicolon and inserting ``; 
                or''; and
            (4) by inserting after subparagraph (D) the following new 
        subparagraph:
                    ``(E) any portion of the premium paid by the 
                Federal Crop Insurance Corporation for a policy or plan 
                of insurance under the Federal Crop Insurance Act (7 
                U.S.C. 1501 et seq.).''.

SEC. 1102. EXEMPTIONS.

    Section 1212(a) of the Food Security Act of 1985 (16 U.S.C. 
3812(a)) is amended--
            (1) by inserting ``highly erodible land'' before 
        ``conservation plan'' each place it appears;
            (2) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``Soil Conservation 
                        Service'' and inserting ``Natural Resources 
                        Conservation Service''; and
                            (ii) by inserting ``, or premium 
                        subsidies,'' after ``loans, payments, and 
                        benefits'';
                    (B) by amending paragraph (2) to read as follows:
            ``(2) Eligibility based on compliance with highly erodible 
        land conservation plan.--
                    ``(A) In general.--If, as of January 1, 1990, or 2 
                years after the Soil Natural Resources Conservation 
                Service has completed a soil survey for the farm, 
                whichever is later, a person is actively applying a 
                highly erodible land conservation plan, such person 
                shall have until January 1, 1995, to comply with the 
                plan without being subject to program ineligibility.
                    ``(B) Minimization of documentation.--In carrying 
                out this subsection, the Secretary, the Natural 
                Resources Conservation Service, and local soil 
                conservation districts shall minimize the quantity of 
                documentation a person must submit to comply with this 
                paragraph.
                    ``(C) Crop insurance.--If a person first becomes 
                subject to section 1211(a) solely due to a premium 
                payment described in paragraph (1)(E) of such section, 
                the person shall have until January 1 of the fifth year 
                beginning after the date on which the person first 
                became subject to such section to develop and comply 
                with an approved highly erodible land conservation plan 
                for the land on which the person produces an 
                agricultural commodity covered by a policy or plan of 
                insurance supported by such premium payment.''; and
                    (C) in paragraph (3)--
                            (i) by striking ``only'' after ``subtitle D 
                        shall''; and
                            (ii) by striking ``. The person shall not 
                        be required to meet a higher conservation 
                        standard than'' and inserting ``consistent 
                        with'';
            (3) in subsection (b), by inserting ``, or premium 
        subsidies,'' after ``and benefits'';
            (4) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``, or premium subsidies,'' after ``and 
                benefits'';
                    (B) in paragraph (1), by inserting ``highly 
                erodible land'' before ``conservation system'' each 
                place it appears; and
                    (C) in paragraphs (1), (2), and (3), by striking 
                ``Soil Conservation Service'' each place it appears and 
                inserting ``Natural Resources Conservation Service'';
            (5) in subsection (f)--
                    (A) in paragraph (1), by inserting ``, or premium 
                subsidies,'' after ``benefits''; and
                    (B) in paragraph (4)(B), by inserting ``and premium 
                subsidies'' after ``benefits''; and
            (6) in subsection (g) by amending paragraph (2) to read as 
        follows:
            ``(2) concerning conservation technical and financial 
        assistance options and conservation loan options that may be 
        available to such individual to meet the requirements of this 
        section.''.

SEC. 1103. DEVELOPMENT AND IMPLEMENTATION OF HIGHLY ERODIBLE LAND 
              CONSERVATION PLANS AND HIGHLY ERODIBLE LAND CONSERVATION 
              SYSTEMS.

    (a) Highly Erodible Land.--Section 1213 of the Food Security Act of 
1985 (16 U.S.C. 3812a) is amended--
            (1) in the header, by striking ``conservation plans and 
        conservation systems'' and inserting ``highly erodible land 
        conservation plans and highly erodible land conservation 
        systems'';
            (2) by inserting ``highly erodible land'' before 
        ``conservation plan'' each place it appears; and
            (3) by inserting ``highly erodible land'' before 
        ``conservation system'' each place it appears.
    (b) Technical Requirements.--Section 1213(a)(4) of the Food 
Security Act of 1985 (16 U.S.C. 3812a(a)(4)) is amended by inserting 
``, taking into account the assistance described in section 
1212(g)(2)''.
    (c) Certification of Compliance.--Section 1213(d)(2) of the Food 
Security Act of 1985 (16 U.S.C. 3812a(d)(2)) is amended by striking 
``If a person'' and inserting ``Except as necessary to carry out 
section 1216, if a person''.

SEC. 1104. NOTICE AND INVESTIGATION OF POSSIBLE COMPLIANCE 
              DEFICIENCIES.

    Section 1215 of the Food Security Act of 1985 (16 U.S.C. 3814) is 
amended--
            (1) by inserting ``highly erodible land'' before 
        ``conservation plan'' each place it appears;
            (2) in subsection (a), by inserting ``carrying out an 
        inspection under section 1216 or'' before ``providing on-site 
        technical assistance''; and
            (3) in subsection (c), by striking ``may'' and inserting 
        ``shall''.

SEC. 1105. ENFORCEMENT; FUNDING FOR TECHNICAL ASSISTANCE.

    Subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 
3811 et seq.) is amended by adding at the end the following new 
sections:

``SEC. 1216. ENFORCEMENT OF COMPLIANCE WITH HIGHLY ERODIBLE LAND 
              CONSERVATION PLANS.

    ``(a) In General.--The Secretary shall, to the extent possible, 
inspect annually at least five percent of the lands subject to 
compliance with highly erodible land conservation plans and for which 
the owner or operator is receiving a benefit described in section 
1211(a), specifically for the purpose of certifying compliance with the 
highly erodible land conservation plan and eligibility for such 
benefits.
    ``(b) Annual Report to Congress.--Not later than March 1 of each 
year following the year of enactment of this provision, the Secretary 
shall submit to Congress a report detailing the number of acres 
inspected for compliance with highly erodible land conservation plans, 
the number and type of infractions found, and the corrective or 
enforcement actions, including reviews conducted under section 1215(c) 
and graduated penalties imposed under section 1212(f), associated with 
each, including the agency's justifications for each action. The report 
may include other pertinent information regarding compliance and 
enforcement, as determined by the Secretary.

``SEC. 1217. FUNDING FOR TECHNICAL ASSISTANCE.

    ``The Secretary shall make available a portion of the 
administrative and technical assistance funding provided to administer 
the benefits described in section 1211(a) to be used for technical 
assistance, monitoring, and enforcement associated with highly erodible 
land conservation. Funds shall be drawn from each program in proportion 
to the relative funding of each individual program.''.

                    Subtitle C--Wetland Conservation

SEC. 1201. PROGRAM INELIGIBILITY.

    (a) Production on Covered Wetland.--Section 1221(a) of the Food 
Security Act of 1985 (16 U.S.C. 3821(a)) is amended--
            (1) in the matter preceding paragraph (1), by inserting 
        ``after the effective date of the Balancing Food, Farm, and the 
        Environment Act of 2013,'' before ``any person who''; and
            (2) in paragraph (2), by striking ``an amount determined by 
        the Secretary to be proportionate to the severity of the 
        violation'' and inserting ``accordance with subsection (b)''.
    (b) Ineligibility for Certain Loans and Payments.--Section 1221(b) 
of the Food Security Act of 1985 (16 U.S.C. 3821(b)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``the Secretary shall determine which of, and the amount of, 
        the following loans and payments for which the person shall be 
        ineligible'' and inserting ``the person shall be ineligible for 
        the following loans and payments''; and
            (2) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) As to any commodity produced during the crop year by 
        such person--
                    ``(A) contract payments under a production 
                flexibility contract, marketing assistance loans, and 
                any type of price or revenue support or payment made 
                available under the Agricultural Market Transition Act 
                (7 U.S.C. 7201 et seq.), the Commodity Credit 
                Corporation Charter Act (15 U.S.C. 714 et seq.), the 
                Food, Conservation, and Energy Act of 2008 (7 U.S.C. 
                8701 et seq.), or any other Act;
                    ``(B) a farm storage facility loan made under 
                section 4(h) of the Commodity Credit Corporation 
                Charter Act (15 U.S.C. 714b(h));
                    ``(C) a loan made, insured, or guaranteed under the 
                Consolidated Farm and Rural Development Act (7 U.S.C. 
                1921 et seq.) or any other provision of law 
                administered by the Consolidated Farm Service Agency, 
                if the Secretary determines that the proceeds of such 
                loan will be used for a purpose that will contribute to 
                excessive erosion of highly erodible land; or
                    ``(D) any portion of the premium paid by the 
                Federal Crop Insurance Corporation for a policy or plan 
                of insurance under the Federal Crop Insurance Act (7 
                U.S.C. 1501 et seq.).
            ``(2) A payment made under section 4 or 5 of the Commodity 
        Credit Corporation Charter Act (15 U.S.C. 714b or 714c) during 
        such crop year for the storage of an agricultural commodity 
        acquired by the Commodity Credit Corporation.''.

SEC. 1202. DELINEATION OF WETLANDS; EXEMPTIONS.

    (a) Exemptions.--Section 1222(b) of the Food Security Act of 1985 
(16 U.S.C. 3822(b)) is amended--
            (1) in the matter preceding paragraph (1), by inserting ``, 
        or premium subsidies,'' after ``or payments''; and
            (2) by adding at the end the following new paragraph:
            ``(3) In the case of payments that are subject to section 
        1221 for the first time due to the amendments made by section 
        1201(b) of the Balancing Food, Farm, and the Environment Act of 
        2013, a wetland that was converted after April 4, 1996 and 
        before October 1, 2013, on land that is the basis of the 
        payments, provided the person in control of the land is and has 
        been otherwise in compliance with section 1221.''.
    (b) On-Site Inspection Requirement.--Section 1222(c) of the Food 
Security Act of 1985 (16 U.S.C. 3822(c)) is amended by striking ``, or 
benefits'' and inserting ``, benefits, or premium subsidies''.
    (c) Good Faith Exemption.--Section 1222(h)(1) of the Food Security 
Act of 1985 (16 U.S.C. 3822(h)) is amended to read as follows:
            ``(1) Graduated penalties.--If a person is in violation of 
        section 1221 but has acted in good faith and without an intent 
        to violate such section, as determined by the Secretary, the 
        Secretary may, in lieu of applying the ineligibility provisions 
        of section 1221(b), reduce program benefits and premium 
        subsidies described in such section that the producer would 
        otherwise be eligible to receive in a crop year by an amount 
        commensurate with the seriousness of the violation, as 
        determined by the Secretary.''.
    (d) Eligibility for Crop Insurance.--Section 1222 of the Food 
Security Act of 1985 (16 U.S.C. 3822) is amended by adding at the end 
the following new subsection:
    ``(l) Eligibility for Crop Insurance.--In the case of payments that 
are subject to section 1221 for the first time due to the amendments 
made by section 1201(b) of the Balancing Food, Farm, and the 
Environment Act of 2013, no person who plants or produces an 
agricultural commodity on a converted wetland on land that is the basis 
of the payments shall be ineligible under section 1221 for program 
loans or payments, or premium subsidies, unless the person fails to 
mitigate for the loss of wetland values, acreage, and function in 
accordance with subparagraphs (A) through (G) of subsection (f)(2) by 
the end of the 24-month period following the date on which the payments 
became subject to section 1221.''.

