[House Report 107-191]
[From the U.S. Government Publishing Office]



107th Congress                                            Rept. 107-191
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
                       FARM SECURITY ACT OF 2001

                                _______
                                

                 August 2, 2001.--Ordered to be printed

                                _______
                                

Mr. Combest, from the Committee on Agriculture, submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2646]

  The Committee on Agriculture, to whom was referred the bill 
(H.R. 2646) to provide for the continuation of agricultural 
programs through fiscal year 2011, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Farm Security Act of 
2001''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

                      TITLE I--COMMODITY PROGRAMS

Sec. 100. Definitions.

   Subtitle A--Fixed Decoupled Payments and Counter-Cyclical Payments

Sec. 101. Payments to eligible producers.
Sec. 102. Establishment of payment yield.
Sec. 103. Establishment of base acres and payment acres for a farm.
Sec. 104. Availability of fixed, decoupled payments.
Sec. 105. Availability of counter-cyclical payments.
Sec. 106. Producer agreement required as condition on provision of 
fixed, decoupled payments and counter-cyclical payments.
Sec. 107. Planting flexibility.
Sec. 108. Relation to remaining payment authority under production 
flexibility contracts.
Sec. 109. Payment limitations.
Sec. 110. Period of effectiveness.

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

Sec. 121. Availability of nonrecourse marketing assistance loans for 
covered commodities.
Sec. 122. Loan rates for nonrecourse marketing assistance loans.
Sec. 123. Term of loans.
Sec. 124. Repayment of loans.
Sec. 125. Loan deficiency payments.
Sec. 126. Payments in lieu of loan deficiency payments for grazed 
acreage.
Sec. 127. Special marketing loan provisions for upland cotton.
Sec. 128. Special competitive provisions for extra long staple cotton.
Sec. 129. Availability of recourse loans for high moisture feed grains 
and seed cotton and other fibers.
Sec. 130. Availability of nonrecourse marketing assistance loans for 
wool and mohair.
Sec. 131. Availability of nonrecourse marketing assistance loans for 
honey.

                     Subtitle C--Other Commodities

                            Chapter 1--Dairy

Sec. 141. Milk price support program.
Sec. 142. Repeal of recourse loan program for processors.
Sec. 143. Dairy export incentive program.
Sec. 144. Fluid milk promotion.
Sec. 145. Dairy product mandatory reporting.
Sec. 146. Funding of dairy promotion and research program.

                            Chapter 2--Sugar

Sec. 151. Sugar program.
Sec. 152. Reauthorize provisions of Agricultural Adjustment Act of 1938 
regarding sugar.
Sec. 153. Storage facility loans.

                           Chapter 3--Peanuts

Sec. 161. Definitions.
Sec. 162. Establishment of payment yield, peanut acres, and payment 
acres for a farm.
Sec. 163. Availability of fixed, decoupled payments for peanuts.
Sec. 164. Availability of counter-cyclical payments for peanuts.
Sec. 165. Producer agreement required as condition on provision of 
fixed, decoupled payments and counter-cyclical payments.
Sec. 166. Planting flexibility.
Sec. 167. Marketing assistance loans and loan deficiency payments for 
peanuts.
Sec. 168. Quality improvement.
Sec. 169. Payment limitations.
Sec. 170. Termination of marketing quota programs for peanuts and 
compensation to peanut quota holders for loss of quota asset value.

                       Subtitle D--Administration

Sec. 181. Administration generally.
Sec. 182. Extension of suspension of permanent price support authority.
Sec. 183. Limitations.
Sec. 184. Adjustments of loans.
Sec. 185. Personal liability of producers for deficiencies.
Sec. 186. Extension of existing administrative authority regarding 
loans.
Sec. 187. Assignment of payments.

                         TITLE II--CONSERVATION

                         Subtitle A--Definition

Sec. 201. Definition of agricultural commodity.

                Subtitle B--Wetland Conservation Program

Sec. 211. Ineligibility for certain loans and payments.

     Subtitle C--Environmental Conservation Acreage Reserve Program

Sec. 221. Elimination of general provisions.

                Subtitle D--Conservation Reserve Program

Sec. 231. Reauthorization.
Sec. 232. Enrollment.
Sec. 233. Duties of owners and operators.
Sec. 234. Duties of the Secretary.
Sec. 235. Acceptance of contract offers.
Sec. 236. Contracts.

                  Subtitle E--Wetlands Reserve Program

Sec. 241. Enrollment.
Sec. 242. Easements and agreements.
Sec. 243. Duties of the Secretary.
Sec. 244. Payment limitation.
Sec. 245. Changes in ownership; agreement modification; termination.

          Subtitle F--Environmental Quality Incentives Program

Sec. 251. Purposes.
Sec. 252. Definitions.
Sec. 253. Establishment and administration.
Sec. 254. Evaluation of offers and payments.
Sec. 255. Duties of producers.
Sec. 256. Environmental Quality Incentives Program plan.
Sec. 257. Duties of the Secretary.
Sec. 258. Limitation on payments.
Sec. 259. Groundwater conservation.

                 Subtitle G--Funding and Administration

Sec. 261. Reauthorization.
Sec. 262. Funding.
Sec. 263. Allocation for livestock production.
Sec. 264. Use of other agencies.
Sec. 265. Administration and technical assistance.

                       Subtitle H--Other Programs

Sec. 271. Wildlife Habitat Incentives Program.
Sec. 272. Farmland Protection Program.
Sec. 273. Resource Conservation and Development Program.
Sec. 274. Grassland Reserve Program.
Sec. 275. Farmland Stewardship Program.
Sec. 276. Small Watershed Rehabilitation Program.

                   Subtitle I--Availability of Funds

Sec. 281. Availability of funds appropriated pursuant to the Soil 
Conservation and Domestic Allotment Act.

                          Subtitle J--Repeals

Sec. 291. Provisions of the Food Security Act of 1985.
Sec. 292. National Natural Resources Conservation Foundation Act.

                            TITLE III--TRADE

Sec. 301. Market Access Program.
Sec. 302. Food for Progress.
Sec. 303. Export Enhancement Program.
Sec. 304. Foreign Market Development Cooperator Program.
Sec. 305. Export Credit Guarantee Program.
Sec. 306. Food for Peace (PL 480).
Sec. 307. Emerging markets.
Sec. 308. Bill Emerson Humanitarian Trust.
Sec. 309. Technical assistance for specialty crops.

                      TITLE IV--NUTRITION PROGRAMS

                     Subtitle A--Food Stamp Program

Sec. 401. Simplified definition of income.
Sec. 402. Standard deduction.
Sec. 403. Transitional food stamps for families moving from welfare.
Sec. 404. Quality control systems.
Sec. 405. Simplified application and eligibility determination systems.
Sec. 406. Authorization of appropriations.

                   Subtitle B--Commodity Distribution

Sec. 441. Distribution of surplus commodities to special nutrition 
projects.
Sec. 442. Commodity supplemental food program.
Sec. 443. Emergency food assistance.

                  Subtitle C--Miscellaneous Provisions

Sec. 461. Hunger fellowship program.
Sec. 462. General effective date.

                            TITLE V--CREDIT

Sec. 501. Eligibility of limited liability companies for farm ownership 
loans, farm operating loans, and emergency loans.
Sec. 502. Suspension of limitation on period for which borrowers are 
eligible for guaranteed assistance.
Sec. 503. Administration of Certified Lenders and Preferred Certified 
Lenders programs.
Sec. 504. Simplified loan guarantee application available for loans of 
greater amounts.
Sec. 505. Elimination of requirement that Secretary require county 
committees to certify in writing that certain loan reviews have been 
conducted.
Sec. 506. Authority to reduce percentage of loan guaranteed if borrower 
income is insufficient to service debt.
Sec. 507. Timing of loan assessments.
Sec. 508. Making and servicing of loans by personnel of State, county, 
or area committees.
Sec. 509. Eligibility of employees of State, county, or area committee 
for loans and loan guarantees.
Sec. 510. Emergency loans in response to an economic emergency 
resulting from quarantines and sharply increasing energy costs.
Sec. 511. Extension of authority to contract for servicing of farmer 
program loans.
Sec. 512. Authorization for loans.
Sec. 513. Reservation of funds for direct operating loans for beginning 
farmers and ranchers.
Sec. 514. Extension of interest rate reduction program.
Sec. 515. Increase in duration of loans under down payment loan 
program.
Sec. 516. Horse breeder loans.
Sec. 517. Sunset of direct loan programs under the Consolidated Farm 
and Rural Development Act.
Sec. 518. Definition of debt forgiveness.
Sec. 519. Loan eligibility for borrowers with prior debt forgiveness.
Sec. 520. Allocation of certain funds for socially disadvantaged 
farmers and ranchers.
Sec. 521. Horses considered to be livestock under the Consolidated Farm 
and Rural Development Act.

                      TITLE VI--RURAL DEVELOPMENT

Sec. 601. Funding for rural local television broadcast signal loan 
guarantees.
Sec. 602. Expanded eligibility for value-added agricultural product 
market development grants.
Sec. 603. Agriculture innovation center demonstration program.
Sec. 604. Funding of community water assistance grant program.
Sec. 605. Loan guarantees for the financing of the purchase of 
renewable energy systems.
Sec. 606. Loans and loan guarantees for renewable energy systems.
Sec. 607. Rural business opportunity grants.
Sec. 608. Grants for water systems for rural and native villages in 
Alaska.
Sec. 609. Rural cooperative development grants.
Sec. 610. National reserve account of Rural Development Trust Fund.
Sec. 611. Rural venture capital demonstration program.
Sec. 612. Increase in limit on certain loans for rural development.
Sec. 613. Pilot program for development and implementation of strategic 
regional development plans.
Sec. 614. 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. 615. National Rural Development Partnership.
Sec. 616. Eligibility of rural empowerment zones, rural enterprise 
communities, and champion communities for direct and guaranteed loans 
for essential community facilities.
Sec. 617. Grants to train farm workers in new technologies and to train 
farm workers in specialized skills necessary for higher value crops.
Sec. 618. Loan guarantees for the purchase of stock in a farmer 
cooperative seeking to modernize or expand.
Sec. 619. Intangible assets and subordinated unsecured debt required to 
be considered in determining eligibility of farmer-owned cooperative 
for business and industry guaranteed loan.
Sec. 620. Ban on limiting eligibility of farmer cooperative for 
business and industry loan guarantee based on population of area in 
which cooperative is located.

                TITLE VII--RESEARCH AND RELATED MATTERS

                         Subtitle A--Extensions

Sec. 700. Market expansion research.
Sec. 701. National Rural Information Center Clearinghouse.
Sec. 702. Grants and fellowships for food and agricultural sciences 
education.
Sec. 703. Policy research centers.
Sec. 704. Human nutrition intervention and health promotion research 
program.
Sec. 705. Pilot research program to combine medical and agricultural 
research.
Sec. 706. Nutrition education program.
Sec. 707. Continuing animal health and disease research programs.
Sec. 708. Appropriations for research on national or regional problems.
Sec. 709. Grants to upgrade agricultural and food sciences facilities 
at 1890 land-grant colleges, including Tuskegee University.
Sec. 710. National research and training centennial centers at 1890 
land-grant institutions.
Sec. 711. Hispanic-serving institutions.
Sec. 712. Competitive grants for international agricultural science and 
education programs.
Sec. 713. University research.
Sec. 714. Extension service.
Sec. 715. Supplemental and alternative crops.
Sec. 716. Aquaculture research facilities.
Sec. 717. Rangeland research.
Sec. 718. National genetics resources program.
Sec. 719. High-priority research and extension initiatives.
Sec. 720. Nutrient management research and extension initiative.
Sec. 721. Agricultural telecommunications program.
Sec. 722. Alternative Agricultural Research And Commercialization 
Revolving Fund.
Sec. 723. Assistive technology program for farmers with disabilities.
Sec. 724. Partnerships for high-value agricultural product quality 
research.
Sec. 725. Biobased products.
Sec. 726. Integrated research, education, and extension competitive 
grants program.
Sec. 727. Institutional capacity building grants.
Sec. 728. 1994 Institution research grants.
Sec. 729. Endowment for 1994 Institutions.
Sec. 730. Precision agriculture.
Sec. 731. Thomas Jefferson Initiative for Crop Diversification.
Sec. 732. Support for research regarding diseases of wheat, triticale, 
and barley caused by Fusarium graminearum or by Tilletia indica.
Sec. 733. Office of Pest Management policy.
Sec. 734. National Agricultural Research, Extension, Education, and 
Economics Advisory Board.
Sec. 735. Grants for research on production and marketing of alcohols 
and industrial hydrocarbons from agricultural commodities and forest 
products.
Sec. 736. Biomass research and development.
Sec. 737. Agricultural experiment stations research facilities.
Sec. 738. Competitive, Special, and Facilities Research Grants National 
Research Initiative.
Sec. 739. Federal agricultural research facilities authorization of 
appropriations.

                       Subtitle B--Modifications

Sec. 741. Equity in Educational Land-Grant Status Act of 1994.
Sec. 742. National Agricultural Research, Extension, and Teaching 
Policy Act of 1977.
Sec. 743. Agricultural Research, Extension, and Education Reform Act of 
1998.
Sec. 744. Food, Agriculture, Conservation, and Trade Act of 1990.
Sec. 745. National Agricultural Research, Extension, and Teaching 
Policy Act of 1977.
Sec. 746. Biomass research and development.
Sec. 747. Biotechnology risk assessment research.
Sec. 748. Competitive, special, and facilities research grants.
Sec. 749. Matching funds requirement for research and extension 
activities of 1890 Institutions.
Sec. 750. Initiative for future agriculture and food systems.
Sec. 751. Carbon cycle research.
Sec. 752. Definition of food and agricultural sciences.
Sec. 753. Federal extension service.

                      Subtitle C--Related Matters

Sec. 761. Resident instruction at land-grant colleges in United States 
territories.
Sec. 762. Declaration of extraordinary emergency and resulting 
authorities.

        Subtitle D--Repeal of Certain Activities and Authorities

Sec. 771. Food Safety Research Information Office and National 
Conference.
Sec. 772. Reimbursement of expenses under Sheep Promotion, Research, 
and Information Act of 1994.
Sec. 773. National genetic resources program.
Sec. 774. National Advisory Board on Agricultural Weather.
Sec. 775. Agricultural information exchange with Ireland.
Sec. 776. Pesticide resistance study.
Sec. 777. Expansion of education study.
Sec. 778. Support for Advisory Board.
Sec. 779. Task force on 10-year strategic plan for agricultural 
research facilities.

              Subtitle E--Agriculture Facility Protection

Sec. 790. Additional protections for animal or agricultural 
enterprises, research facilities, and other entities.

                    TITLE VIII--FORESTRY INITIATIVES

Sec. 801. Repeal of forestry incentives program and stewardship 
incentive program.
Sec. 802. Establishment of forest land enhancement program.
Sec. 803. Renewable resources extension activities.
Sec. 804. Enhanced community fire protection.
Sec. 805. International forestry program.
Sec. 806. Long-term forest stewardship contracts for hazardous fuels 
removal and implementation of National Fire Plan.
Sec. 807. McIntire-Stennis cooperative forestry research program.

                   TITLE IX--MISCELLANEOUS PROVISIONS

                  Subtitle A--Tree Assistance Program

Sec. 901. Eligibility.
Sec. 902. Assistance.
Sec. 903. Limitation on assistance.
Sec. 904. Definitions.

 Subtitle B--Advisory Council and Federal Interagency Working Group on 
                        Upper Mississippi River

Sec. 911. Definitions.
Sec. 912. Establishment of Advisory Council on the Upper Mississippi 
River Stewardship Initiative.
Sec. 913. Responsibilities of Advisory Council.
Sec. 914. Advisory nature of council.
Sec. 915. Federal Interagency Working Group
Sec. 916. Authorization of appropriations.

                       Subtitle C--Other Matters

Sec. 921. Hazardous fuel reduction grants to prevent wildfire disasters 
and transform hazardous fuels to electric energy, useful heat, or 
transportation fuels.
Sec. 922. Bioenergy program.
Sec. 923. Availability of section 32 funds.
Sec. 924. Seniors farmers' market nutrition program.
Sec. 925. Federal marketing order for cane berries.
Sec. 926. National Appeals Division.
Sec. 927. Outreach and assistance for socially disadvantaged farmers 
and ranchers.

                      TITLE I--COMMODITY PROGRAMS

SEC. 100. DEFINITIONS.

  In this title (other than chapter 3 of subtitle C):
          (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).
          (2) Base acres.--The term ``base acres'', with respect to a 
        covered commodity on a farm, means the number of acres 
        established under section 103 with respect to the commodity 
        upon the election made by the producers on the farm under 
        subsection (a) of such section.
          (3) Counter-cyclical payment.--The term ``counter-cyclical 
        payment'' means a payment made to producers under section 105.
          (4) Covered commodity.--The term ``covered commodity'' means 
        wheat, corn, grain sorghum, barley, oats, upland cotton, rice, 
        soybeans, and other oilseeds.
          (5) 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 105 to determine 
        whether counter-cyclical payments are required to be made for 
        that crop year.
          (6) Eligible producer.--The term ``eligible producer'' means 
        a producer described in section 101(a).
          (7) Fixed, decoupled payment.--The term ``fixed, decoupled 
        payment'' means a payment made to producers under section 104.
          (8) Other oilseed.--The term ``other oilseed'' means a crop 
        of sunflower seed, rapeseed, canola, safflower, flaxseed, 
        mustard seed, or, if designated by the Secretary, another 
        oilseed.
          (9) Payment acres.--The term ``payment acres'' means 85 
        percent of the base acres of a covered commodity on a farm, as 
        established under section 103, upon which fixed, decoupled 
        payments and counter-cyclical payments are to be made.
          (10) Payment yield.--The term ``payment yield'' means the 
        yield established under section 102 for a farm for a covered 
        commodity.
          (11) Producer.--The term ``producer'' means an owner, 
        operator, landlord, tenant, or sharecropper who shares in the 
        risk of producing a crop and who is entitled to share in the 
        crop available for marketing from the farm, or would have 
        shared had the crop been produced. In determining whether a 
        grower of hybrid seed is a producer, the Secretary shall not 
        take into consideration the existence of a hybrid seed contract 
        and shall ensure that program requirements do not adversely 
        affect the ability of the grower to receive a payment under 
        this title.
          (12) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
          (13) 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.
          (14) Target price.--The term ``target price'' means the price 
        per bushel (or other appropriate unit in the case of upland 
        cotton, rice, and other oilseeds) of a covered commodity used 
        to determine the payment rate for counter-cyclical payments.
          (15) United states.--The term ``United States'', when used in 
        a geographical sense, means all of the States.

   Subtitle A--Fixed Decoupled Payments and Counter-Cyclical Payments

SEC. 101. PAYMENTS TO ELIGIBLE PRODUCERS.

  (a) Payments Required.--Beginning with the 2002 crop of covered 
commodities, the Secretary shall make fixed decoupled payments and 
counter-cyclical payments under this subtitle--
          (1) to producers on a farm that were parties to a production 
        flexibility contract under section 111 of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7211) 
        for fiscal year 2002; and
          (2) to other producers on farms in the United States as 
        described in section 103(a).
  (b) Tenants and Sharecroppers.--In carrying out this title, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
  (c) Sharing of Payments.--The Secretary shall provide for the sharing 
of fixed, decoupled payments and counter-cyclical payments among the 
eligible producers on a farm on a fair and equitable basis.

SEC. 102. ESTABLISHMENT OF PAYMENT YIELD.

  (a) Establishment and Purpose.--For the purpose of making fixed 
decoupled payments and counter-cyclical payments under this subtitle, 
the Secretary shall provide for the establishment of a payment yield 
for each farm for each covered commodity in accordance with this 
section.
  (b) Use of Farm Program Payment Yield.--Except as otherwise provided 
in this section, the payment yield for each of the 2002 through 2011 
crops of a covered commodity for a farm shall be the farm program 
payment yield in effect for the 2002 crop of the covered commodity 
under section 505 of the Agricultural Act of 1949 (7 U.S.C. 1465).
  (c) Farms Without Farm Program Payment Yield.--In the case of a farm 
for which a farm program payment yield is unavailable for a covered 
commodity (other than soybeans or other oilseeds), the Secretary shall 
establish an appropriate payment yield for the covered commodity on the 
farm taking in consideration the farm program payment yields applicable 
to the commodity under subsection (b) for similar farms in the area.
  (d) Payment Yields for Oilseeds.--
          (1) Average yield.--In the case of soybeans and each other 
        oilseed, the Secretary shall establish a payment yield for a 
        farm for the oilseed by first determining the average yield for 
        the oilseed on the farm for the 1998 through 2001 crop years, 
        excluding any crop year in which the acreage planted to the 
        oilseed was zero. If, for any of these four crop years in which 
        the oilseed was planted, the farm would have satisfied the 
        eligibility criteria established to carry out section 1102 of 
        the Agriculture, Rural Development, Food and Drug 
        Administration, and Related Agencies Appropriations Act, 1999 
        (Public Law 105-277; 7 U.S.C. 1421 note), the Secretary shall 
        assign a yield for that year equal to 65 percent of the county 
        yield.
          (2) Reduction.--The Secretary shall reduce the average yield 
        determined under paragraph (1) for the oilseed by a percentage 
        equal to the percentage increase in national average yields for 
        the oilseed between the following two periods:
                  (A) The 1981 through 1985 crops.
                  (B) The 1998 through 2001 crops.

SEC. 103. ESTABLISHMENT OF BASE ACRES AND PAYMENT ACRES FOR A FARM.

  (a) Election by Producers of Base Acre Calculation Method.--For the 
purpose of making fixed decoupled payments and counter-cyclical 
payments with respect to a farm, the Secretary shall give producers on 
the farm an opportunity to elect one of the following as the method by 
which the base acres of all covered commodities on the farm are to be 
determined:
          (1) The four-year average of acreage actually planted on the 
        farm to a covered commodity for harvest, grazing, haying, 
        silage, or other similar purposes during crop years 1998, 1999, 
        2000, and 2001 and any acreage on the farm that the producers 
        were prevented from planting during such crop years to the 
        covered commodity because of drought, flood, or other natural 
        disaster, or other condition beyond the control of the 
        producer, as determined by the Secretary.
          (2) The contract acreage (as defined in section 102 of the 
        Federal Agriculture Improvement and Reform Act of 1996 (7 
        U.S.C. 7202)) used by the Secretary to calculate the fiscal 
        year 2002 payment that, subject to section 109, would be made 
        under section 114 of such Act (7 U.S.C. 7214) for the covered 
        commodity on the farm.
  (b) Single Election; Time for Election.--The opportunity to make the 
election described in subsection (a) shall be available to producers on 
a farm only once. The producers shall notify the Secretary of the 
election made by the producers under such subsection not later than 180 
days after the date of the enactment of this Act.
  (c) Effect of Failure To Make Election.--If the producers on a farm 
fail to make the election under subsection (a), or fail to timely 
notify the Secretary of the selected option as required by subsection 
(b), the producers shall be deemed to have made the election described 
in subsection (a)(2) to determine base acres for all covered 
commodities on the farm.
  (d) Application of Election to All Covered Commodities.--The election 
made under subsection (a) or deemed to be made under subsection (c) 
with respect to a farm shall apply to all of the covered commodities on 
the farm. Producers may not make the election described in subsection 
(a)(1) for one covered commodity and the election described in 
subsection (a)(2) for other covered commodities on the farm.
  (e) Treatment of Conservation Reserve Contract Acreage.--
          (1) In general.--In the case of producers on a farm that make 
        the election described in subsection (a)(2), the Secretary 
        shall provide for an adjustment in the base acres for the farm 
        whenever either of the following circumstances occur:
                  (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 fiscal year and crop year 
        in which a base acre adjustment under paragraph (1) is first 
        made, the producers on the farm shall elect to receive either 
        fixed decoupled 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.
  (f) Payment Acres.--The payment acres for a covered commodity on a 
farm shall be equal to 85 percent of the base acres for the commodity.
  (g) Prevention of Excess Payment 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 quantity of base acres for one or more covered 
        commodities for the farm or peanut acres for the farm as 
        necessary so that the sum of the base acres and acreage 
        described in paragraph (2) does not exceed the actual cropland 
        acreage of the farm. The Secretary shall give the producers on 
        the farm the opportunity to select the base acres or peanut 
        acres against which the reduction will be made.
          (2) Other acreage.--For purposes of paragraph (1), the 
        Secretary shall include the following:
                  (A) Any peanut acres for the farm under chapter 3 of 
                subtitle C.
                  (B) 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.).
                  (C) 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.

SEC. 104. AVAILABILITY OF FIXED, DECOUPLED PAYMENTS.

  (a) Payment Required.--For each of the 2002 through 2011 crop years 
of each covered commodity, the Secretary shall make fixed, decoupled 
payments to eligible producers.
  (b) Payment Rate.--The payment rates used to make fixed, decoupled 
payments with respect to covered commodities for a crop year are as 
follows:
          (1) Wheat, $0.53 per bushel.
          (2) Corn, $0.30 per bushel.
          (3) Grain sorghum, $0.36 per bushel.
          (4) Barley, $0.25 per bushel.
          (5) Oats, $0.025 per bushel.
          (6) Upland cotton, $0.0667 per pound.
          (7) Rice, $2.35 per hundredweight.
          (8) Soybeans, $0.42 per bushel.
          (9) Other oilseeds, $0.0074 per pound.
  (c) Payment Amount.--The amount of the fixed, decoupled payment to be 
paid to the eligible 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) General rule.--Fixed, decoupled payments shall be paid 
        not later than September 30 of each of fiscal years 2002 
        through 2011. In the case of the 2002 crop, payments may begin 
        to be made on or after December 1, 2001.
          (2) Advance payments.--At the option of an eligible producer, 
        50 percent of the fixed, decoupled payment for a fiscal year 
        shall be paid on a date selected by the producer. The selected 
        date shall be on or after December 1 of that fiscal year, and 
        the producer may change the selected date for a subsequent 
        fiscal year by providing advance notice to the Secretary.
          (3) Repayment of advance payments.--If a producer that 
        receives an advance fixed, decoupled payment for a fiscal year 
        ceases to be an eligible producer before the date the fixed, 
        decoupled payment would otherwise have been made by the 
        Secretary under paragraph (1), the producer shall be 
        responsible for repaying the Secretary the full amount of the 
        advance payment.

SEC. 105. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

  (a) Payment Required.--The Secretary shall make counter-cyclical 
payments with respect to a covered commodity whenever the Secretary 
determines that the effective price for the commodity is less than the 
target price for the 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 
                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 same period under subtitle B.
          (2) The payment rate in effect for the covered commodity 
        under section 104 for the purpose of making fixed, decoupled 
        payments with respect to the commodity.
  (c) Target Price.--For purposes of subsection (a), the target prices 
for covered commodities are as follows:
          (1) Wheat, $4.04 per bushel.
          (2) Corn, $2.78 per bushel.
          (3) Grain sorghum, $2.64 per bushel.
          (4) Barley, $2.39 per bushel.
          (5) Oats, $1.47 per bushel.
          (6) Upland cotton, $0.736 per pound.
          (7) Rice, $10.82 per hundredweight.
          (8) Soybeans, $5.86 per bushel.
          (9) Other oilseeds, $0.1036 per pound.
  (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 commodity; and
          (2) the effective price determined under subsection (b) for 
        the commodity.
  (e) Payment Amount.--The amount of the counter-cyclical payment to be 
paid to the eligible 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 (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.--The Secretary shall make counter-cyclical 
        payments under this section for a crop of a covered commodity 
        as soon as possible after determining under subsection (a) that 
        such payments are required for that crop year.
          (2) Partial payment.--The Secretary may permit, and, if so 
        permitted, an eligible producer may elect to receive, up to 50 
        percent of the projected counter-cyclical payment, as 
        determined by the Secretary, to be made under this section for 
        a crop of a covered commodity upon completion of the first six 
        months of the marketing year for that crop. The producer shall 
        repay to the Secretary the amount, if any, by which the partial 
        payment exceeds the actual counter-cyclical payment to be made 
        for that marketing year.
  (g) Special Rule for Currently Undesignated Oilseed.--If the 
Secretary uses the authority under section 100(8) to designate another 
oilseed as an oilseed for which counter-cyclical payments may be made, 
the Secretary may modify the target price specified in subsection 
(c)(9) that would otherwise apply to that oilseed as the Secretary 
considers appropriate.

SEC. 106. PRODUCER AGREEMENT REQUIRED AS CONDITION ON PROVISION OF 
                    FIXED, DECOUPLED PAYMENTS AND COUNTER-CYCLICAL 
                    PAYMENTS.

  (a) Compliance With Certain Requirements.--
          (1) Requirements.--Before the producers on a farm may receive 
        fixed, decoupled payments or counter-cyclical payments with 
        respect to the farm, the producers shall agree, 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 the Act 
                (16 U.S.C. 3821 et seq.);
                  (C) to comply with the planting flexibility 
                requirements of section 107; and
                  (D) to use the land on the farm, in an amount equal 
                to the base acres, for an agricultural or conserving 
                use, and not for a nonagricultural commercial or 
                industrial use, 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).
  (b) Effect of Foreclosure.--A producer may not be required to make 
repayments to the Secretary of fixed, decoupled payments and counter-
cyclical payments if the farm has been foreclosed on and the Secretary 
determines that forgiving the repayments is appropriate to provide fair 
and equitable treatment. This subsection shall not void the 
responsibilities of the producer under subsection (a) if the producer 
continues or resumes operation, or control, of the farm. On the 
resumption of operation or control over the farm by the producer, the 
requirements of subsection (a) in effect on the date of the foreclosure 
shall apply.
  (c) Transfer or Change of Interest in Farm.--
          (1) Termination.--Except as provided in paragraph (4), a 
        transfer of (or change in) the interest of a producer in base 
        acres for which fixed, decoupled 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). The termination shall be effective on the date 
        of the transfer or change.
          (2) Transfer of payment base.--There is no restriction on the 
        transfer of a farm's base acres or payment yield as part of a 
        change in the producers on the farm.
          (3) Modification.--At the request of the transferee or owner, 
        the Secretary may modify the requirements of subsection (a) if 
        the modifications are consistent with the objectives of such 
        subsection, as determined by the Secretary.
          (4) Exception.--If a producer entitled to a fixed, decoupled 
        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 regulations 
        prescribed by the Secretary.
  (d) Acreage Reports.--
          (1) In general.--As a condition on the receipt of any 
        benefits under this subtitle or subtitle B, the Secretary shall 
        require producers to submit to the Secretary acreage reports.
          (2) Conforming Amendment.--Section 15 of the Agricultural 
        Marketing Act (12 U.S.C. 1141j) is amended by striking 
        subsection (d).
  (e) Review.--A determination of the Secretary under this section 
shall be considered to be an adverse decision for purposes of the 
availability of administrative review of the determination.

SEC. 107. PLANTING FLEXIBILITY.

  (a) Permitted Crops.--Subject to subsection (b), any commodity or 
crop may be planted on base acres on a farm.
  (b) Limitations and Exceptions Regarding Fruits and Vegetables.--
          (1) Limitations.--The planting of fruits and vegetables 
        (other than lentils, mung beans, and dry peas) shall be 
        prohibited on base acres.
          (2) Exceptions.--Paragraph (1) shall not limit the planting 
        of a fruit or vegetable--
                  (A) in any region in which there is a history of 
                double-cropping of covered commodities with fruits or 
                vegetables, as determined by the Secretary, in which 
                case the double-cropping shall be permitted;
                  (B) on a farm that the Secretary determines has a 
                history of planting fruits or vegetables on base acres, 
                except that fixed, decoupled payments and counter-
                cyclical payments shall be reduced by an acre for each 
                acre planted to the fruit or vegetable; or
                  (C) by a producer who the Secretary determines has an 
                established planting history of a specific fruit or 
                vegetable, except that--
                          (i) the quantity planted may not exceed the 
                        producer's average annual planting history of 
                        the fruit or vegetable in the 1991 through 1995 
                        crop years (excluding any crop year in which no 
                        plantings were made), as determined by the 
                        Secretary; and
                          (ii) fixed, decoupled payments and counter-
                        cyclical payments shall be reduced by an acre 
                        for each acre planted to the fruit or 
                        vegetable.

SEC. 108. RELATION TO REMAINING PAYMENT AUTHORITY UNDER PRODUCTION 
                    FLEXIBILITY CONTRACTS.

  (a) Termination of Superseded Payment Authority.--Notwithstanding 
section 113(a)(7) of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7213(a)(7)) or any other provision of law, the 
Secretary shall not make payments for fiscal year 2002 after the date 
of the enactment of this Act under production flexibility contracts 
entered into under section 111 of such Act (7 U.S.C. 7211).
  (b) Contract Payments Made Before Enactment.--If, on or before the 
date of the enactment of this Act, a producer receives all or any 
portion of the payment authorized for fiscal year 2002 under a 
production flexibility contract, the Secretary shall reduce the amount 
of the fixed, decoupled payment otherwise due the producer for that 
same fiscal year by the amount of the fiscal year 2002 payment 
previously received by the producer.

SEC. 109. PAYMENT LIMITATIONS.

  Sections 1001 through 1001C of the Food Security Act of 1985 (7 
U.S.C. 1308 through 1308-3) shall apply to fixed, decoupled payments 
and counter-cyclical payments. A producer eligible to receive a fixed, 
decoupled payment or counter-cyclical payment satisfies the 
requirements of section 1001A(b) of such Act.

SEC. 110. PERIOD OF EFFECTIVENESS.

  This subtitle shall be effective beginning with the 2002 crop year of 
each covered commodity through the 2011 crop year.

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

SEC. 121. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR 
                    COVERED COMMODITIES.

  (a) Nonrecourse Loans Available.--
          (1) Availability.--For each of the 2002 through 2011 crops of 
        each covered commodity, the Secretary shall make available to 
        producers on a farm nonrecourse marketing assistance loans for 
        covered commodities produced on the farm. The loans shall be 
        made under terms and conditions that are prescribed by the 
        Secretary and at the loan rate established under section 122 
        for the covered commodity.
          (2) Inclusion of extra long staple cotton.--In this subtitle, 
        the term ``covered commodity'' includes extra long staple 
        cotton.
  (b) Eligible Production.--Any production of a covered commodity on a 
farm shall be eligible for a marketing assistance loan under subsection 
(a).
  (c) Treatment of Certain Commingled Commodities.--In carrying out 
this subtitle, the Secretary shall make loans to a producer that is 
otherwise eligible to obtain a marketing assistance loan, but for the 
fact the covered commodity owned by the producer is commingled with 
covered commodities of other producers in facilities unlicensed for the 
storage of agricultural commodities by the Secretary or a State 
licensing authority, if the producer obtaining the loan agrees 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) Definition of Extra Long Staple Cotton.--In this subtitle, the 
term ``extra long staple cotton'' means cotton that--
          (1) is produced from pure strain varieties of the Barbadense 
        species or any hybrid thereof, 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
          (2) is ginned on a roller-type gin or, if authorized by the 
        Secretary, ginned on another type gin for experimental 
        purposes.
  (f) Termination of Superseded Loan Authority.--Notwithstanding 
section 131 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7231), nonrecourse marketing assistance loans shall not 
be made for the 2002 crop of covered commodities under subtitle C of 
title I of such Act.

SEC. 122. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.

  (a) Wheat.--
          (1) Loan rate.--Subject to paragraph (2), the loan rate for a 
        marketing assistance loan under section 121 for wheat shall 
        be--
                  (A) not less than 85 percent of the simple average 
                price received by producers of wheat, as determined by 
                the Secretary, during the marketing years for the 
                immediately preceding five crops of wheat, excluding 
                the year in which the average price was the highest and 
                the year in which the average price was the lowest in 
                the period; but
                  (B) not more than $2.58 per bushel.
          (2) Stocks to use ratio adjustment.--If the Secretary 
        estimates for any marketing year that the ratio of ending 
        stocks of wheat to total use for the marketing year will be--
                  (A) equal to or greater than 30 percent, the 
                Secretary may reduce the loan rate for wheat for the 
                corresponding crop by an amount not to exceed 10 
                percent in any year;
                  (B) less than 30 percent but not less than 15 
                percent, the Secretary may reduce the loan rate for 
                wheat for the corresponding crop by an amount not to 
                exceed 5 percent in any year; or
                  (C) less than 15 percent, the Secretary may not 
                reduce the loan rate for wheat for the corresponding 
                crop.
  (b) Feed Grains.--
          (1) Loan rate for corn and grain sorghum.--Subject to 
        paragraph (2), the loan rate for a marketing assistance loan 
        under section 121 for corn and grain sorghum shall be--
                  (A) not less than 85 percent of the simple average 
                price received by producers of corn or grain sorghum, 
                respectively, as determined by the Secretary, during 
                the marketing years for the immediately preceding five 
                crops of the covered commodity, excluding the year in 
                which the average price was the highest and the year in 
                which the average price was the lowest in the period; 
                but
                  (B) not more than $1.89 per bushel.
          (2) Stocks to use ratio adjustment.--If the Secretary 
        estimates for any marketing year that the ratio of ending 
        stocks of corn or grain sorghum to total use for the marketing 
        year will be--
                  (A) equal to or greater than 25 percent, the 
                Secretary may reduce the loan rate for the covered 
                commodity for the corresponding crop by an amount not 
                to exceed 10 percent in any year;
                  (B) less than 25 percent but not less than 12.5 
                percent, the Secretary may reduce the loan rate for the 
                covered commodity for the corresponding crop by an 
                amount not to exceed 5 percent in any year; or
                  (C) less than 12.5 percent, the Secretary may not 
                reduce the loan rate for the covered commodity for the 
                corresponding crop.
          (3) Other feed grains.--The loan rate for a marketing 
        assistance loan under section 121 for barley and oats shall 
        be--
                  (A) established at such level as the Secretary 
                determines is fair and reasonable in relation to the 
                rate that loans are made available for corn, taking 
                into consideration the feeding value of the commodity 
                in relation to corn, but
                  (B) not more than--
                          (i) $1.65 per bushel for barley; and
                          (ii) $1.21 per bushel for oats.
  (c) Upland Cotton.--
          (1) Loan rate.--Subject to paragraph (2), the loan rate for a 
        marketing assistance loan under section 121 for upland cotton 
        shall be established by the Secretary at such loan rate, per 
        pound, as will reflect for the base quality of upland cotton, 
        as determined by the Secretary, at average locations in the 
        United States a rate that is not less than the smaller of--
                  (A) 85 percent of the average price (weighted by 
                market and month) of the base quality of cotton as 
                quoted in the designated United States spot markets 
                during three years of the five-year period ending July 
                31 of the year preceding the year in which the crop is 
                planted, excluding the year in which the average price 
                was the highest and the year in which the average price 
                was the lowest in the period; or
                  (B) 90 percent of the average, for the 15-week period 
                beginning July 1 of the year preceding the year in 
                which the crop is planted, of the five lowest-priced 
                growths of the growths quoted for Middling 1\3/32\-inch 
                cotton C.I.F. Northern Europe (adjusted downward by the 
                average difference during the period April 15 through 
                October 15 of the year preceding the year in which the 
                crop is planted between the average Northern European 
                price quotation of such quality of cotton and the 
                market quotations in the designated United States spot 
                markets for the base quality of upland cotton), as 
                determined by the Secretary.
          (2) Limitations.--The loan rate for a marketing assistance 
        loan for upland cotton shall not be less than $0.50 per pound 
        or more than $0.5192 per pound.
  (d) Extra Long Staple Cotton.--The loan rate for a marketing 
assistance loan under section 121 for extra long staple cotton shall 
be--
          (1) not less than 85 percent of the simple average price 
        received by producers of extra long staple cotton, as 
        determined by the Secretary, during three years of the five-
        year period ending July 31 of the year preceding the year in 
        which the crop is planted, excluding the year in which the 
        average price was the highest and the year in which the average 
        price was the lowest in the period; but
          (2) not more than $0.7965 per pound.
  (e) Rice.--The loan rate for a marketing assistance loan under 
section 121 for rice shall be $6.50 per hundredweight.
  (f) Oilseeds.--
          (1) Soybeans.--The loan rate for a marketing assistance loan 
        under section 121 for soybeans shall be--
                  (A) not less than 85 percent of the simple average 
                price received by producers of soybeans, as determined 
                by the Secretary, during the marketing years for the 
                immediately preceding five crops of soybeans, excluding 
                the year in which the average price was the highest and 
                the year in which the average price was the lowest in 
                the period; but
                  (B) not more than $4.92 per bushel.
          (2) Other oilseeds.--The loan rate for a marketing assistance 
        loan under section 121 for other oilseeds shall be--
                  (A) not less than 85 percent of the simple average 
                price received by producers of the other oilseed, as 
                determined by the Secretary, during the marketing years 
                for the immediately preceding five crops of the other 
                oilseed, excluding the year in which the average price 
                was the highest and the year in which the average price 
                was the lowest in the period; but
                  (B) not more than $0.087 per pound.

SEC. 123. TERM OF LOANS.

  (a) Term of Loan.--In the case of each covered commodity (other than 
upland cotton or extra long staple cotton), a marketing assistance loan 
under section 121 shall have a term of nine months beginning on the 
first day of the first month after the month in which the loan is made.
  (b) Special Rule for Cotton.--A marketing assistance loan for upland 
cotton or extra long staple cotton shall have a term of 10 months 
beginning on the first day of the month in which the loan is made.
  (c) Extensions Prohibited.--The Secretary may not extend the term of 
a marketing assistance loan for any covered commodity.

SEC. 124. REPAYMENT OF LOANS.

  (a) Repayment Rates for Wheat, Feed Grains, and Oilseeds.--The 
Secretary shall permit a producer to repay a marketing assistance loan 
under section 121 for wheat, corn, grain sorghum, barley, oats, and 
oilseeds at a rate that is the lesser of--
          (1) the loan rate established for the commodity under section 
        122, plus interest (as determined by the Secretary); or
          (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; and
                  (D) allow the commodity produced in the United States 
                to be marketed freely and competitively, both 
                domestically and internationally.
  (b) Repayment Rates for Upland Cotton and Rice.--The Secretary shall 
permit producers to repay a marketing assistance loan under section 121 
for upland cotton and rice at a rate that is the lesser of--
          (1) the loan rate established for the commodity under section 
        122, plus interest (as determined by the Secretary); 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 122, plus 
interest (as determined by the Secretary).
  (d) Prevailing World Market Price.--For purposes of this section and 
section 127, the Secretary shall prescribe by regulation--
          (1) a formula to determine the prevailing world market price 
        for each covered commodity, adjusted to United States quality 
        and location; and
          (2) a mechanism by which the Secretary shall announce 
        periodically the prevailing world market price for each covered 
        commodity.
  (e) Adjustment of Prevailing World Market Price for Upland Cotton.--
          (1) In general.--During the period beginning on the date of 
        the enactment of this Act and ending July 31, 2012, the 
        prevailing world market price for upland cotton (adjusted to 
        United States quality and location) established under 
        subsection (d) shall be further adjusted if--
                  (A) the adjusted prevailing world market price is 
                less than 115 percent of the loan rate for upland 
                cotton established under section 122, as determined by 
                the Secretary; and
                  (B) 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.I.F. Northern Europe is greater than the Friday 
                through Thursday average price of the 5 lowest-priced 
                growths of upland cotton, as quoted for Middling (M) 
                1\3/32\-inch cotton, delivered C.I.F. Northern Europe 
                (referred to in this section as the ``Northern Europe 
                price'').
          (2) Further adjustment.--Except as provided in paragraph (3), 
        the adjusted prevailing world market price for upland cotton 
        shall be further adjusted on the basis of some or all of the 
        following data, as available:
                  (A) The United States share of world exports.
                  (B) The current level of cotton export sales and 
                cotton export shipments.
                  (C) Other data determined by the Secretary to be 
                relevant in establishing an accurate prevailing world 
                market price for upland cotton (adjusted to United 
                States quality and location).
          (3) Limitation on further adjustment.--The adjustment under 
        paragraph (2) may not exceed the difference between--
                  (A) the Friday through Thursday average price for the 
                lowest-priced United States growth as quoted for 
                Middling 1\3/32\-inch cotton delivered C.I.F. Northern 
                Europe; and
                  (B) the Northern Europe price.

SEC. 125. LOAN DEFICIENCY PAYMENTS.

  (a) Availability of Loan Deficiency Payments.--Except as provided in 
subsection (d), the Secretary may make loan deficiency payments 
available to producers who, although eligible to obtain a marketing 
assistance loan under section 121 with respect to a covered commodity, 
agree to forgo obtaining the loan for the commodity in return for 
payments under this section.
  (b) Computation.--A loan deficiency payment under this section shall 
be computed by multiplying--
          (1) the loan payment rate determined under subsection (c) for 
        the covered commodity; by
          (2) the quantity of the covered commodity produced by the 
        eligible producers, excluding any quantity for which the 
        producers obtain a loan under section 121.
  (c) Loan Payment Rate.--For purposes of this section, the loan 
payment rate shall be the amount by which--
          (1) the loan rate established under section 122 for the 
        covered commodity; exceeds
          (2) the rate at which a loan for the commodity may be repaid 
        under section 124.
  (d) Exception for Extra Long Staple Cotton.--This section shall not 
apply with respect to extra long staple cotton.
  (e) Time for Payment.--The Secretary shall make a payment under this 
section to a producer with respect to a quantity of a covered commodity 
as of the earlier of the following:
          (1) The date on which the producer marketed or otherwise lost 
        beneficial interest in the commodity, as determined by the 
        Secretary.
          (2) The date the producer requests the payment.

SEC. 126. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED 
                    ACREAGE.

  (a) Eligible Producers.--Effective for the 2002 through 2011 crop 
years, in the case of a producer that would be eligible for a loan 
deficiency payment under section 125 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.
  (b) Payment Amount.--The amount of a payment made to a producer on a 
farm under this section shall be equal to the amount determined by 
multiplying--
          (1) the loan deficiency payment rate determined under section 
        125(c) in effect, as of the date of the agreement, for the 
        county in which the farm is located; by
          (2) the payment quantity determined by multiplying--
                  (A) 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
                  (B) the payment yield for that covered commodity on 
                the farm.
  (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 125.
          (2) Availability.--The Secretary shall establish an 
        availability period for the payment authorized by this section 
        that is consistent with the availability period for wheat, 
        barley, and oats established by the Secretary for marketing 
        assistance loans authorized by this subtitle.
  (d) Prohibition on Crop Insurance or Noninsured Crop Assistance.--A 
2002 through 2011 crop of wheat, barley, or oats 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 insurance 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. 127. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.

  (a) Cotton User Marketing Certificates.--
          (1) Issuance.--During the period beginning on the date of the 
        enactment of this Act and ending July 31, 2012, the Secretary 
        shall issue marketing certificates or cash payments, at the 
        option of the recipient, to domestic users and exporters for 
        documented purchases by domestic users and sales for export by 
        exporters made in the week following a consecutive four-week 
        period in which--
                  (A) 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.I.F. Northern Europe exceeds the Northern 
                Europe price by more than 1.25 cents per pound; and
                  (B) the prevailing world market price for upland 
                cotton (adjusted to United States quality and location) 
                does not exceed 134 percent of the loan rate for upland 
                cotton established under section 122.
          (2) Value of certificates or payments.--The value of the 
        marketing certificates or cash payments shall be based on the 
        amount of the difference (reduced by 1.25 cents per pound) in 
        the prices during the fourth week of the consecutive four-week 
        period multiplied by the quantity of upland cotton included in 
        the documented sales.
          (3) Administration of marketing certificates.--
                  (A) Redemption, marketing, or exchange.--The 
                Secretary shall establish procedures for redeeming 
                marketing certificates for cash or marketing or 
                exchange of the certificates for agricultural 
                commodities owned by the Commodity Credit Corporation 
                or pledged to the Commodity Credit Corporation as 
                collateral for a loan in such manner, and at such price 
                levels, as the Secretary determines will best 
                effectuate the purposes of cotton user marketing 
                certificates, including enhancing the competitiveness 
                and marketability of United States cotton. Any price 
                restrictions that would otherwise apply to the 
                disposition of agricultural commodities by the 
                Commodity Credit Corporation shall not apply to the 
                redemption of certificates under this subsection.
                  (B) Designation of commodities and products.--To the 
                extent practicable, the Secretary shall permit owners 
                of certificates to designate the commodities and 
                products, including storage sites, the owners would 
                prefer to receive in exchange for certificates
                  (C) Transfers.--Marketing certificates issued to 
                domestic users and exporters of upland cotton may be 
                transferred to other persons in accordance with 
                regulations issued by the Secretary.
  (b) Special Import Quota.--
          (1) 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 and ending July 31, 
                2012, as provided in this subsection.
                  (B) Program requirements.--Except as provided in 
                subparagraph (C), whenever the Secretary determines and 
                announces that for any consecutive four-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.I.F. 
                Northern Europe, adjusted for the value of any 
                certificate issued under subsection (a), exceeds the 
                Northern Europe price by more than 1.25 cents per 
                pound, there shall immediately be in effect a special 
                import quota.
                  (C) Tight domestic supply.--During any month for 
                which the Secretary estimates the season-ending United 
                States upland cotton stocks-to-use ratio, as determined 
                under subparagraph (D), to be below 16 percent, the 
                Secretary, in making the determination under 
                subparagraph (B), shall not adjust 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.I.F. Northern Europe, for 
                the value of any certificates issued under subsection 
                (a).
                  (D) Season-ending united states stocks-to-use 
                ratio.--For the purposes of making estimates under 
                subparagraph (C), the Secretary shall, on a monthly 
                basis, estimate and report the season-ending United 
                States upland cotton stocks-to-use ratio, excluding 
                projected raw cotton imports but including the quantity 
                of raw cotton that has been imported into the United 
                States during the marketing year.
          (2) Quantity.--The quota shall be equal to one week's 
        consumption of upland cotton by domestic mills at the 
        seasonally adjusted average rate of the most recent three 
        months for which data are available.
          (3) 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 the date.
          (4) Overlap.--A special quota period may be established that 
        overlaps any existing quota period if required by paragraph 
        (1), except that a special quota period may not be established 
        under this subsection if a quota period has been established 
        under subsection (c).
          (5) 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.
          (6) Definition.--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.
          (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 five week's consumption of upland cotton by 
        domestic mills at the seasonally adjusted average rate of the 
        three months immediately preceding the first special import 
        quota established in any marketing year.
  (c) Limited Global Import Quota for Upland Cotton.--
          (1) In general.--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 such 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 three 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) Definitions.--In this subsection:
                          (i) 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.
                          (ii) Demand.--The term ``demand'' means--
                                  (I) the average seasonally adjusted 
                                annual rate of domestic mill 
                                consumption during the most recent 
                                three months for which data are 
                                available; and
                                  (II) the larger of--
                                          (aa) average exports of 
                                        upland cotton during the 
                                        preceding six marketing years; 
                                        or
                                          (bb) cumulative exports of 
                                        upland cotton plus outstanding 
                                        export sales for the marketing 
                                        year in which the quota is 
                                        established.
                          (iii) 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.
                  (E) 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.
          (2) No overlap.--Notwithstanding paragraph (1), a quota 
        period may not be established that overlaps an existing quota 
        period or a special quota period established under subsection 
        (b).

SEC. 128. 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 of this 
Act and ending on July 31, 2012, the Secretary shall carry out a 
program to maintain and expand the domestic use of extra long staple 
cotton produced in the United States, to increase exports of extra long 
staple cotton produced in the United States, and 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 four-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 who 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 four-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 four-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. 129. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS 
                    AND SEED COTTON AND OTHER FIBERS.

  (a) High Moisture Feed Grains.--
          (1) Recourse loans available.--For each of the 2002 through 
        2011 crops of corn and grain sorghum, the Secretary shall make 
        available recourse loans, as determined by the Secretary, to 
        producers on a farm who--
                  (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.
          (2) 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 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.
          (3) High moisture state defined.--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 121.
  (b) Recourse Loans Available for Seed Cotton.--For each of the 2002 
through 2011 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 (as determined by the Secretary).
  (d) Termination of Superseded Loan Authority.--Notwithstanding 
section 137 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7237), recourse loans shall not be made for the 2002 
crop of corn, grain sorghum, and seed cotton under such section.

SEC. 130. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR 
                    WOOL AND MOHAIR.

  (a) Nonrecourse Loans Available.--During the 2002 through 2011 
marketing years for wool and mohair, the Secretary shall make available 
to producers on a farm nonrecourse marketing assistance loans for wool 
and mohair produced on the farm during that marketing year.
  (b) Loan Rate.--The loan rate for a loan under subsection (a) shall 
be not more than--
          (1) $1.00 per pound for graded wool;
          (2) $0.40 per pound for nongraded wool; and
          (3) $4.20 per pound for mohair.
  (c) Term of Loan.--A loan under subsection (a) shall have a term of 
one year beginning on the first day of the first month after the month 
in which the loan is made.
  (d) Repayment Rates.--The Secretary shall permit a producer to repay 
a marketing assistance loan under subsection (a) for wool or mohair at 
a rate that is the lesser of--
          (1) the loan rate established for the commodity under 
        subsection (b), plus interest (as determined by the Secretary); 
        or
          (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; and
                  (D) allow the commodity produced in the United States 
                to be marketed freely and competitively, both 
                domestically and internationally.
  (e) Loan Deficiency Payments.--
          (1) Availability.--The Secretary may make loan deficiency 
        payments available to producers that, although eligible to 
        obtain a marketing assistance loan under this section, agree to 
        forgo obtaining the loan in return for payments under this 
        section.
          (2) Computation.--A loan deficiency payment under this 
        subsection shall be computed by multiplying--
                  (A) the loan payment rate in effect under paragraph 
                (3) for the commodity; by
                  (B) the quantity of the commodity produced by the 
                eligible producers, excluding any quantity for which 
                the producers obtain a loan under this subsection.
          (3) Loan payment rate.--For purposes of this subsection, the 
        loan payment rate for wool or mohair shall be the amount by 
        which--
                  (A) the loan rate in effect for the commodity under 
                subsection (b); exceeds
                  (B) the rate at which a loan for the commodity may be 
                repaid under subsection (d).
          (4) Time for payment.--The Secretary shall make a payment 
        under this subsection to a producer with respect to a quantity 
        of a wool or mohair as of the earlier of the following:
                  (A) The date on which the producer marketed or 
                otherwise lost beneficial interest in the wool or 
                mohair, as determined by the Secretary.
                  (B) The date the producer requests the payment.
  (f) Limitations.--The marketing assistance loan gains and loan 
deficiency payments that a person may receive for wool and mohair under 
this section shall be subject to a separate payment limitation, but in 
the same dollar amount, as the payment limitation that applies to 
marketing assistance loans and loan deficiency payments received by 
producers of other agricultural commodities in the same marketing year.

SEC. 131. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR 
                    HONEY.

  (a) Nonrecourse Loans Available.--During the 2002 through 2011 crop 
years for honey, the Secretary shall make available to producers on a 
farm nonrecourse marketing assistance loans for honey produced on the 
farm during that crop year.
  (b) Loan Rate.--The loan rate for a marketing assistance loan for 
honey under subsection (a) shall be equal to $0.60 cents per pound.
  (c) Term of Loan.--A marketing assistance loan under subsection (a) 
shall have a term of one year beginning on the first day of the first 
month after the month in which the loan is made.
  (d) Repayment Rates.--The Secretary shall permit a producer to repay 
a marketing assistance loan for honey under subsection (a) at a rate 
that is the lesser of--
          (1) the loan rate for honey, plus interest (as determined by 
        the Secretary); or
          (2) the prevailing domestic market price for honey, as 
        determined by the Secretary.
  (e) Loan Deficiency Payments.--
          (1) Availability.--The Secretary may make loan deficiency 
        payments available to any producer of honey that, although 
        eligible to obtain a marketing assistance loan under subsection 
        (a), agrees to forgo obtaining the loan in return for a payment 
        under this subsection.
          (2) Computation.--A loan deficiency payment under this 
        subsection shall be determined by multiplying--
                  (A) the loan payment rate determined under paragraph 
                (3); by
                  (B) the quantity of honey that the producer is 
                eligible to place under loan, but for which the 
                producer forgoes obtaining the loan in return for a 
                payment under this subsection.
          (3) Loan payment rate.--For the purposes of this subsection, 
        the loan payment rate shall be the amount by which--
                  (A) the loan rate established under subsection (b); 
                exceeds
                  (B) the rate at which a loan may be repaid under 
                subsection (d).
          (4) Time for payment.--The Secretary shall make a payment 
        under this subsection to a producer with respect to a quantity 
        of a honey as of the earlier of the following:
                  (A) The date on which the producer marketed or 
                otherwise lost beneficial interest in the honey, as 
                determined by the Secretary.
                  (B) The date the producer requests the payment.
  (f) Limitations.--The marketing assistance loan gains and loan 
deficiency payments that a person may receive for a crop of honey under 
this section shall be subject to a separate payment limitation, but in 
the same dollar amount, as the payment limitation that applies to 
marketing assistance loans and loan deficiency payments received by 
producers of other agricultural commodities in the same crop year.
  (g) Prevention of Forfeitures.--The Secretary shall carry out this 
section in such a manner as to minimize forfeitures of honey marketing 
assistance loans.

                     Subtitle C--Other Commodities

                            CHAPTER 1--DAIRY

SEC. 141. MILK PRICE SUPPORT PROGRAM.

  (a) Support Activities.--During the period beginning on January 1, 
2002, and ending on December 31, 2011, the Secretary of Agriculture 
shall support the price of milk produced in the 48 contiguous States 
through the purchase of cheese, butter, and nonfat dry milk produced 
from the milk.
  (b) Rate.--During the period specified in subsection (a), the price 
of milk shall be supported at a rate equal to $9.90 per hundredweight 
for milk containing 3.67 percent butterfat.
  (c) Purchase Prices.--The support purchase prices under this section 
for each of the products of milk (butter, cheese, and nonfat dry milk) 
announced by the Secretary shall be the same for all of that product 
sold by persons offering to sell the product to the Secretary. The 
purchase prices shall be sufficient to enable plants of average 
efficiency to pay producers, on average, a price that is not less than 
the rate of price support for milk in effect under subsection (b).
  (d) Special Rule for Butter and Nonfat Dry Milk Purchase Prices.--
          (1) Allocation of purchase prices.--The Secretary may 
        allocate the rate of price support between the purchase prices 
        for nonfat dry milk and butter in a manner that will result in 
        the lowest level of expenditures by the Commodity Credit 
        Corporation or achieve such other objectives as the Secretary 
        considers appropriate. Not later than 10 days after making or 
        changing an allocation, the Secretary shall notify the 
        Committee on Agriculture of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate of the allocation. Section 553 of title 5, United States 
        Code, shall not apply with respect to the implementation of 
        this section.
          (2) Timing of purchase price adjustments.--The Secretary may 
        make any such adjustments in the purchase prices for nonfat dry 
        milk and butter the Secretary considers to be necessary not 
        more than twice in each calendar year.
  (e) Commodity Credit Corporation.--The Secretary shall carry out the 
program authorized by this section through the Commodity Credit 
Corporation.

SEC. 142. REPEAL OF RECOURSE LOAN PROGRAM FOR PROCESSORS.

  Section 142 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7252) is repealed.

SEC. 143. DAIRY EXPORT INCENTIVE PROGRAM.

