[Congressional Record (Bound Edition), Volume 153 (2007), Part 15]
[House]
[Pages 21447-21539]
[From the U.S. Government Publishing Office, www.gpo.gov]




 OMISSION FROM THE CONGRESSIONAL RECORD OF THURSDAY, JULY 26, 2007 AT 
PAGE 20855
                                  ____

         FARM, NUTRITION, AND BIOENERGY ACT OF 2007--Continued

  The CHAIRMAN. Pursuant to the rule, the amendment in the nature of a 
substitute printed in the bill, modified by the amendments printed in 
part A of House Report 110-261, is adopted. The bill, as amended, shall 
be considered as an original bill for the purpose of further amendment 
under the 5-minute rule and shall be considered read.
  The text of the bill is as follows:

                               H.R. 2419

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Farm, 
     Nutrition, and Bioenergy Act of 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:
Sec. 1. Short title and table of contents.

                      TITLE I--COMMODITY PROGRAMS

Sec. 1001. Definitions.

       Subtitle A--Direct Payments and Counter-Cyclical Payments

Sec. 1101. Adjustments to base acres.
Sec. 1102. Availability of direct payments.
Sec. 1103. Availability of counter-cyclical payments.
Sec. 1104. Availability of revenue-based counter-cyclical payments.
Sec. 1105. Producer agreement required as condition of provision of 
              direct payments and counter-cyclical payments.
Sec. 1106. Planting flexibility.
Sec. 1107. Period of effectiveness.

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

Sec. 1201. Availability of nonrecourse marketing assistance loans for 
              loan commodities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed 
              acreage.
Sec. 1207. Special marketing loan provisions for upland cotton.
Sec. 1208. Special competitive provisions for extra long staple cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains 
              and seed cotton.
Sec. 1210. Deadline for repayment of marketing assistance loan for 
              peanuts.
Sec. 1211. Commodity quality incentive payments for healthy oilseeds.

                           Subtitle C--Sugar

Sec. 1301. Sugar program.
Sec. 1302. United States membership in the international sugar 
              organization.
Sec. 1303. Flexible marketing allotments for sugar.

                  Subtitle D--Dairy-Related Provisions

Sec. 1401. Dairy product price support program.
Sec. 1402. Dairy forward pricing program.
Sec. 1403. Dairy export incentive program.
Sec. 1404. Revision of Federal marketing order amendment procedures.
Sec. 1405. Dairy indemnity program.
Sec. 1406. Extension of milk income loss contract program.
Sec. 1407. Dairy promotion and research program.
Sec. 1408. Report on Department of Agriculture reporting procedures for 
              nonfat dry milk.
Sec. 1409. Federal Milk Marketing Order Review Commission.

                       Subtitle E--Administration

Sec. 1501. Administration generally.
Sec. 1502. Suspension of permanent price support authority.
Sec. 1503. Payment Limitations.
Sec. 1504. Adjusted gross income limitation.
Sec. 1505. Adjustments of loans.
Sec. 1506. Personal liability of producers for deficiencies.
Sec. 1507. Extension of existing administrative authority regarding 
              loans.
Sec. 1508. Assignment of payments.
Sec. 1509. Tracking of benefits.
Sec. 1510. Upland cotton storage payments.
Sec. 1511. Government publication of cotton price forecasts.

                         TITLE II--CONSERVATION

   Subtitle A--Conservation Programs of the Food Security Act of 1985

Sec. 2101. Conservation reserve program.
Sec. 2102. Wetlands reserve program.
Sec. 2103. Conservation security program.
Sec. 2104. Grassland reserve program.
Sec. 2105. Environmental quality incentives program.
Sec. 2106. Regional water enhancement program.
Sec. 2107. Grassroots source water protection program.
Sec. 2108. Conservation of private grazing land.
Sec. 2109. Great Lakes basin program for soil erosion and sediment 
              control.
Sec. 2110. Farm and ranchland protection program.
Sec. 2111. Farm viability program.
Sec. 2112. Wildlife habitat incentive program.

           Subtitle B--Conservation Programs Under Other Laws

Sec. 2201. Agricultural management assistance program.
Sec. 2202. Resource Conservation and Development Program.
Sec. 2203. Small watershed rehabilitation program.

              Subtitle C--Additional Conservation Programs

Sec. 2301. Chesapeake Bay program for nutrient reduction and sediment 
              control.
Sec. 2302. Voluntary public access and habitat incentive program.

                 Subtitle D--Administration and Funding

Sec. 2401. Funding of conservation programs under Food Security Act of 
              1985.
Sec. 2402. Improved provision of technical assistance under 
              conservation programs.
Sec. 2403. Cooperative conservation partnership initiative.
Sec. 2404. Regional equity and flexibility.
Sec. 2405. Administrative requirements for conservation programs.
Sec. 2406. Annual report on participation by specialty crop producers 
              in conservation programs.
Sec. 2407. Promotion of market-based approaches to conservation.
Sec. 2408. Establishment of State technical committees and their 
              responsibilities.
Sec. 2409. Payment limitations.

                  Subtitle E--Miscellaneous Provisions

Sec. 2501. Inclusion of income from affiliated packing and handling 
              operations as income derived from farming for application 
              of adjusted gross income limitation on eligibility for 
              conservation programs.
Sec. 2502. Encouragement of voluntary sustainability practices 
              guidelines.
Sec. 2503. Farmland resource information.

                            TITLE III--TRADE

Sec. 3001. Agricultural Trade Development and Assistance Act of 1954.
Sec. 3002. Export credit guarantee program.
Sec. 3003. Market access program.
Sec. 3004. Food for Progress Act of 1985.
Sec. 3005. McGovern-Dole International Food for Education and Child 
              Nutrition program.
Sec. 3006. Bill Emerson Humanitarian Trust.
Sec. 3007. Technical assistance for specialty crops.
Sec. 3008. Technical assistance for the resolution of trade disputes.
Sec. 3009. Representation by the United States at international 
              standard-setting bodies.
Sec. 3010. Foreign market development cooperator program.
Sec. 3011. Emerging markets.
Sec. 3012. Export Enhancement Program.
Sec. 3013. Minimum level of nonemergency food assistance.
Sec. 3014. Germplasm conservation.

                      TITLE IV--NUTRITION PROGRAMS

                     Subtitle A--Food Stamp Program

Sec. 4001. Renaming the food stamp program.

[[Page 21448]]

Sec. 4002. Definition of drug addiction or alcoholic treatment and 
              rehabilitation program.
Sec. 4003. Nutrition education.
Sec. 4004. Food distribution on Indian reservations.
Sec. 4005. Deobligate food stamp coupons.
Sec. 4006. Allow for the accrual of benefits.
Sec. 4007. State option for telephonic signature.
Sec. 4008. Review of major changes in program design.
Sec. 4009. Grants for simple application and eligibility determination 
              systems and improved access to benefits.
Sec. 4010. Civil money penalties and disqualification of retail food 
              stores and wholesale food concerns.
Sec. 4011. Major systems failures.
Sec. 4012. Funding of employment and training programs.
Sec. 4013. Reductions in payments for administrative costs.
Sec. 4014. Cash payment pilot projects.
Sec. 4015. Findings of Congress regarding Secure Supplemental Nutrition 
              Assistance program nutrition education.
Sec. 4016. Nutrition education and promotion initiative to address 
              obesity.
Sec. 4017. Authorization of appropriations.
Sec. 4018. Consolidated block grants for Puerto Rico and American 
              Samoa.
Sec. 4019. Study on comparable access to Secure Supplemental Nutrition 
              Assistance Program benefits for Puerto Rico.
Sec. 4020. Reauthorization of community food project competitive 
              grants.
Sec. 4021. Emergency food assistance.

                   Subtitle B--Commodity Distribution

Sec. 4201. Authorization of appropriations.
Sec. 4202. Distribution of surplus commodities; special nutrition 
              projects.
Sec. 4203. Commodity distribution program.

            Subtitle C--Child Nutrition and Related Programs

Sec. 4301. Purchase of fresh fruits and vegetables for distribution to 
              schools and service institutions.
Sec. 4302. Buy American requirements.
Sec. 4303. Expansion of fresh fruit and vegetable program.
Sec. 4304. Purchases of locally produced foods.

                       Subtitle D--Miscellaneous

Sec. 4401. Seniors farmers' market nutrition program.
Sec. 4402. Congressional Hunger Center.
Sec. 4403. Joint nutrition monitoring and related research activities.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 5001. Conservation loan guarantee program.
Sec. 5002. Limitations on amount of ownership loans.
Sec. 5003. Down payment loan program.
Sec. 5004. Beginning farmer and rancher contract land sales program.

                      Subtitle B--Operating Loans

Sec. 5011. Limitations on amount of operating loans.
Sec. 5012. Suspension of limitation on period for which borrowers are 
              eligible for guaranteed assistance.

                 Subtitle C--Administrative Provisions

Sec. 5021. Inventory sales preferences.
Sec. 5022. Loan fund set-asides.
Sec. 5023. Transition to private commercial or other sources of credit.
Sec. 5024. Extension of the right of first refusal to reacquire 
              homestead property to immediate family members of 
              borrower-owner.
Sec. 5025. Rural development and farm loan program activities.

                        Subtitle D--Farm Credit

Sec. 5031. Agribusiness loan eligibility.
Sec. 5032. Loan-to-asset value requirements.
Sec. 5033. Population limit for single-family housing loans.
Sec. 5034. Bank for cooperatives voting stock.
Sec. 5035. Majority farmer control requirement.
Sec. 5036. Borrower stock requirement.
Sec. 5037. Rural utility loans.
Sec. 5038. Farm Credit System Insurance Corporation.
Sec. 5039. Risk-based capital levels.
Sec. 5040. Loans to purchasers of highly fractioned lands.

                      TITLE VI--RURAL DEVELOPMENT

Sec. 6001. Definition of rural.
Sec. 6002. Water, waste disposal, and wastewater facility grants.
Sec. 6003. Rural business opportunity grants.
Sec. 6004. Rural water and wastewater circuit rider program.
Sec. 6005. Tribal college and university essential community 
              facilities.
Sec. 6006.  Emergency and imminent community water assistance grant 
              program.
Sec. 6007. Water systems for rural and native villages in Alaska.
Sec. 6008. Grants to nonprofit organizations to finance the 
              construction, refurbishing, and servicing of 
              individually-owned household water well systems in rural 
              areas for individuals with low or moderate incomes.
Sec. 6009. Rural cooperative development grants.
Sec. 6010. Criteria to be applied in  providing loans and loan 
              guarantees under the business and industry loan program.
Sec. 6011. Appropriate technology transfer for rural areas program.
Sec. 6012. Grants to improve technical infrastructure and improve 
              quality of rural health care facilities.
Sec. 6013. Rural entrepreneur and microenterprise assistance program.
Sec. 6014. Criteria to be applied in considering applications for rural 
              development projects.
Sec. 6015. National sheep industry improvement center.
Sec. 6016. National rural development partnership.
Sec. 6017. Historic barn preservation.
Sec. 6018. Grants for NOAA weather radio transmitters.
Sec. 6019. Delta regional authority.
Sec. 6020. Northern great plains regional authority.
Sec. 6021. Rural strategic investment program.
Sec. 6022. Expansion of 911 access.
Sec. 6023. Access to broadband telecommunications services in rural 
              areas.
Sec. 6024. Community connect grant program.
Sec. 6025. Agriculture innovation center demonstration program.
Sec. 6026. Rural firefighters and emergency medical service assistance 
              program.
Sec. 6027. Value-added agricultural market development program.
Sec. 6028. Assistance for rural public television stations.
Sec. 6029. Telemedicine and distance learning services in rural areas.
Sec. 6030. Guarantees for bonds and notes issued for electrification or 
              telephone purposes.
Sec. 6031. Comprehensive rural broadband strategy.
Sec. 6032. Study of railroad issues.

                          TITLE VII--RESEARCH

                     Subtitle A--General Provisions

Sec. 7101. Definitions.
Sec. 7102. Budget submission and funding.
Sec. 7103. Additional purposes of agricultural research and extension.
Sec. 7104. National agricultural research program office.
Sec. 7105. Establishment of competitive grant programs under the 
              National Institute for Food and Agriculture.
Sec. 7106. Merging of IFAFS and NRI.
Sec. 7107. Capacity building grants for ASCARR institutions.
Sec. 7108. Establishment of research laboratories for animal diseases.
Sec. 7109. Grazinglands research laboratory.
Sec. 7110. Researcher training.
Sec. 7111. Fort Reno Science Park research facility.
Sec. 7112. Assessing the nutritional composition of beef products.
Sec. 7113. Sense of Congress regarding funding for human nutrition 
              research.

  Subtitle B--National Agricultural Research, Extension, and Teaching 
                           Policy Act of 1977

Sec. 7201. Advisory board.
Sec. 7202. Advisory board termination.
Sec. 7203. Renewable energy committee.
Sec. 7204. Specialty crop committee report.
Sec. 7205. Inclusion of UDC in grants and fellowships for food and 
              agricultural sciences education.
Sec. 7206. Grants and fellowships for food and agricultural sciences 
              education.
Sec. 7207. Grants for research on production and marketing of alcohols 
              and industrial hydrocarbons from agricultural commodities 
              and forest products.
Sec. 7208. Policy research centers.
Sec. 7209. Human nutrition intervention and health promotion research 
              program.
Sec. 7210. Pilot research program to combine medical and agricultural 
              research.
Sec. 7211. Nutrition education program.
Sec. 7212. Continuing animal health and disease research programs.
Sec. 7213. Cooperation among eligible institutions.
Sec. 7214. Appropriations for research on national or regional 
              problems.
Sec. 7215. Authorization level of extension at 1890 land-grant 
              colleges.
Sec. 7216. Authorization level for agricultural research at 1890 land-
              grant colleges.
Sec. 7217. Grants to upgrade agriculture and food sciences facilities 
              at the District of Columbia Land Grant University.
Sec. 7218. Grants to upgrade agricultural and food sciences facilities 
              at 1890 land-grant colleges, including Tuskegee 
              University.
Sec. 7219. National research and training virtual centers.
Sec. 7220. Matching funds requirement for research and extension 
              activities of 1890 institutions.
Sec. 7221. Hispanic-serving institutions.
Sec. 7222. Hispanic-serving agricultural colleges and universities.
Sec. 7223. International agricultural research, extension, and 
              education.
Sec. 7224. Competitive grants for international agricultural science 
              and education programs.
Sec. 7225. Limitation on indirect costs for agricultural research, 
              education, and extension programs.
Sec. 7226. Research equipment grants.

[[Page 21449]]

Sec. 7227. University research.
Sec. 7228. Extension service.
Sec. 7229. Supplemental and alternative crops.
Sec. 7230. Aquaculture research facilities.
Sec. 7231. Rangeland research.
Sec. 7232. Special authorization for biosecurity planning and response.
Sec. 7233. Resident instruction and distance education grants program 
              for insular area institutions of higher education.

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

Sec. 7301. National genetics resources program.
Sec. 7302. National agricultural weather information system.
Sec. 7303. Partnerships.
Sec. 7304. Aflatoxin research and extension.
Sec. 7305. High-priority research and extension areas.
Sec. 7306. High-priority research and extension initiatives.
Sec. 7307. Nutrient management research and extension initiative.
Sec. 7308. Agricultural telecommunications program.
Sec. 7309. Assistive technology program for farmers with disabilities.
Sec. 7310. Organic research.
Sec. 7311. National rural information center clearinghouse.
Sec. 7312. New era rural technology program.

Subtitle D--Agricultural Research, Extension, and Education Reform Act 
                                of 1998

Sec. 7401. Partnerships for high-value agricultural product quality 
              research.
Sec. 7402. Precision agriculture.
Sec. 7403. Biobased products.
Sec. 7404. Thomas Jefferson initiative for crop diversification.
Sec. 7405. Integrated research, education, and extension competitive 
              grants program.
Sec. 7406. Fusarium graminearum grants.
Sec. 7407. Bovine Johne's disease control program.
Sec. 7408. Grants for youth organizations.
Sec. 7409. Agricultural biotechnology research and development for 
              developing countries.
Sec. 7410. Agricultural bioenergy and biobased products research 
              initiative.
Sec. 7411. Specialty crop research initiative.
Sec. 7412. Office of pest management policy.

                         Subtitle E--Other Laws

Sec. 7501. Critical agricultural materials act.
Sec. 7502. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7503. Agricultural experiment station Research Facilities Act.
Sec. 7504. National Agricultural Research, Extension, and Teaching 
              Policy Act Amendments of 1985.
Sec. 7505. Competitive, Special, and Facilities Research Grant Act 
              (national research initiative).
Sec. 7506. Agricultural Risk Protection Act of 2000 (carbon cycle 
              research).
Sec. 7507. Renewable Resources Extension Act of 1978.
Sec. 7508. National Aquaculture Act of 1980.
Sec. 7509. Construction of a Chinese Garden at the National Arboretum.
Sec. 7510. Public education regarding use of biotechnology in producing 
              food for human consumption.
Sec. 7511. Fresh cut produce safety grants.
Sec. 7512. UDC/EFNEP Eligibility.
Sec. 7513. Smith-Lever Act.
Sec. 7514. Hatch Act of 1987.

                   Subtitle F--Additional Provisions

Sec. 7601. Merit review of extension and educational grants.
Sec. 7602. Review of plan of work requirements.
Sec. 7603. Multistate and integration funding.
Sec. 7604. Expanded food and nutrition education program.
Sec. 7605. Grants to 1890 schools to expand extension capacity.
Sec. 7606. Borlaug international agricultural science and technology 
              fellowship program.
Sec. 7607. Support for research regarding diseases of wheat, triticale, 
              and barley caused by fusarium graminearum or by tilletia 
              indica.
Sec. 7608. Cost Recovery.
Sec. 7609. Organic Food and Agricultural Systems Funding.

                          TITLE VIII--FORESTRY

        Subtitle A--Cooperative Forestry Assistance Act of 1978

Sec. 8001. National priorities for private forest conservation.
Sec. 8002. Long-term, State-wide assessments and strategies for forest 
              resources.
Sec. 8003. Assistance to the Federated States of Micronesia, the 
              Republic of the Marshall Islands, and the Republic of 
              Palau.
Sec. 8004. Changes to Forest Resource Coordinating Committee.
Sec. 8005. Changes to State Forest Stewardship Coordinating Committees.
Sec. 8006. Competition in programs under Cooperative Forestry 
              Assistance Act of 1978.
Sec. 8007. Cooperative forest innovation partnership projects.

                  Subtitle B--Amendments to Other Laws

Sec. 8101. Healthy forest reserve program.
Sec. 8102. Emergency forest restoration program.
Sec. 8103. Office of International Forestry.
Sec. 8104. Rural revitalization technologies.

                  Subtitle C--Miscellaneous Provisions

Sec. 8201. Hispanic-serving institution agricultural land national 
              resources leadership program.

                            TITLE IX--ENERGY

Sec. 9001. Table of contents.
Sec. 9002. Federal procurement of biobased products.
Sec. 9003. Loan guarantees for biorefineries and biofuel production 
              plants.
Sec. 9004. Energy audit and renewable energy development program.
Sec. 9005. Renewable energy systems and energy efficiency improvements.
Sec. 9006. Biomass Research and Development Act of 2000.
Sec. 9007. Adjustments to the bioenergy program.
Sec. 9008. Research, extension, and educational programs on biobased 
              energy technologies and products.
Sec. 9009. Energy Council of the Department of Agriculture.
Sec. 9010. Farm energy production pilot program.
Sec. 9011. Rural energy self-sufficiency initiative.
Sec. 9012. Agricultural biofuels from biomass internship pilot program.
Sec. 9013. Feedstock flexibility program for bioenergy producers.
Sec. 9014. Dedicated ethanol pipeline feasibility studies.
Sec. 9015. Biomass inventory report.
Sec. 9016. Future farmsteads program.
Sec. 9017. Sense of Congress on renewable energy.

             TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE

                       Subtitle A--Honey and Bees

Sec. 10001. Annual report on response to honey bee colony collapse 
              disorder.

                  Subtitle B--Horticulture Provisions

Sec. 10101. Tree assistance program.
Sec. 10102. Specialty crop block grants.
Sec. 10103. Additional section 32 funds for purchase of fruits, 
              vegetables, and nuts to support domestic nutrition 
              assistance programs.
Sec. 10104. Independent evaluation of Department of Agriculture 
              commodity purchase process.
Sec. 10105. Quality requirements for clementines.
Sec. 10106. Implementation of food safety programs under marketing 
              orders.
Sec. 10107. Inclusion of specialty crops in census of agriculture.
Sec. 10108. Maturity requirements for Hass avocados.
Sec. 10109. Mushroom promotion, research, and consumer information.
Sec. 10110. Fresh produce education initiative.

                Subtitle C--Pest and Disease Management

Sec. 10201. Pest and disease program.
Sec. 10202. Multi-species fruit fly research and sterile fly 
              production.

                    Subtitle D--Organic Agriculture

Sec. 10301. National organic certification cost-share program.
Sec. 10302. Organic production and market data.
Sec. 10303. Organic conversion, technical, and educational assistance.

                  Subtitle E--Miscellaneous Provisions

Sec. 10401. Restoration of import and entry agricultural inspection 
              functions to the Department of Agriculture.
Sec. 10402. Grant program to improve movement of specialty crops.
Sec. 10403. Authorization of appropriations for market news activities 
              regarding specialty crops.
Sec. 10404. Farmers' market promotion program.
Sec. 10405. National Clean Plant Network.

                   TITLE XI--MISCELLANEOUS PROVISIONS

                   Subtitle A--Federal Crop Insurance

Sec. 11001. Availability of supplemental crop insurance based on area 
              yield and loss plan of insurance or area revenue plan of 
              insurance.
Sec. 11002. Premiums and reinsurance requirements.
Sec. 11003. Catastrophic risk protection administrative fee.
Sec. 11004. Funding for reimbursements, contracting, risk management 
              education, and information technology.
Sec. 11005. Reimbursement of research and development costs related to 
              new crop insurance products.
Sec. 11006. Research and development contracts for organic production 
              coverage improvements.
Sec. 11007. Targeting risk management education for beginning farmers 
              and ranchers and certain other farmers and ranchers.
Sec. 11008. Crop insurance ineligibility related to crop production on 
              noncropland.
Sec. 11009. Funds for data mining.
Sec. 11010. Noninsured crop assistance program.
Sec. 11011. Change in due date for Corporation payments for 
              underwriting gains.
Sec. 11012. Sesame insurance pilot program.

                   Subtitle B--Livestock and Poultry

Sec. 11101. Sense of Congress regarding pseudorabies eradication 
              program.
Sec. 11102. Arbitration of livestock and poultry contracts.
Sec. 11103. State-inspected meat and poultry.

[[Page 21450]]

Sec. 11104. Country of origin labeling.
Sec. 11105. Sense of Congress regarding State inspected meat and 
              poultry products.
Sec. 11106. Sense of Congress regarding the voluntary control program 
              for low pathogenic avian influenza.
Sec. 11107. Sense of Congress regarding the cattle fever tick 
              eradication program.

   Subtitle C--Socially Disadvantaged Producers and Limited Resource 
                               Producers

Sec. 11201. Outreach and technical assistance for socially 
              disadvantaged farmers and ranchers and limited resource 
              farmers and ranchers.
Sec. 11202. Improved program delivery by Department of Agriculture on 
              Indian reservations.
Sec. 11203. Transparency and accountability for socially disadvantaged 
              farmers and ranchers.
Sec. 11204. Beginning farmer and rancher development program.
Sec. 11205. Provision of receipt for service or denial of service.
Sec. 11206. Tracking of socially disadvantaged farmers and ranchers and 
              limited resource farmers and ranchers in Census of 
              Agriculture and certain studies.
Sec. 11207. Farmworker coordinator.
Sec. 11208. Office of Outreach relocation.
Sec. 11209. Minority farmer advisory committee.
Sec. 11210. Coordinator for chronically underserved rural areas.

               Subtitle D--Other Miscellaneous Provisions

Sec. 11301. Designation of separate cotton-producing States under 
              Cotton Research and Promotion Act.
Sec. 11302. Cotton classification services.
Sec. 11303. Availability of excess and surplus computers in rural 
              areas.
Sec. 11304. Permanent debarment from participation in Department of 
              Agriculture programs for fraud.
Sec. 11305. No discrimination against use of registered pesticide 
              products or classes of pesticide products.
Sec. 11306. Prohibition on closure or relocation of county offices for 
              the Farm Service Agency, Rural Development Agency, and 
              Natural Resources Conservation Service.
Sec. 11308. Regulation of exports of plants, plant products, biological 
              control organisms, and noxious weeds.
Sec. 11309. Grants to reduce production of methamphetamines from 
              anhydrous ammonia.
Sec. 11310. USDA Graduate School.
                      TITLE I--COMMODITY PROGRAMS
Sec. 1001. Definitions.

       Subtitle A--Direct Payments and Counter-Cyclical Payments

Sec. 1101. Adjustments to base acres.
Sec. 1102. Availability of direct payments.
Sec. 1103. Availability of counter-cyclical payments.
Sec. 1104. Availability of revenue-based counter-cyclical payments.
Sec. 1105. Producer agreement required as condition of provision of 
              direct payments and counter-cyclical payments.
Sec. 1106. Planting flexibility.
Sec. 1107. Period of effectiveness.

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

Sec. 1201. Availability of nonrecourse marketing assistance loans for 
              loan commodities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed 
              acreage.
Sec. 1207. Special marketing loan provisions for upland cotton.
Sec. 1208. Special competitive provisions for extra long staple cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains 
              and seed cotton.
Sec. 1210. Deadline for repayment of marketing assistance loan for 
              peanuts.
Sec. 1211. Commodity quality incentive payments for healthy oilseeds.

                           Subtitle C--Sugar

Sec. 1301. Sugar program.
Sec. 1302. United States membership in the international sugar 
              organization.
Sec. 1303. Flexible marketing allotments for sugar.

                  Subtitle D--Dairy-Related Provisions

Sec. 1401. Dairy product price support program.
Sec. 1402. Dairy forward pricing program.
Sec. 1403. Dairy export incentive program.
Sec. 1404. Revision of Federal marketing order amendment procedures.
Sec. 1405. Dairy indemnity program.
Sec. 1406. Extension of milk income loss contract program.
Sec. 1407. Dairy promotion and research program.
Sec. 1408. Report on Department of Agriculture reporting procedures for 
              nonfat dry milk.
Sec. 1409. Federal Milk Marketing Order Review Commission.

                       Subtitle E--Administration

Sec. 1501. Administration generally.
Sec. 1502. Suspension of permanent price support authority.
Sec. 1503. Payment Limitations.
Sec. 1504. Adjusted gross income limitation.
Sec. 1505. Adjustments of loans.
Sec. 1506. Personal liability of producers for deficiencies.
Sec. 1507. Extension of existing administrative authority regarding 
              loans.
Sec. 1508. Assignment of payments.
Sec. 1509. Tracking of benefits.
Sec. 1510. Upland cotton storage payments.
Sec. 1511. Government publication of cotton price forecasts.

     SEC. 1001. DEFINITIONS.

       In this title:
       (1) Agricultural act of 1949.--The term ``Agricultural Act 
     of 1949'' means the Agricultural Act of 1949 (7 U.S.C. 1421 
     et seq.), as in effect prior to the suspensions under section 
     171 of the Federal Agriculture Improvement and Reform Act of 
     1996 (7 U.S.C. 7301), section 1602(b) of the Farm Security 
     and Rural Investment Act of 2002 (7 U.S.C. 7992(b)), and 
     section 1502(b) of this Act.
       (2) Base acres.--The term ``base acres'', with respect to a 
     covered commodity on a farm, means the number of acres 
     established under sections 1101 and 1302 of the Farm Security 
     and Rural Investment Act of 2002 (7 U.S.C. 7911, 7952), as in 
     effect on the day before the date of the enactment of this 
     Act, subject to any adjustment under section 1101 of this 
     Act.
       (3) Comparable united states quality.--The term 
     ``Comparable United States Quality'', with respect to upland 
     cotton, means upland cotton classified as Middling (M) 1\3/
     32\-inch cotton with a micronaire of 3.7 to 4.2, strength 30 
     grams per tex, and uniformity of 83.
       (4) Counter-cyclical payment.--The term ``counter-cyclical 
     payment'' means a payment made to producers on a farm under 
     section 1103 or 1104.
       (5) Covered commodity.--The term ``covered commodity'' 
     means wheat, corn, grain sorghum, barley, oats, upland 
     cotton, rice, soybeans, peanuts, and other oilseeds.
       (6) Direct payment.--The term ``direct payment'' means a 
     payment made to producers on a farm under section 1102.
       (7) Effective price.--The term ``effective price'', with 
     respect to a covered commodity for a crop year, means the 
     price calculated by the Secretary under section 1103 to 
     determine whether counter-cyclical payments are required to 
     be made for that crop year under that section.
       (8) Extra long staple cotton.--The term ``extra long staple 
     cotton'' means cotton that--
       (A) is produced from pure strain varieties of the 
     Barbadense species or any hybrid of the species, or other 
     similar types of extra long staple cotton, designated by the 
     Secretary, having characteristics needed for various end uses 
     for which United States upland cotton is not suitable and 
     grown in irrigated cotton-growing regions of the United 
     States designated by the Secretary or other areas designated 
     by the Secretary as suitable for the production of the 
     varieties or types; and
       (B) is ginned on a roller-type gin or, if authorized by the 
     Secretary, ginned on another type gin for experimental 
     purposes.
       (9) Far east price.--The term ``Far East price'' means the 
     Friday through Thursday average price quotation for the three 
     lowest-priced growths of upland cotton, as quoted for 
     Middling (M) 1\3/32\-inch cotton, delivered C/F Far East.
       (10) Loan commodity.--The term ``loan commodity'' means 
     wheat, corn, grain sorghum, feed barley, malt barley, oats, 
     upland cotton, extra long staple cotton, long grain rice, 
     medium grain rice, short grain rice, soybeans, peanuts, other 
     oilseeds, wool, mohair, honey, dry peas, lentils, and small 
     chickpeas.
       (11) Other oilseed.--The term ``other oilseed'' means a 
     crop of sunflower seed, rapeseed, canola, safflower, 
     flaxseed, mustard seed, crambe, sesame seed, or, if 
     designated by the Secretary, another oilseed.
       (12) Payment acres.--The term ``payment acres'', with 
     respect to a covered commodity on a farm, means 85 percent of 
     the base acres for the covered commodity, on which direct 
     payments and counter-cyclical payments are made.
       (13) Payment yield.--The term ``payment yield'' means the 
     yield established for direct payments and counter-cyclical 
     payments under section 1102 or 1302 of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 7912; 7952), as in 
     effect on the day before the date of the enactment of this 
     Act, for a farm for a covered commodity.
       (14) Producer.--
       (A) In general.--The term ``producer'' means an owner, 
     operator, landlord, tenant, or sharecropper that shares in 
     the risk of producing a crop and is entitled to share in the 
     crop available for marketing from the farm, or would have 
     shared had the crop been produced.
       (B) Hybrid seed.--In determining whether a grower of hybrid 
     seed is a producer, the Secretary shall--
       (i) not take into consideration the existence of a hybrid 
     seed contract; and
       (ii) ensure that program requirements do not adversely 
     affect the ability of the grower to receive a payment under 
     this title.
       (15) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (16) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, and any other territory or 
     possession of the United States.
       (17) Target price.--The term ``target price'' means the 
     price per bushel (or other appropriate

[[Page 21451]]

     unit in the case of upland cotton, rice, peanuts, and other 
     oilseeds) of a covered commodity used to determine the 
     payment rate for counter-cyclical payments under section 
     1103.
       (18) United states.--The term ``United States'', when used 
     in a geographical sense, means all of the States.
       (19) United states premium factor.--The term ``United 
     States Premium Factor'' means the percentage by which the 
     difference in the United States loan schedule premiums for 
     Strict Middling (SM) 1\1/8\-inch cotton and for M 1\3/32\-
     inch exceeds the difference in the applicable premiums for 
     comparable international qualities delivered C/F Far East.
       Subtitle A--Direct Payments and Counter-Cyclical Payments

     SEC. 1101. ADJUSTMENTS TO BASE ACRES.

       (a) Treatment of Conservation Reserve Contract Acreage.--
       (1) In general.--The Secretary shall provide for an 
     adjustment, as appropriate, in the base acres for covered 
     commodities for a farm whenever either of the following 
     circumstances occurs:
       (A) A conservation reserve contract entered into under 
     section 1231 of the Food Security Act of 1985 (16 U.S.C. 
     3831) with respect to the farm expires or is voluntarily 
     terminated.
       (B) Cropland is released from coverage under a conservation 
     reserve contract by the Secretary.
       (2) Special payment rules.--For the crop year in which a 
     base acres adjustment under paragraph (1) is first made, the 
     owner of the farm shall elect to receive either direct 
     payments and counter-cyclical payments with respect to the 
     acreage added to the farm under this subsection or a prorated 
     payment under the conservation reserve contract, but not 
     both.
       (b) Prevention of Excess Base Acres.--
       (1) Required reduction.--If the sum of the base acres for a 
     farm, together with the acreage described in paragraph (2), 
     exceeds the actual cropland acreage of the farm, the 
     Secretary shall reduce the base acres for 1 or more covered 
     commodities for the farm so that the sum of the base acres 
     and acreage described in paragraph (2) does not exceed the 
     actual cropland acreage of the farm.
       (2) Other acreage.--For purposes of paragraph (1), the 
     Secretary shall include the following:
       (A) Any acreage on the farm enrolled in the conservation 
     reserve program or wetlands reserve program under chapter 1 
     of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830 et seq.).
       (B) Any other acreage on the farm enrolled in a 
     conservation program for which payments are made in exchange 
     for not producing an agricultural commodity on the acreage.
       (3) Selection of acres.--The Secretary shall give the owner 
     of the farm the opportunity to select the base acres against 
     which the reduction required by paragraph (1) will be made.
       (4) Exception for double-cropped acreage.--In applying 
     paragraph (1), the Secretary shall make an exception in the 
     case of double cropping, as determined by the Secretary.
       (c) Permanent Reduction in Base Acres.--
       (1) In general.--The owner of a farm may reduce, at any 
     time, the base acres for any covered commodity for the farm.
       (2) Administration.--The reduction shall be permanent and 
     made in the manner prescribed by the Secretary.

     SEC. 1102. AVAILABILITY OF DIRECT PAYMENTS.

       (a) Payment Required.--For each of the 2008 through 2012 
     crop years of each covered commodity, the Secretary shall 
     make direct payments to producers on farms for which payment 
     yields and base acres are established.
       (b) Payment Rate.--The payment rates used to make direct 
     payments with respect to covered commodities for a crop year 
     are as follows:
       (1) Wheat, $0.52 per bushel.
       (2) Corn, $0.28 per bushel.
       (3) Grain sorghum, $0.35 per bushel.
       (4) Barley, $0.24 per bushel.
       (5) Oats, $0.024 per bushel.
       (6) Upland cotton, $0.0667 per pound.
       (7) Rice, $2.35 per hundredweight.
       (8) Soybeans, $0.44 per bushel.
       (9) Other oilseeds, $0.0080 per pound.
       (10) Peanuts, $36.00 per ton.
       (c) Payment Amount.--The amount of the direct payment to be 
     paid to the producers on a farm for a covered commodity for a 
     crop year shall be equal to the product of the following:
       (1) The payment rate specified in subsection (b).
       (2) The payment acres of the covered commodity on the farm.
       (3) The payment yield for the covered commodity for the 
     farm.
       (d) Time for Payment.--
       (1) In general.--In the case of each of the 2008 through 
     2012 crop years, the Secretary may not make direct payments 
     before October 1 of the calendar year in which the crop of 
     the covered commodity is harvested.
       (2) Advance payments.--
       (A) Option.--At the option of the producers on a farm, up 
     to 22 percent of the direct payment for a covered commodity 
     for any of the 2008 through 2011 crop years shall be paid to 
     the producers in advance.
       (B) Month.--
       (i) Selection.--The producers shall select the month within 
     which the advance payment for a crop year will be made.
       (ii) Options.--The month selected may be any month during 
     the period beginning on December 1 of the calendar year 
     before the calendar year in which the crop of the covered 
     commodity is harvested through the month within which the 
     direct payment would otherwise be made.
       (iii) Change.--The producers may change the selected month 
     for a subsequent advance payment by providing advance notice 
     to the Secretary.
       (3) Repayment of advance payments.--If a producer on a farm 
     that receives an advance direct payment for a crop year 
     ceases to be a producer on that farm, or the extent to which 
     the producer shares in the risk of producing a crop changes, 
     before the date the remainder of the direct payment is made, 
     the producer shall be responsible for repaying the Secretary 
     the applicable amount of the advance payment, as determined 
     by the Secretary.
       (e) Prohibition on De Minimis Payments.--If the total 
     direct payment to be paid to a producer on a farm for all 
     covered commodities is less than $25.00, the Secretary shall 
     not tender the direct payment to the producer.

     SEC. 1103. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

       (a) Payment Required.--For each of the 2008 through 2012 
     crop years for each covered commodity, the Secretary shall 
     make counter-cyclical payments to producers on farms for 
     which payment yields and base acres are established with 
     respect to the covered commodity if the Secretary determines 
     that the effective price for the covered commodity is less 
     than the target price for the covered commodity.
       (b) Effective Price.--For purposes of subsection (a), the 
     effective price for a covered commodity is equal to the sum 
     of the following:
       (1) The higher of the following:
       (A) The national average market price received by producers 
     during the 12-month marketing year for the covered commodity, 
     as determined by the Secretary.
       (B) The national average loan rate for a marketing 
     assistance loan for the covered commodity in effect for the 
     applicable period under subtitle B, except that, for the 
     purpose of calculating counter-cyclical payments under this 
     section for rice and barley, the Secretary shall establish 
     national average all rice and all barley loan rates.
       (2) The payment rate in effect for the covered commodity 
     under section 1102 for the purpose of making direct payments 
     with respect to the covered commodity.
       (c) Target Price.--For purposes of subsection (a), the 
     target prices for covered commodities shall be as follows:
       (1) Wheat, $4.15 per bushel.
       (2) Corn, $2.63 per bushel.
       (3) Grain sorghum, $2.57 per bushel.
       (4) Barley, $2.73 per bushel.
       (5) Oats, $1.50 per bushel.
       (6) Upland cotton, $0.70 per pound.
       (7) Rice, $10.50 per hundredweight.
       (8) Soybeans, $6.10 per bushel.
       (9) Other oilseeds, $0.1150 per pound.
       (10) Peanuts, $495.00 per ton.
       (d) Payment Rate.--The payment rate used to make counter-
     cyclical payments with respect to a covered commodity for a 
     crop year shall be equal to the difference between--
       (1) the target price for the covered commodity; and
       (2) the effective price determined under subsection (b) for 
     the covered commodity.
       (e) Payment Amount.--If counter-cyclical payments are 
     required to be paid under this section for any of the 2008 
     through 2012 crop years of a covered commodity, the amount of 
     the counter-cyclical payment to be paid to the producers on a 
     farm for that crop year shall be equal to the product of the 
     following:
       (1) The payment rate specified in subsection (d).
       (2) The payment acres of the covered commodity on the farm.
       (3) The payment yield for the covered commodity for the 
     farm.
       (f) Time for Payments.--
       (1) General rule.--If the Secretary determines under 
     subsection (a) that counter-cyclical payments are required to 
     be made under this section for the crop of a covered 
     commodity, the Secretary shall make the counter-cyclical 
     payments for the crop as soon as practicable after the end of 
     the 12-month marketing year for the covered commodity.
       (2) Availability of partial payments.--If, before the end 
     of the 12-month marketing year for a covered commodity, the 
     Secretary estimates that counter-cyclical payments will be 
     required for the crop of the covered commodity, the Secretary 
     shall give producers on a farm the option to receive partial 
     payments of the counter-cyclical payment projected to be made 
     for that crop of the covered commodity.
       (3) Time for partial payments for 2008 through 2010 crop 
     years.--If the Secretary is required to make partial payments 
     available under paragraph (2) for a covered commodity for any 
     of the 2008 through 2010 crop years--
       (A) the first partial payment shall be made after 
     completion of the first 6 months of the marketing year for 
     the covered commodity; and
       (B) the final partial payment shall be made as soon as 
     practicable after the end of the 12-month marketing year for 
     the covered commodity.
       (4) Amount of partial payments.--
       (A) First partial payment.--For each of the 2008 through 
     2010 crop years, the first partial payment under paragraph 
     (3) to the producers on a farm may not exceed 40 percent of 
     the projected counter-cyclical payment for the covered 
     commodity for the crop year, as determined by the Secretary.
       (B) Final payment.--The final payment for each of the 2008 
     through 2010 crop years shall be equal to the difference 
     between--
       (i) the actual counter-cyclical payment to be made to the 
     producers for the covered commodity for that crop year; and

[[Page 21452]]

       (ii) the amount of the partial payment made to the 
     producers under subparagraph (A).
       (5) Repayment.--The producers on a farm that receive a 
     partial payment under this subsection for a crop year shall 
     repay to the Secretary the amount, if any, by which the total 
     of the partial payments exceed the actual counter-cyclical 
     payment to be made for the covered commodity for that crop 
     year.
       (g) Prohibition on De Minimis Payments.--If the total 
     counter-cyclical payment to be paid to a producer on a farm 
     for all covered commodities is less than $25.00, the 
     Secretary shall not tender the counter-cyclical payment to 
     the producer.

     SEC. 1104. AVAILABILITY OF REVENUE-BASED COUNTER-CYCLICAL 
                   PAYMENTS.

       (a) Availability and Election of Alternative Approach.--
       (1) Availability of revenue-based counter-cyclical 
     payments.--As an alternative to receiving counter-cyclical 
     payments under section 1103 with respect to each covered 
     commodity on a farm, the Secretary shall give the producers 
     on the farm an opportunity to elect to instead receive 
     revenue-based counter-cyclical payments under this section 
     for the 2008 through 2012 crop years.
       (2) Single election; time for election.--As soon as 
     practicable after the date of enactment of this Act, the 
     Secretary shall provide notice to producers regarding their 
     opportunity to make the election described in paragraph (1). 
     The notice shall include the following:
       (A) Notice that the opportunity of the producers on a farm 
     to make the election is being provided only once.
       (B) Information regarding the manner in which the election 
     must be made and the time periods and manner in which notice 
     of the election must be submitted to the Secretary.
       (3) Election deadline.--Within the time period and in the 
     manner prescribed pursuant to paragraph (2), the producers on 
     a farm shall submit to the Secretary notice of the election 
     made under paragraph (1).
       (4) Effect of failure to make election.--If the producers 
     on a farm fail to make the election under paragraph (1) or 
     fail to timely notify the Secretary of the election made, as 
     required by paragraph (3), the producers shall be deemed to 
     have made the election to receive counter-cyclical payments 
     under section 1103 for all covered commodities on the farm.
       (b) Payment Required.--In the case of producers on a farm 
     who make the election under subsection (a) to receive 
     revenue-based counter-cyclical payments, the Secretary shall 
     make revenue-based counter-cyclical payments to such 
     producers with respect to a covered commodity on the farm, if 
     the Secretary determines that the national actual revenue per 
     acre for the covered commodity is less than the national 
     target revenue per acre for the covered commodity, as 
     determined pursuant to this section.
       (c) National Actual Revenue Per Acre.--For each covered 
     commodity for each of the 2008 through 2012 crop years, the 
     Secretary shall establish a national actual revenue per acre 
     by multiplying the national average yield for the given year 
     by the higher of--
       (1) the national average market price received by producers 
     of the covered commodity during the 12-month marketing year 
     established by the Secretary; or
       (2) the loan rate for the covered commodity under section 
     1202, except that, for the purpose of calculating national 
     actual revenue per acre for rice and barley, the Secretary 
     shall establish national average all rice and all barley loan 
     rates.
       (d) National Target Revenue Per Acre.--The national target 
     revenue per acre shall be, on a per acre basis, as follows:
       (1) Wheat, $149.92.
       (2) Corn, $344.12.
       (3) Grain Sorghum, $131.28.
       (4) Barley, $153.30.
       (5) Oats, $92.10
       (6) Upland cotton, $496.93.
       (7) Rice, $548.06.
       (8) Soybeans, $231.87.
       (9) Other oilseeds, $129.18.
       (10) Peanuts, $683.83.
       (e) National Payment Yield.--The national payment yield 
     shall be as follows:
       (1) Wheat, 36.1 bushels per acre.
       (2) Corn, 114.4 bushels per acre.
       (3) Grain Sorghum, 58.2 bushels per acre.
       (4) Barley, 48.6 bushels per acre.
       (5) Oats, 49.8 bushels per acre.
       (6) Upland cotton, 634 pounds per acre.
       (7) Rice, 51.28 hundredweight per acre.
       (8) Soybeans, 34.1 bushels per acre.
       (9) Other oilseeds, 1167.6 pounds per acre.
       (10) Peanuts, 1.496 tons per acre.
       (f) National Payment Rate.--The national payment rate used 
     to make revenue-based counter-cyclical payments for a crop 
     year shall be the result of--
       (1) the difference between the national target revenue per 
     acre for the covered commodity and the national actual 
     revenue per acre for the covered commodity; divided by
       (2) the national payment yield for the covered commodity.
       (g) Payment Amount.--If revenue-based counter-cyclical 
     payments are required to be paid for any of the 2008 through 
     2012 crop years of a covered commodity, the amount of the 
     counter-cyclical payment to be paid to the producers on a 
     farm for that crop year for the covered commodity shall be 
     equal to the product of--
       (1) the national payment rate for the covered commodity;
       (2) the payment acres of the covered commodity on the farm; 
     and
       (3) the payment yield for counter-cyclical payments for the 
     covered commodity.
       (h) Time for Payments.--
       (1) General rule.--If the Secretary determines that 
     revenue-based counter-cyclical payments are required to be 
     made under this section for the crop of a covered commodity, 
     the Secretary shall make the counter-cyclical payments for 
     the crop as soon as practicable after the end of the 12-month 
     marketing year for the covered commodity.
       (2) Availability of partial payments.--If, before the end 
     of the 12-month marketing year for a covered commodity, the 
     Secretary estimates that revenue-based counter-cyclical 
     payments will be required for the crop of the covered 
     commodity, the Secretary shall give producers on a farm the 
     option to receive partial payments of the revenue-based 
     counter-cyclical payments projected to be made for that crop 
     of the covered commodity.
       (3) Time for partial payments for 2008 through 2010 crop 
     years.--If the Secretary is required to make partial payments 
     available under paragraph (2) for a covered commodity for any 
     of the 2008 through 2010 crop years--
       (A) the first partial payment shall be made after 
     completion of the first 6 months of the marketing year for 
     the covered commodity; and
       (B) the final partial payment shall be made as soon as 
     practicable after the end of the 12-month marketing year for 
     the covered commodity.
       (4) Amount of partial payments.--
       (A) First partial payment.--For each of the 2008 through 
     2010 crop years, the first partial payment under paragraph 
     (3) to the producers on a farm may not exceed 40 percent of 
     the projected revenue-based counter-cyclical payment for the 
     covered commodity for the crop year, as determined by the 
     Secretary.
       (B) Final payment.--The final payment for each of the 2008 
     through 2010 crop years shall be equal to the difference 
     between--
       (i) the actual revenue-based counter-cyclical payments to 
     be made to the producers for the covered commodity for that 
     crop year; and
       (ii) the amount of the partial payment made to the 
     producers on a farm under subparagraph (A) for that crop 
     year.
       (5) Repayment.--Producers on a farm that receive a partial 
     payment under this subsection for a crop year shall repay to 
     the Secretary the amount, if any, by which the total of the 
     partial payments exceed the actual revenue-based counter-
     cyclical payments to be made for the covered commodity for 
     that crop year.
       (i) Prohibition on De Minimis Payments.--If the total 
     revenue-based counter-cyclical payment to be paid to a 
     producer on a farm for all covered commodities is less than 
     $25.00, the Secretary shall not tender the revenue-based 
     counter-cyclical payment to the producer.

     SEC. 1105. PRODUCER AGREEMENT REQUIRED AS CONDITION OF 
                   PROVISION OF DIRECT PAYMENTS AND COUNTER-
                   CYCLICAL PAYMENTS.

       (a) Compliance With Certain Requirements.--
       (1) Requirements.--Before the producers on a farm may 
     receive direct payments or counter-cyclical payments with 
     respect to the farm, the producers shall agree, during the 
     crop year for which the payments are made and in exchange for 
     the payments--
       (A) to comply with applicable conservation requirements 
     under subtitle B of title XII of the Food Security Act of 
     1985 (16 U.S.C. 3811 et seq.);
       (B) to comply with applicable wetland protection 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.);
       (C) to comply with the planting flexibility requirements of 
     section 1106;
       (D) to use the land on the farm, in a quantity equal to the 
     attributable base acres for the farm for an agricultural or 
     conserving use, and not for a nonagricultural commercial or 
     industrial use, as determined by the Secretary; and
       (E) to effectively control noxious weeds and otherwise 
     maintain the land in accordance with sound agricultural 
     practices, as determined by the Secretary.
       (2) Compliance.--The Secretary may issue such rules as the 
     Secretary considers necessary to ensure producer compliance 
     with the requirements of paragraph (1).
       (3) Modification.--At the request of the transferee or 
     owner, the Secretary may modify the requirements of this 
     subsection if the modifications are consistent with the 
     objectives of this subsection, as determined by the 
     Secretary.
       (b) Transfer or Change of Interest in Farm.--
       (1) Termination.--
       (A) In general.--Except as provided in paragraph (2), a 
     transfer of (or change in) the interest of the producers on a 
     farm in base acres for which direct payments or counter-
     cyclical payments are made shall result in the termination of 
     the payments with respect to the base acres, unless the 
     transferee or owner of the acreage agrees to assume all 
     obligations under subsection (a).
       (B) Effective date.--The termination shall take effect on 
     the date determined by the Secretary.
       (2) Exception.--If a producer entitled to a direct payment 
     or counter-cyclical payment dies, becomes incompetent, or is 
     otherwise unable to receive the payment, the Secretary shall 
     make the payment, in accordance with rules issued by the 
     Secretary.
       (c) Acreage Reports.--As a condition on the receipt of any 
     benefits under this subtitle or subtitle B, the Secretary 
     shall require producers

[[Page 21453]]

     on a farm to submit to the Secretary annual acreage reports 
     with respect to all cropland on the farm.
       (d) Tenants and Sharecroppers.--In carrying out this 
     subtitle, the Secretary shall provide adequate safeguards to 
     protect the interests of tenants and sharecroppers.
       (e) Sharing of Payments.--The Secretary shall provide for 
     the sharing of direct payments and counter-cyclical payments 
     among the producers on a farm on a fair and equitable basis.

     SEC. 1106. PLANTING FLEXIBILITY.

       (a) Permitted Crops.--Subject to subsection (b), any 
     commodity or crop may be planted on base acres on a farm.
       (b) Limitations Regarding Certain Commodities.--
       (1) General limitation.--The planting of an agricultural 
     commodity specified in paragraph (3) shall be prohibited on 
     base acres unless the commodity, if planted, is destroyed 
     before harvest.
       (2) Treatment of trees and other perennials.--The planting 
     of an agricultural commodity specified in paragraph (3) that 
     is produced on a tree or other perennial plant shall be 
     prohibited on base acres.
       (3) Covered agricultural commodities.--Paragraphs (1) and 
     (2) apply to the following agricultural commodities:
       (A) Fruits.
       (B) Vegetables (other than lentils, mung beans, and dry 
     peas).
       (C) Wild rice.
       (c) Exceptions.--Paragraphs (1) and (2) of subsection (b) 
     shall not limit the planting of an agricultural commodity 
     specified in paragraph (3) of that subsection--
       (1) in any region in which there is a history of double-
     cropping of covered commodities with agricultural commodities 
     specified in subsection (b)(3), as determined by the 
     Secretary, in which case the double-cropping shall be 
     permitted;
       (2) on a farm that the Secretary determines has a history 
     of planting agricultural commodities specified in subsection 
     (b)(3) on base acres, except that direct payments and 
     counter-cyclical payments shall be reduced by an acre for 
     each acre planted to such an agricultural commodity; or
       (3) by the producers on a farm that the Secretary 
     determines has an established planting history of a specific 
     agricultural commodity specified in subsection (b)(3), except 
     that--
       (A) the quantity planted may not exceed the average annual 
     planting history of such agricultural commodity by the 
     producers on the farm in the 1991 through 1995 or 1998 
     through 2001 crop years (excluding any crop year in which no 
     plantings were made), as determined by the Secretary; and
       (B) direct payments and counter-cyclical payments shall be 
     reduced by an acre for each acre planted to such agricultural 
     commodity.
       (d) Planting Transferability Pilot Project.--
       (1) Pilot project authorized.--In addition to the 
     exceptions provided in subsection (c), the Secretary shall 
     carry out a pilot project in the State of Indiana under which 
     paragraphs (1) and (2) of subsection (b) shall not limit the 
     planting of tomatoes grown for processing on up to 10,000 
     base acres during each of the 2008 through 2012 crop years.
       (2) Contract and management requirements.-- To be eligible 
     for selection to participate in the pilot project, a producer 
     must--
       (A) have a contract to grow tomatoes for processing; and
       (B) agree to produce the tomatoes as part of a program of 
     crop rotation on the farm to achieve agronomic and pest and 
     disease management benefits.
       (3) Temporary reduction in base acres.--The base acres on a 
     farm for a crop year shall be reduced by an acre for each 
     acre planted to tomatoes under the pilot program.
       (4) Duration of reductions.--The reduction in the base 
     acres of a farm for a crop year under paragraph (3) shall 
     expire at the end of the crop year, unless the producers on 
     the farm elect to continue to participate in the pilot 
     project for the subsequent crop year.
       (5) Recalculation of base acres.--If the Secretary 
     recalculates base acres for a farm while the farm is included 
     in the pilot project, the planting and production of tomatoes 
     under the pilot project shall be considered to be the same as 
     the planting, prevented planting, or production of a covered 
     commodity. Nothing in this paragraph provides authority for 
     the Secretary to recalculate base acres for a farm.

     SEC. 1107. PERIOD OF EFFECTIVENESS.

       This subtitle shall be effective beginning with the 2008 
     crop year of each covered commodity through the 2012 crop 
     year.
  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

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

       (a) Nonrecourse Loans Available.--
       (1) Availability.--For each of the 2008 through 2012 crops 
     of each loan commodity, the Secretary shall make available to 
     producers on a farm nonrecourse marketing assistance loans 
     for loan commodities produced on the farm.
       (2) Terms and conditions.--The marketing assistance loans 
     shall be made under terms and conditions that are prescribed 
     by the Secretary and at the loan rate established under 
     section 1202 for the loan commodity.
       (b) Eligible Production.--The producers on a farm shall be 
     eligible for a marketing assistance loan under subsection (a) 
     for any quantity of a loan commodity produced on the farm.
       (c) Treatment of Certain Commingled Commodities.--In 
     carrying out this subtitle, the Secretary shall make loans to 
     producers on a farm that would be eligible to obtain a 
     marketing assistance loan, but for the fact the loan 
     commodity owned by the producers on the farm commingled with 
     loan commodities of other producers in facilities unlicensed 
     for the storage of agricultural commodities by the Secretary 
     or a State licensing authority, if the producers obtaining 
     the loan agree to immediately redeem the loan collateral in 
     accordance with section 166 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7286).
       (d) Compliance With Conservation and Wetlands 
     Requirements.--As a condition of the receipt of a marketing 
     assistance loan under subsection (a), the producer shall 
     comply with applicable conservation requirements under 
     subtitle B of title XII of the Food Security Act of 1985 (16 
     U.S.C. 3811 et seq.) and applicable wetland protection 
     requirements under subtitle C of title XII of the Act (16 
     U.S.C. 3821 et seq.) during the term of the loan.
       (e) Peanut-Related Loan Provisions.--
       (1) Options for obtaining loans.--A marketing assistance 
     loan for peanuts under this section and loan deficiency 
     payments for peanuts under section 1205 may be obtained at 
     option of the producers on a farm through--
       (A) a designated marketing association or marketing 
     cooperative of producers that is approved by the Secretary; 
     or
       (B) the Farm Service Agency.
       (2) Storage of loan peanuts.--As a condition on the 
     Secretary's approval of an individual or entity to provide 
     storage for peanuts for which a marketing assistance loan is 
     made under this section, the individual or entity shall 
     agree--
       (A) to provide such storage on a nondiscriminatory basis; 
     and
       (B) to comply with such additional requirements as the 
     Secretary considers appropriate to accomplish the purposes of 
     this section and promote fairness in the administration of 
     the benefits of this section.
       (3) Marketing.--A marketing association or cooperative may 
     market peanuts for which a loan is made under this section in 
     any manner that conforms to consumer needs, including the 
     separation of peanuts by type and quality.

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

       (a) Loan Rates.--The loan rate for a marketing assistance 
     loan under section 1201 for a loan commodity shall be equal 
     to the following:
       (1) In the case of wheat, $2.94 per bushel.
       (2) In the case of corn, $1.95 per bushel.
       (3) In the case of grain sorghum, $1.95 per bushel.
       (4) In the case of malt barley, $2.50 per bushel.
       (5) In the case of feed barley, $1.90 per bushel.
       (6) In the case of oats, $1.46 per bushel.
       (7) In the case of the base quality of upland cotton, $0.52 
     per pound.
       (8) In the case of extra long staple cotton, $0.7977 per 
     pound.
       (9) In the case of long grain rice, $6.50 per 
     hundredweight.
       (10) In the case of medium grain rice and short grain rice, 
     $6.50 per hundredweight.
       (11) In the case of soybeans, $5.00 per bushel.
       (12) In the case of other oilseeds, $0.1070 per pound for 
     each of the following kinds of oilseeds:
       (A) Sunflower seed.
       (B) Rapeseed.
       (C) Canola.
       (D) Safflower.
       (E) Flaxseed.
       (F) Mustard seed.
       (G) Crambe.
       (H) Sesame seed.
       (I) Other oilseeds designated by the Secretary.
       (13) In the case of dry peas, $5.40 per hundredweight.
       (14) In the case of lentils, $11.28 per hundredweight.
       (15) In the case of small chickpeas, $8.54 per 
     hundredweight.
       (16) In the case of peanuts, $355.00 per ton.
       (17) In the case of graded wool, $1.10 per pound.
       (18) In the case of nongraded wool, $0.40 per pound.
       (19) In the case of honey, $0.60 per pound.
       (20) In the case of mohair, $4.20 per pound.
       (b) Single County Loan Rate for Other Oilseeds.--The 
     Secretary shall establish a single loan rate in each county 
     for each kind of other oilseeds described in subsection 
     (a)(12).
       (c) Special Rules for Corn and Grain Sorghum.--
       (1) Single county and national average loan rate.--The 
     Secretary shall--
       (A) establish a single county loan rate for corn and grain 
     sorghum in each county;
       (B) establish a single national average loan rate for corn 
     and grain sorghum; and
       (C) determine each county loan rate and the national 
     average loan rate for corn and grain sorghum and any and all 
     other program loan rates applicable to corn and grain sorghum 
     from a data set that includes prices for both commodities.
       (2) Administration.--With respect to corn and grain 
     sorghum, the Secretary--
       (A) shall administer the applicable loan, marketing loan, 
     counter-cyclical payment, and related programs from a single 
     loan rate for corn and grain sorghum that is identical in 
     each individual county;
       (B) shall provide that any adjustment in the loan rate for 
     location shall be determined and applied on the basis of the 
     combined data set such that any transportation adjustment 
     shall be the same for corn and grain sorghum in each 
     individual county; and

[[Page 21454]]

       (C) may provide for adjustments for grade, type, and 
     quality as appropriate for the corn or grain sorghum involved 
     in each specific transaction.

     SEC. 1203. TERM OF LOANS.

       (a) Term of Loan.--In the case of each loan commodity, a 
     marketing assistance loan under section 1201 shall have a 
     term of 9 months beginning on the first day of the first 
     month after the month in which the loan is made.
       (b) Extensions Prohibited.--The Secretary may not extend 
     the term of a marketing assistance loan for any loan 
     commodity.

     SEC. 1204. REPAYMENT OF LOANS.

       (a) General Rule.--The Secretary shall permit the producers 
     on a farm to repay a marketing assistance loan under section 
     1201 for a loan commodity (other than upland cotton, long 
     grain rice, medium grain rice, short grain rice, extra long 
     staple cotton, and confectionery and each other kind of 
     sunflower seed (other than oil sunflower seed)) at the lesser 
     of the following:
       (1) The loan rate established for the commodity under 
     section 1202, plus interest (determined in accordance with 
     section 163 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7283)).
       (2) A rate that the Secretary determines will--
       (A) minimize potential loan forfeitures;
       (B) minimize the accumulation of stocks of the commodity by 
     the Federal Government;
       (C) minimize the cost incurred by the Federal Government in 
     storing the commodity;
       (D) allow the commodity produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally; and
       (E) minimize discrepancies in marketing loan benefits 
     across State boundaries and across county boundaries, if 
     applicable.
       (b) Repayment Rates for Upland Cotton and Rice.--The 
     Secretary shall permit producers to repay a marketing 
     assistance loan under section 1201 for upland cotton, long 
     grain rice, medium grain rice, and short grain rice at a rate 
     that is the lesser of--
       (1) the loan rate established for the commodity under 
     section 1202, plus interest (determined in accordance with 
     section 163 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7283)); or
       (2) the prevailing world market price for the commodity 
     (adjusted to United States quality and location), as 
     determined by the Secretary.
       (c) Repayment Rates for Extra Long Staple Cotton.--
     Repayment of a marketing assistance loan for extra long 
     staple cotton shall be at the loan rate established for the 
     commodity under section 1202, plus interest (determined in 
     accordance with section 163 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
       (d) Prevailing World Market Price.--For purposes of this 
     section and section 1207, the Secretary shall prescribe by 
     regulation--
       (1) a formula to determine the prevailing world market 
     price for upland cotton, which shall be based on the Far East 
     price of upland cotton;
       (2) a formula to determine the prevailing world market 
     price for--
       (A) long grain rice; and
       (B) medium and short grain rice;
       (3) a mechanism by which the Secretary will announce 
     periodically the prevailing world market price for upland 
     cotton, long grain rice, and medium and short grain rice; and
       (4) a mechanism by which the Secretary will make the 
     adjustments, required by subsection (e), to the prevailing 
     world market price for upland cotton, long grain rice, and 
     medium and short grain rice.
       (e) Adjustment of Prevailing World Market Price for Upland 
     Cotton and Rice.--
       (1) Rice.--The prevailing world market price for long 
     grain, medium grain, and short grain rice determined in 
     subsection (d) shall be adjusted to United States quality and 
     location.
       (2) Cotton.--The prevailing world market price for upland 
     cotton, determined in subsection (d) shall be--
       (A) adjusted to United States quality and location, with 
     such quality adjustment to include--
       (i) any existing United States loan schedule premiums for 
     Comparable United States Quality; and
       (ii) a reduction equal to any United States Premium Factor 
     to upland cotton of a quality higher than Middling (M) 1\3/
     32\-inch; and
       (B) adjusted to take into account average costs to market 
     the commodity, including average transportation costs, as 
     determined by the Secretary.
       (f) Additional Adjustment Authority Regarding Prevailing 
     World Market Price for Upland Cotton.--
       (1) In general.--During the period beginning on the date of 
     the enactment of this Act through July 31, 2013, the 
     Secretary may further adjust the prevailing world market 
     price for upland cotton (adjusted under subsection (d)) if 
     the Secretary determines such adjustment necessary--
       (A) to minimize potential loan forfeitures;
       (B) to minimize the accumulation of stocks of the commodity 
     by the Federal Government;
       (C) to allow the commodity produced in the United States to 
     be marketed freely and competitively, both domestically and 
     internationally;
       (D) to ensure that United States cotton is competitive in 
     world markets; and
       (E) to ensure an appropriate transition between current-
     crop and forward-crop price quotations, except that the 
     Secretary may use forward-crop price quotations prior to July 
     31 of the current marketing year only if there are less than 
     three current-crop price quotations and only if such forward-
     crop price quotation is the lowest such quotation available.
       (2) Guidelines for additional adjustment.--In further 
     adjusting the prevailing world market price for upland cotton 
     under this subsection, the Secretary shall establish a 
     mechanism for determining and announcing such adjustments in 
     order to avoid undue disruption in the United States market.
       (g) Repayment Rates for Confectionery and Other Kinds of 
     Sunflower Seeds.--The Secretary shall permit the producers on 
     a farm to repay a marketing assistance loan under section 
     1201 for confectionery and each other kind of sunflower seed 
     (other than oil sunflower seed) at a rate that is the lesser 
     of--
       (1) the loan rate established for the commodity under 
     section 1202, plus interest (determined in accordance with 
     section 163 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7283)); or
       (2) the repayment rate established for oil sunflower seed.
       (h) Quality Grades for Dry Peas, Lentils, and Small 
     Chickpeas.--The loan repayment rate for dry peas, lentils, 
     and small chickpeas shall be based on the quality grades for 
     the applicable commodity.

     SEC. 1205. LOAN DEFICIENCY PAYMENTS.

       (a) Availability of Loan Deficiency Payments.--
       (1) In general.--Except as provided in subsection (d), the 
     Secretary may make loan deficiency payments available to 
     producers on a farm that, although eligible to obtain a 
     marketing assistance loan under section 1201 with respect to 
     a loan commodity, agree to forgo obtaining the loan for the 
     commodity in return for loan deficiency payments under this 
     section.
       (2) Unshorn pelts, hay, and silage.--
       (A) Marketing assistance loans.--Subject to subparagraph 
     (B), nongraded wool in the form of unshorn pelts and hay and 
     silage derived from a loan commodity are not eligible for a 
     marketing assistance loan under section 1201.
       (B) Loan deficiency payment.--Effective for the 2008 
     through 2012 crop years, the Secretary may make loan 
     deficiency payments available under this section to producers 
     on a farm that produce unshorn pelts or hay and silage 
     derived from a loan commodity.
       (b) Computation.--A loan deficiency payment for a loan 
     commodity or commodity referred to in subsection (a)(2) shall 
     be computed by multiplying--
       (1) the payment rate determined under subsection (c) for 
     the commodity; by
       (2) the quantity of the commodity produced by the eligible 
     producers, excluding any quantity for which the producers 
     obtain a marketing assistance loan under section 1201.
       (c) Payment Rate.--
       (1) In general.--In the case of a loan commodity, the 
     payment rate shall be the amount by which--
       (A) the loan rate established under section 1202 for the 
     loan commodity; exceeds
       (B) the rate at which a marketing assistance loan for the 
     loan commodity may be repaid under section 1204.
       (2) Unshorn pelts.--In the case of unshorn pelts, the 
     payment rate shall be the amount by which--
       (A) the loan rate established under section 1202 for 
     ungraded wool; exceeds
       (B) the rate at which a marketing assistance loan for 
     ungraded wool may be repaid under section 1204.
       (3) Hay and silage.--In the case of hay or silage derived 
     from a loan commodity, the payment rate shall be the amount 
     by which--
       (A) the loan rate established under section 1202 for the 
     loan commodity from which the hay or silage is derived; 
     exceeds
       (B) the rate at which a marketing assistance loan for the 
     loan commodity may be repaid under section 1204.
       (d) Exception for Extra Long Staple Cotton.--This section 
     shall not apply with respect to extra long staple cotton.
       (e) Effective Date for Payment Rate Determination.--The 
     Secretary shall determine the amount of the loan deficiency 
     payment to be made under this section to the producers on a 
     farm with respect to a quantity of a loan commodity or 
     commodity referred to in subsection (a)(2) using the payment 
     rate in effect under subsection (c) as of the date the 
     producers request the payment.

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

       (a) Eligible Producers.--
       (1) In general.--Effective for the 2008 through 2012 crop 
     years, in the case of a producer that would be eligible for a 
     loan deficiency payment under section 1205 for wheat, barley, 
     or oats, but that elects to use acreage planted to the wheat, 
     barley, or oats for the grazing of livestock, the Secretary 
     shall make a payment to the producer under this section if 
     the producer enters into an agreement with the Secretary to 
     forgo any other harvesting of the wheat, barley, or oats on 
     that acreage.
       (2) Grazing of triticale acreage.--Effective for the 2008 
     through 2012 crop years, with respect to a producer on a farm 
     that uses acreage planted to triticale for the grazing of 
     livestock, the Secretary shall make a payment to the producer 
     under this section if the producer enters into an agreement 
     with the Secretary to forgo any other harvesting of triticale 
     on that acreage.
       (b) Payment Amount.--

[[Page 21455]]

       (1) In general.--The amount of a payment made under this 
     section to a producer on a farm described in subsection 
     (a)(1) shall be equal to the amount determined by 
     multiplying--
       (A) the loan deficiency payment rate determined under 
     section 1205(c) in effect, as of the date of the agreement, 
     for the county in which the farm is located; by
       (B) the payment quantity determined by multiplying--
       (i) the quantity of the grazed acreage on the farm with 
     respect to which the producer elects to forgo harvesting of 
     wheat, barley, or oats; and
       (ii) the payment yield in effect for the calculation of 
     direct payments under subtitle A with respect to that loan 
     commodity on the farm or, in the case of a farm without a 
     payment yield for that loan commodity, an appropriate yield 
     established by the Secretary in a manner consistent with 
     section 1102 of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 7912).
       (2) Grazing of triticale acreage.--The amount of a payment 
     made under this section to a producer on a farm described in 
     subsection (a)(2) shall be equal to the amount determined by 
     multiplying--
       (A) the loan deficiency payment rate determined under 
     section 1205(c) in effect for wheat, as of the date of the 
     agreement, for the county in which the farm is located; by
       (B) the payment quantity determined by multiplying--
       (i) the quantity of the grazed acreage on the farm with 
     respect to which the producer elects to forgo harvesting of 
     triticale; and
       (ii) the payment yield in effect for the calculation of 
     direct payments under subtitle A with respect to wheat on the 
     farm or, in the case of a farm without a payment yield for 
     wheat, an appropriate yield established by the Secretary in a 
     manner consistent with section 1102 of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 7912).
       (c) Time, Manner, and Availability of Payment.--
       (1) Time and manner.--A payment under this section shall be 
     made at the same time and in the same manner as loan 
     deficiency payments are made under section 1205.
       (2) Availability.--
       (A) In general.--The Secretary shall establish an 
     availability period for the payments authorized by this 
     section.
       (B) Certain commodities.--In the case of wheat, barley, and 
     oats, the availability period shall be consistent with the 
     availability period for the commodity established by the 
     Secretary for marketing assistance loans authorized by this 
     subtitle.
       (d) Prohibition on Crop Insurance Indemnity or Noninsured 
     Crop Assistance.--A 2008 through 2012 crop of wheat, barley, 
     oats, or triticale planted on acreage that a producer elects, 
     in the agreement required by subsection (a), to use for the 
     grazing of livestock in lieu of any other harvesting of the 
     crop shall not be eligible for an indemnity under the Federal 
     Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop 
     assistance under section 196 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7333).

     SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND 
                   COTTON.

       (a) Special Import Quota.--
       (1) Definition of special import quota.--In this 
     subsection, the term ``special import quota'' means a 
     quantity of imports that is not subject to the over-quota 
     tariff rate of a tariff-rate quota.
       (2) Establishment.--
       (A) In general.--The President shall carry out an import 
     quota program during the period beginning on the date of the 
     enactment of this Act through July 31, 2013, as provided in 
     this subsection.
       (B) Program requirements.--Whenever the Secretary 
     determines and announces that for any consecutive 4-week 
     period, the Friday through Thursday average price quotation 
     for the lowest-priced United States growth, as quoted for 
     Middling (M) 1\3/32\-inch cotton, delivered C/F Far East, 
     exceeds the Far East price there shall immediately be in 
     effect a special import quota.
       (3) Quantity.--The quota shall be equal to 1 week's 
     consumption of upland cotton by domestic mills at the 
     seasonally adjusted average rate of the most recent 3 months 
     for which data are available.
       (4) Application.--The quota shall apply to upland cotton 
     purchased not later than 90 days after the date of the 
     Secretary's announcement under paragraph (1) and entered into 
     the United States not later than 180 days after that date.
       (5) Overlap.--A special quota period may be established 
     that overlaps any existing quota period if required by 
     paragraph (2), except that a special quota period may not be 
     established under this subsection if a quota period has been 
     established under subsection (b).
       (6) Preferential tariff treatment.--The quantity under a 
     special import quota shall be considered to be an in-quota 
     quantity for purposes of--
       (A) section 213(d) of the Caribbean Basin Economic Recovery 
     Act (19 U.S.C. 2703(d));
       (B) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       (C) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and
       (D) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule.
       (7) Limitation.--The quantity of cotton entered into the 
     United States during any marketing year under the special 
     import quota established under this subsection may not exceed 
     the equivalent of 10 week's consumption of upland cotton by 
     domestic mills at the seasonally adjusted average rate of the 
     3 months immediately preceding the first special import quota 
     established in any marketing year.
       (b) Limited Global Import Quota for Upland Cotton.--
       (1) Definitions.--In this subsection:
       (A) Supply.--The term ``supply'' means, using the latest 
     official data of the Bureau of the Census, the Department of 
     Agriculture, and the Department of the Treasury--
       (i) the carry-over of upland cotton at the beginning of the 
     marketing year (adjusted to 480-pound bales) in which the 
     quota is established;
       (ii) production of the current crop; and
       (iii) imports to the latest date available during the 
     marketing year.
       (B) Demand.--The term ``demand'' means--
       (i) the average seasonally adjusted annual rate of domestic 
     mill consumption during the most recent 3 months for which 
     data are available; and
       (ii) the larger of--

       (I) average exports of upland cotton during the preceding 6 
     marketing years; or
       (II) cumulative exports of upland cotton plus outstanding 
     export sales for the marketing year in which the quota is 
     established.

       (C) Limited global import quota.--The term ``limited global 
     import quota'' means a quantity of imports that is not 
     subject to the over-quota tariff rate of a tariff-rate quota.
       (2) Program.--The President shall carry out an import quota 
     program that provides that whenever the Secretary determines 
     and announces that the average price of the base quality of 
     upland cotton, as determined by the Secretary, in the 
     designated spot markets for a month exceeded 130 percent of 
     the average price of the quality of cotton in the markets for 
     the preceding 36 months, notwithstanding any other provision 
     of law, there shall immediately be in effect a limited global 
     import quota subject to the following conditions:
       (A) Quantity.--The quantity of the quota shall be equal to 
     21 days of domestic mill consumption of upland cotton at the 
     seasonally adjusted average rate of the most recent 3 months 
     for which data are available.
       (B) Quantity if prior quota.--If a quota has been 
     established under this subsection during the preceding 12 
     months, the quantity of the quota next established under this 
     subsection shall be the smaller of 21 days of domestic mill 
     consumption calculated under subparagraph (A) or the quantity 
     required to increase the supply to 130 percent of the demand.
       (C) Preferential tariff treatment.--The quantity under a 
     limited global import quota shall be considered to be an in-
     quota quantity for purposes of--
       (i) section 213(d) of the Caribbean Basin Economic Recovery 
     Act (19 U.S.C. 2703(d));
       (ii) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       (iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and
       (iv) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule.
       (D) Quota entry period.--When a quota is established under 
     this subsection, cotton may be entered under the quota during 
     the 90-day period beginning on the date the quota is 
     established by the Secretary.
       (3) No overlap.--Notwithstanding paragraph (2), a quota 
     period may not be established that overlaps an existing quota 
     period or a special quota period established under subsection 
     (a).
       (c) Economic Adjustment Assistance to Users of Upland 
     Cotton.--
       (1) Issuance of marketing certificates or cash payments.--
     During the period beginning on the date of the enactment of 
     this Act through July 31, 2013, the Secretary shall issue, on 
     a monthly basis, marketing certificates or cash payments, at 
     the option of the recipient, to domestic users of upland 
     cotton for all documented use of upland cotton during the 
     previous monthly period regardless of the origin of the 
     upland cotton.
       (2) Value of certificates or payments.--The value of the 
     marketing certificates or cash payments shall be 4 cents per 
     pound.
       (3) Allowable purposes.--Economic adjustment assistance 
     under this subsection shall be made available only to 
     domestic users of upland cotton that certify that such funds 
     shall be used only for acquisition, construction, 
     installation, modernization, development, conversion, or 
     expansion of land, plant, buildings, equipment, facilities, 
     or machinery.
       (4) Review or audit.--The Secretary may conduct such review 
     or audit of the records of a domestic user under this 
     subsection as determined necessary to carry out the 
     provisions of this subsection.
       (5) Improper use of assistance.--If the Secretary 
     determines, after a review or audit of the records of the 
     domestic user, that economic adjustment assistance under this 
     subsection was not used for the purposes specified in 
     paragraph (3), the domestic user shall be liable to repay 
     such assistance to the Secretary, plus interest, as 
     determined by the Secretary, and shall be ineligible to 
     participate in the program established by this subsection for 
     a period of 12 months following the determination of the 
     Secretary.

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

       (a) Competitiveness Program.--Notwithstanding any other 
     provision of law, during the period beginning on the date of 
     the enactment

[[Page 21456]]

     of this Act through July 31, 2013, the Secretary shall carry 
     out a program--
       (1) to maintain and expand the domestic use of extra long 
     staple cotton produced in the United States;
       (2) to increase exports of extra long staple cotton 
     produced in the United States; and
       (3) to ensure that extra long staple cotton produced in the 
     United States remains competitive in world markets.
       (b) Payments Under Program; Trigger.--Under the program, 
     the Secretary shall make payments available under this 
     section whenever--
       (1) for a consecutive 4-week period, the world market price 
     for the lowest priced competing growth of extra long staple 
     cotton (adjusted to United States quality and location and 
     for other factors affecting the competitiveness of such 
     cotton), as determined by the Secretary, is below the 
     prevailing United States price for a competing growth of 
     extra long staple cotton; and
       (2) the lowest priced competing growth of extra long staple 
     cotton (adjusted to United States quality and location and 
     for other factors affecting the competitiveness of such 
     cotton), as determined by the Secretary, is less than 134 
     percent of the loan rate for extra long staple cotton.
       (c) Eligible Recipients.--The Secretary shall make payments 
     available under this section to domestic users of extra long 
     staple cotton produced in the United States and exporters of 
     extra long staple cotton produced in the United States that 
     enter into an agreement with the Commodity Credit Corporation 
     to participate in the program under this section.
       (d) Payment Amount.--Payments under this section shall be 
     based on the amount of the difference in the prices referred 
     to in subsection (b)(1) during the fourth week of the 
     consecutive 4-week period multiplied by the amount of 
     documented purchases by domestic users and sales for export 
     by exporters made in the week following such a consecutive 4-
     week period.
       (e) Form of Payment.--Payments under this section shall be 
     made through the issuance of cash or marketing certificates, 
     at the option of eligible recipients of the payments.

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

       (a) High Moisture Feed Grains.--
       (1) Definition of high moisture state.--In this subsection, 
     the term ``high moisture state'' means corn or grain sorghum 
     having a moisture content in excess of Commodity Credit 
     Corporation standards for marketing assistance loans made by 
     the Secretary under section 1201.
       (2) Recourse loans available.--For each of the 2008 through 
     2012 crops of corn and grain sorghum, the Secretary shall 
     make available recourse loans, as determined by the 
     Secretary, to producers on a farm that--
       (A) normally harvest all or a portion of their crop of corn 
     or grain sorghum in a high moisture state;
       (B) present--
       (i) certified scale tickets from an inspected, certified 
     commercial scale, including a licensed warehouse, feedlot, 
     feed mill, distillery, or other similar entity approved by 
     the Secretary, pursuant to regulations issued by the 
     Secretary; or
       (ii) field or other physical measurements of the standing 
     or stored crop in regions of the United States, as determined 
     by the Secretary, that do not have certified commercial 
     scales from which certified scale tickets may be obtained 
     within reasonable proximity of harvest operation;
       (C) certify that they were the owners of the feed grain at 
     the time of delivery to, and that the quantity to be placed 
     under loan under this subsection was in fact harvested on the 
     farm and delivered to, a feedlot, feed mill, or commercial or 
     on-farm high-moisture storage facility, or to a facility 
     maintained by the users of corn and grain sorghum in a high 
     moisture state; and
       (D) comply with deadlines established by the Secretary for 
     harvesting the corn or grain sorghum and submit applications 
     for loans under this subsection within deadlines established 
     by the Secretary.
       (3) Eligibility of acquired feed grains.--A loan under this 
     subsection shall be made on a quantity of corn or grain 
     sorghum of the same crop acquired by the producer equivalent 
     to a quantity determined by multiplying--
       (A) the acreage of the corn or grain sorghum in a high 
     moisture state harvested on the producer's farm; by
       (B) the lower of the farm program payment yield used to 
     make counter-cyclical payments under subtitle A or the actual 
     yield on a field, as determined by the Secretary, that is 
     similar to the field from which the corn or grain sorghum was 
     obtained.
       (b) Recourse Loans Available for Seed Cotton.--For each of 
     the 2008 through 2012 crops of upland cotton and extra long 
     staple cotton, the Secretary shall make available recourse 
     seed cotton loans, as determined by the Secretary, on any 
     production.
       (c) Repayment Rates.--Repayment of a recourse loan made 
     under this section shall be at the loan rate established for 
     the commodity by the Secretary, plus interest (determined in 
     accordance with section 163 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7283)).

     SEC. 1210. DEADLINE FOR REPAYMENT OF MARKETING ASSISTANCE 
                   LOAN FOR PEANUTS.

       (a) June 30 Redemption Deadline.--Notwithstanding any other 
     provision of law, a marketing assistance loan for peanuts may 
     not be redeemed after June 30 of the year subsequent to the 
     year in which the peanuts were harvested.
       (b) Effect of Failure to Redeem.--A marketing assistance 
     loan for peanuts that is not redeemed before the deadline 
     imposed by subsection (a) shall be deemed to be forfeited to 
     the Commodity Credit Corporation.

     SEC. 1211. COMMODITY QUALITY INCENTIVE PAYMENTS FOR HEALTHY 
                   OILSEEDS.

       (a) Incentive Payments Required.--Subject to the 
     availability of funds for this purpose, the Secretary shall 
     provide commodity quality incentive payments during the 2009 
     through 2013 crop years for the production of oilseeds with 
     specialized traits that enhance human health, as determined 
     by the Secretary.
       (b) Covered Oilseeds.--The Secretary shall make payments 
     under this section only for the production of an oilseed that 
     has, as determined by the Secretary--
       (1) been demonstrated to reduce or eliminate the need to 
     partially hydrogenate the oil derived from the oilseed for 
     use in human consumption; and
       (2) 1 or more traits for which compelling impediments to 
     commercialization have been identified.
       (c) Request for Proposals.--
       (1) Issuance.--If funds are available to carry out this 
     section for a crop year, the Secretary shall issue a request 
     for proposals for payments under this section.
       (2) Multiyear proposals.--An entity may submit a multiyear 
     proposal for payments under this section.
       (3) Content of proposals.--A proposal for payments under 
     this section shall include a description of--
       (A) each trait of the oilseed described in subsection 
     (b)(2) and the value of the trait as a matter of public 
     policy;
       (B) the projected market size and value of the trait;
       (C) the projected impact of the proposal on--
       (i) the future price of loan commodities; and
       (ii) if appropriate, on Federal Government farm program 
     outlays to support loan commodities;
       (D) a range for the amount of total per bushel premiums to 
     be paid to producers;
       (E) a per bushel amount of incentive payments requested for 
     each year under this section that--
       (i) does not exceed \1/3\ of the total premium offered for 
     any year; and
       (ii) declines over time;
       (F) the period of time, of not to exceed 4 years, during 
     which incentive payments are to be provided to producers; and
       (G) the targeted total quantity of production and estimated 
     acres needed to produce the targeted quantity for each year 
     under this section.
       (d) Contracts for Production.--
       (1) In general.--The Secretary shall approve successful 
     proposals submitted under subsection (c) on a timely basis so 
     as to allow successful applicants to offer production 
     contracts to producers beginning in advance of the spring 
     planting season for the 2009 crop year.
       (2) Multiyear contracts.--A successful applicant may enter 
     into a multiyear contract with--
       (A) a specific group of producers; or
       (B) various groups of producers.
       (3) Timing of payments.--The Secretary shall make payments 
     under this section after the Secretary receives documentation 
     that the total premium offered for crops produced under a 
     contract (including the amount of incentive payments) has 
     been made to covered producers.
       (e) Administration.--If funding provided for a crop year is 
     not fully allocated under the initial request for proposals 
     under subsection (c), the Secretary shall issue additional 
     requests for proposals for subsequent years under this 
     section.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section for each of fiscal years 2009 through 2013.
                           Subtitle C--Sugar

     SEC. 1301. SUGAR PROGRAM.

       (a) In General.--Section 156 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended 
     to read as follows:

     ``SEC. 156. SUGAR PROGRAM.

       ``(a) Sugarcane.--The Secretary shall make loans for raw 
     cane sugar available to processors of domestically grown 
     sugarcane at a rate equal to 18.5 cents per pound for each of 
     the 2008 through 2012 crop years.
       ``(b) Sugar Beets.--The Secretary shall make loans for 
     refined beet sugar available to processors of domestically 
     grown sugar beets at a rate equal to 23.5 cents per pound for 
     each of the 2008 through 2012 crop years.
       ``(c) Term of Loans.--
       ``(1) In general.--A loan under this section during any 
     fiscal year shall be made available not earlier than the 
     beginning of the fiscal year and shall mature at the earlier 
     of--
       ``(A) the end of the 9-month period beginning on the first 
     day of the first month after the month in which the loan is 
     made; or
       ``(B) the end of the fiscal year in which the loan is made.
       ``(2) Supplemental loans.--In the case of a loan made under 
     this section in the last 3 months of a fiscal year, the 
     processor may repledge the sugar as collateral for a second 
     loan in the subsequent fiscal year, except that the second 
     loan shall--
       ``(A) be made at the loan rate in effect at the time the 
     first loan was made; and
       ``(B) mature in 9 months less the quantity of time that the 
     first loan was in effect.

[[Page 21457]]

       ``(d) Loan Type; Processor Assurances.--
       ``(1) Nonrecourse loans.--The Secretary shall carry out 
     this section through the use of nonrecourse loans.
       ``(2) Processor assurances.--
       ``(A) In general.--The Secretary shall obtain from each 
     processor that receives a loan under this section such 
     assurances as the Secretary considers adequate to ensure that 
     the processor will provide payments to producers that are 
     proportional to the value of the loan received by the 
     processor for the sugar beets and sugarcane delivered by 
     producers to the processor.
       ``(B) Minimum payments.--
       ``(i) In general.--Subject to clause (ii), the Secretary 
     may establish appropriate minimum payments for purposes of 
     this paragraph.
       ``(ii) Limitation.--In the case of sugar beets, the minimum 
     payment established under clause (i) shall not exceed the 
     rate of payment provided for under the applicable contract 
     between a sugar beet producer and a sugar beet processor.
       ``(3) Administration.--The Secretary may not impose or 
     enforce any prenotification requirement, or similar 
     administrative requirement not otherwise in effect on May 13, 
     2002, that has the effect of preventing a processor from 
     electing to forfeit the loan collateral (of an acceptable 
     grade and quality) on the maturity of the loan.
       ``(e) Loans for In-Process Sugar.--
       ``(1) Definition of in-process sugars and syrups.--In this 
     subsection, the term `in-process sugars and syrups' does not 
     include raw sugar, liquid sugar, invert sugar, invert syrup, 
     or other finished product that is otherwise eligible for a 
     loan under subsection (a) or (b).
       ``(2) Availability.--The Secretary shall make nonrecourse 
     loans available to processors of a crop of domestically grown 
     sugarcane and sugar beets for in-process sugars and syrups 
     derived from the crop.
       ``(3) Loan rate.--The loan rate shall be equal to 80 
     percent of the loan rate applicable to raw cane sugar or 
     refined beet sugar, as determined by the Secretary on the 
     basis of the source material for the in-process sugars and 
     syrups.
       ``(4) Further processing on forfeiture.--
       ``(A) In general.--As a condition of the forfeiture of in-
     process sugars and syrups serving as collateral for a loan 
     under paragraph (2), the processor shall, within such 
     reasonable time period as the Secretary may prescribe and at 
     no cost to the Commodity Credit Corporation, convert the in-
     process sugars and syrups into raw cane sugar or refined beet 
     sugar of acceptable grade and quality for sugars eligible for 
     loans under subsection (a) or (b).
       ``(B) Transfer to corporation.--Once the in-process sugars 
     and syrups are fully processed into raw cane sugar or refined 
     beet sugar, the processor shall transfer the sugar to the 
     Commodity Credit Corporation.
       ``(C) Payment to processor.--On transfer of the sugar, the 
     Secretary shall make a payment to the processor in an amount 
     equal to the amount obtained by multiplying--
       ``(i) the difference between--

       ``(I) the loan rate for raw cane sugar or refined beet 
     sugar, as appropriate; and
       ``(II) the loan rate the processor received under paragraph 
     (3); by

       ``(ii) the quantity of sugar transferred to the Secretary.
       ``(5) Loan conversion.--If the processor does not forfeit 
     the collateral as described in paragraph (4), but instead 
     further processes the in-process sugars and syrups into raw 
     cane sugar or refined beet sugar and repays the loan on the 
     in-process sugars and syrups, the processor may obtain a loan 
     under subsection (a) or (b) for the raw cane sugar or refined 
     beet sugar, as appropriate.
       ``(6) Term of loan.--The term of a loan made under this 
     subsection for a quantity of in-process sugars and syrups, 
     when combined with the term of a loan made with respect to 
     the raw cane sugar or refined beet sugar derived from the in-
     process sugars and syrups, may not exceed 9 months, 
     consistent with subsection (c).
       ``(f) Avoiding Forfeitures; Corporation Inventory 
     Disposition.--
       ``(1) In general.--Subject to subsection (d)(3), to the 
     maximum extent practicable, the Secretary shall operate the 
     program established under this section at no cost to the 
     Federal Government by avoiding the forfeiture of sugar to the 
     Commodity Credit Corporation.
       ``(2) Inventory disposition.--
       ``(A) In general.--To carry out paragraph (1), the 
     Commodity Credit Corporation may accept bids to obtain raw 
     cane sugar or refined beet sugar in the inventory of the 
     Commodity Credit Corporation from (or otherwise make 
     available such commodities, on appropriate terms and 
     conditions, to) processors of sugarcane and processors of 
     sugar beets (acting in conjunction with the producers of the 
     sugarcane or sugar beets processed by the processors) in 
     return for the reduction of production of raw cane sugar or 
     refined beet sugar, as appropriate.
       ``(B) Bioenergy feedstock.--If a reduction in the quantity 
     of production accepted under subparagraph (A) involves sugar 
     beets or sugarcane that has already been planted, the sugar 
     beets or sugarcane so planted may not be used for any 
     commercial purpose other than as a bioenergy feedstock.
       ``(C) Additional authority.--The authority provided under 
     this paragraph is in addition to any authority of the 
     Commodity Credit Corporation under any other law.
       ``(g) Information Reporting.--
       ``(1) Duty of processors and refiners to report.--A 
     sugarcane processor, cane sugar refiner, and sugar beet 
     processor shall furnish the Secretary, on a monthly basis, 
     such information as the Secretary may require to administer 
     sugar programs, including the quantity of purchases of 
     sugarcane, sugar beets, and sugar, and production, 
     importation, distribution, and stock levels of sugar.
       ``(2) Duty of producers to report.--
       ``(A) Proportionate share states.--As a condition of a loan 
     made to a processor for the benefit of a producer, the 
     Secretary shall require each producer of sugarcane located in 
     a State (other than the Commonwealth of Puerto Rico) in which 
     there are in excess of 250 producers of sugarcane to report, 
     in the manner prescribed by the Secretary, the sugarcane 
     yields and acres planted to sugarcane of the producer.
       ``(B) Other states.--The Secretary may require each 
     producer of sugarcane or sugar beets not covered by 
     subparagraph (A) to report, in a manner prescribed by the 
     Secretary, the yields of, and acres planted to, sugarcane or 
     sugar beets, respectively, of the producer.
       ``(3) Duty of importers to report.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall require an importer of sugars, syrups, or 
     molasses to be used for human consumption or to be used for 
     the extraction of sugar for human consumption to report, in 
     the manner prescribed by the Secretary, the quantities of the 
     products imported by the importer and the sugar content or 
     equivalent of the products.
       ``(B) Tariff-rate quotas.--Subparagraph (A) shall not apply 
     to sugars, syrups, or molasses that are within the quantities 
     of tariff-rate quotas that are subject to the lower rate of 
     duties.
       ``(4) Collection of information on mexico.--
       ``(A) Collection.--The Secretary shall collect--
       ``(i) information on the production, consumption, stocks 
     and trade of sugar in Mexico, including United States exports 
     of sugar to Mexico; and
       ``(ii) publicly available information on Mexican 
     production, consumption, and trade of high fructose corn 
     syrups, including United States exports of high fructose corn 
     syrups to Mexico.
       ``(B) Publication.--The data collected under subparagraph 
     (A) shall be published in each edition of the World 
     Agricultural Supply and Demand Estimates.
       ``(5) Penalty.--Any person willfully failing or refusing to 
     furnish the information required to be reported by paragraph 
     (1), (2), or (3), or furnishing willfully false information, 
     shall be subject to a civil penalty of not more than $10,000 
     for each such violation.
       ``(6) Monthly reports.--Taking into consideration the 
     information received under this subsection, the Secretary 
     shall publish on a monthly basis composite data on 
     production, imports, distribution, and stock levels of sugar.
       ``(h) Substitution of Refined Sugar.--For purposes of 
     Additional U.S. Note 6 to chapter 17 of the Harmonized Tariff 
     Schedule of the United States and the reexport programs and 
     polyhydric alcohol program administered by the Secretary, all 
     refined sugars (whether derived from sugar beets or 
     sugarcane) produced by cane sugar refineries and beet sugar 
     processors shall be fully substitutable for the export of 
     sugar and sugar-containing products under those programs.
       ``(i) Effective Period.--This section shall be effective 
     only for the 2008 through 2012 crops of sugar beets and 
     sugarcane.''
       (b) Transition.--The Secretary of Agriculture shall make 
     loans for raw cane sugar and refined beet sugar available for 
     the 2007 crop year on the terms and conditions provided in 
     section 156 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7272), as in effect on the day before 
     the date of the enactment of this Act.

     SEC. 1302. UNITED STATES MEMBERSHIP IN THE INTERNATIONAL 
                   SUGAR ORGANIZATION.

       The Secretary of Agriculture shall work with the Secretary 
     of State to restore United States membership in the 
     International Sugar Organization within one year after the 
     date of enactment of this Act.

     SEC. 1303. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

       (a) Definition of Human Consumption.--Section 359a of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) is 
     amended--
       (1) by redesignating paragraphs (1) through (4) as 
     paragraphs (2) through (5), respectively; and
       (2) by inserting before paragraph (2), as so redesignated, 
     the following new paragraph (1):
       ``(1) Human consumption.--The term `human consumption', 
     when used in the context of a reference to sugar (whether in 
     the form of sugar, in-process sugar, syrup, molasses, or in 
     some other form) for human consumption, includes sugar for 
     use in human food, beverages, or similar products.''.
       (b) Sugar Allotments.--Section 359b of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359bb) is amended to read 
     as follows:

     ``SEC. 359B. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

       ``(a) Sugar Estimates.--
       ``(1) In general.--Not later than August 1 before the 
     beginning of each of the 2008 through 2012 crop years for 
     sugarcane and sugar beets, the Secretary shall estimate--
       ``(A) the quantity of sugar that will be subject to human 
     consumption in the United States during the crop year;
       ``(B) the quantity of sugar that would provide for 
     reasonable carryover stocks;
       ``(C) the quantity of sugar that will be available from 
     carry-in stocks for human consumption in the United States 
     during the crop year;

[[Page 21458]]

       ``(D) the quantity of sugar that will be available from the 
     domestic processing of sugarcane, sugar beets, and in-process 
     beet sugar; and
       ``(E) the quantity of sugars, syrups, and molasses that 
     will be imported for human consumption or to be used for the 
     extraction of sugar for human consumption in the United 
     States during the crop year, whether such articles are under 
     a tariff-rate quota or are in excess or outside of a tariff-
     rate quota.
       ``(2) Exclusion.--The estimates under this subsection shall 
     not apply to sugar imported for the production of polyhydric 
     alcohol or to any sugar refined and reexported in refined 
     form or in products containing sugar.
       ``(3) Reestimates.--The Secretary shall make reestimates of 
     sugar consumption, stocks, production, and imports for a crop 
     year as necessary, but no later than the beginning of each of 
     the second through fourth quarters of the crop year.
       ``(b) Sugar Allotments.--
       ``(1) Establishment.--By the beginning of each crop year, 
     the Secretary shall establish for that crop year appropriate 
     allotments under section 359c for the marketing by processors 
     of sugar processed from sugar cane or sugar beets or in-
     process beet sugar (whether such sugar beets or in-process 
     beet sugar was produced domestically or imported) at a level 
     sufficient to maintain raw and refined sugar prices above 
     forfeiture levels so that there will be no forfeitures of 
     sugar to the Commodity Credit Corporation under the loan 
     program for sugar established under section 156 of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7272).
       ``(2) Minimum.--The level of allotments established under 
     paragraph (1) may not be less than 85 percent of the 
     estimated quantity of sugar for domestic human consumption 
     for the crop year.
       ``(3) Products.--The Secretary may include sugar products, 
     whose majority content is sucrose, in the allotments 
     established under paragraph (1) if the Secretary determines 
     that the inclusion of such sugar products is appropriate for 
     controlling the supply of sugar for human consumption.
       ``(c) Coverage of Allotments.--
       ``(1) In general.--The marketing allotments provided for in 
     this part shall apply to the marketing by processors of sugar 
     intended for domestic human consumption that has been 
     processed from sugar cane or sugar beets or in-process beet 
     sugar (whether such sugar beets or in-process beet sugar was 
     produced domestically or imported).
       ``(2) Exceptions.--Consistent with the administration of 
     marketing allotments during crop years 2002 through 2007, the 
     marketing allotments shall not apply to sugar sold--
       ``(A) to facilitate the exportation of such sugar to a 
     foreign country, except that such exports of sugar shall not 
     be eligible to receive credits under re-export programs for 
     refined sugar or sugar containing products administered by 
     the Secretary;
       ``(B) to enable another processor to fulfill an allocation 
     established for such other processor, except that such sales 
     must be made before May 1 and must be reported to the 
     Secretary; or
       ``(C) for uses other than domestic human consumption.
       ``(d) Prohibitions.--
       ``(1) In general.--During any crop year or portion thereof 
     for which marketing allotments have been established, no 
     processor of sugar beets or sugarcane shall market for 
     domestic human consumption a quantity of sugar in excess of 
     the allocation established for such processor, except to 
     enable another processor to fulfill an allocation established 
     for such other processor or to facilitate the exportation of 
     such sugar.
       ``(2) Civil penalty.--Any processor who knowingly violates 
     paragraph (1) shall be liable to the Commodity Credit 
     Corporation for a civil penalty in an amount equal to 3 times 
     the United States market value, at the time of the commission 
     of the violation, of that quantity of sugar involved in the 
     violation.
       ``(3) Definition of market.--For purposes of this part, the 
     term `market' shall mean to sell or otherwise dispose of in 
     commerce in the United States, including--
       ``(A) the forfeiture of sugar under the loan program for 
     sugar under section 156 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7272) and such 
     forfeited sugar shall be deemed to have been marketed during 
     the crop year in which the loan was made;
       ``(B) with respect to any integrated processor and refiner, 
     the movement of raw cane sugar into the refining process; and
       ``(C) the sale of sugar for the production of ethanol or 
     other bioenergy product, if such ethanol or bioenergy product 
     is the subject of a payment under the feedstock flexibility 
     program for bioenergy producers.''.
       (c) Establishment.--Section 359c of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359cc) is amended--
       (1) by striking subsection (b) and inserting the following 
     new subsection:
       ``(b) Overall Allotment Quantity.--
       ``(1) In general.--The Secretary shall establish the 
     overall quantity of sugar to be allotted for the crop year 
     (in this part referred to as the `overall allotment 
     quantity') at a level sufficient to maintain raw and refined 
     sugar prices above forfeiture levels to avoid the forfeiture 
     of sugar to the Commodity Credit Corporation.
       ``(2) Minimum.--The overall allotment quantity established 
     under paragraph (1) may not be less than 85 percent of the 
     estimated quantity of sugar for domestic human consumption 
     for the crop year.
       ``(3) Adjustment.--Subject to paragraphs (1) and (2), the 
     Secretary shall adjust the overall allotment quantity--
       ``(A) to maintain raw and refined sugar prices above 
     forfeiture levels to avoid the forfeiture of sugar to the 
     Commodity Credit Corporation; and
       ``(B) to maintain adequate supplies of raw and refined 
     sugar in the domestic market.'';
       (2) in subsection (d)(2), by inserting before the period 
     the following: ``or in-process beet sugar'';
       (3) in subsection (g)(1), by inserting at the end the 
     following new sentence: ``However, the overall allotment 
     quantity may not be reduced to a quantity less than 85 
     percent of the estimated quantity of sugar for domestic human 
     consumption for the crop year.''; and
       (4) by striking subsection (h).
       (d) Allocation of Marketing Allotments.--Section 359d(b) of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd(b)) 
     is amended--
       (1) in paragraph (1)(F), by striking ``Except as otherwise 
     provided in section 359f(c)(8), if'' and inserting ``If''; 
     and
       (2) in paragraph (2), by striking subparagraphs (H) and (I) 
     and inserting the following new subparagraph:
       ``(H) New entrants starting production, reopening, or 
     acquiring an existing factory with production history.--
       ``(i) Allocation for a new entrant that has constructed a 
     new factory or reopened a factory that was not operating 
     since before 1998.--If a New Entrant constructs a new sugar 
     beet processing factory, or acquires and reopens a sugar beet 
     processing factory that last processed sugar beets prior to 
     the 1998 crop year and there is no allocation currently 
     associated with the factory, the Secretary shall--

       ``(I) assign an allocation for beet sugar to the New 
     Entrant that provides a fair and equitable distribution of 
     the allocations for beet sugar in order to enable the New 
     Entrant to achieve a factory utilization rate comparable to 
     the factory utilization rates of other similarly situated 
     processors; and
       ``(II) reduce the allocations for beet sugar of all other 
     processors on a pro rata basis to reflect the allocation to 
     the New Entrant.

       ``(ii) Allocation for a new entrant that has acquired an 
     existing factory with a production history.--If a New Entrant 
     acquires an existing factory that has processed sugar beets 
     from the 1998 or later crop years and has a production 
     history, then, upon the mutual agreement of the New Entrant 
     and the company currently holding the allocation associated 
     with the factory, the Secretary shall transfer to the New 
     Entrant a portion of allocation of the current allocation 
     holder to reflect the historical contribution of the 
     production of the acquired factory to the total allocation of 
     the current allocation holder. In the absence of mutual 
     agreement, the new entrant shall be ineligible for a beet 
     sugar allocation.
       ``(iii) Appeals.--Any decision made under this subsection 
     may be appealed to the Secretary pursuant to section 359i.
       ``(iv) Definition.--In this subparagraph, the term `New 
     Entrant' means an individual, corporation, or other entity 
     that does not have an allocation of the beet sugar allotment 
     under this part, is not affiliated with any other individual, 
     corporation, or entity that has an allocation of beet sugar 
     under this part (known as a `third party'), and will process 
     sugar beets produced by sugar beet growers under contract 
     with the New Entrant for the production of sugar at the new 
     or re-opened factory that is the basis for the New Entrant 
     allocation.
       ``(v) Affiliation.--For purposes of this subparagraph, a 
     New Entrant and a third party shall be deemed to be 
     `affiliated' if--

       ``(I) the third party has an ownership interest in the New 
     Entrant;
       ``(II) the New Entrant and the third party have owners in 
     common;
       ``(III) the third party has the ability to exercise control 
     over the New Entrant by organizational rights, contractual 
     rights, or any other means;
       ``(IV) the third party has a contractual relationship with 
     the New Entrant by which the New Entrant will make use of the 
     facilities or assets of such third party; or
       ``(V) any other similar circumstance exists by which the 
     Secretary determines that the New Entrant and the third party 
     are affiliated.''.