                    Subtitle D--Conservation Reserve

SEC. 1301. CONSERVATION RESERVE.

    (a) In General.--Section 1231(a) of the Food Security Act of 1985 
(16 U.S.C. 3831(a)) is amended--
            (1) by striking ``2012'' and inserting ``2018''; and
            (2) by inserting ``or easements'' after ``contracts''.
    (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 Food, 
        Conservation, and Energy Act of 2008'' and inserting 
        ``Balancing Food, Farm, and the Environment Act of 2013'';
            (2) by striking paragraph (2) and inserting the following 
        new paragraph:
            ``(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 or plant 
                populations of significant ecological value, or 
                corridors to facilitate wildlife movement and 
                migration, if the land is retained in its current use 
                or restored to a natural condition;''; and
            (3) in paragraph (4)--
                    (A) in subparagraph (C)--
                            (i) by inserting ``, wildlife habitat 
                        buffers, shallow water areas for wildlife'' 
                        after ``permanent wildlife habitat'';
                            (ii) by inserting ``, wetland buffers, 
                        riparian buffers'' after ``shelterbelts''; and
                            (iii) by striking ``devoted to trees or 
                        shrubs'';
                    (B) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                    (C) by inserting after subparagraph (C) the 
                following new subparagraph:
                    ``(D) the land will be devoted to nutrient-trapping 
                conservation practices approved by the Secretary used 
                in association with a newly created or existing 
                conservation buffer practice;''.
    (c) Planting Status of Certain Land; Maximum Enrollment.--
Subsections (c) and (d) of section 1231 of the Food Security Act of 
1985 (16 U.S.C. 3831) are amended to read as follows:
    ``(c) Planting Status of Certain Land.--For purposes of determining 
the eligibility of land to be placed in the conservation reserve 
established under this subchapter, land shall be considered to be 
planted to an agricultural commodity during a crop year if, during the 
crop year, the land was devoted to a conserving use.
    ``(d) Maximum Enrollment.--
            ``(1) In general.--The Secretary may maintain in the 
        conservation reserve at any 1 time during--
                    ``(A) fiscal year 2014, no more than 26,000,000 
                acres;
                    ``(B) fiscal year 2015, no more than 25,000,000 
                acres;
                    ``(C) fiscal year 2016, no more than 24,000,000 
                acres; and
                    ``(D) fiscal years 2017 and 2018, no more than 
                23,000,000 acres.
            ``(2) Reservation.--The Secretary, to the maximum extent 
        feasible, shall manage the conservation reserve to ensure that 
        on an annual basis not less than 600,000 acres are available 
        for new enrollments of eligible land--
                    ``(A) described in subparagraphs (B) through (F) of 
                subsection (b)(4); and
                    ``(B) enrolled under the special conservation 
                reserve enhancement program authority under section 
                1234(f)(4).
            ``(3) Priority.--The Secretary shall give priority to 
        enrollments under the reservation in paragraph (2) to land 
        located in nutrient-impacted watersheds for which the 
        enrollment would reduce nutrient loadings, as determined by the 
        Secretary.
            ``(4) Consideration.--In applying paragraph (3), the 
        Secretary shall take into consideration the effects that may 
        exist of any drainage infrastructure on the potential to reduce 
        nutrient loadings.''.

SEC. 1302. CONTRACTS.

    (a) Modifications.--Section 1235(c)(1)(B)(iii) of the Food Security 
Act of 1985 (16 U.S.C. 3835(c)(1)(B)(iii)) is amended to read as 
follows:
                            ``(iii) to facilitate a transition of land 
                        subject to the contract from a retired or 
                        retiring owner or operator to a beginning 
                        farmer or rancher, socially disadvantaged 
                        farmer or rancher, or limited resource farmer 
                        or rancher who is or will be actively engaged 
                        in farming or ranching with respect to the land 
                        transferred under this subsection, for the 
                        purpose of returning some or all of the land 
                        into production using sustainable grazing or 
                        crop production methods that meet or exceed the 
                        resource management system quality criteria for 
                        erosion, soil quality, water quality, and fish 
                        and wildlife; or''.
    (b) Transition Option for Certain Farmers or Ranchers.--Section 
1235(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3835(f)(1)) is 
amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``or socially disadvantaged farmer or rancher'' and inserting 
        ``socially disadvantaged farmer or rancher, or limited resource 
        farmer or rancher who is or will be actively engaged in farming 
        or ranching with respect to the land transferred under this 
        subsection'';
            (2) in subparagraph (A)--
                    (A) in clause (i), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in clause (ii), by striking the semicolon and 
                inserting ``; and''; and
                    (C) by adding at the end the following new clauses:
                            ``(iv) provide to the covered farmer or 
                        rancher an opportunity to enroll in the 
                        conservation stewardship program or the 
                        environmental quality incentives program at any 
                        time beginning on the date that is 1 year 
                        before the date of termination of the contract, 
                        including technical and financial assistance in 
                        the development of a comprehensive conservation 
                        plan; and
                            ``(v) if the land transferred under this 
                        subsection remains in grass cover, provide to 
                        the covered farmer or rancher an opportunity to 
                        enroll in a long-term or permanent easement 
                        under the agricultural conservation easement 
                        program;'';
            (3) in subparagraph (B), by inserting ``comprehensive'' 
        before ``conservation plan'';
            (4) by striking subparagraph (D) and redesignating 
        subparagraph (E) as subparagraph (D); and
            (5) in subparagraph (D) (as so redesignated), by striking 
        ``, if the retired or retiring owner or operator is not a 
        family member (as defined in section 1001A(b)(3)(B) of this 
        Act) of the covered farmer or rancher'' and inserting ``except 
        that, in the case of a retired or retiring owner or operator 
        who is a family member (as defined in section 1001) of the 
        covered farmer or rancher, the additional payments shall be 
        made only if title to the land is sold or otherwise transferred 
        to the covered farmer or rancher on termination of the 
        contract''.

SEC. 1303. CONSERVATION RESERVE EASEMENT PROGRAM.

    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.) is amended by adding at 
the end the following new section:

``SEC. 1236. CONSERVATION RESERVE EASEMENT PROGRAM.

    ``(a) Establishment.--The Secretary shall formulate and carry out a 
conservation reserve easement program (hereafter in this section 
referred to as the `easement program') in accordance with this section, 
through the acquisition of permanent easements or easements for the 
maximum term permitted under applicable State law from willing owners 
of eligible farms or ranches in order to ensure the continued long-term 
protection of environmentally sensitive lands, reduction in the 
degradation of water quality, and enhancement of wildlife habitat on 
such farms or ranches through the continued conservation and 
improvement of soil and water resources.
    ``(b) Eligibility; Termination.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary may acquire easements under this section on eligible 
        land placed in the conservation reserve under this subchapter 
        that--
                    ``(A) is determined by the Secretary to be 
                unsuitable for long-term commodity production;
                    ``(B) is an area of critical habitat for wildlife, 
                especially threatened or endangered species; or
                    ``(C) contains other environmentally sensitive 
                areas, as determined by the Secretary, that would 
                prevent a producer from complying with other Federal, 
                State, or local environmental goals if commodities were 
                to be produced on such land.
            ``(2) Ineligible land.--The Secretary may not acquire 
        easements on--
                    ``(A) land that contains timber stands established 
                under this subchapter; or
                    ``(B) pasture land established to trees under this 
                subchapter.
            ``(3) Termination of existing contract.--The Secretary may 
        terminate or modify any existing contract entered into under 
        section 1231(a) if eligible land that is subject to such 
        contract is transferred into the easement program.
    ``(c) Duties of Owners.--
            ``(1) Plan.--
                    ``(A) In general.--In conjunction with the creation 
                of an easement on any lands under this section, the 
                owner of the farm or ranch wherein such lands are 
                located must agree to implement a natural resource 
                conservation management plan in accordance with 
                subparagraph (B) and approved by the Secretary.
                    ``(B) Components.--A natural resource conservation 
                management plan shall--
                            ``(i) set forth the conservation measures 
                        and practices to be carried out by the owner of 
                        the land subject to the easement;
                            ``(ii) set forth the commercial use, if 
                        any, to be permitted on such land during the 
                        term of the easement; and
                            ``(iii) provide for the permanent 
                        retirement of any existing cropland base and 
                        allotment history for such land under any 
                        program administered by the Secretary.
            ``(2) Agreement.--In return for the creation of an easement 
        on any lands under this section, the owner of the farm or ranch 
        wherein such lands are located must agree to the following:
                    ``(A) To the creation and recordation of an 
                appropriate deed restriction, in accordance with 
                applicable State law, to reflect the easement agreed to 
                under this section with respect to such lands.
                    ``(B) To provide a written statement of consent to 
                such easement signed by those holding a security 
                interest in the land.
                    ``(C) To comply with such additional provisions as 
                the Secretary determines are desirable and are included 
                in the easement to carry out this section or to 
                facilitate the practical administration thereof.
                    ``(D) To limit the production of any agricultural 
                commodity on such lands only to production for the 
                benefit of wildlife.
                    ``(E) Not to conduct any harvesting or grazing, nor 
                otherwise make commercial use of the forage, on land 
                that is subject to the easement, unless specifically 
                provided for in the easement or related agreement.
                    ``(F) Not to adopt any other practice that would 
                tend to defeat the purposes of this chapter, as 
                determined by the Secretary.
            ``(3) Violation.--On the violation of the terms or 
        conditions of the easement or related agreement entered into 
        under this section, 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 this section, together 
        with interest thereon as determined appropriate by the 
        Secretary.
    ``(d) Duties of the Secretary.--In return for the granting of an 
easement by an owner under this section, the Secretary shall--
            ``(1) share the cost of carrying out the establishment of 
        conservation measures and practices set forth in the plan 
        described in section 1232(a)(1) for which the Secretary 
        determines that cost sharing is appropriate and in the public 
        interest;
            ``(2) pay for a period not to exceed 10 years annual 
        easement payments in the aggregate not to exceed the lesser 
        of--
                    ``(A) $250,000; or
                    ``(B) the difference in the value of the land with 
                and without the easement;
            ``(3) provide necessary technical assistance to assist 
        owners in complying with the terms and conditions of the 
        easement and the comprehensive conservation plan; and
            ``(4) permit the land to be used for wildlife activities, 
        including hunting and fishing, if such use is permitted by the 
        owner.
    ``(e) Time of Payment.--The Secretary shall provide payment for 
obligations incurred by the Secretary under this section--
            ``(1) with respect to any cost sharing obligation, as soon 
        as possible after the obligation is incurred; and
            ``(2) with respect to any annual easement payment 
        obligation, as soon as possible after October 1 of each year.
    ``(f) Cost Sharing Payments.--In making cost sharing payments to 
owners under this section, the Secretary may pay up to 100 percent of 
the cost of establishing conservation measures and practices pursuant 
to this section.
    ``(g) Easement Payments.--
            ``(1) Determination of amount.--The Secretary shall 
        determine the amount payable to owners in the form of easement 
        payments under this section, and in making such determination 
        may consider, among other things, the amount necessary to 
        encourage owners to participate in the easement program.
            ``(2) Acceptability of offers.--In determining the 
        acceptability of easement offers, the Secretary may take into 
        consideration--
                    ``(A) the extent to which the purposes of the 
                easement program would be achieved on the land;
                    ``(B) the productivity of the land; and
                    ``(C) the on-farm and off-farm environmental 
                threats if the land is used for the production of 
                agricultural commodities.
            ``(3) Priority.--The Secretary shall prioritize offers that 
        maximize the environmental goals of the easement program, 
        particularly regarding improvements to water quality, wildlife 
        habitat and corridors, and water conservation. Priority may 
        also be given to easements that are part of a cooperative 
        conservation effort to address priority resource concerns on a 
        regional or watershed scale, or that are adjacent to existing 
        conservation lands.
    ``(h) Payments to Others.--If an owner who is entitled to a payment 
under this section dies, becomes incompetent, is otherwise unable to 
receive such payment, or is succeeded by another person 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.
    ``(i) Modification.--The Secretary may modify an easement acquired 
from, or a related agreement with, an owner under this section if--
            ``(1) the current owner of the land agrees to such 
        modification; and
            ``(2) the Secretary determines that such modification is 
        desirable--
                    ``(A) to carry out this section;
                    ``(B) to facilitate the practical administration of 
                this section; or
                    ``(C) to achieve such other goals as the Secretary 
                determines are appropriate and consistent with this 
                section.
    ``(j) Termination.--The Secretary may terminate an easement created 
with an owner under this section if--
            ``(1) the current owner of the land agrees to such 
        termination; and
            ``(2) the Secretary determines that such termination would 
        be in the public interest.''.