  Section 153(a) of the Food Security Act of 1985 (15 U.S.C. 713a-
14(a)) is amended by striking ``2002'' and inserting ``2011''.

SEC. 144. FLUID MILK PROMOTION.

  (a) Definition of Fluid Milk Product.--Section 1999C of the Fluid 
Milk Promotion Act of 1990 (7 U.S.C. 6402) is amended by striking 
paragraph (3) and inserting the following new paragraph:
          ``(3) Fluid milk product.--The term `fluid milk product' has 
        the meaning given such term--
                  ``(A) in section 1000.15 of title 7, Code of Federal 
                Regulations, subject to such amendments as may be made 
                from time to time; or
                  ``(B) in any successor regulation providing a 
                definition of such term that is promulgated pursuant to 
                the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), 
                reenacted with amendments by the Agricultural Marketing 
                Agreement Act of 1937.''.
  (b) Definition of Fluid Milk Processor.--Section 1999C(4) of the 
Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402(4)) is amended by 
striking ``500,000'' and inserting ``3,000,000''.
  (c) Elimination of Order Termination Date.--Section 1999O of the 
Fluid Milk Promotion Act of 1990 (7 U.S.C. 6414) is amended--
          (1) by striking subsection (a); and
          (2) by redesignating subsections (b) and (c) as subsections 
        (a) and (b), respectively.

SEC. 145. DAIRY PRODUCT MANDATORY REPORTING.

  Section 273(b)(1)(B) of the Agricultural Marketing Act of 1946 (7 
U.S.C. 1637b(b)(1)(B)) is amended--
          (1) by inserting ``and substantially identical products 
        designated by the Secretary'' after ``dairy products'' the 
        first place it appears; and
          (2) by inserting ``and such substantially identical 
        products'' after ``dairy products'' the second place it 
        appears.

SEC. 146. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.

  (a) Definitions.--Section 111 of the Dairy Production Stabilization 
Act of 1983 (7 U.S.C. 4502) is amended--
          (1) in subsection (k), by striking ``and'' at the end;
          (2) in subsection (l), by striking the period at the end and 
        inserting a semicolon; and
          (3) by adding at the end the following:
          ``(m) the term `imported dairy product' means any dairy 
        product that is imported into the United States, including 
        dairy products imported into the United States in the form of--
                  ``(1) milk, cream, and fresh and dried dairy 
                products;
                  ``(2) butter and butterfat mixtures;
                  ``(3) cheese; and
                  ``(4) casein and mixtures;
          ``(n) the term `importer' means a person that imports an 
        imported dairy product into the United States; and
          ``(o) the term `Customs' means the United States Customs 
        Service.''.
  (b) Representation of Importers on Board.--Section 113(b) of the 
Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(b)) is 
amended--
          (1) by inserting ``National Dairy Promotion and Research 
        Board.--'' after ``(b)'';
          (2) by designating the first through ninth sentences as 
        paragraphs (1) through (5) and paragraphs (7) through (10), 
        respectively, and indenting the paragraphs appropriately;
          (3) in paragraph (2) (as so designated), by striking 
        ``Members'' and inserting ``Except as provided in paragraph 
        (6), the members''; and
          (4) by inserting after paragraph (5) (as so designated) the 
        following:
          ``(6) Importers.--
                  ``(A) Representation.--The Secretary shall appoint 
                not more than 2 members who represent importers of 
                dairy products and are subject to assessments under the 
                order, to reflect the proportion of domestic production 
                and imports supplying the United States market, which 
                shall be based on the Secretary's determination of the 
                average volume of domestic production of dairy products 
                proportionate to the average volume of imports of dairy 
                products in the United States over the previous three 
                years.
                  ``(B) Additional members; nominations.--The members 
                appointed under this paragraph--
                          ``(i) shall be in addition to the total 
                        number of members appointed under paragraph 
                        (2); and
                          ``(ii) shall be appointed from nominations 
                        submitted by importers under such procedures as 
                        the Secretary determines to be appropriate.''.
  (c) Importer Assessment.--Section 113(g) of the Dairy Production 
Stabilization Act of 1983 (7 U.S.C. 4504(g)) is amended--
          (1) by inserting ``Assessments.--'' after ``(g)'';
          (2) by designating the first through fifth sentences as 
        paragraphs (1) through (5), respectively, and indenting 
        appropriately; and
          (3) by adding at the end the following:
          ``(6) Importers.--
                  ``(A) In general.--The order shall provide that each 
                importer of imported dairy products shall pay an 
                assessment to the Board in the manner prescribed by the 
                order.
                  ``(B) Time for payment.--The assessment on imported 
                dairy products shall be paid by the importer to Customs 
                at the time of the entry of the products into the 
                United States and shall be remitted by Customs to the 
                Board. For purposes of this subparagraph, entry of the 
                products into the United States shall be deemed to have 
                occurred when the products are released from custody of 
                Customs and introduced into the stream of commerce 
                within the United States. Importers include persons who 
                hold title to foreign-produced dairy products 
                immediately upon release by Customs, as well as persons 
                who act on behalf of others, as agents, brokers, or 
                consignees, to secure the release of dairy products 
                from Customs and the introduction of the released dairy 
                products into the stream of commerce.
                  ``(C) Rate.--The rate of assessment on imported dairy 
                products shall be determined in the same manner as the 
                rate of assessment per hundredweight or the equivalent 
                of milk.
                  ``(D) Value of products.--For the purpose of 
                determining the assessment on imported dairy products 
                under subparagraph (C), the value to be placed on 
                imported dairy products shall be established by the 
                Secretary in a fair and equitable manner.
                  ``(E) Use of Assessments on Imported Dairy.--
                Assessments collected on imported dairy products shall 
                not be used for foreign market promotion.''.
  (d) Records.--Section 113(k) of the Dairy Production Stabilization 
Act of 1983 (7 U.S.C. 4504(k)) is amended in the first sentence by 
striking ``person receiving'' and inserting ``importer of imported 
dairy products, each person receiving''.
  (e) Importer Eligibility To Vote in Referendum.--Section 116(b) of 
the Dairy Promotion Stabilization Act of 1983 (7 U.S.C. 4507(b)) is 
amended--
          (1) in the first sentence--
                  (A) by inserting after ``of producers'' the 
                following: ``and importers''; and
                  (B) by inserting after ``the producers'' the 
                following: ``and importers''; and
          (2) in the second sentence, by inserting after ``commercial 
        use'' the following: ``and importers voting in the referendum 
        (who have been engaged in the importation of dairy products 
        during the same representative period, as determined by the 
        Secretary).''.
  (f) Conforming Amendments To Reflect Addition of Importers.--Section 
110(b) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 
4501(b)) is amended--
          (1) in the first sentence--
                  (A) by inserting after ``commercial use'' the 
                following: ``and on imported dairy products''; and
                  (B) by striking ``products produced in the United 
                States.'' and inserting ``products.''; and
          (2) in the second sentence, by inserting after ``produce 
        milk'' the following: ``or the right of any person to import 
        dairy products''.

                            CHAPTER 2--SUGAR

SEC. 151. SUGAR PROGRAM.

  (a) Continuation of Program.--Subsection (i) of section 156 of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7251) 
is amended--
          (1) by striking ``(other than subsection (f))''; and
          (2) by striking ``2002 crops'' and inserting ``2011 crops''.
  (b) Termination of Marketing Assessment.--Effective as of October 1, 
2001, subsection (f) of such section is repealed.
  (c) Loan Rate Adjustments.--Subsection (c) of such section is 
amended--
          (1) by striking ``Reduction in Loan Rates'' and inserting 
        ``Loan Rate Adjustments''; and
          (2) in paragraph (1)--
                  (A) by striking ``Reduction required'' and inserting 
                ``Possible reduction''; and
                  (B) by striking ``shall'' and inserting ``may''.
  (d) Notification.--Subsection (e) of such section is amended by 
adding at the end the following new paragraph:
          ``(3) Prevention of onerous notification requirements.--The 
        Secretary may not impose or enforce any prenotification or 
        similar administrative requirement that has the effect of 
        preventing a processor from choosing to forfeit the loan 
        collateral upon the maturity of the loan.''.
  (e) In Process Sugar.--Such section is further amended by inserting 
after subsection (e) the following new subsection (f):
  ``(f) Loans for In-Process Sugar.--
          ``(1) Availability; rate.--The Secretary shall make 
        nonrecourse loans available to processors of domestically grown 
        sugarcane and sugar beets for in-process sugars and syrups 
        derived from such crops. The loan rate shall be equal to 80 
        percent of the loan rate applicable to raw cane sugar or 
        refined beet sugar, depending on the source material for the 
        in-process sugars and syrups.
          ``(2) Further processing upon forfeiture.--As a condition on 
        the forfeiture of in-process sugars and syrups serving as 
        collateral for a loan under paragraph (1), 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). 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 Corporation, which shall make a payment to the 
        processor in an amount equal to the difference between the loan 
        rate for raw cane sugar or refined beet sugar, whichever 
        applies, and the loan rate the processor received under 
        paragraph (1).
          ``(3) Loan conversion.--If the processor does not forfeit the 
        collateral as described in paragraph (2), 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 then obtain a loan under 
        subsection (a) or (b) on the raw cane sugar or refined beet 
        sugar, as appropriate.
          ``(4) Definition.--In this subsection the term `in-process 
        sugars and syrups' does not include raw sugar, liquid sugar, 
        invert sugar, invert syrup, or other finished products that are 
        otherwise eligible for loans under subsection (a) or (b).''.
  (f) Administration of Program.--Such section is further amended by 
adding at the end the following new subsection:
  ``(j) Avoiding Forfeitures; Corporation Inventory Disposition.--
          ``(1) No cost.--To the maximum extent practicable, the 
        Secretary shall operate the sugar 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.--In support of the objective 
        specified in paragraph (1), the Commodity Credit Corporation 
        may accept bids for commodities in the inventory of the 
        Corporation from (or otherwise make available such commodities, 
        on appropriate terms and conditions, to) processors of 
        sugarcane and processors of sugar beets (when the processors 
        are acting in conjunction with the producers of the sugarcane 
        or sugar beets processed by such processors) in return for the 
        reduction of production of raw cane sugar or refined beet 
        sugar, as appropriate. The authority provided under this 
        paragraph is in addition to any authority of the Corporation 
        under any other law.''.
  (g) Information Reporting.--Subsection (h) of such section is 
amended--
          (1) by redesignating paragraphs (2) and (3) as paragraphs (4) 
        and (5), respectively;
          (2) by inserting after paragraph (1) the following new 
        paragraphs:
          ``(2) Duty of producers to report.--
                  ``(A) Proportionate share states.--The Secretary 
                shall require a producer of sugarcane located in a 
                State (other than Puerto Rico) in which there are in 
                excess of 250 sugarcane producers to report, in the 
                manner prescribed by the Secretary, the producer's 
                sugarcane yields and acres planted to sugarcane.
                  ``(B) Other states.--The Secretary may require 
                producers of sugarcane or sugar beets not covered by 
                paragraph (1) to report, in the manner prescribed by 
                the Secretary, each producer's sugarcane or sugar beet 
                yields and acres planted to sugarcane or sugar beets, 
                respectively.
          ``(3) Duty of importers to report.--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, except such sugars, syrups, or molasses 
        that are within the quantities of tariff-rate quotas that are 
        at the lower rate of duties, to report, in the manner 
        prescribed by the Secretary, the quantities of such products 
        imported and the sugar content or equivalent of such 
        products.''; and
          (3) in paragraph (5), as so redesignated, by striking 
        ``paragraph (1)'' and inserting ``this subsection''.
  (h) Interest Rate.--Section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7283) is amended by adding 
at the end the following new sentence: ``For purposes of this section, 
raw cane sugar, refined beet sugar, and in process sugar eligible for a 
loan under section 156 shall not be considered an agricultural 
commodity.''.

SEC. 152. REAUTHORIZE PROVISIONS OF AGRICULTURAL ADJUSTMENT ACT OF 1938 
                    REGARDING SUGAR.

  (a) Information Reporting.--Section 359a of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359aa) is repealed.
  (b) Estimates.--Section 359b of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1359bb) is amended:
          (1) in the section heading--
                  (A) by inserting ``FLEXIBLE'' before ``MARKETING''; 
                and
                  (B) by striking ``AND CRYSTALLINE FRUCTOSE'';
          (2) in subsection (a)--
                  (A) in paragraph (1)--
                          (i) by striking ``Before'' and inserting 
                        ``Not later than August 1 before'';
                          (ii) by striking ``1992 through 1998'' and 
                        inserting ``2002 through 2011'';
                          (iii) in subparagraph (A), by striking 
                        ``(other than sugar'' and all that follows 
                        through ``stocks'';
                          (iv) by redesignating subparagraphs (B) and 
                        (C) as subparagraphs (C) and (E), respectively;
                          (v) by inserting after subparagraph (A) the 
                        following:
                  ``(B) the quantity of sugar that would provide for 
                reasonable carryover stocks;'';
                          (vi) in subparagraph (C), as so 
                        redesignated--
                                  (I) by striking ``or'' through 
                                ``beets''; and
                                  (II) by striking the ``and'' 
                                following the semicolon;
                          (vii) by inserting after subparagraph (C), as 
                        so redesignated, the following:
                  ``(D) the quantity of sugar that will be available 
                from the domestic processing of sugarcane and sugar 
                beets; and''; and
                          (viii) in subparagraph (E), as so 
                        redesignated--
                                  (I) by striking ``quantity of sugar'' 
                                and inserting ``quantity of sugars, 
                                syrups, and molasses'';
                                  (II) by inserting ``human'' after 
                                ``imported for'';
                                  (III) by inserting after 
                                ``consumption'' the following: ``or to 
                                be used for the extraction of sugar for 
                                human consumption'';
                                  (IV) by striking ``year'' and 
                                inserting ``year, whether such articles 
                                are under a tariff-rate quota or are in 
                                excess or outside of a tariff rate 
                                quota''; and
                                  (V) by striking ``in (other than 
                                sugar'' and all that follows through 
                                ``carry-in stocks'';
                  (B) by redesignating paragraph (2) as paragraph (3);
                  (C) by inserting after paragraph (1) the following 
                new paragraph:
          ``(2) Exclusion.--The estimates in this section shall not 
        include sugar imported for the production of polyhydric alcohol 
        or to be refined and re-exported in refined form or in sugar 
        containing products.'';
                  (D) in paragraph (3), as so redesignated--
                          (i) by striking ``Quarterly reestimates'' and 
                        inserting ``Reestimates''; and
                          (ii) by inserting ``as necessary, but'' after 
                        ``a fiscal year'';
          (3) in subsection (b)--
                  (A) by striking paragraph (1) and inserting the 
                following new paragraph:
          ``(1) In general.--By the beginning of each fiscal year, the 
        Secretary shall establish for that fiscal year appropriate 
        allotments under section 359c for the marketing by processors 
        of sugar processed from sugar beets and from domestically-
        produced sugarcane at a level that the Secretary estimates will 
        result in no forfeitures of sugar to the Commodity Credit 
        Corporation under the loan program for sugar.''; and
                  (B) in paragraph (2), by striking ``or crystalline 
                fructose'';
          (4) by striking subsection (c);
          (5) by redesignating subsection (d) as subsection (c); and
          (6) in subsection (c), as so redesignated--
                  (A) by striking paragraph (2);
                  (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively; and
                  (C) in paragraph (2), as so redesignated--
                          (i) by striking ``or manufacturer'' through 
                        ``(2)''; and
                          (ii) by striking ``or crystalline fructose''.
  (c) Establishment.--Section 359c of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1359cc) is amended--
          (1) in the section heading by inserting ``FLEXIBLE'' after 
        ``OF'';
          (2) in subsection (a), by inserting ``flexible'' after 
        ``establish'';
          (3) in subsection (b)--
                  (A) in paragraph (1)(A), by striking ``1,250,000'' 
                and inserting ``1,532,000''; and
                  (B) in paragraph (2), by striking ``to the maximum 
                extent practicable'';
          (4) by striking subsection (c) and inserting the following 
        new subsection:
  ``(c) Marketing Allotment for Sugar Derived From Sugar Beets and 
Marketing Allotment for Sugar Derived From Sugarcane.--The overall 
allotment quantity for the fiscal year shall be allotted among--
          ``(1) sugar derived from sugarbeets by establishing a 
        marketing allotment for a fiscal year at a quantity equal to 
        the product of multiplying the overall allotment quantity for 
        the fiscal year by the percentage of 54.35; and
          ``(2) sugar derived from sugarcane by establishing a 
        marketing allotment for a fiscal year at a quantity equal to 
        the product of multiplying the overall allotment quantity for 
        the fiscal year by the percentage of 45.65.'';
          (5) by amending subsection (d) to read as follows:
  ``(d) Filling Cane Sugar and Beet Sugar Allotments.--Each marketing 
allotment for cane sugar established under this section may only be 
filled with sugar processed from domestically grown sugarcane, and each 
marketing allotment for beet sugar established under this section may 
only be filled with sugar domestically processed from sugar beets.'';
          (6) by striking subsection (e);
          (7) by redesignating subsection (f) as subsection (e);
          (8) in subsection (e), as so redesignated--
                  (A) by inserting ``(1) In general.--'' before ``The 
                allotment for sugar'' and indenting such paragraph 
                appropriately;
                  (B) in such paragraph (1)--
                          (i) by striking ``the 5'' and inserting 
                        ``the'';
                          (ii) by inserting after ``sugarcane is 
                        produced,'' the following: ``after a hearing, 
                        if requested by the affected sugar cane 
                        processors and growers, and on such notice as 
                        the Secretary by regulation may prescribe,'';
                          (iii) by striking ``on the basis of past 
                        marketings'' and all that follows through 
                        ``allotments'', and inserting ``as provided in 
                        this subsection and section 
                        359(d)(a)(2)(A)(iv)''; and
                  (C) by inserting after paragraph (1) the following 
                new paragraphs:
          ``(2) Offshore allotment.--
                  ``(A) Collectively.--Prior to the allotment of sugar 
                derived from sugarcane to any other State, 325,000 
                short tons, raw value shall be allotted to the offshore 
                States.
                  ``(B) Individually.--The collective offshore State 
                allotment provided for under subparagraph (A) shall be 
                further allotted among the offshore States in which 
                sugarcane is produced, after a hearing if requested by 
                the affected sugar cane processors and growers, and on 
                such notice as the Secretary by regulation may 
                prescribe, in a fair and equitable manner on the basis 
                of--
                          ``(i) past marketings of sugar, based on the 
                        average of the 2 highest years of production of 
                        raw cane sugar from the 1996 through 2000 
                        crops;
                          ``(ii) the ability of processors to market 
                        the sugar covered under the allotments for the 
                        crop year; and
                          ``(iii) past processings of sugar from 
                        sugarcane based on the 3 year average of the 
                        crop years 1998 through 2000.
          ``(3) Mainland allotment.--The allotment for sugar derived 
        from sugarcane, less the amount provided for under paragraph 
        (2), shall be allotted among the mainland States in the United 
        States in which sugarcane is produced, after a hearing if 
        requested by the affected sugar cane processors and growers, 
        and on such notice as the Secretary by regulation may 
        prescribe, in a fair and equitable manner on the basis of--
                  ``(A) past marketings of sugar, based on the average 
                of the 2 highest years of production of raw cane sugar 
                from the 1996 through 2000 crops;
                  ``(B) the ability of processors to market the sugar 
                covered under the allotments for the crop year; and
                  ``(C) past processings of sugar from sugarcane, based 
                on the 3 crop years with the greatest processings (in 
                the mainland States collectively) during the 1991 
                through 2000 crop years.'';
          (9) by inserting after subsection (e), as so redesignated, 
        the following new subsection (f):
  ``(f) Filling Cane Sugar Allotments.--Except as otherwise provided in 
section 359e, a State cane sugar allotment established under subsection 
(e) for a fiscal year may be filled only with sugar processed from 
sugarcane grown in the State covered by the allotment.'';
          (10) in subsection (g)--
                  (A) in paragraph (1), by striking ``359b(a)(2)--'' 
                through the end of subparagraph (C) and inserting 
                ``359b(a)(3), adjust upward or downward marketing 
                allotments in a fair and equitable manner'';
                  (B) in paragraph (2) by striking ``359f(b)'' and 
                inserting ``359f(c)''; and
                  (C) in paragraph (3)--
                          (i) by striking ``Reductions'' and inserting 
                        ``Carry-over of reductions'';
                          (ii) by inserting after ``this subsection, 
                        if'' the following: ``at the time of the 
                        reduction'';
                          (iii) by striking ``price support'' and 
                        inserting ``nonrecourse'';
                          (iv) by striking ``206'' through ``the 
                        allotment'' and inserting ``156 of the 
                        Agricultural Market Transition Act (7 U.S.C. 
                        7272),''; and
                          (v) by striking ``, if any,''; and
          (11) by amending subsection (h) to read as follows:
  ``(h) Suspension of Allotments.--Whenever the Secretary estimates, or 
reestimates, under section 359b(a), or has reason to believe that 
imports of sugars, syrups or molasses for human consumption or to be 
used for the extraction of sugar for human consumption, whether under a 
tariff-rate quota or in excess or outside of a tariff-rate quota, will 
exceed 1.532 million short tons, raw value equivalent, and that such 
imports would lead to a reduction of the overall allotment quantity, 
the Secretary shall suspend the marketing allotments until such time as 
such imports have been restricted, eliminated, or otherwise reduced to 
or below the level of 1.532 million tons.''.
  (d) Allocation.--Section 359d of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1359dd) is amended--
          (1) in subsection (a)(2)(A)--
                  (A) by inserting ``(i) In general.--'' before ``The 
                Secretary shall'' and indenting such clause 
                appropriately;
                  (B) in clause (i), as so designated--
                          (i) by striking ``interested parties'' and 
                        inserting ``the affected sugar cane processors 
                        and growers'';
                          (ii) by striking ``by taking'' through 
                        ``allotment allocated.'' and inserting ``with 
                        this subparagraph.''; and
                          (iii) by inserting at the end the following 
                        new sentence: ``Each such allocation shall be 
                        subject to adjustment under section 359c(g).'';
                  (C) by inserting after clause (i) the following new 
                clause:
                          ``(ii) Multiple processor states.--Except as 
                        provided in clause (iii), the Secretary shall 
                        allocate the allotment for cane sugar among 
                        multiple cane sugar processors in a single 
                        State based upon--
                                  ``(I) past marketings of sugar, based 
                                on the average of the 2 highest years 
                                of production of raw cane sugar from 
                                among the 1996 through 2000 crops;
                                  ``(II) the ability of processors to 
                                market sugar covered by that portion of 
                                the allotment allocated for the crop 
                                year;
                                  ``(III) past processings of sugar 
                                from sugarcane, based on the average of 
                                the 3 highest years from among crop 
                                years 1996 through 2000; and
                                  ``(IV) however, only with respect to 
                                allotments under subclauses (I), (II), 
                                and (III) attributable to the former 
                                operations of the Talisman processing 
                                facility, shall be allocated among 
                                processors in the State coincident with 
                                the provisions of the agreements of 
                                March 25 and March 26, 1999, between 
                                the affected processors and the 
                                Department of the Interior.
                          ``(iii) Proportionate share states.--In the 
                        case of States subject to section 359f(c), the 
                        Secretary shall allocate the allotment for cane 
                        sugar among multiple cane sugar processors in a 
                        single state based upon--
                                  ``(I) past marketings of sugar, based 
                                on the average of the two highest years 
                                of production of raw cane sugar from 
                                among the 1997 through 2001 crop years;
                                  ``(II) the ability of processors to 
                                market sugar covered by that portion of 
                                the allotments allocated for the crop 
                                year; and
                                  ``(III) past processings of sugar 
                                from sugarcane, based on the average of 
                                the two highest crop years from the 
                                five crop years 1997 through 2001.
                          ``(iv) New entrants.--Notwithstanding clauses 
                        (ii) and (iii), the Secretary, on application 
                        of any processor that begins processing 
                        sugarcane on or after the date of enactment of 
                        this clause, and after a hearing if requested 
                        by the affected sugarcane processors and 
                        growers, and on such notice as the Secretary by 
                        regulation may prescribe, may provide such 
                        processor with an allocation which provides a 
                        fair, efficient and equitable distribution of 
                        the allocations from the allotment for the 
                        State in which the processor is located and, in 
                        the case of proportionate share States, shall 
                        establish proportionate shares in an amount 
                        sufficient to produce the sugarcane required to 
                        satisfy such allocations. However, the 
                        allotment for a new processor under this clause 
                        shall not exceed 50,000 short tons, raw value.
                          ``(v) Transfer of Ownership.--Except as 
                        otherwise provided in section 359f(c)(8), in 
                        the event that a sugarcane processor is sold or 
                        otherwise transferred to another owner, or 
                        closed as part of an affiliated corporate group 
                        processing consolidation, the Secretary shall 
                        transfer the allotment allocation for the 
                        processor to the purchaser, new owner, or 
                        successor in interest, as applicable, of the 
                        processor.''; and
          (2) in subsection (a)(2)(B)--
                  (A) by striking ``interested parties'' and inserting 
                ``the affected sugar beet processors and growers''; and
                  (B) by striking ``processing capacity'' through 
                ``allotment allocated'' and inserting the following: 
                ``the marketings of sugar processed from sugar beets of 
                any or all of the 1996 through 2000 crops, and such 
                other factors as the Secretary may deem appropriate 
                after consultation with the affected sugar beet 
                processors and growers. However, in the case of any 
                processor which has started processing sugar beets 
                after January 1, 1996, the Secretary shall provide such 
                processor with an allocation which provides a fair, 
                efficient and equitable distribution of the 
                allocations.''.
  (e) Reassignment.--Section 359e(b) of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1359ee(b)) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (B) by striking the ``and'' after 
                the semicolon;
                  (B) by redesignating subparagraph (C) as subparagraph 
                (D);
                  (C) by inserting after subparagraph (B) the following 
                new subparagraph:
                  ``(C) if after the reassignments, the deficit cannot 
                be completely eliminated, the Secretary shall reassign 
                the estimated quantity of the deficit to the sale of 
                any inventories of sugar held by the Commodity Credit 
                Corporation; and''; and
                  (D) in subparagraph (D), as so redesignated, by 
                inserting ``and sales'' after ``reassignments''; and
          (2) in paragraph (2)--
                  (A) in subparagraph (A) by striking the ``and'' after 
                the semicolon;
                  (B) in subparagraph (B), by striking ``reassign the 
                remainder to imports.'' and inserting ``use the 
                estimated quantity of the deficit for the sale of any 
                inventories of sugar held by the Commodity Credit 
                Corporation; and''; and
                  (C) by inserting after subparagraph (B) the following 
                new subparagraph:
                  ``(C) if after such reassignments and sales, the 
                deficit cannot be completely eliminated, the Secretary 
                shall reassign the remainder to imports.''.
  (f) Producer Provisions.--Section 359f of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1359ff) is amended--
          (1) in subsection (a)--
                  (A) by striking ``processor's allocation'' in the 
                second sentence and inserting ``allocation to the 
                processor''; and
                  (B) by inserting after ``request of either party'' 
                the following: ``, and such arbitration should be 
                completed within 45 days, but not more than 60 days, of 
                the request'';
          (2) by redesignating subsection (b) as subsection (c);
          (3) by inserting after subsection (a) the following new 
        subsection:
  ``(b) Sugar Beet Processing Facility Closures.-- In the event that a 
sugar beet processing facility is closed and the sugar beet growers who 
previously delivered beets to such facility desire to deliver their 
beets to another processing company:
          ``(1) Such growers may petition the Secretary to modify 
        existing allocations to accommodate such a transition; and
          ``(2) The Secretary may increase the allocation to the 
        processing company to which the growers desire to deliver their 
        sugar beets, and which the processing company agrees to accept, 
        not to exceed its processing capacity, to accommodate the 
        change in deliveries.
          ``(3) Such increased allocation shall be deducted from the 
        allocation to the company that owned the processing facility 
        that has been closed and the remaining allocation will be 
        unaffected.
          ``(4) The Secretary's determination on the issues raised by 
        the petition shall be made within 60 days of the filing of the 
        petition.'';
          (4) in subsection (c), as so redesignated--
                  (A) in paragraph (3)(A), by striking ``the preceding 
                five years'' and inserting ``the two highest years from 
                among the years 1999, 2000, and 2001'';
                  (B) in paragraph (4)(A), by striking ``each'' through 
                ``in effect'' and inserting ``the two highest of the 
                three (3) crop years 1999, 2000, and 2001''; and
                  (C) by inserting after paragraph (7) the following 
                new paragraph:
          ``(8) Processing facility closures.--In the event that a 
        sugarcane processing facility subject to this subsection is 
        closed and the sugarcane growers who previously delivered 
        sugarcane to such facility desire to deliver their sugarcane to 
        another processing company--
                  ``(A) such growers may petition the Secretary to 
                modify existing allocations to accommodate such a 
                transition;
                  ``(B) the Secretary may increase the allocation to 
                the processing company to which the growers desire to 
                deliver the sugarcane, and which the processing company 
                agrees to accept, not to exceed its processing 
                capacity, to accommodate the change in deliveries;
                  ``(C) such increased allocation shall be deducted 
                from the allocation to the company that owned the 
                processing facility that has been closed and the 
                remaining allocation will be unaffected; and
                  ``(D) the Secretary's determination on the issues 
                raised by the petition shall be made within 60 days of 
                the filing of the petition.''.
  (g) Conforming Amendments.--(1) The heading of part VII of subtitle B 
of Title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 359aa 
et seq.) is amended to read as follows:

         ``PART VII--FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR''.

  (2) Section 359g of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359gg) is amended--
          (A) by striking ``359f'' each place it appears and inserting 
        ``359f(c);
          (B) in subsection (b), by striking ``3 consecutive'' and 
        inserting ``5 consecutive''; and
          (C) in subsection (c), by inserting ``or adjusted'' after 
        ``share established''.
  (3) Section 359j(c) of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1359jj) is amended--
          (A) by amending the subsection heading to read as follows: 
        ``Defini- 
        tions.--'';
          (B) by striking ``Notwithstanding'' and inserting the 
        following:
          ``(1) United states and state.--Notwithstanding''; and
          (C) by inserting after such paragraph (1) the following new 
        paragraph:
          ``(2) Offshore states.--For purposes of this part, the term 
        `offshore States' means the sugarcane producing States located 
        outside of the continental United States.''.
  (h) Lifting of Suspension.--Section 171(a)(1)(E) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7301(a)(1)(E)) 
is amended by inserting before the period at the end the following: ``, 
but only with respect to sugar marketings through fiscal year 2002''.

SEC. 153. STORAGE FACILITY LOANS.

  (a) Storage Facility Loan Program.--Notwithstanding any other 
provision of law and as soon as practicable after the date of enactment 
of this section, the Commodity Credit Corporation shall amend part 1436 
of title 7, Code of Federal Regulations, to establish a sugar storage 
facility loan program to provide financing for processors of 
domestically-produced sugarcane and sugar beets to build or upgrade 
storage and handling facilities for raw sugars and refined sugars.
  (b) Eligible Processors.--Storage facility loans shall be made 
available to any processor of domestically produced sugarcane or sugar 
beets that has a satisfactory credit history, determines a need for 
increased storage capacity (taking into account the effects of 
marketing allotments), and demonstrates an ability to repay the loan.
  (c) Term of Loans.--Storage facility loans shall be for a minimum of 
seven years, and shall be in such amounts and on such terms and 
conditions (including down payment, security requirements, and eligible 
equipment) as are normal, customary, and appropriate for the size and 
commercial nature of the borrower.
  (d) Administration.--The sugar storage facility loan program shall be 
administered using the services, facilities, funds, and authorities of 
the Commodity Credit Corporation.

                           CHAPTER 3--PEANUTS

SEC. 161. DEFINITIONS.

  In this chapter:
          (1) Counter-cyclical payment.--The term ``counter-cyclical 
        payment'' means a payment made to producers under section 164.
          (2) Effective price.--The term ``effective price'' means the 
        price calculated by the Secretary under section 164 for peanuts 
        to determine whether counter-cyclical payments are required to 
        be made under such section for a crop year.
          (3) Eligible peanut producer.--The term ``eligible producer'' 
        means a producer on a farm in the United States that produced 
        or attempted to produce peanuts during any or all of crop years 
        1998, 1999, 2000, and 2001.
          (4) Fixed, decoupled payment.--The term ``fixed, decoupled 
        payment'' means a payment made to producers under section 163.
          (5) Payment acres.--The term ``payment acres'' means 85 
        percent of the peanut acres on a farm, as established under 
        section 162, upon which fixed, decoupled payments and counter-
        cyclical payments are to be made.
          (6) Peanut acres.--The term ``peanut acres'' means the number 
        of acres planted and prevented from being planted to peanuts 
        for harvest on the farm over a certain number of crop years, as 
        established under section 162.
          (7) Payment yield.--The term ``payment yield'' means the 
        yield established under section 162 for a farm for peanuts.
          (8) Producer.--The term ``producer'' means an owner, 
        operator, landlord, tenant, or sharecropper who shares in the 
        risk of producing a crop of peanuts and who is entitled to 
        share in the crop available for marketing from the farm, or 
        would have shared had the crop been produced.
          (9) Secretary.--The term ``Secretary'' means the Secretary of 
        Agriculture.
          (10) 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.
          (11) Target price.--The term ``target price'' means the price 
        per ton of peanuts used to determine the payment rate for 
        counter-cyclical payments.
          (12) United states.--The term ``United States'', when used in 
        a geographical sense, means all of the States.

SEC. 162. ESTABLISHMENT OF PAYMENT YIELD, PEANUT ACRES, AND PAYMENT 
                    ACRES FOR A FARM.

  (a) Establishment of Payment Yield.--
          (1) Establishment and purpose.--For the purpose of making 
        fixed decoupled payments and counter-cyclical payments to 
        eligible peanut producers under this chapter, the Secretary 
        shall provide for the establishment of a payment yield for each 
        peanut farm in accordance with this subsection.
          (2) Average yield.--The Secretary shall establish a payment 
        yield for peanuts on a farm by first determining the average 
        yield for peanuts on the farm for the 1998 through 2001 crop 
        years, excluding any crop year in which the acreage planted to 
        peanuts was zero. If, for any of these four crop years in which 
        peanuts were planted, the farm would have satisfied the 
        eligibility criteria established to carry out section 1102 of 
        the Agriculture, Rural Development, Food and Drug 
        Administration, and Related Agencies Appropriations Act, 1999 
        (7 U.S.C. 1421 note; Public Law 105-277), the Secretary shall 
        assign a yield for that year equal to 65 percent of the county 
        yield, as determined by the Secretary.
  (b) Peanut Acres.--The peanut acres for a farm shall be equal to the 
four-year average of acreage actually planted on the farm in peanuts 
for harvest during crop years 1998, 1999, 2000, and 2001 and any 
acreage on the farm that the producers were prevented from planting to 
peanuts during such crop years because of drought, flood, or other 
natural disaster, or other condition beyond the control of the 
producer, as determined by the Secretary.
  (c) Payment Acres.--The payment acres for peanuts on a farm shall be 
equal to 85 percent of the peanut acres for the farm.
  (d) Prevention of Excess Payment Acres.--
          (1) Required reduction.--If the sum of the peanut 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 quantity of peanut acres for the farm or base 
        acres for one or more covered commodities for the farm as 
        necessary so that the sum of the peanut acres and acreage 
        described in paragraph (2) does not exceed the actual cropland 
        acreage of the farm. The Secretary shall give the producers on 
        the farm the opportunity to select the peanut acres or base 
        acres against which the reduction will be made.
          (2) Other acreage.--For purposes of paragraph (1), the 
        Secretary shall include the following:
                  (A) Any base acres for the farm under subtitle A.
                  (B) 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.).
                  (C) 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.

SEC. 163. AVAILABILITY OF FIXED, DECOUPLED PAYMENTS FOR PEANUTS.

  (a) Payment Required.--For each of the 2002 through 2011 crop years, 
the Secretary shall make fixed, decoupled payments to eligible peanut 
producers on a farm.
  (b) Payment Rate.--The payment rate used to make fixed, decoupled 
payments with respect to peanuts for a crop year shall be equal to $36 
per ton.
  (c) Payment Amount.--The amount of the fixed, decoupled payment to be 
paid to the eligible peanut 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 on the farm.
          (3) The payment yield for the farm.
  (d) Time for Payment.--
          (1) General rule.--Fixed, decoupled payments shall be paid 
        not later than September 30 of each of fiscal years 2002 
        through 2011. In the case of the 2002 crop, payments may begin 
        to be made on or after December 1, 2001.
          (2) Advance payments.--At the option of an eligible peanut 
        producer, 50 percent of the fixed, decoupled payment for a 
        fiscal year shall be paid on a date selected by the producer. 
        The selected date shall be on or after December 1 of that 
        fiscal year, and the producer may change the selected date for 
        a subsequent fiscal year by providing advance notice to the 
        Secretary.
          (3) Repayment of advance payments.--If a producer that 
        receives an advance fixed, decoupled payment for a fiscal year 
        ceases to be an eligible peanut producer before the date the 
        fixed, decoupled payment would otherwise have been made by the 
        Secretary under paragraph (1), the producer shall be 
        responsible for repaying the Secretary the full amount of the 
        advance payment.

SEC. 164. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.

  (a) Payment Required.--During the 2002 through 2011 crop years for 
peanuts, the Secretary shall make counter-cyclical payments with 
respect to peanuts whenever the Secretary determines that the effective 
price for peanuts is less than the target price.
  (b) Effective Price.--For purposes of subsection (a), the effective 
price for peanuts 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 
                peanuts, as determined by the Secretary.
                  (B) The national average loan rate for a marketing 
                assistance loan for peanuts in effect for the same 
                period under this chapter.
          (2) The payment rate in effect under section 163 for the 
        purpose of making fixed, decoupled payments.
  (c) Target Price.--For purposes of subsection (a), the target price 
for peanuts shall be equal to $480 per ton.
  (d) Payment Rate.--The payment rate used to make counter-cyclical 
payments for a crop year shall be equal to the difference between--
          (1) the target price; and
          (2) the effective price determined under subsection (b).
  (e) Payment Amount.--The amount of the counter-cyclical payment to be 
paid to the eligible peanut producers on a farm for a crop year shall 
be equal to the product of the following:
          (1) The payment rate specified in subsection (d).
          (2) The payment acres on the farm.
          (3) The payment yield for the farm.
  (f) Time for Payments.--
          (1) General rule.--The Secretary shall make counter-cyclical 
        payments under this section for a peanut crop as soon as 
        possible after determining under subsection (a) that such 
        payments are required for that crop year.
          (2) Partial payment.--The Secretary may permit, and, if so 
        permitted, an eligible peanut producer may elect to receive, up 
        to 50 percent of the projected counter-cyclical payment, as 
        determined by the Secretary, to be made under this section for 
        a peanut crop upon completion of the first six months of the 
        marketing year for that crop. The producer shall repay to the 
        Secretary the amount, if any, by which the partial payment 
        exceeds the actual counter-cyclical payment to be made for that 
        crop.

SEC. 165. PRODUCER AGREEMENT REQUIRED AS CONDITION ON PROVISION OF 
                    FIXED, DECOUPLED PAYMENTS AND COUNTER-CYCLICAL 
                    PAYMENTS.

  (a) Compliance With Certain Requirements.--
          (1) Requirements.--Before the producers on a farm may receive 
        fixed, decoupled payments or counter-cyclical payments with 
        respect to the farm, the producers shall agree, 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 the Act 
                (16 U.S.C. 3821 et seq.);
                  (C) to comply with the planting flexibility 
                requirements of section 166; and
                  (D) to use the land on the farm, in an amount equal 
                to the peanut acres, for an agricultural or conserving 
                use, and not for a nonagricultural commercial or 
                industrial use, 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).
  (b) Effect of Foreclosure.--A producer may not be required to make 
repayments to the Secretary of fixed, decoupled payments and counter-
cyclical payments if the farm has been foreclosed on and the Secretary 
determines that forgiving the repayments is appropriate to provide fair 
and equitable treatment. This subsection shall not void the 
responsibilities of the producer under subsection (a) if the producer 
continues or resumes operation, or control, of the farm. On the 
resumption of operation or control over the farm by the producer, the 
requirements of subsection (a) in effect on the date of the foreclosure 
shall apply.
  (c) Transfer or Change of Interest in Farm.--
          (1) Termination.--Except as provided in paragraph (4), a 
        transfer of (or change in) the interest of a producer in peanut 
        acres for which fixed, decoupled payments or counter-cyclical 
        payments are made shall result in the termination of the 
        payments with respect to the peanut acres, unless the 
        transferee or owner of the acreage agrees to assume all 
        obligations under subsection (a). The termination shall be 
        effective on the date of the transfer or change.
          (2) Transfer of payment base.--There is no restriction on the 
        transfer of a farm's peanut acres or payment yield as part of a 
        change in the producers on the farm.
          (3) Modification.--At the request of the transferee or owner, 
        the Secretary may modify the requirements of subsection (a) if 
        the modifications are consistent with the objectives of such 
        subsection, as determined by the Secretary.
          (4) Exception.--If a producer entitled to a fixed, decoupled 
        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 regulations 
        prescribed by the Secretary.
  (d) Acreage Reports.--As a condition on the receipt of any benefits 
under this chapter, the Secretary shall require producers to submit to 
the Secretary acreage reports.
  (e) Tenants and Sharecroppers.--In carrying out this chapter, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
  (f) Sharing of Payments.--The Secretary shall provide for the sharing 
of fixed, decoupled payments and counter-cyclical payments among the 
eligible peanut producers on a farm on a fair and equitable basis.

SEC. 166. PLANTING FLEXIBILITY.

  (a) Permitted Crops.--Subject to subsection (b), any commodity or 
crop may be planted on peanut acres on a farm.
  (b) Limitations and Exceptions Regarding Fruits and Vegetables.--
          (1) Limitations.--The planting of fruits and vegetables 
        (other than lentils, mung beans, and dry peas) shall be 
        prohibited on peanut acres.
          (2) Exceptions.--Paragraph (1) shall not limit the planting 
        of a fruit or vegetable--
                  (A) in any region in which there is a history of 
                double-cropping of peanuts with fruits or vegetables, 
                as determined by the Secretary, in which case the 
                double-cropping shall be permitted;
                  (B) on a farm that the Secretary determines has a 
                history of planting fruits or vegetables on peanut 
                acres, except that fixed, decoupled payments and 
                counter-cyclical payments shall be reduced by an acre 
                for each acre planted to the fruit or vegetable; or
                  (C) by a producer who the Secretary determines has an 
                established planting history of a specific fruit or 
                vegetable, except that--
                          (i) the quantity planted may not exceed the 
                        producer's average annual planting history of 
                        the fruit or vegetable in the 1991 through 1995 
                        crop years (excluding any crop year in which no 
                        plantings were made), as determined by the 
                        Secretary; and
                          (ii) fixed, decoupled payments and counter-
                        cyclical payments shall be reduced by an acre 
                        for each acre planted to the fruit or 
                        vegetable.

SEC. 167. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS FOR 
                    PEANUTS.

  (a) Nonrecourse Loans Available.--
          (1) Availability.--For each of the 2002 through 2011 crops of 
        peanuts, the Secretary shall make available to producers on a 
        farm nonrecourse marketing assistance loans for peanuts 
        produced on the farm. The loans shall be made under terms and 
        conditions that are prescribed by the Secretary and at the loan 
        rate established under subsection (b).
          (2) Eligible production.--Any production of peanuts on a farm 
        shall be eligible for a marketing assistance loan under this 
        subsection.
          (3) Treatment of certain commingled commodities.--In carrying 
        out this subsection, the Secretary shall make loans to a 
        producer that is otherwise eligible to obtain a marketing 
        assistance loan, but for the fact the peanuts owned by the 
        producer are commingled with other peanuts in facilities 
        unlicensed for the storage of agricultural commodities by the 
        Secretary or a State licensing authority, if the producer 
        obtaining the loan agrees 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).
          (4) Options for obtaining loan.--A marketing assistance loan 
        under this subsection, and loan deficiency payments under 
        subsection (e), may be obtained at the option of the producer 
        through--
                  (A) a designated marketing association of peanut 
                producers that is approved by the Secretary;
                  (B) a loan servicing agent approved by the Secretary; 
                or
                  (C) the Farm Service Agency.
          (5) Loan servicing agent.--As a condition of the Secretary's 
        approval of an entity to serve as a loan servicing agent or to 
        handle or store peanuts for producers that receive any 
        marketing loan benefits, the entity shall agree to provide 
        adequate storage (if available) and handling of peanuts at the 
        commercial rate to other approved loan servicing agents and 
        marketing associations.
  (b) Loan Rate.--The loan rate for a marketing assistance loan under 
for peanuts subsection (a) shall be equal to $350 per ton.
  (c) Term of Loan.--
          (1) In general.--A marketing assistance loan for peanuts 
        under subsection (a) shall have a term of nine months beginning 
        on the first day of the first month after the month in which 
        the loan is made.
          (2) Extensions prohibited.--The Secretary may not extend the 
        term of a marketing assistance loan under subsection (a).
  (d) Repayment Rate.--The Secretary shall permit producers to repay a 
marketing assistance loan for peanuts under subsection (a) at a rate 
that is the lesser of--
          (1) the loan rate established for the commodity under 
        subsection (b), plus interest (as determined by the Secretary); 
        or
          (2) a rate that the Secretary determines will--
                  (A) minimize potential loan forfeitures;
                  (B) minimize the accumulation of stocks of peanuts by 
                the Federal Government;
                  (C) minimize the cost incurred by the Federal 
                Government in storing peanuts; and
                  (D) allow peanuts produced in the United States to be 
                marketed freely and competitively, both domestically 
                and internationally.
  (e) Loan Deficiency Payments.--
          (1) Availability.--The Secretary may make loan deficiency 
        payments available to producers who, although eligible to 
        obtain a marketing assistance loan for peanuts under subsection 
        (a), agree to forgo obtaining the loan for the peanuts in 
        return for payments under this subsection.
          (2) Computation.--A loan deficiency payment under this 
        subsection shall be computed by multiplying--
                  (A) the loan payment rate determined under paragraph 
                (3) for peanuts; by
                  (B) the quantity of the peanuts produced by the 
                eligible producers, excluding any quantity for which 
                the producers obtain a loan under subsection (a).
          (3) Loan payment rate.--For purposes of this subsection, the 
        loan payment rate shall be the amount by which--
                  (A) the loan rate established under subsection (b); 
                exceeds
                  (B) the rate at which a loan may be repaid under 
                subsection (d).
          (4) Time for payment.--The Secretary shall make a payment 
        under this subsection to a producer with respect to a quantity 
        of peanuts as of the earlier of the following:
                  (A) The date on which the producer marketed or 
                otherwise lost beneficial interest in the peanuts, as 
                determined by the Secretary.
                  (B) The date the producer requests the payment.
  (f) 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.
  (g) Reimbursable Agreements and Payment of Expenses.--To the extent 
practicable, the Secretary shall implement any reimbursable agreements 
or provide for the payment of expenses under this chapter in a manner 
that is consistent with such activities in regard to other commodities.
  (h) Termination of Superseded Price Support Authority.--
          (1) Repeal.--Section 155 of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7271) is repealed.
          (2) Conforming amendments.--The Agricultural Act of 1949 (7 
        U.S.C. 1441 et seq.) is amended--
                  (A) in section 101(b) (7 U.S.C. 1441(b)), by striking 
                ``and peanuts''; and
                  (B) in section 408(c) (7 U.S.C. 1428(c)), by striking 
                ``peanuts,''.

SEC. 168. QUALITY IMPROVEMENT.

  (a) Official Inspection.--
          (1) Mandatory inspection.--All peanuts placed under a 
        marketing assistance loan under section 167 shall be officially 
        inspected and graded by Federal or State inspectors.
          (2) Optional inspection.--Peanuts not placed under a 
        marketing assistance loan may be graded at the option of the 
        producer.
  (b) Termination of Peanut Administrative Committee.--The Peanut 
Administrative Committee established under Marketing Agreement No. 
1436, which regulates the quality of domestically produced peanuts 
under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted 
with amendments by the Agricultural Marketing Agreement Act of 1937, is 
terminated.
  (c) Establishment of Peanut Standards Board.--The Secretary shall 
establish a Peanut Standards Board for the purpose of assisting in the 
establishment of quality standards with respect to peanuts. The 
authority of the Board is limited to assisting in the establishment of 
quality standards for peanuts. The members of the Board should fairly 
reflect all segments of the peanut industry.
  (d) Effective Date.--This section shall take effect with the 2002 
crop of peanuts.

SEC. 169. PAYMENT LIMITATIONS.

  For purposes of sections 1001 through 1001C of the Food Security Act 
of 1985 (7 U.S.C. 1308 through 1308-3), separate payment limitations 
shall apply to peanuts with respect to--
          (1) fixed, decoupled payments;
          (2) counter-cyclical payments, and
          (3) limitations on marketing loan gains and loan deficiency 
        payments.

SEC. 170. TERMINATION OF MARKETING QUOTA PROGRAMS FOR PEANUTS AND 
                    COMPENSATION TO PEANUT QUOTA HOLDERS FOR LOSS OF 
                    QUOTA ASSET VALUE.

  (a) Repeal of Marketing Quota.--Part VI of subtitle B of title III of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1357-1359a), relating 
to peanuts, is repealed.
  (b) Compensation Required.--During fiscal years 2002 through 2006, 
the Secretary shall make payments under this section to eligible peanut 
quota holders to compensate them for the lost value of the quota on 
account of the repeal of the marketing quota program for peanuts under 
subsection (a).
  (c) Time for Payment.--The payments required by this section shall be 
provided in five equal installments not later than September 30 of each 
of fiscal years 2002 through 2006.
  (d) Payment Amount.--The amount of the payment for a fiscal year to a 
peanut quota holder under this section shall be equal to the product 
obtained by multiplying--
          (1) $0.10 per pound; by
          (2) the actual farm poundage quota (excluding seed and 
        experimental peanuts) established for the peanut quota holder's 
        farm under section 358-1(b) of the Agricultural Adjustment Act 
        of 1938 (7 U.S.C. 1358-1(b)) for the 2001 marketing year.
  (e) Assignment of Payments.--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 the payments made to 
peanut quota holders under this section. The peanut quota holder 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 subsection.
  (f) Peanut Quota Holder Defined.--In this section, the term ``peanut 
quota holder'' means a person or enterprise that owns a farm that--
          (1) was eligible, immediately before the date of the 
        enactment of this Act, to have a peanut quota established upon 
        it;
          (2) if there are not quotas currently established, would be 
        eligible to have a quota established upon it for the succeeding 
        crop year, in the absence of the amendment made by subsection 
        (a); or
          (3) is otherwise a farm that was eligible for such a quota at 
        the time the general quota establishment authority was 
        repealed.
The Secretary shall apply this definition without regard to temporary 
leases or transfers or quotas for seed or experimental purposes.

                       Subtitle D--Administration

SEC. 181. ADMINISTRATION GENERALLY.

  (a) Use of Commodity Credit Corporation.--The Secretary shall carry 
out this title through the Commodity Credit Corporation.
  (b) Determinations by Secretary.--A determination made by the 
Secretary under this title shall be final and conclusive.
  (c) Regulations.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary and the Commodity Credit 
Corporation, as appropriate, shall issue such regulations as are 
necessary to implement this title. The issuance of the regulations 
shall be made without regard to--
          (1) the notice and comment provisions of section 553 of title 
        5, United States Code;
          (2) 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
          (3) chapter 35 of title 44, United States Code (commonly 
        known as the ``Paperwork Reduction Act'').
  (d) Protection of Producers.--The protection afforded producers that 
elect the option to accelerate the receipt of any payment under a 
production flexibility contract payable under the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7212 note) shall also 
apply to the advance payment of fixed, decoupled payments and counter-
cyclical payments.

SEC. 182. EXTENSION OF SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

  (a) Agricultural Adjustment Act of 1938.--Section 171(a)(1) of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7301(a)(1)) is amended by striking ``2002'' both places it appears and 
inserting ``2011''.
  (b) Agricultural Act of 1949.--Section 171(b)(1) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7301(b)(1)) is 
amended by striking ``2002'' both places it appears and inserting 
``2011''.
  (c) Suspension of Certain Quota Provisions.--Section 171(c) of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7301(c)) is amended by striking ``2002'' and inserting ``2011''.

SEC. 183. LIMITATIONS.

  (a) Limitation on Amounts Received.--Section 1001 of the Food 
Security Act of 1985 (7 U.S.C. 1308) is amended--
          (1) in paragraph (1)--
                  (A) by striking ``payments under production 
                flexibility contracts'' and inserting ``fixed, 
                decoupled payments'';
                  (B) by striking ``contract payments made under the 
                Agricultural Market Transition Act to a person under 1 
                or more production flexibility contracts'' and 
                inserting ``fixed, decoupled payments made to a 
                person'';
                  (C) by striking ``4'' and inserting ``5'';
          (2) in paragraphs (2) and (3)--
                  (A) by striking ``payments specified'' and all that 
                follows through ``and oilseeds'' and inserting 
                ``following payments that a person shall be entitled to 
                receive'';
                  (B) by striking ``75'' and inserting ``150''; and
                  (C) by striking the period at the end of paragraph 
                (2) and all that follows through ``the following'' in 
                paragraph (3);
                  (D) by striking ``section 131'' and all that follows 
                through ``section 132'' and inserting ``section 121 of 
                the Farm Security Act of 2001 for a crop of any covered 
                commodity at a lower level than the original loan rate 
                established for the commodity under section 122''; and
                  (E) by striking ``section 135'' and inserting 
                ``section 125''; and
          (3) by inserting after paragraph (2) the following new 
        paragraph (3):
          ``(3) Limitation on counter-cyclical payments.--The total 
        amount of counter-cyclical payments that a person may receive 
        during any crop year shall not exceed the amount specified in 
        paragraph (2), as in effect on the day before the date of the 
        enactment of the Farm Security Act of 2001.''.
  (b) Definitions.--Paragraph (4) of section 1001 of the Food Security 
Act of 1985 (7 U.S.C. 1308) is amended to read as follows:
          ``(4) Definitions.--In this title, the terms `covered 
        commodity', `counter-cyclical payment', and `fixed, decoupled 
        payment' have the meaning given those terms in section 100 of 
        the Farm Security Act of 2001.''.
  (c) 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 fiscal year 2001 
and the 2001 crop of any covered commodity.

SEC. 184. ADJUSTMENTS OF LOANS.

  Section 162(b) of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7282(b)) is amended by striking ``this title'' and 
inserting ``this title and title I of the Farm Security Act of 2001''.

SEC. 185. 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 ``this title'' both places 
it appears and inserting ``this title and title I of the Farm Security 
Act of 2001''.

SEC. 186. 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 by striking ``subtitle C'' both places 
it appears and inserting ``subtitle C of this title and title I of the 
Farm Security Act of 2001''.

SEC. 187. ASSIGNMENT OF PAYMENTS.

  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 Act. 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.

                         TITLE II--CONSERVATION

                         Subtitle A--Definition

SEC. 201. DEFINITION OF AGRICULTURAL COMMODITY.

  Section 1201(a)(1) of the Food Security Act of 1985 (16 U.S.C. 
3801(a)(1)) is amended to read as follows:
  ``(1) Agricultural commodity.--The term `agricultural commodity' 
means any agricultural crop planted or produced in a State.''.

                Subtitle B--Wetland Conservation Program

SEC. 211. INELIGIBILITY FOR CERTAIN LOANS AND PAYMENTS.

  Section 1221(b) of the Food Security Act of 1985 (16 U.S.C. 3821(b)) 
is amended by inserting ``relating to any commodity produced during 
that crop year by such person'' before ``for which the person''.

     Subtitle C--Environmental Conservation Acreage Reserve Program

SEC. 221. ELIMINATION OF GENERAL PROVISIONS.

  Chapter 1 of subtitle D of title XII of the Food Security Act of 1985 
is amended--
          (1) by striking the heading for subchapter A;
          (2) by striking section 1230 (16 U.S.C. 3830);
          (3) in section 1230A (16 U.S.C. 3830a), by striking 
        ``chapter'' each place it appears and inserting ``title'';
          (4) by redesignating section 1230A as section 1244; and
          (5) by transferring section 1244 (as so redesignated) to the 
        end of subtitle E.

                Subtitle D--Conservation Reserve Program

SEC. 231. REAUTHORIZATION.

  (a) In General.--Section 1231 of the Food Security Act of 1985 (16 
U.S.C. 3831) is amended in each of subsections (a), (b)(3), and (d), by 
striking ``2002'' and inserting ``2011''.
  (b) Scope of Program.--Section 1231(a) of such Act (16 U.S.C. 
3831(a)) is amended by striking ``and water'' and inserting ``, water, 
and wildlife''.

SEC. 232. ENROLLMENT.

  (a) Eligibility.--Section 1231(b) of the Food Security Act of 1985 
(16 U.S.C. 3831(b)) is amended--
          (1) by striking paragraphs (2) and (3) and inserting the 
        following:
          ``(2) marginal pasturelands to be devoted to natural 
        vegetation in or near riparian areas or for similar water 
        quality purposes;'';
          (2) in paragraph (4)--
                  (A) by striking subparagraph (A) and inserting the 
                following:
                  ``(A) if the Secretary determines that--
                          ``(i) the lands contribute to the degradation 
                        of soil, water, or air quality, or would pose 
                        an on-site or off-site environmental threat to 
                        soil, water, or air quality if permitted to 
                        remain in agricultural production; and
                          ``(ii) soil, water, and air quality 
                        objectives with respect to the land cannot be 
                        achieved under the environmental quality 
                        incentives program established under chapter 
                        4;'';
                  (B) by striking ``or'' at the end of subparagraph 
                (C);
                  (C) by striking the period at the end of subparagraph 
                (D) and inserting ``; or''; and
                  (D) by adding at the end the following:
                  ``(E) if the Secretary determines that enrollment of 
                such lands would contribute to conservation of ground 
                or surface water.''; and
          (3) by redesignating paragraph (4) as paragraph (3).
  (b) Increase in Maximum Enrollment.--Section 1231(d) of such Act (16 
U.S.C. 3831(d)) is amended by striking ``36,400,000'' and inserting 
``39,200,000''.
  (c) Eligibility on Contract Expiration.--Section 1231(f) of such Act 
(16 U.S.C. 3831(f)) is amended to read as follows:
  ``(f) Eligibility on Contract Expiration.--On the expiration of a 
contract entered into under this subchapter, the land subject to the 
contract shall be eligible to be re-enrolled in the conservation 
reserve.''.
  (d) Balance Among Contracts Awarded.--
          (1) In general.--Section 1231 of such Act (16 U.S.C. 3831) is 
        amended by adding at the end the following:
  ``(i) Balance Among Contracts Awarded.--In determining the 
acceptability of contract offers under this subchapter, the Secretary 
shall balance conservation interests in soil erosion, water quality, 
and wildlife habitat.''.
          (2) Regulations.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Agriculture shall 
        issue final regulations implementing section 1231(i) of the 
        Food Security Act of 1985, as added by paragraph (1) of this 
        subsection.

SEC. 233. DUTIES OF OWNERS AND OPERATORS.