       (e) Reassignment of Deficits.--Section 359e(b) of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is 
     amended in both paragraphs (1)(D) and (2)(C) by inserting 
     ``of raw cane sugar'' after ``imports''.
       (f) Provisions Applicable to Producers.--Section 359f(c) of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)) 
     is amended--
       (1) in paragraph (2), by striking ``quantity of sugarcane'' 
     and inserting ``quantity of sugar produced from sugarcane'';
       (2) in paragraph (5)(C), by inserting ``for sugar'' before 
     ``in excess of the farm's proportionate share'';
       (3) in paragraph (7), by striking ``amount of sugarcane'' 
     and inserting ``amount of sugar from sugarcane''; and
       (4) by striking paragraph (8) and inserting the following 
     new paragraph:
       ``(8) Seed definition.--In this subsection, the term `seed' 
     includes only varieties of seed dedicated to the production 
     of sugarcane from which is produced sugar for human 
     consumption, and excludes seed of high-fiber cane varieties 
     dedicated to other uses, as determined by the Secretary.''.
       (g) Special Rules.--Section 359g of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359gg) is amended--

[[Page 21459]]

       (1) by striking subsection (a) and inserting the following 
     new subsection:
       ``(a) Transfer of Acreage Base History.--
       ``(1) Transfer authorized.--For the purpose of establishing 
     proportionate shares for sugarcane farms under section 
     359f(c), the Secretary, on application of any producer, with 
     the written consent of all owners of a farm, may transfer the 
     acreage base history of the farm to any other parcels of land 
     of the applicant.
       ``(2) Converted acreage base.--
       ``(A) In general.--Sugarcane base acreage established under 
     section 359f(c) that has been or is converted to non-
     agricultural use on or after May 13, 2002, may be transferred 
     to other land suitable for the production of sugarcane that 
     can be delivered to a processor in a proportionate share 
     State in accordance with this paragraph.
       ``(B) Notification.--Not later than 90 days after the date 
     of the enactment of the Farm, Nutrition, and Bioenergy Act of 
     2007, or the subsequent conversion of sugarcane base acreage 
     to a non-agricultural use, the Secretary, acting through the 
     Farm Service Agency, shall notify the affected landowner (or 
     landowners) of the transferability of the applicable 
     sugarcane base acreage.
       ``(C) Initial transfer period.--The owner of the base 
     attributable to the acreage at the time of the conversion 
     shall be afforded 90 days from the date of the receipt of the 
     notification under subparagraph (B) to transfer the base to 
     one or more farms owned by the owner.
       ``(D) Grower of record.--If the transfer under subparagraph 
     (C) cannot be accomplished within the time period prescribed 
     in such subparagraph, then the grower of record with regard 
     to the base acreage on the date on which the acreage was 
     converted to non-agricultural use shall be so notified, and 
     shall be afforded 90 days from the date of the receipt of 
     such notification to transfer the base to one or more farms 
     operated by the grower.
       ``(E) Pool distribution.--If the transfers under 
     subparagraphs (B) and (C) cannot be accomplished within the 
     time periods prescribed therein, then the county committee 
     for the applicable parish shall place the acreage base in a 
     pool for possible assignment to other farms. After providing 
     reasonable notice to farm owners, operators, and growers of 
     record in the parish, the county committee shall accept 
     requests from owners, operators, and growers of record in the 
     parish. The county committee shall assign the base to other 
     farms in the parish that are eligible and capable of 
     accepting such base, based on a random drawing from among the 
     requests received from owners, operators, and growers of 
     record with eligible farms.
       ``(F) Statewide reallocation.--Any base remaining 
     unassigned after the processes in subparagraphs (A) through 
     (E) shall be made available to the State committee for 
     allocation among the remaining county committees in the State 
     representing parishes with farms eligible for assignment of 
     the base. The remaining base shall be reallocated to 
     requesting county committees based on a random drawing. Any 
     county committee receiving base under this subparagraph shall 
     allocate the base to eligible farms using the process 
     described in subparagraph (E).
       ``(G) Status of reassigned base.--Once reassigned pursuant 
     to this paragraph, the acreage base shall remain on the farm, 
     and will be subject to the transfer provisions of paragraph 
     (1).'';
       (2) by striking subsection (d) and inserting the following 
     new subsection:
       ``(d) Transfers of Mill Allocations.--
       ``(1) Transfer authorized.--A producer in a proportionate 
     share State, upon written consent from all affected crop-
     share owners (or the representative of the crop-share owners) 
     of a farm may deliver sugarcane to another processing company 
     if the additional delivery, when combined with such other 
     processing company's existing deliveries, does not exceed the 
     processing capacity of the company.
       ``(2) Allocation adjustment.--Notwithstanding section 359d, 
     the Secretary shall adjust the allocations of each of such 
     processing companies affected by a transfer under paragraph 
     (1) to reflect the change in deliveries, based on--
       ``(A) the number of acres of sugarcane base being 
     transferred; and
       ``(B) the pro-rata amount of allocation at the processing 
     company holding the applicable allocation that equals the 
     grower's contribution to the processing company's allocation 
     for the sugarcane base acres being transferred.''.
       (h) Appeals.--Section 359i of the Agricultural Adjustment 
     Act of 1938 (7 U.S.C. 1359ii) is amended--
       (1) in subsection (a), by inserting ``or 359g(d)'' after 
     ``359f''; and
       (2) by striking subsection (c).
       (i) Administration of Tariff Rate Quotas.--The Agricultural 
     Adjustment Act of 1938 is amended by striking section 359k (7 
     U.S.C. 1359kk) and inserting the following new section:

     ``SEC. 359K. ADMINISTRATION OF TARIFF RATE QUOTAS.

       ``(a) Establishment.--Notwithstanding any other provision 
     of law, at the beginning of the quota year, the Secretary 
     shall establish the tariff-rate quotas for raw cane sugar and 
     refined sugars at the minimum necessary to comply with 
     obligations under international trade agreements that have 
     been approved by the Congress. This subsection shall not 
     apply to specialty sugar.
       ``(b) Adjustment.--
       ``(1) Before april 1.--
       ``(A) Initial adjustment required.--Before April 1 of a 
     fiscal year, in the event that there is an emergency shortage 
     of sugar in the United States market that is caused by war, 
     floods, hurricanes, or other natural disaster, or other 
     similar event, the Secretary shall take action to increase 
     supply as provided under sections 359c(b)(2) and 359e(b), 
     including an increase in the tariff-rate quota for raw cane 
     sugar to accommodate the reassignment to imports.
       ``(B) Additional adjustment.--If, after adjustment under 
     subparagraph (A), there is still a shortage of sugar in the 
     United States market, and marketings of domestic sugar have 
     been maximized, the Secretary may increase the tariff-rate 
     quota for refined sugars sufficient to accommodate the supply 
     increase, if such further increase will not threaten to 
     result in the forfeiture of sugar pledged as collateral for a 
     loan under section 156 of the Federal Agriculture Improvement 
     and Reform Act of 1996 (7 U.S.C. 7272).
       ``(2) On or after april 1.--
       ``(A) Initial adjustment authorized.--On or after April 1 
     of a fiscal year, the Secretary may take action to increase 
     supply as provided under sections 359c(b)(2) and 359e(b), 
     including an increase in the tariff-rate quota for raw cane 
     sugar to accommodate the reassignment to imports.
       ``(B) Additional adjustment.--If, after adjustment under 
     subparagraph (A), there is still a shortage of sugar in the 
     United States market, and marketings of domestic sugar have 
     been maximized, the Secretary may increase the tariff-rate 
     quota for raw cane sugar if such further increase will not 
     threaten to result in the forfeiture of sugar pledged as 
     collateral for a loan under section 156 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272).
       ``(c) Orderly Shipping Patterns for Major Suppliers.--
       ``(1) In general.--The Secretary of Agriculture shall 
     establish orderly shipping patterns for major suppliers of 
     sugar to the United States under the tariff rate quotas in 
     accordance with this subsection.
       ``(2) Very large major suppliers.--If a country holds quota 
     allocations of at least 100,000 metric tons of sugar, the 
     Secretary shall allow the country to export up to 25 percent 
     of the country's quota allocation to the United States in 
     each calendar quarter. Sugar permitted to enter into the 
     United States in a calendar quarter, but not actually entered 
     in that quarter, may be entered into the United States at any 
     time during the remainder of the fiscal year.
       ``(3) Large major suppliers.--For countries holding quota 
     allocations of more than 45,000 metric tons of sugar, but 
     less than 100,000 metric tons of sugar, the Secretary shall 
     require that the country may ship not more than 50 percent of 
     the country's quota sugar to the United States in the first 
     six months of the year.''.
       (j) Effective Date.--The Agricultural Adjustment Act of 
     1938 is amended by inserting after section 359k (7 U.S.C. 
     1359kk) the following new section:

     ``SEC. 359L. EFFECTIVE PERIOD.

       ``This part shall be effective only for the 2008 through 
     2012 crop years for sugar.''.
       (k) Transition.--The Secretary of Agriculture shall 
     administer flexible marketing allotments for sugar for the 
     2007 crop year for sugar on the terms and conditions provided 
     in part VII of title III of the Agricultural Adjustment Act 
     of 1938, as in effect on the day before the date of the 
     enactment of this Act.
                  Subtitle D--Dairy-Related Provisions

     SEC. 1401. DAIRY PRODUCT PRICE SUPPORT PROGRAM.

       (a) Support Activities.--During the period beginning on 
     January 1, 2008, through December 31, 2012, the Secretary of 
     Agriculture shall support the price of cheddar cheese, 
     butter, and nonfat dry milk through the purchase of such 
     products made from milk produced in the United States.
       (b) Purchase Price.--To carry out subsection (a) during the 
     period specified in such subsection, the Secretary shall 
     purchase--
       (1) cheddar cheese in blocks at not less than $1.13 per 
     pound;
       (2) cheddar cheese in barrels at not less than $1.10 per 
     pound;
       (3) butter at not less than $1.05 per pound; and
       (4) nonfat dry milk at not less than $0.80 per pound.
       (c) Temporary Price Adjustment to Avoid Excess 
     Inventories.--
       (1) Adjustments authorized.--The Secretary may adjust the 
     minimum purchase prices established under subsection (b) only 
     as permitted under this subsection.
       (2) Cheese inventories in excess of 200 million pounds.--If 
     net removals for a period of 12 consecutive months exceed 200 
     million pounds of cheese, but do not exceed 400 million 
     pounds, the Secretary may reduce the purchase prices under 
     paragraphs (1) and (2) of subsection (b) during the 
     immediately following month by not more than 10 cents per 
     pound.
       (3) Cheese inventories in excess of 400 million pounds.--If 
     net removals for a period of 12 consecutive months exceed 400 
     million pounds of cheese, the Secretary may reduce the 
     purchase prices under paragraphs (1) and (2) of subsection 
     (b) during the immediately following month by not more than 
     20 cents per pound.
       (4) Butter inventories in excess of 450 million pounds.--If 
     net removals for a period of 12 consecutive months exceed 450 
     million pounds of butter, but do not exceed 650 million 
     pounds, the Secretary may reduce the purchase price under

[[Page 21460]]

     subsection (b)(3) during the immediately following month by 
     not more than 10 cents per pound.
       (5) Butter inventories in excess of 650 million pounds.--If 
     net removals for a period of 12 consecutive months exceed 650 
     million pounds of butter, the Secretary may reduce the 
     purchase price under subsection (b)(3) during the immediately 
     following month by not more than 20 cents per pound.
       (6) Nonfat dry milk inventories in excess of 600 million 
     pounds.--If net removals for a period of 12 consecutive 
     months exceed 600 million pounds of nonfat dry milk, but do 
     not exceed 800 million pounds, the Secretary may reduce the 
     purchase price under subsection (b)(4) during the immediately 
     following month by not more than 5 cents per pound.
       (7) Nonfat dry milk inventories in excess of 800 million 
     pounds.--If net removals for a period of 12 consecutive 
     months exceed 800 million pounds of nonfat dry milk, the 
     Secretary may reduce the purchase price under subsection 
     (b)(4) during the immediately following month by not more 
     than 10 cents per pound.
       (d) Uniform Purchase Price.--The prices that the Secretary 
     pays for cheese, butter, or nonfat dry milk, respectively, 
     under subsection (a) shall be uniform for all regions of the 
     United States.
       (e) Sales From Inventories.--In the case of each commodity 
     specified in subsection (b) that is available for 
     unrestricted use in inventories of the Commodity Credit 
     Corporation, the Secretary may sell the commodity at the 
     market prices prevailing for that commodity at the time of 
     sale, except that the sale price may not be less than 110 
     percent of the minimum purchase price specified in subsection 
     (b) for that commodity.
       (f) Net Removals Defined.--In this section, the term ``net 
     removals'' means--
       (1) the sum of the quantity of a product described in 
     subsection (a) purchased by the Commodity Credit Corporation 
     under this section and the quantity of such product exported 
     under section 153 of the Food Security Act of 1985 (15 U.S.C. 
     713a-14); less
       (2) the amount of such product sold for unrestricted use by 
     the Commodity Credit Corporation.
       (g) Commodity Credit Corporation.--The Secretary shall use 
     the funds of the Commodity Credit Corporation to carry out 
     this section.

     SEC. 1402. DAIRY FORWARD PRICING PROGRAM.

       (a) Program Required.--The Secretary of Agriculture shall 
     establish a program under which milk producers and 
     cooperative associations of producers are authorized to 
     voluntarily enter into forward price contracts with milk 
     handlers.
       (b) Minimum Milk Price Requirements.--Payments made by milk 
     handlers to milk producers and cooperative associations of 
     producers, and prices received by milk producers and 
     cooperative associations, in accordance with the terms of a 
     forward price contract authorized by subsection (a), shall be 
     deemed to satisfy --
       (1) all uniform and minimum milk price requirements of 
     paragraphs (B) and (F) of subsection (5) of section 8c of the 
     Agricultural Adjustment Act (7 U.S.C. 627), reenacted with 
     amendments by the Agricultural Marketing Agreement Act of 
     1937; and
       (2) the total payment requirement of paragraph (C) of such 
     subsection.
       (c) Milk Covered by Program.--
       (1) Covered milk.--The program shall apply only with 
     respect to the marketing of federally regulated milk that--
       (A) is not classified as Class I milk or otherwise intended 
     for fluid use; and
       (B) is in the current of interstate or foreign commerce or 
     directly burdens, obstructs, or affects interstate or foreign 
     commerce in federally regulated milk.
       (2) Relation to class i milk.--To assist milk handlers in 
     complying with the limitation in paragraph (1)(A) without 
     having to segregate or otherwise individually track the 
     source and disposition of milk, a milk handler may allocate 
     milk receipts from producers, cooperatives, and other sources 
     that are not subject to a forward contract to satisfy the 
     handler's obligations with regard to Class I milk usage.
       (d) Voluntary Program.--A milk handler may not require 
     participation in a forward pricing contract as a condition of 
     the handler receiving milk from a producer or cooperative 
     association of producers, and such producer or cooperative 
     association may continue to have their milk priced under the 
     order's minimum payment provisions. The Secretary shall 
     investigate complaints made by producers or cooperative 
     associations of coercion by handlers to enter into forward 
     contracts, and if the Secretary finds evidence of such 
     coercion, the Secretary shall take appropriate action.
       (e) Duration.--No forward price contract may be entered 
     into under this program after September 30, 2012, and no 
     forward contract entered into under the program may extend 
     beyond September 30, 2015.

     SEC. 1403. DAIRY EXPORT INCENTIVE PROGRAM.

       (a) Extension.--Subsection (a) of section 153 of the Food 
     Security Act of 1985 (15 U.S.C. 713a-14) is amended by 
     striking ``2007'' and inserting ``2012''.
       (b) Compliance With Trade Agreements.--Section 153 of the 
     Food Security Act of 1985 (15 U.S.C. 713a-14) is amended--
       (1) in subsection (c), by striking paragraph (3) and 
     inserting the following new paragraph:
       ``(3) the maximum volume of dairy product exports allowable 
     consistent with the obligations of the United States under 
     the Uruguay Round Agreements approved under section 101 of 
     the Uruguay Round Agreements Act (19 U.S.C. 3511) is exported 
     under the program each year (minus the volume sold under 
     section 1163 of this Act (Public Law 99-198; 7 U.S.C. 1731 
     note) during that year), except to the extent that the export 
     of such a volume under the program would, in the judgment of 
     the Secretary, exceed the limitations on the value set forth 
     in subsection (f); and''; and.
       (2) in subsection (f), by striking paragraph (1) and 
     inserting the following new paragraph:
       ``(1) Funds and commodities.--Except as provided in 
     paragraph (2), the Commodity Credit Corporation shall in each 
     year use money and commodities for the program under this 
     section in the maximum amount consistent with the obligations 
     of the United States under the Uruguay Round Agreements 
     approved under section 101 of the Uruguay Round Agreements 
     Act (19 U.S.C. 3511), minus the amount expended under section 
     1163 of this Act (Public Law 99-198; 7 U.S.C. 1731 note) 
     during that year.''.

     SEC. 1404. REVISION OF FEDERAL MARKETING ORDER AMENDMENT 
                   PROCEDURES.

       Subsection (17) of section 8c of the Agricultural 
     Adjustment Act (7 U.S.C. 608c), reenacted with amendments by 
     the Agricultural Marketing Agreement Act of 1937, is amended 
     to read as follows:
       ``(17) Provisions Applicable to Amendments.--
       ``(A) Applicability to amendments.--The provisions of this 
     section and section 8d, applicable to orders shall be 
     applicable to amendments to orders.
       ``(B) Advance notice of hearing.--Notice of a hearing upon 
     a proposed amendment to any order issued pursuant to this 
     section shall be given not less than 3 days before the date 
     fixed for the hearing, and such notice shall be deemed to be 
     due notice of the hearing.
       ``(C) Prompt response to requests for amendment hearings.--
     Not more than 30 days after receipt of a written request for 
     an amendment hearing regarding a milk marketing order, the 
     Secretary shall--
       ``(i) issue a denial of the request; or
       ``(ii) issue notice of the hearing, which shall begin no 
     more than 60 days, and conclude no more than 90 days, after 
     receipt of the request.
       ``(D) Submission and use of evidence.--The proponents of 
     any amendment proposed to be made to a milk marketing order 
     shall file with the Secretary all testimony and other 
     evidence in support of the amendment, in written form, at 
     least 7 business days before the date fixed for the hearing. 
     The Secretary shall make such written testimony and other 
     evidence available to interested members of the public. 
     Subject to any evidentiary objections and cross examination 
     of submitting witness, the written testimony and evidence 
     shall be entered into evidence without being read at the 
     hearing.
       ``(E) Issuance of decision.--The Secretary shall issue a 
     recommended decision on a proposed amendment to a milk 
     marketing order not later than 90 days after the date set by 
     the Administrative Law Judge for the submission of post-
     hearing proposed findings and conclusions and written 
     arguments or briefs. The final decision shall be issued not 
     later than 60 days after the date on which the recommended 
     decision was issued.
       ``(F) Avoiding duplication.--The Secretary shall not be 
     required to call a hearing on any amendment proposed to be 
     made to a milk marketing order in response to an application 
     for a hearing on such proposed amendment if the application 
     requesting the hearing is received by the Secretary within 90 
     days after the date on which the Secretary has announced the 
     decision on a previously proposed amendment to that order and 
     the two proposed amendments are essentially the same.''.

     SEC. 1405. DAIRY INDEMNITY PROGRAM.

       Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended 
     by striking ``2007'' and inserting ``2012''.

     SEC. 1406. EXTENSION OF MILK INCOME LOSS CONTRACT PROGRAM.

       Section 1502(c)(3)(B) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 7982(c)(3)(B)), as amended 
     by section 9006(a) of the U.S. Troop Readiness, Veterans' 
     Care, Katrina Recovery, and Iraq Accountability 
     Appropriations Act, 2007 (Public Law 110-28, 121 Stat. 217), 
     is amended by striking ``2007'' and inserting ``2012''.

     SEC. 1407. DAIRY PROMOTION AND RESEARCH PROGRAM.

       (a) Extension of Promotion Authority.--Section 113(e)(2) of 
     the Dairy Production Stabilization Act of 1983 (7 U.S.C. 
     4504(e)(2)) is amended by striking ``2007'' and inserting 
     ``2012''.
       (b) Definition of United States for Promotion Program.--
     Section 111 of the Dairy Production Stabilization Act of 1983 
     (7 U.S.C. 4502) is amended--
       (1) by striking subsection (l) and inserting the following 
     new subsection:
       ``(l) the term `United States', when used in a geographical 
     sense, means all of the States, the District of Columbia, and 
     the Commonwealth of Puerto Rico;''; and
       (2) in subsection (m), by striking ``(as defined in 
     subsection (l))''.
       (c) Definition of United States for Research Program.--
     Section 130 of the Dairy Production Stabilization Act of 1983 
     (7 U.S.C. 4531)) is amended by striking paragraph (12) and 
     inserting the following new paragraph:
       ``(12) the term `United States', when used in a 
     geographical sense, means all of the States, the District of 
     Columbia, and the Commonwealth of Puerto Rico.''.

[[Page 21461]]



     SEC. 1408. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING 
                   PROCEDURES FOR NONFAT DRY MILK.

       Not later than 90 days after the date of the enactment of 
     this Act, the Secretary of Agriculture shall submit to 
     Congress a report regarding Department of Agriculture 
     reporting procedures for nonfat dry milk and the impact of 
     these procedures on Federal milk marketing order minimum 
     prices during the period beginning on July 1, 2006, and 
     ending on the date of the enactment of this Act.

     SEC. 1409. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.

       (a) Establishment.--Subject to the availability of 
     appropriations to carry out this section, the Secretary of 
     Agriculture shall establish a commission to be known as the 
     ``Federal Milk Marketing Order Review Commission'', in this 
     section referred to as the ``commission'', which shall 
     conduct a comprehensive review and evaluation of--
       (1) the current Federal milk marketing order system; and
       (2) non-Federal milk marketing order systems.
       (b) Elements of Review and Evaluation.--As part of the 
     review and evaluation under subsection (a), the commission 
     shall consider legislative and regulatory options for--
       (1) ensuring that the competitiveness of dairy products 
     with other competing products in the marketplace is preserved 
     and enhanced;
       (2) enhancing the competitiveness of American dairy 
     producers in world markets;
       (3) increasing the responsiveness of the Federal milk 
     marketing order system to market forces;
       (4) streamlining and expediting the process by which 
     amendments to Federal milk market orders are adopted;
       (5) simplifying the Federal milk marketing order system;
       (6) evaluating whether the Federal milk marketing order 
     system, established during the Great Depression, continues to 
     serve the interests of the public, dairy processors, and 
     dairy farmers;
       (7) evaluating whether Federal milk marketing orders are 
     operating in a manner to minimize costs to taxpayers and 
     consumers; and
       (8) evaluating the nutritional composition of milk, 
     including the potential benefits and costs of adjusting the 
     milk content standards.
       (c) Membership.--
       (1) Composition.--The commission shall consist of 16 
     members.
       (2) Members.--As soon as practicable after the date on 
     which funds are first made available to carry out this 
     section, commission members shall be appointed as follows:
       (A) Two members appointed by the Chairman of the Committee 
     on Agriculture of the House of Representatives, in 
     consultation with the ranking member of the Committee on 
     Agriculture of the House of Representatives.
       (B) Two members appointed by the Chairman of the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate, in 
     consultation with the ranking member of the Committee on 
     Agriculture, Nutrition and Forestry of the Senate.
       (C) Fourteen members appointed by the Secretary of 
     Agriculture.
       (3) Special appointment requirements.--In the case of the 
     members to be appointed under paragraph (2)(E), the Secretary 
     shall comply with the following requirements:
       (A) At least one member shall represent a national consumer 
     organization.
       (B) At least four members shall represent land-grant 
     universities or ASCARR institution with accredited dairy 
     economic programs, with two of these members being experts in 
     the field of economics.
       (C) At least one member shall represent the food and 
     beverage retail sector.
       (D) Four dairy producer and four dairy processors, 
     appointed so as to balance geographical distribution of milk 
     production and dairy processing, reflect all segments of 
     dairy processing, and represent all regions of the United 
     States equitably, including States that operate outside of a 
     Federal milk marketing order.
       (4) Chair.--The commission shall elect one of its appointed 
     members to serve as chairperson for the duration of the 
     commission's proceedings.
       (5) Vacancy.--Any vacancy occurring before the termination 
     of the commission shall be filled in the same manner as the 
     original appointment.
       (6) Compensation.--Members of the commission shall serve 
     without compensation, but shall be reimbursed by the 
     Secretary of Agriculture from existing budget authority for 
     necessary and reasonable expenses incurred in the performance 
     of the duties of the commission.
       (d) Report.--Not later than two years after the date of the 
     first meeting of the commission, the commission shall submit 
     to the Secretary of Agriculture and Congress a report setting 
     forth the results of the review and evaluation conducted 
     under this section, including such recommendations regarding 
     the legislative and regulatory options considered under 
     subsection (b) as the commission considers to be appropriate. 
     The report findings shall reflect, to the extent practicable, 
     a consensus opinion of the commission members, but the report 
     may include majority and minority findings regarding those 
     matters for which consensus was not reached.
       (e) Advisory Nature.--The commission is wholly advisory in 
     nature, and the recommendations of the commission are non-
     binding.
       (f) No Effect on Existing Programs.--The Secretary shall 
     not allow the existence of the commission to impede, delay, 
     or otherwise affect any decision making process of the 
     Department of Agriculture, including any rulemaking 
     procedures planned, proposed, or near completion.
       (g) Administrative Assistance.--The Secretary shall provide 
     administrative support to the commission, and expend such 
     funds as necessary from existing budget authority to carry 
     out this responsibility.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.
       (i) Termination.--The commission shall terminate 
     immediately after submission of the report under subsection 
     (d).
                       Subtitle E--Administration

     SEC. 1501. ADMINISTRATION GENERALLY.

       (a) Use of Commodity Credit Corporation.--The Secretary 
     shall use the funds, facilities, and authorities of the 
     Commodity Credit Corporation to carry out this title.
       (b) Determinations by Secretary.--A determination made by 
     the Secretary under this title shall be final and conclusive.
       (c) Regulations.--
       (1) In general.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary and the Commodity 
     Credit Corporation, as appropriate, shall promulgate such 
     regulations as are necessary to implement this title.
       (2) Procedure.--The promulgation of the regulations and 
     administration of this title shall be made without regard 
     to--
       (A) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'');
       (B) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (C) the notice and comment provisions of section 553 of 
     title 5, United States Code.
       (3) Congressional review of agency rulemaking.--In carrying 
     out this subsection, the Secretary shall use the authority 
     provided under section 808 of title 5, United States Code.
       (d) Adjustment Authority Related to Trade Agreements 
     Compliance.--
       (1) Required determination; adjustment.--If the Secretary 
     determines that expenditures under subtitles A through E that 
     are subject to the total allowable domestic support levels 
     under the Uruguay Round Agreements (as defined in section 2 
     of the Uruguay Round Agreements Act (19 U.S.C. 3501)), as in 
     effect on the date of enactment of this Act, will exceed such 
     allowable levels for any applicable reporting period, the 
     Secretary shall, to the maximum extent practicable, make 
     adjustments in the amount of such expenditures during that 
     period to ensure that such expenditures do not exceed such 
     allowable levels.
       (2) Congressional notification.--Before making any 
     adjustment under paragraph (1), the Secretary shall submit to 
     the Committee on Agriculture of the House of Representatives 
     or the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate a report describing the determination made under 
     that paragraph and the extent of the adjustment to be made.

     SEC. 1502. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

       (a) Agricultural Adjustment Act of 1938.--The following 
     provisions of the Agricultural Adjustment Act of 1938 shall 
     not be applicable to the 2008 through 2012 crops of covered 
     commodities, peanuts, and sugar and shall not be applicable 
     to milk during the period beginning on the date of enactment 
     of this Act through December 31, 2012:
       (1) Parts II through V of subtitle B of title III (7 U.S.C. 
     1326 et seq.).
       (2) In the case of upland cotton, section 377 (7 U.S.C. 
     1377).
       (3) Subtitle D of title III (7 U.S.C. 1379a et seq.).
       (4) Title IV (7 U.S.C. 1401 et seq.).
       (b) Agricultural Act of 1949.--The following provisions of 
     the Agricultural Act of 1949 shall not be applicable to the 
     2008 through 2012 crops of covered commodities, peanuts, and 
     sugar and shall not be applicable to milk during the period 
     beginning on the date of enactment of this Act and through 
     December 31, 2012:
       (1) Section 101 (7 U.S.C. 1441).
       (2) Section 103(a) (7 U.S.C. 1444(a)).
       (3) Section 105 (7 U.S.C. 1444b).
       (4) Section 107 (7 U.S.C. 1445a).
       (5) Section 110 (7 U.S.C. 1445e).
       (6) Section 112 (7 U.S.C. 1445g).
       (7) Section 115 (7 U.S.C. 1445k).
       (8) Section 201 (7 U.S.C. 1446).
       (9) Title III (7 U.S.C. 1447 et seq.).
       (10) Title IV (7 U.S.C. 1421 et seq.), other than sections 
     404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
       (11) Title V (7 U.S.C. 1461 et seq.).
       (12) Title VI (7 U.S.C. 1471 et seq.).
       (c) Suspension of Certain Quota Provisions.--The joint 
     resolution entitled ``A joint resolution relating to corn and 
     wheat marketing quotas under the Agricultural Adjustment Act 
     of 1938, as amended'', approved May 26, 1941 (7 U.S.C. 1330 
     and 1340), shall not be applicable to the crops of wheat 
     planted for harvest in the calendar years 2008 through 2012.

     SEC. 1503. PAYMENT LIMITATIONS.

        (a) Extension and Revision of Limitations.--
       (1) Extension.--Sections 1001 and 1001C(a) of the Food 
     Security Act of 1985 (7 U.S.C. 1308, 1308-3(a)) are amended 
     by striking ``Farm Security and Rural Investment Act of 
     2002'' each place it appears (other than in subsection (d)(1) 
     of section 1001 of such Act) and inserting ``Farm, Nutrition, 
     and Bioenergy Act of 2007''.
       (2) Combination of limits.--Section 1001 of the Food 
     Security Act of 1985 (7 U.S.C. 1308) is

[[Page 21462]]

     amended by striking subsections (b) and (c) and inserting the 
     following new subsections:
       ``(b) Limitation on Direct and Counter-Cyclical Payments 
     for Covered Commodities (other Than Peanuts).--
       ``(1) Direct payments.--The total amount of direct payments 
     received, directly or indirectly, by a person or any legal 
     entity (except a joint venture or a general partnership) in 
     any crop year under subtitle A of title I of the Farm, 
     Nutrition, and Bioenergy Act of 2007 for 1 or more covered 
     commodities (except for peanuts) may not exceed $60,000.
       ``(2) Counter-cyclical payments.--The total amount of 
     counter-cyclical payments received, directly or indirectly, 
     by a person or any legal entity (except a joint venture or a 
     general partnership in any crop year under subtitle A of 
     title I of the Farm, Nutrition, and Bioenergy Act of 2007 for 
     one or more covered commodities (except for peanuts) may not 
     exceed $65,000.
       ``(c) Limitation on Direct and Counter-Cyclical Payments 
     for Peanuts.--
       ``(1) Direct payments.--The total amount of direct payments 
     received, directly or indirectly, by a person or any legal 
     entity (except a joint venture or a general partnership) in 
     any crop year under subtitle A of title I of the Farm, 
     Nutrition, and Bioenergy Act of 2007 for peanuts may not 
     exceed $60,000.
       ``(2) Counter-cyclical payments.--The total amount of 
     counter-cyclical payments received, directly or indirectly, 
     by a person or any legal entity (except a joint venture or a 
     general partnership in any crop year under subtitle A of 
     title I of the Farm, Nutrition, and Bioenergy Act of 2007 for 
     peanuts may not exceed $65,000.''.
       (b) Direct Attribution.--Section 1001 of the Food Security 
     Act of 1985 (7 U.S.C. 1308) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (4) and (5), respectively; and
       (B) by inserting after paragraph (1) the following new 
     paragraphs:
       ``(2) Legal entity.--The term `legal entity' means an 
     entity that is created under Federal or State law and that--
       ``(A) owns land or an agricultural commodity; or
       ``(B) produces an agricultural commodity.
       ``(3) Person.--The term `person' means a natural person, 
     and does not include a legal entity.'';
       (2) by striking subsections (d) through (e) and inserting 
     the following new subsections:
       ``(d) Attribution of Payments.--
       ``(1) In general.--In implementing subsections (b) and (c), 
     the Secretary shall issue such regulations as are necessary 
     to ensure that the total amount of payments are attributed to 
     a person by taking into account the direct and indirect 
     ownership interests of the person in a legal entity that is 
     eligible to receive such payments.
       ``(2) Payments to a person.--Every payment made directly to 
     a person shall be combined with the person's pro rata 
     interest in payments received by a legal entity in which the 
     person has a direct or indirect ownership interest.
       ``(3) Payments to a legal entity.--
       ``(A) In general.--Every payment made to a legal entity 
     shall be attributed to those persons who have a direct or 
     indirect ownership interest in the legal entity.
       ``(B) Attribution of payments.--
       ``(i) Payment limits.--Except as provided in clause (ii), 
     payments made to a legal entity shall not exceed the amounts 
     specified in subsections (b) and (c).
       ``(ii) Exception.--Payments made to a joint venture or a 
     general partnership shall not exceed, for each payment 
     specified in subsections (b) and (c), the amount determined 
     by multiplying the maximum payment amount specified in 
     subsections (b) and (c) by the number of persons and legal 
     entities (other than joint ventures and general partnerships) 
     that comprise the ownership of the joint venture or general 
     partnership.
       ``(4) Four levels of attribution for embedded entities.--
       ``(A) In general.--Attribution of payments made to legal 
     entities shall be traced through four levels of ownership in 
     entities.
       ``(B) First level.--Any payments made to a legal entity (a 
     first-tier entity) that is owned in whole or in part by a 
     person shall be attributed to the person in an amount that 
     represents the direct ownership in the first-tier entity by 
     the person.
       ``(C) Second level.--Any payments made to a first-tier 
     entity that is owned in whole or in part by another legal 
     entity (a second-tier entity) shall be attributed to the 
     second-tier entity in proportion to the second-tier entity's 
     ownership in the first-tier entity. If the second-tier entity 
     is owned in whole or in part by a person, the amount of the 
     payment made to the first-tier entity shall be attributed to 
     the person in the amount that represents the indirect 
     ownership in the first-tier entity by the person.
       ``(D) Third and fourth levels.--The Secretary shall 
     attribute payments at the third and fourth tiers of ownership 
     in the same manner as specified in subparagraph (C) unless 
     the fourth-tier of ownership is that of a fourth-tier entity 
     and not that of a person, in which case the Secretary shall 
     reduce the amount of the payment to be made to the first-tier 
     entity in the amount that represents the indirect ownership 
     in the first-tier entity by the fourth-tier entity.
       ``(e) Special Rules.--
       ``(1) Minor children.--Payments received by a child under 
     the age of 18 shall be attributed to the child's parents, 
     except that the Secretary shall issue regulations which 
     provide the conditions under which payments received by a 
     child under the age of 18 will not be attributed to the 
     child's parents.
       ``(2) Marketing cooperatives.--Subsections (b) and (c) 
     shall not apply to a cooperative association of producers 
     with respect to commodities produced by its members which are 
     marketed by such association on behalf of its members but 
     shall apply to such producers as persons.
       ``(3) Trusts and estates.--
       ``(A) In general.--With respect to irrevocable trusts and 
     estates, the Secretary shall administer the provisions of 
     this subtitle in such manner as the Secretary determines will 
     ensure that fair and equitable treatment of the beneficiaries 
     of such trusts and estates.
       ``(B) Irrevocable trust.--In order for a trust to be 
     considered an irrevocable trust, the terms of the trust 
     agreement must not allow for modification or termination of 
     the trust by the grantor, allow for the grantor to have any 
     future, contingent, or remainder interest in the corpus of 
     the trust, or provide for the transfer of the corpus of the 
     trust to the remainder beneficiary in less than 20 years from 
     the date the trust is established except in cases where the 
     transfer is contingent on the remainder beneficiary achieving 
     at least the age of majority or is contingent on the death of 
     the grantor or income beneficiary.
       ``(C) Revocable trust.--A revocable trust shall be 
     considered to be the same person as the grantor of the trust.
       ``(4) Cash rent tenants.--
       ``(A) Definition.--In this paragraph, the term `cash rent 
     tenant' means a person or legal entity that rents land--
       ``(i) for cash; or
       ``(ii) for a crop share guaranteed as to the amount of the 
     commodity to be paid in rent.
       ``(B) Restriction.--A cash rent tenant who makes a 
     significant contribution of active personal management, but 
     not of personal labor, with respect to a farming operation is 
     eligible to receive a payment described in subsection (b) 
     only if the tenant makes a significant contribution of 
     equipment used in the farming operation.
       ``(5) Federal agencies.--
       ``(A) In general.--Federal agencies shall not be eligible 
     to receive any payment described in subsection (b) or (c).
       ``(B) Rents land.--A person or legal entity that rents land 
     owned by a Federal agency may receive such payments.
       ``(6) State and local governments.--
       ``(A) Governments ineligible.--
       ``(i) In general.--Except as provided in subparagraphs (B) 
     and (C), State and local governments and political 
     subdivisions and agencies of such governments, shall not be 
     eligible to receive payments described in subsections (b) and 
     (c).
       ``(ii) Tenants.--A person or legal entity that rents land 
     owned by a State or local government or a political 
     subdivision or agency of such government, may receive 
     payments described in subsections (b) and (c) if they 
     otherwise meet all applicable criteria.
       ``(B) Exception.--
       ``(i) In general.--Within the limitation described in 
     clause (ii), a State and the political subdivisions and 
     agencies of such governments, may receive payments described 
     in subsections (b) and (c), if the State or a political 
     subdivision or agency of such government--

         ``(I) is the producer of all crops produced on a farm; 
     and
         ``(II) the proceeds from the crop production are used to 
     maintain a public school.

       ``(ii) Limitation.--For each State, the total amount of 
     payments described in subsections (b) and (c) that are 
     received collectively by the State and all political 
     subdivisions or agencies of such governments shall not exceed 
     the amounts that one legal entity may receive in one year as 
     specified in subsections (b) and (c).
       ``(C) Share leases.--A State and the political subdivisions 
     and agencies of such governments may, without regard to the 
     provisions of subparagraph (B), receive payments described in 
     subsections (b) and (c) if--
       ``(i) the payments are received with respect to land that 
     is share leased to a private party;
       ``(ii) the lease was in effect on the date of enactment of 
     the Farm, Nutrition, and Bioenergy Act of 2007; and
       ``(iii) the land is used to maintain a public school.
       ``(7) Changes in farming operations.--In the administration 
     of this subtitle, the Secretary may not approve any change in 
     a farming operation that otherwise will increase the number 
     of persons to which the limitations under this section are 
     applied unless the Secretary determines that the change is 
     bona fide and substantive. The addition of a family member to 
     a farming operation under the criteria set out in section 
     1001A shall be considered a bona fide and substantive change 
     in the farming operation.
       ``(8) Denial of program benefits.--
       ``(A) Two year denial of payment.--A person or legal entity 
     shall be ineligible to receive payments specified in 
     subsections (b) and (c) for that year, and the succeeding 
     crop year, in which the Secretary determines that the person 
     or entity engaged in an activity in which the primary purpose 
     of the activity was to avoid the application of the 
     provisions of this subtitle to the person, legal entity or 
     any other person or legal entity.
       ``(B) Extended ineligibility.--If the Secretary determines 
     that a person or legal entity, for their benefit or the 
     benefit of any other person or legal entity, has knowingly 
     engaged in, or aided in the creation of fraudulent documents, 
     failed to disclose material information relevant to the 
     administration of this subtitle requested by the Secretary, 
     or committed other

[[Page 21463]]

     equally serious actions as identified in regulations issued 
     by the Secretary, the Secretary may for a period not to 
     exceed five crop years deny the issuance of payments to the 
     person or legal entity.
       ``(C) Pro rata denial.--Payments otherwise owed to a person 
     or legal entity covered by subparagraphs (A) or (B) shall be 
     denied in a pro rata manner based upon the ownership interest 
     of the person or legal entity in a farm, and payments 
     otherwise payable to the person or legal entity who is a cash 
     rent tenant on a farm owned or under the control of such 
     person or legal entity shall be denied.
       ``(9) Death of owner.--In the event of a transfer of any 
     ownership interest in land or a commodity as the result of 
     the death of a program participant, the new owner of such 
     land or commodity may, if such person is otherwise eligible 
     to participate in the applicable program, succeed to the 
     prior owner's contract and receive payments subject to this 
     section without regard to the amount of payments received by 
     the new owner. Payments made pursuant to this subsection 
     shall not exceed the amount to which the previous owner was 
     entitled to receive under the terms of the contract at the 
     time of the death of the prior owner.''.
       (c) Repeal of Three-Entity Rule.--Section 1001A of the Food 
     Security Act of 1985 (7 U.S.C. 1308-1) is amended--
       (1) in the section heading, by striking ``prevention of 
     creation of entities to qualify as separate persons''and 
     inserting ``notification of interests''; and
       (2) by striking subsection (a) and inserting the following 
     new subsection:
       ``(a) Notification of Interests.--To facilitate 
     administration of sections 1001 and this section, each entity 
     or person receiving payments described in subsections (b) and 
     (c) of section 1001 as a separate person shall provide to the 
     Secretary of Agriculture, at such times and in such manner as 
     prescribed by the Secretary, the name and social security 
     number of each individual, or the name and taxpayer 
     identification number of each entity, that holds or acquires 
     an ownership interest in such separate person and shall 
     provide such information regarding each entity in which such 
     separate person holds an ownership interest.''.
       (d) Amendment for Consistency.--Section 1001A of the Food 
     Security Act of 1985 (7 U.S.C. 1308-1) is amended by striking 
     subsection (b) and inserting the following new subsections:
       ``(b) Actively Engaged.--
       ``(1) In general.--To be eligible to receive a payment 
     described in subsection (b) and (c) of section 1001, a person 
     or legal entity must be actively engaged in farming as 
     provided in this subsection or subsection (c).
       ``(2) Classes actively engaged.--Except as provided in 
     subsections (c) and (d)--
       ``(A) a person, including a person participating in a 
     farming operation as a partner in a general partnership, a 
     participant in a joint venture, a grantor of a revocable 
     trust, or a participant in a similar entity as determined by 
     the secretary, shall be considered to be actively engaged in 
     farming with respect to a farm operation if--
       ``(i) the person makes a significant contribution (based on 
     the total value of the farming operation) to the farming 
     operation of--

         ``(I) capital, equipment, or land; and
         ``(II) personal labor or active personal management;

       ``(ii) the person's share of the profits or losses from the 
     farming operation is commensurate with the contributions of 
     the person to the farming operation; and
       ``(iii) the contributions of the person are at risk;
       ``(B) a legal entity that is a corporation, joint stock 
     company, association, limited partnership, charitable 
     organization, or other similar entity determined by the 
     Secretary, including any such entity participating in the 
     farming operation as a partner in a general partnership, a 
     participant in a joint venture, a grantor of a revocable 
     trust, or as a participant in a similar entity as determined 
     by the Secretary shall be considered as actively engaged in 
     farming with respect to a farming operation if--
       ``(i) the entity separately makes a significant 
     contribution (based on the total value of the farming 
     operation) of capital, equipment, or land;
       ``(ii) the stockholders or members collectively make a 
     significant contribution of personal labor or active personal 
     management to the operation; and
       ``(iii) the standards provided in clauses (ii) and (iii) of 
     paragraph (A), as applied to the entity, are met by the 
     entity;
       ``(C) if a legal entity that is a general partnership, 
     joint venture, or similar entity, as determined by the 
     Secretary, separately makes a significant contribution (based 
     on the total value of the farming operation involved) of 
     capital, equipment, or land, and the standards provided in 
     clauses (ii) and (iii) of paragraph (A), as applied to the 
     entity, are met by the entity, the partners or members making 
     a significant contribution of personal labor or active 
     personal management shall be considered to be actively 
     engaged in farming with respect to the farming operation 
     involved; and
       ``(D) in making determinations under this subsection 
     regarding equipment and personal labor, the Secretary shall 
     take into consideration the equipment and personal labor 
     normally and customarily provided by farm operators in the 
     area involved to produce program crops.
       ``(c) Special Classes Actively Engaged.--
       ``(1) Landowner.--A person or legal entity that is a 
     landowner contributing the owned land to a farming operation 
     shall be considered to be actively engaged in farming with 
     respect to the farming operation if the landowner receives 
     rent or income for such use of the land based on the land's 
     production or the operation's operating results, and the 
     person or legal entity meets the standard provided in clauses 
     (ii) and (iii) of subsection (b)(2)(A).
       ``(2) Adult family member.--With respect to a farming 
     operation when a majority of the participants are family 
     members, an adult family member shall be considered to be 
     actively engaged in farming with respect to the farming 
     operation if the person--
       ``(A) makes a significant contribution, based on the total 
     value of the farming operation, of active personal management 
     or personal labor; and
       ``(B) such contribution meets the standards provided in 
     clauses (ii) and (iii) of subsection (b)(2)(A).
       ``(3) Sharecropper.--A sharecropper who makes a significant 
     contribution of personal labor to a farming operation shall 
     be considered to be actively engaged in farming with respect 
     to the farming operation if such contribution meets the 
     standards provided in clauses (ii) and (iii) of subsection 
     (b)(2)(A).
       ``(4) Growers of hybrid seed.--In determining whether a 
     person or legal entity growing hybrid seed under contract 
     shall be considered to be actively engaged in farming, the 
     Secretary shall not take into consideration the existence of 
     a hybrid seed contract.
       ``(5) Custom farming services.--A person or legal entity 
     receiving custom farming services will be considered 
     separately eligible for payment limitation purposes if such 
     person or legal entity is actively engaged in farming based 
     on subsection (b)(2) or paragraphs (1) through (5) of this 
     subsection. No other rules with respect to custom farming 
     shall apply in making a determination under this section.
       ``(6) Spouse.--Where one spouse is determined to be 
     actively engaged, the other spouse shall be determined to 
     have met the requirements of subclause (II) of subsection 
     (b)(2)(A)(i) of this section.
       ``(d) Classes Not Actively Engaged.--
       ``(1) Cash rent landlord.--A landlord contributing land to 
     a farming operation shall not be considered to be actively 
     engaged in farming with respect to the farming operation if 
     the landlord receives cash rent, or a crop share guaranteed 
     as to the amount of the commodity to be paid in rent, for 
     such use of the land.
       ``(2) Other persons.--Any other person determined by the 
     Secretary as failing to meet the standards set out in 
     subsections (b)(2) and (c) shall not be considered to be 
     actively engaged in farming with respect to a farming 
     operation.''.
       (e) Transition.--Section 1001 of the Food Security Act of 
     1985 (7 U.S.C. 1308), as in effect on the day before the date 
     of the enactment of this Act, shall continue to apply with 
     respect to the 2007 crop of any covered commodity.

     SEC. 1504. ADJUSTED GROSS INCOME LIMITATION.

       (a) Extension of Adjusted Gross Income Limitation.--Section 
     1001D of the Food Security Act of 1985 (7 U.S.C. 1308-3a) is 
     amended--
       (1) in subsection (b)(2), by striking ``Farm Security and 
     Rural Investment Act of 2002'' each place it appears and 
     inserting ``Farm, Nutrition, and Bioenergy Act of 2007''; and
       (2) in subsection (e), by striking ``2007'' and inserting 
     ``2012''.
       (b) Modification of Limitation.--Section 1001D(b) of the 
     Food Security Act of 1985 (7 U.S.C. 1308-3a(b)) is amended--
       (1) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) Caps.--
       ``(A) Upper limit.--Notwithstanding any other provision of 
     law, an individual or entity shall not be eligible to receive 
     any benefit described in paragraph (2) during a crop year if 
     the average adjusted gross income of the individual or entity 
     exceeds $1,000,000.
       ``(B) Producer exemption.--Notwithstanding any other 
     provision of law, an individual or entity shall not be 
     eligible to receive any benefit described in paragraph (2) 
     during a crop year if the average adjusted gross income of 
     the individual or entity exceeds $500,000, unless not less 
     than 66.66 percent of the average adjusted gross income of 
     the individual or entity is derived from farming, ranching, 
     or forestry operations, as determined by the Secretary.'';
       (2) in paragraph (2)(A), by striking ``or C''; and
       (3) by adding at the end the following new paragraph:
       ``(3) Income derived from farming, ranching or forestry 
     operations.--In determining what portion of the average 
     adjusted gross income of an individual or entity is derived 
     from farming, ranching, or forestry operations, the Secretary 
     shall include income derived from the following:
       ``(A) The production of crops, livestock, or unfinished raw 
     forestry products.
       ``(B) The sale, including the sale of easements and 
     development rights, of farm, ranch, or forestry land or water 
     rights.
       ``(C) The sale, but not as a dealer, of equipment purchased 
     to conduct farm, ranch, or forestry operations when the 
     equipment is otherwise subject to depreciation expense.
       ``(D) The rental of land used for farming, ranching, or 
     forestry operations.
       ``(E) The provision of production inputs and services to 
     farmers, ranchers, and foresters.
       ``(F) The processing, storing, and transporting of farm, 
     ranch, and forestry commodities.

[[Page 21464]]

       ``(G) The sale of land that has been used for 
     agriculture.''.

     SEC. 1505. ADJUSTMENTS OF LOANS.

       Section 162 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7282) is amended--
       (1) in subsection (a), by inserting ``(except for cotton 
     and long grain, medium grain, and short grain rice)'' after 
     ``commodity'';
       (2) in subsection (b), by striking ``Farm Security and 
     Rural Investment Act of 2002'' and inserting ``Farm, 
     Nutrition, and Bioenergy Act of 2007''; and
       (3) by adding at the end the following new subsections:
       ``(d) Adjustment in Loan Rate for Cotton.--
       ``(1) Adjustment authority.--The Secretary may make 
     appropriate adjustments in the loan rate for cotton for 
     differences in quality factors.
       ``(2) Revisions to quality adjustments for upland cotton.--
       ``(A) Revision.--Within 180 days after the date of the 
     enactment of the Farm, Nutrition, and Bioenergy Act of 2007, 
     the Secretary, after consultation with the private sector as 
     provided in paragraph (3), shall implement revisions in the 
     administration of the marketing assistance loan program for 
     upland cotton to more accurately and efficiently reflect 
     market values for upland cotton.
       ``(B) Mandatory revisions.--The revisions required under 
     subparagraph (A) shall include the following:
       ``(i) The elimination or adjustment of warehouse location 
     differentials to reflect market conditions.
       ``(ii) The establishment of differentials for the various 
     quality factors and staple lengths of cotton based on a 
     three-year, weighted moving average of the weighted 
     designated spot market regions as determined by regional 
     production.
       ``(iii) The elimination of any artificial split in the 
     premium or discount between upland cotton with a 32 or 33 
     staple length due to micronaire;
       ``(iv) A mechanism to ensure that no premium or discount is 
     established that exceeds the premium or discount associated 
     with a leaf grade that is one better than the applicable 
     color grade.
       ``(C) Discretionary revisions.--The revisions under 
     subparagraph (A) may include, at a minimum, the following:
       ``(i) The use of non-spot market price data, in addition to 
     spot market price data, that would enhance the accuracy of 
     the price information used in determining quality adjustments 
     under this subsection.
       ``(ii) Adjustments in the premiums or discounts associated 
     with upland cotton with a staple length of 33 or above due to 
     micronaire with the goal of eliminating any unnecessary 
     artificial splits in the calculations of such premiums or 
     discounts.
       ``(iii) Such other adjustments determined appropriate by 
     the Secretary, after consultations conducted in accordance 
     with paragraph (3).
       ``(3) Consultation with private sector.--
       ``(A) Prior to revision.--Prior to implementing any 
     revisions to the administration of the marketing assistance 
     loan program for upland cotton, the Secretary should endeavor 
     to consult with an existing private sector committee whose 
     membership includes representatives of the production, 
     ginning, warehousing, cooperative, and merchandising segments 
     of the United States cotton industry and that has developed 
     recommendations concerning such revisions.
       ``(B) Upon review.--The Secretary shall also consult with 
     the committee referred to in subparagraph (A) when conducting 
     a review of adjustments in the operation of the loan program 
     as provided in paragraph (4).
       ``(C) Inapplicability of federal advisory committee act.--
     The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to consultations under this paragraph with the 
     committee referred to in subparagraph (A).
       ``(4) Review of adjustments.--The Secretary may review the 
     operation of the upland cotton quality adjustments 
     implemented pursuant to this subsection and may make further 
     revisions to the administration of the loan program, by 
     either revoking or revising the actions taken pursuant to 
     paragraph (2)(B) or by revoking or revising any actions taken 
     or authorized to be taken under paragraph (2)(B).
       ``(5) Adjustments in effect prior to revision.--The quality 
     differences (premiums and discounts for quality factors) 
     applicable to the upland cotton loan program (prior to any 
     revisions in accordance with this subsection) shall be 
     established by the Secretary by giving equal weight--
       ``(A) to loan differences for the preceding crop; and
       ``(B) to market differences for such crop in the designated 
     United States spot markets.
       ``(e) Rice Limitation.--With respect to long grain rice and 
     medium and short grain rice, the Secretary shall not make 
     adjustments in the loan rates for such commodities, except 
     for differences in grade and quality (including milling 
     yields).''.

     SEC. 1506. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

       Section 164 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7284) is amended by striking 
     ``Farm Security and Rural Investment Act of 2002'' each place 
     it appears and inserting ``Farm, Nutrition, and Bioenergy Act 
     of 2007''.

     SEC. 1507. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY 
                   REGARDING LOANS.

       Section 166 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7286) is amended in subsections 
     (a) and (c)(1) by striking ``subtitle B and C of title I of 
     the Farm Security and Rural Investment Act of 2002'' each 
     place it appears and inserting ``subtitle B of title I of the 
     Farm, Nutrition, and Bioenergy Act of 2007''.

     SEC. 1508. ASSIGNMENT OF PAYMENTS.

       (a) In General.--The provisions of section 8(g) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), 
     relating to assignment of payments, shall apply to payments 
     made under the authority of this title.
       (b) Notice.--The producer making the assignment, or the 
     assignee, shall provide the Secretary with notice, in such 
     manner as the Secretary may require, of any assignment made 
     under this section.

     SEC. 1509. TRACKING OF BENEFITS.

       As soon as practicable after the date of enactment of this 
     Act, the Secretary shall track the benefits provided, 
     directly or indirectly, to individuals and entities under 
     titles I and II and the amendments made by those titles.

     SEC. 1510. UPLAND COTTON STORAGE PAYMENTS.

       Beginning with the 2012 crop of upland cotton, the 
     Secretary may not use the funds of the Commodity Credit 
     Corporation to pay storage, handling, and other costs 
     associated with the storage of upland cotton for which a 
     marketing assistance loan is made under section 1201.

     SEC. 1511. GOVERNMENT PUBLICATION OF COTTON PRICE FORECASTS.

       Section 15 of the Agricultural Marketing Act (12 U.S.C. 
     1141j) is amended by striking subsection (d).
                         TITLE II--CONSERVATION

   Subtitle A--Conservation Programs of the Food Security Act of 1985

Sec. 2101. Conservation reserve program.
Sec. 2102. Wetlands reserve program.
Sec. 2103. Conservation security program.
Sec. 2104. Grassland reserve program.
Sec. 2105. Environmental quality incentives program.
Sec. 2106. Regional water enhancement program.
Sec. 2107. Grassroots source water protection program.
Sec. 2108. Conservation of private grazing land.
Sec. 2109. Great Lakes basin program for soil erosion and sediment 
              control.
Sec. 2110. Farm and ranchland protection program.
Sec. 2111. Farm viability program.
Sec. 2112. Wildlife habitat incentive program.

           Subtitle B--Conservation Programs Under Other Laws

Sec. 2201. Agricultural management assistance program.
Sec. 2202. Resource Conservation and Development Program.
Sec. 2203. Small watershed rehabilitation program.

              Subtitle C--Additional Conservation Programs

Sec. 2301. Chesapeake Bay program for nutrient reduction and sediment 
              control.
Sec. 2302. Voluntary public access and habitat incentive program.

                 Subtitle D--Administration and Funding

Sec. 2401. Funding of conservation programs under Food Security Act of 
              1985.
Sec. 2402. Improved provision of technical assistance under 
              conservation programs.
Sec. 2403. Cooperative conservation partnership initiative.
Sec. 2404. Regional equity and flexibility.
Sec. 2405. Administrative requirements for conservation programs.
Sec. 2406. Annual report on participation by specialty crop producers 
              in conservation programs.
Sec. 2407. Promotion of market-based approaches to conservation.
Sec. 2408. Establishment of State technical committees and their 
              responsibilities.
Sec. 2409. Payment limitations.

                  Subtitle E--Miscellaneous Provisions

Sec. 2501. Inclusion of income from affiliated packing and handling 
              operations as income derived from farming for application 
              of adjusted gross income limitation on eligibility for 
              conservation programs.
Sec. 2502. Encouragement of voluntary sustainability practices 
              guidelines.
Sec. 2503. Farmland resource information.
   Subtitle A--Conservation Programs of the Food Security Act of 1985

     SEC. 2101. CONSERVATION RESERVE PROGRAM.

       (a) Authorization and Eligible Land.--Section 1231 of the 
     Food Security Act of 1985 (16 U.S.C. 3831) is amended--
       (1) in subsection (a)--
       (A) by striking ``2007'' and inserting ``2012''; and
       (B) by inserting before the period the following: ``and to 
     address issues raised by State, regional, and national 
     conservation initiatives''; and
       (2) in subsection (b)--
       (A) in paragraph (1)(B)--
       (i) by striking ``the Farm Security and Rural Investment 
     Act of 2002'' and inserting ``the Farm, Nutrition, and 
     Bioenergy Act of 2007''; and
       (ii) by striking the period at the end and inserting a 
     semicolon; and
       (B) in paragraph (4), by striking the semicolon at the end 
     of subparagraph (E) and inserting ``; or''.

[[Page 21465]]

       (b) Maximum Enrollment.--Section 1231(d) of the Food 
     Security Act of 1985 (16 U.S.C. 3831(d)) is amended by 
     striking ``2007'' and inserting ``2012''.
       (c) Conservation Priority Areas.--Section 1231(f) of the 
     Food Security Act of 1985 (16 U.S.C. 3831(f)) is amended by 
     striking ``the Chesapeake Bay Region (Pennsylvania, Maryland, 
     and Virginia)'' and inserting ``the Chesapeake Bay Region''.
       (d) Treatment of Multi-Year Grasses and Legumes.--
     Subsection (g) of section 1231 of the Food Security Act of 
     1985 (16 U.S.C. 3831) is amended to read as follows:
       ``(g) Multi-Year Grasses and Legumes.--
       ``(1) In general.--For purposes of this subchapter, alfalfa 
     and other multi-year grasses and legumes in a rotation 
     practice, approved by the Secretary, shall be considered 
     agricultural commodities.
       ``(2) Cropping history.--Alfalfa, when grown as part of a 
     rotation practice, as determined by the Secretary, is an 
     agricultural commodity subject to the cropping history 
     criteria under subsection (b)(1)(B) for the purpose of 
     determining whether highly erodible cropland has been planted 
     or considered planted for 4 of the 6 years referred to in 
     such subsection.''.
       (e) Pilot Program for Enrollment of Wetland and Buffer 
     Acreage in Conservation Reserve.--Section 1231(h)(1)(A) of 
     the Food Security Act of 1985 (16 U.S.C. 3831(h)(1)(A)) is 
     amended by striking ``2007'' and inserting ``2012''.
       (f) Managed Haying and Grazing.--Section 1232(a)(7) of the 
     Food Security Act of 1985 (16 U.S.C. 3832(a)(7)) is amended--
       (1) in subparagraph (A)--
       (A) by inserting ``and prescribed grazing for the control 
     of invasive species'' after ``biomass''; and
       (B) by striking ``and'' at the end of the subparagraph;
       (2) by redesignating subparagraph (B) as subparagraph (D); 
     and
       (3) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) managed grazing during the year, except that in 
     permitting such grazing, the Secretary shall--
       ``(i) reduce the rental payment otherwise payable under the 
     contract by a percentage determined by the Secretary to be 
     appropriate; and
       ``(ii) require a management plan, including a grazing rate, 
     approved by the Secretary that is consistent with section 
     1231(a);
       ``(C) dryland crop production and grazing practices on 
     acreage enrolled into the conservation reserve enhancement 
     program announced on May 27, 1998 (63 Fed. Reg. 28965) where 
     the conservation reserve enhancement program is initiated to 
     address declining groundwater or surface water resources and 
     water quality issues associated with declining groundwater or 
     surface water resources and the conservation reserve 
     enhancement contract requires the owner or operator to retire 
     a water right, except that in permitting dryland crop 
     production and grazing, the Secretary shall--
       ``(i) develop an appropriate working lands conservation 
     plan that implements conservation practices suitable to the 
     region to address soil conservation, water quality, wildlife 
     habitat, or other environmental benefits;
       ``(ii) apply the provisions of section 11005 of the Farm, 
     Nutrition, and Bioenergy Act of 2007 in determining the 
     eligibility for crop insurance of dryland crop production and 
     grazing activities allowed under a conservation reserve 
     enhancement contract for the purposes of this section, 
     dryland crop production and grazing activities allowed under 
     a conservation reserve enhancement contract shall be 
     considered `noncropland' in applying the provisions of 
     section 11005 of the Farm, Nutrition, and Bioenergy Act of 
     2007;
       ``(iii) reduce the rental payment otherwise payable under 
     the contract by an amount commensurate with the economic 
     value of the crop production or grazing activity, while still 
     leaving sufficient financial incentives for the owner or 
     operator to participate in the conservation reserve 
     enhancement; and
       ``(iv) at the request of a State that has previously 
     entered into a conservation reserve enhancement program 
     agreement, renegotiate the agreement to allow for the dryland 
     crop production and grazing in accordance with this section; 
     and''.
       (g) Rental Rates.--Section 1234(c) of the Food Security Act 
     of 1985 (16 U.S.C. 3834(c)) is amended by adding at the end 
     the following new paragraph:
       ``(5) County average market dry-land and irrigated cash 
     rental rates.--
       ``(A) Annual estimates.--Beginning not later than one year 
     after the date of the enactment of the Farm, Nutrition, and 
     Bioenergy Act of 2007, the National Agricultural Statistics 
     Service shall conduct an annual survey of per acre estimates 
     of county average market dry-land and irrigated cash rental 
     rates for cropland and pastureland in all counties or 
     equivalent subdivisions within each State with 20,000 acres 
     or more of cropland and pastureland.
       ``(B) Public availability of estimates.-- The estimates 
     derived as a result of the annual survey conducted under 
     subparagraph (A) shall be maintained on a website of the 
     Department of Agriculture for use by the general public.
       ``(C) Funding.--Funds to conduct the annual survey required 
     by subparagraph (A) shall come from funds made available for 
     the conservation reserve program under this subchapter.''.
       (h) Conservation Reserve Program Transition Incentives.--
     Section 1235 of the Food Security Act of 1985 (16 U.S.C. 
     3835) is amended--
       (1) in subsection (c)(1)(B)--
       (A) in clause (ii), by striking ``or'' at the end;
       (B) by redesignating clause (iii) as clause (iv); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(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 for the 
     purpose of returning some or all of the land into production 
     using sustainable grazing or crop production methods; or''; 
     and
       (2) by adding at the end the following new subsection:
       ``(f) Transition Option for Certain Farmers or Ranchers.--
       ``(1) Duties of the secretary.--In the case of a contract 
     modification approved in order to facilitate the transfer of 
     land subject to a contract from a retired or retiring owner 
     or operator under subsection (c)(1)(B)(iii) to a beginning 
     farmer or rancher, socially disadvantaged farmer or rancher, 
     or limited resource farmer or rancher (in this subsection 
     referred to as a `covered farmer or rancher') the Secretary 
     shall--
       ``(A) beginning on the date that is 1 year before the date 
     of termination of the contract--
       ``(i) allow the covered farmer or rancher, in conjunction 
     with the retired or retiring owner or operator, to make 
     conservation and land improvements; and
       ``(ii) allow the covered farmer or rancher, at the election 
     of the covered farmer or rancher, to begin the certification 
     process under the Organic Foods Production Act of 1990 (7 
     U.S.C. 6501 et seq.);
       ``(B) beginning on the date of termination of the contract, 
     require the retired or retiring owner or operator to sell or 
     lease (under a long-term lease or a lease with an option to 
     purchase) to the covered farmer or rancher the land subject 
     to the contract for production purposes;
       ``(C) require the covered farmer or rancher to develop and 
     implement a comprehensive conservation plan that meets such 
     sustainability criteria as the Secretary may establish;
       ``(D) provide to the covered farmer or rancher an 
     opportunity to enroll in the conservation security program or 
     the environmental quality incentives program by not later 
     than the date on which the farmer or rancher takes possession 
     of the land through ownership or lease; and
       ``(E) continue to make annual payments to the retired or 
     retiring owner or operator for not more than an additional 2 
     years after the date of termination of the contract, 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.
       ``(2) Reenrollment.--The Secretary shall provide to a 
     beginning farmer or rancher, socially disadvantaged farmer or 
     rancher, or limited resource farmer or rancher described in 
     paragraph (1) the option to reenroll any applicable partial 
     field conservation practice that is--
       ``(A) eligible for enrollment under the continuous signup 
     requirement of section 1231(h)(4)(B); and
       ``(B) part of an approved comprehensive conservation 
     plan.''.
       (i) Early Termination.--Section 1235(e)(1) of the Food 
     Security Act of 1985 (16 U.S.C. 3835(e)(1)) is amended by 
     striking ``before January 1, 1995,''.

     SEC. 2102. WETLANDS RESERVE PROGRAM.

       (a) Establishment and Purpose.--Subsection (a) of section 
     1237 of the Food Security Act of 1985 (16 U.S.C. 3837) is 
     amended to read as follows:
       ``(a) Establishment and Purposes.--
       ``(1) Establishment.--The Secretary shall establish a 
     wetlands reserve program to assist owners of eligible lands 
     in restoring and protecting wetlands.
       ``(2) Purposes.--The purposes of the wetlands reserve 
     program are--
       ``(A) to restore, to create, to protect, or to enhance 
     wetlands on lands that are eligible under subsections (c) and 
     (d); and
       ``(B) to authorize the Secretary, at the sole discretion of 
     the Secretary, to purchase flood-plain easements.''.
       (b) Maximum Enrollment.--Section 1237(b) of the Food 
     Security Act of 1985 (16 U.S.C. 3837(b)) is amended--
       (1) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) Maximum enrollment.--The total number of acres 
     enrolled in the wetlands reserve program shall not exceed 
     3,605,000 acres.''; and
       (2) by adding at the end the following new paragraphs:
       ``(3) Annual enrollment goal.--Of the total number of acres 
     authorized by paragraph (1), to the maximum extent 
     practicable, the Secretary shall enroll 250,000 acres in each 
     fiscal year.
       ``(4) Flood-plain easements.--Of the acres to be enrolled 
     each fiscal year, not more than 10,000 acres may be enrolled 
     using flood-plain easements.''.
       (c) Eligible Lands.--Subsection (c) of section 1237 of the 
     Food Security Act of 1985 (16 U.S.C. 3837) is amended to read 
     as follows:
       ``(c) Eligibility.--For purposes of enrolling land into the 
     wetland reserve program established under this subchapter 
     during the 2008 through 2012 fiscal years, land shall be 
     eligible to be placed into such reserve if the Secretary 
     determines that--
       ``(1) in the case of wetlands--
       ``(A) the land maximizes wetland values and functions and 
     wildlife benefits;

[[Page 21466]]

       ``(B) the land is farmed wetland or converted wetland, 
     together with adjacent lands that are functionally dependent 
     on such wetlands, except that converted wetlands where the 
     conversion was not commenced prior to December 23, 1985, 
     shall not be eligible to be enrolled in the program under 
     this section;
       ``(C) the likelihood of the successful restoration of such 
     land, and the resultant wetland values, merit inclusion of 
     the land into the program taking into consideration the cost 
     of such restoration; and
       ``(D) the land consists of riparian areas, including areas 
     that link wetlands that are protected by easements or some 
     other device or circumstance that achieves the same purpose 
     as an easement; or
       ``(2) in the case of flood-plain lands--
       ``(A) the flood-plain land has been damaged by flooding at 
     least once within the previous calendar year, or has been 
     subject to flood damage at least twice within the previous 10 
     years; or
       ``(B) the enrollment of other land within the flood plain 
     would contribute to the restoration of the flood storage and 
     flow or erosion control.''.
       (d) Ineligible Lands.--Subsection (e) of section 1237 of 
     the Food Security Act of 1985 (16 U.S.C. 3837) is amended to 
     read as follows:
       ``(e) Ineligible Land.--The Secretary may not acquire 
     easements on--
       ``(1) in the case of wetlands--
       ``(A) land that contains timber stands established under 
     the conservation reserve under subchapter B; or
       ``(B) pasture land established to trees under the 
     conservation reserve under subchapter B; or
       ``(2) in the case of flood-plain lands--
       ``(A) land on which implementation of restoration practices 
     would not be productive; or
       ``(B) land that is subject to an existing easement or deed 
     restriction, and the easement or deed provides sufficient 
     protection or restoration of the flood plain's functions and 
     values, as determined by the Secretary.''.
       (e) Easements and Agreements.--Section 1237A of the Food 
     Security Act of 1985 (16 U.S.C. 3837a) is amended--
       (1) in subsection (a)(2), by inserting ``if applicable,'' 
     after ``(2)'';
       (2) in subsection (b)--
       (A) in the matter before paragraph (1), by inserting ``or 
     flood-plain land'' after ``values of wetland'';
       (B) in paragraph (1)(B), by inserting ``or flood-plain 
     land'' after ``wetland''; and
       (C) in paragraph (3), by inserting ``or flood-plain lands'' 
     after ``wetlands'';
       (3) in subsection (f)--
       (A) by striking ``Compensation for'' in the first sentence 
     and inserting the following:
       ``(1) Compensation provided; amount.--Compensation for''; 
     and
       (B) by adding at the end the following new paragraph:
       ``(2) Method for determination of fair market value.--The 
     Secretary shall determine the fair market value of land under 
     paragraph (1) based on the option specified in subparagraph 
     (A), (B), (C), or (D) that results in the lowest amount of 
     compensation to be paid by the Secretary:
       ``(A) A percentage of the fair market value based on the 
     Uniform Standards for Professional Appraisals Procedures, as 
     determined by the Secretary.
       ``(B) A percentage of the market value determined by an 
     area wide market survey.
       ``(C) A geographic cap, prescribed in regulations issued by 
     the Secretary.
       ``(D) The offer made by the owner of the land.''; and
       (4) by adding at the end the following new subsection:
       ``(h) Acceptance of Contributions.--The Secretary may 
     accept and use contributions of non-Federal funds to 
     administer the program under this subchapter.''.
       (f) Duties of the Secretary.--Section 1237C of the Food 
     Security Act of 1985 (16 U.S.C. 3837c) is amended--
       (1) in subsection (a)(1)--
       (A) by inserting ``including necessary maitenance 
     activities,'' after ``values,''; and
       (B) by inserting ``or flood plains land'' after 
     ``wetland''; and
       (2) by striking subsection (c) and inserting the following 
     new subsection:
       ``(c) Ranking of Offers.--
       ``(1) In general.--When evaluating offers from landowners, 
     the Secretary may consider--
       ``(A) the conservation benefits of obtaining an easement or 
     other interest in the land;
       ``(B) the cost-effectiveness of each easement or other 
     interest in eligible land, so as to maximize the 
     environmental benefits per dollar expended; and
       ``(C) whether the landowner or another person is offering 
     to contribute financially to the cost of the easement or 
     other interest in the land to leverage Federal funds.
       ``(2) Conservation benefits.--In determining the 
     acceptability of easement offers, the Secretary may take into 
     consideration--
       ``(A) in the case of wetlands--
       ``(i) the extent to which the purposes of the easement 
     program would be achieved on the land;
       ``(ii) the productivity of the land; and
       ``(iii) the on-farm and off-farm environmental threats if 
     the land is used for the production of agricultural 
     commodities; and
       ``(B) in the case of flood-plain lands--
       ``(i) the extent to which the purposes of the easement 
     program would be achieved on the land;
       ``(ii) whether the land has been repeatedly flooded over 
     the last ten years;
       ``(iii) the extent to which an easement on the flood-plain 
     land would contribute to the restoration or management of 
     land in the area surrounding the flood-plain land; and
       ``(iv) other factors, as determined by the Secretary.''.
       (g) Wetlands Reserve Enhancement.--Section 1237D(c) of the 
     Food Security Act of 1985 (16 U.S.C. 3837d(c)) is amended by 
     striking paragraph (4) and inserting the following new 
     paragraph:
       ``(4) Wetlands reserve enhancement.--
       ``(A) In general.--The provisions of this subchapter that 
     limit payments to any person, and section 1305(d) of the 
     Agricultural Reconciliation Act of 1987 (Public Law 100-203; 
     7 U.S.C. 1308 note), shall not apply to payments received by 
     a State, political subdivision, or agency thereof in 
     connection with agreements entered into under a special 
     wetlands reserve enhancement program carried out by that 
     entity that has been approved by the Secretary.
       ``(B) Agreements.--The Secretary may enter into agreements 
     with States (including political subdivisions and agencies of 
     States) regarding payments described in subparagraph (A) that 
     the Secretary determines will advance the purposes of this 
     subchapter.''.
       (h) Authorization.--The Food Security Act of 1985 is 
     amended by inserting after section 1237F (16 U.S.C. 3837f) 
     the following new section:

     ``SEC. 1237G. PERIOD OF AUTHORIZATION.

       ``This subchapter is authorized to be carried out for the 
     2008 through 2012 fiscal years.''.

     SEC. 2103. CONSERVATION SECURITY PROGRAM.

       (a) Establishment of New Conservation Security Program 
     Through 2017.--Subchapter A of chapter 2 of subtitle D of 
     title XII of the Food Security Act of 1985 (16 U.S.C. 3838 et 
     seq.) is amended to read as follows:

             ``Subchapter A--Conservation Security Program

     ``SEC. 1238. DEFINITIONS.

       ``In this subchapter:
       ``(1) Beginning farmer or rancher.--The term `beginning 
     farmer or rancher' has the meaning given the term under 
     section 343(a) of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1991(a)).
       ``(2) Conservation plan.--The term `conservation plan' 
     means a plan that--
       ``(A) identifies resources of concern, inventories 
     resources, and establishes benchmark data and stewardship 
     enhancement objectives;
       ``(B) describes improvements that will enable the producer 
     to meet and exceed the stewardship threshold for all 
     applicable resources of concern; and
       ``(C) contains a schedule and evaluation plan for the 
     planning, installing, maintaining, and managing new 
     conservation practices, activities, and management measures 
     and maintaining, managing, and improving existing 
     conservation practices, activities, and management measures.
       ``(3) Conservation practice.--The term `conservation 
     practice' means a site-specific land management practice or 
     activity, or a supporting structural practice, that is part 
     of an implemented management system designed to address a 
     priority resource of concern.
       ``(4) Conservation security contract.--The term 
     `conservation security contract' means a contract entered 
     into under this subchapter.
       ``(5) Conservation security program.--The term 
     `conservation security program' means the program established 
     under section 1238A(a).
       ``(6) Management intensity.-- The term `management 
     intensity' means the degree, scope, and comprehensiveness of 
     conservation practices, activities, or management measures 
     taken by a producer to address a priority resource of concern 
     to a level exceeding the stewardship threshold.
       ``(7) Nondegradation standard.--The term `nondegradation 
     standard' means the level of natural resource conservation 
     and environmental management measures required to improve and 
     sustain the status and condition of natural and environmental 
     resources to a level that, as determined by the Secretary--
       ``(A) prevents impairment of soil, water, and air quality 
     and the quality of fish and wildlife habitat; and
       ``(B) sustains the long-term productivity of agricultural 
     resources.
       ``(8) Priority resource of concern.--The term `priority 
     resource of concern' means a resource of concern identified 
     by the Secretary, consistent with the requirements of section 
     1238C(a), that must be addressed by participants in the 
     conservation security program in a particular watershed or 
     other area within that State.
       ``(9) Producer.--The term `producer' means an owner, 
     operator, landlord, tenant, or sharecropper that---
       ``(A) shares in the risk of producing any crop or 
     livestock; and
       ``(B) is entitled to share in the crop or livestock 
     available for marketing from a farm (or would have shared had 
     the crop or livestock been produced).
       ``(10) Resource-specific index.--The term `resource-
     specific index' means an index of management intensity or 
     other similar index, developed by the Secretary, that 
     estimates the expected level of resource and environmental 
     outcomes of the conservation practices, activities, and 
     management measures employed by a producer.
       ``(11) Socially disadvantaged farmer or rancher.--The term 
     `socially disadvantaged farmer or rancher' has the meaning 
     given the term under section 355(e) of the Consolidated

[[Page 21467]]

     Farm and Rural Development Act (7 U.S.C. 2003(e)).
       ``(12) Structural practice.--The term `structural practice' 
     means a site-specific, constructed conservation practice that 
     is integrated with and essential to the successful 
     implementation of the system of land management practices and 
     activities that are the basis of a conservation security 
     contract.

     ``SEC. 1238A. CONSERVATION SECURITY PROGRAM.

       ``(a) Establishment and Purpose.--The Secretary shall 
     establish, and for each of fiscal years 2012 through 2017, 
     carry out a conservation security program to assist producers 
     in improving environmental quality by addressing priority 
     resources of concern in a comprehensive manner.
       ``(b) Eligible Producers.--To be eligible to participate in 
     the conservation security program, a producer shall--
       ``(1) demonstrate that the producer is addressing at least 
     one priority resource of concern to a minimum level of 
     management intensity determined by the Secretary; and
       ``(2) develop and submit to the Secretary, and obtain the 
     approval of the Secretary of, a conservation offer.
       ``(c) Eligible Land.--
       ``(1) In general.--Except as provided in paragraph (2), 
     private agricultural land (including cropland, grassland, 
     prairie land, improved pasture land, forest land and 
     rangeland) and land under the jurisdiction of an Indian tribe 
     (as defined by the Secretary) shall be eligible for 
     enrollment in the conservation security program.
       ``(2) Exclusions.--
       ``(A) Land enrolled in other conservation programs.--Except 
     as provided in subsection (f)(3)(A), the following lands are 
     not eligible for enrollment in the conservation security 
     program:
       ``(i) Lands enrolled in the conservation reserve program 
     under subchapter B of chapter 1.
       ``(ii) Land enrolled in the wetlands reserve program 
     established under subchapter C of chapter 1.
       ``(iii) Land enrolled in the grassland reserve program 
     established under subchapter C of chapter 2.
       ``(B) Conversion to cropland.--Land used for crop 
     production after October 1, 2011, that had not been planted, 
     considered to be planted, or devoted to crop production for 
     at least 4 of the 6 years preceding that date (except for 
     land enrolled in the conservation reserve program or that has 
     been maintained using long-term crop rotation practices, as 
     determined by the Secretary) shall not be the basis for any 
     payment under the conservation security program.
       ``(d) Economic Uses.--With respect to eligible land covered 
     by a conservation security contract, the Secretary shall 
     permit economic uses of the land that--
       ``(1) maintain the agricultural nature of the land; and
       ``(2) are consistent with the conservation purposes of the 
     conservation security program.
       ``(e) Conservation Security Contracts.--
       ``(1) In general.--After a determination that a producer is 
     eligible for the conservation security program, and on 
     approval of the conservation offer of the producer, the 
     Secretary shall enter into a conservation security contract 
     with the producer to enroll the land to be covered by the 
     contract in the conservation security program.
       ``(2) Term.--A conservation security contract shall be for 
     a term of 5 years.
       ``(3) Agricultural operation.--All the acres of the 
     agricultural operation that are under the producer's 
     effective control at the time the producer enters into a 
     conservation security contract shall be covered by the 
     conservation security contract.
       ``(4) Provisions.--The conservation security contract of a 
     producer shall--
       ``(A) include a conservation plan approved by the 
     Secretary;
       ``(B) describe the land covered by the conservation 
     security contract;
       ``(C) state the amount of the stewardship enhancement 
     payment the Secretary agrees to make to the producer each 
     year of the conservation security contract under section 
     1238C(c);
       ``(D) describe the new conservation practices and 
     activities the producer is required to implement during the 
     term of the conservation security contract in order to 
     increase the level of management intensity with which the 
     producer addresses a priority resource of concern or priority 
     resources of concern, as designated by the Secretary under 
     section 1238C(a)(1); and
       ``(E) include such other provisions as the Secretary 
     determines necessary to ensure the conservation purposes of 
     the conservation security program are met.
       ``(5) On-farm research and demonstration or pilot 
     testing.--The Secretary may approve a conservation security 
     contract that includes--
       ``(A) on-farm conservation research and demonstration 
     activities; and
       ``(B) pilot testing of new technologies or innovative 
     conservation practices.
       ``(f) Modification.--The Secretary may allow a producer to 
     modify a conservation security contract before the expiration 
     of the contract if the Secretary determines that failure to 
     modify the contract would significantly interfere with 
     achieving the purposes of the conservation security program.
       ``(g) Contract Termination.--
       ``(1) Voluntary termination.--A producer may terminate a 
     conservation security contract if the Secretary determines 
     that termination of the contract would not defeat the 
     purposes of the conservation plan of the producer.
       ``(2) Involuntary termination.--The Secretary may terminate 
     a contract under this subchapter if the Secretary determines 
     that the producer violated the contract.
       ``(3) Transfer or change of interest in land subject to 
     conservation security contract.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the transfer, or change in the interest, of a producer in 
     land subject to a conservation security contract shall result 
     in the termination of the conservation security contract.
       ``(B) Transfer of duties and rights.--Subparagraph (A) 
     shall not apply if, within a reasonable period of time after 
     the date of the transfer or change in the interest in land, 
     the transferee of the land provides written notice to the 
     Secretary that all duties and rights under the conservation 
     security contract have been transferred to, and assumed by, 
     the transferee. The Secretary shall specify what will be 
     considered a reasonable period of time for purposes of 
     providing the notification required by this subparagraph.
       ``(h) Contract Renewal.--At the end of an initial 
     conservation security contract of a producer, the Secretary 
     may allow the producer to renew the contract for one 
     additional five-year period if the producer--
       ``(1) demonstrates compliance with the terms of the 
     existing contract, including a demonstration that the 
     producer has complied with the schedule for the 
     implementation of new practices and activities included in 
     the conservation security contract and has met the stated 
     goals for increasing the level of management intensity with 
     which the producer is addressing the designated priority 
     resource of concern or priority resources of concern; and
       ``(2) agrees to implement and maintain such additional new 
     conservation practices and activities as the Secretary 
     determines necessary and feasible to achieve higher levels of 
     management intensity with which the producer addresses the 
     designated priority resource of concern or priority resources 
     of concern.
       ``(i) Effect of Noncompliance Due to Circumstances Beyond 
     the Control of Producers.--The Secretary shall include in the 
     conservation security contract a provision to ensure that a 
     producer shall not be considered in violation of a 
     conservation security contract for failure to comply with the 
     conservation security contract due to circumstances beyond 
     the control of the producer, including a disaster or related 
     condition, as determined by the Secretary.
       ``(j) Evaluation of Offers.--In evaluating applications by 
     producers to enroll in the conservation security program, the 
     Secretary shall--
       ``(1) consider the extent to which the anticipated 
     environmental benefits from the contract are provided at 
     least cost relative to other similar activities;
       ``(2) consider the extent to which the producer proposes to 
     increase the level of performance on applicable resource-
     specific indices or the level of management intensity with 
     which the producer addresses the designated priority 
     resources of concern;
       ``(3) consider the extent to which the environmental 
     benefits expected to result from the contract complements 
     other conservation efforts in the watershed or region;
       ``(4) consider the multiple benefits of conservation-based 
     farming systems, including resource-conservation crop 
     rotations, managed rotational grazing, and the adoption of 
     certified production under the national organic production 
     program under the Organic Foods Production Act of 1990 (7 
     U.S.C. 6501 et. seq.); and
       ``(5) develop any additional criteria for evaluating 
     applications that the Secretary determines are necessary to 
     ensure that national, State, and local conservation 
     priorities are effectively addressed.
       ``(k) Coordination With Organic Certification.--Within 90 
     days after the date of the enactment of the Farm, Nutrition, 
     and Bioenergy Act of 2007, the Secretary shall establish a 
     transparent and producer-friendly means by which producers 
     may coordinate and simultaneously certify eligibly under a 
     conservation security contract and under the national organic 
     production program established under the Organic Foods 
     Production Act of 1990 (7 U.S.C. 6501 et. seq.).

     ``SEC. 1238B. DUTIES OF PRODUCERS.

       ``(a) Agreement by Producer.--Under a conservation security 
     contract, a producer shall agree--
       ``(1) to implement during the term of the conservation 
     security contract the conservation plan approved by the 
     Secretary;
       ``(2) to maintain, and make available to the Secretary at 
     such times as the Secretary may request, appropriate records 
     showing the effective and timely implementation of the 
     conservation security contract; and
       ``(3) not to engage in any activity during the term of the 
     conservation security contract that would interfere with the 
     purposes of the conservation security program.
       ``(b) Effect of Violation.--On the violation of a term or 
     condition of the conservation security contract of a 
     producer--
       ``(1) if the Secretary determines that the violation 
     warrants termination of the conservation security contract, 
     the producer shall--
       ``(A) forfeit all rights to receive payments under the 
     conservation security contract; and
       ``(B) refund to the Secretary all or a portion of the 
     payments received by the producer under the conservation 
     security contract, including any advance payments and 
     interest on the payments, as determined by the Secretary;

[[Page 21468]]

       ``(2) if the Secretary determines that the violation does 
     not warrant termination of the conservation security 
     contract, the producer shall refund to the Secretary, or 
     accept adjustments to, the payments provided to the producer, 
     as the Secretary determines to be appropriate; or
       ``(3) some combination of the remedies authorized by 
     paragraphs (1) and (2), as determined by the Secretary to be 
     appropriate.

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

       ``(a) Identification of Priority Resources of Concern.--
       ``(1) Identification at state level.--The Secretary shall 
     ensure that the identification of priority resources of 
     concern is made at the State level so that each priority 
     resource of concern--
       ``(A) represents a significant environmental concern, 
     including watershed management or wildlife habitat, in the 
     State to which agricultural activities are contributing; and
       ``(B) is likely to be addressed successfully through the 
     implementation of conservation practices and other activities 
     by producers.
       ``(2) Limitation.--The Secretary shall identify not more 
     than 5 resources of concern as priority resources of concern 
     in a particular watershed or other appropriate region or area 
     within a State.
       ``(3) Advice and consultation.--The Secretary, with the 
     advice of the appropriate State technical committee and in 
     consultation with Federal and State agencies with expertise 
     related to natural resources and environmental quality, shall 
     designate, to the extent practicable, each priority resource 
     of concern identified under paragraph (1) as either a 
     primary, secondary, or tertiary resource of concern.
       ``(b) Development of Resource-Specific Indices.--The 
     Secretary shall develop resource-specific indices to measure 
     the management intensity with which specific resources of 
     concern are addressed, for purposes of determining 
     eligibility and payments for participants in the conservation 
     security program.
       ``(c) Stewardship Enhancement Payment.--
       ``(1) Timing of payment.--The Secretary shall make a 
     payment under a conservation security contract as soon as 
     practicable after October 1 of each fiscal year.
       ``(2) Exclusions.--A payment to a producer under this 
     subsection shall not be provided for--
       ``(A) the design, construction, or maintenance of animal 
     waste storage or treatment facilities or associated waste 
     transport or transfer devices for animal feeding operations; 
     or
       ``(B) conservation practices and activities for which there 
     is no net cost or loss of income to the producer, as 
     determined by the Secretary.
       ``(3) Availability of payments.--The Secretary shall 
     provide a stewardship enhancement payment to a producer under 
     a conservation security contract to compensate the producer 
     for--
       ``(A) ongoing implementation and maintenance of 
     conservation practices, activities, and management measures 
     in place on the producers operation at the time the 
     conservation security contract is accepted; and
       ``(B) installation and adoption of new conservation 
     practices, activities, and management measures or 
     improvements to conservation practices, activities, and 
     management measures in place on the producer's operation, as 
     required by the conservation security contract.
       ``(4) Payment amount.--The amount of the stewardship 
     enhancement payment shall be determined by the Secretary and 
     shall be based, to the maximum extent feasible, on--
       ``(A) a portion of the actual costs incurred by the 
     producer; and
       ``(B) the income forgone by the producer; and
       ``(C) resource-specific indices, in any case in which such 
     indices have been developed and implemented.
       ``(d) Payment Limitations.--An individual or entity may not 
     receive, directly or indirectly, payments under a 
     conservation security contract that, in the aggregate, exceed 
     $150,000 for the 5-year term of the conservation security 
     contract, excluding funding arrangements with federally 
     recognized Indian Tribes or Alaska Native Corporations.
       ``(e) Regulations.--The Secretary shall promulgate 
     regulations that--
       ``(1) provide for adequate safeguards to protect the 
     interests of tenants and sharecroppers, including provision 
     for sharing payments, on a fair and equitable basis; and
       ``(2) prescribe such other rules as the Secretary 
     determines to be necessary to ensure a fair and reasonable 
     application of the limitations established under subsection 
     (d).
       ``(f) Allocation to States.--When making allocations to 
     States of funds made available to carry out the conservation 
     security program, the Secretary shall give significant 
     consideration to the extent and magnitude of the 
     environmental needs associated with agricultural production 
     in each State, the degree to which implementation of the 
     conservation security program in the State is, or will be, 
     effective in helping producers address these needs, and other 
     considerations to achieve equitable geographic distributions 
     of funds, as determined by the Secretary.
       ``(g) Technical Assistance.--For each of fiscal years 2008 
     through 2017, the Secretary shall provide appropriate 
     technical assistance to producers for the development and 
     implementation of conservation security contracts, in an 
     amount not to exceed 15 percent of the amounts expended for 
     the fiscal year.
       ``(h) Data.--The Secretary shall maintain conservation 
     security program contract and payment data in a manner that 
     provides detailed and segmented data that allows for 
     quantification of the amount of payments made to producers 
     for--
       ``(1) the maintenance of conservation practices, 
     activities, and management measures in place on the 
     producer's operation at the time the conservation security 
     offer is accepted by the Secretary;
       ``(2) the installation and adoption of new conservation 
     practices, activities, and management measures and the 
     improvements to conservation practices, activities, and 
     management measures in place on the producer's operation at 
     the time the conservation security offer is accepted by the 
     Secretary;
       ``(3) participation in research, demonstration, and pilot 
     projects; and
       ``(4) the development and periodic assessment and 
     evaluation of comprehensive conservation plans.''.
       (b) Effect on Existing Conservation Security Contracts.--
     Subchapter A of chapter 2 of subtitle D of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3838 et seq.), as in 
     effect on the day before the date of the enactment of this 
     Act, shall continue to apply to conservation security 
     contracts entered into before October 1, 2007. The Secretary 
     of Agriculture may continue to make payments under such 
     subchapter, as so in effect, with respect to such a 
     conservation security contracts during the term of the 
     contract.
       (c) Prohibition on New Contracts.--A conservation security 
     contract may not be entered into or renewed under subchapter 
     A of chapter 2 of subtitle D of title XII of the Food 
     Security Act of 1985 (16 U.S.C. 3838 et seq.), as in effect 
     on the day before the date of the enactment of this Act, 
     after September 30, 2007.

     SEC. 2104. GRASSLAND RESERVE PROGRAM.

       (a) Enrollment Priority.--Subsection (b) of section 1238N 
     of the Food Security Act of 1985 (16 U.S.C. 3838n) is amended 
     by striking paragraph (3) and inserting the following new 
     paragraph:
       ``(3) Priority for long-term agreements and easements.--Of 
     the total number of acres enrolled in the program at any one 
     time through the methods described in paragraph (2)(A), the 
     Secretary shall ensure that at least 60 percent of the acres 
     were enrolled through the use of 30-year rental agreements 
     and permanent and long-term easements described in clause 
     (ii) of such paragraph.''.
       (b) Enrollment of Acreage.--Subsection (b) of section 1238N 
     of the Food Security Act of 1985 (16 U.S.C. 3838n) is amended 
     by striking paragraph (1) and inserting the following new 
     paragraph:
       ``(1) Enrollment.--The Secretary shall enroll an additional 
     1,000,000 acres of restored or improved grassland, rangeland, 
     and pastureland in the grassland reserve program during 
     fiscal years 2008 through 2012.''.
       (c) Enrollment of Conservation Reserve Program Land.--
     Section 1238N of the Food Security Act of 1985 (16 U.S.C. 
     3838n) is amended by adding at the end the following new 
     subsections:
       ``(d) Enrollment of Conservation Reserve Program Land.--
       ``(1) Enrollment authorized.--Subject to the eligibility 
     requirements of subsection (c) and all other requirements of 
     this subchapter, land enrolled in the conservation reserve 
     program may be enrolled in the grassland reserve program if 
     the Secretary determines that the land is of high ecological 
     value and under significant threat of conversion to other 
     uses.
       ``(2) Maximum enrollment.--The number of acres of 
     conservation reserve program land enrolled under this 
     subsection in a calendar year shall not exceed 10 percent of 
     the total number of acres enrolled in the grassland reserve 
     program in that calendar year.
       ``(3) Prohibition on duplication of payments.--Land 
     enrolled in the program under this subsection shall no longer 
     be eligible for payments under the conservation reserve 
     program.
       ``(e) Method for Determination of Fair Market Value.--The 
     Secretary shall determine the fair market value of land to be 
     enrolled in program based on the option specified in 
     paragraph (1), (2), (3), or (4) that results in the lowest 
     amount of compensation to be paid by the Secretary:
       ``(1) A percentage of the fair market value based on the 
     Uniform Standards for Professional Appraisals Procedures, as 
     determined by the Secretary.
       ``(2) A percentage of the market value determined by an 
     area wide market survey.
       ``(3) A geographic cap, as prescribed in regulations issued 
     by the Secretary.
       ``(4) The offer made by the owner of the land.''.
       (d) Grassland Reserve Enhancement.--Section 1238N of the 
     Food Security Act of 1985 (16 U.S.C. 3838n) is amended by 
     inserting after subsection (d), as added by subsection (b), 
     the following new subsection:
       ``(e) Grassland Reserve Enhancement.--The Secretary may 
     enter into such agreements with States, including political 
     subdivisions and agencies of States, that the Secretary 
     determines will advance the purposes of the grassland reserve 
     program. Section 1305(d) of the Agricultural Reconciliation 
     Act of 1987 (Public Law 100-203; 7 U.S.C. 1308 note) shall 
     not apply to payments received by a State or political 
     subdivision or agency thereof in connection with such an 
     agreement.''.
       (e) Use of Private Organizations or State Agencies.--
     Section 1238Q of the Food Security Act of 1985 (16 U.S.C. 
     3838q) is amended--
       (1) by striking subsection (a) and inserting the following 
     new subsection:
       ``(a) Authority To Use Private Organizations or States.--
     The Secretary shall permit a

[[Page 21469]]

     private conservation or land trust organization (referred to 
     in this section as a `private organization') or a State 
     agency to own, write, and enforce an easement under this 
     subchapter, in lieu of the Secretary, subject to the right of 
     the Secretary to conduct periodic inspections and enforce the 
     easement, if--
       ``(1) the Secretary determines that granting the permission 
     will promote protection of grassland, land that contains 
     forbs, and shrubland;
       ``(2) the owner authorizes the private organization or 
     State agency to hold and enforce the easement; and
       ``(3) the private organization or State agency agrees to 
     assume the costs incurred in administering and enforcing the 
     easement, including the costs of restoration or 
     rehabilitation of the land as specified by the owner and the 
     private organization or State agency.'';
       (2) in subsection (b), by striking ``hold'' and inserting 
     ``own, write,''; and
       (3) in subsection (c), by striking ``hold'' and inserting 
     ``own, write,''.

     SEC. 2105. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

       (a) Purposes.--Section 1240 of the Food Security Act of 
     1985 (16 U.S.C. 3839aa) is amended--
       (1) in the matter preceding paragraph (1), by inserting ``, 
     forest management, organic transition,'' after ``agricultural 
     production''; and
       (2) by striking paragraphs (3) and (4) and inserting the 
     following new paragraphs:
       ``(3) providing flexible assistance to producers to install 
     and maintain conservation practices that, while sustaining 
     production of food and fiber--
       ``(A) enhance soil, water, and related natural resources, 
     including grazing land, forestland, wetland, and wildlife; 
     and
       ``(B) conserve energy;
       ``(4) assisting producers to make beneficial, cost 
     effective changes to cropping systems, grazing management, 
     energy use, forest management, nutrient management associated 
     with livestock, pest or irrigation management, or other 
     practices on agricultural and forested land; and''.
       (b) Definitions.--Section 1240A of the Food Security Act of 
     1985 (16 U.S.C. 3839aa-1) is amended--
       (1) by striking paragraph (3) and inserting the following 
     new paragraph:
       ``(3) Land management practice.--
       ``(A) In general.--The term `land management practice' 
     means a site-specific nutrient or manure management, 
     integrated pest management, irrigation management, tillage or 
     residue management, grazing management, air quality 
     management, forest management, silvicultural practice, or 
     other land management practice carried out on eligible land 
     that the Secretary determines is needed to protect from 
     degradation, in the most cost-effective manner, water, soil, 
     or related resources.
       ``(B) Forest management practices.--For purposes of 
     subparagraph (A), forest management practices may include 
     activities that the Secretary determines are needed to--
       ``(i) improve water quality;
       ``(ii) restore forest biodiversity; or
       ``(iii) control invasive species.
       ``(C) Coordinated implementation.--A land management 
     practice may involve multiple landowners implementing 
     eligible conservation activities in a coordinated fashion.'';
       (2) in paragraph (4), by inserting ``alpacas, bison,'' 
     after ``sheep,'';
       (3) by redesignating paragraphs (3), (4), (5), and (6), as 
     so amended, as paragraphs (4), (5), (6), and (8), 
     respectively;
       (4) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) Integrated pest management.--The term `integrated 
     pest management' means a sustainable approach to managing 
     pests by combining biological, cultural, physical, and 
     chemical tools in a way that minimizes economic, health, an 
     environmental risks.''; and
       (5) by inserting after paragraph (6), as so redesignated, 
     the following new paragraph:
       ``(7) Socially disadvantaged farmer or rancher.--The term 
     `socially disadvantaged farmer or rancher' has the meaning 
     given the term under section 355(e) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 2003(e)).''.
       (c) Eligible Practices.--Section 1240B(a) of the Food 
     Security Act of 1985 (16 U.S.C. 3839aa-2(a)) is amended--
       (1) in paragraph (1), by striking ``2010'' and inserting 
     ``2012''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A), by inserting ``or receives organic 
     certification'' after ``chapter''; and
       (B) by striking subparagraph (B) and inserting the 
     following new subparagraph:
       ``(B) a producer that implements a land management 
     practice, receives technical services from an approved third-
     party provider, develops a comprehensive nutrient management 
     plan, or implements energy efficiency improvements or 
     renewable energy systems, in accordance with this chapter 
     shall be eligible to receive incentive payments.''.
       (d) Beginning Farmers or Ranchers and Socially 
     Disadvantaged Farmers or Ranchers.--Section 1240B(d)(2) of 
     the Food Security Act of 1985 (16 U.S.C. 3839aa-2(d)(2)) is 
     amended by striking subparagraph (A) and inserting the 
     following new subparagraph:
       ``(A) Increased cost-share for certain producers.--The 
     Secretary shall increase the amount provided under paragraph 
     (1) to a producer that is a beginning farmer or rancher, 
     socially disadvantaged farmer or rancher, or limited resource 
     farmer or rancher to 90 percent of the cost of the practice, 
     as determined by the Secretary.''.
       (e) Additional Support for Use of Gasifier Technology.--
     Section 1240B(d)(2) of the Food Security Act of 1985 (16 
     U.S.C. 3839aa-2(d)(2)) is amended by adding at the end the 
     following new subparagraph:
       ``(C) Increased cost-share for use of gasifier 
     technology.--In carrying out this chapter, the Secretary 
     shall promote air quality by providing for a 90 percent cost 
     share for those projects that utilize gasifier technology for 
     the purposes of the disposal of animal carcasses and by-
     products.''.
       (f) Incentive Payments.--Section 1240B(e) of the Food 
     Security Act of 1985 (16 U.S.C. 3839aa-2(e)) is amended--
       (1) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) Availability of incentive payments.--The Secretary 
     shall make incentive payments in an amount and at a rate 
     determined by the Secretary to be necessary to encourage a 
     producer--
       ``(A) to perform 1 or more land management practices;
       ``(B) to receive technical services from an approved third-
     party provider;
       ``(C) to develop a comprehensive nutrient management plan; 
     or
       ``(D) to implement energy efficiency improvements or 
     renewable energy systems.''; and
       (2) in paragraph (2), by inserting ``pollinator habitat,'' 
     after ``invasive species,''.
       (g) Allocation of Funding.--Section 1240B(g) of the Food 
     Security Act of 1985 (16 U.S.C. 3839aa-2(g)) is amended--
       (1) by striking ``For each'' and inserting the following:
       ``(1) Allocation for livestock production practices.--For 
     each'';
       (2) in such paragraph, as so designated, by striking 
     ``2007'' and inserting ``2012''; and
       (3) by adding at the end the following new paragraph:
       ``(2) Allocation for certain producers.--For each of fiscal 
     years 2007 through 2012, of the funds made available for 
     cost-share payments and incentive payments under this 
     chapter, the Secretary shall reserve, for a period of not 
     less than 90 days after the date on which the funds are made 
     available for the fiscal year--
       ``(A) not less than 5 percent for beginning farmers and 
     ranchers; and
       ``(B) not less than 5 percent of funds for socially 
     disadvantaged farmers and ranchers and limited resource 
     farmers and ranchers.''.
       (h) Eligibility of Market Agencies and Custom Feeding 
     Businesses.--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:
       ``(i) Eligibility of Market Agencies and Custom Feeding 
     Businesses for Assistance.--A market agency (as defined in 
     section 301(c) of the Packers and Stockyards Act, 1921 (7 
     U.S.C. 201(c))) or custom feeding business may receive 
     technical assistance, cost-share payments, or incentive 
     payments under the program. Any reference to `producer' in 
     this chapter shall be deemed to include a market agency or 
     custom feeding business.''.
       (i) Evaluation of Applications for Cost-Share Payments and 
     Incentive Payments.--Section 1240C of the Food Security Act 
     of 1985 (16 U.S.C. 3839aa-3) is amended to read as follows:

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

       ``(a) Priorities and Grouping of Applications.--In 
     evaluating applications for cost-share payments and incentive 
     payments, the Secretary shall--
       ``(1) prioritize applications based on their overall level 
     of cost-effectiveness to ensure that the conservation 
     practices and approaches proposed are the most efficient 
     means of achieving the anticipated environmental benefits of 
     the project;
       ``(2) prioritize applications based on how effectively and 
     comprehensively the project addresses the designated resource 
     concern or resource concerns;
       ``(3) prioritize applications that best fulfill the purpose 
     of the environmental quality incentives program specified in 
     section 1240(1);
       ``(4) develop criteria for evaluating applications that 
     will ensure that national, State, and local conservation 
     priorities are effectively addressed; and
       ``(5) to the greatest extent practicable, group 
     applications of similar crop or livestock operations for 
     evaluation purposes or otherwise evaluate applications 
     relative to other applications for similar farming 
     operations.
       ``(b) Evaluation Process.--The Secretary shall ensure that 
     the evaluation process is as streamlined and efficient as 
     practicable in the case of applications that--
       ``(1) involve operations with substantial and sound 
     environmental management systems; and
       ``(2) seek a single practice or a limited number of 
     practices to further improve the environmental performance of 
     that system.''.
       (j) Duties of Producers.--Section 1240D(2) of the Food 
     Security Act of 1985 (16 U.S.C. 3839aa-4(2)) is amended by 
     striking ``or ranch'' and inserting ``, ranch, or 
     forestland''.
       (k) Program Plan.--Section 1240E of the Food Security Act 
     of 1985 (16 U.S.C. 3839aa-5) is amended by striking 
     subsections (a) and (b) and inserting the following new 
     subsections:

[[Page 21470]]

       ``(a) Plan of Operations.--To be eligible to receive cost-
     share payments or incentive payments under the program, a 
     producer shall submit to the Secretary for approval a plan of 
     operations that--
       ``(1) specifies practices covered under the program;
       ``(2) 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;
       ``(3) in the case of a confined livestock feeding 
     operation, provides for development and implementation of a 
     comprehensive nutrient management plan, if applicable; and
       ``(4) in the case of forestland, is consistent with the 
     provisions of a forest management plan meeting with the 
     approval of the Secretary, which may include a forest 
     stewardship plan, as specified in section 5 of the 
     Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 
     2103a), other practice plan approved by the State forester, 
     or other plan determined appropriate by the Secretary.
       ``(b) Avoidance of Duplication.--The Secretary shall--
       ``(1) consider a permit acquired under a water or air 
     quality regulatory program as the equivalent of a plan of 
     operations under subsection (a); and
       ``(2) to the maximum extent practicable, eliminate 
     duplication of planning activities under the program under 
     this chapter and comparable conservation programs.''.
       (l) Duties of the Secretary.--Section 1240F of the Food 
     Security Act of 1985 (16 U.S.C. 3839aa-6) is amended--
       (1) by striking ``To the extent'' and inserting ``(a) 
     Provision of Assistance.--To the extent''; and
       (2) by adding at the end the following new subsection:
       ``(b) Water Savings.--In the case of a practice primarily 
     intended to conserve water, the Secretary may provide 
     assistance to a producer under this section only if the 
     Secretary determines that--
       ``(1) the practice results in a minimum reduction, as 
     determined by the Secretary, in the total consumptive use of 
     ground water or surface water resources affected by the 
     practice;
       ``(2) any saved water remains in the source for the useful 
     life of the practice; and
       ``(3) the practice will not result, directly or indirectly, 
     in an increase in the consumptive use of water in the 
     agriculture operation of the producer.''.
       (m) Conservation Innovation Grants.--Section 1240H of the 
     Food Security Act of 1985 (16 U.S.C. 3839aa-8) is amended to 
     read as follows:

     ``SEC. 1240H. CONSERVATION INNOVATION GRANTS.