              Subtitle E--Conservation Stewardship Program

SEC. 1401. DEFINITIONS.

    (a) Conservation Activities.--
            (1) In general.--Section 1238D(1)(A) of the Food Security 
        Act of 1985 (16 U.S.C. 3838d(1)(A)) is amended by striking ``a 
        resource concern'' and inserting ``one or more resource 
        concerns''.
            (2) Inclusions.--Section 1238D(1)(B) of the Food Security 
        Act of 1985 (16 U.S.C. 3838d(1)(B)) is amended to read as 
        follows:
                    ``(B) Inclusions.--The term `conservation 
                activities' includes--
                            ``(i) vegetative measures and land 
                        management measures, including integrated pest, 
                        nutrient, crop residue, and managed rotational 
                        grazing management measures, as determined by 
                        the Secretary;
                            ``(ii) structural measures that are 
                        integrated with and essential to the successful 
                        implementation of such vegetative and land 
                        management measures;
                            ``(iii) planning needed to address a 
                        resource concern; and
                            ``(iv) development of a comprehensive 
                        conservation plan.''.
    (b) Conservation Measurement Tools.--Section 1238D(2) of the Food 
Security Act of 1985 (16 U.S.C. 3838d(2)) is amended by inserting 
``natural resource and'' before ``environmental benefit''.
    (c) Priority Resource Concern.--Section 1238D of the Food Security 
Act of 1985 (16 U.S.C. 3838d) is amended by striking paragraphs (4) and 
(6) and redesignating paragraphs (5) and (7) as paragraphs (4) and (5), 
respectively.
    (d) Stewardship Threshold.--Section 1238D(5) of the Food Security 
Act of 1985 (as so redesignated) is amended to read as follows:
            ``(5) Stewardship threshold.--The term `stewardship 
        threshold' means the level of natural resource conservation and 
        environmental management required to address and improve upon a 
        priority resource concern, as determined by the Secretary 
        using--
                    ``(A) conservation measurement tools;
                    ``(B) the resource management system quality 
                criteria for the particular priority resource concerns;
                    ``(C) data from past and current program 
                enrollments; and
                    ``(D) other similar means to measure improvement 
                and conservation of the priority resource concern.''.

SEC. 1402. CONSERVATION STEWARDSHIP PROGRAM.

    (a) Establishment and Purpose.--Section 1238E(a) of the Food 
Security Act of 1985 (16 U.S.C. 3838e(a)) is amended in the matter 
preceding paragraph (1)--
            (1) by striking ``2009 through 2014'' and inserting ``2013 
        through 2018''; and
            (2) by striking ``resource concerns'' and inserting 
        ``priority resource concerns and improve and conserve the 
        quality and condition of natural resources''.
    (b) Eligible Land.--Section 1238E(b) of the Food Security Act of 
1985 (16 U.S.C. 3838e(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (D), by inserting ``priority'' 
                before ``resource concerns''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(E) Nonindustrial private forest land.''; and
            (2) by striking paragraph (2) and redesignating paragraph 
        (3) as paragraph (2).
    (c) Exclusions.--
            (1) Land enrolled in other conservation programs.--Section 
        1238E(c)(1) of the Food Security Act of 1985 (16 U.S.C. 
        3838e(c)(1)) is amended--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``be eligible for enrollment in the program'' 
                and inserting ``eligible for enrollment in the program 
                and shall not be considered part of the agricultural 
                operation of the producer for purposes of the 
                program''; and
                    (B) by amending subparagraph (A) to read as 
                follows:
                    ``(A) Land enrolled in the conservation reserve 
                program, unless--
                            ``(i) the applicant's conservation reserve 
                        program contract will expire at the end of the 
                        fiscal year in which the applicant applies for 
                        enrollment in the program; and
                            ``(ii) conservation reserve program 
                        payments for land enrolled in the program cease 
                        before the first conservation stewardship 
                        program payment is made to the applicant.''.
            (2) Transition.--Section 1238E(c) of the Food Security Act 
        of 1985 (16 U.S.C. 3838e(c)) is amended by redesignating 
        paragraph (2) as paragraph (3) and inserting after paragraph 
        (1) the following new paragraph:
            ``(2) Transition.--The Secretary may permit land described 
        in paragraph (1)(A) to be prepared for production as a grazing 
        operation prior to the expiration of the conservation reserve 
        program contract when a conservation stewardship contract has 
        been approved, if no production takes place until after the 
        expiration of the conservation reserve program contract.''.
            (3) Conversion to cropland.--Section 1238E(c)(2) of the 
        Food Security Act of 1985 (16 U.S.C. 3838e(c)(2)) is amended by 
        striking ``the date of enactment of the Food, Conservation, and 
        Energy Act of 2008'' and inserting ``October 1, 2013''.

SEC. 1403. STEWARDSHIP CONTRACTS.

    (a) Submission of Contract Offers.--Section 1238F(a) of the Food 
Security Act of 1985 (16 U.S.C. 3838f(a)) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``or exceeding'' before ``the 
                stewardship threshold''; and
                    (B) by striking ``one resource concern'' and 
                inserting ``2 priority resource concerns''; and
            (2) by amending paragraph (2) to read as follows:
            ``(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;
                    ``(B) improving, maintaining, and managing 
                conservation activities on the agricultural operation 
                of the producer in a manner that increases or extends 
                the conservation benefits in place at the time the 
                contract offer is accepted by the Secretary; and
                    ``(C) if applicable, describing the resource-
                conserving crop rotation, managed intensive rotation 
                grazing system, or transition to organic crop or 
                livestock systems the producer agrees to improve, 
                maintain, and manage, or install and adopt, during the 
                term of the conservation stewardship contract.''.
    (b) Evaluation of Contract Offers.--Section 1238F(b)(1) of the Food 
Security Act of 1985 (16 U.S.C. 3838f(b)(1)) is amended to read as 
follows:
            ``(1) Ranking of applications.--In evaluating contract 
        offers made by producers to enter into contracts under the 
        program, the Secretary shall rank applications based on--
                    ``(A) the level of conservation and environmental 
                benefits resulting from all conservation activities to 
                be covered by the contract, including conservation 
                activities proposed to be commenced as a result of the 
                contract, on all applicable priority resource concerns, 
                based to the maximum extent practicable on conservation 
                measurement tools; and
                    ``(B) in the event of a tie in ranking scores 
                between two or more applications, the extent to which 
                the actual and anticipated environmental benefits from 
                the contract are provided at the least cost.''.
    (c) Entering Into Contracts.--Section 1238F(c) of the Food Security 
Act of 1985 (16 U.S.C. 3838f(c)) is amended to read as follows:
    ``(c) Entering Into Contracts.--
            ``(1) In general.--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 land to be covered by the 
        contract.
            ``(2) Financial obligation.--Consistent with section 
        1238G(e)(4), a contract entered into under paragraph (1) shall 
        not create an obligation for financial assistance until the 
        first October 1 after the contract is entered into.''.
    (d) Contract Renewal.--Section 1238F(e) of the Food Security Act of 
1985 (16 U.S.C. 3838f(e)) is amended to read as follows:
    ``(e) Contract Renewal.--At the end of a conservation stewardship 
contract of a producer, the Secretary may allow the producer to renew 
the contract for an additional five-year period if the producer--
            ``(1) demonstrates compliance with the terms of the 
        existing contract;
            ``(2) agrees to adopt new or improved conservation 
        activities, as determined by the Secretary; and
            ``(3) has met or exceeded, or agrees to meet or exceed, the 
        stewardship threshold for all priority resource concerns 
        identified for the region or area in which the land that is 
        subject to the contract is located.''.
    (e) Modification.--Section 1238F(f) of the Food Security Act of 
1985 (16 U.S.C. 3838f(f)) is amended to read as follows:
    ``(f) Modification.--
            ``(1) In general.--The Secretary may allow a producer to 
        modify a stewardship contract if the Secretary determines that 
        the modification is consistent with achieving the purposes of 
        the program.
            ``(2) Changes in control of land.--The Secretary shall 
        allow a producer to add or subtract from the contract land over 
        which the producer loses or gains control, respectively, during 
        the contract period if such modification is consistent with 
        achieving the purposes of the program and if the Secretary 
        determines that the resulting natural resource and 
        environmental benefits would equal or exceed the original 
        contract.''.
    (f) Coordination With Organic Certification.--Section 1238F(h) of 
the Food Security Act of 1985 (16 U.S.C. 3838f(h)) is amended by 
inserting ``or maintain'' after ``may initiate''.
    (g) On-Farm Research and Demonstration or Pilot Testing.--Section 
1238F of the Food Security Act of 1985 (16 U.S.C. 3838f) is amended by 
striking subsection (i).

SEC. 1404. DUTIES OF THE SECRETARY.