  Section 1232 of the Food Security Act of 1985 (16 U.S.C. 3832) is 
amended--
          (1) in subsection (a)--
                  (A) in paragraph (3), by inserting ``as described in 
                section 1232(a)(7) or for other purposes'' before ``as 
                permitted'';
                  (B) in paragraph (4), by inserting ``where 
                practicable, or maintain existing cover'' before ``on 
                such land''; and
                  (C) in paragraph (7), by striking ``Secretary--'' and 
                all that follows and inserting ``Secretary may permit--
                  ``(A) managed grazing and limited haying, in which 
                case the Secretary shall reduce the conservation 
                reserve payment otherwise payable under the contract by 
                an amount commensurate with the economic value of the 
                activity;
                  ``(B) wind turbines for the provision of wind energy, 
                whether or not commercial in nature; and
                  ``(C) land subject to the contract to be harvested 
                for recovery of biomass used in energy production, in 
                which case the Secretary shall reduce the conservation 
                reserve payment otherwise payable under the contract by 
                an amount commensurate with the economic value of such 
                activity;''; and
          (2) by striking subsections (c) and (d) and redesignating 
        subsection (e) as subsection (c).

SEC. 234. DUTIES OF THE SECRETARY.

  Section 1233 of the Food Security Act of 1985 (16 U.S.C. 3833) is 
amended--
          (1) in paragraph (1), by adding ``and'' at the end;
          (2) in paragraph (2), by striking ``; and'' and inserting a 
        period; and
          (3) striking paragraph (3).

SEC. 235. ACCEPTANCE OF CONTRACT OFFERS.

  Section 1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c)) 
is amended by striking paragraph (3).

SEC. 236. CONTRACTS.

  (a) In General.--Section 1235 of the Food Security Act of 1985 (16 
U.S.C. 3835) is amended--
          (1) in subsection (a)(1)--
                  (A) in subparagraph (A), by adding ``or'' at the end;
                  (B) by striking subparagraphs (B) and (C); and
                  (C) by redesignating subparagraph (D) and 
                subparagraph (B).
          (2) by adding at the end the following:
  ``(f) Restoration of Base.--On the expiration of a contract entered 
into under this subchapter, the Secretary shall restore the base, 
contract acreage, quota, or allotment history applicable to the land 
when the contract was entered into.''.
  (b) Conservation Reserve Payment.--Subchapter B of chapter 1 of 
subtitle D of title XII of such Act (16 U.S.C. 3831-3836) is amended by 
striking ``rental payment'' each place it appears and inserting 
``conservation reserve payment''.

                  Subtitle E--Wetlands Reserve Program

SEC. 241. ENROLLMENT.

  (a) Maximum.--Section 1237(b) of the Food Security Act of 1985 (16 
U.S.C. 3837(b)) is amended by striking paragraph (1) and inserting the 
following:
          ``(1) Annual enrollment.--In addition to any acres enrolled 
        in the wetlands reserve program as of the end of a calendar 
        year, the Secretary may in the succeeding calendar year enroll 
        in the program a number of additional acres equal to--
                  ``(A) if the succeeding calendar year is calendar 
                year 2002, 150,000;
                  ``(B) if the succeeding calendar year is a calendar 
                year after calendar year 2002--
                          ``(i) 150,000; plus
                          ``(ii) the amount (if any) by which 150,000, 
                        multiplied by the number of calendar years in 
                        the period that begins with calendar year 2002 
                        and ends with the calendar year preceding such 
                        succeeding calendar year, exceeds the total 
                        number of acres added to the reserve during the 
                        period.''.
  (b) Methods.--Section 1237(b)(2) of such Act (16 U.S.C. 3837(b)(2)) 
is amended to read as follows:
          ``(2) Methods of enrollment.--The Secretary shall enroll 
        acreage into the wetlands reserve program through the use of 
        easements, restoration cost share agreements, or both.''.
  (c) Eligibility.--Section 1237 of such Act (16 U.S.C. 3837) is 
amended by striking subsections (c), (d), and (e) and inserting the 
following:
  ``(c) Priority.--For purposes of enrolling acreage in the wetlands 
reserve program, the Secretary shall give priority to land that 
maximizes wetland functions and values.
  ``(d) Ineligible Land.--The Secretary may not acquire an easement 
under this chapter on land which is--
          ``(1) enrolled in the conservation reserve program 
        established under subchapter B; or
          ``(2) subject to a contract under the environmental quality 
        incentives program established by chapter 4.''.
  (d) Conforming Amendments.--Section 1237 of such Act (16 U.S.C. 3837) 
is amended--
          (1) by redesignating subsection (f) as subsection (e); and
          (2) by striking subsection (g).

SEC. 242. EASEMENTS AND AGREEMENTS.

  Section 1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) is 
amended--
          (1) in subsection (b), by striking paragraph (2) and 
        inserting the following:
          ``(2) prohibits the alteration of wildlife habitat and other 
        natural features of such land, unless specifically permitted by 
        the plan;'';
          (2) in subsection (e), by striking paragraph (2) and 
        inserting the following:
          ``(2) shall be consistent with applicable State law.'';
          (3) by striking subsections (c) and (h) and redesignating 
        subsections (d) through (g) as subsections (c) through (f), 
        respectively.

SEC. 243. DUTIES OF THE SECRETARY.

  Section 1237C of the Food Security Act of 1985 (16 U.S.C. 3837c) is 
amended--
          (1) in subsection (a)--
                  (A) by striking ``shall--'' and all that follows 
                through ``(1)'' and inserting ``shall''; and
                  (B) by striking ``interest;'' and all that follows 
                and inserting ``interest.''; and
          (2) by striking subsection (d).

SEC. 244. PAYMENT LIMITATION.

  Section 1237D(c)(1) of the Food Security Act of 1985 (16 U.S.C. 
3837d(c)(1)) is amended by striking ``easement payments'' and inserting 
``payments''.

SEC. 245. CHANGES IN OWNERSHIP; AGREEMENT MODIFICATION; TERMINATION.

  Section 1237E(a)(2) of the Food Security Act of 1985 (16 U.S.C. 
3837e(a)(2)) is amended to read as follows:
          ``(2) the ownership change occurred due to foreclosure on the 
        land and the owner of the land immediately before the 
        foreclosure exercises a right of redemption from the mortgage 
        holder in accordance with State law, or''.

          Subtitle F--Environmental Quality Incentives Program

SEC. 251. PURPOSES.

  Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is 
amended--
          (1) by striking ``to--'' and all that follows through 
        ``provides--'' and inserting ``provide--'';
          (2) by striking ``that face the most serious threats to'' and 
        inserting ``to address environmental needs and provide benefits 
        to air,'';
          (3) by redesignating the subparagraphs (A) through (D) that 
        follow the matter amended by paragraph (2) of this section as 
        paragraphs (1) through (4), respectively;
          (4) by moving each of such redesignated provisions 2 ems to 
        the left; and
          (5) by striking ``farmers and ranchers'' each place it 
        appears and inserting ``producers''.

SEC. 252. DEFINITIONS.

  Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1) 
is amended--
          (1) in paragraph (1)--
                  (A) by inserting ``non-industrial private forest 
                land,'' before ``and other land''; and
                  (B) by striking ``poses a serious threat'' and all 
                that follows and inserting ``provides increased 
                environmental benefits to air, soil, water, or related 
                resources.'';
          (2) in paragraph (4), by inserting ``, including non-
        industrial private forestry'' before the period; and
          (3) in paragraph (5), by striking ``permanent wildlife 
        habitat,''.

SEC. 253. ESTABLISHMENT AND ADMINISTRATION.

  (a) Reauthorization.--Section 1240B(a)(1) of the Food Security Act of 
1985 (16 U.S.C. 3839aa-2(a)(1)) is amended by striking ``2002'' and 
inserting ``2011''.
  (b) Term of Contracts.--Section 1240B(b)(2) of such Act (16 U.S.C. 
3839aa-2(b)(2)) is amended by striking ``not less than 5, nor more than 
10, years'' and inserting ``not less than 1 year, nor more than 10 
years''.
  (c) Structural Practices.--Section 1240B(c)(1)(B) of such Act (16 
U.S.C. 3839aa-2(c)(1)(B)) is amended to read as follows:
                  ``(B) achieving the purposes established under this 
                subtitle.''.
  (d) Elimination of Certain Limitations on Eligibility for Cost-Share 
Payments.--Section 1240B(e)(1) of such Act (16 U.S.C. 3839aa-2(e)(1)) 
is amended--
          (1) by striking subparagraph (B) and redesignating 
        subparagraph (C) as subparagraph (B); and
          (2) in subparagraph (B) (as so redesignated), by striking 
        ``or 3''.
  (e) Incentive Payments.--Section 1240B of such Act (16 U.S.C. 3839aa-
2) is amended--
          (1) in subsection (e)--
                  (A) in the subsection heading, by striking ``, 
                Incentive Payments,''; and
                  (B) by striking paragraph (2); and
          (2) by redesignating subsection (f) as subsection (g) and 
        inserting after subsection (e) the following:
  ``(f) Farmland Conservation Incentive Payments.--
          ``(1) In general.--The Secretary may make incentive payments 
        in an amount and at a rate determined by the Secretary to be 
        necessary to encourage a producer to perform multiple land 
        management practices and to promote the enhancement of soil, 
        water, air, and related resources.
          ``(2) Special rule.--In determining the amount and rate of 
        incentive payments, the Secretary may accord great weight to 
        those practices that include residue, nutrient, pest, invasive 
        species, and air quality management.''.

SEC. 254. EVALUATION OF OFFERS AND PAYMENTS.

  Section 1240C of the Food Security Act of 1985 (16 U.S.C. 3839aa-3) 
is amended by striking paragraphs (1) through (3) and inserting the 
following:
          ``(1) aid producers in complying with this title and Federal 
        and State environmental laws, and encourage environmental 
        enhancement and conservation; and
          ``(2) maximize the beneficial usage of animal manure and 
        other similar soil amendments which improve soil health, tilth, 
        and water-holding capacity.''.

SEC. 255. DUTIES OF PRODUCERS.

  Section 1240D of the Food Security Act of 1985 (16 U.S.C. 3839aa-4) 
is amended by striking paragraph (2) and redesignating paragraphs (3) 
through (6) as paragraphs (2) through (5), respectively.

SEC. 256. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

  Section 1240E(a) of the Food Security Act of 1985 (16 U.S.C. 3839aa-
5(a)) is amended by striking ``that incorporates such conservation 
practices'' and all that follows and inserting ``that provides or will 
continue to provide increased environmental benefits to air, soil, 
water, or related resources.''.

SEC. 257. DUTIES OF THE SECRETARY.

  Section 1240F of the Food Security Act of 1985 (16 U.S.C. 3839aa-6) 
is amended by striking paragraphs (2) and (3) and redesignating 
paragraphs (4) and (5) as paragraphs (2) and (3), respectively.

SEC. 258. LIMITATION ON PAYMENTS.

  Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7) 
is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1), by striking ``$10,000'' and 
                inserting ``$50,000''; and
                  (B) in paragraph (2), by striking ``$50,000'' and 
                inserting ``$200,000'';
          (2) in subsection (b), by striking ``the maximization of 
        environmental benefits per dollar expended and''; and
          (3) by striking subsection (c).

SEC. 259. GROUNDWATER CONSERVATION.

  Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8) 
is amended to read as follows:

``SEC. 1240H. GROUNDWATER CONSERVATION.

  ``The Secretary shall use $60,000,000 of the funds of the Commodity 
Credit Corporation in each of fiscal years 2002 through 2011 to provide 
cost-share payments and low-interest loans to encourage groundwater 
conservation, including irrigation system improvement, and to provide 
incentive payments for capping wells, reducing use of water for 
irrigation, and switching from irrigation to dryland farming.''.

                 Subtitle G--Funding and Administration

SEC. 261. REAUTHORIZATION.

  Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) 
is amended by striking ``2002'' and inserting ``2011''.

SEC. 262. FUNDING.

  Section 1241(b)(1) of the Food Security Act of 1985 (16 U.S.C. 
3841(b)(1)) is amended--
          (1) by striking ``and'' the 1st place it appears; and
          (2) by striking ``$130,000,000'' and all that follows through 
        ``2002'' and inserting ``$200,000,000 for fiscal year 2001, and 
        $1,200,000,000 for each of fiscal years 2002 through 2011''.

SEC. 263. ALLOCATION FOR LIVESTOCK PRODUCTION.

  Section 1241(b)(2) of the Food Security Act of 1985 (16 U.S.C. 
3841(b)(2)) is amended by striking ``2002'' and inserting ``2011''.

SEC. 264. USE OF OTHER AGENCIES.

  Section 1242(a) of the Food Security Act of 1985 (16 U.S.C. 3842(a)) 
is amended to read as follows:
  ``(a) Principal Agency.--The Secretary shall use the Farm Service 
Agency in carrying out subtitles B and C, and subchapter B of chapter 
1, and chapters 2 and 4, of subtitle D.''.

SEC. 265. ADMINISTRATION AND TECHNICAL ASSISTANCE.

  (a) Broadening of Exception to Acreage Limitation.--Section 
1243(b)(2) of the Food Security Act of 1985 (16 U.S.C. 3843(b)(2)) is 
amended by striking 
``that--'' and all that follows and inserting ``that the action would 
not adversely affect the local economy of the county.''.
  (b) Rules Governing Provision of Technical Assistance.--Section 
1243(d) of the Food Security Act of 1985 (16 U.S.C. 3843(d)) is amended 
to read as follows:
  ``(d) Rules Governing Provision of Technical Assistance.--
          ``(1) In general.--The Secretary shall provide technical 
        assistance under this title to a producer eligible for such 
        assistance, by providing the assistance directly or, at the 
        option of the producer, through an approved third party if 
        available.
          ``(2) Amount.--The Secretary shall determine the amount of 
        technical assistance to be provided to a producer under this 
        title, and on making the determination, shall make the 
        necessary funds available to--
                  ``(A) if the producer has selected an approved third 
                party to provide the assistance, such approved third 
                party; or
                  ``(B) otherwise, the Natural Resources Conservation 
                Service.
          ``(3) Funding source; limitation.--
                  ``(A) Use of ccc funds.--Subject to subparagraph (B), 
                the Secretary may use not more than $100,000,000 of 
                funds of the Commodity Credit Corporation for each of 
                fiscal years 2002 through 2011 to carry out this 
                subsection.
                  ``(B) Limitation.--The total amount expended under 
                this subsection for fiscal years 2002 through 2011 may 
                not exceed $850,000,000.
          ``(4) Certification of third-party providers.--
                  ``(A) In general.--Not later than 6 months after the 
                date of the enactment of this Act, the Secretary of 
                Agriculture shall, by regulation, establish a system 
                for approving persons to provide technical assistance 
                pursuant to this title. In the system, the Secretary 
                shall give priority to a person who has a memorandum of 
                understanding regarding the provision of technical 
                assistance in place with the Secretary before the date 
                of the enactment of this subsection.
                  ``(B) Expertise required.--In prescribing such 
                regulations, the Secretary shall ensure that persons 
                with expertise in the technical aspects of conservation 
                planning, watershed planning, environmental 
                engineering, including commercial entities, nonprofit 
                entities, State or local governments or agencies, and 
                other Federal agencies, are eligible to become approved 
                providers of such technical assistance.''.
  (c) Duty of Secretary.--
          (1) In general.--Section 1770(d) of such Act (7 U.S.C. 
        2276(d)) is amended--
                  (A) by striking ``or'' at the end of paragraph (9);
                  (B) by striking the period at the end of paragraph 
                (11) and inserting 
                ``; or''; and
                  (C) by adding at the end the following:
          ``(12) title XII of this Act.''.
          (2) Conforming amendments.--Section 1770(e) of such Act (7 
        U.S.C. 2276(e)) is amended--
                  (A) by striking the subsection heading and inserting 
                ``Exceptions''; and
                  (B) by inserting ``, or as necessary to carry out a 
                program under title XII of this Act as determined by 
                the Secretary'' before the period.
  (d) Conforming Amendments.--
          (1) Highly erodible land conservation.--Section 1213(e) of 
        such Act (16 U.S.C. 3812a(e)) is amended to read as follows:
  ``(e) Technical Assistance.--A producer who is subject to this 
subtitle shall be eligible to receive technical assistance in 
accordance with section 1243(d) throughout the development, revision, 
and application of the conservation plan and any conservation system of 
the producer.''.
          (2) Conservation reserve program.--Section 1233 of such Act 
        (16 U.S.C. 3833) is amended--
                  (A) by inserting ``(a) In General.--'' before ``In 
                return'';
                  (B) by adding ``and'' at the end of paragraph (1);
                  (C) by striking ``; and'' at the end of paragraph 
                (2)(B) and inserting a period;
                  (D) by striking paragraph (3); and
                  (E) by adding after and below the end the following:
  ``(b) Technical Assistance.--An owner or operator who is 
participating in the program under this subtitle shall be eligible to 
receive technical assistance in accordance with section 1243(d) to 
assist the owner or operator in carrying out a contract entered into 
under section 1232.''.
          (3) Wetlands reserve program.--Section 1237C(b) of such Act 
        (16 U.S.C. 3837c(b)) is amended--
                  (A) in the subsection heading, by striking ``and 
                Technical Assistance''; and
                  (B) by striking paragraph (3) and inserting the 
                following:
          ``(2) Technical assistance.--A producer who is participating 
        in the program under this subtitle shall be eligible to receive 
        technical assistance in accordance with section 1243(d) to 
        assist the producer in complying with the terms of easements 
        and restoration cost share agreements under this subchapter.''.
          (4) Environmental quality incentives program.--
                  (A) In general.--Section 1240B of such Act (16 U.S.C. 
                3839aa-2) is amended--
                          (i) in subsection (a)(1), by striking 
                        ``technical assistance,''; and
                          (ii) in subsection (e)--
                                  (I) in the subsection heading, by 
                                striking ``and Technical Assistance''; 
                                and
                                  (II) by striking paragraph (3) and 
                                inserting the following:
          ``(2) Technical assistance.--A producer who is participating 
        in the program under this subtitle shall be eligible to receive 
        technical assistance in accordance with section 1243(d) to 
        assist the producer in writing and developing proposals and 
        plans for contracts under this chapter, and in the 
        implementation of structural practices and land management 
        practices covered by such contracts.''.
                  (B) Conforming amendments.--Section 1241(b) of such 
                Act (16 U.S.C. 3841(b)) is amended--
                          (i) in paragraph (1), by striking ``technical 
                        assistance,''; and
                          (ii) in paragraph (2), by striking 
                        ``technical assistance'' and all that follows 
                        through ``education'' and inserting ``cost-
                        share payments and incentive payments''.

                       Subtitle H--Other Programs

SEC. 271. WILDLIFE HABITAT INCENTIVES PROGRAM.

  Section 387(c) of the Federal Agriculture Improvement and Reform Act 
of 1996 (16 U.S.C. 3836a(c)) is amended to read as follows:
  ``(c) Funding.--To carry out this section, there shall be made 
available $25,000,000 for each of fiscal years 2002 through 2011, from 
funds made available from the Commodity Credit Corporation.''.

SEC. 272. FARMLAND PROTECTION PROGRAM.

  (a) Conservation of Historic and Archaeological Resources.--Section 
388(a) of the Federal Agriculture Improvement and Reform Act of 1996 
(16 U.S.C. 3830 note) is amended by inserting ``, or agricultural land 
that contains historic or archeological resources,'' after ``other 
productive soil''.
  (b) Funding.--Section 388(c) of such Act (16 U.S.C. 3830 note) is 
amended to read as follows:
  ``(c) Funding.--The Secretary shall use not more than $50,000,000 of 
the funds of the Commodity Credit Corporation in each of fiscal years 
2002 through 2011 to carry out this section.''.

SEC. 273. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

  (a) Purpose.--Section 1528 of the Agriculture and Food Act of 1981 
(16 U.S.C. 3451) is amended--
          (1) by striking the section heading and all that follows 
        through ``Sec. 1528. It is the purpose'' and inserting the 
        following:

``SEC. 1528. STATEMENT OF PURPOSE.

  ``It is the purpose''; and
          (2) by inserting ``through designated RC&D councils'' before 
        ``in rural areas''.
  (b) Definitions.--Section 1529 of such Act (16 U.S.C. 3452) is 
amended--
          (1) by striking the section heading and all that follows 
        through ``Sec. 1529. As used in this subtitle--'' and inserting 
        the following:

``SEC. 1529. DEFINITIONS.

  ``In this title:'';
          (2) in paragraph (1)--
                  (A) in the matter preceding subparagraph (A), by 
                inserting ``RC&D council'' before ``area plan'';
                  (B) in subparagraph (B), by striking ``through 
                control of nonpoint sources of pollution'';
                  (C) in subparagraph (C)--
                          (i) by striking ``natural resources based'' 
                        and inserting ``resource-based'';
                          (ii) by striking ``development of 
                        aquaculture,'';
                          (iii) by striking ``and satisfaction'' and 
                        inserting ``satisfaction''; and
                          (iv) by inserting ``food security, economic 
                        development, and education'' before the 
                        semicolon; and
                  (D) in subparagraph (D), by striking ``other'' and 
                inserting ``land management'';
          (3) in paragraph (3), by striking ``any State, local unit of 
        government, or local nonprofit organization'' and inserting 
        ``the designated RC&D council'';
          (4) by striking paragraphs (4) through (6) and inserting the 
        following:
          ``(4)(A) The term `financial assistance' means the Secretary 
        may--
                  ``(i) provide funds directly to RC&D councils or 
                associations of RC&D councils through grants, 
                cooperative agreements, and interagency agreements that 
                directly implement RC&D area plans; and
                  ``(ii) may join with other federal agencies through 
                interagency agreements and other arrangements as needed 
                to carry out the program's purpose.
          ``(B) Funds may be used for such things as--
                  ``(i) technical assistance;
                  ``(ii) financial assistance in the form of grants for 
                planning, analysis and feasibility studies, and 
                business plans;
                  ``(iii) training and education; and
                  ``(iv) all costs associated with making such services 
                available to RC&D councils or RC&D associations.
          ``(5) The term `RC&D council' means the responsible 
        leadership of the RC&D area. RC&D councils and associations are 
        non-profit entities whose members are volunteers and include 
        local civic and elected officials. Affiliations of RC&D 
        councils are formed in states and regions.'';
          (5) in paragraph (8), by inserting ``and federally recognized 
        Indian tribes'' before the period;
          (6) in paragraph (9), by striking ``works of improvement'' 
        and inserting ``projects'';
          (7) by redesignating paragraphs (7) through (9) as paragraphs 
        (6) through (8), respectively; and
          (8) by striking paragraph (10) and inserting the following:
          ``(9) The term `project' means any action taken by a 
        designated RC&D council that achieves any of the elements 
        identified under paragraph (1).''.
  (c) Establishment and Scope.--Section 1530 of such Act (16 U.S.C. 
3453) is amended--
          (1) by striking the section heading and all that follows 
        through ``Sec. 1530. The Secretary'' and inserting the 
        following:

``SEC. 1530. ESTABLISHMENT AND SCOPE.

  ``The Secretary''; and
          (2) by striking ``the technical and financial assistance 
        necessary to permit such States, local units of government, and 
        local nonprofit organizations'' and inserting ``through 
        designated RC&D councils the technical and financial assistance 
        necessary to permit such RC&D Councils''.
  (d) Selection of Designated Areas.--Section 1531 of such Act (16 
U.S.C. 3454) is amended by striking the section heading and all that 
follows through ``Sec. 1531. The Secretary'' and inserting the 
following:

``SEC. 1531. SELECTION OF DESIGNATED AREAS.

  ``The Secretary''.
  (e) Authority of Secretary.--Section 1532 of such Act (16 U.S.C. 
3455) is amended--
          (1) by striking the section heading and all that follows 
        through ``Sec. 1532. In carrying'' and inserting the following:

``SEC. 1532. AUTHORITY OF SECRETARY.

  ``In carrying'';
          (2) in each of paragraphs (1) and (3)--
                  (A) by striking ``State, local unit of government, or 
                local nonprofit organization'' and inserting ``RC&D 
                council''; and
                  (B) by inserting ``RC&D council'' before ``area 
                plan'';
          (3) in paragraph (2), by inserting ``RC&D council'' before 
        ``area plans''; and
          (4) in paragraph (4), by striking ``States, local units of 
        government, and local nonprofit organizations'' and inserting 
        ``RC&D councils or affiliations of RC&D councils''.
  (f) Technical and Financial Assistance.--Section 1533 of such Act (16 
U.S.C. 3456) is amended--
          (1) by striking the section heading and all that follows 
        through ``Sec. 1533. (a) Technical'' and inserting the 
        following:

``SEC. 1533. TECHNICAL AND FINANCIAL ASSISTANCE.

  ``(a) Technical'';
          (2) in subsection (a)--
                  (A) by striking ``State, local unit of government, or 
                local nonprofit organization to assist in carrying out 
                works of improvement specified in an'' and inserting 
                ``RC&D councils or affiliations of RC&D councils to 
                assist in carrying out a project specified in a RC&D 
                council'';
                  (B) in paragraph (1)--
                          (i) by striking ``State, local unit of 
                        government, or local nonprofit organization'' 
                        and inserting ``RC&D council or affiliate''; 
                        and
                          (ii) by striking ``works of improvement'' 
                        each place it appears and inserting 
                        ``project'';
                  (C) in paragraph (2)--
                          (i) by striking ``works of improvement'' and 
                        inserting ``project''; and
                          (ii) by striking ``State, local unit of 
                        government, or local nonprofit organization'' 
                        and inserting ``RC&D council'';
                  (C) in paragraph (3), by striking ``works of 
                improvement'' and all that follows and inserting 
                ``project concerned is necessary to accomplish and RC&D 
                council area plan objective'';
                  (D) in paragraph (4), by striking ``the works of 
                improvement provided for in the'' and inserting ``the 
                project provided for in the RC&D council'';
                  (E) in paragraph (5), by inserting ``federally 
                recognized Indian tribe'' before ``or local'' each 
                place it appears; and
                  (F) in paragraph (6), by inserting ``RC&D council'' 
                before ``area plan'';
          (3) in subsection (b), by striking ``works of improvement'' 
        and inserting ``project''; and
          (4) in subsection (c), by striking ``any State, local unit of 
        government, or local nonprofit organization to carry out any'' 
        and inserting ``RC&D council to carry out any RC&D council''.
  (g) Resource Conservation and Development Policy Board.--Section 
1534(b) of such Act (16 U.S.C. 3457(b)) is amended--
          (1) by striking the section heading and all that follows 
        through ``Sec. 1534. (a) The Secretary'' and inserting the 
        following:

``SEC. 1534. RESOURCE CONSERVATION AND DEVELOPMENT POLICY BOARD.

  ``(a) The Secretary''; and
          (2) by striking ``seven''.
  (h) Program Evaluation.--Section 1535 of such Act (16 U.S.C. 3458) is 
amended--
          (1) by striking the section heading and all that follows 
        through ``Sec. 1535. The Secretary'' and inserting the 
        following:

``SEC. 1535. PROGRAM EVALUATION.

  ``The Secretary'';
          (2) by inserting ``with assistance from RC&D councils'' 
        before ``provided'';
          (3) by inserting ``federally recognized Indian tribes,'' 
        before ``local units''; and
          (4) by striking ``1986'' and inserting ``2007''.
  (i) Limitation on Assistance.--Section 1536 of such Act (16 U.S.C. 
3458) is amended by striking the section heading and all that follows 
through ``Sec. 1536. The program'' and inserting the following:

``SEC. 1536. LIMITATION ON ASSISTANCE.

  ``The program''.
  (j) Supplemental Authority of the Secretary.--Section 1537 of such 
Act (16 U.S.C. 3460) is amended--
          (1) by striking the section heading and all that follows 
        through ``Sec. 1537. The authority'' and inserting the 
        following:

``SEC. 1537. SUPPLEMENTAL AUTHORITY OF SECRETARY.

  ``The authority''; and
          (2) by striking ``States, local units of government, and 
        local nonprofit organizations'' and inserting ``RC&D 
        councils''.
  (i) Authorization of Appropriations.--Section 1538 of such Act (16 
U.S.C. 3461) is amended--
          (1) by striking the section heading and all that follows 
        through ``Sec. 1538. There are'' and inserting the following:

``SEC. 1537. AUTHORIZATION OF APPROPRIATIONS.

  ``There are''; and
          (2) by striking ``for each of the fiscal years 1996 through 
        2002''.

SEC. 274. GRASSLAND RESERVE PROGRAM.

  Chapter 1 of subtitle D of title XII of the Food Security Act of 1985 
(16 U.S.C. 3830-3837f) is amended by adding at the end the following:

               ``Subchapter D--Grassland Reserve Program

``SEC. 1238. GRASSLAND RESERVE PROGRAM.

  ``(a) Establishment.--The Secretary, acting through the Farm Service 
Agency, shall establish a grassland reserve program (referred to in 
this subchapter as the `program') to assist owners in restoring and 
conserving eligible land described in subsection (c).
  ``(b) Enrollment Conditions.--
          ``(1) Maximum enrollment.--The total number of acres enrolled 
        in the program shall not exceed 2,000,000 acres, not more than 
        1,000,000 of which shall be restored grassland, and not more 
        than 1,000,000 of which shall be virgin (never cultivated) 
        grassland.
          ``(2) Methods of enrollment.--The Secretary shall enroll in 
        the program for a willing owner not less than 100 contiguous 
        acres of land west of the 90th meridian or not less than 50 
        contiguous acres of land east of the 90th meridian through 10-
        year, 15-year, or 20-year contracts.
  ``(c) Eligible Land.--Land shall be eligible to be enrolled in the 
program if the Secretary determines that--
          ``(1) the land is natural grass or shrubland; or
          ``(2) the land--
                  ``(A) is located in an area that has been 
                historically dominated by natural grass or shrubland; 
                and
                  ``(B) has potential to serve as habitat for animal or 
                plant populations of significant ecological value if 
                the land is restored to natural grass or shrubland.

``SEC. 1238A. CONTRACTS AND AGREEMENTS.

  ``(a) Requirements of Landowner.--To be eligible to enroll land in 
the program, the owner of the land shall--
          ``(1) agree to comply with the terms of the contract and 
        related restoration agreements; and
          ``(2) agree to the suspension of any existing cropland base 
        and allotment history for the land under any program 
        administered by the Secretary.
  ``(b) Terms of Contract.--A contract under subsection (a) shall--
          ``(1) permit--
                  ``(A) common grazing practices on the land in a 
                manner that is consistent with maintaining the 
                viability of natural grass and shrub species indigenous 
                to that locality;
                  ``(B) haying, mowing, or haying for seed production, 
                except that such uses shall not be permitted until 
                after the end of the nesting season for birds in the 
                local area which are in significant decline or are 
                conserved pursuant to State or Federal law, as 
                determined by the Natural Resources Conservation 
                Service State conservationist; and
                  ``(C) construction of fire breaks and fences, 
                including placement of the posts necessary for fences;
          ``(2) prohibit--
                  ``(A) the production of any agricultural commodity 
                (other than hay); and
                  ``(B) unless allowed under subsection (d), the 
                conduct of any other activity that would disturb the 
                surface of the land covered by the contract; and
          ``(3) include such additional provisions as the Secretary 
        determines are appropriate to carry out or facilitate the 
        administration of this subchapter.
  ``(c) Ranking Contract Applications.--
          ``(1) Establishment of criteria.--The Secretary shall 
        establish criteria to evaluate and rank applications for 
        contracts under this subchapter.
          ``(2) Emphasis.--In establishing the criteria, the Secretary 
        shall emphasize support for native grass and shrubland, grazing 
        operations, and plant and animal biodiversity.
  ``(d) Restoration Agreements.--The Secretary shall prescribe the 
terms by which grassland that is subject to a contract under the 
program shall be restored. The agreement shall include duties of the 
land owner and the Secretary, including the Federal share of 
restoration payments and technical assistance.
  ``(e) Violations.--On the violation of the terms or conditions of a 
contract or restoration agreement entered into under this section--
          ``(1) the contract shall remain in force; and
          ``(2) the Secretary may require the owner to refund all or 
        part of any payments received by the owner under this 
        subchapter, with interest on the payments as determined 
        appropriate by the Secretary.

``SEC. 1238B. DUTIES OF SECRETARY.

  ``(a) In General.--In return for the granting of a contract by an 
owner under this subchapter, the Secretary shall make contract payments 
and payments of the Federal share of restoration and provide technical 
assistance to the owner in accordance with this section.
  ``(b) Contract Payments.--In return for the granting of contract by 
an owner under this subchapter, the Secretary shall make annual 
contract payments to the owner in an amount that is not more than 75 
percent of the grazing value of the land.
  ``(c) Federal Share of Restoration.--The Secretary shall make 
payments to the owner of not more than--
          ``(1) in the case of virgin (never cultivated) grassland, 90 
        percent of the costs of carrying out measures and practices 
        necessary to restore grassland functions and values; or
          ``(2) in the case of restored grassland, 75 percent of such 
        costs.
  ``(d) Technical Assistance.--A landowner who is receiving a benefit 
under this subchapter shall be eligible to receive technical assistance 
in accordance with section 1243(d) to assist the owner or operator in 
carrying out a contract entered into under this subchapter.
  ``(e) Payments to Others.--If an owner who is entitled to a payment 
under this subchapter dies, becomes incompetent, is otherwise unable to 
receive the payment, or is succeeded by another person who renders or 
completes the required performance, the Secretary shall make the 
payment, in accordance with regulations promulgated by the Secretary 
and without regard to any other provision of law, in such manner as the 
Secretary determines is fair and reasonable in light of all the 
circumstances.''.

SEC. 275. FARMLAND STEWARDSHIP PROGRAM.

  Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3830-3839bb) is amended by inserting after chapter 1 (and the matter 
added by section 274 of this Act) the following:

               ``CHAPTER 2--FARMLAND STEWARDSHIP PROGRAM

``SEC. 1239. DEFINITIONS.

  ``In this chapter:
          ``(1) Agreement.--The terms `farmland stewardship agreement' 
        and `agreement' mean a stewardship contract authorized by this 
        chapter.
          ``(2) Contracting agency.--The term `contracting agency' 
        means a local conservation district, resource conservation and 
        development council, local office of the Department of 
        Agriculture, other participating government agency, or other 
        nongovernmental organization that is designated by the 
        Secretary to enter into farmland stewardship agreements on 
        behalf of the Secretary.
          ``(3) Eligible agricultural lands.--The term `eligible 
        agricultural lands' means private lands that are in primarily 
        native or natural condition or are classified as cropland, 
        pastureland, grazing lands, timberlands, or other lands as 
        specified by the Secretary that--
                  ``(A) contain wildlife habitat, wetlands, or other 
                natural resources; or
                  ``(B) provide benefits to the public at large, such 
                as--
                          ``(i) conservation of soil, water, and 
                        related resources;
                          ``(ii) water quality protection or 
                        improvement;
                          ``(iii) control of invasive and exotic 
                        species;
                          ``(iv) wetland restoration, protection, and 
                        creation; and
                          ``(v) wildlife habitat development and 
                        protection;
                          ``(vi) preservation of open spaces, or prime, 
                        unique, or other productive farm lands; and
                          ``(vii) and other similar conservation 
                        purposes.
          ``(4) Farmland stewardship program; program.--The terms 
        `Farmland Stewardship Program' and `Program' mean the 
        conservation program of the Department of Agriculture 
        established by this chapter.

``SEC. 1239A. ESTABLISHMENT AND PURPOSE OF PROGRAM.

  ``(a) Establishment.--The Secretary shall establish a conservation 
program of the Department of Agriculture, to be known as the Farmland 
Stewardship Program, that is designed to more precisely tailor and 
target existing conservation programs to the specific conservation 
needs and opportunities presented by individual parcels of eligible 
agricultural lands.
  ``(b) Relation to Other Conservation Programs.--Under the Farmland 
Stewardship Program, the Secretary may implement, or combine together, 
the features of--
          ``(1) the Wetlands Reserve Program;
          ``(2) the Wildlife Habitat Incentives Program;
          ``(3) the Forest Land Enhancement Program;
          ``(4) the Farmland Protection Program; or
          ``(5) other conservation programs administered by other 
        Federal agencies and State and local government entities, where 
        feasible and with the consent of the administering agency or 
        government.
  ``(c) Funding Sources.--
          ``(1) In general.--The Farmland Stewardship Program and 
        agreements under the Program shall be funded by the Secretary 
        using--
                  ``(A) the funding authorities of the conservation 
                programs that are implemented in whole, or in part, 
                through the use of agreements or easements; and
                  ``(B) such funds as are provided to carry out the 
                programs specified in paragraphs (1) through (4) of 
                subsection (b).
          ``(2) Cost-sharing.--It shall be a requirement of the 
        Farmland Stewardship Program that the majority of the funds to 
        carry out the Program must come from other existing 
        conservation programs, which may be Federal, State, regional, 
        local, or private, that are combined into and made a part of an 
        agreement, or from matching funding contributions made by 
        State, regional, or local agencies and divisions of government 
        or from private funding sources.
  ``(d) Personnel Costs.--The Secretary may use the Natural Resources 
Conservation Service to carry out the Farmland Stewardship Program.
  ``(e) Technical Assistance.--An owner or operator who is receiving a 
benefit under this chapter shall be eligible to receive technical 
assistance in accordance with section 1243(d) to assist the owner or 
operator in carrying out a contract entered into under this chapter.

``SEC. 1239B. USE OF FARMLAND STEWARDSHIP AGREEMENTS.

  ``(a) Agreements Authorized.--The Secretary shall carry out the 
Farmland Stewardship Program by entering into stewardship contracts as 
determined by the Secretary, to be known as farmland stewardship 
agreements, with the owners or operators of eligible agricultural lands 
to maintain and protect for the natural and agricultural resources on 
the lands.
  ``(b) Basic Purposes.--An agreement with the owner or operator of 
eligible agricultural lands shall be used--
          ``(1) to negotiate a mutually agreeable set of guidelines, 
        practices, and procedures under which conservation practices 
        will be provided by the owner or operator to protect, maintain, 
        and, where possible, improve, the natural resources on the 
        lands covered by the agreement in return for annual payments to 
        the owner or operator;
          ``(2) to implement a conservation program or series of 
        programs where there is no such program or to implement 
        conservation management activities where there is no such 
        activity; and
          ``(3) to expand conservation practices and resource 
        management activities to a property where it is not possible at 
        the present time to negotiate or reach agreement on a public 
        purchase of a fee-simple or less-than-fee interest in the 
        property for conservation purposes.
  ``(c) Modification of Other Conservation Program Elements.--If most, 
but not all, of the limitations, conditions, and requirements of a 
conservation program that is implemented in whole, or in part, through 
the Farmland Stewardship Program are met with respect to a parcel of 
eligible agricultural lands, and the purposes to be achieved by the 
agreement to be entered into for such lands are consistent with the 
purposes of the conservation program, then the Secretary may waive any 
remaining limitations, conditions, or requirements of the conservation 
program that would otherwise prohibit or limit the agreement.
  ``(d) State and Local Conservation Priorities.--To the maximum extent 
practicable, agreements shall address the conservation priorities 
established by the State and locality in which the eligible 
agricultural lands are located.
  ``(e) Watershed Enhancement.--To the extent practicable, the 
Secretary shall encourage the development of Farmland Stewardship 
Program applications on a watershed basis.

``SEC. 1239C. PARTNERSHIP APPROACH TO PROGRAM.

  ``(a) Authority of Secretary Exercised Through Partnerships.--The 
Secretary may administer agreements under the Farmland Stewardship 
Program in partnership with other Federal, State, and local agencies 
whose programs are incorporated into the Program under section 1239A.
  ``(b) Designation and Use of Contracting Agencies.--Subject to 
subsection (c), the Secretary may authorize a local conservation 
district, resource conservation & development district, nonprofit 
organization, or local office of the Department of Agriculture or other 
participating government agency to enter into and administer agreements 
under the Program as a contracting agency on behalf of the Secretary.
  ``(c) Conditions on Designation.--The Secretary may designate an 
eligible district or office as a contracting agency under subsection 
(b) only if the district of office--
          ``(1) submits a written request for such designation to the 
        Secretary;
          ``(2) affirms that it is willing to follow all guidelines for 
        executing and administering an agreement, as promulgated by the 
        Secretary;
          ``(3) demonstrates to the satisfaction of the Secretary that 
        it has established working relationships with owners and 
        operators of eligible agricultural lands, and based on the 
        history of these working relationships, demonstrates that it 
        has the ability to work with owners and operators of eligible 
        agricultural lands in a cooperative manner;
          ``(4) affirms its responsibility for preparing all 
        documentation for the agreement, negotiating its terms with an 
        owner or operator, monitoring compliance, making annual reports 
        to the Secretary, and administering the agreement throughout 
        its full term; and
          ``(5) demonstrates to the satisfaction of the Secretary that 
        it has or will have the necessary staff resources and expertise 
        to carry out its responsibilities under paragraphs (3) and (4).

``SEC. 1239D. PARTICIPATION OF OWNERS AND OPERATORS OF ELIGIBLE 
                    AGRICULTURAL LANDS.

  ``(a) Application and Approval Process.--To participate in the 
Farmland Stewardship Program, an owner or operator of eligible 
agricultural lands shall--
          ``(1) submit to the Secretary an application indicating 
        interest in the Program and describing the owner's or 
        operator's property, its resources, and their ecological and 
        agricultural values;
          ``(2) submit to the Secretary a list of services to be 
        provided, a management plan to be implemented, or both, under 
        the proposed agreement;
          ``(3) if the application and list are accepted by the 
        Secretary, enter into an agreement that details the services to 
        be provided, management plan to be implemented, or both, and 
        requires compliance with the other terms of the agreement.
  ``(b) Application on Behalf of an Owner or Operator.--A designated 
contracting agency may submit the application required by subsection 
(a) on behalf of an owner or operator by if the contracting agency has 
secured the consent of the owner or operator to enter into an 
agreement.''.

SEC. 276. SMALL WATERSHED REHABILITATION PROGRAM.

  Section 14(h) of the Watershed Protection and Flood Prevention Act 
(16 U.S.C. 1012(h)) is amended--
          (1) by adding ``and'' at the end of paragraph (1); and
          (2) by striking all that follows paragraph (1) and inserting 
        the following:
          ``(2) $15,000,000 for fiscal year 2002 and each succeeding 
        fiscal year.''.

                   Subtitle I--Availability of Funds

SEC. 281. AVAILABILITY OF FUNDS APPROPRIATED PURSUANT TO THE SOIL 
                    CONSERVATION AND DOMESTIC ALLOTMENT ACT.

  Section 6 of the Soil Conservation and Domestic Allotment Act (16 
U.S.C. 590f) is amended--
          (1) in the 1st undesignated paragraph, by inserting ``(a)'' 
        before ``There'';
          (2) in the 2nd undesignated paragraph, by inserting ``(b)'' 
        before ``Appropriations''; and
          (3) by adding at the end the following:
  ``(c) Funds made available to carry out the purposes of this Act may 
be used, to the extent determined by the Secretary of Agriculture to be 
necessary, by the agency of the Department of Agriculture to which the 
funds are appropriated, to provide technical assistance to owners and 
operators of land to achieve the objectives of any conservation program 
administered by the Secretary of Agriculture.''.

                          Subtitle J--Repeals

SEC. 291. PROVISIONS OF THE FOOD SECURITY ACT OF 1985.

  (a) Wetlands Mitigation Banking Program.--Section 1222 of the Food 
Security Act of 1985 (16 U.S.C. 3822) is amended by striking subsection 
(k).
  (b) Payment Limitations Under the Conservation Reserve Program.--
Section 1234(f) of such Act (16 U.S.C. 3837d(c)) is amended by striking 
paragraph (3).
  (c) Base History Provision.--
          (1) Repeal.--Section 1236 of such Act (16 U.S.C. 3836) is 
        repealed.
          (2) Conforming amendment.--Section 1232(a)(5) of such Act (16 
        U.S.C. 3832(a)(5)) is amended by striking ``in addition to the 
        remedies provided under section 1236(d),''.
  (d) Payment Limitations Under the Wetlands Reserve Program.--Section 
1237D(c) of such Act (16 U.S.C. 3837d(c)) is amended by striking 
paragraph (3).
  (e) Environmental Easement Program.--
          (1) Repeal.--Chapter 3 of subtitle D of title XII of such Act 
        (16 U.S.C. 3839-3839d) is repealed.
          (2) Conforming amendment.--Section 1243(a)(3) of such Act (16 
        U.S.C. 3843(a)(3)) is amended by striking ``or 3''.
  (f) Conservation Farm Option.--Chapter 5 of subtitle D of title XII 
of such Act (16 U.S.C. 3839bb) is repealed.
  (g) Tree Planting Initiative.--Section 1256 of such Act (16 U.S.C. 
2101 note) is repealed.

SEC. 292. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDATION ACT.

  Subtitle F of title III of the Federal Agriculture Improvement and 
Reform Act of 1996 (16 U.S.C. 5801-5809) is repealed.

                            TITLE III--TRADE

SEC. 301. MARKET ACCESS PROGRAM.

  (a) In General.--Section 211(c)(1) of the Agricultural Trade Act of 
1978 (7 U.S.C. 5641(c)(1)) is amended--
          (1) by striking ``and not more'' and inserting ``not more'';
          (2) by inserting ``and not more than $200,000,000 for each of 
        fiscal years 2002 through 2011,'' after ``2002''; and
          (3) by striking ``2002'' and inserting ``2001''.
  (b) Commodity Eligibility.--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. 302. FOOD FOR PROGRESS.

  (a) In General.--Subsections (f)(3), (g), (k), and (l)(1) of section 
1110 of the Food Security Act of 1985 (7 U.S.C. 1736o) are each amended 
by striking ``2002'' and inserting ``2011''.
  (b) Increase in Funding.--Section 1110(l)(1) of the Food Security Act 
of 1985 (7 U.S.C.1736o(l)(1)) is amended by striking ``fiscal year 
1999'' and inserting ``fiscal years 2002 through 2011''.
  (c) Exclusion From Limitation.--Section 1110(e)(2) of the Food 
Security Act of 1985 (&. U.S.C. 1736o(e)(2)) is amended by inserting 
``, and subsection (g) does not apply to such commodities furnished on 
a grant basis or on credit terms under title I of the Agricultural 
Trade Development Act of 1954'' before the final period.
  (d) Transportation Costs.--Section 1110(f)(3) of the Food Security 
Act of 1985 (7 U.S.C. 1736o) is amended by striking ``$30,000,000'' and 
inserting ``$35,000,000''.
  (e) Multiyear Basis.--Section 1110(j) of the Food Security Act of 
1985 (7 U.S.C. 17360(j)) is amended--
          (1) by striking ``may'' and inserting ``is encouraged''; and
          (2) by inserting ``to'' before ``approved''.
  (f) New Provisions.--Section 1110 of the Food Security Act of 1985 (7 
U.S.C. 17360) is amended by adding at the end the following:
  ``(p) The Secretary is encouraged to finalize program agreements and 
resource requests for programs under this section before the beginning 
of the relevant fiscal year. By November 1 of the relevant fiscal year, 
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 list of approved programs, countries, and 
commodities, and the total amounts of funds approved for transportation 
and administrative costs, under this section.''.

SEC. 303. 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 inserting ``and for each fiscal year 
thereafter through fiscal year 2011'' after ``2002''.

SEC. 304. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

  (a) In General.--Section 703 of the Agricultural Trade Act of 1978 (7 
U.S.C. 5723) is amended--
          (1) by inserting ``(a) Prior Years.--'';
          (1) by striking ``2002'' and inserting ``2001''; and
          (2) by adding at the end the following new subsection:
  ``(b) Fiscal 2002 and Later.--For each of fiscal years 2002 through 
2011 there are authorized to be appropriated such sums as may be 
necessary to carry out this title, and, in addition to any sums so 
appropriated, the Secretary shall use $35,000,000 of the funds of, or 
an equal value of the commodities of, the Commodity Credit Corporation 
to carry out this title.''.
  (b) Value Added Products.--
          (1) In general.--Section 702(a) of the Agricultural Trade Act 
        of 1978 (7 U.S.C. 5721 et seq.) is amended by inserting ``, 
        with a significant emphasis on the importance of the export of 
        value-added United States agricultural products into emerging 
        markets'' after ``products''.
          (2) Report to congress.--Section 702 of the Agricultural 
        Trade Act of 1978 (7 U.S.C. 5722) is amended by adding at the 
        end the following:
  ``(c) Report to Congress.--The Secretary shall report annually to 
Congress the amount of funding provided, types of programs funded, the 
value added products that have been targeted, and the foreign markets 
for those products that have been developed.''.

SEC. 305. EXPORT CREDIT GUARANTEE PROGRAM.

  (a) Reauthorization.--Section 211(b)(1) of the Agricultural Trade Act 
of 1978 (7 U.S.C. 5641(b)(1)) is amended by striking ``2002'' and 
inserting ``2011''.
  (b) Processed and High Value Products.--Section 202(k)(1) of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5622(k)(1)) is amended by 
striking ``, 2001, and 2002'' and inserting ``through 2011''.

SEC. 306. FOOD FOR PEACE (PL 480).

  The Agricultural Trade Development and Assistance Act of 1954 (7 
U.S.C. 1691 et seq.) is amended--
          (1) in section 204(a), by striking ``2002'' each place it 
        appears and inserting ``2011'';
          (2) in section 208(f), by striking ``2002'' and inserting 
        ``2011'';
          (3) in section 407(c)(4), by striking ``2001 and 2002'' and 
        inserting ``2001 through 2011'';
          (4) in section 408, by striking ``2002'' and inserting 
        ``2011''; and
          (5) in section 501(c), by striking ``2002'' and inserting 
        ``2011''.

SEC. 307. EMERGING MARKETS.

  Section 1542 of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7. U.S.C. 5622n) is amended in subsections (a) and (d)(1)(A)(i), 
by striking ``2002'' and inserting ``2011''.

SEC. 308. BILL EMERSON HUMANITARIAN TRUST.

  Subsections (b)(2)(i), (h)(1), and (h)(2) of section 302 of the Bill 
Emerson Humanitarian Trust Act (7 U.S.C. 1736f-1) are each amended by 
striking ``2002'' and inserting ``2011''.

SEC. 309. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

  (a) Establishment.--The Secretary of Agriculture shall establish an 
export assistance program (referred to in this section as the 
``program'') to address unique barriers that prohibit or threaten the 
export of United States specialty crops.
  (b) Purpose.--The program shall provide direct assistance through 
public and private sector projects and technical assistance to remove, 
resolve, or mitigate sanitary and phytosanitary and related barriers to 
trade.
  (c) Priority.--The program shall address time sensitive and strategic 
market access projects based on--
          (1) trade effect on market retention, market access, and 
        market expansion; and
          (2) trade impact.
  (d) Funding.--The Secretary shall make available $3,000,000 for each 
of fiscal years 2002 through 2011 of the funds of, or an equal value of 
commodities owned by, the Commodity Credit Corporation.

                      TITLE IV--NUTRITION PROGRAMS

                     Subtitle A--Food Stamp Program

SEC. 401. SIMPLIFIED DEFINITION OF INCOME.

  Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is 
amended--
          (1) in paragraph (3)--
                  (A) by striking ``and (C)'' and inserting ``(C)''; 
                and
                  (B) by inserting after ``premiums,'' the following:
``(D) to the extent that any other educational loans on which payment 
is deferred, grants, scholarships, fellowships, veterans' educational 
benefits, and the like, are required to be excluded under title XIX of 
the Social Security Act, the state agency may exclude it under this 
subsection,'';
          (2) by striking ``and (15)'' and inserting ``(15)'';
          (3) by inserting before the period at the end the following:
``; (16) any state complementary assistance program payments that are 
excluded pursuant to subsections (a) and (b) of section 1931 of title 
XIX of the Social Security Act; and (17) at the option of the State 
agency, any types of income that the State agency does not consider 
when determining eligibility for cash assistance under a program funded 
under part A of title IV of the Social Security Act (42 U.S.C. 601 et 
seq.) or medical assistance under section 1931 of the Social Security 
Act (42 U.S.C. 1396u-1), except that this paragraph shall not authorize 
a State agency to exclude earned income, payments under title I, II, 
IV, X, XIV, or XVI of the Social Security Act, or such other types of 
income whose consideration the Secretary determines essential to 
equitable determinations of eligibility and benefit levels except to 
the extent that those types of income may be excluded under other 
paragraphs of this subsection''.

SEC. 402. STANDARD DEDUCTION.

  Section 5(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(1)) 
is amended--
          (1) by striking ``of $134, $229, $189, $269, and $118'' and 
        inserting ``equal to 9.7 percent of the eligibility limit 
        established under section 5(c)(1) for fiscal year 2002 but not 
        more than 9.7 percent of the eligibility limit established 
        under section 5(c)(1) for a household of six for fiscal year 
        2002 nor less than $134, $229, $189, $269, and $118''; and
          (2) by inserting before the period at the end the following:
        ``, except that the standard deduction for Guam shall be 
        determined with reference to 2 times the eligibility limits 
        under section 5(c)(1) for fiscal year 2002 for the 48 
        contiguous states and the District of Columbia''.

SEC. 403. TRANSITIONAL FOOD STAMPS FOR FAMILIES MOVING FROM WELFARE.

  (a) In General.--Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 
2020) is amended by adding at the end the following:
  ``(s) Transitional Benefits Option..--
          ``(1) In general.--A State may provide transitional food 
        stamp benefits to a household that is no longer eligible to 
        receive cash assistance under a State program funded under part 
        A of title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.).
          ``(2) Transitional benefits period.--Under paragraph (1), a 
        household may continue to receive food stamp benefits for a 
        period of not more than 6 months after the date on which cash 
        assistance is terminated.
          ``(3) Amount.--During the transitional benefits period under 
        paragraph (2), a household shall receive an amount equal to the 
        allotment received in the month immediately preceding the date 
        on which cash assistance is terminated. A household receiving 
        benefits under this subsection may apply for recertification at 
        any time during the transitional benefit period. If a household 
        reapplies, its allotment shall be determined without regard to 
        this subsection for all subsequent months.
          ``(4) Determination of future eligibility.--In the final 
        month of the transitional benefits period under paragraph (2), 
        the State agency may--
                  ``(A) require a household to cooperate in a 
                redetermination of eligibility to receive an 
                authorization card; and
                  ``(B) renew eligibility for a new certification 
                period for the household without regard to whether the 
                previous certification period has expired.
          ``(5) Limitation.--A household sanctioned under section 6, or 
        for a failure to perform an action required by Federal, State, 
        or local law relating to such cash assistance program, shall 
        not be eligible for transitional benefits under this 
        subsection.''.
  (b) Conforming Amendments.--(1) Section 3(c) of the Food Stamp Act of 
1977 (7 U.S.C. 2012(c)) is amended by adding at the end the following: 
``The limits in this section may be extended until the end of any 
transitional benefit period established under section 11(s).''.
  (2) Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 2015(c)) is 
amended by striking ``No household'' and inserting ``Except in a case 
in which a household is receiving transitional benefits during the 
transitional benefits period under section 11(s), no household''.

SEC. 404. QUALITY CONTROL SYSTEMS.

  (a) Targeted Quality Control System.--Section 16(c) of the Food Stamp 
Act of 1977 (7 U.S.C. 2025(c)) is amended--
          (1) in paragraph (1)(C)--
                  (A) in the matter preceding clause (i), by inserting 
                ``the Secretary determines that a 95 percent 
                statistical probability exists that for the 3d 
                consecutive year'' after ``year in which''; and
                  (B) in clause (i)(II)(aa)(bbb) by striking ``the 
                national performance measure for the fiscal year'' and 
                inserting ``10 percent'';
          (2) in the 1st sentence of paragraph (4)--
                  (A) by striking ``or claim'' and inserting ``claim''; 
                and
                  (B) by inserting ``or performance under the measures 
                established under paragraph (10),'' after ``for payment 
                error,'';
          (3) in paragraph (5), by inserting ``to comply with paragraph 
        (10) and'' before ``to establish'';
          (4) in the 1st sentence of paragraph (6), by inserting ``one 
        percentage point more than'' after ``measure that shall be''; 
        and
          (5) by inserting at the end the following:
  ``(10)(A) In addition to the measures established under paragraph 
(1), the Secretary shall measure the performance of State agencies in 
each of the following regards--
          ``(i) compliance with the deadlines established under 
        paragraphs (3) and (9) of section 11(e); and
          ``(ii) the percentage of negative eligibility decisions that 
        are made correctly.
  ``(B) For each fiscal year, the Secretary shall make excellence bonus 
payments of $1,000,000 each to the 5 States with the highest combined 
performance in the 2 measures in subparagraph (A) and to the 5 States 
whose combined performance under the 2 measures in subparagraph (A) 
most improved in such fiscal year.
  ``(C) For any fiscal year in which the Secretary determines that a 95 
percent statistical probability exists that a State agency's 
performance with respect to any of the 2 performance measures 
established in subparagraph (A) is substantially worse than a level the 
Secretary deems reasonable, other than for good cause shown, the 
Secretary shall investigate that State agency's administration of the 
food stamp program. If this investigation determines that the State's 
administration has been deficient, the Secretary shall require the 
State agency to take prompt corrective action.''.
  (b) Implementation.--The amendment made by subsection (a)(5) shall 
apply to all fiscal years beginning on or after October 1, 2001, and 
ending before October 1, 2007. All other amendments made by this 
section shall apply to all fiscal years beginning on or after October 
1, 1999.

SEC. 405. SIMPLIFIED APPLICATION AND ELIGIBILITY DETERMINATION SYSTEMS.

  Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) is amended 
by inserting at the end the following:
  ``(l) The Secretary shall expend up to $10 million in each fiscal 
year to pay 100 percent of the costs of State agencies to develop and 
implement simple application and eligibility determination systems.''.

SEC. 406. AUTHORIZATION OF APPROPRIATIONS.

  (a) 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 year 2002'' 
        and inserting ``each of the fiscal years 2003 through 2011''; 
        and
          (2) in subparagraph (B) by striking ``2002'' and inserting 
        ``2011''.
  (b) Cost Allocation.--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 ``2002'' and inserting 
        ``2011''; and
          (2) in subparagraph (B)(ii) by striking ``2002'' and 
        inserting ``2011''.
  (c) 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 
``2002'' and inserting ``2011''.
  (d) Outreach Demonstration Projects.--Section 17(i)(1)(A) of the Food 
Stamp Act of 1977 (7 U.S.C. 2026(i)(1)(A)) is amended by striking 
``1992 through 2002'' and inserting ``2003 through 2011''.
  (e) 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 ``1996 
through 2002'' and inserting ``2003 through 2011''.
  (f) Puerto Rico.--Section 19(a)(1)(A) of the Food Stamp Act of 1977 
(7 U.S.C. 2028(a)(1)(A)) is amended--
          (1) in clause (ii) by striking ``and'' at the end;
          (2) in clause (iii) by adding ``and'' at the end; and
          (3) by inserting after clause (iii) the following:
          ``(iv) for each of fiscal years 2003 through 2011, the amount 
        equal to the amount required to be paid under this subparagraph 
        for the preceding fiscal year, as adjusted by the percentage by 
        which the thrifty food plan is adjusted under section 3(o)(4) 
        for the current fiscal year for which the amount is determined 
        under this clause;''.
  (g) Territory of American Samoa.--Section 24 of the Food Stamp Act of 
1977 (7 U.S.C. 2033) is amended by striking ``1996 through 2002'' and 
inserting ``2003 through 2011''.
  (h) Assistance for Community Food Projects.--Section 25(b)(2) of the 
Food Stamp Act of 1977 (7 U.S.C. 2034(b)(2)) is amended--
          (1) in subparagraph (A) by striking ``and'' at the end;
          (2) in subparagraph (B)--
                  (A) by striking ``2002'' and inserting ``2001''; and
                  (B) by adding ``and'' at the end; and
          (3) by inserting after subparagraph (B) the following:
                  ``(C) $7,500,000 for each of the fiscal years 2002 
                through 2011.''.
  (i) Availability of Commodities for the Emergency Food Assistance 
Program.--Section 27 of the Food Stamp Act of 1977 (7 U.S.C. 2036) is 
amended--
          (1) in subsection (a)--
                  (A) by striking ``1997 through 2002'' and inserting 
                ``2002 through 2011''; and
                  (B) by striking ``$100,000,000'' and inserting 
                ``$140,000,000''; and
          (2) by adding at the end the following:
  ``(c) Use of Funds for Related Costs.--For each of the fiscal years 
2002 through 2011, the Secretary shall use $10,000,000 of the funds 
made available under subsection (a) to pay for the direct and indirect 
costs of the States related to the processing, storing, transporting, 
and distributing to eligible recipient agencies of commodities 
purchased by the Secretary under such subsection and commodities 
secured from other sources, including commodities secured by gleaning 
(as defined in section 111 of the Hunger Prevention Act of 1988 (7 
U.S.C. 612c note)).''.
  (j) Special Effective Date.--The amendments made by subsections (h) 
and (i) shall take effect of October 1, 2001.