       ``(a) Competitive Grants.--The Secretary shall pay the cost 
     of competitive grants that are intended to stimulate 
     innovative approaches to leveraging Federal investment in 
     environmental enhancement and protection, in conjunction with 
     agricultural production or forest resource management, 
     through the program.
       ``(b) Use.--The Secretary may provide grants under this 
     section to governmental and non-governmental organizations 
     and persons, on a competitive basis, to carry out projects 
     that--
       ``(1) involve producers that are eligible for payments or 
     technical assistance under the program;
       ``(2) leverage funds made available to carry out the 
     program under this chapter with matching funds provided by 
     State and local governments and private organizations to 
     promote environmental enhancement and protection in 
     conjunction with agricultural production;
       ``(3) ensure efficient and effective transfer of innovative 
     technologies and approaches demonstrated through projects 
     that receive funding under this section; and
       ``(4) provide environmental and resource conservation 
     benefits through increased participation by producers of 
     specialty crops.
       ``(c) Pilot Program for Comprehensive Conservation 
     Planning.--
       ``(1) Pilot program required.--The Secretary shall 
     establish a pilot program to undertake comprehensive 
     conservation planning to assist producers before they submit 
     an application for assistance under any of the conservation 
     programs authorized by this subtitle.
       ``(2) Conservation planning assistance.--The Secretary 
     shall undertake pilot projects under the pilot program in the 
     locations specified in paragraph (3) to assist producers by 
     making a comprehensive assessment of the resource concerns, 
     needs, and alternative solutions for the producer's entire 
     operation, as determined by the Secretary, following the 
     procedures in the Natural Resources Conservation Service 
     conservation planning manual. The assistance shall be 
     provided by the Secretary directly or through third party 
     providers certified by the Secretary, and shall not be at the 
     expense of the producer. The results of the comprehensive 
     planning assistance shall be provided to the producer to 
     enable informed choices on the type of financial assistance 
     available under this subtitle that would most effectively 
     address the resource needs of the operation consistent with 
     the environmental goals for the area in which the operation 
     is located.
       ``(3) Pilot projects.--Pilot projects in comprehensive 
     conservation planning shall be undertaken in the Chesapeake 
     Bay watershed, and shall include the identification of 
     hydrologic, soil, and rural land use factors that are unique 
     to the Delmarva Peninsula.
       ``(4) Report.--The Secretary shall conduct an assessment of 
     the effectiveness of the pilot program and publish a report, 
     available to the public, of the results of the assessment. 
     Such assessments shall be undertaken in the second year and 
     the fifth year of the pilot program.
       ``(d) Funding.--
       ``(1) Availability of funds.--Of the funds made available 
     under section 1241(a)(6) for fiscal years 2008 through 2012, 
     the Secretary shall use $30,000,000 for fiscal year 2008, 
     $35,000,000 for fiscal year 2009, $50,000,000 for fiscal year 
     2010, $60,000,000 for fiscal year 2011, and $75,000,000 for 
     fiscal year 2012.
       ``(2) Outreach for certain producers.--Of the funds made 
     available under paragraph (1) for a fiscal year, the 
     Secretary shall use $5,000,000 to make grants to support 
     effective outreach and innovative approaches for outreach and 
     to serve organic producers and producers of specialty crops 
     (as defined in section 3 of the Specialty Crops 
     Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 
     1621 note).
       ``(3) Comprehensive conservation planning.--Of the funds 
     made available under paragraph (1) for a fiscal year, the 
     Secretary shall use $5,000,000 to carry out the comprehensive 
     conservation planning pilot program under subsection (c).
       ``(4) Air quality.--Of the funds made available under 
     paragraph (1), the Secretary shall use $10,000,000 for fiscal 
     year 2008, $15,000,000 for fiscal year 2009, $30,000,000 for 
     fiscal year 2010, $40,000,000 for fiscal year 2011, and 
     $55,000,000 for fiscal year 2012 to support air quality 
     improvement and performance incentives for States to help 
     meet State and local regulatory requirements related to air 
     quality.''.

     SEC. 2106. REGIONAL WATER ENHANCEMENT PROGRAM.

       (a) Purpose and Goals.--The purpose of this section is to 
     authorize a regional water enhancement program, within the 
     environmental quality incentives program, to enhance 
     performance-based, cost-effective conservation carried out 
     through cooperative agreements entered into by the Secretary 
     of Agriculture with producers, governmental entities, and 
     Indian tribes. The goal of the program is to improve water 
     quality or ground and surface water quantity through 
     coordinated program activities on agricultural lands. The 
     Secretary will develop goals and provide coordinated program 
     assistance for water quality or water quantity improvement 
     projects.
       (b) Establishment of Program.--Section 1240I of the Food 
     Security Act of 1985 (16 U.S.C. 3839aa-9) is amended to read 
     as follows:

     ``SEC. 1240I. REGIONAL WATER ENHANCEMENT PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Regional water enhancement activities.--The term 
     `regional water enhancement activities' includes resource 
     condition assessment and modeling, water quality, water 
     quantity or water conservation plan development, management 
     system and environmental monitoring and evaluation, cost-
     share of restoration or enhancement projects, incentive 
     payments for land management practices, easement purchases, 
     conservation contracts with landowners, improved irrigation 
     systems, water banking and other forms of water transactions, 
     groundwater recharge and other conservation related 
     activities that the Secretary determines will help to achieve 
     the water quality or water quantity benefits on agricultural 
     lands identified in a partnership agreement.
       ``(2) Partnership agreement.--The term `partnership 
     agreement' means an agreement between the Secretary and a 
     partner under subsection (d).
       ``(3) Partner.--The term `partner' means an entity that 
     enters into a partnership agreement with the Secretary to 
     carry out regional water enhancement activities. The term 
     includes--
       ``(A) an agricultural producer, agricultural or 
     silvicultural producer association, or other group of such 
     producers
       ``(B) a State or unit of local government, including an 
     irrigation or water district; or
       ``(C) a federally recognized Indian tribe.
       ``(b) Establishment of Program.--
       ``(1) Establishment.--The Secretary shall establish a 
     regional water enhancement program in accordance with this 
     section to improve water quality or water quantity on a 
     regional scale to benefit working agricultural land and other 
     lands surrounding agricultural land.
       ``(2) Identification of water quality and water quantity 
     priority areas.--The Secretary shall identify areas where 
     protecting or improving water quality, water quantity, or 
     both is a priority. In identifying these areas, the Secretary 
     shall prioritize the Chesapeake Bay, the Upper Mississippi 
     River basin, the Everglades, and the Klamath River basin. Not 
     more than 50 percent of the funds made available for the 
     regional water enhancement program shall be reserved for 
     priority areas identified in this paragraph.
       ``(c) Selection of Partners.--
       ``(1) Solicitation of partnership proposals.--Not later 
     than 90 days after the date of the enactment of the Farm, 
     Nutrition, and Bioenergy Act of 2007, the Secretary shall 
     invite prospective partners to submit competitive grant 
     proposals for regional water enhancement partnerships.
       ``(2) Elements.--To be eligible for consideration for 
     participation in the program, a proposal submitted by a 
     partner shall contain the following elements:
       ``(A) Identification of the exact geographic area for which 
     the partnership is proposed, which may be based on--
       ``(i) a watershed (or portion thereof);
       ``(ii) an irrigation, water, drainage district, including 
     service area; or

[[Page 21471]]

       ``(iii) some other geographic area with characteristics 
     making it suitable for landscape-wide program implementation, 
     as may be determined by the Secretary.
       ``(B) Identification of the water quality or water quantity 
     issues that are of concern in the area.
       ``(C) A method for determining a baseline assessment of 
     water quality, water quantity, and other resource conditions 
     in the region.
       ``(D) A detailed description of the proposed regional water 
     enhancement activities to be undertaken in the area, 
     including an estimated timeline and budget for each activity.
       ``(E) A description of the performance measures to be used 
     to gauge the effectiveness of the regional water enhancement 
     activities.
       ``(F) A description of other regional water enhancement 
     activities carried out by the Secretary.
       ``(G) A description of regional water enhancement 
     activities carried out by partners through other means.
       ``(3) Selection of proposals.--The Secretary shall award 
     grants competitively, based on the following criteria applied 
     by the Secretary:
       ``(A) Proposals that will result in the inclusion of the 
     highest percentage of agricultural lands and producers in the 
     area.
       ``(B) Proposals that will result in the highest percentage 
     of on-the-ground activities versus administrative costs.
       ``(C) Proposals that will provide the greatest contribution 
     to sustaining or enhancing agricultural production in the 
     area or rural economic development.
       ``(D) Proposals that include performance measures that will 
     allow post-activity conditions to be satisfactorily measured 
     to gauge overall effectiveness.
       ``(E) Proposals that will capture surface-water runoff on 
     farms through the construction, improvement, or maintenance 
     of irrigation ponds.
       ``(F) Proposals that have the highest likelihood of 
     improving issues of concern for the area through the 
     participation of multiple interested persons.
       ``(G) Proposals that will assist producers in meeting a 
     regulatory requirement imposed on lands in agriculture 
     production that reduces the economic scope of the producer's 
     operation.
       ``(4) Duration.--Grants under this subsection shall be made 
     on a multi-year basis, not to exceed 5 years total, except 
     that the Secretary may terminate a grant earlier if the 
     performance measures are not being met.
       ``(d) Partnership Agreements.--
       ``(1) Generally.--Not later than 30 days after the award of 
     a grant to a partner under subsection (c), the Secretary 
     shall enter into a partnership agreement with the grant 
     recipient. At a minimum, the agreement shall contain--
       ``(A) a description of the respective duties and 
     responsibilities of the Secretary and the partner in carrying 
     out regional water enhancement activities; and
       ``(B) the criteria that the Secretary will use to measure 
     the overall effectiveness of the regional water enhancement 
     activities funded by the grant in improving the water quality 
     or quantity conditions of the region relative to the 
     performance measures in the grant proposal.
       ``(2) Acceptance of contributions.--The Secretary may 
     accept and use contributions of non-Federal funds to 
     administer the program under this section.
       ``(3) Waiver authority.--The Secretary shall waive the 
     limitation in section 1001D of this Act if the Secretary 
     determines that doing so is necessary to fulfill the 
     objectives of the regional water enhancement program.
       ``(e) Modification of Secretarial Authority.--To the extent 
     that the Secretary will be carrying out regional water 
     enhancement activities in an area, the Secretary may use the 
     general authorities provided in this subtitle to ensure that 
     all producers and landowners in the region have the 
     opportunity to participate in such activities.
       ``(f) Relationship With Other Programs.--The Secretary 
     shall ensure that, to the extent producers and landowners are 
     individually participating in other programs under this 
     subtitle in a region where the regional water enhancement 
     program is in effect, any improvements to water quality or 
     water quantity attributable to such individual participation 
     is included in the evaluation criteria developed under 
     subparagraph (d)(1)(B).
       ``(g) Consistency With State Law.--Any regional water 
     enhancement activity conducted under this section shall be 
     consistent with State water laws.
       ``(h) Funding.--
       ``(1) Availability of funds.--In addition to funds made 
     available to carry out this chapter under section 1241(a)(6), 
     the Secretary shall use funds of the Commodity Credit 
     Corporation to carry out this section in the amount of, to 
     the maximum extent practicable, $60,000,000 for each of 
     fiscal years 2008 through 2012.
       ``(2) Limitation on administrative expenses.--Not more than 
     3 percent of the funds made available under paragraph (1) for 
     a fiscal year may be used for administrative expenses of the 
     Secretary.''.

     SEC. 2107. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

       (a) Authorization of Appropriations.--Section 1240O(b) of 
     the Food Security Act of 1985 (16 U.S.C. 3839bb-2(b)) is 
     amended by striking ``$5,000,000 for each of fiscal years 
     2002 through 2007'' and inserting ``$20,000,000 for each of 
     fiscal years 2008 through 2012''.
       (b) Additional Funding.--Section 1240O of the Food Security 
     Act of 1985 (16 U.S.C. 3839bb-2) is amended by adding at the 
     end the following new subsection:
       ``(c) One-Time Infusion of Funds.--Of the funds of the 
     Commodity Credit Corporation, the Secretary shall make 
     available, on a one-time basis, $10,000,000 to carry out this 
     section. Such funds shall remain available until expended.''.

     SEC. 2108. CONSERVATION OF PRIVATE GRAZING LAND.

       Section 1240M(e) of the Food Security Act of 1985 (16 
     U.S.C. 3839bb(e)) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 2109. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND 
                   SEDIMENT CONTROL.

       Section 1240P(c) of the Food Security Act of 1985 (16 
     U.S.C. 3839bb-3(c)) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 2110. FARM AND RANCHLAND PROTECTION PROGRAM.

       Subchapter B of chapter 2 of subtitle D of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3838h et seq.) is 
     amended to read as follows:

         ``Subchapter B--Farm and Ranchland Protection Program

     ``SEC. 1238H. DEFINITIONS.

       ``In this subchapter:
       ``(1) Eligible entity.--The term `eligible entity' means 
     any of the following:
       ``(A) An agency of a State or local government or an Indian 
     tribe (including a farmland protection board or land resource 
     council established under State law).
       ``(B) An organization that is 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.
       ``(C) An organization described in section 501(c)(3) of the 
     Internal Revenue Code of 1986 that is exempt from taxation 
     under section 501(a) of that Code.
       ``(D) An organization described in section 509(a)(2) of the 
     Internal Revenue Code of 1986.
       ``(E) An organization described in section 509(a)(3) of the 
     Internal Revenue Code of 1986 that is controlled by an 
     organization described in section 509(a)(2), of that Code.
       ``(2) Eligible land.--The term `eligible land' means land 
     on a farm or ranch that--
       ``(A) is cropland;
       ``(B) is rangeland;
       ``(C) is grassland;
       ``(D) is pasture land;
       ``(E) is forest land that is an incidental part of an 
     agricultural operation, as determined by the Secretary; or
       ``(F) contains historical or archaeological resources.
       ``(3) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(4) Program.--The term `program' means the farm and 
     ranchland protection program established under section 
     1238I(a).
       ``(5) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.

     ``SEC. 1238I. FARM AND RANCHLAND PROTECTION PROGRAM.

       ``(a) Establishment.--
       ``(1) Establishment and purpose.--The Secretary shall 
     establish and carry out a farm and ranchland protection 
     program under which the Secretary shall facilitate and 
     provide funding for the purchase of conservation easements or 
     other interests in eligible land that is subject to a pending 
     offer from a certified State or eligible entity for the 
     purpose of protecting the agricultural use and related 
     conservation values of the land by limiting incompatible 
     nonagricultural uses of the land.
       ``(2) Priority.--In carrying out the program, the Secretary 
     shall give the highest priority--
       ``(A) to protecting farm and ranchland with prime, unique 
     or other productive soils that are at risk of non-
     agricultural development; or
       ``(B) to projects that further a State or local policy 
     consistent with the purposes of the program.
       ``(b) Grants to Certified States.--The Secretary shall make 
     grants to States certified by the Secretary under subsection 
     (c). Such grants shall be made based on demonstrated need for 
     farm and ranch land protection. Grants may be made for 
     multiple transactions so long as all funds provided under the 
     program are used to purchase conservation easements or other 
     interests in land in a timely and effective manner. A State 
     receiving a grant under this subsection may use up to 10 
     percent of the grant funds for reasonable costs of purchasing 
     and enforcing conservation easements.
       ``(c) Certification of States for Grants.--
       ``(1) Certification process.--The Secretary shall implement 
     a process, to be published in the Federal Register, for 
     certifying States as eligible to participate in the program. 
     The Secretary may provide a reasonable transitional period, 
     not to extend past September 30, 2008, in order to allow 
     continued operation of the program for such time as needed 
     for the Secretary to implement the certification process.
       ``(2) Certification requirements.--To be certified under 
     the process implemented under paragraph (1), a State shall 
     demonstrate, at a minimum, the following:
       ``(A) A legislative or organizational purpose consistent 
     with the purposes of the program.
       ``(B) The necessary authority and the resources and 
     technical ability to monitor and enforce the terms of 
     conservation easements or other interests in land or to 
     require the holder of such easements or other interests in 
     land acquired with the use of funding under the program to 
     monitor and enforce the terms of such easements or other 
     interests in land.

[[Page 21472]]

       ``(C) The capacity to provide the necessary matching funds 
     from non-Federal sources for projects undertaken under the 
     program and to use program funds in a timely and effective 
     manner.
       ``(D) Policies and procedures to ensure that, on average, 
     the purchase price of conservation easements or other 
     interests in land purchased with program funds do not exceed 
     the fair market value of the easements or other interests in 
     land.
       ``(E) Policies and procedures that ensure that conservation 
     easements or other interests in land purchased with program 
     funds will continue to protect the agricultural use and 
     related conservation values of the land.
       ``(F) Provision for continued stewardship of the 
     conservation easements or other interest in land purchased 
     with program funds in the event the State loses its 
     certification under the program.
       ``(G) A determination of its own criteria and priorities 
     for purchasing conservation easements and other interests in 
     land under the program.
       ``(d) Agreements With Eligible Entities.--
       ``(1) Agreements authorized.--The Secretary may enter into 
     an agreement with an eligible entity, under which the entity 
     may purchase conservation easements using a combination of 
     its own funds and funds distributed by the Secretary under 
     the program.
       ``(2) Terms and conditions.--An agreement under this 
     subsection shall stipulate the terms and conditions under 
     which the eligible entity shall use funds provided by the 
     Secretary under the program. The eligible entity shall be 
     authorized to use its own terms and conditions for 
     conservation easements and other purchases of interests in 
     land, so long as--
       ``(A) such terms and conditions are consistent with the 
     purposes of the program and permit effective enforcement of 
     the conservation purposes of such easements or other 
     interests;
       ``(B) the eligible entity has in place a requirement 
     consistent with agricultural activities regarding the 
     impervious surfaces to be allowed for any conservation 
     easement or other interest in land purchased using funds 
     provided under the program; and
       ``(C) the eligible entity requires use of a conservation 
     plan for any highly erodible cropland for which a 
     conservation easement or other interest in land has been 
     purchased using funds provided under the program.
       ``(e) Federal Contingent Right of Enforcement.--The 
     Secretary may require the inclusion of a Federal contingent 
     right of enforcement or executory limitation in a 
     conservation easement or other interest in land for 
     conservation purposes purchased with Federal funds provided 
     under the program, in order to preserve the easement as a 
     party of last resort. The inclusion of such a right or 
     interest shall not be considered to be the Federal 
     acquisition of real property and the Federal standards and 
     procedures for land acquisition shall not apply to the 
     inclusion of the right or interest
       ``(f) Review; Revocation.--
       ``(1) Review.--Every 3 years, the Secretary shall review 
     the certification of States under subsection (c) and the 
     performance of eligible entities in meeting the terms and 
     conditions of an agreement under subsection (d).
       ``(2) Revocation.-- If, in the determination of the 
     Secretary, a State no longer meets the qualifications 
     described in subsection (c)(2) or an eligible entity is not 
     meeting the terms and conditions of an agreement under 
     subsection (d), the Secretary may--
       ``(A) revoke the certification of the State or terminate 
     the agreement with the eligible entity; or
       ``(B) allow the State or eligible entity a specified period 
     of time in which to take such actions as may be necessary to 
     retain its certification or to meet the terms and conditions 
     of the agreement, as the case may be.
       ``(g) Conservation Plan.--Any highly erodible cropland for 
     which a conservation easement or other interest is purchased 
     under this subchapter shall be subject to the requirements of 
     a conservation plan. In the case of an easement or other 
     interest in land that is perpetual in duration, the Secretary 
     may not require the conversion of the cropland to less 
     intensive uses if, under such plan, soil erosion can be 
     reduced to `T' or below.
       ``(h) Cost Sharing.--The share of the cost provided under 
     this section for purchasing a conservation easement or other 
     interest in land shall not exceed 50 percent of the appraised 
     fair market value of the conservation easement or other 
     interest in eligible land. Fair market value shall be 
     determined on the basis of an appraisal of the conservation 
     easement or other interest in eligible land using an 
     industry-approved methodology determined by the entity.''.

     SEC. 2111. FARM VIABILITY PROGRAM.

       Section 1238J(b) of the Food Security Act of 1985 (16 
     U.S.C. 3838j(b)) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 2112. WILDLIFE HABITAT INCENTIVE PROGRAM.

       (a) Reauthorization.--Section 1240N of the Food Security 
     Act of 1985 (16 U.S.C. 3839bb-1) is amended by adding at the 
     end the following new subsection:
       ``(d) Duration of Program.--Using funds made available 
     under section 1241(a)(7), the Secretary shall carry out the 
     program during fiscal years 2008 through 2012.''.
       (b) Cost Share for Long-Term Agreements and Impact on Scope 
     of Operations.--Section 1240N(b)(2) of the Food Security Act 
     of 1985 (16 U.S.C. 3839bb-1(b)(2)) is amended--
       (1) in the paragraph heading by inserting ``and impact on 
     scope of operations'' after ``agreements'';
       (2) in subparagraph (A), by striking ``years,'' and 
     inserting ``years, or that will assist producers in meeting a 
     regulatory requirement imposed on lands in agriculture 
     production that reduces the economic scope of the producer's 
     operation,''; and
       (3) in subparagraph (B), by striking ``15 percent'' and 
     inserting ``25 percent''.
           Subtitle B--Conservation Programs Under Other Laws

     SEC. 2201. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM.

       (a) Eligible States.--Section 524(b)(1) of the Federal Crop 
     Insurance Act (7 U.S.C. 1524(b)(1)) is amended--
       (1) by inserting ``Hawaii,'' after ``Delaware,''; and
       (2) by inserting ``Virginia,'' after ``Vermont,''.
       (b) Technical Correction.--Section 524(b)(4)(B)(i) of the 
     Federal Crop Insurance Act (7 U.S.C. 1524(b)(4)(B)(i)) is 
     amended by striking ``Except as provided in clauses (ii) and 
     (iii), the'' and inserting ``The''.
       (c) Certain Uses.--Section 524(b)(4) of the Federal Crop 
     Insurance Act (7 U.S.C. 1524(b)(4)(B)) is amended by adding 
     at the end the following new subparagraph:
       ``(C) Certain uses.--Of the amounts made available to carry 
     out this subsection for a fiscal year, the Commodity Credit 
     Corporation shall use not less than--
       ``(i) 50 percent to carry out subparagraphs (A), (B), and 
     (C) of paragraph (2) through the Natural Resources 
     Conservation Service;
       ``(ii) 10 percent to provide organic certification cost 
     share assistance through the Agricultural Marketing Service; 
     and
       ``(iii) 40 percent to conduct activities to carry out 
     subparagraph (F) of paragraph (2) through the Risk Management 
     Agency.''.

     SEC. 2202. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

       (a) Locally Led Planning Process.--Section 1528 of the 
     Agriculture and Food Act of 1981 (16 U.S.C. 3451) is 
     amended--
       (1) in paragraph (1), by striking ``planning process'' in 
     the matter preceding subparagraph (A) and inserting ``locally 
     led planning process''; and
       (2) in paragraph (9), by striking ``council'' and inserting 
     ``locally led council''.
       (b) Authorized Technical Assistance.--Section 1528(13) of 
     the Agriculture and Food Act of 1981 (16 U.S.C. 3451(13)) is 
     amended by striking subparagraphs (C) and (D) and inserting 
     the following new subparagraphs:
       ``(C) providing assistance for the implementation of area 
     plans and projects; and
       ``(D) providing services which bring to bear the resources 
     of Department of Agriculture programs in a local community, 
     as defined in the locally led planning process.''.
       (c) Improved Provision of Technical Assistance.--Section 
     1531 of the Agriculture and Food Act of 1981 (16 U.S.C. 3454) 
     is amended--
       (1) by inserting ``(a) In General.--'' before ``In 
     carrying''; and
       (2) by adding at the end the following new subsection:
       ``(b) Coordinator.--To improve the provision of technical 
     assistance to councils under this subtitle, the Secretary 
     shall designate an individual, to be known as the 
     `Coordinator', for each council. The Coordinator shall be 
     directly responsible for the provision of technical 
     assistance to the council.''.
       (d) Program Evaluation.--Section 1534 of the Agriculture 
     and Food Act of 1981 (16 U.S.C. 3457) is repealed.

     SEC. 2203. SMALL WATERSHED REHABILITATION PROGRAM.

       (a) Availability of Funds.--Section 14(h)(1) of the 
     Watershed Protection and Flood Prevention Act (16 U.S.C. 
     1012(h)(1)) is amended by adding at the end the following new 
     subparagraph:
       ``(G) $50,000,000 for each of fiscal years 2009 through 
     2012.''.
       (b) Authorization of Appropriations.--Section 14(h)(2)(E) 
     of the Watershed Protection and Flood Prevention Act (16 
     U.S.C. 1012(h)(2)(E)) is amended by striking ``fiscal year 
     2007'' and inserting ``each of fiscal years 2007 through 
     2012''.
              Subtitle C--Additional Conservation Programs

     SEC. 2301. CHESAPEAKE BAY PROGRAM FOR NUTRIENT REDUCTION AND 
                   SEDIMENT CONTROL.

       Chapter 5 of subtitle D of the Food Security Act of 1985 is 
     amended by inserting after section 1240P (16 U.S.C. 3839bb-3) 
     the following new section:

     ``SEC. 1240Q. RIVER RESTORATION IN THE CHESAPEAKE BAY 
                   WATERSHED.

       ``(a) Chesapeake Bay Watershed Defined.--In this section, 
     the term `Chesapeake Bay watershed' means all tributaries, 
     backwaters, and side channels, including their watersheds, 
     draining into the Chesapeake Bay.
       ``(b) Comprehensive Plan for Chesapeake Bay Watershed.--
       ``(1) Development.--The Secretary of Agriculture shall 
     develop, as expeditiously as practicable, a proposed 
     comprehensive plan for the purpose of restoring, preserving, 
     and protecting the Chesapeake bay watershed.
       ``(2) Proven technologies and innovative approaches.--The 
     comprehensive plan shall provide for the development of new 
     technologies and innovative approaches to advance the 
     following goals:
       ``(A) Improvement of water quality and quantity within the 
     Chesapeake Bay.
       ``(B) Restoration, enhancement, and preservation of habitat 
     for plants and wildlife.

[[Page 21473]]

       ``(C) Increase economic opportunity for producers and rural 
     communities.
       ``(3) Specific components.--The comprehensive plan shall 
     include such features as are necessary to provide for--
       ``(A) the development and implementation of a program for 
     erosion prevention and control, sediment control and sediment 
     removal, and reduction of nutrient loads;
       ``(B) the development and implementation of a program for--
       ``(i) the planning, conservation, evaluation, and 
     construction of measures for fish and wildlife habitat 
     conservation and rehabilitation; and
       ``(ii) stabilization and enhancement of land and water 
     resources; and
       ``(C) the development and implementation of a long-term 
     resource monitoring program.
       ``(4) Consultation.--The comprehensive plan shall be 
     developed by the Secretary in consultation with appropriate 
     Federal and State agencies.
       ``(c) Submission of Plan.--
       ``(1) Submission.--Not later than 2 years after the date of 
     enactment of the Farm, Nutrition, and Bioenergy Act of 2007, 
     the Secretary shall transmit to Congress a report containing 
     the comprehensive plan.
       ``(2) Additional studies and analyses.--After submission of 
     the report required by paragraph (1), the Secretary shall 
     continue to conduct such studies and analyses related to the 
     comprehensive plan as are necessary, consistent with this 
     subsection.
       ``(d) Restoration Enhancement and Preservation Projects.--
       ``(1) Project authority.--In cooperation with appropriate 
     Federal and State agencies, the Secretary shall carry out 
     restoration enhancement and preservation projects for the 
     Chesapeake Bay watershed to address the goals specified in 
     subsection (b)(2). To achieve the restoration, preservation, 
     and protection benefits of a project, the Secretary shall 
     proceed expeditiously with the implementation of the project 
     consistent with the comprehensive plan.
       ``(2) Critical projects.--In carrying out this subsection, 
     the Secretary shall begin with the Susquehanna River, the 
     Shenandoah River, the Potomac River, and the Patuxent River.
       ``(3) Availability of funds.--Of the funds of the Commodity 
     Credit Corporation, the Secretary shall use to carry out 
     projects under this subsection the following amounts:
       ``(A) $10,000,000 for fiscal year 2008.
       ``(B) $15,000,000 for fiscal year 2009.
       ``(C) $30,000,000 for fiscal year 2010.
       ``(D) $40,000,000 for fiscal year 2011.
       ``(E) $55,000,000 for fiscal year 2012.
       ``(4) Federal share.--The Federal share of the cost of 
     carrying out any individual project under this subsection 
     shall not exceed $5,000,000.
       ``(e) General Provisions.--
       ``(1) Water quality.--In carrying out projects and 
     activities under this section, the Secretary shall take into 
     account the protection of water quality by considering 
     applicable State water quality standards.
       ``(2) Public participation.--In developing the 
     comprehensive plan under subsection (b) and carrying out 
     projects under subsection (d), the Secretary shall implement 
     procedures to facilitate public participation, including 
     providing advance notice of meetings, providing adequate 
     opportunity for public input and comment, maintaining 
     appropriate records, and making a record of the proceeding of 
     meetings available for public inspection.
       ``(f) Coordination.--The Secretary shall integrate and 
     coordinate projects and activities carried out under this 
     section with other Federal and State programs, projects, and 
     activities.
       ``(g) Cost Sharing.--
       ``(1) Non-federal share.--Subject to subsection (d)(4), the 
     non-Federal share of the cost of projects and activities 
     carried out under this section shall be not less than 35 
     percent.
       ``(2) Operation, maintenance, rehabilitation, and 
     replacement.--The operation, maintenance, rehabilitation, and 
     replacement of projects carried out under this section shall 
     be a non-Federal responsibility.
       ``(h) Sense of Congress Regarding Chesapeake Bay Executive 
     Council.--
       ``(1) Findings.--Congress finds the following:
       ``(A) One of the stated goals of the Chesapeake Bay 
     Agreement is to `develop, promote, and achieve sound land use 
     practices which protect and restore watershed resources and 
     water quality, maintain reduced pollutant loadings for the 
     Bay and its tributaries, and restore and preserve aquatic 
     living resources'.
       ``(B) Department of Agriculture conservation programs are 
     integral to the restoration of the Chesapeake Bay and 
     achieving the water quality goals for the Chesapeake Bay 
     program.
       ``(2) Sense of congress.--In light of the findings 
     specified in paragraph (1), it is the sense of Congress that 
     the Secretary of Agriculture should be a member of the 
     Chesapeake Bay Executive Council, and is authorized to do so 
     under section 1(3) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590a(3)).''.

     SEC. 2302. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE 
                   PROGRAM.

       Chapter 5 of subtitle D of title XII of the Food Security 
     Act of 1985 is amended by inserting after section 1240Q, as 
     added by section 2301, the following new section:

     ``SEC. 1240R. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE 
                   PROGRAM.

       ``(a) Establishment.--The Secretary shall establish a 
     voluntary public access program under which States and tribal 
     governments may apply for grants to encourage owners and 
     operators of privately-held farm, ranch, and forest land to 
     voluntarily make that land available for access by the public 
     for wildlife-dependent recreation, including hunting or 
     fishing, under programs administered by the States and tribal 
     governments.
       ``(b) Applications.--In submitting applications for a grant 
     under the program, a State or tribal government shall 
     describe--
       ``(1) the benefits that the State or tribal government 
     intends to achieve by encouraging public access to private 
     farm and ranch land for--
       ``(A) hunting and fishing; and
       ``(B) to the maximum extent practicable, other recreational 
     purposes; and
       ``(2) the methods that will be used to achieve those 
     benefits.
       ``(c) Priority.--In approving applications and awarding 
     grants under the program, the Secretary shall give priority 
     to States and tribal governments that--
       ``(1) have consistent opening dates for migratory bird 
     hunting for both residents and non-residents;
       ``(2) propose to maximize participation by offering a 
     program the terms of which are likely to meet with widespread 
     acceptance among landowners;
       ``(3) propose to ensure that land enrolled under the State 
     or tribal government program has appropriate wildlife 
     habitat;
       ``(4) propose to strengthen wildlife habitat improvement 
     efforts on land enrolled in a special conservation reserve 
     enhancement program described in 1234(f)(4) by providing 
     incentives to increase public hunting and other recreational 
     access on that land; and
       ``(5) propose to use additional Federal, State, tribal 
     government, or private resources in carrying out the program.
       ``(d) Relationship to Other Laws.--Nothing in this section 
     preempts a State or tribal government law, including any 
     State or tribal government liability law.
       ``(e) Regulations.--The Secretary shall promulgate such 
     regulations as are necessary to carry out this section.
       ``(f) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary $20,000,000 for each of 
     fiscal years 2008 through 2012 to carry out this section.''.
                 Subtitle D--Administration and Funding

     SEC. 2401. FUNDING OF CONSERVATION PROGRAMS UNDER FOOD 
                   SECURITY ACT OF 1985.

       (a) In General.--Section 1241(a) of the Food Security Act 
     of 1985 (16 U.S.C. 3841(a)) is amended in the matter 
     preceding paragraph (1), by striking ``2007'' and inserting 
     ``2012''.
       (b) Conservation Security Program.--Paragraph (3) of 
     section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 
     3841(a)) is amended to read as follows:
       ``(3) The conservation security program under subchapter A 
     of chapter 2, using, to the maximum extent practicable--
       ``(A) in the case of conservation security contracts 
     entered into before October 1, 2007, under such subchapter, 
     as in effect on the day before the date of the enactment of 
     the Farm, Nutrition, and Bioenergy Act of 2007--
       ``(i) $1,454,000,000 for the period of fiscal years 2007 
     through 2012; and
       ``(ii) $1,927,000,000 for the period of fiscal years 2007 
     through 2017; and
       ``(B) in the case of conservation security contracts 
     entered into on or after October 1, 2011, under such 
     subchapter--
       ``(i) $501,000,000 for fiscal year 2012; and
       ``(ii) $4,646,000,000 for the period of fiscal years 2012 
     through 2017.''.
       (c) Farm and Ranchland Protection Program.--Paragraph (4) 
     of section 1241(a) of the Food Security Act of 1985 (16 
     U.S.C. 3841(a)) is amended to read as follows:
       ``(4) The farm and ranchland protection program under 
     subchapter B of chapter 2, using, to the maximum extent 
     practicable--
       ``(A) $125,000,000 in fiscal year 2008;
       ``(B) $150,000,000 in fiscal year 2009;
       ``(C) $200,000,000 in fiscal year 2010;
       ``(D) $240,000,000 in fiscal year 2011; and
       ``(E) $280,000,000 in fiscal year 2012.''.
       (d) Environmental Quality Incentives Program.--Paragraph 
     (6) of section 1241(a) of the Food Security Act of 1985 (16 
     U.S.C. 3841(a)) is amended to read as follows:
       ``(6) The environmental quality incentives program under 
     chapter 4, using, to the maximum extent practicable--
       ``(A) $1,500,000,000 in fiscal year 2008;
       ``(B) $1,600,000,000 in fiscal year 2009;
       ``(C) $1,700,000,000 in fiscal year 2010;
       ``(D) $1,800,000,000 in fiscal year 2011; and
       ``(E) $2,000,000,000 in fiscal year 2012.''.
       (e) Wildlife Habitat Incentives Program.--Paragraph (7)(D) 
     of section 1241(a) of the Food Security Act of 1985 (16 
     U.S.C. 3841(a)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 2402. IMPROVED PROVISION OF TECHNICAL ASSISTANCE UNDER 
                   CONSERVATION PROGRAMS.

       Section 1242 of the Food Security Act of 1985 (16 U.S.C. 
     3842) is amended--
       (1) in subsection (a)--
       (A) by striking ``or'' at the end of paragraph (1); and
       (B) by striking paragraph (2) and inserting the following 
     new paragraphs:
       ``(2) through a contract with an approved third party, if 
     available; or
       ``(3) at the option of the producer, through a payment as 
     determined by the Secretary, directly to an approved third 
     party, if available, or to the producer for an approved third 
     party, if available.'';
       (2) in subsection (b)--

[[Page 21474]]

       (A) by striking ``technical assistance'' each place it 
     appears and inserting ``technical services''; and
       (B) in paragraph (1)(B), by striking ``that assistance'' 
     and inserting ``those technical services''; and
       (3) by adding at the end the following new subsections:
       ``(c) Payment Amounts.--
       ``(1) Use of prevailing market rates.--The Secretary shall 
     set the amounts of payments under subsection (b)(1)(B) for 
     technical services at levels not less than prevailing private 
     market rates.
       ``(2) Exception.--Paragraph (1) shall not apply in 
     instances where personnel of the Department of Agriculture 
     are immediately available to provide comparable technical 
     services to eligible producers.
       ``(d) Review and Expedited Approval of Technical Assistance 
     Specifications.--
       ``(1) Review of existing technical assistance 
     specifications.--
       ``(A) Review of specifications.--The Secretary shall direct 
     each State to review and ensure, to the maximum extent 
     practicable, the completeness and relevance of technical 
     assistance specifications in effect as of the date of the 
     enactment of the Farm, Nutrition, and Bioenergy Act of 2007.
       ``(B) Consultation.--In conducting the assessment under 
     subparagraph (A), a State shall consult with specialty crop 
     producers, crop consultants, cooperative extension and land-
     grant universities, nongovernmental organizations, and other 
     qualified entities.
       ``(C) Expedited revision of specifications.--If a State 
     determines under subparagraph (A) that revisions to its 
     technical assistance specifications are necessary, the State 
     shall establish an administrative process for expediting the 
     revisions.
       ``(2) Addressing concerns of specialty crop producers.--
       ``(A) In general.--The Secretary shall direct each State to 
     fully incorporate into its technical assistance 
     specifications and provide for the appropriate range of 
     conservation practices and resource mitigation measures 
     available to specialty crop producers.
       ``(B) Availability of adequate technical assistance.--The 
     Secretary shall ensure that adequate technical assistance is 
     available for the implementation of conservation practices by 
     specialty crop producers through Federal conservation 
     programs. In carrying out this requirement, the Secretary 
     shall develop--
       ``(i) programs that meet specific needs of specialty crop 
     producers through cooperative agreements with other agencies 
     and nongovernmental organizations; and
       ``(ii) program specifications that allow for innovative 
     approaches that engage local resources in providing technical 
     assistance for planning and implementation of conservation 
     practices.
       ``(e) Non-Federal Assistance.--The Secretary may request 
     the services of, and enter into cooperative agreements or 
     contracts with, non-Federal entities to assist the Secretary 
     in providing technical assistance necessary to develop and 
     implement conservation programs under this title.''.

     SEC. 2403. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

       (a) Transfer of Existing Provisions.--Subsections (b), (c), 
     and (d) of section 1243 of the Food Security Act of 1985 (16 
     U.S.C. 3843) are--
       (1) redesignated as subsections (c), (d), and (e), 
     respectively; and
       (2) transferred to appear at the end of section 1244 of 
     such Act (16 U.S.C. 3844).
       (b) Establishment of Partnership Initiative.--Section 1243 
     of the Food Security Act of 1985 (16 U.S.C. 3843), as amended 
     by subsection (a), is amended to read as follows:

     ``SEC. 1243. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

       ``(a) Establishment of Initiative.--
       ``(1) Establishment.--The Secretary shall establish a 
     cooperative conservation partnership initiative (in this 
     section referred to as the `Partnership') within each program 
     described in subsection (b) to address conservation issues 
     involving production agriculture on local, regional, or State 
     levels.
       ``(2) Administration.--The Secretary shall carry out the 
     Partnership--
       ``(A) by selecting proposals for grants and agreements by 
     eligible entities described in subsection (c) through a 
     competitive selection process;
       ``(B) by making grants to, and entering into agreements 
     with, with eligible entities described in subsection (c) for 
     not less than 2 years, but not more than 5 years, in 
     duration; and
       ``(C) by providing producers that are participating in a 
     special project and initiative of an eligible entity 
     preferential enrollment into 1 or more of the programs 
     described in subsection (b).
       ``(3) Purposes.--The purposes of the Partnership are to 
     carry out special projects and initiatives--
       ``(A) to address conservation issues involving production 
     agriculture on local, regional, or State levels through 
     producers and eligible entities;
       ``(B) to address community and economic development needs 
     and opportunities; and
       ``(C) to increase access to, and participation in, the 
     programs described in subsection (b) by producers of 
     specialty crops (as defined in section 3 of the Specialty 
     Crops Competitiveness Act of 2004, Pub. L. 108-465 (7 U.S.C. 
     1621 note).
       ``(b) Covered Programs.--The conservation programs covered 
     by this section are the following:
       ``(1) Conservation security program.
       ``(2) Environmental quality incentives program.
       ``(3) Wildlife habitat incentive program.
       ``(c) Eligible Partners.--Grants may be made or agreements 
     may be entered into under this section with any of the 
     following (or a combination thereof):
       ``(1) States and agencies of States.
       ``(2) Political subdivisions of States, including counties 
     and State- or county-sponsored conservation districts.
       ``(3) Indian tribes.
       ``(4) Nongovernmental organizations and associations, 
     including producer associations, farmer cooperatives, 
     extension associations, and conservation organizations with a 
     history of working cooperatively with producers to 
     effectively address resource concerns related to agricultural 
     production, as determined by the Secretary.
       ``(5) A combination of partners specified in a preceding 
     paragraph.
       ``(d) Applications.--
       ``(1) Competitive process.--The Secretary shall establish a 
     competitive process for considering applications for grants 
     or agreements under this section consistent with the 
     evaluation criteria listed in subsection (e).
       ``(2) Program allocation.--Applications shall include--
       ``(A) specification of the amount of funding or acres, or 
     both, of 1 or more covered programs specified in subsection 
     (b) proposed to be allocated to carry out the special project 
     or initiative; and
       ``(B) a schedule for utilization of funding or acres over 
     the life of the proposed project or initiative.
       ``(e) Evaluation Criteria.--In evaluating applications for 
     grants or agreements under this section the Secretary shall 
     consider the extent to which--
       ``(1) preferential enrollment in the covered programs 
     specified in the application will effectively address the 
     environmental objectives established for the special project 
     or initiative; and
       ``(2) the special project or initiative covered by the 
     application--
       ``(A) enjoys local and regional support from producers and 
     other interested persons, including governmental and 
     nongovernmental organizations with appropriate expertise on 
     the issues the project or initiative seeks to address;
       ``(B) includes clear environmental objectives;
       ``(C) includes a well defined project or initiative plan 
     that identifies sensitive areas requiring treatment and 
     prioritizes conservation practices and activities needed to 
     achieve environmental objectives;
       ``(D) promises adequate and coordinated participation to 
     achieve the objectives of the project or initiative;
       ``(E) coordinates integration of local, State, and Federal 
     efforts to make the best use of available resources and 
     maximize cost-effective investments;
       ``(F) leverages financial and technical resources from 
     sources other than the programs authorized by this subtitle, 
     including financial and technical resources provided by 
     Federal and State agencies, local governments, 
     nongovernmental organizations and associations, and other 
     private sector entities;
       ``(G) describes how all necessary technical assistance will 
     be provided to each producer participating in the project or 
     initiative, including cost estimates for technical assistance 
     and whether such assistance will be provided by technical 
     service providers;
       ``(H) describes how the administrative costs of the project 
     or initiative will be minimized;
       ``(I) addresses a local, State, regional, or national 
     environmental priority or priorities, with particular 
     emphasis on any priority for which there is an existing State 
     or federally approved plan in place for addressing that 
     priority;
       ``(J) includes a plan to evaluate progress, measure 
     results, and meet the purposes of the agreement;
       ``(K) clearly demonstrates that enrollment of producers in 
     covered programs will be consistent with the purposes and 
     policies of each individual program, as established in 
     statute, rules and regulations, and program guidance 
     promulgated by implementing agencies;
       ``(L) links resource and environmental objectives with 
     community development or agritourism objectives that can be 
     improved as a result of addressing the resources of concern;
       ``(M) demonstrates innovation in linking environmental and 
     community development objectives; and
       ``(N) addresses the needs of beginning farmers and 
     ranchers, socially disadvantaged farmers and ranchers, and 
     limited resource farmers and ranchers.
       ``(f) Priorities.--To the maximum extent practicable, 
     consistent with the requirements of subsection (d), the 
     Secretary shall ensure that, each fiscal year, grants are 
     awarded and agreements are entered into under this section to 
     support projects and initiatives that collectively address 
     the resource concerns facing producers, ranchers, and 
     nonindustrial private forest landowners, including 
     specifically projects and initiatives that are designed--
       ``(1) to achieve improvements in water quality in 
     watersheds impacted by agriculture, particularly by 
     increasing the participation of producers in implementing 
     best management practices in a watershed or developing 
     environmentally and economically viable alternative uses for 
     manure and litter;
       ``(2) to achieve improvements in air quality in a 
     geographical area where agricultural operations impact air 
     quality;

[[Page 21475]]

       ``(3) to support State activities to efficiently manage and 
     utilize their water resources in regions, States or local 
     areas where water quantity is a concern;
       ``(4) to assist in carrying out a State Wildlife Habitat 
     Incentives Program plan or other State, regional, or national 
     conservation initiative.
       ``(5) to control invasive species on rangeland or other 
     agricultural land through the cooperative efforts of multiple 
     producers in a geographical area;
       ``(6) to address a specific resource of concern or set of 
     concerns on private, non-industrial forest land;
       ``(7) to reduce losses of pesticides to the environment by 
     engaging multiple producers in a geographic area in adoption 
     of integrated pest management practices and approaches;
       ``(8) to protect farmland and ranch land facing development 
     pressures from being converted to non-agricultural use; or
       ``(9) to assist producers in carrying out good management 
     practices to enhance food safety.
       ``(g) Duties of Partners.--Eligible partners shall--
       ``(1) identify conservation issues affecting production 
     agriculture on local, regional, or State levels that could be 
     addressed through special projects and initiatives;
       ``(2) enter into agreements or obtain grants from the 
     Secretary to carry out special projects and initiatives;
       ``(3) identify through outreach efforts producers that can 
     participate in the special project or initiative of the 
     eligible entity if the producer is otherwise eligible to be 
     enrolled, as determined by the Secretary, or has already 
     enrolled, in the applicable program described in subsection 
     (b); and
       ``(4) carry out the special project and initiative.
       ``(h) Duties of the Secretary.--
       ``(1) Additional duties.--In addition to the normal 
     administration of the programs described in subsection (b), 
     the Secretary shall be responsible for basic administrative 
     and oversight functions relating to the special projects and 
     initiatives, including--
       ``(A) rules and procedures relating to conservation 
     standards and specifications;
       ``(B) conservation compliance;
       ``(C) appeals;
       ``(D) adjusted gross income limitations;
       ``(E) direct attribution; and
       ``(F) such other similar functions as the Secretary might 
     designate.
       ``(2) Flexibility.--The Secretary may adjust eligibility 
     criteria, approved practices, practice standards, innovative 
     conservation practices, and other elements of the programs 
     described in subsection (b) to better reflect unique local 
     circumstances and purposes if the Secretary determines such 
     adjustments would--
       ``(A) improve environmental enhancement and long-term 
     sustainability of the natural resource base; and
       ``(B) be consistent with the purposes of the program and 
     the special project and initiative.
       ``(3) Preferential enrollment.--Subject to the limitations 
     under subsection (j), the Secretary shall provide 
     preferential enrollment to producers that are eligible--
       ``(A) for the applicable program described in subsection 
     (b); and
       ``(B) to participate in the special project and initiative 
     of an eligible partner.
       ``(i) Cost Share.--The Secretary shall not require more 
     than 25 percent of the cost of a project or initiative 
     supported under a grant or agreement entered into under this 
     section to come from non-Federal sources. However, the 
     Secretary may give higher priority to projects or initiatives 
     offering to cover a higher percentage of the cost of the 
     project or initiative from non-Federal sources.
       ``(j) Incentive and Bonus Payments.--
       ``(1) Availability.--Applications submitted under 
     subsection (d)(2) may include proposals for special incentive 
     and bonus payments, consistent with the statutory purposes of 
     the programs involved, to producers that--
       ``(A) restore land, water, or habitat as a community 
     development asset; or
       ``(B) provide public access to enrolled land.
       ``(2) Criteria.--The Secretary shall develop and publish 
     criteria for providing special incentive or bonus payments to 
     producers under paragraph (1).
       ``(k) Funding.--
       ``(1) Set-aside.--Of the funds provided for each of fiscal 
     years 2008 through 2012 to implement the programs specified 
     in subsection (b), the Secretary shall reserve 10 percent to 
     ensure an adequate source of funds for grants, agreements, 
     financial assistance to producers under this section.
       ``(2) Allocation to states.--The Secretary shall allocate 
     to States 90 percent of the funds reserved under paragraph 
     (1) for a fiscal year to allow State Conservationists, with 
     the advice of State technical committees, to select projects 
     and initiatives for funding under this section at the State 
     level. The Secretary shall develop criteria for this 
     allocation made on a similar basis as to the program 
     priorities under subsection (f).
       ``(3) Unused funding.--Any funds reserved for a fiscal year 
     under paragraph (1) that are not obligated by April 1 of that 
     fiscal year may be used to carry out other activities under 
     conservation programs under subtitle D during the remainder 
     of that fiscal year.
       ``(4) Administrative costs funding cap.--Of the funds made 
     available under this section for a particular project or 
     initiative, not more than 5 percent may be expended by the 
     eligible entity on the administrative costs of the project or 
     initiative.''.

     SEC. 2404. REGIONAL EQUITY AND FLEXIBILITY.

       Section 1241(d) of the Food Security Act of 1985 (16 U.S.C. 
     3841(d)) is amended by striking ``$12,000,000'' and inserting 
     ``$15,000,000''.

     SEC. 2405. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION 
                   PROGRAMS.

       (a) Incentives for Certain Producers.--Section 1244(a) of 
     the Food Security Act of 1985 (16 U.S.C. 3844(a)) is 
     amended--
       (1) in the subsection heading, by striking ``Beginning'' 
     and inserting ``Incentives for Certain'';
       (2) by inserting ``, socially disadvantaged farmers and 
     ranchers, limited resource farmers and ranchers,'' after 
     ``beginning farmers and ranchers''; and
       (3) by striking ``and limited resource agricultural 
     producers''.
       (b) Single, Simplified Application Process for Conservation 
     Programs.--Section 1244 of the Food Security Act of 1985 (16 
     U.S.C. 3844), as amended by section 2403, is amended by 
     adding at the end the following new subsection:
       ``(f) Single, Simplified Application Process.--
       ``(1) Establishment.--In carrying out any of the 
     conservation programs under this title administered by the 
     Natural Resources Conservation Service, the Secretary shall 
     establish and make available to producers and landowners a 
     single, simplified application process to be used by 
     producers and landowners in initially requesting assistance 
     under such programs. The Secretary shall ensure that--
       ``(A) conservation program applicants are not required to 
     provide information that duplicates information and resources 
     already available to the Secretary regarding that applicant 
     and for that specific operation; and
       ``(B) the application process is streamlined to minimize 
     complexity and redundancy.
       ``(2) Review of application process.--The Secretary shall 
     review the conservation application process and the forms and 
     related mechanisms used to receive assistance requests from 
     producers and landowners. The purpose of the review shall be 
     to determine what information the applicant is actually 
     required to submit during the application process, 
     including--
       ``(A) identification information for the applicant;
       ``(B) identification and location information for the land 
     parcel or tract of concern;
       ``(C) a general statement of the applicant's resource 
     concern or concerns for the land parcel or tract; and
       ``(D) the minimum amount of other information the Secretary 
     considers essential for the applicant to provide.
       ``(3) Revision and streamlining.--The Secretary shall carry 
     out a revision of the application forms and processes for 
     conservation programs covered in this subsection to enable 
     utilization of information technology as an avenue to 
     incorporate appropriate data and information concerning the 
     conservation needs and solutions appropriate for the land 
     area identified by the applicant. The revision shall seek to 
     streamline the application process to minimize the burden 
     placed on the applicant.
       ``(4) Conservation program application.--When the needs of 
     an applicant are adequately assessed by the Secretary, 
     directly or through a third-party provider under section 
     1242, in order to determine the conservation programs under 
     this title that best match the needs of the applicant, with 
     the approval of the applicant, the Secretary may convert the 
     initial application into a specific application for 
     assistance for a specific program. To the maximum extent 
     practical, the specific application for conservation program 
     assistance shall be carried out by the Secretary by 
     requesting only that specific further information from the 
     applicant that is not already available to the Secretary.
       ``(5) Implementation and notification.--Not later than one 
     year after the date of the enactment of the Farm, Nutrition, 
     and Bioenergy Act of 2007, the Secretary shall complete the 
     requirements of this subsection and shall submit to Congress 
     a written notification of such completion.''.

     SEC. 2406. ANNUAL REPORT ON PARTICIPATION BY SPECIALTY CROP 
                   PRODUCERS IN CONSERVATION PROGRAMS.

       (a) Report Required.--Subtitle F of title XII of the Food 
     Security Act of 1985 is amended by inserting after section 
     1251 (16 U.S.C. 2005a) the following new section:

     ``SEC. 1252. ANNUAL REPORT ON PARTICIPATION BY SPECIALTY CROP 
                   PRODUCERS IN CONSERVATION PROGRAMS.

       ``(a) Report Required.--The Secretary of Agriculture shall 
     submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate an annual report that--
       ``(1) documents and analyzes the participation by producers 
     of specialty crops in conservation programs under subtitle D, 
     including the conservation security program and the 
     environmental quality incentives program;
       ``(2) tracks such participation by crop and livestock type; 
     and
       ``(3) describes the results of implementing the plan 
     required by subsection (b), as well as any modifications to 
     the plan that the Secretary finds necessary to increase its 
     effectiveness.
       ``(b) Access Plan.--As part of each report submitted under 
     subsection (a), the Secretary shall set forth a plan to 
     improve the access of producers of specialty crops to, and 
     their participation in, conservation programs under subtitle 
     D. In developing the plan, the Secretary shall consult with 
     organizations representing producers of specialty crops.
       ``(c) Specialty Crop Defined.--In this section, the term 
     `specialty crop' has the meaning

[[Page 21476]]

     given such term by section 3(1) of the Specialty Crops 
     Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 
     1621 note).''.
       (b) Initial Report.--The first report required under 
     section 1252 of the Food Security Act of 1985, as added by 
     subsection (a), shall be submitted not later than 180 days 
     after the date of the enactment of this Act. Subsection 
     (a)(2) of such section shall not apply with respect to the 
     first report.

     SEC. 2407. PROMOTION OF MARKET-BASED APPROACHES TO 
                   CONSERVATION.

       (a) Findings.--Congress finds the following:
       (1) Many of the conservation and environmental benefits 
     produced on farms, ranches, and private forest lands in the 
     United States do not have an assigned value in the market 
     place or lack a private market altogether.
       (2) While private markets for environmental goods and 
     services are emerging, their viability has been hampered by 
     several barriers.
       (3) The Federal Government can help overcome these barriers 
     and promote the establishment of markets for agricultural and 
     forestry conservation activities.
       (4) Generating substantial private-sector demand for 
     environmental goods and services hinges on the ability to use 
     environmental credits generated by agricultural and forest 
     conservation activities.
       (b) Market-Based Approaches.--Subtitle E of title XII of 
     the Food Security Act of 1985 is amended by inserting after 
     section 1244 (16 U.S.C. 3844) the following new section:

     ``SEC. 1245. MARKET-BASED APPROACHES TO CONSERVATION.

       ``(a) Implementation.--To facilitate the development and 
     effective operation of private sector market-based approaches 
     for environmental goods and services produced by farmers, 
     ranchers, and owners of private forest land, the Secretary 
     may conduct research and analysis, enter into contracts and 
     cooperative agreements, and award grants for the purpose of--
       ``(1) promoting the development of consistent standards and 
     processes for quantifying environmental benefits, including 
     the creation of performance standards or baselines;
       ``(2) promoting the establishment of reporting and credit 
     registries, including third-party verification and 
     certification; and
       ``(3) promoting actions that facilitate the development and 
     functioning of private-sector market-based approaches for 
     environmental goods and services involving agriculture and 
     forestry.
       ``(b) Environmental Services Standards Board.--
       ``(1) Establishment.--There is to be established an 
     Environmental Services Standards Board to develop consistent 
     performance standards for quantifying environmental services 
     from land management and agricultural activities in order to 
     facilitate the development of credit markets for conservation 
     and land management activities that are agriculture or forest 
     based.
       ``(2) Chairperson.--The Secretary of Agriculture shall 
     serve as chair of the Environmental Services Standards Board.
       ``(3) Membership.--The Environmental Services Standards 
     Board shall be comprised of the Secretary of Agriculture, the 
     Secretary of the Interior, the Secretary of Energy, the 
     Secretary of Commerce, the Secretary of Transportation, the 
     Administrator of the Environmental Protection Agency, the 
     Commander of the Army Corps of Engineers, and such other 
     representatives as determined by the President.
       ``(4) Subcommittees.--The Environmental Services Standards 
     Board may form subcommittees to address specific issues.
       ``(c) Dissemination of Performance Standards.--Federal 
     agencies are authorized to adopt performance standards 
     developed by the Environmental Services Standards Board for 
     quantifying environmental services that establish credits to 
     meet requirements of environmental and conservation programs.
       ``(d) Funding .--There is authorized to be appropriated 
     $50,000,000 to carry out this section. Amounts so 
     appropriated shall remain available until expended.
       ``(e) Definitions.--In this section
       ``(1) Baseline.--The term `baseline' means a level of 
     effort or performance that is expected to be met before an 
     entity can generate marketable credits.
       ``(2) Performance standard.--The term `performance 
     standard' means a defined level of environmental performance, 
     expressed as a narrative or measurable number, which 
     specifies the minimum acceptable environmental performance of 
     an operation or practice.''.

     SEC. 2408. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES AND 
                   THEIR RESPONSIBILITIES.

       Subtitle G of title XII of the Farm Security Act of 1985 
     (16 U.S.C. 3861, 3862) is amended to read as follows:
                ``Subtitle G--State Technical Committees

     ``SEC. 1261. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES.

       ``(a) Establishment.--The Secretary shall establish a 
     technical committee in each State to assist the Secretary in 
     the considerations relating to implementation and technical 
     aspects of the conservation programs under this title.
       ``(b) Composition.--Each State technical committee shall be 
     composed of agricultural producers and other professionals 
     that represent a variety of disciplines in the soil, water, 
     wetland, and wildlife sciences. The technical committee for a 
     State shall include representatives from among the following:
       ``(1) The Natural Resources Conservation Service.
       ``(2) The Farm Service Agency.
       ``(3) The Forest Service.
       ``(4) The Cooperative State Research, Education, and 
     Extension Service.
       ``(5) The State fish and wildlife agency.
       ``(6) The State forester or equivalent State official.
       ``(7) The State water resources agency.
       ``(8) The State department of agriculture.
       ``(9) The State association of soil and water conservation 
     districts.
       ``(10) At least 12 agricultural producers representing the 
     variety of crops and livestock or poultry grown within the 
     State.
       ``(11) Nonprofit organizations within the meaning of 
     section 501(c)(2) of the Internal Revenue Code of 1986 with 
     demonstrable conservation expertise and experience working 
     with agriculture producers in the State.
       ``(12) Agribusiness.
       ``(c) Subcommittees.--A State technical committee shall 
     convene one or more subcommittees to provide technical 
     guidance and implementation recommendations. The topics that 
     a subcommittee shall address shall include, at a minimum, the 
     following:
       ``(1) Establishing priorities and criteria for State 
     initiatives under the programs in this title, including the 
     review of whether local working groups are addressing those 
     priorities.
       ``(2) Issues related to private forestlands protection and 
     enhancement.
       ``(3) Issues related to water quality and water quantity.
       ``(4) In those States where applicable, issues related to 
     air quality.
       ``(5) Issues related to wildlife habitat, including the 
     protection of nesting wildlife.
       ``(6) Issues related to wetland protection, restoration, 
     and mitigation requirements.
       ``(7) Other issues as the Secretary determines would be 
     useful.

     ``SEC. 1262. RESPONSIBILITIES.

       ``(a) In General.--Each State technical committee 
     established under section 1261 shall meet regularly to 
     provide information, analysis, and recommendations to 
     appropriate officials of the Department of Agriculture who 
     are charged with implementing the conservation provisions of 
     this title.
       ``(b) Public Notice and Attendance.--Each State technical 
     committee shall provide public notice of, and permit public 
     attendance at, meetings considering issues of concern related 
     to carrying out this title.
       ``(c) Advisory Role.--The role of a State technical 
     committee is advisory in nature, and the committee shall have 
     no implementation or enforcement authority. However, the 
     Secretary shall give strong consideration to the 
     recommendations of the committee in administering the 
     programs under this title.
       ``(d) FACA Requirements.--Except as provided in subsection 
     (b), a State technical committee, including any subcommittee 
     of State technical committee, is exempt from the Federal 
     Advisory Committee Act (5 U.S.C. App.).''.

     SEC. 2409. PAYMENT LIMITATIONS.

       (a) In General.--The Food Security Act of 1985 is amended 
     by inserting after section 1245, as added by section 2407, 
     the following new section:

     ``SEC. 1246. PAYMENT LIMITATIONS.

       ``(a) Payments for Conservation Practices.--The total 
     amount of payments that a person or a legal entity (except a 
     joint venture or a general partnership) may receive, directly 
     or indirectly, in any fiscal year shall not exceed--
       ``(1) $60,000 from any single program under this title or 
     as agricultural management assistance under section 524(b) of 
     the Federal Crop Insurance Act (7 U.S.C. 524(b)); or
       ``(2) $125,000 from more than one program under this title 
     and as agricultural management assistance under section 
     524(b) of the Federal Crop Insurance Act.
       ``(b) Exceptions.--The limitations under subsection (a) 
     shall not apply with respect to the following:
       ``(1) The wetlands reserve program under subchapter C of 
     chapter 1 of subtitle D.
       ``(2) The farm and ranchland protection program under 
     subchapter B of chapter 2 of such subtitle.
       ``(3) The grassland reserve program under subchapter C of 
     chapter 2 of such subtitle.
       ``(c) Direct Attribution.--
       ``(1) In general.--In implementing the payment limitations 
     in subsection (a), the Secretary shall issue such regulations 
     as are necessary to ensure that the total amount of payments 
     are attributed to a person by taking into account the direct 
     and indirect ownership interests of the person in a legal 
     entity that is eligible to receive such payments.
       ``(2) Payments to a person.--Every payment made directly to 
     a person shall be combined with the person's pro rata 
     interest in payments received by a legal entity in which the 
     person has a direct or indirect ownership interest.
       ``(3) Payments to a legal entity.--
       ``(A) In general.--Every payment made to a legal entity 
     shall be attributed to those persons who have a direct or 
     indirect ownership interest in the legal entity.
       ``(B) Attribution of payments.--
       ``(i) Payment limits.--Except as provided in clause (ii), 
     payments made to a legal entity shall not exceed the amounts 
     specified in subsection (a).
       ``(ii) Exception.--Payments made to a joint venture or a 
     general partnership shall not exceed, for each payment 
     specified in subsection (a), the amount determined by 
     multiplying the maximum payment amount specified in 
     subsection (a) by the number of persons and legal

[[Page 21477]]

     entities (other than joint ventures and general partnerships) 
     that comprise the ownership of the joint venture or general 
     partnership.''.
       (b) Conforming Amendments.--
       (1) Existing payment limitations in conservation 
     programs.--Title XII of the Food Security Act of 1985 is 
     amended--
       (A) in section 1234 (16 U.S.C. 3834) by striking subsection 
     (f);
       (B) in section 1238C (16 U.S.C. 3838c), as amended by 
     section 2103, by striking subsections (d) and (e); and
       (C) by striking section 1240G (16 U.S.C. 3839aa-7).
       (2) Agricultural management assistance.--Section 524(b) of 
     the Federal Crop Insurance Act (7 U.S.C. 524) is amended by 
     striking paragraph (3).
                  Subtitle E--Miscellaneous Provisions

     SEC. 2501. INCLUSION OF INCOME FROM AFFILIATED PACKING AND 
                   HANDLING OPERATIONS AS INCOME DERIVED FROM 
                   FARMING FOR APPLICATION OF ADJUSTED GROSS 
                   INCOME LIMITATION ON ELIGIBILITY FOR 
                   CONSERVATION PROGRAMS.

       Section 1001D(b)(1) of the Food Security Act of 1985 (7 
     U.S.C. 1308-3a(b)(1)) is amended by inserting ``(including, 
     for purposes of paragraph (2)(C), affiliated packing and 
     handling operations)'' after ``derived from farming''.

     SEC. 2502. ENCOURAGEMENT OF VOLUNTARY SUSTAINABILITY 
                   PRACTICES GUIDELINES.

       In administering this title and the amendments made by this 
     title, the Secretary of Agriculture may encourage the 
     development of voluntary sustainable practices guidelines for 
     producers and processors of specialty crops.

     SEC. 2503. FARMLAND RESOURCE INFORMATION.

       (a) Development and Dissemination of Farmland Resource 
     Information.--The Secretary of Agriculture shall design and 
     implement educational programs and materials emphasizing the 
     importance of productive farmland to the Nation's well-being 
     and distribute educational materials through communications 
     media, schools, groups, and other Federal agencies. The 
     Secretary shall carry out this subsection through existing 
     agencies or interagency groups and in cooperation with 
     nonprofit organizations and the cooperative extension 
     services of States.
       (b) Farmland Information Centers.--The Secretary shall 
     designate 1 or more farmland information centers to provide 
     technical assistance and serve as central depositories and 
     distribution points for information on farmland issues. 
     Information provided by a center shall include online access 
     to data on land cover and use changes and trends and 
     literature, laws, historical archives, policies, programs, 
     and innovative actions or proposals by local and State 
     governments or nonprofit organizations related to farmland 
     protection.
       (c) Funding.--Funds for the farmland information centers 
     designated under subsection (b) shall be provided using funds 
     made available for the farm and ranchland protection program 
     established under subchapter B of chapter 2 of subtitle D of 
     title XII of the Food Security Act of 1985 (16 U.S.C. 3838h 
     et seq.). Such funding for a fiscal year shall not exceed 
     one-half of 1 percent of the funds made available for the 
     farm and ranchland protection program for that fiscal year, 
     but no less than $400,000 annually.
       (d) Matching Funds.--Federal funding for a farmland 
     information center designated under subsection (b) shall be 
     matched with non-Federal funds, through cash or in-kind 
     contributions.
                            TITLE III--TRADE
Sec. 3001. Agricultural Trade Development and Assistance Act of 1954.
Sec. 3002. Export credit guarantee program.
Sec. 3003. Market access program.
Sec. 3004. Food for Progress Act of 1985.
Sec. 3005. McGovern-Dole International Food for Education and Child 
              Nutrition program.
Sec. 3006. Bill Emerson Humanitarian Trust.
Sec. 3007. Technical assistance for specialty crops.
Sec. 3008. Technical assistance for the resolution of trade disputes.
Sec. 3009. Representation by the United States at international 
              standard-setting bodies.
Sec. 3010. Foreign market development cooperator program.
Sec. 3011. Emerging markets.
Sec. 3012. Export Enhancement Program.
Sec. 3013. Minimum level of nonemergency food assistance.
Sec. 3014. Germplasm conservation.

     SEC. 3001. AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT 
                   OF 1954.

       (a) Purpose of Program.--Section 201 of the Agricultural 
     Trade Development and Assistance Act of 1954 (7 U.S.C. 1721) 
     is amended so that paragraph (1) reads as follows:
       ``(1) address famine and food crises and respond to 
     emergency food needs arising from manmade disasters, and 
     natural disasters.''.
       (b) Support for Eligible Organizations.--Section 202(e)(1) 
     of the Agricultural Trade Development and Assistance Act of 
     1954 (7 U.S.C. 1722(e)(1)) is amended--
       (1) by striking ``not less than 5 percent nor more than 10 
     percent of the funds'' and inserting ``not less than 7 
     percent nor more than 12 percent of the funds'';
       (2) striking ``and'' at the end of subparagraph (A);
       (3) striking the period at the end of subparagraph (B) and 
     inserting ``; and''; and
       (4) inserting after subparagraph (B) the following:
       ``(C) developing, implementing and improving monitoring 
     systems of programs receiving funds under this title.''.
       (c) Generation and Use of Currencies by Private Voluntary 
     Organizations and Cooperatives.--Subsection (b) of section 
     203 of the Agricultural Trade Development and Assistance Act 
     of 1954 (7 U.S.C. 1723) is amended by striking ``1 or more 
     recipient countries'' and inserting ``in 1 or more recipient 
     countries''.
       (d) Levels of Assistance.--Section 204(a) of the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1724(a)) is amended--
       (1) in paragraph (1) by striking ``2002 through 2007'' and 
     inserting ``2008 through 2012''; and
       (2) in paragraph (2) by striking ``2002 through 2007'' and 
     inserting ``2008 through 2012''.
       (e) Food Aid Consultative Group.--Section 205(f) of the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1725(f)) is amended by striking ``2007'' and inserting 
     ``2012''.
       (f) Denial of Proposals.--Paragraph (3) of section 207(a) 
     of the Agricultural Trade Development and Assistance Act of 
     1954 (7 U.S.C. 1726a(a)) is amended to read as follows:
       ``(3) Denial.--If a proposal under paragraph (1) is denied, 
     the response shall specify the reasons for denial.''.
       (g) Program Oversight, Monitoring, and Evaluation.--Section 
     207 of the Agricultural Trade Development and Assistance Act 
     of 1954 (7 U.S.C. 1726a) is amended by adding at the end the 
     following:
       ``(f) Program Oversight, Monitoring, and Evaluation.--
       ``(1) In general.--The Administrator, in consultation with 
     the Secretary, shall establish systems to improve, monitor, 
     and evaluate the effectiveness and efficiency of assistance 
     provided under this title in order to maximize the impact of 
     such assistance. Such systems shall include the following:
       ``(A) program monitors in countries receiving assistance 
     under this title;
       ``(B) country and regional food aid impact evaluations;
       ``(C) evaluations of best practices for food aid programs;
       ``(D) evaluation of monetization programs;
       ``(E) early warning assessments to prevent famines; and
       ``(F) upgraded information technology systems.
       ``(2) Implementation report.--Not later than 180 days after 
     the date of enactment of the Farm, Nutrition, and Bioenergy 
     Act of 2007, the Administrator shall submit to the 
     appropriate congressional committees a report on efforts 
     undertaken to implement (1).
       ``(3) Annual report.--Not later than February 1 of each 
     year, the Administrator shall submit to the appropriate 
     congressional committees a report assessing the systems 
     implemented under paragraph (1) and their impact on the 
     effectiveness and efficiency of assistance provided under 
     this title.
       ``(4) Funding.--In addition to other funds made available 
     for the Administrator to perform monitoring of emergency food 
     assistance, the Administrator may implement this subsection 
     using up to $15,000,000 of funds made available under this 
     title for each of the fiscal years 2008 through 2012, except 
     for paragraph (1)(F), for which only $2,500,000 shall be made 
     available during fiscal year 2008.''.
       (h) Shelf-Stable Prepackaged Foods.--Section 208(f) of the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1726b(f)) is amended--
       (1) by striking ``2007'' and insert ``2012''; and
       (2) by striking ``$3,000,000'' and inserting ``$7,000,000''
       (i) Prepositioning.--Section 407(c)(4) of the Agricultural 
     Trade Development and Assistance Act of 1954 (7 U.S.C. 
     1736a(c)(4)) is amended--
       (1) by striking ``2007'' and inserting ``2012''; and
       (2) by striking ``$2,000,000'' and inserting 
     ``$8,000,000''.
       (j) Annual Reports.--Section 407(f) of the Agricultural 
     Trade Development and Assistance Act of 1954 (7 U.S.C. 
     1736a(f)) is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (B), by adding at the end before the 
     semicolon the following: ``, and the amount of funds, tonnage 
     levels, and types of activities for non-emergency food 
     assistance programs under title II of this Act'';
       (B) in subparagraph (C), by adding at the end before the 
     semicolon the following: ``, and a general description of the 
     projects and activities implemented''; and
       (C) so that subparagraph (D) reads as follows:
       ``(D) an assessment of the progress toward reducing food 
     insecurity in the populations receiving food assistance from 
     the United States.''; and
       (2) in paragraph (3), by striking ``January 15'' and 
     inserting ``March 1''.
       (k) Expiration of Assistance.--Section 408 of the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1736b) is amended by striking ``2007'' and inserting 
     ``2012''.
       (l) Micronutrient Fortification Program.--Section 415(d) of 
     the Agricultural Trade Development and Assistance Act of 1954 
     (7 U.S.C. 1736g-2) is amended by striking ``2007'' and 
     inserting ``2012''.
       (m) John Ogonowski and Doug Bereuter Farmer-to-Farmer 
     Program.--
       (1) Minimum funding.--Section 501(d) of the Agricultural 
     Trade Development and Assistance Act of 1954 (7 U.S.C. 
     1737(d)) is amended--

[[Page 21478]]

       (A) by inserting ``or $10,000,000, whichever amount is 
     greater,'' after ``not less than 0.5 percent''; and
       (B) by striking ``2002 through 2007'' and inserting ``2008 
     through 2012''.
       (2) Authorization of appropriations.--Section 501(e) of the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1737(e)) is amended by striking paragraph (1) and 
     inserting the following new paragraph:
       ``(1) In general.--To carry out programs under this 
     section, there is authorized to be appropriated for each of 
     fiscal years 2008 through 2012 the following amounts:
       ``(A) $10,000,000 for sub-Saharan African and Caribbean 
     Basin countries.
       ``(B) $5,000,000 for all other countries not included in 
     subparagraph (A).''.
       (n) References to Committee.--The Agricultural Trade 
     Development and Assistance Act of 1954 (7 U.S.C. 1691 et 
     seq.) is amended by striking ``Committee on International 
     Relations'' each place it appears and inserting ``Committee 
     on Foreign Affairs''.

     SEC. 3002. EXPORT CREDIT GUARANTEE PROGRAM.

       (a) Repeal of Supplier Credit Guarantee Program and 
     Intermediate Export Credit Guarantee Program.--
       (1) Repeals.--Section 202 of the Agricultural Trade Act of 
     1978 (7 U.S.C. 5622) is amended--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking ``(1)'' and all that 
     follows through ``The Commodity'' and inserting ``The 
     Commodity''; and
       (ii) by striking paragraphs (2) and (3);
       (B) by striking subsections (b) and (c); and
       (C) by redesignating subsections (d) through (l) as 
     subsections (b) through (j), respectively.
       (2) Conforming amendments.--The Agricultural Trade Act of 
     1978 is amended--
       (A) in section 202 (7 U.S.C. 5622)--
       (i) in subsection (b)(4) (as redesignated by paragraph 
     (1)(C)), by striking ``, consistent with the provisions of 
     subsection (c)'';
       (ii) in subsection (d) (as redesignated by paragraph 
     (1)(C))--

       (I) by striking ``(1)'' and all that follows through ``The 
     Commodity'' and inserting ``The Commodity''; and
       (II) by striking paragraph (2); and

       (iii) in subsection (g)(2) (as redesignated by paragraph 
     (1)(C)), by striking ``subsections (a) and (b)'' and 
     inserting ``subsection (a)''; and
       (B) in section 211 (7 U.S.C. 5641), by striking subsection 
     (b) and inserting the following:
       ``(b) Export Credit Guarantee Programs.--(1) The Commodity 
     Credit Corporation shall make available for each of fiscal 
     years 2008 through 2012 not less than $5,500,000,000 in 
     credit guarantees under section 202(a).
       ``(2) Section 202(k)(1) of the Agricultural Trade Act of 
     1978 (7 U.S.C. 5622(k)(1)) is amended by striking `2007' and 
     inserting `2012'.''.

     SEC. 3003. MARKET ACCESS PROGRAM.

       (a) Organic Commodities.--Section 203(a) of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5623(a)) is amended 
     by inserting after ``agricultural commodities'' the 
     following: ``(including commodities that are organically 
     produced (as defined in section 2103 of the Organic Foods 
     Production Act of 1990 (7 U.S.C. 6502))''.
       (b) Funding.--Section 211(c)(1)(A) of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5641(c)(1)(A)) is amended by 
     striking ``, and $200,000,000 for each of fiscal years 2006 
     and 2007'' and inserting ``$200,000,000 for each of fiscal 
     years 2006 and 2007, and $225,000,000 for each of fiscal 
     years 2008 through 2012''.
       (c) Availability of Funds for Activities to Develop, 
     Maintain, or Expand Foreign Markets for Leaf Tobacco.--
     Section 1302(b)(3) of the Agricultural Reconciliation Act of 
     1993 (7 U.S.C. 5623 note) is amended by inserting ``, other 
     than leaf tobacco'' after ``tobacco''.

     SEC. 3004. FOOD FOR PROGRESS ACT OF 1985.

       The Food for Progress Act of 1985 (7 U.S.C. 1736o) is 
     amended by striking ``2007'' each place it appears and 
     inserting ``2012''.

     SEC. 3005. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND 
                   CHILD NUTRITION PROGRAM.

       Section 3107(l)(2) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 1736o-1(l)(2)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 3006. BILL EMERSON HUMANITARIAN TRUST.

       Section 302 of the Bill Emerson Humanitarian Trust Act (7 
     U.S.C. 1736f-1) is amended by striking ``2007'' each place it 
     appears in subsection (b)(2)(B)(i) and paragraphs (1) and (2) 
     of subsection (h) and inserting ``2012''.

     SEC. 3007. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

       Section 3205 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 5680) is amended so that subsection (d) 
     reads as follows:
       ``(d) Funding.--
       ``(1) Commodity credit corporation.--The Secretary shall 
     use the funds, facilities, and authorities of the Commodity 
     Credit Corporation to carry out this section.
       ``(2) Funding amount.--The Secretary shall use the funds 
     of, or an equal value of commodities owned by, the Commodity 
     Credit Corporation to carry out this section--
       ``(A) $4,000,000 for fiscal year 2008;
       ``(B) $6,000,000 for fiscal year 2009;
       ``(C) $8,000,000 for fiscal year 2010;
       ``(D) $10,000,000 for each of fiscal years 2011 through 
     2012.''.

     SEC. 3008. TECHNICAL ASSISTANCE FOR THE RESOLUTION OF TRADE 
                   DISPUTES.

       (a) In General.--The Secretary of Agriculture may provide 
     monitoring, analytic support, and other technical assistance 
     to limited resource persons and organizations associated with 
     agricultural trade (as determined by the Secretary) to 
     address unfair trade practices of foreign countries and to 
     reduce trade barriers.
       (b) Authorization of Appropriations.--There are authorized 
     such sums as necessary to carry out subsection (a).

     SEC. 3009. REPRESENTATION BY THE UNITED STATES AT 
                   INTERNATIONAL STANDARD-SETTING BODIES.

       (a) In General.--Pursuant to the authority of the Secretary 
     provided by section 1458(a)(3) of the Food and Agriculture 
     Act of 1977 (7 U.S.C. 3291(a)(3)), the Secretary is 
     authorized to enhance United States support for international 
     organizations, including the Food and Agriculture 
     Organization, the Codex Alimentarius Commission, the 
     International Plant Protection Convention, and the World 
     Organization for Animal Health, that establish international 
     standards regarding food, food safety, plants, and animals, 
     respectively, by funding additional positions of Associate 
     Professional Officers to address sanitary and phytosanitary 
     priorities of the United States within applicable 
     international organizations.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as necessary to carry out this 
     section for each of fiscal years 2007-2012.

     SEC. 3010. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

       Section 703(a) of the Agricultural Trade Act of 1978 (7 
     U.S.C. 5723(a)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 3011. EMERGING MARKETS.

       The Food, Agriculture, Conservation, and Trade Act of 1990 
     (7 U.S.C. 5622 note; Public Law 101-624) is amended in each 
     of subsections (a) and (d)(1)(A)(i) by striking ``2007'' and 
     inserting ``2012.

     SEC. 3012. EXPORT ENHANCEMENT PROGRAM.

       Section 301(e)(1)(G) of the Agricultural Trade Act of 1978 
     (7 U.S.C. 5651(e)(1)(G)) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 3013. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.

        Section 412 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736f) is amended by 
     inserting at the end the following new subsection:
       ``(e) Minimum Level of Nonemergency Food Assistance.--
       ``(1) Funds.--Of the amounts made available to carry out 
     emergency and nonemergency food assistance programs under 
     title II, not less than $450,000,000 for each of fiscal years 
     2008 through 2012 shall be expended for nonemergency food 
     assistance programs under title II.
       ``(2) Exception.--The Administrator may use less than the 
     amount specified in paragraph (1) for a fiscal year for 
     nonemergency food assistance programs under title II if--
       ``(A) the Administrator submits to the Committees on 
     International Relations, Agriculture, and Appropriations of 
     the House of Representatives and the Committees on 
     Appropriations and Agriculture, Nutrition, and Forestry of 
     the Senate a report requesting the reduction and containing 
     the reasons for the reduction; and
       ``(B) following submission of the report, Congress enacts a 
     law approving the Administrator's request.''.

     SEC. 3014. GERMPLASM CONSERVATION.

       (a) Contribution.--The Administrator of the United States 
     Agency for International Development shall contribute funds 
     to endow the Global Crop Diversity Trust (in this section 
     referred to as the ``Trust'') to assist in the conservation 
     of genetic diversity in food crops through the collection and 
     storage of the germplasm of such crops in a manner that 
     provides for--
       (1) the maintenance and storage of seed collections;
       (2) the documentation and cataloguing of the genetics and 
     characteristics of conserved seeds to ensure efficient 
     reference for researchers, plant breeders, and the public;
       (3) building the capacity of seed collection in developing 
     countries;
       (4) making information regarding crop genetic data publicly 
     available for researchers, plant breeders, and the public 
     (for example, through the provision of an accessible Internet 
     site);
       (5) the operation and maintenance of a back-up facility 
     wherein is stored duplicate samples of seeds, as a hedge 
     against natural or man-made disasters; and
       (6) oversight designed to ensure international coordination 
     of these actions and efficient, public accessibility to this 
     diversity through a cost-effective system.
       (b) United States Contribution Limit.--The aggregate 
     contributions of United States Government funds provided to 
     the Trust shall not exceed 25 percent of the total of the 
     funds contributed to the Trust from all sources.
       (c) Authorization.--There are authorized to be appropriated 
     to carry out this section a total of $60,000,000 over the 
     period of fiscal year 2008 through fiscal year 2012.
                      TITLE IV--NUTRITION PROGRAMS

                     Subtitle A--Food Stamp Program

Sec. 4001. Renaming the food stamp program.
Sec. 4002. Definition of drug addiction or alcoholic treatment and 
              rehabilitation program.
Sec. 4003. Nutrition education.
Sec. 4004. Food distribution on Indian reservations.
Sec. 4005. Deobligate food stamp coupons.
Sec. 4006. Allow for the accrual of benefits.
Sec. 4007. State option for telephonic signature.
Sec. 4008. Review of major changes in program design.
Sec. 4009. Grants for simple application and eligibility determination 
              systems and improved access to benefits.
Sec. 4010. Civil money penalties and disqualification of retail food 
              stores and wholesale food concerns.

[[Page 21479]]

Sec. 4011. Major systems failures.
Sec. 4012. Funding of employment and training programs.
Sec. 4013. Reductions in payments for administrative costs.
Sec. 4014. Cash payment pilot projects.
Sec. 4015. Findings of Congress regarding Secure Supplemental Nutrition 
              Assistance program nutrition education.
Sec. 4016. Nutrition education and promotion initiative to address 
              obesity.
Sec. 4017. Authorization of appropriations.
Sec. 4018. Consolidated block grants for Puerto Rico and American 
              Samoa.
Sec. 4019. Study on comparable access to Secure Supplemental Nutrition 
              Assistance Program benefits for Puerto Rico.
Sec. 4020. Reauthorization of community food project competitive 
              grants.
Sec. 4021. Emergency food assistance.

                   Subtitle B--Commodity Distribution

Sec. 4201. Authorization of appropriations.
Sec. 4202. Distribution of surplus commodities; special nutrition 
              projects.
Sec. 4203. Commodity distribution program.

            Subtitle C--Child Nutrition and Related Programs

Sec. 4301. Purchase of fresh fruits and vegetables for distribution to 
              schools and service institutions.
Sec. 4302. Buy American requirements.
Sec. 4303. Expansion of fresh fruit and vegetable program.
Sec. 4304. Purchases of locally produced foods.

                       Subtitle D--Miscellaneous

Sec. 4401. Seniors farmers' market nutrition program.
Sec. 4402. Congressional Hunger Center.
Sec. 4403. Joint nutrition monitoring and related research activities.
                     Subtitle A--Food Stamp Program

     SEC. 4001. RENAMING THE FOOD STAMP PROGRAM.

       (a) Amendments to the Food Stamp Act of 1977.--
       (1) References amended.--The provisions of the Food Stamp 
     Act of 1977 (7 U.S.C. 2011 et seq.)--
       (A) specified in paragraph (2)(A) are amended in the 
     section heading by striking ``FOOD STAMP'' each place it 
     appears and inserting ``SECURE SUPPLEMENTAL NUTRITION 
     ASSISTANCE'';
       (B) specified in paragraph (2)(B) are amended in the 
     subsection heading by striking ``food stamp'' each place it 
     appears and inserting ``secure supplemental nutrition 
     assistance'';
       (C) specified in paragraph (2)(C) are amended by striking 
     each place it appears ``food stamp recipient'' and inserting 
     ``member of a household that receives Secure Supplemental 
     Nutrition Assistance Program benefits'',
       (D) specified in paragraph (2)(D) are amended by striking 
     ``food stamp recipients'' each place it appears and inserting 
     ``members of households that receive Secure Supplemental 
     Nutrition Assistance Program benefits'',
       (E) specified in paragraph (2)(E) are amended by striking 
     ``food stamp households'' each place it appears and inserting 
     ``households that receive Secure Supplemental Nutrition 
     Assistance Program benefits'';
       (F) specified in paragraph (2)(F) are amended by striking 
     ``Simplified Food Stamp Program'' each place it appears and 
     inserting ``Simplified Secure Supplemental Nutrition 
     Assistance Program'';
       (G) specified in paragraph (2)(H) are amended by striking 
     ``food stamp participants'' each place it appears and 
     inserting ``participants in the Secure Supplemental Nutrition 
     Assistance Program'';
       (H) specified in paragraph (2)(I) are amended by striking 
     ``food stamp informational activities'' each place it appears 
     and inserting ``informational activities relating to the 
     Secure Supplemental Nutrition Assistance Program'';
       (I) specified in paragraph (2)(J) are amended by striking 
     ``food stamp caseload'' each place it appears and inserting 
     ``caseload under the Secure Supplemental Nutrition Assistance 
     Program'';
       (J) specified in paragraph (2)(K) are amended by striking 
     ``State's food stamp households'' each place it appears and 
     inserting ``the number of households in the State receiving 
     Secure Supplemental Nutrition Assistance Program benefits'';
       (K) specified in paragraph (2)(L) are amended in the 
     section heading by striking ``FOOD STAMP PORTION'' each place 
     it appears and inserting ``SECURE SUPPLEMENTAL NUTRITION 
     ASSISTANCE PROGRAM BENEFITS'';
       (L) specified in paragraph (2)(M) are amended by striking 
     ``food stamps'' each place it appears and inserting ``Secure 
     Supplemental Nutrition Assistance Program benefits'';
       (M) specified in paragraph (2)(N) are amended by striking 
     ``Food stamp program'' each place it appears and inserting 
     ``Secure Supplemental Nutrition Assistance Program'';
       (N) specified in paragraph (2)(o) are amended by striking 
     ``food stamp program benefits'' each place it appears and 
     inserting ``Secure Supplemental Nutrition Program benefits''; 
     and
       (O) specified in paragraph (2)(O) are amended by striking 
     ``food stamp program'' each place it appears and inserting 
     ``Secure Supplemental Nutrition Assistance Nutrition 
     Program''.
       (2) Provisions referred to.--The provisions of the of the 
     Food Stamp Act of 1977 referred to in paragraph (1) are the 
     following:
       (A) Sections 4 and 26.
       (B) Section 6(j).
       (C) Section 6(o)(6)(A)(ii).
       (D)(i) Subparagraphs (D) and (E) of section 6(o)(6);
       (ii) sections 16(h)(1)(E)(i) and 12(a); and
       (iii) paragraphs (1)(B)(ii)(II) and (3)(B) of section 
     17(b).
       (E) Sections 7(h)(3)(B)(ii), 9(b)(1), 12(a), and 
     17(b)(1)(B)(ii)(I).
       (F) Sections 11(e)(25) and 26(b).
       (G) Section 11(f)(2)(B).
       (H) Section 16(a).
       (I) Section 16(e)(9)(C).
       (J) Section 17(b)(1)(B)(iii)(I).
       (K) Section 22.
       (L)(i) Subsections (d)(3) and (o)(6)(A)(i) of section 6;
       (i) paragraphs (2)(B)(v)(II) and (14) of section 11(e);and
       (i) sections 12(e)(16), 17(b)(3)(C), and 18(a)(3)(A)(ii).
       (M) Section 3(h)
       (N)(i) In section 6--
       (I) subsection (h); and
       (II) in subsection (o)--

       (aa) paragraph (2); and
       (bb) subclauses (IV) and (V) of paragraph (6)(A)(ii).

       (ii) Section 7(k)(2).
       (iii) In section 11--
       (I) subsection (e)(25)(A);
       (II) paragraphs (1), (2), and (3) of subsection (s); and
       (III) subsection (t)(1)(B).
       (iv) In section 17--
       (I) subsection (a)(2);
       (II) paragraphs (1)(A), (2), and (3)(D) of subsection (b);
       (III) paragraphs (1)(B), (2)(C)(ii), and (3)(E) of 
     subsection (d); and
       (IV) subsections (e) and (f).
       (v) Section 21(d)(3).
       (O)(i) Sections 2, 3(h), and 4.
       (ii) In section 5--
       (I) subsections (a), (b), (c), and (d);
       (II) clauses (ii)(III) and (iv)(IV) of subsection 
     (e)(6)(C);
       (III) paragraphs (1), (3), and (6)(B)(iv) of subsection 
     (g); and
       (IV) subsections (h)(2)(A) and (k)(4)(B).
       (iii) In section 6--
       (I) subsections (a) and (b);
       (II) in subsection (d)(1)--

       (aa) subparagraphs (A) and (B);
       (bb) clauses (i), (ii), and (iii) of subparagraph (C); and
       (cc) clauses (v) and (vi) of subparagraph (D);

       (III) paragraphs (2)(C), (3), and (4)(A)(i) of subsection 
     (d);
       (IV) subsections (e), (f), and (h);
       (V) paragraphs (1) and (2) of subsection (i); and
       (VI) subsections (j), (k), (l)(1), (m)(1), (n), (o)(5)(A);
       (iv) In section 7--
       (I) subsections (a), (b), and (g);
       (II) paragraphs (1) and (2)(B) of subsection (j); and
       (III) in subsection (k)--

       (aa) paragraph (3); and
       (bb) subparagraphs (B)(ii) and (C) of paragraph (4).

       (v) In section 8--
       (I) subsections (a), (c)(2), and (d)(2);
       (II) in subsection (f)--

       (aa) clauses (i)(II)(aa), (ii)(I), and (iv) of paragraph 
     (1)(D), and
       (bb) paragraph (3)(B)(ii)(II)(bb).

       (vi) In section 9--
       (I) paragraphs (1) and (3) of subsection (a); and
       (II) subsections (b)(1), (d), (e), and (g).
       (vii) In section 11--
       (I) subsections (c) and (d);
       (II) in subsection (e)--

       (aa) paragraph (1)(A);
       (bb) clauses (i) and (iv) of paragraph (2)(B); and
       (cc) paragraphs (10), (17), (20)(B), and (22);

       (III) subsections (f)(1), (g), (i), and (j)(1);
       (IV) paragraphs (1), (2), (3), and (4) of subsection (o);
       (V) subsections (p) and (q); and
       (VI) paragraphs (2)(A) and (B)(4)(A) of subsection (t).
       (viii) Sections 12(a) and 14(a)(1).
       (ix) Subsections (b)(1) and (c) of section 15.
       (x) In section 16--
       (I) subsection (a);
       (II) paragraph (1), (2), and (3) of subsection (b);
       (III) in subsection (c)--

       (aa) the matter preceding subparagraph (A);
       (bb) subparagraphs (D)(i)(II) and (F)(iii)(I) of paragraph 
     (1); and
       (cc) subparagraphs (A), (B), and (C) of paragraph (9);

       (IV) subsections (e), (g), and (i)(1); and
       (V) in subsection (k)--

       (aa) subparagraphs (A) and (B) of paragraph (2);
       (bb) subparagraphs (A) and (B)(i) of paragraph (3); and
       (cc) subparagraphs (A)(ii) and (B)(iv)(II) of paragraph 
     (5).

       (xi) In section 17--
       (I) subsection (a)(1);
       (II) in subsection (b)--

       (aa) subparagraphs (A) and (B)(i) of paragraph (1); and
       (bb) subparagraph (2);

       (III) subsection (c);
       (IV) subparagraphs (A) and (C) of subsection (d) (2); and
       (V) subsections (e), (g), and (h)(2).

[[Page 21480]]

       (xii) Subsections (a)(3)(D), (b), (d), and (e) of section 
     18.
       (xiii) Subsections (a)(1) and (f) of section 20.
       (xiv) In section 21--
       (I) subsection (a);
       (II) in subsection (b)--

       (aa) in paragraph (2)--

       (AA) clause (i) and (ii) of subparagraph (A);
       (BB) subparagraphs (B) and (C)(i);
       (CC) clause (ii), and subclauses (II), (III), and (IV) of 
     clause (iii), of subparagraph (F); and
       (DD) subparagraph (G)(i);

       (bb) paragraph (3);
       (cc) in paragraph (4)--

       (AA) subparagraphs (A) and (B); and
       (BB) the flush text at the end;

       (dd) paragraphs (5) and (7);

       (III) subsection (C)(2)(B);
       (IV) paragraphs (1)(A), (2), and (3) of subsection (d); and
       (V) paragraphs (1) and (2) of subsection (f).
       (xv) In section 22--
       (I) subsection (a)(1);
       (II) in subsection (b)--

       (aa) paragraph (2);
       (bb) in paragraph (3)--

       (AA) subparagraphs (A) and (B)(ii);
       (BB) clauses (ii) and (iii) of subparagraph (C);
       (CC) subparagraph (D)(ii); and
       (DD) clauses (i), (ii), and (iv) of subparagraph (E);

       (cc) paragraph (5);
       (dd) subparagraphs (B) and (C) of paragraph (6);
       (ee) subparagraphs (A) and (B) of paragraph (7);
       (ff) paragraphs (8) and (9);
       (gg) in paragraph (10)--

       (AA) subparagraph (A)
       (BB) clauses (i) and (ii) of subparagraph (B); and
       (CC) subparagraph (C); and

       (hh) paragraphs (11), (12), and (13);

       (III) in subsection (d)--

       (aa) paragraph (1)(B)(i); and
       (bb) paragraph (3); and

       (IV) subsections (g)1 and (h).
       (xvi) Section 23(c).
       (xvii) In section 26--
       (I) subparagraphs (B) and (C) of subsection (c)(4); and
       (II) subsection (f)(1).
       (b) References in Other Laws, Document, and Records of the 
     United States.--In any law (excluding the Food Stamp Act of 
     1977), regulation, rule, document, or record of the United 
     States--
       (1) a reference to food stamp recipients shall be deemed to 
     be a reference to recipients of Secure Supplemental Nutrition 
     Assistance Program benefits;
       (2) a reference to food stamp households shall be deemed to 
     be a reference to households that receive Secure Supplemental 
     Nutrition Assistance Program benefits;
       (3) a reference to the Simplified Food Stamp Program shall 
     be deemed to be a reference to the Simplified Secure 
     Supplemental Nutrition Assistance Program;
       (4) a reference to food stamp participants shall be deemed 
     to be a reference to participants in the Secure Supplemental 
     Nutrition Assistance Program;
       (5) a reference to food stamp informational activities 
     shall be deemed to be a reference to informational activities 
     relating to the Secure Supplemental Nutrition Assistance 
     Program;
       (6) a reference to food stamp caseload shall be deemed to 
     be a reference to caseload under the Secure Supplemental 
     Nutrition Assistance Program;
       (7) a reference to food stamps shall be deemed to be a 
     reference to Secure Supplemental Nutrition Assistance Program 
     benefits; and
       (8) a reference to the food stamp program shall be deemed 
     to be a reference to Secure Supplemental Nutrition Assistance 
     Program.

     SEC. 4002. DEFINITION OF DRUG ADDICTION OR ALCOHOLIC 
                   TREATMENT AND REHABILITATION PROGRAM.

       Section 3(f) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(f)) is amended by striking `` center, under part B of 
     title XIX of the Public Health Service Act (42 U.S.C. 300x et 
     seq.)'' and inserting ``center, that is--
       ``(1) tax exempt; and
       ``(2) certified by the State title XIX agency, under part B 
     of title XIX of the Public Health Service Act (42 U.S.C. 300x 
     et seq.), as receiving funding under part B, eligible to 
     receive funding under part B even if no funds are being 
     received, or operating to further the purposes of part B, 
     except that nothing in this paragraph shall be construed to 
     require State or Federal licensure to meet these 
     requirements;''.

     SEC. 4003. NUTRITION EDUCATION.

       (a) Authority To Provide Nutrition Education.--Section 4(a) 
     of the Food Stamp Act of 1977 (7 U.S.C. 2013(a)) is amended 
     in the first sentence by inserting ``and through an approved 
     State plan, nutrition education'' after ``an allotment''.
       (b) Implementation.--Section 11(f) of the Food and 
     Nutrition Act of 1977 (7 U.S.C. 2020(f)) is amended to read 
     as follows:
       ``(f) Nutrition Education.--
       ``(1) In general.--State agencies may implement a nutrition 
     education program for individuals eligible for Secure 
     Supplemental Nutrition Assistance Program benefits that 
     promotes healthy food choices consistent with current Dietary 
     Guidelines.
       ``(2) Delivery of nutrition education.--State agencies may 
     deliver nutrition education directly to eligible persons or 
     through agreements with the Cooperative State Research, 
     Education and Extension Service, including through the 
     expanded food and nutrition education under section 3(d) of 
     the Act of May 8, 1914 (7 U.S.C. 343(d)), and other State and 
     community health and nutrition providers and organizations.
       ``(3) Nutrition education state plans.--State agencies 
     wishing to provide nutrition education under this subsection 
     shall submit a Nutrition Education State Plan to the Food and 
     Nutrition Service for approval. The plan shall identify the 
     uses of the funding for local projects and conform to 
     standards set forth by the Secretary in regulations or 
     guidance. State costs for providing nutrition education under 
     this subsection shall be reimbursed pursuant to section 
     16(a).
       ``(4) Notification.--Whenever practicable, State agencies 
     shall notify applicants, participants, and eligible program 
     participants of the availability of nutrition education under 
     this subsection.''.

     SEC. 4004. FOOD DISTRIBUTION ON INDIAN RESERVATIONS.

       (a) In General.--Section 4 of the Food Stamp Act of 1977 (7 
     U.S.C. 2013) is amended by striking subsection (b) and 
     inserting the following:
       ``(b) Food Distribution Program on Indian Reservations.--
       ``(1) In general.--Distribution of commodities, with or 
     without the Secure Supplemental Nutrition Assistance Program, 
     shall be made whenever a request for concurrent or separate 
     food program operations, respectively, is made by a tribal 
     organization.
       ``(2) Administration.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), in 
     the event of distribution on all or part of an Indian 
     reservation, the appropriate agency of the State government 
     in the area involved shall be responsible for the 
     distribution.
       ``(B) Administration by tribal organization.--If the 
     Secretary determines that a tribal organization is capable of 
     effectively and efficiently administering a distribution 
     described in subparagraph (A), then the tribal organization 
     shall administer the distribution.
       ``(C) Prohibition.--The Secretary shall not approve any 
     plan for a distribution described in subparagraph (A) that 
     permits any household on any Indian reservation to 
     participate simultaneously in the Secure Supplemental 
     Nutrition Assistance Program and the distribution of 
     federally donated foods.
       ``(3) Disqualified participants.--The Secretary shall 
     ensure that an individual who is disqualified from 
     participation in the Food Distribution Program on Indian 
     Reservations under this subsection is not eligible to 
     participate in the Secure Supplemental Nutrition Assistance 
     Program under this Act.
       ``(4) Administrative costs.--The Secretary is authorized to 
     pay such amounts for administrative costs of such 
     distribution on Indian reservations as the Secretary finds 
     necessary for effective administration of such distribution 
     by a State agency or tribal organization.
       ``(5)  Traditional and local foods fund.--
       ``(A) In general.--The Secretary shall establish a fund to 
     purchase traditional and locally-grown food, designated by 
     region, for recipients of food distributed under this 
     subsection.
       ``(B) Native american producers.--For recipients of food 
     distributed under subparagraph (A), at least 50 percent shall 
     be produced by Native American farmers, ranchers, and 
     producers.
       ``(C) Definition of traditional and locally grown.--The 
     Secretary, in conjunction with the Indian Tribal 
     Organizations, will determine the definition of traditional 
     and locally-grown.
       ``(D) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary $5,000,000 for each of 
     the fiscal years 2008 through 2012 to carry out subparagraph 
     (A).''.
       (b) FDPIR Food Package.--Not later than 180 days after the 
     date of enactment of this Act, the Secretary of Agriculture 
     shall submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that describes--
       (1) how the Secretary derives the process for determining 
     the food package under the Food Distribution Program on 
     Indian Reservations established under section 4(b) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2013(b)) (referred to in 
     this subsection as the ``food package'');
       (2) the extent to which the food package--
       (A) conforms (or fails to conform) to the 2005 Dietary 
     Guidelines for Americans published under section 301 of the 
     National Nutrition Monitoring and Related Research Act of 
     1990 (7 U.S.C. 5341);
       (B) addresses (or fails to address) the nutritional and 
     health challenges that are specific to Native Americans; and
       (C) addresses the nutritional needs of low-income Native 
     Americans, compared to the Secure Supplemental Nutrition 
     Assistance Program;
       (3) any plans of the Secretary to revise and update the 
     food package to conform with the most recent Dietary 
     Guidelines for Americans, including any costs associated with 
     the planned changes; and
       (4) if the Secretary does not plan changes to the food 
     package, the rationale of the Secretary for retaining the 
     food package.

     SEC. 4005. DEOBLIGATE FOOD STAMP COUPONS.

       (a) In General.--Section 7 of the Food Stamp Act of 1977 (7 
     U.S.C. 2016) is amended--
       (1) by striking the section designation and heading and all 
     that follows through ``subsection (j)) shall be'' and 
     inserting the following:

[[Page 21481]]



     ``SEC. 7. ISSUANCE AND USE OF BENEFITS.

       ``(a) In General.--Except as provided in subsection (j), 
     EBT cards shall be''.
       (2) in subsection (b)--
       (A) by striking ``(b) Coupons'' and inserting the 
     following:
       ``(b) Use.--Benefits''; and
       (B) by striking ``: Provided further'' and all that follows 
     through ``denominations issued'' ;
       (3) in subsection (c)--
       (A) by striking ``(c) Coupons'' and inserting the 
     following:
       ``(c) Design.--
       ``(1) In general.--EBT cards'';
       (B) in the 1st sentence by striking ``and define their 
     denomination''; and
       (C) by striking the 2d sentence and inserting the 
     following:
       ``(2) Prohibition.--The name of any public official shall 
     not appear on any EBT card.'';
       (4) by striking subsection (d);
       (5) in subsection (e)--
       (A) by striking ``coupons'' each place it appears and 
     inserting ``benefits''; and
       (B) by striking ``coupon issuers'' each place it appears 
     and inserting ``benefit issuers'';
       (6) in subsection (f)--
       (A) by striking ``coupons'' each place it appears and 
     inserting ``benefits'';
       (B) by striking ``coupon issuer'' and inserting ``benefit 
     issuer''; and
       (C) by striking ``section 11(e)(20)'' and all that follows 
     through the period and inserting ``section 11(e)(19).'';
       (7) by amending subsection (g) to read as follows:
       ``(g) Benefit System.--
       ``(1) Cost.--The cost of documents or systems that may be 
     required by subsection (i) may not be imposed upon a retail 
     food store participating in the Secure Supplemental Nutrition 
     Assistance Program.
       ``(2) Devaluation and termination of issuance of paper 
     coupons.--
       ``(A) Coupon issuance.--Beginning on the effective date of 
     this subsection, no State shall issue any coupon, stamp, 
     certificate, or authorization card to a household that 
     receives benefits under this Act.
       ``(B) Ebt cards.--Beginning 1 year after the effective date 
     of this subsection, only an EBT card issued under subsection 
     (i) shall be eligible for exchange at any retail food store.
       ``(C) De-obligation of coupons.--Coupons not redeemed in 
     the 1-year period beginning on the effective date of this 
     subsection will no longer be an obligation of the Federal 
     Government and shall not be redeemable.''.
       (8) in subsection (h)(1) by striking ``coupons'' and 
     inserting ``benefits'';
       (9) in subsection (j)--
       (A) in paragraph (2)(A)(ii) by striking ``printing, 
     shipping, and redeeming coupons'' and inserting ``issuing and 
     redeeming benefits''; and
       (B) in paragraph (5) by striking ``coupon'' and inserting 
     ``benefit''; and
       (10) in subsection (k)--
       (A) by striking ``coupons in the form of'' each place it 
     appears and inserting ``benefits in the form of''; and
       (B) by striking ``a coupon issued in the form of'' each 
     place it appears and inserting ``benefits in the form of''.
       (b) Conforming Amendments.--
       (1) Section 3 of the Food Stamp Act of 1977 (7 U.S.C. 2012) 
     is amended--
       (A) in subsection (a) by striking ``coupons'' and inserting 
     ``benefits'';
       (B) by amending subsection (b) to read as follows:
       ``(b) `Benefit' means the value of assistance provided 
     under this Act to a household by means of an electronic 
     benefit transfer under section 7(i), or other means of 
     providing assistance, as determined by the Secretary.'';
       (C) in the 1st sentence of subsection (c) by striking 
     ``authorization cards'' and inserting ``benefits'';
       (D) in subsection (d) by striking ``or access device'' and 
     all that follows through ``number'';
       (E) in subsection (e)--
       (i) by striking ``coupon issuer'' and inserting ``benefit 
     issuer''; and
       (ii) by striking ``coupons'' and inserting ``benefits'';
       (F) by after paragraph (f) the following:
       ``(f-1) Ebt Card.--The term `EBT card' means an electronic 
     benefit transfer card issued under section 7(i).'';
       (G) in subsection (i)(5)(D) by striking ``coupons'' and 
     inserting ``benefits''; and
       (H) in subsection (t) by inserting ``including point of 
     sale devices,'' after ``other means of access''.
       (2) Section 4(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2013(a)) is amended--
       (A) by striking ``coupons'' each place it appears and 
     inserting ``benefits''; and
       (B) by striking ``coupons issued'' and inserting ``benefits 
     issued''.
       (3) Section 5(i)(2)(E) of the Food Stamp Act of 1977 (7 
     U.S.C. 2014(i)(2)(E)) is amended by striking ``, as defined 
     in section 3(i) of this Act,''.
       (4) Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(b)(1)) is amended--
       (A) in subparagraph (B) by striking ``coupons or 
     authorization cards'' and inserting ``benefits''; and
       (B) by striking ``coupons'' each place it appears and 
     inserting ``benefits''.
       (5) Section 7(j)(5) is amended by striking ``coupon'' and 
     inserting ``benefit''.
       (6) Section 8(b) of the Food Stamp Act of 1977 (7 U.S.C. 
     2017(b)) is amended by striking ``, whether through coupons, 
     access devices, or otherwise''.
       (7) Section 9 of the Food Stamp Act of 1977 (7 U.S.C. 2018) 
     is amended--
       (A) by striking ``coupons'' each place it appears and 
     inserting ``benefits''; and
       (B) in subsection (a)--
       (i) in paragraph (1) by striking ``coupon'' and inserting 
     ``benefit''; and
       (ii) in paragraph (3) by striking ``coupons, or to 
     redeem,''.
       (8) Section 10 of the Food Stamp Act of 1977 (7 U.S.C. 
     2019) is amended--
       (A) by striking the section designation and heading and all 
     that follows through ``Regulations'' and inserting the 
     following:

     ``SEC. 10. REDEMPTION OF BENEFITS.