    (a) In General.--Section 1238G(a) of the Food Security Act of 1985 
(16 U.S.C. 3838g(a)) is amended to read as follows:
    ``(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, one 
        of which shall occur in the first third of each fiscal year;
            ``(2) identify priority resource concerns in a particular 
        watershed or other appropriate region or area within a State;
            ``(3) for any region or area that includes any part of a 
        nutrient-impacted watershed (as determined by the Secretary), 
        ensure that one of the priority resource concerns identified 
        under paragraph (2) is water pollution caused by excess 
        nutrient loads;
            ``(4) develop reliable conservation measurement tools for 
        purposes of carrying out the program; and
            ``(5) ensure that conservation measurement tools are 
        transparent and available to producers by--
                    ``(A) making interactive, user-friendly 
                conservation measurement tools publically available 
                online;
                    ``(B) making conservation activity natural resource 
                and environmental benefit scores available in an easy 
                to understand format for study both before and during 
                application; and
                    ``(C) taking other similar steps, as determined by 
                the Secretary.''.
    (b) Allocation to States.--Section 1238G(b) of the Food Security 
Act of 1985 (16 U.S.C. 3838g(b)) is amended--
            (1) in paragraph (1), by striking ``primarily''; and
            (2) in paragraph (2), in the matter preceding subparagraph 
        (A), by striking ``also''.
    (c) Acreage Enrollment Limitation.--Section 1238G(d) of the Food 
Security Act of 1985 (16 U.S.C. 3838g(d)) is amended--
            (1) in paragraph (1), by striking ``12,769,000'' and 
        inserting ``10,000,000''; and
            (2) in paragraph (2), by striking ``$18'' and inserting 
        ``$23''.
    (d) Conservation Stewardship Payments.--
            (1) Availability of payments.--Section 1238G(e)(1)(B) of 
        the Food Security Act of 1985 (16 U.S.C. 3838g(e)(1)(B)) is 
        amended by striking ``at the operation of the producer'' and 
        inserting ``on the agricultural operation of the producer''.
            (2) Payment amount.--Section 1238G(e)(2) of the Food 
        Security Act of 1985 (16 U.S.C. 3838g(e)(2)) is amended to read 
        as follows:
            ``(2) Payment amount.--
                    ``(A) In general.--The amount of the conservation 
                stewardship payment shall be determined by the 
                Secretary and based, to the maximum extent practicable, 
                on the following factors:
                            ``(i) Costs incurred by the producer 
                        associated with planning, design, materials, 
                        installation, labor, management, maintenance, 
                        or training.
                            ``(ii) Income forgone by the producer.
                            ``(iii) Expected natural resource and 
                        environmental benefits resulting from existing 
                        and proposed conservation treatment, based to 
                        the maximum extent possible on conservation 
                        measurement tools.
                    ``(B) Payment differential.--In applying 
                subparagraph (A), the Secretary shall, where 
                applicable, differentiate between--
                            ``(i) improving, maintaining, and managing 
                        conservation activities in place on the 
                        agricultural operation at the time the contract 
                        offer is accepted by the Secretary; and
                            ``(ii) installing and adopting additional 
                        conservation activities on the agricultural 
                        operation.''.
            (3) Minimum payment.--Section 1238G(e) of the Food Security 
        Act of 1985 (16 U.S.C. 3838g(e)) is amended by adding at the 
        end the following new paragraph:
            ``(5) Minimum payment.--
                    ``(A) In general.--A payment to a producer under 
                this subsection shall be not less than $1,500 per year.
                    ``(B) Comprehensive contract.--If a contract 
                requires a comprehensive conservation plan the 
                implementation of which will, by the end of the 
                contract term, meet or exceed the stewardship threshold 
                for all priority resource concerns, the minimum payment 
                shall be not less than $3,000.''.
    (e) Supplemental Payments for Resource-Conserving Crop Rotations.--
Section 1238G(f) of the Food Security Act of 1985 (16 U.S.C. 3838g(f)) 
is amended to read as follows:
    ``(f) Supplemental Payments for Resource-Conserving Crop Rotations, 
Managed Intensive Rotational Grazing, and Transition to Organic Crop or 
Livestock Systems.--
            ``(1) Availability of payments.--The Secretary shall 
        provide additional payments to producers that, in participating 
        in the program, agree to--
                    ``(A) improve, maintain, and manage, or adopt and 
                maintain--
                            ``(i) resource-conserving crop rotations; 
                        or
                            ``(ii) managed intensive rotational 
                        grazing; or
                    ``(B) transition to organic crop or livestock 
                systems.
            ``(2) 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 water quality;
                    ``(D) improves soil fertility and tilth;
                    ``(E) interrupts pest cycles; and
                    ``(F) in applicable areas, reduces depletion of 
                soil moisture or otherwise reduces the need for 
                irrigation.
            ``(3) Managed intensive rotational grazing.--In this 
        subsection, the term `managed intensive rotational grazing' 
        means a system in which animals are regularly and 
        systematically moved to fresh pasture in such a way as to--
                    ``(A) maximize the quantity and quality of forage 
                growth;
                    ``(B) improve manure distribution and nutrient 
                cycling;
                    ``(C) increase carbon sequestration from greater 
                forage harvest;
                    ``(D) improve the quantity and quality of cover for 
                wildlife;
                    ``(E) provide permanent cover to protect the soil 
                from erosion; and
                    ``(F) improve water quality.
            ``(4) Transition to organic crop or livestock systems.--In 
        this subsection, the term `transition to organic crop or 
        livestock systems' means adoption of conservation activities 
        for certified organic production on land or for herds not 
        previously certified organic that meet all the requirements of 
        the program and that are consistent with the regulations 
        promulgated under the Organic Foods Production Act of 1990 (7 
        U.S.C. 6501 et seq.).''.
    (f) Payment Limitations.--Section 1238G(g) of the Food Security Act 
of 1985 (16 U.S.C. 3838g(g)) is amended to read as follows:
    ``(g) Payment Limitations.--
            ``(1) In general.--A person or legal entity may not 
        receive, directly or indirectly, payments under this subchapter 
        that, in the aggregate, exceed $200,000 for all contracts 
        entered into during any 5-year period, excluding funding 
        arrangements with federally recognized Indian tribes or Alaska 
        Native corporations, regardless of the number of contracts 
        entered into under the program by the person or entity.
            ``(2) Acreage.--Any acres enrolled in the program that will 
        not receive payments due to the limitation in paragraph (1) 
        shall not be counted toward the acreage limitation in 
        subsection (d)(1).''.
    (g) Regulations.--Section 1238G(h) of the Food Security Act of 1985 
(16 U.S.C. 3838g(h)) is amended by redesignating paragraphs (1) and (2) 
as paragraphs (2) and (3), respectively, and by inserting before 
paragraph (2) (as so redesignated) the following new paragraph:
            ``(1) require participants in the program to be actively 
        engaged in farming or ranching;''.
    (h) Data.--Section 1238G(i) of the Food Security Act of 1985 (16 
U.S.C. 3838g(i)) is amended to read as follows:
    ``(i) Data.--The Secretary shall maintain detailed and segmented 
data on contracts and payments under the program to allow, at a 
minimum, with respect to each contract--
            ``(1) quantification of the type and extent of conservation 
        activities for which payments were made;
            ``(2) quantification of the amount of payments made for--
                    ``(A) the installation and adoption of additional 
                conservation activities and improvements to 
                conservation activities in place on the operation of a 
                producer at the time the conservation stewardship offer 
                is accepted by the Secretary; and
                    ``(B) the maintenance of existing conservation 
                activities; and
            ``(3) identification of the watershed and county in which 
        the agricultural operation receiving payments is located.''.
    (i) Payments for Conservation Activities Related to Organic 
Production.--Section 1238G of the Food Security Act of 1985 (16 U.S.C. 
3838g) is amended by adding at the end the following new subsection:
    ``(g) Payments for Conservation Activities Related to Organic 
Production.--
            ``(1) In general.--The Secretary shall provide payments for 
        conservation activities related to organic production.
            ``(2) Eligibility requirements.--As a condition for 
        receiving payments under the program, a producer shall agree to 
        develop and implement conservation activities for certified 
        organic production that are consistent with the regulations 
        promulgated under the Organic Foods Production Act of 1990 (7 
        U.S.C. 6501 et seq.) and the purposes of the program.
            ``(3) Planning.--
                    ``(A) In general.--The Secretary shall provide 
                planning assistance to producers transitioning to 
                certified organic production consistent with the 
                requirements of the Organic Foods Production Act of 
                1990 (7 U.S.C. 6501 et seq.) and the purposes of this 
                subchapter.
                    ``(B) Avoidance of duplication.--The Secretary 
                shall, to the maximum extent practicable, eliminate 
                duplication of planning activities for a producer 
                participating in a contract under this subchapter and 
                initiating or maintaining organic certification 
                consistent with the Organic Foods Production Act of 
                1990 (7 U.S.C. 6501 et seq.).''.
    (j) Comprehensive Conservation Planning.--Section 1238G of the Food 
Security Act of 1985 (16 U.S.C. 3838g), as amended by subsection (i), 
is further amended by adding at the end the following new subsection:
    ``(h) Comprehensive Conservation Planning.--The Secretary shall 
provide technical and financial assistance to producers under the 
program to develop a comprehensive conservation plan for the 
agricultural operation of the producer.''.

          Subtitle F--Environmental Quality Incentives Program

SEC. 1501. PURPOSES.

    Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is 
amended to read as follows:

``SEC. 1240. PURPOSES.

    ``The purpose of the environmental quality incentives program 
established by this chapter is to assist producers in implementing 
conservation systems, practices, and activities on their operations in 
order to--
            ``(1) improve water quality, with special emphasis on 
        reducing nutrient pollution and protecting sources of drinking 
        water;
            ``(2) avoid, to the maximum extent practicable, the need 
        for resource and regulatory programs by assisting producers in 
        protecting soil, water, air, and related natural resources and 
        meeting environmental quality criteria established by Federal, 
        State, tribal, and local agencies;
            ``(3) conserve ground and surface water to sustain or 
        improve in-stream flows;
            ``(4) enhance soil quality;
            ``(5) control invasive species;
            ``(6) enhance critical aquatic and terrestrial wildlife 
        habitat for at-risk species;
            ``(7) reduce the amount and toxicity of pesticides and 
        other agricultural chemicals found on food and in water or the 
        air;
            ``(8) reduce the nontherapeutic use of medically important 
        antibiotics in food-producing animals in order to preserve the 
        effectiveness of antibiotics used in the treatment of human and 
        animal disease;
            ``(9) help producers adapt to a changing and unpredictable 
        climate and increase resiliency to climate change impacts, 
        including rising temperatures and extreme weather events, while 
        reducing greenhouse gas emissions; and
            ``(10) address additional priority resource concerns, as 
        determined by the Secretary.''.

SEC. 1502. DEFINITIONS.

    (a) Organic System Plan.--Section 1240A of the Food Security Act of 
1985 (16 U.S.C. 3839aa-1) is amended by striking paragraph (3) and 
redesignating paragraphs (4) through (6) as paragraphs (3) through (5), 
respectively.
    (b) Practice.--Section 1240A of the Food Security Act of 1985 (16 
U.S.C. 3839aa-1) is further amended in paragraph (4)(B) (as 
redesignated by subsection (a))--
            (1) in clause (i), by striking ``; and'' and inserting a 
        semicolon;
            (2) by redesignating clause (ii) as clause (iii); and
            (3) by inserting after clause (i) the following new clause:
                            ``(ii) comprehensive conservation planning; 
                        and''.

SEC. 1503. ESTABLISHMENT AND ADMINISTRATION.