                   Subtitle B--Commodity Distribution

SEC. 441. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL NUTRITION 
                    PROJECTS.

  Section 1114(a) of the Agriculture and Food Act of 1981 (7 U.S.C. 
1431e) is amended by striking ``2002'' and inserting ``2011''.

SEC. 442. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

  The Agriculture and Consumer Protection Act of 1975 (7 U.S.C. 612c 
note) is amended--
          (1) in section 4(a) by striking ``1991 through 2002'' and 
        inserting ``2003 through 2011''; and
          (2) in subsections (a)(2) and (d)(2) of section 5 by striking 
        ``1991 through 2002'' and inserting ``2003 through 2011''.

SEC. 443. EMERGENCY FOOD ASSISTANCE.

  The 1st sentence of section 204(a)(1) of the Emergency Food 
Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is amended--
          (1) by striking ``1991 through 2002'' and inserting ``2003 
        through 2011'';
          (2) by striking ``administrative'', and
          (3) by inserting ``storage,'' after ``processing,''.

                  Subtitle C--Miscellaneous Provisions

SEC. 461. HUNGER FELLOWSHIP PROGRAM.

  (a) Short Title; Findings.--
          (1) Short title.--This section may be cited as the 
        ``Congressional Hunger Fellows Act of 2001''.
          (2) Findings.--The Congress finds as follows:
                  (A) There is a critical need for compassionate 
                individuals who are committed to assisting people who 
                suffer from hunger as well as a need for such 
                individuals to initiate and administer solutions to the 
                hunger problem.
                  (B) 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 the ideals of the United States Congress.
                  (C) 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.
                  (D) 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.
                  (E) These 2 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.
  (b) Establishment.--There is established as an independent entity of 
the legislative branch of the United States Government the 
Congressional Hunger Fellows Program (hereinafter in this section 
referred to as the ``Program'').
  (c) Board of Trustees.--
          (1) In general.--The Program shall be subject to the 
        supervision and direction of a Board of Trustees.
          (2) Members of the board of trustees.--
                  (A) Appointment.--The Board shall be composed of 6 
                voting members appointed under clause (i) and 1 
                nonvoting ex officio member designated in clause (ii) 
                as follows:
                          (i) Voting members.--(I) The Speaker of the 
                        House of Representatives shall appoint 2 
                        members.
                          (II) The minority leader of the House of 
                        Representatives shall appoint 1 member.
                          (III) The majority leader of the Senate shall 
                        appoint 2 members.
                          (IV) The minority leader of the Senate shall 
                        appoint 1 member.
                          (ii) Nonvoting member.--The Executive 
                        Director of the program shall serve as a 
                        nonvoting ex officio member of the Board.
                  (B) Terms.--Members of the Board shall serve a term 
                of 4 years.
                  (C) Vacancy.--
                          (i) Authority of board.--A vacancy in the 
                        membership of the Board does not affect the 
                        power of the remaining members to carry out 
                        this section.
                          (ii) Appointment of successors.--A vacancy in 
                        the membership of the Board shall be filled in 
                        the same manner in which the original 
                        appointment was made.
                          (iii) Incomplete term.--If a member of the 
                        Board does not serve the full term applicable 
                        to the member, the individual appointed to fill 
                        the resulting vacancy shall be appointed for 
                        the remainder of the term of the predecessor of 
                        the individual.
                  (D) Chairperson.--As the first order of business of 
                the first meeting of the Board, the members shall elect 
                a Chairperson.
                  (E) Compensation.--
                          (i) In general.--Subject to clause (ii), 
                        members of the Board may not receive 
                        compensation for service on the Board.
                          (ii) Travel.--Members of the Board may be 
                        reimbursed for travel, subsistence, and other 
                        necessary expenses incurred in carrying out the 
                        duties of the program.
          (3) Duties.--
                  (A) Bylaws.--
                          (i) Establishment.--The Board shall establish 
                        such bylaws and other regulations as may be 
                        appropriate to enable the Board to carry out 
                        this section, including the duties described in 
                        this paragraph.
                          (ii) Contents.--Such bylaws and other 
                        regulations shall include provisions--
                                  (I) for appropriate fiscal control, 
                                funds accountability, and operating 
                                principles;
                                  (II) to prevent any conflict of 
                                interest, or the appearance of any 
                                conflict of interest, in the 
                                procurement and employment actions 
                                taken by the Board or by any officer or 
                                employee of the Board and in the 
                                selection and placement of individuals 
                                in the fellowships developed under the 
                                program;
                                  (III) for the resolution of a tie 
                                vote of the members of the Board; and
                                  (IV) for authorization of travel for 
                                members of the Board.
                          (iii) Transmittal to congress.--Not later 
                        than 90 days after the date of the first 
                        meeting of the Board, the Chairperson of the 
                        Board shall transmit to Congress a copy of such 
                        bylaws.
                  (B) Budget.--For each fiscal year the program is in 
                operation, the Board shall determine a budget for the 
                program for that fiscal year. All spending by the 
                program shall be pursuant to such budget unless a 
                change is approved by the Board.
                  (C) Process for selection and placement of fellows.--
                The Board shall review and approve the process 
                established by the Executive Director for the selection 
                and placement of individuals in the fellowships 
                developed under the program.
                  (D) Allocation of funds to fellowships.--The Board of 
                Trustees shall determine the priority of the programs 
                to be carried out under this section and the amount of 
                funds to be allocated for the Emerson and Leland 
                fellowships.
  (d) Purposes; Authority of Program.--
          (1) Purposes.--The purposes of the program are--
                  (A) to encourage future leaders of the United States 
                to pursue careers in humanitarian service, to recognize 
                the needs of people who are hungry and poor, and to 
                provide assistance and compassion for those in need;
                  (B) to increase awareness of the importance of public 
                service; and
                  (C) to provide training and development opportunities 
                for such leaders through placement in programs operated 
                by appropriate organizations or entities.
          (2) Authority.--The program is authorized to develop such 
        fellowships to carry out the purposes of this section, 
        including the fellowships described in paragraph (3).
          (3) Fellowships.--
                  (A) In general.--The program shall establish and 
                carry out the Bill Emerson Hunger Fellowship and the 
                Mickey Leland Hunger Fellowship.
                  (B) Curriculum.--
                          (i) In general.--The fellowships established 
                        under subparagraph (A) shall provide experience 
                        and training to develop the skills and 
                        understanding necessary to improve the 
                        humanitarian conditions and the lives of 
                        individuals who suffer from hunger, including--
                                  (I) training in direct service to the 
                                hungry in conjunction with community-
                                based organizations through a program 
                                of field placement; and
                                  (II) experience in policy development 
                                through placement in a governmental 
                                entity or nonprofit organization.
                          (ii) Focus of bill emerson hunger 
                        fellowship.--The Bill Emerson Hunger Fellowship 
                        shall address hunger and other humanitarian 
                        needs in the United States.
                          (iii) Focus of mickey leland hunger 
                        fellowship.--The Mickey Leland Hunger 
                        Fellowship shall address international hunger 
                        and other humanitarian needs.
                          (iv) Workplan.--To carry out clause (i) and 
                        to assist in the evaluation of the fellowships 
                        under paragraph (4), the program shall, for 
                        each fellow, approve a work plan that 
                        identifies the target objectives for the fellow 
                        in the fellowship, including specific duties 
                        and responsibilities related to those 
                        objectives.
                  (C) Period of fellowship.--
                          (i) Emerson fellow.--A Bill Emerson Hunger 
                        Fellowship awarded under this paragraph shall 
                        be for no more than 1 year.
                          (ii) Leland fellow.--A Mickey Leland Hunger 
                        Fellowship awarded under this paragraph shall 
                        be for no more than 2 years.
                  (D) Selection of fellows.--
                          (i) In general.--A fellowship shall be 
                        awarded pursuant to a nationwide competition 
                        established by the program.
                          (ii) Qualification.--A successful 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) a commitment to social change;
                                  (III) leadership potential or actual 
                                leadership experience;
                                  (IV) diverse life experience;
                                  (V) proficient writing and speaking 
                                skills; and
                                  (VI) an ability to live in poor or 
                                diverse communities.
                          (iii) Amount of award.--
                                  (I) In general.--Each individual 
                                awarded a fellowship under this 
                                paragraph shall receive a living 
                                allowance and, subject to subclause 
                                (II), an end-of-service award as 
                                determined by the program.
                                  (II) Requirement for successful 
                                completion of fellowship.--Each 
                                individual awarded a fellowship under 
                                this paragraph shall be entitled to 
                                receive an end-of-service award at an 
                                appropriate rate for each month of 
                                satisfactory service as determined by 
                                the Executive Director.
                          (iv) 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''.
          (4) Evaluation.--The program shall conduct periodic 
        evaluations of the Bill Emerson and Mickey Leland Hunger 
        Fellowships. Such evaluations shall include the following:
                  (A) An assessment of the successful completion of the 
                work plan of the fellow.
                  (B) An assessment of the impact of the fellowship on 
                the fellows.
                  (C) An assessment of the accomplishment of the 
                purposes of the program.
                  (D) An assessment of the impact of the fellow on the 
                community.
  (e) Trust Fund.--
          (1) Establishment.--There is established the Congressional 
        Hunger Fellows Trust Fund (hereinafter in this section referred 
        to as the ``Fund'') in the Treasury of the United States, 
        consisting of amounts appropriated to the Fund under subsection 
        (i), amounts credited to it under paragraph (3), and amounts 
        received under subsection (g)(3)(A).
          (2) Investment of funds.--The Secretary of the Treasury shall 
        invest the full amount of the Fund. Each investment shall be 
        made in an interest bearing obligation of the United States or 
        an obligation guaranteed as to principal and interest by the 
        United States that, as determined by the Secretary in 
        consultation with the Board, has a maturity suitable for the 
        Fund.
          (3) Return on investment.--Except as provided in subsection 
        (f)(2), the Secretary of the Treasury shall credit to the Fund 
        the interest on, and the proceeds from the sale or redemption 
        of, obligations held in the Fund.
  (f) Expenditures; Audits.--
          (1) In general.--The Secretary of the Treasury shall transfer 
        to the program from the amounts described in subsection (e)(3) 
        and subsection (g)(3)(A) such sums as the Board determines are 
        necessary to enable the program to carry out the provisions of 
        this section.
          (2) Limitation.--The Secretary may not transfer to the 
        program the amounts appropriated to the Fund under subsection 
        (i).
          (3) Use of funds.--Funds transferred to the program under 
        paragraph (1) shall be used for the following purposes:
                  (A) Stipends for fellows.--To provide for a living 
                allowance for the fellows.
                  (B) Travel of fellows.--To defray the costs of 
                transportation of the fellows to the fellowship 
                placement sites.
                  (C) Insurance.--To defray the costs of appropriate 
                insurance of the fellows, the program, and the Board.
                  (D) Training of fellows.--To defray the costs of 
                preservice and midservice education and training of 
                fellows.
                  (E) Support staff.--Staff described in subsection 
                (g).
                  (F) Awards.--End-of-service awards under subsection 
                (d)(3)(D)(iii)(II).
                  (G) Additional approved uses.--For such other 
                purposes that the Board determines appropriate to carry 
                out the program.
          (4) Audit by gao.--
                  (A) In general.--The Comptroller General of the 
                United States shall conduct an annual audit of the 
                accounts of the program.
                  (B) Books.--The program shall make available to the 
                Comptroller General all books, accounts, financial 
                records, reports, files, and all other papers, things, 
                or property belonging to or in use by the program and 
                necessary to facilitate such audit.
                  (C) Report to congress.--The Comptroller General 
                shall submit a copy of the results of each such audit 
                to the Congress.
  (g) Staff; Powers of Program.--
          (1) Executive director.--
                  (A) In general.--The Board shall appoint an Executive 
                Director of the program who shall administer the 
                program. The Executive Director shall carry out such 
                other functions consistent with the provisions of this 
                section as the Board shall prescribe.
                  (B) Restriction.--The Executive Director may not 
                serve as Chairperson of the Board.
                  (C) Compensation.--The Executive Director shall be 
                paid at a rate not to exceed the rate of basic pay 
                payable for level V of the Executive Schedule under 
                section 5316 of title 5, United States Code.
          (2) Staff.--
                  (A) In general.--With the approval of a majority of 
                the Board, the Executive Director may appoint and fix 
                the pay of additional personnel as the Executive 
                Director considers necessary and appropriate to carry 
                out the functions of the provisions of this section.
                  (B) Compensation.--An individual appointed under 
                subparagraph (A) shall be paid at a rate not to exceed 
                the rate of basic pay payable for level GS-15 of the 
                General Schedule.
          (3) Powers.--In order to carry out the provisions of this 
        section, the program may perform the following functions:
                  (A) Gifts.--The program may solicit, accept, use, and 
                dispose of gifts, bequests, or devises of services or 
                property, both real and personal, for the purpose of 
                aiding or facilitating the work of the program. Gifts, 
                bequests, or devises of money and proceeds from sales 
                of other property received as gifts, bequests, or 
                devises shall be deposited in the Fund and shall be 
                available for disbursement upon order of the Board.
                  (B) Experts and consultants.--The program may procure 
                temporary and intermittent services under section 3109 
                of title 5, United States Code, but at rates for 
                individuals not to exceed the daily equivalent of the 
                maximum annual rate of basic pay payable for GS-15 of 
                the General Schedule.
                  (C) Contract authority.--The program may contract, 
                with the approval of a majority of the members of the 
                Board, with and compensate Government and private 
                agencies or persons without regard to section 3709 of 
                the Revised Statutes (41 U.S.C. 5).
                  (D) Other necessary expenditures.--The program shall 
                make such other expenditures which the program 
                considers necessary to carry out the provisions of this 
                section, but excluding project development.
  (h) Report.--Not later than December 31 of each year, the Board shall 
submit to Congress a report on the activities of the program carried 
out during the previous fiscal year, and shall include the following:
          (1) An analysis of the evaluations conducted under subsection 
        (d)(4) (relating to evaluations of the Emerson and Leland 
        fellowships and accomplishment of the program purposes) during 
        that fiscal year.
          (2) A statement of the total amount of funds attributable to 
        gifts received by the program in that fiscal year (as 
        authorized under subsection (g)(3)(A)), and the total amount of 
        such funds that were expended to carry out the program that 
        fiscal year.
  (i) Authorization of Appropriations.--There are authorized to be 
appropriated $18,000,000 to carry out the provisions of this section.

SEC. 462. GENERAL EFFECTIVE DATE.

  Except as otherwise provided in this title, the amendments made by 
this title shall take effect on October 1, 2002.

                            TITLE V--CREDIT

SEC. 501. ELIGIBILITY OF LIMITED LIABILITY COMPANIES FOR FARM OWNERSHIP 
                    LOANS, FARM OPERATING LOANS, AND EMERGENCY LOANS.

  (a) Sections 302(a), 311(a), and 321(a) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1922(a), 1941(a), and 1961(a)) are each 
amended by striking ``and joint operations'' each place it appears and 
inserting ``joint operations, and limited liability companies''.
  (b) Section 321(a) of such Act (7 U.S.C. 1961(a)) is amended by 
striking ``or joint operations'' each place it appears and inserting 
``joint operations, or limited liability companies''.

SEC. 502. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH BORROWERS ARE 
                    ELIGIBLE FOR GUARANTEED ASSISTANCE.

  During the period beginning January 1, 2002, and ending December 31, 
2006, section 319(b) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1949(b)) shall have no force or effect.

SEC. 503. ADMINISTRATION OF CERTIFIED LENDERS AND PREFERRED CERTIFIED 
                    LENDERS PROGRAMS.

  (a) In General.--Section 331(b) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1981(b)) is amended--
          (1) by redesignating paragraphs (2) through (9) as paragraphs 
        (3) through (10), respectively; and
          (2) by inserting after paragraph (1) the following:
          ``(2) administer the loan guarantee program under section 
        339(c) through central offices established in States or in 
        multi-State areas;''.
  (b) Conforming Amendment.--Section 331(c) of such Act (7 U.S.C. 
1981(c)) is amended by striking ``(b)(5)'' and inserting ``(b)(6)''.

SEC. 504. SIMPLIFIED LOAN GUARANTEE APPLICATION AVAILABLE FOR LOANS OF 
                    GREATER AMOUNTS.

  Section 333A(g)(1) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1983a(g)(1)) is amended by striking ``$50,000'' and inserting 
``$150,000''.

SEC. 505. ELIMINATION OF REQUIREMENT THAT SECRETARY REQUIRE COUNTY 
                    COMMITTEES TO CERTIFY IN WRITING THAT CERTAIN LOAN 
                    REVIEWS HAVE BEEN CONDUCTED.

  Section 333 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1983) is amended by striking paragraph (2) and redesignating 
paragraphs (3) through (5) as paragraphs (2) through (4), respectively.

SEC. 506. AUTHORITY TO REDUCE PERCENTAGE OF LOAN GUARANTEED IF BORROWER 
                    INCOME IS INSUFFICIENT TO SERVICE DEBT.

  Section 339 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1989) is amended--
          (1) in subsection (c)(4)(A), by inserting ``, except that the 
        Secretary may guarantee such lesser percentage as the Secretary 
        determines appropriate of such a loan if the income of the 
        borrower is less than the income necessary to meet the 
        requirements of subsection (b)'' before the period; and
          (2) in subsection (d)(4)(A), by inserting ``, except that the 
        Secretary may guarantee such lesser percentage as the Secretary 
        determines appropriate of such a loan if the income of the 
        borrower is less than the income necessary to meet the 
        requirements of subsection (b)'' before the semicolon.

SEC. 507. TIMING OF LOAN ASSESSMENTS.

  Section 360(a) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2006b(a)) is amended by striking ``After an applicant is 
determined eligible for assistance under this title by the appropriate 
county committee established pursuant to section 332, the'' and 
inserting ``The''.

SEC. 508. MAKING AND SERVICING OF LOANS BY PERSONNEL OF STATE, COUNTY, 
                    OR AREA COMMITTEES.

  (a) In General.--Subtitle D of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1981-2008j) is amended by adding at the end 
the following:

``SEC. 376. MAKING AND SERVICING OF LOANS BY PERSONNEL OF STATE, 
                    COUNTY, OR AREA COMMITTEES.

  ``The Secretary shall employ personnel of a State, county or area 
committee established under section 8(b)(5) of the Soil Conservation 
and Domestic Allotment Act (16 U.S.C 590h(b)(5)) to make and service 
loans under this title to the extent the personnel have been trained to 
do so.''.
  (b) Inapplicability of Finality Rule.--Section 281(a)(1) of the 
Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
7001(a)(1)) is amended by inserting ``, except functions performed 
pursuant to section 376 of the Consolidated Farm and Rural Development 
Act'' before the period.

SEC. 509. ELIGIBILITY OF EMPLOYEES OF STATE, COUNTY, OR AREA COMMITTEE 
                    FOR LOANS AND LOAN GUARANTEES.

  Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981-2008j) is further amended by adding at the end the 
following:

``SEC. 377. ELIGIBILITY OF EMPLOYEES OF STATE, COUNTY, OR AREA 
                    COMMITTEE FOR LOANS AND LOAN GUARANTEES.

  ``The Secretary shall not prohibit an employee of a State, county or 
area committee established under section 8(b)(5) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) or an 
employee of the Department of Agriculture from obtaining a loan or loan 
guarantee under subtitle A, B or C of this title if an office of the 
Department of Agriculture other than the office in which the employee 
is located determines that the employee is otherwise eligible for the 
loan or loan guarantee.''.

SEC. 510. EMERGENCY LOANS IN RESPONSE TO AN ECONOMIC EMERGENCY 
                    RESULTING FROM QUARANTINES AND SHARPLY INCREASING 
                    ENERGY COSTS.

  (a) Loan Authority.--Section 321(a) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1961(a)) is amended--
          (1) in each of the 1st and 3rd sentences--
                  (A) by striking ``a natural disaster in the United 
                States or by'' and inserting ``a quarantine imposed by 
                the Secretary under the Plant Protection Act or the 
                animal quarantine laws (as defined in section 2509 of 
                the Food, Agriculture, Conservation, and Trade Act of 
                1990), an economic emergency resulting from sharply 
                increasing energy costs as described in section 329(b), 
                a natural disaster in the United States, or''; and
                  (B) by inserting ``Robert T. Stafford'' before 
                ``Disaster Relief and Emergency Assistance Act''; and
          (2) in the 4th sentence--
                  (A) by striking ``a natural disaster'' and inserting 
                ``such a quarantine, economic emergency, or natural 
                disaster''; and
                  (B) by striking ``by such natural disaster'' and 
                inserting ``by such quarantine, economic emergency, or 
                natural disaster''.
  (b) Conforming Amendment.--Section 323 of such Act (7 U.S.C. 1963) is 
amended--
          (1) by inserting ``quarantine,'' before ``natural disaster''; 
        and
          (2) by inserting ``referred to in section 321(a), including, 
        notwithstanding any other provision of this title, an economic 
        emergency resulting from sharply increasing energy costs as 
        described in section 329(b)'' after ``emergency''.
  (c) Sharply Increasing Energy Costs.--Section 329 of such Act (7 
U.S.C. 1969) is amended--
          (1) by striking all that precedes ``Secretary shall'' and 
        inserting the following:

``SEC. 329. LOSS CONDITIONS.

  ``(a) In General.--Except as provided in subsection (b), the''; and
          (2) by adding after and below the end the following:
  ``(b) Loss Resulting From Sharply Increasing Energy Costs.--The 
Secretary shall make financial assistance under this subtitle available 
to any applicant seeking assistance based on an income loss resulting 
from sharply increasing energy costs referred to in section 323 if--
          ``(1) the price of electricity, gasoline, diesel fuel, 
        natural gas, propane, or other equivalent fuel during any 3-
        month period is at least 50 percent greater than the average 
        price of the same form of energy during the preceding 5 years, 
        as determined by the Secretary; and
          ``(2) the income loss of the applicant is directly related to 
        expenses incurred to prevent livestock mortality, the 
        degradation of a perishable agricultural commodity, or damage 
        to a field crop.''.
  (d) Maximum Amount of Loan.--Section 324(a) of such Act (7 U.S.C. 
1964(a)) is amended--
          (1) by striking ``or'' at the end of paragraph (1);
          (2) by striking the period at the end of paragraph (2) and 
        inserting a semicolon; and
          (3) by adding at the end the following:
          ``(3) in the case of a loan made in response to a quarantine 
        referred to in section 321, exceeds $500,000; or
          ``(4) in the case of a loan made in response to an economic 
        emergency referred to in section 321, exceeds $200,000.''.

SEC. 511. EXTENSION OF AUTHORITY TO CONTRACT FOR SERVICING OF FARMER 
                    PROGRAM LOANS.

  Section 331(d) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981(d)) is amended--
          (1) in the heading by striking ``Temporary''; and
          (2) in paragraph (5), by striking ``2002'' and inserting 
        ``2011''.

SEC. 512. AUTHORIZATION FOR LOANS.

  Section 346(b)(1) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1994(b)(1)) is amended by striking ``not more than the 
following amounts:'' and all that follows and inserting ``such sums as 
may be necessary.''.

SEC. 513. RESERVATION OF FUNDS FOR DIRECT OPERATING LOANS FOR BEGINNING 
                    FARMERS AND RANCHERS.

  Section 346(b)(2)(A)(ii)(III) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1994(b)(2)(A)(ii)(III)) is amended by 
striking ``2000 through 2002'' and inserting ``2002 through 2011''.

SEC. 514. EXTENSION OF INTEREST RATE REDUCTION PROGRAM.

  Section 351(a)(2) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1999(a)(2)) is amended by striking ``2002'' and inserting 
``2011''.

SEC. 515. INCREASE IN DURATION OF LOANS UNDER DOWN PAYMENT LOAN 
                    PROGRAM.

  (a) In General.--Section 310E(b)(3) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1935(b)(3)) is amended by striking 
``10'' and inserting ``15''.
  (b) Conforming Amendment.--Section 310E(c)(3)(B) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1935(c)(3)(B)) is amended by 
striking ``10-year'' and inserting ``15-year''.

SEC. 516. HORSE BREEDER LOANS.

  (a) Definition of Horse Breeder.--In this section, the term ``horse 
breeder'' means a person that, as of the date of the enactment of this 
Act, derives more than 70 percent of the income of the person from the 
business of breeding, boarding, raising, training, or selling horses, 
during the shorter of--
          (1) the 5-year period ending on January 1, 2001; or
          (2) the period the person has been engaged in the business.
  (b) Loan Authorization.--The Secretary shall make a loan to an 
eligible horse breeder to assist the breeder for losses suffered as a 
result of mare reproductive loss syndrome.
  (c) Eligibility.--A horse breeder shall be eligible for a loan under 
this section if the Secretary determines that, as a result of mare 
reproductive loss syndrome--
          (1) during the period beginning January 1, 2000, and ending 
        October 1, 2000, or during the period beginning January 1, 
        2001, and ending October 1, 2001--
                  (A) 30 percent or more of the mares owned by the 
                breeder failed to conceive, miscarried, aborted, or 
                otherwise failed to produce a live healthy foal; or
                  (B) 30 percent or more of the mares boarded on a farm 
                owned, operated, or leased by the breeder failed to 
                conceive, miscarried, aborted, or otherwise failed to 
                produce a live healthy foal;
          (2) during the period beginning January 1, 2000, and ending 
        on September 30, 2002, the breeder was unable to meet the 
        financial obligations, or pay the ordinary and necessary 
        expenses, of the breeder incurred in connection with breeding, 
        boarding, raising, training, or selling horses; and
          (3) the breeder is not able to obtain sufficient credit 
        elsewhere (within the meaning of section 321(a) of the 
        Consolidated Farm and Rural Development Act).
  (d) Amount.--
          (1) In general.--Subject to paragraph (2), the Secretary 
        shall determine the amount of a loan to be made to a horse 
        breeder under this section, on the basis of the amount of 
        losses suffered by the breeder, and the financial needs of the 
        breeder, as a result of mare reproductive loss syndrome.
          (2) Maximum amount.--The amount of a loan made under this 
        section shall not exceed $500,000.
  (e) Term.--
          (1) In general.--Subject to paragraph (2), the term for 
        repayment of a loan made to a horse breeder under this section 
        shall be determined by the Secretary based on the ability of 
        the breeder to repay the loan.
          (2) Maximum term.--The term of a loan made under this section 
        shall not exceed 15 years.
  (f) Interest Rate.--Interest shall be payable on a loan made under 
this section, at the rate prescribed under section 324(b)(1) of the 
Consolidated Farm and Rural Development Act.
  (g) Security.--Security shall be required on a loan made under this 
section, in accordance with section 324(d) of the Consolidated Farm and 
Rural Development Act.
  (h) Application.--To be eligible to obtain a loan under this section, 
a horse breeder shall submit to the Secretary an application for the 
loan not later than September 30, 2002.
  (i) Funding.--The Secretary shall carry out this section using funds 
available for emergency loans under subtitle C of the Consolidated Farm 
and Rural Development Act.
  (j) Termination.--The authority provided by this section shall 
terminate on September 30, 2003.

SEC. 517. SUNSET OF DIRECT LOAN PROGRAMS UNDER THE CONSOLIDATED FARM 
                    AND RURAL DEVELOPMENT ACT.

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

``SEC. 345. SUNSET OF DIRECT LOAN PROGRAMS.

  ``(a) In General.--Except as provided in subsection (b), beginning 5 
years after the date of the enactment of this section, the Secretary 
may not make a direct loan under section 302 or 311.
  ``(b) Exceptions.--Subsection (a) shall not apply to any authority to 
make direct loans to youths, qualified beginning farmers or ranchers, 
or members of socially disadvantaged groups.
  ``(c) No Effect on Existing Contracts.--Subsection (a) shall not be 
construed to permit the violation of any contract entered into before 
the 5-year period described in subsection (a).''.
  (b) Evaluations of Direct and Guaranteed Loan Programs.--
          (1) Studies.--The Secretary of Agriculture shall conduct 2 
        studies of the direct and guaranteed loan progams under 
        sections 302 and 311 of the Consolidated Farm and Rural 
        Development Act, each of which shall include an examination of 
        the number, average principal amount, and delinquency and 
        default rates of loans provided or guaranteed during the period 
        covered by the study.
          (2) Periods covered.--
                  (A) First study.--1 study under paragraph (1) shall 
                cover the 1-year period that begins 1 year after the 
                date of the enactment of this section.
                  (B) Second study.--1 study under paragraph (1) shall 
                cover the 1-year period that begins 3 years after such 
                date of enactment.
          (3) Reports to the congress.--At the end of the period 
        covered by a study under this subsection, the Secretary of 
        Agriculture shall submit to the Congress a report that contains 
        an evaluation of the results of the study, including an 
        analysis of the effectiveness of loan programs referred to in 
        paragraph (1) in meeting the credit needs of agricultural 
        producers in an efficient and fiscally responsible manner.

SEC. 518. DEFINITION OF DEBT FORGIVENESS.

  Section 343(a)(12)(B) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1991(a)(12)(B)) is amended to read as follows:
                  ``(B) Exceptions.--The term `debt forgiveness' does 
                not include--
                          ``(i) consolidation, rescheduling, 
                        reamortization, or deferral of a loan; or
                          ``(ii) any write-down provided as a part of a 
                        resolution of a discrimination complaint 
                        against the Secretary.''.

SEC. 519. LOAN ELIGIBILITY FOR BORROWERS WITH PRIOR DEBT FORGIVENESS.

  Section 373(b)(1) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2008h(b)(1)) is amended to read as follows:
          ``(1) Prohibitions.--Except as provided in paragraph (2)--
                  ``(A) the Secretary may not make a loan under this 
                title to a borrower who, on more than 2 occasions, 
                received debt forgiveness on a loan made or guaranteed 
                under this title; and
                  ``(B) the Secretary may not guarantee a loan under 
                this title to a borrower who, on more than 3 occasions, 
                received debt forgiveness on a loan made or guaranteed 
                under this title.''.

SEC. 520. ALLOCATION OF CERTAIN FUNDS FOR SOCIALLY DISADVANTAGED 
                    FARMERS AND RANCHERS.

  The last sentence of section 355(c)(2) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2003(c)(2)) is amended to read as 
follows: ``Any funds reserved and allocated under this paragraph but 
not used within a State shall, to the extent necessary to satisfy 
pending applications under this title, be available for use by socially 
disadvantaged farmers and ranchers in other States, as determined by 
the Secretary, and any remaining funds shall be reallocated within the 
State.''.

SEC. 521. HORSES CONSIDERED TO BE LIVESTOCK UNDER THE CONSOLIDATED FARM 
                    AND RURAL DEVELOPMENT ACT.

  Section 343 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1991) is amended by adding at the end the following:
  ``(c) Livestock Includes Horses.--The term `livestock' includes 
horses.''.

                      TITLE VI--RURAL DEVELOPMENT

SEC. 601. FUNDING FOR RURAL LOCAL TELEVISION BROADCAST SIGNAL LOAN 
                    GUARANTEES.

  Section 1011(a) of the Launching Our Communities' Access to Local 
Television Act of 2000 (title X of H.R. 5548, as enacted by section 
1(a)(2) of Public Law 106-553) is amended by adding at the end the 
following: ``In addition, a total of $200,000,000 of the funds of the 
Commodity Credit Corporation shall be available during fiscal years 
2002 through 2006, without fiscal year limitation, for loan guarantees 
under this title.''.

SEC. 602. EXPANDED ELIGIBILITY FOR VALUE-ADDED AGRICULTURAL PRODUCT 
                    MARKET DEVELOPMENT GRANTS.

  Section 231(a) of the Agricultural Risk Protection Act of 2000 (7 
U.S.C. 1621 note) is amended--
          (1) by striking paragraph (1) and inserting the following:
          ``(1) Establishment and purposes.--In each of fiscal years 
        2002 through 2011, the Secretary shall use $50,000,000 of the 
        funds of the Commodity Credit Corporation to award competitive 
        grants--
                  ``(A) to eligible independent producers (as 
                determined by the Secretary) of value-added 
                agricultural commodities and products of agricultural 
                commodities to assist an eligible producer--
                          ``(i) to develop a business plan for viable 
                        marketing opportunities for a value-added 
                        agricultural commodity or product of an 
                        agricultural commodity; or
                          ``(ii) to develop strategies for the ventures 
                        that are intended to create marketing 
                        opportunities for the producers; and
                  ``(B) to public bodies, institutions of higher 
                learning, and trade associations to assist such 
                entities--
                          ``(i) to develop a business plan for viable 
                        marketing opportunities in emerging markets for 
                        a value-added agricultural commodity or product 
                        of an agricultural commodity; or
                          ``(ii) to develop strategies for the ventures 
                        that are intended to create marketing 
                        opportunities in emerging markets for the 
                        producers.''; and
          (2) by striking ``producer'' each place it appears thereafter 
        and inserting ``grantee''.

SEC. 603. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.

  (a) Purposes.--The purposes of this section are to carry out a 
demonstration program under which agricultural producers are provided--
          (1) technical assistance, including engineering services, 
        applied research, scale production, and similar services to 
        enable the producers to establish businesses for further 
        processing of agricultural products;
          (2) marketing, market development, and business planning;
          (3) overall organizational, outreach, and development 
        assistance to increase the viability, growth, and 
        sustainability of value-added agricultural businesses.
  (b) Nature of Program.--The Secretary of Agriculture (in this section 
referred to as the ``Secretary'') shall--
          (1) make grants to eligible applicants for the purposes of 
        enabling the applicants to obtain the assistance described in 
        subsection (a); and
          (2) provide assistance to eligible applicants through the 
        research and technical services of the Department of 
        Agriculture.
  (c) Eligibility Requirements.--
          (1) In general.--An applicant shall be eligible for a grant 
        and assistance described in subsection (b) to establish an 
        Agriculture Innovation Center if--
                  (A) the applicant--
                          (i) has provided services similar to those 
                        described in subsection (a); or
                          (ii) shows the capability of providing the 
                        services;
                  (B) the application of the applicant for the grant 
                and assistance sets forth a plan, in accordance with 
                regulations which shall be prescribed by the Secretary, 
                outlining support of the applicant in the agricultural 
                community, the technical and other expertise of the 
                applicant, and the goals of the applicant for 
                increasing and improving the ability of local producers 
                to develop markets and processes for value-added 
                agricultural products;
                  (C) the applicant demonstrates that resources (in 
                cash or in kind) of definite value are available, or 
                have been committed to be made available, to the 
                applicant, to increase and improve the ability of local 
                producers to develop markets and processes for value-
                added agricultural products; and
                  (D) the applicant meets the requirement of paragraph 
                (2).
          (2) Board of directors.--The requirement of this paragraph is 
        that the applicant shall have a board of directors comprised of 
        representatives of the following groups:
                  (A) The 2 general agricultural organizations with the 
                greatest number of members in the State in which the 
                applicant is located.
                  (B) The Department of Agriculture or similar State 
                organization or department, for the State.
                  (C) Organizations representing the 4 highest grossing 
                commodities produced in the State, according to annual 
                gross cash sales.
  (d) Grants and Assistance.--
          (1) In general.--Subject to subsection (g), the Secretary 
        shall make annual grants to eligible applicants under this 
        section, each of which grants shall not exceed the lesser of--
                  (A) $1,000,000; or
                  (B) twice the dollar value of the resources (in cash 
                or in kind) that the applicant has demonstrated are 
                available, or have been committed to be made available, 
                to the applicant in accordance with subsection 
                (c)(1)(C).
          (2) Initial limitation.--In the first year of the 
        demonstration program under this section, the Secretary shall 
        make grants under this section, on a competitive basis, to not 
        more than 5 eligible applicants.
          (3) Expansion of demonstration program.--In the second year 
        of the demonstration program under this section, the Secretary 
        may make grants under this section to not more than 10 eligible 
        applicants, in addition to any entities to which grants are 
        made under paragraph (2) for such year.
          (4) State limitation.--In the first 3 years of the 
        demonstration program under this section, the Secretary shall 
        not make an Agricultural Innovation Center Demonstration 
        Program grant under this section to more than 1 entity in a 
        single State.
  (e) Use of Funds.--An entity to which a grant is made under this 
section may use the grant only for the following purposes, but only to 
the extent that the use is not described in section 231(d) of the 
Agricultural Risk Protection Act of 2000:
          (1) Applied research.
          (2) Consulting services.
          (3) Hiring of employees, at the discretion of the board of 
        directors of the entity.
          (4) The making of matching grants, each of which shall be not 
        more than $5,000, to agricultural producers, so long as the 
        aggregate amount of all such matching grants shall be not more 
        than $50,000.
          (5) Legal services.
  (f) Rule of Interpretation.--This section shall not be construed to 
prevent a recipient of a grant under this section from collaborating 
with any other institution with respect to activities conducted using 
the grant.
  (g) Availability of Funds.--Of the amount made available under 
section 231(a)(1) of the Agricultural Risk Protection Act of 2000 
(Public Law 106-224; 7 U.S.C. 1621 note), the Secretary shall use to 
carry out this section--
          (1) not less than $5,000,000 for fiscal year 2002; and
          (2) not less than $10,000,000 for each of the fiscal years 
        2003 and 2004.
  (h) Report on Best Practices.--
          (1) Effects on the agricultural sector.--The Secretary shall 
        utilize $300,000 per year of the funds made available pursuant 
        to this section to support research at any university into the 
        effects of value-added projects on agricultural producers and 
        the commodity markets. The research should systematically 
        examine possible effects on demand for agricultural 
        commodities, market prices, farm income, and Federal outlays on 
        commodity programs using linked, long-term, global projections 
        of the agricultural sector.
          (2) Department of agriculture.--Not later than 3 years after 
        the first 10 grants are made under this section, the Secretary 
        shall prepare and submit to the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate and to the Committee on 
        Agriculture of the House of Representatives a written report on 
        the effectiveness of the demonstration program conducted under 
        this section at improving the production of value-added 
        agricultural products and on the effects of the program on the 
        economic viability of the producers, which shall include the 
        best practices and innovations found at each of the Agriculture 
        Innovation Centers established under the demonstration program 
        under this section, and detail the number and type of 
        agricultural projects assisted, and the type of assistance 
        provided, under this section.

SEC. 604. FUNDING OF COMMUNITY WATER ASSISTANCE GRANT PROGRAM.

  (a) Funding.--In each of fiscal years 2002 through 2011, the 
Secretary of Agriculture shall use $30,000,000 of the funds of the 
Commodity Credit Corporation to carry out section 306A of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1926a).
  (b) Extension of Program.--Section 306A(i) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1926a(i)) is amended by striking 
``2002'' and inserting ``2011''.
  (c) Miscellaneous Amendments.--Section 306A of such Act (7 U.S.C. 
1926a) is amended--
          (1) in the heading by striking EMERGENCY'';
          (2) in subsection (a)(1)--
                  (A) by striking ``after'' and inserting ``when''; and
                  (B) by inserting ``is imminent'' after 
                ``communities''; and
          (3) in subsection (c), by striking ``shall--'' and all that 
        follows and inserting ``shall be a public or private nonprofit 
        entity.''.

SEC. 605. LOAN GUARANTEES FOR THE FINANCING OF THE PURCHASE OF 
                    RENEWABLE ENERGY SYSTEMS.

  Section 4 of the Rural Electrification Act of 1936 (7 U.S.C. 904) is 
amended--
          (1) by inserting ``(a)'' before ``The Secretary''; and
          (2) by adding after and below the end the following:
  ``(b) Loan Guarantees for the Financing of the Purchase of Renewable 
Energy Systems.--The Secretary may provide a loan guarantee, on such 
terms and conditions as the Secretary deems appropriate, for the 
purpose of financing the purchase of a renewable energy system, 
including a wind energy system and anaerobic digestors for the purpose 
of energy generation, by any person or individual who is a farmer, a 
rancher, or an owner of a small business (as defined by the Secretary) 
that is located in a rural area (as defined by the Secretary). In 
providing guarantees under this subsection, the Secretary shall give 
priority to loans used primarily for power generation on a farm, ranch, 
or small business (as so defined).''.

SEC. 606. LOANS AND LOAN GUARANTEES FOR RENEWABLE ENERGY SYSTEMS.

  Section 310B(a)(3) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1932(a)(3)) is amended by inserting ``and other renewable 
energy systems including wind energy systems and anaerobic digestors 
for the purpose of energy generation'' after ``solar energy systems''.

SEC. 607. 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 ``2002'' and 
inserting ``2011''.

SEC. 608. GRANTS FOR 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 ``and 2002'' and 
inserting ``through 2011''.

SEC. 609. RURAL COOPERATIVE DEVELOPMENT GRANTS.

  Section 310B(e)(9) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1932(e)(9)) is amended by striking ``2002'' and inserting 
``2011''.

SEC. 610. NATIONAL RESERVE ACCOUNT OF RURAL DEVELOPMENT TRUST FUND.

  Section 381E(e)(3)(F) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2009d(e)(3)(F)) is amended by striking ``fiscal year 
2002'' and inserting ``each of the fiscal years 2002 through 2011''.

SEC. 611. RURAL VENTURE CAPITAL DEMONSTRATION PROGRAM.

  Section 381O(b)(3) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2009n(b)(3)) is amended by striking ``2002'' and inserting 
``2011''.

SEC. 612. INCREASE IN LIMIT ON CERTAIN LOANS FOR RURAL DEVELOPMENT.

  Section 310B(a) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932(a)) is amended by striking ``$25,000,000'' and inserting 
``$100,000,000''.

SEC. 613. PILOT PROGRAM FOR DEVELOPMENT AND IMPLEMENTATION OF STRATEGIC 
                    REGIONAL DEVELOPMENT PLANS.

  (a) Development.--
          (1) Selection of states.--The Secretary of Agriculture (in 
        this section referred to as the ``Secretary'') shall select 10 
        States in which to implement strategic regional development 
        plans developed under this subsection.
          (2) Grants.--
                  (A) Authority.--
                          (i) In general.--From the funds made 
                        available to carry out this subsection, the 
                        Secretary shall make a matching grant to 1 or 
                        more entities in each State selected under 
                        subsection (a), to develop a strategic regional 
                        development plan that provides for rural 
                        economic development in a region in the State 
                        in which the entity is located.
                          (ii) Priority.--In making grants under this 
                        subsection, the Secretary shall give priority 
                        to entities that represent a regional coalition 
                        of community-based planning, development, 
                        governmental, and business organizations.
                  (B) Terms of match.--In order for an entity to be 
                eligible for a matching grant under this subsection, 
                the entity shall make a commitment to the Secretary to 
                provide funds for the development of a strategic 
                regional development plan of the kind referred to in 
                subparagraph (A) in an amount that is not less than the 
                amount of the matching grant.
                  (C) Limitation.--The Secretary shall not make a grant 
                under this subsection in an amount that exceeds 
                $150,000.
          (3) Funding.--
                  (A) In general.--The Secretary shall use $2,000,000 
                of the funds of the Commodity Credit Corporation in 
                each of fiscal years 2002 through 2011 to carry out 
                this subsection.
                  (B) Availability.--Funds made available pursuant to 
                subparagraph (A) shall remain available without fiscal 
                year limitation.
  (b) Strategic Planning Implementation.--
          (1) The Secretary shall use the authorities provided in the 
        provisions of law specified in section 793(c)(1)(A)(ii) of the 
        Federal Agriculture Improvement and Reform Act of 1996 to 
        implement the strategic regional development plans developed 
        pursuant to subsection (a) of this section.
          (2) Funding.--
                  (A) In general.--The Secretary shall use $13,000,000 
                of the funds of the Commodity Credit Corporation in 
                each of fiscal years 2002 through 2011 to carry out 
                this subsection.
                  (B) Availability.--Funds made available pursuant to 
                subparagraph (A) shall remain available without fiscal 
                year limitation.
  (c) Use of Funds.--The amounts made available under subsections (a) 
and (b) may be used as the Secretary deems appropriate to carry out any 
provision of this section.

SEC. 614. 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.

  (a) In General.--Subtitle A of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1922-1949) is amended by inserting after 
section 306D the following:

``SEC. 306E. 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.

  ``(a) Definition of Eligible Individual.--In this section, the term 
`eligible individual' means an individual who is a member of a 
household, the combined income of whose members for the most recent 12-
month period for which the information is available, is not more than 
100 percent of the median nonmetropolitan household income for the 
State or territory in which the individual resides, according to the 
most recent decennial census of the United States.
  ``(b) Grants.--The Secretary may make grants to private nonprofit 
organizations for the purpose of assisting eligible individuals in 
obtaining financing for the construction, refurbishing, and servicing 
of individual household water well systems in rural areas that are 
owned (or to be owned) by the eligible individuals.
  ``(c) Use of Funds.--A grant made under this section may be--
          ``(1) used, or invested to provide income to be used, to 
        carry out subsection (b); and
          ``(2) used to pay administrative expenses associated with 
        providing the assistance described in subsection (b).
  ``(d) Priority in Awarding Grants.--In awarding grants under this 
section, the Secretary shall give priority to an applicant that has 
substantial expertise and experience in promoting the safe and 
productive use of individually-owned household water well systems and 
ground water.''.
  (b) Effective Date.--The amendment made by this section takes effect 
on October 1, 2001.

SEC. 615. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

  Subtitle E of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009-2009n) is amended by adding at the end the following:

``SEC. 381P. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

  ``(a) Rural Area Defined.--In this section, the term `rural area' 
means such areas as the Secretary may determine.
  ``(b) Establishment.--There is established a National Rural 
Development Partnership (in this section referred to as the 
``Partnership''), which shall be composed of--
          ``(1) the National Rural Development Coordinating Committee 
        established in accordance with subsection (c); and
          ``(2) State rural development councils established in 
        accordance with subsection (d).
  ``(c) National Rural Development Coordinating Committee.--
          ``(1) Composition.--The National Rural Development 
        Coordinating Committee (in this section referred to as the 
        ``Coordinating Committee'') may be composed of--
                  ``(A) representatives of all Federal departments and 
                agencies with policies and programs that affect or 
                benefit rural areas;
                  ``(B) representatives of national associations of 
                State, regional, local, and tribal governments and 
                intergovernmental and multi-jurisdictional agencies and 
                organizations;
                  ``(C) national public interest groups; and
                  ``(D) other national nonprofit organizations that 
                elect to participate in the activities of the 
                Coordinating Committee.
          ``(2) Functions.--The Coordinating Committee may--
                  ``(A) provide support for the work of the State rural 
                development councils established in accordance with 
                subsection (d); and
                  ``(B) develop and facilitate strategies to reduce or 
                eliminate conflicting or duplicative administrative and 
                regulatory impediments confronting rural areas.
  ``(d) State Rural Development Councils.--
          ``(1) Composition.--A State rural development council may--
                  ``(A) be composed of representatives of Federal, 
                State, local, and tribal governments, and nonprofit 
                organizations, the private sector, and other entities 
                committed to rural advancement; and
                  ``(B) have a nonpartisan and nondiscriminatory 
                membership that is broad and representative of the 
                economic, social, and political diversity of the State.
          ``(2) Functions.--A State rural development council may--
                  ``(A) facilitate collaboration among Federal, State, 
                local, and tribal governments and the private and non-
                profit sectors in the planning and implementation of 
                programs and policies that affect the rural areas of 
                the State, and to do so in such a way that provides the 
                greatest degree of flexibility and innovation in 
                responding to the unique needs of the State and the 
                rural areas; and
                  ``(B) in conjunction with the Coordinating Committee, 
                develop and facilitate strategies to reduce or 
                eliminate conflicting or duplicative administrative and 
                regulatory impediments confronting the rural areas of 
                the State.
  ``(e) Administration of the Partnership.--The Secretary may provide 
for any additional support staff to the Partnership as the Secretary 
determines to be necessary to carry out the duties of the Partnership.
  ``(f) Termination.--The authority provided by this section shall 
terminate on the date that is 5 years after the date of the enactment 
of this section.''.

SEC. 616. ELIGIBILITY OF RURAL EMPOWERMENT ZONES, RURAL ENTERPRISE 
                    COMMUNITIES, AND CHAMPION COMMUNITIES FOR DIRECT 
                    AND GUARANTEED LOANS FOR ESSENTIAL COMMUNITY 
                    FACILITIES.

  Section 306(a)(1) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)(1)) is amended by inserting after the 1st sentence 
the following: ``The Secretary may also make or insure loans to 
communities that have been designated as rural empowerment zones or 
rural enterprise communities pursuant to part I of subchapter U of 
chapter 1 of the Internal Revenue Code of 1986, as rural enterprise 
communities pursuant to section 766 of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999, or as champion communities (as determined by 
the Secretary), to provide for the installation or improvement of 
essential community facilities including necessary related equipment, 
and to furnish financial assistance or other aid in planning projects 
for such purposes.''.

SEC. 617. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES AND TO TRAIN 
                    FARM WORKERS IN SPECIALIZED SKILLS NECESSARY FOR 
                    HIGHER VALUE CROPS.

  (a) In General.--The Secretary of Agriculture may make a grant to a 
nonprofit organization with the capacity to train farm workers, or to a 
consortium of non-profit organizations, agribusinesses, State and local 
governments, agricultural labor organizations, and community-based 
organizations with that capacity.
  (b) Use of Funds.--An entity to which a grant is made under this 
section shall use the grant to train farm workers to use new 
technologies and develop specialized skills for agricultural 
development.
  (c) Limitations on Authorization of Appropriations.--For grants under 
this section, there are authorized to be appropriated to the Secretary 
of Agriculture not more than $10,000,000 for each of fiscal years 2002 
through 2011.

SEC. 618. LOAN GUARANTEES FOR THE PURCHASE OF STOCK IN A FARMER 
                    COOPERATIVE SEEKING TO MODERNIZE OR EXPAND.

  Section 310B(g)(2) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1932(g)(2)) is amended by striking ``start-up'' and all that 
follows and inserting ``capital stock of a farmer cooperative 
established for an agricultural purpose.''.

SEC. 619. INTANGIBLE ASSETS AND SUBORDINATED UNSECURED DEBT REQUIRED TO 
                    BE CONSIDERED IN DETERMINING ELIGIBILITY OF FARMER-
                    OWNED COOPERATIVE FOR BUSINESS AND INDUSTRY 
                    GUARANTEED LOAN.

  Section 310B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932) is amended by adding at the end the following:
  ``(h) Intangible Assets and Subordinated Unsecured Debt Required to 
be Considered in Determining Eligibility of Farmer-Owned Cooperative 
for Business and Industry Guaranteed Loan.--In determining whether a 
cooperative organization owned by farmers is eligible for a guaranteed 
loan under subsection (a)(1), the Secretary may consider the value of 
the intangible assets and subordinated unsecured debt of the 
cooperative organization.''.

SEC. 620. BAN ON LIMITING ELIGIBILITY OF FARMER COOPERATIVE FOR 
                    BUSINESS AND INDUSTRY LOAN GUARANTEE BASED ON 
                    POPULATION OF AREA IN WHICH COOPERATIVE IS LOCATED.

  Section 310B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932) is further amended by adding at the end of the following:
  ``(i) Special Rules Applicable to Farmer Cooperatives under the 
Business and Industry Loan Program.--In determining whether a 
cooperative organization owned by farmers is eligible for a guaranteed 
loan under subsection (a)(1), the Secretary shall not apply any lending 
restriction based on population to the area in which the cooperative 
organization is located.''.

                TITLE VII--RESEARCH AND RELATED MATTERS

                         Subtitle A--Extensions

SEC. 700. MARKET EXPANSION RESEARCH.

  Section 1436(b)(3)(C) of the Food Security Act of 1985 (7 U.S.C. 
1632(b)(3)(C)) is amended by striking ``1990'' and inserting ``2011''.

SEC. 701. 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 ``2002'' and 
inserting ``2011''.

SEC. 702. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES 
                    EDUCATION.

  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 
``2002'' and inserting ``2011''.

SEC. 703. POLICY RESEARCH CENTERS.

  Section 1419A(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3155(d)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 704. 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 
``2002'' and inserting ``2011''.

SEC. 705. 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 ``2002'' and inserting ``2011''.

SEC. 706. 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 ``2002'' and inserting ``2011''.

SEC. 707. 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 by striking 
``2002'' and inserting ``2011''.

SEC. 708. 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 
``2002'' and inserting ``2011''.

SEC. 709. 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 
``2002'' and inserting ``2011''.

SEC. 710. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS AT 1890 
                    LAND-GRANT INSTITUTIONS.

  Sections 1448(a)(1) and (f) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c(a)(1) and 
(f)) are amended by striking ``2002'' each place it appears and 
inserting ``2011''.

SEC. 711. 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 
``2002'' and inserting ``2011''.

SEC. 712. 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 ``2002'' and inserting ``2011''.

SEC. 713. UNIVERSITY RESEARCH.

  Subsections (a) and (b) of section 1463 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311(a) 
and (b)) are amended by striking ``2002'' each place it appears and 
inserting ``2011''.

SEC. 714. 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 
``2002'' and inserting ``2011''.

SEC. 715. 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 ``2002'' and inserting ``2011''.

SEC. 716. AQUACULTURE RESEARCH FACILITIES.

  The first sentence of section 1477 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3324) is 
amended by striking ``2002'' and inserting ``2011''.

SEC. 717. 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 
``2002'' and inserting ``2011''.

SEC. 718. 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 ``1995'' and 
inserting ``2011''.

SEC. 719. 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 ``2002'' and 
inserting ``2011''.

SEC. 720. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.

  Section 1672A(g) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5925a(g)) is amended by striking ``2002'' and 
inserting ``2011''.

SEC. 721. 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 ``2002'' and 
inserting ``2011''.

SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
                    REVOLVING FUND.

  (a) Authorization of Appropriations.--Section 1664(g)(1) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5908(g)(1)) 
is amended by striking ``2002'' and inserting ``2011''.
  (b) Capitalization.--Section 1664(g)(2) of such Act (7 U.S.C. 
5908(g)(2)) is amended by striking ``2002'' and inserting ``2011''.

SEC. 723. 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 ``2002'' and 
inserting ``2011''.

SEC. 724. 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 ``2002'' 
and inserting ``2011''.

SEC. 725. 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 ``2001'' and inserting ``2011''.
  (b) Authorization of Appropriations.--Section 404(h) of such Act (7 
U.S.C. 7624(h)) is amended by striking ``2002'' and inserting ``2011''.

SEC. 726. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE 
                    GRANTS PROGRAM.

  Section 406(e) of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7626(e)) is amended by striking ``2002'' 
and inserting ``2011''.

SEC. 727. INSTITUTIONAL CAPACITY BUILDING GRANTS.

  (a) Generally.--Section 535(b)(1) of the Equity in Educational Land-
Grant Status Act of 1994 (7 U.S.C. 301 note) is amended by striking 
``2000'' and inserting ``2011''.
  (b) Authorization of Appropriations.--Section 535(c) of such Act is 
amended by striking ``2000'' and inserting ``2011''.

SEC. 728. 1994 INSTITUTION RESEARCH GRANTS.

  Section 536(c) of the Equity in Educational Land-Grant Status Act of 
1994 (7 U.S.C. 301 note) is amended by striking ``2002'' and inserting 
``2011''.

SEC. 729. ENDOWMENT FOR 1994 INSTITUTIONS.

  The first sentence of section 533(b) of the Equity in Educational 
Land-Grant Status Act of 1994 (7 U.S.C. 301 note) is amended by 
striking ``$4,600,000'' and all that follows through the period and 
inserting ``such sums as are necessary to carry out this section for 
each of fiscal years 1996 through 2011.''.

SEC. 730. PRECISION AGRICULTURE.

  Section 403(i) of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7623(i)) is amended by striking ``2002'' 
and inserting ``2011''.

SEC. 731. 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 ``2002'' 
and inserting ``2011''.

SEC. 732. 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 ``2002'' 
and inserting ``2011''.

SEC. 733. 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 ``2002'' 
and inserting ``2011''.

SEC. 734. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND 
                    ECONOMICS ADVISORY BOARD.

  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 
``2002'' and inserting ``2011''.

SEC. 735. 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 
``2002'' and inserting ``2011''.

SEC. 736. BIOMASS RESEARCH AND DEVELOPMENT.

  Title III of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 
7624 note) is amended--
          (1) in section 307(f), by striking ``2005'' and inserting 
        ``2011''; and
          (2) in section 310, by striking ``2005'' and inserting 
        ``2011''.

SEC. 737. AGRICULTURAL EXPERIMENT STATIONS RESEARCH FACILITIES.

  Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is 
amended by striking ``2002'' and inserting ``2011''.

SEC. 738. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS NATIONAL 
                    RESEARCH INITIATIVE.

  Section 2(b)(10) of the Competitive, Special, and Facilities Research 
Grant Act (7 U.S.C. 450i(b)(10)) is amended by striking ``2002'' and 
inserting ``2011''.

SEC. 739. FEDERAL AGRICULTURAL RESEARCH FACILITIES AUTHORIZATION OF 
                    APPROPRIATIONS.

  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 ``2002'' and inserting ``2011''.

                       Subtitle B--Modifications

SEC. 741. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.