       ``Regulations''; and
       (B) by striking ``coupons'' each place it appears and 
     inserting ``benefits''.
       (9) Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 
     2020) is amended--
       (A) in subsection (e)--
       (i) in paragraph (15) by striking ``when using its 
     authorization card in order to receive its coupons'' and 
     inserting ``when receiving benefits''; and
       (ii) in paragraph (19) by striking ``that,'' and all that 
     follows through ``paragraph;'' and inserting ``that eligible 
     households may be required to present photographic 
     identification cards in order to receive their benefits.'';
       (B) in subsection (h) by striking ``coupon or coupons'' and 
     inserting ``benefits'';
       (C) by striking ``coupon'' each place it appears and 
     inserting ``benefit''; and
       (D) by striking ``coupons'' each place it appears and 
     inserting ``benefits''.
       (10) Section 13 of the Food Stamp Act of 1977 (7 U.S.C. 
     2022) is amended by striking ``coupons'' each place it 
     appears and inserting ``benefits''.
       (11) Section 15 of the Food Stamp Act of 1977 (7 U.S.C. 
     2024) is amended--
       (A) in subsection (a) by striking ``coupons'' and inserting 
     ``benefits'';
       (B) in subsection (b)(1)--
       (i) by striking ``coupons'' each place it appears and 
     inserting ``benefits'';
       (ii) by striking ``coupons or authorization cards'' and 
     inserting ``benefits''; and
       (iii) by striking ``access device'' each place it appears 
     and inserting ``benefit'';
       (C) in subsection (c) by striking ``coupons'' each place it 
     appears and inserting ``benefits'';
       (D) in subsection (d) by striking ``Coupons'' and inserting 
     ``Benefits'';
       (E) in subsections (e) and (f) by striking ``coupon'' each 
     place it appears and inserting ``benefit''; and
       (F) in subsection (g) by striking ``coupon, authorization 
     cards or access devices'' and inserting ``benefits''; and
       (12) Section 16(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2025(a)) is amended by striking ``coupons'' each place it 
     appears and inserting ``benefits''.
       (13) Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 
     2026) is amended--
       (A) in subsection (a)(2) by striking ``coupon'' and 
     inserting ``benefit'';
       (B) in subsection (b)(1)--
       (i) in subparagraph (B)(v)--

       (I) by striking ``countersigned food coupons or similar''; 
     and
       (II) by striking ``food coupons'' and inserting ``EBT 
     cards''; and

       (ii) in subparagraph (C)(i)(I) by striking ``coupons'' and 
     inserting ``EBT cards''; and
       (C) in subsection (j) by striking ``coupon'' and inserting 
     ``benefit''.
       (14) Section 21 of the Food Stamp Act of 1977 (7 U.S.C. 
     2030) is amended--
       (A) in subsection (d)(3)--
       (i) by striking ``food coupons'' and inserting 
     ``benefits''; and
       (ii) by striking ``food stamp benefits'' and inserting 
     ``benefits''.
       (15) Section 22 of the Food Stamp Act of 1977 (7 U.S.C. 
     2031) is amended--
       (A) by striking ``food coupons'' each place it appears and 
     inserting ``benefits'';
       (B) by striking ``coupons'' each place it appears and 
     inserting ``benefits''; and
       (C) in subsection (g)(1)(A) by striking ``coupon'' and 
     inserting ``benefit''.
       (c) References in Other Laws, Documents, and Records of the 
     United States.--In any law (excluding the Food Stamp Act of 
     1977), regulation, rule, document, or record of the United 
     States, a reference to ``coupon'', ``authorization card'', or 
     ``other access device'' as used in the Food Stamp Act of 1977 
     as in effect before the date of the enactment of this Act 
     shall be deemed to be a reference to ``benefit'' as defined 
     in such Act as in effect after the date of the enactment of 
     this Act.

     SEC. 4006. ALLOW FOR THE ACCRUAL OF BENEFITS.

       Section 7(i) of the Food Stamp Act of 1977 (7 U.S.C. 
     2016(i)) is amended by adding at the end the following:
       ``(12) Recovering electronic benefits.--
       ``(A) A State agency may recover benefits from a 
     household's electronic benefits account because of inactivity 
     in the account after the household has not accessed the 
     account the lesser of--
       ``(i) 3 months during which the account has continuously 
     had a balance in excess of $1,000, adjusted for changes in 
     the thrifty food plan since June 2007; or
       ``(ii) 12 months.
       ``(B) A household whose benefits are recovered under 
     subparagraph (A) shall receive notice and shall have the 
     benefits made available again upon a request made during a 
     period of not less than 12 months after the recovery.''.

     SEC. 4007. STATE OPTION FOR TELEPHONIC SIGNATURE.

       Section 11(e)(2)(C) of the Food Stamp Act of 1977 (7 U.S.C. 
     2020(e)(2)(C)) is amended--

[[Page 21482]]

       (1) by inserting ``(i)'' after ``(C)''; and
       (2) by adding at the end the following:
       ``(ii) A State agency may establish a system by which an 
     applicant household may sign an application through a 
     recorded verbal assent over the telephone. Any such system 
     shall--
       ``(I) record for future reference the household member's 
     verbal assent and the information to which assent was given;
       ``(II) include effective safeguards against impersonation, 
     identity theft, or invasions of privacy;
       ``(III) not deny or interfere with the right of the 
     household to apply in writing;
       ``(IV) promptly send the household member a written copy of 
     the application, with instructions on a simple procedure for 
     correcting any errors or omissions;
       ``(V) comply with paragraph (1)(B);
       ``(VI) satisfy all requirements for a signature on an 
     application under this Act and other laws applicable to the 
     Secure Supplemental Nutrition Assistance Program, with the 
     date on which the household member provides verbal assent 
     effective as the date of application for all purposes; and
       ``(VII) comply with such other standards as the Secretary 
     may establish.''.

     SEC. 4008. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.

       (a) Prohibition.--Section 11(e)(6) of the Food Stamp Act of 
     1977 (7 U.S.C. 2020(e)(6)) is amended--
       (1) in subparagraph (A) by striking ``and'' at the end;
       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) except as provided in section 5(h)(4), only State 
     employees employed in accordance with the current standards 
     for a Merit System of Personnel Administration, or any 
     standards later prescribed by the Office of Personnel 
     Management pursuant to section 208 of the Intergovernmental 
     Personnel Act of 1970 (42 U.S.C. 4728) modifying or 
     superseding such standards relating to the establishment and 
     maintenance of personnel standards on a merit basis, shall 
     undertake such certifications and shall--
       ``(i) represent the State agency in any official 
     communications with a prospective applicant, applicant, or 
     recipient household regarding their application or 
     participation, except that a nonprofit organization may 
     assist a household under paragraph (1) through activities 
     allowable under section 16(a)(4);
       ``(ii) participate in making any determinations relating to 
     a household's substantive or procedural compliance with the 
     requirements of this Act or implementing regulations, 
     including the adequacy of the household's application or of 
     verification of other information the household has submitted 
     in support of that application; or
       ``(iii) participate in making any other determinations 
     required under this subsection;
     except that nothing in this subparagraph shall prevent a 
     State agency from contracting for automated systems, issuance 
     services or program information activities reimbursed under 
     paragraphs (2), (3), (4), or (6) of section 16(a) or under 
     section 16(g) or for assisting in the verification of an 
     applicant's identity; and
       ``(C) the State agency shall not use any Federal funds--
       ``(i) to implement, to perform, or to carry out any 
     contract that does not comply with the requirements in effect 
     under subparagraph (B); or
       ``(ii) to pay any cost associated with the termination, 
     breach, or full or partial abrogation, of any contract that 
     does not comply with the requirements in effect under such 
     subparagraph;''.
       (b) Waivers.--Section 17(b)(1)(B)(iv)(III)(ff) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(ff)) is 
     amended by inserting ``or 11(e)(6)(B)'' before the semicolon 
     at the end.
       (c) Projects.--Section 26(f)(3)(E) of the Food Stamp Act of 
     1977 (7 U.S.C. 2035(f)(3)(E)) is amended by inserting 
     ``(6)(B),'' after ``paragraphs''.
       (d)  Disasters.--Section 5(h) of the Food Stamp Act of 1977 
     (7 U.S.C. 2014(h)) is amended by inserting at the end:
       ``(4) The Secretary may authorize a state agency, on a 
     temporary basis, to use employees or individuals that do not 
     meet the standards prescribed under section 11(e)(6)(B) in 
     order to determine eligibility for a disaster food stamp 
     program under this subsection.''.
       (e) Disallowance of Funds.--No funds shall be available 
     under any appropriations act for implementing or continuing 
     any contract that does not comply with section 11(e)(6)(B) of 
     the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(6)(B)) as 
     amended by subsection (a) nor for any costs associated with 
     the termination or full or partial abrogation of such 
     contract.
       (f) Transition Period.--Subsection (e) shall not apply to 
     the costs of implementing, continuing, or renegotiating any 
     contract concluded before January 1, 2007, (but shall apply 
     to any costs associated with the termination or full or 
     partial abrogation of such contract) until the first day of 
     the first month beginning at least 120 days after the date of 
     enactment of this Act.

     SEC. 4009. GRANTS FOR SIMPLE APPLICATION AND ELIGIBILITY 
                   DETERMINATION SYSTEMS AND IMPROVED ACCESS TO 
                   BENEFITS.

       Section 11(t)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2020(t)(1)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 4010. CIVIL MONEY PENALTIES AND DISQUALIFICATION OF 
                   RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS.

       Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) is 
     amended--
       (1) by striking the section heading and all that follows 
     through ``(a) Any approved'', and inserting the following:

     ``SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION OF 
                   RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS.

       ``(a) Disqualification.--
       ``(1) In general.--An approved'';
       (2) in subsection (a)--
       (A) in the 1st sentence by striking ``$10,000 for each 
     violation'' and all that follows through the period at the 
     end, and inserting ``$100,000 for each violation.''; and
       (B) in the 2d sentence--
       (i) by striking ``Regulations'' and inserting the 
     following:
       ``(2) Regulations.--Regulations'';
       (ii) by striking ``violation and'' and inserting 
     ``violation of'';
       (iii) by inserting a comma after ``disqualification of''; 
     and
       (iv) by striking ``a retail store'' and inserting ``and the 
     assessment of a civil money penalty against, a retail 
     store'';
       (3) in subsection (b)--
       (A) by striking ``(b) Disqualification'' and all that 
     follows through ``shall be--'', and inserting the following:
       ``(b) Period of Disqualification.--Subject to subsection 
     (c), a disqualification shall be--'';
       (B) in paragraph (1) by striking ``of no less than six 
     months nor more than five years'' and inserting ``not to 
     exceed 5 years'';
       (C) in paragraph (2) by striking ``of no less than twelve 
     months nor more than ten years'' and inserting ``not to 
     exceed 10 years.'';
       (D) in paragraph (3)--
       (i) in subparagraph (B)--

       (I) by striking ``coupons or trafficking in coupons or 
     authorization cards'' each place it appears, and inserting 
     ``program access devices or benefit instruments or 
     trafficking in program access devices or benefit 
     instruments''; and
       (II) by inserting ``or a finding of the unauthorized 
     redemption, use, transfer, acquisition, alteration, or 
     possession of benefits or access devices'' after ``concern'' 
     the 1st place it appears;

       (4) in paragraph (3)(C) by striking ``and'' at the end;
       (5) in subsection (c)--
       (A) by striking ``(c) The action'' and inserting the 
     following:
       ``(c) Treatment of Disqualification and Penalty 
     Determinations.--
       ``(1) Review.--The action''; and
       (B) by striking ``coupons'' and inserting ``benefits'';
       (6) in subsection (d) by striking ``coupons'' in each place 
     it appears and inserting ``benefits'';
       (7) in subsection (f) by striking ``food coupons'' and 
     inserting ``benefits'';
       (8) by redesignating subsection (c) through (g) as 
     subsection (d) through (h), respectively;
       (9) inserting after subsection (b) the following:
       ``(c) In addition to a disqualification under subsection 
     (b), the Secretary may assess a civil monetary penalty of up 
     to $100,000;''; and
       (10) by adding at the end:
       ``(i) The Secretary shall, in consultation with the 
     Inspector General of the Department of Agriculture, provide 
     for procedures by which the processing of benefit redemptions 
     for certain retail food stores and wholesale food concerns 
     may be immediately suspended pending administrative action to 
     disqualify such a store or concern. Under the procedures 
     prescribed pursuant to this subsection, if the Secretary, in 
     consultation with the Inspector General, determines that a 
     retail food store or wholesale food concern is engaged in 
     flagrant violations of this Act or the regulations issued 
     pursuant to this Act, unsettled benefits that have been 
     redeemed by the retail food store or wholesale food concern 
     may be suspended and, if the suspension is upheld, subject to 
     forfeiture pursuant to section 12(g). If the disqualification 
     action not upheld, suspended funds held by the Secretary 
     shall be released to such store or such concern. The 
     Secretary shall not be liable for the value of any interest 
     on funds suspended under this subsection.''.

     SEC. 4011. MAJOR SYSTEMS FAILURES.

       Section 13(b) of the Food Stamp Act of 1977 (7 U.S.C. 
     2022(b)) is amended by adding at the end the following:
       ``(5) Over issuances caused by systemic state errors.--
       ``(A) In general.--If the Secretary determines that a State 
     agency over issued benefits to a substantial number of 
     households in a fiscal year as a result of a major systemic 
     error by the State agency, as determined by the Secretary, 
     the Secretary may prohibit the State agency from collecting 
     these over issuances from some or all households.
       ``(B) Procedures.--
       ``(i) Information reporting by states.--Every State agency 
     shall provide to the Secretary all information requested by 
     the Secretary concerning the issuance of benefits to 
     households by the State agency in the applicable fiscal year.
       ``(ii) Final determination.--After reviewing relevant 
     information provided by a State agency, the Secretary shall 
     make a final determination--

       ``(I) whether the State agency over issued benefits to a 
     substantial number of households as a result of a systemic 
     error in the applicable fiscal year; and
       ``(II) as to the amount of the over issuance in the 
     applicable fiscal year for which the State agency is liable.

       ``(iii) Establishing a claim.--Upon determining under 
     clause (ii) that a State agency has over issued benefits to 
     households due to a

[[Page 21483]]

     major systemic error determined under subparagraph (A), the 
     Secretary shall establish a claim against the State agency 
     equal to the value of the over issuance caused by the 
     systemic error.
       ``(iv) Administrative and judicial review.--Administrative 
     and judicial review, as provided in section 14, shall apply 
     to the final determinations by the Secretary under clause 
     (ii).
       ``(v) Remission to the secretary.--

       ``(I) Determination not appealed.--If the determination of 
     the Secretary under clause (ii) is not appealed, the State 
     agency shall, as soon as practicable, remit to the Secretary 
     the dollar amount specified in the claim under clause (iii).
       ``(II) Determination appealed.--If the determination of the 
     Secretary under clause (ii) is appealed, upon completion of 
     administrative and judicial review under clause (iv), and a 
     finding of liability on the part of the State, the appealing 
     State agency shall, as soon as practicable, remit to the 
     Secretary a dollar amount subject to the finding of the 
     administrative and judicial review.

       ``(vi) Alternative method of collection.--

       ``(I) In general.--If a State agency fails to make a 
     payment under clause (v) within a reasonable period of time, 
     as determined by the Secretary, the Secretary may reduce any 
     amount due to the State agency under any other provision of 
     this Act by the amount due.
       ``(II) Accrual of interest.--During the period of time 
     determined by the Secretary to be reasonable under subclause 
     (I), interest in the amount owed shall not accrue.

       ``(vii) Limitation.--Any liability amount established under 
     section 16(c)(1)(C) shall be reduced by the amount of the 
     claim established under this subparagraph.''.

     SEC. 4012. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.

       Section 16(h)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2025(h)(1)) is amended--
       (1) in subparagraph (A)(vii) by striking ``fiscal years 
     2002 through 2007'' and inserting ``fiscal years 2008 through 
     2012''; and
       (2) in subparagraph (E)(i) by striking ``fiscal years 2002 
     through 2007'' and inserting ``fiscal years 2008 through 
     2012''.

     SEC. 4013. REDUCTIONS IN PAYMENTS FOR ADMINISTRATIVE COSTS.

       Section 16(k)(3) of the Food Stamp Act of 1977 (7 U.S.C. 
     2025(k)(3)) is amended--
       (1) in subparagraph (A) by striking ``2007'' and inserting 
     ``2012''; and
       (2) in subparagraph (B)(ii) by striking ``2007'' and 
     inserting ``2012''.

     SEC. 4014. CASH PAYMENT PILOT PROJECTS.

       Section 17(b)(1)(B)(vi) of the Food Stamp Act of 1977 (7 
     U.S.C. 2026(b)(1)(B)(vi)) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 4015. FINDINGS OF CONGRESS REGARDING SECURE SUPPLEMENTAL 
                   NUTRITION ASSISTANCE PROGRAM NUTRITION 
                   EDUCATION.

       (a) Findings.--The Congress finds the following:
       (1) Nutrition education under the Food Stamp Act of 1977 
     plays an essential role in improving the dietary and physical 
     activity practices of low income Americans, helping to reduce 
     food insecurity, prevent obesity, and reduce the risks of 
     chronic disease.
       (2) Expert bodies, such as the Institute of Medicine, 
     indicate that dietary and physical activity behavior change 
     is more likely to result from the combined application of 
     public health approaches and education than from individual 
     education alone.
       (3) State programs are currently implementing such 
     nutrition education using effective strategies, including 
     direct education, group activities, and social marketing.
       (b) Support Nutrition Education.--The Secretary of 
     Agriculture should support and encourage the most effective 
     interventions for nutrition education under the Food Stamp 
     Act of 1977, including public health approaches as well as 
     traditional education, to increase the likelihood that 
     recipients of Secure Supplemental Nutrition Assistance 
     benefits and those who are potentially eligible for such 
     benefits will choose diets and physical activity practices 
     consistent with the Dietary Guidelines for Americans. To 
     promote the most effective implementation of publicly funded 
     programs, State nutrition education activities under the Food 
     Stamp Act of 1977 should be coordinated with other federally 
     funded food assistance and public health programs and should 
     leverage public/private partnerships to maximize resources 
     and impact.

     SEC. 4016. NUTRITION EDUCATION AND PROMOTION INITIATIVE TO 
                   ADDRESS OBESITY.

       Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is 
     amended by adding at the end the following:
       ``(k) Nutrition Education and Promotion Initiative To 
     Address Obesity.--
       ``(1) In general.--The Secretary shall establish a 
     demonstration program, to be known as the `Initiative to 
     Address Obesity Among Low-Income Americans' (referred to in 
     this subsection as the `Initiative'), to develop and 
     implement solutions to reduce obesity in the United States.
       ``(A) Selection.--The Secretary shall solicit and 
     competitively select demonstration proposals for strategies 
     to address obesity among low-income Americans.
       ``(B) Evaluation.--The effectiveness of these strategies 
     shall be rigorously evaluated to assess the impact on 
     overweight and obesity among low-income persons.
       ``(C) Dissemination.--Evaluation results shall be shared 
     broadly to inform policy makers, service providers, other 
     partners, and the public in order to promote wide use of 
     successful strategies.
       ``(2) Grants.--
       ``(A) In general.--In carrying out the Initiative, the 
     Secretary may enter into competitively awarded contracts or 
     cooperative agreements with, or grants to, public or private 
     organizations or agencies as defined by the Secretary, for 
     use in accordance with projects that meet the strategy goals 
     of the Initiative.
       ``(B) Application.--To be eligible to receive a contract, 
     cooperative agreement, or grant under this paragraph, an 
     organization shall submit to the Secretary an application at 
     such time, in such manner, and containing such information as 
     the Secretary may require.
       ``(C) Selection criteria.--Demonstration proposals shall be 
     evaluated against publicly disseminated criteria that 
     include--
       ``(i) identification of a low-income target audience that 
     corresponds to individuals living in households with incomes 
     at or below 185 percent of the poverty level;
       ``(ii) incorporation of a scientifically-based strategy 
     that is designed to improve diet quality through more 
     healthful food purchases, preparation, or consumption;
       ``(iii) a commitment to a demonstration plan that allows 
     for a rigorous outcome evaluation, including data collection; 
     and
       ``(iv) other criteria, as determined by the Secretary.
       ``(D) Use of funds.--
       ``(i) Prohibition.--Funds shall not be used for projects 
     that limit the use of benefits.
       ``(ii) Monitoring and evaluation.--The Secretary may use 
     funds provided for the Initiative to pay costs associated 
     with monitoring, evaluation, and dissemination of the 
     Initiative's findings.
       ``(3) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $10,000,000 
     for each of the fiscal years 2008 through 2012, except that 
     no new grants may be made under this subsection after 
     September 30, 2012.''.

     SEC. 4017. AUTHORIZATION OF APPROPRIATIONS.

       Section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2027(a)(1)) is amended by striking ``2003 through 2007'' and 
     inserting ``2008 through 2012''.

     SEC. 4018. CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO AND 
                   AMERICAN SAMOA.

        Section 19(a)(2)(A)(ii) of the Food Stamp Act of 1977 (7 
     U.S.C. 2028(a)(2)(A)(ii)) is amended in subparagraph (A)(ii) 
     by striking ``2007'' and inserting ``2012''.

     SEC. 4019. STUDY ON COMPARABLE ACCESS TO SECURE SUPPLEMENTAL 
                   NUTRITION ASSISTANCE PROGRAM BENEFITS FOR 
                   PUERTO RICO.

       Section 19 of the Food Stamp Act of 1977 (7 U.S.C. 2028) is 
     amended by adding at the end the following:
       ``(e) Study.--The Secretary shall conduct a study of the 
     feasibility and effects of including the Commonwealth of 
     Puerto Rico under section 3(m), in lieu of providing the 
     block grant under this section. The study shall include--
       ``(1) an assessment of the administrative, financial 
     management, and other changes that would be required by the 
     Commonwealth to establish a comparable Secure Supplemental 
     Nutrition Assistance Program;
       ``(2) a discussion of the appropriate program rules under 
     the other sections of the Act, such as benefit levels under 
     section 3(o), income eligibility standards under sections 5 
     and 6, and deduction levels under section 5(e), for the 
     Commonwealth to establish a comparable Secure Supplemental 
     Nutrition Assistance Program;
       ``(3) an estimate of the impact on Federal and Commonwealth 
     benefit and administrative costs;
       ``(4) an estimate of the impact of the Secure Supplemental 
     Nutrition Assistance Program on hunger and food insecurity 
     among low-income Puerto Ricans, and
       ``(5) such other findings as the Secretary deems 
     appropriate.''.

     SEC. 4020. REAUTHORIZATION OF COMMUNITY FOOD PROJECT 
                   COMPETITIVE GRANTS.

       (a) Authorization of Appropriations.--Section 25 of the 
     Food Stamp Act of 1977 (U.S.C. 2034) is amended--
       (1) in subsections (c), (d), (e)(1), and (f)(1) by striking 
     ``subsection (b)'' each place it appears and inserting 
     ``subsection (g)'';
       (2) by striking subsection (b);
       (3) by redesignating subsections (c) through (g) as 
     subsections (b) through (f), respectively; and
       (4) by inserting after paragraph (f) the following:
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to make grants available 
     to assist eligible private nonprofit entities to establish 
     and carry out community food projects $30,000,000 for each of 
     the fiscal years 2008 through 2012.''.
       (b) Preferences for Certain Projects.--Subsection (c) of 
     section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034), as 
     so redesignated by subsection (a) of this section, is 
     amended--
       (1) in paragraph (3) by striking ``or'' at the end;
       (2) in paragraph (4) by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(5) serve special needs in areas of--
       ``(A) transportation and processing for expanding 
     institutional and emergency food service demand for local 
     food;
       ``(B) retail access to healthy foods in underserved 
     markets;

[[Page 21484]]

       ``(C) integration of urban and metro-area food production 
     in food projects; and
       ``(D) technical assistance for youth, socially 
     disadvantaged individuals, and limited resource groups.''
       (c) Matching Fund Requirements.--Subsection (d)(1) of 
     section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034), as 
     so redesignated by subsection (a) of this section, is amended 
     by striking ``50'' and inserting ``75''.
       (d) Term of Grant.--Subsection (e)(2) of section 25 of the 
     Food Stamp Act of 1977 (7 U.S.C. 2034(e)(2)), as so 
     redesignated by subsection (a) of this section, is amended by 
     striking ``3'' and inserting ``5''.
       (e) Funding for Innovative Programs.--Subsection (h)(4) of 
     section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034), as 
     so redesignated by subsection (a) of this section, is 
     amended--
       (1) by striking ``fiscal years 2003 though 2007'' and 
     inserting ``fiscal years 2008 through 2012''; and
       (2) by striking ``200,000'' and inserting ``$500,000''.

     SEC. 4021. EMERGENCY FOOD ASSISTANCE.

       Section 27(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2036(a)) is amended by striking ``2007'' and inserting 
     ``2012''.
                   Subtitle B--Commodity Distribution

     SEC. 4201. AUTHORIZATION OF APPROPRIATIONS.

       Section 204(a)(1) of the Emergency Food Assistance Act of 
     1983 (7 U.S.C. 7508(a)(1)) is amended by striking 
     ``$60,000,000 for each of the fiscal years 2003 through 
     2007'' and inserting ``$100,000,000 for each of the fiscal 
     years 2008 through 2012''.

     SEC. 4202. DISTRIBUTION OF SURPLUS COMMODITIES; SPECIAL 
                   NUTRITION PROJECTS.

       Section 1114(a)(2)(A) of the Agriculture and Food Act of 
     1981 (7 U.S.C. 1431e(a)(2)(A)) is amended by striking 
     ``2007'' and inserting ``2012''.

     SEC. 4203. COMMODITY DISTRIBUTION PROGRAM.

       (a) Commodity Distribution Program.--Section 4 of the 
     Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 
     612c note) is amended by striking ``2007'' and inserting 
     ``2012''.
       (b) Commodity Supplemental Food Program.--Section 5 of the 
     Agriculture and Consumer Protection Act (7 U.S.C. 612c note) 
     is amended--
       (1) in subsection (a)--
       (A) in paragraph (1) by striking ``fiscal years 2003 
     through 2007'' and inserting ``for fiscal year 2008 and each 
     fiscal year thereafter''; and
       (B) in paragraph (2)(B)--
       (i) in the heading by striking in ``2007'' and inserting 
     ``2012''; and
       (ii) by striking ``2007'' and inserting ``2012'';
       (2) in subsection (d)(2) by inserting ``, and for each 
     fiscal year thereafter,'' after ``2007'';
       (3) by amending subsection (g) to read as follows:
       ``(g) Use of Resources.--Each local agency shall use funds 
     made available to the agency to provide assistance under the 
     program to low-income elderly individuals, women, infants, 
     and children in need for food assistance in accordance with 
     such regulations as the Secretary may prescribe.'';
       (4) in paragraphs (2) and (3) of subsection (h) by 
     inserting ``elderly individuals,'' before ``pregnant''; and
       (5) by adding at the end the following:
       ``(m) Income Eligibility Standards.--The Secretary shall 
     establish maximum income eligibility standards to be used in 
     conjunction with such other risk criteria as may be 
     appropriate in determining eligibility for the program. Such 
     income standards shall be the same for all pregnant, 
     postpartum, and breastfeeding women, for infants, for 
     children, and for elderly individuals qualifying for the 
     program, and shall not exceed the maximum income limit 
     prescribed under section 17(d)(2)(A)(i) of the Child 
     Nutrition Action of 1966 (42 U.S.C. 1786(d)(2)(A)(i)).''.
            Subtitle C--Child Nutrition and Related Programs

     SEC. 4301. PURCHASE OF FRESH FRUITS AND VEGETABLES FOR 
                   DISTRIBUTION TO SCHOOLS AND SERVICE 
                   INSTITUTIONS.

       Section 10603 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 612c-4) is amended by striking subsection 
     (b) and inserting the following new subsection:
       ``(b) Purchase of Fresh Fruits and Vegetables for 
     Distribution to Schools and Service Institutions.--
       ``(1) Purchase authority.--The Secretary of Agriculture 
     shall purchase fresh fruits and vegetables for distribution 
     to schools and service institutions in accordance with 
     section 6(a) of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1755(a)), using, of the amount specified in 
     subsection (a)--
       ``(A) not less than $50,000,000 for each of fiscal years 
     2008 and 2009; and
       ``(B) not less than $75,000,000 for each of fiscal years 
     2010 through 2012.
       ``(2) Servicing agency.--The Secretary of Agriculture may 
     provide for the Secretary of Defense to serve as the 
     servicing agency for the procurement of the fresh fruits and 
     vegetables under this subsection on the same terms and 
     conditions as provided in the memorandum of agreement entered 
     into between the Agricultural Marketing Service, the Food and 
     Consumer Service, and the Defense Personnel Support Center 
     during August 1995 (or any successor memorandum of 
     agreement).''.

     SEC. 4302. BUY AMERICAN REQUIREMENTS.

       (a) Findings.--The Congress finds the following:
       (1) Federal law requires that commodities and products 
     purchased with Federal funds be, to the extent practicable, 
     of domestic origin.
       (2) Federal Buy American statutory requirements seek to 
     ensure that purchases made with Federal funds benefit 
     domestic producers.
       (3) The Richard B. Russell National School Lunch Act 
     requires the use of domestic food products for all meals 
     served under the program, including foods products purchased 
     with local funds.
       (b) Buy American Statutory Requirements.--The Department of 
     Agriculture should undertake training, guidance, and 
     enforcement of the various current Buy American statutory 
     requirements and regulations, including those of the National 
     School Lunch Act and the DOD Fresh program.

     SEC. 4303. EXPANSION OF FRESH FRUIT AND VEGETABLE PROGRAM.

       Section 18 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1769) is amended in subsection (g)--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``July 2004'' and inserting ``July 2007''; and
       (B) in paragraph (1) by amending subparagraphs (A) and (B) 
     to read as follows:
       ``(A) 35 elementary or secondary schools in each State;
       ``(B) additional elementary or secondary schools in each 
     State in proportion to the student population of the State; 
     and'';
       (2) in paragraph (3)(A) by striking ``paragraph (1)(B)'' 
     and inserting ``paragraph (1)'';
       (3) in paragraph (5) in each of subparagraphs (A) and (B), 
     by striking ``2008'' and inserting ``2012''; and
       (4) in paragraph (6)(B)--
       (A) in clause (i)--
       (i) by striking ``October 1, 2004, and on each October 1 
     thereafter,'' and inserting ``October 1, 2007, and on each 
     October 1 thereafter,''; and
       (ii) by striking ``$9,000,000'' and inserting 
     ``$70,000,000''; and
       (B) by adding at the end the following:
       ``(iii) Administrative expenses.--For fiscal year 2009 and 
     each fiscal year thereafter, of the amount available to carry 
     out this subsection, the Secretary may reserve not more than 
     1 percent of that amount for administrative expenses in 
     carrying out this subsection.
       ``(iv) State administrative costs.--For fiscal year 2009 
     and each fiscal year thereafter, of the amount received by a 
     State to carry out this subsection, the State may use not 
     more than 5 percent of that amount for administrative 
     expenses in carrying out this subsection. To be eligible to 
     use such funds for such expenses, the State must submit to 
     the Secretary a plan indicating how the State intends to use 
     such funds.
       ``(v) Federal requirements.--The Secretary shall establish 
     requirements to be followed by States in administering this 
     subsection. The initial set of requirements shall be 
     established not later than 1 year after the date of the 
     enactment of this clause.''.

     SEC. 4304. PURCHASES OF LOCALLY PRODUCED FOODS.

       Section 9(j) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1758(j)) is amended to read as follows:
       ``(j) Purchases of Locally Produced Foods.--The Secretary 
     shall--
       ``(1) encourage institutions receiving funds under this Act 
     and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) 
     to purchase locally produced foods, to the maximum extent 
     practicable and appropriate;
       ``(2) advise institutions participating in a program 
     described in paragraph (1) of the policy described in that 
     paragraph and post information concerning the policy on the 
     website maintained by the Secretary; and
       ``(3) allow institutions receiving funds under this Act and 
     the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 
     including the Department of Defense Fresh Fruit and Vegetable 
     Program, to use a geographic preference for the procurement 
     of locally produced foods.''.
                       Subtitle D--Miscellaneous

     SEC. 4401. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

       (a) Amendment.--Section 4402 of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 3007) is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) Authorization.--
       ``(1) The Secretary of Agriculture shall use $15,000,000 
     for each of fiscal years 2008 through 2012 of the funds 
     available to the Commodity Credit Corporation to carry out 
     and expand the seniors farmers' market nutrition program.
       ``(2) There are authorized to be appropriated $20,000,000 
     for fiscal year 2008, $30,000,000 for fiscal year 2009, 
     $45,000,000 for fiscal year 2010, $60,000,000 for fiscal year 
     2011, and $75,000,000 for fiscal year 2012 to carry out and 
     expand the seniors farmers' market nutrition program.'';
       (2) in subsection (b)(1) by inserting ``honey,'' after 
     ``vegetables,'';
       (3) by amending subsection (c) to read as follows:
       ``(c) Exclusion of Benefits in Determining Eligibility for 
     Other Programs.--The value of any benefit provided to any 
     eligible seniors farmers' market nutrition program recipient 
     under this section shall not be considered to be income or 
     resources for any purposes under any Federal, State, or local 
     law.''; and
       (4) by adding at the end the following:
       ``(d) Prohibition on Collection of Sales Tax.--The State 
     shall ensure that no State or

[[Page 21485]]

     local taxes are collected within the State on purchases of 
     food with coupons distributed under the seniors farmers' 
     market nutrition program.
       ``(e) Regulations.--The Secretary may issue such 
     regulations as the Secretary considers necessary to carry out 
     the seniors farmers' market nutrition program.''.

     SEC. 4402. CONGRESSIONAL HUNGER CENTER.

        Section 4404 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 1621 note) is amended to read as follows:

     ``SEC. 4404. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY 
                   LELAND INTERNATIONAL HUNGER FELLOWS.

       ``(a) Short Title.--This section may be cited as the `Bill 
     Emerson National Hunger Fellows and Mickey Leland 
     International Hunger Fellows Program Act of 2007'.
       ``(b) Findings.--The Congress finds as follows:
       ``(1) There is a critical need for compassionate 
     individuals who are committed to assisting people who suffer 
     from hunger to initiate and administer solutions to the 
     hunger problem.
       ``(2) Bill Emerson, the distinguished late Representative 
     from the 8th District of Missouri, demonstrated his 
     commitment to solving the problem of hunger in a bipartisan 
     manner, his commitment to public service, and his great 
     affection for the institution and ideals of the Congress of 
     the United States.
       ``(3) George T. (Mickey) Leland, the distinguished late 
     Representative from the 18th District of Texas, demonstrated 
     his compassion for those in need, his high regard for public 
     service, and his lively exercise of political talents.
       ``(4) The special concern that Mr. Emerson and Mr. Leland 
     demonstrated during their lives for the hungry and poor was 
     an inspiration for others to work toward the goals of 
     equality and justice for all.
       ``(5) These two outstanding leaders maintained a special 
     bond of friendship regardless of political affiliation and 
     worked together to encourage future leaders to recognize and 
     provide service to others, and therefore it is especially 
     appropriate to honor the memory of Mr. Emerson and Mr. Leland 
     by creating a fellowship program to develop and train the 
     future leaders of the United States to pursue careers in 
     humanitarian service.
       ``(c) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means--
       ``(A) if the Secretary of Agriculture enters into a 
     contract described in subsection (d)(3), the head of the 
     Congressional Hunger Center; or
       ``(B) if the Secretary does not enter into such a contract, 
     the Secretary.
       ``(2) Fellow.--The term `fellow' means--
       ``(A) a Bill Emerson Hunger Fellow; or
       ``(B) a Mickey Leland Hunger Fellow
       ``(3) Fellowship programs.--The term `Fellowship Programs' 
     means the Bill Emerson National Hunger Fellowship Program and 
     the Mickey Leland International Hunger Fellowship Program 
     established by subsection (d).
       ``(d) Fellowship Program.--There is established in the 
     Department of Agriculture the Bill Emerson National Hunger 
     Fellowship Program and the Mickey Leland International Hunger 
     Fellowship Program.
       ``(1) Purposes.--The purposes of the Fellowship Programs 
     are--
       ``(A) to encourage future leaders of the United States to 
     pursue careers in humanitarian and public service, to 
     recognize the needs of low-income people and hungry people, 
     and to provide assistance to people in need; and
       ``(B) to seek public policy solutions to the challenges of 
     hunger and poverty, to provide training and development 
     opportunities for such leaders through placement in programs 
     operated by appropriate organizations or entities.
       ``(2) Focus of programs.--
       ``(A) Focus of bill emerson hunger fellowship program.--The 
     Bill Emerson Hunger Fellowship Program shall address hunger 
     and poverty in the United States.
       ``(B) Focus of mickey leland hunger fellowship program.--
     The Mickey Leland Hunger Fellowship Program shall address 
     international hunger and other humanitarian needs.
       ``(3) Administration.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall offer to enter into a contract with the 
     Congressional Hunger Center to administer the Fellowship 
     Programs.
       ``(B) Requirement.--As a condition of a contract described 
     in subparagraph (A), the Congressional Hunger Center shall 
     agree to submit to Congress each year the results of an 
     independent financial audit that demonstrates that the 
     Congressional Hunger Center uses accounting procedures that 
     conform to generally accepted accounting principles and 
     auditing procedures that conform to chapter 75 of title 31, 
     United States Code (commonly known as the `Single Audit Act 
     of 1984').
       ``(e) Fellowships.--
       ``(1) In general.--The Administrator shall make available 
     Bill Emerson Hunger Fellowships and Mickey Leland Hunger 
     Fellowships in accordance with this subsection.
       ``(2) Curriculum.--
       ``(A) In general.--The fellowship programs shall provide 
     experience and training to develop the skills necessary to 
     train fellows to carry out the purposes described in 
     subsection (d)(1), including--
       ``(i) training in direct service programs for the hungry 
     and other anti-hunger programs in conjunction with community-
     based organizations through a program of field placement; and
       ``(ii) providing experience in policy development through 
     placement in a governmental entity or nongovernmental, 
     nonprofit, or private sector organization.
       ``(B) Work plan.--To carry out subparagraph (A) and assist 
     in the evaluation of the fellowships under paragraph (6), the 
     Administrator shall, for each fellow, approve a work plan 
     that identifies the target objectives for the fellow in the 
     fellowship, including specific duties and responsibilities 
     relating to those objectives.
       ``(3) Period of fellowship.--
       ``(A) Emerson fellow.--A Bill Emerson Hunger Fellowship 
     awarded under this subsection shall be for not more than 15 
     months.
       ``(B) Leland fellow.--A Mickey Leland Hunger Fellowship 
     awarded under this subsection shall be for not more than 2 
     years.
       ``(4) Selection of fellows.--
       ``(A) In general.--Fellowships shall be awarded pursuant to 
     a nationwide competition established by the Administrator.
       ``(B) Qualifications.--A successful program applicant shall 
     be an individual who has demonstrated--
       ``(i) an intent to pursue a career in humanitarian service 
     and outstanding potential for such a career;
       ``(ii) leadership potential or actual leadership 
     experience;
       ``(iii) diverse life experience;
       ``(iv) proficient writing and speaking skills;
       ``(v) an ability to live in poor or diverse communities; 
     and
       ``(vi) such other attributes as are considered to be 
     appropriate by the Administrator.
       ``(5) Amount of award.--
       ``(A) In general.--A fellow shall receive a living 
     allowance during the term of the Fellowship and, subject to 
     subparagraph (B), an end-of-service award.
       ``(B) Requirement for successful completion of 
     fellowship.--Each fellow shall be entitled to receive an end-
     of-service award at an appropriate rate for each month of 
     satisfactory service completed, as determined by the 
     Administrator.
       ``(C) Terms of fellowship.--A fellow shall not be 
     considered an employee of--
       ``(i) the Department of Agriculture;
       ``(ii) the Congressional Hunger Center; or
       ``(iii) a host agency in the field or policy placement of 
     the fellow.
       ``(D) Recognition of fellowship award.--
       ``(i) Emerson fellow.--An individual awarded a fellowship 
     from the Bill Emerson Hunger Fellowship shall be known as an 
     `Emerson Fellow'.
       ``(ii) Leland fellow.--An individual awarded a fellowship 
     from the Mickey Leland Hunger Fellowship shall be known as a 
     `Leland Fellow'.
       ``(6) Evaluation.--The Administrator shall conduct periodic 
     evaluations of the Fellowship Programs.
       ``(f) Authority.--
       ``(1) In general.--Subject to paragraph (2), in carrying 
     out this section, the Administrator may solicit, accept, use, 
     and dispose of gifts, bequests, or devises of services or 
     property, both real and personal, for the purpose of 
     facilitating the work of the Fellowship Programs.
       ``(2) Limitation.--Gifts, bequests, or devises of money and 
     proceeds from sales of other property received as gifts, 
     bequests, or devises shall be used exclusively for the 
     purposes of the Fellowship Programs.
       ``(g) Report.--Each year, the Administrator shall submit to 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate a report that describes the activities and 
     expenditures of the Fellowship Programs during the preceding 
     fiscal year.
       ``(h) Funding.--There is authorized to be appropriated to 
     the Secretary to carry out this section $3,000,000 for each 
     of the fiscal years 2008 through 2012.''.

     SEC. 4403. JOINT NUTRITION MONITORING AND RELATED RESEARCH 
                   ACTIVITIES.

       Subtitle D of title IV of the Farm Security and Rural 
     Investment Act of 2002 (Public Law 107-171; 116 Stat. 333) is 
     amended--
       (1) by redesignating section 4405 (2 U.S.C. 1161 note; 
     Public Law 107-171) as section 4406; and
       (2) by inserting after section 4404 the following:

     ``SEC. 4405. JOINT NUTRITION MONITORING AND RELATED RESEARCH 
                   ACTIVITIES.

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

                    Subtitle A--Farm Ownership Loans

Sec. 5001. Conservation loan guarantee program.
Sec. 5002. Limitations on amount of ownership loans.
Sec. 5003. Down payment loan program.

[[Page 21486]]

Sec. 5004. Beginning farmer and rancher contract land sales program.

                      Subtitle B--Operating Loans

Sec. 5011. Limitations on amount of operating loans.
Sec. 5012. Suspension of limitation on period for which borrowers are 
              eligible for guaranteed assistance.

                 Subtitle C--Administrative Provisions

Sec. 5021. Inventory sales preferences.
Sec. 5022. Loan fund set-asides.
Sec. 5023. Transition to private commercial or other sources of credit.
Sec. 5024. Extension of the right of first refusal to reacquire 
              homestead property to immediate family members of 
              borrower-owner.
Sec. 5025. Rural development and farm loan program activities.

                        Subtitle D--Farm Credit

Sec. 5031. Agribusiness loan eligibility.
Sec. 5032. Loan-to-asset value requirements.
Sec. 5033. Population limit for single-family housing loans.
Sec. 5034. Bank for cooperatives voting stock.
Sec. 5035. Majority farmer control requirement.
Sec. 5036. Borrower stock requirement.
Sec. 5037. Rural utility loans.
Sec. 5038. Farm Credit System Insurance Corporation.
Sec. 5039. Risk-based capital levels.
Sec. 5040. Loans to purchasers of highly fractioned lands.
                    Subtitle A--Farm Ownership Loans

     SEC. 5001. CONSERVATION LOAN GUARANTEE PROGRAM.

       Section 304 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1924) is amended to read as follows:

     ``SEC. 304. CONSERVATION LOAN GUARANTEE PROGRAM.

       ``(a) In General.--The Secretary may provide a loan 
     guarantee, an interest subsidy, or both, to enable an 
     eligible borrower to obtain a qualified conservation loan.
       ``(b) Priority.--In providing loan guarantees under this 
     section, the Secretary shall give priority to--
       ``(1) qualified beginning farmers or ranchers;
       ``(2) socially disadvantaged farmers or ranchers (as 
     defined in section 355(e)(2));
       ``(3) owners or tenants who use the loans to covert to 
     sustainable or organic agricultural production systems; and
       ``(4) producers who use the loans to build conservation 
     structures or establish conservation practices to comply with 
     section 1212 of the Food Security Act of 1985.
       ``(c) Definitions.--In this section:
       ``(1) Eligible borrower.--The term `eligible borrower' 
     means a farmer, rancher, farm cooperative, private domestic 
     corporation, partnership, joint operation, trust, or limited 
     liability company, that is engaged primarily and directly in 
     agricultural production in the United States.
       ``(2) Qualified conservation loan.--The term `qualified 
     conservation loan' means a loan that meets the following 
     requirements:
       ``(A) Purpose.--The loan proceeds are required to be used 
     to cover the costs to the borrower of carrying out a 
     qualified conservation project.
       ``(B) Principal amount.--The principal amount of the loan 
     is not more than $1,000,000.
       ``(C) Repayment period.--The loan repayment period shall 
     not exceed 10 years.
       ``(D) Limited processing fee.--The total of all processing 
     fees charged with respect to the loan does not exceed such 
     amount as shall be prescribed by the Secretary.
       ``(3) Qualified conservation project.--The term `qualified 
     conservation project' means, with respect to an eligible 
     borrower, conservation measures that address provisions of a 
     conservation plan of the borrower.
       ``(4) Conservation plan.--The term `conservation plan' 
     means a plan, approved by the Secretary, that, for a farming 
     or ranching operation, identifies the conservation activities 
     that will be addressed with guaranteed loan funds provided 
     under this section, including--
       ``(A) the installation of conservation structures;
       ``(B) the establishment of forest cover for sustained yield 
     timber management, erosion control, or shelter belt purposes;
       ``(C) the installation of water conservation measures;
       ``(D) the installation of waste management systems;
       ``(E) the establishment or improvement of permanent 
     pasture;
       ``(F) compliance with section 1212 of the Food Security Act 
     of 1985;
       ``(G) other purposes consistent with the plan; and
       ``(H) any other emerging or existing conservation 
     practices, techniques, or technologies approved by the 
     Secretary.
       ``(d) Limitations Applicable to Loan Guarantees.--
       ``(1) Limitation on amount of guarantee.--The portion of a 
     loan that the Secretary may guarantee under this section 
     shall be not less than 80 percent and not more than 90 
     percent of the principal amount of the loan.
       ``(2) Limitation on total amount outstanding.--The 
     aggregate principal amount of outstanding loans guaranteed by 
     the Secretary under this section shall not exceed $1,000,000.
       ``(e) Limitation on Amount of Interest Subsidy.--The 
     interest subsidy which the Secretary may provide under this 
     section with respect to a loan shall result in a reduction of 
     the interest rate agreed upon by the borrower and the lender 
     (but to not less than zero) by--
       ``(1) 500 basis points, if the principal amount of the loan 
     is less than $100,000;
       ``(2) 400 basis points, if the principal amount of the loan 
     is not less than $100,000 and is less than $500,000; and
       ``(3) 300 basis points, in any other case.
       ``(f) Administrative Provisions.--
       ``(1) Authority to collect processing fee.--The Secretary 
     may assess a fee to cover the cost of processing an 
     application under this section equal to not more than 1 
     percent of the principal amount of the loan sought by the 
     applicant, as described in the application.
       ``(2) Approval of application.--The Secretary shall not 
     approve an application submitted pursuant to this section, 
     unless the Secretary has determined that--
       ``(A) the loan sought by the applicant, as described in the 
     application, would be a qualified conservation loan; and
       ``(B) the project for which the loan is sought is likely to 
     result in a net benefit to the environment.
       ``(3) Equitable distribution of loan guarantees and 
     interest subsidies.--The Secretary shall ensure that loan 
     guarantees and interest subsidies under this section are 
     equitably distributed among agricultural producers according 
     to the scale of the operations.
       ``(g) Relationship With Other Conservation Programs.--
     Neither the application for, nor the receipt of, a loan 
     guarantee or an interest subsidy under this section shall 
     affect the eligibility of the recipient for assistance under 
     title XII of the Food Security Act of 1985 or the Watershed 
     Protection and Flood Prevention Act.
       ``(h) Authorization of Appropriations.--For each of fiscal 
     years 2008 through 2012, there are authorized to be 
     appropriated to the Secretary such funds as are necessary to 
     carry out this section.''.

     SEC. 5002. LIMITATIONS ON AMOUNT OF OWNERSHIP LOANS.

       Section 305 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1925) is amended--
       (1) in subsection (a)(2), by striking ``$200,000'' and 
     inserting ``$300,000''; and
       (2) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively, and inserting after subsection (a) 
     the following:
       ``(b) Graduation Plan.--The Secretary shall establish a 
     plan, in coordination with activities under sections 359, 
     360, 361, and 362, to encourage each borrower with an 
     outstanding loan under this subtitle to graduate to private 
     commercial or other sources of credit.''.

     SEC. 5003. DOWN PAYMENT LOAN PROGRAM.

       Section 310E of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1935) is amended--
       (1) in subsection (a)(1), by striking ``and ranchers'' and 
     inserting ``or ranchers and socially disadvantaged farmers or 
     ranchers'';
       (2) in subsection (b)--
       (A) by striking paragraph (1) and inserting the following;
       ``(1) Principal.--Each loan made under this section shall 
     be in an amount that does not exceed 45 percent of the least 
     of--
       ``(A) the purchase price of the farm or ranch to be 
     acquired;
       ``(B) the appraised value of the farm or ranch to be 
     acquired; or
       ``(C) $500,000.
       ``(2) Interest rate.--The interest rate on any loan made by 
     the Secretary under this section shall be a rate equal to the 
     greater of--
       ``(A) the difference obtained by subtracting 4 percent from 
     the interest rate for farm ownership loans under this 
     subtitle; or
       ``(B) 1 percent.''; and
       (B) in paragraph (3), by striking ``15'' and inserting 
     ``20'';
       (3) in subsection (c)--
       (A) in paragraph (1), by striking ``10'' and inserting 
     ``5'';
       (B) by striking paragraph (2) and redesignating paragraph 
     (3) as paragraph (2); and
       (C) in paragraph (2)(B) (as so redesignated), by striking 
     ``15-year'' and inserting ``20-year''; and
       (4) in subsection (d)--
       (A) in paragraph (3)--
       (i) by inserting ``and socially disadvantaged farmers and 
     ranchers (as defined in section 355(e)(2))'' after 
     ``ranchers''; and
       (ii) by striking ``and'' at the end;
       (B) in paragraph (4), by striking ``ranchers.'' and 
     inserting ``ranchers and socially disadvantaged farmers and 
     ranchers (as defined in section 355(e)(2)); and''; and
       (C) by adding at the end the following:
       ``(5) establish annual performance goals to promote the use 
     of the down payment loan program and other joint financing 
     participation loans as the preferred choice for direct real 
     estate loans made by any lender to a qualified beginning 
     farmer or rancher or socially disadvantaged farmer or rancher 
     (as so defined).''.

     SEC. 5004. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES 
                   PROGRAM.

       Section 310F of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1936) is amended to read as follows:

     ``SEC. 310F. BEGINNING FARMER AND RANCHER AND SOCIALLY 
                   DISADVANTAGED FARMER AND RANCHER CONTRACT LAND 
                   SALES PROGRAM.

       ``(a) In General.--The Secretary shall, in accordance with 
     this section, guarantee a loan made by a private seller of a 
     farm or ranch to a qualified beginning farmer or rancher or 
     socially disadvantaged farmer or rancher (as defined in 
     section 355(e)(2)) on a contract land sales basis.

[[Page 21487]]

       ``(b) Eligibility.--In order to be eligible for a loan 
     guarantee under subsection (a)--
       ``(1) the qualified beginning farmer or rancher or socially 
     disadvantaged farmer or rancher shall--
       ``(A) on the date the contract land sale that is subject of 
     the loan is complete, own or operate the farm or ranch that 
     is the subject of the contract land sale;
       ``(B) have a credit history that--
       ``(i) includes a record of satisfactory debt repayment, as 
     determined by the Secretary; and
       ``(ii) is acceptable to the Secretary; and
       ``(C) demonstrate to the Secretary that the farmer or 
     rancher, as the case may be, is unable to obtain sufficient 
     credit without a guarantee to finance any actual need of the 
     farmer or rancher, as the case may be at a reasonable rate or 
     term;
       ``(2) the loan shall meet applicable underwriting criteria, 
     as determined by the Secretary; and
       ``(3) to carry out the loan--
       ``(A) a commercial lending institution shall agree to serve 
     as an escrow agent; or
       ``(B) the private seller, in cooperation with the farmer or 
     rancher, shall use an appropriate alternate arrangement, as 
     determined by the Secretary.
       ``(c) Limitations.--
       ``(1) Down payment.--The Secretary shall not provide a loan 
     guarantee under subsection (a) if the contribution of the 
     qualified beginning farmer or rancher or socially 
     disadvantaged farmer or rancher to the down payment for the 
     farm or ranch that is the subject of the contract land sale 
     would be less than 5 percent of the purchase price of the 
     farm or ranch.
       ``(2) Maximum purchase price.--The Secretary shall not 
     provide a loan guarantee under subsection (a) if the purchase 
     price or the appraisal value of the farm or ranch that is the 
     subject of the contract land sale is greater than $500,000.
       ``(d) Period of Guarantee.--The period during which a loan 
     guarantee under this section is in effect shall be the 10-
     year period beginning with the date the guarantee is 
     provided.
       ``(e) Guarantee Plan.--A private seller of a farm or ranch 
     who makes a loan that is guaranteed by the Secretary under 
     subsection (a) may select--
       ``(1) a prompt payment guarantee plan, which shall cover--
       ``(A) 3 amortized annual installments; or
       ``(B) an amount equal to 3 annual installments (including 
     an amount equal to the total cost of any tax and insurance 
     incurred during the period covered by the annual 
     installments); or
       ``(2) a standard guarantee plan, which shall cover an 
     amount equal to 90 percent of the outstanding principal of 
     the loan.''.
                      Subtitle B--Operating Loans

     SEC. 5011. LIMITATIONS ON AMOUNT OF OPERATING LOANS.

       Section 313(a)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1943(a)(1)) is amended by striking 
     ``$200,000'' and inserting ``$300,000''.

     SEC. 5012. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH 
                   BORROWERS ARE ELIGIBLE FOR GUARANTEED 
                   ASSISTANCE.

       Section 5102 of the Farm Security And Rural Investment Act 
     of 2002 (7 U.S.C. 1949 note; Public Law 107-171) is amended 
     by striking ``September 30, 2007'' and inserting ``January 1, 
     2008''.
                 Subtitle C--Administrative Provisions

     SEC. 5021. INVENTORY SALES PREFERENCES.

       Section 335(c) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1985(c)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B)--
       (i) in the subparagraph heading, by inserting ``; socially 
     disadvantaged farmer or rancher'' after ``or rancher'';
       (ii) in clause (i), by inserting ``or a socially 
     disadvantaged farmer or rancher'' after ``or rancher'';
       (iii) by redesignating clauses (ii) through (iv) as clauses 
     (iii) through (v), respectively;
       (iv) by inserting after clause (i) the following:
       ``(ii) Priority to be given to socially disadvantaged 
     farmers and ranchers.--In carrying out this subparagraph, the 
     Secretary shall give priority to socially disadvantaged 
     farmers and ranchers.'';
       (v) in clause (iii) (as so redesignated)--

       (I) by inserting ``or socially disadvantaged farmer or 
     rancher'' after ``or rancher''; and
       (II) by inserting ``, subject to clause (ii)'' before the 
     period;

       (vi) in clause (iv) (as so redesignated), by inserting ``or 
     a socially disadvantaged farmer or rancher'' after ``or 
     rancher''; and
       (vii) in clause (v) (as so redesignated), by inserting 
     ``and socially disadvantaged farmers and ranchers'' after 
     ``and ranchers''; and
       (B) in subparagraph (C), by inserting ``or a socially 
     disadvantaged farmer or rancher'' after ``or rancher'';
       (2) in paragraph (5)(B)--
       (A) in clause (i)--
       (i) in the clause heading, by inserting ``; socially 
     disadvantaged farmer or rancher'' after ``or rancher'';
       (ii) by inserting ``or a socially disadvantaged farmer or 
     rancher'' after ``a beginning farmer or rancher''; and
       (iii) by inserting ``or the socially disadvantaged farmer 
     or rancher'' after ``the beginning farmer or rancher'';
       (B) by redesignating clauses (ii) and (iii) as clauses 
     (iii) and (iv), respectively;
       (C) by inserting after clause (i) the following:
       ``(ii) Priority to be given to socially disadvantaged 
     farmers and ranchers.--In carrying out clause (i), the 
     Secretary shall give priority to socially disadvantaged 
     farmers and ranchers.''; and
       (D) in clause (iii) (as so redesignated)--
       (i) in the matter preceding subclause (I), by inserting 
     ``or a socially disadvantaged farmer or rancher'' after ``or 
     rancher''; and
       (ii) in subclause (II), by inserting ``or the socially 
     disadvantaged farmer or rancher'' after ``or rancher'';
       (3) in paragraph (6)--
       (A) in subparagraph (A), by inserting ``or a socially 
     disadvantaged farmer or rancher'' after ``or rancher''; and
       (B) in subparagraph (C)--
       (i) in clause (i)(I), by inserting ``and socially 
     disadvantaged farmers and ranchers'' after ``and ranchers''; 
     and
       (ii) in clause (ii), by inserting ``or socially 
     disadvantaged farmers or ranchers'' after ``or ranchers''; 
     and
       (4) by adding at the end the following:
       ``(7) In this subsection, the term `socially disadvantaged 
     farmer or rancher' has the meaning given in section 
     355(e)(2).''.

     SEC. 5022. LOAN FUND SET-ASIDES.

       Section 346(b)(2) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1994(b)(2)) is amended--
       (1) in subparagraph (A)--
       (A) in clause (i)--
       (i) in subclause (I), by striking ``70 percent'' and 
     inserting ``not less than 75 percent of the total amount made 
     available under paragraph (1)''; and
       (ii) in subclause (II)--

       (I) in the subclause heading, by inserting ``; 
     participation loans'' after ``payment loans'';
       (II) by striking ``60 percent'' and inserting ``not less 
     than \2/3\ of the amount reserved under subclause (I)''; and
       (III) by inserting ``and participation loans'' after 
     ``section 310E''; and

       (B) in clause (ii)(III), by striking ``2003 through 2007, 
     35 percent'' and inserting ``2008 through 2012, not less than 
     50 percent of the total amount made available under paragraph 
     (1)''; and
       (2) in subparagraph (B)(i), by striking ``25 percent'' and 
     inserting ``not less than 40 percent of the total amount made 
     available under paragraph (1)''.

     SEC. 5023. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES 
                   OF CREDIT.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981-2008r) is amended by inserting after 
     section 344 the following:

     ``SEC. 345. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES 
                   OF CREDIT.

       ``(a) In General.--In making or insuring a farm loan under 
     subtitle A or B, the Secretary shall establish a plan and 
     promulgate regulations (including performance criteria) that 
     promote the goal of transitioning borrowers to private 
     commercial credit and other sources of credit in the shortest 
     practicable period of time.
       ``(b) Coordination.--In carrying out this section, the 
     Secretary shall integrate and coordinate the transition 
     policy described in subsection (a) with--
       ``(1) the borrower training program established by section 
     359;
       ``(2) the loan assessment process established by section 
     360;
       ``(3) the supervised credit requirement established by 
     section 361;
       ``(4) the market placement program established by section 
     362; and
       ``(5) other appropriate programs and authorities, as 
     determined by the Secretary.''.

     SEC. 5024. EXTENSION OF THE RIGHT OF FIRST REFUSAL TO 
                   REACQUIRE HOMESTEAD PROPERTY TO IMMEDIATE 
                   FAMILY MEMBERS OF BORROWER-OWNER.

       Section 352(c)(4)(B) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2000(c)(4)(B)) is amended--
       (1) in the 1st sentence, by striking ``, the borrower-
     owner'' inserting ``of a borrower-owner who is a socially 
     disadvantaged farmer or rancher (as defined in section 
     355(e)(2)), the borrower-owner or a member of the immediate 
     family of the borrower-owner''; and
       (2) in the 2nd sentence, by inserting ``or immediate family 
     member, as the case may be,'' before ``from''.

     SEC. 5025. RURAL DEVELOPMENT AND FARM LOAN PROGRAM 
                   ACTIVITIES.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981-2008r) is amended by inserting after 
     section 364 the following:

     ``SEC. 365. RURAL DEVELOPMENT AND FARM LOAN PROGRAM 
                   ACTIVITIES.

       ``The Secretary may not complete a study of, or enter into 
     a contract with a private party to carry out, without 
     specific authorization in a subsequent Act of Congress, a 
     competitive sourcing activity of the Secretary, including 
     support personnel of the Department of Agriculture, relating 
     to rural development or farm loan programs.''.
                        Subtitle D--Farm Credit

     SEC. 5031. AGRIBUSINESS LOAN ELIGIBILITY.

       (a) Long Term Loans.--
       (1) Eligible borrowers.--Section 1.9 of the Farm Credit Act 
     of 1971 (12 U.S.C. 2017) is amended--
       (A) by striking ``or'' at the end of paragraph (2);

[[Page 21488]]

       (B) by striking the period at the end of paragraph (3) and 
     inserting ``; or''; and
       (C) by adding at the end the following:
       ``(4) persons primarily engaged in processing, preparing 
     for market, handling, purchasing, testing, grading, 
     distributing, or marketing farm or aquatic products; or 
     primarily engaged in furnishing farm or aquatic business 
     services, or farm or aquatic supplies, including inputs such 
     as feed or fertilizer, equipment, and other capital goods to 
     farmers, ranchers, or producers or harvesters of aquatic 
     products, but only to the extent that the activities are 
     related to renewable energy, except that a direct loan may 
     not be made available under this title to a person eligible 
     to borrow from a bank for cooperatives under section 3.7 or 
     3.8 (without regard to subsection (b)(1)(E) or (b)(1)(F) 
     thereof).''.
       (2) Loan purposes.--Section 1.11 of such Act (12 U.S.C. 
     2019) is amended--
       (A) in subsection (a)(1), by striking ``farmers, ranchers, 
     and producers or harvesters of aquatic products'' and 
     inserting ``persons eligible under section 1.9(1)'';
       (B) in subsection (a)(2), by inserting ``under paragraph 
     (1)'' after ``Farm Credit Bank'';
       (C) in subsection (b)(1), by striking ``rural residents'' 
     and inserting ``persons eligible under section 1.9(3)'';
       (D) in subsection (c)(1), by striking ``persons furnishing 
     farm-related services to farmers and ranchers directly 
     related to their on-farm operating needs'' and inserting 
     ``persons eligible under section 1.9(2)''; and
       (E) by adding at the end the following:
       ``(d) Agribusiness Loans.--Loans to persons primarily 
     engaged in processing, preparing for market, handling, 
     purchasing, testing, grading, distributing, or marketing farm 
     or aquatic products; or primarily engaged in furnishing farm 
     or aquatic business services, or farm or aquatic supplies, 
     including inputs such as feed or fertilizer, equipment, and 
     other capital goods to farmers, ranchers, or producers or 
     harvesters of aquatic products, who are eligible under 
     section 1.9(4) may be made for necessary capital structures 
     and equipment and initial working capital for the activities 
     only to the extent that the activities are related to 
     renewable energy.''.
       (b) Short- and Intermediate-Term Loans.--Section 2.4(a) of 
     such Act (12 U.S.C. 2075(a)) is amended--
       (1) by striking ``and'' at the end of paragraph (2);
       (2) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(4) persons primarily engaged in processing, preparing 
     for market, handling, purchasing, testing, grading, 
     distributing, or marketing farm or aquatic products; or 
     primarily engaged in furnishing farm or aquatic business 
     services, or farm or aquatic supplies, including inputs such 
     as feed or fertilizer, equipment, and other capital goods to 
     farmers, ranchers, or producers or harvesters of aquatic 
     products, but only to the extent that the activities are 
     related to renewable energy, except that a direct loan may 
     not be made available under this subsection to a person 
     eligible to borrow from a bank for cooperatives under section 
     3.7 or 3.8 (without regard to subsection (b)(1)(E) or 
     (b)(1)(F) thereof).''.
       (c) Banks for Cooperatives Loans.--Section 3.8(b)(1) of 
     such Act (12 U.S.C. 2129(b)(1)) is amended by adding at the 
     end the following:
       ``(E) Persons primarily engaged in processing, preparing 
     for market, handling, purchasing, testing, grading, 
     distributing, or marketing farm or aquatic products, or 
     primarily engaged in furnishing farm or aquatic business 
     services, or farm or aquatic supplies, including inputs such 
     as feed or fertilizer, equipment, and other capital goods to 
     farmers, ranchers, or producers or harvesters of aquatic 
     products, but only to the extent that the activities are 
     related to renewable energy, except that a direct loan may 
     not be made available under this subparagraph to a farmer, 
     rancher, or producer or harvester of aquatic products 
     eligible to borrow from a farm credit institution under 
     section 1.9(1) or 2.4(a)(1), or to a service provider 
     eligible to borrow from a farm credit institution under 
     section 1.9(2) or 2.4(a)(3) for all the provider's farm-
     related or aquatic-related business activities.''.

     SEC. 5032. LOAN-TO-ASSET VALUE REQUIREMENTS.

       Section 1.10(a)(1)(C) of the Farm Credit Act of 1971 (12 
     U.S.C. 2018(a)(1)(C)) is amended by striking ``as may be 
     authorized'' and inserting ``except as may be provided''.

     SEC. 5033. POPULATION LIMIT FOR SINGLE-FAMILY HOUSING LOANS.

       (a) Farm Credit Banks.--Section 1.11(b)(3) of the Farm 
     Credit Act of 1971 (12 U.S.C. 2019(b)(3)) is amended by 
     striking ``2,500'' and inserting ``6,000''.
       (b) Associations.--Section 2.4(b)(3) of such Act (12 U.S.C. 
     2075(b)(3)) is amended by striking ``2,500'' and inserting 
     ``6,000''.

     SEC. 5034. BANK FOR COOPERATIVES VOTING STOCK.

       (a) In General.--Section 3.3(c) of the Farm Credit Act of 
     1971 (12 U.S.C. 2124(c)) is amended by striking ``and (ii)'' 
     and inserting ``(ii) other categories of persons and entities 
     described in sections 3.7 and 3.8 eligible to borrow from the 
     bank, as determined by the bank's board of directors; and 
     (iii)''.
       (b) Conforming Amendments.--Section 4.3A(c)(1)(D) of such 
     Act (12 U.S.C. 2154a(c)(1)(D)) is amended by redesignating 
     clauses (ii) and (iii) as clauses (iii) and (iv), 
     respectively, and inserting after clause (i) the following:
       ``(ii) persons and entities eligible to borrow from the 
     banks for cooperatives, as described in section 
     3.3(c)(ii);''.

     SEC. 5035. MAJORITY FARMER CONTROL REQUIREMENT.

       Section 3.8(b)(1) of the Farm Credit Act of 1971 (12 U.S.C. 
     2129(b)(1)), as amended by section 531(c) of this Act, is 
     amended by adding at the end the following:
       ``(F) Any association of farmers, or of producers or 
     harvesters of aquatic products, or any federation of such 
     associations, which has producer and investor classes of 
     membership, but only if--
       ``(i) more than 50 percent of the voting control of the 
     association is held by farmers, or producers or harvesters of 
     aquatic products; and
       ``(ii) the producer class, if treated as a separate entity, 
     operates on a cooperative basis.''.

     SEC. 5036. BORROWER STOCK REQUIREMENT.

        Section 4.3A(c)(1)(E)(i) of the Farm Credit Act of 1971 
     (12 U.S.C. 2154a(c)(1)(E)(i)) is amended by striking ``not 
     less than $1,000 or 2 percent of the amount of the loan, 
     whichever is less'' and inserting ``determined by the 
     institution''.

     SEC. 5037. RURAL UTILITY LOANS.

       Section 8.0(9) of the Farm Credit Act of 1971 (12 U.S.C. 
     2279aa(9)) is amended--
       (1) by striking ``or'' at the end of subparagraph (A)(iii);
       (2) by striking the period at the end of subparagraph (B) 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(C) that is a loan or interest in a loan for electric or 
     telephone facilities by a cooperative lender to a borrower 
     who has received or is eligible to receive a loan under the 
     Rural Electrification Act (7 U.S.C. 901 et seq.), except 
     that--
       ``(i) subsections (c) and (d) of section 8.6, and sections 
     8.8 and 8.9 shall not apply to the loan or interest in the 
     loan or to an obligation backed by a pool of obligations 
     relating to the loan or interest in the loan; and
       ``(ii) the loan or interest in the loan shall be considered 
     to meet all standards for qualified loans for all purposes 
     under this Act, subject to reasonable underwriting, security 
     appraisal, and repayment standards established by the 
     Corporation.''.

     SEC. 5038. FARM CREDIT SYSTEM INSURANCE CORPORATION.

       (a) Authority To Pass Along Cost of Insurance Premiums.--
     Section 1.12(b) of the Farm Credit Act of 1971 (12 U.S.C. 
     2020(b)) is amended by striking the last sentence and 
     inserting ``The assessment on any such association or other 
     financing institution for any period shall be computed in an 
     equitable manner.''.
       (b) Premiums; Amount in Fund Not Exceeding Secure Base 
     Amount.--Section 5.55(a) of such Act (12 U.S.C. 2277a-4(a)) 
     is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``(2), the annual'' and inserting ``(3), the'';
       (B) by striking subparagraphs (A) through (D) and inserting 
     the following:
       ``(A) the average outstanding insured obligations issued by 
     the bank for the calendar year, after deducting therefrom the 
     percentages of the guaranteed portions of loans and 
     investments described in paragraph (2), multiplied by 0.0020;
       ``(B) the average principal outstanding for the calendar 
     year on loans made by the bank that are in nonaccrual status, 
     multiplied by 0.0010; and
       ``(C) the average amount outstanding for the calendar year 
     of other-than-temporarily impaired investments made by the 
     bank, multiplied by 0.0010.'';
       (2) in paragraph (2), by striking ``annual'';
       (3) in paragraph (3), in the matter preceding subparagraph 
     (A), by striking ``As used'' and all that follows through 
     ``that'' and inserting ``As used in this section, the term 
     `government-guaranteed' when applied to loans or investments, 
     means loans, credits, or investments, or portions of loans, 
     credits, or investments, that''; and
       (4) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively, and inserting after paragraph (1) 
     the following:
       ``(2) Deductions from average outstanding insured 
     obligations.--The average outstanding insured obligations 
     issued by the bank for the calendar year referred to in 
     subsection (a)(1)(A) of this section shall be reduced by 
     deducting therefrom the sum of--
       ``(A) 90 percent of the sum of--
       ``(i) the average principal outstanding for such calendar 
     year on the guaranteed portions of Federal government-
     guaranteed loans made by the bank that are in accrual status; 
     and
       ``(ii) the average amount outstanding for the calendar year 
     of the guaranteed portions of Federal government-guaranteed 
     investments made by the bank that are not permanently 
     impaired, as determined by the Corporation; and
       ``(B) 80 percent of the sum of--
       ``(i) the average principal outstanding for the calendar 
     year on the guaranteed portions of State government-
     guaranteed loans made by the bank that are in accrual status; 
     and
       ``(ii) the average amount outstanding for the calendar year 
     of the guaranteed portions of State government-guaranteed 
     investments made by the bank that are not permanently 
     impaired, as determined by the Corporation.''.
       (c) Premiums; Amount in Fund Exceeding Secure Base 
     Amount.--Section 5.55(b) of such Act (12 U.S.C. 2277a-4(b)) 
     is amended by striking ``annual''.
       (d) Secure Base Amount.--Section 5.55(c) of such Act (12 
     U.S.C. 2277a-4(c)) is amended by striking the parenthetical 
     phrase and inserting ``(adjusted downward to exclude an 
     amount

[[Page 21489]]

     equal to the sum of (1) 90 percent of (A) the guaranteed 
     portions of principal outstanding on Federal government-
     guaranteed loans in accrual status made by the banks, and (B) 
     the guaranteed portions of the amount of Federal government-
     guaranteed investments made by the banks that are not 
     permanently impaired; and (2) 80 percent of (A) the 
     guaranteed portions of principal outstanding on State 
     government-guaranteed loans in accrual status made by the 
     banks, and (B) the guaranteed portions of the amount of State 
     government-guaranteed investments made by the banks that are 
     not permanently impaired, as determined by the 
     Corporation)''.
       (e) Determination of Loan and Investment Amounts.--Section 
     5.55(d) of such Act (12 U.S.C. 2277a-4(d)) is amended--
       (1) in the subsection heading, by striking ``Principal 
     Outstanding'' and inserting ``Loan and Investment Amounts'';
       (2) in the matter preceding paragraph (1), by striking 
     ``For'' and all that follows through ``--'' and inserting 
     ``For the purpose of subsections (a) and (c) of this section, 
     the principal outstanding on all loans made by an insured 
     System bank or the amount outstanding on all investments made 
     by an insured System bank shall be determined based on all 
     loans or investments made--''; and
       (3) in each of paragraphs (1) and (2), by inserting ``or 
     investments'' before ``because''.
       (f) Allocation to System Institutions of Excess Reserves.--
     Section 5.55(e) of such Act (12 U.S.C. 2277a-4(e)) is 
     amended--
       (1) in paragraph (3), by striking ``the average secure base 
     amount for the calendar year (as calculated on an average 
     daily balance basis)'' and inserting ``the secure base 
     amount'';
       (2) in paragraph (4), by striking subparagraph (B) and 
     inserting the following:
       ``(B) there shall be credited to the Allocated Insurance 
     Reserves Account of each insured System bank an amount that 
     bears the same ratio to the total amount (less any amount 
     credited under subparagraph (A) of this paragraph) as the 
     average principal outstanding for the calendar year on 
     insured obligations issued by the bank (after deducting 
     therefrom the percentages of the guaranteed portions of loans 
     and investments described in subsection (a)(2) of this 
     section), bears to the average principal outstanding for the 
     calendar year on insured obligations issued by all insured 
     System banks (after deducting therefrom the percentages of 
     the guaranteed portions of loans and investments so 
     described).''; and
       (3) in paragraph (6)--
       (A) in subparagraph (A)--
       (i) in the matter preceding clause (i), by striking 
     ``beginning'' and all that follows through ``2005'';
       (ii) by striking clause (i) and inserting the following:
       ``(i) subject to subparagraph (D), pay to each insured 
     System bank, in a manner determined by the Corporation, an 
     amount equal to the balance in its Allocated Insurance 
     Reserves Account; and''; and
       (iii) in clause (ii)--

       (I) by striking ``(C), (E), and (F)'' and inserting ``(C) 
     and (E)''; and
       (II) by striking ``outstanding,'' and all that follows and 
     inserting ``at the time of the termination of the Financial 
     Assistance Corporation, of the balance in the Allocated 
     Insurance Reserves Account established under subparagraph 
     (1)(B).'';

       (B) in subparagraph (C)--
       (i) in clause (i), by striking ``(in addition to the 
     amounts described in subparagraph (F)(ii))''; and
       (ii) by striking clause (ii) and inserting the following:
       ``(ii) Termination of account.--On disbursement of 
     $56,000,000, the Corporation shall close the Account 
     established under paragraph (1)(B) and transfer any remaining 
     funds in the Account to the remaining Allocated Insurance 
     Reserves Accounts in accordance with paragraph (4)(B) for the 
     calendar year in which the transfer occurs.''; and
       (C) by striking subparagraph (F).
       (g) Certification of Premiums.--
       (1) Filing certified statement.--Section 5.56(a) of such 
     Act (12 U.S.C. 2277a-5(a)) is amended to read as follows:
       ``(a) Filing Certified Statement.--On a date to be 
     determined in the sole discretion of the Corporation's Board 
     of Directors, each insured System bank that became insured 
     before the beginning of the period for which premiums are 
     being assessed (in this section referred to as the `period') 
     shall file with the Corporation a certified statement 
     showing--
       ``(1) the average outstanding insured obligations for the 
     period issued by the bank;
       ``(2) the average principal outstanding for the period on 
     the guaranteed portion of Federal government-guaranteed loans 
     that are in accrual status and the average amount outstanding 
     for the period of Federal government-guaranteed investments 
     that are not permanently impaired (as defined in section 
     5.55(a)(4));
       ``(3) the average principal outstanding for the period on 
     State government-guaranteed loans that are in accrual status 
     and the average amount outstanding for the period of State 
     government-guaranteed investments that are not permanently 
     impaired (as defined in section 5.55(a)(4));
       ``(4) the average principal outstanding for the period on 
     loans that are in nonaccrual status and the average amount 
     outstanding for the period of other-than-temporarily impaired 
     investments; and
       ``(5) the amount of the premium due the Corporation from 
     the bank for the period.''.
       (2) Premium payments.--Section 5.56(c) of such Act (12 
     U.S.C. 2277a-5(c)) is amended to read as follows:
       ``(c) Premium Payments.--Each insured System bank shall pay 
     to the Corporation the premium payments required under 
     subsection (a), not more frequently than once in each 
     calendar quarter, in such manner and at such time or times as 
     the Board of Directors shall prescribe, except that the 
     amount of the premium shall be established not later than 60 
     days after filing the certified statement setting forth the 
     amount of the premium.''.
       (3) Conforming amendments.--Section 5.56 of such Act (12 
     U.S.C. 2277a-5) is amended by striking subsection (d) and 
     redesignating subsection (e) as subsection (d).
       (h) Rules and Regulations.--Section 5.58(10) of such Act 
     (12 U.S.C. 2277a-7(10)) is amended by inserting ``and section 
     1.12(b)'' after ``part''.

     SEC. 5039. RISK-BASED CAPITAL LEVELS.

       Section 8.32(a)(1) of the Farm Credit Act of 1971 (12 
     U.S.C. 2279bb-1(a)(1)) is amended by striking all through ``a 
     pool of'' and inserting the following:
       ``(1) Credit risk.--
       ``(A) With respect to securities representing an interest 
     in, or obligations backed by, a pool of qualified loans (as 
     defined in section 8.0(9)(C)), owned or guaranteed by the 
     Corporation, losses occur at a rate of default and severity 
     reasonably related to risks in electric and telephone 
     facility loans, respectively, as determined by the Director.
       ``(B) With respect to securities representing an interest 
     in, or obligations backed by, a pool of other''.

     SEC. 5040. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LANDS.

       Section 1 of Public Law 91-229 (25 U.S.C. 488) is amended 
     by adding at the end the following: ``The Secretary of 
     Agriculture may make and insure loans as provided in section 
     309 of the Consolidated Farm and Rural Development Act to 
     eligible purchasers of highly fractionated land pursuant to 
     section 204(c) of the Indian Land Consolidation Act. Section 
     4 of this Act shall not apply to trust or restricted tribal 
     or tribal corporation property mortgaged pursuant to the 
     preceding sentence.''.
                      TITLE VI--RURAL DEVELOPMENT
Sec. 6001. Definition of rural.
Sec. 6002. Water, waste disposal, and wastewater facility grants.
Sec. 6003. Rural business opportunity grants.
Sec. 6004. Rural water and wastewater circuit rider program.
Sec. 6005. Tribal college and university essential community 
              facilities.
Sec. 6006.  Emergency and imminent community water assistance grant 
              program.
Sec. 6007. Water systems for rural and native villages in Alaska.
Sec. 6008. Grants to nonprofit organizations to finance the 
              construction, refurbishing, and servicing of 
              individually-owned household water well systems in rural 
              areas for individuals with low or moderate incomes.
Sec. 6009. Rural cooperative development grants.
Sec. 6010. Criteria to be applied in  providing loans and loan 
              guarantees under the business and industry loan program.
Sec. 6011. Appropriate technology transfer for rural areas program.
Sec. 6012. Grants to improve technical infrastructure and improve 
              quality of rural health care facilities.
Sec. 6013. Rural entrepreneur and microenterprise assistance program.
Sec. 6014. Criteria to be applied in considering applications for rural 
              development projects.
Sec. 6015. National sheep industry improvement center.
Sec. 6016. National rural development partnership.
Sec. 6017. Historic barn preservation.
Sec. 6018. Grants for NOAA weather radio transmitters.
Sec. 6019. Delta regional authority.
Sec. 6020. Northern great plains regional authority.
Sec. 6021. Rural strategic investment program.
Sec. 6022. Expansion of 911 access.
Sec. 6023. Access to broadband telecommunications services in rural 
              areas.
Sec. 6024. Community connect grant program.
Sec. 6025. Agriculture innovation center demonstration program.
Sec. 6026. Rural firefighters and emergency medical service assistance 
              program.
Sec. 6027. Value-added agricultural market development program.
Sec. 6028. Assistance for rural public television stations.
Sec. 6029. Telemedicine and distance learning services in rural areas.
Sec. 6030. Guarantees for bonds and notes issued for electrification or 
              telephone purposes.
Sec. 6031. Comprehensive rural broadband strategy.
Sec. 6032. Study of railroad issues.

     SEC. 6001. DEFINITION OF RURAL.

       Not later than 60 days after the date of the enactment of 
     this Act, the Secretary of Agriculture shall prepare and 
     submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that--

[[Page 21490]]

       (1) assesses the varying definitions of ``rural'' used by 
     the Department of Agriculture;
       (2) describes the effects those varying definitions have on 
     the programs administered by the Department of Agriculture; 
     and
       (3) makes recommendations for ways to better target funds 
     provided through rural development programs.

     SEC. 6002. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY 
                   GRANTS.

       Section 306(a)(2)(B)(vii) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) is 
     amended by striking ``2002 through 2007'' and inserting 
     ``2008 through 2012''.

     SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS.

       Section 306(a)(11)(D) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 6004. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

       Section 306(a)(22)(C) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(22)(C)) is amended by 
     striking ``$15,000,000 for fiscal year 2003'' and inserting 
     ``$25,000,000 for fiscal year 2008''.

     SEC. 6005. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY 
                   FACILITIES.

       Section 306(a)(25) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(25)) is amended--
       (1) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Federal share.--The Secretary shall establish the 
     maximum percentage of the cost of the facility that may be 
     covered by a grant under this paragraph, except that the 
     Secretary may not require non-Federal financial support in an 
     amount that is greater than 5 percent of the total cost.''; 
     and
       (2) in subparagraph (C), by striking ``2003 through 2007'' 
     and inserting ``2008 through 2012''.

     SEC. 6006. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE 
                   GRANT PROGRAM.

       Section 306A(i)(2) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926a(i)(2)) is amended by striking 
     ``2003 through 2007'' and inserting ``2008 through 2012''.

     SEC. 6007. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN 
                   ALASKA.

       Section 306D(d)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926d(d)(1)) is amended by striking 
     ``2001 through 2007'' and inserting ``2008 through 2012''.

     SEC. 6008. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE 
                   CONSTRUCTION, REFURBISHING, AND SERVICING OF 
                   INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS 
                   IN RURAL AREAS FOR INDIVIDUALS WITH LOW OR 
                   MODERATE INCOMES.

       Section 306E(d) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926e(d)) is amended by striking 
     ``2003 through 2007'' and inserting ``2008 through 2012''.

     SEC. 6009. RURAL COOPERATIVE DEVELOPMENT GRANTS.

       (a) Eligibility.--Section 310B(e)(5) of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1932(e)(5)) is 
     amended--
       (1) in subparagraph (A), by striking ``a nationally 
     coordinated, regionally or State-wide operated project'' and 
     inserting ``activities to promote and assist the development 
     of cooperatively and mutually owned businesses'';
       (2) in subparagraph (B), by inserting ``to promote and 
     assist the development of cooperatively and mutually owned 
     businesses'' before the semicolon;
       (3) by striking subparagraphs (D) and (F) and redesignating 
     subparagraph (E) as subparagraph (D); and
       (4) adding at the end the following:
       ``(E) demonstrate a commitment to--
       ``(i) networking with and sharing the results of its 
     efforts with other cooperative development centers and other 
     organizations involved in rural economic development efforts; 
     and
       ``(ii) developing multi-organization and multi-State 
     approaches to addressing the cooperative and economic 
     development needs of rural areas.''.
       (b) Authority to Award Multi-Year Grants.--Section 
     310(B)(e)(6) of such Act (7 U.S.C. 1932(e)(6)) is amended to 
     read as follows:
       ``(6) Grants awarded to centers that have received no prior 
     funding under this subsection shall be made for a period of 1 
     year. The Secretary shall evaluate programs receiving 
     assistance under this subsection. The Secretary may award 
     grants for a period of more than 1 year, but not more than 3 
     years, to centers that have successfully met the criteria 
     under paragraph (5).''.
       (c) Authority to Extend Grant Period for 1 Year.--Section 
     310B(e) of such Act (7 U.S.C. 1932(e)) is amended by 
     redesignating paragraphs (7) through (9) as paragraphs (8) 
     through (10), respectively, and inserting after paragraph (6) 
     the following:
       ``(7) The Secretary may extend for only 1 additional 12-
     month period the period in which a grantee may use a grant 
     made under this subsection.''.
       (d) Cooperative Research Program.--Section 310B(e) of such 
     Act (7 U.S.C. 1932(e)), as amended by subsection (c) of this 
     section, is amended by redesignating paragraphs (9) and (10) 
     as paragraphs (10) and (11), respectively, and inserting 
     after paragraph (9) the following:
       ``(10) The Secretary shall enter into a cooperative 
     research agreement with 1 or more qualified academic 
     institutions in each fiscal year to conduct research on the 
     national economic effects of all types of cooperatives.''.
       (e) Addressing Needs of Minority Communities.--Section 
     310B(e) of such Act (7 U.S.C. 1932(e)), as amended by 
     subsections (c) and (d) of this section, is amended by 
     redesignating paragraph (11) as paragraph (12) and inserting 
     after paragraph (10) the following:
       ``(11)(A) If the total amount appropriated under paragraph 
     (12) of this subsection for a fiscal year exceeds $7,500,000, 
     the Secretary shall reserve an amount equal to 20 percent of 
     the amount so appropriated for grants for cooperative 
     development centers, individual cooperatives, or groups of 
     cooperatives, serving socially disadvantaged (within the 
     meaning of section 355(e)) communities, a majority of the 
     boards of directors or governing boards of which are 
     comprised of socially disadvantaged (withing such meaning) 
     individuals.
       ``(B) To the extent that the Secretary determines that 
     funds reserved under subparagraph (A) will not be used for 
     grants described in subparagraph (A) because of insufficient 
     applications for the grants, the Secretary shall use the 
     funds as otherwise authorized by this subsection.''.
       (f) Authorization of Appropriations.--Section 310B(e)(12) 
     of such Act (7 U.S.C. 1932(e)(12)), as so redesignated by 
     subsections (c) through (e) of this section, is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 6010. CRITERIA TO BE APPLIED IN  PROVIDING LOANS AND 
                   LOAN GUARANTEES UNDER THE BUSINESS AND INDUSTRY 
                   LOAN PROGRAM.

       Section 310B(g) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(g)) is amended by adding at 
     the end the following:
       ``(9)(A) In providing loans and loan guarantees under this 
     section, the Secretary shall consider an application more 
     favorably when compared to other applications to the extent 
     that the project described in the application supports 
     community development and farm and ranch income by marketing, 
     distributing, storing, aggregating, or processing a locally 
     or regionally produced agricultural product.
       ``(B) In subparagraph (A), the term `locally or regionally 
     produced agricultural product' means an agricultural 
     product--
       ``(I) which is produced and distributed in the locality or 
     region where the finished product is marketed;
       ``(ii) which has been shipped a total distance of 400 or 
     fewer miles, as determined by the Secretary; and
       ``(iii) about which the distributor has conveyed to the 
     end-use consumers information regarding the origin of the 
     product or production practices, or other valuable 
     information.''.

     SEC. 6011. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS 
                   PROGRAM.

       Section 310B of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1932) is amended by adding at the end the 
     following:
       ``(i) Appropriate Technology Transfer for Rural Areas 
     Program.--
       ``(1) Definition of national nonprofit agricultural 
     assistance institution.--In this subsection, the term 
     `national nonprofit agricultural assistance institution' 
     means an organization that--
       ``(A) is described in section 501(c)(3) of the Internal 
     Revenue Code of 1986 and exempt from taxation under 501(a) of 
     that Code;
       ``(B) has staff and offices in multiple regions;
       ``(C) operates national sustainable agriculture technical 
     assistance programs; and
       ``(D) provides the technical assistance through toll-free 
     hotlines, a website, publications, and work shops.
       ``(2) Establishment.--The Secretary shall establish a 
     national appropriate technology transfer for rural areas 
     program to assist agricultural producers that are seeking 
     information to help the agricultural producers--
       ``(A) reduce input costs;
       ``(B) conserve energy resources;
       ``(C) diversify operations through new energy crops and 
     energy generation facilities; and
       ``(D) expand markets for the agricultural commodities 
     produced by the producers through use of sustainable farming 
     practices.
       ``(3) Implementation.--
       ``(A) In general.--The Secretary shall carry out the 
     program under this subsection by making a grant to, or 
     offering to enter into a cooperative agreement with, a 
     national nonprofit agricultural assistance organization.
       ``(B) Cost share.--A grant made, or cooperative agreement 
     entered into, under subparagraph (A) shall provide 100 
     percent of the cost of providing information pursuant to 
     paragraph (2).
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this subsection $5,000,000 for each fiscal year.''.

     SEC. 6012. GRANTS TO IMPROVE TECHNICAL INFRASTRUCTURE AND 
                   IMPROVE QUALITY OF RURAL HEALTH CARE 
                   FACILITIES.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981-2008r), as amended by section 5025 of this 
     Act, is amended by inserting after section 365 the following:

     ``SEC. 366. GRANTS TO IMPROVE TECHNICAL INFRASTRUCTURE AND 
                   IMPROVE QUALITY OF RURAL HEALTH CARE 
                   FACILITIES.

       ``(a) In General.--The Secretary shall establish a program 
     to award grants to rural health facilities for the purpose of 
     assisting the facilities in--
       ``(1) purchasing health information technology to improve 
     quality in health care and patient safety; or

[[Page 21491]]

       ``(2) improving health care quality and patient safety, 
     including the development of--
       ``(A) quality improvement support structures to assist 
     rural health systems and professionals--
       ``(i) achieve greater integration of personal and 
     population health services; and
       ``(ii) address safety, effectiveness, patient- or 
     community-centeredness, timeliness, efficiency, and equity; 
     and
       ``(B) innovative approaches to the financing and delivery 
     of health services to achieve rural health quality goals.
       ``(b) Definitions.--In this section:
       ``(1) Health information technology.--The term `health 
     information technology' includes total expenditures incurred 
     for--
       ``(A) purchasing, leasing, and installing computer software 
     and hardware, including handheld computer technologies, and 
     related services;
       ``(B) making improvements to computer software and 
     hardware;
       ``(C) purchasing or leasing communications capabilities 
     necessary for clinical data access, storage, and exchange;
       ``(D) services associated with acquiring, implementing, 
     operating, or optimizing the use of computer software and 
     hardware and clinical health care informatics systems;
       ``(E) providing education and training to eligible entity 
     staff on information systems and technology designed to 
     improve patient safety and quality of care; and
       ``(F) purchasing, leasing, subscribing, or servicing 
     support to establish interoperability that--
       ``(i) integrates patient-specific clinical data with well-
     established national treatment guidelines;
       ``(ii) provides ongoing, continuous quality improvement 
     functions that allow providers to assess improvement rates 
     over time and against averages for similar providers; and
       ``(iii) integrates with larger health networks.
       ``(2) Rural area.--The term `rural area' means any area of 
     the United States that is not--
       ``(A) included within the boundaries of any city, town, 
     borough, or village, whether incorporated or unincorporated, 
     with a population of more than 20,000 inhabitants; or
       ``(B) the urbanized area contiguous and adjacent to such a 
     city or town.
       ``(3) Rural health facility.--The term `rural health 
     facility' means any of the following:
       ``(A) Sole community hospital.--A hospital (as defined in 
     section 1886(a)(2) of the Social Security Act (42 U.S.C. 
     1395ww(a)(2))).
       ``(B) Critical access hospital.--A critical access hospital 
     (as defined in section 1861(mm)(1) of the Social Security Act 
     (42 U.S.C. 1395x(mm)(1))).
       ``(C) Federally qualified health center in rural areas.--A 
     Federally qualified health center (as defined in section 
     1861(aa)(4) of the Social Security Act (42 U.S.C. 
     1395x(aa)(4)) that is located in a rural area.
       ``(D) Rural physician or rural physician group practice.--A 
     physician or physician group practice that is located in a 
     rural area.
       ``(E) Rural health clinic.--A rural health clinic (as 
     defined in section 1861(aa)(2) of the Social Security Act (42 
     U.S.C. 1395x(aa)(2))).
       ``(F) Medicare dependent hospital.--A medicare-dependent, 
     small rural hospital (as defined in section 1886(d)(5)(G)(iv) 
     of the Social Security Act (42 U.S.C. 1395ww(d)(5)(G)(iv))).
       ``(c) Amount of Grant.--The Secretary shall determine the 
     amount of a grant awarded under this section.
       ``(d) Furnishing the Secretary With Information.--An 
     eligible entity receiving a grant under this section shall 
     furnish the Secretary with such information as the Secretary 
     may require to--
       ``(1) evaluate the project for which the grant is made; and
       ``(2) ensure that assistance provided under the grant is 
     expended for the purposes for which the grant is made.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this section not more than $30,000,000 for each of the fiscal 
     years 2008 through 2012.''.

     SEC. 6013. RURAL ENTREPRENEUR AND MICROENTERPRISE ASSISTANCE 
                   PROGRAM.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981-2008r), as amended by sections 5025 and 
     6012 of this Act, is amended by inserting after section 366 
     the following:

     ``SEC. 367. RURAL ENTREPRENEUR AND MICROENTERPRISE ASSISTANCE 
                   PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Economically disadvantaged microentrepreneur.--The 
     term `economically disadvantaged microentrepreneur' means an 
     owner, majority owner, or developer of a microenterprise that 
     has the ability to compete in the private sector but has been 
     impaired because of diminished capital and credit 
     opportunities, as compared to other microentrepreneurs in the 
     industry.
       ``(2) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(3) Intermediary.--The term `intermediary' means a 
     nonprofit entity that provides assistance--
       ``(A) to a microenterprise development organization; or
       ``(B) for a microenterprise development program.
       ``(4) Low-income individual.--The term `low-income 
     individual' means an individual with an income (adjusted for 
     family size) of not more than 80 percent of the national 
     median income.
       ``(5) Microcredit.--The term `microcredit' means a business 
     loan or loan guarantee of not more than $50,000 that is 
     provided to a rural entrepreneur.
       ``(6) Microenterprise.--The term `microenterprise' means--
       ``(A) a sole proprietorship; or
       ``(B) a business entity with not more than 10 full-time-
     equivalent employees.
       ``(7) Microenterprise development organization.--
       ``(A) In general.--The term `microenterprise development 
     organization' means a nonprofit entity that--
       ``(i) provides training and technical assistance to rural 
     entrepreneurs; and
       ``(ii) facilitates access to capital or another service 
     described in subsection (b) for rural entrepreneurs.
       ``(B) Inclusions.--The term `microenterprise development 
     organization' includes an organization described in 
     subparagraph (A) with a demonstrated record of delivering 
     services to economically disadvantaged microentrepreneurs, or 
     an effective plan to develop a program to deliver 
     microenterprise services to rural entrepreneurs effectively, 
     as determined by the Secretary.
       ``(8) Microenterprise development program.--The term 
     `microenterprise development program' means a program 
     administered by a qualified organization serving a rural 
     area.
       ``(9) Microentrepreneur.--The term `microentrepreneur 
     means' the owner, operator, or developer of a 
     microenterprise.
       ``(10) Program.--The term `program' means the rural 
     entrepreneur and microenterprise program established under 
     subsection (b)(1).
       ``(11) Qualified organization.--The term `qualified 
     organization' means--
       ``(A) a microenterprise development organization or 
     microenterprise development program that has a demonstrated 
     record of delivering microenterprise services to rural 
     entrepreneurs, or an effective plan to develop a program to 
     deliver microenterprise services to rural entrepreneurs 
     effectively, as determined by the Secretary;
       ``(B) an intermediary that has a demonstrated record of 
     delivering assistance to microenterprise development 
     organizations or microenterprise development programs;
       ``(C) an Indian tribe, the tribal government of which 
     certifies to the Secretary that there is no microenterprise 
     development organization or microenterprise development 
     program under the jurisdiction of the Indian tribe;
       ``(D) a group of 2 or more organizations or Indian tribes 
     described in any of subparagraphs (A) through (C) that agree 
     to act jointly as a qualified organization under this 
     section; or
       ``(E) for purposes of subsection (b), a public college or 
     university that has a demonstrated record of delivering 
     assistance to microenterprise development organizations or 
     microenterprise development programs.
       ``(12) Rural area.--The term `rural area' means any area of 
     the United States that is not--
       ``(A) included within the boundaries of any city, town, 
     borough, or village, whether incorporated or unincorporated, 
     with a population of more than 20,000 inhabitants; or
       ``(B) the urbanized area contiguous and adjacent to such a 
     city or town.
       ``(13) Rural capacity-building service.--The term `rural 
     capacity-building service' means a service provided to an 
     organization that--
       ``(A) is, or is in the process of becoming, a 
     microenterprise development organization or microenterprise 
     development program; and
       ``(B) serves rural areas for the purpose of enhancing the 
     ability of the organization to provide training, technical 
     assistance, and other related services to rural 
     entrepreneurs.
       ``(14) Rural entrepreneur.--The term `rural entrepreneur' 
     means a microentrepreneur, or prospective microentrepreneur--
       ``(A) the principal place of business of which is in a 
     rural area; and
       ``(B) that is unable to obtain sufficient training, 
     technical assistance, or microcredit elsewhere, as determined 
     by the Secretary.
       ``(15) Tribal government.--The term `tribal government' 
     means the governing body of an Indian tribe.
       ``(b) Rural Entrepreneurship and Microenterprise Program.--
       ``(1) Establishment.--The Secretary shall establish a rural 
     entrepreneurship and microenterprise program.
       ``(2) Purpose.--The purpose of the program shall be to 
     provide low-income individuals and moderate-income 
     individuals with--
       ``(A) the skills necessary to establish new small 
     businesses in rural areas; and
       ``(B) continuing technical and financial assistance as 
     individuals and business starting or operating small 
     businesses.
       ``(3) Grants.--
       ``(A) In general.--The Secretary may make a grant under the 
     program to a qualified organization--
       ``(i) to provide training, operational support, or a rural 
     capacity-building service to a qualified organization to 
     assist the qualified organization in developing 
     microenterprise training, technical assistance, market 
     development assistance, and other related services, primarily 
     for business with 10 or fewer full-time-equivalent employees;
       ``(ii) to assist in researching and developing the best 
     practices in delivering training, technical assistance, and 
     microcredit to rural entrepreneurs; and

[[Page 21492]]

       ``(iii) to carry out such other projects and activities as 
     the Secretary determines to be consistent with the purposes 
     of this section.
       ``(B) Diversity.--In making grants under this paragraph, 
     the Secretary shall ensure, to the maximum extent 
     practicable, that grant recipients include qualified 
     organizations--
       ``(i) of varying sizes; and
       ``(ii) that serve racially and ethnically diverse 
     populations.
       ``(C) Matching requirement.--
       ``(i) In general.--As a condition of any grant made to a 
     qualified organization under this paragraph, the Secretary 
     shall require the qualified organization to match not less 
     than 25 percent of the total amount of the grant.
       ``(ii) Sources.--In addition to cash from non-Federal 
     sources, a matching share provided by the qualified 
     organization may include indirect costs or in-kind 
     contributions funded under non-Federal programs.
       ``(4) Rural microloan and technical assistance program.--
       ``(A) Establishment.--In carrying out the program, the 
     Secretary may carry out a rural microloan program.
       ``(B) Purpose.--The purpose of the rural microloan program 
     shall be to provide technical and financial assistance 
     through qualified organizations to sole proprietorships and 
     small businesses located in rural areas with a particular 
     focus on businesses with 10 or fewer full-time equivalent 
     employees.
       ``(C) Authority of secretary.--In carrying out the rural 
     microloan program, the Secretary may--
       ``(i) make loans to qualified organizations for the purpose 
     of making short-term, fixed interest rate microloans to 
     startup, newly established, and growing rural microbusiness 
     concerns; and
       ``(ii) in conjunction with the loans, provide grants in 
     accordance with subparagraph (E) to the organizations for the 
     purpose of providing intensive marketing, management, and 
     technical assistance to small business concerns that are 
     borrowers under this paragraph.
       ``(D) Loan duration; interest rates; conditions.--
       ``(i) Loan duration.--A loan made by the Secretary under 
     this paragraph shall be for a term of 20 years.
       ``(ii) Applicable interest rates.--A loan made by the 
     Secretary under this paragraph to a qualified organization 
     shall bear an annual interest rate of at least 1 percent.
       ``(iii) Deferral of interest and principal.--The Secretary 
     may permit the deferral of payments, for principal and 
     interest, on a loan made under this paragraph for a period of 
     not more than 2 years, beginning on the date the loan is 
     made.
       ``(E) Grant amounts.--
       ``(i) In general.--Except as otherwise provided in this 
     section, each qualified organization that receives a loan 
     under this paragraph shall be eligible to receive a grant to 
     provide marketing, management, and technical assistance to 
     small business concerns that are borrowers or potential 
     borrowers under this subsection.
       ``(ii) Maximum amount for microenterprise development 
     organizations.--Each microenterprise development organization 
     that receives a loan under this paragraph shall receive an 
     annual grant in an amount equal to not more than 25 percent 
     of the total outstanding balance of loans made to the 
     microenterprise development organization under this 
     paragraph, as of the date the grant is made.
       ``(iii) Matching requirement.--

       ``(I) In general.--As a condition of any grant made to a 
     qualified organization under this subparagraph, the Secretary 
     shall require the qualified organization to match not less 
     than 15 percent of the total amount of the grant.
       ``(II) Sources.--In addition to cash from non-Federal 
     sources, a matching share provided by the qualified 
     organization may include indirect costs or in-kind 
     contributions funded under non-Federal programs.

       ``(c) Administrative Expenses.--Not more than 10 percent of 
     assistance received by a qualified organization for a fiscal 
     year under this section may be used to pay administrative 
     expenses.
       ``(d) Furnishing the Secretary With Information.--A 
     qualified organization that receives a grant under subsection 
     (b)(3) or loan under subsection (b)(4) shall furnish the 
     Secretary by December 1 such information as the Secretary may 
     require to ensure that assistance provided under the grant or 
     loan is expended for the purposes for which the grant or loan 
     is made.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this section not more than $20,000,000 for each of the fiscal 
     years 2008 through 2012.''.

     SEC. 6014. CRITERIA TO BE APPLIED IN CONSIDERING APPLICATIONS 
                   FOR RURAL DEVELOPMENT PROJECTS.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981-2008r), as amended by sections 5025, 6012, 
     and 6013 of this Act, is amended by inserting after section 
     367 the following:

     ``SEC. 368. CRITERIA TO BE APPLIED IN CONSIDERING 
                   APPLICATIONS FOR RURAL DEVELOPMENT PROJECTS.

       ``(a) In General.--The Secretary shall review the income 
     demographics, population, seasonal increases, and other 
     factors as determined by the Secretary, of eligible 
     communities for each program authorized or modified by, or 
     funded pursuant to, an amendment made by title VI of the 
     Farm, Nutrition, and Bioenergy Act of 2007 or section 306, 
     306A, 306C, 306D, 306E, 310(c), 310(e), 310B(b), 310B(c), 
     310B(e), or 379B, or subtitle F, G, H, or I of this Act, and 
     which proposes to serve a rural area (as defined by the 
     applicable law).
       ``(b) Regulations.--The Secretary shall issue regulations 
     to establish the applicable limitations that a rural area 
     cannot exceed in order to remain eligible for a program 
     referred to in subsection (a).''.

     SEC. 6015. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

       (a) Funding.--Section 375(e)(6) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 2008j(e)(6)) is amended 
     by striking paragraphs (B) and (C) and inserting the 
     following:
       ``(B) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this section $10,000,000 for each of the fiscal years 2008 
     through 2012.''.
       (b) Elimination of Requirement to Privatize Revolving 
     Fund.-- Section 375 of such Act (7 U.S.C. 2008j) is amended 
     by striking subsection (j).