    (a) Establishment.--Section 1240B(a) of the Food Security Act of 
1985 (16 U.S.C. 3839aa-2(a)) is amended by striking ``2002 through 
2014'' and inserting ``2013 through 2018''.
    (b) Term.--Section 1240B(b)(2)(B) of the Food Security Act of 1985 
(16 U.S.C. 3839aa-2(b)(2)(B)) is amended by striking ``10 years'' and 
inserting ``5 years''.
    (c) Priority.--Section 1240B(c) of the Food Security Act of 1985 
(16 U.S.C. 3839aa-2(c)) is amended to read as follows:
    ``(c) Priority.--If the Secretary determines that the environmental 
values of two or more applications for payments are comparable, the 
Secretary shall assign a higher priority to a program application which 
will achieve the environment and conservation values using practices 
and systems the assessed cost of which is lower.''.
    (d) Payments.--
            (1) Increased payments for certain practices.--Section 
        1240B(d)(3) of the Food Security Act of 1985 (16 U.S.C. 3839aa-
        2(d)(3)) is amended to read as follows:
            ``(3) Increased payments for certain practices.--The 
        Secretary shall provide supplemental payments and enhanced 
        technical assistance to producers implementing land management 
        and vegetative practices at a level that, as determined by the 
        Secretary, results in highly cost-effective treatment of 
        priority resource concerns, including--
                    ``(A) residue and tillage management;
                    ``(B) contour farming;
                    ``(C) cover cropping;
                    ``(D) integrated pest management;
                    ``(E) nutrient management;
                    ``(F) stream corridor improvement;
                    ``(G) invasive plant species control;
                    ``(H) contour buffer strips;
                    ``(I) riparian herbaceous and forest buffers;
                    ``(J) filterstrips;
                    ``(K) stream habitat improvement and management;
                    ``(L) grassed waterways;
                    ``(M) wetland restoration and enhancement;
                    ``(N) pollinator habitat; or
                    ``(O) conservation crop rotation.''.
            (2) Increased payments for certain producers.--Section 
        1240B(d)(4)(B) of the Food Security Act of 1985 (16 U.S.C. 
        3839aa-2(d)(4)(B)) is amended by striking ``30 percent'' and 
        inserting ``50 percent''.
            (3) Limitation on payments for certain practices.--Section 
        1240B(d) of the Food Security Act of 1985 (16 U.S.C. 3839aa-
        2(d)) is amended by adding at the end the following new 
        paragraph:
            ``(7) Limitation on payments for certain practices.--A 
        producer who owns or operates a large confined animal feeding 
        operation (as defined by the Secretary) shall not be eligible 
        for payments under this chapter to construct an animal waste 
        management facility or any associated waste transport or 
        transfer device.''.
    (e) Allocation of Funding.--Section 1240B(f) of the Food Security 
Act of 1985 (16 U.S.C. 3839aa-2(f)) is amended to read as follows:
    ``(f) Allocation of Funding.--Of the funds made available for 
payments for each of fiscal years 2014 through 2018--
            ``(1) 50 percent shall be targeted at practices relating to 
        livestock production; and
            ``(2) not less than 10 percent shall be targeted at 
        practices relating to improvement of fish and wildlife 
        habitat.''.
    (f) Water Conservation or Irrigation Efficiency Practice.--
            (1) Availability of payments.--Section 1240B(h)(1) of the 
        Food Security Act of 1985 (16 U.S.C. 3839aa-2(h)(1)) is amended 
        to read as follows:
            ``(1) Availability of payments.--The Secretary may provide 
        payments under this subsection to a producer for a water 
        conservation or irrigation practice that promotes ground and 
        surface water conservation on the agricultural operation of the 
        producer by--
                    ``(A) improvements to irrigation systems;
                    ``(B) enhancement of irrigation efficiencies;
                    ``(C) conversion of the agricultural operation to--
                            ``(i) the production of less water-
                        intensive agricultural commodities; or
                            ``(ii) dryland farming;
                    ``(D) improvement of the storage of water through 
                measures such as water banking and groundwater 
                recharge;
                    ``(E) enhancement of fish and wildlife habitat 
                associated with irrigation systems including pivot 
                corners and areas with irregular boundaries; or
                    ``(F) establishment of other measures, as 
                determined by the Secretary, that improve groundwater 
                and surface water conservation in agricultural 
                operations.''.
            (2) Priority.--Section 1240B(h)(2) of the Food Security Act 
        of 1985 (16 U.S.C. 3839aa-2(h)(2)) is amended--
                    (A) in subparagraph (A), by striking ``; or'' and 
                inserting ``; and''; and
                    (B) by amending subparagraph (B) to read as 
                follows:
                    ``(B) any associated water savings remain in the 
                original source of such water for the useful life of 
                the practice.''.
            (3) Duty of producers.--Section 1240B(h) of the Food 
        Security Act of 1985 (16 U.S.C. 3839aa-2(h)) is amended by 
        adding at the end the following new paragraph:
            ``(3) Duty of producers.--The Secretary may not provide 
        payments to a producer for a water conservation or irrigation 
        practice under this chapter unless the producer agrees not to 
        use any associated water savings to bring new land, other than 
        incidental land needed for efficient operations, under 
        irrigated production, unless the producer is participating in a 
        watershed-wide project that will effectively conserve water, as 
        determined by the Secretary.''.
    (g) Payments for Conservation Practices Related to Organic 
Production.--
            (1) Payments authorized.--Section 1240B(i)(1) of the Food 
        Security Act of 1985 (16 U.S.C. 3839aa-2(i)(1)) is amended by 
        striking ``subsection'' and inserting ``chapter''.
            (2) Eligibility requirements.--Section 1240B(i)(2) of the 
        Food Security Act of 1985 (16 U.S.C. 3839aa-2(i)(2)) is amended 
        to read as follows:
            ``(2) Eligibility requirements.--As a condition for 
        receiving payments under this chapter, a producer shall agree 
        to develop and implement conservation practices for certified 
        organic production that are consistent with the regulations 
        promulgated under the Organic Foods Production Act of 1990 (7 
        U.S.C. 6501 et seq.) and the purposes of this chapter.''.
            (3) Payment limitations; coordination with organic 
        certification; planning.--Section 1240B(i) of the Food Security 
        Act of 1985 (16 U.S.C. 3839aa-2(i)) is amended--
                    (A) by striking paragraph (3) and redesignating 
                paragraphs (4) and (5) as paragraphs (5) and (6), 
                respectively; and
                    (B) by inserting after paragraph (2) the following 
                new paragraphs:
            ``(3) 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 this chapter.
            ``(4) Planning.--
                    ``(A) In general.--The Secretary shall provide 
                planning assistance to producers transitioning to 
                certified organic production consistent with the 
                requirements of the Organic Foods Production Act of 
                1990 (7 U.S.C. 6501 et seq.) and the purposes of this 
                chapter.
                    ``(B) Avoidance of duplication.--The Secretary 
                shall, to the maximum extent practicable, eliminate 
                duplication of planning activities for a producer 
                participating in a contract under this chapter and 
                initiating or maintaining organic certification 
                consistent with the Organic Foods Production Act of 
                1990 (7 U.S.C. 6501 et seq.).''.
    (h) Payments for Conservation Practices Related to Antibiotic 
Use.--Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-
2) is amended by adding at the end the following new subsection:
    ``(j) Payments for Conservation Practices Related to Antibiotic 
Use.--
            ``(1) Payments authorized.--The Secretary shall provide 
        payments under this chapter to livestock producers for three 
        years, to assist in a transition to modified animal management 
        and production systems, for practices leading to the reduction 
        in the need for antibiotics, including modification of systems 
        and spaces to--
                    ``(A) improve sanitation;
                    ``(B) improve ventilation; or
                    ``(C) support the implementation of improved animal 
                management techniques at the operation.
            ``(2) Duty of producer.--The Secretary shall not make 
        payments under this chapter for practices related to antibiotic 
        use unless the producer agrees to provide information to the 
        Secretary documenting the resulting reduction in antibiotic use 
        in the operation of the producer.''.
    (i) Comprehensive Conservation Planning.--Section 1240B of the Food 
Security Act of 1985 (16 U.S.C. 3839aa-2), as amended by subsection 
(g), is further amended by adding at the end the following new 
subsection:
    ``(k) Comprehensive Conservation Planning.--The Secretary shall 
provide technical and financial assistance to producers under the 
program to develop a comprehensive conservation plan for the 
agricultural operation of the producer.''.

SEC. 1504. EVALUATION OF APPLICATIONS.

    (a) Evaluation Criteria.--Section 1240C(a) of the Food Security Act 
of 1985 (16 U.S.C. 3839aa-3(a)) is amended by striking ``, national, 
State, and local conservation priorities'' and inserting ``priority 
resource concerns identified under subsection (d)''.
    (b) Prioritization 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 ``achieving the 
        anticipated environmental benefits of the project'' and 
        inserting ``priority resource concerns identified under 
        subsection (d)''; and
            (2) in paragraph (2), by striking ``designated resource 
        concern or resource concerns'' and inserting ``priority 
        resource concerns identified under subsection (d), including, 
        in the case of applications from nutrient-impacted watersheds, 
        the degree to which nutrient loadings would be reduced as a 
        result of the proposed project''.
    (c) Grouping of Applications.--Section 1240C(c) of the Food 
Security Act of 1985 (16 U.S.C. 3839aa-3(c)) is amended by striking 
``for evaluation purposes or otherwise evaluate applications relative 
to other applications for similar farming operations'' and inserting 
``proposing to address the same priority resource concerns for 
evaluation purposes''.
    (d) Priority Resource Concerns.--Section 1240C of the Food Security 
Act of 1985 (16 U.S.C. 3839aa-3) is amended by adding at the end the 
following new subsection:
    ``(d) Priority Resource Concerns.--For the purposes of this 
section, the Secretary shall identify priority resource concerns in a 
particular watershed or other appropriate region or area within a 
State.''.

SEC. 1505. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

    (a) Plan of Operations.--Section 1240E(a) of the Food Security Act 
of 1985 (16 U.S.C. 3839aa-5(a)) is amended to read as follows:
    ``(a) Plan of Operations.--To be eligible to receive payments under 
the program, a producer shall submit to the Secretary for approval a 
plan of operations that--
            ``(1) specifies the priority resource concerns to be 
        addressed;
            ``(2) specifies the type, number, and sequencing of 
        conservation systems, practices, or activities to be 
        implemented to address the priority resource concerns;
            ``(3) includes such terms and conditions as the Secretary 
        considers necessary to carry out the program, including a 
        description of the purposes to be met by the implementation of 
        the plan and a statement of how the plan will achieve or take 
        significant steps toward achieving the relevant resource 
        management system quality criteria;
            ``(4) in the case of a confined livestock feeding 
        operation, provides for development and implementation of a 
        comprehensive nutrient management plan, if applicable;
            ``(5) in the case of a producer located within a nutrient-
        impacted watershed, identifies methods by which the producer 
        will limit nutrient loss; and
            ``(6) in the case of forest land, is consistent with the 
        provisions of a forest management plan that is approved by the 
        Secretary, which may include--
                    ``(A) a forest stewardship plan described in 
                section 5 of the Cooperative Forestry Assistance Act of 
                1978 (16 U.S.C. 2103a);
                    ``(B) another practice plan approved by the State 
                forester; or
                    ``(C) another plan determined appropriate by the 
                Secretary.''.
    (b) Avoidance of Duplication.--Section 1240E(b)(1) of the Food 
Security Act of 1985 (16 U.S.C. 3839aa-5(b)(1)) is amended by striking 
``plan of operations'' and inserting ``resource management system 
plan''.

SEC. 1506. DUTIES OF THE SECRETARY.

    Section 1240F(2) of the Food Security Act of 1985 (16 U.S.C. 
3839aa-6(2)) is amended by striking ``information'' and inserting 
``technical assistance, information,''.

SEC. 1507. LIMITATION ON PAYMENTS.

    Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7) 
is amended to read as follows:

``SEC. 1240G. LIMITATION ON PAYMENTS.