  (a) Authorization of Appropriations.--Section 534(a)(1)(A) of the 
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note) 
is amended by striking ``$50,000'' and inserting ``$100,000''.
  (b) Withdrawals and Expenditures.--Section 533(c)(4)(A) of such Act 
is amended by striking ``section 390(3)'' and all that follows through 
``1998))'' and inserting ``section 2(a)(7) of the Tribally Controlled 
College or University Assistance Act of 1978)''.
  (c) Accreditation.--Section 533(a)(3) of such Act is amended by 
striking ``under sections 534 and 535'' and inserting ``under sections 
534, 535, and 536''.
  (d) 1994 Institutions.--Section 532 of such Act is amended by 
striking paragraphs (1) through (30) and inserting the following:
          ``(1) Bay Mills Community College.
          ``(2) Blackfeet Community College.
          ``(3) Cankdeska Cikana Community College.
          ``(4) College of Menominee Nation.
          ``(5) Crownpoint Institute of Technology.
          ``(6) D-Q University.
          ``(7) Dine College.
          ``(8) Dull Knife Memorial College.
          ``(9) Fond du Lac Tribal and Community College.
          ``(10) Fort Belknap College.
          ``(11) Fort Berthold Community College.
          ``(12) Fort Peck Community College.
          ``(13) Haskell Indian Nations University.
          ``(14) Institute of American Indian and Alaska Native Culture 
        and Arts Development.
          ``(15) Lac Courte Oreilles Ojibwa Community College.
          ``(16) Leech Lake Tribal College.
          ``(17) Little Big Horn College.
          ``(18) Little Priest Tribal College.
          ``(19) Nebraska Indian Community College.
          ``(20) Northwest Indian College.
          ``(21) Oglala Lakota College.
          ``(22) Salish Kootenai College.
          ``(23) Sinte Gleska University.
          ``(24) Sisseton Wahpeton Community College.
          ``(25) Si Tanka/Huron University.
          ``(26) Sitting Bull College.
          ``(27) Southwestern Indian Polytechnic Institute.
          ``(28) Stone Child College.
          ``(29) Turtle Mountain Community College.
          ``(30) United Tribes Technical College.''.

SEC. 742. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING 
                    POLICY ACT OF 1977.

  Section 1404(4) of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3103(4)) is amended--
          (1) by striking ``and'' after subparagraph (D);
          (2) by striking the period at the end of subparagraph (E) and 
        inserting ``, or''; and
          (3) by adding at the end the following: ``(F) is one of the 
        1994 Institutions (as defined in section 532 of the Equity in 
        Educational Land-Grant Status Act of 1994).''.

SEC. 743. AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION REFORM ACT OF 
                    1998.

  (a) Priority Mission Areas.--Section 401(c)(2) of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 
7621(c)(2)) is amended--
          (1) by striking ``and'' at the end of subparagraph (E);
          (2) by striking the period at the end of subparagraph (F) and 
        inserting 
        ``; and''; and
          (3) by adding at the end the following new subparagraph:
                  ``(G) alternative fuels and renewable energy 
                sources.''.
  (b) Precision Agriculture.--Section 403 of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7623) is 
amended--
          (1) in subsection (a)(5)(F), by inserting ``(including 
        improved use of energy inputs)'' after ``farm production 
        efficiencies''; and
          (2) in subsection (d)--
                  (A) by redesignating paragraphs (4) and (5) as 
                paragraphs (5) and (6), respectively; and
                  (B) by inserting after paragraph (3) the following 
                new paragraph:
          ``(4) Improve on farm energy use efficiencies.''.
  (c) Thomas Jefferson Initiative for Crop Diversification.--Section 
405(a) of the Agricultural Research, Extension, and Education Reform 
Act of 1998 (7 U.S.C. 7625(a)) is amended by striking ``and marketing'' 
and inserting ``, marketing, and efficient use''.
  (d) Coordinated Program of Research, Extension, and Education To 
Improve Viability of Small- and Medium-Size Dairy, Livestock, and 
Poultry Operations.--Section 407(b)(3) of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7627(b)(3)) is 
amended by inserting ``(including improved use of energy inputs)'' 
after ``poultry systems that increase efficiencies''.
  (e) Support for Research Regarding Diseases of Wheat, Triticale, and 
Barley Caused by Fusarium Graminearum or By Tilletia Indica.--
          (1) Research grant authorized.--Section 408(a) of the 
        Agricultural Research, Extension, and Education Reform Act of 
        1998 (7 U.S.C. 7628(a)) is amended to read as follows:
  ``(a) Research Grant Authorized.--The Secretary of Agriculture may 
make grants to consortia of land-grant colleges and universities to 
enhance the ability of the consortia to carry out multi-State research 
projects aimed at understanding and combating diseases of wheat, 
triticale, and barley caused by Fusarium graminearum and related fungi 
(referred to in this section as `wheat scab') or by Tilletia indica and 
related fungi (referred to in this section as `Karnal bunt').''.
          (2) Research components.--Section 408(b) of such Act (7 
        U.S.C. 7628(b)) is amended--
                  (A) in paragraph (1), by inserting ``or of Karnal 
                bunt,'' after ``epidemiology of wheat scab'';
                  (B) in paragraph (1), by inserting ``, triticale,'' 
                after ``occurring in wheat'';
                  (C) in paragraph (2), by inserting ``or Karnal bunt'' 
                after ``wheat scab'';
                  (D) in paragraph (3)(A), by striking ``and barley for 
                the presence of'' and inserting ``, triticale, and 
                barley for the presence of Karnal bunt or of'';
                  (E) in paragraph (3)(B), by striking ``and barley 
                infected with wheat scab'' and inserting ``, triticale, 
                and barley infected with wheat scab or with Karnal 
                bunt'';
                  (F) in paragraph (3)(C), by inserting ``wheat scab'' 
                after ``to render'';
                  (G) in paragraph (4), by striking ``and barley to 
                wheat scab'' and inserting ``, triticale, and barley to 
                wheat scab and to Karnal bunt''; and
                  (H) in paragraph (5)--
                          (i) by inserting ``and Karnal bunt'' after 
                        ``wheat scab''; and
                          (ii) by inserting ``, triticale,'' after 
                        ``resistant wheat''.
          (3) Communications networks.--Section 408(c) of such Act (7 
        U.S.C. 7628(c)) is amended by inserting ``or Karnal bunt'' 
        after ``wheat scab''.
          (4) Technical amendments.--(A) The section heading for 
        section 408 of such Act is amended by striking ``AND BARLEY 
        CAUSED BY FUSARIUM GRAMINEARUM'' and inserting ``, TRITICALE, 
        AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY TILLETIA 
        INDICA''.
          (B) The table of sections for such Act is amended by striking 
        ``and barley caused by fusarium graminearum'' in the item 
        relating to section 408 and inserting ``, triticale, and barley 
        caused by Fusarium graminearum or by Tilletia indica''.
  (f) Program to Control Johne's Disease.--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 new section:

``SEC. 409. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

  ``(a) Establishment.--The Secretary of Agriculture, in coordination 
with State veterinarians and other appropriate State animal health 
professionals, may establish a program to conduct research, testing, 
and evaluation of programs for the control and management of Johne's 
disease in livestock.
  ``(b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section for each of fiscal years 2003 through 2011.''.

SEC. 744. FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT OF 1990.

  (a) Agricultural Genome Initiative.--Section 1671(b) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5924(b)) is 
amended--
          (1) in paragraph (3), by inserting ``pathogens and'' before 
        ``diseases causing economic hardship'';
          (2) in paragraph (6), by striking ``and'' at the end;
          (3) by redesignating paragraph (7) as paragraph (8); and
          (4) by inserting after paragraph (6) the following new 
        paragraph:
          ``(7) reducing the economic impact of plant pathogens on 
        commercially important crop plants; and''.
  (b) High-Priority Research and Extension Initiatives.--Section 
1672(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 
(7 U.S.C. 5925) is amended by adding at the end the following new 
paragraphs:
          ``(25) Research to protect the united states food supply and 
        agriculture from bioterrorism.--Research grants may be made 
        under this section for the purpose of developing technologies, 
        which support the capability to deal with the threat of 
        agricultural bioterrorism.
          ``(26) Wind erosion research and extension.--Research and 
        extension grants may be made under this section for the purpose 
        of validating wind erosion models.
          ``(27) Crop loss research and extension.--Research and 
        extension grants may be made under this section for the purpose 
        of validating crop loss models.
          ``(28) Land use management research and extension.--Research 
        and extension grants may be made under this section for the 
        purposes of evaluating the environmental benefits of land use 
        management tools such as those provided in the Farmland 
        Protection Program.
          ``(29) Water and air quality research and extension.--
        Research and extension grants may be made under this section 
        for the purpose of better understanding agricultural impacts to 
        air and water quality and means to address them.
          ``(30) Revenue and insurance tools research and extension.--
        Research and extension grants may be made under this section 
        for the purposes of better understanding the impact of revenue 
        and insurance tools on farm income.
          ``(31) Agrotourism research and extension.--Research and 
        extension grants may be made under this section for the purpose 
        of better understanding the economic, environmental, and food 
        systems impacts on agrotourism.
          ``(32) Harvesting productivity for fruits and vegetables.--
        Research and extension grants may be made under this section 
        for the purpose of improving harvesting productivity for fruits 
        and vegetables (including citrus), including the development of 
        mechanical harvesting technologies and effective, economical, 
        and safe abscission compounds.
          ``(33) Nitrogen-fixation by plants.--Research and extension 
        grants may be made under this section for the purpose of 
        enhancing the nitrogen-fixing ability and efficiency of 
        legumes, developing new varieties of legumes that fix nitrogen 
        more efficiently, and developing new varieties of other 
        commercially important crops that potentially are able to fix 
        nitrogen.
          ``(34) Agricultural marketing.--Extension grants may be made 
        under this section for the purpose of providing education 
        materials, information, and outreach programs regarding 
        commodity and livestock marketing strategies for agricultural 
        producers and for cooperatives and other marketers of any 
        agricultural commodity, including livestock.
          ``(35) Environment and private lands research and 
        extension.--Research and extension grants may be made under 
        this section for the purpose of researching the use of computer 
        models to aid in assessment of best management practices on a 
        watershed basis, working with government, industry, and private 
        landowners to help craft industry-led solutions to identified 
        environmental issues, researching and monitoring water, air, or 
        soil environmental quality to aid in the development of new 
        approaches to local environmental concerns, and working with 
        local, State, and federal officials to help craft effective 
        environmental solutions that respect private property rights 
        and agricultural production realities.
          ``(36) Livestock disease research and extension.--Research 
        and extension grants may be made under this section for the 
        purpose of identifying possible livestock disease threats, 
        educating the public regarding livestock disease threats, 
        training persons to deal with such threats, and conducting 
        related research.
          ``(37) Plant gene expression.--Research and development 
        grants may be made under this section for the purpose of plant 
        gene expression research to accelerate the application of basic 
        plant genomic science to the development and testing of new 
        varieties of enhanced food crops, crops that can be used as 
        renewable energy sources, and other alternative uses of 
        agricultural crops.''.

SEC. 745. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING 
                    POLICY ACT OF 1977.

  (a) National Agricultural Research, Extension, Education, and 
Economic Advisory Board.--Section 1408 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is 
amended--
          (1) in subsection (b)(3)--
                  (A) by redesignating subparagraphs (R) through (DD) 
                as subparagraphs (S) through (EE), respectively; and
                  (B) by inserting after subparagraph (Q) the following 
                new subparagraph:
                  ``(R) 1 member representing a nonland grant college 
                or university with a historic commitment to research in 
                the food and agricultural sciences.'';
          (2) in subsection (c)(1), by striking ``and land-grant 
        colleges and universities'' and inserting ``, land-grant 
        colleges and universities, and the Committee on Agriculture of 
        the House of Representatives, the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate, the Subcommittee on 
        Agriculture, Rural Development, Food and Drug Administration 
        and Related Agencies of the Committee on Appropriations of the 
        House of Representatives, and the Subcommittee on Agriculture, 
        Rural Development and Related Agencies of the Committee on 
        Appropriations of the Senate''; and
          (3) in subsection (d)(1), inserting ``consult with any 
        appropriate agencies of the Department of Agriculture and'' 
        after ``the Advisory Board shall''.
  (b) Grants for Research on Production and Marketing of Alcohols and 
Industrial Hydrocarbons from Agricultural Commodities and Forest 
Products.--Section 1419 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154) is amended--
          (1) in subsection (a)(2), by inserting ``and animal fats and 
        oils'' after ``industrial oilseed crops''; and
          (2) in subsection (a)(4), by inserting ``or triglycerides'' 
        after ``other industrial hydrocarbons''.
  (c) FAS Overseas Intern Program.--Section 1458(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3291(a)) is amended--
          (1) by striking ``and'' at the end of paragraph (8);
          (2) by striking the period at the end of paragraph (9) and 
        inserting ``; and''; and
          (3) by adding at the end the following new paragraph:
          ``(10) establish a program, to be coordinated by the 
        Cooperative State Research, Education, and Extension Service 
        and the Foreign Agricultural Service, to place interns from 
        United States colleges and universities at Foreign Agricultural 
        Service field offices overseas.''.

SEC. 746. BIOMASS RESEARCH AND DEVELOPMENT.

  Title III of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 
7624 note) is amended--
          (1) in section 302(3), by inserting ``or biodiesel'' after 
        ``such as ethanol'';
          (2) in section 303(3), by inserting ``animal byproducts,'' 
        after ``fibers''; and
          (3) in section 306(b)(1)--
                  (A) by redesignating subparagraphs (E) through (J) as 
                subparagraphs (F) through (K), respectively; and
                  (B) by inserting after subparagraph (D) the following 
                new subparagraph:
                  ``(E) an individual affiliated with a livestock trade 
                association;''.

SEC. 747. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

  Section 1668 of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 5921) is amended to read as follows:

``SEC. 1668. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

  ``(a) Purpose.--It is the purpose of this section--
          ``(1) to authorize and support environmental assessment 
        research to help identify and analyze environmental effects of 
        biotechnology; and
          ``(2) to authorize research to help regulators develop long-
        term policies concerning the introduction of such technology.
  ``(b) Grant Program.-- The Secretary of Agriculture shall establish a 
grant program within the Cooperative State Research, Education, and 
Extension Service and the Agricultural Research Service to provide the 
necessary funding for environmental assessment research concerning the 
introduction of genetically engineered plants and animals into the 
environment.
  ``(c) Types of Research.-- Types of research for which grants may be 
made under this section shall include the following:
          ``(1) Research designed to identify and develop appropriate 
        management practices to minimize physical and biological risks 
        associated with genetically engineered animals and plants once 
        they are introduced into the environment.
          ``(2) Research designed to develop methods to monitor the 
        dispersal of genetically engineered animals and plants.
          ``(3) Research designed to further existing knowledge with 
        respect to the characteristics, rates and methods of gene 
        transfer that may occur between genetically engineered plants 
        and animals and related wild and agricultural organisms.
          ``(4) Environmental assessment research designed to provide 
        analysis, which compares the relative impacts of plants and 
        animals modified through genetic engineering to other types of 
        production systems.
          ``(5) Other areas of research designed to further the 
        purposes of this section.
  ``(d) Eligibility Requirements.--Grants under this section shall be--
          ``(1) made on the basis of the quality of the proposed 
        research project; and
          ``(2) available to any public or private research or 
        educational institution or organization.
  ``(e) Consultation.-- In considering specific areas of research for 
funding under this section, the Secretary of Agriculture shall consult 
with the Administrator of the Animal and Plant Health Inspection 
Service and the National Agricultural Research, Extension, Education, 
and Economics Advisory Board.
  ``(f) Program Coordination.-- The Secretary of Agriculture shall 
coordinate research funded under this section with the Office of 
Research and Development of the Environmental Protection Agency in 
order to avoid duplication of research activities.
  ``(g) Authorization of Appropriations.--
          ``(1) In general.-- There are authorized to be appropriated 
        such sums as necessary to carry out this section.
          ``(2) Withholdings from biotechnology outlays.--The Secretary 
        of Agriculture shall withhold from outlays of the Department of 
        Agriculture for research on biotechnology, as defined and 
        determined by the Secretary, at least one percent of such 
        amount for the purpose of making grants under this section for 
        research on biotechnology risk assessment. Except that, funding 
        from this authorization should be collected and applied to the 
        maximum extent practicable to risk assessment research on all 
        categories identified as biotechnology by the Secretary.''.

SEC. 748. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS.

  Section 2(a) of the Competitive, Special, and Facilities Research 
Grant Act (7 U.S.C. 450i(a)) is amended by adding at the end the 
following new paragraph:
          ``(3) Determination of high priority research.--Research 
        priorities shall be determined by the Secretary on an annual 
        basis, taking into account input as gathered by the Secretary 
        through the National Agricultural Research, Extension, 
        Education, and Economics Advisory Board.''.

SEC. 749. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION 
                    ACTIVITIES OF 1890 INSTITUTIONS.

  Section 1449 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3222d) is amended--
          (1) by amending subsection (c) to read as follows:
  ``(c) Matching Formula.--For each of fiscal years 2003 through 2011, 
the State shall provide matching funds from non-Federal sources. Such 
matching funds shall be for an amount equal to not less than 60 percent 
of the formula funds to be distributed to the eligible institution, and 
shall increase by 10 percent each fiscal year thereafter until fiscal 
year 2007.'';
          (2) by amending subsection (d) to read as follows:
  ``(d) Waiver Authority.--Notwithstanding subsection (f), the 
Secretary may waive the matching funds requirement under subsection (c) 
above the 50 percent level for fiscal years 2003 through 2011 for an 
eligible institution of a State if the Secretary determines that the 
State will be unlikely to satisfy the matching requirement.''; and
          (3) by adding at the end the following new subsection:
  ``(g) Matching Funds Requirement for the Land-Grant Colleges in the 
United States Territories.--
          ``(1) Land-grant colleges of the United States territories, 
        including the Commonwealth of Puerto Rico, Guam, the Virgin 
        Islands, the Northern Mariana Islands, American Samoa, and 
        Micronesia, shall be excluded from the definition of eligible 
        institution (as defined in subsection (a)(1)).
          ``(2) Matching formula.--Notwithstanding any other provision 
        of this subtitle, for fiscal years 2003 through 2011, the State 
        shall provide matching funds from non-Federal sources in an 
        amount equal to not less than 50 percent of the formula funds 
        to be distributed to the eligible institution.
          ``(3) Waiver authority.--Notwithstanding subsection (f), the 
        Secretary may waive the matching funds requirements under 
        subsection (a)(2)(A) for any of fiscal years 2003 through 2011 
        for an eligible institution of a State if the Secretary 
        determines that the territory will be unlikely to satisfy the 
        matching requirement for that fiscal year.''.

SEC. 750. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.

  (a) Funding.--Section 401(b)(1) of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7621(b)(1)) is 
amended to read as follows:
          ``(1) In general.--
                  ``(A) Total amount to be transferred.--On October 1, 
                2003, and each October 1 thereafter through September 
                30, 2011, out of any funds in the Treasury not 
                otherwise appropriated, the Secretary of the Treasury 
                shall transfer funds into the Account. The total amount 
                transferred under this subparagraph shall equal 
                $1,160,000,000.
                  ``(B) Equal amounts.--To the maximum extent 
                practicable, the amounts transferred into the Account 
                pursuant to subparagraph (A) shall be transferred in 
                equal amounts for each fiscal year.
                  ``(C) Availability of funds.--Amounts transferred 
                into the Account pursuant to subparagraph (A) shall 
                remain available until expended.''.
  (b) Availability of Funds.--Section 401(f)(6) of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 
7621(f)(6)) is amended to read as follows:
          ``(6) Availability of funds.--Funds made available under this 
        section to the Secretary prior to October 1, 2003, for grants 
        under this section shall be available to the Secretary for a 2-
        year period.''.

SEC. 751. CARBON CYCLE RESEARCH.

  Section 221 of the Agricultural Risk Protection Act of 2000 (Public 
Law 106-224; 114 Stat. 407) is amended--
          (1) in subsection (a), by striking ``Of the amount'' and all 
        that follows through ``to provide'' and inserting ``To the 
        extent funds are made available for this purpose, the Secretary 
        shall provide'';
          (2) in subsection (d), by striking ``under subsection (a)'' 
        and inserting ``for this section''; and
          (3) by adding at the end the following new subsection:
  ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 2002 through 2011 such sums as may be 
necessary to carry out this section.''

SEC. 752. DEFINITION OF FOOD AND AGRICULTURAL SCIENCES.

  Section 2(3) of the Research Facilities Act (7 U.S.C. 390(2)(3)) is 
amended to read as follows:
          ``(3) Food and agricultural sciences.--The term `food and 
        agricultural sciences' has the meaning given that term in 
        section 1404(8) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
        3103(8)).''.

SEC. 753. FEDERAL EXTENSION SERVICE.

  Section 3(b)(3) of the Smith-Lever Act (7 U.S.C. 343(b)(3)) is 
amended by striking ``$5,000,000'' and inserting ``such sums as are 
necessary''.

                      Subtitle C--Related Matters

SEC. 761. RESIDENT INSTRUCTION AT LAND-GRANT COLLEGES IN UNITED STATES 
                    TERRITORIES.

  (a) Purpose.--It is the purpose of this section to promote and 
strengthen higher education in the food and agricultural sciences at 
agricultural and mechanical colleges located in the Commonwealth of 
Puerto Rico, the Virgin Islands of the United States, Guam, American 
Samoa, the Commonwealth of the Northern Mariana Islands, the Federated 
States of Micronesia, the Republic of the Marshall Islands, or the 
Republic of Palau (hereinafter referred to in this section as 
``eligible institutions'') by formulating and administering programs to 
enhance teaching programs in agriculture, natural resources, forestry, 
veterinary medicine, home economics, and disciplines closely allied to 
the food and agriculture production and delivery system.
  (b) Grants.--The Secretary shall make competitive grants to those 
eligible institutions having a demonstrable capacity to carry out the 
teaching of food and agricultural sciences.
  (c) Use of Grant Funds.--Grants made under subsection (b) shall be 
used to--
          (1) strengthen institutional educational capacities, 
        including libraries, curriculum, faculty, scientific 
        instrumentation, instruction delivery systems, and student 
        recruitment and retention, in order to respond to identified 
        State, regional, national, or international education needs in 
        the food and agricultural sciences;
          (2) attract and support undergraduate and graduate students 
        in order to educate them in identified areas of national need 
        to the food and agriculture sciences;
          (3) facilitate cooperative initiatives between two or more 
        eligible institutions or between eligible institutions and 
        units of State Government, organizational in the private 
        sector, to maximize the development and use of resources such 
        as faculty, facilities, and equipment to improve food and 
        agricultural sciences teaching programs; and
          (4) conduct undergraduate scholarship programs to assist in 
        meeting national needs for training food and agricultural 
        scientists.
  (d) Grant Requirements.--
          (1) The Secretary shall ensure that each eligible 
        institution, prior to receiving grant funds under subsection 
        (b), shall have a significant demonstrable commitment to higher 
        educations programs in the food and agricultural sciences and 
        to each specific subject area for which grant funds under this 
        subsection are to be used.
          (2) The Secretary may require that any grant awarded under 
        this section contain provisions that require funds to be 
        targeted to meet the needs identified in section 1402 of the 
        National Agriculture Research, Extension, and Teaching Policy 
        Act of 1977.
  (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary for each of the fiscal years 
2002 through 2011 to carry out this section.

SEC. 762. DECLARATION OF EXTRAORDINARY EMERGENCY AND RESULTING 
                    AUTHORITIES.

  (a) Review of Payment of Compensation.--Section 415(e) of the Plant 
Protection Act (7 U.S.C. 7715(e)) is amended by inserting before the 
final period the following: ``or review by any officer of the 
Government other than the Secretary or the designee of the Secretary''.
  (b) Review of Certain Decisions.--
          (1) Plant protection act.--Section 442 of the Plant 
        Protection Act (7 U.S.C. 7772) is amended by adding at the end 
        following new subsection:
  ``(f) Secretarial Discretion.--The action of any officer, employee, 
or agent of the Secretary in carrying out this section, including 
determining the amount of and making any payment authorized to be made 
under this section, shall not be subject to review by any officer of 
the Government other than the Secretary or the designee of the 
Secretary.''.
          (2) Other plant and animal pest and disease laws.--Section 11 
        of the Act of May 29, 1884 (21 U.S.C. 114a; commonly known as 
        the ``Animal Industry Act'') and the first section of the Act 
        of September 25, 1981 (7 U.S.C. 147b), are each amended by 
        adding at the end the following new sentence: ``The action of 
        any officer, employee, or agent of the Secretary in carrying 
        out this section, including determining the amount of and 
        making any payment authorized to be made under this section, 
        shall not be subject to review by any officer of the Government 
        other than the Secretary or the designee of the Secretary.''.
  (c) Methyl Bromide.--The Plant Protection Act (7 U.S.C. 7701 et seq.) 
is amended by inserting after section 418 the following new section:

``SEC. 419. METHYL BROMIDE.

  ``(a) In General.--The Secretary, upon request of State, local, or 
tribal authorities, shall determine whether methyl bromide treatments 
or applications required by State, local, or tribal authorities to 
prevent the introduction, establishment, or spread of plant pests 
(including diseases) or noxious weeds should be authorized as an 
official control or official requirement.
  ``(b) Administration.--
          ``(1) Timeline for determination.--The Secretary shall make 
        the determination required by subsection (a) not later than 90 
        days after receiving the request for such a determination.
          ``(2) Regulations.--The promulgation of regulations for and 
        the administration of this section shall be made without regard 
        to--
                  ``(A) the notice and comment provisions of section 
                553 of title 5, United States Code;
                  ``(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) chapter 35 of title 44, United States Code 
                (commonly known as the `Paperwork Reduction Act').
  ``(c) Registry.--Not later than 180 days after the date of the 
enactment of this section, the Secretary shall publish, and thereafter 
maintain, a registry of State, local, and tribal requirements 
authorized by the Secretary under this section.''.

        Subtitle D--Repeal of Certain Activities and Authorities

SEC. 771. FOOD SAFETY RESEARCH INFORMATION OFFICE AND NATIONAL 
                    CONFERENCE.

  (a) Repeal.--Subsections (b) and (c) of section 615 of the 
Agricultural Research, Extension, and Education Reform Act of 1998 (7 
U.S.C. 7654 (b) and (c)) are repealed.
  (b) Conforming Amendments.--
          (1) Generally.--Section 615 of such Act is amended--
                  (A) in the section heading, by striking ``AND 
                NATIONAL CONFERENCE'';
                  (B) by striking ``(a) Food Safety Research 
                Information Office.--'';
                  (C) by redesignating paragraphs (1), (2), and (3) as 
                subsections (a), (b), and (c), respectively, and moving 
                the margins 2 ems to the left;
                  (D) in subsection (b) (as so redesignated), by 
                redesignating subparagraphs (A) and (B) as paragraphs 
                (1) and (2), respectively, and moving the margins 2 ems 
                to the left; and
                  (E) in subsection (c) (as so redesignated), by 
                striking ``this subsection'' and inserting ``this 
                section''.
          (2) Table of sections.--The table of sections for such Act is 
        amended by striking ``and National Conference'' in the item 
        relating to section 617.

SEC. 772. REIMBURSEMENT OF EXPENSES UNDER SHEEP PROMOTION, RESEARCH, 
                    AND INFORMATION ACT OF 1994.

  Section 617 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (Public Law 105-185; 112 Stat. 607) is repealed.

SEC. 773. NATIONAL GENETIC RESOURCES PROGRAM.

  Section 1634 of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 5843) is repealed.

SEC. 774. NATIONAL ADVISORY BOARD ON AGRICULTURAL WEATHER.

  Section 1639 of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 5853) is repealed.

SEC. 775. AGRICULTURAL INFORMATION EXCHANGE WITH IRELAND.

  Section 1420 of the National Agricultural Research, Extension and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 
1551) is repealed.

SEC. 776. PESTICIDE RESISTANCE STUDY.

  Section 1437 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 
1558) is repealed.

SEC. 777. EXPANSION OF EDUCATION STUDY.

  Section 1438 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 
1559) is repealed.

SEC. 778. SUPPORT FOR ADVISORY BOARD.

  (a) Repeal.--Section 1412 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) is repealed.
  (b) Conforming Amendment.--Section 1413(c) of such Act (7 U.S.C. 
3128(c)) is amended by striking ``section 1412 of this title and''.

SEC. 779. TASK FORCE ON 10-YEAR STRATEGIC PLAN FOR AGRICULTURAL 
                    RESEARCH FACILITIES.

  (a) Repeal.--Section 4 of the Research Facilities Act (7 U.S.C. 390b) 
is repealed.
  (b) Conforming Amendment.--Section 2 of such Act (7 U.S.C. 390) is 
amended by striking paragraph (5).

              Subtitle E--Agriculture Facility Protection

SEC. 790. ADDITIONAL PROTECTIONS FOR ANIMAL OR AGRICULTURAL 
                    ENTERPRISES, RESEARCH FACILITIES, AND OTHER 
                    ENTITIES.

  (a) Definitions.--The Research Facilities Act (7 U.S.C. 390 et seq.) 
is amended--
          (1) by redesignating section 6 as section 7; and
          (2) by inserting after section 5 the following new section:

``SEC. 6. ADDITIONAL PROTECTIONS FOR ANIMAL OR AGRICULTURAL 
                    ENTERPRISES, RESEARCH FACILITIES, AND OTHER 
                    ENTITIES AGAINST DISRUPTION.

  ``(a) Definitions.--For the purposes of this section, the following 
definitions apply:
          ``(1) Animal or agricultural enterprise.--The term `animal or 
        agricultural enterprise' means any of the following:
                  ``(A) A commercial, governmental, or academic 
                enterprise that uses animals, plants, or other 
                biological materials for food or fiber production, 
                breeding, processing, research, or testing.
                  ``(B) A zoo, aquarium, circus, rodeo, or other entity 
                that exhibits or uses animals, plants, or other 
                biological materials for educational or entertainment 
                purposes.
                  ``(C) A fair or similar event intended to advance 
                agricultural arts and sciences.
                  ``(D) A facility managed or occupied by an 
                association, federation, foundation, council, or other 
                group or entity of food or fiber producers, processors, 
                or agricultural or biomedical researchers intended to 
                advance agricultural or biomedical arts and sciences.
          ``(2) Economic damage.--The term `economic damage' means the 
        replacement of the following:
                  ``(A) The cost of lost or damaged property (including 
                all real and personal property) of an animal or 
                agricultural enterprise.
                  ``(B) The cost of repeating an interrupted or 
                invalidated experiment.
                  ``(C) The loss of revenue (including costs related to 
                business recovery) directly related to the disruption 
                of an animal or agricultural enterprise.
                  ``(D) The cost of the tuition and expenses of any 
                student to complete an academic program that was 
                disrupted, or to complete a replacement program, when 
                the tuition and expenses are incurred as a result of 
                the damage or loss of the property of an animal or 
                agricultural enterprise.
          ``(3) Property of an animal or agricultural enterprise.--The 
        term `property of an animal or agricultural enterprise' means 
        real and personal property of or used by any of the following:
                  ``(A) An animal or agricultural enterprise.
                  ``(B) An employee of an animal or agricultural 
                enterprise.
                  ``(C) A student attending an academic animal or 
                agricultural enterprise.
          ``(4) Disruption.--The term `disruption' does not include any 
        lawful disruption that results from lawful public, 
        governmental, or animal or agricultural enterprise employee 
        reaction to the disclosure of information about an animal or 
        agricultural enterprise.
  ``(b) Violation.--A person may not recklessly, knowingly, or 
intentionally cause, or contribute to, the disruption of the 
functioning of an animal or agricultural enterprise by damaging or 
causing the loss of any property of the animal or agricultural 
enterprise that results in economic damage, as determined by the 
Secretary.
  ``(c) Assessment of Civil Penalty.--
          ``(1) In general.--The Secretary may impose on any person 
        that the Secretary determines violates subsection (b) a civil 
        penalty in an amount determined under paragraphs (2) and (3). 
        The civil penalty may be assessed only on the record after an 
        opportunity for a hearing.
          ``(2) Recovery of department costs.--The civil penalty 
        assessed by the Secretary against a person for a violation of 
        subsection (b) shall be not less than the total cost incurred 
        by the Secretary for investigation of the violation, conducting 
        any hearing regarding the violation, and assessing the civil 
        penalty.
          ``(3) Recovery of economic damage.--In addition to the amount 
        determined under paragraph (2), the amount of the civil penalty 
        shall include an amount not less than the total cost (or, in 
        the case of knowing or intentional disruption, not less than 
        150 percent of the total cost) of the economic damage incurred 
        by the animal or agricultural enterprise, any employee of the 
        animal or agricultural enterprise, or any student attending an 
        academic animal or agricultural enterprise as a result of the 
        damage or loss of the property of an animal or agricultural 
        enterprise.
  ``(d) Identification.--The Secretary shall identify for each civil 
penalty assessed under subsection (c), the portion of the amount of the 
civil penalty that represents the recovery of Department costs and the 
portion that represents the recovery of economic losses.
  ``(e) Other Factors in Determining Penalty.-- In determining the 
amount of a civil penalty under subsection (c), the Secretary shall 
consider the following:
          ``(1) The nature, circumstance, extent, and gravity of the 
        violation or violations.
          ``(2) The ability of the injured animal or agricultural 
        enterprise to continue to operate, costs incurred by the animal 
        or agricultural enterprise to recover lost business, and the 
        effect of the violation on earnings of employees of the animal 
        or agricultural enterprise.
          ``(3) The interruptions experienced by students attending an 
        academic animal or agricultural enterprise.
          ``(4) Whether the violator has previously violated subsection 
        (a).
          ``(5) The violator's degree of culpability.
  ``(f) Fund To Assist Victims of Disruption.--
          ``(1) Fund established.--There is established in the Treasury 
        a fund which shall consist of that portion of each civil 
        penalty collected under subsection (c) that represents the 
        recovery of economic damages.
          ``(2) Use of amounts in fund.--The Secretary of Agriculture 
        shall use amounts in the fund to compensate animal or 
        agricultural enterprises, employees of an animal or 
        agricultural enterprise, and student attending an academic 
        animal or agricultural enterprise for economic losses incurred 
        as a result of the disruption of the functioning of an animal 
        or agricultural enterprise in violation of subsection (b).''.

                    TITLE VIII--FORESTRY INITIATIVES

SEC. 801. REPEAL OF FORESTRY INCENTIVES PROGRAM AND STEWARDSHIP 
                    INCENTIVE PROGRAM.

  The Cooperative Forestry Assistance Act of 1978 is amended by 
striking section 4 (16 U.S.C. 2103) and section 6 (16 U.S.C. 2103b).

SEC. 802. ESTABLISHMENT OF FOREST LAND ENHANCEMENT PROGRAM.

  (a) Findings.--Congress finds the following:
          (1) There is a growing dependence on private nonindustrial 
        forest lands to supply the necessary market commodities and 
        nonmarket values, such as habitat for fish and wildlife, 
        aesthetics, outdoor recreation opportunities, and other forest 
        resources, required by a growing population.
          (2) There is a strong demand for expanded assistance programs 
        for owners of nonindustrial private forest land since the 
        majority of the wood supply of the United States comes from 
        nonindustrial private forest land.
          (3) The soil, carbon stores, water and air quality of the 
        United States can be maintained and improved through good 
        stewardship of nonindustrial private forest lands.
          (4) The products and services resulting from stewardship of 
        nonindustrial private forest lands provide income and 
        employment that contribute to the economic health and diversity 
        of rural communities.
          (5) Wildfires threaten human lives, property, forests, and 
        other resources, and Federal and State cooperation in forest 
        fire prevention and control has proven effective and valuable, 
        in that properly managed forest stands are less susceptible to 
        catastrophic fire, as dramatized by the catastrophic fire 
        seasons of 1998 and 2000.
          (6) Owners of private nonindustrial forest lands are being 
        faced with increased pressure to convert their forestland to 
        development and other uses.
          (7) Complex, long-rotation forest investments, including 
        sustainable hardwood management, are often the most difficult 
        commitment for small, nonindustrial private forest landowners 
        and, thus, should receive equal consideration under cost-share 
        programs.
          (8) The investment of one Federal dollar in State and private 
        forestry programs is estimated to leverage $9 on average from 
        State, local, and private sources.
  (b) Purpose.--It is the purpose of this section to strengthen the 
commitment of the Department of Agriculture to sustainable forestry and 
to establish a coordinated and cooperative Federal, State, and local 
sustainable forest program for the establishment, management, 
maintenance, enhancement, and restoration of forests on nonindustrial 
private forest lands in the United States.
  (c) Forest Land Enhancement Program.--The Cooperative Forestry 
Assistance Act of 1978 is amended by inserting after section 3 (16 
U.S.C. 2102) the following new section 4:

``SEC. 4. FOREST LAND ENHANCEMENT PROGRAM.

  ``(a) Establishment.--
          ``(1) Establishment; purpose.--The Secretary shall establish 
        a Forest Land Enhancement Program (in this section referred to 
        as the `Program') for the purpose of providing financial, 
        technical, educational, and related assistance to State 
        foresters to encourage the long-term sustainability of 
        nonindustrial private forest lands in the United States by 
        assisting the owners of such lands in more actively managing 
        their forest and related resources by utilizing existing State, 
        Federal, and private sector resource management expertise, 
        financial assistance, and educational programs.
          ``(2) Administration.--The Secretary shall carry out the 
        Program within, and administer the Program through, the Natural 
        Resources Conservation Service.
          ``(3) Coordination.--The Secretary shall implement the 
        Program in coordination with State foresters.
  ``(b) Program Objectives.--In implementing the Program, the Secretary 
shall target resources to achieve the following objectives:
          ``(1) Investment in practices to establish, restore, protect, 
        manage, maintain, and enhance the health and productivity of 
        the nonindustrial private forest lands in the United States for 
        timber, habitat for flora and fauna, water quality, and 
        wetlands.
          ``(2) Ensuring that afforestation, reforestation, improvement 
        of poorly stocked stands, timber stand improvement, practices 
        necessary to improve seedling growth and survival, and growth 
        enhancement practices occur where needed to enhance and sustain 
        the long-term productivity of timber and nontimber forest 
        resources to help meet future public demand for all forest 
        resources and provide environmental benefits.
          ``(3) Reduce the risks and help restore, recover, and 
        mitigate the damage to forests caused by fire, insects, 
        invasive species, disease, and damaging weather.
          ``(4) Increase and enhance carbon sequestration 
        opportunities.
          ``(5) Enhance implementation of agroforestry practices.
          ``(6) Maintain and enhance the forest landbase and leverage 
        State and local financial and technical assistance to owners 
        that promote the same conservation and environmental values.
  ``(c) Eligibility.--
          ``(1) In general.--An owner of nonindustrial private forest 
        land is eligible for cost-sharing assistance under the Program 
        if the owner--
                  ``(A) agrees to develop and implement an individual 
                stewardship, forest, or stand management plan 
                addressing site specific activities and practices in 
                cooperation with, and approved by, the State forester, 
                state official, or private sector program in 
                consultation with the State forester;
                  ``(B) agrees to implement approved activities in 
                accordance with the plan for a period of not less than 
                10 years, unless the State forester approves a 
                modification to such plan; and
                  ``(C) meets the acreage restrictions as determined by 
                the State forester in conjunction with the State Forest 
                Stewardship Coordinating Committee established under 
                section 19.
          ``(2) State priorities.--The Secretary, in consultation with 
        the State forester and the State Forest Stewardship 
        Coordinating Committee may develop State priorities for cost 
        sharing under the Program that will promote forest management 
        objectives in that State.
          ``(3) Development of plan.--An owner shall be eligible for 
        cost-share assistance for the development of the individual 
        stewardship, forest, or stand management plan required by 
        paragraph (1).
  ``(d) Approved Activities.--
          ``(1) Development.--The Secretary, in consultation with the 
        State Forest Stewardship Coordinating Committee, shall develop 
        a list of approved forest activities and practices that will be 
        eligible for cost-share assistance under the Program within 
        each State.
          ``(2) Type of activities.--In developing a list of approved 
        activities and practices under paragraph (1), the Secretary 
        shall attempt to achieve the establishment, restoration, 
        management, maintenance, and enhancement of forests and trees 
        for the following:
                  ``(A) The sustainable growth and management of 
                forests for timber production.
                  ``(B) The restoration, use, and enhancement of forest 
                wetlands and riparian areas.
                  ``(C) The protection of water quality and watersheds 
                through the application of State-developed forestry 
                best management practices.
                  ``(D) Energy conservation and carbon sequestration 
                purposes.
                  ``(E) Habitat for flora and fauna.
                  ``(F) The control, detection, and monitoring of 
                invasive species on forestlands as well as preventing 
                the spread and providing for the restoration of lands 
                affected by invasive species.
                  ``(G) Hazardous fuels reduction and other management 
                activities that reduce the risks and help restore, 
                recover, and mitigate the damage to forests caused by 
                fire.
                  ``(H) The development of forest or stand management 
                plans.
                  ``(I) Other activities approved by the Secretary, in 
                coordination with the State Forest Stewardship 
                Coordinating Committee.
  ``(e) Cooperation.--In implementing the Program, the Secretary shall 
cooperate with other Federal, State, and local natural resource 
management agencies, institutions of higher education, and the private 
sector.
  ``(f) Reimbursement of Eligible Activities.--
          ``(1) In general.--The Secretary shall share the cost of 
        implementing the approved activities that the Secretary 
        determines are appropriate, in the case of an owner that has 
        entered into an agreement to place nonindustrial private forest 
        lands of the owner in the Program.
          ``(2) Rate.--The Secretary shall determine the appropriate 
        reimbursement rate for cost-share payments under paragraph (1) 
        and the schedule for making such payments.
          ``(3) Maximum.--The Secretary shall not make cost-share 
        payments under this subsection to an owner in an amount in 
        excess of 75 percent of the total cost, or a lower percentage 
        as determined by the State forester, to such owner for 
        implementing the practices under an approved plan. The maximum 
        payments to any one owner shall be determined by the Secretary.
          ``(4) Consultation.--The Secretary shall make determinations 
        under this subsection in consultation with the State forester.
  ``(g) Recapture.--
          ``(1) In general.--The Secretary shall establish and 
        implement a mechanism to recapture payments made to an owner in 
        the event that the owner fails to implement any approved 
        activity specified in the individual stewardship, forest, or 
        stand management plan for which such owner received cost-share 
        payments.
          ``(2) Additional remedy.--The remedy provided in paragraph 
        (1) is in addition to any other remedy available to the 
        Secretary.
  ``(h) Distribution.--The Secretary shall distribute funds available 
for cost sharing under the Program among the States only after giving 
appropriate consideration to--
          ``(1) the total acreage of nonindustrial private forest land 
        in each State;
          ``(2) the potential productivity of such land;
          ``(3) the number of owners eligible for cost sharing in each 
        State;
          ``(4) the opportunities to enhance non-timber resources on 
        such forest lands;
          ``(5) the anticipated demand for timber and nontimber 
        resources in each State;
          ``(6) the need to improve forest health to minimize the 
        damaging effects of catastrophic fire, insects, disease, or 
        weather; and
          ``(7) the need and demand for agroforestry practices in each 
        State.
  ``(i) Definitions.--In this section:
          ``(1) Nonindustrial private forest lands.--The term 
        `nonindustrial private forest lands' means rural lands, as 
        determined by the Secretary, that--
                  ``(A) have existing tree cover or are suitable for 
                growing trees; and
                  ``(B) are owned or controlled by any nonindustrial 
                private individual, group, association, corporation, 
                Indian tribe, or other private legal entity (other than 
                a nonprofit private legal entity) so long as the 
                individual, group, association, corporation, tribe, or 
                entity has definitive decision-making authority over 
                the lands, including through long-term leases and other 
                land tenure systems, for a period of time long enough 
                to ensure compliance with the Program.
          ``(2) Owner.--The term `owner' includes a private individual, 
        group, association, corporation, Indian tribe, or other private 
        legal entity (other than a nonprofit private legal entity) that 
        has definitive decision-making authority over nonindustrial 
        private forest lands through a long-term lease or other land 
        tenure systems.
          ``(3) Secretary.--The term `Secretary' means the Secretary of 
        Agriculture.
          ``(4) State forester.--The term `State forester' means the 
        director or other head of a State Forestry Agency or equivalent 
        State official.
  ``(j) Availability of Funds.--The Secretary shall use $150,000,000 of 
funds of the Commodity Credit Corporation to carry out the Program 
during the period beginning on October 1, 2001, and ending on September 
30, 2011.''.
  (d) Conforming Amendment.--Section 246(b)(2) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6962(b)(2)) is amended 
by striking ``forestry incentive program'' and inserting ``Forest Land 
Enhancement Program''.

SEC. 803. RENEWABLE RESOURCES EXTENSION ACTIVITIES.

  (a) Extension and Authorization Increase.--Section 6 of the Renewable 
Resources Extension Act of 1978 (16 U.S.C. 1675) is amended--
          (1) by striking ``$15,000,000'' and inserting 
        ``$30,000,000''; and
          (2) by striking ``2002'' and inserting ``2011''.
  (b) Sustainable Forestry Outreach Initiative.--The Renewable 
Resources Extension Act of 1978 is amended by inserting after section 
5A (16 U.S.C. 1674a) the following new section:

``SEC. 5B. SUSTAINABLE FORESTRY OUTREACH INITIATIVE.

  ``The Secretary shall establish a program to be known as the 
`Sustainable Forestry Outreach Initiative' for the purpose of educating 
landowners regarding the following:
          ``(1) The value and benefits of practicing sustainable 
        forestry.
          ``(2) The importance of professional forestry advice in 
        achieving their sustainable forestry objectives.
          ``(3) The variety of public and private sector resources 
        available to assist them in planning for and practicing 
        sustainable forestry.''.

SEC. 804. ENHANCED COMMUNITY FIRE PROTECTION.

  (a) Findings.--Congress finds the following:
          (1) The severity and intensity of wildland fires has 
        increased dramatically over the past few decades as a result of 
        past fire and land management policies.
          (2) The record 2000 fire season is a prime example of what 
        can be expected if action is not taken.
          (3) These wildfires threaten not only the nation's forested 
        resources, but the thousands of communities intermingled with 
        the wildlands in the wildland-urban interface.
          (4) The National Fire Plan developed in response to the 2000 
        fire season is the proper, coordinated, and most effective 
        means to address this wildfire issue.
          (5) Whereas adequate authorities exist to tackle the wildfire 
        issues at the landscape level on Federal lands, there is 
        limited authority to take action on most private lands where 
        the largest threat to life and property lies.
          (6) There is a significant Federal interest in enhancing 
        community protection from wildfire.
  (b) Enhanced Protection.--The Cooperative Forestry Assistance Act of 
1978 is amended by inserting after section 10 (16 U.S.C. 2106) the 
following new section:

``SEC. 10A. ENHANCED COMMUNITY FIRE PROTECTION.

  ``(a) Cooperative Management Related to Wildfire Threats.--The 
Secretary may cooperate with State foresters and equivalent State 
officials in the management of lands in the United States for the 
following purposes:
          ``(1) Aid in wildfire prevention and control;
          ``(2) Protect communities from wildfire threats;
          ``(3) Enhance the growth and maintenance of trees and forests 
        that promote overall forest health.
          ``(4) Ensure the continued production of all forest 
        resources, including timber, outdoor recreation opportunities, 
        wildlife habitat, and clean water, through conservation of 
        forest cover on watersheds, shelterbelts, and windbreaks.
  ``(b) Community and Private Land Fire Assistance Program.--
          ``(1) Establishment; purpose.--The Secretary shall establish 
        a Community and Private Land Fire Assistance program--
                  ``(A) to focus the Federal role in promoting optimal 
                firefighting efficiency at the Federal, State, and 
                local levels;
                  ``(B) to augment Federal projects that establish 
                landscape level protection from wildfires;
                  ``(C) to expand outreach and education programs to 
                homeowners and communities about fire prevention; and
                  ``(D) to establish defensible space around private 
                landowners homes and property against wildfires.
          ``(2) Components.--In coordination with existing authorities 
        under this Act, the Secretary may undertake on both Federal and 
        non-Federal lands--
                  ``(A) fuel hazard mitigation and prevention;
                  ``(B) invasive species management;
                  ``(C) multi-resource wildfire planning;
                  ``(D) community protection planning;
                  ``(E) community and landowner education enterprises, 
                including the program known as FIREWISE;
                  ``(F) market development and expansion;
                  ``(G) improved wood utilization;
                  ``(H) special restoration projects.
          ``(3) Considerations.--The Secretary shall use local contract 
        personnel wherever possible to carry out projects under the 
        Program.
  ``(c) Authorization of Appropriations.--There are hereby authorized 
to be appropriated to the Secretary $35,000,000 for each of fiscal 
years 2002 through 2011, and such sums as may be necessary thereafter, 
to carry out this section.''.

SEC. 805. INTERNATIONAL FORESTRY PROGRAM.

  Section 2405(d) of the Global Climate Change Prevention Act of 1990 
(title XXIV of Public Law 101-624; 7 U.S.C. 6704(d)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 806. LONG-TERM FOREST STEWARDSHIP CONTRACTS FOR HAZARDOUS FUELS 
                    REMOVAL AND IMPLEMENTATION OF NATIONAL FIRE PLAN.

  (a) Annual Assessment of Treatment Acreage.--Not later than March 1 
of each of fiscal years 2002 through 2006, the Secretary concerned 
shall submit to Congress an assessment of the number of acres of 
forested Federal lands recommended to be treated during the next fiscal 
year using stewardship end result contracts authorized by subsection 
(c). The assessment shall be based on the treatment schedules contained 
in the report entitled ``Protecting People and Sustaining Resources in 
Fire-Adapted Ecosystems'', dated October 13, 2000, and incorporated 
into the National Fire Plan. The assessment shall identify the acreage 
by condition class, type of treatment, and treatment year to achieve 
the restoration goals outlined in the report within 10-, 15-, and 20-
year time periods. The assessment shall also include changes in the 
restoration goals based on the effects of fire, hazardous fuel 
treatments pursuant to the National Fire Plan, or updates in data.
  (b) Funding Recommendation.--The Secretary concerned shall include in 
the annual assessment a request for funds sufficient to implement the 
recommendations contained in the assessment using stewardship end 
result contracts under subsection (c) when the Secretary concerned 
determines that the objectives of the National Fire Plan are best 
accomplished through forest stewardship end result contracting.
  (c) Stewardship End Result Contracting.--
          (1) Authority.--Subject to the amount of funds made available 
        pursuant to subsection (b), the Secretary concerned may enter 
        into stewardship end result contracts to implement the National 
        Fire Plan on Federal lands based upon the stewardship treatment 
        schedules provided in the annual assessments under subsection 
        (a). The contracting goals and authorities described in 
        subsections (b) through (f) of section 347 of the Department of 
        the Interior and Related Agencies Appropriations Act, 1999 (as 
        contained in section 101(e) of division A of Public Law 105-
        277; 16 U.S.C. 2104 note; commonly known as the Stewardship End 
        Result Contracting Demonstration Project) shall apply to 
        contracts entered into under this subsection, except that the 
        period of the contract shall be 10 years.
          (2) Duration.--The authority of the Secretary concerned to 
        enter into contracts under this subsection expires September 
        30, 2007.
  (d) Status Report.--Beginning with the assessment required under 
subsection (a) in 2003, the Secretary concerned shall include in the 
annual assessment a status report of the stewardship end result 
contracts entered into under the authority of this section.
  (e) Definitions.--In this section:
  In this Act:
          (1) Federal lands.--The term ``Federal lands'' means--
                  (A) National Forest System lands;
                  (B) public lands administered by the Secretary of the 
                Interior, acting through the Bureau of Land Management; 
                and
                  (C) Indian lands.
          (2) Indian lands.--The term ``Indian lands'' means--
                  (A) lands held in trust by the United States for the 
                benefit of an Indian tribe;
                  (B) lands held by an Indian tribe subject to 
                restriction by the United States against alienation; 
                and
                  (C) lands held by an incorporated Alaska Native 
                group, regional corporation, or village corporation 
                under the provisions of the Alaska Native Claims 
                Settlement Act (43 U.S.C. 1601 et seq.).
          (3) Secretary concerned.--The term ``Secretary concerned'' 
        means--
                  (A) the Secretary of Agriculture or the designee of 
                the Secretary of Agriculture with respect to the 
                Federal lands described in paragraph (1)(A); and
                  (B) the Secretary of the Interior or the designee of 
                the Secretary of the Interior with respect to the 
                Federal lands described in paragraphs (1)(B) and 
                (1)(C).

SEC. 807. MCINTIRE-STENNIS COOPERATIVE FORESTRY RESEARCH PROGRAM.

  It is the sense of Congress to reaffirm the importance of Public Law 
87-88 (16 U.S.C. 582a et seq.), commonly known as the McIntire-Stennis 
Cooperative Forestry Act.

                   TITLE IX--MISCELLANEOUS PROVISIONS

                  Subtitle A--Tree Assistance Program

SEC. 901. ELIGIBILITY.

  (a) Loss.--Subject to the limitation in subsection (b), the Secretary 
of Agriculture shall provide assistance, as specified in section 902, 
to eligible orchardists that planted trees for commercial purposes but 
lost such trees as a result of a natural disaster, as determined by the 
Secretary.
  (b) Limitation.--An eligible orchardist shall qualify for assistance 
under subsection (a) only if such orchardist's tree mortality, as a 
result of the natural disaster, exceeds 15 percent (adjusted for normal 
mortality).

SEC. 902. ASSISTANCE.

  The assistance provided by the Secretary of Agriculture to eligible 
orchardists for losses described in section 901 shall consist of 
either--
          (1) reimbursement of 75 percent of the cost of replanting 
        trees lost due to a natural disaster, as determined by the 
        Secretary, in excess of 15 percent mortality (adjusted for 
        normal mortality); or
          (2) at the discretion of the Secretary, sufficient seedlings 
        to reestablish the stand.

SEC. 903. LIMITATION ON ASSISTANCE.

  (a) Limitation.--The total amount of payments that a person shall be 
entitled to receive under this subtitle may not exceed $50,000, or an 
equivalent value in tree seedlings.
  (b) Regulations.--The Secretary of Agriculture shall issue 
regulations--
          (1) defining the term ``person'' for the purposes of this 
        subtitle, which shall conform, to the extent practicable, to 
        the regulations defining the term ``person'' issued under 
        section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) 
        and the Disaster Assistance Act of 1988 (7 U.S.C. 1421 note); 
        and
          (2) prescribing such rules as the Secretary determines 
        necessary to ensure a fair and reasonable application of the 
        limitation established under this section.

SEC. 904. DEFINITIONS.

  In this subtitle:
          (1) Eligible orchardist.--The term ``eligible orchardist'' 
        means a person who produces annual crops from trees for 
        commercial purposes and owns 500 acres or less of such trees.
          (2) Natural disaster.--The term ``natural disaster'' includes 
        plant disease, insect infestation, drought, fire, freeze, 
        flood, earthquake, and other occurrences, as determined by the 
        Secretary.
          (3) Tree.--The term ``tree'' includes trees, bushes, and 
        vines.

 Subtitle B--Advisory Council and Federal Interagency Working Group on 
                        Upper Mississippi River

SEC. 911. DEFINITIONS.

  In this subtitle:
          (1) The term ``Advisory Council'' means the Advisory Council 
        on the Upper Mississippi River Stewardship Initiative 
        established by this subtitle.
          (2) The terms ``Upper Mississippi River Basin'' and ``Basin'' 
        mean the watershed portion of the Upper Mississippi River and 
        Illinois River basins, from Cairo, Illinois to the headwaters 
        of the Mississippi River. The designation includes the 
        Kaskaskia watershed along the Illinois River, and the Meramec 
        watershed along the Missouri River.
          (3) The terms ``Upper Mississippi River Stewardship 
        Initiative'' and ``Initiative'' mean activities undertaken to 
        monitor and reduce nutrient and sediment loss in the Upper 
        Mississippi River Basin.

SEC. 912. ESTABLISHMENT OF ADVISORY COUNCIL ON THE UPPER MISSISSIPPI 
                    RIVER STEWARDSHIP INITIATIVE.

  (a) Establishment.--The Secretary of Agriculture, in consultation 
with the governors specified in subsection (c), shall establish an 
advisory body, to be known as the Advisory Council on the Upper 
Mississippi River Stewardship Initiative, to provide guidance regarding 
the Initiative.
  (b) Membership.--
          (1) Voting members.--The Advisory Council shall consist of a 
        total of 15 voting members.
          (2) Chairperson.--Voting members shall elect one member 
        appointed under subparagraph (c) to serve as chairperson for 
        the Advisory Council. The chairperson shall serve for a term 
        lasting no more than one year.
  (c) Appointment.--The governors of the States of Minnesota, 
Wisconsin, Illinois, Iowa, and Missouri shall each appoint two voting 
members of the Advisory Council, to be selected from nongovernmental 
agriculture, natural resources, recreational, and environmental groups 
and other persons with interests in the sustainability and health of 
the natural resources of the Upper Mississippi River Basin.
  (d) State Technical Committee Representation.--The five remaining 
voting members of the Advisory Council shall be drawn from the State 
Technical Committees established by the Secretary of Agriculture under 
section 1261 of the Food Security Act of 1985 (16 U.S.C. 3861) for the 
States of Minnesota, Wisconsin, Illinois, Iowa, and Missouri. The 
Secretary of Agriculture shall select one member from each of these 
State Technical Committees.
  (e) Nonvoting Members.--The governors referred to in subsection (c) 
shall also each appoint one nonvoting member for the Advisory Council 
who will serve as representatives of the governors.
  (f) Per Diem.--Members of the Advisory Council, including members 
appointed pursuant to subsection (e), shall receive the Federal per 
diem for transportation and lodging associated with meetings and other 
activities of the Advisory Council.

SEC. 913. RESPONSIBILITIES OF ADVISORY COUNCIL.

  (a) Coordination and Communication.--The Advisory Council shall serve 
as a means for coordination, communication, and information sharing 
regarding such issues in the Upper Mississippi River Basin as follows:
          (1) Science and technology concerning conservation practices.
          (2) Monitoring and modeling needs.
          (3) Strategies for implementing conservation assistance and 
        programs.
          (4) Performance assessment.
          (5) Evaluation and reporting.
  (b) Annual Report on Reduction Efforts.--
          (1) Preparation.--The Advisory Council shall prepare an 
        annual report regarding publicly-financed efforts to reduce 
        sediment and nutrient loss in the Upper Mississippi River 
        Basin.
          (2) Submission.--The annual report shall be submitted--
                  (A) to the State legislatures of the States of 
                Wisconsin, Minnesota, Iowa, Illinois, Missouri, 
                Kentucky, Tennessee, Arkansas, Louisiana, and 
                Mississippi;
                  (B) to the Upper Mississippi River Basin Association; 
                and
                  (C) to the Congress.
  (c) Special Task Forces.--For the purpose of maximizing and 
diversifying the involvement of people in the activities of the 
Advisory Council and addressing specific issues referred to in 
subsection (a), the Advisory Council shall create issue specific task 
forces as necessary to effectively carry out the responsibilities of 
the Advisory Council. The Advisory Council shall consult with the 
Interagency Working Group and appropriate State agencies in 
establishing any such task force and before dissolving any such task 
force when it becomes obsolete.
  (d) Public Meetings.--As part of its responsibilities under this 
section, the Advisory Council shall hold annual public meetings in each 
of the States of Wisconsin, Minnesota, Iowa, Illinois, and Missouri to 
formulate recommendations and seek public input regarding methods and 
priorities to reduce sediment and nutrient loss in the Upper 
Mississippi River Basin. To qualify as the annual meeting in a State, 
at least two of the three members of the Advisory Council from that 
State must be present at the meeting.
  (e) Staff Director.--The Secretary of Agriculture shall appoint an 
employee of the Natural Resources Conservation Service of the 
Department of Agriculture to act as staff director for the Advisory 
Council. The staff director shall work in conjunction with the 
chairperson of the Advisory Council to assist in coordinating the 
activities of the Advisory Council.

SEC. 914. ADVISORY NATURE OF COUNCIL.