     SEC. 6016. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

       Section 378(g)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2008m(g)(1)) is amended by striking 
     ``2003 through 2007'' and inserting ``2008 through 2012''.

     SEC. 6017. HISTORIC BARN PRESERVATION.

       (a) Grant Priority.--Section 379A(c) of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 2008o(c)) is amended 
     by redesignating paragraphs (3) and (4) as paragraphs (4) and 
     (5) and inserting after paragraph (2) the following:
       ``(3) Priority.--In making grants under this subsection, 
     the Secretary shall give the highest priority to funding 
     projects described in paragraph (2)(C).''.
       (b) Limitations on Authorization of Appropriations.--
     Section 379A(c)(5) of such Act (7 U.S.C. 2008o(c)(5)), as so 
     redesignated by subsection (a) of this section, is amended by 
     striking ``2002 through 2007'' and inserting ``2008 through 
     2012''.

     SEC. 6018. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

        Section 379B(d) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2008p(d)) is amended by striking 
     ``2002 through 2007'' and inserting ``2008 through 2012''.

     SEC. 6019. DELTA REGIONAL AUTHORITY.

       (a) Authorization of Appropriations.--Section 382M(a) of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     2009aa-12(a)) is amended by striking ``2001 through 2007'' 
     and inserting ``2008 through 2012''.
       (b) Termination of Authority.--Section 382N of such Act (7 
     U.S.C. 2009aa-13) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 6020. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

       (a) Federal Share of Administrative Expenses.--Section 
     383B(g)(1) of the Consolidated Farm and Rural Development Act 
     (7 U.S.C. 2009bb-1(g)(1)) is amended--
       (1) in subparagraph (A), by striking ``2002'' and inserting 
     ``2007'';
       (2) in subparagraph (B), by striking ``2003'' and inserting 
     ``2008''; and
       (3) in subparagraph (C), by striking ``2004'' and inserting 
     ``2009''.
       (b) Technical Amendment.--Section 383B(d)(6)(A) of such Act 
     (7 U.S.C. 2009bb-1(d)(6)(A)) is amended by inserting ``and 
     resource conservation'' after ``development''.
       (c) Elimination of Prioritization Ranking of Activities to 
     Be Funded.--Section 383C(b)(2) of such Act (7 U.S.C. 2009bb-
     2(b)(2)) is amended by striking ``activities in the following 
     order of priority'' and inserting ``following activities''.
       (d) Elimination of Isolated Area of Distress Designation.--
       (1) In general.--Section 383F(a) of such Act (7 U.S.C. 
     2009bb-5(a)) is amended--
       (A) by adding ``and'' at the end of paragraph (1);
       (B) by striking ``; and'' at the end of paragraph (2) and 
     inserting a period; and
       (C) by striking paragraph (3).
       (2) Conforming amendments.--Section 383F(b) of such Act (7 
     U.S.C. 2009bb-5(b)) is amended--
       (A) in paragraph (1), by striking ``and isolated areas of 
     distress''; and
       (B) in paragraph (2), by striking ``or isolated areas of 
     distress''.
       (e) Reduction of Minimum Funds Allocation for Distressed 
     Counties.--Section 383F(b)(1) of such Act (7 U.S.C. 2009bb-
     5(b)(1)) is amended by striking ``75'' and inserting ``50''.
       (f) Elimination of Prohibition on Providing Funds to 
     Nondistressed Counties.--Section 383F of such Act (7 U.S.C. 
     2009bb-5) is amended by striking subsection (c) and 
     redesignating subsection (d) as subsection (c).
       (g) Inclusion of Renewable Energy Among Objects of Minimum 
     Funds Allocation.--Section 383F(c) of such Act (7 U.S.C. 
     2009bb-5(c)), as so redesignated by subsection (a) of this 
     section, is amended--
       (1) in the subsection heading, by inserting ``Renewable 
     Energy,'' after ``Telecommunication,''; and
       (2) by inserting ``renewable energy,'' after 
     ``telecommunication''.
       (h) Authorization of Appropriations.--Section 383M(a) of 
     such Act (7 U.S.C. 2009bb-12(a)) is amended by striking 
     ``2002 through 2007'' and inserting ``2008 through 2012''.
       (i) Termination of Authority.--Section 383N of such Act (7 
     U.S.C. 2009bb-13) is amended by striking ``2007'' and 
     inserting ``2012''.

[[Page 21493]]



     SEC. 6021. RURAL STRATEGIC INVESTMENT PROGRAM.

       (a) Limitations on Authorization of Appropriations.--
     Section 385E of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2009dd-4) is amended to read as follows:

     ``SEC. 385E. LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to the Secretary 
     to carry out this subtitle not more than $25,000,000 for each 
     of the fiscal years 2008 through 2012.''.
       (b) Preservation and Promotion of Rural Heritage.--
       (1) Definition.--Section 385B of such Act (7 U.S.C. 2009dd-
     1) is amended by adding at the end the following:
       ``(12) Rural heritage.--The term `rural heritage' means 
     historic sites, structures, and districts which may include 
     rural downtown areas and main streets, neighborhoods, 
     farmsteads, scenic and historic trails, and heritage areas 
     and historic landscapes.''.
       (2) Rural strategic investment planning grants.--Section 
     385F(b) of such Act (7 U.S.C. 2009dd-5(b)) is amended--
       (A) by striking ``and'' at the end of paragraph (6); and
       (B) by redesignating paragraph (7) as paragraph (8) and 
     inserting after paragraph (6) the following:
       ``(7) preservation and promotion of rural heritage; and''.
       (3) Innovation grants.--Section 385G(d) of such Act (7 
     U.S.C. 2009dd-6(d)) is amended--
       (A) by striking ``and'' at the end of paragraph (6); and
       (B) by redesignating paragraph (7) as paragraph (8) and 
     inserting after paragraph (6) the following:
       ``(7) demonstrate a plan to protect and promote rural 
     heritage; and''.

     SEC. 6022. EXPANSION OF 911 ACCESS.

       Section 315(b) of the Rural Electrification Act of 1936 (7 
     U.S.C. 904e(b)) is amended by striking ``2002 through 2007'' 
     and inserting ``2008 through 2012''.

     SEC. 6023. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN 
                   RURAL AREAS.

       (a) Definitions.--Section 601(b) of the Rural 
     Electrification Act of 1936 (7 U.S.C. 950bb(b)) is amended by 
     striking paragraph (2) and inserting the following:
       ``(2) Eligible rural community.--The term `eligible rural 
     community' means any area of the United States that is not--
       ``(A) included within the boundaries of any city, town, 
     borough, or village, whether incorporated or unincorporated, 
     with a population of more than 20,000 inhabitants; or
       ``(B) the urbanized area contiguous and adjacent to such a 
     city or town.''.
       (b) Prioritization of Applications.--
       (1) Definition.--Section 601(b) of such Act (7 U.S.C. 
     950bb(b)), as amended by subsection (a) of this section, is 
     amended by adding at the end the following:
       ``(3) Incumbent service provider.--The term `incumbent 
     service provider' means, with respect to an application 
     submitted pursuant to this section, an entity that is 
     providing broadband service to at least 5 percent of the 
     households in the service area proposed in the 
     application.''.
       (2) Priority based on number of incumbent service 
     providers.--Section 601(c) of such Act (7 U.S.C. 950bb(c)) is 
     amended by adding at the end the following:
       ``(3) Applications prioritized based on number of incumbent 
     service providers.--
       ``(A) In general.--In making or guaranteeing loans under 
     paragraph (1), the Secretary shall give priority, in the 
     following order, to applications from eligible rural 
     communities that have--
       ``(i) no incumbent service provider;
       ``(ii) 1 incumbent services provider; or
       ``(iii) 2 incumbent service providers who, together, serve 
     not more than 25 percent of the households in the service 
     area proposed in the application.
       ``(B) Prohibitions.--In carrying out this section, the 
     Secretary may not--
       ``(i) make a loan to an eligible community in which there 
     are 3 or more incumbent service providers, unless--

       ``(I) the loan is to an incumbent service provider of the 
     community;
       ``(II) the other providers in that community are notified 
     of the application before approval by the Secretary, and have 
     sufficient time to comment on the application; and
       ``(III) the application includes substantially increasing--

         ``(aa) the quality of broadband service in the community; 
     and
         ``(bb) the provision of broadband service to unserved 
     households inside and outside the community; or
       ``(ii) make a loan for new construction to any community in 
     which more than 75 percent of the households may obtain 
     affordable broadband service, on request, from at least 1 
     incumbent service provider.''.
       (c) Paperwork Reduction.--Section 601(c) of such Act (7 
     U.S.C. 950bb(c)), as amended by subsection (b)(2) of this 
     section, is amended by adding at the end the following:
       ``(4) Paperwork reduction.--The Secretary shall take steps 
     to reduce the cost and paperwork associated with applying for 
     a loan or loan guarantee under this section by first-time 
     applicants, particularly those who are smaller and start-up 
     Internet providers, including by providing for a new 
     application which shall maintain the ability of the Secretary 
     to make an analysis of the risk associated with the loan 
     involved.''.
       (d) Increase in Maximum Number of Subscriber Lines That May 
     Be Served by an Eligible Entity.--Section 601(d)(3) of such 
     Act (7 U.S.C. 950bb(d)(3)) is amended by striking ``2'' and 
     inserting ``10''.
       (e) Limitation on Funds to Entities With More Than 2 
     Percent of Subscriber Lines.--Section 601(d) of such Act (7 
     U.S.C. 950bb(d)) is amended by adding at the end the 
     following:
       ``(4) Limitation on funds to entities with more than 2 
     percent of subscriber lines.--Not more than 25 percent of the 
     loans made under this section in a single fiscal year may be 
     approved for entities that serve more than 2 percent of the 
     telephone subscriber lines in the United States.''.
       (f) Loan Term Not to Exceed 35 Years.--Section 601(g)(2) of 
     such Act (7 U.S.C. 950bb(g)(2)) is amended by striking ``not 
     to exceed the useful life of the assets constructed, 
     improved, or acquired with the proceeds of the loan or 
     extension of credit.'' and inserting ``of such length, not 
     exceeding 35 years, as the borrower may request, so long as 
     the Secretary determines that the loan is adequately secured. 
     In determining the term of a loan or loan guarantee, the 
     Secretary shall consider whether the recipient is or would be 
     serving an area that is not receiving broadband services.''
       (g) Adequacy of Security.--Section 601 of such Act (7 
     U.S.C. 950bb) is amended by redesignating subsections (h) 
     through (k) as subsections (i) through (l), respectively, and 
     inserting after subsection (g) the following:
       ``(h) Adequacy of Security.--The Secretary shall ensure 
     that the type, amount, and method of security used to secure 
     any loan or loan guarantee provided under this section is 
     commensurate to the risk involved with the loan or loan 
     guarantee, particularly when the loan or loan guarantee is 
     issued to a financially healthy, strong, and stable entity. 
     In determining the amount and method of security, the 
     Secretary shall consider reducing the security in areas that 
     do not have broadband service.''.
       (h) General Report on Program.--Section 601 of such Act (7 
     U.S.C. 950bb), as amended by subsection (g) of this section, 
     is amended by redesignating subsections (k) and (l) as 
     subsections (l) and (m), respectively, and inserting after 
     subsection (j) the following:
       ``(k) General Program Report.--Not later than December 1 of 
     each year, the Secretary shall prepare and submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report that details for the preceding fiscal year--
       ``(1) the loans made under this section;
       ``(2) the communities served under this section;
       ``(3) the speed of the broadband service offered by 
     applicants for, and recipients of, loans or loan guarantees 
     under this section;
       ``(4) the type of services offered by the applicants and 
     recipients;
       ``(5) the length of time to approve applications submitted 
     pursuant to this section; and
       ``(6) the outreach efforts undertaken by the Department of 
     Agriculture to encourage persons in areas without broadband 
     service to submit applications pursuant to this section.''.
       (i) National Center for Rural Telecommunications 
     Assessment.--Section 601 of such Act (7 U.S.C. 950bb), as 
     amended by subsections (g) and (h) of this section, is 
     amended by redesignating subsections (l) and (m) as 
     subsections (m) and (n), respectively, and inserting after 
     subsection (k) the following:
       ``(l) National Center for Rural Telecommunications 
     Assessment.--
       ``(1) Establishment of center.--The Secretary shall 
     designate a National Center for Rural Telecommunications 
     Assessment (in this subsection referred to as the `Center').
       ``(2) Criteria.--The Secretary shall use the following 
     criteria in making the designation:
       ``(A) The Center must be an entity with a focus on rural 
     policy research and a minimum of 5 years experience in rural 
     telecommunications research and assessment.
       ``(B) The Center must be capable of assessing broadband 
     services in rural areas.
       ``(C) The Center must have significant experience with 
     other rural economic development centers and organizations in 
     the assessment of rural policies and formulation of policy 
     solutions at the local, State, and Federal level.
       ``(3) Board.--The management of the Center shall be vested 
     in a board of directors that is capable of oversight of the 
     duties set forth in paragraph (4).
       ``(4) Duties.--The Center shall--
       ``(A) assess the effectiveness of programs provided under 
     subsection (b) in increasing broadband penetration and 
     purchase in rural areas, especially in those rural 
     communities identified by the Secretary as having no service 
     before award of a broadband loan or loan guarantee under 
     subsection (b);
       ``(B) develop assessments of broadband availability in 
     rural areas, working with existing rural development centers 
     selected by the Center;
       ``(C) identify policies and initiatives at the local, State 
     and Federal level that have increased broadband penetration 
     and purchase in rural areas;
       ``(D) conduct a national study of rural households and 
     businesses focusing on the adoption of, barriers to, and 
     utilization of broadband services; and
       ``(E) provide reports to the public on the activities 
     undertaken under this section.
       ``(5) Reporting requirements.--The Center shall report by 
     December 1 of each year to the

[[Page 21494]]

     Secretary its activities, the results of its research, and 
     any such information the Secretary may request regarding the 
     prior fiscal year. In reporting to the Secretary the Center 
     shall include the following:
       ``(A) Assessments of the programs provided under subsection 
     (b).
       ``(B) Annual assessments on broadband availability in rural 
     areas under consideration by the Center.
       ``(C) Annual assessments on the effects of the policy 
     initiatives identified in paragraph (2)(C).
       ``(D) Results from the national study of rural households 
     and businesses conducted under paragraph (4)(D).
       ``(6) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this subsection not more than $1,000,000 for each of the 
     fiscal years 2008 through 2012.''.
       (j) Funding.--Section 601(m) of such Act (7 U.S.C. 
     950bb(l)) as so redesignated by subsections (g) through (i) 
     of this section, is amended--
       (1) by striking paragraph (1);
       (2) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (1), (2), and (3), respectively;
       (3) in paragraph (1)(B) (as so redesignated), by striking 
     ``2007'' and inserting ``2012'';
       (4) in paragraph (2) (as so redesignated), by striking 
     ``2003 through 2007'' and inserting ``2008 through 2012''; 
     and
       (5) in paragraph (3) (as so redesignated), by adding at the 
     end the following:
       ``(D) Eligible tribal communities.--Of the amounts made 
     available under subparagraph (A) for a fiscal year, 10 
     percent shall be reserved for entities serving eligible 
     tribal communities.
       ``(E) Unobligated amounts.--Any amounts in the reserve 
     established for eligible tribal communities for a fiscal year 
     under subparagraph (D) that are not obligated by June 30 of 
     the fiscal year shall be available to the Secretary to make 
     loans and loan guarantees under this section to eligible 
     entities in any State, as determined by the Secretary.''.
       (k) Extension of Authority To Issue Loans.--Section 601(n) 
     of such Act (7 U.S.C. 950bb(m)), as so redesignated by 
     subsections (f) through (h) of this section, is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 6024. COMMUNITY CONNECT GRANT PROGRAM.

       Title VI of the Rural Electrification Act of 1936 (7 U.S.C. 
     950bb) is amended by adding at the end the following:

     ``SEC. 602. COMMUNITY CONNECT GRANT PROGRAM.

       ``(a) Establishment.--The Secretary shall establish a grant 
     program to be known as the `Community Connect Grant Program' 
     to provide financial assistance to eligible applicants to 
     provide broadband transmission service that fosters economic 
     growth and delivers enhanced educational, health care, and 
     public safety services.
       ``(b) Eligibility.--To be eligible for a grant under this 
     section, the applicant must--
       ``(1) be legally organized as an incorporated tribal 
     organization, an Indian tribe, or tribal organization, as 
     defined in subsections (b) and (c) of section 4 of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b(b) and (c)), a State or local unit of government, or 
     other legal entity, including a cooperative, private 
     corporation, or limited liability company organized on a for-
     profit or not-for-profit basis;
       ``(2) have the legal capacity and authority to own and 
     operate broadband facilities as proposed in its application, 
     to enter into contracts, and to otherwise comply with 
     applicable Federal statutes and regulations; or
       ``(3) be in an eligible rural community (as defined in 
     section 601(b)(2) of the Rural Electrification Act of 1936).
       ``(c) Ineligible Grant Purposes.--A grant made under this 
     section may not be used--
       ``(1) to finance the duplication of any broadband 
     transmission service provided by another entity; or
       ``(2) with respect to facilities, to provide local exchange 
     telecommunications service to any person or entity receiving 
     the service.
       ``(d) Priority.--In making grants under this section, the 
     Secretary shall give priority to grants that will enhance 
     community access to telemedicine and distance learning 
     resources.
       ``(e) Matching Contributions.--
       ``(1) In general.--To be eligible to receive a grant under 
     subsection (a), a grant applicant shall provide a matching 
     contribution of at least 15 percent of the grant amount 
     requested, in funds and in-kind contributions in a proportion 
     to be determined by the Secretary.
       ``(2) Limitations.--
       ``(A) Costs incurred by or on behalf of an applicant, for 
     facilities, installed equipment, or other services rendered 
     before submission of a completed application shall not be 
     considered to be for an eligible grant purpose or a matching 
     contribution.
       ``(B) Any financial assistance from Federal sources shall 
     not be considered to be a matching contribution for purposes 
     of this section, unless there is a Federal statutory 
     exception specifically authorizing the Federal financial 
     assistance to be so considered.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this section not more than $25,000,000 for each of the fiscal 
     years 2008 through 2012.''.

     SEC. 6025. AGRICULTURE INNOVATION CENTER DEMONSTRATION 
                   PROGRAM.

       Section 6402(i) of the Farm Security and Rural Investment 
     Act of 2002 (7 U.S.C. 1621 note; Public Law 107-171) is 
     amended to read as follows:
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this section $6,000,000 for each of the fiscal years 2008 
     through 2012.''.

     SEC. 6026. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE 
                   ASSISTANCE PROGRAM.

       Section 6405 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 1621 note) is amended to read as follows:

     ``SEC. 6405. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE 
                   ASSISTANCE PROGRAM.

       ``(a) Grants.--The Secretary shall award grants to eligible 
     entities to--
       ``(1) enable the entities to provide for improved emergency 
     medical services in rural areas; and
       ``(2) pay the cost of training firefighters and emergency 
     medical personnel in firefighting, emergency medical 
     practices, and responding to hazardous materials and 
     bioagents in rural areas.
       ``(b) Eligibility.--To be eligible to receive a grant under 
     this section, an entity shall--
       ``(1) be--
       ``(A) a State emergency medical services office;
       ``(B) a State emergency medical services association;
       ``(C) a State office of rural health;
       ``(D) a local government entity;
       ``(E) an Indian tribe (as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b));
       ``(F) a State or local ambulance provider; or
       ``(G) any other entity determined appropriate by the 
     Secretary; and
       ``(2) prepare and submit to the Secretary an application at 
     such time, in such manner, and containing such information as 
     the Secretary may require, that includes--
       ``(A) a description of the activities to be carried out 
     under the grant; and
       ``(B) an assurance that the applicant will comply with the 
     matching requirement of subsection (e).
       ``(c) Use of Funds.--An entity shall use amounts received 
     under a grant made under subsection (a) only in rural areas 
     to--
       ``(1) hire or recruit emergency medical service personnel;
       ``(2) recruit or retain volunteer emergency medical service 
     personnel;
       ``(3) train emergency medical service personnel in 
     emergency response, injury prevention, safety awareness, and 
     other topics relevant to the delivery of emergency medical 
     services;
       ``(4) fund training to meet State or Federal certification 
     requirements;
       ``(5) provide training for firefighters and emergency 
     medical personnel for improvements to the training facility, 
     equipment, curricula, and personnel;
       ``(6) develop new ways to educate emergency health care 
     providers through the use of technology-enhanced educational 
     methods (such as distance learning);
       ``(7) acquire emergency medical services vehicles, 
     including ambulances;
       ``(8) acquire emergency medical services equipment, 
     including cardiac defibrillators;
       ``(9) acquire personal protective equipment for emergency 
     medical services personnel as required by the Occupational 
     Safety and Health Administration; and
       ``(10) educate the public concerning cardiopulmonary 
     resuscitation (CPR), first aid, injury prevention, safety 
     awareness, illness prevention, and other related emergency 
     preparedness topics.
       ``(d) Preference.--In awarding grants under this section, 
     the Secretary shall give preference to--
       ``(1) applications that reflect a collaborative effort by 2 
     or more of the entities described in subparagraphs (A) 
     through (G) of subsection (b)(1); and
       ``(2) applications submitted by entities that intend to use 
     amounts provided under the grant to fund activities described 
     in any of paragraphs (1) through (5) of subsection (c).
       ``(e) Matching Requirement.--The Secretary may not make a 
     grant under this section to an entity unless the entity 
     agrees that the entity will make available (directly or 
     through contributions from other public or private entities) 
     non-Federal contributions toward the activities to be carried 
     out under the grant in an amount equal to 5 percent of the 
     amount received under the grant.
       ``(f) Emergency Medical Services.--In this section, the 
     term `emergency medical services'--
       ``(1) means resources used by a qualified public or private 
     nonprofit entity, or by any other entity recognized as 
     qualified by the State involved, to deliver medical care 
     outside of a medical facility under emergency conditions that 
     occur as a result of--
       ``(A) the condition of the patient; or
       ``(B) a natural disaster or similar situation; and
       ``(2) includes (compensated or volunteer) services 
     delivered by an emergency medical services provider or other 
     provider recognized by the State involved that is licensed or 
     certified by the State as an emergency medical technician or 
     the equivalent (as determined by the State), a registered 
     nurse, a physician assistant, or a physician that provides 
     services similar to services provided by such an emergency 
     medical services provider.
       ``(g) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to the Secretary to carry out this section not more than 
     $30,000,000 for each of fiscal years 2008 through 2012.
       ``(2) Administrative costs.--Not more than 10 percent of 
     the amount appropriated under

[[Page 21495]]

     paragraph (1) for a fiscal year may be used for 
     administrative expenses.''.

     SEC. 6027. VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT 
                   PROGRAM.

       (a) Definition of Mid-Tier Value Chain.--Section 231(a) of 
     the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 
     note; Public Law 106-224) is amended by adding at the end the 
     following:
       ``(3) Mid-tier value chain.--The term `mid-tier value 
     chain' means local and regional supply networks that link 
     independent producers with businesses and cooperatives that 
     market value-added agricultural products in a manner that--
       ``(A) targets and strengthens the profitability and 
     competitiveness of small and medium-sized family farms, as 
     defined in regulations pursuant to Section 302 of the 
     Consolidated Farm and Rural Development Act; and
       ``(B) obtains agreement from the eligible agricultural 
     producer group, farmer or rancher cooperative, or majority-
     controlled producer-based business venture engaged in the 
     value chain in the method for price determination.''.
       (b) Funding; Reservation of Funds; Grant Award Criteria.--
     Section 231(b) of such Act (7 U.S.C. 1621 note; Public Law 
     106-224) is amended--
       (1) by striking paragraph (4) and inserting the following:
       ``(4) Funding.--Not later than 30 days after the date of 
     the enactment of this paragraph, on October 1, 2008, and on 
     each October 1 thereafter through October 1, 2012, of the 
     funds of the Commodity Credit Corporation, the Secretary 
     shall make available to carry out this subsection 
     $30,000,000, to remain available until expended.
       ``(5) Reservation of funds for projects to benefit 
     beginning farmers and ranchers or socially disadvantaged 
     farmers and ranchers and mid-tier value chains.--
       ``(A) In general.--The Secretary shall reserve 10 percent 
     of the amounts made available under paragraph (4) to fund 
     projects that benefit beginning farmers and ranchers (as 
     defined in section 343(a)(11) of the Consolidated Farm and 
     Rural Development Act) or socially disadvantaged farmers and 
     ranchers (as defined in section 355(e) of such Act).
       ``(B) Mid-tier value chains.--The Secretary shall reserve 
     10 percent of the amounts made available under paragraph (4) 
     to fund applications of eligible entities described in 
     paragraph (1) that propose to develop mid-tier value chains.
       ``(C) Unobligated amounts.--Any amounts in the reserves 
     established under subparagraphs (A) and (B) that are not 
     obligated by June 30 of the fiscal year shall be available to 
     the Secretary to make grants under this section to eligible 
     entities in any State, as determined by the Secretary.''; and
       (2) by adding at the end the following:
       ``(6) Criteria to be applied in awarding grants.--In 
     awarding grants under this section, the Secretary shall 
     consider an application more favorably when compared to other 
     applications to the extent that the project contributes to 
     increasing opportunities for operators of small and medium-
     size farms and ranches structured as family farms (as defined 
     in regulations prescribed under section 302 of the 
     Consolidated Farm and Rural Development Act).''.

     SEC. 6028. ASSISTANCE FOR RURAL PUBLIC TELEVISION STATIONS.

       Section 2333 of the Food, Agriculture, Conservation and 
     Trade Act of 1990 (7 U.S.C. Sec. 950aaa-2) is amended by 
     adding at the end the following:
       ``(j) Digital Service Transition Assistance for Public 
     Television Stations.--The Secretary may provide grants under 
     this section to noncommercial education television broadcast 
     stations that serve rural areas for the purposes of 
     developing digital facilities, equipment, and infrastructure 
     to enhance digital services to rural areas.''.

     SEC. 6029. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN 
                   RURAL AREAS.

       (a) Authorization of Appropriations.--Section 2335A of the 
     Food, Agriculture, Conservation and Trade Act of 1990 (7 
     U.S.C. 950aaa-5) is amended by striking ``2007'' and 
     inserting ``2012''.
       (b) Conforming Amendment.--Section 1(b) of Public Law 102-
     551 (7 U.S.C. 950aaa note) is amended by striking ``2007'' 
     and inserting ``2012''.

     SEC. 6030. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
                   ELECTRIFICATION OR TELEPHONE PURPOSES.

       Section 313A(f) of the Rural Electrification Act of 1936 (7 
     U.S.C. 940c-1(f)) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 6031. COMPREHENSIVE RURAL BROADBAND STRATEGY.

       Not later than 180 days after the date of the enactment of 
     this Act, the Secretary of Agriculture shall submit to the 
     President, the Committee on Agriculture of the House of 
     Representatives, and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report describing a 
     comprehensive rural broadband strategy that includes--
       (1) recommendations--
       (A) to promote interagency coordination of Federal agencies 
     in regards to policies, procedures, and targeted resources, 
     and to improve and streamline the polices, programs, and 
     services;
       (B) to coordinate among Federal agencies regarding existing 
     rural broadband or rural initiatives that could be of value 
     to rural broadband development;
       (C) to address both short- and long-term solutions and 
     needs assessments for a rapid build-out of rural broadband 
     solutions and applications for Federal, State, regional, and 
     local government policy makers;
       (D) to identify how specific Federal agency programs and 
     resources can best respond to rural broadband requirements 
     and overcome obstacles that currently impede rural broadband 
     deployment; and
       (E) to promote successful model deployments and appropriate 
     technologies being used in rural areas so that State, 
     regional, and local governments can benefit from the 
     cataloging and successes of other State, regional, and local 
     governments; and
       (2) a description of goals and timeframes to achieve the 
     strategic plans and visions identified in the report.

     SEC. 6032. STUDY OF RAILROAD ISSUES.

       (a) In General.--The Secretary of Agriculture, in 
     coordination with the Secretary of Transportation, shall 
     conduct a study of railroad issues regarding the movement of 
     agricultural products, domestically produced renewable fuels 
     and domestically produced resources for the production of 
     electricity for rural America, and economic development in 
     rural America. The study shall include an examination of the 
     following:
       (1) The importance of freight railroads to--
       (A) the delivery of equipment, seed, fertilizer, and other 
     such products important to the development of agricultural 
     commodities and products;
       (B) the movement of agricultural commodities and products 
     to market;
       (C) the delivery of ethanol and other renewable fuels;
       (D) the delivery of domestically produced resources for use 
     in the generation of electricity for rural America;
       (E) the location of grain elevators, ethanol plants, and 
     other facilities;
       (F) the development of manufacturing facilities in rural 
     America; and
       (G) the vitality and economic development of rural 
     communities.
       (2) The sufficiency in rural America of railroad capacity, 
     the sufficiency of competition in the railroad system, the 
     reliability of rail service, and the reasonableness of 
     railroad prices.
       (3) The accessibility to rail customers in rural America of 
     Federal processes for the resolution of rail customer 
     grievances with the railroads.
       (b) Report to the Congress.--Within 9 months after the date 
     of the enactment of this Act, the Secretary of Agriculture 
     shall submit to the Congress a report that contains the 
     results of the study required by subsection (a), and the 
     recommendations of the Secretary for new Federal policies to 
     address any problems identified by the study.
                          TITLE VII--RESEARCH

                     Subtitle A--General Provisions

Sec. 7101. Definitions.
Sec. 7102. Budget submission and funding.
Sec. 7103. Additional purposes of agricultural research and extension.
Sec. 7104. National agricultural research program office.
Sec. 7105. Establishment of competitive grant programs under the 
              National Institute for Food and Agriculture.
Sec. 7106. Merging of IFAFS and NRI.
Sec. 7107. Capacity building grants for ASCARR institutions.
Sec. 7108. Establishment of research laboratories for animal diseases.
Sec. 7109. Grazinglands research laboratory.
Sec. 7110. Researcher training.
Sec. 7111. Fort Reno Science Park research facility.
Sec. 7112. Assessing the nutritional composition of beef products.
Sec. 7113. Sense of Congress regarding funding for human nutrition 
              research.

  Subtitle B--National Agricultural Research, Extension, and Teaching 
                           Policy Act of 1977

Sec. 7201. Advisory board.
Sec. 7202. Advisory board termination.
Sec. 7203. Renewable energy committee.
Sec. 7204. Specialty crop committee report.
Sec. 7205. Inclusion of UDC in grants and fellowships for food and 
              agricultural sciences education.
Sec. 7206. Grants and fellowships for food and agricultural sciences 
              education.
Sec. 7207. Grants for research on production and marketing of alcohols 
              and industrial hydrocarbons from agricultural commodities 
              and forest products.
Sec. 7208. Policy research centers.
Sec. 7209. Human nutrition intervention and health promotion research 
              program.
Sec. 7210. Pilot research program to combine medical and agricultural 
              research.
Sec. 7211. Nutrition education program.
Sec. 7212. Continuing animal health and disease research programs.
Sec. 7213. Cooperation among eligible institutions.
Sec. 7214. Appropriations for research on national or regional 
              problems.
Sec. 7215. Authorization level of extension at 1890 land-grant 
              colleges.
Sec. 7216. Authorization level for agricultural research at 1890 land-
              grant colleges.
Sec. 7217. Grants to upgrade agriculture and food sciences facilities 
              at the District of Columbia Land Grant University.

[[Page 21496]]

Sec. 7218. Grants to upgrade agricultural and food sciences facilities 
              at 1890 land-grant colleges, including Tuskegee 
              University.
Sec. 7219. National research and training virtual centers.
Sec. 7220. Matching funds requirement for research and extension 
              activities of 1890 institutions.
Sec. 7221. Hispanic-serving institutions.
Sec. 7222. Hispanic-serving agricultural colleges and universities.
Sec. 7223. International agricultural research, extension, and 
              education.
Sec. 7224. Competitive grants for international agricultural science 
              and education programs.
Sec. 7225. Limitation on indirect costs for agricultural research, 
              education, and extension programs.
Sec. 7226. Research equipment grants.
Sec. 7227. University research.
Sec. 7228. Extension service.
Sec. 7229. Supplemental and alternative crops.
Sec. 7230. Aquaculture research facilities.
Sec. 7231. Rangeland research.
Sec. 7232. Special authorization for biosecurity planning and response.
Sec. 7233. Resident instruction and distance education grants program 
              for insular area institutions of higher education.

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

Sec. 7301. National genetics resources program.
Sec. 7302. National agricultural weather information system.
Sec. 7303. Partnerships.
Sec. 7304. Aflatoxin research and extension.
Sec. 7305. High-priority research and extension areas.
Sec. 7306. High-priority research and extension initiatives.
Sec. 7307. Nutrient management research and extension initiative.
Sec. 7308. Agricultural telecommunications program.
Sec. 7309. Assistive technology program for farmers with disabilities.
Sec. 7310. Organic research.
Sec. 7311. National rural information center clearinghouse.
Sec. 7312. New era rural technology program.

Subtitle D--Agricultural Research, Extension, and Education Reform Act 
                                of 1998

Sec. 7401. Partnerships for high-value agricultural product quality 
              research.
Sec. 7402. Precision agriculture.
Sec. 7403. Biobased products.
Sec. 7404. Thomas Jefferson initiative for crop diversification.
Sec. 7405. Integrated research, education, and extension competitive 
              grants program.
Sec. 7406. Fusarium graminearum grants.
Sec. 7407. Bovine Johne's disease control program.
Sec. 7408. Grants for youth organizations.
Sec. 7409. Agricultural biotechnology research and development for 
              developing countries.
Sec. 7410. Agricultural bioenergy and biobased products research 
              initiative.
Sec. 7411. Specialty crop research initiative.
Sec. 7412. Office of pest management policy.

                         Subtitle E--Other Laws

Sec. 7501. Critical agricultural materials act.
Sec. 7502. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7503. Agricultural experiment station Research Facilities Act.
Sec. 7504. National Agricultural Research, Extension, and Teaching 
              Policy Act Amendments of 1985.
Sec. 7505. Competitive, Special, and Facilities Research Grant Act 
              (national research initiative).
Sec. 7506. Agricultural Risk Protection Act of 2000 (carbon cycle 
              research).
Sec. 7507. Renewable Resources Extension Act of 1978.
Sec. 7508. National Aquaculture Act of 1980.
Sec. 7509. Construction of a Chinese Garden at the National Arboretum.
Sec. 7510. Public education regarding use of biotechnology in producing 
              food for human consumption.
Sec. 7511. Fresh cut produce safety grants.
Sec. 7512. UDC/EFNEP Eligibility.
Sec. 7513. Smith-Lever Act.
Sec. 7514. Hatch Act of 1987.

                   Subtitle F--Additional Provisions

Sec. 7601. Merit review of extension and educational grants.
Sec. 7602. Review of plan of work requirements.
Sec. 7603. Multistate and integration funding.
Sec. 7604. Expanded food and nutrition education program.
Sec. 7605. Grants to 1890 schools to expand extension capacity.
Sec. 7606. Borlaug international agricultural science and technology 
              fellowship program.
Sec. 7607. Support for research regarding diseases of wheat, triticale, 
              and barley caused by fusarium graminearum or by tilletia 
              indica.
Sec. 7608. Cost Recovery.
Sec. 7609. Organic Food and Agricultural Systems Funding.
                     Subtitle A--General Provisions

     SEC. 7101. DEFINITIONS.

       For purposes of this title:
       (1) Capacity program.--The term ``capacity program'' means 
     the capacity program in subparagraph (M) and each of the 
     following agricultural research, extension, education, and 
     related programs for which the Secretary has administrative 
     or other authority as of the day before the date of enactment 
     of this Act:
       (A) Each program providing funding to any of the 1994 
     institutions under sections 533, 534(a), and 535 of the 
     Equity in Educational Land-Grant Status Act of 1994 (Public 
     Law 103-382; 7 U.S.C. 301 note) (commonly known as financial 
     assistance, technical assistance, and endowments to tribal 
     colleges and the Navajo Community College).
       (B) The program established under section 536 of the Equity 
     in Educational Land-Grant Status Act of 1994 (Public Law 103-
     382; 7 U.S.C. 301 note) providing research grants for 1994 
     institutions.
       (C) Each program established under subsections (b), (c), 
     and (d) of section 3 of the Smith-Lever Act (7 U.S.C. 343).
       (D) Each program established under the Hatch Act of 1887 (7 
     U.S.C. 361a et seq.).
       (E) Each program established under section 1417(b)(4) of 
     the National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3152(b)(4)), including grant 
     programs under that section (commonly known as the 1890 
     Institution Teaching and Research Capacity Building Grants 
     Program).
       (F) The animal health and disease research program 
     established under subtitle E of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3191 et seq.).
       (G) The program established under section 1445 of the 
     National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3222) (commonly known as the 
     Evans-Allen Program).
       (H) The program providing grants to upgrade agricultural 
     and food sciences facilities at 1890 Institutions established 
     under section 1447 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b).
       (I) The program providing distance education grants for 
     insular areas established under section 1490 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3362).
       (J) The program providing resident instruction grants for 
     insular areas established under section 1491 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3363).
       (K) Each research and development and related program 
     established under Public Law 87-788 (commonly known as the 
     McIntire-Stennis Cooperative Forestry Act; 16 U.S.C. 582a et 
     seq.).
       (L) Each program established under the Renewable Resources 
     Extension Act of 1978 (16 U.S.C. 1671 et seq.).
       (M) The capacity building grant program for ASCARR 
     Institutions established under this Act.
       (N) Such other programs or parts of programs as determined 
     appropriate by the Secretary.
       (O) The program providing competitive extension grants to 
     eligible 1994 institutions under section 3(b)(3) of the 
     Smith-Lever Act (7 U.S.C. 343(b)(3)).
       (2) Competitive programs.--The term ``competitive 
     programs'' means the competitive program in subparagraph (N) 
     and each of the following agricultural research, extension, 
     education, and related programs for which the Secretary has 
     administrative or other authority as of the day before the 
     date of enactment of this Act:
       (A) Competitive grant programs authorized or otherwise 
     administered by the Department of Agriculture under the terms 
     of section 2(b) of the Competitive, Special and Facilities 
     Research Grant (7 U.S.C. 450i).
       (B) Institution Challenge Grants, administered under 
     1417(j) of the National Agricultural Research, Extension, and 
     Teaching Policy Act of 1977, as amended (7 U.S.C. 3152(j)).
       (C) Grants and related authorities authorized or otherwise 
     administered by the Secretary of Agriculture under section 
     1417(b)(5) of the National Agricultural Research, Extension, 
     and Teaching Policy Act of 1977, as amended (7 U.S.C. 
     3152(b)(5)) (commonly known as the Higher Education 
     Multicultural Scholars Program).
       (D) Programs authorized or otherwise administered under 
     section 1455 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) 
     (commonly known as educational grant programs for Hispanic-
     serving institutions).
       (E) Integrated research, education, or extension programs 
     authorized or otherwise administered under section 406 of the 
     Agricultural Research, Extension, and Education Reform Act of 
     1998 (7 U.S.C. 7626) except as provided under subsection 
     (a)(14).
       (F) Sustainable Agriculture Research and Education (7 
     U.S.C. 5811).
       (G) Organic Research and Extension Initiative (7 U.S.C. 
     5925b).
       (H) Higher Education Challenge Grants (7 U.S.C. 
     3152(b)(1)).
       (I) Food and Agriculture Sciences National Needs Graduate 
     and Postgraduate Fellowship Grants (7 U.S.C. 3152(b)(6)).
       (J) International Science and Education Competitive Grants 
     (7 U.S.C. 3292b).
       (K) Community Food Projects Competitive Grants (7 U.S.C. 
     2034).
       (L) Risk Management Education (7 U.S.C. 1524).
       (M) High Priority Research and Extension Areas (7 U.S.C. 
     5925).

[[Page 21497]]

       (N) Such other programs or parts of programs as determined 
     appropriate by the Secretary.
       (3) Capacity program critical base funding.--The term 
     ``capacity program critical base funding'' means the 
     aggregate amount of Federal funds made available for all or 
     individual capacity programs for fiscal year 2007, as 
     appropriate.
       (4) Competitive program critical base funding.--The term 
     ``competitive program critical base funding'' means the 
     aggregate amount of Federal funds made available for all or 
     individual competitive programs for fiscal year 2007, as 
     appropriate.
       (5) ASCARR institution.--
       (A) In general.--The term ``ASCARR Institution'' means a 
     public college or university offering a baccalaureate or 
     higher degree in the study of agriculture.
       (B) Exclusions.--The term ``ASCARR Institution'' does not 
     include Hispanic-serving agricultural colleges or any 
     institution designated under--
       (i) the Act of July 2, 1862 (commonly known as the ``First 
     Morrill Act''; 7 U.S.C. 301 et seq.);
       (ii) the Act of August 30, 1890 (commonly known as the 
     ``Second Morrill Act''; 7 U.S.C. 321 et seq.); or
       (iii) the Equity in Educational Land-Grant Status Act of 
     1994 (Public Law 103-382; 7 U.S.C. 301 note).
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (7) Directors.--The term ``Directors'' refers to those 
     directors appointed under section 7104.
       (8) Under secretary.--The term ``Under Secretary'' means 
     the Under Secretary of Agriculture for Research, Education, 
     and Economics.
       (9) Hispanic-serving agricultural college.--The term 
     ``Hispanic-serving agricultural college'' means a college or 
     university that--
       (A) qualifies as a ``Hispanic-serving institution'' as 
     defined in section 502(a)(5) of the Higher Education Act of 
     1965 (20 U.S.C. 1101a(a)(5)); and
       (B) offers a baccalaureate degree program in an 
     agricultural or food science-related discipline.

     SEC. 7102. BUDGET SUBMISSION AND FUNDING.

       (a) Budget Request.--The President shall submit to 
     Congress, together with the annual budget submission of the 
     President, a single budget line item reflecting the total 
     amount requested by the President for funding for capacity 
     programs, and a single budget line item reflecting the total 
     amount requested by the President for funding for competitive 
     programs for that fiscal year and for the previous 5 fiscal 
     years.
       (b) Capacity Program Request.--
       (1) Critical base funding.--Up to the amount of the 
     capacity program critical base funding level, any funds 
     requested for capacity programs in the budget submission 
     single line item shall be apportioned among the capacity 
     programs based on priorities established by the Under 
     Secretary in conjunction with the Directors.
       (2) Additional funding.--Of the funds requested for 
     capacity programs in excess of the capacity program critical 
     base funding level, budgetary emphasis should be placed on 
     enhancing funding for the 1890, 1994, ASCARR Institutions, 
     Hispanic-serving agricultural colleges, and small 1862 
     institutions.
       (c) Competitive Program Request.--
       (1) Critical base funding.--Up to the amount of the 
     competitive program critical base funding level, any funds 
     requested for competitive programs in the budget submission 
     single line item shall be apportioned among the competitive 
     programs based on priorities established by the Under 
     Secretary in conjunction with the Directors.
       (2) Additional funding.--Of the funds requested for 
     competitive programs in excess of the competitive program 
     critical base funding level, budgetary emphasis shall be 
     placed on enhancing funding for emerging problems and their 
     solutions.
       (d) Funding.--
       (1) Critical base funding.--Up to the total aggregate 
     amount of the capacity program critical base funding level 
     and the competitive program critical base funding level, 
     funds appropriated or otherwise made available shall be 
     apportioned among each of the capacity programs and the 
     competitive programs based on priorities established by the 
     Under Secretary in conjunction with the Directors.
       (2) Additional funding.--
       (A) Capacity funding.--Of the funds appropriated or 
     otherwise made available for capacity programs in excess of 
     the capacity program critical base funding level, funding 
     emphasis should be placed on enhancing funding for the 1890, 
     1994, ASCARR Institutions, Hispanic-serving agricultural 
     colleges, and small 1862 institutions.
       (B) Competitive funding.--Of the funds appropriated or 
     otherwise made available for competitive programs in excess 
     of the competitive program critical base funding level, 
     budgetary emphasis shall be placed on enhancing funding for 
     emerging problems and solutions.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as necessary to carry out this 
     section.
       (f) Competitive Programs.--For the purposes of this 
     section, the term ``competitive programs'' includes only 
     those programs for which annual appropriations are requested 
     in the President's budget.

     SEC. 7103. ADDITIONAL PURPOSES OF AGRICULTURAL RESEARCH AND 
                   EXTENSION.

       Section 1403 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3102) is 
     amended--
       (1) in paragraph (6), by striking ``and'' at the end;
       (2) in paragraph (7), by striking the period and inserting 
     a semicolon; and
       (3) by adding after paragraph (7) the following:
       ``(8) to integrate and organize the administration of the 
     agricultural research, extension, education, and related 
     programs administered by the Secretary of Agriculture to 
     respond to 21st century challenges and continue to meet the 
     needs of society from a local, tribal, State, national, and 
     international perspective;
       ``(9) to minimize duplication, and maximize coordination 
     and integration, among all of the programs at all levels 
     through a solution-based approach; and
       ``(10) to position the agricultural research, extension, 
     education, and related programs system to increase the 
     contribution of the system to society through the expansion 
     of the portfolio of the system.''.

     SEC. 7104. NATIONAL AGRICULTURAL RESEARCH PROGRAM OFFICE.

       (a) Establishment.--The Under Secretary shall organize 
     within the office of the Under Secretary 6 research Program 
     Offices to be known collectively as the National Agricultural 
     Research Program Office, which shall coordinate the programs 
     and activities of the research agencies within the mission 
     area in an integrated, multidisciplinary, interdisciplinary, 
     interagency, and interinstitutional manner, to the maximum 
     extent practicable. The Program Offices within the National 
     Agricultural Research Program Office are as follows:
       (1) Renewable energy, natural resources, and environment.
       (2) Food safety, nutrition, and health.
       (3) Plant health and production.
       (4) Animal health and production and animal products.
       (5) Agriculture systems and technology.
       (6) Agriculture economics and rural communities.
       (b) Qualifications of Directors.--
       (1) Appointment and classification.--The Under Secretary 
     shall appoint a Director for each Program Office as a senior 
     level position in the competitive service.
       (2) Qualifications.--To be eligible for appointment as a 
     Director, an individual shall have--
       (A) conducted outstanding research, education, or extension 
     in the field of agriculture or forestry;
       (B) earned a doctoral level degree at an institution of 
     higher education (as defined in section 101 of Public Law 89-
     329 (20 U.S.C. 1001)); and
       (C) met qualification standards prescribed by the Director 
     of the Office of Personnel Management for appointment to a 
     senior level position of the competitive service.
       (c) Duties of Directors.--Except as otherwise provided in 
     this Act, each Director as appointed by the Secretary shall--
       (1) formulate programs in consultation with the National 
     Agricultural Research, Extension, Education, and Economics 
     Advisory Board (7 U.S.C. 3123) (hereinafter referred to as 
     the ``Board'');
       (2) assess strategic workforce needs of research, 
     education, extension, and other fields;
       (3) cooperate with the Board to plan programs that assist 
     in meeting the future personnel needs of disciplines and 
     programs;
       (4) develop strategic planning for department-wide 
     research, education, extension, and related activities;
       (5) establish department-wide priorities for research, 
     education, extension, and related programs;
       (6) communicate with research, education, and extension 
     beneficiaries to identify their needs; and
       (7) perform such other duties deemed necessary by the 
     Secretary.
       (d) Administration.--The Under Secretary, in conjunction 
     with the Directors and in consultation with the Board, shall 
     direct and coordinate research, education, and extension 
     programs within the relevant agencies of the Department of 
     Agriculture to focus those programs, and the participants, 
     grantees, and other beneficiaries of those programs, on--
       (1) understanding important problem areas and opportunities 
     relating to a program;
       (2) discovering and implementing solutions to address those 
     problem areas;
       (3) exploring other opportunities provided under the 
     programs; and
       (4) national, regional and local priorities.
       (e) Program Integration and Coordination.--
       (1) In general.--In accordance with applicable law 
     (including regulations), the Under Secretary, in coordination 
     with the Director of each Program Office and taking into 
     consideration the advice of the Board, shall ensure, to the 
     maximum extent practicable, that the research, education, and 
     extension programs are administered, funded, and carried 
     out--
       (A) in an integrated, multidisciplinary, interdisciplinary, 
     interagency, and interinstitutional manner that ensures--
       (i) the most efficient collaborative use of resources; and
       (ii) the focus of all resources and activities on 
     strategic, priority, problem, opportunity, and solution areas 
     identified by the Under Secretary and the Directors, taking 
     into consideration the advice of the Board; and
       (B) among applicable participants, grantees, and 
     beneficiaries, in a coordinated manner that encourages and 
     ensures--

[[Page 21498]]

       (i) the most efficient collaborative application of 
     resources; and
       (ii) the focus of all resources and activities on 
     strategic, priority, problem, opportunity, and solution areas 
     on a local, State, tribal, regional, national, and 
     international basis, as the Under Secretary and each 
     Director, taking into consideration the advice of the Board, 
     determine to be appropriate.
       (2) Scope.--Each Director, in consultation with the Under 
     Secretary and the Board, shall ensure, through the 
     integration and coordination under paragraph (1), that 
     opportunities are maximized with respect to--
       (A) the use of appropriate authorities, agencies, 
     institutions, disciplines, and activities; and
       (B) the inclusion of appropriate participants and other 
     beneficiaries in those activities, including intramural, 
     extramural, Government, university, extension, and 
     international, as determined by the Under Secretary.
       (f) Funding.--The Under Secretary shall fund each Program 
     Office through the appropriations available to the various 
     agencies within the mission area. The aggregate staff for all 
     Program Offices shall not exceed 30 full-time equivalent 
     positions and shall be filled by current full-time equivalent 
     positions.
       (g) Organization.--The Under Secretary shall integrate 
     leadership functions of the national program staff of the 
     research agencies into the National Agricultural Research 
     Program Office in such form as required to ensure that the 
     Directors of the Program Offices are the primary program 
     leaders for the mission areas of the integrated agencies and 
     that administrative duplication does not occur.
       (h) Prioritizing Federal Research Activities for Specialty 
     Crops.--The Under Secretary, in coordination with the 
     Directors of relevant Program Offices, shall--
       (1) coordinate with and assist producers and organizations 
     comprised of program beneficiaries working together to 
     develop and implement applied research and extension related 
     to the United States specialty crop industry;
       (2) facilitate in the delivery of information to 
     beneficiaries in a user-friendly form, in addition to a 
     standard research publication, and reward providers for their 
     abilities to deliver information to both the scientific 
     community and the end-user; and
       (3) ensure coordination among research initiatives funded 
     and sponsored by the Department of Agriculture.

     SEC. 7105. ESTABLISHMENT OF COMPETITIVE GRANT PROGRAMS UNDER 
                   THE NATIONAL INSTITUTE FOR FOOD AND 
                   AGRICULTURE.

       Any office established to administer competitive programs 
     under section 7101(b)(2), including the Agricultural 
     Bioenergy and Biobased Products Research Initiative, the 
     Specialty Crop Research Initiative, and Fresh Cut Produce 
     Safety Grants created by this Act, shall be referred to as 
     the National Institute of Food and Agriculture.

     SEC. 7106. MERGING OF IFAFS AND NRI.

       (a) Amendment.--Subsection (b) of the Competitive, Special, 
     and Facilities Research Grant Act (7 U.S.C. 450i(b)) is 
     amended to read as follows:
       ``(b) Competitive Grant Programs.--
       ``(1) Competitive basis.--The Secretary of Agriculture is 
     authorized to make competitive grants for the purposes and 
     priorities established under this subsection.
       ``(2) Term.--The term of a competitive grant made under 
     this subsection may not exceed 10 years.
       ``(3) General administration.--In making grants under this 
     subsection, the Secretary shall--
       ``(A) seek and accept proposals for grants;
       ``(B) determine the relevance and merit of proposals 
     through a system of peer and merit review in accordance with 
     section 103 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7613);
       ``(C) award grants on the basis of merit, quality, and 
     relevance to advancing the purposes and priorities 
     established under paragraphs (8) and (12) of this subsection;
       ``(D) solicit and consider input from persons who conduct 
     or use agricultural research, extension, or education in 
     accordance with section 102(b) of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 
     7612(b)); and
       ``(E) in seeking proposals for grants under this subsection 
     and in performing peer review evaluations of such proposals, 
     seek the widest participation of qualified scientists in the 
     Federal Government, colleges and universities, State 
     agricultural experiment stations, and the private sector.
       ``(4) Eligible entities.--The Secretary may make a grant 
     under this subsection to State agricultural experiment 
     stations, all colleges and universities, university research 
     foundations, other research institutions and organizations, 
     Federal agencies, national laboratories, private 
     organizations or corporations, and individuals, for research 
     to further the programs of the Department of Agriculture.
       ``(5) Administrative costs.--Not more than 4 percent of 
     funds made available pursuant to this subsection may be 
     retained by the Secretary to pay administrative costs 
     incurred by the Secretary in carrying out this subsection.
       ``(6) Construction prohibited.--Funds made available for 
     grants under this subsection shall not be used for the 
     construction of a new building or facility or the 
     acquisition, expansion, remodeling, or alteration of an 
     existing building or facility (including site grading and 
     improvement and architect fees).
       ``(7) Purposes.--The purposes of the programs established 
     under paragraph (8) shall reflect the purposes and additional 
     purposes of agricultural research, extension, and education 
     reflected in sections 1402 and 1403 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3101 and 3102).
       ``(8) Basic and applied research programs.--The Secretary 
     shall establish 2 distinct programs of agricultural research, 
     one to fund fundamental, basic research pursuant to paragraph 
     (9) to be known as the National Research Initiative and one 
     to fund applied, integrated research, education, and 
     extension pursuant to paragraph (10) to be known as the 
     Initiative for Future Agricultural and Food Systems.
       ``(9) National research initiative.--
       ``(A) Allocation.--The allocation of funds to the National 
     Research Initiative shall be as follows:
       ``(i) Not less than 30 percent shall be available to make 
     grants for research to be conducted by multidisciplinary 
     teams.
       ``(ii) Not less than 20 percent shall be available to make 
     grants for research to be conducted by persons conducting 
     mission-linked systems research.
       ``(iii) Not less than 10 percent shall be available to make 
     grants under subparagraphs (D), (F), and (G) of paragraph 
     (13) for research and education strengthening and research 
     opportunity.
       ``(iv) Not more than 2 percent may be used for equipment 
     grants under paragraph (13)(D).
       ``(B) Matching funds.--Except as provided in this 
     subparagraph, the Secretary may not take the offer or 
     availability of matching funds into consideration in making a 
     grant under this subsection. In the case of grants under 
     paragraph (13)(D), the amount provided under this subsection 
     may not exceed 50 percent of the cost of the special research 
     equipment or other equipment acquired. The Secretary may 
     waive all or part of the matching requirement under this 
     subparagraph in the case of a college, university, or 
     research foundation maintained by a college or university 
     that ranks in the lowest one-third of such colleges, 
     universities, and research foundations on the basis of 
     Federal research funds received if the equipment to be 
     acquired costs not more than $25,000 and has multiple uses 
     within a single research project or is usable in more than 1 
     research project.
       ``(10) Initiative for future agricultural and food systems 
     matching funds.--As a condition of making a grant under this 
     paragraph, the Secretary shall require the funding of the 
     grant be matched with equal matching funds from a non-Federal 
     source if the grant is--
       ``(A) for applied research that is commodity-specific; and
       ``(B) not of national scope.
       ``(11) Research priorities.--The research priorities for 
     the programs established in paragraph (8) shall be consistent 
     with the priorities in effect for the National Research 
     Initiative (7 U.S.C. 450i(b)) and Initiative for Future 
     Agricultural and Food Systems (7 U.S.C. 7621) on the day 
     before the date of enactment of this subsection. Priorities 
     under the Initiative for Future Agricultural and Food Systems 
     shall include classical plant and animal breeding.
       ``(12) Program administration.--To the greatest extent 
     possible, the Under Secretary, in conjunction with the 
     Directors of the National Agricultural Research Program 
     Offices established in section 7104 of the Farm, Nutrition, 
     and Bioenergy Act of 2007, shall allocate these grants to 
     high priority research taking into consideration, when 
     available, the determinations made by the National 
     Agricultural Research, Extension, Education, and Economics 
     Advisory Board (as established under section 1408 of the 
     National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3123).
       ``(13) Special considerations.--In addition to making 
     research grants under paragraph (9), the Secretary may 
     conduct a program to improve research capabilities in the 
     agricultural, food, and environmental sciences and award the 
     following categories of competitive grants. Grants may be 
     awarded--
       ``(A) to a single investigator or coinvestigators within 
     the same discipline;
       ``(B) to teams of researchers from different areas of 
     agricultural research and scientific disciplines;
       ``(C) to multidisciplinary teams that are proposing 
     research on long-term applied research problems, with 
     technology transfer a major component of all such grant 
     proposals;
       ``(D) to an institution to allow for the improvement of the 
     research, development, technology transfer, and education 
     capacity of the institution through the acquisition of 
     special research equipment and the improvement of 
     agricultural education and teaching; however the Secretary 
     shall use not less than 25 percent of the funds made 
     available for grants under this subparagraph to provide 
     fellowships to outstanding pre- and post-doctoral students 
     for research in the agricultural sciences;
       ``(E) to a single investigator or coinvestigators who are 
     beginning their research careers and do not have an extensive 
     research publication record; however, to be eligible for a 
     grant under this subparagraph, an individual shall be within 
     5 years of the individual's initial career track position;
       ``(F) to ensure that the faculty of small and mid-sized 
     institutions who have not previously been successful in 
     obtaining competitive grants under this subsection receive a 
     portion of the grants; and

[[Page 21499]]

       ``(G) to improve research capabilities in States (as 
     defined in the National Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.)) in which 
     institutions have been less successful in receiving funding 
     under this subsection, based on a 3-year rolling average of 
     funding levels.
       ``(14) Division of funds.--Of the funds made available to 
     carry out this subsection, 60 percent shall be used to fund 
     programs under paragraph (9) and 40 percent shall be used to 
     fund programs under paragraph (10).
       ``(15) Transfer of funds from the initiative for future 
     agriculture and food systems.--Funds made available pursuant 
     to section 401(b)(3)(D) of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 7621 
     (b)(3)(D)) shall be transferred to the program established 
     under this subsection.
       ``(16) Authorization of appropriations.--
       ``(A) There is authorized to be appropriated to carry out 
     this subsection $500,000,000 for each of fiscal years 2008 
     through 2012.
       ``(B) Funds made available in each fiscal year shall remain 
     available until expended to pay for obligations incurred in 
     that fiscal year.''.
       (b) Repeals.--The following provisions are hereby repealed:
       (1) Section 401 of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7621).
       (2) Subsection (2)(d) of the Competitive, Special, and 
     Facilities Research Grant Act of 1965 (7 U.S.C. 450i(c)).

     SEC. 7107. CAPACITY BUILDING GRANTS FOR ASCARR INSTITUTIONS.

       (a) Grant Program.--
       (1) In general.--The Secretary shall make competitive 
     grants to ASCARR Institutions to assist the ASCARR 
     Institutions in maintaining and expanding the capacity of the 
     ASCARR Institutions to conduct education, research, and 
     outreach activities relating to--
       (A) agriculture;
       (B) renewable resources; and
       (C) other similar disciplines.
       (2) Use of funds.--An ASCARR Institution that receives a 
     grant under subsection (a)(1) may use the funds made 
     available through the grant to maintain and expand the 
     capacity of the ASCARR Institution--
       (A) to successfully compete for funds from Federal grants 
     and other sources to carry out educational, research, and 
     outreach activities that address priority concerns of 
     national, regional, State, and local interest;
       (B) to disseminate information relating to priority 
     concerns to--
       (i) interested members of the agriculture, renewable 
     resources, and other relevant communities;
       (ii) the public; and
       (iii) any other interested entity;
       (C) to encourage members of the agriculture, renewable 
     resources, and other relevant communities to participate in 
     priority education, research, and outreach activities by 
     providing matching funding to leverage grant funds; and
       (D) through--
       (i) the purchase or other acquisition of equipment and 
     other infrastructure (not including alteration, repair, 
     renovation, or construction of buildings);
       (ii) the professional growth and development of the faculty 
     of the ASCARR Institution; and
       (iii) the development of graduate assistantships.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section such sums as are 
     necessary for each fiscal year 2008 through 2012.

     SEC. 7108. ESTABLISHMENT OF RESEARCH LABORATORIES FOR ANIMAL 
                   DISEASES.

       (a) Definitions.--In this section--
       (1) Animal disease.--The term ``animal disease'' has the 
     meaning given the term by the Secretary.
       (2) Import.--The term ``import'' means to move from a place 
     outside the territorial limits of the United States to a 
     place within the territorial limits of the United States.
       (3) Live virus.--The term ``live virus'' means a live virus 
     of foot-and-mouth disease or a live virus of any other animal 
     disease that is a threat to the health of livestock, as 
     determined by the Secretary.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (5) State.--The term ``State'' means any of the States, the 
     District of Columbia, the Commonwealth of Puerto Rico, Guam, 
     the Commonwealth of the Northern Mariana Islands, the Virgin 
     Islands of the United States, or any territory or possession 
     of the United States.
       (6) United states.--The term ``United States'' means all of 
     the States.
       (b) Animal Disease Research.--
       (1) Establishment of research facilities.--The Secretary is 
     authorized to establish research laboratories, including the 
     acquisition of necessary land, buildings, or facilities, for 
     research on animal diseases in the United States.
       (2) Activities authorized when disease threatens 
     livestock.--To the extent the Secretary determines that an 
     animal disease constitutes a threat to the livestock 
     industry, the Secretary is authorized to conduct research, 
     diagnostics, and other activities related to the animal 
     disease.
       (c) Restrictions Regarding Live Virus.--
       (1) In general.--Except as provided in paragraphs (2), (3), 
     and (4), a person or State or Federal agency may not--
       (A) import a live virus into the United States;
       (B) transport a live virus within the United States; and
       (C) store and maintain a live virus at a research facility.
       (2) Authority of the secretary.--The Secretary of 
     Agriculture may--
       (A) import a live virus into the United States;
       (B) transport a live virus within the United States; and
       (C) store and maintain a live virus at a research facility.
       (3) Permits.--
       (A) In general.--If the Secretary determines that it is in 
     the public interest to do so, the Secretary may issue a 
     permit to allow a private person or a State or Federal agency 
     to--
       (i) import a live virus into the United States;
       (ii) transport a live virus within the United States; and
       (iii) store and maintain a live virus at a research 
     facility.
       (B) Permit terms.--A permit issued under this paragraph 
     shall be subject to terms and conditions prescribed by the 
     Secretary.
       (4) Limitation.--Nothing in this section shall apply to the 
     importation, transportation, storage, and maintenance of any 
     live virus governed by regulations promulgated pursuant to 
     section 351A of the Public Health Service Act (42 U.S.C. 
     262a) or the Agricultural Bioterrorism Protection Act of 2002 
     (7 U.S.C. 8401).
       (d) Authorization of Appropriations.--In addition to funds 
     otherwise available for the control or eradication of animal 
     diseases, there are authorized to be appropriated such sums 
     as necessary to carry out this section.

     SEC. 7109. GRAZINGLANDS RESEARCH LABORATORY.

       Notwithstanding any other provision of law, without 
     specific authorization by an Act of Congress, the Federal 
     land and facilities at El Reno, Oklahoma, currently 
     administered by the Secretary of Agriculture as the 
     Grazinglands Research Laboratory, shall not at any time, in 
     whole or part, be declared to be excess or surplus Federal 
     property under chapter 5 of subtitle I of title 40, United 
     States Code, or otherwise be conveyed or transferred in whole 
     or in part.

     SEC. 7110. RESEARCHER TRAINING.

       (a) Requirement.--The Secretary shall require that persons 
     receiving funds under section 1668(g)(2) of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     5921(g)(2)) to conduct research concerning genetically 
     engineered plants, including seed and other propagative 
     materials, complete a training program approved by the 
     Secretary.
       (b) Certification of Third-Party Providers.--Not later than 
     180 days after the date of the enactment of this Act, the 
     Secretary shall establish a system for approving individuals 
     and entities to provide training under subsection (a), 
     including criteria for the evaluation of trainers or 
     potential trainers.
       (c) Expertise.--In establishing criteria for the evaluation 
     of potential trainers, the Secretary shall ensure that 
     individuals and entities with expertise in quality management 
     systems, plant breeding and genetics, and the technical 
     aspects of the Federal regulatory process for agricultural 
     biotechnology, are eligible to become approved trainers under 
     subsection (b).

     SEC. 7111. FORT RENO SCIENCE PARK RESEARCH FACILITY.

       The Secretary of Agriculture may lease land to the 
     University of Oklahoma at the Grazinglands Research 
     Laboratory at El Reno, Oklahoma, on such terms and conditions 
     as the University and the Secretary may agree in furtherance 
     of cooperative research and existing easement arrangements.

     SEC. 7112. ASSESSING THE NUTRITIONAL COMPOSITION OF BEEF 
                   PRODUCTS.

       (a) Study.--Not later than 1 year after the date of the 
     enactment of this Act, the Secretary shall award a grant, 
     contract, or other agreement with an appropriate land-grant 
     university to update the Department of Agriculture's Nutrient 
     Composition Handbook for Beef, also known as Handbook #8-13. 
     The Handbook shall incorporate accurate and current data 
     collected by the university to be used by Federal agencies, 
     private industries, health organizations, and consumers to 
     determine important diet and health-related issues associated 
     with the consumption of beef and beef products.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section to be available until expended .

     SEC. 7113. SENSE OF CONGRESS REGARDING FUNDING FOR HUMAN 
                   NUTRITION RESEARCH.

       It is the sense of the Congress that--
       (1) human nutrition research has the potential for 
     improving the health status of the American public through 
     studies that help determine--
       (A) the food and beverage intakes of Americans and the 
     nutrient composition of the food supply;
       (B) the relationship between diet and obesity, particularly 
     to prevent childhood obesity;
       (C) the authoritative, peer-reviewed, science-based 
     evidence that forms the basis for Federal nutrition policy, 
     dietary guidelines and programs; and
       (D) the nutrient requirements for individuals at various 
     stages in the lifespan and for vulnerable populations, 
     particularly children and the elderly;
       (2) human nutrition research holds the potential for 
     identifying factors in crops and livestock that provide 
     nutrition benefits to humans and add value for producers;
       (3) the potential cost savings to Federal health programs, 
     combined with the boost in revenues

[[Page 21500]]

     for farmers who produce nutritionally enhanced foods, 
     justifies an increase in funding to a level sufficient to 
     conduct this essential research; and
       (4) the USDA regional human nutritional research centers 
     have unique value in linking producer and consumer interests 
     into investigations of food and human nutrition issues and 
     conducting long-term nutrition studies; and activities at 
     these centers should be preserved and coordinated with other 
     human nutrition research activities.
  Subtitle B--National Agricultural Research, Extension, and Teaching 
                           Policy Act of 1977

     SEC. 7201. ADVISORY BOARD.

       Section 1408(g)(1) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3123(g)(1)) is amended by striking ``$350,000'' and inserting 
     ``$500,000''.

     SEC. 7202. ADVISORY BOARD TERMINATION.

       Section 1408(h) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) 
     is amended by striking ``2007'' and inserting ``2012''.

     SEC. 7203. RENEWABLE ENERGY COMMITTEE.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 is amended by inserting after section 
     1408A the following:

     ``SEC. 1408B. RENEWABLE ENERGY COMMITTEE.

       ``(a) Initial Members.--Not later than 90 days after the 
     date of the enactment of this section, the executive 
     committee of the Advisory Board shall establish and appoint 
     the initial members of a permanent renewable energy committee 
     that shall be responsible for studying the scope and 
     effectiveness of research, extension, and economics programs 
     affecting the renewable energy industry.
       ``(b) Non-Advisory Board Members.--Individuals who are not 
     members of the Advisory Board may be appointed as members of 
     the renewable energy committee. Members of the renewable 
     energy committee shall serve at the discretion of the 
     executive committee.
       ``(c) Report by Renewable Energy Committee.--Not later than 
     180 days after the establishment of the renewable energy 
     committee, and annually thereafter, the renewable energy 
     committee shall submit to the Advisory Board a report 
     containing the findings of its study under subsection (a). 
     The renewable energy committee shall include in each report 
     its recommendations.
       ``(d) Coordination of Functions.--In carrying out its 
     functions, the Renewable Energy Committee shall coordinate 
     with the Biomass Research and Development Act Committee.
       ``(e) Matters To Be Considered in Budget Recommendation.--
     In preparing the annual budget recommendations for the 
     Department, the Secretary shall take into consideration those 
     findings and recommendations contained in the most recent 
     report of the renewable energy committee that are adopted by 
     the Advisory Committee.
       ``(f) Report by the Secretary.--In the budget material 
     submitted to Congress by the Secretary in connection with the 
     budget submitted pursuant to section 1105 of title 31, United 
     States Code, for a fiscal year, the Secretary shall include a 
     report describing how the Secretary addressed each 
     recommendation of the renewable energy committee described in 
     subsection (e) of this section.''.

     SEC. 7204. SPECIALTY CROP COMMITTEE REPORT.

       Section 1408A(c) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3123a(c)) is amended by adding at the end the following:
       ``(4) Analyses of the specialty crop sector, including the 
     impact of changes in domestic and international markets, 
     production and new product technologies, alternative policies 
     and macroeconomic conditions on specialty crop production, 
     use, farm and retail prices, and farm income and financial 
     stability from a national, regional, and farm-level 
     perspective.
       ``(5) Review of the economic state of the specialty crop 
     industry from a regional perspective.
       ``(6) Development of data that provides applied information 
     useful to specialty crop growers, their associations, and 
     other interested beneficiaries in evaluating that industry 
     from a regional and national perspective.''.

     SEC. 7205. INCLUSION OF UDC IN GRANTS AND FELLOWSHIPS FOR 
                   FOOD AND AGRICULTURAL SCIENCES EDUCATION.

       Section 1417 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is 
     amended--
       (1) in subsection (b), by inserting ``including the 
     University of the District of Columbia,'' after 
     ``universities,''; and
       (2) in subsection (d)(2), by inserting ``, including the 
     University of the District of Columbia,'' after 
     ``universities''.

     SEC. 7206. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL 
                   SCIENCES EDUCATION.

       (a) Education Teaching Programs.--Section 1417(j) of the 
     National Agricultural Research, Extension and Teaching Policy 
     Act of 1977 (7 U.S.C. 3152(j)) is amended--
       (1) in the subsection heading, by striking ``Secondary 
     Education and 2-Year Postsecondary Education Teaching 
     Programs'' and inserting ``Secondary Education, 2-Year 
     Postsecondary Education, and Agriculture in the K-12 
     Classroom''; and
       (2) in paragraph (3)--
       (A) by striking ``secondary schools, and institutions of 
     higher education that award an associate's degree'' and 
     inserting ``secondary schools, institutions of higher 
     education that award an associate's degree, other 
     institutions of higher education, and nonprofit 
     organizations'';
       (B) in subparagraph (E), by striking ``and'' at the end;
       (C) in subparagraph (F), by striking the period at the end 
     and inserting ``; and''; and
       (D) by adding at the end the following:
       ``(G) to support current agriculture in the classroom 
     programs for grades K-12.''.
       (b) Authorization of Appropriations.--Section 1417(l) of 
     the National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3152(l)) is amended by striking 
     ``2007'' and inserting ``2012''.
       (c) Report.--Section 1417 of the National Agricultural 
     Research, Extension and Teaching Policy Act of 1977 is 
     amended by adding at the end the following:
       ``(m) Report.--The Secretary shall submit an annual report 
     to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition 
     and Forestry of the Senate detailing the distribution of 
     funds used to implement the teaching programs under 
     subsection (j).''.

     SEC. 7207. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF 
                   ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM 
                   AGRICULTURAL COMMODITIES AND FOREST PRODUCTS.

       Section 1419(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) 
     is amended by striking ``2007'' and inserting ``2012''.

     SEC. 7208. POLICY RESEARCH CENTERS.

       Section 1419A of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155) is 
     amended--
       (1) in subsection (b), by inserting ``, including the Food 
     Agricultural Policy Research Institute and the Agricultural 
     and Food Policy Center'' after ``research institutions and 
     organizations''; and
       (2) in subsection (d), by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7209. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION 
                   RESEARCH PROGRAM.

       Section 1424(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) 
     is amended by striking ``2007'' and inserting ``2012''.

     SEC. 7210. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND 
                   AGRICULTURAL RESEARCH.

       Section 1424A(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3174a(d)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7211. NUTRITION EDUCATION PROGRAM.

       Section 1425(c)(3) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3175(c)(3)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7212. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH 
                   PROGRAMS.

       Section 1433(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) 
     is amended in the first sentence by striking ``2007'' and 
     inserting ``2012''.

     SEC. 7213. COOPERATION AMONG ELIGIBLE INSTITUTIONS.

       Section 1433 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 is amended by 
     adding at the end the following new subsection:
       ``(g) Cooperation Among Eligible Institutions.--The 
     Secretary, to the maximum extent practicable, shall encourage 
     eligible institutions to cooperate in setting research 
     priorities under this section through the conduct of regular 
     regional and national meetings.''.

     SEC. 7214. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR 
                   REGIONAL PROBLEMS.

       Section 1434(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) 
     is amended by striking ``2007'' and inserting ``2012''.

     SEC. 7215. AUTHORIZATION LEVEL OF EXTENSION AT 1890 LAND-
                   GRANT COLLEGES.

       Section 1444(a)(2) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3221(a)(2)) is amended by striking ``15 percent'' and 
     inserting ``20 percent''.

     SEC. 7216. AUTHORIZATION LEVEL FOR AGRICULTURAL RESEARCH AT 
                   1890 LAND-GRANT COLLEGES.

       Section 1445(a)(2) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3222(a)(2)) is amended by striking ``25 percent'' and 
     inserting ``30 percent''.

     SEC. 7217. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES 
                   FACILITIES AT THE DISTRICT OF COLUMBIA LAND 
                   GRANT UNIVERSITY.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended by 
     inserting after section 1447 the following:

     ``SEC. 1447A. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES 
                   FACILITIES AT THE DISTRICT OF COLUMBIA LAND 
                   GRANT UNIVERSITY.

       ``(a) Purpose.--It is declared to be the intent of Congress 
     to assist the land grant university in the District of 
     Columbia, as established under section 208 of the District of 
     Columbia Public Postsecondary Education Reorganization Act of 
     October 26, 1974 (Public Law 93-471) in efforts acquire, 
     alter, or repair facilities or relevant equipment necessary 
     for conducting agricultural research.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated for the purposes of carrying 
     out the provisions of this

[[Page 21501]]

     section $750,000 for each of fiscal years 2008 through 
     2012.''.

     SEC. 7218. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES 
                   FACILITIES AT 1890 LAND-GRANT COLLEGES, 
                   INCLUDING TUSKEGEE UNIVERSITY.

       Section 1447(b) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3222b(b)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7219. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.

       Section 1448 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c) 
     is amended by striking ``2007'' each place it appears in 
     subsections (a)(1) and (f) and inserting ``2012''.

     SEC. 7220. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND 
                   EXTENSION ACTIVITIES OF 1890 INSTITUTIONS.

       Section 1449(c) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3222d(c)) is amended in the first sentence by striking ``for 
     each of fiscal years 2003 through 2007,''.

     SEC. 7221. HISPANIC-SERVING INSTITUTIONS.

       Section 1455(c) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) 
     is amended by striking ``2007'' and inserting ``2012''.

     SEC. 7222. HISPANIC-SERVING AGRICULTURAL COLLEGES AND 
                   UNIVERSITIES.

       (a) In General.--The National Agricultural Research, 
     Extension and Teaching Policy Act of 1977 is amended by 
     inserting after section 1455 the following:

     ``SEC. 1456. HISPANIC-SERVING AGRICULTURAL COLLEGES AND 
                   UNIVERSITIES.

       ``(a) Definitions.--As used in this section:
       ``(1) Endowment fund.--The term `endowment fund' means the 
     Hispanic-Serving Agricultural Colleges and Universities Fund 
     established under subsection (b).
       ``(2) Hispanic-serving agricultural college and 
     universities.--The term `Hispanic-serving agricultural 
     colleges and universities' means a college or university 
     that--
       ``(A) qualifies as a `Hispanic-serving institution' as 
     defined in section 502(a)(5) of the Higher Education Act of 
     1965 (20 U.S.C. 1101a(a)(5)); and
       ``(B) offers associate, bachelor's, or other accredited 
     degree programs in agriculture-related fields.
       ``(b) Endowment.--
       ``(1) In general.--In accordance with this subsection, the 
     Secretary of the Treasury shall establish a Hispanic-Serving 
     Agricultural Colleges and Universities Fund. The Secretary of 
     the Treasury may enter into such agreements as are necessary 
     to carry out this subsection.
       ``(2) Deposit to the endowment fund.--The Secretary of the 
     Treasury shall deposit in the endowment fund any--
       ``(A) amounts made available through Acts of 
     appropriations, which shall be the endowment fund corpus; and
       ``(B) interest earned on the endowment fund corpus.
       ``(3) Investments.--The Secretary of the Treasury shall 
     invest the endowment fund corpus and income in interest-
     bearing obligations of the United States.
       ``(4) Withdrawals and expenditures.--The Secretary of the 
     Treasury may not make a withdrawal or expenditure from the 
     endowment fund corpus. On September 30, 2008, and each 
     September 30 thereafter, the Secretary of the Treasury shall 
     withdraw the amount of the income from the endowment fund for 
     the fiscal year and warrant the funds to the Secretary of 
     Agriculture who, after making adjustments for the cost of 
     administering the endowment fund, shall distribute the 
     adjusted income as follows:
       ``(A) 60 percent distributed among the Hispanic-serving 
     agricultural colleges and universities on a pro rata basis 
     based on each institution's Hispanic enrollment count.
       ``(B) 40 percent distributed in equal shares to the 
     Hispanic-serving agricultural colleges and universities.
       ``(5) Authorization of appropriations.--
       ``(A) In general.--For fiscal year 2008, and for each 
     fiscal year thereafter, there is authorized to be 
     appropriated to the Department of Agriculture an amount equal 
     to--
       ``(i) $80,000; multiplied by
       ``(ii) the number of Hispanic-serving agricultural colleges 
     and universities.
       ``(B) Payments.--For fiscal year 2008, and for each fiscal 
     year thereafter, the Secretary of the Treasury shall pay to 
     the treasurer of each Hispanic-Serving agricultural college 
     and university an amount equal to--
       ``(i) the total amount made available by appropriations 
     pursuant to paragraph (1); divided by
       ``(ii) the number of Hispanic-serving agricultural colleges 
     and universities.
       ``(C) Use of funds.--Amounts authorized to be appropriated 
     under this subsection shall be used in the same manner as is 
     prescribed for colleges under the Act of August 30, 1890 
     (commonly known as the Second Morrill Act), and except as 
     otherwise provided in this subsection, the requirements of 
     such Act shall apply to the Hispanic-serving agricultural 
     colleges and universities.
       ``(D) Amounts appropriated pursuant to this section shall 
     be held and considered to have been granted to Hispanic-
     serving agricultural colleges and universities to establish 
     an endowment pursuant to subsection (b).
       ``(c) Institutional Capacity Building Grants.--
       ``(1) Purpose and allowable uses.--For fiscal year 2008, 
     and for each fiscal year thereafter, the Secretary shall make 
     institutional capacity building grants to assist Hispanic-
     serving agricultural colleges and universities not including 
     alteration, repair, renovation, or construction of buildings.
       ``(2) Criteria for institutional capacity building 
     grants.--
       ``(A) Requirements for grants.--The Secretary shall make 
     grants under this subsection on the basis of a competitive 
     application process under which Hispanic-serving agricultural 
     colleges and universities may submit applications to the 
     Secretary in such form and manner as the Secretary may 
     prescribe.
       ``(B) Broader participation and geographic diversity.--All 
     Hispanic-serving agricultural colleges and universities shall 
     be eligible to compete for grants under this subsection.
       ``(C) Demonstration of need.--The Secretary shall require 
     as part of an application for a grant under this subsection, 
     a demonstration of need based on criteria stated in 
     subsection (b)(5). The Secretary may award a grant under this 
     subsection only to an applicant that demonstrates a failure 
     to obtain funding for a project after making a reasonable 
     effort to otherwise obtain the funding.
       ``(D) Payment of non-federal share.--A grant awarded under 
     this subsection shall be made only if the recipient of the 
     grant pays a non-Federal share in an amount specified by the 
     Secretary and based upon assessed institutional needs.
       ``(3) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary of Agriculture 
     to carry out this subsection, such sums as are necessary for 
     fiscal year 2008, and for each fiscal year thereafter.
       ``(d) Competitive Grants Program.--The Secretary of 
     Agriculture shall establish a competitive grants program to 
     fund basic and applied research at Hispanic-serving 
     agricultural colleges and universities in agriculture, human 
     nutrition, food science, bioenergy, and environmental 
     science. There are authorized to be appropriated to the 
     Secretary such sums as are necessary to carry out this 
     subsection for fiscal year 2008 and for each fiscal year 
     thereafter.''.
       (b) Funding.--Section 3 of the Act of May 8, 1914, 
     (commonly known as the Smith-Lever Act), is amended--
       (1) in subsection (b), by adding at the end the following 
     new paragraph:
       ``(4) There are authorized to be appropriated for fiscal 
     year 2008, and for each fiscal year thereafter, such sums as 
     are necessary for the purposes set forth in section 4. Such 
     sums shall be in addition to the sums appropriated for the 
     several States and Puerto Rico, the Virgin Islands, and Guam 
     under the provisions of this section. Such sums shall be 
     distributed on the basis on a competitive application process 
     to be developed and implemented by the Secretary and paid by 
     the Secretary to the State institutions established in 
     accordance with the provisions of the Act of July 2, 1862 
     (commonly known as the First Morrill Act) and administered by 
     such institutions through cooperative agreements with the 
     Hispanic-serving agricultural colleges and universities in 
     the States of the institutions in accordance with regulations 
     that the Secretary shall adopt.''; and
       (2) in subsection (f), by inserting ``or Hispanic-serving 
     agricultural colleges and universities'' after 
     ``Institution''.

     SEC. 7223. INTERNATIONAL AGRICULTURAL RESEARCH, EXTENSION, 
                   AND EDUCATION.

       Section 1458(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3291(a)) 
     is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking ``and'' after the 
     semicolon;
       (B) in subparagraph (B), by adding ``and'' at the end; and
       (C) by adding at the end the following:
       ``(C) giving priority to those institutions with existing 
     memorandums of understanding, agreements, or other formal 
     ties to United States institutions, or State or Federal 
     agencies;'';
       (2) in paragraph (3), by inserting ``Hispanic-serving 
     agricultural colleges and universities,'' after 
     ``universities,'';
       (3) in paragraph (7)(A), by striking ``and land-grant 
     colleges and universities'' and inserting ``, land-grant 
     colleges and universities, and Hispanic-serving agricultural 
     colleges and universities'';
       (4) in paragraph (9)(A), by striking ``or other colleges 
     and universities'' and inserting ``, or other colleges and 
     universities, or Hispanic-serving agricultural colleges and 
     universities''; and
       (5) by adding at the end the following:
       ``(11) establish a program for the purpose of providing 
     fellowships to United States or foreign students to study at 
     foreign agricultural colleges and universities working under 
     agreements provided for under paragraph (3).''.

     SEC. 7224. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL 
                   SCIENCE AND EDUCATION PROGRAMS.

       Section 1459A(c) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3292b(c)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7225. LIMITATION ON INDIRECT COSTS FOR AGRICULTURAL 
                   RESEARCH, EDUCATION, AND EXTENSION PROGRAMS.

       Section 1462(a) of the National Agriculture Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310(a)) 
     is amended by striking ``a competitive'' and inserting 
     ``any''.

     SEC. 7226. RESEARCH EQUIPMENT GRANTS.

       Section 1462A(e) of the National Agricultural Research, 
     Extension, and Teaching Policy Act

[[Page 21502]]

     of 1977 (7 U.S.C. 3310a(e)) is amended by striking ``2007'' 
     and inserting ``2012''.

     SEC. 7227. UNIVERSITY RESEARCH.

       Section 1463 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311) is 
     amended by striking ``2007'' each place it appears in 
     subsections (a) and (b) and inserting ``2012''.

     SEC. 7228. EXTENSION SERVICE.

       Section 1464 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is 
     amended by striking ``2007'' and inserting ``2012''.

     SEC. 7229. SUPPLEMENTAL AND ALTERNATIVE CROPS.

       Section 1473D(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3319d(a)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7230. AQUACULTURE RESEARCH FACILITIES.

       Section 1477 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3324) is 
     amended by striking ``2007'' and inserting ``2012''.

     SEC. 7231. RANGELAND RESEARCH.

       Section 1483(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) 
     is amended by striking ``2007'' and inserting ``2012''.

     SEC. 7232. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND 
                   RESPONSE.

       Section 1484(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3351(a)) 
     is amended by striking ``2007'' and inserting ``2012''.

     SEC. 7233. RESIDENT INSTRUCTION AND DISTANCE EDUCATION GRANTS 
                   PROGRAM FOR INSULAR AREA INSTITUTIONS OF HIGHER 
                   EDUCATION.

       (a) Distance Education Grants for Insular Areas.--Section 
     1490(f) of the National Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3362(f)) is amended by 
     striking ``2007'' and inserting ``2012''.
       (b) Resident Instruction Grants for Insular Areas.--Section 
     1491 of the National Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3363) is amended--
       (1) by redesignating subsection (e) as subsection (c); and
       (2) in subsection (c) (as so redesignated), by striking 
     ``2007'' and inserting ``2012''.
   Subtitle C--Food, Agriculture, Conservation, and Trade Act of 1990

     SEC. 7301. NATIONAL GENETICS RESOURCES PROGRAM.

       Section 1635(b) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5844(b)) is amended by striking 
     ``2007'' and inserting ``2012''.

     SEC. 7302. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.

       Section 1641(c) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5855(c)) is amended by striking 
     ``1991 through 1997'' and inserting ``2008 through 2012''.

     SEC. 7303. PARTNERSHIPS.

       Section 1672(d) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925(d)) is amended by striking 
     ``may'' and inserting ``shall''.

     SEC. 7304. AFLATOXIN RESEARCH AND EXTENSION.

       Section 1672(e)(3) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5925(e)(3)) is amended by 
     striking ``and controlling aflatoxin in the food and feed 
     chains.'' and inserting ``improving, and eventually 
     commercializing alfatoxin controls in corn and other affected 
     agricultural products and crops.''.

     SEC. 7305. HIGH-PRIORITY RESEARCH AND EXTENSION AREAS.

       Section 1672(e) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925(e)) is amended by adding the 
     following:
       ``(46) Farmed and wild cervid disease and applied genetics 
     research.--Research grants may be made under this section for 
     the purpose of investigating the major infectious, parasitic 
     and toxic diseases of importance to farmed and wild cervids.
       ``(47) Air emissions from livestock operations.--Research 
     and extension grants may be made under this section for the 
     purpose of conducting field verification tests and developing 
     mitigation options for air emissions from animal feeding 
     operations.
       ``(48) Swine genome project.--Research grants may be made 
     under this section to conduct swine genome research and to 
     map the swine genome.
       ``(49) Cattle fever tick program.--Research and extension 
     grants may be made to study cattle fever ticks to facilitate 
     understanding of the role of wildlife in the persistence and 
     spread of cattle fever ticks; to develop advanced methods for 
     eradication of cattle fever ticks; and to improve management 
     of diseases related to cattle fever ticks that are associated 
     with wildlife, livestock, and human health.
       ``(50) Colony collapse disorder program.--Research and 
     extension grants may be made to survey and collect data of 
     honey bee colony production and health; research various 
     factors possibly contributing to or associated with colony 
     collapse disorder; and develop mitigative and preventative 
     measures to improve bee health.
       ``(51) Synthetic gypsum from electric power plants 
     research.--Research and extension grants may be made to study 
     the uses of synthetic gypsum from electric power plants to 
     remediate soil and nutrient losses.
       ``(52) Cranberry research program.--Research and extension 
     grants may be made to study new technologies to assist 
     cranberry growers in complying with Federal and State 
     environmental regulations, increase production, develop new 
     growing techniques, establish more efficient growing 
     methodologies, and educate farmers about sustainable growth 
     practices.
       ``(53) Sorghum research initiative.--Research and extension 
     grants may be made to study the use of sorghum as a bioenergy 
     feedstock, promote diversification in, and the environmental 
     sustainability of sorghum production, and promote water 
     conservation through the use of sorghum.
       ``(54) Bean health research program.--Research and 
     extension grants may be made to study bean-based solutions to 
     chronic health and nutritional concerns in both developed and 
     developing countries, and to increase bean consumption.''.

     SEC. 7306. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

       Section 1672(h) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925(h)) is amended by striking 
     ``2007'' and inserting ``2012''.

     SEC. 7307. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION 
                   INITIATIVE.

       Section 1672A of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925a) is amended--
       (1) by redesignating subsection (g) as subsection (f);
       (2) in subsection (d), by inserting ``or address unique 
     regional concerns'' after ``entities'';
       (3) in subsection (e)(1)(B), by inserting ``and dairy 
     cattle waste'' after ``swine waste''; and
       (4) in subsection (f) (as so redesignated in paragraph 
     (1)), by striking ``2007'' and inserting ``2012''.

     SEC. 7308. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

       Section 1673(h) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5926(h)) is amended by striking 
     ``2007'' and inserting ``2012''.

     SEC. 7309. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH 
                   DISABILITIES.

       Section 1680(c)(1) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7310. ORGANIC RESEARCH.

       (a) In General.--The Organic Agriculture Research and 
     Extension Initiative (section 1672B of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5925b)) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (5), by striking ``and'' after the 
     semicolon;
       (B) in paragraph (6), at the end by striking the period and 
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(7) examining optimal conservation and environmental 
     outcomes relating to organically produced agricultural 
     products; and
       ``(8) developing new and improved seed varieties that are 
     particularly suited for organic agriculture.''; and
       (2) by adding at the end the following--
       ``(f) Authorization of Appropriations.--There is authorized 
     to be appropriated $25,000,000 for each of fiscal years 2009 
     through 2012.
       ``(g) Additional Funding.--In addition to funds made 
     available under subsection (f), of the funds of the Commodity 
     Credit Corporation, the Secretary shall make available to 
     carry out this section a total of $25,000,000 for fiscal 
     years 2008 through 2012.''.
       (b) Coordination.--In carrying out this section, the 
     Secretary shall ensure that the Director of the applicable 
     Program Office established under section 7104(a) coordinates 
     projects and activities carried out under this section to 
     ensure, to the maximum extent practicable, that duplication 
     of effort is eliminated or minimized.

     SEC. 7311. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

       Section 2381(e) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking 
     ``2007'' and inserting ``2012''.

     SEC. 7312. NEW ERA RURAL TECHNOLOGY PROGRAM.

       (a) Functions.--
       (1) The Secretary shall establish the ``New Era Rural 
     Technology Program'', to make grants available for technology 
     development, applied research, and training to aid in the 
     development of an agriculture-based renewable energy 
     workforce. This initiative shall support the fields of 
     bioenergy, pulp and paper manufacturing, and for agriculture-
     based renewable energy resources.
       (2) To receive funding under this section an entity--
       (A) shall be a rural community college or advanced 
     technological center, in existence on the date of the 
     enactment of this Act, that participates in agricultural or 
     bioenergy research and applied research;
       (B) shall have a proven record of development and 
     implementation of programs to meet the needs of students, 
     educators, and business and industry to supply the 
     agriculture-based, renewable energy or pulp and paper 
     manufacturing fields with certified technicians as determined 
     by the Secretary of Agriculture; and
       (C) shall have the ability to leverage existing 
     partnerships and occupational outreach and training programs 
     for secondary schools, 4-year institutions and relevant non-
     profit organizations.

[[Page 21503]]

       (b) Limitation on Authorization of Appropriations.--To 
     carry out this section, there are authorized to be 
     appropriated such sums as necessary for each of the fiscal 
     years 2008 through 2012.
       (c) Community Colleges.--In this section, the term 
     ``community college'' means an institution of higher 
     education--
       (1) that admits as regular students persons who are beyond 
     the age of compulsory school attendance in the State in which 
     the institution is located and who have the ability to 
     benefit from the training offered by the institution;
       (2) that does not provide an educational program for which 
     it awards a bachelor's degree, or an equivalent degree; and
       (3) that--
       (A) provides an educational program of not less than two 
     years that is acceptable for full credit toward such a 
     degree; or
       (B) offers a two-year program in engineering, technology, 
     mathematics, or the physical, chemical or biological 
     sciences, designed to prepare a student to work as a 
     technician or at the semiprofessional level in engineering, 
     scientific, or other technological fields requiring the 
     understanding and application of basic engineering, 
     scientific, or mathematical principles of knowledge.
       (d) Grant Priority.--Preference shall be given to rural 
     community colleges working in partnership to improve 
     information sharing capacity and to maximize the ability to 
     meet the requirements of this section.
Subtitle D--Agricultural Research, Extension, and Education Reform Act 
                                of 1998

     SEC. 7401. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT 
                   QUALITY RESEARCH.

       Section 402(g) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7402. PRECISION AGRICULTURE.

       Section 403(i)(1) of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7623(i)(1)) is 
     amended by striking ``2007'' and inserting ``2012''.

     SEC. 7403. BIOBASED PRODUCTS.

       (a) Pilot Project.--Section 404(e)(2) of the Agricultural 
     Research, Extension, and Education Reform Act of 1998 (7 
     U.S.C. 7624(e)(2)) is amended by striking ``2007'' and 
     inserting ``2012''.
       (b) Authorization of Appropriations.--Section 404(h) of the 
     Agricultural Research, Extension, and Education Reform Act of 
     1998 (7 U.S.C. 7624(h)) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 7404. THOMAS JEFFERSON INITIATIVE FOR CROP 
                   DIVERSIFICATION.

       Section 405(h) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7405. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION 
                   COMPETITIVE GRANTS PROGRAM.

       Section 406(f) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7406. FUSARIUM GRAMINEARUM GRANTS.

       Section 408 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended--
       (1) in the heading for such section, by striking ``GRANT'' 
     and inserting ``GRANTS''; and
       (2) in subsection (e), by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7407. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

       Section 409(b) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7629(b)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7408. GRANTS FOR YOUTH ORGANIZATIONS.

       Section 410 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7630) is amended by 
     striking subsections (b) and (c) and inserting the following:
       ``(b) Flexibility.--The Secretary shall provide maximum 
     flexibility in content delivery to each organization 
     receiving funds under this section so as to ensure that the 
     unique goals of each organization, as well as the local 
     community needs are fully met.
       ``(c) Redistribution of Funding Within Organizations 
     Authorized.--Recipients of funds under this section are 
     authorized to redistribute all or part of the funds received 
     to individual councils or local chapters within such 
     organization without further need of approval from the 
     Secretary.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as are necessary for each of fiscal years 2008 through 
     2012.''.

     SEC. 7409. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND 
                   DEVELOPMENT FOR DEVELOPING COUNTRIES.

       Section 411(c) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7631(c)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7410. AGRICULTURAL BIOENERGY AND BIOBASED PRODUCTS 
                   RESEARCH INITIATIVE.

        Title IV of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 412. AGRICULTURAL BIOENERGY AND BIOBASED PRODUCTS 
                   RESEARCH INITIATIVE.

       ``(a) Definition.--For the purposes of this section, the 
     term `Initiative' means the agricultural bioenergy and 
     biobased products research initiative established by 
     subsection (b).
       ``(b) Establishment.--There is established within the 
     Department a bioenergy and biobased products research 
     initiative to enhance the production, sustainability, and 
     conversion of biomass to renewable fuels and related 
     products.
       ``(c) Laboratory Network.--
       ``(1) In general.--The Secretary shall carry out the 
     Initiative through a bioenergy and biobased product 
     laboratory network that may consist of--
       ``(A) Federal agencies;
       ``(B) national laboratories;
       ``(C) colleges and universities;
       ``(D) research institutions and organizations;
       ``(E) private organizations or corporations;
       ``(F) State agricultural experiment stations; and
       ``(G) individuals.
       ``(2) Research and development objectives.--The laboratory 
     network shall focus on improving biomass production and 
     sustainability, and improving biomass conversion in 
     biorefineries, by--
       ``(A) leveraging the broad scientific capabilities of the 
     Department in--
       ``(i) plant genetics and breeding;
       ``(ii) crop production;
       ``(iii) soil and water science;
       ``(iv) use of agricultural waste;
       ``(v) carbohydrate, lipid, protein, and lignin chemistry 
     and biochemistry;
       ``(vi) enzyme development;
       ``(vii) fermentation;
       ``(viii) microbiology;
       ``(ix) cellulosic gasification; and
       ``(x) ethanol by-product utilization.
       ``(B) supporting bioenergy and biobased product research 
     that will enhance the production, sustainability, and 
     conversion of biomass to renewable fuels and related 
     products; and
       ``(C) supporting bioenergy and biobased product research, 
     and the dissemination of that research, that will assist in 
     achieving the goals of this section.
       ``(d) Coordination.--In carrying out the Initiative, the 
     Secretary shall ensure that the Director of the applicable 
     Program office established under section 7104(a)(1) shall 
     coordinate projects and activities carried out under the 
     Initiative with projects and activities under the Biomass 
     Research and Development Act of 2000 (7 U.S.C. 8601 et seq) 
     to ensure, to the maximum extent practicable, that--
       ``(1) duplication of effort is eliminated or minimized; and
       ``(2) the respective strengths of the Department and the 
     Department of Energy are maximized.
       ``(e) Research Projects.--In carrying out this section, the 
     Secretary shall award grants on a competitive basis.
       ``(f) Administration.--
       ``(1) In general.--For grants awarded under subsection 
     (e)(2), the Secretary shall--
       ``(A) seek and accept proposals for grants;
       ``(B) determine the relevance and merit of proposals 
     through a system of peer review in accordance with (7 U.S.C. 
     7613); and
       ``(C) award grants on the basis of merit, quality, and 
     relevance.
       ``(2) Term.--A grant under this section shall have a term 
     that does not exceed 5 years.
       ``(3) Other conditions.--The Secretary may set such other 
     conditions on the award of a grant under this section as the 
     Secretary determines appropriate.
       ``(g) Buildings and Facilities.--Funds made available under 
     this section shall not be used for the construction of a new 
     building or facility or the acquisition, expansion, 
     remodeling, or alteration of an existing building or facility 
     (including site grading and improvement and architect fees).
       ``(h) Funding.--There is authorized to be appropriated 
     $50,000,000 for each of fiscal years 2008 through 2012 to 
     carry out this section.''.

     SEC. 7411. SPECIALTY CROP RESEARCH INITIATIVE.

       (a) In General.--Title IV of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 7621 et 
     seq.), as amended by section 7410, is further amended by 
     adding at the end the following:

     ``SEC. 413. SPECIALTY CROP RESEARCH INITIATIVE.

       ``(a) Definitions.--In this section:
       ``(1) Initiative.--The term `Initiative' means the 
     specialty crop research initiative established by subsection 
     (b).
       ``(2) Specialty crop.--The term `specialty crop' shall have 
     the meaning given that term in section 3(1) of the Specialty 
     Crops Competitiveness Act of 2004 (7 U.S.C. 1621).
       ``(b) Establishment.--There is established within the 
     Department a specialty crop research initiative to address 
     the critical needs of the specialty crop industry by 
     developing and disseminating science-based tools to address 
     needs of specific crops and their regions, including--
       ``(1) research in--
       ``(A) plant breeding, genetics, and genomics to improve 
     crop characteristics, such as--
       ``(i) product appearance;
       ``(ii) environmental responses and tolerances;
       ``(iii) nutrient management;
       ``(iv) pest and disease management; and
       ``(v) enhanced phytonutrient content;
       ``(B) safety;
       ``(C) quality;
       ``(D) yield;
       ``(E) taste; and
       ``(F) shelf life;

[[Page 21504]]

       ``(2) efforts to identify and address threats from invasive 
     species;
       ``(3) efforts to improve agricultural production by 
     developing more technologically efficient and effective 
     applications of water, nutrients, and pesticides;
       ``(4) new innovations and technology, such as enhancing 
     mechanization and reducing reliance on labor; and
       ``(5) production efficiency, productivity, profitability 
     and marketing.
       ``(c) Eligible Entities.--The Secretary may carry out the 
     Initiative through--
       ``(1) Federal agencies;
       ``(2) national laboratories;
       ``(3) colleges and universities;
       ``(4) research institutions and organizations;
       ``(5) private organizations or corporations;
       ``(6) State agricultural experiment stations; and
       ``(7) individuals.
       ``(d) Research Projects.--In carrying out this section, the 
     Secretary shall award grants on a competitive basis.
       ``(e) Administration.--
       ``(1) In general.--For grants awarded under subsection (d) 
     the Secretary shall--
       ``(A) seek and accept proposals for grants;
       ``(B) determine the relevance and merit of proposals 
     through a system of peer review in accordance with section 
     103; and
       ``(C) award grants on the basis of merit, quality, and 
     relevance.
       ``(2) Term.--A grant under this section shall have a term 
     that does not exceed 5 years.
       ``(3) Other conditions.--The Secretary may set such other 
     conditions on the award of a grant under this section as the 
     Secretary determines appropriate.
       ``(f) Buildings and Facilities.--Funds made available under 
     this section shall not be used for the construction of a new 
     building or facility or the acquisition, expansion 
     remodeling, or alteration of an existing building or facility 
     (including site grading and improvement and architect fees).
       ``(g) Funding.--There is authorized to be appropriated 
     $100,000,000 for each of fiscal years 2008 through 2012 to 
     carry out this section.
       ``(h) Additional Funding.--In addition to funds made 
     available under subsection (g), of the funds of the Commodity 
     Credit Corporation, the Secretary shall make available to 
     carry out this section a total of $215,000,000 for fiscal 
     years 2008 through 2012.''.
       (b) Coordination.-- In carrying out this section, the 
     Secretary shall ensure that the Director of the applicable 
     Program Office established under section 7104(a) coordinates 
     projects and activities carried out under this section to 
     ensure, to the maximum extent practicable, that duplication 
     of effort is eliminated or minimized.

     SEC. 7412. OFFICE OF PEST MANAGEMENT POLICY.

       Section 614(f) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by 
     striking ``2007'' and inserting ``2012''.
                         Subtitle E--Other Laws

     SEC. 7501. CRITICAL AGRICULTURAL MATERIALS ACT.

       Section 16(a) of the Critical Agricultural Materials Act (7 
     U.S.C. 178n(a)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7502. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 
                   1994.

       (a) Endowment for 1994 Institutions.--Section 533(b) of the 
     Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 
     301 note; Public Law 103-382) is amended in the first 
     sentence by striking ``2007'' and inserting ``2012''.
       (b) Institutional Capacity Building Grants.--Section 535 of 
     the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note; Public Law 103-382) is amended by striking 
     ``2007'' each place it appears and inserting ``2012''.
       (c) Research Grants.--Section 536(c) of the Equity in 
     Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; 
     Public Law 103-382) is amended in the first sentence by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7503. AGRICULTURAL EXPERIMENT STATION RESEARCH 
                   FACILITIES ACT.

       Section 6(a) of the Research Facilities Act (7 U.S.C. 
     390d(a)) is amended by striking ``2007'' and inserting 
     ``2012''.

     SEC. 7504. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND 
                   TEACHING POLICY ACT AMENDMENTS OF 1985.

       Section 1431 of the National Agricultural Research, 
     Extension, and Teaching Policy Act Amendments of 1985 (Public 
     Law 99-198; 99 Stat. 1556) is amended by striking ``2007'' 
     and inserting ``2012''.

     SEC. 7505. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH 
                   GRANT ACT (NATIONAL RESEARCH INITIATIVE).

       Section 2 of the Competitive, Special, and Facilities 
     Research Grant Act (7 U.S.C. 450i) is amended--
       (1) in subsection (b)(10), by striking ``2007'' and 
     inserting ``2012''; and
       (2) by striking subsection (g).

     SEC. 7506. AGRICULTURAL RISK PROTECTION ACT OF 2000 (CARBON 
                   CYCLE RESEARCH).

       Section 221(g) of the Agricultural Risk Protection Act of 
     2000 (7 U.S.C. 6711(g)) is amended by striking ``2007'' and 
     inserting ``2012''.

     SEC. 7507. RENEWABLE RESOURCES EXTENSION ACT OF 1978.

       (a) Authorization of Appropriations.--Section 6 of the 
     Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is 
     amended by striking ``2007'' and inserting ``2012''.
       (b) Termination Date.--Section 8 of the Renewable Resources 
     Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-
     306) is amended by striking ``2007'' and inserting ``2012''.

     SEC. 7508. NATIONAL AQUACULTURE ACT OF 1980.

       Section 10 of the National Aquaculture Act of 1980 (16 
     U.S.C. 2809) is amended by striking ``2007'' each place it 
     appears and inserting ``2012''.

     SEC. 7509. CONSTRUCTION OF A CHINESE GARDEN AT THE NATIONAL 
                   ARBORETUM.

       The Act of March 4, 1927 (20 U.S.C. 191 et seq.), is 
     amended by adding at the end the following:

     ``SEC. 197. CONSTRUCTION OF A CHINESE GARDEN AT THE NATIONAL 
                   ARBORETUM.

       ``A Chinese Garden may be constructed at the National 
     Arboretum established under this Act with--
       ``(1) funds accepted under the provisions of section 195 
     (20 U.S.C. 195);
       ``(2) authorities provided to the Secretary of Agriculture 
     under section 196 (20 U.S.C. 196); and
       ``(3) appropriations provided for this purpose.''.

     SEC. 7510. PUBLIC EDUCATION REGARDING USE OF BIOTECHNOLOGY IN 
                   PRODUCING FOOD FOR HUMAN CONSUMPTION.

       Section 10802(b) of the Farm Security and Rural Investment 
     Act of 2002 (7 U.S.C. 5921a(b))is amended by striking 
     ``2007'' and inserting ``2012''.