    ``(a) Limitation on Total Payments.--Subject to subsection (b), a 
person or legal entity may not receive, directly or indirectly, cost-
share or incentive payments under this chapter, in the aggregate, for 
all contracts entered into under this chapter by the person or entity 
(excluding funding arrangements with federally recognized Native 
American Indian Tribes or Alaska Native Corporations under section 
1240B(h)), regardless of the number of contracts entered into under 
this chapter by the person or entity, that--
            ``(1) during any fiscal year exceed $30,000; and
            ``(2) during any five-year period exceed $150,000.
    ``(b) Waiver Authority.--In the case of contracts under this 
chapter for projects of special environmental significance, as 
determined by the Secretary, the Secretary may waive the limitation 
otherwise applicable under subsection (a)(1).
    ``(c) Prevention of Duplication.--The Secretary shall not approve a 
contract or provide payments to any individual for a practice that has 
already been paid for as part of a previously approved and completed 
contract for any particular parcel of land.''.

           Subtitle G--Conservation Innovation Grant Program

SEC. 1601. CONSERVATION INNOVATION GRANT PROGRAM.

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

``SEC. 1240S. CONSERVATION INNOVATION GRANT PROGRAM.

    ``(a) Competitive Grants for Innovative Conservation Approaches.--
The Secretary shall, for each of fiscal years 2014 through 2018, carry 
out a conservation innovation grant program to encourage innovation in 
conservation on private farmland, rangeland, wetlands, grasslands, and 
forest lands.
    ``(b) Use.--The Secretary shall provide grants under this section 
to governmental and non-governmental organizations and persons, on a 
competitive basis, to carry out projects that--
            ``(1) develop and test innovative and cost-effective 
        technologies and practices and methods of conservation delivery 
        to address priority resource concerns;
            ``(2) involve producers who are eligible for payments or 
        technical assistance under this title;
            ``(3) leverage Federal funds made available to carry out 
        this section with matching funds provided by State and local 
        governments and private organizations to promote environmental 
        enhancement and protection in conjunction with agricultural 
        production;
            ``(4) ensure efficient and effective transfer of innovative 
        technologies and approaches demonstrated through projects that 
        receive funding under this subsection, such as market systems 
        for pollution reduction and practices for the storage of carbon 
        in soil;
            ``(5) provide environmental and resource conservation 
        benefits through increased participation by producers of 
        specialty crops;
            ``(6) provide payments to producers to implement cost-
        effective and innovative technologies to address priority 
        resource concerns related to air quality from agricultural 
        operations; or
            ``(7) provide environmental and resource conservation 
        benefits through increased participation by beginning farmers 
        and ranchers and socially disadvantaged farmers and ranchers.
    ``(c) Evaluation Criteria.--The Secretary shall develop criteria 
for evaluating applications for competitive grants under this section 
that will ensure that priority resource concerns are effectively 
addressed.''.

                 Subtitle H--Funding and Administration

SEC. 1701. COMMODITY CREDIT CORPORATION.

    (a) In General.--Section 1241(a) of the Food Security Act of 1985 
(16 U.S.C. 3841(a)) is amended to read as follows:
    ``(a) In General.--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, $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 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.
            ``(3) The conservation stewardship program under subchapter 
        B of chapter 2 of subtitle D.
            ``(4) The environmental quality incentives program under 
        chapter 4 of subtitle D, using, to the maximum extent 
        practicable, $1,542,500,000 for each fiscal year.
            ``(5) The conservation innovation grant program under 
        section 1240S, using, to the maximum extent practicable, 
        $100,000,000 for each fiscal year.
            ``(6) The agricultural conservation easement program under 
        subtitle H, using, to the maximum extent practicable, 
        $704,000,000 for each fiscal year, of which not less than 70 
        percent shall be used to carry out section 1265C.
            ``(7) The conservation loan and loan guarantee program 
        under section 1246, using, to the maximum extent practicable, 
        for each fiscal year--
                    ``(A) $200,000,000 for direct loans; and
                    ``(B) $150,000,000 for loan guarantees.''.
    (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; and
            (2) by inserting after subsection (a) the following:
    ``(b) Availability of Funds.--
            ``(1) In general.--Except as provided in paragraph (2), 
        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.
            ``(2) Conservation innovation grant program.--Amounts made 
        available by subsection (a)(5) for a fiscal year and not 
        obligated in that fiscal year shall be made available for the 
        environmental quality incentives program under chapter 4 of 
        subtitle D, and shall remain available until expended.''.
    (c) Technical Assistance.--Section 1241(c) of the Food Security Act 
of 1985 (as redesignated by subsection (b)) is amended to read as 
follows:
    ``(c) Technical Assistance.--
            ``(1) In general.--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; and
                    ``(B) 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) Amount.--The amount of funds made available under 
        paragraph (1) shall in no case equal less than 10 percent nor 
        more than 30 percent of the amounts made available by 
        subsection (a).''.
    (d) Assistance to Certain Farmers or Ranchers for Conservation 
Access.--Section 1241(h) of the Food Security Act of 1985 (as 
redesignated by subsection (b)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``2012'' and inserting ``2018''; and
                    (B) in subparagraph (A), by striking ``5'' and 
                inserting ``10'';
            (2) in paragraph (2), by inserting ``(but not earlier than 
        120 days after the date that funding for the fiscal year is 
        allocated to the States)'' after ``the Secretary'';
            (3) in paragraph (3), by inserting ``(but not earlier than 
        120 days after the date that funding for the fiscal year is 
        allocated to the States)'' after ``the Secretary''; and
            (4) by adding at the end the following new paragraphs:
            ``(4) Participation by beginning and socially disadvantaged 
        farmers and ranchers.--Nothing in this subsection prohibits 
        beginning or socially disadvantaged farmers or ranchers from 
        participating in programs and receiving funding available under 
        this title that is not reserved under paragraph (1).
            ``(5) Technical assistance.--Of the funds reserved under 
        paragraph (1), the Secretary shall allocate to the Natural 
        Resources Conservation Service funding for technical assistance 
        at a rate that is not more than 10 percent higher than the rate 
        that would otherwise apply under the environmental quality 
        incentives program and the conservation stewardship program to 
        allow the Service to provide additional technical assistance to 
        beginning farmers or ranchers and socially disadvantaged 
        farmers or ranchers to establish comprehensive conservation 
        plans.''.

SEC. 1702. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

    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 new 
section:

``SEC. 1246. 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) 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.
            ``(2) Qualified conservation project.--The term `qualified 
        conservation project' means conservation measures that address 
        provisions of a comprehensive conservation plan of the eligible 
        borrower.
            ``(3) Conservation loan plan.--The term `conservation loan 
        plan' means a plan, approved by the Secretary, that, for a 
        farming or ranching operation, identifies--
                    ``(A) the conservation activities that will be 
                addressed with loan funds provided under this section, 
                including--
                            ``(i) the installation of conservation 
                        structures to address soil, water, and related 
                        resources;
                            ``(ii) the establishment of forest cover 
                        for sustained yield timber management, erosion 
                        control, or shelterbelt purposes;
                            ``(iii) the installation of water 
                        conservation measures;
                            ``(iv) the installation of waste management 
                        systems;
                            ``(v) the establishment or improvement of 
                        permanent pasture; or
                            ``(vi) other purposes consistent with the 
                        plan, including the adoption of any other 
                        emerging or existing conservation practices, 
                        techniques, or technologies approved by the 
                        Secretary; and
                    ``(B) how and to what extent the conservation 
                project will support the implementation of a 
                comprehensive conservation plan and improve the 
                conditions of identified priority resource concerns.
    ``(c) Eligible Borrowers.--
            ``(1) In general.--The Secretary may make or guarantee 
        qualified conservation loans under this section to--
                    ``(A) farmers or ranchers engaged primarily and 
                directly in agricultural production in the United 
                States; or
                    ``(B) farm cooperatives, private domestic 
                corporations, partnerships, joint operations, trusts, 
                or limited liability companies that are--
                            ``(i) controlled by farmers or ranchers; 
                        and
                            ``(ii) engaged primarily and directly in 
                        agricultural production in the United States.
            ``(2) Conservation loan plan.--In order to be eligible to 
        receive a loan or loan guarantee under this section, an entity 
        described in paragraph (1) shall have a conservation loan plan.
    ``(d) Priority.--In making or guaranteeing qualified conservation 
loans under this section, the Secretary shall give priority to--
            ``(1) qualified beginning farmers or ranchers and socially 
        disadvantaged farmers or ranchers;
            ``(2) owners or tenants who use the loans to convert to 
        sustainable or organic agricultural production systems;
            ``(3) producers who use the loans to build conservation 
        structures or establish conservation practices to implement a 
        comprehensive conservation plan;
            ``(4) projects that will do the most to address priority 
        resource concerns, as specified in a conservation loan plan; 
        and
            ``(5) projects that are designed to help producers comply 
        with, or avoid the need for, local, State, or Federal 
        regulation.
    ``(e) Limitations Applicable to Loan Guarantees.--The portion of a 
qualified conservation loan that the Secretary may guarantee under this 
section shall be not more than 90 percent of the principal amount of 
the loan.
    ``(f) Administrative Provisions.--
            ``(1) Geographic distribution.--The Secretary shall ensure, 
        to the maximum extent practicable, that qualified conservation 
        loans made or guaranteed under this section are distributed 
        across diverse geographic regions, while still prioritizing 
        qualified conservation projects with the greatest conservation 
        or environmental benefit.
            ``(2) Agency cooperation.--The Secretary shall ensure 
        proper cooperation between the Natural Resources Conservation 
        Service, which shall review and approve comprehensive loan 
        plans and provide technical assistance for qualified 
        conservation projects, and the Farm Service Agency, which will 
        approve and issue loans and loan guarantees under this section.
            ``(3) Interest rates.--The Secretary shall ensure that a 
        loan made under this section is made at or below market 
        rate.''.