  (a) In General.--The Advisory Council is purely advisory and shall 
have no implementation or enforcement authority. However, the Secretary 
of Agriculture and the heads of the other Federal agencies in the 
Interagency Working Group established under section 915 shall give 
strong consideration to the recommendations of the Advisory Council in 
administering natural resources programs of the Upper Mississippi River 
Basin.
  (b) Public Outreach.--The Secretary of Agriculture shall work with 
the Advisory Council to coordinate outreach activities in the Upper 
Mississippi River Basin related to technologies and other methods to 
reduce sediment and nutrient loss.

SEC. 915. FEDERAL INTERAGENCY WORKING GROUP.

  (a) Establishment.--The Secretary of Agriculture and the Secretary of 
the Department of the Interior shall establish an Interagency Working 
Group to coordinate Federal nutrient and sediment reduction efforts in 
the Upper Mississippi River Basin under the Initiative.
  (b) Chairperson; Additional Input and Participation.--The Secretary 
of Agriculture (or the designee of the Secretary) shall serve as 
chairperson of the Interagency Working Group and may solicit input and 
participation by other Federal agencies engaged in sediment and 
nutrient reduction efforts in the Upper Mississippi River Basin.
  (c) Annual Work Plan and Budget.--The Interagency Working Group shall 
annually develop a coordinated work plan and budget for the Federal 
agencies participating in the Initiative--
          (1) to better coordinate Federal efforts to address sediment 
        and nutrient reduction in the Upper Mississippi River Basin;
          (2) to encourage Federal agencies responsible for sediment 
        and nutrient reduction efforts to leverage local, State, and 
        Federal resources;
          (3) to identify gaps and overlapping programs; and
          (4) to better prioritize existing Federal spending to address 
        major sources of sediment and nutrient loss.
  (d) Coordination.--The Interagency Working Group shall coordinate its 
recommendations to be included in the work plan and budget with those 
of individual agencies.
  (e) Submission of Work Plan and Budget.--Not later than September 15 
of each year, the Interagency Working Group shall submit to the Office 
of Management and Budget the work plan and budget required by 
subsection (c).

SEC. 916. AUTHORIZATION OF APPROPRIATIONS.

  There is authorized to be appropriated $400,000 for each of fiscal 
years 2003 through 2011 to carry out this subtitle.

                       Subtitle C--Other Matters

SEC. 921. HAZARDOUS FUEL REDUCTION GRANTS TO PREVENT WILDFIRE DISASTERS 
                    AND TRANSFORM HAZARDOUS FUELS TO ELECTRIC ENERGY, 
                    USEFUL HEAT, OR TRANSPORTATION FUELS.

  (a) Findings.--Congress finds the following:
          (1) The damages caused by wildfire disasters have been 
        equivalent in magnitude to the damage resulting from the 
        Northridge earthquake, Hurricane Andrew, and the recent 
        flooding of the Mississippi River and the Red River.
          (2) More than 20,000 communities in the United States are at 
        risk to wildfire and approximately 11,000 of these communities 
        are located near Federal lands. More than 72,000,000 acres of 
        National Forest System lands and 57,000,000 acres of lands 
        managed by the Secretary of the Interior are at risk of 
        catastrophic fire in the near future. The accumulation of heavy 
        forest fuel loads continues to increase as a result of disease, 
        insect infestations, and drought, further raising the risk of 
        fire each year.
          (3) Modification of forest fuel load conditions through the 
        removal of hazardous fuels will minimize catastrophic damage 
        from wildfires, reducing the need for emergency funding to 
        respond to wildfires and protecting lives, communities, 
        watersheds, and wildlife habitat.
          (4) The hazardous fuels removed from forest lands represent 
        an abundant renewable resource as well as a significant supply 
        of biomass for biomass-to-energy facilities.
  (b) Hazardous Fuels to Energy Grant Program.--The Secretary concerned 
may make a grant to a person that operates a biomass-to-energy facility 
to offset the costs incurred to purchase hazardous fuels from forest 
lands for use by the facility in the production of electric energy, 
useful heat, or transportation fuels. The Secretary concerned shall 
select grant recipients on the basis of their planned purchases of 
hazardous fuels and the level of anticipated benefits to reduced 
wildfire risk.
  (c) Grant Amounts.--A grant under this section shall be equal to at 
least $5 per ton of hazardous fuels delivered, but not to exceed $10 
per ton of hazardous fuels delivered, based on the distance of the 
hazardous fuels from the biomass-to-energy facility.
  (d) Monitoring of Grant Recipient Activities.--As a condition on a 
grant under this section, the grant recipient shall keep such records 
as the Secretary concerned may require to fully and correctly disclose 
the use of the grant funds and all transactions involved in the 
purchase of hazardous fuels derived from forest lands. Upon notice by a 
duly authorized representative of the Secretary concerned, the operator 
of a biomass-to-energy facility that purchases or uses the resulting 
hazardous fuels shall afford the representative reasonable access to 
the facility and an opportunity to examine the inventory and records of 
the facility.
  (e) Monitoring of Effect of Treatments.--The Secretary concerned 
shall monitor Federal lands from which hazardous fuels are removed and 
sold to a biomass-to-energy facility to determine and document the 
reduction in fire hazards on such lands.
  (f) Definitions.--In this section:
          (1) Biomass-to-energy facility.--The term ``biomass-to-energy 
        facility'' means a facility that uses forest biomass as a raw 
        material to produce electric energy, useful heat, or 
        transportation fuels.
          (2) Forest biomass.--The term ``forest biomass'' means 
        hazardous fuels and biomass accumulations from precommercial 
        thinnings, slash, and brush on forest lands that do not satisfy 
        the definition of hazardous fuels.
          (3) Hazardous fuels.--The term ``hazardous fuels'' means any 
        unnaturally excessive accumulation of organic material, 
        particularly in areas designated as condition class 2 or 
        condition class 3 (as defined in the report entitled 
        ``Protecting People and Sustainable Resources in Fire-Adapted 
        Ecosystems'', prepared by the Forest Service, and dated October 
        13, 2000), on forest lands that the Secretary concerned 
        determines poses a substantial present or potential hazard to 
        forest ecosystems, wildlife, human, community, or firefighter 
        safety in the case of a wildfire, particularly a wildfire in a 
        drought year.
          (4) Secretary concerned.--The term ``Secretary concerned'' 
        means--
                  (A) the Secretary of Agriculture or the designee of 
                the Secretary of Agriculture with respect to the 
                National Forest System lands and private lands; and
                  (B) the Secretary of the Interior or the designee of 
                the Secretary of the Interior with respect to Federal 
                lands under the jurisdiction of the Secretary of the 
                Interior and Indian lands.
  (g) Authorization of Appropriations.--There is authorized to be 
appropriated $50,000,000 for each fiscal year to carry out this 
section.

SEC. 922. BIOENERGY PROGRAM.

  Notwithstanding any limitations in the Commodity Credit Corporation 
Charter Act (15 U.S.C. 714 et seq.) or part 1424 of title 7, Code of 
Federal Regulations, the Commodity Credit Corporation shall designate 
animal fats, agricultural byproducts, and oils as eligible agricultural 
commodities for use in the Bioenergy Program to promote industrial 
consumption of agricultural commodities for the production of ethanol 
and biodiesel fuels.

SEC. 923. AVAILABILITY OF SECTION 32 FUNDS.

  The 2d undesignated paragraph of section 32 of the Act of August 24, 
1935 (Public Law 320; 49 Stat. 774; 7 U.S.C. 612c), is amended by 
striking ``$300,000,000'' and inserting ``$500,000,000''.

SEC. 924. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

  (a) Establishment.--For each of the fiscal years 2002 through 2011, 
the Secretary of Agriculture shall use $15,000,000 of the funds 
available to the Commodity Credit Corporation to carry out and expand a 
seniors farmers' market nutrition program.
  (b) Program Purposes.--The purposes of the seniors farmers' market 
nutrition program are--
          (1) to provide resources in the form of fresh, nutritious, 
        unprepared, locally grown fruits, vegetables, and herbs from 
        farmers' markets, roadside stands and community supported 
        agriculture programs to low-income seniors;
          (2) to increase the domestic consumption of agricultural 
        commodities by expanding or aiding in the expansion of domestic 
        farmers' markets, roadside stands, and community supported 
        agriculture programs; and
          (3) to develop or aid in the development of new and 
        additional farmers' markets, roadside stands, and community 
        supported agriculture programs.
  (c) Regulations.--The Secretary may issue such regulations as the 
Secretary considers necessary to carry out the seniors farmers' market 
nutrition program.

SEC. 925. FEDERAL MARKETING ORDER FOR CANE BERRIES.

  The Secretary of Agriculture shall issue a Federal marketing order 
for cane berries grown in the United States.

SEC. 926. NATIONAL APPEALS DIVISION.

  Section 278 of the Department of Agriculture Reorganization Act of 
1994 (7 U.S.C. 6998) is amended by adding at the end the following new 
subsection:
  ``(f) Finality of Certain Appeal Decisions.--If an appellant prevails 
at the regional level in an administrative appeal of a decision by the 
Division, the agency may not pursue an administrative appeal of that 
decision to the national level.''.

SEC. 927. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS 
                    AND RANCHERS.

  Subsection (a) of section 2501 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is amended to read 
as follows:
  ``(a) Outreach and Assistance.--
          ``(1) In general.--The Secretary of Agriculture (in this 
        section referred to as the `Secretary') shall provide outreach 
        and technical assistance programs specifically to encourage and 
        assist socially disadvantaged farmers and ranchers to own and 
        operate farms and ranches and to participate equitably in the 
        full range of agricultural programs. This assistance, which 
        should enhance coordination and make more effective the 
        outreach, technical assistance, and education efforts 
        authorized in specific agriculture programs, shall include 
        information and assistance on commodity, conservation, credit, 
        rural, and business development programs, application and 
        bidding procedures, farm and risk management, marketing, and 
        other essential information to participate in agricultural and 
        other programs of the Department.
          ``(2) Grants and contracts.--The Secretary may make grants 
        and enter into contracts and other agreements in the 
        furtherance of this section with the following entities:
                  ``(A) Any community-based organization, network, or 
                coalition of community-based organizations that--
                          ``(i) has demonstrated experience in 
                        providing agricultural education or other 
                        agriculturally related services to socially 
                        disadvantaged farmers and ranchers;
                          ``(ii) provides documentary evidence of its 
                        past experience of working with socially 
                        disadvantaged farmers and ranchers during the 
                        two years preceding its application for 
                        assistance under this section; and
                          ``(iii) does not engage in activities 
                        prohibited under section 501(c)(3) of the 
                        Internal Revenue Code of 1986.
                  ``(B) 1890 Land-Grant Colleges, including Tuskegee 
                Institute, Indian tribal community colleges and Alaska 
                native cooperative colleges, Hispanic serving post-
                secondary educational institutions, and other post-
                secondary educational institutions with demonstrated 
                experience in providing agriculture education or other 
                agriculturally related services to socially 
                disadvantaged family farmers and ranchers in their 
                region.
                  ``(C) Federally recognized tribes and national tribal 
                organizations with demonstrated experience in providing 
                agriculture education or other agriculturally related 
                services to socially disadvantaged family farmers and 
                ranchers in their region.
          ``(3) Fnding.--There are authorized to be appropriated 
        $25,000,000 for each fiscal year to make grants and enter into 
        contracts and other agreements with the entities described in 
        paragraph (2) and to otherwise carry out the purposes of this 
        subsection.''.

                           Brief Explanation


                      TITLE I--COMMODITY PROGRAMS

     Maintains maximum planting flexibility while 
providing counter-cyclical protection to help farmers weather 
adverse market conditions.
     Retains fixed-decoupled payments, as well as the 
marketing loan program. Marketing loan rates are maintained for 
all commodities except oilseeds, which are established at a 
level equivalent to other commodities, and grain sorghum, which 
is established at a level equivalent to corn.
     Provides producers with the option to update base 
acreage. Current base yields are maintained. Both fixed-
decoupled, and counter-cyclical payments are made on the 
producer's base.
     For oilseeds and farms without current AMTA 
payment base and yields, the Secretary is directed to develop 
payment yields that are comparable to current AMTA yields in 
the area.
     Counter-cyclical payments are triggered when a 
crop's price, adjusted for the fixed decoupled payment, is 
below the target price. The payment rate for a crop would be 
calculated as the difference between its target price and the 
sum of the following components:
          (a) The higher of the national twelve-month season 
        average price received by producers, or the national 
        average loan.
          (b) The fixed decoupled payment rate.

                           LOAN RATES, FIXED DECOUPLED PAYMENT RATES AND TARGET PRICES
----------------------------------------------------------------------------------------------------------------
                                                                                                       Target
                    Crop                               $/Unit            Loan rates    Fixed rate      prices
----------------------------------------------------------------------------------------------------------------
Wheat......................................  Bu.......................        2.58          0.53          4.04
Corn.......................................  Bu.......................        1.89          0.30          2.78
Sorghum....................................  Bu.......................        1.89          0.36          2.64
Barley.....................................  Bu.......................        1.65#         0.25          2.39
Oats.......................................  Bu.......................        1.21#         0.025         1.47
Upland Cotton..............................  Lb.......................        0.5192         .0667         .736
Rice.......................................  Cwt......................        6.50          2.35         10.82
Soybeans...................................  Bu.......................        4.92          0.42          5.86
Minor Oilseeds.............................  Lb.......................        0.087          .0074         .1036
----------------------------------------------------------------------------------------------------------------

                              Other Crops

     Sugar. Eliminates the marketing assessment on 
sugar, reduces the CCC interest rate on price support loans, 
authorizes a Payment-in-Kind program, reestablishes the no-net-
cost feature of the program, and provides the Secretary with 
authority to implement allotments on domestic sugar production.
     Dairy. Extends the milk price support program at 
$9.90 per cwt. through 2011.
     Wool and Mohair. Creates a marketing assistance 
loan program similar to the marketing loan program for other 
commodities. Provides producers marketing loans or loan 
deficiency payments. Provides a loan rate of $1.00 per pound 
for graded wool, $0.40 per pound for nongraded wool, and $4.20 
per pound for mohair.
     Honey. Creates a marketing assistance loan program 
similar to the marketing loan program for other commodities. 
Provides producers marketing loans or loan deficiency payments. 
Provides a loan rate of $0.60 per pound.
     Peanuts. Makes historic reforms to the peanut 
program, which will closely mirror the program for other staple 
crops. Provides a fixed decoupled payment at $0.018 per pound, 
a counter-cyclical program with a target price of $480 per ton, 
and a marketing loan at $350 per ton. Terminates the marketing 
quota program and compensates the quota holders for the loss of 
the quota asset value at $0.10 per pound per year for five 
years.
     Fruits and Vegetables. Provides the Secretary with 
sole decision authority to combat outbreaks of plant and animal 
diseases with emergency funds, retains planting restriction of 
fruits and vegetables on base acres, provides an additional 
$200 million in spending authority for surplus commodity 
purchases under Section 32, increases the Market Access Program 
(MAP) by $110 million per year, creates a Technical Assistance 
Specialty Crop (TASC) fund to assist with trade barriers, 
significantly increases EQIP funding with targeted spending for 
water conservation assistance, and provides $15 million per 
year through 2011 for the Senior's Farmers Market Program--a 
program administered through States that provides vouchers, or 
coupons to seniors to purchase fresh fruits and vegetables at 
farmers markets.

                         TITLE II--CONSERVATION

    The conservation section devotes over $16 billion over 10 
years to soil, water, and wildlife programs. This represents 
over a 75% increase in baseline spending.
     Reauthorizes the Conservation Reserve Program 
(CRP) through 2011 with a 39.5 million-acre enrollment cap. 
Secretary may permit harvesting of biomass for energy on CRP 
acreage with a reduction in rental rate.
     Reauthorizes the Environmental Quality Incentives 
Program (EQIP) through 2011 at $1.2 billion annual program 
level, with livestock producers receiving 50% of annual 
funding. In addition, a $675 million fund is created in EQIP to 
address ground water conservation issues, including cost share 
for more efficient irrigation systems. In addition, there is 
explicit authority for the Secretary to implement an incentives 
payment program for producers of annual and perennial crops, 
such as tree nuts or fruits. This program places a high 
priority on residue, nutrient, pest, invasive species, and air 
quality management.
     Reauthorizes the Wetlands Reserve Program (WRP) 
through 2011 and provides for an additional 150,000 acres to be 
enrolled per year.
     Reauthorizes the Wildlife Habitat Incentives 
Program (WHIP) to provide cost share for landowners to enhance 
wildlife habitat at a program level of $25 million annually.
     Reauthorizes the Farmland Protection Program (FPP) 
at a program level of $50 million annually. Makes agricultural 
land that contains historic or archeological resources 
eligible.
     Authorizes 2 million acres in a Grassland Reserve 
Program to be enrolled in 10, 15 and 20 year contracts--1 
million acres to native grass and 1 million acres devoted to 
restored grasslands.
     Provides up to $100 million per year (up to $850 
million over the 10-year period) to provide conservation 
technical assistance to producers using any governmental or 
private contractors.
     Provides $150 million to fund Small Watershed Dam 
Restoration.
     Provides producers participating in conservation 
programs with protection against the release of confidential 
information by the agency.
     Creates an advisory council for the Upper 
Mississippi River Stewardship Initiative. Also creates a 
federal interagency working group to coordinate nutrient and 
sediment reduction efforts in the Upper Mississippi River Basin 
under the Initiative.

                            TITLE III--TRADE

     Reauthorizes the Market Access Program (MAP) 
through 2011. Increases funding by $110 million per year (from 
$90 million to $200 million).
     Reauthorizes the Food for Progress program (FFP) 
through 2011. Increases transportation and administrative funds 
to facilitate additional food aid.
     Reauthorizes the Foreign Market Development 
program and increases funding to $35 million a year through 
2011.
     Reauthorizes the Export Enhancement Program (EEP) 
through 2011.
     Reauthorizes the Dairy Export Incentive Program 
(DEIP) through 2011.
     Reauthorizes the Food for Peace program through 
2011.

                      TITLE IV--NUTRITION PROGRAMS

     Provides $40 million annually in additional funds 
for the Emergency Food Assistance Program (EFAP).
     Simplifies the application process for the Food 
Stamp program; improves quality control; increases standard 
deduction; provides a 6-month transition benefit for those 
leaving welfare; and simplifies State level program operations.

                            TITLE V--CREDIT

     Makes improvements to the loan guarantee programs, 
including adjustments in the administration of the FSA credit 
programs to assist FSA in making, guaranteeing and servicing 
loans.

                      TITLE VI--RURAL DEVELOPMENT

     Provides additional funds for Emergency Drinking 
Water Grants.
     Provides additional funds to establish a Strategic 
Planning Initiative to provide for regionally planned rural 
development pilot programs.
     Provides $2 billion in program level funding for 
loan guarantees to implement the Launching Our Communities 
Access to Local Television Act of 2000.
     Provides $50 million per year in funding for the 
Value Added Grants Program to provide grants for start-up 
farmer-owned value added processing facilities.

                          TITLE VII--RESEARCH

     Continues the Research Initiative for Future 
Agricultural Systems at a program level of $145 million per 
year for fiscal years 2004 through 2011.
     Reauthorizes the existing research programs.
     Improves on programs to include priority research 
items, such as energy efficiency and value-added agricultural 
production and marketing.

                    TITLE VIII--FORESTRY INITIATIVES

     Creates a new Forest Land Enhancement Program by 
combining the existing Forestry Incentives Program and 
Stewardship Incentives Program. Provides funding of $15 million 
per year.
     Reauthorizes the Renewable Resources Extension Act 
through 2011 at $30 million annually. Also creates a 
Sustainable Forestry Outreach Initiative within the RREA to 
provide education to landowners about sustainable forestry 
practices.
     Reauthorizes the International Forestry Program 
through 2011.
     Provides the Secretary with the authority to enter 
into stewardship end result contracts to implement the National 
Fire Plan on Federal lands.
     Reaffirms the importance of the McIntire-Stennis 
Cooperative Forestry Act.
     Provides enhanced community fire protection by 
directing the Secretary to coordinate with local communities in 
implementing rural fire protection and control strategies. Also 
creates a Community and Private Land Fire Assistance Program 
which enables the Secretary to undertake a variety of 
activities aimed at preventing fires on both federal and non-
federal lands.

                        TITLE IX--MISCELLANEOUS

     Establishes a marketing order for cane berries.
     Increases the authorization of appropriations for 
socially disadvantaged farmers and ranchers from $10 million in 
each fiscal year to $25 million.
     Establishes the Advisory Council on the Upper 
Mississippi River Stewardship Initiative to provide guidance on 
the activities of the Initiative.
     Authorizes the Secretary to make grants to energy 
producers who use hazardous fuels extracted from forestlands as 
biomass for the production of electric energy, useful heat, or 
transportation fuels. The grants will be awarded based on the 
planned purchase of hazardous fuels and the level of 
anticipated benefit to reduce wildfire risk. The grants will 
amount to no less than $5 per ton and no more than $10 per ton 
of hazaradous fuels delivered. There is authorized to be 
appropriated $50,000,000 for each fiscal year to carry out this 
section.
     Instructs the Secretary to allow animal fats, 
agricultural by-products and oils to be included as eligible 
commodities under the Bioenergy Program.
     Provides that any decision made at the regional 
level of the National Appeals Division in favor of an appellant 
may not be administratively appealed by an Agency to the 
Director of the National Appeals Division.
     Provides financial or seeding assistance to 
orchardists who have lost trees as a result of a natural 
disaster.

                            Purpose and Need


                      TITLE I--COMMODITY PROGRAMS

    American agriculture is in an economic crisis. In 2000, 
crop prices were at a 27-year low for soybeans, a 25-year low 
for cotton, a 14-year low for wheat and corn and an 8-year low 
for rice. Over the past three years, net cash income fell in 
real dollars to its lowest point since the Great Depression. 
The current farm recession, in its fourth year, ranks among the 
deepest in our nation's history, along with the Great 
Depression, the post-World War I and II recessions, and the 
financial ruin of the 1980s.
    For 2001, most projections show very little improvement in 
commodity prices with production expenses rising to record 
levels. Looking back to when Congress passed the Federal 
Agriculture Improvement and Reform Act of 1996, no one on 
either side of the aisle predicted the current malaise of high 
costs and low commodity prices. In fact, today's prices for 
wheat, corn, and soybeans are 31 percent lower than the U.S. 
Department of Agriculture's (``USDA'') projected prices at the 
time the legislation was enacted.
    There are many factors that have contributed to this dismal 
situation that are beyond the control of individual producers. 
American agriculture depends heavily on the strength of foreign 
markets for returns on commodity production. In recent months, 
however, worldwide demand for U.S. products has not met 
expectations for a variety of reasons. Repercussions are still 
being felt from the Asian economic crisis that began three 
years ago. Further, three years of worldwide good weather have 
created commodity surpluses all around the globe. Compounding 
this situation for U.S. producers is the strength of the dollar 
that has contributed to a substantial increase in the relative 
cost of U.S. commodities. In fact, USDA estimates that the 
value of the dollar is up 25 percent relative to our customers' 
currencies and up 40 percent relative to our major competitors' 
currencies.
    In addition, domestic producers continue to compete on an 
uneven international playing field in light of trade barriers. 
Despite some progress in lowering trade barriers through the 
World Trade Organization, the fact remains that the average 
tariff on U.S. farm products in other countries is 62 percent, 
while the average U.S. tariff on goods coming into the U.S. is 
approximately 12 percent. Beyond high tariffs, our farmers also 
face the daunting challenge of competing with high foreign 
subsidies. For example, the average subsidy level in the 
European Union during 1997 to 1999 was $342 per acre, while the 
average subsidy level in the U.S. was only $43 per acre.
    The effect of low commodity prices has been magnified in 
the 2001 crop year by skyrocketing energy costs. Between 1999 
and 2000, U.S. producers incurred an additional $2.4 billion in 
fuel costs. This is a 40 percent increase from years past. For 
the 2001 crop year, energy costs are expected to contribute to 
a $1.5 billion increase in production expenses. Diesel prices 
for 2001 are expected to average $1.50 per gallon which is a 50 
percent increase from last year. In addition, last year's 
rising natural gas prices have fueled sharply increased costs 
for irrigation and nitrogen fertilizer.
    In each of the last three years, Congress has responded to 
the needs of American agriculture with emergency assistance. 
This money has provided a critical source of income for 
producers of contract crops and soybeans. Indeed, had Congress 
not provided nearly $25 billion in supplemental assistance to 
farmers in the last three years, tens of thousands of farmers 
would have been forced out of business, having a devastating 
impact on rural America.
    In this year's Budget Resolution, the Committee on Budget 
provided the Committee on Agriculture a total of $73.5 billion 
for fiscal 2002 through 2011 for reauthorizing the farm bill. 
Additionally, $5.5 billion was allocated to the Committee to 
appropriate as supplemental funding during fiscal year 2001. 
Due to the terms of the Budget Resolution, the Committee deemed 
it necessary to take action in order to fully utilize the 
Budget Committee's generous funds.
    The need to reauthorize the farm bill a year before its 
expiration is immense. The comprehensive product of the 
Committee is a culmination of nearly two years of work. The 
Committee held 15 hearings on federal farm policy in 2000, 10 
of which were held in rural America. Twenty-one hearings were 
held on the commodity title in 2001; sixteen were held by the 
Committee in Washington, D.C., 3 were held across the country 
by the Subcommittee on General Farm Commodities and Risk 
Management, 1 was held by the Subcommittee on Specialty Crops 
and Foreign Agriculture Programs, and 1 was held by the 
Subcommittee on Livestock and Horticulture. A common message 
was voiced throughout the hearings: retain planting flexibility 
and provide a safety net for times of low prices. Within Title 
I, the Committee provides producers with planting flexibility 
through annual decoupled assistance and a price safety net 
through the establishment of target prices for eligible program 
crops.
    The Committee is hopeful that the Farm Security Act of 2001 
will eliminate the need for ad hoc economic assistance to 
producers. The legislation includes a carefully crafted 
counter-cyclical mechanism that seeks to provide assistance 
during price-deficient crop years. The Committee believes this 
is fiscally responsible and that this mechanism provides a more 
predictable safety net for Congress, lenders, and producers.
    The U.S. cotton industry is particularly sensitive to the 
effects of an appreciating dollar because of its impact on 
imports of cotton textile and apparel products. Some believe 
that the strong appreciation of the dollar since the mid-1990s 
has significantly lowered the price of foreign-produced 
textiles and apparel in the U.S. market, increasing the 
competitive advantage of foreign firms at the expense of U.S.-
based enterprises; such is evidenced through the drop in mill 
consumption. During Committee consideration, Mr. Hayes offered 
and withdrew an amendment to eliminate the 1.25-cent threshold 
currently used in the calculation of Step 2 payment rates. The 
adjustment would have effectively reduced the cost of raw 
cotton to domestic textile manufacturers and would have enabled 
shippers to price U.S. cotton more aggressively for export. Had 
it been adopted, the amendment would have been a step toward 
offsetting the adverse effects of a strong dollar. A number of 
Committee Members voiced their concern on the adverse effects 
of a strong dollar and hoped that attention would be given to 
the issue.
    The price of milk to dairy producers in the United States 
has been supported continuously for over 50 years since the 
enactment of the Agricultural Act of 1949. Since 1981, the 
support level has been established by Congress either at 
specific price levels, or by formula tied to anticipated 
Commodity Credit Corporation (CCC) dairy product purchases. The 
current support price of $9.90 per hundredweight for milk 
containing 3.67 percent milkfat has been in effect since 
January 1, 1999.
    To carry out the price support program, the CCC offers to 
buy cheese, butter and nonfat dry milk at announced prices, 
thus providing a floor for dairy product prices. The Secretary 
of Agriculture establishes the purchase prices for each product 
to enable plants of average efficiency to process and market 
products to CCC and pay, on average, producers the announced 
support price. The CBO estimated cost of extending the price 
support program is $773 million over 10 years.
    The government assists dairy exports through the Dairy 
Export Incentive Program (DEIP). The program is used to help 
U.S. dairy products meet competition from subsidizing 
countries, especially the European Union. Products eligible for 
DEIP are milk powders, butterfat and cheese. The DEIP is 
currently authorized through December 31, 2002.
    DEIP sales are made by private firms. Upon contacting a 
potential buyer, the prospective exporter submits a bid to USDA 
requesting a cash bonus that would allow the sale to take 
place. If accepted by USDA the bonus is paid after the exporter 
provides evidence that the dairy product has been exported. 
Estimated outlays under the Dairy Export Incentive Program, 
based on the April 2001 CBO baseline are anticipated to be $982 
million over 10 years.
    The Fluid Milk Promotion and Education Program (also known 
as MilkPEP) has contributed to slowing the decades-long erosion 
in milk consumption and positioned the milk industry to better 
compete with soft drinks and other competitive beverages. 
Through the MilkPEP program, fluid milk processors invest about 
$110 million annually in generic advertising and promotion 
activities to promote consumption of beverage milks. The 
program, which has been in effect for six years, works in close 
coordination with the dairy producer promotion program to 
maximize the effectiveness of dollars spent to enhance milk 
sales.
    Recently, the MilkPEP program has been successful in 
developing long-term partnerships with major companies such as 
AOL and Disney, which provide marketing tools never before 
available to assist milk companies in marketing their products. 
MilkPEP has created new opportunities to make milk more 
available, such as in recent work to position milk vending 
machines in schools.
    The Dairy Market Enhancement Act of 2000 provides that the 
Secretary of Agriculture shall establish a program of mandatory 
dairy product information reporting that will provide timely, 
accurate, and reliable market information. In addition to a 
reporting program relating to price, quantity, and moisture 
content of dairy products which has been implemented, the Act's 
mandatory reporting program relates to the quantity of dairy 
products being stored. To date, the Department of Agriculture 
has not established a program of mandatory stored dairy 
products reporting presumably due to questions concerning the 
authority to establish reporting requirements for substantially 
equivalent dairy products.
    The Dairy Production Stabilization Act of 1983 (Dairy Act) 
authorized a national producer program for dairy product 
promotion, research, and nutrition education to increase human 
consumption of milk and dairy products and reduce milk 
surpluses. Under the program promotion and research is 
conducted to strengthen the dairy industry's position in the 
marketplace and to maintain and expand domestic and foreign 
markets and uses for fluid milk products and dairy products 
produced in the United States.
    This self-help program is funded by a mandatory 15-cent-
per-hundredweight assessment on all milk produced in the 
contiguous 48 States and marketed commercially by dairy 
farmers. The Dairy Act provides that dairy producers can direct 
up to 10 cents per hundredweight of the assessment for 
contributions to qualified regional, State, or local dairy 
product promotion, research, or nutrition education programs.
    Dairy checkoff revenue from the 15-cent-per-hundredweight 
producer assessment was $246 million for 2000.

                         TITLE II--CONSERVATION

    The conservation title of this legislation includes more 
than $16 billion over ten years for conservation programs. This 
represents a 75% increase in spending on conservation 
opportunities for America's farmers and ranchers. The 
commitment of this Committee to conservation, as signified by 
such an increase, is prompted by several factors. First, 
conservation programs have experienced extreme popularity with 
farmers in recent years. Many of the programs developed during 
the 1990 and 1996 farm bills such as the Environmental Quality 
Incentives Program (``EQIP''), the Wetlands Reserve Program 
(``WRP'') and the Wildlife Habitat Incentives Program 
(``WHIP'') are oversubscribed by a factor of four. This level 
of popularity was then affirmed throughout the numerous 
hearings this Committee has held over the past year, both on 
Capitol Hill and throughout all regions of the country. There, 
farmers repeatedly indicated their support for voluntary, 
incentive-based conservation programs which will support them 
in their efforts to be good stewards of the land.
    Second, as conservation programs have become popular with 
farmers they also have become important to taxpayers. The 
Committee's action in this legislation responds to consumer 
demand not only for a cheap, high-quality food supply but also 
for a clean environment.
    Third, the scope and range of environmental challenges 
facing producers have expanded. Back when the Committee adopted 
the current swampbuster and sodbuster provisions in the 1985 
Farm Bill, the focus and concern of conservation policy was 
soil erosion. Today, the livelihoods of farmers and ranchers 
are threatened by many additional environmental demands such as 
water and air quality. The substantial increase in funding for 
conservation programs in this package will enable producers to 
respond to these imminent challenges.
    Beyond the decision to markedly increase funding for the 
conservation title, the Committee was faced with an additional 
consideration of whether to create a new set of programs 
designed to address current conservation issues or to provide 
funding to and correct problems in the administration of 
existing programs. After careful review of the testimony 
provided at the various hearings held by this Committee to 
review farm policy, the Members determined that there was no 
need to create a new program. At the same time, however, the 
Members also concluded that there were serious shortcomings in 
several of the existing programs. For example, last year over 
20% of the money provided to producers for the EQIP program 
went to administrative and technical assistance costs. 
Recognizing that such circumstances dramatically reduce the 
actual dollars getting to farmers and ranchers, the Committee 
has established a technical assistance fund to meet the needs 
of producers without cutting into the money actually provided 
for enrollment in the program. Through this change and similar 
adjustments to other programs as well as the substantial 
increase in funding levels, the Committee believes that this 
legislation provides a meaningful starting point for meeting 
the conservation needs of a significant number of agricultural 
producers.

                            TITLE III--TRADE


Section 301. Market Access Program

    The purpose of the Market Access Program (MAP) is to aid in 
the creation, expansion, and maintenance of foreign markets for 
U.S. agricultural products. MAP forms a partnership between 
non-profit U.S. agricultural trade associations, U.S. 
agricultural cooperatives, non-profit state-regional trade 
groups, small U.S. businesses, and USDA's Commodity Credit 
Corporation to share the costs of overseas marketing and 
promotional activities such as consumer promotions, market 
research, trade shows, and trade servicing.
    Each year, MAP helps launch and expand sales of U.S. 
agricultural, fish, and forest products overseas. USDA has 
approved MAP proposals to promote a wide variety of U.S. 
commodities in almost every region of the world. Among those 
U.S. food and fiber products are apples, asparagus, canned 
peaches and fruit cocktail, catfish, cherries, citrus, cotton, 
dairy products, dry beans, eggs, feed grains, frozen potatoes, 
grapes, honey, hops, kiwifruit, meat, peanuts, pears, pet food, 
pistachios, poultry meat, prunes, raisins, rice, salmon, 
soybeans, strawberries, sunflower seeds, surimi, tallow, tomato 
products, walnuts, watermelons, and wheat.
    The Committee determined that it is important to further 
expand and help create additional foreign markets for U.S. 
agriculture products and therefore increased funding for MAP to 
$200 million per year for the period from 2002 through 2011. 
The Committee received testimony that an expansion of MAP is 
needed for the economic growth of U.S. agriculture. U.S. fruit 
and vegetable producers face significant obstacles in the 
development of export markets for the products. Some of these 
obstacles are significant because of the perishable nature of 
the fruit and vegetable products and the level of support 
provided by foreign governments.
    The United States is outspent by more than 20 to 1 by 
foreign competitors spending money on export promotion and 
export subsidies, according to USDA. As a marketing and 
promotion program, MAP is exempt from World Trade Organization 
(WTO) reduction commitments.
    A study prepared for the National Association of State 
Departments of Agriculture found that 83% of the cases reviewed 
showed reliable evidence that the market share increased or 
market share loss was avoided as a result of MAP activities. In 
addition significant progress was found in eliminating or 
reducing constraints on U.S. exports due to MAP.
    The 1993 Agricultural Reconciliation Act provides that no 
MAP funds may be used to develop, maintain, or expand foreign 
markets for tobacco. The Committee adopted an amendment that 
excludes leaf tobacco from that provision.
    Puerto Rico specialty crops include crops such as mangoes 
that do not have significant markets in the United States, but 
represent prime products for export to Europe. It is important 
for the USDA to look beyond just the traditional specialty 
crops, to tropical crops such as mangoes for participation in 
the Market Access Program. The Committee urges the Secretary to 
provide technical assistance and financial support for the 
Puerto Rico Department of Agriculture to support the market 
promotion of specialty crops, such as but not limited to, 
mangoes grown in Puerto Rico.

Section 302. Food for Progress

    The purpose of the Food for Progress program is to finance 
the sale and export of agricultural commodities on credit 
terms, or on a grant basis, to support developing countries and 
countries that are emerging democracies and have made 
commitments to introduce or expand free enterprise elements 
into their agricultural economies. Under the Food for Progress 
program, commodities may be provided under the authority of 
P.L. 480, Title I, or Section 416(b). Under certain conditions, 
the Commodity Credit Corporation (CCC) may also purchase 
commodities for use in Food for Progress programs if the 
commodities are currently not held by CCC. For commodities 
furnished on a grant basis, the CCC may pay, in addition to 
acquisition costs and ocean transportation, such related 
commodity and delivery charges.
    The Food for Progress program is currently limited by a 
global 500,000 metric ton ceiling, by a $30 million cap on non-
commodity costs (primarily transportation) and by a $10 million 
cap on administrative expenses.
    The Committee recognizes the need for this program, since 
its inception in the 1985 Food Security Act, and the benefits 
of this program. The goals of the program include making use of 
the food resources of United States agriculture in order to 
support countries that are committed to policies that promote 
economic freedom, private, domestic production of food 
commodities for domestic consumption and the creation of and 
expansion of domestic markets for the purchase and sale of 
these commodities.
    The Committee determined that the amount of commodities 
provided through the Food for Progress program should increase 
and thereby increases the limit on transportation cost to $35 
million per year and administrative costs to $12 million per 
year so that additional commodities may be allocated to 
eligible countries. In addition, since the Food for Progress 
program allows the use of commodities from P.L. 480, Title I, 
the Committee makes clear the limitation on commodities for 
Food for Progress does not apply to the commodities from P.L. 
480, Title I that are used under the Food for Progress program.
    Efficient administration of the Food for Progress program 
is essential and therefore the Secretary is encouraged to make 
determinations regarding final program agreements and requests 
for this program before the beginning of the fiscal year. The 
Committee directs the Secretary to report, by November 1 of 
each fiscal year, on the programs, countries and commodities 
approved for the Food for Progress program for that fiscal 
year. Additionally the Secretary will include in that report 
the amount of funds approved for transportation and 
administrative costs.

Section 303. Export Enhancement Program

    The Export Enhancement Act (EEP) is reauthorized at the 
current level of $478 million through fiscal year 2011.
    The EEP was announced by USDA on May 15, 1985, and is 
operated under authority of the Agricultural Trade Act of 1978 
as amended, the Uruguay Round Agreements Act and the Federal 
Agriculture Improvement and Reform Act of 1996.
    The EEP helps products of by U.S. farmers meet competition 
from subsidizing countries, especially the European Union. 
Under the program, the USDA's goal is to allow U.S. farmers to 
sell their products in targeted countries and to expand U.S. 
agricultural exports while challenging unfair trade practices 
by our competitors. Through this program, sales of U.S. 
agricultural products are made that would not otherwise have 
been possible because of subsidized prices offered by 
competitor countries.
    The Committee received testimony that encouraged the USDA 
to use the EEP, despite its lack of significant use since 1995. 
Since the predatory practices of the EU and other competitors 
still exist in the global marketplace, it is vital to maintain 
the use of the EEP.
    According to a May 11, 2000, World Trade Organization 
report on export subsidies, the European Union is the largest 
user of export subsidies. In 1998, the EU spent almost $6 
billion on export subsidies or 90.1% of the world total, 
compared to U.S. spending of $147 million or 2.2% of the world 
total.
    Commodities eligible for EEP include wheat, wheat flour, 
rice, frozen poultry, barley, barley malt, table eggs and 
vegetable oil.

Section 304. Foreign Market Development Cooperator Program

    The Foreign Market Development (Cooperator) Program uses 
Commodity Credit Corporation (CCC) funds to aid in the 
creation, expansion, and maintenance of long-term export 
markets for U.S. agricultural products. The program is a trade 
promotion partnership between USDA and U.S. agricultural 
producers and processors, who are represented by nonprofit 
commodity or trade associations called Cooperators. Under this 
partnership, USDA and the Cooperator pool their technical and 
financial resources to conduct overseas market development 
activities. Overseas promotions focus on generic U.S. 
commodities, rather than individual brand-name products, and 
are targeted toward long-term development. In 2001, Cooperators 
and U.S. industry resource contributions totaled 116% of the 
funds provided by USDA.
    Specific program activity includes market research 
(including research on demographics and the economic situation 
in foreign markets), trade servicing, and technical assistance 
in support of high-volume bulk commodities. U.S. competitors in 
the Cairns Group increased spending on market development from 
$282 million to $592 million between 1995 and 1998, and 
increased their market share by over 2% (versus a decline in 
U.S. market share of about 2%). The Committee received 
testimony that without an adequately funded Cooperator program, 
participants would have to curtail activities in several 
promising markets, including Syria, Jordan, Eastern Europe, and 
Taiwan. Increased funding for the Cooperator program is 
provided to meet increased competition from foreign competitors 
and to enable Cooperators to maintain and expand market 
opportunities for their products.
    The Committee adopted an amendment designed to promote 
value-added products through the Cooperator program and to 
broaden the mission of the program by directing that 
significant emphasis be placed on value-added U.S. agricultural 
products for emerging markets. The Secretary is required to 
report each year to Congress detailing the amount and type of 
funds provided; the value-added products that have been 
targeted; and the markets for those products that have been 
developed. This report will assist in determining where and how 
this program is benefiting and promoting value-added products.

Section 305. Export Credit Guarantee Program

    The Export Credit Guarantee Program is reauthorized at 
current levels through 2011. In addition, CCC will continue to 
ensure that not less than 35% of the monies spent on export 
credit guarantee programs be spent on processed and high-value 
products from 2002-2011.
    USDA operates three export credit guarantee programs, with 
total export sales totaling approximately $3 billion in fiscal 
year 1999 (In statute, it is stated that CCC shall make 
available for each year not less than $5.5 billion in export 
credit guarantees). The Committee is concerned that GSM usage 
continues well below the statutory minimum of $5.5 billion in 
guarantees required each year. The Committee urges USDA to 
aggressively utilize GSM guarantees in accordance with law to 
maximize the program's enhancement of U.S. agricultural 
exports.
    USDA's GSM-102 Export Credit Guarantee Program and the GSM-
103 Intermediate Export Credit Guarantee Program both 
underwrite commercial financing of U.S. agricultural product 
exports to countries where credit might otherwise be difficult 
to obtain. Under these programs, USDA provides a guarantee to 
U.S. banks willing to finance such transactions for exporters 
shipping U.S. products on credit to foreign importers in 
eligible countries. GSM-102 covers credit terms of up to 3 
years, and GSM-103 covers longer terms of up to 10 years.
    Unlike GSM-102 and GSM-103, the Supplier Credit Guarantee 
Program guarantees short-term credit extended by U.S. exporters 
directly to their foreign customers. Credit terms cannot exceed 
180 days. USDA recently increased guarantee coverage under the 
Supplier Credit Guarantee Program from 50% to 65% of the credit 
made available. U.S. exporters have expressed concern that 
coverage levels need to be increased to at least 85% of the 
credit made available for the program to effectively enhance 
U.S. exports, especially in the face of higher coverage levels 
offered by our trade competitors. The committee encourages the 
Secretary to review the Supplier Credit Guarantee Program to 
determine whether (1) additional increases in coverage, or (2) 
an increase in the authorized tenor, would enhance exports and 
program utilization.
    The export credit guarantee programs, GSM-102 and GSM-103, 
were designed to facilitate sales of United States agricultural 
exports and have always enjoyed the enthusiastic support of the 
Committee.
    The ongoing negotiations in the Organization for Economic 
Cooperation and Development (OECD) raise several concerns about 
whether these programs will remain viable for supporting 
exports of United States agricultural products. Shortening the 
maximum repayment terms and increasing the premiums for the 
USDA credit guarantee programs, among other changes 
contemplated in the negotiations, will significantly reduce the 
use of these programs. More important, these OECD negotiations 
are not the end of discussions and negotiations on export 
credit guarantees. It is fully anticipated that this issue will 
be part of the World Trade Organization (WTO) negotiations. 
This means that USDA export credit guarantee programs could be 
significantly cut in the OECD negotiations and cut again in the 
WTO negotiations. In fact, the current OECD proposal directs 
the United States and other OECD countries to continue 
negotiations on export credit guarantees in the WTO.
    The Committee is concerned that the changes contemplated in 
the OECD proposal may damage U.S. agricultural exports. That 
concern is exacerbated by the possibility that export credit 
guarantee programs could undergo further cut backs in the WTO.
    United States exporters currently face unfair competition 
from state trading enterprises and export subsides by foreign 
competitors. An agreement that weakens U.S. export credit 
guarantee programs will harm agriculture here at home.

Section 306. Food for Peace (PL 480)

    P.L. 480 is intended to combat hunger and malnutrition; 
promote broad-based equitable and sustainable development, 
including agricultural development; expand international trade; 
develop and expand export markets for United States 
agricultural commodities; and to foster and encourage the 
development of private enterprise and democratic participation 
in developing countries. The Committee has reauthorized P.L. 
480 to meet continuing needs around the world for food and 
development assistance.

Section 307. Emerging markets

    The program for the promotion of agricultural exports to 
emerging markets is reauthorized at the current level to ensure 
that not less than $1 billion be available from the Commodity 
Credit Corporation (CCC) for direct credits and export credits 
under the emerging markets program from 2002 to 2011.
    The legislation extends the authorization for up to $10 
million per year be provided from CCC to support the E (Kika) 
de la Garza Agricultural Fellowship Program. The program is 
intended to develop agricultural markets in emerging markets 
and to promote cooperation and exchange of information between 
agricultural institutions and agri-businesses in the United 
States and emerging markets.

Section 308. Bill Emerson Humanitarian Trust

    The purpose of this section is to provide for a trust 
solely to meet emergency humanitarian food needs in developing 
countries. The Secretary of Agriculture is required to 
establish a trust stock of wheat, rice, corn, or sorghum, or 
any combination of the commodities totaling not more than 
4,000,000 metric tons.
    The program is reauthorized through 2011.

Section 309. Technical assistance for specialty crops

    The Committee is establishing a new program to address the 
barriers to exports that United States producers of specialty 
crops face. Obstacles to the development and enlargement of 
export markets for these producers include high tariffs, 
foreign subsides and nontarrif trade barriers. Therefore the 
Committee is providing $3 million for the years 2002 through 
2011 for the purpose of direct assistance and technical 
assistance to remove, resolve or mitigate sanitary and 
phytosanitary and other barriers to trade for producers of 
United States specialty crops.
    The use of these funds is directed to projects based on 
market retention, market access and market expansion and on the 
impact on trade. Examples of such projects include research, 
risk assessments and technical training activities to 
facilitate increased U.S. exports.
    The Committee recognizes that producers of specialty crops 
face significant challenges, especially in the global 
marketplace. The purpose of this new program is to provide the 
means and methods to address these challenges.
    The Committee recognizes the difficulty posed to the U.S. 
wheat gluten industry by high European Union tariffs and 
encourages this issue to be addressed in trade negotiations.

                          TITLE IV--NUTRITION

    The purpose of the food stamp program is to safeguard the 
health and well being of the U.S. population by raising the 
level of nutrition among low-income families. Increased 
utilization of food in establishing and maintaining adequate 
levels of nutrition promotes the distribution in a beneficial 
manner of the U.S. agricultural abundance and strengthens the 
national economy. The food stamp program, the Nation's largest 
food assistance program, seeks to ensure access to an adequate 
diet and the fruits of a productive agricultural economy to all 
eligible Americans.
    The Committee heard testimony that some food stamp rules 
and procedures may operate to thwart or make participation 
difficult for those who are eligible. Testimony highlighted a 
number of changes to simplify the program, give states greater 
flexibility, remove unnecessary barriers to participation, and 
increase assistance to working families.

Section 401. Simplified definition of income

    The food stamp program is simplified for administrators and 
applicants/recipients by permitting greater conformity between 
the rules used in the food stamp program to count income and 
those used in states' Temporary Assistance for Needy Families 
(TANF) and Medicaid programs. One-quarter of food stamp 
households still receive TANF assistance and well over half are 
covered by Medicaid. Specifically, states are permitted, within 
basic limits, to exclude any types of income they do not 
consider when judging eligibility for TANF cash assistance or 
those required to be covered by Medicaid.

Section 402. Standard deduction

    The standard deduction, currently set at $134 per month is 
increased based on household size. For example, the standard 
deduction for a household of four persons would go from $134 a 
month to $143, and the standard deduction for a five-person 
household would rise from $134 a month to $167.

Section 403. Transitional food stamps for families moving from welfare

    States are allowed to provide ``transitional food stamp 
benefits'' to families leaving TANF. Families leaving TANF are 
provided the food stamp benefit they were receiving when they 
left TANF, for six months. This provision simplifies the 
process for administrators and recipients and provides 
recipients a 6-month benefit after leaving TANF for work or for 
other reasons without having to go through food stamp 
recertification process until they have established themselves 
in a job.

Section 404. Quality control systems

    The Food Stamp program's quality control (QC) system would 
be eased. Through annual sample surveys, this system measures 
the degree to which states make erroneous eligibility and 
benefit decisions and assigns states percentage ``error rates'' 
reflecting the dollar value of those decisions. These error 
rates are then used to assess fiscal penalties on states with 
high rates, and the state is required to reinvest the amount in 
administrative improvements aimed at lowering their error rate. 
The error rates also are used to grant states with low error 
rates a larger federal matching percentage for their 
administrative costs.
    Under the existing QC rules, 21 to 24 states have been 
assigned penalties each year in recent years. Witnesses before 
the Committee have argued that only those with major problems 
should be subject to QC penalties, not nearly half the states 
every year.
    The Committee bill raises the threshold above which states 
are penalized under the QC system to the national average total 
payment error rate plus 1 percentage point and change the rules 
so that states would only be sanctioned in the third 
consecutive year in which they exceeded the threshold. It also 
ensures that the error rate used to measure a state's 
performance is the one with the most statistical confidence--
the so-called ``lower bound'' rate. To reward superior 
performance to applicants (meeting application processing 
deadlines and keeping a low rate of improper denials of 
eligibility), the Committee bill establishes excellence bonus 
payments totaling $10 million a year for the top performing 
states.

               Current Food Stamp Quality Control Program

    The food stamp program incorporates a quality control (QC) 
system designed to enhance payment accuracy by establishing 
fiscal incentives that require states with high error rates to 
share in the cost of payment errors and provide enhanced 
funding to states with the lowest error rates. Each year, 
states whose total payment error rate is less than 6% receive 
an enhanced federal match for administrative costs--up to 60%, 
rather than the normal 50%. A state's federal match is 
increased by one percentage point (above 50%) for each full 
one-tenth of a percentage point its total payment error rate is 
below 6%--up to a maximum match of 60%.
    States whose total payment error rate is between 6% and the 
national performance measure receive no special treatment. They 
do not receive an enhanced federal matching payment for 
administrative costs, nor are they assessed fiscal penalties.
    Each year, states whose total payment error rate is above 
the national performance measure are assessed fiscal penalties. 
These sanctions are figured as follows.
    First, the state's potential total penalty amount is 
calculated. This is the difference between its total payment 
error rate and the national performance measure, multiplied by 
the dollar value of food stamp benefits issued in the state for 
the year. Thus, if the national performance measure is 9% and 
the state's total payment error rate is 12%, it has a potential 
liability of 3% of benefits issued in the state.
    Then, the state's actual penalty/sanction is calculated. 
This assessment is ``scaled'' according to how far above the 
national performance measure the state's total payment error 
rate is. Thus, if a state's payment error rate is 12% and the 
national performance measure is 9%, it is 33% percent above the 
national performance measure. In this case, the actual penalty/
sanction assessment would be 33% of the total potential 
liability of 3% of benefits issued in the state.
    Finally, the U.S. Department of Agriculture has established 
a policy whereby the assessed penalty is reduced for states 
with high percentages of households with earned income, 
containing one or more members who are noncitizens, or both, 
because these types of households tend to be error prone.

                      Quality Control Definitions

    A ``total payment error rate'' is the sum of the 
percentages of benefits found (by quality control sample 
surveys for a given year) to have been (1) issued to ineligible 
households and (2) overissued to eligible households, plus the 
value of benefits due but not issued to eligible households 
expressed as a percentage of all benefits issued.
    The ``national performance measure'' is the national 
average of states' total payment error rates, weighted by 
states' shares of total allotments issued.
    States' total payment error rates and the national 
performance measure are ``point estimates.'' Because only a 
sample of households, rather than all food stamp households, is 
used to determine food stamp error rates, they are estimates of 
the true error rate and subject to sampling error. The amount 
of error in these estimates can be stated in terms of 
probabilities. It is possible to say that one can be 95% 
confident that the true error rate in a state falls between two 
percentage values--the point estimate is the midpoint between 
these two values. This range is called the confidence interval 
of an estimate. The ``lower bound''--which can be used instead 
of the point estimate--is the lowest percentage value within 
the range of error rates that one can have 95% confidence in.

         Committee Reported Food Stamp Quality Control Program

    The Committee revises current QC rules in several ways. The 
threshold that must be passed before a state is assessed a 
fiscal penalty is increased to the national performance measure 
plus one percentage point. When judging whether a state might 
be assessed a penalty, the lower bound of the state's total 
payment error rate is used (instead of the point estimate). 
States are not subject to an assessed penalty until the third 
consecutive year in which the lower bound of their total 
payment error rate exceeded the national performance measure 
plus one percentage point. When a state's actual penalty/ 
sanction assessment is determined, (1) its total potential 
liability is measured by the extent to which its point estimate 
rate exceeds the national performance measure plus one 
percentage point and (2) the assessment is scaled according to 
how far above 10% its total payment error rate (point estimate) 
is.
    The new QC system works in the following way. Each year 
states' total payment error rates would be tested to determine 
whether the lower bound of their total payment error rate 
exceeded the national performance measure plus one percentage 
point. In the third consecutive year in which this occurred for 
a given state, it is assessed a sanction (for that year). The 
sanction is calculated as follows.
     First, the state's potential total penalty amount 
is calculated. This is the difference between its total payment 
error rate (point estimate) and the national performance error 
measure plus one percentage point, multiplied by the dollar 
value of food stamp benefits issued in the state for the year. 
Thus, if the national performance measure is 9% and the state's 
total payment error rate is 12%, it has a potential liability 
of 2% of benefits issued in the state (12% compared to 9% plus 
one percentage point).
     Then, the state's actual penalty/sanction is 
calculated. This assessment would be ``scaled'' according to 
how far above 10% the state's total payment error rate (point 
estimate) is. Thus, if a states' payment error rate is 12%, it 
is 20% above the 10% measuring point. In this case, the actual 
penalty/sanction assessment would be 20% of the total potential 
liability of 2% of benefits issued in the state.
    In addition to the changes in the current error rate 
sanction system, the Committee adds new performance provisions. 
The Secretary is required to measure states' performance in 
complying with requirements for expedited (7-day) and regular 
(30-day) processing of food stamp applications. The Secretary 
is also required to measure the percentage of each state's 
negative eligibility decisions that are made correctly. Then, 
for each fiscal year, the Secretary is directed to make 
``excellence bonus payments'' (of $1 million each) to the five 
states with the highest combined performance under the two new 
performance measures and five additional ``excellence bonus 
payments'' to the five states whose combined performance under 
the two new measures most improved during the year.
    However, for any fiscal year in which the Secretary 
determines that the lower bound estimate of a state's 
performance in either of the two new measures is substantially 
worse than the Secretary deems ``reasonable'' (for other than 
good cause), the bill requires that the Secretary investigate 
the state's administration of the food stamp program. If there 
is a finding that the state's administration has been 
deficient, the Secretary must require the state to take prompt 
corrective action.
    The changes in the current error rate sanction system are 
effective for FY2000 and later years. The new performance 
provisions apply to FY2002 and later years.

Section 405. Simplified application and eligibility determination 
        process

    The Committee recognizes that state innovation may be a key 
to improving and simplifying the food stamp program. Therefore 
the Committee establishes a $10 million-a-year grant program 
for state agencies to develop and implement simplified 
application and eligibility determination systems.

Section 406. Authorization of appropriations

    The Committee reauthorizes several programs, including the 
food stamp program. In addition, the program for Community Food 
Projects is reauthorized and funding for this program is 
increased to $7.5 million per year through 2011. This program 
is a community based program that is designed to meet the food 
needs of low-income families, to increase the self-reliance of 
communities in providing for their own food needs, and to 
promote comprehensive responses to local food, farm and 
nutrition issues.
    The Emergency Food Assistance Program (TEFAP) supports 
local emergency feeding organizations, such as food banks, soup 
kitchens and shelters, churches and food pantries, by offering 
donated foods to lower-income families and individuals. It also 
helps the farm economy by acquiring surplus agricultural 
products that are then donated to TEFAP agencies. TEFAP has 
proved successful in fulfilling its missions, but increased 
demand and the key role federal funding for distribution costs 
play in the emergency food assistance network demonstrate a 
need to increase TEFAP. TEFAP was last reauthorized in 1996, at 
which time $100 million a year was set aside for purchasing 
food specifically for the program. This $100 million a year is 
supplemented by ``bonus'' commodities acquired by the 
Department in support of the agricultural economy, e.g., $162 
million worth in FY2000, and, to an even larger degree, private 
donations to food banks and other emergency food providers.
    According to a recent USDA study, reported demand for food 
assistance at soup kitchens and food pantries has increased by 
between 4% and 7% a year since 1997. This picture of increased 
demands on the emergency food assistance network is supported 
by testimony at hearings by the Subcommittee on Department 
Operations, Oversight, Nutrition, and Forestry. Witnesses at 
subcommittee hearings noted that covering the cost of 
distributing the growing amount of federally and privately 
donated commodities handled by state and local emergency food 
providers is proving to be a significant problem. TEFAP funding 
for distribution expenses can be used to pay for storage, 
transportation, and distribution costs associated with both 
federally and privately donated foods.
    The Committee reauthorizes and increases funding for 
TEFAP--setting aside $140 million a year out of Food Stamp Act 
appropriations. In addition, it earmarks $10 million of these 
funds for direct and indirect costs associated with processing, 
storing, transporting and distributing both commodities donated 
by USDA and those secured from other sources, such as gleaning. 
This $10 million a year is in addition to the regular 
appropriation for distribution costs authorized under the 
Emergency Food Assistance Act, although it would be allocated 
to states in the same manner. Appropriations for distribution 
costs under the Emergency Food Assistance Act authorization 
(also extended by the Committee bill) have typically been $45-
$50 million a year and would be expected to continue.

                        Other Nutrition Programs

    The Committee bill also extends authority for several other 
food assistance programs through FY2011. Funding for Puerto 
Rico's inflation-indexed nutrition assistance block grant is 
reauthorized. American Samoa's $5.3 million a year nutrition 
assistance grant is renewed. The authorities for the Commodity 
Supplemental Food program and the Food Distribution Program on 
Indian Reservations are renewed.
    The Committee expects the USDA Center for Nutrition Policy 
and Promotion to conduct ongoing research into the U.S. dietary 
guidelines, including changes to and promotion of the Food 
Guide Pyramid and related materials.

Section 461. Hunger Fellowship Program

    The Committee establishes the Congressional Hunger Fellows 
Program, as a memorial for the Honorable Bill Emerson, the late 
Representative from the 8th District of Missouri and a former 
member of this Committee and the Honorable George T. (Mickey) 
Leland, the late Representative from the 18th District of 
Texas. The purpose of the Fellowships is to develop and train 
future leaders of the United States to pursue careers in 
humanitarian service.