     SEC. 7511. FRESH CUT PRODUCE SAFETY GRANTS.

       (a) In General.--The Secretary may award competitive 
     research and extension grants to eligible entities to enable 
     such entities to design, implement, and evaluate innovative, 
     cost-effective programs to improve and enhance the safety of 
     fresh cut produce.
       (b) Eligible Entities.--To be eligible to receive a grant 
     under subsection (a) an entity shall--
       (1) be a university, college, or other entity designated by 
     the Secretary; and
       (2) have developed partnerships with producers of fresh cut 
     produce.
       (c) Use of Funds.--An entity shall use funds received under 
     a grant under this section to--
       (1) improve sanitation and food safety practices in the 
     processing of fresh cut produce;
       (2) develop improved techniques to monitor and inspect 
     fresh cut produce;
       (3) develop efficient, rapid and sensitive methods to 
     detect contaminants in fresh cut produce;
       (4) determine the sources of contamination in fresh cut 
     produce;
       (5) develop methods to reduce or destroy harmful pathogens 
     before, during, and after processing of fresh cut produce; 
     and
       (6) conduct other research as determined appropriate by the 
     Secretary.
       (d) Matching Funds Required.--The Secretary shall require 
     the recipient of a grant under this section to provide funds 
     or in-kind support from non-Federal sources in an amount at 
     least equal to the amount provided by the Federal Government.
       (e) Coordination.--In carrying out this section, the 
     Secretary shall ensure that the Director of the applicable 
     Program Office established under section 7104(a) coordinates 
     projects and activities carried out under this section to 
     ensure, to the maximum extent practicable, that duplication 
     of effort is eliminated or minimized.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section for each of fiscal years 2008 through 2012.
       (g) Additional Funding.--In addition to funds made 
     available under subsection (f), of the funds of the Commodity 
     Credit Corporation, the Secretary shall make available to 
     carry out this section a total of $25,000,000 for fiscal 
     years 2008 through 2012.

     SEC. 7512. UDC/EFNEP ELIGIBILITY.

       Section 208 of the District of Columbia Public 
     Postsecondary Education Reorganization Act (Public Law 93-
     471) is amended--
       (1) in subsection (b)(2), by striking ``, except'' and all 
     that follows through the period and inserting a period; and
       (2) in subsection (c), by striking ``section 3'' each place 
     it appears and inserting ``section 3(c)''.

     SEC. 7513. SMITH-LEVER ACT.

       Section 3(e)(4) of the Smith-Lever Act (7 U.S.C. 343(e)(4)) 
     is amended--
       (1) in the paragraph heading, by inserting ``and the 
     district of columbia'' after ``areas'';
       (2) in subparagraph (A), by inserting `` and the District 
     of Columbia'' after ``United States'';
       (3) in subparagraph (A), by inserting ``and the District of 
     Columbia'' after ``respectively,''; and
       (4) in subparagraph (B), by inserting ``or the District of 
     Columbia'' after ``area''.

     SEC. 7514. HATCH ACT OF 1987.

       Section 3(d)(4) of the Hatch Act of 1887 (7 U.S.C. 
     351c(d)(4)) is amended--
       (1) in the paragraph heading, by inserting ``and the 
     district of columbia'' after ``areas'';
       (2) in subparagraph (A), by inserting `` and the District 
     of Columbia'' after ``United States'';
       (3) in subparagraph (A), by inserting ``and the District of 
     Columbia'' after ``respectively,''; and
       (4) in subparagraph (B), by inserting ``or the District of 
     Columbia'' after ``area''.
                   Subtitle F--Additional Provisions

     SEC. 7601. MERIT REVIEW OF EXTENSION AND EDUCATIONAL GRANTS.

       Section 103 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7

[[Page 21505]]

     U.S.C. 7613) is amended in subsection (a)(2)(A), by striking 
     ``Cooperative State Research, Education, and Extension 
     Service of the Department'' and inserting ``the National 
     Institute for Food and Agriculture.''.

     SEC. 7602. REVIEW OF PLAN OF WORK REQUIREMENTS.

       (a) Review.--The Secretary shall work with university 
     partners in extension and research to review and identify 
     measures to streamline the submission, reporting under, and 
     implementation of plan of work requirements including those 
     under--
       (1) section 1444 and 1444(d) and 1445(c) of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3221(d) and 3222(c), respectively);
       (2) section 7 of the Hatch Act of 1887 (7 U.S.C. 361g); and
       (3) section 4 of the Smith-Lever Act (7 U.S.C. 344).
       (b) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary shall provide to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report regarding the review carried out under 
     subsection (a). The report shall include recommendations--
       (1) to reduce the administrative burden and workload upon 
     institutions associated with plan of work compliance while 
     meeting Department reporting needs for inputs, outputs, and 
     outcome indicators;
       (2) to streamline the submission and reporting requirements 
     of the plan of work such that it is of practical utility to 
     both the department and the institution; and
       (3) for any legislative changes necessary to carry out the 
     plan of work improvements.
       (c) Consultation.--In carrying out the review and 
     formulating and compiling the recommendations, the Secretary 
     shall consult with the land grant institutions.

     SEC. 7603. MULTISTATE AND INTEGRATION FUNDING.

       (a) Funds Expended on Integration of Research and 
     Extension.--Section 3 of the Hatch Act of 1887 (7 U.S.C. 
     361c) is amended--
       (1) in subsection (i)(2)(B), by striking ``the lesser of'' 
     and inserting ``25 percent''; and
       (2) by striking clauses (i) and (ii).
       (b) Funds Expended on Multistate Cooperative Extension 
     Activities.--Section 3 of the Smith Lever Act (7 U.S.C. 343) 
     is amended--
       (1) in subsection (h)(2)(B), by striking ``the lesser of'' 
     and inserting ``25 percent''; and
       (2) by striking clauses (i) and (ii).

     SEC. 7604. EXPANDED FOOD AND NUTRITION EDUCATION PROGRAM.

       (a) Funding to 1862, 1890, and Insular Area Institutions.--
     Section 1425(c)(2)(B) of the National Agriculture Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3175(c)(2)(B)) is amended--
       (1) in the prefatory material, by striking ``among the 
     States'';
       (2) by striking clause (i) and inserting the following:
       ``(i) $100,000 shall be distributed to each of the land 
     grant colleges and universities;'';
       (3) by redesignating clause (ii) as clause (iii);
       (4) by inserting after clause (i) the following:
       ``(ii) subject to subsection (d), of the remainder, 10 
     percent in fiscal year 2008, 11 percent in fiscal year 2009, 
     12 percent in fiscal year 2010, 13 percent in fiscal year 
     2011, 14 percent in fiscal year 2012, and 15 percent in 
     fiscal year 2013 and each fiscal year thereafter, shall be 
     allocated to each 1890 Institution (as defined in section 2 
     of the Agricultural Research, Extension, and Education Reform 
     Act of 1998) in an amount that bears the same ratio to the 
     total amount to be allocated under this clause as the 
     population of the State living at or below 125 percent of the 
     income poverty guidelines prescribed by the Office of 
     Management and Budget (adjusted pursuant to section 673(2) of 
     the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 
     9902)), bears to the total population of all the States that 
     have 1890 Institutions living at or below 125 percent of the 
     income poverty guidelines, as determined by the last 
     preceding decennial census at the time each such additional 
     amount is first appropriated: Provided, That the total 
     allocated under this clause shall not exceed (I) the amount 
     of the funds appropriated for the conduct of the expanded 
     food and nutrition education program for the fiscal year that 
     are in excess of the amount appropriated for the conduct of 
     the program for the fiscal year ending September 30, 2007, 
     reduced by (II) any amounts expended pursuant to any 
     adjustment under subsection (d); and''; and
       (5) by amending clause (iii), as redesignated--
       (A) by striking ``allocated to each State'' and inserting 
     ``allocated to the institution eligible to receive funds 
     under the Act of July 2, 1862 (and including the appropriate 
     insular area institution) in each State (and the University 
     of the District of Columbia, notwithstanding section 208(c) 
     of Public Law 93-471)''; and
       (B) by striking ``subparagraph.'' and inserting 
     ``subparagraph: Provided, That the total allocated under this 
     clause to the University of the District of Columbia shall 
     not exceed (I) the amount described in the proviso to clause 
     (ii), reduced further by (II) the amount allocated under 
     clause (ii).''.
       (b) Authorization.--Section 1425(c)(3) of the National 
     Agriculture Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3175(c)(3)) is amended by striking 
     ``$83,000,000 for each of fiscal years 1996 though 2007'' and 
     inserting ``$90,000,000 for each of fiscal years 2008 through 
     2014''.
       (c) Effective Date.--The amendments made by this section 
     take effect on October 1, 2007.

     SEC. 7605. GRANTS TO 1890 SCHOOLS TO EXPAND EXTENSION 
                   CAPACITY.

       Section 1417(b)(4) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3152(b)(4)) is amended by striking ``teaching and research'' 
     and inserting ``teaching, research, and extension''.

     SEC. 7606. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND 
                   TECHNOLOGY FELLOWSHIP PROGRAM.

       (a) Establishment.--
       (1) In general.--The Secretary of Agriculture shall 
     establish a fellowship program to be known as the ``Borlaug 
     International Agricultural Science and Technology Fellowship 
     Program,'' to provide fellowships for scientific training to 
     individuals from eligible countries (as described under 
     subsection (b)) who specialize in agricultural education, 
     research, and extension for study in the United States.
       (2) Programs.--The Secretary shall carry out the program 
     established under paragraph (1) through 3 programs designed 
     to assist individual fellowship recipients as follows:
       (A) A Graduate Studies Program in Agriculture to assist 
     individuals who participate in graduate agricultural degree 
     training at a United States institution.
       (B) An Individual Career Improvement Program to assist 
     agricultural scientists from developing countries to upgrade 
     skills and understanding in agricultural science and 
     technology.
       (C) The Borlaug Agricultural Policy Executive Leadership 
     Course to assist senior agricultural policy makers from 
     eligible countries with an initial focus on sub-Saharan 
     Africa and from the newly independent states of the former 
     Soviet Union.
       (b) Eligible Countries.--Developing countries, as 
     determined by the Secretary using a gross national income per 
     capita test, shall be eligible to participate in the program 
     established under this section.
       (c) Purpose of Fellowships.--Fellowships under this section 
     shall promote food security and economic growth in eligible 
     countries by educating a new generation of agricultural 
     scientists, increasing scientific knowledge and collaborative 
     research to improve agricultural productivity, and extending 
     this knowledge to users and their intermediaries in the 
     market place. Fellowships shall support--
       (1) training and collaborative research opportunities 
     through exchanges for entry-level international agricultural 
     research scientists, faculty, and policymakers from eligible 
     countries;
       (2) collaborative research to improve agricultural 
     productivity;
       (3) the transfer of new science and agricultural 
     technologies to strengthen agricultural practice; and
       (4) the reduction of barriers to technology adoption.
       (d) Fellowship Recipients.--
       (1) Eligible candidates.--The Secretary may provide 
     fellowships under the program authorized by this section to 
     individuals from eligible countries who specialize in or have 
     experience in agricultural education, research, extension, or 
     related fields, including individuals from the public and 
     private sectors, and private agricultural producers.
       (2) Candidate identification.--The Secretary shall utilize 
     the expertise of United States land-grant and similar 
     universities, international organizations working in 
     agricultural research and outreach, and national agricultural 
     research organizations to help identify program candidates 
     for fellowships under this section from both the public and 
     private sectors of eligible countries.
       (e) Use of Fellowships.--Fellowships shall promote 
     collaborative programs between agricultural professionals of 
     eligible countries with those of the United States and the 
     international agricultural research system and, as 
     appropriate, with United States entities conducting research. 
     They will be used to support fellowship recipients through 
     the Graduate Studies Program in Agriculture established under 
     subsection (a)(2)(A).
       (f) Program Implementation.--The Secretary shall provide 
     for the management, coordination, evaluation and monitoring 
     of the overall Borlaug International Agricultural Science and 
     Technology Fellowship Program and for the individual programs 
     described in subsection (a)(2), except that the Secretary may 
     contract out to one or more collaborating universities the 
     management of one or more of the fellowship programs.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated without fiscal year limitation such sums 
     as may be necessary to carry out the program established 
     under this section.

     SEC. 7607. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, 
                   TRITICALE, AND BARLEY CAUSED BY FUSARIUM 
                   GRAMINEARUM OR BY TILLETIA INDICA.

       Section 408(e) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by 
     striking ``2007'' and inserting ``2012''.

     SEC. 7608. COST RECOVERY.

       Section 1473A of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319a) 
     is amended by striking ``not exceeding 10 percent of the 
     direct cost'' and inserting ``not exceeding 19 percent of the 
     direct cost''.

[[Page 21506]]



     SEC. 7609. ORGANIC FOOD AND AGRICULTURAL SYSTEMS FUNDING.

       It is the sense of Congress that the Secretary of 
     Agriculture should use a share of Agricultural Research 
     Service's total annual funding for research specific to 
     organic food and agricultural systems that is at least 
     commensurate with the organic sector's market, in order to 
     facilitate the development of this growing sector.   A 
     portion of these funds should be used to disseminate research 
     results through the National Agriculture Library's 
     Alternative Farming Systems Information Center.
                          TITLE VIII--FORESTRY

        Subtitle A--Cooperative Forestry Assistance Act of 1978

Sec. 8001. National priorities for private forest conservation.
Sec. 8002. Long-term, State-wide assessments and strategies for forest 
              resources.
Sec. 8003. Assistance to the Federated States of Micronesia, the 
              Republic of the Marshall Islands, and the Republic of 
              Palau.
Sec. 8004. Changes to Forest Resource Coordinating Committee.
Sec. 8005. Changes to State Forest Stewardship Coordinating Committees.
Sec. 8006. Competition in programs under Cooperative Forestry 
              Assistance Act of 1978.
Sec. 8007. Cooperative forest innovation partnership projects.

                  Subtitle B--Amendments to Other Laws

Sec. 8101. Healthy forest reserve program.
Sec. 8102. Emergency forest restoration program.
Sec. 8103. Office of International Forestry.
Sec. 8104. Rural revitalization technologies.

                  Subtitle C--Miscellaneous Provisions

Sec. 8201. Hispanic-serving institution agricultural land national 
              resources leadership program.
        Subtitle A--Cooperative Forestry Assistance Act of 1978

     SEC. 8001. NATIONAL PRIORITIES FOR PRIVATE FOREST 
                   CONSERVATION.

       Section 2 of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2101) is amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (e) and (f), respectively; and
       (2) by inserting after subsection (b) the following new 
     subsections:
       ``(c) Priorities.--In allocating funds appropriated or 
     otherwise made available under this Act, the Secretary shall 
     focus on the following national private forest conservation 
     priorities, notwithstanding other priorities specified 
     elsewhere in this Act:
       ``(1) Conserving and managing working forest landscapes for 
     multiple values and uses.
       ``(2) Protecting forests from threats, including wildfire, 
     hurricane, tornado, windstorm, snow or ice storm, flooding, 
     drought, invasive species, or insect or disease outbreak, and 
     restoring appropriate forest types in response to such 
     threats.
       ``(3) Enhancing public benefits from private forests, 
     including air and water quality, soil conservation, 
     biological diversity, carbon storage, forest products, 
     forestry-related jobs, production of renewable energy, 
     wildlife and wildlife habitat, and recreation.
       ``(d) Reporting Requirement.--Not later than September 30, 
     2011, the Secretary shall submit to Congress a report 
     describing how funding was used under this Act and through 
     other programs administered by the Secretary to address the 
     national priorities specified in subsection (c) and the 
     outcomes achieved in meeting the national priorities.''.

     SEC. 8002. LONG-TERM, STATE-WIDE ASSESSMENTS AND STRATEGIES 
                   FOR FOREST RESOURCES.

       The Cooperative Forestry Assistance Act of 1978 is amended 
     by inserting after section 2 (16 U.S.C. 2101) the following 
     new section:

     ``SEC. 2A. STATE-WIDE ASSESSMENT AND STRATEGIES FOR FOREST 
                   RESOURCES.

       ``(a) Assessment and Strategies for Forest Resources.--For 
     a State to be eligible to receive funds under the authorities 
     of this Act, the State forester of the State or equivalent 
     State official shall develop and submit to the Secretary, not 
     later than two years after the date of the enactment of the 
     Farm, Nutrition, and Bioenergy Act of 2007, the following:
       ``(1) A State-wide assessment of forest resource 
     conditions, including--
       ``(A) the conditions and trends of forest resources in that 
     State;
       ``(B) the threats to forest lands and resources in that 
     State consistent with the national priorities specified in 
     section 2(c);
       ``(C) any areas or regions of that State that are of 
     priority; and
       ``(D) any areas, known as multi-State areas, that are of 
     priority to more than just that State.
       ``(2) A State-wide forest resource strategy, including--
       ``(A) strategies for addressing threats to forest resources 
     in the State outlined in the assessment required by paragraph 
     (1); and
       ``(B) a description of the resources available to the State 
     forester or equivalent State official from all sources to 
     address the State-wide strategy required by subparagraph (A).
       ``(b) Updating.--The State forester or equivalent State 
     official shall submit the State-wide strategy required by 
     subsection (a)(2) on an annual basis. The State-wide 
     assessment of forest resource conditions required by 
     subsection (a)(1) shall be updated as the Secretary or State 
     Forester or equivalent State official determines to be 
     necessary.
       ``(c) Coordination.--In developing the State-wide 
     assessment and annual strategy under subsection (a), the 
     State forester or equivalent State official shall coordinate 
     with--
       ``(1) the State Forest Stewardship Coordinating Committee 
     established for the State under section 19(b);
       ``(2) the State wildlife agency to incorporate any 
     overlapping priorities included in State wildlife action 
     plans; and
       ``(3) the State Technical Committee.
       ``(d) Funding.--Of the funds available under this Act for a 
     fiscal year, the Secretary may not use more than $10,000,000 
     to implement this section for that fiscal year. Use of funds 
     for implementing this section shall be consistent with the 
     original authorities for such funds.''.

     SEC. 8003. ASSISTANCE TO THE FEDERATED STATES OF MICRONESIA, 
                   THE REPUBLIC OF THE MARSHALL ISLANDS, AND THE 
                   REPUBLIC OF PALAU.

       Section 13(d)(1) of the Cooperative Forestry Act of 1978 
     (16 U.S.C. 2109(d)(1)) is amended by striking ``the Trust 
     Territory of the Pacific Islands,'' and inserting ``the 
     Federated States of Micronesia, the Republic of the Marshall 
     Islands, the Republic of Palau,''.

     SEC. 8004. CHANGES TO FOREST RESOURCE COORDINATING COMMITTEE.

       Section 19 of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2113) is amended by striking subsection (a) 
     and inserting the following new subsection:
       ``(a) Forest Resource Coordinating Committee.--
       ``(1) Establishment.--The Secretary shall establish a 
     committee, to be known as the `Forest Resource Coordinating 
     Committee' (in this section referred to as the `Coordinating 
     Committee'), to coordinate private non-industrial forestry 
     activities within the Department of Agriculture and with the 
     private sector.
       ``(2) Composition.--The Coordinating Committee shall be 
     composed of the following:
       ``(A) The Chief of the Forest Service.
       ``(B) The Chief of the Natural Resources Conservation 
     Service.
       ``(C) The Director of the Farm Service Agency.
       ``(D) The Administrator of the Cooperative State Research, 
     Education, and Extension Service.
       ``(E) A representative from a State Technical Committee 
     established under section 1261 of the Food Security Act of 
     1985 (16 U.S.C. 3861).
       ``(F) Non-Federal representatives appointed by the 
     Secretary to 3 year terms, although initial appointees shall 
     have staggered terms, including the following persons:
       ``(i) At least three State foresters or equivalent State 
     officials from geographically diverse regions of the United 
     States.
       ``(ii) A representative of a State fish and wildlife 
     agency.
       ``(iii) A private non-industrial forest landowner.
       ``(iv) A forest industry representative.
       ``(v) A conservation organization representative.
       ``(vi) A land-grant university or college representative.
       ``(vii) A private forestry consultant.
       ``(viii) A representative of a State fish and wildlife 
     agency.
       ``(ix) Such other persons as determined by the Secretary to 
     be appropriate.
       ``(3) Chairperson.--The Chief of the Forest Service shall 
     serve as chairperson of the Coordinating Committee.
       ``(4) Duties.--The Coordinating Committee shall--
       ``(A) provide direction and coordination of actions within 
     the Department of Agriculture, and coordination with State 
     agencies and the private sector, to effectively address the 
     national priorities specified in section 2(c), with specific 
     focus on private non-industrial forest landowners;
       ``(B) clarify individual agency responsibilities of each 
     agency represented on the Coordinating Committee concerning 
     the national priorities specified in section 2(c), with 
     specific focus on private non-industrial forested land;
       ``(C) provide advice on the allocation of funds, including 
     the competitive funds set-aside by sections 8005 and 8006 of 
     the Farm, Nutrition, and Bioenergy Act of 2007; and
       ``(D) assist the Secretary in developing and reviewing the 
     report required by section 2(d).
       ``(5) Meeting.--The Coordinating Committee shall meet 
     biannually to discuss progress in addressing the national 
     priorities specified in section 2(c) and issues regarding 
     non-industrial private forest land.
       ``(6) Compensation.--
       ``(A) Federal members.--Members of the Coordinating 
     Committee who are full-time officers or employees of the 
     United States shall receive no additional pay, allowances, or 
     benefits by reason of their service on the Committee.
       ``(B) Non-federal members.--Non-federal members of the 
     Coordinating Committee shall serve without pay, but may be 
     reimbursed for reasonable costs incurred while performing 
     their duties on behalf of the Committee.''.

     SEC. 8005. CHANGES TO STATE FOREST STEWARDSHIP COORDINATING 
                   COMMITTEES.

       Section 19(b) of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2113(b)) is amended--
       (1) in paragraph (1)(B)(ii)--
       (A) by striking ``and'' at the end of subclause (VII); and
       (B) by adding at the end the following new subclause:

         ``(IX) the State Technical Committee.''.

       (2) in paragraph (2)(C), by striking ``a Forest Stewardship 
     Plan under paragraph (3)'' and inserting ``the State-wide 
     assessment and strategy

[[Page 21507]]

     regarding forest resource conditions under section 2A'';
       (3) by striking paragraphs (3) and (4); and
       (4) by redesignating paragraphs (5) and (6) as paragraphs 
     (3) and (4), respectively.

     SEC. 8006. COMPETITION IN PROGRAMS UNDER COOPERATIVE FORESTRY 
                   ASSISTANCE ACT OF 1978.

       (a) Competition.--Beginning not later than three years 
     after the date of the enactment of this Act, the Secretary of 
     Agriculture shall competitively allocate a portion, to be 
     determined by the Secretary, of the funds available under the 
     Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2101 
     et seq.) to State foresters or equivalent State officials.
       (b) Determination.--In determining the competitive 
     allocation of funds under subsection (a), the Secretary shall 
     consult with the Forest Resource Coordinating Committee 
     established by section 19(a) of the Cooperative Forestry 
     Assistance Act of 1978 (16 U.S.C. 2113(a)).
       (c) Priority.--The Secretary shall give priority for 
     funding to States for which the strategies submitted under 
     section 2A(a)(2) of the Cooperative Forestry Assistance Act 
     of 1978 will best promote the national priorities specified 
     in section 2(c) of such Act.

     SEC. 8007. COOPERATIVE FOREST INNOVATION PARTNERSHIP 
                   PROJECTS.

        (a) Cooperative Forest Innovation Partnership Projects.--
     The Secretary of Agriculture may competitively allocate not 
     more than 5 percent of funding available under the 
     Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2101 
     et seq.) to support innovative national, regional, or local 
     education, outreach, or technology transfer projects that the 
     Secretary determines would substantially increase the ability 
     of the Department of Agriculture to address the national 
     priorities specified in section 2(c) of such Act.
       (b) Eligibility.--Notwithstanding the eligibility 
     limitations contained within the Cooperative Forestry 
     Assistance Act of 1978, any State or local government, Indian 
     tribe, land-grant college or university, or private entity 
     shall be eligible for funds under subsection (a).
       (c) Cost-Share Requirement.--In carrying out subsection 
     (a), the Secretary shall not cover more than 50 percent of 
     the total cost of a project under such subsection. In 
     calculating the total cost of a project and contributions 
     made with regard to the project, the Secretary shall include 
     in-kind contributions.
                  Subtitle B--Amendments to Other Laws

     SEC. 8101. HEALTHY FOREST RESERVE PROGRAM.

       Section 508 of the Healthy Forests Restoration Act of 2003 
     (16 U.S.C. 6578) is amended to read as follows:

     ``SEC. 508. FUNDING.

       ``Notwithstanding any other provision of law, of the funds 
     of the Commodity Credit Corporation, the Secretary shall make 
     available to carry out this title $17,000,000 for each of 
     fiscal years 2008 through 2012. Such funds shall remain 
     available until expended.''.

     SEC. 8102. EMERGENCY FOREST RESTORATION PROGRAM.

       (a) Establishment.--Title IV of the Agricultural Credit Act 
     of 1978 (16 U.S.C. 2201-2205) is amended--
       (1) by redesignating sections 404, 405, and 406 as sections 
     405, 406, and 407, respectively; and
       (2) by inserting after section 403 the following new 
     section:

     ``SEC. 404. EMERGENCY FOREST RESTORATION PROGRAM.

       ``(a) Availability of Assistance.--The Secretary of 
     Agriculture is authorized to provide financial and technical 
     assistance to an owner of non-industrial private forest lands 
     to assist with developing and implementing an approved plan 
     in accordance with subsection (c)(2).
       ``(b) Amount of Assistance.--
       ``(1) Cost share.--Payments under subsection (a) may not 
     cover more than 75 percent of the total cost of measures 
     implemented pursuant to an approved plan in accordance with 
     subsection (c)(2).
       ``(2) Annual limit.--An owner of non-industrial private 
     forest lands may not receive more than $50,000 per year under 
     this section.
       ``(c) Eligibility.--To be eligible for assistance under 
     this section, a landowner must--
       ``(1) have suffered a loss of, or damage to, non-industrial 
     private forest land due to events, including wildfires, 
     hurricanes, drought, windstorms, insect and disease, ice 
     storms, or invasive species, as determined by the Secretary; 
     and
       ``(2) develop a plan, in cooperation with the Secretary, 
     and agree to implement the plan during the 10-year period 
     beginning on the date of the loss, that--
       ``(A) provides for reforestation, rehabilitation, and 
     related measures for the non-industrial private forest land;
       ``(B) restores the land and related natural resources;
       ``(C) uses best management practices on the forest land, in 
     accordance with the best management practices as determined 
     by the Secretary; and
       ``(D) incorporates good stewardship and conservation 
     practices on the land, while maintaining the land in a 
     forested state.
       ``(d) Non-Industrial Private Forest Land Defined.--In this 
     section, the term `non-industrial private forest land' means 
     rural lands, as determined by the Secretary, that--
       ``(1) have existing tree cover or had tree cover within the 
     preceding 10 years; and
       ``(2) are owned by any non-industrial private individual, 
     group, association, corporation, Indian tribe, or other 
     private legal entity so long as the individual, group, 
     association, corporation, tribe, or entity has definitive 
     decision-making authority over the lands.''.
       (b) Regulations.--Not later than one year after the date of 
     the enactment of this Act, the Secretary of Agriculture shall 
     issue regulations to carry out section 404 of the 
     Agricultural Credit Act of 1978, as added by subsection (a).

     SEC. 8103. OFFICE OF INTERNATIONAL FORESTRY.

       Section 2405(d) of the Global Climate Change Prevention Act 
     of 1990 (7 U.S.C. 6704(d)) is amended by striking ``2007'' 
     and inserting ``2012''.

     SEC. 8104. RURAL REVITALIZATION TECHNOLOGIES.

       Section 2371(d)(2) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 6601(d)(2)) is amended by 
     striking ``2004 through 2008'' and inserting ``2008 through 
     2012''.
                  Subtitle C--Miscellaneous Provisions

     SEC. 8201. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND 
                   NATIONAL RESOURCES LEADERSHIP PROGRAM.

       (a) Grant Authority.--The Secretary of Agriculture may make 
     grants, on a competitive basis, to Hispanic-serving 
     institutions for the purpose of establishing an undergraduate 
     scholarship program to assist in the recruitment, retention, 
     and training of Hispanics and other under-represented groups 
     in forestry and related fields.
       (b) Use of Grant Funds.--Grants made under this section 
     shall be used to recruit, retain, train, and develop 
     professionals to work in forestry and related fields with 
     Federal agencies, such as the Forest Service, State agencies, 
     and private-sector entities.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary for each of fiscal years 
     2008 through 2012 such sums as may be necessary to carry out 
     this section.
                            TITLE IX--ENERGY
Sec. 9001. Table of contents.
Sec. 9002. Federal procurement of biobased products.
Sec. 9003. Loan guarantees for biorefineries and biofuel production 
              plants.
Sec. 9004. Energy audit and renewable energy development program.
Sec. 9005. Renewable energy systems and energy efficiency improvements.
Sec. 9006. Biomass Research and Development Act of 2000.
Sec. 9007. Adjustments to the bioenergy program.
Sec. 9008. Research, extension, and educational programs on biobased 
              energy technologies and products.
Sec. 9009. Energy Council of the Department of Agriculture.
Sec. 9010. Farm energy production pilot program.
Sec. 9011. Rural energy self-sufficiency initiative.
Sec. 9012. Agricultural biofuels from biomass internship pilot program.
Sec. 9013. Feedstock flexibility program for bioenergy producers.
Sec. 9014. Dedicated ethanol pipeline feasibility studies.
Sec. 9015. Biomass inventory report.
Sec. 9016. Future farmsteads program.
Sec. 9017. Sense of Congress on renewable energy.

     SEC. 9001. TABLE OF CONTENTS.

       Title IX of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 8101 et seq.) is amended by inserting before 
     section 9001 the following new section:

     ``SEC. 9000. TABLE OF CONTENTS.

       ``The table of contents of this title is as follows:

                          ``TITLE IX - ENERGY

``Sec. 9000. Short title; table of contents.
``Sec. 9001. Definitions.
``Sec. 9002. Federal procurement of biobased products.
``Sec. 9003. Biorefinery development grants.
``Sec. 9004. Biodiesel fuel education program.
``Sec. 9005. Energy audit and renewable energy development program.
``Sec. 9006. Rural energy for America program.
``Sec. 9007. Hydrogen and fuel cell technologies.
``Sec. 9008. Biomass Research and Development Act of 2000.
``Sec. 9009. Cooperative research and extension projects.
``Sec. 9010. Continuation of bioenergy program.
``Sec. 9011. Research, extension, and educational programs on biobased 
              energy technologies and products.
``Sec. 9012. Energy Council of the Department of Agriculture.
``Sec. 9013. Farm energy production pilot program.
``Sec. 9014. Rural energy self-sufficiency initiative.
``Sec. 9015. Agricultural Biofuels from Biomass Internship Pilot 
              Program.
``Sec. 9016. Feedstock flexibility program for bioenergy producers.''.

     SEC. 9002. FEDERAL PROCUREMENT OF BIOBASED PRODUCTS.

       (a) Composition of Biobased Products.--Section 9002(c)(1) 
     of the Farm Security and Rural Investment Act of 2002 (7 
     U.S.C. 8102(c)(1)) is amended by inserting ``, composed of at 
     least five percent of intermediate ingredients and feedstocks 
     (such as biopolymers, methyl soyate, and soy polyols) as 
     designated by the Secretary,'' after ``highest percentage of 
     biobased products practicable''.
       (b) Procurement Guideline Considerations.--Section 
     9002(e)(2)(B) of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C.

[[Page 21508]]

     8102(e)(2)(B)) is amended by striking ``life cycle costs'' 
     and inserting ``information on life cycle costs if such 
     information is appropriate and available''.
       (c) Labeling Requirements and Revised Deadline.--Section 
     9002(h) of the Farm Security and Rural Investment Act of 2002 
     (7 U.S.C. 8102(h)) is amended--
       (1) in paragraph (2)--
       (A) by striking ``Within one year after the date of 
     enactment of this Act'' and inserting ``Not later than 90 
     days after the date of enactment of the [Farm, Nutrition, and 
     Bioenergy Act of 2007],''; and
       (B) by adding at the end the following: ``Criteria shall be 
     issued for finished products and intermediate ingredients and 
     feedstocks.'';
       (2) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively, and inserting after paragraph (2) 
     the following:
       ``(3) Consultation.--In developing the eligibility criteria 
     for the labeling program under this section, the Secretary 
     shall consult with other Federal agencies and with non-
     governmental groups with an interest in biobased products 
     including small and large producers of biobased materials and 
     products, industry, trade organizations, academia, consumer 
     organizations, and environmental organizations.''.
       (d) Authorization of Appropriations.--
       (1) In general.--Paragraph (1) of section 9002(k) of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     8102(k)) is amended to read as follows:
       ``(1) Authorization of appropriations.--
       ``(A) Federal procurement.--There are authorized to be 
     appropriated $1,000,000 for each of fiscal years 2008 through 
     2013 to implement the provisions of this section other than 
     subsection (h).
       ``(B) Labeling.--There are authorized to be appropriated 
     $1,000,000 for each of fiscal years 2008 through 2013 to 
     implement subsection (h) of this section.''.
       (2) Funding for testing of biobased products.--Paragraph 
     (2)(A) of such section is amended by striking ``$1,000,000 
     for each of fiscal years 2002 through 2007'' and inserting 
     ``$2,000,000 for each of fiscal years 2008 through 2013''.
       (e) Report Requirements.--
       (1) Report by agencies to administrator for federal 
     procurement policy.--Subsection (f) of section 9002 of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     8102) is amended--
       (A) by striking ``The Office of'' and inserting ``(1) The 
     Administrator for''; and
       (B) by adding at the end the following new paragraph:
       ``(2) To assist the Administrator for Federal Procurement 
     Policy in preparing the report to Congress required under 
     paragraph (1), each procuring agency each year shall submit 
     to the Administrator a report covering the following:
       ``(A) Actions taken to implement subsections (c), (d), and 
     (g) of this section.
       ``(B) The results of the annual review and monitoring 
     program established under subsection (g)(2)(C).
       ``(C) The number of contracts entered into by the agency 
     during the year covered by the report that include the 
     procurement of biobased products.
       ``(D) A list of the biobased products procured by the 
     agency during the year covered by the report.''.
       (2) Report by secretary to congress on implementation of 
     section.--Section 9002 of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 8102) is amended by adding 
     at the end the following new subsection:
       ``(l) Report by Secretary to Congress on Implementation of 
     Section.--Not later than six months after the date of the 
     enactment of the Farm, Nutrition, and Bioenergy Act of 2007, 
     and each year thereafter, the Secretary shall submit to 
     Congress a report on the implementation of this section. The 
     report shall include the following:
       ``(1) A comprehensive management plan defining tasks, 
     milestones, and funding allocations for fully implementing 
     this section.
       ``(2) A list of items designated under subsection (e)(1)(A) 
     whose procurement will carry out the objectives of this 
     section, with associated cost and performance data.
       ``(3) Information on the current status of implementation 
     of the procurement preference under this section, including 
     the procurement program of each Federal agency under 
     subsection (g), and the voluntary labeling program under 
     subsection (h).''.
       (f) Repeal of Subsection.--Subsection (b) of section 9002 
     of the Farm Security and Rural Investment Act of 2002 (7 
     U.S.C. 8102(b)) is hereby repealed.

     SEC. 9003. LOAN GUARANTEES FOR BIOREFINERIES AND BIOFUEL 
                   PRODUCTION PLANTS.

       Section 9003 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 8103) is amended--
       (1) in the section heading, by inserting ``; loan 
     guarantees for biorefineries and biofuel production plants'' 
     after ``grants'';
       (2) in subsection (b)(2)(A), by striking ``and'' the 1st 
     place it appears and inserting ``or'';
       (3) in subsection (c), by redesignating subsections (d) 
     through (h) as subsections (e) through (i), respectively, and 
     inserting after subsection (c) the following:
       ``(d) Loan Guarantees.--
       ``(1) In general.--The Secretary shall make loan guarantees 
     to eligible entities to assist in paying the cost of 
     development and construction of biorefineries and biofuel 
     production plants (including retrofitting) to carry out 
     projects to demonstrate the commercial viability of 1 or more 
     processes for converting biomass to fuels or chemicals.
       ``(2) Limitations.--
       ``(A) Maximum percentage of loan guaranteed.--A loan 
     guarantee under paragraph (1) shall be for not more than 90 
     percent of the principal and interest due on the loan.
       ``(B) Total amounts guaranteed.--The total amount of 
     principal and interest guaranteed under paragraph (1) shall 
     not exceed--
       ``(i) $1,000,000,000, in the case of loans valued at not 
     more than $100,000,000; or
       ``(ii) $1,000,000,000, in the case of loans valued at more 
     than $100,000,000 but not more than $250,000,000.
       ``(C) Maximum term of loan guaranteed.--The Secretary shall 
     determine the maximum term of a loan guarantee provided under 
     paragraph (1).'';
       (4) in subsection (f) (as so redesignated)--
       (A) in paragraph (2)(B)--
       (i) by striking ``and'' at the end of clause (viii);
       (ii) by striking the period at the end of clause (ix) and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(x) The level of local ownership.''; and
       (B) by adding at the end the following:
       ``(3) Priority in awarding loan guarantees.--In selecting 
     projects to receive loan guarantees under subsection (d), the 
     Secretary shall give priority to projects based on the 
     criteria set forth in paragraph (2)(B) of this subsection.''; 
     and
       (5) in subsection (i) (as so redesignated), by striking 
     ``2007'' and inserting ``2012''.

     SEC. 9004. ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT 
                   PROGRAM.

       Section 9005(i) of the Farm Security and Rural Investment 
     Act of 2002 (7 U.S.C. 8105) is amended by striking ``2007'' 
     and inserting ``2012''.

     SEC. 9005. RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY 
                   IMPROVEMENTS.

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

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

       (2) in subsection (a)--
       (A) in the matter preceding paragraph (1), by inserting ``, 
     other agricultural producer'' after ``rancher'';
       (B) in paragraph (1), by striking ``and'' at the end;
       (C) in paragraph (2), by striking the period and inserting 
     ``; and''; and
       (D) by adding at the end the following new paragraph:
       ``(3) produce and sell electricity generated by new 
     renewable energy systems.'';
       (3) in subsection (b), by inserting ``, other agricultural 
     producer'' after ``rancher'';
       (4) in subsection (c)--
       (A) in paragraph (1)--
       (i) in subparagraph (B), by striking ``50 percent'' and 
     inserting ``75 percent''; and
       (ii) by redesignating subparagraph (B) as subparagraph (C) 
     and inserting after subparagraph (A) the following:
       ``(B) Loan guarantees.--
       ``(i) Maximum amount.--The amount of a loan guaranteed 
     under this section shall not exceed $25,000,000.
       ``(ii) Maximum percentage.--A loan guaranteed under this 
     section shall not exceed 75 percent of the cost of the 
     activity funded under subsection (a).''; and
       (B) by adding at the end the following new paragraph:
       ``(3) Prioritization.--The Secretary shall give the 
     greatest priority for grants under subsection (a) to 
     activities for which the least percentage of the total cost 
     of such activities is requested by the farmer, rancher, other 
     agricultural producer, or rural small business.''.
       (5) by redesignating subsections (e) and (f) as subsection 
     (g) and (h), respectively; and
       (6) by inserting after subsection (d) the following new 
     subsections:
       ``(e) Feasibility Studies.--
       ``(1) In general.--The Secretary may provide assistance to 
     a farmer, rancher, other agricultural producer, or rural 
     small business to conduct a feasibility study of a project 
     for which assistance may be provided under this section.
       ``(2) Limitation.--The Secretary shall use not more than 10 
     percent of the funds made available to carry out this section 
     to provide assistance described in paragraph (1).
       ``(3) Criteria.--The Secretary shall issue regulations 
     establishing criteria for the receipt of assistance under 
     this subsection.
       ``(4) Avoidance of duplicative assistance.--An farmer, 
     rancher, other agricultural producer, or rural small business 
     that receives assistance to carry out a feasibility study for 
     a project under this subsection shall not be eligible for 
     assistance to carry out a feasibility study for the project 
     under any other provision of law.
       ``(f) Small Activities.--
       ``(1) Limitation on use of funds.--The Secretary shall use 
     not less than 15 percent of the funds made available under 
     subsection (h) to provide grants for activities that have a 
     cost of $50,000 or less.
       ``(2) Exception.--Beginning on the first day of the third 
     quarter of a fiscal year, the limitation on the use of funds 
     under paragraph (1) shall not apply to funds made available 
     under subsection (h) for such fiscal year.''.

     SEC. 9006. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.

       (a) Restatement of Act.--Section 9008 of the Farm Security 
     and Rural Investment Act of 2002 (116 Stat. 486) is amended 
     to read as follows:

[[Page 21509]]



     ``SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.

       ``(a) Short Title.--This section may be cited as the 
     `Biomass Research and Development Act of 2000'.
       ``(b) Findings.--Congress finds that--
       ``(1) conversion of biomass into biobased industrial 
     products offers outstanding potential for benefit to the 
     national interest through--
       ``(A) improved strategic security and balance of payments;
       ``(B) healthier rural economies;
       ``(C) improved environmental quality;
       ``(D) near-zero net greenhouse gas emissions;
       ``(E) technology export; and
       ``(F) sustainable resource supply;
       ``(2) the key technical challenges to be overcome in order 
     for biobased industrial products to be cost-competitive are 
     finding new technology and reducing the cost of technology 
     for converting biomass into desired biobased industrial 
     products;
       ``(3) biobased fuels have the clear potential to be 
     sustainable, low cost, and high performance fuels that are 
     compatible with both current and future transportation 
     systems and provide near-zero net greenhouse gas emissions;
       ``(4) biobased chemicals have the clear potential for 
     environmentally benign product life cycles;
       ``(5) biobased power can--
       ``(A) provide environmental benefits;
       ``(B) promote rural economic development; and
       ``(C) diversify energy resource options;
       ``(6) many biomass feedstocks suitable for industrial 
     processing show the clear potential for sustainable 
     production, in some cases resulting in improved soil 
     fertility and carbon sequestration;
       ``(7)(A) grain processing mills are biorefineries that 
     produce a diversity of useful food, chemical, feed, and fuel 
     products; and
       ``(B) technologies that result in further diversification 
     of the range of value-added biobased industrial products can 
     meet a key need for the grain processing industry;
       ``(8)(A) cellulosic feedstocks are attractive because of 
     their low cost and widespread availability; and
       ``(B) research resulting in cost-effective technology to 
     overcome the recalcitrance of cellulosic biomass would allow 
     biorefineries to produce fuels and bulk chemicals on a very 
     large scale, with a commensurately large realization of the 
     benefit described in paragraph (1);
       ``(9) research into the fundamentals to understand 
     important mechanisms of biomass conversion can be expected to 
     accelerate the application and advancement of biomass 
     processing technology by--
       ``(A) increasing the confidence and speed with which new 
     technologies can be scaled up; and
       ``(B) giving rise to processing innovations based on new 
     knowledge;
       ``(10) the added utility of biobased industrial products 
     developed through improvements in processing technology would 
     encourage the design of feedstocks that would meet future 
     needs more effectively;
       ``(11) the creation of value-added biobased industrial 
     products would create new jobs in construction, 
     manufacturing, and distribution, as well as new higher-valued 
     exports of products and technology;
       ``(12)(A) because of the relatively short-term time horizon 
     characteristic of private sector investments, and because 
     many benefits of biomass processing are in the national 
     interest, it is appropriate for the Federal Government to 
     provide precommercial investment in fundamental research and 
     research-driven innovation in the biomass processing area; 
     and
       ``(B) such an investment would provide a valuable 
     complement to ongoing and past governmental support in the 
     biomass processing area; and
       ``(13) several prominent studies, including studies by the 
     President's Committee of Advisors on Science and Technology 
     and the National Research Council--
       ``(A) support the potential for large research-driven 
     advances in technologies for production of biobased 
     industrial products as well as associated benefits; and
       ``(B) document the need for a focused, integrated, and 
     innovation-driven research effort to provide the appropriate 
     progress in a timely manner.
       ``(c) Definitions.--In this section:
       ``(1) Advisory committee.--The term `Advisory Committee' 
     means the Biomass Research and Development Technical Advisory 
     Committee established by this section.
       ``(2) Biobased fuel.--The term `biobased fuel' means any 
     transportation fuel produced from biomass.
       ``(3) Biobased product.--The term `biobased product' means 
     an industrial product (including chemicals, materials, and 
     polymers) produced from biomass, or a commercial or 
     industrial product (including animal feed and electric power) 
     derived in connection with the conversion of biomass to fuel.
       ``(4) Biomass.--The term `biomass' means any organic matter 
     that is available on a renewable or recurring basis, 
     including agricultural crops and trees, wood and wood wastes 
     and residues, plants (including aquatic plants), grasses, 
     residues, fibers, and animal wastes, municipal wastes, and 
     other waste materials.
       ``(5) Board.--The term `Board' means the Biomass Research 
     and Development Board established by this section.
       ``(6) Demonstration.--The term `demonstration' means 
     demonstration of technology in a pilot plant or semi-works 
     scale facility.
       ``(7) Initiative.--The term `Initiative' means the Biomass 
     Research and Development Initiative established under this 
     section.
       ``(8) Institution of higher education.--The term 
     `institution of higher education' has the meaning given the 
     term in section 102(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1002(a)).
       ``(9) National laboratory.--The term `National Laboratory' 
     has the meaning given that term in section 2 of the Energy 
     Policy Act of 2005.
       ``(10) Point of contact.--The term `point of contact' means 
     a point of contact designated under this section.
       ``(d) Cooperation and Coordination in Biomass Research and 
     Development.--
       ``(1) In general.--The Secretary of Agriculture and the 
     Secretary of Energy shall cooperate with respect to, and 
     coordinate, policies and procedures that promote research and 
     development leading to the production of biobased fuels and 
     biobased products.
       ``(2) Points of contact.--
       ``(A) In general.--To coordinate research and development 
     programs and activities relating to biobased fuels and 
     biobased products that are carried out by their respective 
     Departments--
       ``(i) the Secretary of Agriculture shall designate, as the 
     point of contact for the Department of Agriculture, an 
     officer of the Department of Agriculture appointed by the 
     President to a position in the Department before the date of 
     the designation, by and with the advice and consent of the 
     Senate; and
       ``(ii) the Secretary of Energy shall designate, as the 
     point of contact for the Department of Energy, an officer of 
     the Department of Energy appointed by the President to a 
     position in the Department before the date of the 
     designation, by and with the advice and consent of the 
     Senate.
       ``(B) Duties.--The points of contact shall jointly--
       ``(i) assist in arranging interlaboratory and site-specific 
     supplemental agreements for research and development projects 
     relating to biobased fuels and biobased products;
       ``(ii) serve as cochairpersons of the Board;
       ``(iii) administer the Initiative; and
       ``(iv) respond in writing to each recommendation of the 
     Advisory Committee made under subsection (f).
       ``(e) Biomass Research and Development Board.--
       ``(1) Establishment.--There is established the Biomass 
     Research and Development Board, which shall supersede the 
     Interagency Council on Biobased Products and Bioenergy 
     established by Executive Order No. 13134, to coordinate 
     programs within and among departments and agencies of the 
     Federal Government for the purpose of promoting the use of 
     biobased fuels and biobased products by--
       ``(A) maximizing the benefits deriving from Federal grants 
     and assistance; and
       ``(B) bringing coherence to Federal strategic planning.
       ``(2) Membership.--The Board shall consist of--
       ``(A) the point of contact of the Department of Energy 
     designated under subsection (d), who shall serve as 
     cochairperson of the Board;
       ``(B) the point of contact of the Department of Agriculture 
     designated under subsection (d), who shall serve as 
     cochairperson of the Board;
       ``(C) a senior officer of each of the Department of the 
     Interior, the Environmental Protection Agency, the National 
     Science Foundation, and the Office of Science and Technology 
     Policy, each of whom shall--
       ``(i) be appointed by the head of the respective agency; 
     and
       ``(ii) have a rank that is equivalent to the rank of the 
     points of contact; and
       ``(D) at the option of the Secretary of Agriculture and the 
     Secretary of Energy, other members appointed by the 
     Secretaries (after consultation with the members described in 
     subparagraphs (A) through (C)).
       ``(3) Duties.--The Board shall--
       ``(A) coordinate research and development activities 
     relating to biobased fuels and biobased products--
       ``(i) between the Department of Agriculture and the 
     Department of Energy; and
       ``(ii) with other departments and agencies of the Federal 
     Government;
       ``(B) provide recommendations to the points of contact 
     concerning administration of this title;
       ``(C) ensure that--
       ``(i) solicitations are open and competitive with awards 
     made annually; and
       ``(ii) objectives and evaluation criteria of the 
     solicitations are clearly stated and minimally prescriptive, 
     with no areas of special interest; and
       ``(D) ensure that the panel of scientific and technical 
     peers assembled under subsection (g) to review proposals is 
     composed predominantly of independent experts selected from 
     outside the Departments of Agriculture and Energy.
       ``(4) Funding.--Each agency represented on the Board is 
     encouraged to provide funds for any purpose under this 
     section.
       ``(5) Meetings.--The Board shall meet at least quarterly to 
     enable the Board to carry out the duties of the Board under 
     paragraph (3).
       ``(f) Biomass Research and Development Technical Advisory 
     Committee.--
       ``(1) Establishment.--There is established the Biomass 
     Research and Development Technical Advisory Committee, which 
     shall supersede the Advisory Committee on Biobased Products 
     and Bioenergy established by Executive Order No. 13134--

[[Page 21510]]

       ``(A) to advise the Secretary of Energy, the Secretary of 
     Agriculture, and the points of contact concerning--
       ``(i) the technical focus and direction of requests for 
     proposals issued under the Initiative; and
       ``(ii) procedures for reviewing and evaluating the 
     proposals;
       ``(B) to facilitate consultations and partnerships among 
     Federal and State agencies, agricultural producers, industry, 
     consumers, the research community, and other interested 
     groups to carry out program activities relating to the 
     Initiative; and
       ``(C) to evaluate and perform strategic planning on program 
     activities relating to the Initiative.
       ``(2) Membership.--
       ``(A) In general.--The Advisory Committee shall consist 
     of--
       ``(i) an individual affiliated with the biofuels industry;
       ``(ii) an individual affiliated with the biobased 
     industrial and commercial products industry;
       ``(iii) an individual affiliated with an institution of 
     higher education who has expertise in biobased fuels and 
     biobased products;
       ``(iv) two prominent engineers or scientists from 
     government or academia who have expertise in biobased fuels 
     and biobased products;
       ``(v) an individual affiliated with a commodity trade 
     association;
       ``(vi) 2 individuals affiliated with an environmental or 
     conservation organization;
       ``(vii) an individual associated with State government who 
     has expertise in biobased fuels and biobased products;
       ``(viii) an individual with expertise in energy and 
     environmental analysis;
       ``(ix) an individual with expertise in the economics of 
     biobased fuels and biobased products;
       ``(x) an individual with expertise in agricultural 
     economics;
       ``(xi) an individual with expertise in agronomy, crop 
     science, or soil science; and
       ``(xii) at the option of the points of contact, other 
     members.
       ``(B) Appointment.--The members of the Advisory Committee 
     shall be appointed by the points of contact.
       ``(3) Duties.--The Advisory Committee shall--
       ``(A) advise the points of contact with respect to the 
     Initiative; and
       ``(B) evaluate whether, and make recommendations in writing 
     to the Board to ensure that--
       ``(i) funds authorized for the Initiative are distributed 
     and used in a manner that is consistent with the objectives, 
     purposes, and considerations of the Initiative;
       ``(ii) solicitations are open and competitive with awards 
     made annually and that objectives and evaluation criteria of 
     the solicitations are clearly stated and minimally 
     prescriptive, with no areas of special interest;
       ``(iii) the points of contact are funding proposals under 
     this title that are selected on the basis of merit, as 
     determined by an independent panel of scientific and 
     technical peers predominantly from outside the Departments of 
     Agriculture and Energy; and
       ``(iv) activities under this section are carried out in 
     accordance with this section.
       ``(4) Coordination.--To avoid duplication of effort, the 
     Advisory Committee shall coordinate its activities with those 
     of other Federal advisory committees working in related 
     areas.
       ``(5) Meetings.--The Advisory Committee shall meet at least 
     quarterly to enable the Advisory Committee to carry out the 
     duties of the Advisory Committee.
       ``(6) Terms.--Members of the Advisory Committee shall be 
     appointed for a term of 3 years, except that--
       ``(A) one-third of the members initially appointed shall be 
     appointed for a term of 1 year; and
       ``(B) one-third of the members initially appointed shall be 
     appointed for a term of 2 years.
       ``(g) Biomass Research and Development Initiative.--
       ``(1) In general.--The Secretary of Agriculture and the 
     Secretary of Energy, acting through their respective points 
     of contact and in consultation with the Board, shall 
     establish and carry out a Biomass Research and Development 
     Initiative under which competitively awarded grants, 
     contracts, and financial assistance are provided to, or 
     entered into with, eligible entities to carry out research 
     on, and development and demonstration of, biobased fuels and 
     biobased products, and the methods, practices and 
     technologies, for their production.
       ``(2) Objectives.--The objectives of the Initiative are to 
     develop--
       ``(A) technologies and processes necessary for abundant 
     commercial production of biobased fuels at prices competitive 
     with fossil fuels;
       ``(B) high-value biobased products--
       ``(i) to enhance the economic viability of biobased fuels 
     and power;
       ``(ii) as substitutes for petroleum-based feedstocks and 
     products; and
       ``(iii) to enhance the value of coproducts arise from such 
     technologies and processes; and
       ``(C) a diversity of sustainable domestic sources of 
     biomass for conversion to biobased fuels and biobased 
     products.
       ``(3) Purposes.--The purposes of the Initiative are--
       ``(A) to increase the energy security of the United States;
       ``(B) to create jobs and enhance the economic development 
     of the rural economy;
       ``(C) to enhance the environment and public health; and
       ``(D) to diversify markets for raw agricultural and 
     forestry products.
       ``(4) Technical areas.--To advance the objectives and 
     purposes of the Initiative, the Secretary of Agriculture and 
     the Secretary of Energy, in consultation with the 
     Administrator of the Environmental Protection Agency and 
     heads of other appropriate departments and agencies (referred 
     to in this subsection as the `Secretaries'), shall direct 
     research, development, and commercial applications toward--
       ``(A) feedstocks and feedstock systems relevant to 
     production of raw materials for conversion to biobased fuels 
     and biobased products, including--
       ``(i) development of advanced and dedicated crops and other 
     biomass sources with desired features, including enhanced 
     productivity, broader site range, low requirements for 
     chemical inputs, and enhanced processing;
       ``(ii) advanced crop production methods to achieve the 
     features described in clause (i);
       ``(iii) feedstock harvest, handling, transport, and 
     storage;
       ``(iv) strategies for integrating feedstock production into 
     existing managed land; and
       ``(v) improving the value and quality of coproducts, 
     including materials used for animal feeding;
       ``(B) overcoming recalcitrance of cellulosic biomass 
     through developing technologies for converting cellulosic 
     biomass into intermediates that can subsequently be converted 
     into biobased fuels and biobased products, including--
       ``(i) pretreatment in combination with enzymatic or 
     microbial hydrolysis;
       ``(ii) thermochemical approaches, including gasification 
     and pyrolysis; and
       ``(iii) self-processing crops that express enzymes capable 
     of degrading cellulosic biomass;
       ``(C) product diversification through technologies relevant 
     to production of a range of biobased products (including 
     chemicals, animal feeds, and cogenerated power) that 
     eventually can increase the feasibility of fuel production in 
     a biorefinery, including--
       ``(i) catalytic processing, including thermochemical fuel 
     production;
       ``(ii) metabolic engineering, enzyme engineering, and 
     fermentation systems for biological production of desired 
     products, coproducts, or cogeneration of power;
       ``(iii) product recovery;
       ``(iv) power production technologies;
       ``(v) integration into existing biomass processing 
     facilities, including starch ethanol plants, sugar processing 
     or refining plants, paper mills, and power plants; and
       ``(vi) enhancement of products and coproducts, including 
     dried distillers grains (including substantially elevated 
     starch content, increased oil content, improved fatty acid 
     profiles, and improved resistance to mold and mycotoxins; and
       ``(D) analysis that provides strategic guidance for the 
     application of biomass technologies in accordance with 
     realization of improved sustainability and environmental 
     quality, cost effectiveness, security, and rural economic 
     development, usually featuring system-wide approaches.
       ``(5) Additional considerations.--Within the technical 
     areas described in paragraph (4), and in addition to 
     advancing the purposes described in paragraph (3) and the 
     objectives described in paragraph (2), the Secretaries shall 
     support research and development--
       ``(A) to create continuously expanding opportunities for 
     participants in existing biofuels production by seeking 
     synergies and continuity with current technologies and 
     practices, such as improvements in dried distillers grains as 
     a bridge feedstock;
       ``(B) to maximize the environmental, economic, and social 
     benefits of production of biobased fuels and biobased 
     products on a large scale through life-cycle economic and 
     environmental analysis and other means; and
       ``(C) to assess the potential of Federal land and land 
     management programs as feedstock resources for biobased fuels 
     and biobased products, consistent with the integrity of soil 
     and water resources and with other environmental 
     considerations.
       ``(6) Eligible entities.--To be eligible for a grant, 
     contract, or assistance under this subsection, an applicant 
     shall be--
       ``(A) an institution of higher education;
       ``(B) a National Laboratory;
       ``(C) a Federal research agency;
       ``(D) a State research agency;
       ``(E) a private sector entity;
       ``(F) a nonprofit organization; or
       ``(G) a consortium of two or more entities described in 
     subparagraphs (A) through (F).
       ``(7) Administration.--
       ``(A) In general.--After consultation with the Board, the 
     points of contact shall--
       ``(i) publish annually one or more joint requests for 
     proposals for grants, contracts, and assistance under this 
     subsection;
       ``(ii) require that grants, contracts, and assistance under 
     this section be awarded competitively, on the basis of merit, 
     after the establishment of procedures that provide for 
     scientific peer review by an independent panel of scientific 
     and technical peers; and
       ``(iii) give some preference to applications that--

       ``(I) involve a consortia of experts from multiple 
     institutions;
       ``(II) encourage the integration of disciplines and 
     application of the best technical resources; and
       ``(III) increase the geographic diversity of demonstration 
     projects.

       ``(B) Distribution of funding by technical area.--Of the 
     funds authorized to be appropriated for activities described 
     in this subsection, funds shall be distributed for each of

[[Page 21511]]

     fiscal years 2007 through 2012 so as to achieve an 
     approximate distribution of--
       ``(i) 20 percent of the funds to carry out activities for 
     feedstock production under paragraph (4)(A);
       ``(ii) 45 percent of the funds to carry out activities for 
     overcoming recalcitrance of cellulosic biomass under 
     paragraph (4)(B), of which not less than 10 percent shall be 
     used for activities referred to in each clause of paragraph 
     (4)(B);
       ``(iii) 30 percent of the funds to carry out activities for 
     product diversification under paragraph (4)(C); and
       ``(iv) 5 percent of the funds to carry out activities for 
     strategic guidance under paragraph (4)(D).
       ``(C) Distribution of funding within each technical area.--
     Within each technical area described in subparagraphs (A) 
     through (C) of paragraph (4), funds shall be distributed for 
     each of fiscal years 2007 through 2012 so as to achieve an 
     approximate distribution of--
       ``(i) 15 percent of the funds for applied fundamentals;
       ``(ii) 35 percent of the funds for innovation; and
       ``(iii) 50 percent of the funds for demonstration and 
     commercial applications.
       ``(D) Matching funds.--
       ``(i) In general.--A minimum 20 percent funding match shall 
     be required for demonstration projects under this section.
       ``(ii) Commercial applications.--A minimum of 50 percent 
     funding match shall be required for commercial application 
     projects under this section.
       ``(E) Technology and information transfer to agricultural 
     users.--The Administrator of the Cooperative State Research, 
     Education, and Extension Service and the Chief of the Natural 
     Resources Conservation Service shall ensure that applicable 
     research results and technologies from the Initiative are 
     adapted, made available, and disseminated through those 
     services, as appropriate.
       ``(h) Administrative Support and Funds.--
       ``(1) In general.--To the extent administrative support and 
     funds are not provided by other agencies under paragraph 
     (2)(b), the Secretary of Energy and the Secretary of 
     Agriculture may provide such administrative support and funds 
     of the Department of Energy and the Department of Agriculture 
     to the Board and the Advisory Committee as are necessary to 
     enable the Board and the Advisory Committee to carry out 
     their duties under this section.
       ``(2) Other agencies.--The heads of the agencies referred 
     to in subsection (e)(2)(C), and the other members appointed 
     under subsection (e)(2)(D), may, and are encouraged to, 
     provide administrative support and funds of their respective 
     agencies to the Board and the Advisory Committee.
       ``(3) Limitation.--Not more than 4 percent of the amount 
     appropriated for each fiscal year under subsection (g)(6) may 
     be used to pay the administrative costs of carrying out this 
     section.
       ``(i) Reports.--
       ``(1) Annual reports.--For each fiscal year for which funds 
     are made available to carry out this section, the Secretary 
     of Energy and the Secretary of Agriculture shall jointly 
     submit to Congress a detailed report on--
       ``(A) the status and progress of the Initiative, including 
     a report from the Advisory Committee on whether funds 
     appropriated for the Initiative have been distributed and 
     used in a manner that--
       ``(i) is consistent with the objectives, purposes, and 
     additional considerations described in paragraphs (2) through 
     (5) of subsection (g);
       ``(ii) uses the set of criteria established in the initial 
     report submitted under title III of the Agricultural Risk 
     Protection Act of 2000;
       ``(iii) achieves the distribution of funds described in 
     subparagraphs (B) and (C) of subsection (g)(7); and
       ``(iv) takes into account any recommendations that have 
     been made by the Advisory Committee;
       ``(B) the general status of cooperation and research and 
     development efforts carried out at each agency with respect 
     to biobased fuels and biobased products, including a report 
     from the Advisory Committee on whether the points of contact 
     are funding proposals that are selected under subsection 
     (g)(3)(B)(iii); and
       ``(C) the plans of the Secretary of Energy and the 
     Secretary of Agriculture for addressing concerns raised in 
     the report, including concerns raised by the Advisory 
     Committee.
       ``(2) Updates.--The Secretary and the Secretary of Energy 
     shall update the Vision and Roadmap documents prepared for 
     Federal biomass research and development activities.
       ``(3) Management plan.--The Secretary shall every five 
     years, in consultation with the Secretary of Energy, submit 
     to Congress a detailed management plan for the implementation 
     of this section. The management plan shall include--
       ``(A) consideration of the contribution of the section 
     towards achieving the objectives referred to in paragraphs 
     (2) and (3) of subsection (g) and in achieving the goals of 
     the biomass program of the Department of Energy;
       ``(B) consideration of input solicited from the Advisory 
     Committee, State, and private sources; and
       ``(C) specific and quantifiable near and long-term goals.
       ``(j) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $200,000,000 for each of fiscal years 2006 through 2015.''.
       (b) Repeal.--Title III of the Agricultural Risk Protection 
     Act of 2000 (Public Law 106-224) is hereby repealed.
       (c) Management Plan Submission Date.--The first management 
     plan required to be submitted under section 9008(i)(3) of the 
     Biomass Research and Development Act of 2000, as added by 
     subsection (a), shall be submitted not later than 180 days 
     after the date of the enactment of this Act.

     SEC. 9007. ADJUSTMENTS TO THE BIOENERGY PROGRAM.

       Section 9010 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 8108) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``and'';
       (ii) in subparagraph (B), by striking the final period and 
     inserting a semicolon; and
       (iii) by adding at the end the following new subparagraphs:
       ``(C) production of heat and power at a biofuels plant;
       ``(D) biomass gasification;
       ``(E) hydrogen made from cellulosic commodities for fuel 
     cells;
       ``(F) renewable diesel;
       ``(G) such other items as the Secretary considers 
     appropriate.'';
       (B) by striking paragraph (3) and inserting the following:
       ``(3) Eligible feedstock.--
       ``(A) In general.--The term `eligible feedstock' means--
       ``(i) any plant material grown or collected for the purpose 
     of being converted to energy (including aquatic plants);
       ``(ii) any organic byproduct or residue from agriculture 
     and forestry, including mill residues and pulping residues 
     that can be converted into energy;
       ``(iii) any waste material that can be converted to energy 
     and is derived from plant material, including--

       ``(I) wood waste and residue;
       ``(II) specialty crop waste, including waste derived from 
     orchard trees, vineyard crops, and nut crops; or
       ``(III) other fruit and vegetable byproducts or residues; 
     or

       ``(iv) animal waste and byproducts.
       ``(B) Exclusion.--The term `eligible feedstock' does not 
     include corn starch.'';
       (C) in paragraph (4), by striking ``an eligible commodity'' 
     and inserting ``eligible feedstock''; and
       (D) by adding at the end the following new paragraph:
       ``(5) Renewable diesel.--The term `renewable diesel' means 
     any type of biobased renewable fuel derived from plant or 
     animal matter that may be used as a substitute for standard 
     diesel fuel and meets the requirements of an appropriate 
     American Society for Testing and Material standard. Such term 
     does not include any fuel derived from coprocessing an 
     eligible feedstock with a feedstock that is not biomass.''; 
     and
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) by striking ``The Secretary shall continue'' and all 
     that follows through ``the Secretary makes'' and inserting 
     ``The Secretary shall make''; and
       (ii) by striking ``eligible commodities'' and inserting 
     ``eligible feedstock'';
       (B) in paragraph (2)(B), by striking ``eligible 
     commodities'' and inserting ``eligible feedstock'';
       (C) in paragraph (3), by striking subparagraphs (B) and (C) 
     and inserting the following:
       ``(B) Priority.--In making payments under this paragraph, 
     the Secretary shall give priority to contracts by considering 
     the factors referred to in section 9003(e)(2)(B).''; and
       (D) by striking paragraph (6) and inserting the following:
       ``(6) Limitation.--The Secretary may limit the amount of 
     payments that may be received by an eligible producer under 
     this section as the Secretary considers appropriate.''.

     SEC. 9008. RESEARCH, EXTENSION, AND EDUCATIONAL PROGRAMS ON 
                   BIOBASED ENERGY TECHNOLOGIES AND PRODUCTS.

       Section 9011(j)(1)(C) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 8109(j)(1)(C)) is amended by 
     striking ``2010'' and inserting ``2012''.

     SEC. 9009. ENERGY COUNCIL OF THE DEPARTMENT OF AGRICULTURE.

       Title IX of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 8101 et seq.) is further amended by adding at 
     the end the following new section:

     ``SEC. 9012. ENERGY COUNCIL OF THE DEPARTMENT OF AGRICULTURE.

       ``(a) In General.--The Secretary of Agriculture shall 
     establish an energy council in the Office of the Secretary 
     (in this section referred to as the `Council') to coordinate 
     the energy policy of the Department of Agriculture and 
     consult with other departments and agencies of the Federal 
     Government.
       ``(b) Membership.--
       ``(1) In general.--The Secretary shall appoint the members 
     of the Council from among the staff of the agencies and 
     mission areas of the Department of Agriculture with 
     responsibilities relating to energy programs or policies.
       ``(2) Chair.--The chief economist and the Under Secretary 
     for Rural Development of the Department of Agriculture shall 
     serve as the Chairs of the Council.
       ``(c) Duties of Office of Energy Policy and New Uses.--The 
     Office of Energy Policy and New Uses of the Department of 
     Agriculture shall support the activities of the Council.''.

     SEC. 9010. FARM ENERGY PRODUCTION PILOT PROGRAM.

       Title IX of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 8101 et seq.) is

[[Page 21512]]

     further amended by adding at the end the following new 
     section:

     ``SEC. 9013. FARM ENERGY PRODUCTION PILOT PROGRAM.

       ``(a) Program.--The Secretary of Agriculture shall 
     establish a pilot program to provide grants to farmers for 
     the purpose of demonstrating the feasibility of making a farm 
     energy neutral using existing technologies.
       ``(b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     fiscal years 2008 through 2012.''.

     SEC. 9011. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE.

       Title IX of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 8101 et seq.) is further amended by adding at 
     the end the following new section:

     ``SEC. 9014. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE.

       ``(a) Grant Authority.--
       ``(1) In general.--The Secretary of Agriculture (in this 
     section referred to as the `Secretary') may make grants in 
     accordance with this section to enable eligible rural 
     communities to substantially increase their energy self-
     sufficiency.
       ``(2) Eligible rural community defined.--In this section, 
     the term `eligible rural community' means a community that 
     has a population of fewer than 25,000 individuals, and is not 
     located in a metropolitan statistical area (as defined by the 
     Bureau of the Census).
       ``(b) Applications.--
       ``(1) In general.--A community desiring to receive a grant 
     under this section shall submit to the Secretary an 
     application for the grant, which contains a description of 
     how the community would use the grant to develop an 
     integrated renewable energy system to substantially increase 
     its energy self-sufficiency.
       ``(2) Integrated renewable energy system.--In paragraph 
     (1), the term `integrated renewable energy system' includes--
       ``(A) the use of biofuels;
       ``(B) the use of biomass to produce electricity
       ``(C) the use of animal manure to produce biogas as a 
     substitute for natural gas;
       ``(D) the use of new technologies to provide highly energy 
     efficient lighting, buildings, or vehicles;
       ``(E) the use of wind power to produce electricity and 
     hydrogen; and
       ``(F) the use of solar energy.
       ``(c) Consideration of Applications.--
       ``(1) Evaluation.--In making grants under this section, the 
     Secretary shall evaluate applications based on their ability 
     to demonstrate--
       ``(A) integration of different renewable energy sources at 
     lowest total cost;
       ``(B) integration of different renewable energy sources 
     with greatest potential for commercialization; and
       ``(C) development of best practices, and models for viable 
     rural energy self-sufficiency.
       ``(2) Preference.--In making grants under this section, the 
     Secretary shall give preference to those which propose a 
     project developed or carried out in coordination with--
       ``(A) universities or their non-profit foundations;
       ``(B) Federal, State, or local government agencies;
       ``(C) public or private power generation entities; or
       ``(D) government entities with responsibility for water or 
     natural resources.
       ``(d) Grants.--
       ``(1) Cost-sharing.--The amount of a grant under this 
     section with respect to an application shall not exceed 75 
     percent of the cost of the activities described in the 
     application.
       ``(2) Number of grants per year.--The Secretary may make 
     not more than 5 grants under this section in each fiscal 
     year.
       ``(e) Use of Grants.--A community to which a grant is made 
     under this section shall use the grant to develop an 
     integrated renewable energy system to improve the energy 
     efficiency of the community, and shall document any energy 
     savings resulting from the use of the grant.
       ``(f) Report to the Congress.--The Secretary shall submit 
     to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that document the best 
     practices and approaches used by grantees receiving funds 
     under this section.
       ``(g) Limitations on Authorization of Appropriations.--For 
     grants under this section, there are authorized to be 
     appropriated to the Secretary not more than $5,000,000 for 
     fiscal year 2008, and such sums as may be necessary for 
     fiscal years 2009 through 2012.''.

     SEC. 9012. AGRICULTURAL BIOFUELS FROM BIOMASS INTERNSHIP 
                   PILOT PROGRAM.

       Title IX of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 8101 et seq.) is further amended by adding at 
     the end the following new section:

     ``SEC. 9015. AGRICULTURAL BIOFUELS FROM BIOMASS INTERNSHIP 
                   PILOT PROGRAM.

       ``(a) Establishment.--The Secretary of Agriculture shall 
     establish a structured, academically-oriented internship 
     pilot program (in this section referred to as the `Program') 
     to provide students from universities in California, Iowa, 
     Missouri, Georgia, Minnesota, and other states with 
     substantial farm-based economies with the opportunity to work 
     within the Department of Agriculture, Congress and 
     legislative branch agencies, other Federal departments and 
     agencies, corporations, and nonprofit institutions on matters 
     pertaining to policies regarding renewable energy, including 
     the conversion of biomass and other agricultural products to 
     produce ethanol and other biofuels.
       ``(b) Eligibility.--To be eligible for an internship under 
     subsection (a) a student shall--
       ``(1) be a third or fourth year undergraduate student or a 
     graduate student at an accredited college or university in 
     California, Iowa, Missouri, Georgia, Minnesota, or another 
     State with a substantial farm-based economy that commits 
     matching funds in accordance with subsection (g);
       ``(2) be a United States citizen;
       ``(3) be pursuing an undergraduate or graduate program in 
     agriculture and related supporting subjects with direct 
     relevance to the subject of biorefinery, biofuels, and 
     renewable energy; and
       ``(4) meet any other conditions or requirements that the 
     Secretary considers necessary.
       ``(c) Priorities of Internship Pilot Program.--In 
     administering the Program (including in the selection of 
     students to participate in the Program), the Secretary shall 
     prioritize the following activities and placements:
       ``(1) Structured internship experiences that feature 
     direct, hands-on assistance to policy makers engaged in the 
     development and implementation of agriculture and related 
     supporting policies and legislation, with direct relevance to 
     the subject of biorefinery, biofuels, and renewable energy.
       ``(2) Internship and academic seminar programs that provide 
     a combination of workforce training, experiential education, 
     and leadership development designed specifically for the 
     Department of Agriculture and Congress, with regard to 
     agriculture-based biorefinery, biofuels, and related 
     renewable energy policies.
       ``(3) Establishment of regional and state networks that 
     partner with the agricultural business, government and 
     academic communities to enhance the prospects for providing 
     financial assistance to students, particularly minority 
     students, from colleges and universities in each 
     participating State who are from economically disadvantaged 
     backgrounds.
       ``(4) Internship and academic seminar programs that focus 
     on agriculture-based research, development, and policies 
     addressing new technologies to enhance agriculture production 
     and enhanced economic development in the agriculture sector 
     of the United States.
       ``(d) Administration of the Pilot Program.--The Secretary, 
     in consultation with other executive and legislative branch 
     officials, shall administer the Program. The Secretary may 
     engage the services of an experienced, nonprofit, nonpartisan 
     professional internship and academic seminar organization 
     with extensive experience in developing and carrying out 
     Washington-based or other State-based internship programs and 
     State-based financial assistance initiatives for interns to 
     assist in carrying out the Program.
       ``(e) Scholarships and Other Assistance for Internships.--
     The Secretary may make available to undergraduate and 
     graduate students participating in the Program scholarships 
     or other types of financial assistance, including funds to 
     cover the cost of housing, per diem living expenses, 
     transportation, tuition and other educational expenses, and 
     related costs, that would allow participation by eligible 
     undergraduate and graduate students from economically-
     disadvantaged backgrounds within the Program States.
       ``(f) Longitudinal Studies and Reporting Requirements.--
       ``(1) Longitudinal studies and evaluation of internship 
     program.--In developing and implementing the Program, the 
     Secretary shall carry out such longitudinal studies and 
     program evaluations as he or she deems appropriate to ensure 
     that the program is administered in a cost-effective manner 
     and has specific milestones, objectives, and results 
     quantified with regard to such Program.
       ``(2) Reporting requirements.--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 periodic reports regarding the 
     development and implementation of the Program, including the 
     longitudinal studies and evaluations required under paragraph 
     (1).
       ``(g) State Matching Requirement.--As a condition of 
     receiving an internship under the Program, the State in which 
     the student receiving the internship is pursuing an 
     undergraduate or graduate degree shall provide matching funds 
     in the amount of one dollar for every two dollars provided by 
     the Secretary under the Program.
       ``(h) Federal Contribution Limit.--The Secretary may not 
     expend more than $200,000 in any fiscal year to provide 
     internships to students pursuing an undergraduate or graduate 
     degree in any particular State.
       ``(i) Application of Funds.--The Secretary shall, to the 
     maximum extent practicable, use funds made available under 
     subsection (j) to provide scholarships and the other forms of 
     financial assistance described in subsection (e) directly 
     attributable to the participation in the Program by students 
     from rural, economically-disadvantaged backgrounds.
       ``(j) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out this section.''.

     SEC. 9013. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY 
                   PRODUCERS.

       Title IX of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 8101 et seq.) is further amended by adding at 
     the end the following new section:

     ``SEC. 9016. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY 
                   PRODUCERS.

       ``(a) Definitions.--In this section:

[[Page 21513]]

       ``(1) Bioenergy.--The term `bioenergy' means fuel grade 
     ethanol and other biofuel.
       ``(2) Bioenergy producer.--The term `bioenergy producer' 
     means a producer of bioenergy that uses an eligible commodity 
     to produce bioenergy under this section.
       ``(3) Eligible commodity.--The term `eligible commodity' 
     means a form of raw or refined sugar or in-process sugar that 
     is eligible to be marketed in the United States for human 
     consumption or to be used for the extraction of sugar for 
     human consumption.
       ``(4) Eligible entity.--The term `eligible entity' means an 
     entity located in the United States that markets an eligible 
     commodity in the United States.
       ``(b) Feedstock Flexibility Program.--
       ``(1) In general.--
       ``(A) Purchases and sales.--For each of fiscal years 2008 
     through 2012, the Secretary shall purchase eligible 
     commodities from eligible entities and sell such commodities 
     to bioenergy producers for the purpose of producing bioenergy 
     in a manner that ensures that 156 of the Federal Agricultural 
     Improvement and Reform Act (7 U.S.C. 7272) is operated at no 
     cost to the Federal Government by avoiding forfeitures to the 
     Commodity Credit Corporation.
       ``(B) Competitive procedures.--In carrying out the 
     purchases and sales required under subparagraph (A), the 
     Secretary shall, to the maximum extent practicable, use 
     competitive procedures, including the receiving, offering, 
     and accepting of bids, when entering into contracts with 
     eligible entities and bioenergy producers, provided that such 
     procedures are consistent with the purposes of subparagraph 
     (A).
       ``(C) Limitation.--The purchase and sale of eligible 
     commodities under subparagraph (A) shall only be made in 
     fiscal years in which such purchases and sales are necessary 
     to ensure that the program authorized under section 156 of 
     the Federal Agriculture Improvement and Reform Act (7 U.S.C. 
     7272) is operated at no cost to the Federal Government by 
     avoiding forfeitures to the Commodity Credit Corporation.
       ``(2) Notice.--
       ``(A) In general.--Not later than September 1, 2007, and 
     each September 1 thereafter through fiscal year 2011, the 
     Secretary shall provide notice to eligible entities and 
     bioenergy producers of the quantity of eligible commodities 
     that shall be made available for purchase and sale for the 
     subsequent fiscal year under this section.
       ``(B) Reestimates.--Not later than the first day of each of 
     the second through fourth quarters of each of fiscal years 
     2008 through 2012, the Secretary shall reestimate the 
     quantity of eligible commodities determined under 
     subparagraph (A), and provide notice and make purchases and 
     sales based on such reestimates.
       ``(3) Commodity credit corporation inventory.--To the 
     extent that an eligible commodity is owned and held in 
     inventory by the Commodity Credit Corporation (accumulated 
     pursuant to the program authorized under section 156 of the 
     Federal Agriculture Improvement and Reform Act (7 U.S.C. 
     7272)), the Secretary shall sell such commodity to bioenergy 
     producers under this section.
       ``(4) Transfer rule; storage fees.--
       ``(A) General transfer rule.--Except as provided in 
     subparagraph (C), the Secretary shall ensure that bioenergy 
     producers that purchase eligible commodities pursuant to this 
     subsection take possession of such commodities within 30 
     calendar days of the date of such purchase from the Commodity 
     Credit Corporation.
       ``(B) Payment of storage fees prohibited.--
       ``(i) In general.--The Secretary shall, to the greatest 
     extent practicable, carry out this subsection in a manner 
     that ensures no storage fees are paid by the Commodity Credit 
     Corporation in the administration of this subsection.
       ``(ii) Exception.--Clause (i) shall not apply with respect 
     to any commodities owned and held in inventory by the 
     Commodity Credit Corporation (accumulated pursuant to the 
     program authorized under section 156 of the Federal 
     Agriculture Improvement and Reform Act (7 U.S.C. 7272)).
       ``(C) Option to prevent storage fees.--
       ``(i) In general.--The Secretary may enter into contracts 
     with bioenergy producers to sell eligible commodities to such 
     producers prior in time to entering into contracts with 
     eligible entities to purchase such commodities to be used to 
     satisfy the contracts entered into with the bioenergy 
     producers.
       ``(ii) Special transfer rule.--If the Secretary makes a 
     sale and purchase referred to in clause (i), the Secretary 
     shall ensure that the bioenergy producer that purchased 
     eligible commodities takes possession of such commodities 
     within 30 calendar days of the date the Commodity Credit 
     Corporation purchases such commodities.
       ``(5) Relation to other laws.--If sugar that is subject to 
     a marketing allotment under part VII of subtitle B of title 
     III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
     1359aa et seq.) is the subject of a payment under this 
     section, such sugar shall be considered marketed and shall 
     count against a processor's allocation of an allotment under 
     such part, as applicable.
       ``(6) Funding.--The Secretary shall use the funds, 
     facilities, and authorities of the Commodity Credit 
     Corporation, including the use of such sums as are necessary, 
     to carry out this section.''.

     SEC. 9014. DEDICATED ETHANOL PIPELINE FEASIBILITY STUDIES.

       (a) In General.--The Secretary of Agriculture, in 
     coordination with the Secretary of Energy and the Secretary 
     of Transportation, shall spend up to $1,000,000 to fund 
     feasibility studies for the construction of dedicated ethanol 
     pipelines.
       (b) Conduct of Studies.--
       (1) In general.--The Secretary of Agriculture shall--
       (A) through a competitive solicitation process, select 1 or 
     more firms having capabilities in the planning, development, 
     and construction of dedicated pipelines to carry out the 
     feasibility studies described in subsection (a); or
       (B) carry out the feasibility studies in conjunction with 
     such firms.
       (2) Timing.--
       (A) In general.--Not later than 120 days after the 
     Secretary selects 1 or more firms under paragraph (1)(A) and 
     funding is made available under subsection (f), the Secretary 
     shall award funding under this section.
       (B) Studies.--As a condition of receiving funds under this 
     section, a recipient of funding shall agree to submit to the 
     Secretary a completed feasibility study not later than one 
     year after the date on which the recipient is awarded funds 
     pursuant to paragraph (1)(A).
       (c) Study Factors.--Feasibility studies funded under this 
     section shall include consideration of--
       (1) existing or potential barriers to dedicated ethanol 
     pipelines, including technical, siting, financing, and 
     regulatory barriers;
       (2) potential evolutionary pathways for the development of 
     an ethanol pipeline transport system, such as starting with 
     localized gathering networks as compared to major interstate 
     ethanol pipelines to carry larger volumes from the Midwest to 
     the East or West coast;
       (3) market risk, including throughput risk, and ways of 
     mitigating the risk;
       (4) regulatory, financing, and siting options that would 
     mitigate risk in these areas and help ensure the construction 
     of dedicated ethanol pipelines;
       (5) financial incentives that may be necessary for the 
     construction of dedicated ethanol pipelines, including the 
     return on equity that sponsors of the first dedicated ethanol 
     pipelines will require to invest in the pipelines;
       (6) ethanol production of 20,000,000,000, 30,000,000,000, 
     and 40,000,000,000 gallons per year by 2020; and
     (7) such other factors that the Secretary considers to be 
     appropriate.
       (d) Confidentiality.--If a recipient of funding under this 
     section requests confidential treatment for critical energy 
     infrastructure information or commercially-sensitive data 
     contained in a feasibility study submitted by the recipient 
     under subsection (b)(2)(B), the Secretary shall offer to 
     enter into a confidentiality agreement with the recipient to 
     maintain the confidentiality of the submitted information.
       (e) Review; Report.--The Secretary of Agriculture shall--
       (1) review the feasibility studies submitted under 
     subsection (b)(2)(B) or carried out under subsection 
     (b)(1)(B); and
       (2) not later than 90 days after the date on which all 
     studies are completed under subsection (b), submit to 
     Congress a report that includes--
       (A) information about the potential benefits of 
     constructing dedicated ethanol pipelines; and
       (B) recommendations for legislation that could help provide 
     for the construction of dedicated ethanol pipelines.
       (f) Funding.--There are authorized to be appropriated to 
     the Secretary of Agriculture to carry out this section 
     $1,000,000 for fiscal year 2008, to remain available until 
     expended.

     SEC. 9015. BIOMASS INVENTORY REPORT.

       (a) Inventory Required.--The Secretary of Agriculture shall 
     conduct an inventory of biomass resources on a county-by-
     county basis.
       (b) Report.--Not later than one year after the date of the 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report containing--
       (1) the results of the inventory conducted under subsection 
     (a); and
       (2) an estimate of the amount of unused crop land in the 
     United States that could be used for dedicated energy crops.
       (c) Biomass Resources Defined.--In this section, the term 
     ``biomass resource'' has the meaning given the term 
     ``eligible commodity'' in section 9010(a)(3) of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 
     8108(a)(3)).

     SEC. 9016. FUTURE FARMSTEADS PROGRAM.

       (a) Establishment.--The Secretary of Agriculture shall 
     establish a program to equip, in each of 5 regions of the 
     country chosen to represent different farming practices, a 
     farm house and its surrounding fields, facilities, and 
     forested areas with technologies to--
       (1) improve farm energy production and energy use 
     efficiencies;
       (2) provide working examples to farmers; and
       (3) serve as an education, demonstration, and research 
     facility that will teach graduate students whose focus of 
     research is related to either renewable energy or energy 
     conservation technologies.
       (b) Goals.--The goals of the program established under 
     subsection (a) shall be to--
       (1) advance farm energy use efficiencies and the on-farm 
     production of renewable energies, along with advanced 
     communication and control technologies with the latest in 
     energy capture and conversion techniques, thereby enhancing 
     rural energy independence and creating new revenues for rural 
     economies;
       (2) accelerate private sector and university research into 
     the efficient on-farm production of renewable fuels and help 
     educate the farming industry, students, and the general 
     public; and

[[Page 21514]]

       (3) accelerate energy independence, including the 
     production and the conservation of renewable energies on 
     farms.
       (c) Collaboration Partners.--The program under this section 
     shall be carried out in partnership with regional land grant 
     institutions, agricultural commodity commissions, biofuels 
     companies, sensor and controls companies, and internet 
     technology companies.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

     SEC. 9017. SENSE OF CONGRESS ON RENEWABLE ENERGY.

       It is the sense of Congress that--
       (1) energy demand in the United States is projected to 
     increase by more than 30 percent over the next two decades;
       (2) increased production of renewable energy and growth of 
     its infrastructure would assist the United States in meeting 
     the growing energy demand;
       (3) continued, and even accelerated, development of 
     renewable energy inputs and technologies provide numerous 
     benefits to the United States, including improved national 
     security and economic growth;
       (4) while it should be a priority of the Federal Government 
     to continue to promote policies and incentives to stimulate 
     growth and development of renewable energy infrastructure, it 
     should be recognized that the marketplace is also an 
     important instrument to determine which renewable energy 
     sources and technologies will provide the most efficient and 
     effective energy production;
       (5) renewable energy inputs and technology must be 
     available in abundant quantities and provide energy at 
     competitive prices in a reliable manner for the American 
     consumer; and
       (6) it is in the interest of the United States to diversify 
     its energy portfolio and increase the energy independence of 
     the United States by further developing alternative forms of 
     energy.
             TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE

                       Subtitle A--Honey and Bees

Sec. 10001. Annual report on response to honey bee colony collapse 
              disorder.

                  Subtitle B--Horticulture Provisions

Sec. 10101. Tree assistance program.
Sec. 10102. Specialty crop block grants.
Sec. 10103. Additional section 32 funds for purchase of fruits, 
              vegetables, and nuts to support domestic nutrition 
              assistance programs.
Sec. 10104. Independent evaluation of Department of Agriculture 
              commodity purchase process.
Sec. 10105. Quality requirements for clementines.
Sec. 10106. Implementation of food safety programs under marketing 
              orders.
Sec. 10107. Inclusion of specialty crops in census of agriculture.
Sec. 10108. Maturity requirements for Hass avocados.
Sec. 10109. Mushroom promotion, research, and consumer information.
Sec. 10110. Fresh produce education initiative.

                Subtitle C--Pest and Disease Management

Sec. 10201. Pest and disease program.
Sec. 10202. Multi-species fruit fly research and sterile fly 
              production.

                    Subtitle D--Organic Agriculture

Sec. 10301. National organic certification cost-share program.
Sec. 10302. Organic production and market data.
Sec. 10303. Organic conversion, technical, and educational assistance.

                  Subtitle E--Miscellaneous Provisions

Sec. 10401. Restoration of import and entry agricultural inspection 
              functions to the Department of Agriculture.
Sec. 10402. Grant program to improve movement of specialty crops.
Sec. 10403. Authorization of appropriations for market news activities 
              regarding specialty crops.
Sec. 10404. Farmers' market promotion program.
Sec. 10405. National Clean Plant Network.
                       Subtitle A--Honey and Bees

     SEC. 10001. ANNUAL REPORT ON RESPONSE TO HONEY BEE COLONY 
                   COLLAPSE DISORDER.

       The Secretary of Agriculture shall submit to Congress an 
     annual report describing the progress made by the Department 
     of Agriculture in investigating the cause or causes of honey 
     bee colony collapse and in finding appropriate strategies to 
     reduce colony loss.
                  Subtitle B--Horticulture Provisions

     SEC. 10101. TREE ASSISTANCE PROGRAM.

       (a) Inclusion of Nursery Tree Growers.--
       (1) Eligibility.--Section 10201 of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 8201) is amended--
       (A) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively; and
       (B) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) Nursery tree grower.--The term `nursery tree grower' 
     means a person who produces nursery, ornamental, fruit, nut, 
     or Christmas trees for commercial sale, as determined by the 
     Secretary.''.
       (2) Conforming amendments.--Subtitle C of title X of the 
     Farm Security and Rural Investment Act of 2002 is amended--
       (A) in section 10202 (7 U.S.C. 8202)--
       (i) in subsection (a), by inserting ``and nursery tree 
     growers'' after ``eligible orchardists''; and
       (ii) in subsection (b), by inserting ``or nursery tree 
     grower'' after ``eligible orchardist''; and
       (B) in section 10203 (7 U.S.C. 8203), by inserting ``and 
     nursery tree growers'' after ``eligible orchardists''.
       (b) Annual Payment Limitation.--Section 10204(a) of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     8204(a)) is amended by striking ``$75,000'' and inserting 
     ``$150,000 per year''.
       (c) Applicability.--The amendments made by this section 
     shall apply with respect to any natural disaster occurring 
     after the date of the enactment of this Act for which 
     assistance is provided by the Secretary of Agriculture under 
     the tree assistance program.

     SEC. 10102. SPECIALTY CROP BLOCK GRANTS.

       (a) Extension of Program.--Subsection (a) of section 101 of 
     the Specialty Crops Competitiveness Act of 2004 (Public Law 
     108-465; 7 U.S.C. 1621 note) is amended by striking ``2009'' 
     and inserting ``2012''.
       (b) Availability of Funds.--Subsection (i) of section 101 
     of the Specialty Crops Competitiveness Act of 2004 is amended 
     to read as follows:
       ``(i) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary of Agriculture shall make grants 
     under this section, using--
       ``(1) $60,000,000 in fiscal year 2008;
       ``(2) $65,000,000 in fiscal year 2009;
       ``(3) $70,000,000 in fiscal year 2010;
       ``(4) $75,000,000 in fiscal year 2011; and
       ``(5) $95,000,000 in fiscal year 2012.''.
       (c) Conforming Amendments.--Section 101 of the Specialty 
     Crops Competitiveness Act of 2004 (Public Law 108-465; 7 
     U.S.C. 1621 note) is further amended--
       (1) in subsection (a), by striking ``Subject to the 
     appropriation of funds to carry out this section'' and 
     inserting ``Using the funds made available under subsection 
     (i)'';
       (2) in subsection (b), by striking ``appropriated pursuant 
     to the authorization of appropriations in'' and inserting 
     ``made available under''; and
       (3) in subsection (c), by striking ``Subject to the 
     appropriation of sufficient funds to carry out this 
     subsection, each'' and inserting ``Each''.
       (d) Definition of Specialty Crop.--Section 3(1) of the 
     Specialty Crops Competitiveness Act of 2004 (Public Law 108-
     465; 7 U.S.C. 1621 note) is amended by inserting 
     ``horticulture and'' before ``nursery''.

     SEC. 10103. ADDITIONAL SECTION 32 FUNDS FOR PURCHASE OF 
                   FRUITS, VEGETABLES, AND NUTS TO SUPPORT 
                   DOMESTIC NUTRITION ASSISTANCE PROGRAMS.

       (a) Funding for Additional Purchases of Fruits, Vegetables, 
     and Nuts.--In addition to the purchases of fruits, 
     vegetables, and nuts required by section 10603 of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 612c-4), 
     the Secretary of Agriculture shall purchase fruits, 
     vegetables, and nuts for the purpose of providing nutritious 
     foods for use in domestic nutrition assistance programs, 
     using, of the funds made available under section 32 of the 
     Act of August 24, 1935 (7 U.S.C. 612c), the following 
     amounts:
       (1) $190,000,000 in fiscal year 2008.
       (2) $193,000,000 in fiscal year 2009.
       (3) $199,000,000 in fiscal year 2010.
       (4) $203,000,000 in fiscal year 2011.
       (5) $206,000,000 in fiscal year 2012 and each fiscal year 
     thereafter.
       (b) Form of Purchases.--Fruits, vegetables, and nuts may be 
     purchased under this section in the form of frozen, canned, 
     dried, or fresh fruits, vegetables, and nuts.
       (c) Value Added Products.--The Secretary may consider 
     offering value-added products containing fruits, vegetables 
     or nuts under this section, taking into account--
       (1) whether demand exists for the value-added product; and
       (2) the interests of entities that receive fruits, 
     vegetables, and nuts under this section.

     SEC. 10104. INDEPENDENT EVALUATION OF DEPARTMENT OF 
                   AGRICULTURE COMMODITY PURCHASE PROCESS.

       (a) Evaluation Required.--The Secretary of Agriculture 
     shall arrange to have performed an independent evaluation of 
     the commodity purchasing processes (and the statutory and 
     regulatory authority underlying such processes) used by the 
     Department of Agriculture to remove surplus commodities from 
     the market and support commodity prices and producer incomes, 
     especially with regard to activities under section 32 of the 
     Act of August 24, 1935 (7 U.S.C. 612c) and the importance of 
     increasing purchases of specialty crops.
       (b) Submission of Results.--Not later than one year after 
     the date of the enactment of this Act, the Secretary of 
     Agriculture shall submit to Congress a report on the results 
     of the evaluation.

     SEC. 10105. QUALITY REQUIREMENTS FOR CLEMENTINES.

       Section 8e(a) of the Agricultural Adjustment Act (7 U.S.C. 
     608e-1(a)), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, is amended in the first 
     sentence by inserting after ``nectarines,'' the following: 
     ``clementines,''.

     SEC. 10106. IMPLEMENTATION OF FOOD SAFETY PROGRAMS UNDER 
                   MARKETING ORDERS.

        Section 8c(6) of the Agricultural Adjustment Act (7 U.S.C. 
     608c(6)), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, is amended by adding at the 
     end the following:
       ``(K) In the case of an order related to a specialty crop 
     (as such term is defined in section

[[Page 21515]]

     3(1) of the Specialty Crops Competitiveness Act of 2004 
     (Public Law 108-465; 118 Stat. 3883)), authorizing the 
     implementation of quality-related food safety programs 
     designed to enhance the safety of the specialty crop and 
     products derived from specialty crops.''.

     SEC. 10107. INCLUSION OF SPECIALTY CROPS IN CENSUS OF 
                   AGRICULTURE.

       Section 2(a) of the Census of Agriculture Act of 1997 (7 
     U.S.C. 2204g(a) is amended by adding at the end the following 
     new sentence: ``Beginning with the census of agriculture 
     required to be conducted in 2008, the Secretary shall conduct 
     as part of each census of agriculture a census of specialty 
     crops (as such term is defined in section 3(1) of the 
     Specialty Crops Competitiveness Act of 2004 (Public Law 108-
     465; 118 Stat. 3883)).''.

     SEC. 10108. MATURITY REQUIREMENTS FOR HASS AVOCADOS.

       Subtitle A of the Agricultural Marketing Act of 1946 is 
     amended by adding at the end the following new section:

     ``SEC. 209. MATURITY REQUIREMENTS FOR HASS AVOCADOS.

       ``(a) Minimum Percentage of Dry Matter.--Not later than 180 
     days after the date of the enactment of the Farm, Nutrition, 
     and Bioenergy Act of 2007, the Secretary of Agriculture shall 
     issue final regulations to require that all Hass avocados 
     sold to consumers in the United States meet the minimum 
     maturity standard of not less than 20.8 percent dry matter.
       ``(b) Exceptions.--Subsection (a) and the regulations 
     issued pursuant to such subsection shall not apply to Hass 
     avocados--
       ``(1) intended for consumption by charitable institutions;
       ``(2) intended for distribution by relief agencies;
       ``(3) intended for commercial processing into products; or
       ``(4) that the Secretary determines should not be subject 
     to such subsection or such regulations.
       ``(c) Use of Existing Inspectors.--The Secretary shall, to 
     the greatest extent practicable, use inspectors that inspect 
     avocados for compliance with section 8e of the Agricultural 
     Adjustment Act (7 U.S.C. 608e-1), reenacted with amendments 
     by the Agricultural Marketing Agreement Act of 1937, to 
     conduct inspections under this section.
       ``(d) Civil Penalties.--The Secretary may require any 
     person who violates this section or the regulations issued 
     pursuant to this section to--
       ``(1) forfeit to the United States a sum equal to the value 
     of the commodity at the time of violation, which forfeiture 
     shall be recoverable in a civil suit bought in the name of 
     the United States; or
       ``(2) on conviction, be fined not less than $50 or more 
     than $5,000 for each violation.
       ``(e) Diversion.--In the case of any Hass avocados that do 
     not meet the requirements of this section or the regulations 
     issued pursuant to this section, the Secretary may--
       ``(1) provide for the reinspection of the Hass avocados; or
       ``(2) authorized the diversion, export, or repacking of the 
     Hass avocados.
       ``(f) Fees.--The Secretary may prescribe and collect fees 
     to cover the costs of providing for the inspection of Hass 
     avocados under this section. All fees and penalties collected 
     shall be credited to the accounts that incur such costs and 
     shall remain available until expended without fiscal year 
     limitation.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out this section.''.

     SEC. 10109. MUSHROOM PROMOTION, RESEARCH, AND CONSUMER 
                   INFORMATION.

       (a) Regions and Members.--Section 1925(b)(2) of the 
     Mushroom Promotion, Research, and Consumer Information Act of 
     1990 (subtitle B of title XIX of Public Law 101-624; 7 U.S.C. 
     6104(b)(2)) is amended--
       (1) in subparagraph (B), by striking ``4 regions'' and 
     inserting ``3 regions'';
       (2) in subparagraph (D), by striking ``35,000,000 pounds'' 
     and inserting ``50,000,000 pounds''; and
       (3) by striking subparagraph (E), and inserting the 
     following new subparagraph:
       ``(E) Additional members.--In addition to the members 
     appointed pursuant to paragraph (1), and subject to the nine-
     member limit of members on the council provided in such 
     paragraph, the Secretary shall appoint additional members to 
     the council from a region which attains additional pounds of 
     production as follows:
       ``(i) If a region's annual production is greater than 
     110,000,000 pounds, but less than or equal to 180,000,000 
     pounds, the region shall be represented by one additional 
     member.
       ``(ii) If a region's annual production is greater than 
     180,000,000 pounds, but less than or equal to 260,000,000 
     pounds, the region shall be represented by two additional 
     members.
       ``(iii) If a region's annual production is greater than 
     260,000,000 pounds, the region shall be represented by three 
     additional members.''.
       (b) Powers and Duties of Council.--Section 1925(c) of the 
     Mushroom Promotion, Research, and Consumer Information Act of 
     1990 (subtitle B of title XIX of Public Law 101-624; 7 U.S.C. 
     6104(c)) is amended--
       (1) by redesignating paragraphs (6), (7), and (8) as 
     paragraphs (7), (8), and (9), respectively; and
       (2) by inserting after paragraph (5), the following new 
     paragraph (6):
       ``(6) to develop a program for good agricultural practices 
     and good handling practices for mushrooms;''.

     SEC. 10110. FRESH PRODUCE EDUCATION INITIATIVE.

       (a) Initiative Authorized.--The Secretary of Agriculture 
     may carry out a program to educate persons involved in the 
     fresh produce industry and the public about--
       (1) scientifically proven practices for reducing 
     microbiological pathogens on fresh produce; and
       (2) methods of reducing the threat of cross-contamination 
     of fresh produce through unsanitary handling practices.
       (b) Cooperation.--The Secretary may carry out the program 
     in cooperation with public or private partners.
       (c) Funding.--There are authorized to be appropriated such 
     sums as are necessary for each of fiscal years 2008 through 
     2012 to carry out this section.
                Subtitle C--Pest and Disease Management

     SEC. 10201. PEST AND DISEASE PROGRAM.

       (a) Establishment.--The Secretary of Agriculture shall 
     establish a program to--
       (1) conduct early pest detection and surveillance 
     activities in cooperation with state departments of 
     agriculture;
       (2) determine and prioritize pest and disease threats to 
     domestic production of specialty crops; and
       (3) create an audit-based certification approach to protect 
     against the spread of plant pests and to facilitate the 
     interstate movement of plants and plant products.
       (b) Early Pest Detection and Surveillance Improvement 
     Program.--
       (1) Cooperative agreements.--The Secretary of Agriculture 
     shall enter into cooperative agreements with State 
     departments of agriculture to provide grants to such State 
     departments of agriculture for early pest detection and 
     surveillance activities.
       (2) Application.--A State department of agriculture seeking 
     to enter into a cooperative agreement under this subsection 
     shall submit to the Secretary an application containing such 
     information as the Secretary may require. The Secretary shall 
     notify applicants of the following:
       (A) The requirements to be imposed on a department of 
     agriculture for auditing of, and reporting on, the use of any 
     funds provided by the Secretary under the cooperative 
     agreement.
       (B) The criteria to be used to ensure that early pest 
     detection and surveillance activities supported under the 
     cooperative agreement are based on sound scientific data or 
     thorough risk assessments.
       (C) The means of identifying pathways of pest 
     introductions.
       (3) Use of funds.--
       (A) Pest detection and surveillance activities.--A State 
     department of agriculture that receives funds under this 
     section shall use the funds to carry out early pest detection 
     and surveillance activities approved by the Secretary to 
     prevent the introduction or spread of a pest.
       (B) Subagreements.--A State department of agriculture may 
     use funds received under this section to enter into 
     subagreements with political subdivisions in such State that 
     have legal responsibilities relating to agricultural pest and 
     disease surveillance.
       (4) Special funding considerations.--The Secretary shall 
     provide, subject to the availability of funds under 
     subsection (j), funds to a State department of agriculture 
     that the Secretary determines is in a State that has a high 
     risk of being affected by one or more pest, based on the 
     following factors:
       (A) The number of international airports and maritime 
     facilities in that State.
       (B) The volume of international passenger and cargo entry 
     into that State.
       (C) The geographic location of that State and if such 
     location is conducive to agricultural pest and disease 
     establishment due to the climate or crop diversity of that 
     State.
       (D) The types of agricultural commodities or plants 
     produced in that State and if the commodities or plants 
     produced are conducive to agricultural pest and disease 
     establishment due to the climate or crop diversity of that 
     State.
       (E) Whether the Secretary has declared an emergency in that 
     State pursuant to section 442 of the Plant Protection Act (7 
     U.S.C. 7772) due to an agricultural pest or disease of 
     Federal concern.
       (F) Such other factors as the Secretary considers 
     appropriate.
       (5) Cost-share.--
       (A) Federal cost share; form of non-federal cost share.--
     Except as provided in subparagraph (B), a cooperative 
     agreement entered into under paragraph (1) shall provide 
     that--
       (i) the Federal share of carrying out the cooperative 
     agreement shall not exceed 75 percent of the total cost;
       (ii) the non-Federal share of the cost of carrying out the 
     agreement may be provided in-kind; and
       (iii) in-kind costs may include indirect costs as 
     considered appropriate by the Secretary.
       (B) Ability to provide funds.--The Secretary shall not take 
     the ability to provide non-Federal costs to carry out a 
     cooperative agreement entered into under paragraph (1) into 
     consideration when deciding whether to enter into a 
     cooperative agreement with a State department of agriculture.
       (C) Special funding considerations.--The non-federal share 
     of carrying out paragraph (4) shall not exceed 40 percent of 
     the total costs of carrying out such paragraph.
       (6) Reporting requirement.--Not later than 180 days after 
     the date of completion of an early pest detection and 
     surveillance activity conducted by a State department of 
     agriculture

[[Page 21516]]

     using funds provided under this section, the department of 
     agriculture shall submit to the Secretary a report that 
     describes the purposes and results of the activities, 
     including any activities conducted pursuant to a subagreement 
     referred to in paragraph (3)(B).
       (c) Threat Identification and Mitigation Program.--
       (1) In general.--In conducting the program established 
     under subsection (a), the Secretary shall--
       (A) develop risk assessments of the existing and potential 
     threat to the specialty crop industry in the United States 
     from pests and disease;
       (B) prepare a list prioritizing pest and disease threats to 
     the specialty crop industry;
       (C) develop action plans, in consultation with State 
     departments of agriculture and other State or regional 
     resource partnerships, that effectively address pest and 
     disease threats to the specialty crop industry, including 
     pathway analysis, domestic and offshore mitigation measures, 
     and comprehensive exclusion measures at ports of entry and 
     other key distribution centers, in addition to strategies to 
     employ if a pest or disease is introduced;
       (D) implement such action plans as soon as they are 
     developed to test the effectiveness of such action plans and 
     help prevent new foreign and domestic pest and disease 
     threats from being introduced or widely disseminated in the 
     United States; and
       (E) collaborate with the nursery industry, research 
     institutions, and other appropriate entities to develop a 
     nursery pest risk management system to identify nursery pests 
     and diseases, prevent the introduction, establishment, and 
     spread of such pests and diseases, and reduce the risk of, 
     prioritize, mitigate, and eradicate such pests and diseases.
       (2) Reports.--Not later than one year after the date of the 
     enactment of this Act, and annually thereafter, the Secretary 
     shall update and submit to Congress the priority list and 
     action plans described in paragraph (1), including an 
     accounting of funds expended on the action plans.
       (d) Audit-Based Approach to Specialty Crop Phytosanitary 
     Certification.--In conducting the program established under 
     subsection (a), the Secretary shall provide funds and 
     technical assistance to specialty crop growers, organizations 
     representing such growers, and State and local agencies 
     working with such growers and organizations for the 
     development and implementation of certification systems based 
     on audit-based approaches, such as best management practices 
     or nursery pest risk management systems, to address plant 
     pests and to mitigate the risk of plant pests in the movement 
     of plants and plant products.
       (e) Cooperative Agreements.--The Secretary may enter into 
     cooperative agreements with other Federal departments or 
     agencies, States or political subdivisions of States, 
     national governments, local governments of other nations, 
     domestic or international organizations, domestic or 
     international associations, and other persons to carry out 
     this section.
       (f) Consultation.--The Secretary shall consult with the 
     National Plant Board, State departments of agriculture, and 
     specialty crop grower organizations to establish funding 
     priorities under this section for each fiscal year.
       (g) Administrative Costs.--Not more than 5 percent of the 
     funds provided under this section may be used for 
     administrative costs.
       (h) Definitions.--In this section:
       (1) Early pest detection and surveillance.--The term 
     ``early pest detection and surveillance'' means the full 
     range of activities undertaken to find newly introduced 
     pests, whether new to the United States or new to certain 
     areas of the United States, before the pests become 
     established, or before pest infestations become too large and 
     costly to eradicate or control.
       (2) Pest.--The term ``pest'' has the meaning given the term 
     ``plant pest'' in section 403(14) of the Plant Protection Act 
     (7 U.S.C. 7702(14)).
       (3) Specialty crop.--The term ``specialty crop'' has the 
     meaning given the term in section 3(1) of the Specialty Crop 
     Competitiveness Act of 2004 (Public Law 108-465; 118 Stat. 
     3883; 7 U.S.C. 1621 note).
       (4) State department of agriculture.--The term ``State 
     department of agriculture'' means an agency of a State that 
     has a legal responsibility to perform early pest detection 
     and surveillance activities.
       (i) Secretarial Discretion.--Section 442(c) of the Plant 
     Protection Act (7 U.S.C. 7772(c)) is amended by striking ``of 
     longer than 60 days''.
       (j) Funding.--Of the funds fo the Commodity Credit 
     Corporation, the Secretary shall make available to carry out 
     this section--
       (1) $10,000,000 for fiscal year 2008;
       (2) $25,000,000 for fiscal year 2009;
       (3) $40,000,000 for fiscal year 2010;
       (4) $55,000,000 for fiscal year 2011; and
       (5) $70,000,000 for fiscal year 2012.