         Subtitle I--Agricultural Conservation Easement Program

SEC. 1801. 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, as such sections were in effect on September 30, 2013;
            ``(2) restore, protect, and enhance wetland on eligible 
        land;
            ``(3) protect and enhance 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 a 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 
                                will further a State or local policy 
                                consistent with the purposes of the 
                                program; 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 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; or
                    ``(C) in the case of both an agricultural land 
                easement or wetland easement, other land that is 
                incidental to eligible land if the Secretary determines 
                that it is necessary for the efficient administration 
                of the easements under this program.
            ``(4) Program.--The term `program' means the agricultural 
        conservation easement program established by this subtitle.
            ``(5) Wetland easement.--The term `wetland 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 Practice;
                            ``(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.--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.
            ``(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 
                        enhancing related conservation values of the 
                        land; and
                            ``(ii) maximizing the protection of areas 
                        devoted to agricultural use and the 
                        conservation values that can be derived from 
                        the land.
                    ``(C) Priority.--If the Secretary determines that 
                the environmental values of two or more applications 
                for cost-share assistance are comparable, the Secretary 
                shall assign a higher priority to a program application 
                which will achieve the environment and conservation 
                values using practices and systems the assessed cost of 
                which is lower.
            ``(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 that may be used if the terms of 
                        the easement are not enforced by the holder of 
                        the easement;
                            ``(v) subject the land in which such 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 comprehensive 
                                conservation plan, 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 purposes of the program under section 
                        1265(b).
                    ``(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 Secretary may terminate the 
                        agreement; 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 purpose of this 
                        subtitle;
                            ``(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 eligible entity no longer 
                        meets the criteria established under 
                        subparagraph (B), the Secretary may--
                                    ``(I) allow the certified eligible 
                                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 eligible 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 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 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 (which shall be considered to be 30-year 
                contracts for the purposes of this subtitle).
            ``(2) Limitations.--
                    ``(A) Ineligible land.--The Secretary may not 
                acquire wetland 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 wetland easement 
                shall be created on land that has changed ownership 
                during the preceding 24-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 a wetland easement, including the 
                        potential environmental benefits if the land 
                        was removed from agricultural production;
                            ``(ii) the cost-effectiveness of each 
                        wetland easement, 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 wetland easement 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 wetland easements based on the value of 
                the wetland 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 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 
                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 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 wetland easement, the wetland 
                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 
                easement may be used for compatible economic uses, 
                including such activities as hunting and fishing, 
                managed timber harvest, or periodic haying or grazing, 
                if such use is specifically permitted by the wetland 
                easement plan and is consistent with the long-term 
                protection and enhancement of the wetland resources for 
                which the easement was established.
                    ``(D) Reservation of grazing rights.--The Secretary 
                may include in the terms and conditions of a wetland 
                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 
                                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.
            ``(6) Compensation.--
                    ``(A) Determination.--
                            ``(i) In general.--The Secretary shall pay 
                        as compensation for a permanent wetland 
                        easement acquired under the program 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 Practice 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 
                        wetland easement shall be not less than 50 
                        percent, but not more than 75 percent, of the 
                        compensation that would be paid for a permanent 
                        wetland 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 wetland 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 wetland 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 easement plan.
            ``(2) Payments.--The Secretary shall--
                    ``(A) in the case of a permanent wetland easement, 
                pay an amount that is not less than 75 percent, but not 
                more than 100 percent, of the eligible costs as 
                determined by the Secretary; and
                    ``(B) in the case of a 30-year wetland easement, 
                pay an amount that is not less than 50 percent, but not 
                more than 75 percent, of the eligible costs, as 
                determined by the Secretary.
    ``(d) Technical Assistance.--
            ``(1) In general.--The Secretary shall assist owners in 
        complying with the terms and conditions of easements.
            ``(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 
        a wetland easement if the Secretary determines that the 
        contract or agreement will advance the purposes of the program.
            ``(3) Funding.--Not less than 10 percent of the funds made 
        available to carry out this section shall be available to 
        provide technical assistance under this subsection.
    ``(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 easement plan.--The Secretary shall develop a 
        wetland easement plan for eligible land subject to a wetland 
        easement, which will include the practices and activities 
        necessary to restore, protect, enhance, and maintain the 
        enrolled land.
            ``(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.
    ``(g) Wetlands Reserve Enhancement Program.--
            ``(1) Program authorized.--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 wetlands 
        reserve enhancement program that the Secretary determines would 
        advance the purposes of this section.
            ``(2) Reserved rights pilot program.--
                    ``(A) Reservation of grazing and haying rights.--As 
                part of the wetlands reserve enhancement program, the 
                Secretary shall carry out a pilot program for land in 
                which a landowner may reserve grazing and haying rights 
                in the warranty easement deed restriction if 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 long-term 
                        wetland protection and enhancement goals for 
                        which the easement was established; and
                            ``(iii) complies with a comprehensive 
                        conservation plan.
                    ``(B) Duration.--The pilot program established 
                under this paragraph shall terminate on September 30, 
                2018.

``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 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 
        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 a 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, as such programs were in effect on September 30, 2013, 
        shall be considered enrolled in this program.
    ``(e) Allocation of Funds for Agricultural Land Easements.--Of the 
funds made available under section 1241 to carry out the program for a 
fiscal year, the Secretary shall, to the extent practicable, use no 
less than 40 percent for agricultural land easements.''.
    (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 
                        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 
                        easements under section 1265C''; and
                    (B) in paragraph (4), by striking ``subchapter C'' 
                and inserting ``subchapter B''.

         Subtitle J--Regional Conservation Partnership Program

SEC. 1901. REGIONAL CONSERVATION PARTNERSHIP PROGRAM.

    Title XII of the Food Security Act of 1985 is amended by inserting 
after subtitle H (as added by section 1801) 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 enrolled in a covered 
        program.
    ``(b) Purposes.--The purposes of the program are--
            ``(1) to combine the purposes and coordinate the functions 
        of the agricultural water enhancement program established under 
        section 1240I, the Chesapeake Bay watershed program established 
        under section 1240Q, the cooperative conservation partnership 
        initiative established under section 1243, and the Great Lakes 
        basin program for soil erosion and sediment control established 
        under section 1240P, as such sections were in effect on 
        September 30, 2013;
            ``(2) to enhance priority resource concerns on agricultural 
        and nonindustrial private forest lands, including ground and 
        surface water associated with such lands;
            ``(3) to encourage cooperation among partners and producers 
        to--
                    ``(A) address priority resource concerns involving 
                agricultural and nonindustrial private forest lands on 
                a local, State, multi-state, or regional level;
                    ``(B) encourage producers to cooperate in achieving 
                the goals of applicable Federal, State, and local 
                natural resource and environmental laws, thereby 
                avoiding the need for additional regulatory measures to 
                be applied to owners and operators of agricultural and 
                nonindustrial private forest land;
                    ``(C) encourage producers to cooperate in the 
                installation and maintenance of conservation 
                activities, practices, systems, and management measures 
                that affect multiple agricultural or nonindustrial 
                private forest operations for the purpose of achieving 
                landscape-level improvement of priority resource 
                concerns;
                    ``(D) promote the development and demonstration of 
                innovative conservation activities, practices, systems, 
                and management measures to deliver technical, 
                financial, and educational assistance; and
                    ``(E) promote ground and surface water conservation 
                and improve water quality through efforts on 
                agricultural land, including--
                            ``(i) water quality or water conservation 
                        planning, including resource condition 
                        assessment and modeling;
                            ``(ii) performance measurement and 
                        management to reduce nutrient loss;
                            ``(iii) water quality or water conservation 
                        restoration or enhancement projects;
                            ``(iv) in the case of nutrient-impacted 
                        watersheds, prioritization of nutrient loss 
                        reduction as a conservation goal;
                            ``(v) activities designed to mitigate the 
                        effects of damaging drought or precipitation; 
                        or
                            ``(vi) related activities that the 
                        Secretary determines will help achieve water 
                        quality or water conservation benefits on 
                        agricultural land;
            ``(4) to encourage producers to cooperate in the 
        installation and maintenance of conservation activities, 
        practices, systems, and management measures that provide 
        climate change benefits, including increasing resilience to 
        rising temperatures, extreme weather events, and related 
        climate changes while reducing greenhouse gas emissions;
            ``(5) to improve the capacity of regional, state or local 
        partners to deliver assistance to producers that is effective 
        in addressing priority resource concerns; and
            ``(6) to implement the partnership in such a way that 
        encourages producers to achieve assessed conservation outcomes 
        and allows them to receive payments and technical assistance 
        linked to levels of those outcomes.

``SEC. 1271A. DEFINITIONS.

    ``In this subtitle:
            ``(1) Covered programs.--The term `covered programs' means 
        all conservation programs under subtitle D.
            ``(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) 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 nongovernmental organization with an 
                established history of working cooperatively with 
                producers to effectively address priority resource 
                concerns related to agricultural production and 
                nonindustrial private forest land or with demonstrated 
                technical capabilities that would substantially 
                increase the success of the program.
            ``(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) if proposed by the partner and approved by 
                the Secretary, provide technical assistance to 
                producers participating in the project;
                    ``(F) conduct an assessment of the project's 
                effects; and
                    ``(G) 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 resources requested under section 
                1271C(c)(4);
                    ``(E) the partners collaborating to achieve project 
                objectives, including their roles, responsibilities, 
                capabilities, and financial contribution; and
                    ``(F) any other elements the Secretary considers 
                necessary to adequately evaluate and competitively 
                select applications for funding under the program.
            ``(4) Application priority.--The Secretary shall give a 
        higher priority to applications that demonstrate the greatest 
        potential to--
                    ``(A) have a high percentage of producers involved 
                and of the agricultural or nonindustrial private forest 
                land included in the area covered by the agreement;
                    ``(B) assist producers in meeting the goals and 
                objectives of Federal environmental and natural 
                resource laws and regulations;
                    ``(C) significantly leverage non-Federal financial 
                and technical resources and coordinate with other 
                local, State, regional, or national efforts;
                    ``(D) deliver high percentages of applied 
                conservation to address water quality, water 
                conservation, or other State, regional, or national 
                priority resource concerns;
                    ``(E) provide innovation in conservation methods 
                and delivery, including outcome-based performance 
                measures and methods;
                    ``(F) identify producers participating in the 
                project, on whose behalf the partner is applying;
                    ``(G) advance conservation and rural community 
                development goals simultaneously;
                    ``(H) assist producers in States with significant 
                water quantity concerns; or
                    ``(I) 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 an eligible activity with 
        an eligible partner; or
            ``(2) producers participating in an eligible activity in a 
        critical conservation area designated under section 1271F 
        without an eligible partner.
    ``(b) Terms and Conditions.--
            ``(1) Compliance with covered program rules.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall ensure that the 
                terms and conditions of a contract under this section 
                are consistent with the applicable rules of the covered 
                programs to be used as part of the project, as 
                described in the application under section 
                1271B(d)(3)(C).
                    ``(B) Adjustments.--Except for statutory program 
                requirements governing appeals, payment limitations, 
                and conservation compliance, the Secretary may adjust 
                the discretionary program rules of a covered program--
                            ``(i) to provide a simplified application 
                        and evaluation process;
                            ``(ii) to better reflect unique local 
                        circumstances and purposes if the Secretary 
                        determines such adjustments are necessary to 
                        achieve the purposes of the proposed project;
                            ``(iii) to better link technical and 
                        financial assistance to assessed conservation 
                        outcomes; and
                            ``(iv) to increase the improvement in 
                        priority resource concerns achieved by the 
                        proposed project.
            ``(2) Alternative funding arrangements.--
                    ``(A) In general.--For the purposes of providing 
                assistance for a critical conservation areas designated 
                under 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 funds for 
                        administration or contracting with another 
                        entity.
                    ``(C) Limitation.--The Secretary may enter into not 
                more than 10 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.
            ``(4) Payments to partners.--The Secretary shall provide, 
        directly or through cooperative and contribution agreements 
        with partners, financial assistance to such partners to 
        complete tasks essential to the success of the project which 
        may include natural resource assessment and planning, outreach 
        to producers, monitoring, technical assistance, and evaluation 
        of project progress and other such essential tasks as 
        determined by the Secretary.

``SEC. 1271D. FUNDING.