                            TITLE V--CREDIT

    The credit titles of omnibus farm bills over the years have 
contained extensive amendments to the agricultural credit 
statutes under the Committee's jurisdiction. U.S. agriculture 
requires dependable sources of credit at reasonable rates. 
Whenever those resources have been lacking, Congress has 
responded generally by increasing the availability of loan 
funds to farmers and ranchers and beginning and socially-
disadvantaged farmers and ranchers who have historically had 
difficulty in the credit markets. During some periods, for 
example in the mid-1980s, Congress has responded to especially 
difficult economic times by providing debt relief or other 
assistance to assist agricultural producers through the 
downturn in the farm economy.
    Over the last several years of historic commodity price 
declines, agricultural lenders have not been stressed as would 
be expected from the Committee's experiences during earlier 
farm economic downturns. The Committee has heard from many 
bankers and cooperative lenders who have suggested that the 
state of their farm lending portfolios has been aided by extra 
financial assistance from the Congress. As pointed out in 
recent testimony, the Farm Service Agency portfolio also is in 
sound shape when compared with its history of high delinquency 
rates and numerous defaults, bankruptcies and foreclosures. 
While the stress in U.S. agriculture goes on unabated, it has 
not yet translated to the lending sector, and, thus, Congress 
has taken a cautious approach in dealing with agricultural 
credit matters in this farm bill.
    The credit title contained in the Farm Security Act of 2001 
makes a few minor improvements to the loan guarantee programs 
used by bankers and cooperative lenders. It also provides some 
necessary adjustments to the administration of the FSA credit 
programs that should assist FSA in making, guaranteeing and 
servicing loans throughout its portfolio.

                      TITLE VI--RURAL DEVELOPMENT

    The rural development programs of the U.S. Department of 
Agriculture are comprehensive in that they provide 
infrastructure programs such as water and sewer loans and 
grants, loan guarantees through the Business and Industry loan 
guarantee programs for business and cooperative development to 
create jobs in rural areas, and provide a number of other loan 
and grant opportunities to help revitalize rural America.
    Although the Committee fully supports these much needed 
programs to build the facilities that attract businesses and 
keep people in our small towns and rural communities, the 
Committee also understands that to keep rural America moving 
forward a set of new programs or expansion of existing programs 
will be helpful for the future.
    The Committee sought to advance legislation that would 
assist in providing broadband services to rural areas, to 
increase funding for value-added agricultural production, 
processing and marketing and to assist rural communities that 
may be having difficulty meeting its drinking water needs now 
or in the future.
    Even though the Committee was hampered by jurisdictional 
concerns in the House, which meant that language funding 
broadband services in rural areas did not make it into final 
bill language, the Committee still believes advanced digital 
communications is paramount to a vibrant rural economy and 
hopes that funding for such activities can be accomplished at a 
later time.
    The Committee also has provided language to assist the 
strategic planning process for rural development and has 
increased the availability of business and industry loans to 
farmer cooperatives.

                TITLE VII--RESEARCH AND RELATED MATTERS

    The Agricultural Research, Extension, and Education Reform 
Act of 1998 authorized agricultural research, education, and 
extension programs through 2002. Reforms enacted as part of the 
Agricultural Research, Extension, and Education Reauthorization 
Act of 1998 established peer and merit review requirements for 
USDA funded research and extension projects. This Act also 
required institutions receiving formula funds from USDA to 
prepare annually a ``Plan of Work'' insuring adequate input 
from stakeholder organizations for current and future research 
and extension programs.
    While most organizations agree that investment in research 
should remain a priority for public funding, the need to 
maintain balanced federal budgets will limit the resources 
available for Agricultural research, education, and extension. 
Likewise, the public desire for accountability demands more 
emphasis on role definition and coordination between the 
various groups.
    The Secretary of Agriculture coordinates USDA research, 
education, and extension. Federal funds are distributed to four 
agencies under the direction of the Undersecretary for 
Research, Extension and Economics: the Cooperative State 
Research, Education, and Extension Service (CSREES), 
Agricultural Research Service (ARS), Economic Research Service 
(ERS), and the National Agricultural Statistics Service (NASS).
    Of the approximately $2.1 billion in federal money spent in 
FY01 on agricultural research, education, and extension 
programs, about 46% is spent on state-level programs through 
CSREES, 43% is spent on in-house research programs conducted by 
the ARS, 3% is directed to economic research conducted in-house 
by ERS, 5% is spent on statistical services conducted by the 
NASS, and 3% is used for buildings and facilities.
    Beginning in the 1850's, Congress recognized the importance 
of agriculture to the American economy. To meet the needs of 
the nations largely rural population and farm-based economy, 
Congress began passing a series of bills designed to promote 
agricultural development. Four major pieces of legislation were 
the Morrill Act of 1862, the Second Morrill Act of 1890, the 
Hatch Act of 1887, and the Smith-Lever Act of 1914.
    In 1862, Congress passed the ``First Morrill Act'' in order 
to ``promote education in agriculture and the mechanical 
arts.'' Under this Act, each state was given public lands, 
provided that the lands be sold or used for profit, and the 
proceeds used to establish at least one agricultural college 
(land grants for the establishment of colleges of agriculture 
and mechanical arts were also later given to U.S. territories 
and the District of Columbia).
    Public universities existed already in some states; 
however, most states responded to the First Morrill Act by 
legislating new agricultural and mechanical arts colleges 
rather than endowing existing state institutions. The act gave 
rise to a network of often poorly financed colleges known as 
``1862's.'' The Second Morrill Act, passed in 1890 however, 
provided for an annual appropriation to each state to support 
its land grant college.
    In addition to providing funds for education at land grant 
colleges, the act of 1890 specifically forbade racial 
discrimination in admissions. A state could escape the 
discrimination clause only if separate institutions were 
maintained and the funds divided in a ``just'' manner. Thus, 
the 1890 act led to the establishment of a group of 
historically black land grant institutions. Today, there are 18 
``1890's'' located in southern states with an appropriation of 
approximately $32.6 million in FY01 in formula funds and $9.5 
million for capacity building grants.
    Over the decades, as the U.S. economy grew and changed, so 
did the nature and demands for education and scientific 
pursuit. As more and more U.S. citizens began to attend 
college, most colleges of agriculture were transformed into 
full-fledged universities.
    Today, although many land grant universities are still 
known for their agricultural college roots, others have little 
agricultural identity and students are rarely from farm 
families.
    Currently, in addition to the 59 1862's and 18 1890's, 
there are 15 non-land-grant colleges that obtain USDA funds 
primarily through forestry and natural resource programs 
authorized under the McIntire-Stennis Act ($21.9 million in 
FY01), and 30 tribal colleges which were afforded land grant 
college status under the Elementary and Secondary Education Re-
authorization Act of 1994 ($1.5 million in FY01 in formula 
funds and $1 million for 1994 research programs).
    The 1862 Morrill Act gave land grant colleges their mandate 
to teach. In 1887, recognizing the need for research in the 
agricultural sciences, Congress passed the ``Hatch Act'' to 
provide money to each state for the purpose of establishing, 
within the land-grant college, an Agricultural Experiment 
Station.
    Today, State Agricultural Experiment Stations (SAES) 
operate in conjunction with and, in almost all cases, on 
locations at colleges of agriculture. Most faculty at land 
grant colleges of agriculture have SAES appointments. This 
grants them access to ``Hatch'' research funds administered by 
USDA-CSREES and distributed to the SAES's on a formula basis. 
The FY01 Appropriation Bill provided approximately $180.5 
million for Hatch Act formula funds.
    In 1914 extension joined teaching and research as the third 
major mission when Congress passed the ``Smith-Lever Act.'' 
Under this act, a Cooperative Extension Service was created to 
aid in disseminating to the public useful and practical 
information about subjects relating to agriculture and home 
economics and to encourage its application.
    Under the Authority of this act, the land-grant colleges 
and USDA were to cooperate in extension work, which was to 
consist of instruction and practical demonstration in 
agriculture and home economics to persons not attending the 
land-grant college. Information was to be supplied through 
field demonstration.
    Agricultural extension was designed at the outset to be a 
cooperative program. As a result, funding for these programs 
has been a joint venture between the federal government, State 
and local governments, and the land-grant universities. While 
there is certainly variation between individual states, funding 
is roughly 1/3 from each of the federal, state and local 
governments.
    Under the authority of the Smith-Lever Act, there are three 
federal funding mechanisms. Section 3(b) of the Smith-Lever Act 
provides that each State and the Federal Extension Service 
shall be entitled to receive annually a sum of money based on a 
formula that takes into consideration the rural population of 
each State; Section 3(c) provides funding to seven ``results-
oriented'' Base Programs; and Section 3(d) are National 
Initiatives, intended to be established for limited time 
periods in order to develop educational models on which future 
base programs can be developed.
    The Secretary of Agriculture established the ARS in 1953 
under the authority of the Reorganization Act of 1949. Pursuant 
to the Agricultural Reorganization Act of 1994, ARS includes 
functions previously performed by the Human Nutrition 
Information Service and the National Agricultural Library. ARS 
is USDA's in-house research agency, and as such, conducts basic 
and applied research in the fields of animal sciences, plant 
sciences, entomology, soil and water conservation, agricultural 
engineering, utilization and development, human nutrition and 
consumer use, marketing, development of integrated farming 
systems, and development of methods to eradicate narcotic-
producing plants. The appropriation to ARS for FY01 was $898.8 
million for research and $74.2 million for facilities.
    In 1965, the Congress enacted Public Law 89-106 that 
established a special research grants program to finance 
selected programs over a maximum of 5 years (shortened to 3 
years in the 1998 research reform act). As part of the reforms 
included in the 1998 Act, grant authority under the 1965 act 
was extended to include extension and teaching grants. In 
addition, the Secretary was required to promulgate regulations 
imposing a peer review requirement in advance of making any 
grant under this act.
    The National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 amended the 1965 act to authorize a 
Competitive Research Grant Program. This program was further 
modified in the 1990 Farm Bill in order to create a National 
Research Initiative (NRI), which was first proposed by the 
National Academy of Sciences. The NRI is currently authorized 
at $500 million per year. While the NRI has received limited 
support, funding has averaged approximately $100 million/year. 
As a result, some groups have suggested that the potential 
benefits of this program have been muted.
    The Agricultural Research, Education and Extension Reform 
Act of 1998 established a research program using mandatory 
funding: the Initiative for Future Agriculture and Food Systems 
(IFAFS) to award competitive grants integrating research, 
education and extension in emerging issues of national scope in 
agriculture. The program was funded at $120 million per year 
for 5 years (through FY'03). Continued funding is provided for 
fiscal years 2004 through 2011 at $145 million/yr.

                    TITLE VIII--FORESTRY INITIATIVES

    As our nation's public lands become more and more difficult 
to access for their products as well as recreational values, 
there is a growing dependence on private, nonindustrial forest 
landowners to provide these necessary market commodities and 
nonmarket values demanded by a growing population. In 1996, 
timber products were the second highest valued agricultural 
crop in the United States; yet, forestry programs received less 
than one-half of one percent of all commodity support from the 
federal government. The Forestry Title strengthens the 
commitment of the Committee on Agriculture to sustainable 
forest management practices.

                      Section-by-Section Analysis


                      TITLE I--COMMODITY PROGRAMS


Sec. 100. Definitions

    Defines terms necessary for implementation of this act, 
including base acres, covered commodity, effective price, 
eligible producer, payment acres, payment yield, and target 
price.

   Subtitle A--Fixed Decoupled Payments and Counter-Cyclical Payments


Sec. 101. Payments to eligible producers

    Beginning with the 2002 crop year, the Secretary will make 
fixed decoupled payments to eligible producers, including 
producers that would have been eligible for an AMTA Contract 
payment in 2002 and other producers of a covered commodity on a 
farm in the U.S. as described in section 103. The section 
requires the Secretary to protect the interests of tenants and 
sharecroppers in carrying out this title. Finally, the section 
requires the Secretary to provide for a fair and equitable 
sharing of the fixed decoupled payments and the counter-
cyclical payments among the eligible producers on a farm.

Sec. 102. Establishment of payment yield

    The Secretary is required to establish payment yields for 
each farm for each covered commodity. The yield for a farm will 
be the payment yield in effect for the 2002 crop of the 
commodity as provided under section 505 of the Agricultural Act 
of 1949. If no yield is available, the Secretary will establish 
an appropriate payment yield taking into account the payment 
yields applicable to the commodity for similar farms in the 
area. Relative to soybeans and other oilseeds, the Secretary 
will establish a yield for a farm by determining the average 
yield from 1998 through 2001, excluding years where the acreage 
planted to the oilseed was zero. If a farm would have satisfied 
disaster eligibility requirements under the FY1999 Agriculture 
Appropriations Bill in any of the 1998 through 2001 crop years, 
the Secretary will assign a yield to the farm equal to 65 
percent of the county yield for that year in determining the 4-
year average. The 4-year average is then reduced to reflect the 
increase in yields that occurred between 1981-1985 and 1998-
2001.
    The Committee expects that some producers will update the 
base acreage on a farm to reflect a more current historical 
period than reflected by the current AMTA contract acreage, 
resulting in the need for the Secretary to establish program 
yields in certain situations. If a producer updates base 
acreage for a crop that currently has a AMTA contract payment 
yield, the payment yield for both the fixed decoupled and 
counter-cyclical program will be the payment yield applicable 
to the 2002 AMTA contract. If a producer updates base acreage 
for corn, wheat, grain sorghum, cotton, rice, oats and barley 
and the farm currently has no AMTA contract payment yield for 
the crop, the Committee intends for the Secretary to establish 
a payment yield for the crop on the farm based on the fixed 
decoupled and counter-cyclical payment yield for similar farms 
carrying out the same practices for the crop as the farm and 
the crop needing the yield. The Committee expects the Secretary 
to establish a blended yield for certain crops when producers 
update base acreage for crops on a farm that have no payment 
yield when a farm's 1998 through 2001 acreage reflects the same 
crop planted to both irrigated and nonirrigated acreage. In the 
case of oilseeds, producers will provide production records for 
each farm that reflect the harvested yield of each crop for the 
years 1998 through 2001. The Committee expects the Secretary to 
utilize production records previously furnished for oilseed 
loans and loan deficiency payments to be utilized to the 
maximum extent possible when establishing yield history. The 
Committee intends for the Secretary to exclude from the yield 
history any year in which the producer had a zero yield due to 
zero plantings of the oilseed. If the actual production in any 
year was less than the 65 percent threshold used to establish 
disaster eligibility criteria for quantity losses, the 
Committee expects the Secretary to substitute a yield for that 
year equal to 65% of the county yield in lieu of using the 
actual production for that year. For all crops of oilseeds, the 
actual proven yield on individual farms will be adjusted to 
take into account the increase in productivity between 1981 
through 1985 compared to 1998 through 2001. The Committee 
expects the Secretary to make available the applicable payment 
yield for crops on a farm for which a payment yield must be 
determined prior to the producer making the base election as 
required in section 103, even though the producer may 
ultimately choose a historical period in which all or some of 
the yields are not needed.

Sec. 103. Establishment of base acres and payment acres for a farm

    The Secretary will give producers a choice in determining 
their base acres. Producers may choose base acres reflecting 
the four-year average of acreage planted or prevented from 
being planted to the commodity for harvest, grazing, haying, 
silage, and other similar purposes during the 1998 through 2001 
crop years. Alternatively, producers may choose base acres 
reflecting contract acreage that would otherwise be used to 
calculate the fiscal year 2002 AMTA payments. Producers may 
make this election only once and provide notice as prescribed 
by the Secretary. If a producer fails to make an election or 
notice is not timely, the Secretary will deem the producer to 
have chosen base acres reflecting the AMTA contract acreage. 
The election made by the producer will apply to all covered 
commodities on the farm. The Secretary will restore base acres 
when land under a CRP contract expires, is terminated, or is 
released by the Secretary. When base acres are adjusted, the 
producer will receive either fixed decoupled payments and 
counter-cyclical payments or a prorated payment under a 
conservation reserve contract, but not both. The sum of base 
acres and acreage enrolled in CRP or WRP, or other programs 
where a producer agrees not to produce a commodity on acreage 
in exchange for a payment, cannot exceed the actual cropland 
acreage on the farm.
    The Committee intends for producers on a farm to choose the 
applicable historical period in which base acreage on a farm 
will be established for both the fixed decoupled and the 
counter-cyclical program. The Committee expects producers with 
multiple farms to be afforded the opportunity to choose the 
historical AMTA acreage on one farm and the 1998 through 2001 
acreage on another farm. The Committee expects the Secretary to 
develop a late filed acreage process that provides producers 
who failed to certify in a timely manner an opportunity to 
provide information that substantiates a late filed acreage 
report that may be used for purposes of establishing acreage 
planted during the 1998 through 2001 years.
    The Committee intends for the Secretary to develop a 
process that provides for the restoration of base acreage and 
payment yields that were reduced on farms enrolled in CRP 
beginning with CRP signup 15. When restoring base acreage and 
payment yields, the Committee expects the Secretary to take 
into consideration the AMTA contract acreage and yields that 
were reduced on the farm at the time the acreage was accepted 
into CRP. The Committee also expects the Secretary to determine 
the bases to be restored in an expeditious manner, thus 
insuring producers are afforded ample opportunity to make 
appropriate decisions well in advance of the expiration of a 
CRP contract.
    In order to avoid duplicate payments on the same acreage, 
the Committee expects the Secretary to insure that the sum of a 
producers base acreage, peanut acreage, CRP, WRP and other 
similar acreage enrolled in a conservation program for which 
payments are received for not producing a crop does not exceed 
the cropland acreage on a farm except to the extent that such 
excess is due to an established practice of double cropping on 
the farm as determined by the Secretary. The Committee expects 
the Secretary to insure that producers on the farm are afforded 
the option of determining what crop base acreage is reduced if 
necessary to meet this requirement.

Sec. 104. Availability of fixed, decoupled payments

    The Secretary will make fixed decoupled payments to 
eligible producers for each of the 2002 through 2011 crop years 
at a payment rate of $0.53 per bushel for wheat, $0.30 per 
bushel for corn, $0.36 per bushel for grain sorghum, $0.25 per 
bushel for barley, $0.025 per bushel for oats, $0.0667 per 
pound for cotton, $2.35 per hundredweight for rice, $0.42 per 
bushel for soybeans, and $0.0074 per pound for other oilseeds. 
The amount of the fixed, decoupled payment will be equal to the 
product of the payment rate, the payment acres, and the payment 
yield. Fixed decoupled payments must be paid no later than 
September 30 of fiscal years 2002 through 2011, except that in 
fiscal year 2002 payments may be made on or after December 1, 
2001. A producer may receive up to 50 percent of the fixed 
decoupled payment in advance anytime on or after December 1 of 
a fiscal year. If a producer who receives a fixed decoupled 
payment ceases to be an eligible producer by the time final 
fixed decoupled payments are to be made, the producer must 
repay the advance amount.
    The Committee intends for the Secretary to make advanced 
fixed decoupled payments to producers at any time, beginning on 
December 1 of each year. The Committee expects producers to be 
eligible for the advance payment until such time the Secretary 
makes final payment. The Committee expects the Secretary to 
make any payments due producers as a final payment prior to the 
end of the fiscal year.
    The Committee also intends for producers who receive an 
advance payment and are later determined to not have been an 
eligible producer at the time the Secretary makes final payment 
to refund the advance payment. The Committee expects the 
Secretary to make every effort to collect the unearned payment 
and provide the successor the payment that they would have 
otherwise been due had the predecessor not received the 
payment.

Sec. 105. Availability of counter-cyclical payments

    The Secretary will make counter-cyclical payments relative 
to a covered commodity whenever the effective price is less 
than the target price. The effective price is equal to the sum 
of (1) the higher of the national average market price during 
the 12-month marketing year for the commodity or the national 
average loan rate, and (2) the payment rate for fixed decoupled 
payments for the commodity. The target price is $4.04 per 
bushel for wheat, $2.78 per bushel for corn, $2.64 per bushel 
for grain sorghum, $2.39 per bushel for barley, $1.47 per 
bushel for oats, $0.736 per pound for cotton, $10.82 per 
hundredweight for rice, $5.86 per bushel for soybeans, and 
$0.1036 per pound or a fair and reasonable amount for other 
oilseeds. The payment rate for counter-cyclical payments is 
equal to the difference between the target price and the 
effective price for the commodity. The payment amount for 
counter-cyclical payments is the product of the payment rate, 
the payment acres, and the payment yield. The Secretary may 
provide a partial payment up to 50 percent of the projected 
counter-cyclical payment to producers 6 months into the 
marketing year for that crop. The producer must repay the 
amount, if any, by which the partial payment exceeds the 
counter-cyclical payment to be made in that crop year.
    Upon completion of the first six months of the marketing 
year, the Committee expects the Secretary to make a 
determination as to whether partial counter cyclical payments 
will be permitted on up to 50 percent of the projected payment.
    In order to expedite counter cyclical payments, the 
Committee encourages the Secretary to allow producers to 
designate whether they want to receive a partial counter-
cyclical payment at the same time producers notify the 
Secretary of their intentions for an advanced fixed decoupled 
payment. If at the end of the 12 month marketing year the 
Secretary determines any partial payments were not earned, the 
Committee expects the Secretary to collect any overpayments in 
the same manner as other program overpayments are collected.

Sec. 106. Producer agreement required as condition on provision of 
        fixed, decoupled payments and counter-cyclical payments

    As a condition of receiving fixed decoupled payments and 
counter-cyclical payments, the producer must comply with highly 
erodible lands and wetlands requirements, planting flexibility 
requirements, and with the requirement that the land on the 
farm be dedicated to an agricultural or conserving use and not 
be used for nonagricultural commercial or industrial use. The 
Secretary must establish rules to ensure compliance with these 
requirements. The Secretary may forgive any repayments owed by 
a producer that is foreclosed upon. Fixed decoupled payments 
and counter-cyclical payments are terminated when base acres 
are transferred unless the transferee agrees to comply with 
these requirements. There is no restriction on the transfer of 
base acres or payment yields. Requires a producer who receives 
fixed decoupled payments, counter-cyclical payments, or 
marketing loan assistance to submit acreage reports to the 
Secretary.
    The Committee expects producers to devote crop base acreage 
to an agricultural or conserving use and any acreage devoted to 
a nonagricultural commercial or industrial use is not eligible 
to be considered as crop acreage base. The Committee does not 
intend that the Secretary require the crop acreage base to be 
planted to a covered commodity as a condition for eligibility 
for program benefits. It is the intent of the Committee that 
the haying and grazing of any commodity or crop should be 
allowed on fixed decoupled or counter-cyclical base acreage at 
any time during the year without any reduction in program 
benefits.
    The Committee expects the Secretary to provide a process 
whereby producers who have gained an interest in a farm as a 
result in a change of operator or owner may succeed to the 
fixed decoupled and counter-cyclical base acreage. The 
Committee expects the Secretary to provide successors a 
reasonable amount of time to succeed to a fixed decoupled and 
counter-cyclical payment.
    The Committee expects the Secretary to require producers 
participating in the fixed decoupled and counter-cyclical 
programs to file annual acreage reports, reflecting at a 
minimum, crop, practice, acreage and intended use of any crop 
planted during the crop year.

Sec. 107. Planting flexibility

    All rules concerning planting flexibility are unchanged. 
Generally, producers may plant any commodity on the base acres 
of a farm, except fruits and vegetables (excluding lentils, 
mung beans, and dry peas). The 3 exceptions to this rule in 
current law are also unchanged. Fruits and vegetables may be 
planted on base acres in a region where the Secretary 
determines there is a history of double cropping of covered 
commodities with fruits and vegetables. Fruits and vegetables 
may be planted on base acres on a farm that the Secretary 
determines has a history of planting fruits and vegetables on 
base acres, except that fixed decoupled payments and counter-
cyclical payments will be reduced for each acre. Fruits and 
vegetables also may be planted by a producer who the Secretary 
determines has an established planting history of a specific 
fruit or vegetable, except that the quantity planted may not 
exceed the producer's annual planting history from the 1991 
through 1995 crop years, as determined by the Secretary, and 
fixed, decoupled payments and counter-cyclical payments will be 
reduced for each acre.

Sec. 108. Relation to remaining payment authority under production 
        flexibility contracts

    Authority to make AMTA contract payments for the 2002 
fiscal year is terminated upon enactment. If a producer 
receives a AMTA contract payment for the 2002 fiscal year 
before enactment of this legislation, the amount of the 
producer's fixed decoupled payment for fiscal year 2002 will be 
reduced by the amount of the AMTA contract payment.
    It is expected that some producers will receive all or a 
portion of the fiscal year 2002 AMTA contract payment beginning 
October 1, 2001. The Committee intends that the Secretary 
reduce any crop year 2002 fixed decoupled payment by an amount 
received by the same producer on the farm pursuant to the 
fiscal year 2002 AMTA contract.

Sec. 109. Payment limitations

    Fixed decoupled payments and counter-cyclical payments are 
subject to the payment limitations contained in sections 1001 
through 1001C of the Food Security Act of 1985 as amended.

Sec. 110. Period of effectiveness

    The subtitle is effective from the 2002 crop year through 
the 2011 crop year.

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments


Sec. 121. Availability of nonrecourse marketing assistance loans for 
        covered commodities

    The Secretary will make nonrecourse marketing assistance 
loans available to producers of covered commodities, including 
extra long staple cotton, for each of the 2002 through 2011 
crop years. Any production of the covered commodity is 
eligible. Producers that would otherwise be eligible for the 
assistance but for certain commingling of the covered commodity 
are eligible for marketing loan assistance. Producers are 
required to comply with highly erodible lands and wetlands 
conservation requirements as a condition to receiving marketing 
loan assistance. Extra long staple cotton is defined. Marketing 
loan assistance for the 2002 crop year authorized in the FAIR 
Act of 1996 is terminated.
    The Committee expects the Secretary to make available a 
marketing assistance loan or loan deficiency payment on any 
production of a covered commodity. In addition, the Committee 
intends the Secretary provide marketing assistance loans on 
production delivered to a facility unlicensed for the storage 
of the delivered commodity if the producer agrees as a 
condition for obtaining the loan to immediately repay the loan.

Sec. 122. Loan rates for nonrecourse marketing assistance loans

    The current wheat loan rate is maintained at not more than 
$2.58 per bushel. The corn loan rate is maintained at not more 
than $1.89 per bushel. The grain sorghum loan rate is set at 
not more than $1.89 per bushel. The barley loan rate is 
maintained at not more than $1.65 per bushel. The oat loan rate 
is maintained at not more than $1.21 per bushel. The upland 
cotton loan rate is maintained at not less than $0.50 per pound 
and not more than $0.5192 per pound. The extra long staple 
cotton loan rate is maintained at not more than $0.7965 per 
pound. The soybean loan rate is set at not more than $4.92 per 
bushel. The loan rate with respect to other oilseeds is set at 
not more than $0.087 per pound.
    The Committee equalized the loan rate of grain sorghum with 
corn and intends that the Secretary give serious consideration 
to insuring the loan rate for these two crops is equalized each 
year. In many parts of the country, producers have the option 
of growing either corn or sorghum; and the equalization of loan 
rates insures that producers make a choice to produce the crop 
based on factors other than loan rates.

Sec. 123. Term of loans

    The term for marketing assistance loans is unchanged. For 
all covered commodities except upland cotton and extra long 
staple cotton, the term of the loan is nine months beginning on 
the first day of the first month after the month in which the 
loan is made. For upland cotton and extra long staple cotton, 
the term of the loan is 10 months beginning on the first day of 
the month in which the loan is made.

Sec. 124. Repayment of loans

    Repayment of marketing assistance loans is unchanged. The 
Secretary will permit producers of wheat, corn, grain sorghum, 
barley, oats, soybeans, and other oilseeds to repay a marketing 
assistance loan at a rate that is the lesser of the loan rate 
for the commodity plus interest or a rate that the Secretary 
determines will minimize forfeitures, accumulation of stocks, 
storage costs, and allow the commodity to be marketed freely 
and competitively. The Secretary will permit producers of 
upland cotton and rice to repay a marketing assistance loan at 
a rate that is the lesser of the loan rate for the commodity 
plus interest or the prevailing world market price (adjusted to 
U.S. quality and location), as determined by the Secretary. The 
Secretary will permit producers of extra long staple cotton to 
repay a marketing assistance loan at the loan rate plus 
interest. The Secretary will prescribe by regulation the 
formula to determine the prevailing world market price and a 
mechanism to periodically announce this price. The adjustment 
of the prevailing world market price for upland cotton is 
unchanged.
    The Committee intends to give the Secretary a considerable 
amount of discretion in determining a loan repayment rate that 
minimizes loan forfeitures, accumulation of stocks, storage 
costs and allows the commodity to be marketed freely and 
competitively, both domestically and internationally. Beginning 
in 1998, the Committee noticed that the method used by the 
Secretary to determine the Posted County Price for feed grains, 
wheat and oilseeds led to a considerable number of 
discrepancies in the loan repayment rate and loan deficiency 
payment between neighboring counties and states. The Committee 
is concerned that the Secretary has created a system for loan 
repayments that does not accurately reflect on a continuing 
basis the changing dynamics of the market, thus creating the 
disparity between producers and elevators in neighboring 
counties and states.
    The Committee is also concerned that in some instances the 
terminal market price established by the Secretary does not 
reflect the market into which a commodity is generally traded 
or sold nor does the terminal market price announced each day 
by the Secretary reflect the value that a producer could expect 
to receive for the commodity. The Committee fully expects the 
Secretary to review the current system and make the adjustments 
necessary to create a balanced and equitable system for 
producers.

Sec. 125. Loan deficiency payments

    Loan deficiency payments are maintained. The Secretary will 
make loan deficiency payments available to producers who, 
although eligible for a marketing assistance loan, agree to 
forgo a loan in favor of receiving a payment. The loan 
deficiency payment is determined by multiplying the loan 
payment rate by the quantity of the covered commodity produced, 
excluding any commodity for which the producer obtained a loan. 
The loan payment rate is the amount by which the loan rate 
exceeds the rate at which the loan must be repaid. This section 
does not apply to extra long staple cotton. The Secretary will 
pay the producer a loan deficiency payment on the earlier of 
the date the producer marketed or lost beneficial interest in 
the commodity or the date the producer requests the payment.
    The Committee intends that the Secretary make a loan 
deficiency payment to a producer on the earlier of the date a 
producer lost beneficial interest in the crop or the date the 
producer requests the payment.
    The Committee is interested in the Secretary examining 
current regulations related to the flexibility of loan 
deficiency payment ``lock-in'' dates. Currently, producers 
placing commodities under loan can ``lock-in'' a loan repayment 
rate 60 days in advance of repaying the marketing assistance 
loan. However, producers applying for a loan deficiency payment 
are not afforded the opportunity to ``lock-in'' a loan 
deficiency payment prior to presenting production evidence to 
the Farm Service Agency. The Committee is interested in the 
Secretary allowing producers the opportunity to ``lock-in'' 
loan deficiency payments in a manner that maximizes 
opportunities to equally access loan deficiency payments. The 
Committee expects that any procedure the Secretary implements 
provide equitability to all producers and protects the 
interests of CCC by insuring payments are not disbursed until 
acceptable production evidence is furnished.

Sec. 126. Payments in lieu of loan deficiency payments for grazed 
        acreage

    The Secretary will make payments in lieu of loan deficiency 
payments for grazed acreage to producers that would be eligible 
for such a loan deficiency payment for wheat, barley, or oats 
but elects to use the acreage planted to the crops for 
livestock grazing. To receive a payment, the producer must 
agree to forgo any other harvesting of the commodity. The 
payment amount is determined by multiplying the loan deficiency 
payment rate by the payment quantity, which is determined by 
multiplying the quantity of grazed acreage by the payment 
yield. The time, manner, and availability of these payments are 
to be consistent with the general loan deficiency payment and 
marketing assistance loan provisions for wheat, barley, and 
oats. Producers who receive a loan deficiency payment under 
this section are ineligible for crop insurance or noninsured 
crop assistance as to that acreage.
    The Committee intends that producers of wheat, oats and 
barley on a farm who graze the acreage and forego mechanical 
harvesting to be eligible for a payment under the same terms 
and conditions as a producer who harvests a crop and applies 
for a loan deficiency payment. The Committee intends for the 
producer to enter into a payment agreement with CCC at the loan 
deficiency payment rate for the applicable crop in effect on 
the date of such agreement, at such time as the producer 
chooses, but not earlier than the date a producer who normally 
harvests a crop would make application for a loan deficiency 
payment. The Committee does not intend for producers to be able 
to collect crop insurance benefits and payments in lieu of loan 
deficiency payments for grazed acreage on the same acre of 
land. The Committee expects the Secretary to insure that 
multiple program benefits are not collected in accordance with 
this provision.

Sec. 127. Special marketing loan provisions for upland cotton

    The special marketing loan provisions for upland cotton 
remain unchanged, including provisions relating to cotton user 
marketing certificates, the special import quota, and the 
limited global import quota for upland cotton.
    The Committee recognizes the ever-increasing competition 
the U.S. cotton and textile industries are facing from imported 
textile and apparel products and the disadvantages associated 
with a strong dollar. Additionally, barriers to textile trade 
in foreign markets have also contributed to the substantial 
decline in domestic consumption of cotton, thereby having a 
negative affect on U.S. cotton prices. In order to increase the 
competitiveness of U.S. cotton and cotton products, the 
Committee strongly urges the Secretary to examine alternatives 
to the $.0125 threshold in the step 2 program for cotton. The 
Secretary should review other possible adjustments in cotton's 
competitiveness provisions, particularly step 2, for the 
purpose of offsetting, to some degree, the adverse impact of a 
strong dollar on the U.S. cotton and textile industries. The 
competitive disadvantages of a strong dollar are not confined 
to the cotton and textile industries.

Sec. 128. Special competitive provisions for extra long staple cotton

    The special competitive provisions for extra long staple 
cotton remain unchanged, including provisions relating to the 
competitiveness program, payments under the program, 
eligibility, and the amount and form of payment.
    This program was enacted previously and is being continued 
in the bill as a fully-funded competitiveness program. In 
implementing this program, the Secretary should maintain 
flexibility in picking the varieties of ELS cotton to compare--
foreign and domestic. The Secretary should implement the 
program in such a manner as to retain the ability to change the 
growths that will be compared should there be changes in the 
makeup of the applicable competing varieties. The Secretary 
should announce any such change in growths to be compared in a 
way that will minimize disruptions in the market and in the 
marketing of ELS cotton.

Sec. 129. Availability of recourse loans for high moisture feed grains 
        and seed cotton and other fibers

    The availability of recourse loans for high moisture feed 
grains and seed cotton remains unchanged. Authority under the 
FAIR Act to provide this assistance for the 2002 crop year is 
terminated.

Sec. 130. Availability of nonrecourse marketing assistance loans for 
        wool and mohair

    The Secretary will make nonrecourse marketing assistance 
loans available to producers of wool and mohair for the 2002 
through 2011 marketing years. The graded wool loan rate is set 
at not more than $1.00 per pound. The non-graded wool loan rate 
is set at not more than $0.40 per pound. The mohair loan rate 
is set at not more than $4.20 per pound. The term of the loan 
is one year beginning on the first day of the first month after 
the month in which the loan is made. Producers may repay the 
loan at a rate that is the lesser of the loan rate established 
for the commodity plus interest or at a rate that the Secretary 
determines will minimize forfeitures, accumulation of stock, 
storage costs, and that allows the commodity to be marketed 
freely and competitively. Loan deficiency payments are also 
authorized. This assistance is subject to the payment 
limitations imposed under sections 1001 through 1001C of the 
Food Security Act of 1985 as amended.
    The Committee intends for the Secretary to administer the 
marketing assistance loan and loan deficiency program for wool 
and mohair in a manner similar to other commodities with such 
programs. The Committee expects the Secretary to establish 
premiums and discounts for different grades of wool and mohair 
and announce a repayment rate that minimizes forfeitures, 
accumulation of stocks, storage costs and allows the commodity 
to be marketed freely and competitively.

Sec. 131. Availability of nonrecourse marketing assistance loans for 
        honey

    The Secretary will make nonrecourse marketing assistance 
loans available to producers of honey for the 2002 through 2011 
marketing years. The honey loan rate is set at not more than 
$0.60 per pound. The term of the loan is one year beginning on 
the first day of the first month after the month in which the 
loan is made. Producers may repay the loan at a rate that is 
the lesser of the loan rate established for the commodity plus 
interest or at the prevailing domestic market price for honey. 
Loan deficiency payments are also authorized. This assistance 
is subject to the payment limitations imposed under sections 
1001 through 1001C of the Food Security Act of 1985 as amended.

                     Subtitle C--Other Commodities


                            CHAPTER 1--DAIRY


Sec. 141. Milk Price Support Program

    Milk Price Support Program is authorized through December 
31, 2011 at a rate of $9.90/cwt on a 3.67% milkfat basis. The 
Secretary is authorized to purchase butter, nonfat dry milk 
powder or cheese at established prices in order to maintain the 
$9.90/cwt support price. The purchase prices for butter and 
nonfat dry milk powder may be allocated so as to minimize 
expenditures from the Commodity Credit Corporation. The 
Secretary may modify purchase prices for butter and nonfat dry 
milk not more than 2 times per year.

Sec. 142. Repeal of Recourse Loan Program for processors

    The Recourse Loan Program for Processors (7 U.S.C. 7252) is 
repealed.

Sec. 143. Dairy Export Incentive Program

    The Dairy Export Incentive Program (15 U.S.C. 713a-14(a)) 
is extended through 2011.

Sec. 144. Fluid Milk Promotion

    The Fluid Milk Processor Promotion Program (7 U.S.C. 6402) 
is amended to repeal the termination of authority, and to make 
technical changes to the definitions of ``Fluid Milk Product'' 
and ``Fluid Milk Processor.''

Sec. 145. Dairy product mandatory reporting

    Dairy Product Mandatory Reporting (7 U.S.C. 1637a(1)) is 
amended to make technical corrections regarding products to be 
reported.

Sec. 146. Funding of Dairy Promotion and Research Program

    The Dairy Promotion Program (7 U.S.C. 4502) is amended to 
require dairy importers to pay an assessment equivalent to 
domestic dairy producers. Importers would be eligible to vote 
in referenda and would have representation on the National 
Dairy Promotion and Research Board.

                            CHAPTER 2--SUGAR


Sec. 151. Sugar Program

    Subsection (a) reauthorizes the sugar program through 2011. 
Subsection (b) terminates the marketing assessment on sugar 
effective October 1, 2001. Subsection (c) provides the 
Secretary of Agriculture the discretion to reduce loan rates 
for U.S. sugar producers in the event that support for foreign 
competitors is reduced beyond that required under the Agreement 
on Agriculture. Subsection (d) ensures that notification 
requirements do not frustrate the purposes of the nonrecourse 
loan program. Subsection (e) authorizes nonrecourse loans on 
in-process sugars. Subsection (f) requires the Secretary of 
Agriculture to administer the sugar program at no net cost to 
the federal government to the maximum extent practicable. The 
subsection also authorizes the CCC to accept bids from 
processors for the purchase of sugar inventory in exchange for 
reduced production. Subsection (g) requires producers and 
importers to report certain information. Subsection (h) makes 
section 163 of the FAIR Act inapplicable to sugar.

Sec. 152. Reauthorize provisions of Agricultural Adjustment Act of 1938 
        regarding sugar

    Subsection (a) repeals repetitive reporting provisions. 
Subsection (b) requires the Secretary to establish marketing 
allotments for domestically grown sugar to eliminate 
forfeitures. Subsection (c) updates the allotment formula to 
take into account current U.S. import obligations. The 
subsection also assigns allotments between sugarcane and sugar 
beets. Finally the subsection authorizes the Secretary to 
suspend allotments whenever imports exceed a certain level. 
Subsection (d) updates the base periods and other factors 
applicable to the allocation of sugarcane and sugar beet 
allotments among sugarcane and sugar beet processors, 
respectively. Subsection (e) establishes procedures for the 
Secretary to reassign allotments if a processor cannot meet the 
allocation. Subsection (f) prescribes the manner in which 
allotment disputes are settled and provides for certain 
adjustments in the event a processor closes. Subsection (g) 
allows the Secretary to preserve certain acreage base history 
for a longer period and also defines the term ``offshore 
states''. Subsection (h) lifts the suspension on allotments.

Sec. 153. Storage facility loans

    Subsection (a) requires the CCC to amend the Code of 
Federal Regulations to establish a sugar storage facility loan 
program. Subsection (b) requires the CCC to make such loans to 
processors of domestically produced sugar that have 
satisfactory credit history, that need increased storage, and 
that demonstrate an ability to repay the loan. Subsection (c) 
provides for a 7-year term for the loan. Subsection (d) 
requires the program be administered using the services, 
facilities, and funds of the CCC.

                           CHAPTER 3--PEANUTS


Sec. 161. Definitions

    Defines terms necessary for implementation of this act, 
including counter-cyclical payment, effective price, eligible 
peanut producer, fixed, decoupled payment, payment acres, 
peanut acres, payment yield, producer, and target price.

Sec. 162. Establishment of payment yield, peanut acres, and payment 
        acres for a farm

    For the purpose of making fixed decoupled payments and 
counter-cyclical payments to eligible peanut producers under 
this chapter, this section directs the Secretary to provide for 
the establishment of a payment yield for peanut farms by first 
determining the average yield for peanuts on the farm for the 
1998 through 2001 crop years, excluding any crop year in which 
the acreage planted to peanuts was zero. If, for any of these 
four crop years in which peanuts were planted the farm would 
have satisfied the eligibility criteria established to carry 
out section 1102 of the Agriculture, Rural Development, Food 
and Drug Administration, and Related Agencies Appropriations 
Act 1999, the Secretary shall assign a yield for that year 
equal to 65 percent of the county yield, as determined by the 
Secretary.
    This section also provides for the establishment of peanut 
acres which equals the four year average of acreage actually 
planted on the farm in peanuts during crop years 1998, 1999, 
2000, and 2001 and any acreage on the farm that the producers 
were prevented from planting to peanuts during such crops years 
because of natural disaster. The section provides for the 
establishment of payment acres for peanuts on a farm, which are 
equal to 85 percent of the peanut acres for the farm. Finally 
the section states that the sum of peanut acres for a farm, 
together with any base acres for a farm under subtitle A and 
acreage on the farm enrolled in the conservation reserve 
program or wetlands reserve program, or any other acreage on 
the farm enrolled in a conservation program for which payments 
are made in exchange for not producing an agriculture commodity 
on the acreage, may not exceed the actual cropland acreage of 
the farm.
    The Committee expects the Secretary to establish a payment 
yield, peanut acres, and payment acres on any farm in which a 
producer planted or was prevented from planting peanuts for the 
years 1998 through 2001 because of drought, flood, other 
natural disaster or other condition beyond the control of the 
producer. To the maximum extent possible, the Committee expects 
the Secretary to utilize production evidence previously 
furnished on marketing cards when establishing yield history. 
The Committee intends for the Secretary to exclude from the 
yield history any year in which the producer had a zero yield 
because of zero plantings of peanuts. If the actual production 
in any year was less than the 65 percent threshold used to 
establish disaster eligibility criteria for quantity losses, 
the Committee expects the Secretary to substitute a yield for 
that year equal to 65% of the county yield in lieu of using the 
actual production for that year.
    The Committee intends for the Secretary to establish fixed 
decoupled and counter-cyclical payment acreage based on peanut 
acreage planted and prevented from being planted on a farm for 
the years 1998 through 2001. The Committee intends for the 
Secretary to have discretion in determining prevented planted 
acres, but it is not the intention of the Committee to include 
``considered planted acreage credit'' when determining peanut 
acres.
    In order to avoid duplicate payments on the same acreage, 
the Committee expects the Secretary to insure that the sum of a 
producers base acreage under subtitle A, peanut acreage, CRP, 
WRP and other similar acreage enrolled in a conservation 
program for which payments are received for not producing a 
crop does not exceed the cropland acreage on a farm. The 
Committee expects the Secretary to insure that producers on 
farms are afforded the option of determining what crop base 
acreage or peanut acreage is reduced if necessary to meet this 
requirement.

Sec. 163. Availability of fixed, decoupled payments for peanuts

    The Secretary will make fixed, decoupled payments to 
eligible producers for each of the 2002 through 2011 crop years 
at a payment rate of $36 per ton for peanuts. The amount of the 
fixed, decoupled payment will be equal to the product of the 
payment rate, the payment acres, and the payment yield. Fixed, 
decoupled payments must be paid no later than September 30 of 
fiscal years 2002 through 2011, except that in fiscal year 2002 
payments may be made on or after December 1, 2001. A producer 
may receive up to 50 percent of the fixed, decoupled payment in 
advance anytime on or after December 1 of a fiscal year. If a 
producer who receives a fixed, decoupled payment ceases to be 
an eligible producer by the time final fixed, decoupled 
payments are to be made, the producer must repay the advance 
amount.
    The Committee intends for the Secretary to make advanced 
fixed decoupled payments to producers at any time, beginning on 
December 1 of each year. The Committee expects producers to be 
eligible for the advance payment until such time the Secretary 
makes final payments. The Committee expects the Secretary to 
make any remaining payments due producers as a final payment 
prior to the end of the fiscal year.
    The Committee also intends that producers who receive an 
advance payment and are later determined to not have been an 
eligible producer at the time the Secretary makes final payment 
to repay the advance payment. The Secretary shall make every 
effort to collect the unearned payment and provide the 
successor the payment that they would have otherwise been due 
had the predecessor not received the payment.

Sec. 164. Availability of counter-cyclical payment for peanuts

    This section directs the Secretary to make counter-cyclical 
payments with respect to peanuts whenever the Secretary 
determines that the effective price for peanuts is less than 
the target price. The effective price is equal to the sum of 
the higher of the national average market price during the 12-
month marketing year for peanuts or the national average loan 
rate for peanuts, and the payment rate for fixed, decoupled 
payments for peanuts. The target price for peanuts is $480 per 
ton. The payment rate for counter-cyclical payments is equal to 
the difference between the target price and the effective price 
for the commodity. The payment amount for counter-cyclical 
payments is the product of the payment rate, the payment acres, 
and the payment yield. The Secretary may provide a partial 
payment up to 50 percent of the projected counter-cyclical 
payment to producers 6 months into the marketing year for that 
crop. The producer shall repay to the Secretary the amount, if 
any, by which the partial payment exceeds the actual counter-
cyclical payment to be made for that crop.
    Producers as described in section 161 are eligible to 
receive a counter-cyclical payment for peanuts if the effective 
price is less than the established target price. The Committee 
expects the Secretary to review the national average price for 
peanuts six months after the beginning of the peanut marketing 
year to determine if the national average price would 
subsequently warrant a counter-cyclical payment at the end of 
the 12-month marketing year. At the discretion of the 
Secretary, partial counter cyclical payments on up to 50 
percent of the projected payment is permitted and the Secretary 
is encouraged to make those payments as soon as practicable 
after the mid-year projected payment is determined.
    In order to expedite counter cyclical payments, the 
Committee encourages the Secretary to allow producers to 
designate whether they want to receive a partial counter 
cyclical payment at the same time producers notify the 
Secretary of their intentions for an advanced fixed decoupled 
payment. If the Secretary permits a partial counter cyclical 
payment, the Committee expects the Secretary to allow producers 
the opportunity to elect to receive a partial payment through 
the end of the 12-month marketing year. If at the end of the 
12-month marketing year, the Secretary determines any partial 
payments were not earned, the Committee expects the Secretary 
to collect any overpayments in the same manner as other program 
overpayments are collected.

Sec. 165. Producer agreement required as condition on provision of 
        fixed, decoupled payments and counter-cyclical payments

    This section states before producers on a farm may receive 
fixed decoupled payments or counter-cyclical payments, the 
producers shall agree to comply with applicable conservation 
and wetland requirements, to comply with planting flexibility 
requirements, and to agree to use the land in the amount equal 
to the peanut acres for an agricultural or conserving use. This 
section also directs the Secretary to provide adequate 
safeguards to protect the interests of tenants and 
sharecroppers. The Secretary may forgive any repayments owed by 
a producer that is foreclosed upon. Fixed, decoupled payments 
and counter-cyclical payments are terminated when base acres 
are transferred unless the transferee agrees to comply with 
these requirements. There is no restriction on the transfer of 
base acres or payment yields. Requires producers who receive 
fixed, decoupled payments, counter-cyclical payments, or 
marketing loan assistance to submit acreage reports to the 
Secretary.
    The Committee expects the Secretary to provide a process 
whereby producers who have gained an interest in a farm as a 
result in a change of operator or owner may succeed to the 
fixed decoupled and counter-cyclical base acreage.
    The Committee expects the Secretary to require producers 
participating in the fixed decoupled and counter-cyclical 
programs to file annual acreage reports, reflecting at a 
minimum, crop, practice, acreage and variety of peanuts planted 
during the crop year.
    The Committee intends for the Secretary to provide adequate 
safeguards to protect the interests of tenants and 
sharecroppers. The Committee also intends the Secretary to 
provide for the sharing of fixed, decoupled payments and 
counter cyclical payments among eligible peanut producers on a 
farm on a fair and equitable basis.

Sec. 166. Planting flexibility

    Generally, producers may plant any commodity on the peanut 
acres of a farm, except fruits and vegetables (excluding 
lentils, mung beans, and dry peas). The 3 exceptions to this 
rule in current law are also unchanged. Fruits and vegetables 
may be planted on peanut acres in a region where the Secretary 
determines there is a history of double cropping of covered 
commodities with fruits and vegetables. Fruits and vegetables 
may be planted on peanut acres on a farm that the Secretary 
determines has a history of planting fruits and vegetables on 
peanut acres, except that fixed, decoupled payments and 
counter-cyclical payments will be reduced for each acre. Fruits 
and vegetables also may be planted by a producer who the 
Secretary determines has an established planting history of a 
specific fruit or vegetable, except that the quantity planted 
may not exceed the producer's annual planting history from the 
1991 through 1995 crop years, as determined by the Secretary, 
and fixed, decoupled payments and counter-cyclical payments 
will be reduced for each acre.

Sec. 167. Marketing assistance loans and loan deficiency payments for 
        peanuts

    This section makes available nonrecourse marketing 
assistance loans for all peanut production on a farm. This 
section sets the maximum loan rate for peanuts at $350 per ton. 
The Secretary shall permit producers to repay a marketing 
assistance loan at a rate that is the lesser of the loan rate 
for the commodity plus interest or a rate that the Secretary 
determines will minimize forfeitures, accumulation of stocks, 
storage costs, and allow peanuts to be marketed freely and 
competitively. In addition, this section makes available loan 
deficiency payments to producers who, although eligible to 
obtain a marketing assistance loan, agree to forgo obtaining 
the loan for peanuts in return for payments. This section gives 
producers options for obtaining market assistance loans through 
a designated marketing association, a loan servicing agent, or 
the Farm Service Agency. Finally this section terminates 
section 155 of the Federal Agriculture Improvement and Reform 
Act of 1996, which provided superseded price support authority.
    It is the intention of the Committee to make available a 
marketing assistance loan or loan deficiency payment on any 
production of peanuts produced on the farm. It is the intention 
of the Committee that the Secretary provide producers an option 
of where to obtain their marketing assistance loan or loan 
deficiency payment, just as producers of other commodities 
have. It is the Committees intention that a producer may obtain 
a marketing assistance loan and loan deficiency payments 
through either a designated marketing association or loan 
servicing agent approved by the Secretary, or the Farm Service 
Agency.

Sec. 168. Quality improvement

    The section states all peanuts placed under a marketing 
loan under section 167 shall be officially inspected and graded 
by Federal or State inspectors. Peanuts not placed under a 
marketing loan may be graded at the option of the producer. The 
section terminates the Peanut Administrative Committee and the 
Secretary is directed to establish a Peanut Standards Board for 
the purpose of assisting in the establishment of quality 
standards for peanuts. The members of the Board should fairly 
reflect all segments of the peanut industry.
    The Committee intends for the makeup of the Peanut 
Standards Board to not only represent all segments of the 
industry but also fairly represent all major peanut regions of 
the country.

Sec. 169. Payment limitations

    Fixed, decoupled payments, counter-cyclical payments and 
limitations on marketing loan gains and loan deficiency 
payments are subject to the payment limitations contained in 
sections 1001 through 1001C of the Food Security Act of 1985 as 
amended.

Sec. 170. Termination of marketing quota programs for peanuts and 
        compensation to peanut quota holders for loss of quota asset 
        value

    During fiscal years 2002-2006, the Secretary shall make 
payments to eligible peanut quota holders to compensate them 
for the lost value of the quota on account of the repeal of the 
marketing quota program for peanuts at a rate of $0.10 per 
pound per year.
    The Committee intends to compensate holders of peanut quota 
for the loss of their quota as a result of the termination of 
the peanut marketing quota program. The Committee intends for 
the Secretary to enter into an agreement with quota holders to 
make an annual payment in five equal installments in each of 
the fiscal years 2002 through 2006. The Committee intends that 
the agreement entered into by the Secretary and the holders of 
peanut quota provide for the sharing of the compensation in a 
manner in proportion to a person or entity's ownership interest 
in the quota. The Committee intends that no payment limitation 
provisions are in effect for this section.

                         TITLE II--CONSERVATION


                        Subtitle A--Definitions


Sec. 201. Definition of agricultural commodity

    Amends section 1201(a)(1) to change the definition of an 
agricultural commodity.

                        Subtitle B--Swampbuster


Sec. 211. Ineligibility for certain loans and payments

    Amends section 1221(b) (Swampbuster) to conform program 
ineligibility provisions to Highly-Erodible Lands provisions of 
section 1211. Producers would be penalized for swampbusting 
only on the crop which was produced on the converted wetland.

     Subtitle C--Environmental Conservation Acreage Reserve Program


Sec. 221. Elimination of general provisions

    Strikes section 1230, which was a set of general provisions 
used to describe the Conservation Reserve Program and the 
Wetlands Reserve Program. Section 1230A, which provides relief 
to producers who were found to have violated a provision of the 
CRP or WRP through no fault of their own, is moved to section 
1244.

                Subtitle D--Conservation Reserve Program


Sec. 231. Reauthorization

    Extends the CRP through the 2011 calendar year. In 
addition, it includes wildlife resources within the scope of 
the program.

Sec. 232. Enrollment

    Makes several changes to the lands eligible for enrollment 
in the CRP. First, it increases the maximum enrollment to 39.2 
million acres. Second, it makes lands on which surface or 
groundwater is conserved eligible for enrollment. Third, it 
makes lands currently enrolled in the CRP eligible for re-
enrollment. Fourth, it clarifies the eligibility of marginal 
pastureland. Fifth, it requires the Secretary to balance 
conservation interests in soil erosion, water quality and 
wildlife habitat in determining the acceptability of contract 
offers.
    It is the intention of the Committee that soil erosion 
concerns not be the sole determinative factor with respect to 
enrollment of lands in the Conservation Reserve Program. 
Rather, the Secretary shall give due consideration of non-
highly erodible cropland on which continued agricultural 
production would contribute to environmental degradation as set 
forth in subsection (b)(4). In addition, the Secretary shall 
consider marginal pastureland which has been devoted to water 
quality protection.
    New Section 1231(i) requires the Secretary to carry out a 
rulemaking that considers the three primary purposes of the 
CRP: conserving soil, improving water quality and providing 
wildlife habitat. The Committee is concerned that the 
Environmental Benefits Index (EBI) has created inequities in 
the distribution of contract offers, giving some areas of the 
country substantial benefits through the CRP while other areas 
are neglected. CRP is a national program with national purposes 
and objectives. The Secretary should endeavor in the rulemaking 
required by section 1231(i) to make certain that all areas of 
the country are able to enjoy the benefits of the CRP, but the 
Secretary should accomplish this without a strict allocation of 
the benefits and requirements of conserving soil, improving 
water quality and providing wildlife habitat. For example, a 
CRP contract that keeps soil on the land should improve water 
quality, and both should help create a habitat in which 
wildlife may thrive.

Sec. 233. Duties of owners and operators

    Amends section 1232 to: (1) ensure that landowners who have 
an established cover crop on CRP lands are not required to 
destroy that cover crop in order to plant a vegetative cover, 
and (2) authorize the Secretary to allow managed grazing and 
limited haying (with a conservation reserve payment reduction), 
placement of wind turbines for generating energy, and biomass 
recovery for energy production (with a conservation reserve 
payment reduction) on CRP lands.
    Section 233(1)(B) applies to new contracts entered into 
after the date of enactment of these provisions. The Committee 
assumes that landowners/operators who agreed in previous 
general sign-ups to plant additional species of grasses, forbs 
or shrubs in order to obtain additional points under the 
Environmental Benefits Index will continue to work with the 
Department to fulfill this obligation. However, for any new 
sign-ups carried out by the Secretary, the Committee expects 
that the Department will take into account the species found on 
the existing cover when determining the need for planting 
additional grasses, forbs or shrubs on acreage that may be re-
enrolled in the program.
    Recognizing the potential of using agricultural biomass to 
generate energy, the Committee is expanding the Secretary's 
authority to permit the recovery of biomass from land enrolled 
in the Conservation Reserve Program, for use in producing 
energy. In so doing, the Committee intends that the Secretary 
develop a rule for the expanded program that provides for an 
increased number of project allowances, but maintains the 
harvest practice limitations required under the Conservation 
Reserve Program Biomass Pilot Project (authorized under section 
769 of P.L. 106-78), including a reduction in the conservation 
reserve payments by an amount commensurate with the economic 
value of such activity.
    Finally, the Committee considers the generation of energy 
through wind turbines to be a resource landowners should 
exploit to the maximum extent possible. In this regard, the 
Committee believes CRP lands may be used for this purpose 
without a reduction in conservation payments. The Committee 
encourages the Secretary to allow wind turbines to be used on 
CRP where appropriate.

Sec. 234. Duties of the Secretary

    Amends section 1233 by striking a requirement that the 
Secretary must provide conservation technical assistance to 
landowners in bringing land into the CRP.

Sec. 235. Acceptance of contract offers

    Amends section 1234(c) by striking language that authorizes 
the Secretary to consider enrollment of lands that would 
improve soil resources, water quality and wildlife habitat and 
establish different criteria for water quality and wildlife 
habitat in different areas of the country.

Sec. 236. Contracts

    Amends section 1235 to: (1) limit the enrollment of lands 
in the CRP which have been acquired in the year preceding the 
first year of the contract period to situations in which the 
land was acquired by will or succession or there was a change 
in ownership due to foreclosure, (2) direct the Secretary to 
restore crop base, contract acreage, quota or allotment history 
upon expiration of the CRP contract, and (3) change the term 
``rental payment'' to ``conservation reserve payment.''
    In carrying out the Conservation Reserve Program, the 
Committee encourages the Secretary to find a balance between 
forestry uses on CRP lands so as not to discriminate between 
hardwood and softwood timbers.

                  Subtitle E--Wetlands Reserve Program


Sec. 241. Enrollment

    Amends section 1237 to: (1) provide the Secretary authority 
to enroll 150,000 acres of land into the WRP annually using 
easements, restoration cost share agreements or both, (2) 
direct the Secretary to give enrollment priority to lands which 
maximize wetland functions and values, and (3) make lands in 
the CRP or lands where EQIP contracts are entered into 
ineligible for WRP easements. With respect to acreage 
enrollment, section 1237 is amended to enable the Secretary to 
rollover any unused acres to future years.