     SEC. 10202. MULTI-SPECIES FRUIT FLY RESEARCH AND STERILE FLY 
                   PRODUCTION.

       (a) Construction.--The Secretary of Agriculture shall 
     construct a warehouse and irradiation containment facility in 
     Waimanalo, Hawaii, to support fruit fly rearing and 
     sterilization activities.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated--
       (1) $15,000,000 for the construction of a warehouse and 
     irradiation containment facility pursuant to subsection (a); 
     and
       (2) $1,000,000 for fiscal year 2008 and each subsequent 
     fiscal year for maintenance to the facilities constructed 
     pursuant to this section.
                    Subtitle D--Organic Agriculture

     SEC. 10301. NATIONAL ORGANIC CERTIFICATION COST-SHARE 
                   PROGRAM.

       Section 10606 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 6523) is amended--
       (1) in subsection (a), by striking ``$5,000,000 for fiscal 
     year 2002'' and inserting ``$22,000,000 for fiscal year 
     2008''; and
       (2) in subsection (b)(2), by striking ``$500'' and 
     inserting ``$750''.

     SEC. 10302. ORGANIC PRODUCTION AND MARKET DATA.

       (a) New Data Requirements.--Section 7407 of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 5925c) is 
     amended to read as follows:

     ``SEC. 7407. ORGANIC DATA COLLECTION AND PUBLICATION.

       ``(a) Data Collection and Publication.--To assist organic 
     farmers in making informed production and marketing 
     decisions, the Secretary of Agriculture shall collect and 
     publish segregated data and survey information about the 
     price, production, and marketing of major organically 
     produced commodities, as determined by the Secretary.
       ``(b) Funding.--The Secretary of Agriculture shall use 
     $3,000,000 of funds of the Commodity Credit Corporation to 
     carry out this section during fiscal year 2008, and such 
     funds shall remain available until expended.''.
       (b) Implementation Report.--Not later than 180 days after 
     the date of the enactment of this Act, the Secretary of 
     Agriculture shall submit to Congress a report regarding the 
     progress made in implementing the amendment made by 
     subsection (a).

     SEC. 10303. ORGANIC CONVERSION, TECHNICAL, AND EDUCATIONAL 
                   ASSISTANCE.

       (a) Establishment.--Not later than 180 days after the date 
     of the enactment of this section, the Secretary shall 
     establish a program to provide cost share and incentive 
     payments and technical and educational assistance to 
     producers to promote conservation practices and activities 
     for production systems undergoing transition, in whole or in 
     part, to organic production in accordance with the Organic 
     Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).
       (b) Organic Transition Cost Share and Incentive Payments.--
       (1) In general.--The Secretary shall enter into contracts 
     with eligible producers referred to in paragraph (2) to 
     provide cost-share and incentive payments to assist in the 
     transition to organic production systems.
       (2) Eligible producers.--A producer is an eligible producer 
     under this paragraph if such producer agrees to--
       (A) develop and carry out environmental and conservation 
     activities consistent with an organic plan that protect soil, 
     water, wildlife, air, and other natural resources as defined 
     by the Secretary;
       (B) receive technical and education assistance from the 
     Secretary, or from organizations, institutions, and 
     consultants with cooperative agreements with the Secretary, 
     relating to--
       (i) the development and implementation of conservation 
     practices and activities that are part of an organic plan; or
       (ii) other aspects of transition to organic production, 
     including marketing, credit, business, and risk management 
     plans;
       (C) submit to annual verification by a certifying agent 
     accredited by the Department of Agriculture under section 
     2115 of the Organic Foods Production Act of 1990 (7 U.S.C. 
     6514) to determine compliance of the producer with organic 
     certification requirements; and
       (D) develop marketing, credit, business, and risk 
     management plans, as appropriate.
       (3) Contract.--A contract entered into under paragraph (1) 
     shall provide that--
       (A) payments provided to a producer under the contract 
     shall only be used for--
       (i) conservation management and vegetative and structural 
     practices and activities during transition to certified 
     organic production that--

       (I) are consistent with an organic plan; and
       (II) protect soil, water, wildlife, air, and other natural 
     resources, as required under the Organic Foods Production Act 
     of 1990 (7 U.S.C. 6501 et seq.);

       (ii) animal production measures consistent with an organic 
     plan; and
       (iii) such other measures as the Secretary determines are 
     appropriate and consistent with an organic plan;
       (B) subject to subparagraph (C), the contract shall 
     terminate after a period of not more than three years;
       (C) the Secretary may terminate the contract if the 
     Secretary determines the eligible producer is not pursuing 
     organic certification under the Organic Foods Production Act 
     of 1990 (7 U.S.C. 6501 et seq.); and
       (D) the Secretary may require repayment in whole of 
     payments already received if the Secretary determines the 
     eligible producer is not pursuing organic certification under 
     the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et. 
     seq).
       (4) Limitations on payments.--An eligible producer may not 
     receive payments under paragraph (1)--
       (A) for a total period of more than three years;
       (B) an amount not to exceed $50 per acre for crop land, or 
     $25 per acre for grazing land; and
       (C) in an amount more than $10,000 in a fiscal year.
       (c) Technical and Educational Assistance.--The Secretary 
     shall provide producers with technical and educational 
     assistance, including through the use of competitive 
     cooperative agreements with non-profit organizations,

[[Page 21517]]

      non-governmental organizations, institutes of higher 
     education, or consultants with expertise in advisory services 
     for organic producers on organic production systems, and the 
     planning for and marketing of organic products.
       (d) Use of Funds.--The Secretary shall use 50 percent of 
     the funds made available pursuant to the authorization of 
     appropriations under subsection (f) to provide technical and 
     educational assistance under subsection (c).
       (e) Definitions.--In this section:
       (1) Organic plan.--The term ``organic plan'' means an 
     organic plan submitted under section 2114(a) of the Organic 
     Foods Production Act of 1990 (7 U.S.C. 6513(a)) and agreed to 
     by the producer and handler of a product and a certifying 
     agent under such section.
       (2) Technical and educational assistance.--The term 
     ``technical and educational assistance'' means the conveyance 
     of information and counsel regarding economic and business 
     planning, marketing, and organic practices, such as 
     entomological practices and pest and weed control and 
     prevention that satisfy organic practices.
       (f) Funding.--There is authorized to be appropriated to 
     carry out this section $50,000,000, which shall remain 
     available until expended.
                  Subtitle E--Miscellaneous Provisions

     SEC. 10401. RESTORATION OF IMPORT AND ENTRY AGRICULTURAL 
                   INSPECTION FUNCTIONS TO THE DEPARTMENT OF 
                   AGRICULTURE.

       (a) Repeal of Transfer of Functions.--Section 421 of the 
     Homeland Security Act of 2002 (6 U.S.C. 231) is repealed.
       (b) Conforming Amendment to Functions of Secretary of 
     Homeland Security.--Section 402 of the Homeland Security Act 
     of 2002 (6 U.S.C. 202) is amended--
       (1) by striking paragraph (7); and
       (2) by redesignating paragraph (8) as paragraph (7).
       (c) Transfer Agreement.--
       (1) In general.--Not later than the effective date 
     specified in subsection (g), the Secretary of Agriculture and 
     the Secretary of Homeland Security shall enter into an 
     agreement to effectuate the return of functions required by 
     the amendments made by this section.
       (2) Use of certain employees.--The agreement may include 
     authority for the Secretary of Agriculture to use employees 
     of the Department of Homeland Security to carry out 
     authorities delegated to the Animal and Plant Health 
     Inspection Service regarding the protection of domestic 
     livestock and plants.
       (d) Restoration of Department of Agriculture Employees.--
     Not later than the effective date specified in subsection 
     (g), all full-time equivalent positions of the Department of 
     Agriculture transferred to the Department of Homeland 
     Security under section 421(g) of the Homeland Security Act of 
     2002 (6 U.S.C. 231(g)) (as in effect on the day before such 
     effective date) shall be restored to the Department of 
     Agriculture.
       (e) Authority of APHIS.--
       (1) Establishment of program.--The Secretary of Agriculture 
     shall establish within the Animal and Plant Health Inspection 
     Service a program, to be known as the ``International 
     Agricultural Inspection Program'', under which the 
     Administrator of the Animal and Plant Health Inspection 
     Service (referred to in this subsection as the 
     ``Administrator'') shall carry out import and entry 
     agricultural inspections.
       (2) Information gathering and inspections.--In carrying out 
     the program under paragraph (1), the Administrator shall have 
     full access to--
       (A) each secure area of any terminal for screening 
     passengers or cargo under the control of the Department of 
     Homeland Security on the day before the date of enactment of 
     this Act for purposes of carrying out inspections and 
     gathering information; and
       (B) each database (including any database relating to cargo 
     manifests or employee and business records) under the control 
     of the Department of Homeland Security on the day before the 
     date of enactment of this Act for purposes of gathering 
     information.
       (3) Inspection alerts.--The Administrator may issue 
     inspection alerts, including by indicating cargo to be held 
     for immediate inspection.
       (4) Inspection user fees.--The Administrator may, as 
     applicable--
       (A) continue to collect any agricultural quarantine 
     inspection user fee; and
       (B) administer any reserve account for the fees.
       (5) Career track program.--
       (A) In general.--The Administrator shall establish a 
     program, to be known as the ``import and entry agriculture 
     inspector career track program'', to support the development 
     of long-term career professionals with expertise in import 
     and entry agriculture inspection.
       (B) Strategic plan and training.--In carrying out the 
     program under this paragraph, the Administrator, in 
     coordination with the Secretary of Agriculture, shall--
       (i) develop a strategic plan to incorporate import and 
     entry agricultural inspectors into the infrastructure 
     protecting food, fiber, forests, bioenergy, and the 
     environment of the United States from animal and plant pests, 
     diseases, and noxious weeds; and
       (ii) as part of the plan under clause (i), provide training 
     for import and entry agricultural inspectors participating in 
     the program not less frequently than once each year to 
     improve inspection skills
       (f) Duties of Secretary of Agriculture.--
       (1) Operating procedures and tracking system.--The 
     Secretary of Agriculture shall--
       (A) develop standard operating procedures for inspection, 
     monitoring, and auditing relating to import and entry 
     agricultural inspections, in accordance with recommendations 
     from the Comptroller General of the United States and reports 
     of interagency advisory groups, as applicable; and
       (B) ensure that the Animal and Plant Health Inspection 
     Service has a national electronic system with real-time 
     tracking capability for monitoring, tracking, and reporting 
     inspection activities of the Service.
       (2) Federal and state cooperation.--
       (A) Communication system.--The Secretary of Agriculture 
     shall develop and maintain an integrated, real-time 
     communication system with respect to import and entry 
     agricultural inspections to alert State departments of 
     agriculture of significant inspection findings of the Animal 
     and Plant Health Inspection Service.
       (3) Funding.--The Secretary of Agriculture shall pay the 
     costs of each import and entry agricultural inspector 
     employed by the Animal and Plant Health Inspection Service 
     from amounts made available to the Department of Agriculture 
     for the applicable fiscal year.
       (g) Effective Date.--The amendments made by this section 
     take effect on the date that is 180 days after the date of 
     enactment of this Act.

     SEC. 10402. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY 
                   CROPS.

       (a) Grants Authorized.--The Secretary of Agriculture may 
     make grants under this section to an eligible entity 
     described in subsection (b)--
       (1) to improve the cost-effective movement of specialty 
     crops to local, regional, national, and international 
     markets; and
       (2) to address regional intermodal transportation 
     deficiencies that adversely affect the movement of specialty 
     crops to markets inside or outside the United States.
       (b) Eligible Grant Recipients.--Grants may be made under 
     this section to any of the following (or a combination 
     thereof):
       (1) State and local governments.
       (2) Grower cooperatives.
       (3) State or regional producer and shipper organizations.
       (4) Other entities as determined to be appropriate by the 
     Secretary.
       (c) Matching Funds.--The recipient of a grant under this 
     section shall contribute an amount of non-Federal funds 
     toward the project for which the grant is provided that is at 
     least equal to the amount of grant funds received by the 
     recipient under this section.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary for each of 
     fiscal years 2008 through 2012 to carry out this section.

     SEC. 10403. AUTHORIZATION OF APPROPRIATIONS FOR MARKET NEWS 
                   ACTIVITIES REGARDING SPECIALTY CROPS.

       There are authorized to be appropriated to the Secretary of 
     Agriculture such sums as may be necessary for each of the 
     fiscal years 2008 through 2012 to support the market news 
     activities regarding specialty crops (as such term is defined 
     in section 3(1) of the Specialty Crops Competitiveness Act of 
     2004 (Public Law 108-465; 118 Stat. 3883)).

     SEC. 10404. FARMERS' MARKET PROMOTION PROGRAM.

       (a) Findings.--Congress finds that--
       (1) agricultural direct farmer-to-consumer marketing 
     activities, including farmers' markets, roadside stands, 
     community supported agriculture, internet, mail-order, and 
     other similar direct order marketing activities, 
     significantly enhance the ability of agricultural producers 
     to retain a greater share of their products' retail value;
       (2) direct farmer-to-consumer marketing activities are a 
     crucial component of the current and future viability of 
     small and mid-sized farms and ranches and beginning and 
     socially disadvantaged farmers and ranchers; and
       (3) agricultural direct marketing activities contribute to 
     the health and well-being of consumers in rural, urban, and 
     tribal communities by providing access to healthy, fresh, and 
     affordable food.
       (b) Program.--Section 6 of the Farmer-to-Consumer Direct 
     Marketing Act of 1976 (7 U.S.C. 3005) is amended--
       (1) in subsection (a)--
       (A) by striking ``Farmers' Market Promotion Program'' and 
     inserting ``Farmer Marketing Assistance Program''; and
       (B) by striking ``promote farmers' markets'' and inserting 
     ``direct producer to consumer marketing'';
       (2) in subsection (b)(1)--
       (A) in subparagraph (A), by striking ``, domestic farmers' 
     markets, roadside stands, community-supported agriculture 
     programs, and other''; and
       (B) in subparagraph (B), by striking ``farmers' markets, 
     roadside stands, community-supported agriculture programs, 
     and other direct producer-to-consumer infrastructure'' and 
     inserting ``direct producer-to-consumer marketing and 
     infrastructure opportunities'';
       (3) in subsection (c)--
       (A) by redesignating paragraphs (1) through (7) as 
     paragraphs (2) through (8), respectively;
       (B) by inserting before paragraph (2) the following new 
     paragraph:
       ``(1) two or more farmers or farm vendors who sell products 
     through a common channel of distribution;''; and
       (C) in paragraph (2) (as so redesignated) by striking ``an 
     agricultural cooperative'' and inserting ``an agricultural 
     cooperative or producer network or association'';

[[Page 21518]]

       (4) by striking subsection (e) and inserting the following 
     new subsections:
       ``(e) Eligible Activities.--A recipient of a grant under 
     this section may use the funds for the following activities:
       ``(1) Farmers markets.
       ``(2) Roadside stands.
       ``(3) Community supported agriculture operations, through 
     which a farmer agrees to deliver a certain quantity of 
     agricultural products to consumers at a set price.
       ``(4) The purchase of equipment or other activities 
     supporting the use of electronic benefit transfer systems at 
     farmers markets.
       ``(5) Agritourism activities facilitating the direct sale 
     of agricultural products, including operations where the 
     consumer picks their own agricultural products.
       ``(6) Other activities as determined appropriate by the 
     Secretary.
       ``(f) Funding.--
       ``(1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary of Agriculture use to carry out 
     this section--
       ``(A) $5,000,000 in each of fiscals year 2008, 2009, and 
     2010; and
       ``(B) $10,000,000 in each of fiscal years 2011 and 2012.
       ``(2) Use of funds.--Not less than 10 percent of the funds 
     used to carry out this section in a fiscal year under 
     paragraph (1) shall be used to support the use of electronic 
     benefits transfers at farmers' markets.''.

     SEC. 10405. NATIONAL CLEAN PLANT NETWORK.

       (a) Establishment.--There is established in the Department 
     of Agriculture a program to be known as the ``National Clean 
     Plant Network''.
       (b) Network.--The Secretary of Agriculture shall use the 
     network--
       (1) to develop a sustainable national funding source for 
     clean planting stock programs for horticultural crops 
     determined by the Secretary to be of priority for the United 
     States; and
       (2) to enter into cooperative agreements to entities that 
     have the expertise, facilities, and climate necessary to 
     efficiently produce, maintain, and distribute healthy 
     planting stock for specialty crops.
       (c) Funding.--
       (1) Commodity credit corporation.--Of the funds of the 
     Commodity Credit Corporation, the Secretary shall make 
     available to carry out this section $20,000,000 for fiscal 
     years 2008 through 2012.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as are necessary for each of 
     fiscal years 2008 through 2012 to carry out this section.
                   TITLE XI--MISCELLANEOUS PROVISIONS

                   Subtitle A--Federal Crop Insurance

Sec. 11001. Availability of supplemental crop insurance based on area 
              yield and loss plan of insurance or area revenue plan of 
              insurance.
Sec. 11002. Premiums and reinsurance requirements.
Sec. 11003. Catastrophic risk protection administrative fee.
Sec. 11004. Funding for reimbursements, contracting, risk management 
              education, and information technology.
Sec. 11005. Reimbursement of research and development costs related to 
              new crop insurance products.
Sec. 11006. Research and development contracts for organic production 
              coverage improvements.
Sec. 11007. Targeting risk management education for beginning farmers 
              and ranchers and certain other farmers and ranchers.
Sec. 11008. Crop insurance ineligibility related to crop production on 
              noncropland.
Sec. 11009. Funds for data mining.
Sec. 11010. Noninsured crop assistance program.
Sec. 11011. Change in due date for Corporation payments for 
              underwriting gains.
Sec. 11012. Sesame insurance pilot program.

                   Subtitle B--Livestock and Poultry

Sec. 11101. Sense of Congress regarding pseudorabies eradication 
              program.
Sec. 11102. Arbitration of livestock and poultry contracts.
Sec. 11103. State-inspected meat and poultry.
Sec. 11104. Country of origin labeling.
Sec. 11105. Sense of Congress regarding State inspected meat and 
              poultry products.
Sec. 11106. Sense of Congress regarding the voluntary control program 
              for low pathogenic avian influenza.
Sec. 11107. Sense of Congress regarding the cattle fever tick 
              eradication program.

   Subtitle C--Socially Disadvantaged Producers and Limited Resource 
                               Producers

Sec. 11201. Outreach and technical assistance for socially 
              disadvantaged farmers and ranchers and limited resource 
              farmers and ranchers.
Sec. 11202. Improved program delivery by Department of Agriculture on 
              Indian reservations.
Sec. 11203. Transparency and accountability for socially disadvantaged 
              farmers and ranchers.
Sec. 11204. Beginning farmer and rancher development program.
Sec. 11205. Provision of receipt for service or denial of service.
Sec. 11206. Tracking of socially disadvantaged farmers and ranchers and 
              limited resource farmers and ranchers in Census of 
              Agriculture and certain studies.
Sec. 11207. Farmworker coordinator.
Sec. 11208. Office of Outreach relocation.
Sec. 11209. Minority farmer advisory committee.
Sec. 11210. Coordinator for chronically underserved rural areas.

               Subtitle D--Other Miscellaneous Provisions

Sec. 11301. Designation of separate cotton-producing States under 
              Cotton Research and Promotion Act.
Sec. 11302. Cotton classification services.
Sec. 11303. Availability of excess and surplus computers in rural 
              areas.
Sec. 11304. Permanent debarment from participation in Department of 
              Agriculture programs for fraud.
Sec. 11305. No discrimination against use of registered pesticide 
              products or classes of pesticide products.
Sec. 11306. Prohibition on closure or relocation of county offices for 
              the Farm Service Agency, Rural Development Agency, and 
              Natural Resources Conservation Service.
Sec. 11308. Regulation of exports of plants, plant products, biological 
              control organisms, and noxious weeds.
Sec. 11309. Grants to reduce production of methamphetamines from 
              anhydrous ammonia.
Sec. 11310. USDA Graduate School.
                   Subtitle A--Federal Crop Insurance

     SEC. 11001. AVAILABILITY OF SUPPLEMENTAL CROP INSURANCE BASED 
                   ON AREA YIELD AND LOSS PLAN OF INSURANCE OR 
                   AREA REVENUE PLAN OF INSURANCE.

       (a) In General.--Section 508(c) of the Federal Crop 
     Insurance Act (7 U.S.C. 1508(c)) is amended by adding at the 
     end the following new paragraph:
       ``(11) Supplemental area coverage.--
       ``(A) Availability of coverage.--Notwithstanding paragraph 
     (4), if area coverage is available in an area (as determined 
     by the Corporation under paragraph (3)), the Corporation 
     shall provide eligible producers in that area with the option 
     to purchase supplemental insurance coverage based on--
       ``(i) an area yield and loss plan of insurance; or
       ``(ii) an area revenue plan of insurance that includes 
     coverage for a loss in yield.
       ``(B) Eligible producers.--To be eligible to obtain 
     supplemental coverage under this paragraph, a producer must 
     purchase either an individual yield and loss plan of 
     insurance or a revenue plan of insurance that includes 
     coverage for a loss in yield at an additional coverage level 
     for the same crop to be covered by the supplemental coverage.
       ``(C) Limitation.--In providing supplemental coverage to a 
     producer under this paragraph, the sum of the following shall 
     not exceed 100 percent:
       ``(i) The coverage level expressed in percentage terms for 
     the individual yield and loss plan of insurance or the 
     revenue plan of insurance that includes coverage for a loss 
     in yield that is purchased by the producer for the same crop 
     covered by the supplemental coverage, as required by 
     subparagraph (B).
       ``(ii) The share expressed in percentage terms of the area 
     yield and loss plan of insurance or the area revenue plan of 
     insurance (at whatever coverage level is selected) that is 
     used to determine the level of supplemental insurance 
     coverage provided the producer under this paragraph.
       ``(D) Payment of portion of premium.--As provided in 
     subsection (e), the Corporation shall pay a portion of the 
     premium for supplemental coverage under this paragraph and 
     the associated individual area yield and loss plan of 
     insurance or revenue plan of insurance that includes coverage 
     for a loss in yield.
       ``(E) Amount of indemnity paid under supplemental 
     coverage.--The indemnity payable under supplemental coverage 
     provided under this paragraph shall be calculated as--
       ``(i) the total indemnity for the area yield and loss plan 
     of insurance or area revenue plan of insurance, at the 
     coverage level chosen by the producer; multiplied by
       ``(ii) the share of the coverage of the area yield and loss 
     plan of insurance or area revenue plan of insurance selected 
     by the producer.
       ``(F) Special rule relating to qualifying losses.--In the 
     case of a qualifying loss in an area (as determined by the 
     Corporation) under supplemental coverage provided under this 
     paragraph, subject to the applicable coverage limits, the 
     total amount of the indemnity shall be available to the 
     producer regardless of the loss incurred under the individual 
     yield and loss plan of insurance or the revenue plan of 
     insurance that includes coverage for a loss in yield of the 
     producer.
       ``(G) Reinsurance year.--Subject to the availability of 
     area yield and loss or revenue coverage for an insurable crop 
     in an area (as determined by the Corporation), the 
     Corporation shall provide supplemental coverage under this 
     paragraph not later than the 2008 reinsurance year.''.
       (b) Conforming Amendments.--Section 508(d)(2) of the 
     Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)) is amended--
       (1) by striking ``additional coverage'' in the matter 
     preceding subparagraph (A) and inserting ``additional and 
     supplemental coverages''; and
       (2) by adding at the end the following new subparagraph:
       ``(C) In the case of supplemental coverage provided under 
     subsection (c)(11) that, in combination with either the 
     individual yield and loss coverage, or a comparable coverage 
     for a policy

[[Page 21519]]

     or plan of insurance that is not based on individual yield 
     and does not insure more than 100 percent of the recorded or 
     appraised average yield indemnified at not greater than 100 
     percent of the expected market price, the amount of the 
     premium shall--
       ``(i) be sufficient to cover anticipated losses and a 
     reasonable reserve; and
       ``(ii) include an amount for operating and administrative 
     expenses, as determined by the Corporation, on an industry-
     wide basis as a percentage of the amount of the premium used 
     to define loss ratio.''.
       (c) Offset.--The Federal Crop Insurance Corporation shall 
     take such actions, including the establishment of adequate 
     premiums, as are necessary to improve the actuarial soundness 
     of Federal multiperil crop insurance to achieve, on and after 
     October 1, 2008, an overall projected loss ratio of not 
     greater than 1.00.

     SEC. 11002. PREMIUMS AND REINSURANCE REQUIREMENTS.

       (a) Premium Adjustments.--Section 508(a) of the Federal 
     Crop Insurance Act (7 U.S.C. 1508(a)) is amended by adding at 
     the end the following new paragraph:
       ``(9) Premium adjustments.--
       ``(A) Prohibition.--Except as provided in subparagraph (B), 
     the paying, allowing, or giving, or offering to pay, allow, 
     or give, directly or indirectly, either as an inducement to 
     procure insurance or after insurance has been procured, any 
     rebate, discount, abatement, credit, or reduction of the 
     premium named in an insurance policy or any other valuable 
     consideration or inducement whatsoever not specified in the 
     policy, is strictly prohibited under this title.
       ``(B) Exceptions.--Subparagraph (A) does not apply with 
     respect to the following:
       ``(i) A rebate authorized under subsection (b)(5)(B).
       ``(ii) A performance-based discount authorized under 
     subsection (d)(3).''.
       (b) Payment of Catastrophic Risk Protection Fee on Behalf 
     of Producers.--Section 508(b)(5)(B) of the Federal Crop 
     Insurance Act (7 U.S.C. 1508(b)(5)(B)) is amended--
       (1) in the subparagraph heading, by inserting ``of 
     catastrophic risk protection fee'' after ``Payment'';
       (2) in clause (i)--
       (A) by striking ``or other payment''; and
       (B) by striking ``with catastrophic risk protection or 
     additional coverage''; and inserting ``through the payment of 
     all or a portion of catastrophic risk protection 
     administrative fees'';
       (3) in clause (ii)--
       (A) by striking ``or other payment made by an insurance 
     provider'' and inserting ``payment made pursuant to clause 
     (i) by an insurance provider'';
       (B) by striking ``issuance of catastrophic risk protection 
     or additional coverage to'' and inserting ``payment of 
     catastrophic risk protection administrative fees on behalf 
     of''; and
       (C) by striking ``or other payment'' the second place it 
     appears;
       (4) in clause (iv), by striking ``A policy or plan of 
     insurance'' and inserting ``Catastrophic risk protection 
     coverage'';
       (5) in clause (v)--
       (A) by striking ``licensing fee or other arrangement under 
     this subparagraph'' and inserting ``licensing fee 
     arrangement''; and
       (B) by striking ``levels of additional coverage'' and 
     inserting ``levels of coverage''; and
       (6) by striking clause (vi).
       (c) Change in Due Date for Policyholder Premiums.--Section 
     508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is 
     amended--
       (1) in subsection (b)(5)(C), by striking ``the date that 
     premium'' and inserting ``the same date on which the 
     premium'';
       (2) in subsection (c)(10)(B)--
       (A) by inserting ``; time for payment'' after ``waiver''; 
     and
       (B) by adding at the end the following new sentence: 
     ``Subparagraph (C) of such subsection shall apply with 
     respect to the collection date for policy premiums.''; and
       (3) in subsection (d), by adding at the end the following 
     new paragraph:
       ``(4) Billing date for premiums.--Beginning with the 2012 
     reinsurance year, the Corporation shall establish August 1 as 
     the billing date for premiums.''.
       (d) Reinsurance.--
       (1) Reimbursement rate.--Section 508(k)(4)(A) of the 
     Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(A)) is 
     amended by striking clause (ii) and inserting the following 
     new clause:
       ``(ii) for the 2009 and subsequent reinsurance years, 2 
     percentage points below the rates, in effect as of the date 
     of the enactment of this Act of the Farm, Nutrition, and 
     Bioenergy Act of 2007, for all crop insurance policies used 
     to define loss ratio.''.
       (2) Renegotiation of standard reinsurance agreement.--
     Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(k)) is amended by adding at the end the following new 
     paragraph:
       ``(8) Renegotiation of standard reinsurance agreement.--
       ``(A) Periodic renegotiation.--Following the reinsurance 
     year ending June 30, 2012, the Corporation may renegotiate 
     the financial terms of the standard reinsurance agreement 
     during the next reinsurance year and once during each period 
     of five reinsurance years thereafter.
       ``(B) Effect of federal law changes.--If changes in Federal 
     law are enacted that require revisions in the financial terms 
     of the standard reinsurance agreement, and such changes in 
     the agreement are made on a mandatory basis by the 
     Corporation, such changes will not be deemed to be a 
     renegotiation of the agreement for purposes of subparagraph 
     (A).
       ``(C) Consultation.--Approved insurance providers and their 
     representatives may confer with each other, and collectively 
     with the Corporation, during the renegotiation process under 
     subparagraph (A).''.
       (3) Treatment of 2008 reinsurance year.--Clause (ii) of 
     section 508(k)(4)(A) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(k)(4)(A)), as in effect on the day before the 
     date of the enactment of this Act, shall continue to apply 
     with respect to the 2008 reinsurance year.
       (e) Change in Due Date for Administrative and Operating 
     Expense Payment.--Section 516(b) of the Federal Crop 
     Insurance Act (7 U.S.C. 1516(b)) is amended by adding at the 
     end the following new paragraph:
       ``(3) Due date for administrative and operating expense 
     payment.--Beginning with the 2012 reinsurance year, the 
     Corporation shall make payments pursuant to paragraph (1)(B) 
     during October 2012, and for subsequent reinsurance years, 
     every October thereafter.''.
       (f) Conforming Amendments.--
       (1) Premium reduction authority.--Subsection 508(e) of the 
     Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended--
       (A) in paragraph (2) by striking ``paragraph (4)'' and 
     inserting ``paragraph (3)'';
       (B) by striking paragraph (3); and
       (C) by redesignating paragraphs (4) and (5) as paragraphs 
     (3) and (4), respectively.
       (2) Premium rate reduction pilot program.--Section 523 of 
     the Federal Crop Insurance Act (7 U.S.C. 1523) is amended--
       (A) by striking subsection (d); and
       (B) by redesignating subsection (e) as subsection (d).
       (3) Submission of policies and materials.--Section 
     508(h)(1)(A) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(h)(1)(A)) is amended by striking ``; and'' and inserting 
     ``; or''.

     SEC. 11003. CATASTROPHIC RISK PROTECTION ADMINISTRATIVE FEE.

       Section 508(b)(5)(A) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(b)(5)(A)) is amended by striking ``$100 per crop 
     per county'' and inserting in its place ``$200 per crop per 
     county''.

     SEC. 11004. FUNDING FOR REIMBURSEMENTS, CONTRACTING, RISK 
                   MANAGEMENT EDUCATION, AND INFORMATION 
                   TECHNOLOGY.

       (a) Funding.--Section 516 of the Federal Crop Insurance Act 
     (7 U.S.C. 1516) is amended by adding at the end the following 
     new subsections:
       ``(d) Funding for Reimbursements, Contracting, Risk 
     Management Education, and Information Technology.--Of the 
     amounts made available from the insurance fund established 
     under subsection (c), the Corporation shall use not more than 
     $30,000,000 in each fiscal year to carry out the following:
       ``(1) Reimbursement of research and development and 
     maintenance costs described under section 522(b).
       ``(2) Research and development contracting described under 
     section 522(c).
       ``(3) Partnerships for risk management and implementation 
     described under section 522(d).
       ``(4) Education and information programs described in 
     section 524(a)(2).
       ``(5) Partnerships for risk management education program 
     described in section 524(a)(3).
       ``(6) Information technology, as determined by the 
     Corporation.
       ``(e) Underserved States.--Of the amount made available 
     under subsection (d), the Corporation shall use not more than 
     $5,000,000 in each fiscal year to carry out contracting for 
     research and development described in section 522(c)(1)(A).''
       (b) Conforming Amendments.--
       (1) Former funding provision.--Section 522 of the Federal 
     Crop Insurance Act (7 U.S.C. 1522) is amended by striking 
     subsection (e) and inserting the following new subsection:
       ``(e) Prohibited Research and Development by Corporation.--
       ``(1) New policies.--Notwithstanding subsection (d), the 
     Corporation shall not conduct research and development for 
     any new policy for an agricultural commodity offered under 
     this title.
       ``(2) Existing policies.--Any policy developed by the 
     Corporation under this title before October 1, 2000, may 
     continue to be offered for sale to producers.''
       (2) Cross reference.--Section 523(c)(1) of the Federal Crop 
     Insurance Act (7 U.S.C. 1523(c)(1)) is amended by striking 
     ``section 522(e)(4)'' and inserting ``section 522(e)''.
       (3) Education assistance funding.--Section 524(a) of the 
     Federal Crop Insurance Act (7 U.S.C. 1524(a)) is amended as 
     follows:
       (A) in paragraph (1), by striking ``paragraph (4)'' and 
     inserting ``section 516(d)''; and
       (B) by striking paragraph (4).

     SEC. 11005. REIMBURSEMENT OF RESEARCH AND DEVELOPMENT COSTS 
                   RELATED TO NEW CROP INSURANCE PRODUCTS.

       (a) Reimbursement Authorized.--Paragraph (1) of section 
     522(b) of the Federal Crop Insurance Act (7 U.S.C. 1522(b)) 
     is amended to read as follows:
       ``(1) Research and development reimbursement.--The 
     Corporation shall provide a payment to reimburse an applicant 
     for research and development costs directly related to a 
     policy that--
       ``(A) is submitted to the Board pursuant to an FCIC 
     Reimbursement Grant under paragraph (7); or
       ``(B) is submitted to the Board and approved by the Board 
     under section 508(h) for reinsurance and, if applicable, 
     offered for sale to producers.''.

[[Page 21520]]

       (b) FCIC Reimbursement Grants.--Section 522(b) of the 
     Federal Crop Insurance Act (7 U.S.C. 1522(b)) is amended by 
     adding at the end the following new paragraph:
       ``(7) FCIC reimbursement grants.--
       ``(A) Grants authorized.--The Corporation shall provide 
     FCIC Reimbursement Grants to persons proposing to prepare for 
     submission to the Board crop insurance policies and 
     provisions under subparagraphs (A) and (B) of section 
     508(h)(1), who apply and are approved for such FCIC 
     Reimbursement Grants under the terms and conditions of this 
     paragraph.
       ``(B) Submission of application.--The Board shall receive 
     and consider applications for FCIC Reimbursement Grants at 
     least once annually. An application to receive an FCIC 
     Reimbursement Grant from the Corporation shall consist of 
     such materials as the Board may require, including--
       ``(i) a concept paper that describes the proposal in 
     sufficient detail for the Board to determine whether it 
     satisfies the requirements of subparagraph (C);
       ``(ii) a summary of --

       ``(I) the need for the product, including an assessment of 
     marketability and expected demand among affected producers;
       ``(II) support from producers, producer organizations, 
     lenders, or other interested parties;
       ``(III) the impact the product would have on producers and 
     on the crop insurance delivery system; and
       ``(IV) that no products are offered by the private sector 
     providing the same benefits and risk management services as 
     the proposal.

       ``(iii) a summary of data sources available demonstrating 
     that the product can reasonably be developed and properly 
     rated; and
       ``(iv) identification of the risks the proposed product 
     will cover and that the risks are insurable under the Act
       ``(C) Approval conditions.--Approval of an application for 
     a FCIC Reimbursement Grant shall be by majority vote of the 
     Board. The Board shall approve the application only if the 
     Board finds that--
       ``(i) the proposal contained in the application--

       ``(I) provides coverage to a crop or region not 
     traditionally served by the Federal crop insurance program;
       ``(II) provides crop insurance coverage in a significantly 
     improved form;
       ``(III) addresses a recognized flaw or problem in the 
     program;
       ``(IV) introduces a significant new concept or innovation 
     to the program; or
       ``(V) provides coverage, benefits, or risk management 
     services not available from the private sector;

       ``(ii) the applicant demonstrates the necessary 
     qualifications to complete the project successfully in a 
     timely manner with high quality;
       ``(iii) the proposal is in the interests of producers and 
     can reasonably be expected to be actuarially appropriate;
       ``(iv) the Board determines that the Corporation has 
     sufficient available funding to award the FCIC Reimbursement 
     Grant; and
       ``(v) the proposed budget and timetable are reasonable.
       ``(D) Participation.--In reviewing proposals under this 
     paragraph, the Board may use the services of persons it deems 
     appropriate for expert review. All proposals submitted under 
     this paragraph will be treated as confidential in accordance 
     with section 508(h)(4).
       ``(E) Entering into agreement.--Upon approval of the 
     application, the Board shall enter into an agreement with the 
     person for the development of a formal submission meeting the 
     requirements for a complete submission established by the 
     Board under section 508(h).
       ``(F) Feasibility studies.--In appropriate cases, the 
     Corporation may structure the FCIC Reimbursement Grant to 
     require, as an initial step within the overall process, the 
     submitter to complete a feasibility study and report the 
     results of such study to the Corporation prior to proceeding 
     with further development. The Corporation may require such 
     other reports as necessary to monitor the development 
     efforts.
       ``(G) Rates.--Payment for work performed under this 
     paragraph shall be based on rates determined by the 
     Corporation for products submitted under section 508(h) of 
     the Act or for those contracted by the Corporation under 
     section 522(c) of the Act.
       ``(H) Termination.--The Corporation or the submitter may 
     terminate any FCIC Reimbursement Grant to reimburse expenses 
     at any time for just cause. If the Corporation or the 
     submitter terminates the FCIC Reimbursement Grant before 
     final approval of the product covered thereby, the submitter 
     shall be entitled to reimbursement of all costs incurred to 
     that point, or, in the case of a fixed rate agreement, to 
     payment of an appropriate percentage. If the submitter 
     terminates development without just cause, the Corporation 
     may deny reimbursement.
       ``(I) Consideration of products.--The Board shall consider 
     any product submitted to it developed under this paragraph 
     under the rules it has established for products submitted 
     under section 508(h) of this Act.''.

     SEC. 11006. RESEARCH AND DEVELOPMENT CONTRACTS FOR ORGANIC 
                   PRODUCTION COVERAGE IMPROVEMENTS.

       Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 
     1522(c)) is amended--
       (1) by redesignating paragraph (10) as paragraph (11); and
       (2) by inserting after paragraph (9) the following new 
     paragraph:
       ``(10) Contracts for organic production coverage 
     improvements.--
       ``(A) Contract required.--Not later than 180 days after the 
     date of the enactment of the Farm, Nutrition, and Bioenergy 
     Act of 2007, the Corporation shall enter into one or more 
     contracts for the development of improvements in Federal crop 
     insurance policies covering crops produced in compliance with 
     standards issued by the Department of Agriculture under the 
     National Organic Program.
       ``(B) Review of underwriting, risk, and loss experience.--
       ``(i) Review required.--A contract under subparagraph (A) 
     shall include a review of the underwriting, risk, and loss 
     experience of organic crops covered by the Corporation, as 
     compared with the same crops produced in the same counties 
     and during the same time periods using non-organic methods. 
     The review should be designed to allow the Corporation to 
     determine whether significant, consistent, or systemic 
     variations in loss history exist between organic and non-
     organic production, and shall include the widest available 
     range of data, including loss history under existing crop 
     insurance policies, collected by the National Agricultural 
     Statistics Service, and other sources of information.
       ``(ii) Effect on premium surcharge.--Unless the review 
     under this subparagraph documents the existence of such 
     significant, consistent, and systemic variations in loss 
     history between organic and non-organic crops, either 
     collectively or on an individual basis, the Corporation shall 
     eliminate or reduce the premium surcharge that the 
     Corporation charges for coverage for organic crops
       ``(C) Additional price election.--A contract under 
     subparagraph (A) shall include the development of a 
     procedure, including any associated changes in policy terms 
     or materials required for implementation of the procedure, to 
     offer producers of organic crops an additional price election 
     that would reflect the actual retail or wholesale prices, as 
     appropriate, received by organic producers for their crops, 
     as established using data collected and maintained by the 
     Agricultural Marketing Service or other sources. The 
     development of the procedure shall be completed in a timely 
     manner to allow the Corporation to begin offering the 
     additional price election for organic crops with sufficient 
     data for the 2009 crop year, and expand it thereafter as the 
     Agricultural Marketing Service expands its data collection 
     and availability for prices of organic crops.
       ``(D) Reporting requirements.--The Corporation shall submit 
     to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate an annual report on the progress 
     made in developing and improving Federal crop insurance for 
     organic crops, including the numbers and varieties of organic 
     crops insured, the development of new insurance approaches, 
     and the progress of the initiatives mandated under this 
     paragraph. The report shall also include such recommendations 
     as the Corporation considers appropriate regarding additional 
     opportunities to improve Federal crop insurance coverage for 
     such crops.''.

     SEC. 11007. TARGETING RISK MANAGEMENT EDUCATION FOR BEGINNING 
                   FARMERS AND RANCHERS AND CERTAIN OTHER FARMERS 
                   AND RANCHERS.

       Section 524(a) of the Federal Crop Insurance Act (7 U.S.C. 
     1524(a)) is amended--
       (1) by redesignating paragraph (4) as paragraph (5); and
       (2) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Targeting risk management education for certain 
     farmers and ranchers.--
       ``(A) In general.--In carrying out the education and 
     information program established under paragraph (2) and the 
     partnerships for risk management education program under 
     paragraph (3), the Secretary shall include a special emphasis 
     on risk management strategies and education and outreach 
     specifically targeted at farmers and ranchers described in 
     subparagraph (B).
       ``(B) Covered farmers and ranchers.--Subparagraph (A) 
     applies with respect to the following:
       ``(i) Beginning farmers and ranchers.
       ``(ii) Immigrant farmers and ranchers who are attempting to 
     become established producers in the United States.
       ``(iii) Socially disadvantaged farmers and ranchers.
       ``(iv) Farmers and ranchers who are preparing to retire and 
     are using transition strategies to help new farmers and 
     ranchers get started.
       ``(v) Farmers and ranchers who are converting their current 
     production and marketing systems to pursue new markets.''.

     SEC. 11008. CROP INSURANCE INELIGIBILITY RELATED TO CROP 
                   PRODUCTION ON NONCROPLAND.

       Section 502 of the Federal Crop Insurance Act (7 U.S.C. 
     1502) is amended by adding at the end the following new 
     subsection:
       ``(e) Crop Insurance Ineligibility Related to Crop 
     Production on Noncropland.--
       ``(1) Noncropland defined.--In this subsection, the term 
     `noncropland' means native grassland and pasture the 
     Secretary determines has never been used for crop production
       ``(2) Ineligibility.--Noncropland acreage on which an 
     agricultural commodity for which a policy or plan of 
     insurance is available under this title is planted shall be 
     ineligible for crop insurance under this title for the first 
     4 years of planting, as determined by the Secretary.
       ``(3) Yield determination based on county actual production 
     history.--

[[Page 21521]]

       ``(A) In general.--If an agricultural commodity ineligible 
     for insurance as described in paragraph (2) is planted for 4 
     years, beginning with the fifth year in which the commodity 
     is planted, the producer of the commodity may procure crop 
     insurance for the commodity under this title. The yield for 
     such crop insurance shall be determined only--
       ``(i) by using the actual production history for the farm; 
     and
       ``(ii) for each year in which the farm does not have an 
     actual production history, by using the average actual 
     production history for the commodity in the county in which 
     the farm is located.
       ``(B) Exception.--If an agricultural commodity is planted 
     on noncropland acreage and is eligible for insurance as 
     provided in paragraph (2), then the yield for such crop 
     insurance shall be determined only--
       ``(i) by using the actual production history for the farm; 
     and
       ``(ii) for each year in which the farm does not have an 
     actual production history, by using the average actual 
     production history for the commodity in the county in which 
     the farm is located.
       ``(4) Effective date.--This subsection shall apply to crop 
     years following the 2007 crop year.''.

     SEC. 11009. FUNDS FOR DATA MINING.

       Section 515(k) of the Federal Crop Insurance Act (7 U.S.C. 
     1515(k)) is amended by striking paragraph (1) and inserting 
     the following new paragraph:
       ``(1) Available funds.--To carry out this section, the 
     Corporation may use, from amounts made available from the 
     insurance fund established under section 516(c)--
       ``(A) not more that $11,000,000 during fiscal year 2008; 
     and
       ``(B) not more than $7,000,000 during fiscal year 2009 and 
     each subsequent year thereafter.''.

     SEC. 11010. NONINSURED CROP ASSISTANCE PROGRAM.

       Section 196(k)(1) of the Agricultural Market Transition Act 
     (7 U.S.C. 7333(k)(1)) is amended by striking subparagraphs 
     (A) and (B) and inserting the following new subparagraphs:
       ``(A) $200 per crop per county; or
       ``(B) $600 per producer per county, but not to exceed a 
     total of $1,800 per producer.''.

     SEC. 11011. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS FOR 
                   UNDERWRITING GAINS.

       Effective beginning with the 2011 reinsurance year, the 
     Federal Crop Insurance Corporation shall make payments for 
     underwriting gains under the Federal Crop Insurance Act (7 
     U.S.C. 1501 et seq.)--
       (1) for the 2011 reinsurance year on October 1, 2012; and
       (2) for each reinsurance year thereafter on the October 1 
     of the next calendar year.

     SEC. 11012. SESAME INSURANCE PILOT PROGRAM.

       (a) Pilot Program Required.--The Secretary of Agriculture 
     shall establish and carry out a pilot program under which a 
     producer of non-dehiscent sesame under contract may elect to 
     obtain multi-peril crop insurance, as determined by the 
     Secretary.
       (b) Terms and Conditions.--The multi-peril crop insurance 
     offered under the sesame insurance pilot program shall--
       (1) be offered through reinsurance arrangements with 
     private insurance companies;
       (2) be actuarially sound; and
       (3) require the payment of premiums and administrative fees 
     by a producer obtaining the insurance.
       (c) Location.--The sesame insurance pilot program shall be 
     carried out only in the State of Texas.
       (d) Relation to Prohibition on Research and Development by 
     Corporation.--Section 522(e)(4) of the Federal Crop Insurance 
     Act (7 U.S.C. 1522(e)(4)) shall apply with respect to the 
     sesame insurance pilot program.
       (e) Duration.--The Secretary shall commence the sesame 
     insurance pilot program as soon as practicable after the date 
     of the enactment of this Act and continue the program through 
     the 2012 crop year.
                   Subtitle B--Livestock and Poultry

     SEC. 11101. SENSE OF CONGRESS REGARDING PSEUDORABIES 
                   ERADICATION PROGRAM.

       It is the sense of Congress that--
       (1) the Secretary should recognize the threat feral swine 
     pose to the domestic swine population;
       (2) keeping the United States commercial swine herd free of 
     pseudorabies is essential to maintaining and growing pork 
     export markets;
       (3) the establishment of a swine surveillance system will 
     assist the swine industry in the monitoring, surveillance, 
     and eradication of pseudorabies; and
       (4) pseudorabies eradication is a high priority that the 
     Secretary should carry out under the authorities of the 
     Animal Health Protection Act.

     SEC. 11102. ARBITRATION OF LIVESTOCK AND POULTRY CONTRACTS.

       The Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.) 
     is amended--
       (1) by redesignating section 416 as section 417; and
       (2) by inserting after section 415 the following new 
     section:

     ``SEC. 416. ARBITRATION OF LIVESTOCK AND POULTRY CONTRACTS.

       ``(a) Issuance of Regulations.--The Secretary of 
     Agriculture shall promulgate regulations to establish 
     standards related to the inclusion of arbitration provisions 
     in livestock and poultry production contracts.
       ``(b) Content.--Such regulations shall--
       ``(1) establish permissible agreements with respect to 
     venue of arbitration, allocation of arbitration costs, number 
     and appointment of arbitrators, and any other element of an 
     arbitration agreement that the Secretary determines to be 
     necessary;
       ``(2) permit a producer to seek relief in a small claims 
     court in lieu of arbitration for disputes or claims within 
     the jurisdiction of a small claims court, despite the 
     existence of an arbitration agreement; and
       ``(3) require any person appointed or to be appointed as an 
     arbitrator to disclose any circumstance likely to raise doubt 
     as to the arbitrator's impartiality.''.

     SEC. 11103. STATE-INSPECTED MEAT AND POULTRY.

       (a) Review of State Meat and Poultry Inspection Programs.--
       (1) Report.--Not later than 30 days after the date of the 
     enactment of this Act, the Secretary of Agriculture shall 
     submit to Congress a report containing the results of a 
     review by the Secretary of each State meat and poultry 
     inspection program. Such report shall include--
       (A) a determination of the effectiveness of each State meat 
     and poultry inspection program; and
       (B) an identification of changes that are necessary to 
     enable future transition to a State program of enforcing 
     Federal inspection requirements as described in the 
     amendments made by subsections (b) and (c).
       (2) Authorization of appropriations.--
       (A) In general.--There are authorized to be appropriated 
     such sums as are necessary to carry out this section.
       (B) Available funds.--Notwithstanding any other provision 
     of law, only funds specifically appropriated under 
     subparagraph (A) may be used to carry out this subsection.
       (b) State Meat Inspection Programs.--
       (1) In general.--Title III of the Federal Meat Inspection 
     Act (21 U.S.C. 661 et seq.) is amended to read as follows:
              ``TITLE III--STATE MEAT INSPECTION PROGRAMS

     ``SEC. 301. POLICY AND FINDINGS.

       ``(a) Policy.--It is the policy of Congress to protect the 
     public from meat and meat food products that are adulterated 
     or misbranded and to assist in efforts by State and other 
     government agencies to accomplish that policy.
       ``(b) Findings.--Congress finds that--
       ``(1) the goal of a safe and wholesome supply of meat and 
     meat food products throughout the United States would be 
     better served if a consistent set of requirements, 
     established by the Federal Government, were applied to all 
     meat and meat food products, whether produced under State 
     inspection or Federal inspection;
       ``(2) under such a system, State and Federal meat 
     inspection programs would function together to create a 
     seamless inspection system to ensure food safety and inspire 
     consumer confidence in the food supply in interstate 
     commerce; and
       ``(3) such a system would ensure the viability of State 
     meat inspection programs, which should help to foster the 
     viability of small establishments.

     ``SEC. 302. APPROVAL OF STATE MEAT INSPECTION PROGRAMS.

       ``(a) In General.--Notwithstanding any other provision of 
     this Act, the Secretary may approve a State meat inspection 
     program and allow the shipment in commerce of carcasses, 
     parts of carcasses, meat, and meat food products inspected 
     under the State meat inspection program in accordance with 
     this title.
       ``(b) Eligibility.--
       ``(1) In general.--To receive or maintain approval from the 
     Secretary for a State meat inspection program in accordance 
     with subsection (a), a State shall--
       ``(A) implement a State meat inspection program that 
     enforces the mandatory antemortem and postmortem inspection, 
     reinspection, sanitation, and related Federal requirements of 
     titles I, II, and IV (including the regulations, directives, 
     notices, policy memoranda, and other regulatory requirements 
     issued under those titles); and
       ``(B) enter into a cooperative agreement with the Secretary 
     in accordance with subsection (c).
       ``(2) Additional requirements.--
       ``(A) In general.--In addition to the requirements 
     described in paragraph (1), a State meat inspection program 
     reviewed in accordance with section 11103(a) of the Farm, 
     Nutrition, and Bioenergy Act of 2007 shall implement, not 
     later than 180 days after the date on which the report is 
     submitted under subsection (b) of such section, all 
     recommendations from the review, in a manner approved by the 
     Secretary.
       ``(B) Review of new state meat inspection programs.--
       ``(i) Review requirement.--Not later than one year after 
     the date on which the Secretary approves a new State meat 
     inspection program, the Secretary shall conduct a review of 
     the new State meat inspection program, which shall include--

       ``(I) a determination of the effectiveness of the new State 
     meat inspection program; and
       ``(II) identification of changes necessary to ensure 
     enforcement of Federal inspection requirements.

       ``(ii) Implementation requirements.--In addition to the 
     requirements described in paragraph (1), to continue to be an 
     approved State meat inspection program, a new State meat 
     inspection program shall implement all recommendations from 
     the review conducted in accordance with this subparagraph, in 
     a manner approved by the Secretary.

[[Page 21522]]

       ``(iii) Definition of new state meat inspection program.--
     In this subparagraph, the term `new State meat inspection 
     program' means a State meat inspection program that is not 
     approved in accordance with subsection (a) between the 
     effective date of the Farm, Nutrition, and Bioenergy Act of 
     2007 and the date that is one year after the effective date 
     of such Act.
       ``(c) Cooperative Agreement.--Notwithstanding chapter 63 of 
     title 31, United States Code, the Secretary may enter into a 
     cooperative agreement with a State that--
       ``(1) establishes the terms governing the relationship 
     between the Secretary and the State meat inspection program;
       ``(2) provides that the State will adopt (including 
     adoption by reference) provisions identical to titles I, II, 
     and IV (including the regulations, directives, notices, 
     policy memoranda, and other regulatory requirements issued 
     under those titles);
       ``(3) provides that State-inspected and passed meat and 
     meat food products shall be marked with a mark of State 
     inspection, which shall be deemed to be an official mark, in 
     accordance with requirements issued by the Secretary;
       ``(4) provides that the State will comply with all labeling 
     requirements issued by the Secretary governing meat and meat 
     food products inspected under the State meat inspection 
     program;
       ``(5) provides that the Secretary shall have authority--
       ``(A) to detain and seize livestock, carcasses, parts of 
     carcasses, meat, and meat food products under the State meat 
     inspection program;
       ``(B) to obtain access to facilities, records, livestock, 
     carcasses, parts of carcasses, meat, and meat food products 
     of any person, firm, or corporation that slaughters, 
     processes, handles, stores, transports, or sells meat or meat 
     food products inspected under the State meat inspection 
     program to determine compliance with this Act (including the 
     regulations issued under this Act); and
       ``(C) to direct the State to conduct any activity 
     authorized to be conducted by the Secretary under this Act 
     (including the regulations issued under this Act); and
       ``(6) includes such other terms as the Secretary determines 
     to be necessary to ensure that the actions of the State and 
     the State meat inspection program are consistent with this 
     Act (including the regulations, directives, notices, policy 
     memoranda, and other regulatory requirements issued under 
     this Act).
       ``(d) Restriction on Establishment Size.--After the date 
     that is 90 days after the effective date of the Farm, 
     Nutrition, and Bioenergy Act of 2007, establishments with 
     more than 50 employees may not be accepted into a State meat 
     inspection program. Any establishment that is subject to 
     state inspection on such date, may remain subject to State 
     inspection.
       ``(e) Reimbursement of State Costs.--The Secretary may 
     reimburse a State for not more than 50 percent of the State's 
     costs of meeting the Federal requirements for the State meat 
     inspection program.
       ``(f) Sampling.--A duly authorized representative of the 
     Secretary shall be afforded access to State inspected 
     establishments to take reasonable samples of the inventory of 
     such establishments upon payment of the fair market value 
     therefor.
       ``(g) Noncompliance.--If the Secretary determines that a 
     State meat inspection program does not comply with this title 
     or the cooperative agreement under subsection (c), the 
     Secretary shall take such action as the Secretary determines 
     to be necessary to ensure that the carcasses, parts of 
     carcasses, meat, and meat food products in the State are 
     inspected in a manner that effectuates this Act (including 
     the regulations, directives, notices, policy memoranda, and 
     other regulatory requirements issued under this Act).

     ``SEC. 303. AUTHORITY TO TAKE OVER STATE MEAT INSPECTION 
                   PROGRAMS.

       ``(a) Notification.--If the Secretary has reason to believe 
     that a State is not in compliance with this Act (including 
     the regulations, directives, notices, policy memoranda, and 
     other regulatory requirements issued under this Act) or the 
     cooperative agreement under section 302(c) and is considering 
     the revocation or temporary suspension of the approval of the 
     State meat inspection program, the Secretary shall promptly 
     notify and consult with the Governor of the State.
       ``(b) Suspension and Revocation.--
       ``(1) In general.--The Secretary may revoke or temporarily 
     suspend the approval of a State meat inspection program and 
     take over a State meat inspection program if the Secretary 
     determines that the State meat inspection program is not in 
     compliance with this Act (including the regulations, 
     directives, notices, policy memoranda, and other regulatory 
     requirements issued under this Act) or the cooperative 
     agreement under section 302(c).
       ``(2) Procedures for reinstatement.--A State meat 
     inspection program that has been the subject of a revocation 
     may be reinstated as an approved State meat inspection 
     program under this Act only in accordance with the procedures 
     under section 302(b)(2)(B).
       ``(c) Publication.--If the Secretary revokes or temporarily 
     suspends the approval of a State meat inspection program in 
     accordance with subsection (b), the Secretary shall publish 
     notice of the revocation or temporary suspension under that 
     subsection in the Federal Register.
       ``(d) Inspection of Establishments.--Not later than 30 days 
     after the date of publication of a determination under 
     subsection (c), an establishment subject to a State meat 
     inspection program with respect to which the Secretary makes 
     a determination under subsection (b) shall be inspected by 
     the Secretary.

     ``SEC. 304. EXPEDITED AUTHORITY TO TAKE OVER INSPECTION OF 
                   STATE-INSPECTED ESTABLISHMENTS.

       ``Notwithstanding any other provision of this title, if the 
     Secretary determines that an establishment operating under a 
     State meat inspection program is not operating in accordance 
     with this Act (including the regulations, directives, 
     notices, policy memoranda, and other regulatory requirements 
     issued under this Act) or the cooperative agreement under 
     section 302(c), and the State, after notification by the 
     Secretary to the Governor, has not taken appropriate action 
     within a reasonable time as determined by the Secretary, the 
     Secretary may immediately determine that the establishment is 
     an establishment that shall be inspected by the Secretary, 
     until such time as the Secretary determines that the State 
     will meet the requirements of this Act (including the 
     regulations, directives, notices, policy memoranda, and other 
     regulatory requirements) and the cooperative agreement with 
     respect to the establishment.

     ``SEC. 305. ANNUAL REVIEW.

       ``(a) In General.--The Secretary shall develop and 
     implement a process to annually review each State meat 
     inspection program approved under this title and to certify 
     the State meat inspection programs that comply with the 
     cooperative agreement entered into with the State under 
     section 302(c).
       ``(b) Comment From Interested Parties.--In developing the 
     review process described in subsection (a), the Secretary 
     shall solicit comment from interested parties.

     ``SEC. 306. FEDERAL INSPECTION OPTION.

       ``(a) In General.--An establishment that operates in a 
     State with an approved State meat inspection program may 
     apply for inspection under the State meat inspection program 
     or for Federal inspection.
       ``(b) Limitation.--An establishment shall not make an 
     application under subsection (a) more than once every four 
     years.''.
       (2) Restaurants and retail stores.--Title IV of the Federal 
     Meat Inspection Act is amended--
       (A) by redesignating section 411 (21 U.S.C. 681) as section 
     414; and
       (B) by inserting after section 410 (21 U.S.C. 680) the 
     following:

     ``SEC. 411. RESTAURANTS AND RETAIL STORES.

       ``(a) Limitation on Applicability of Inspection 
     Requirements.--The provisions of this Act requiring 
     inspection of the slaughter of animals and the preparation of 
     carcasses, parts of carcasses, meat, and meat food products 
     shall not apply to operations of types traditionally and 
     usually conducted at retail stores and restaurants, as 
     determined by the Secretary, if the operations are conducted 
     at a retail store, restaurant, or similar retail 
     establishment for sale of such prepared articles in normal 
     retail quantities or for service of the articles to consumers 
     at such an establishment.
       ``(b) Central Kitchen Facilities.--
       ``(1) In general.--For the purposes of this section, 
     operations conducted at a central kitchen facility of a 
     restaurant shall be considered to be conducte at a restaurant 
     if the central kitchen of the restaurant prepares meat or 
     meat food products that are ready to eat when they leave the 
     facility and are served in meals or as entrees only to 
     customers at restaurants owned or operated by the same 
     person, firm, or corporation that owns or operates the 
     facility.
       ``(2) Exception.--A facility described in paragraph (1) 
     shall be subject to section 202 and may be subject to the 
     inspection requirements of title I for as long as the 
     Secretary determines to be necessary, if the Secretary 
     determines that the sanitary conditions or practices of the 
     facility or the processing procedures or methods at the 
     facility are such that any of the meat or meat food products 
     of the facility are rendered adulterated.

     ``SEC. 412. ACCEPTANCE OF INTERSTATE SHIPMENTS OF MEAT AND 
                   MEAT FOOD PRODUCTS.

       ``Notwithstanding any provision of State law, a State or 
     local government shall not prohibit or restrict the movement 
     or sale of meat or meat food products that have been 
     inspected and passed in accordance with this Act for 
     interstate commerce.

     ``SEC. 413. ADVISORY COMMITTEES FOR FEDERAL AND STATE 
                   PROGRAMS.

       ``The Secretary may appoint advisory committees consisting 
     of such representatives of appropriate State agencies as the 
     Secretary and the State agencies may designate to consult 
     with the Secretary concerning State and Federal programs with 
     respect to meat inspection and other matters within the scope 
     of this Act.''.
       (c) State Poultry Inspection Programs.--
       (1) In general.--The Poultry Products Inspection Act (21 
     U.S.C. 451 et seq.) is amended by striking section 5 and 
     inserting the following:

     ``SEC. 5. STATE POULTRY INSPECTION PROGRAMS.

       ``(a) Policy.--It is the policy of Congress to protect the 
     public from poultry products that are adulterated or 
     misbranded and to assist in efforts by State and other 
     government agencies to accomplish that policy.
       ``(b) Findings.--Congress finds that--
       ``(1) the goal of a safe and wholesome supply of poultry 
     products throughout the United States would be better served 
     if a consistent set of requirements, established by the 
     Federal Government, were applied to all poultry products, 
     whether produced under State inspection or Federal 
     inspection;

[[Page 21523]]

       ``(2) under such a system, State and Federal poultry 
     inspection programs would function together to create a 
     seamless inspection system to ensure food safety and inspire 
     consumer confidence in the food supply in interstate 
     commerce; and
       ``(3) such a system would ensure the viability of State 
     poultry inspection programs, which should help to foster the 
     viability of small official establishments.
       ``(c) Approval of State Poultry Inspection Programs.--
       ``(1) In general.--Notwithstanding any other provision of 
     this Act, the Secretary may approve a State poultry 
     inspection program and allow the shipment in commerce of 
     poultry products inspected under the State poultry inspection 
     program in accordance with this section and section 5A.
       ``(2) Eligibility.--
       ``(A) In general.--To receive or maintain approval from the 
     Secretary for a State poultry inspection program in 
     accordance with paragraph (1), a State shall--
       ``(i) implement a State poultry inspection program that 
     enforces the mandatory antemortem and postmortem inspection, 
     reinspection, sanitation, and related Federal requirements of 
     sections 1 through 4 and 6 through 33 (including the 
     regulations, directives, notices, policy memoranda, and other 
     regulatory requirements issued under those sections); and
       ``(ii) enter into a cooperative agreement with the 
     Secretary in accordance with paragraph (3).
       ``(B) Additional requirements.--
       ``(i) In general.--In addition to the requirements 
     described in subparagraph (A), a State poultry inspection 
     program reviewed in accordance with section 11103(a) of the 
     Farm, Nutrition, and Bioenergy Act of 2007 shall implement, 
     not later 180 days after the date on which the report is 
     submitted under subsection (b) of such section, all 
     recommendations from the review, in a manner approved by the 
     Secretary.
       ``(ii) Review of new state poultry inspection programs.--

       ``(I) Review requirement.--Not later than one year after 
     the date on which the Secretary approves a new State poultry 
     inspection program, the Secretary shall conduct a review of 
     the new State poultry inspection program, which shall 
     include--

         ``(aa) a determination of the effectiveness of the new 
     State poultry inspection program; and
         ``(bb) identification of changes necessary to ensure 
     enforcement of Federal inspection requirements.

       ``(II) Implementation requirements.--In addition to the 
     requirements described in subparagraph (A), to continue to be 
     an approved State poultry inspection program, a new State 
     poultry inspection program shall implement all 
     recommendations from the review conducted in accordance with 
     this clause, in a manner approved by the Secretary.
       ``(III) Definition of new state poultry inspection 
     program.--In this clause, the term `new State poultry 
     inspection program' means a State poultry inspection program 
     that is not approved in accordance with paragraph (1) between 
     the effective date of the Farm, Nutrition, and Bioenergy Act 
     of 2007 and the date that is one year after the effective 
     date of such Act.

       ``(3) Cooperative agreement.--Notwithstanding chapter 63 of 
     title 31, United States Code, the Secretary may enter into a 
     cooperative agreement with a State that--
       ``(A) establishes the terms governing the relationship 
     between the Secretary and the State poultry inspection 
     program;
       ``(B) provides that the State will adopt (including 
     adoption by reference) provisions identical to sections 1 
     through 4 and 6 through 33 (including the regulations, 
     directives, notices, policy memoranda, and other regulatory 
     requirements issued under those sections);
       ``(C) provides that State-inspected and passed poultry 
     products may be marked with the mark of State inspection, 
     which shall be deemed to be an official mark, in accordance 
     with requirements issued by the Secretary;
       ``(D) provides that the State will comply with all labeling 
     requirements issued by the Secretary governing poultry 
     products inspected under the State poultry inspection 
     program;
       ``(E) provides that the Secretary shall have authority--
       ``(i) to detain and seize poultry and poultry products 
     under the State poultry inspection program;
       ``(ii) to obtain access to facilities, records, and poultry 
     products of any person that slaughters, processes, handles, 
     stores, transports, or sells poultry products inspected under 
     the State poultry inspection program to determine compliance 
     with this Act (including the regulations issued under this 
     Act); and
       ``(iii) to direct the State to conduct any activity 
     authorized to be conducted by the Secretary under this Act 
     (including the regulations issued under this Act); and
       ``(F) includes such other terms as the Secretary determines 
     to be necessary to ensure that the actions of the State and 
     the State poultry inspection program are consistent with this 
     Act (including the regulations, directives, notices, policy 
     memoranda, and other regulatory requirements issued under 
     this Act).
       ``(4) Restriction on establishment size.--After the date 
     that is 90 days after the effective date of the Farm, 
     Nutrition, and Bioenergy Act of 2007, establishments with 
     more than 50 employees may not be accepted into a State meat 
     inspection program. Any establishment that is subject to 
     state inspection on such date may remain subject to state 
     inspection.
       ``(5) Reimbursement of state costs.--The Secretary may 
     reimburse a State for not more than 60 percent of the State's 
     costs of meeting the Federal requirements for the State 
     poultry inspection program.
       ``(6) Sampling.--A duly authorized representative of the 
     Secretary shall be afforded access to State inspected 
     establishments to take reasonable samples of their inventory 
     upon payment of the fair market value therefor.
       ``(7) Noncompliance.--If the Secretary determines that a 
     State poultry inspection program does not comply with this 
     section, section 5A, or the cooperative agreement under 
     paragraph (3), the Secretary shall take such action as the 
     Secretary determines to be necessary to ensure that the 
     poultry products in the State are inspected in a manner that 
     effectuates this Act (including the regulations, directives, 
     notices, policy memoranda, and other regulatory requirements 
     issued under this Act).
       ``(d) Annual Review.--
       ``(1) In general.--The Secretary shall develop and 
     implement a process to annually review each State poultry 
     inspection program approved under this section and to certify 
     the State poultry inspection programs that comply with the 
     cooperative agreement entered into with the State under 
     subsection (c)(3).
       ``(2) Comment from interested parties.--In developing the 
     review process described in paragraph (1), the Secretary 
     shall solicit comment from interested parties.
       ``(e) Federal Inspection Option.--
       ``(1) In general.--An official establishment that operates 
     in a State with an approved State poultry inspection program 
     may apply for inspection under the State poultry inspection 
     program or for Federal inspection.
       ``(2) Limitation.--An official establishment shall not make 
     an application under paragraph (1) more than once every 4 
     years.

     ``SEC. 5A. AUTHORITY TO TAKE OVER STATE POULTRY INSPECTION 
                   ACTIVITIES.

       ``(a) Authority To Take Over State Poultry Inspection 
     Programs.--
       ``(1) Notification.--If the Secretary has reason to believe 
     that a State is not in compliance with this Act (including 
     the regulations, directives, notices, policy memoranda, and 
     other regulatory requirements issued under this Act) or the 
     cooperative agreement under section 5(c)(3) and is 
     considering the revocation or temporary suspension of the 
     approval of the State poultry inspection program, the 
     Secretary shall promptly notify and consult with the Governor 
     of the State.
       ``(2) Suspension and revocation.--
       ``(A) In general.--The Secretary may revoke or temporarily 
     suspend the approval of a State poultry inspection program 
     and take over a State poultry inspection program if the 
     Secretary determines that the State poultry inspection 
     program is not in compliance with this Act (including the 
     regulations, directives, notices, policy memoranda, and other 
     regulatory requirements issued under this Act) or the 
     cooperative agreement.
       ``(B) Procedures for reinstatement.--A State poultry 
     inspection program that has been the subject of a revocation 
     may be reinstated as an approved State poultry inspection 
     program under this Act only in accordance with the procedures 
     under section 5(c)(2)(B)(ii).
       ``(3) Publication.--If the Secretary revokes or temporarily 
     suspends the approval of a State poultry inspection program 
     in accordance with paragraph (2), the Secretary shall publish 
     notice of the revocation or temporary suspension under that 
     paragraph in the Federal Register.
       ``(4) Inspection of establishments.--Not later than 30 days 
     after the date of publication of a determination under 
     paragraph (3), an official establishment subject to a State 
     poultry inspection program with respect to which the 
     Secretary makes a determination under paragraph (2) shall be 
     inspected by the Secretary.
       ``(b) Expedited Authority To Take Over Inspection of State-
     Inspected Official Establishments.--Notwithstanding any other 
     provision of this title, if the Secretary determines that an 
     official establishment operating under a State poultry 
     inspection program is not operating in accordance with this 
     Act (including the regulations, directives, notices, policy 
     memoranda, and other regulatory requirements issued under 
     this Act) or the cooperative agreement under section 5(c)(3), 
     and the State, after notification by the Secretary to the 
     Governor, has not taken appropriate action within a 
     reasonable time as determined by the Secretary, the Secretary 
     may immediately determine that the official establishment is 
     an establishment that shall be inspected by the Secretary, 
     until such time as the Secretary determines that the State 
     will meet the requirements of this Act (including the 
     regulations, directives, notices, policy memoranda, and other 
     regulatory requirements) and the cooperative agreement with 
     respect to the official establishment.''.
       (2) Restaurants and retail stores, acceptance of interstate 
     shipments of poultry products, and advisory committees for 
     federal and state programs.--The Poultry Products Inspection 
     Act (21 U.S.C. 451 et seq.) is amended by inserting after 
     section 30 the following:

     ``SEC. 31. RESTAURANTS AND RETAIL STORES.

       ``(a) Limitation on Applicability of Inspection 
     Requirements.--The provisions of this Act requiring 
     inspection of the slaughter of poultry and the processing of 
     poultry products shall not apply to operations of types 
     traditionally and usually conducted at retail stores and 
     restaurants, if the operations are conducted at a retail 
     store, restaurant, or similar retail establishment for sale 
     of such prepared articles in

[[Page 21524]]

     normal retail quantities or for service of the articles to 
     consumers at such an establishment.
       ``(b) Central Kitchen Facilities.--
       ``(1) In general.--For the purposes of this section, 
     operations conducted at a central kitchen facility of a 
     restaurant shall be considered to be conducted at a 
     restaurant if the central kitchen of the restaurant prepares 
     poultry products that are ready to eat when they leave the 
     facility and are served in meals or as entrees only to 
     customers at restaurants owned or operated by the same person 
     that owns or operates the facility.
       ``(2) Exception.--A facility described in paragraph (1) 
     shall be subject to section 11(b) and may be subject to the 
     inspection requirements of this Act for as long as the 
     Secretary determines to be necessary, if the Secretary 
     determines that the sanitary conditions or practices of the 
     facility or the processing procedures or methods at the 
     facility are such that any of the poultry products of the 
     facility are rendered adulterated.

     ``SEC. 32. ACCEPTANCE OF INTERSTATE SHIPMENTS OF POULTRY 
                   PRODUCTS.

       ``Notwithstanding any provision of State law, a State or 
     local government shall not prohibit or restrict the movement 
     or sale of poultry products that have been inspected and 
     passed in accordance with this Act for interstate commerce.

     ``SEC. 33. ADVISORY COMMITTEES FOR FEDERAL AND STATE 
                   PROGRAMS.

       ``The Secretary may appoint advisory committees consisting 
     of such representatives of appropriate State agencies as the 
     Secretary and the State agencies may designate to consult 
     with the Secretary concerning State and Federal programs with 
     respect to poultry product inspection and other matters 
     within the scope of this Act''.
       (d) Regulations.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Agriculture shall 
     promulgate such regulations as are necessary to implement the 
     amendments made by subsections (b) and (c).
       (e) Effective Date.--The amendments made by subsections (b) 
     and (c) of this Act shall take effect on the date that is 180 
     days after the date of the enactment of this Act.

     SEC. 11104. COUNTRY OF ORIGIN LABELING.

       Subtitle D of the Agricultural Marketing Act of 1946 (7 
     U.S.C. 1638 et seq.) is amended--
       (1) in section 281(2)(A)--
       (A) in clause (v) by striking ``and'';
       (B) in clause (vi), by striking ``peanuts.'' and inserting 
     ``peanuts; and''; and
       (C) by adding at the end the following new clause:
       ``(vii) meat produced from goats.'';
       (2) in section 282--
       (A) in subsection (a), by striking paragraphs (2) and (3) 
     and inserting the following:
       ``(2) Designation of country of origin for beef, lamb, 
     pork, and goat.--
       ``(A) United states country of origin.--A retailer of a 
     covered commodity that is beef, lamb, pork, or goat may 
     designate the covered commodity as exclusively having a 
     United States country of origin only if the covered commodity 
     is derived from an animal that was--
       ``(i) exclusively born, raised, and slaughtered in the 
     United States; or
       ``(ii) born and raised in Alaska or Hawaii and transported 
     for a period of not more than 60 days through Canada to the 
     United States and slaughtered in the United States.
       ``(B) Multiple countries of origin.--A retailer of a 
     covered commodity that is beef, lamb, pork, or goat that is 
     derived from an animal that is--
       ``(i) not exclusively born, raised, and slaughtered in the 
     United States,
       ``(ii) born, raised, or slaughtered in the United States, 
     and
       ``(iii) not imported into the United States for immediate 
     slaughter,
     may designate the country of origin of such covered commodity 
     as all of the countries in which the animal may have been 
     born, raised, or slaughtered.
       ``(C) Imported for immediate slaughter.--A retailer of a 
     covered commodity that is beef, lamb, pork, or goat that is 
     derived from an animal that is imported into the United 
     States for immediate slaughter must designate the origin of 
     such covered commodity as--
       ``(i) the country from which the animal was imported; and
       ``(ii) the United States.
       ``(D) Foreign country of origin.--A retailer of a covered 
     commodity that is beef, lamb, pork, or goat that is derived 
     from an animal that is not born, raised, or slaughtered in 
     the United States must designate a country other than the 
     United States as the country of origin of such commodity.
       ``(E) Ground beef, pork, and lamb.--The notice of country 
     of origin for ground beef, ground pork, or ground lamb shall 
     include--
       ``(i) a list of all countries of origin of such ground 
     beef, ground pork, or ground lamb; or
       ``(ii) a list of all reasonably possible countries of 
     origin of such ground beef, ground pork, or ground lamb.
       ``(3) Designation of country of origin for fish.--
       ``(A) In general.--A retailer of a covered commodity that 
     is farm-raised fish or wild fish may designate the covered 
     commodity as having a United States country of origin only if 
     the covered commodity--
       ``(i) in the case of farm-raised fish, is hatched, raised, 
     harvested, and processed in the United States; and
       ``(ii) in the case of wild fish, is--

       ``(I) harvested in the United States, a territory of the 
     United States, or a State, or by a vessel that is documented 
     under chapter 121 of title 46, United States Code, or 
     registered in the United States; and
       ``(II) processed in the United States, a territory of the 
     United States, or a State, including the waters thereof.

       ``(B) Designation of wild fish and farm-raised fish.--The 
     notice of country of origin for wild fish and farm-raised 
     fish shall distinguish between wild fish and farm-raised 
     fish.
       ``(4) Designation of perishable agricultural commodities 
     and peanuts.--A retailer of a covered commodity that is a 
     perishable agricultural commodity or peanut may designate the 
     covered commodity as having a United States country of origin 
     only if the covered commodity is exclusively produced in the 
     United States.''; and
       (B) by striking subsection (d) and inserting the following:
       ``(d) Audit Verification System.--
       ``(1) In general.--The Secretary may conduct an audit of 
     any person that prepares, stores, handles, or distributes a 
     covered commodity for retail sale to verify compliance with 
     this subtitle (including the regulations promulgated under 
     section 284(b)).
       ``(2) Record requirements.--
       ``(A) In general.--A person subject to an audit under 
     paragraph (1) shall provide the Secretary with verification 
     of the country of origin of covered commodities. Records 
     maintained in the course of the normal conduct of the 
     business of such person, including animal health papers, 
     import or customs documents, or producer affidavits, may 
     serve as such verification.
       ``(B) Prohibition on requirement of additional records.--
     The Secretary may not require a person that prepares, stores, 
     handles, or distributes a covered commodity to maintain a 
     record of the country of origin of a covered commodity other 
     than those maintained in the course of the normal conduct of 
     the business of such person.'';
       (3) in section 283--
       (A) by striking subsections (a) and (c);
       (B) by redesignating subsection (b) subsection (a);
       (C) in subsection (a) (as so redesignated), by striking 
     ``retailer'' and inserting ``retailer or person engaged in 
     the business of supplying a covered commodity to a 
     retailer''; and
       (D) by adding at the end the following new subsection:
       ``(b) Fines.--If, on completion of the 30-day period 
     described in subsection (a)(2), the Secretary determines that 
     the retailer or person engaged in the business of supplying a 
     covered commodity to a retailer has--
       ``(1) not made a good faith effort to comply with section 
     282, and
       ``(2) continues to willfully violate section 282 with 
     respect to the violation about which the retailer or person 
     received notification under subsection (a)(1),
     after providing notice and an opportunity for a hearing 
     before the Secretary with respect to the violation, the 
     Secretary may fine the retailer or person in an amount of not 
     more than $1,000 for each violation.''; and
       (4) in section 285--
       (A) by striking ``This subtitle'' and inserting ``(a) In 
     General.--Subject to subsection (b), this subtitle''; and
       (B) by adding at the end the following new subsection:
       ``(b) Animals in the United States on January 1, 2008.--
     Notwithstanding subsection (a), this subtitle shall not apply 
     to a covered commodity that is derived from an animal that is 
     in the United States on January 1, 2008.''.

     SEC. 11105. SENSE OF CONGRESS REGARDING STATE INSPECTED MEAT 
                   AND POULTRY PRODUCTS.

       It is the sense of Congress that--
       (1) the food supply in the United States continues to be 
     the safest in the world;
       (2) State inspected meat and poultry products are safe and 
     wholesome, and should be available to consumers nationwide to 
     increase the economic viability of small establishments and 
     allow States to broadly market their products; and
       (3) the Federal and State meat and poultry inspection 
     systems should function seamlessly to ensure food safety and 
     inspire consumer confidence in the food supply.

     SEC. 11106. SENSE OF CONGRESS REGARDING THE VOLUNTARY CONTROL 
                   PROGRAM FOR LOW PATHOGENIC AVIAN INFLUENZA.

       It is the sense of Congress that--
       (1) the voluntary control program for low pathogenic avian 
     influenza is a critical component of the animal health 
     protection system of the United States, as well as a 
     safeguard against highly pathogenic avian influenza; and
       (2) the Secretary of Agriculture has appropriately provided 
     for the payment of compensation to owners of poultry and 
     cooperating State agencies of 100 percent of eligible costs, 
     and the Secretary should continue to provide such payments at 
     100 percent of such costs.

     SEC. 11107. SENSE OF CONGRESS REGARDING THE CATTLE FEVER TICK 
                   ERADICATION PROGRAM.

       It is the sense of Congress that--
       (1) the cattle fever tick and the southern cattle tick are 
     vectors of the causal agent of babesiosis, a severe and often 
     fatal disease of cattle; and
       (2) implementing a national strategic plan for the cattle 
     fever tick eradication program is a high priority that the 
     secretary should carry out in order to--
       (A) prevent the entry of cattle fever ticks into the United 
     States;
       (B) enhance and maintain an effective surveillance program 
     to rapidly detect any cattle fever tick incursions; and

[[Page 21525]]

       (C) research, identify, and procure the tools and knowledge 
     necessary to prevent and eradicate cattle fever ticks in the 
     United States.
   Subtitle C--Socially Disadvantaged Producers and Limited Resource 
                               Producers

     SEC. 11201. OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY 
                   DISADVANTAGED FARMERS AND RANCHERS AND LIMITED 
                   RESOURCE FARMERS AND RANCHERS.

       (a) In General.--Section 2501 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is 
     amended--
       (1) in subsection (a)--
       (A) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) Requirements.--The outreach and technical assistance 
     program under paragraph (1) shall be used--
       ``(A) to enhance coordination of the outreach, technical 
     assistance, and education efforts authorized under 
     agriculture programs; and
       ``(B) to assist the Secretary in--
       ``(i) reaching socially disadvantaged or limited resource 
     farmers and ranchers and prospective socially disadvantaged 
     or limited resource farmers and ranchers in an appropriate 
     manner; and
       ``(ii) improving the participation of those farmers and 
     rancher in Department programs, as determined under section 
     2501A.'';
       (B) in paragraph (3)--
       (i) in subparagraph (A), by striking ``entity to provide 
     information'' and inserting ``entity that has demonstrated an 
     ability to carry out the requirements described in paragraph 
     (2) to provide outreach''; and
       (ii) by adding at the end the following new subparagraphs:
       ``(D) Additional contracting authority.--
       ``(i) In general.--Any agency of the Department of 
     Agriculture may make grants and enter into contracts and 
     cooperative agreements with a community-based organization 
     that meets the definition of an eligible entity under 
     subsection (e) in order to utilize the community-based 
     organization to provide outreach and technical assistance.
       ``(ii) Matching funds.--As a condition of any grant made, 
     or any contract or any cooperative agreement entered into 
     under this subparagraph, the Secretary shall require the 
     eligible entity to match not less than 25 percent of the 
     total amount of the funds provided by the grant, contract, or 
     cooperative agreement.
       ``(E) Report.--The Secretary shall submit to the Committee 
     on Agriculture of the House of Representatives and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate, and make publicly available, an annual report that 
     includes a list of the following:
       ``(i) The recipients of funds made available under the 
     program.
       ``(ii) The activities undertaken and services provided.
       ``(iii) The number of producers served and outcomes of such 
     service.
       ``(iv) The problems and barriers identified by entities in 
     trying to increase participation by socially disadvantaged 
     farmers and ranchers.''; and
       (C) in paragraph (4)--
       (i) by striking subparagraph (A), and inserting the 
     following new subparagraph:
       ``(A) Availability of funds.--Of the funds of the Commodity 
     Credit Corporation, the Secretary shall make available 
     $15,000,000 for each of the fiscal years 2008 through 2012 to 
     carry out this subsection.'';
       (ii) in subparagraph (B), by striking ``authorized to be 
     appropriated under subparagraph (A)'' and inserting ``made 
     available under subparagraph (A)''; and
       (iii) by adding at the end the following new subparagraph:
       ``(C) Limitation on use of funds for administrative 
     expenses.--Not more than 5 percent of the amounts made 
     available under subparagraph (A) for a fiscal year may be 
     used for expenses related to administering the program under 
     this section.''; and
       (2) in subsection (e)(5)(A)(ii)--
       (A) by inserting ``and on behalf of'' before ``socially''; 
     and
       (B) by striking ``2-year'' and inserting ``3-year''.
       (b) Coordination With Outreach.--
       (1) In general.--Not more than 18 months after the date of 
     enactment of this Act, the Secretary shall develop a plan to 
     join and relocate--
       (A) the outreach and technical assistance program 
     established under section 2501 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 2279); and
       (B) the Office of Outreach of the Department of 
     Agriculture.
       (2) Report.--After the relocation described in this 
     subsection is completed, the Secretary shall submit to 
     Congress a report that include information describing the new 
     location of the program.

     SEC. 11202. IMPROVED PROGRAM DELIVERY BY DEPARTMENT OF 
                   AGRICULTURE ON INDIAN RESERVATIONS.

       Section 2501(g)(1) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 2279(g)(1)) is amended--
       (1) in the first sentence, by striking ``where there is a 
     demonstrated demand for service'' after ``offices''; and
       (2) by striking the second sentence.

     SEC. 11203. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY 
                   DISADVANTAGED FARMERS AND RANCHERS.

       Section 2501A of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 2279-1) is amended by striking 
     subsection (c) and inserting the following new subsections:
       ``(c) Compilation of Program Participation Data.--
       ``(1) Annual requirement.--For each county and State in the 
     United States, the Secretary of Agriculture (referred to in 
     this section as the `Secretary') shall annually compile 
     program application and participation rate data regarding 
     socially disadvantaged farmers and ranchers by computing for 
     each program of the Department of Agriculture that serves 
     agricultural producers and landowners--
       ``(A) raw numbers of applicants and participants by race, 
     ethnicity, and gender, subject to appropriate privacy 
     protections, as determined by the Secretary; and
       ``(B) the application and participation rate, by race, 
     ethnicity, and gender, as a percentage of the total 
     participation rate of all agricultural producers and 
     landowners.
       ``(2) Authority to collect data.--The heads of the agencies 
     of the Department of Agriculture shall collect and transmit 
     to the Secretary any data, including data on race, gender, 
     and ethnicity, that the Secretary determines to be necessary 
     to carry out paragraph (1).
       ``(3) Report.--Using the technologies and systems of the 
     National Agricultural Statistics Service, the Secretary shall 
     compile and present the data compiled under paragraph (1) for 
     each program described in that paragraph in a manner that 
     includes the raw numbers and participation rates for--
       ``(A) the entire United States;
       ``(B) each State; and
       ``(C) each county in each State.
       ``(4) Public availability of report.--The Secretary shall 
     maintain and make readily available to the public, via 
     website and otherwise in electronic and paper form, the 
     report described in paragraph (3).
       ``(d) Limitations on Use of Data.--
       ``(1) Privacy protections.--In carrying out this section, 
     the Secretary shall not disclose the names or individual data 
     of any program participant.
       ``(2) Authorized uses.--The data under this section shall 
     be used exclusively for the purposes described in subsection 
     (a).
       ``(3) Limitation.--Except as otherwise provided, the data 
     under this section shall not be used for the evaluation of 
     individual applications for assistance.''.

     SEC. 11204. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

       Section 7405 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 3319f) is amended by striking subsection 
     (h) and inserting the following new subsection:
       ``(h) Availability of Funds.--Of the funds of the Commodity 
     Credit Corporation, the Secretary shall make available 
     $15,000,000 for each of the fiscal years 2008 through 2012 to 
     carry out this section.''.

     SEC. 11205. PROVISION OF RECEIPT FOR SERVICE OR DENIAL OF 
                   SERVICE.

       In any case in which a producer or landowner, or 
     prospective producer or landowner, requests from the 
     Department of Agriculture any benefit or service offered by 
     the Department to agricultural producers or landowners, the 
     Secretary of Agriculture shall provide for the issuance, on 
     the date on which the producer or landowner, or prospective 
     producer or landowner, makes the request, a receipt 
     containing--
       (1) the date, place, and subject of the request; and
       (2) the action taken, not taken, or recommendations made in 
     response to the request.

     SEC. 11206. TRACKING OF SOCIALLY DISADVANTAGED FARMERS AND 
                   RANCHERS AND LIMITED RESOURCE FARMERS AND 
                   RANCHERS IN CENSUS OF AGRICULTURE AND CERTAIN 
                   STUDIES.

       The Secretary of Agriculture shall ensure, to the maximum 
     extent practicable, that the Census of Agriculture and 
     studies carried out by the Economic Research Service 
     accurately document the number, location, and economic 
     contributions of socially disadvantaged farmers and ranchers 
     and limited resource farmers and ranchers in agricultural 
     production.

     SEC. 11207. FARMWORKER COORDINATOR.

       (a) Establishment.--The Secretary of Agriculture shall 
     establish the position of Farmworker Coordinator (in this 
     section referred to as the ``Coordinator''), which shall be 
     located in the Office of Outreach of the Department of 
     Agriculture.
       (b) Duties.--The Secretary may delegate to the Coordinator 
     responsibility for any or all of the following:
       (1) Assisting in administering the program established by 
     section 2281 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (42 U.S.C. 5177a).
       (2) Serving as a liaison to community-based non-profit 
     organizations that represent, and have demonstrated 
     experience serving, low-income migrant and seasonal 
     farmworkers.
       (3) Coordinating with the Department of Agriculture and 
     State and local governments to assure that farmworker needs 
     are assessed and met during declared disasters and other 
     emergencies.
       (4) Consulting with the Office of Small Farm Coordination, 
     Office of Outreach, Outreach Coordinators, and other entities 
     to better integrate farmworker perspectives, concerns, and 
     interests into the ongoing programs of the Department.
       (5) Consulting with Hispanic-serving institutions on 
     research, program improvements, or agricultural education 
     opportunities that assist low-income and migrant seasonal 
     farmworkers.
       (5) Assuring that farmworkers have access to services and 
     support to enter agriculture as producers.

[[Page 21526]]

       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as necessary to 
     carry out this section for fiscal years 2008 through 2012.

     SEC. 11208. OFFICE OF OUTREACH RELOCATION.

       (a) Relocation Proposal.--Not more than 18 months after the 
     date of enactment of the Act, the Secretary shall develop a 
     proposal to relocate the Office of Outreach of the Department 
     of Agriculture.
       (b) Administration.--The Office of Outreach shall be 
     responsible for the administration of--
       (1) the outreach and technical assistance program 
     established under section 2501 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 2279); and
       (2) the beginning farmer and rancher development program 
     established under section 7405 of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 3319f).

     SEC. 11209. MINORITY FARMER ADVISORY COMMITTEE.

       (a) Establishment.--Not later than 18 months after the date 
     of enactment of this Act, the Secretary of Agriculture shall 
     establish an advisory committee, to be known as the 
     ``Advisory Committee on Minority Farmers'' (in this section 
     referred to as the ``Committee''), which shall be overseen by 
     the Office of Outreach of the Department of Agriculture.
       (b) Duties.--The Committee shall--
       (1) review all civil rights cases to ensure that they are 
     processed in a timely manner;
       (2) ensure that the processing of civil rights cases 
     complies with applicable laws;
       (3) report quarterly to the Secretary of Agriculture on 
     civil rights enforcement and outreach;
       (4) monitor and annually report to Congress on compliance 
     with all civil rights and related laws by all agencies and 
     under all programs of the Department;
       (5) recommend to the Secretary corrective actions to 
     prevent civil rights violations; and
       (6) review the operations of the outreach and technical 
     assistance program established under section 2501 of the 
     Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 2279).
       (c) Membership of Committee.--The Committee shall be 
     composed of the following:
       (1) Three members appointed by the Secretary.
       (2) Two members appointed by the chairman of the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate, in 
     consultation with the ranking member of the Committee.
       (3) Two members appointed by the chairman of the Committee 
     on Agriculture of the House of Representatives, in 
     consultation with the ranking member of the Committee.
       (4) A civil rights professional.
       (5) A socially disadvantaged farmer or rancher.
       (6) Such other persons or professionals as determined by 
     the Secretary to be appropriate.

     SEC. 11210. COORDINATOR FOR CHRONICALLY UNDERSERVED RURAL 
                   AREAS.

       (a) Establishment.--The Secretary of Agriculture shall 
     establish a Coordinator for Chronically Underserved Rural 
     Areas (in this section referred to as the ``Coordinator''), 
     to be located in the Office of Outreach of the Department of 
     Agriculture.
       (b) Mission.--The mission of the Coordinator shall be to 
     direct Department of Agriculture resources to high need, high 
     poverty rural areas.
       (c) Duties.--The Coordinator shall consult with other 
     offices in directing technical assistance, strategic regional 
     planning, at the State and local level, for developing rural 
     economic development that leverages the resources of State 
     and local governments and non-profit and community 
     development organizations.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as necessary to 
     carry out this section for fiscal years 2008 through 2012.
               Subtitle D--Other Miscellaneous Provisions

     SEC. 11301. DESIGNATION OF SEPARATE COTTON-PRODUCING STATES 
                   UNDER COTTON RESEARCH AND PROMOTION ACT.

       Section 17(f) of the Cotton Research and Promotion Act (7 
     U.S.C. 2116(f)) is amended by adding at the end the following 
     new sentence: ``Notwithstanding the preceding sentence, 
     effective beginning with the 2008 crop of cotton, the States 
     of Kansas, Virginia, and Florida shall each be deemed to be a 
     separate cotton-producing State for the purposes of this 
     Act.''.

     SEC. 11302. COTTON CLASSIFICATION SERVICES.

       (a) Extension.--The first sentence of section 3a of the Act 
     of March 3, 1927 (commonly known as the Cotton Statistics and 
     Estimates Act; 7 U.S.C. 473a), is amended by striking 
     ``2007'' and inserting ``2012''.
       (b) Establishment of Offices.--The second sentence of 
     section 3a of the Act of March 3, 1927, is amended in the 
     proviso--
       (1) by striking ``and'' at the end of clause (6);
       (2) by striking the period at the end of clause (7) and 
     inserting ``; and''; and
       (3) by adding at the end the following new clause: ``(8) 
     the Secretary may enter into long-term lease agreements that 
     exceed five years or may take title to property, including 
     through purchase agreements, for the purposes of obtaining 
     offices to be used for the classification of cotton in 
     accordance with this Act if the Secretary determines such 
     action would best effectuate the purposes of this Act.''.

     SEC. 11303. AVAILABILITY OF EXCESS AND SURPLUS COMPUTERS IN 
                   RURAL AREAS.

       The Secretary of Agriculture may make available to any city 
     or town located in a rural area (as defined in section 
     343(a)(13)(A) of the Consolidated Farm and Rural Development 
     Act) excess or surplus computers or other technical equipment 
     of the Department of Agriculture.

     SEC. 11304. PERMANENT DEBARMENT FROM PARTICIPATION IN 
                   DEPARTMENT OF AGRICULTURE PROGRAMS FOR FRAUD.

       The Secretary of Agriculture is hereby granted the 
     authority to permanently debar an individual, organization, 
     corporation, or other entity convicted of knowingly 
     defrauding the United States in connection with any program 
     administered by the Department of Agriculture from any 
     subsequent participation in Department of Agriculture 
     programs.

     SEC. 11305. NO DISCRIMINATION AGAINST USE OF REGISTERED 
                   PESTICIDE PRODUCTS OR CLASSES OF PESTICIDE 
                   PRODUCTS.

       In establishing priorities and evaluation criteria for the 
     approval of plans, contracts, and agreements under title II, 
     the Secretary of Agriculture shall not discriminate against 
     the use of specific registered pesticide products or classes 
     of pesticide products.

     SEC. 11306. PROHIBITION ON CLOSURE OR RELOCATION OF COUNTY 
                   OFFICES FOR THE FARM SERVICE AGENCY, RURAL 
                   DEVELOPMENT AGENCY, AND NATURAL RESOURCES 
                   CONSERVATION SERVICE.

       Until the date that is one year after the date of the 
     enactment of this Act, the Secretary of Agriculture may not 
     close or relocate a county or field office of the Farm 
     Service Agency, Rural Development Agency, or Natural 
     Resources Conservation Service of the Department of 
     Agriculture.

     SEC. 11308. REGULATION OF EXPORTS OF PLANTS, PLANT PRODUCTS, 
                   BIOLOGICAL CONTROL ORGANISMS, AND NOXIOUS 
                   WEEDS.

       (a) In General.--Subtitle A of title IV of the Agricultural 
     Risk Protection Act of 2000 (7 U.S.C. 7701 et seq. is amended 
     by adding at the end the following new section:

     ``SEC. 420. REGULATION OF EXPORTS OF PLANTS, PLANT PRODUCTS, 
                   BIOLOGICAL CONTROL ORGANISMS, AND NOXIOUS 
                   WEEDS.

       ``(a) In General.--The Secretary may regulate plants, plant 
     products, biological control organisms, and noxious weeds for 
     export purposes.
       ``(b) Duties.--The Secretary shall--
       ``(1) coordinate fruit and vegetable market analyses with 
     the private sector and the Administrator of Foreign 
     Agricultural Service; and
       ``(2) make publicly available on an Internet website--
       ``(A) the status of all export petitions;
       ``(B) to the greatest extent possible, an explanation of 
     the sanitary or phytosanitary issues associated with teach 
     pending export petition; and
       ``(C) to the greatest extent possible, information on the 
     import requirements of foreign countries for fruits and 
     vegetables.
       ``(c) Regulations.--The Secretary may issue regulations to 
     implement this section.''.
       (b) Table of Contents.--The table of contents in section 
     1(b) of such Act (7 U.S.C. 1501 note) is amended by inserting 
     after the item relating to section 419 the following new 
     item:

``Sec. 420. Regulation of exports of plants, plant products, biological 
              control organisms, and noxious weeds.''.

     SEC. 11309. GRANTS TO REDUCE PRODUCTION OF METHAMPHETAMINES 
                   FROM ANHYDROUS AMMONIA.

       (a) Grant Authority.--The Secretary of Agriculture may make 
     a grant to an eligible entity to enable the entity to obtain 
     and add to an anhydrous ammonia fertilizer nurse tank a 
     substance which will reduce the amount of methamphetamine 
     which can be produced from any anhydrous ammonia removed from 
     the tank.
       (b) Definitions.--In this section:
       (1) Eligible entity.--The term ``eligible entity'' means--
       (A) a producer of agricultural commodities;
       (B) a cooperative association a majority of the members of 
     which produce or process agricultural commodities, and
       (C) a person in the trade or business of--
       (i) selling an agricultural product, including an 
     agricultural chemical, at retail, predominantly to farmers 
     and ranchers; or
       (ii) aerial and ground application of an agricultural 
     chemical.
       (2) Nurse tank.--The term ``nurse tank'' shall have the 
     meaning set forth in section 173.315(m) of title 49, Code of 
     Federal Regulations, as in effect as of the date of the 
     enactment of this Act.
       (c) Grant Amount.--The amount of a grant made under this 
     section to an entity shall be not less than $40 and not more 
     than $60, multiplied by the number of fertilizer nurse tanks 
     of the entity.
       (d) Limitations on Authorization of Appropriations.--For 
     grants under this section, there are authorized to be 
     appropriated to the Secretary a total of not more than 
     $15,000,000 for fiscal years 2008 through 2012.

     SEC. 11310. USDA GRADUATE SCHOOL.

       (a) Section 921 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 2279b) is amended by striking 
     subsections (a) through (k) and inserting the following: 
     ``The Department of Agriculture shall not establish, 
     maintain, or otherwise operate a nonappropriated fund 
     instrumentality of the United States to develop, administer, 
     or provide educational training and professional development 
     activities, including educational activities for Federal 
     agencies, Federal employees, nonprofit organizations, other 
     entities, and members of the general public.''.
       (b) Effective Date.--The amendment made in subsection (a) 
     apply beginning October 1, 2008.


[[Page 21527]]


  The text of the adopted amendments is as follows:

                  Amendment to H.R. 2419, As Reported

                  Offered by Mr. Peterson of Minnesota

  (Consisting of Amendments to Titles IV and IX of the Reported Bill)

       [NUTRITION TITLE]

       After section 4004 of the bill, insert the following (and 
     make such technical and conforming changes as may be 
     appropriate):

     SEC. 4005. EXCLUDING COMBAT RELATED PAY FROM COUNTABLE 
                   INCOME.

       Section (5)(d) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(d)) is amended--
       (1) by striking ``and (18)'', and inserting ``(18)'', and
       (2) by inserting before the period at the end the 
     following: ``and (19) any additional payment received under 
     Chapter 5 of title 37, United States Code, by (or as an 
     allotment to or transfer from) a member of the United States 
     Armed Forces deployed to a designated combat zone for the 
     duration of the member's deployment to or service in a combat 
     zone if the additional pay was not received immediately prior 
     to serving in that or another combat zone.''.

     SEC. 4006. INCREASING THE STANDARD DEDUCTION.

       Section (5)(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)(1)) is amended--
       (1) in subparagraph (A)(ii) by striking ``not less than 
     $134'' and all that follows through the period at the end, 
     and inserting the following: ``not less than $145, $248, 
     $205, and $128, respectively. On October 1, 2008, and each 
     October 1 thereafter, such standard deduction shall be an 
     amount that is equal to the amount from the previous fiscal 
     year adjusted to the nearest lower dollar increment to 
     reflect changes in the Consumer Price Index for All Urban 
     Consumers published by the Bureau of Labor Statistics, for 
     items other than food, for the 12 months ending the preceding 
     June 30.''; and
       (2) in subparagraph (B)(ii) by striking ``not less than 
     $269.'' and inserting the following: ``not less than $291. On 
     October 1, 2008, and each October 1 thereafter, such standard 
     deduction shall be an amount that is equal to the amount of 
     the previous fiscal year adjusted to the nearest dollar 
     increment to reflect changes in the Consumer Price Index for 
     All Urban Consumers published by the Bureau of Labor 
     Statistics, for items other than food, for the 12 months 
     ending the preceding June 30.''.

     SEC. 4007. EXCLUDING DEPENDENT CARE EXPENSES.

       Section (5)(e)(3)(A) of the Food Stamp Act of 1977 (7 
     U.S.C. 2014(e)(3)(A)) is amended by striking ``, the maximum 
     allowable level of which shall be $200 per month for each 
     dependent child under 2 years of age and $175 per month for 
     each other dependent,''.

     SEC. 4008. ADJUSTING COUNTABLE RESOURCES FOR INFLATION.

       Section (5)(g) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(g)) is amended--
       (1) by striking ``(g)(1) The Secretary'' and inserting the 
     following:
       ``(g) Allowable Financial Resources.--
       ``(1) Total amount.--
       ``(A) In general.--The Secretary''.
       (2) in subparagraph (A) (as so designated by paragraph 
     (1))--
       (A) by inserting ``(as adjusted in accordance with 
     subparagraph (B))'' after ``$2,000''; and
       (B) by inserting ``(as adjusted in accordance with 
     subparagraph (B))'' after ``$3,000''; and
       (3) by adding at the end the following:
       ``(B) Adjustment for inflation.--
       ``(i) In general.--Beginning on October 1, 2007, and each 
     October 1 thereafter, the amounts in subparagraph (A) shall 
     be adjusted to the nearest $100 increment to reflect changes 
     for the 12-month period ending the preceding June in the 
     Consumer Price Index for All Urban Consumers published by the 
     Bureau of Labor Statistics of the Department of Labor.
       ``(ii) Requirement.--Each adjustment under clause (i) shall 
     be based on the unrounded amount for the prior 12-month 
     period.''.