    ``(a) Availability of Funds.--The Secretary shall use $100,000,000 
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 at least 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 provide technical 
        and financial assistance to producers to carry out this 
        program.
            ``(2) Assistance to partners.--The Secretary shall reserve 
        at least 10 percent of the funding provided in subsection (a) 
        to provide payments to partners.
            ``(3) Unused funds and acres.--
                    ``(A) Return.--Any funds or acres reserved under 
                paragraph (1) of this section 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 or 
                redirected to support unfunded applications within the 
                geographic areas of approved partnership agreements.
                    ``(B) Reallocation.--Any funds reserved under 
                paragraph (2) of this section for a fiscal year that 
                are not obligated under this program by April 1 of that 
                fiscal year shall be reallocated to partners 
                demonstrating the highest level of performance in 
                achieving the objectives of the 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) 40 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; and
            ``(2) 60 percent of the funds and acres to projects based 
        on a national competitive process to be established by the 
        Secretary, of which 60 percent shall be reserved for the 
        critical conservation areas designated under section 1271F.

``SEC. 1271E. ADMINISTRATION.

    ``(a) Disclosure.--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, 2013, and 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 funds are being administered 
        under section 1271B, 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.
    ``(c) Evaluation.--Partners shall provide to the Secretary--
            ``(1) annual performance reports;
            ``(2) at the end of each multi-year project, a performance 
        report that describes--
                    ``(A) the progress that has been made towards 
                attainment of conservation objectives and landscape-
                scale conservation outcomes;
                    ``(B) the methods that have been used to measure 
                progress being made toward attainment of conservation 
                objectives and landscape-scale conservation outcomes;
                    ``(C) the number of producers who participated; and
                    ``(D) the conservation practices adopted and the 
                frequency of adoption.

``SEC. 1271F. CRITICAL CONSERVATION AREAS.

    ``(a) In General.--When administering the funding reserved for 
critical conservation areas under section 1271D(d)(2), the Secretary 
shall select applications for partnership agreements and producer 
contracts within critical conservation areas designated under this 
section.
    ``(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 subject to regulatory requirements that 
                could reduce the economic scope of agricultural 
                operations within the area; or
                    ``(F) is recognized as vital habitat for migrating 
                wildlife.
            ``(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.''.

            TITLE II--CROP INSURANCE AND DISASTER ASSISTANCE

SEC. 2001. INELIGIBILITY FOR FEDERAL CROP INSURANCE, NONINSURED CROP 
              DISASTER ASSISTANCE, AND CERTAIN PAYMENTS BECAUSE OF CROP 
              PRODUCTION ON NATIVE SOD.

    (a) Federal Crop Insurance Act Amendment.--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 subsection 
                        (b) of section 1001 of the Food Security Act of 
                        1985 (7 U.S.C. 1308).''; and
            (3) by striking paragraph (3) and inserting the following 
        new paragraphs:
            ``(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 transitional yield of the 
                        producer; 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 Amendment.--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)--
                    (A) in the subparagraph heading, by striking 
                ``Ineligibility'' and inserting ``Reduction in''; and
                    (B) in clause (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 
                                subsection (b) of section 1001 of the 
                                Food Security Act of 1985 (7 U.S.C. 
                                1308).''; and
            (3) by striking subparagraph (C) and inserting the 
        following new subparagraphs:
                    ``(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 transitional yield 
                                of the producer; 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.''.

     TITLE III--REPEALS AND TRANSITIONAL PROVISIONS; TECHNICAL AND 
                 CONFORMING AMENDMENTS; EFFECTIVE DATE

SEC. 3001. REPEALS AND TRANSITIONAL PROVISIONS.

    (a) Emergency Forestry Conservation Reserve Program.--
            (1) Repeal.--Section 1231A of the Food Security Act of 1985 
        (16 U.S.C. 3831a) is repealed.
            (2) Transitional provisions.--
                    (A) Effect on existing contracts.--The amendment 
                made by this subsection 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.
                    (B) Funding.--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 1801 of 
                this Act, to continue to carry out contracts referred 
                to in subparagraph (A) using the provisions of law and 
                regulation applicable to such contracts as in existence 
                on September 30, 2013.
    (b) Wetlands Reserve Program.--
            (1) 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.
            (2) Transitional provisions.--
                    (A) Effect on existing contracts and easements.--
                The amendment made by this subsection 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.
                    (B) Funding.--
                            (i) 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 subparagraph (A) 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.
                            (ii) 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 1801 of this Act, to 
                        continue to carry out contracts and easements 
                        referred to in subparagraph (A) using the 
                        provisions of law and regulation applicable to 
                        such contracts and easements as in existence on 
                        September 30, 2013.
    (c) Farmland Protection Program and Farm Viability Program.--
            (1) 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.
            (2) Transitional provisions.--
                    (A) Effect on existing agreements and easements.--
                The amendment made by this subsection 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.
                    (B) Funding.--
                            (i) 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 subparagraph (A) 
                        that were entered into prior to October 1, 2013 
                        (including the provision of technical 
                        assistance).
                            (ii) Other.--On exhaustion of funds made 
                        available under clause (i), 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 1801 
                        of this Act, to continue to carry out 
                        agreements and easements referred to in 
                        subparagraph (A) using the provisions of law 
                        and regulation applicable to such agreements 
                        and easements as in existence on September 30, 
                        2013.
    (d) Grassland Reserve Program.--
            (1) 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.
            (2) Transitional provisions.--
                    (A) Effect on existing contracts, agreements, and 
                easements.--The amendment made by this subsection 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.
                    (B) Funding.--
                            (i) 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 
                        subparagraph (A) 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.
                            (ii) 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 1801 of this Act, to 
                        continue to carry out contracts, agreements, 
                        and easements referred to in subparagraph (A) 
                        using the provisions of law and regulation 
                        applicable to such contracts, agreements, and 
                        easements as in existence on September 30, 
                        2013.
    (e) 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.
    (f) Conservation Innovation Grants and Payments.--
            (1) Repeal.--Section 1240H of the Food Security Act of 1985 
        (16 U.S.C. 3839aa-8) is repealed.
            (2) Transitional provisions.--
                    (A) Effect on existing contracts.--The amendment 
                made by this subsection shall not affect the validity 
                or terms of any contract entered into by the Secretary 
                of Agriculture under section 1240H of the Food Security 
                Act of 1985 (16 U.S.C. 3839aa-8) before October 1, 
                2013, or any payments required to be made in connection 
                with the contract.
                    (B) Funding.--The Secretary may use funds made 
                available to carry out conservation innovation grants 
                and payments under section 1240S of title XII of the 
                Food Security Act of 1985, as added by section 1601 of 
                this Act, to continue to carry out contracts referred 
                to in subparagraph (A) using the provisions of law and 
                regulation applicable to such contracts as they existed 
                on September 30, 2013.
    (g) Agricultural Water Enhancement Program.--
            (1) Repeal.--Section 1240I of the Food Security Act of 1985 
        (16 U.S.C. 3839aa-9) is repealed.
            (2) Transitional provisions.--
                    (A) Effect on existing contracts and agreements.--
                The amendment made by this subsection 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.
                    (B) Funding.--
                            (i) 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 subparagraph (A) 
                        that were entered into prior to October 1, 2013 
                        (including the provision of technical 
                        assistance).
                            (ii) Other.--On exhaustion of funds made 
                        available under clause (i), 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 1801 
                        of this Act, to continue to carry out contracts 
                        and agreements referred to in subparagraph (A) 
                        using the provisions of law and regulation 
                        applicable to such contracts and agreements as 
                        in existence on September 30, 2013.
    (h) Wildlife Habitat Incentive Program.--
            (1) Repeal.--Section 1240N of the Food Security Act of 1985 
        (16 U.S.C. 3839bb-1) is repealed.
            (2) Transitional provisions.--
                    (A) Effect on existing contracts.--The amendment 
                made by this subsection 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.
                    (B) Funding.--
                            (i) 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 subparagraph (A) which were 
                        entered into prior to October 1, 2013 
                        (including the provision of technical 
                        assistance).
                            (ii) Other.--On exhaustion of funds made 
                        available under clause (i), 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 subparagraph (A) using the 
                        provisions of law and regulation applicable to 
                        such contracts as in existence on September 30, 
                        2013.
    (i) Great Lakes Basin Program.--Section 1240P of the Food Security 
Act of 1985 (16 U.S.C. 3839bb-3) is repealed.
    (j) Chesapeake Bay Watershed Program.--
            (1) Repeal.--Section 1240Q of the Food Security Act of 1985 
        (16 U.S.C. 3839bb-4) is repealed.
            (2) Transitional provisions.--
                    (A) Effect on existing contracts, agreements, and 
                easements.--The amendment made by this subsection 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.
                    (B) Funding.--
                            (i) 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 
                        subparagraph (A) that were entered into prior 
                        to October 1, 2013 (including the provision of 
                        technical assistance).
                            (ii) Other.--The Secretary may use funds 
                        made available to carry out the regional 
                        conservation partnership program under subtitle 
                        I of title XII of the Food Security Act of 
                        1985, as added by section 1901 of this Act, to 
                        continue to carry out contracts, agreements, 
                        and easements referred to in subparagraph (A) 
                        using the provisions of law and regulation 
                        applicable to such contracts, agreements, and 
                        easements as in existence on September 30, 
                        2013.
    (k) Cooperative Conservation Partnership Initiative.--
            (1) Repeal.--Section 1243 of the Food Security Act of 1985 
        (16 U.S.C. 3843) is repealed.
            (2) Transitional provisions.--
                    (A) Effect on existing contracts and agreements.--
                The amendment made by this subsection 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.
                    (B) Funding.--
                            (i) 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 subparagraph (A) 
                        that were entered into prior to October 1, 2013 
                        (including the provision of technical 
                        assistance).
                            (ii) Other.--On exhaustion of funds made 
                        available under clause (i), the Secretary may 
                        use funds made available to carry out the 
                        regional conservation partnership program under 
                        subtitle I of title XII of the Food Security 
                        Act of 1985, as added by section 1901 of this 
                        Act, to continue to carry out contracts and 
                        agreements referred to in subparagraph (A) 
                        using the provisions of law and regulation 
                        applicable to such contracts and agreements as 
                        in existence on September 30, 2013.
    (l) Desert Terminal Lakes Program.--
            (1) Repeal.--Section 2507 of the Farm Security and Rural 
        Investment Act of 2002 (43 U.S.C. 2211 note) is repealed.
            (2) Transitional provisions.--
                    (A) Effect on existing contracts.--The amendment 
                made by this subsection shall not affect the validity 
                or terms of any contract entered into by the Secretary 
                of Agriculture under section 2507 of the Farm Security 
                and Rural Investment Act of 2002 (43 U.S.C. 2211 note) 
                before October 1, 2013, or any payments required to be 
                made in connection with the contract.
                    (B) Funding.--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 1801 of 
                this Act, to continue to carry out contracts referred 
                to in subparagraph (A) using the provisions of law and 
                regulation applicable to such contracts as in existence 
                on September 30, 2013.

SEC. 3002. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Definitions.--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 
inserting ``, H, and I'' after ``E''.
    (b) Priority Resource Concern.--The following sections of the Food 
Security Act of 1985 are amended by inserting ``priority'' before 
``resource concerns'':
            (1) Section 1238A(e)(4)(B)(ii) (16 U.S.C. 
        3838a(e)(4)(B)(ii)).
            (2) Section 1238D(3)(A) (16 U.S.C. 3838d(3)(A)).
            (3) Section 1240A(1)(B)(vi) (16 U.S.C. 3839aa-1(1)(B)(vi)).

SEC. 3003. EFFECTIVE DATE.

    This Act, and the amendments made by this Act, shall take effect on 
October 1, 2013.
                                 <all>