     SEC. 4009. EXCLUDING EDUCATION ACCOUNTS FROM COUNTABLE 
                   INCOME.

       Section (5)(g) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(g)) is amended by adding at the end the following:
       ``(7) Exclusion of education accounts from countable 
     resources.--
       ``(A) Mandatory exclusions.--The Secretary shall exclude 
     from financial resources under this subsection the value of 
     any funds in a qualified tuition program described in section 
     529 of the Internal Revenue Code of 1986 or in a Coverdell 
     education savings account under section 530 of that Code.
       ``(B) Discretionary exclusions.--The Secretary may also 
     exclude from financial resources under this subsection the 
     value of any program or account included in any successor or 
     similar provision that is enacted and determined to be exempt 
     from taxation under the Internal Revenue Code of 1986.''.

     SEC. 4010. EXCLUDING RETIREMENT ACCOUNTS FROM COUNTABLE 
                   INCOME.

       Section (5)(g) of the of the Food Stamp Act of 1977 (7 
     U.S.C. 2014(g)), as amended by section 4009, is amended--
       (1) in subsection (g)(2)(B)(v) by striking ``or retirement 
     account (including an individual account)'' and inserting 
     ``account''; and
       (2) adding at the end the following:
       ``(8) Exclusion of retirement accounts from countable 
     resources.--
       ``(A) Mandatory exclusions.--The Secretary shall exclude 
     from financial resources under this subsection the value of 
     any funds in a plan, contract, or account as described in 
     section 401(a), 403(a), 403(b), 408, 408A, 457(b), or 
     501(c)(18) of the Internal Revenue Code of 1986 and the value 
     of funds in a Federal Thrift Savings Plan account as provided 
     section 8439 of title 5, United States Code.
       ``(B) Discretionary exclusions.--
       ``(i) The Secretary may exclude from financial resources 
     under this subsection any other retirement plans, contracts, 
     or accounts that have been determined to be tax qualified 
     retirement plans, contracts, or accounts, under the Internal 
     Revenue Code of 1986.
       ``(ii) The Secretary may also exclude from financial 
     resources under this subsection the value of any program or 
     account included in any successor or similar provision that 
     is enacted and determined to be exempt from taxation under 
     the Internal Revenue Code of 1986.''.
       After section 4006 of the bill, insert the following (and 
     make such technical and conforming changes as may be 
     appropriate):

     SEC. 4014. INCREASING THE MINIMUM BENEFIT.

       Section 8(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2017(a)) is amended by striking ``$10 per month'' and 
     inserting ``10 percent of the thrifty food plan for a 
     household containing 1 member, as determined by the Secretary 
     under section 3(o)''.
       Strike section 4021 of the bill, insert the following (and 
     make such technical and conforming changes as may be 
     appropriate):

     SEC. 4028. EMERGENCY FOOD ASSISTANCE PROGRAM.

       Section 27(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2036(a)) is amended by--
       (1) by striking ``(a) Purchase of Commodities'' and all 
     that follows through 2007' and inserting the following:
       ``(a) Purchase of Commodities.--
       ``(1) In general.--As provided in paragraph (2), for each 
     of the fiscal years 2008 through 2012'';
       (2) by striking ``$140,000,000 of''; and
       (3) by adding at the end the following:
       ``(2) Amounts.--The following amounts are made available to 
     carry out this subsection:
       ``(A) for fiscal year 2008, $250,000,000; and
       ``(B) for each of the fiscal years 2009 through 2012, the 
     dollar amount of commodities specified in subparagraph (A) 
     adjusted by the percentage by which the thrifty food plan has 
     been adjusted under section 3(o)(4) between June 30, 2007 and 
     June 30 of the immediately preceding fiscal year.''.

       [ENERGY TITLE]

       Section 9002 of the bill is amended by adding at the end 
     the following new paragraph:
       (3) by striking subsection (k)(2)(A) and inserting the 
     following:
       ``(A) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use $2,000,000 for each of 
     fiscal years 2008 through 2012 for bio-product testing and 
     support ongoing operations of the Designation Program, the 
     Voluntary Labeling Program, procurement program models, 
     procurement research, promotion, education, and awareness of 
     the BioPreferred Program.''.
       Section 9003(3) of the bill is amended by striking 
     ``subsections (d) through (h) as subsections (e) through (i), 
     respectively'' and inserting ``subsection (h) as subsection 
     (j) and subsections (d) through (g) as subsections (e) 
     through (h), respectively,''.
       Section 9003 of the bill is amended by striking paragraph 
     (5) and adding at the end the following new paragraphs:
       (5) by inserting after subsection (h) the following new 
     subsection:
       ``(i) Condition of Provision of Assistance.--As a condition 
     of receiving a grant or loan guarantee under this section, 
     the eligible entity shall ensure that all laborers and 
     mechanics employed by contractors or subcontractors in the 
     performance of construction work financed in whole or in part 
     with the grant or loan guarantee, as the case may be, shall 
     be paid wages at rates not less than those prevailing on 
     similar construction in the locality, as determined by the 
     Secretary of Labor in accordance with section 3141 through 
     3144, 3146, and 3147 of title 40, United States Code. The 
     Secretary of Labor shall have, with respect to such labor 
     standards, the authority and functions set forth in 
     Reorganization Plan Numbered 14 of 1950 (15 F. R. 3176; 64 
     Stat. 1267) and section 3145 of such title.'';
       (6) in subsection (j) (as so redesignated), by striking 
     ``2007'' and inserting ``2012''; and
       (7) by adding at the end the following new subsection:
       ``(k) Additional Funding for Loan Guarantees.--Of the funds 
     of the Commodity Credit Corporation, the Secretary shall use 
     to carry out this section--
       ``(1) $75,000,000 for fiscal year 2008;
       ``(2) $100,000,000 for fiscal year 2009;
       ``(3) $125,000,000 for fiscal year 2010;
       ``(4) $200,000,000 for fiscal year 2011; and
       ``(5) $300,000,000 for fiscal year 2012.''.
       Section 9005(5) of the bill is amended by striking 
     ``redesignating subsections (e) and (f) as subsections (g) 
     and (h), respectively''

[[Page 21528]]

     and inserting ``redesignating subsection (e) as subsection 
     (g) and striking subsection (f)''.
       Section 9005 of the bill is amended by adding at the end 
     the following new paragraph:
       (7) by adding at the end the following new subsection:
       ``(h) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary of Agriculture shall make 
     available to carry out this section--
       ``(1) $50,000,000 for fiscal year 2008;
       ``(2) $75,000,000 for fiscal year 2009;
       ``(3) $100,000,000 for fiscal year 2010;
       ``(4) $125,000,000 for fiscal year 2011; and
       ``(5) $150,000,000 for fiscal year 2012.''.
       Section 9007 of the bill is amended by adding at the end 
     the following new paragraph:
       (3) by striking subsection (c) and inserting the following:
       ``(c) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary of Agriculture shall use to carry 
     out this section--
       ``(1) $225,000,000 for fiscal year 2008;
       ``(2) $250,000,000 for fiscal year 2009;
       ``(3) $275,000,000 for fiscal year 2010;
       ``(4) $300,000,000 for fiscal year 2011; and
       ``(5) $350,000,000 for fiscal year 2012.''.
       Section 9008(j) of the Farm Security and Rural Investment 
     Act of 2002, as added by section 9006 of the bill, is amended 
     to read as follows:
       ``(j) Funding.--
       ``(1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary of Agriculture shall make 
     available to carry out this section--
       ``(A) $35,000,000 for fiscal year 2008;
       ``(B) $60,000,000 for fiscal year 2009;
       ``(C) $75,000,000 for fiscal year 2010;
       ``(D) $100,000,000 for fiscal year 2011; and
       ``(E) $150,000,000 for fiscal year 2012.
       ``(2) Additional funding.--In addition to amounts 
     transferred under paragraph (1), there are authorized to be 
     appropriated to carry out this section $200,000,000 for each 
     of fiscal years 2006 through 2015.''.
       At the end of title IX of the bill, add the following new 
     sections:

     SEC. 9018. BIODIESEL FUEL EDUCATION PROGRAM.

       Section 9004(d) of the Farm Security and Rural Investment 
     Act of 2002 (7 U.S.C. 8104(d)) is amended to read as follows:
       ``(d) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall make available to carry out 
     this section $2,000,000 for each of fiscal years 2008 through 
     2012.''.

     SEC. 9019. BIOMASS ENERGY RESERVE.

        Title IX of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 8101 et seq.) is amended by adding at the end 
     the following new section:

     ``SEC. 9017. BIOMASS ENERGY RESERVE.

       ``(a) Purpose.--The purpose of this section is to establish 
     a biomass energy reserve--
       ``(1) to encourage production of dedicated energy crops in 
     a sustainable manner that protects the soil, air, water, and 
     wildlife of the United States; and
       ``(2) to provide financial and technical assistance to 
     owners and operators of eligible cropland to produce 
     dedicated energy crops and crop mixes of suitable quality and 
     in sufficient quantities to support and induce development 
     and expansion of the use of the crop for--
       ``(A) bioenergy;
       ``(B) power or heat generation to supplement or replace 
     nonbiobased energy sources; or
       ``(C) biobased products to supplement or replace non 
     biobased products;
       ``(3) to establish biomass energy reserve project areas; 
     and
       ``(4) to provide financial and technical assistance to 
     owners and operators for harvesting, storing, and 
     transporting cellulosic material.
       ``(b) Definitions.-- In this section:
       ``(1) Beginning farmer or rancher.--The term `beginning 
     farmer or rancher' has the meaning given the term in section 
     343(a) of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1991(a)).
       ``(2) BER.--The term `BER' means the biomass energy reserve 
     established under this section.
       ``(3) BER project area.--The term `BER project area' means 
     an area that--
       ``(A) has eligible cropland that--
       ``(i) is owned or operated by eligible participants; and
       ``(ii) has specified boundaries that are submitted to the 
     Secretary by eligible participants and subsequently approved 
     by the Secretary; and
       ``(B) is physically located within a 50-mile radius of a 
     bioenergy facility.
       ``(4) Conservation reserve program.--The term `conservation 
     reserve program' means the conservation reserve program 
     established under subchapter B of chapter 1 of subtitle D of 
     title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et 
     seq.).
       ``(5) Contract acreage.--The term `contract acreage' means 
     eligible cropland that is covered by a BER contract entered 
     into with the Secretary.
       ``(6) Eligible applicant.--The term `eligible applicant' 
     means--
       ``(A) a collective group of owners and operators producing 
     or proposing to produce eligible dedicated energy crops;
       ``(B) an energy or agricultural company or refinery; and
       ``(C) an Agricultural Innovation Center established 
     pursuant to section 6402 of the Farm Security and Rural 
     Investment Act of 2002 (Public Law 107-171; 116 Stat. 426; 7 
     U.S.C. 1621 note).
       ``(7) Eligible cropland.--
       ``(A) In general.--The term `eligible cropland' means land 
     that the applicable county committee of the Farm Service 
     Agency determines--
       ``(i) is currently being tilled for the production of a 
     crop for harvest; or
       ``(ii) is not currently being tilled but has been tilled in 
     a prior crop year and is suitable for production of an 
     eligible dedicated energy crop.
       ``(B) Exclusions.--The term `eligible cropland' does not 
     include--
       ``(i) Federally-owned land;
       ``(ii) land enrolled in--

       ``(I) the conservation reserve program;
       ``(II) the grassland reserve program; or
       ``(III) the wetlands reserve program; and

       ``(iii) land with greater than 50 percent cover of native 
     nonwoody vegetation or forest land, as of the date of 
     enactment of this section.
       ``(8) Eligible dedicated energy crop.--
       ``(A) In general.--The term `eligible dedicated energy 
     crop' means any crop native to the United States, or another 
     crop, as determined by the Secretary, grown specifically to 
     provide raw materials for--
       ``(i) conversion to liquid transportation fuels or 
     chemicals through biochemical or thermochemical processes; or
       ``(ii) energy generation through combustion, pyrolysis, 
     gasification, cofiring, or other technologies, as determined 
     by the Secretary.
       ``(B) Exclusions.--The term `eligible dedicated energy 
     crop' does not include--
       ``(i) any crop that is eligible for payments under title I 
     or a successor title; or
       ``(ii) any plant that is invasive or noxious or has the 
     potential to become invasive or noxious, as determined by the 
     Secretary, in consultation with other appropriate Federal or 
     State departments and agencies.
       ``(9) Eligible participant.--The term `eligible 
     participant' means an owner or operator of contract acreage 
     that is physically located within a BER project area .
       ``(10) Federally-owned land.--The term `Federally-owned 
     land' means land owned by--
       ``(A) the Federal Government (including any department, 
     instrumentality, bureau, or agency of the Federal 
     Government); or
       ``(B) any corporation whose stock is wholly owned by the 
     Federal Government.
       ``(11) Forest land.--The term `forest land' means an 
     ecosystem that is at least 1 acre in size (including 
     timberland and woodland) and that (as determined by the 
     Secretary)--
       ``(A) is characterized by dense and extensive tree cover;
       ``(B) contains, or once contained, at least 10 percent tree 
     crown cover; and
       ``(C) is not developed and planned for exclusive nonforest 
     resource use.
       ``(12) Grassland reserve program.--The term `grassland 
     reserve program' means the grassland reserve program 
     established under subchapter C of chapter 2 of subtitle D of 
     title XII of the Food Security Act of 1985 (16 U.S.C. 3838n 
     et seq.).
       ``(13) Operator.--The term `operator' means an individual, 
     entity, or joint operation that is in control of the farming 
     operations on a farm during the applicable crop year.
       ``(14) Owner.--
       ``(A) In general.--The term `owner' means a person that has 
     legal ownership of eligible cropland.
       ``(B) Inclusion.--The term `owner' includes--
       ``(i) a person that is buying eligible cropland under a 
     contract for deed; and
       ``(ii) a person that has a life estate in eligible 
     cropland.
       ``(15) Qualified organization.--The term `qualified 
     organization' means--
       ``(A) an Agricultural Innovation Center established 
     pursuant to section 6402 of the Farm Security and Rural 
     Investment Act of 2002 (Public Law 107-171; 116 Stat. 426; 7 
     U.S.C. 1621 note) with significant experience in the field of 
     renewable energy, as determined by the Secretary; or
       ``(B) in a region not served by a center referred to in 
     subparagraph (A)--
       ``(i) an entity with significant experience in the field of 
     renewable energy that is geographically located in such 
     region, as determined by the Secretary; or
       ``(ii) an accredited college or university with experience 
     providing technical assistance in the field of renewable 
     energy that is geographically located in such region, as 
     determined by the Secretary.
       ``(16) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(17) Socially disadvantaged farmer or rancher.--The term 
     `socially disadvantaged farmer or rancher' means a farmer or 
     rancher who is a member of a socially disadvantaged group (as 
     defined in section 355(e) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2003(e))).
       ``(18) Wetlands reserve program.--The term `wetlands 
     reserve program' means the wetlands reserve program 
     established 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.).

[[Page 21529]]

       ``(c) Establishment.-- Not later than 90 days after the 
     date of enactment of this section, the Secretary shall 
     establish a biomass energy reserve in accordance with this 
     section. The Secretary shall ensure the purposes in 
     subsection (a) are met by including in the reserve projects 
     that include a variety of harvest and post-harvest practices, 
     including stubble height, unharvested strips (including 
     strips for wildlife habitat), and varying harvest dates and a 
     variety of monoculture and polyculture crop mixes, as 
     appropriate, by project area.
       ``(d) Proposals for BER Project Areas.--
       ``(1) Selection of qualified organizations.--
       ``(A) In general.--The Secretary shall select not more than 
     10 qualified organizations to assist--
       ``(i) eligible applicants in submitting proposals under 
     paragraph (2); and
       ``(ii) the Secretary in selecting BER project areas.
       ``(B) Region.--The Secretary shall select not more than 1 
     qualified organization to assist eligible applicants and the 
     Secretary in any particular region of the United States, as 
     determined by the Secretary.
       ``(C) Funding.--The Secretary shall provide each qualified 
     organization selected under paragraph (1) not more than 
     $300,000 to carry out this paragraph.
       ``(2) Consultation with qualified organization.--An 
     eligible applicant may consult with and submit to a qualified 
     organization a written proposal that--
       ``(A) identifies the eligible cropland that will be a part 
     of the proposed BER project area; and
       ``(B) indicates a strong likelihood that the proposed BER 
     project area will generate a sufficient quantity of biomass 
     from eligible dedicated energy crops and acres or other 
     sources to supply an existing bioenergy facility.
       ``(3) Minimum requirements.--The written proposal for a 
     proposed BER project area shall include--
       ``(A) a description of the eligible cropland of each 
     eligible participant that will participate in the proposed 
     BER project area, including--
       ``(i) the quantity of eligible cropland of each eligible 
     participant;
       ``(ii) the physical location of the eligible cropland;
       ``(iii) the 1 or more eligible dedicated energy crops that 
     will be produced on the eligible cropland; and
       ``(iv) the type of land use or crop that will be displaced 
     by the eligible dedicated energy crop;
       ``(B)(i) the name, if available, and type, location, and 
     description of the bioenergy facility that will use the 
     eligible dedicated energy crops to be produced in the 
     proposed BER project area; and
       ``(ii) a letter of commitment from a bioenergy facility 
     that the facility will use the eligible dedicated energy 
     crops intended to be produced in the proposed BER project 
     area;
       ``(C) a general analysis of the anticipated local economic 
     impact of the proposed BER project; and
       ``(D) any additional information needed to determine the 
     eligibility for, and ranking of, the proposal, as determined 
     by the Secretary.
       ``(4) Individual owners and operators.--A project area 
     proposal may not submit an individual proposal to participate 
     in the BER.
       ``(5) Eligibility criteria for ber project areas.--The 
     Secretary shall establish a system for ranking BER project 
     areas based on the following criteria:
       ``(A) The probability that the eligible dedicated energy 
     crops proposed to be produced in the proposed BER project 
     area will be used for the purposes of the BER.
       ``(B) The inclusion of adequate potential feedstocks and 
     suitable placement with respect to the bioenergy facility.
       ``(C) The potential for a positive economic impact in the 
     proposed BER project area.
       ``(D) The availability of the ownership of the bioenergy 
     facility in the proposed BER project area to producers and 
     local investors.
       ``(E) The participation rate by beginning farmers or 
     ranchers or socially disadvantaged farmers or ranchers.
       ``(F) The potential to improve soil conservation and water 
     quality, and enhance wildlife habitat, when compared to 
     existing land uses.
       ``(G) The variety of agronomic conditions the proposed 
     eligible dedicated energy crops will be grown within a 
     project area.
       ``(H) The variety of harvest and post harvest practices, 
     including stubble height, unharvested strips (including 
     strips for wildlife habitat), and varying harvest dates.
       ``(I) The variety of monoculture and polyculture crop 
     mixes, as appropriate, by project area.
       ``(6) Selection of projects.--
       ``(A) Ranking; submission to secretary.--Each qualified 
     organization selected by the Secretary under paragraph (1) 
     shall rank proposals submitted to such qualified organization 
     under paragraph (2) using the system for ranking established 
     by the Secretary under paragraph (6) and shall submit to the 
     Secretary up to five of the highest ranked applications.
       ``(B) Secretary selection.--The Secretary shall authorize 
     not less than one proposal submitted to the Secretary from 
     each qualified organization under subparagraph (A).
       ``(e) Forest Biomass Planning Grants.--
       ``(1) In general.--The Secretary shall provide forest 
     biomass planning assistance grants to private landowners to 
     develop forest stewardship plans that involve sustainable 
     management of biomass from forest land of the private 
     landowners that will preserve diversity, soil, water, or 
     wildlife values of the land, while ensuring a steady supply 
     of biomass material, through--
       ``(A) State forestry agencies, in consultation with State 
     wildlife agencies; and
       ``(B) technical service provider arrangements with third-
     parties.
       ``(2) Limitation.--The total amount of funds used to carry 
     out this subsection shall not exceed $5,000,000.
       ``(f) Duration of Contract.--
       ``(1) In general.--Subject to paragraph (2), for purposes 
     of carrying out the BER, the Secretary shall enter into 
     contracts of 5 years.
       ``(2) Early termination.--The Secretary may terminate a 
     contract early if the Secretary determines that--
       ``(A) contract acreage will not be used to produce an 
     eligible dedicated energy crop;
       ``(B) a material breach of the contract has occurred;
       ``(C) the owner or operator has died; or
       ``(D) continuation of the contract will cause undue 
     economic hardship.
       ``(g) Contract Acreage Requirements.--
       ``(1) In general.--On approval of a BER project area by the 
     Secretary, each eligible participant in the BER project area 
     shall enter into a contract with the Secretary that is 
     consistent with the BER.
       ``(2) Additional eligible participants.--The Secretary may 
     add eligible participants to a BER project area after 
     approval of the BER project area.
       ``(3) Conservation practices.--To ensure the sustainability 
     of farm operations and the protection of soil, air, water and 
     wildlife, the Secretary shall include such terms and 
     conditions in a contract entered into under paragraph (1) as 
     the Secretary considers necessary.
       ``(4) Purposes.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     to be eligible to participate in the BER, an eligible 
     participant may use eligible dedicated energy crops produced 
     on contract acreage only for the purposes described in 
     subsection (a).
       ``(B) Personal use.--During the period before the 
     commercial viability of a bioenergy facility, an eligible 
     participant may use eligible dedicated energy crops produced 
     by the eligible participant on contract acreage for personal 
     use.
       ``(C) Seed production.--During the period before the 
     commercial viability of a bioenergy facility, an eligible 
     participant may harvest and sell seed produced on contract 
     acreage.
       ``(5) Requirements.--To be eligible to participate in the 
     BER, during the term of the BER contract, an eligible 
     participant shall comply with--
       ``(A) the highly erodible land conservation requirements of 
     subtitle B of title XII of the Food Security Act of 1985 (16 
     U.S.C. 3811 et seq.); and
       ``(B) the wetland conservation requirements of subtitle C 
     of title XII of that Act (16 U.S.C. 3821 et seq.).
       ``(h) Additional Eligible Biomass.--
       ``(1) In general.--The Secretary may allow on land that is 
     enrolled in the conservation reserve program and located 
     within the BER project area the harvesting of biomass--
       ``(A) in exchange for a reduction of an applicable annual 
     payment in an amount to be determined by the Secretary;
       ``(B) in accordance with an approved conservation reserve 
     program plan, including mid-contract management and forestry 
     maintenance activities; and
       ``(C) in a manner that ensures that biomass harvest 
     activities occur outside the official nesting and brood 
     rearing season for those plans.
       ``(i) Duties of Secretary.--The Secretary shall--
       ``(1) establish and administer the BER;
       ``(2) authorize establishment of BER project areas for the 
     purposes of the BER described in subsection (a);
       ``(3) develop procedures--
       ``(A) to monitor the compliance of eligible participants 
     that have land enrolled in the BER with the requirements of 
     the BER;
       ``(B) to measure the performance of the BER; and
       ``(C) to demonstrate whether the long-term eligible 
     dedicated energy crop production goals are being achieved.
       ``(4) enter into a written contract with each eligible 
     participant that elects to participate in the BER in a BER 
     project area;
       ``(5) not enter into a contract under the BER with an 
     individual owner or operator unless the land of the eligible 
     participant is physically located in an approved BER project 
     area; and
       ``(6) provide all payments under the contract directly to 
     the eligible participant.
       ``(j) Contracts.--A contract entered into between the 
     Secretary and an eligible participant under the BER shall 
     include, at a minimum, terms that cover--
       ``(1) requirements for the eligible participant in carrying 
     out the contract, including

[[Page 21530]]

     requirements described in subsections (f), (g), and (l);
       ``(2) termination provisions;
       ``(3) payment terms and amounts to be provided on an annual 
     basis;
       ``(4) the sales or transfer of contract acreage;
       ``(5) the modification of the contract;
       ``(6) the maximum quantity of contract acreage and an 
     estimated schedule for how much eligible cropland will be 
     enrolled each contract year; and
       ``(7) any additional terms the Secretary considers 
     appropriate.
       ``(k) Payments.--
       ``(1) In general.--The Secretary shall provide payments 
     directly to eligible participants who enter into contracts 
     described in subsection (j) in accordance with such 
     subsection.
       ``(2) Establishment payments.--
       ``(A) In general.--The Secretary shall provide to an 
     eligible participant who enters into a BER contract an 
     establishment payment in an amount equal to the costs of 
     establishing an eligible dedicated energy crop on the 
     contract acreage covered by the contract.
       ``(B) Eligible establishment payments.--The costs for which 
     an eligible owner may receive an establishment payment under 
     this paragraph include--
       ``(i) the cost of seeds and stock; and
       ``(ii) the cost of planting the crop.
       ``(3) Rental payments.--
       ``(A) In general.--The Secretary shall make annual rental 
     payments to an eligible participant who enters into a BER 
     contract.
       ``(B) Period.--An eligible participant shall receive rental 
     payments for a period of not more than 5 years after entering 
     into a BER contract with the Secretary on contract acreage.
       ``(C) Reduction.--The Secretary shall reduce rental 
     payments under (A) by an amount determined to be appropriate 
     by the Secretary, if an eligible dedicated energy crop is 
     harvested in accordance with subsection (g)(4).
       ``(l) Information Sharing.--
       ``(1) In general.--Owners and operators of a farm entering 
     into a contract with the Secretary under this section shall 
     agree to make available to the Secretary, or to an 
     institution of higher education or other entity designated by 
     the Secretary, such information as the Secretary considers to 
     be appropriate to promote the production of bioenergy crops 
     and the development of biorefinery technology; and
       ``(2) Best practices database.--Subject to section 1770 of 
     the Food Security Act of 1985 (7 U.S.C. 2276), the Secretary 
     shall make available to the public in a database format the 
     best practices information developed by the Secretary in 
     providing bioenergy assistance under this section.
       ``(m) Payments for Collecting, Harvesting, Storing, and 
     Transporting Biomass Produced on BER Contract Acreage, 
     Agricultural Waste Biomass, and Sustainably-Harvested 
     Agricultural and Forest Residues.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     may provide matching payments at a rate of $1 for every $1 
     per ton provided by the bioenergy facility, in an amount 
     equal to not more than $45 per ton for a period of two 
     years--
       ``(A) to eligible participants for biomass produced on BER 
     contract acreage in exchange for a reduction of the annual 
     payment issued under subsection (k)(3), as determined by the 
     Secretary;
       ``(B) to any producer of agricultural waste biomass or 
     sustainably-harvested agricultural and forest residues in the 
     United States for the agricultural waste or residue; and
       ``(C) for residue collected as a result of the removal of 
     noxious and invasive species, in accordance with methods 
     approved by the Secretary.
       ``(2) Forest land owner eligibility.--Owners of forest land 
     shall be eligible to receive payments under this subsection 
     only if such owners are acting pursuant to a forest 
     stewardship plan.
       ``(n) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use to carry out this 
     section such sums as are necessary for each of fiscal years 
     2008 through 2012.''.

     SEC. 9020. FOREST BIOMASS FOR ENERGY.

       Title IX of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 8101 et seq.) is further amended by adding at 
     the end the following new section:

     ``SEC. 9018. FOREST BIOMASS FOR ENERGY.

       ``(a) In General.--The Secretary of Agriculture, through 
     the Forest Service, shall conduct a competitive research and 
     development program to encourage use of forest biomass for 
     energy.
       ``(b) Eligible Entities.--Entities eligible to compete 
     under this program include the Forest Service (through 
     Research and Development), other Federal agencies, State and 
     local governments, federally recognized Indian tribes, land 
     grant colleges and universities, and private entities.
       ``(c) Priority for Project Selection.--The Secretary shall 
     give priority to projects that--
       ``(1) develop technology and techniques to use low value 
     forest biomass, such as byproducts of forest health 
     treatments and hazardous fuels reduction, for the production 
     of energy;
       ``(2) develop processes that integrate production of energy 
     from forest biomass into biorefineries or other existing 
     manufacturing streams;
       ``(3) develop new transportation fuels from forest biomass; 
     and
       ``(4) improve the growth and yield of trees intended for 
     renewable energy production.
       ``(d) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall make available to carry out 
     this section $15,000,000 for each of fiscal years 2008 
     through 2012.''.
       At the end of the bill, add the following:

TITLE XII--PREVENTION OF TAX TREATY EXPLOITATION TO EVADE UNITED STATES 
                                TAXATION

     SEC. 12001. LIMITATION ON TREATY BENEFITS FOR CERTAIN 
                   DEDUCTIBLE PAYMENTS.

       (a) In General.--Section 894 of the Internal Revenue Code 
     of 1986 (relating to income affected by treaty) is amended by 
     adding at the end the following new subsection:
       ``(d) Limitation on Treaty Benefits for Certain Deductible 
     Payments.--
       ``(1) In general.--In the case of any deductible related-
     party payment, the amount of any withholding tax imposed 
     under chapter 3 (and any tax imposed under subpart A or B of 
     this part) with respect to such payment shall not be less 
     than the amount which would be imposed if the payment were 
     made directly to the foreign parent corporation (taking into 
     account any income tax treaty between the United States and 
     the country in which the foreign parent corporation is 
     resident).
       ``(2) Deductible related-party payment.--For purposes of 
     this subsection, the term `deductible related-party payment' 
     means any payment made, directly or indirectly, by any person 
     to any other person if the payment is allowable as a 
     deduction under this chapter and both persons are members of 
     the same foreign controlled group of entities.
       ``(3) Foreign controlled group of entities.--For purposes 
     of this subsection--
       ``(A) In general.--The term `foreign controlled group of 
     entities' means a controlled group of entities the common 
     parent of which is a foreign corporation.
       ``(B) Controlled group of entities.--The term `controlled 
     group of entities' means a controlled group of corporations 
     as defined in section 1563(a)(1), except that--
       ``(i) `more than 50 percent' shall be substituted for `at 
     least 80 percent' each place it appears therein, and
       ``(ii) the determination shall be made without regard to 
     subsections (a)(4) and (b)(2) of section 1563.

     A partnership or any other entity (other than a corporation) 
     shall be treated as a member of a controlled group of 
     entities if such entity is controlled (within the meaning of 
     section 954(d)(3)) by members of such group (including any 
     entity treated as a member of such group by reason of this 
     sentence).
       ``(4) Foreign parent corporation.--For purposes of this 
     subsection, the term `foreign parent corporation' means, with 
     respect to any deductible related-party payment, the common 
     parent of the foreign controlled group of entities referred 
     to in paragraph (3)(A).
       ``(5) Regulations.--The Secretary may prescribe such 
     regulations or other guidance as are necessary or appropriate 
     to carry out the purposes of this subsection, including 
     regulations or other guidance which provide for--
       ``(A) the treatment of two or more persons as members of a 
     foreign controlled group of entities if such persons would be 
     the common parent of such group if treated as one 
     corporation, and
       ``(B) the treatment of any member of a foreign controlled 
     group of entities as the common parent of such group if such 
     treatment is appropriate taking into account the economic 
     relationships among such entities.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments made after the date of the enactment 
     of this Act.
       At the end of title XI, add the following new section:

     SEC. 1331_. PREVENTION AND INVESTIGATION OF PAYMENT AND FRAUD 
                   AND ERROR.

       Section 1113(k) of the Right to Financial Privacy Act of 
     1978 (12 U.S.C. 3413(k)) is amended to read as follows:
       ``(k) Disclosure Necessary for Proper Administration of 
     Programs of Certain Government Authorities.--
       ``(1) Disclosure to government authorities.--Nothing in 
     this title shall apply to the disclosure by the financial 
     institution of the financial records of any customer to the 
     Department of the Treasury, the Social Security 
     Administration, the Railroad Retirement Board, or any other 
     Government authority that certifies, disburses, or collects 
     payments, when the disclosure of such information is 
     necessary to, and such information is used solely for the 
     purposes of--
       ``(A) the proper administration of section 1441 of the 
     Internal Revenue Code of 1986 (26 U.S.C. 1441);

[[Page 21531]]

       ``(B) the proper administration of title II of the Social 
     Security Act (42 U.S.C. 401 et seq.);
       ``(C) the proper administration of the Railroad Retirement 
     Act of 1974 (45 U.S.C. 231 et seq.);
       ``(D) the verification of the identify of any person in 
     connection with the issuance of a Federal payment or 
     collection of funds by a Government authority; or
       ``(E) the investigation or recovery of an improper Federal 
     payment or collection of funds, or an improperly negotiated 
     Treasury check.
       ``(2) Limitations on subsequent disclosure.--
     Notwithstanding any other provision of law, any request 
     authorized by paragraph (1), and the information contained 
     therein, may be used by the financial institution and its 
     agents solely for the purpose of providing the customer's 
     financial records to the Government authority requesting the 
     information and shall be barred from redisclosure by the 
     financial institution or its agents. Any Government authority 
     receiving information pursuant to paragraph (1) may not 
     disclose or use the information except for the purposes set 
     forth in such paragraph.''.

       [COMMODITY TITLE]

       In section 1103(f)(3), strike subparagraph (B) and insert 
     the following new subparagraph:
       (B) the final partial payment shall be made the later of 
     the following:
       (i) As soon as practicable after the end of the 12-month 
     marketing year for the covered commodity.
       (ii) October 1 of the fiscal year starting in the same 
     calendar year as the end of the marketing year.
       In section 1104(h)(3), strike subparagraph (B) and insert 
     the following new subparagraph:
       (B) the final partial payment shall be made the later of 
     the following:
       (i) As soon as practicable after the end of the 12-month 
     marketing year for the covered commodity.
       (ii) October 1 of the fiscal year starting in the same 
     calendar year as the end of the marketing year.
       At the end of section 1407, add the following new 
     subsection:
       (d) Refund of Assessments on Imported Dairy Products.--
     Section 113(g) of the Dairy Production Stabilization Act of 
     1983 (7 U.S.C. 4504(g)) is amended by adding at the end the 
     following:
       ``(7) Refund of assessments on certain imported products.--
       ``(A) In general.--An importer is entitled to a refund of 
     any assessment paid under this subsection on imported dairy 
     products imported under a contract entered into prior to July 
     26, 2007.
       ``(B) Expiration.--Refunds under paragraph (A) shall expire 
     one year after the date of the enactment of the Farm, 
     Nutrition, and Bioenergy Act of 2007.''.
       Page 116, line 25, strike ``16'' and insert ``18''.
       Page 117, line 19, strike ``(2)(E)'' and insert ``(2)(C)''.
       Page 117, line 24, strike ``institution'' and 
     ``institutions''.
       Page 150, line 18, strike ``2012'' and insert ``2011''.

       [CONSERVATION TITLE]

       Page 157, beginning line 22, strike subparagraph (C) 
     relating to annual survey funding.
       In section 2101, add at the end the following new 
     subsection:
       (j) Exceptions to Early Termination.--Section 1235(e)(2) of 
     the Food Security Act of 1985 (16 U.S.C. 3835(e)(2)) is 
     amended by adding at the end the following new subparagraph:
       ``(D) Land enrolled under continuous signup.''.
       In section 2102(e), strike paragraph (3) and insert the 
     following new paragraph:
       (3) by striking subsection (f) and inserting the following 
     new subsection:
       ``(f) Compensation.--Compensation for easements acquired by 
     the Secretary under this subchapter shall be made in cash in 
     such amount as agreed to and specified in the easement 
     agreement. Lands may be enrolled through the submission of 
     bids under a procedure established by the Secretary. 
     Commendation may be provided in not less than 5, nor more 
     than 30, annual payments of equal or unequal size, as agreed 
     to by the owner and the Secretary based on the following 
     option that results in the lowest amount of compensation to 
     be paid by the Secretary:
       ``(1) A percentage of the fair market value based on the 
     Uniform Standards for Professional Appraisals Procedures, as 
     determined by the Secretary or a percentage of the market 
     value determined by an area-wide market survey.
       ``(2) A geographic cap, prescribed in regulations issued by 
     the Secretary.
       ``(3) The offer made by the landowner.''; and
       Page 194, line 10, strike ``or''.
       Page 194, line 11, strike the period and insert ``; or''.
       Page 194, after line 11, insert the following new clause:
       ``(iv) improve watershed health.''.
       Page 206, after line 2, insert the following new subsection 
     (and redesignate the subsequent subsection as subsection 
     (e)):
       ``(d) Air Quality.--Of the funds made available under 
     subsection (e)(1), the Secretary shall use $10,000,000 for 
     fiscal year 2008, $15,000,000 for fiscal year 2009, 
     $30,000,000 for fiscal year 2010, $40,000,000 for fiscal year 
     2011, and $55,000,000 for fiscal year 2012 to support air 
     quality improvements to help producers meet State and local 
     regulatory requirements related to air quality. 
     Notwithstanding the requirements under subsections (a) and 
     (b), these funds shall be made available to a State on the 
     basis of air quality concerns facing that producers in that 
     State. The funds made available shall be used to provide 
     cost-share and incentive payments to producers.''.
       Page 206, beginning line 24, strike paragraph (4).
       Page 209, line 17, insert after ``the Everglades,'' the 
     following: ``the Sacramento River watershed,''.
       Page 219, line 23, strike ``or organizational purpose''.
       Page 220, line 2, strike ``and technical ability''.
       Page 220, beginning line 9, strike subparagraph (C).
       Page 221, beginning line 1, strike subparagraphs (F) and 
     (G).
       Page 221, line 12, insert after ``eligible entity,'' the 
     following: ``other than a certified State,''.
       Page 222, line 19, strike ``preserve'' and insert 
     ``enforce''.
       Page 238, line 13, strike ``$1,500,000,000'' and insert 
     ``$1,250,000,000''.
       Page 264, line 20, strike ``section 501(c)(2)'' and insert 
     ``section 501(c)(3)''.
       At the end of title II (page 272, after line 2), add the 
     following new section:

     SEC. 2504. PILOT PROGRAM FOR FOUR-YEAR CROP ROTATION FOR 
                   PEANUTS.

       (a) Contract Authority.--The Secretary of Agriculture shall 
     enter into a contract with a peanut producer under which the 
     producer will implement a four-year crop rotation for 
     peanuts.
       (b) Contract Payments.--Under the contract, the Secretary 
     shall pay to the producer a contract implementation payment, 
     in an amount determined to be appropriate by the Secretary.
       (c) Funding.--For each of fiscal years 2008 through 2012, 
     the Secretary shall use the funds, facilities, and 
     authorities of the Commodity Credit Corporation to carry out 
     the provisions under this section, except that funding of the 
     pilot program may not exceed $10,000,000 in each of such 
     fiscal years.

       [TRADE TITLE]

       Page 274, strike line 1 and all that follows through line 4 
     and insert the following:
       (e) Food Aid Consultative Group.--
       (1) Report to congress.--Section 205 of the Agricultural 
     Trade Development and Assistance Act of 1954 (7 U.S.C. 1725) 
     is amended--
       (A) by redesignating subsection (f) as subsection (g); and
       (B) by inserting after subsection (e) the following new 
     subsection:
       ``(f) Report to Congress.--
       ``(1) In general.--Not later than 180 days after the date 
     of the enactment of the Farm, Nutrition, and Bioenergy Act of 
     2007, and annually thereafter until December 31, 2012, the 
     Administrator of the United States Agency for International 
     Development, in close consultation with the Group, shall 
     submit to the appropriate congressional committees a report 
     on efforts taken by the United States Agency for 
     International Development and the Department of Agriculture 
     to develop a strategy under this section to achieve an 
     integrated and effective food assistance program.
       ``(2) Appropriate congressional committees defined.--In 
     this subsection, the term `appropriate congressional 
     committees' means--
       ``(A) the Committee on Foreign Affairs and the Committee on 
     Agriculture of the House of Representatives; and
       ``(B) the Committee on Agriculture, Nutrition, and Forestry 
     of the Senate.''.
       (2) Termination.--Such section is further amended in 
     subsection (g) (as redesignated by paragraph (1)(A)) by 
     striking ``2007'' and inserting ``2012''.
       Page 275, line 14, insert ``paragraph'' before ``(1)''.
       Page 275, after line 14, insert the following new 
     paragraph:
       ``(3) Government accountability office.--Not later than 270 
     days after the date of the submission of the report under 
     paragraph (2), the Comptroller General of the United States 
     shall submit to the appropriate congressional committees a 
     report that--
       ``(A) reviews and comments on the report under paragraph 
     (2); and
       ``(B) provides recommendations regarding any additional 
     actions necessary to improve the monitoring and evaluation of 
     assistance provided under this title.''.
       Page 275, line 15, strike ``(3)'' and insert ``(4)''.
       Page 275, line 21, strike ``(4)'' and insert ``(5)''.
       Page 276, line 3, strike the closing quotation marks and 
     the period at the end.
       Page 276, after line 3, insert the following:
       ``(6) Appropriate congressional committees defined.--In 
     this subsection, the term `appropriate congressional 
     committees' means--
       ``(A) the Committee on Foreign Affairs and the Committee on 
     Agriculture of the House of Representatives; and

[[Page 21532]]

       ``(B) the Committee on Agriculture, Nutrition, and Forestry 
     of the Senate.''.
       Page 276, after line 12, insert the following:
       (1) by striking ``Funds'' and inserting ``(A) In general.--
     Funds'';
       Page 276, line 13, strike ``(1)'' and insert ``(2)''.
       Page 276, line 14, strike ``and''.
       Page 276, line 15, strike ``(2)'' and insert ``(3)''.
       Page 276, line 16, strike the period at the end and insert 
     ``; and''.
       Page 276, after line 16, insert the following:
       (4) by adding at the end the following new subparagraph:
       ``(B) Additional prepositioning sites.--
       ``(i) Feasibility assessment.--On or after the date of the 
     enactment of the Farm, Nutrition, and Bioenergy Act of 2007, 
     the Administrator is authorized to carry out assessments for 
     the establishment of not less than two sites to determine the 
     feasibility of and costs associated with using such sites for 
     the purpose of storing and handling agricultural commodities 
     for prepositioning in foreign countries.
       ``(ii) Establishment of sites.--Based on the results of the 
     assessments carried out under clause (i), the Administrator 
     is authorized to establish additional sites for pre-
     positioning in foreign countries.
       ``(iii) Authorization of appropriations.--To carry out this 
     subparagraph, there are authorized to be appropriated to the 
     Administrator such sums as may be necessary for each of the 
     fiscal years 2008 through 2012.''.
       Page 277, after line 16, insert the following:
       (l) Authorization of Appropriations.--Subsection (a) of 
     section 412 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736f) is amended to read as 
     follows:
       ``(a) Authorization of Appropriations.--For each of the 
     fiscal years 2008 through 2012, there are authorized to be 
     appropriated to the President--
       ``(1) such sums as may be necessary to carry out the 
     concessional credit sales program established under title I,
       ``(2) $2,500,000,000 to carry out the emergency and non-
     emergency food assistance programs under title II, and
       ``(3) such sums as may be necessary to carry out the grant 
     program established under title III,

     including such amounts as may be required to make payments to 
     the Commodity Credit Corporation to the extent the Commodity 
     Credit Corporation is not reimbursed under the programs under 
     this Act for the actual costs incurred or to be incurred by 
     such Corporation in carrying out such programs.''.
       Page 277, strike line 17 and all that follows through line 
     20 and insert the following:
       (m) Micronutrient Fortification Programs.--
       (1) Purpose.--Subsection (a)(2)(C) of section 415 of the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1736g-2) is amended--
       (A) by striking ``using the same mechanism that was used to 
     assess the micronutrient fortification program in'' and 
     inserting ``utilizing recommendations from''; and
       (B) by striking ``with funds from the Bureau for 
     Humanitarian Response of the United States Agency for 
     International Development'' and inserting ``with 
     implementation by an independent entity with proven 
     impartiality and a mechanism that incorporates the range of 
     stakeholders implementing programs under title II of this Act 
     as well as other food assistance industry experts''.
       (2) Termination of authority.--Subsection (d) of such 
     section is amended by striking ``2007'' and inserting 
     ``2012''.
       Page 277, line 21, strike ``(m)'' and insert ``(n)''.
       Page 278, line 19, strike ``(n)'' and insert ``(o)''.
       Page 279, after line 10, insert the following new clause 
     (and redesignate the subsequent clause as clause (iii)):
       (ii) in paragraph (1), by striking ``3-year period'' and 
     inserting ``6-month period''.
       Page 281, beginning line 9, strike subsection (c).
       Page 284, strike line 6 and all that follows through line 
     10 and insert the following:

     SEC. 3010. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

       (a) Foreign Market Development Cooperator Program.--
     Subsection (c) of section 702 of the Agricultural Trade Act 
     of 1978 (7 U.S.C. 5722) is amended by striking ``Committee on 
     International Relations'' and inserting ``Committee on 
     Foreign Affairs''.
       (b) Funding.--Subsection (a) of section 703 of such Act (7 
     U.S.C. 5723) is amended by striking ``2002 through 2007'' and 
     inserting ``2008 through 2012''.
       Page 285, line 14, strike ``International Relations'' and 
     insert ``Foreign Affairs''.
       Page 287, after line 7, insert the following:

     SEC. 3015. REPORT ON EFFORTS TO IMPROVE PROCUREMENT PLANNING.

       (a) Report Required.--Not later than 90 days after the date 
     of the enactment of this Act, the Administrator of the United 
     States Agency for International Development and the Secretary 
     of Agriculture shall submit to the appropriate congressional 
     committees a report on efforts taken by both the United 
     States Agency for International Development and the 
     Department of Agriculture to improve planning for food and 
     transportation procurement, including efforts to eliminate 
     bunching of food purchases.
       (b) Contents.--The report required under subsection (a) 
     should include, among other things, a description of efforts 
     taken to--
       (1) improve coordination of food purchases by the United 
     States Agency for International Development and the 
     Department of Agriculture;
       (2) increase flexibility in procurement schedules;
       (3) increase utilization of historical analyses and 
     forecasting; and
       (4) improve and streamline legal claims processes for 
     resolving transportation disputes.
       (c) Appropriate Congressional Committees Defined.--In this 
     section, the term ``appropriate congressional committees'' 
     means--
       (1) the Committee on Foreign Affairs and the Committee on 
     Agriculture of the House of Representatives; and
       (2) the Committee on Agriculture, Nutrition, and Forestry 
     of the Senate.

     SEC. 3016. INTERNATIONAL DISASTER ASSISTANCE UNDER THE 
                   FOREIGN ASSISTANCE ACT OF 1961.

       For each of the fiscal years 2008 through 2012, of the 
     amounts made available to carry out section 491 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2292), not less 
     than $40,000,000 for each such fiscal year is authorized be 
     made available for the purposes of famine prevention and 
     relief under such section.

       [NUTRITION TITLE]

       Page 301, beginning on line 18, strike ``and Nutrition 
     Act'' and insert ``Stamp''.
       Page 303, line 14, insert ``a'' after ``in the event of''.
       Page 306, line 10, insert ``(or fails to address)'' after 
     ``addresses''.
       Page 310, line 25, strike ``after paragraph'' and insert 
     ``inserting after subsection''.
       Page 312, line 12, strike ``redeem,'' and insert 
     ``redeem''.
       Page 319, line 17, strike ``verification of'' and insert 
     ``verification or''.
       Page 323, strike lines 4 and 5, and insert the following:
       (ii) by striking ``finding of a violation and the'' and 
     inserting ``finding of a violation,''.
       Page 323, line 22, strike ``years.'' and insert ``years''.
       Page 324, line 21, strike lines 19 through 21, and insert 
     the following:
       ``(c) Treatment of Disqualification and Penalty 
     Determinations.--The action''.
       Page 325, line 24, insert ``is'' before ``not upheld''.
       Page 330, line 19, strike ``low income'' and insert ``low-
     income''.
       Page 332, line 14, insert ``and particularly children, as 
     well as the feasibility of replicating these programs in 
     other locations'' after `` persons''.
       Page 333, after line 22, insert the following:
       ``(iv) strategies to improve the nutritional value of food 
     served during school hours and during after-school hours;
       ``(v) innovative ways to provide significant improvement to 
     the health and wellness of children;''.
       Page 333, line 23, strike ``(iv)'' and insert ``(vi)''.
       Page 336, line 16, strike ``paragraph'' and insert 
     ``subsection''.
       Page 340, line 16, strike ``Action'' and insert ``Act''.
       Page 345, line 22, strike ``(a) Amendment.--''.

       [CREDIT TITLE]

       In section 304(c)(2)(B) of the Consolidated Farm and Rural 
     Development Act, as proposed to be added by section 5001 of 
     the bill, strike ``$1,000,000'' and insert 
     ``$1,000,000,000''.
       In section 310F(b)(1)(C) of the Consolidated Farm and Rural 
     Development Act, as proposed to be added by section 5004 of 
     the bill, strike ``be at'' and insert ``be, at''.
       At the end of subtitle A of title V, insert the following:

     SEC. 5005. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LANDS.

       Section 1 of Public Law 91-229 (25 U.S.C. 488) is amended 
     by adding at the end the following: ``The Secretary of 
     Agriculture may make and insure loans as provided in section 
     309 of the Consolidated Farm and Rural Development Act to 
     eligible purchasers of highly fractionated land pursuant to 
     section 204(c) of the Indian Land Consolidation Act. Section 
     4 of this Act shall not apply to trust or restricted tribal 
     or tribal corporation property mortgaged pursuant to the 
     preceding sentence.''.
       In section 1.9(4) of the Farm Credit Act of 1971, as 
     proposed to be added by section 5031(a)(1)(C) of the bill, 
     strike ``under this title to a person'' and insert ``to a 
     person made eligible under this paragraph if the person is''.
       In section 2.4(a)(4) of the Farm Credit Act of 1971, as 
     proposed to be added by section 5031(b)(3) of the bill, 
     strike ``under this title to a person'' and insert ``to a 
     person made eligible under this paragraph if the person is''.
       Strike section 5040.

       [RURAL DEVELOPMENT TITLE]

       In section 6009(a)(3), strike ``subparagraphs (D) and (F)'' 
     and insert ``subparagraph (D)'', and strike ``and'' after the 
     semicolon.
       In section 6009(a)(4), strike ``adding at the end'' and 
     insert ``inserting after subparagraph (D) (as so 
     redesignated)'', and strike

[[Page 21533]]

     the period after the subparagraph (E) proposed to be added 
     and insert ``; and''.
       In subparagraph (E) of section 310B(e)(5) of the 
     Consolidated Farm and Rural Development Act, as proposed to 
     be added by section 6009(a)(4) of the bill, strike the period 
     and insert ``; and''.
       At the end of section 6009(a), insert the following:
       (5) in subparagraph (F), by striking ``greater than'' the 
     1st place it appears.
       In section 310B(i)(2) of the Consolidated Farm and Rural 
     Development Act, as proposed to be added by section 6011 of 
     the bill, strike ``the'' after ``help''.
       In section 601(c)(3)(A)(ii) of the Rural Electrification 
     Act of 1936, as proposed to be added by section 6023(b)(2) of 
     the bill, strike ``services'' and insert ``service''.
       In section 601(l)(4)(A) of the Rural Electrification Act of 
     1936, as proposed to be added by section 6023(i) of the bill, 
     strike ``(b)'' each place it appears and insert ``(d)''.

       [RESEARCH TITLE]

       Page 456, line 10, strike ``(c)'' and insert ``(e)''.
       Page 456, lines 14 and 15, strike ``or otherwise 
     administered''.
       Page 456, lines 17 and 18, strike ``except as provided 
     under subsection (a)(14)''.
       Page 458, line 7, insert ``and universities'' after 
     ``colleges''.
       Page 459, line 2, insert ``and university'' before the 
     period.
       Page 459, line 3, insert ``and university'' before the 
     quotation marks.
       Page 459, line 4, strike ``a'' and insert ``an''.
       Page 459, line 5, strike ``as defined'' and all that 
     follows through line 7 and insert ``; and''.
       Page 459, strike lines 8 through 10, and insert the 
     following:
       (b) offers associate, bachelor's, or other accredited 
     degree programs in agricultural related fields, as determined 
     by the Secretary.
       Page 470, lines 9 and 10, strike ``(8) and (12)'' and 
     insert ``(7) and (11)''.
       Page 474, line 17, insert ``for Research, Education, and 
     Economics'' after ``Secretary''.
       Page 477, line 21, insert ``, except that section 401(b)(3) 
     of such Act shall not be repealed and shall remain in 
     effect'' before the period.
       Page 477, line 24, strike ``(c)'' and insert ``(d)''.
       Page 495, line 10, insert ``to'' before ``acquire''.
       Page 497, line 10, strike ``as defined'' and all that 
     follows through line 12, and insert ``; and''.
       Page 497, line 15, insert ``, as determined by the 
     Secretary'' before the period.
       Page 498, line 17, strike ``of Agriculture''.
       Page 499, lines 13 and 14, strike ``of the Treasury''.
       Page 500, line 7, strike ``section'' and insert 
     ``paragraph''.
       Page 501, line 24, strike ``of Agriculture''.
       Page 502, line 4, strike ``of Agriculture''.
       Page 502, line 12, insert ``Extension'' after ``(b)''.
       Page 502, line 18, strike ``section 4'' and insert 
     ``subparagraph (D)''.
       Page 504, line 3, insert ``, as defined in section 1456 of 
     the National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3289)'' after ``universities''.
       Page 504, line 7, insert ``, as defined in section 1456 of 
     the National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3289)'' after ``universities''.
       Page 504, line 11, insert ``, as defined in section 1456 of 
     the National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3289)'' after ``universities''.
       Page 506, line 1, strike ``RESEARCH FACILITIES'' and insert 
     ``ASSISTANCE PROGRAMS''.
       Page 507, after line 6, insert the following new sections:

     SEC. 7234. HISPANIC SERVING INSTITUTIONS.

       The text of section 1404 of the Research Act of 1977 is 
     amended to read as follows: ``The term `Hispanic Serving 
     Institution' has the meaning given that term in section 
     502(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 
     1101a(a)(5).''.

     SEC. 7235. SPECIALTY CROPS POLICY RESEARCH INSTITUTE.

       Section 1419A of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155) is 
     amended by adding at the end the following:
       ``(e) Specialty Crops Policy Research Institute.--
       ``(1) Establishment.--The Food Agricultural Policy Research 
     Institute shall establish a satellite institute, called the 
     Specialty Crops Policy Research Institute, hereinafter 
     referred to as the Institute, at accredited research 
     universities within States with significant specialty crop 
     industries to fulfill the objectives described in subsection 
     (e)(3) of this section.
       ``(2) Management.--The Institute shall be coordinated and 
     managed by an appointed university and will have the 
     discretion to coordinate and facilitate the Institute's 
     economic and policy research activities and those of 
     additional member universities and institutions.
       ``(3) Institute objectives.--Consistent with the provisions 
     of subsections (a) and (c) of this section, the Institute 
     shall--
       ``(A) produce and disseminate analysis of the specialty 
     crop sector, including the impact of changes in domestic and 
     international markets, production, new product technologies, 
     web-based risk management tools, alternative policies and 
     macroeconomic conditions on specialty crop production, use, 
     farm and retail prices, and farm income and financial 
     stability from a national, regional, and farm-level 
     perspective; and
       ``(B) produce and disseminate an annual review of the 
     economic state of the specialty crop industry nationally, 
     regionally, and by-state.
       ``(4) Authorization of appropriation.--There are authorized 
     to be appropriated such sums as are necessary in each fiscal 
     year through 2012 to carry out this section.''.
       Page 521, line 12, insert ``section 103 of the Agricultural 
     Research, Extension, and Education Reform Act of 1998'' after 
     ``with''.
       Page 522, line 19, insert ``note'' after ``1621''.
       Page 523, line 13, strike ``and''.
       Page 523, after line 14, insert the following:
       (G) policy and marketing; and
       (H) specialty crop pollination;
       Page 531, line 12, strike ``and''.
       Page 531, line 14, strike the period and insert ``; and''.
       Page 531, after line 14, insert the following:
       (3) in subsection (c), by striking ``such sums may be used 
     to pay'' and all that follows through ``work.''.
       Page 531, strike lines 15 through 25.
       Page 533, strike ``1444 and''.
       Page 541, strike lines 11 through 17.

       [FORESTRY TITLE]

       Page 548, beginning line 4, strike subparagraph (E).
       Page 549, beginning line 1, strike clause (viii) and insert 
     the following new clause:
       ``(viii) A representative from a State Technical Committee 
     established under section 1261 of the Food Security Act of 
     1985 (16 U.S.C. 3861).''.
       Page 549, line 24, strike ``sections 8005 and 8006'' and 
     insert ``sections 8006 and 8007''.
       Page 551, line 14, strike ``three'' and insert ``3''.
       Page 553, line 12, strike ``$17,000,000'' and insert 
     ``$10,000,000''.
       Page 557, after line 2, insert the following new subsection 
     (and redesignate the subsequent subsection as subsection 
     (d)):
       (c) Definition of Hispanic-Serving Institution.--In this 
     section, the term ``Hispanic-serving institution'' has the 
     meaning given that term in section 502(a)(5) of the Higher 
     Education Act of 1965 (20 U.S.C. 1101a(a)(5)).

       [ENERGY TITLE]

       Page 564, after line 19 insert the following new paragraph:
       (5) in paragraph (2)(B) of subsection (f) (as so 
     redesignated)--
       (A) in clause (viii), by striking ``and'' at the end;
       (B) in clause ix, by striking ``approaches.'' and inserting 
     ``approaches; and''; and
       (C) by adding at the end the following new clause:
       ``(x) whether the impact the distribution of funds would 
     have on existing manufacturing and other facilities that 
     utilize similar feedstocks would be minimal.''.
       Page 597, after line 25 insert the following new paragraph:
       (E) by adding at the end the following new paragraph:
       ``(8) Renewal of contracts.--When considering the renewal 
     of a contract under this section, the Secretary shall review 
     such contract to determine whether the production of 
     bioenergy at the facility under contract is economically 
     viable and reconsider the need for the contract based on that 
     determination.''.
       In section 9002, strike subsection (d) and insert the 
     following new subsection:
       (d) Authorization of Appropriations.--Paragraph (1) of 
     section 9002(k) of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 8102(k)) is amended to read as follows:
       ``(1) Authorization of appropriations.--
       ``(A) Federal procurement.--There are authorized to be 
     appropriated $1,000,000 for each of fiscal years 2008 through 
     2013 to implement the provisions of this section other than 
     subsection (h).
       ``(B) Labeling.--There are authorized to be appropriated 
     $1,000,000 for each of fiscal years 2008 through 2013 to 
     implement subsection (h) of this section.''.
       In section 9002(f), strike paragraph (3).
       Page 598, line 4, strike ``Section'' and insert:
       (a) Western Insular Pacific Center.--Section 9011(d) is 
     amended by adding at the end the following new paragraph:
       ``(6) Western insular pacific center.--A western insular 
     pacific center at the University of Hawaii for the region of 
     Alaska, Hawaii, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, the Federated States of Micronesia, 
     the Republic of the Marshall Islands, and the Republic of 
     Palau.''.
       (b) Authorization of Appropriations.--Section
       Strike section 9014.

       [HORTICULTURE TITLE]

       Section 10102 is amended by adding at the end the following 
     new subsection:
       (e) Definition of State.--Section 3(2) of the Specialty 
     Crops Competitiveness Act of 2004 (Public Law 108-465; 7 
     U.S.C. 1621 note) is amended by striking ``and the 
     Commonwealth of Puerto Rico'' and inserting ``the

[[Page 21534]]

     Commonwealth of Puerto Rico, Guam, American Samoa, the United 
     States Virgin Islands, and the Commonwealth of the Northern 
     Mariana Islands''.
       In section 209(e)(2) of the Agricultural Marketing Act of 
     1946, as proposed to be added by section 10108 of the bill, 
     strike ``authorized'' and insert ``authorize''.
       In section 10201(j), strike ``fo'' and insert ``of''.
       In section 7407(b) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 5925c(b)), as amended by 
     section 10302 of the bill, strike ``of funds of the 
     Commodity'' and insert ``of the funds of the Commodity''.
       In the heading of section 10404, strike ``FARMERS' MARKET 
     PROMOTION PROGRAM'' and insert ``FARMER MARKETING ASSISTANCE 
     PROGRAM''.
       Section 6(f)(1) of the Farmer-to-Consumer Direct Marketing 
     Act of 1976, as added by section 10404 of the bill, is 
     amended by striking ``Secretary of Agriculture use'' and 
     inserting ``Secretary of Agriculture shall use''.
       Section 6(f)(1)(A) of the Farmer-to-Consumer Direct 
     Marketing Act of 1976, as added by section 10404 of the bill, 
     is amended by striking ``fiscals year'' and inserting 
     ``fiscal years''.
       At the end of subtitle E of title X add the following new 
     section:

     SEC. __. HEALTHY FOOD URBAN ENTERPRISE DEVELOPMENT PROGRAM.

       (a) Purpose.--The purpose of this section is to support 
     farm and ranch income by significantly enhancing a producer's 
     share of the final retail product price through improved 
     access to competitive processing and distribution systems 
     which deliver affordable, locally and regionally produced 
     foods to consumers, and improve food access in underserved 
     communities.
       (b) Definitions.--In this section:
       (1) Eligible entity.--The term ``eligible entity'' 
     includes--
       (A) a small or midsized processor, distributor, wholesaler, 
     or retail food outlet;
       (B) a group of producers operating as a legally recognized 
     marketing alliance;
       (C) a producer-owned cooperative;
       (D) a nonprofit organization;
       (E) an economic development or community development 
     corporation;
       (F) a unit of State or local government; and
       (G) an academic institution.
       (2) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (4) Socially disadvantaged farmer or rancher.--The term 
     ``socially disadvantaged farmer or rancher'' has the meaning 
     given the term in section 355(e) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 2003(e)).
       (5) Underserved community.--The term ``underserved 
     community'' includes any community that may have, as 
     determined by the Secretary--
       (A) limited access to affordable, healthy foods, including 
     fresh fruits and vegetables, in grocery retail stores or 
     farmer-to-consumer direct markets;
       (B) high incidences of diet-related diseases, including 
     obesity;
       (C) high rates of hunger or food insecurity; or
       (D) severe or persistent poverty in urban or rural 
     communities, including Indian tribal communities.
       (c) Grant Program.--
       (1) Establishment.--The Secretary, acting through the head 
     of the market services branch of the Agricultural Marketing 
     Service, shall establish a program under which the Secretary 
     shall provide grants, on a competitive basis, to eligible 
     entities to conduct enterprise feasibility studies (including 
     studies of consumer preference), in accordance with the 
     purpose of this section.
       (2) Application.--To be eligible to receive a grant under 
     this subsection, an eligible entity shall submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require.
       (3) Coordination with other agencies.--In carrying out the 
     program under this subsection, the Secretary shall 
     coordinate, with respect to the development of the program 
     and reviews of grant applications, with--
       (A) the Cooperative State Research, Education, and 
     Extension Service; and
       (B) the Rural Business Cooperative Service.
       (4) Priority.--In providing grants under this subsection, 
     the Secretary shall give priority to applications with 
     proposed projects that--
       (A) include features effectively targeting participation by 
     socially disadvantaged farmers or ranchers or beginning 
     farmers or ranchers;
       (B) increase employment opportunities in underserved 
     communities;
       (C) support small and mid-sized farm viability and increase 
     farming opportunities; or
       (D) establish and maintain satisfactory environmental and 
     labor standards, including worker protection.
       (5) Maximum amount.--The amount of a grant provided under 
     this subsection shall not exceed $250,000.
       (6) Term.--A grant provided under this subsection shall 
     have a term of not more than 3 years.
       (7) Reports.--
       (A) In general.--Each eligible entity that receives a grant 
     under this subsection shall submit to the Secretary an annual 
     report describing the results and progress of each 
     feasibility study to ensure sufficient progress is achieved 
     with respect to the goals of the projects carried out by the 
     eligible entity.
       (B) Public availability.--The Secretary shall ensure that 
     any information contained in a report under subparagraph (A) 
     relating to consumer preference or producer availability is 
     made available to the public.
       (8) Funding.--There are authorized to be appropriated such 
     sums as are necessary for each of fiscal years 2008 through 
     2012 to carry out this section.
       (d) Grant Program Requirements.--
       (1) Technical assistance and outreach.--
       (A) In general.--The Secretary shall--
       (i) provide to the public information relating to the grant 
     programs under this section; and
       (ii) provide technical assistance to--

       (I) socially disadvantaged farmers or ranchers;
       (II) Indian tribal organizations;
       (III) low-income populations; and
       (IV) other underserved communities and producers.

       (B) Service providers.--In carrying out subparagraph (A), 
     the Secretary may enter into contracts, on a competitive 
     basis, with entities that, as determined by the Secretary--
       (i) demonstrate experience in serving socially 
     disadvantaged farmers or ranchers and other underserved 
     communities and producers;
       (ii) include, in the governance structure of the entity, 2 
     or more members representing the targeted communities served 
     by the entity; and
       (iii) will share information developed or used by the 
     entity with--

       (I) researchers;
       (II) practitioners; and
       (III) other interested parties.

       (2) Limitations.--For purposes of the programs under this 
     section, the Secretary--
       (A) shall not give preference to any entity based on an 
     agricultural commodity produced or supported by the entity; 
     and
       (B) shall encourage, to the maximum extent practicable, 
     projects that use infrastructure efficiently for more than 1 
     agricultural product.
       (3) Report.--Not less frequently than once each year, the 
     Secretary shall submit to Congress a report that describes 
     the programs (including the level of participation in each 
     program) under this section, including information relating 
     to--
       (A) projects carried out under this section;
       (B) characteristics of the agricultural producers and 
     communities served by the projects;
       (C) the benefits of the projects;
       (D) data necessary to comply with--
       (i) section 2501A of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 2279-1); or
       (ii) section 8(b)(5)(B) of the Soil Conservation and 
     Domestic Allotment Act (16 U.S.C. 590h(b)(5)); and
       (E) outreach and technical assistance activities carried 
     out by the Secretary under paragraph (1).
       Strike section 10401.

       [MISCELLANEOUS TITLE]

       Strike section 11105.
       Page 683, line 23, strike ``production'' and insert 
     ``production.''.
       Page 684, strike line 5 through page 685, line 9 and insert 
     the following:
       ``(3) Yield determination based on county actual production 
     history.--If an agricultural commodity ineligible for 
     insurance as described in paragraph (2) is planted for 4 
     years, beginning with the fifth year in which the commodity 
     is planted, the producer of the commodity may procure crop 
     insurance for the commodity under this title. The yield for 
     such crop insurance shall be determined only--
       ``(A) by using the actual production history for the farm; 
     and
       ``(B) for each year in which the farm does not have an 
     actual production history, by using the average actual 
     production history for the commodity in the county in which 
     the farm is located.''.
       Page 685, line 20: strike ``that'' and insert ``than''.
       At the end of subtitle A of title XI (page 687, after line 
     19), add the following new sections:

     SEC. 11013. NATIONAL DROUGHT COUNCIL AND DROUGHT PREPAREDNESS 
                   PLANS.

       (a) Definitions.--In this section:
       (1) Council.--The term ``Council'' means the National 
     Drought Council established by this section.
       (2) Critical service provider.--The term ``critical service 
     provider'' means an entity that provides power, water 
     (including water provided by an irrigation organization or 
     facility), sewer services, or wastewater treatment.
       (3) Drought.--The term ``drought'' means a natural disaster 
     that is caused by a deficiency in precipitation--

[[Page 21535]]

       (A) that may lead to a deficiency in surface and subsurface 
     water supplies (including rivers, streams, wetlands, ground 
     water, soil moisture, reservoir supplies, lake levels, and 
     snow pack); and
       (B) that causes or may cause--
       (i) substantial economic or social impacts; or
       (ii) physical damage or injury to individuals, property, or 
     the environment.
       (4) Fund.--The term ``Fund'' means the Drought Assistance 
     Fund established by this section.
       (5) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (6) Interstate watershed.--The term ``interstate 
     watershed'' means a watershed that transcends State or Tribal 
     boundaries, or both.
       (7) Member.--The term ``member'', with respect to the 
     National Drought Council, means a member of the Council 
     specified or appointed under this section or, in the absence 
     of the member, the member's designee.
       (8) Mitigation.--The term ``mitigation'' means a short- or 
     long-term action, program, or policy that is implemented in 
     advance of or during a drought to minimize any risks and 
     impacts of drought.
       (9) Neighboring country.--The term ``neighboring country'' 
     means Canada and Mexico.
       (10) Office.--The term ``Office'' means the National Office 
     of Drought Preparedness established under this section.
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (12) State.--The term ``State'' means the several States, 
     the District of Columbia, American Samoa, Guam, the 
     Commonwealth of the Northern Mariana Islands, the 
     Commonwealth of Puerto Rico, and the United States Virgin 
     Islands.
       (13) Trigger.--The term ``trigger'' means the thresholds or 
     criteria that must be satisfied before mitigation or 
     emergency assistance may be provided to an area--
       (A) in which drought is emerging; or
       (B) that is experiencing a drought.
       (14) Under secretary.--The term ``Under Secretary'' means 
     the Under Secretary of Agriculture for Natural Resources and 
     Environment.
       (15) Watershed.--The term ``watershed'' means a region or 
     area with common hydrology, an area drained by a waterway 
     that drains into a lake or reservoir, the total area above a 
     given point on a stream that contributes water to the flow at 
     that point, or the topographic dividing line from which 
     surface streams flow in two different directions. In no case 
     shall a watershed be larger than a river basin.
       (16) Watershed group.--The term ``watershed group'' means a 
     group of individuals, formally recognized by the appropriate 
     State or States, who represent the broad scope of relevant 
     interests within a watershed and who work together in a 
     collaborative manner to jointly plan the management of the 
     natural resources contained within the watershed.
       (b) Effect of Section.--This section does not affect--
       (1) the authority of a State to allocate quantities of 
     water under the jurisdiction of the State; or
       (2) any State water rights established as of the date of 
     enactment of this Act.
       (c) National Drought Council.--
       (1) Establishment.--There is established in the Office of 
     the Secretary of Agriculture a council to be known as the 
     ``National Drought Council''.
       (2) Membership.--
       (A) Composition.--The Council shall be composed of--
       (i) the Secretary (or the designee of the Secretary);
       (ii) the Secretary of Commerce (or the designee of the 
     Secretary of Commerce);
       (iii) the Secretary of the Army (or the designee of the 
     Secretary of the Army);
       (iv) the Secretary of the Interior (or the designee of the 
     Secretary of the Interior);
       (v) the Director of the Federal Emergency Management Agency 
     (or the designee of the Director);
       (vi) the Administrator of the Environmental Protection 
     Agency (or the designee of the Administrator);
       (vii) 4 members appointed by the Secretary, in coordination 
     with the National Governors Association, each of whom shall 
     be the Governor of a State (or the designee of the Governor) 
     and who collectively shall represent the geographic diversity 
     of the Nation;
       (viii) 1 member appointed by the Secretary, in coordination 
     with the National Association of Counties;
       (ix) 1 member appointed by the Secretary, in coordination 
     with the United States Conference of Mayors;
       (x) 1 member appointed by the Secretary of the Interior, in 
     coordination with Indian tribes, to represent the interests 
     of tribal governments; and
       (xi) 1 member appointed by the Secretary, in coordination 
     with the National Association of Conservation Districts, to 
     represent local soil and water conservation districts.
       (B) Date of appointment.--The appointment of each member of 
     the Council shall be made not later than 120 days after the 
     date of enactment of this Act.
       (3) Term; vacancies.--
       (A) Term.--A non-Federal member of the Council appointed 
     under paragraph (2) shall be appointed for a term of two 
     years.
       (B) Vacancies.--A vacancy on the Council--
       (i) shall not affect the powers of the Council; and
       (ii) shall be filled in the same manner as the original 
     appointment was made.
       (C) Terms of members filling vacancies.--Any member 
     appointed to fill a vacancy occurring before the expiration 
     of the term for which the member's predecessor was appointed 
     shall be appointed only for the remainder of that term.
       (4) Meetings.--
       (A) In general.--The Council shall meet at the call of the 
     co-chairs.
       (B) Frequency.--The Council shall meet at least 
     semiannually.
       (5) Quorum.--A majority of the members of the Council shall 
     constitute a quorum, but a lesser number may hold hearings or 
     conduct other business.
       (6) Council leadership.--
       (A) In general.--There shall be a Federal co-chair and non-
     Federal co-chair of the Council.
       (B) Appointment.--
       (i) Federal co-chair.--The Secretary shall be Federal co-
     chair.
       (ii) Non-federal co-chair.--The non-Federal members of the 
     Council shall select, on a biannual basis, a non-Federal co-
     chair of the Council from among the members appointed under 
     paragraph (2)
       (7) Director of the office.--
       (A) In general.--The Director of the Office shall serve as 
     Secretary of the Council.
       (B) Duties.--The Director of the Office shall serve the 
     interests of all members of the Council.
       (d) Duties of the Council.--
       (1) In general.--The Council shall--
       (A) not later than one year after the date of the first 
     meeting of the Council, develop a comprehensive National 
     Drought Policy Action Plan that--
       (i)(I) delineates and integrates responsibilities for 
     activities relating to drought (including drought 
     preparedness, mitigation, research, risk management, 
     training, and emergency relief) among Federal agencies; and
       (II) ensures that those activities are coordinated with the 
     activities of the States, local governments, Indian tribes, 
     and neighboring countries;
       (ii) is consistent with--

       (I) this Act and other applicable Federal laws; and
       (II) the laws and policies of the States for water 
     management;

       (iii) is integrated with drought management programs of the 
     States, Indian tribes, local governments, watershed groups, 
     and private entities; and
       (iv) avoids duplicating Federal, State, tribal, local, 
     watershed, and private drought preparedness and monitoring 
     programs in existence on the date of enactment of this Act;
       (B) evaluate Federal drought-related programs in existence 
     on the date of enactment of this Act and make recommendations 
     to Congress and the President on means of eliminating--
       (i) discrepancies between the goals of the programs and 
     actual service delivery;
       (ii) duplication among programs; and
       (iii) any other circumstances that interfere with the 
     effective operation of the programs;
       (C) make recommendations to the President, Congress, and 
     appropriate Federal Agencies on--
       (i) the establishment of common interagency triggers for 
     authorizing Federal drought mitigation programs; and
       (ii) improving the consistency and fairness of assistance 
     among Federal drought relief programs;
       (D) encourage and facilitate the development of drought 
     preparedness plans under subtitle C, including establishing 
     the guidelines under this section;
       (E) based on a review of drought preparedness plans, 
     develop and make available to the public drought planning 
     models to reduce water resource conflicts relating to water 
     conservation and droughts;
       (F) develop and coordinate public awareness activities to 
     provide the public with access to understandable, and 
     informative materials on drought, including--
       (i) explanations of the causes of drought, the impacts of 
     drought, and the damages from drought;
       (ii) descriptions of the value and benefits of land 
     stewardship to reduce the impacts of drought and to protect 
     the environment;
       (iii) clear instructions for appropriate responses to 
     drought, including water conservation, water reuse, and 
     detection and elimination of water leaks;
       (iv) information on State and local laws applicable to 
     drought; and
       (v) opportunities for assistance to resource-dependent 
     businesses and industries in times of drought; and
       (G) establish operating procedures for the Council.
       (2) Consultation.--In carrying out this subsection, the 
     Council shall consult with groups affected by drought 
     emergencies.

[[Page 21536]]

       (3) Reports to congress.--
       (A) Annual report.--
       (i) In general.--Not later than one year after the date of 
     the first meeting of the Council, and annually thereafter, 
     the Council shall submit to Congress a report on the 
     activities carried out under this section.
       (ii) Inclusions.--

       (I) In general.--The annual report shall include a summary 
     of drought preparedness plans.
       (II) Initial report.--The initial report submitted under 
     subparagraph (A) shall include any recommendations of the 
     Council.

       (B) Final report.--Not later than seven years after the 
     date of enactment of this Act, the Council shall submit to 
     Congress a report that recommends--
       (i) amendments to this section; and
       (ii) whether the Council should continue.
       (e) Powers of the Council.--
       (1) Hearings.--The Council may hold hearings, meet and act 
     at any time and place, take any testimony and receive any 
     evidence that the Council considers advisable to carry out 
     this section.
       (2) Information from federal agencies.--
       (A) In general.--The Council may obtain directly from any 
     Federal agency any information that the Council considers 
     necessary to carry out this section.
       (B) Provision of information.--
       (i) In general.--Except as provided in clause (ii), on 
     request of the Secretary or the non-Federal co-chair of the 
     Council, the head of a Federal agency may provide information 
     to the Council.
       (ii) Limitation.--The head of a Federal agency shall not 
     provide any information to the Council that the Federal 
     agency head determines the disclosure of which may cause harm 
     to national security interests.
       (3) Postal services.--The Council may use the United States 
     mail in the same manner and under the same conditions as 
     other agencies of the Federal Government.
       (4) Gifts.--The Council may accept, use, and dispose of 
     gifts or donations of services or property.
       (f) Council Personnel Matters.--
       (1) Compensation of members.--
       (A) Non-federal employees.--A member of the Council who is 
     not an officer or employee of the Federal Government shall 
     serve without compensation.
       (B) Federal employees.--A member of the Council who is an 
     officer or employee of the United States shall serve without 
     compensation in addition to the compensation received for 
     services of the member as an officer or employee of the 
     Federal Government.
       (2) Travel expenses.--A member of the Council shall be 
     allowed travel expenses at rates authorized for an employee 
     of an agency under subchapter I of chapter 57 of title 5, 
     United States Code, while away from the home or regular place 
     of business of the member in the performance of the duties of 
     the Council.
       (g) Termination of Council.--The Council shall terminate at 
     the end of the eighth fiscal year beginning on or after the 
     date of the enactment of this Act.
       (h) National Office of Drought Preparedness.--
       (1) Establishment.--The Secretary shall establish an office 
     to be known as the ``National Office of Drought 
     Preparedness'' to provide assistance to the Council.
       (2) Director of the office.--
       (A) Appointment.--
       (i) In general.--The Under Secretary shall appoint a 
     Director of the Office under sections 3371 through 3375 of 
     title 5, United States Code.
       (ii) Qualifications.--The Director of the Office shall be a 
     person who has experience in--

       (I) public administration; and
       (II) drought mitigation or drought management.

       (B) Powers.--The Director of the Office may hire such other 
     additional personnel or contract for services with other 
     entities as necessary to carry out the duties of the Office.
       (3) Detail of government employees.--
       (A) In general.--Except for the requirements of section 
     204, an employee of the Federal Government may be detailed to 
     the Office without reimbursement, unless the Secretary, on 
     the recommendation of the Director of the Office, determines 
     that reimbursement is appropriate.
       (B) Civil service status.--The detail of an employee shall 
     be without interruption or loss of civil service status or 
     privilege.
       (i) Drought Assistance Fund.--
       (1) Establishment.--There is established within the 
     Department of Agriculture a fund to be known as the ``Drought 
     Assistance Fund''.
       (2) Purpose.--The Fund shall be used to pay the costs of--
       (A) providing technical and financial assistance (including 
     grants and cooperative assistance) to States, Indian tribes, 
     local governments, watershed groups, and critical service 
     providers for the development and implementation of drought 
     preparedness plans;
       (B) providing to States, Indian tribes, local governments, 
     watershed groups, and critical service providers the Federal 
     share, as determined by the Secretary, in consultation with 
     the other members of the Council, of the cost of mitigating 
     the overall risk and impacts of droughts;
       (C) assisting States, Indian tribes, local governments, 
     watershed groups, and critical service providers in the 
     development of mitigation measures to address environmental, 
     economic, and human health and safety issues relating to 
     drought; and
       (D) expanding the technology transfer of drought and water 
     conservation strategies and innovative water supply 
     techniques.
       (3) Guidelines.--
       (A) In general.--The Secretary, in consultation with the 
     non-Federal co-chair of the Council and with the concurrence 
     of the Council, shall develop and promulgate guidelines to 
     implement this subsection.
       (B) Requirements.--The guidelines shall address the 
     following:
       (i) Ensure the distribution of amounts from the Fund within 
     a reasonable period of time.
       (ii) Take into consideration regional differences.
       (iii) Take into consideration all impacts of drought in a 
     balanced manner.
       (iv) Prohibit the use of amounts from the Fund for Federal 
     salaries that are not directly related to the provision of 
     drought assistance.
       (v) Require that distribution of amounts from the Fund 
     granted to States, local governments, watershed groups, and 
     critical service providers to meet the requirements of this 
     subsection be coordinated with and managed by the State in 
     which such local government or critical service provider is 
     located, consistent with the drought preparedness priorities 
     and relevant water management plans within the State.
       (vi) Require that distribution of amounts from the Fund 
     granted to Indian tribes to meet the requirements of this 
     subsection be used to implement plans that are, to the extent 
     practicable, in coordination with each State in which lands 
     of the Indian tribe are located and consistent with existing 
     drought preparedness and water management plans of such 
     States.
       (vii) Require that a State, Indian tribe, local government, 
     watershed group, or critical service provider that receives 
     Federal funds under paragraph (2) or (3) of subsection (b) 
     cover not less than 25 percent of the overall cost incurred 
     in carrying out the project for which the Federal funds are 
     provided. This cost sharing requirement may be satisfied 
     using non-Federal grants or cash donations made by non-
     Federal third parties.
       (4) Special requirement for interstate watersheds.--
       (A) Development of drought preparedness plans.--In order to 
     receive funds under this subsection to develop drought 
     preparedness plans for interstate watersheds, the guidelines 
     shall also require the relevant States, Indian tribes, or 
     both, in which the watershed is located, to coordinate in the 
     development of the drought preparedness plan. The development 
     of such plans shall--
       (i) be consistent with the relevant States' and Tribal 
     water laws, policies, and agreements;
       (ii) be consistent and coordinated with any existing 
     interstate stream compacts;
       (iii) include the participation of any relevant watershed 
     groups located in the relevant States, Indian tribes, or 
     both; and
       (iv) recognize that implementation of the interstate 
     drought preparedness plan will involve further coordination 
     among the relevant States, Indian tribes, or both, except 
     that each State and Indian tribe has sole jurisdiction over 
     implementation of that portion of the watershed that exists 
     within their boundaries.
       (B) Implementation of drought preparedness plans.--In order 
     to receive funds under this subsection to implement drought 
     preparedness plans for interstate watersheds, the guidelines 
     shall also require, to the extent practicable, the relevant 
     States, Indian tribes, or both, in which the watershed is 
     located, to coordinate in the implementation of the drought 
     preparedness plan, recognizing the sovereignty of the States 
     and Indian tribes. Implementation of interstate drought 
     preparedness plans shall--
       (i) be contingent upon the existence of a drought 
     preparedness plan, but not require the distribution of funds 
     to all States and Indian tribes in which the watershed is 
     located;
       (ii) consider the level of impact within the watershed on 
     each of the relevant States, Indian tribes, or both; and
       (iii) not impede on State water rights established as of 
     the date of enactment of this Act.
       (j) Drought Preparedness Plans.--
       (1) In general.--The Secretary shall--
       (A) with the concurrence of the Council, jointly develop 
     guidelines for administering a national program to provide 
     technical and financial assistance to States, Indian tribes, 
     local governments, watershed groups, and critical service 
     providers for the development, maintenance, and 
     implementation of drought preparedness plans; and
       (B) promulgate the guidelines developed under subparagraph 
     (A).
       (2) Requirements.--To build on the experience and avoid 
     duplication of efforts of Federal, State, local, tribal, and 
     regional drought plans in existence on the date of enactment 
     of this Act, the guidelines may recognize and incorporate 
     those plans.

[[Page 21537]]

       (3) Federal plans.--
       (A) In general.--The Secretary and other appropriate 
     Federal agency heads shall develop and implement Federal 
     drought preparedness plans for agencies under the 
     jurisdiction of the appropriate Federal agency head.
       (B) Requirements.--The Federal plans--
       (i) shall be integrated with each other;
       (ii) may be included as components of other Federal 
     planning requirements;
       (iii) shall be integrated with drought preparedness plans 
     of State, tribal, and local governments that are affected by 
     Federal projects and programs; and
       (iv) shall be completed not later than two years after the 
     date of the enactment of this Act.
       (4) State and tribal plans.--States and Indian tribes may 
     develop and implement State and tribal drought preparedness 
     plans that--
       (A) address monitoring of resource conditions that are 
     related to drought;
       (B) identify areas that are at a high risk for drought;
       (C) describes mitigation strategies to address and reduce 
     the vulnerability of an area to drought; and
       (D) are integrated with State, tribal, and local water 
     plans in existence on the date of enactment of this Act.
       (5) Regional and local plans.--Local governments, watershed 
     groups, and regional water providers may develop and 
     implement drought preparedness plans that--
       (A) address monitoring of resource conditions that are 
     related to drought;
       (B) identify areas that are at a high risk for drought;
       (C) describe mitigation strategies to address and reduce 
     the vulnerability of an area to drought; and
       (D) are integrated with corresponding State plans.
       (6) Plan elements.--A drought preparedness plan--
       (A) shall be consistent with Federal and State laws, 
     contracts, and policies;
       (B) shall allow each State to continue to manage water and 
     wildlife in the State;
       (C) shall address the health, safety, and economic 
     interests of those persons directly affected by drought;
       (D) shall address the economic impact on resource-dependent 
     businesses and industries, including regional tourism;
       (E) may include--
       (i) provisions for water management strategies to be used 
     during various drought or water shortage thresholds, 
     consistent with State water law;
       (ii) provisions to address key issues relating to drought 
     (including public health, safety, economic factors, and 
     environmental issues such as water quality, water quantity, 
     protection of threatened and endangered species, and fire 
     management);
       (iii) provisions that allow for public participation in the 
     development, adoption, and implementation of drought plans;
       (iv) provisions for periodic drought exercises, revisions, 
     and updates;
       (v) a hydrologic characterization study to determine how 
     water is being used during times of normal water supply 
     availability to anticipate the types of drought mitigation 
     actions that would most effectively improve water management 
     during a drought;
       (vi) drought triggers;
       (vii) specific implementation actions for droughts;
       (viii) a water shortage allocation plan, consistent with 
     State water law; and
       (ix) comprehensive insurance and financial strategies to 
     manage the risks and financial impacts of droughts; and
       (F) shall take into consideration--
       (i) the financial impact of the plan on the ability of the 
     utilities to ensure rate stability and revenue stream; and
       (ii) economic impacts from water shortages.
       (k) Authorization of Appropriations.--
       (1) Council.--There is authorized to be appropriated to 
     carry out the activities of the Council $2,000,000 for fiscal 
     year 2008 and for each of the subsequent seven fiscal years.
       (2) Fund.--There are authorized to be appropriated to the 
     Fund such sums as are necessary to carry out subsection (i).

     SEC. 11014. PAYMENT OF PORTION OF PREMIUM FOR AREA REVENUE 
                   PLANS.

       Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(e)) is amended--
       (1) in paragraph (2), in the matter preceding subparagraph 
     (A), by striking ``paragraph (4)'' and inserting ``paragraphs 
     (4), (6), and (7)''; and
       (2) by adding at the end the following:
       ``(6) Premium subsidy for area revenue plans.--Subject to 
     paragraph (4), in the case of a policy or plan of insurance 
     that covers losses due to a reduction in revenue in an area, 
     the amount of the premium paid by the Corporation shall be as 
     follows:
       ``(A) In the case of additional area coverage equal to or 
     greater than 70 percent, but less than 75 percent, of the 
     recorded county yield indemnified at not greater than 100 
     percent of the expected market price, the amount shall be 
     equal to the sum of--
       ``(i) 59 percent of the amount of the premium established 
     under subsection (d)(2)(B)(i) for the coverage level 
     selected; and
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) 
     for the coverage level selected to cover operating and 
     administrative expenses.
       ``(B) In the case of additional area coverage equal to or 
     greater than 75 percent, but less than 85 percent, of the 
     recorded county yield indemnified at not greater than 100 
     percent of the expected market price, the amount shall be 
     equal to the sum of--
       ``(i) 55 percent of the amount of the premium established 
     under subsection (d)(2)(B)(i) for the coverage level 
     selected; and
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) 
     for the coverage level selected to cover operating and 
     administrative expenses.
       ``(C) In the case of additional area coverage equal to or 
     greater than 85 percent, but less than 90 percent, of the 
     recorded county yield indemnified at not greater than 100 
     percent of the expected market price, the amount shall be 
     equal to the sum of--
       ``(i) 49 percent of the amount of the premium established 
     under subsection (d)(2)(B)(i) for the coverage level 
     selected; and
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) 
     for the coverage level selected to cover operating and 
     administrative expenses.
       ``(D) In the case of additional area coverage equal to or 
     greater than 90 percent of the recorded county yield 
     indemnified at not greater than 100 percent of the expected 
     market price, the amount shall be equal to the sum of--
       ``(i) 44 percent of the amount of the premium established 
     under subsection (d)(2)(B)(i) for the coverage level 
     selected; and
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) 
     for the coverage level selected to cover operating and 
     administrative expenses.
       ``(7) Premium subsidy for area yield plans.--Subject to 
     paragraph (4), in the case of a policy or plan of insurance 
     that covers losses due to a loss of yield or prevented 
     planting in an area, the amount of the premium paid by the 
     Corporation shall be as follows:
       ``(A) In the case of additional area coverage equal to or 
     greater than 70 percent, but less than 80 percent, of the 
     recorded county yield indemnified at not greater than 100 
     percent of the expected market price, the amount shall be 
     equal to the sum of--
       ``(i) 59 percent of the amount of the premium established 
     under subsection (d)(2)(B)(i) for the coverage level 
     selected; and
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) 
     for the coverage level selected to cover operating and 
     administrative expenses.
       ``(B) In the case of additional area coverage equal to or 
     greater than 80 percent, but less than 90 percent, of the 
     recorded county yield indemnified at not greater than 100 
     percent of the expected market price, the amount shall be 
     equal to the sum of--
       ``(i) 55 percent of the amount of the premium established 
     under subsection (d)(2)(B)(i) for the coverage level 
     selected; and
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) 
     for the coverage level selected to cover operating and 
     administrative expenses.
       ``(C) In the case of additional area coverage equal to or 
     greater than 90 percent, of the recorded county yield 
     indemnified at not greater than 100 percent of the expected 
     market price, the amount shall be equal to the sum of--
       ``(i) 51 percent of the amount of the premium established 
     under subsection (d)(2)(B)(i) for the coverage level 
     selected; and
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) 
     for the coverage level selected to cover operating and 
     administrative expenses.''.
       Page 715, strike lines 13 through 25 and insert the 
     following:
       ``(A) United states country of origin.--A retailer of a 
     covered commodity that is beef, lamb, pork, or goat may 
     designate the covered commodity as exclusively having a 
     United States country of origin only if the covered commodity 
     is derived from an animal that was--
       ``(i) exclusively born, raised, and slaughtered in the 
     United States;
       ``(ii) born and raised in Alaska or Hawaii and transported 
     for a period of not more than 60 days through Canada to the 
     United States and slaughtered in the United States; or
       ``(iii) present in the United States on or before January 
     1, 2008.''.
       Page 718, strike lines 16 through 22 and insert the 
     following:
       ``(4) Designation of country of origin for perishable 
     agricultural commodities and peanuts.--
       ``(A) In general.--A retailer of a covered commodity that 
     is a perishable agricultural commodity or peanut may 
     designate the covered commodity as having a United States 
     country of origin only if the covered commodity is 
     exclusively produced in the United States.
       ``(B) State, region, locality of the united states.--With 
     respect to a covered

[[Page 21538]]

     commodity that is a perishable agricultural commodity 
     produced exclusively in the United States, designation by a 
     retailer of the State, region, or locality of the United 
     States where such commodity was produced shall be sufficient 
     to identify the United States as the country of origin.''; 
     and
       Page 720, line 22 strike ``; and'' and insert ``.''.
       Page 720, strike line 23 and all that follows through page 
     721, line 9.
       Page 724, line 11, strike ``farmers and rancher'' and 
     insert ``farmers and ranchers''.
       Page 725, beginning line 8, strike clause (ii) regarding 
     matching funds.
       Page 727, beginning line 8, strike subsection (b).
       Page 733, line 22, strike ``and''.
       Page 734, line 2, strike the period and insert ``; and''.
       Page 734, after line 2, insert the following:
       (3) the coordination of the outreach activities among the 
     various agencies within the Department.
       (c) Report.--After the relocation described in this section 
     is completed, the Secretary shall submit to Congress a report 
     that includes information describing the new location of the 
     program.
       Page 734, line 23, strike ``and''.
       Page 735, line 2, strike the period and insert ``; and''.
       Page 735, beginning line 2, insert the following new 
     paragraph:
       (7) review ongoing efforts toward outreach in the agencies 
     and programs of the Department.
       Redesignate sections 11308, 11309, and 11310 as sections 
     11307, 11308, and 11309, respectively.
       Page 739, line 24, strike ``teach'' and insert ``each''.
       At the end of title XI, add the following new sections:

     SEC. 11310. SENSE OF CONGRESS REGARDING FOOD DESERTS, 
                   GEOGRAPHICALLY ISOLATED NEIGHBORHOODS AND 
                   COMMUNITIES WITH LIMITED OR NO ACCESS TO MAJOR 
                   CHAIN GROCERY STORES.

       It is the sense of Congress that the Secretary of 
     Agriculture, in conjunction with the National Institutes of 
     Health, the Centers for Disease Control, the Institute of 
     Medicine and faith-based organizations, should--
       (1) conduct a national assessment of food deserts in the 
     United States, namely those geographically isolated 
     neighborhoods and communities with limited or no access to 
     major-chain grocery stores; and
       (2) develop recommendations for eliminating food deserts.

     SEC. 11311. PIGFORD CLAIMS.

       (a) In General.--Any Pigford claimant who has not 
     previously obtained a determination on the merits of a 
     Pigford claim may, in a civil action, obtain that 
     determination.
       (b) Limitation.--Notwithstanding any other provision of 
     law--
       (1) All payments or debt relief (including any limitation 
     on foreclosure under subsection (f)) made pursuant to an 
     action commenced under subsection (a) shall be made 
     exclusively from funds made available pursuant to subsection 
     (h), Provided that the total amount of payments and debt 
     relief pursuant to an action commenced under subsection (a) 
     shall not exceed $100,000,000; and,
       (2) In no event may such payments or debt relief be made 
     from the Judgement Fund established by 31 U.S.C. 1304.
       (c) Intent of Congress as to Remedial Nature of Section.--
     It is the intent of Congress that this section be liberally 
     construed so as to effectuate its remedial purpose of giving 
     a full determination on the merits for each Pigford claim 
     denied that determination.
       (d) Loan Data.--
       (1) Report to person submitting petition.--Not later than 
     60 days after the Secretary of Agriculture receives notice of 
     a complaint filed by a claimant under subsection (a), the 
     Secretary shall provide to the claimant a report on farm 
     credit loans made within the claimant's county or adjacent 
     county by the Department during the period beginning on 
     January 1 of the year preceding the year or years covered by 
     the complaint and ending on December 31 of year following 
     such year or years. Such report shall contain information on 
     all persons whose application for a loan was accepted, 
     including--
       (A) the race of the applicant;
       (B) the date of application;
       (C) the date of the loan decision;
       (D) the location of the office making the loan decision; 
     and
       (E) all data relevant to the process of deciding on the 
     loan.
       (2) No personally identifiable information.--The reports 
     provided pursuant to paragraph (1) shall not contain any 
     information that would identify any person that applied for a 
     loan from the Department of Agriculture.
       (e) Expedited Resolutions Authorized.--Any person filing a 
     complaint under this Act for discrimination in the 
     application for, or making or servicing of, a farm loan, at 
     his or her discretion, may seek liquidated damages of 
     $50,000, discharge of the debt that was incurred under, or 
     affected by, the discrimination that is the subject of the 
     person's complaint, and a tax payment in the amount equal to 
     25 percent of the liquidated damages and loan principal 
     discharged, in which case--
       (1) if only such damages, debt discharge, and tax payment 
     are sought, the complainant shall be able to prove his or her 
     case by substantial evidence; and
       (2) the court shall decide the case based on a review of 
     documents submitted by the complainant and defendant relevant 
     to the issues of liability and damages.
       (f) Limitation on Foreclosures.--The Secretary of 
     Agriculture may not begin acceleration on or foreclosure of a 
     loan if a borrower is a Pigford claimant and, in an 
     appropriate administrative proceeding, makes a prima facie 
     case that the foreclosure is related to a Pigford claim.
       (g) Definitions.--In this Act--
       (1) the term ``Pigford claimant'' means an individual who 
     previously submitted a late-filing request under section 5(g) 
     of the consent decree in the case of Pigford v. Glickman, 
     approved by the United States District Court for the District 
     of Columbia on April 14, 1999; and
       (2) the term ``Pigford claim'' means a discrimination 
     complaint, as defined by section 1(h) of that consent decree 
     and documented under section 5(b) of that consent decree.
       (h) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall make available $100,000,000 
     for fiscal year 2008, to remain available until expended, for 
     payments and debt relief in satisfaction of claims against 
     the United States under subsection (a), and for any actions 
     made pursuant to subsection (f).

     SEC. 11312. COMPTROLLER GENERAL STUDY OF WASTEWATER 
                   INFRASTRUCTURE NEAR UNITED STATES-MEXICO 
                   BORDER.

       The Comptroller General shall conduct a study of the state 
     of wastewater infrastructure in rural communities within 150 
     miles of the United States-Mexico border to determine what 
     the Federal Government can do to assist border rural 
     communities in bringing wastewater infrastructure up to date.
       Page 189, line 8, strike ``1,000,000'' and insert 
     ``1,340,000''.
       Strike section 3005 (relating to McGovern-Dole 
     International Food for Education and Child Nutrition Program) 
     and insert the following:

     SEC. 3005. REAUTHORIZATION OF MCGOVERN-DOLE INTERNATIONAL 
                   FOOD FOR EDUCATION AND CHILD NUTRITION PROGRAM.

       (a) Administration of Program.--Section 3107 of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 1736o-1) 
     is amended--
       (1) in subsection (d), in the matter preceding paragraph 
     (1), by striking ``The President shall designate 1 or more 
     Federal agencies to'' and inserting ``The Secretary shall'';
       (2) in subsection (f)(2), in the matter preceding 
     subparagraph (A), by striking ``implementing agency'' and 
     inserting ``Secretary''; and
       (3) in subsections (c)(2)(B), (f)(1), (h)(1) and (2), and 
     (i), by striking ``President'' each place it appears and 
     inserting ``Secretary''.
       (b) Funding.--Section 3107(l) of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 1736o-1(l)) is 
     amended--
       (1) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) Use of commodity credit corporation funds.--Of the 
     funds of the Commodity Credit Corporation, the Secretary 
     shall use to carry out this section--
       ``(A) $0 for fiscal year 2008;
       ``(B) $140,000,000 for fiscal year 2009;
       ``(C) $170,000,000 for fiscal year 2010;
       ``(D) $230,000,000 for fiscal year 2011;
       ``(E) $300,000,000 for fiscal year 2012; and
       ``(F) $0 for fiscal year 2013.'';
       (2) by redesignating paragraph (3) as paragraph (2); and
       (3) in paragraph (2) (as redesignated by paragraph (2)), by 
     striking ``any Federal agency implementing or assisting'' and 
     inserting ``the Department of Agriculture or any other 
     Federal agency assisting''.
       Strike section 11001.
       At the end of subtitle A of title XI add the following new 
     section:

     SEC. 1101_. SHARE OF RISK.

       (a) In General.--Section 508(k)(3) of the Federal Crop 
     Insurance Act (7 U.S.C. 1508(k)(3)) is amended--
       (1) by striking ``require the'' and inserting ``require--
       ``(A) the'';
       (2) by striking the period at the end and inserting ``; 
     and''; and
       (3) by adding at the end the following:
       ``(B)(i) the cumulative underwriting gain or loss, and the 
     associated premium and losses with such amount, calculated 
     under any reinsurance agreement (except livestock) ceded to 
     the Corporation by each approved insurance provider to be not 
     less than 12.5 percent; and
       ``(ii) the Corporation to pay a ceding commission to 
     reinsured companies of 2 percent of the premium used to 
     define the loss ratio for the approved insurance provider's 
     book of business that is described in clause (i).''.
       (b) Conforming Amendments.--Section 516(a)(2) of the 
     Federal Crop Insurance Act (7

[[Page 21539]]

     U.S.C. 1516(a)(2)) is amended by adding at the end the 
     following new subparagraph:
       ``(E) Costs associated with the ceding commissions 
     described in section 508(k)(3)(B)(ii).''.
       (c) Effective Date.--This section shall take effect on the 
     first June 30th after the date of the enactment of this Act.
       At the end of title XI add the following new section:

     SEC. 113__. ELIMINATION OF STATUTE OF LIMITATIONS APPLICABLE 
                   TO COLLECTION OF DEBT BY ADMINISTRATIVE OFFSET.

       (a) Elimination.--Section 3716(e) of title 31, United 
     States Code, is amended to read as follows:
       ``(e)(1) Notwithstanding any other provision of law, 
     regulation, or administrative limitation, no limitation on 
     the period within which an offset may be initiated or taken 
     pursuant to this section shall be effective.
       ``(2) This section does not apply when a statute explicitly 
     prohibits using administrative offset or setoff to collect 
     the claim or type of claim involved.''.
       (b) Application of Amendment.--The amendment made by 
     subsection (a) shall apply to any debt outstanding on or 
     after the date of the enactment of this Act.
       At the end of the bill add the following new title:

                     TITLE XII--ADDITIONAL OFFSETS

Subtitle A--Conservation of Resources Fees and Repeal of Royalty Relief

     SEC. 12001. CONSERVATION OF RESOURCES FEES.

       (a) Conservation of Resources Fees.--
       (1) In general.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary of the Interior by 
     regulation shall establish a conservation of resources fee 
     for producing Federal oil and gas leases in the Gulf of 
     Mexico.
       (2) Fee terms.--The fee under paragraph (1)--
       (A) subject to subparagraph (C), shall apply to covered 
     leases that are producing leases;
       (B) shall be set at $9 per barrel for oil and $1.25 per 
     million Btu for gas, respectively, in 2005 dollars; and
       (C) shall apply only to production of oil or gas 
     occurring--
       (i) in any calendar year in which the arithmetic average of 
     the daily closing prices for light sweet crude oil on the New 
     York Mercantile Exchange (NYMEX) exceeds $34.73 per barrel 
     for oil and $4.34 per million Btu for gas in 2005 dollars; 
     and
       (ii) on or after October 1, 2006.
       (3) Treatment of receipts.--Amounts received by the United 
     States as fees under this subsection shall be treated as 
     offsetting receipts.
       (b) Covered Lease Defined.--In this section the term 
     ``covered lease'' means a lease for oil or gas production in 
     the Gulf of Mexico that is--
       (1) in existence on the date of enactment of this Act;
       (2) issued by the Department of the Interior under section 
     304 of the Outer Continental Shelf Deep Water Royalty Relief 
     Act (43 U.S.C. 1337 note; Public Law 104-58); and
       (3) not subject to limitations on royalty relief based on 
     market price that are equal to or less than the price 
     thresholds described in clauses (v) through (vii) of section 
     8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1337(a)(3)(C)).

     SEC. 12002. REPEAL OF CERTAIN TAXPAYER SUBSIDIZED ROYALTY 
                   RELIEF FOR THE OIL AND GAS INDUSTRY.

       (a) Repeal of Provisions of Energy Policy Act of 2005.--The 
     following provisions of the Energy Policy Act of 2005 (Public 
     Law 109-58) are repealed:
       (1) Section 344 (42 U.S.C. 15904; relating to incentives 
     for natural gas production from deep wells in shallow waters 
     of the Gulf of Mexico).
       (2) Section 345 (42 U.S.C. 15905; relating to royalty 
     relief for deep water production in the Gulf of Mexico).
       (3) Subsection (i) of section 365 (42 U.S.C. 15924; 
     relating to the prohibition on drilling-related permit 
     application cost recovery fees).
       (b) Provisions Relating to Planning Areas Offshore 
     Alaska.--Section 8(a)(3)(B) of the Outer Continental Shelf 
     Lands Act (43 U.S.C. 1337(a)(3)(B)) is amended by striking 
     ``and in the Planning Areas offshore Alaska'' after ``West 
     longitude''.
       (c) Provisions Relating to Naval Petroleum Reserve in 
     Alaska.--Section 107 of the Naval Petroleum Reserves 
     Production Act of 1976 (as transferred, redesignated, moved, 
     and amended by section 347 of the Energy Policy Act of 2005 
     (119 Stat. 704)) is amended--
       (1) in subsection (i) by striking paragraphs (2) through 
     (6); and
       (2) by striking subsection (k).

     SEC. 12003. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       Subparagraph (B) of section 401(1) of the Tax Increase 
     Prevention and Reconciliation Act of 2005 is amended by 
     striking ``114.50 percent'' and inserting ``115.75 percent''.

                   Subtitle B--Allocation of Offsets

     SEC. 12011. REPORT ON FUNDS; RATE OF FEDERAL CROP INSURANCE.

       (a) Report.--Not later than the September 15 preceding each 
     fiscal year, the Secretary of the Interior shall report to 
     the Secretary of Agriculture the total amount expected to be 
     received in the fiscal year as a result of the changes in 
     subtitle A.
       (b) Rate.-- Notwithstanding section 508(k)(4)(A)(ii) of the 
     Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(A)(ii)), the 
     reimbursement rate established for each of the reinsurance 
     years 2012 through 2017 shall be the lesser of--
       (1) the rate established in such section; and
       (2) the product of--
       (A) the rate established in such section; and
       (B) the factor calculated in subsection (c).
       (c) Calculation.--In carrying out subsection (b), the 
     Secretary of the Interior shall calculate the appropriate 
     factor by dividing the amount calculated under subsection (a) 
     for the fiscal year by the amount calculated under subsection 
     (a) for fiscal year 2012.
       Page 667, line 16, strike ``2'' and insert ``2.9''.

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