Sec. 242. Easements and agreements

    Amends section 1237A by rewriting various restrictions the 
Secretary may impose on landowners who have a WRP easement.

Sec. 243. Duties of the Secretary

    Amends section 1237C by striking language which requires 
the Secretary to provide technical assistance when landowners 
enter into a WRP easement and which gives priority to permanent 
easements.

Sec. 244. Payments limitation

    Amends section 1237D(c)(1) to clarify those payments which 
are taken into account in determining whether a participant has 
exceeded the $50,000 payment limitation.

Sec. 245. Changes in ownership; agreement modification; termination

    Amends section 1237E(a) by limiting the enrollment of lands 
in the WRP which have been acquired in the year preceding the 
first year of the contract period to situations in which the 
land was acquired by will or succession or there was a change 
in ownership due to foreclosure.

          Subtitle F--Environmental Quality Incentives Program


Sec. 251. Purposes

    Amends section 1240 by striking references to the 
agricultural conservation program, the Great Plains 
conservation program, the water quality incentives program and 
the Colorado River Basin salinity control program and the 
combination of those programs into a single program. Provides 
that EQIP, among other things, is to provide flexible 
assistance to assist farmers and ranchers address environmental 
needs and provide benefits to air.

Sec. 252. Definitions

    Amends section 1240A to include non-industrial private 
forest land as eligible land under EQIP and as well as lands 
which provide environmental benefits to air, soil, water or 
related resources. Persons engaged in non-industrial private 
forestry are included in the definition of producer. In 
addition, ``permanent wildlife habitat'' is struck from the 
definition of structural practice.

Sec. 253. Establishment and administration

    Amends section 1240B to reauthorize EQIP through 2011 and 
requires the Secretary to provide cost-share and incentive 
payments to producers who enter into EQIP contracts. Contracts 
may be for terms of one to 10 years as determined by the 
Secretary. Section 1240B(c) is amended so that structural 
practices are based on a reasonable estimate of the projected 
costs and must achieve the purposes of the subtitle. The 
limitation on the size of livestock operations eligible for 
EQIP is eliminated. Authorizes the Secretary to make incentive 
payments in amounts and rates to encourage a producer to 
perform multiple land management practices and to promote the 
enhancement of soil, water, air and related resources. The 
Secretary may give great weight to those practices that include 
residue, nutrient, pest, invasive species and air quality 
management when determining the incentive payments.
    The Committee encourages the Secretary to implement EQIP by 
emphasizing the conservation results on the farm, ranch or 
private forests of the nation instead of requiring extensive 
planning and development of plans and practices that 
unnecessarily bind producers to long-term contracts. For some 
conservation needs, the Committee understands that multi-year 
contracts may be needed to provide adequate conservation 
benefits; however, with the amendment to section 1240B allowing 
shorter term contracts, the Committee intends there should be 
more conservation and less planning.
    In reviewing the administration of EQIP, the Committee was 
frustrated in its attempts to determine whether small producers 
as well as certain types of producers, such as those growing 
fruits and vegetables and other specialty crops are able to 
utilize the Environmental Quality Incentives Program (EQIP). 
The Committee would hope that the Secretary would take 
additional measures to ensure that Congress and the public are 
able to fully analyze the participation in the EQIP as well as 
the other conservation programs to determine whether the 
programs are reaching all participants, knowing that a lack of 
funding has probably been the biggest hurdle to most 
landowners/operators' ability to participate.

Sec. 254. Evaluation of offers and payments

    Amends section 1240C to enable the Secretary to give a 
higher priority to assistance under EQIP to offers that aid 
producers in complying with federal and state environmental 
laws and maximize the beneficial use of animal manures or other 
similar soil amendments which improve soil health, tilth and 
water-holding capacity.
    It is the intention of the Committee that priority areas 
not be set and applied in such a manner as to exclude an 
otherwise worthy EQIP application simply because the producer 
is located outside the priority area boundary. Further, 
applications should not be rejected merely because the producer 
is seeking a higher percent cost-share. Indeed, many small or 
less successful producers with significant environmental 
problems do not have the financial resources to use a low 
percent cost-share. In this framework, the Secretary shall 
review applications on an individual basis giving full 
consideration to the merit of each proposal.
    To carry out the incentive payment portion of EQIP, the 
Secretary may award incentive payments to applications which 
contain multiple practices. However, nothing in this subsection 
shall be interpreted to mean that an EQIP application must 
contain a practice or multiple practices in each area of 
management in order for the producer to be eligible to 
participate in the program.
    In awarding incentive payments, the Committee expects the 
Secretary to give full consideration to providing incentive 
payments to producers who utilize commercial soil amendments 
that help to increase utilization of nutrients such as nitrogen 
and phosphorus. In addition, the Secretary should also ensure 
that third parties who utilize animal manure for land 
application are eligible for incentive payments.
    It is the intent of the Committee that the Secretary should 
further give heightened consideration in awarding EQIP 
contracts for land on which animal manure will be beneficially 
used as a fertilizer or soil amendment. Animal manure is a 
valuable source of nutrients, micronutrients and organic matter 
that improves soil fertility, tilth and water holding capacity. 
The beneficial application of animal manure can improve the 
productivity of farmland, improved pastures and rangelands. 
Increasing the organic matter in farmlands through beneficial 
use of animal manure can also decrease soil erosion.
    The Committee also would like the Secretary to address the 
ability of tenant farmers, especially in fruit and vegetable 
crop production areas, to utilize payments under EQIP.

Sec. 255. Duties of producers

    Strikes the superfluous requirement from section 1240D that 
a producer must agree not to conduct practices that would tend 
to defeat the purposes of EQIP.

Sec. 256. Environmental Quality Incentives Program Plan

    Amends section 1240E(a) to clarify that EQIP plans must 
provide or continue to provide increased environmental benefits 
to air, soil, water or related resources and not conform 
strictly to plans of operations which incorporate prescriptive 
practices of the Secretary.
    The Committee intends that producers should be developing 
the kinds of EQIP plans they believe address their conservation 
needs and challenges and not whole farm plans the Natural 
Resources Conservation Service under the past administration 
has shown a desire to write. The Committee intends for 
conservation to get on the ground with a minimal amount of plan 
development and paperwork that put burdens on personnel and 
create costly requirements for producers that outweigh the 
benefits received. The Committee believes the use of whole farm 
plans have their place when they are a means to an end, not the 
end itself.

Sec. 257. Duties of the Secretary

    Amends section 1240F in order to conform to an amendment to 
the Soil Conservation and Domestic Allotment Act that requires 
the Secretary to carry out conservation programs, including 
technical assistance, under that Act.

Sec. 258. Limitation on payments

    Amends section 1240G to increase the fiscal year payment 
limitation from $10,000 to $50,000 and the limitation on multi-
year contracts from $50,000 to $200,000. Strikes language 
requiring the Secretary to determine that a payment is 
consistent with the maximization of environmental benefits per 
dollar expended. Strikes language that restricted contract 
payments to the fiscal year following the fiscal year in which 
the producer entered into the contract.

Sec. 259. Groundwater conservation

    Replaces current law describing the temporary 
administration of EQIP enacted in 1996 with language that 
authorizes the Secretary to use $60 million of CCC funds during 
the period 2002 through 2011 to provide cost-share payments and 
low-interest loans to encourage groundwater conservation, 
including irrigation system improvements, and incentive 
payments for capping wells, reducing use of water for 
irrigation and switching from irrigation to dryland farming.

                 Subtitle G--Funding And Administration


Sec. 261. Reauthorization

    Reauthorizes the use of the Commodity Credit Corporation to 
fund the Conservation Reserve Program, the Wetlands Reserve 
Program and the Environmental Quality Incentives Program.

Sec. 262. Funding

    Provides $1.2 billion of funds from the CCC for EQIP for 
each of the fiscal years 2002 through 2011.

Sec. 263. Allocation for livestock production

    Amends section 1241(b)(2) to mandate that 50 percent of the 
EQIP funds be targeted to livestock producers. This 
reauthorization extends from 2002 through 2011.

Sec. 264. Use of other agencies

    Directs the Secretary to use the Farm Service Agency to 
carry out the Highly-Erodible Lands Conservation provisions 
(sodbuster), the Wetland Conservation provisions (swampbuster), 
the Conservation Reserve Program, the Grassland Reserve Program 
and the Environmental Quality Incentives Program.

Sec. 265. Administration and technical assistance

    Amends section 1243(b) to require that the CRP acreage 
restriction in counties is limited only to an action that would 
adversely affect the local economy. Replaces subsection (d) of 
section 1243 to provide new governing rules for the provision 
of technical assistance by third parties or the Natural 
Resources Conservation Service. Authorizes the Secretary to use 
not more than $100 million per year during fiscal years 2002 
through 2011 for technical assistance and caps the total 
technical assistance funds at $850 million for the 10-year 
period. The Secretary is required to establish a system for the 
certification of third parties to provide producers with 
technical assistance in carrying out conservation programs. 
Conforming amendments for sodbuster, CRP, WRP and EQIP provide 
similar technical assistance authorities.
    The Committee expects the Secretary, in carrying out 
section 265, to provide that the certification program shall be 
equivalent for parties providing technical assistance under the 
various conservation programs carried out by the Natural 
Resources Conservation Service and the Farm Service Agency. The 
Committee also expects the Secretary to honor the Memorandum of 
Agreement in force with the Independent Crop Consultants of 
America under which ``certified crop advisors'' are certified 
and approved to provide technical assistance under a range of 
USDA conservation programs to landowners/operators.

                       Subtitle H--Other Programs


Sec. 271. Wildlife Habitat Incentives Program

    Amends section 387(c) of the 1996 FAIR Act to provide $25 
million in each of the fiscal years 2002 through 2011 from the 
Commodity Credit Corporation to carry out the Wildlife Habitat 
Incentives Program.

Sec. 272. Farmland Protection Program

    Amends section 388 of the FAIR Act to provide $50 million 
in each of the fiscal years 2002 through 2011 from the CCC to 
carry out the Farmland Protection Program. Makes agricultural 
lands that contain historic or archeological resources eligible 
to participate.

Sec. 273. Resource Conservation and Development Program

    Amends section 1528 of the Agriculture and Food Act of 1981 
by: (1) making the authorization for Resource Conservation and 
Development Councils permanent, and (2) providing assistance to 
not more than 450 active designated areas.
    Recognizing the important role that the Resource 
Conservation and Development Councils are playing in providing 
assistance both to agricultural producers and rural America, it 
is the intent of this Committee to make these entities 
permanent.

Sec. 274. Grasslands Reserve Program

    Authorizes the Secretary acting through the Farm Service 
Agency to establish a two million acre grassland reserve 
program. One million acres shall be used for virgin (never 
cultivated) grassland and one million acres shall be used for 
restored grassland. Contracts may be 10, 15, or 20 years in 
length. Natural grass or shrubland shall be eligible for 
enrollment. Land that has been historically dominated by 
natural grass or shrubland and has the potential to serve as 
habitat for animal or plant populations of significant 
ecological value if the land is restored to natural grass or 
shrubland shall be eligible for enrollment.
     Sec. 1238A. Contracts and Agreements.--The owner 
of the land shall agree to comply with the terms of the 
contract and related restoration agreements. The contracts 
shall permit common grazing practices that are consistent with 
maintaining the viability of natural grass and shrub species. 
Haying, mowing, or haying for seed may be permitted except 
during the nesting season for birds in the local area which are 
in significant decline or are conserved pursuant to state or 
federal law. Construction of fire breaks and fences including 
posts shall also be permitted. Production of crops, fruit 
trees, vineyards or any other agricultural practice that would 
require breaking the soil surface is prohibited. The Secretary 
shall establish criteria to evaluate and rank applications for 
contracts. The Secretary shall consider support for native 
grass and shrubland, grazing operations, and plant and animal 
biodiversity when establishing criteria.
     Sec. 1238B. Duties of the Secretary.--The 
Secretary shall make annual payments to the owner in an amount 
not more than 75 percent of the grazing value of the land.
    The Secretary shall pay for 90 percent of the cost of 
restoration on virgin grasslands and 75 percent on restored 
grasslands. Owners are eligible for technical assistance 
provide by the Secretary.
    The Committee encourages the Secretary to implement the 
Grassland Reserve Program in an expeditious manner. The 
Subcommittee on Conservation, Credit, Rural Development and 
Research held three hearings on conservation. In these 
hearings, a great deal of interest was expressed in the 
development of a Grassland Reserve Program to encourage common 
grazing practices done in various regions of the country or for 
a particular type of livestock operation which may include 
rotational grazing.
    The Committee has heard from numerous interested parties 
regarding how payments could be made to producers in exchange 
for encouraging sound grazing practices. The program will also 
help to enhance wildlife habitat and prevent tracts of land 
from being subdivided for development. More importantly, the 
Committee believes that 10-, 15- and 20-year contracts will 
provide the best means of utilizing land for grazing. The 
Committee further believes that if the program is administered 
in a manner similar to the Conservation Reserve Program, 
producers will be able to adapt to the Grassland Reserve 
Program in a short period of time. While options for longer-
term contracts and easements were discussed, no formulas were 
presented to the Committee that could be adequately explained, 
scored for budget purposes or administered in all regions of 
the country.
    The Committee intends for the Grassland Reserve Program to 
aid and enhance the other conservation programs administered by 
USDA.

Sec. 275. Farmland Stewardship Program

    Amends Chapter 2 of Subtitle D of the Food Security Act of 
1985 by establishing a new Farmland Stewardship Program (FSP) 
to assist agricultural producers through conservation programs 
administered primarily by the Department of Agriculture.
    Those programs are the Wetlands Reserve Program (WRP), the 
Wildlife Habitat Incentives Program (WHIP), the Forest Land 
Enhancement Program (FLEP), the Farmland Protection Program and 
other conservation programs administered by other federal 
agencies or state and local governments that may want to 
cooperate in the FSP. Funding for the FSP will come from these 
programs and appropriated accounts.
    Local conservation districts, state or federal agencies or 
nongovernmental organizations may enter into farmland 
stewardship agreements with agricultural producers on behalf of 
the Secretary of Agriculture. Agreements may be made for the 
conservation of private lands such as cropland, pastureland, 
grazing lands, timberlands and other lands the Secretary may 
specify.
    Benefits that may be provided include conservation of soil 
and water, water quality protection, control of invasive or 
exotic species, wetland protection, wildlife habitat, 
preservation of prime farmland and other conservation purposes.
    The FSP also will require matching fund contributions by 
state, regional or local agencies and divisions of governments 
and private funding sources.
    The Secretary is authorized to use the Natural Resources 
Conservation Service to carry out FSP. The Secretary may use 
technical assistance made available in section 1243(d) to 
assist the owner or operator in carrying out agreements.
    Objectives of agreements with owners and operators will be 
to protect and maintain natural resources by implementing a 
conservation program or a series of programs together for 
conservation management through easements under programs and to 
expand conservation practices on property where such easements 
are not currently available.
    Agreements should address the conservation priorities 
established in states or localities in which the agricultural 
lands are located. To the extent practicable, FSP applications 
should be developed on a watershed basis.
    The Committee intends for the Secretary, to the maximum 
extent practicable, to administer the FSP and the agreements 
made with landowners, using federal programs for local needs, 
which are developed at the state and local level. The Secretary 
is encouraged to develop the procedures necessary for making 
certain landowners benefit from using parts of federal programs 
available for the FSP under this section. Agreements may 
include these programs as a single component or in combinations 
to address the resource needs identified in the FSP. To the 
extent feasible, the Secretary should look at individuals' 
applications as they interact within watersheds.
    The Secretary may administer the FSP using partnerships 
with federal, state or local agencies whose programs are part 
of the FSP. Local conservation district offices or agencies may 
be designated a contracting agency after complying with certain 
standards such as monitoring compliance with owners and 
operators.
    Owners and operators wanting to enter into an FSP agreement 
must submit an application outlining the management plan the 
owner or operator will carry out under the agreement.

Sec. 276. Small Watershed Rehabilitation Program

    Reauthorizes section 14(h) of the Watershed Protection and 
Flood Prevention Act, 16 U.S.C. 1012, with $15 million 
annually.

                   Subtitle I--Availability Of Funds


Sec. 281. Availability of funds appropriated pursuant to the Soil 
        Conservation and Domestic Allotment Act

    Amends section 6 of the Soil Conservation and Domestic 
Allotment Act to clarify that funds appropriated under such Act 
shall be used for technical assistance to owners or operators 
of land to achieve the objectives of any conservation program 
administered by the Secretary of Agriculture.
    The Committee has been concerned for some time about an 
interpretation of the Soil Conservation and Domestic Allotment 
Act that has restricted the use of Conservation Operations 
Account to provide conservation technical assistance by the 
Natural Resources Conservation Service (NRCS) for the 
Conservation Reserve Program and other conservation activities. 
In section 281, the Committee clarifies that all funds 
appropriated to the Secretary of Agriculture are available to 
implement all conservation programs and will be used by the 
Secretary to provide technical assistance as needed for the 
Conservation Reserve Program, the Wetlands Reserve Program, the 
Environmental Quality Incentives Program, Wildlife Habitat 
Incentives Program, the Farmland Protection Program, the 
Grasslands Reserve Program, and the Farmland Stewardship 
Program.
    The Committee is concerned that there is little accounting 
for NRCS salaries, expenses and program funds. CTA is NRCS's 
appropriated fund to pay personnel and operate its 
headquarters, regional, state and local offices. In short, CTA 
is a salaries and expense account.
    The Committee is extremely concerned about the control of 
CTA funds. A recent report of the General Accounting Office 
(GAO/RCED-00-83) pointed to a disconcerting finding: that NRCS 
accounts for its funds as they are planned and budgeted, not as 
they are actually worked in the field. The Committee has sought 
for a number of years to determine how the NRCS spends its 
appropriated funds and why the agency must use program funds 
the Congress intended for cost-share and incentive payments to 
landowners to pay NRCS personnel salaries and expenses.
    The Committee certainly understands the work of NRCS is 
critical to our conservation efforts under federal farm 
legislation and intends to work to find additional resources 
for the NRCS salaries and expense budget. Indeed, elsewhere in 
this title, the Committee has provided an additional $850 
million to aid the provision of technical assistance. However, 
the Committee intends in the amendment to the Soil Conservation 
and Domestic Allotment Act contained in section 281 of the bill 
to provide some fiscal reality to how NRCS budgets its 
activities and spends appropriated funds.

                          Subtitle J--Repeals


Sec. 291. Provisions of Food Security Act of 1985

    Repeals the Environmental Easement Program, the 
Conservation Farm Option, the Tree Planting Initiative, Base 
History Provision, and payments under section 1237D(c)(3) and 
section 1234(f)(3).
    Water shortage in the Klamath Basin.--The Klamath Basin 
Project delivers water to 220,000 acres of farmland and six 
national wildlife refuges in the Klamath Watershed. However, 
the current demands on water in the Klamath Basin are greater 
than the system can support. The over-allocation among the 
irrigated lands, tribal trust responsibilities, endangered 
species and the national wildlife refuges has resulted in 
harming all water users. It is the intent of the Committee to 
urge the Secretary to use his/her discretion in using all 
programs available, especially USDA conservation authorities, 
to enter into voluntary agreements with landowners who are 
willing to participate in the programs in this region.
    The Committee also urges the Secretary to work closely with 
the Secretaries of Interior and Commerce to help them ensure 
that future water allocation decisions provide for balance.
    High Plains Aquifer.--Recognizing the need for regional 
efforts to address groundwater management in the High Plains 
Aquifer, the Committee urges the Secretary to work with state 
water or conservation agencies and agricultural producers in 
the High Plains region to coordinate federal assistance with 
state programs and to encourage cooperation between states in 
implementing conservation incentives and water reduction 
practices.
    Invasive species control.--The Committee intends that 
producers attempting to control invasive species such as leafy 
spurge and musk thistle shall be eligible for EQIP contracts 
through its cost share and incentive provisions. Producers 
spend a great deal of time and money to prevent the spread of 
invasive species and should be encouraged to continue doing so.
    Paperwork reduction.--At its annual hearing on agency 
compliance with the Paperwork Reduction Act, the Committee on 
Government Reform received testimony that farmers are concerned 
about unnecessary and burdensome paperwork imposed by Federal 
agencies on them. For example, the Bureau of Reclamation 
requires farmers to submit a lengthy full report each year even 
if there are no operational changes from last year. Therefore, 
the Committee directs USDA to work with other Federal agencies 
and OMB to eliminate any duplicative and unnecessary paperwork 
imposed on farmers. In particular, the Committee expects USDA 
to ensure that Federal paperwork--both its own and that of 
other Federal agencies--has particular utility, as required by 
the Paperwork Reduction Act, and has current OMB approval. In 
addition, the Committee directs Federal agencies to allow 
farmers to merely report ``no change'' on each of the annual 
reporting requirements if there are no changes from the prior 
year's report to the Federal Government.

                            TITLE III--TRADE


Sec. 301. Market Access Program

    (a) Reauthorizes the Market Access Program (section 203 of 
the Agricultural Trade Act of 1978 (7 U.S.C. 5623)) through 
2011, and increases funding from $90,000,000 to $200,000,000.
    (b) Designates that Market Access Program funds may be used 
for activities to develop, maintain or expand foreign markets 
for leaf tobacco.

Sec. 302. Food for Progress

    (a) Reauthorizes Food for Progress (the Food Security Act 
of 1985 (7 U.S.C. 1736o)) through 2011.
    (b) Increases the limits on Commodity Credit Corporation 
funding for administrative costs from $10,000,000 to 
$12,000,000.
    (c) Excludes from the limitations on tonnage in Sec. 
1110(g) of Food for Progress those commodities furnished on a 
grant basis or on credit terms under title I of the 
Agricultural Trade Development Act of 1954.
    (d) Increases the limits on Commodity Credit Corporation 
funding for transportation costs related to distribution of 
commodities from $30,000,000 to $35,000,000.
    (e) Encourages the President to approve agreements that 
provide commodities to be made available for distribution or 
sale on a multiyear basis.
    (f) Adds a new provision that encourages the Secretary to 
finalize program agreements and requests before the beginning 
of the relevant fiscal year. Also requires Secretary to provide 
the House Committee on Agriculture and the Senate Committee on 
Agriculture, Nutrition and Forestry a list of approved 
programs, countries and commodities, and the total amounts of 
funds approved for transportation and administrative costs 
related to Food for Progress by November 1 of the relevant 
fiscal year.

Sec. 303. Export Enhancement Act

    Reauthorizes the Export Enhancement Act (section 301(e) of 
the Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)) through 
2011 at the current funding level of $478,000,000.

Sec. 304. Foreign Market Development Cooperator Program

    (a) Reauthorizes the Foreign Market Development Cooperator 
Program (section 703 of the Agricultural Trade Act of 1978) 
through 2011 and authorizes $35,000,000 from the Commodity 
Credit Corporation for each of fiscal years 2002 through 2011 
to carry out the program.
    (b) Directs the Secretary to carry out the Foreign Market 
Development Cooperator Program with a significant emphasis on 
the importance of exporting value-added agricultural products 
to emerging markets.
    (c) Requires the Secretary to report to Congress on the 
funding and success of the Foreign Market Development 
Cooperator Program.
    The Committee emphasizes that the amendment to section 
702(a) of the Agricultural Trade Act of 1978 should not be 
interpreted to exclude any eligible trade organization from 
carrying out programs to maintain and develop foreign markets 
for any United States agricultural commodity or product. In 
particular, the Committee intends that the Secretary continue 
to work with cooperators to maintain and develop markets for 
all commodities in all their forms, under this program.

Sec. 305. Export Credit Guarantee Program

    (a) Reauthorizes the Export Credit Guarantee Program (sec. 
211(b)(1) of the Agricultural Trade Act of 1978) through 2011.
    (b) Continues for fiscal years 2002 through 2011 the 
current requirement that not less than 35 percent of the export 
credit guarantees issued be used to promote the export of 
processed or high-value agricultural products.

Sec. 306. Food for Peace (P.L. 480)

    Reauthorizes Food for Peace and the International Food 
Relief Partnership Act through 2011.

Sec. 307. Emerging markets

    Reauthorizes section 1542 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 through 2011 to promote 
agricultural exports to emerging markets.

Sec. 308. Bill Emerson Humanitarian Trust

    Reauthorizes the Bill Emerson Humanitarian Trust Act 
through 2011.

Sec. 309. Technical assistance for specialty crops

    (a) Establishes an export assistance program to address 
barriers to the export of United States specialty crops.
    (b) Provides direct assistance through public and private 
sector projects and technical assistance to remove, resolve, 
and/or mitigate SPS and related barriers to trade.
    (c) Gives priority to time sensitive and market access 
projects based on trade effect and trade impact.
    (d) Authorizes $3,000,000 in funding from the Commodity 
Credit Corporation.

                          TITLE IV--NUTRITION


                     Subtitle A--Nutrition Programs


Sec. 401. Simplified definition of income

    Allows for the exclusion from household income of deferred 
educational loans, grants and veteran's educational benefits 
that are excluded under Medicaid, state complementary payments 
made under the former Aid to Families with Dependent Children 
Program, and any income not considered under the Temporary 
Assistance to Needy Families Program (TANF) and Medicaid. It 
would not include items that are included in the definition of 
income but part of which are disregarded for the purposes of 
TANF and Medicaid by state agencies.

Sec. 402. Standard deduction

    Increases the standard deduction under the food stamp 
program, which will be calculated according to family size.

Sec. 403. Transitional food stamps for families moving from welfare

    Provides, at state option, for 6 months of transitional 
food stamp benefits for families leaving TANF.

Sec. 404. Quality control systems

    Reforms the food stamp quality control program to require 
States to use the 95% statistical probability in calculating 
State error rates. Provides that in determining sanctions 
against States for high error rates, sanctions are delayed 
until the third consecutive year in which a State's error rate 
exceeds the national average error rate by more than 1%. 
Provides for bonus payments to certain States for excellent 
administration of certain food stamp rules through fiscal year 
2007.

Sec. 405. Simplified application and eligibility requirements

    Requires the Secretary to provide grants to states to 
develop and implement programs that improve the food stamp 
application and eligibility determination process.

Sec. 406. Authorization of appropriations

    Reauthorizes the food stamp employment and training 
program, the cash payment project for elderly and disabled food 
stamp participants, food stamp outreach demonstration projects, 
the Food Stamp Act, the food assistance block grant for Puerto 
Rico, and the nutrition assistance program for American Samoa. 
In addition, this section reauthorizes and expands community 
food projects and The Emergency Food Assistance Program.

                   Subtitle B--Commodity Distribution


Sec. 441. Distribution of surplus commodities to special nutrition 
        projects

    Section 1114 (a) of the Agriculture and Food Act of 1981 is 
amended by striking ``2002'' and inserting ``2011.'' Effective 
through 2011, whenever a commodity is made available without 
charge or credit under any nutrition program administered by 
the Secretary, the Secretary shall encourage consumption of 
such commodity through agreements with private companies under 
which the commodity is reprocessed into end-food products for 
use by eligible recipient agencies.

Sec. 442. Commodity distribution program

    Reauthorizes through 2011 the authority of the Secretary to 
purchase and distribute sufficient agricultural commodities to 
maintain the traditional levels of assistance for food 
assistance programs.

Sec. 443. Emergency food assistance

    Reauthorizes the Emergency Food Assistance Program (TEFAP) 
through 2011.

                  Subtitle C--Miscellaneous Provisions


Sec. 461. Hunger Fellowships Program

    (a) Congressional Hunger Fellows Act; describes the late 
Representatives Bill Emerson and Mickey Leland, their 
friendship and their commitment to ending hunger.
    (b) Establishes an independent agency of the Legislative 
Branch of the U.S. government, the Congressional Hunger Fellows 
Program, as a living memorial for Emerson and Leland.
    (c) Creates a board of trustees to supervise and direct the 
Program.
    (d) Defines purposes as: encouraging future leaders to 
pursue careers in humanitarian service, recognizing the needs 
of the hungry, and providing assistance and compassion for 
those in need; increasing awareness of the importance of public 
service; providing training and development opportunities for 
these leaders. Authorizes the creation of fellowships to carry 
out the above purposes.
    (e) Establishes a Congressional Hunger Fellows Trust Fund 
in the Treasury, managed by the Secretary of the Treasury and 
invested in interest bearing obligations of the United States 
that shall provide funds from the interest to run the program.
    (f) Allows the board to expend funds to carry out the 
program from the interest of the fund, not the principle. 
Provides for audits by the Comptroller General of GAO and a 
subsequent report to Congress.
    (g) Allows the board to select an executive director to 
administer the program. The program may accept donations, hire 
temporary consultants and enter into contracts as necessary.
    (h) Requires the board to submit an annual report to 
Congress that details the evaluations of the program and funds 
raised and expended.
    (i) Authorizes $18,000,000 to be appropriated to fund the 
program.

Sec. 462. General effective date

    Designates that the amendments made by in this title shall 
take effect on October 1, 2001, unless otherwise specified.

                            TITLE V--CREDIT


Sec. 501. Eligibility of limited liability companies for farm ownership 
        loans, farm operating loans, and emergency loans

    Amends sections of the Consolidated Farm and Rural 
Development Act (ConAct) that authorize farm real estate, 
operating and emergency loans by including limited liability 
companies as eligible entities to apply for these loans.

Sec. 502. Suspension of effectiveness of certain provision

    Provides that Sec. 319 of the ConAct dealing with the 
graduation of borrowers with Farm Service Agency loans to 
commercial sources of credit will have no effect through 
December 31, 2006. Current law provides a moratorium on these 
loans through December 31, 2002.

Sec. 503. Administration of certified lenders and preferred certified 
        lenders programs

    Amends Sec. 331(b) of the ConAct to authorize the Secretary 
of Agriculture to administer the certified and preferred lender 
guaranteed loan programs through central offices in states or 
multi-state areas.

Sec. 504. Simplified loan guarantee application available for loans of 
        greater amounts

    Amends Sec. 333A(g)(1) of the ConAct to increase the loan 
amount of the guaranteed program using a simplified short form 
to $150,000.

Sec. 505. Elimination of requirement that secretary require county 
        committees to certify in writing that certain loan reviews have 
        been conducted

    Amends Sec. 333 of the ConAct to remove the requirement 
that county committees must certify in writing annually that 
farmer program borrowers' business operations and credit 
histories have been reviewed and the borrowers continue to be 
eligible for the loan program.

Sec. 506. Authority to reduce percentage of loan guaranteed if borrower 
        income is insufficient to service debt

    Amends Sec. 339 of the ConAct to authorize the Secretary to 
guarantee less than 80 percent of farm program loans even 
though the borrower does not show a 100 percent cash flow in 
his farm plan.

Sec. 507. Timing of loan assessments

    Technical amendment to Sec. 360(a) of the ConAct that 
conforms to a provision of the 1994 USDA reauthorization act 
that eliminated a requirement for the local county committee to 
approve a borrower's eligibility for farmer program loans.

Sec. 508. Making and servicing of loans by personnel of state, county 
        or area committees

    Adds a new section to Subtitle D of the ConAct to require 
the Secretary to use Farm Service Agency county office 
employees to make and service farmer program loans if the 
personnel are trained to do so. This authority overrides the 
90-day finality rule of FSA county office employees in Sec. 
281(a)(1) of the USDA reorganization act.

Sec. 509. Eligibility of employees of state, county, or area committee 
        for loans and loan guarantees

    Adds a new section to Subtitle D of the ConAct to make 
eligible Farm Service Agency local county office employees and 
USDA employees for farmer program loans so long as a local 
county office other than the applicant's home office approves 
the loan application.

Sec. 510. Emergency loans in response to an economic emergency 
        resulting from sharply increasing energy costs

    (1) Amends Sec. 323 to include high energy costs and crop 
and livestock quarantines as an emergency for which disaster 
loans may be made.
    (2) Financial assistance may be made available when energy 
costs for any three-month period is at least 50 percent greater 
than the average of the preceding five years and the 
applicant's income loss was incurred to prevent livestock 
mortality, degradation of perishable commodities or damage to 
field crops.
    (3) The amount of any loan under the energy emergency 
authority may not exceed $200,000. For crop or livestock 
quarantines, the limit remains at $500,000.

Sec. 511. Extension of authority to contract for servicing of farmer 
        program loans

    Reauthorizes Sec. 331(d) to allow the Secretary to allow 
qualified private lenders to service loans under the ConAct.

Sec. 512. Authorization for loans

    Reauthorizes the farmer loan programs at such sums as may 
be necessary.

Sec. 513. Reservation of funds for direct operating loans for beginning 
        farmers and ranchers

    Reauthorizes the reservation of beginning farmer and 
ranchers loan amounts through 2011.

Sec. 514. Extension of interest rate reduction program

    Reauthorizes the interest rate buy-down program for farmer 
program loan guarantees through 2011.

Sec. 515. Increase in duration of loans under Down Payment Loan Program

    Amends the beginning farmer and rancher down payment loan 
program by increasing loan repayment period to 15 years.

Sec. 516. Horse breeder loans

    Requires the Secretary to make loans to eligible horse 
breeders who have suffered foal losses resulting from mare 
reproductive loss syndrome.
    Breeders must have suffered a 30 percent loss in healthy 
foals in mares owned or boarded by the breeder and the breeder 
must not be able to obtain sufficient credit elsewhere.
    Loans may be made for a term not to exceed 15 years at 
interest rates charged under the emergency disaster loan 
program operated by the Secretary. A loan or loans may not 
exceed $500,000.
    The authority established under this section terminates 
September 30, 2003.

Sec. 517. Sunset of direct loan programs under the Consolidated Farm 
        and Rural Development Act

    Five years after the enactment of this section the 
Secretary may not make a farm real estate or operating loan to 
farmers or ranchers except for youth loans and loans to 
beginning farmers and ranchers or members of socially-
disadvantaged groups.
    The Secretary retains authority to service loans made prior 
to the beginning of the sunset.
    The Secretary is required to conduct two studies during the 
five-year period following enactment. The first study will 
begin one year after enactment and must be finished within one 
year. The second study will begin three years after enactment 
and must be finished within one year. The studies will examine, 
among other things, the number, average principal amount, and 
delinquency and default rates of loans made and guaranteed 
during the periods covered by the studies.
    Each study must be submitted to the Congress six months 
after completion and must evaluate the USDA's lending 
activities, including an analysis of the effectiveness of loan 
programs in providing the credit needs of agricultural 
producers in an efficient and fiscally responsible manner.

Sec. 518. Definition of debt forgiveness

    Amends Sec. 343 of the ConAct to provide that the term debt 
forgiveness does not include consolidation, rescheduling, 
reamortization, or deferral of a loan nor any loan write-down 
provided as a part of a resolution of a discrimination 
complaint against the Secretary.
    It has come to the Committee's attention that borrowers are 
facing several situations that are out of their control and may 
have a tremendous impact upon their ability to meet their loan 
obligations. Among these are recurrent natural disasters that 
have been experienced in many areas as well as a catastrophic 
illness or medical condition affecting the borrower or an 
immediate family member. The Committee expects the Secretary to 
develop criteria using all of the authorities contained in the 
Consolidated Farm and Rural Development Act to address these 
two situations and afford remedies to assist those borrowers 
who are unable to repay their loan obligations.

Sec. 519. Loan eligibility for borrowers with prior debt forgiveness

    Amends Sec. 373 of the ConAct to authorize the Secretary to 
make loans to borrowers who have not received debt forgiveness 
on loans or loan guarantees more than two times and to 
guarantee loans to borrowers who have not received debt 
forgiveness on loans or loan guarantees more than three times.

Sec. 520. Allocation of certain funds for socially disadvantaged 
        farmers and ranchers

    Amends the ConAct to authorize the Secretary to use funds 
allocated for socially-disadvantaged farmers and ranchers 
within a state to be used in other states where there are 
pending, approved applications for socially-disadvantaged 
farmers and ranchers. Any unused funds within a state may be 
reallocated to other applicants in that state.

Sec. 521. Horses considered to be livestock under the Consolidated Farm 
        and Rural Development Act

    Amends Sec. 343 of the ConAct to include horses within the 
meaning of livestock.

                      TITLE VI--RURAL DEVELOPMENT


Sec. 601. Funding for rural local television broadcast signal loan 
        guarantees

    Amends the Launching Our Communities' Access to Local 
Television Act of 2000 to provide $200 million for loan 
guarantees for fiscal years 2002-2006 without fiscal year 
limitation.

Sec. 602. Expanded eligibility for value-added agricultural products 
        market development grants

    Amends the Agricultural Risk Protection Act of 2000 to 
allow $50 million to be used for value-added grants for each of 
the fiscal years 2002-2011. This section is designed to 
increase the participation in the Value-Added Agricultural 
Products Market Development Grants by allowing broader 
standards of eligibility for this specific grant category only 
so that public bodies and trade association can compete along 
with non-profit institutions and universities for grants 
designed to develop value-added products for foreign markets. 
Extends the current program with increased mandatory spending.
    The Committee encourages the Secretary to use value-added 
agricultural products market development grants to assist in 
the development of agricultural-based renewable energy sources.

Sec. 603. Agriculture Innovation Center Demonstration Program

    The Secretary shall make grants to establish centers to 
provide producers with technical assistance, marketing, and 
development assistance for value-added agricultural businesses. 
The Secretary shall use not less than $5 million for fiscal 
year 2002 and not less than $10 million for fiscal years 2003 
and 2004. This money is part of the $50 million being used for 
Section 602 activities. The Secretary shall use $300,000 of the 
funds made available each year to support research at a 
university on the effects of value-added projects on producers 
and commodity markets. The Secretary shall submit a report to 
the House and Senate Agriculture Committees on the 
effectiveness of this demonstration program.

Sec. 604. Funding of Community Water Assistance Grant Program

    Directs the Secretary to use $30 million for each of the 
fiscal years 2002-2011 to fund drinking water assistance 
grants. Extends current program and makes it mandatory 
spending.
    The Committee intends that the amendments made by Section 
604 are to address the ongoing needs of rural communities that 
may have difficulty providing safe and adequate quantities of 
drinking water to their residents. However, these amendments to 
Sec. 306A of the Consolidate Farm and Rural Development Act 
(ConAct) in no way prevent the Secretary from assisting 
communities under this section in the event of dire 
emergencies.

Sec. 605. Loan guarantees for the financing of the purchase of 
        renewable energy systems

    The Secretary may provide to persons or individuals a loan 
guarantee under Section 4 of the Rural Electrification Act to 
finance the purchase of a renewable energy system, including a 
wind energy system and anaerobic digesters for the purpose of 
energy generation.

Sec. 606. Loans and loan guarantees for renewable energy systems

    Amends Section 310B of the ConAct by inserting ``and other 
renewable energy systems including wind energy systems and 
anaerobic digesters for the purpose of energy generation''.
    The Committee recognizes the need for developing 
technologies to convert renewable farm and forestry resources 
into affordable electricity, fuel chemicals, and other 
materials. The Committee encourages the Secretary, through the 
Rural Business-Cooperative Service, to provide Business and 
Industry loans or loan guarantees for biomass conversion into 
bio-based industrial products.

Sections 607, 608, 609, 610, 611

    Reauthorizes current programs through 2011. Those programs 
are Rural Business Opportunity Grants (Sec. 607), Grants for 
Water Systems for Rural and Native Villages in Alaska (Sec. 
608), Rural Cooperative Development Grants (Sec. 609), National 
Reserve Account for Rural Development Trust Fund (Sec. 610), 
and the Rural Venture Capital Demonstration Program (Sec. 611).

Sec. 612. Increase in limit on certain loans for rural development

    Increases the loan limit of the Business and Industry 
lending program authorized by Sec. 310B of the ConAct from $25 
million to $100 million.
    The Committee notes that it has been some time since the 
loan limit for the Business and Industry loan program has been 
amended. Over those years, the needs for debt capital in small 
cities and rural communities have expanded, and inflation has 
eroded the purchasing power of the current loan limit of $25 
million. While the Committee agreed to raise the limit on 
single loans to $100 million, the Committee cautions the 
Secretary to use this new authority judiciously. The Committee 
is concerned that the expertise within the Department to 
analyze and assess the underwriting standards of lenders that 
may wish to seek a guarantee of a $100 million loan may be 
limited. In addition, the Committee urges the Secretary to 
establish guidelines for approving large loan guarantees so 
that they will have a positive, maximum benefit to rural 
residents and eligible communities by creating employment and 
other economic opportunities.

Sec. 613. Pilot program for rural development strategic plans and 
        implementation

    (a) Development: The Secretary shall select 10 states to 
implement rural development strategic plans. This is a new 
program that provides mandatory spending of $2 million in 
grants for each fiscal year 2002-2011.
    (b) Strategic Planning Implementation: Provides mandatory 
spending of $13 million for grants to implement the plans for 
each fiscal year 2002-2011.
    The Strategic Planning Initiative and Implementation 
provision authorizes a matching grant pilot program of $2 
million per year to entities for regional, collaborative rural 
development strategic plans in 10 states. Community-based and 
grassroots organizations' support and participation are 
critically important to successful planning. The matching grant 
requirement will help ensure that there is a commitment at the 
local level for the planning process. The provision allows the 
Secretary to require up to a 50% matching grant. This 
requirement is not intended to serve as a barrier to limited 
resource communities in fully participating in the program. The 
Secretary should require matching grants commensurate with a 
community's ability to pay, even to the point of only requiring 
a nominal amount in order to ensure the broadest participation.
    In developing a regional development plan it is imperative 
that local specialists representing many varied areas of 
expertise be included. The Secretary should give priority to 
grant applicants whose proposals include the broadest 
coalitions of regional and local organizations--both public and 
private. Entities eligible for matching grants include but are 
not limited to Councils of Government, Area Development 
Districts, Economic Development Districts, Local Development 
Districts, Planning and Development Districts, Regional 
Planning Commissions and Regional Councils of Government.
    The Secretary of Agriculture, in selecting the 10 States to 
implement this program, should give priority to states that 
have high rural populations or high percentages of rural 
population. However, the Secretary may consider other 
appropriate factors as necessary to ensure full participation 
by other States with significant rural areas not meeting these 
population requirements.
    The Committee bill provides the Secretary with full funding 
of $13 million per year and authority to implement the regional 
plans in the 10 selected States. The Committee expects and 
anticipates that the program will provide a unique opportunity 
for Congress to assess the strengths and weaknesses of the full 
panoply of Federal rural development programs used in concert 
with one another.
    The Secretary is authorized to transfer money from the 
planning activities to the implementation activities and vice 
versa in order to ensure maximum use of the funds provided.
    Rural communities across the United States continue to 
decline due to limited resources, a lack of leadership and the 
exodus of youth to jobs in urban areas. The remarkable 
diversity of rural America dictates that for rural development 
to be effective, it must be locally based. In setting goals, 
priorities and making decisions, a regional approach is 
essential. Many rural communities have assets that could be 
identified by strategic planning to produce the potential for 
future economic viability. Local officials and the private 
sector can use this program for such identification to 
determine the best approach to development for their region. 
The Strategic Planning Initiative and Implementation program 
will place a high priority on providing regional community 
based planning coupled with the resources to put the plans into 
action.

Sec. 614. 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 income

    Amends the water and wastewater authorities under the 
ConAct to authorize the Secretary to make grants and loans to 
provide individual residential water wells.

Sec. 615. National Rural Development Partnership

    Adds a new section to Subtitle E of the ConAct to establish 
a National Rural Development Partnership composed of the 
Coordinating Committee and the state rural development 
councils.
    This Section formally authorizes the National Rural 
Development Partnership (NRDP or ``Partnership'') and its two 
component units, State rural development councils (SRDCs) and 
the National Rural Development Coordinating Committee (NRDCC). 
SRDCs were established to promote interagency coordination 
among federal departments and agencies that administer policies 
and programs that impact rural areas and to promote 
intergovernmental collaboration among federal agencies and 
state, local, and tribal governments and the private and non-
profit sectors. Among the activities the Committee believes are 
appropriate for SRDCs are: gathering information on the 
condition of rural areas in the states they serve; reviewing 
and commenting on all policies, regulations, and proposed 
legislation that affect or would affect rural areas; monitoring 
and reporting on policies and programs that address, and fail 
to address, the needs of rural areas; and facilitating the 
formulation of local needs assessments for rural areas and 
participating in the development of criteria for the 
distribution of Federal funds to rural areas, and to the extent 
the criteria use USDA funds, the USDA rural director in each 
state should be directly involved in the development of those 
criteria. This Section also re-designates the existing National 
Rural Development Council as the NRDCC. The NRDCC, which may 
include representatives from federal agencies and national 
associations, is expected to support the work of the SRDCs and 
to promote interagency and intergovernmental collaboration at 
the national level.

Sec. 616. Eligibility of rural empowerment zones, rural enterprise 
        communities, and champion communities for direct and guaranteed 
        loans for essential community facilities

    Amends Sec. 306(a) of the ConAct to authorize the Secretary 
to make or insure loans to communities designated as rural 
empowerment zones, rural enterprise communities or as champion 
communities to install or improve essential community 
facilities.

Sec. 617. Grants to train farm workers in new technologies and to train 
        farm workers in specialized skills necessary for higher value 
        crops

    The Secretary may make grants to an entity to train farm 
workers to use new technologies and develop specialized skills 
for agricultural development. Authorizes no more than $10 
million be appropriated to the Secretary for fiscal years 2002-
2011 to make such grants.

Sec. 618. Loan guarantees for the purchase of stock in a farmer 
        cooperative seeking to modernize or expand

    Amends Sec. 310B of the ConAct to provide loan guarantees 
for individual farmers to purchase capital stock of a farmer 
cooperative established for an agricultural purpose.

Sec. 619. Intangible assets and subordinated unsecured debt required to 
        be considered in determining eligibility of farmer-owned 
        cooperative for business and industry guaranteed loan

    Amends Sec. 310B of the ConAct for this purpose.
    In considering applications for a loan guarantee from an 
agricultural cooperative, the Rural Business-Cooperative 
Service may consider the value of intangible assets such as 
trademarks, patents, licenses, and brands subject to appraisal, 
when evaluating the eligibility of an agricultural cooperative 
for loan guarantees. The same consideration may be given to 
unsecured subordinated debt, which may be viewed as the 
equivalent of equity in the cooperative. Both intangible assets 
and unsecured subordinated debt may be considered in 
determining the viability of a cooperative's balance sheet.

Sec. 620. Ban on limiting eligibility of farmer cooperative for 
        business and industry loan guarantee based on population of 
        area in which cooperative is located

    Amends the ConAct so that in determining whether a 
cooperative organization owned by farmers is eligible for a 
guaranteed loan, the Secretary shall not apply any lending 
restrictions based on population to the area in which the 
cooperative is located.

                TITLE VII--RESEARCH AND RELATED MATTERS


                         Subtitle A--Extensions

    Sec. 700. Market Expansion Research (7 U.S.C. 
1632(b)(3)(c)) is extended through 2011.
    Sec. 701. National Rural Information Center Clearing-House 
(7 U.S.C.3125b(c)) is extended through 2011.
    Sec. 702. Grants and Fellowships for Food and Agricultural 
Sciences Education (7 U.S.C. 3152) is extended through 2011.
    Sec. 703. Policy research centers (7 U.S.C. 3155(d)) is 
extended through 2011.
    Sec. 704. Human nutrition intervention and health promotion 
research program (7 U.S.C. 3174(d)) is extended through 2011.
    Sec. 705. Pilot research program to combine medical and 
agricultural research (7 U.S.C. 3174a(d)) is extended through 
2011.
    Sec. 706. Nutrition education program (7 U.S.C. 3175(c)(3)) 
is extended through 2011.
    Sec. 707. Continuing Animal Health and Disease Research 
Programs (7 U.S.C. 3195) is extended through 2011.
    Sec. 708. Appropriations for research on national or 
regional problems (7 U.S.C. 3196(a)) is extended through 2011.
    Sec. 709. Grants to upgrade agricultural and food sciences 
facilities at 1890 land-grant colleges, including Tuskegee 
University (7 U.S.C. 3222b(b)) is extended through 2011.
    Sec. 710. National Research and Training Centennial Centers 
at 1890 Land-Grant Institutions (7 U.S.C. 3222c) is extended 
through 2011.
    Sec. 711. Hispanic Serving Institutions (7 U.S.C. 1632(c) 
is extended through 2011.
    Sec. 712. Competitive Grants for International Agricultural 
Science and Education Programs (7 U.S.C. 3292b) is extended 
through 2011.
    Sec. 713. University Research (7 U.S.C. 1632(a) and (b)) is 
extended through 2011.
    Sec. 714. Extension Service (7 U.S.C. 3312) is extended 
through 2011.
    Sec. 715. Supplemental and Alternative Crops (7 U.S.C. 
3319d(a)) is extended through 2011.
    Sec. 716. Aquaculture Research Facilities (7 U.S.C. 3324) 
is extended through 2011.
    Sec. 717. Rangeland Research (7 U.S.C. 3336(a)) is extended 
through 2011.
    Sec. 718. National Genetics Resources Program (7 U.S.C. 
5844) is extended through 2011.
    Sec. 719. High-priority research and extension initiatives 
(7 U.S.C. 5925(h)) is extended through 2011.
    Sec. 720. Nutrient Management Research and Extension 
Initiative (7 U.S.C. 5925a(g)) is extended through 2011.
    Sec. 721. Agriculture Telecommunications Program (7 U.S.C. 
5926(h)) is extended through 2011.
    Sec. 722. Alternative Agricultural research and 
commercialization revolving fund authorization of 
appropriations (7 U.S.C. 5908(g)(1) and capitalization (7 
U.S.C. 5908(g)(2)) is extended through 2011.
    Sec. 723. Assistive technology program for farmers with 
disabilities (7 U.S.C. 5933(c)(1)) is extended through 2011.
    Sec. 724. Partnerships for high-value agricultural product 
quality research (7 U.S.C. 7622(g)) is extended through 2011.
    Sec. 725. Biobased products pilot project (7 U.S.C. 
7624(c)(2) and authorization of appropriations (7 U.S.C. 
7624(h) is extended through 2011.
    Sec. 726. Integrated research, education, and extension 
competitive grants program(7 U.S.C. 7626(c)) is extended 
through 2011.
    Sec. 727. Institutional capacity building grants (7 U.S.C. 
301 note) is extended through 2011.
    Sec. 728. 1994 Institution research grants (7 U.S.C. 301 
note) is extended through 2011.
    Sec. 729. Endowment for 1994 Institutions (7 U.S.C. 301 
note) is extended through 2011.
    Sec. 730. Precision agriculture (7 U.S.C. 7623(i)) is 
extended through 2011.
    Sec. 731. Thomas Jefferson Initiative for crop diversity (7 
U.S.C. 7625(h)) is extended through 2011.
    Sec. 732. Support for research regarding diseases of wheat, 
triticale, and barley caused by Fusarium graminearum or by 
Tilletitia Indica (7 U.S.C. 7628(c)) is extended through 2011.
    Sec. 733. Office of Pest Management Policy (7 U.S.C. 7653) 
is extended through 2011.
    Sec. 734. National Agricultural Research, Extension, 
Education and Economics Advisory Board (7 U.S.C. 3123(h)) is 
extended through 2011.
    Sec. 735. Grants for research on production and marketing 
of alcohols and industrial hydrocarbons from agricultural 
commodities and forest products (7 U.S.C. 3154(d)) is extended 
through 2011.
    Sec. 736. Biomass research and development (7 U.S.C. 7624 
note) is extended through 2011.
    Sec. 737. Agricultural Experiment Stations Research 
Facilities (7 U.S.C. 390d) is extended through 2011.
    Sec. 738. Competitive, Special, and Facilities Research 
Grants, National Research Initiative (7 U.S.C. 450(i)) is 
extended through 2011.
    Sec. 739. Federal agricultural research facilities 
authorization of appropriations (P.L. 99-198; 99 Stat. 1556) is 
extended through 2011.

                       Subtitle B--Modifications

    Sec. 741. Equity in Educational Land-Grant Status Act of 
1994 (7 U.S.C. 301 note) is amended in section 534(a)(1)(A) by 
increasing the authorization of appropriations, modifying the 
definition by which full-time equivalent Indian Student Count 
is calculated, and updating the names of institutions.
    Sec. 742. The National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 is amended to make 1994 Land 
Grant Institutions eligible to compete for grants under section 
1404(4) (7 U.S.C. 3103(4)).
    Sec. 743. The Initiative for Future Food and Agricultural 
Systems (7 U.S.C. 7621(c)(2)), Precision Agriculture (7 U.S.C. 
7623), the Thomas Jefferson Initiative for Crop Diversity (7 
U.S.C. 7625(a)), and the Coordinated Program of Research, 
Extension, and Education to Improve Viability of Small and 
Medium Size Dairy, Livestock, and Poultry Operations (7 U.S.C. 
7627) are amended to include energy efficiency and renewable 
resources in priority research areas. Support for Research 
Regarding Diseases of Wheat, Triticale, and Barley caused by 
Fusarium graminearum or by Tilletitia Indica (7 U.S.C. 7628(a)) 
is amended to include research related to Karnal bunt 
identification and control. A new section is added to the 
Agricultural Research, Extension, and Education Reform Act of 
1998 (7 U.S.C. 7621 et seq.) to authorize a Program to Control 
Johne's Disease. The Committee intends that this research 
program shall be limited to evaluation of efforts to control 
bovine Johne's disease. The Committee does not intend that this 
provision should be interpreted to authorize the Secretary to 
purchase cattle for purposes of disease eradication.
    Sec. 744. The Agricultural Genome Initiative (7 U.S.C. 
5924(b)) is amended to include plant pathogens as an eligible 
research priority. The High-Priority Research and Extension 
Initiative (7 U.S.C. 5925(e)) is amended to include several new 
high-priority research and extension projects. The Committee 
recognizes the importance and quality of work being done by the 
Texas Institute for Applied Environmental Research (TIAER) in 
the area of environment and private lands research and 
extension. The Committee further recognizes that TIAER is an 
example of the type of institution intended to receive grants 
under the High Priority Research and Extension Initiatives for 
Environment and Private Lands Research and Extension.
    Sec. 745. The National Agricultural Research, Extension, 
Education and Economics Advisory Board (7 U.S.C. 3123) is 
amended to add a non Land-grant college or university 
representative to the board, and provide authority for the 
board to consult with Congress and non research agencies of the 
U.S. Department of Agriculture. Grants for Research on 
Production and Marketing of Alcohols and Industrial 
Hydrocarbons from Agricultural Commodities and Forest Products 
(7 U.S.C. 3154) is amended to include industrial oilseed crops. 
The National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 (7 U.S.C. 3291(a)) is amended to authorize 
an internship program in Foreign Agriculture Service overseas 
offices.
    Sec. 746. Biomass Research and Development (7 U.S.C. 7624 
note) is amended to include biodiesel in the Congressional 
Statement of Findings, to include animal by-products in the 
definition of ``Biomass'', and to add a livestock trade 
association representative to the Biomass Research and 
Development Technical Advisory Committee.
    Sec. 747. Biotechnology Risk Assessment Research (7 U.S.C. 
5921) is amended to ensure that risk assessment projects 
carried out under this program compare the risks associated 
with products of agricultural biotechnology to those associated 
with traditionally bred plants and animals.
    The Committee believes that environmental assessment 
research related to biotechnology plants and animals should 
include benefits that accrue to the environment as well as any 
potential impact on the environment.
    The Committee intends that the types of research authorized 
under this section shall evaluate the relative risks of 
biotechnology-derived plants and animals. Research projects 
under this section shall include comparative analysis between 
biotechnology systems and other productions system such as 
organic, high intensity and low input farming. In addition, 
biotechnology derived plants and animals should be compared 
relative to other production system's impact on the environment 
(i.e. alternative pesticide, herbicide, irrigation or 
management practices).
    The Committee intends that biotechnology risk assessment 
research shall be science-based and shall be carried out 
according to the principles laid out in the current regulatory 
system for evaluating the human, animal and environmental 
safety standards for approving biotech plants and foods.
    Any funds, either appropriated or assessed, to carry out 
this section and any implementation plan developed by the 
Secretary to achieve the objectives of this section shall be 
expended after consultation with the National Agricultural 
Research, Extension, Education, and Economics Advisory Board.
    Currently the Secretary assesses funds on six categories of 
research that have been defined as biotechnology research. 
However, all funds for risk assessment purposes continue to 
focus on a single category dealing with recombinant DNA risk 
assessment research. The Committee intends that the Secretary 
shall ensure that all assessments are equally applicable to all 
areas defined as biotechnology by the Secretary to ensure that 
all potential benefit and risk of this field of science is 
being evaluated.
    Sec. 748. The National Competitive Grants Research 
Initiative (7 U.S.C. 450(i)) is amended to provide for 
consultation on development of program priorities with the 
National Agriculture Research, Extension, Education, and 
Economics Advisory Board.
    Sec. 749. The National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3222d) is amended to 
phase in an increased matching requirement for non-Federal 
funds for 1890 land-grant colleges and universities to 100% by 
2007. A new section is added to allow for a 50% matching 
requirement for the 1972 Land-Grant Colleges in the United 
States Territories. The Secretary is granted authority to waive 
the matching requirement if it is unlikely that a Territorial 
college will be able to satisfy the matching requirement in an 
individual fiscal year.
    Sec. 750. The Initiative for Future Agriculture and Food 
Systems (7 U.S.C. 7621) is amended to provide a total of 
$1,160,000,000 to be transferred from the Treasury in equal 
increments for each fiscal year beginning on October 1, 2003 
through September 30, 2011. Funds transferred beginning on 
October 1, 2003 would be available until expended.
    Sec. 751. Carbon Cycle Research (P.L. 106-224; 114 Stat. 
407) is amended to provide an authorization of appropriations 
so that a discretionary program could be continued.
    Sec. 752. The Research Facilities Act (7 U.S.C. 390(2)(3)) 
is amended to strike the definition of Food and Agricultural 
Sciences and instead refer to the definition of Food and 
Agricultural Sciences in section 1408(8) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977.
    Sec. 753. The Smith-Lever Act (7 U.S.C. 343(b)(3)) is 
amended to provide that ``such sums as are necessary'' may be 
appropriated to carry out this section.

                      Subtitle C--Related Matters

    Sec. 761. New authority is provided for resident 
instruction at land-grant colleges in United States 
Territories, subject to the availability of appropriations.
    Sec. 762. The Plant Protection Act (7 U.S.C. 7715(c)), 
Animal Industry Act (21 U.S.C. 114a) and the Act of September 
25, 1981 (7 U.S.C. 147b) are amended to provide for more 
efficient management of declarations of extraordinary 
emergencies and transfer of funds from the Commodity Credit 
Corporation. A new section (419(a)) is added to the Plant 
Protection Act to require the Secretary to determine if uses of 
methyl bromide required by state, local and tribal authorities 
to control the spread of plant pests and noxious weeds shall be 
authorized. In addition, the Secretary would maintain a 
registry of authorized uses.

        Subtitle D--Repeal of Certain Activities and Authorities

    Sec. 771. Food safety research information office and 
national conference (7 U.S.C. 7654(b)) National Conference and 
(c) Food Safety Report are repealed.
    Sec. 772. Reimbursement of expenses under sheep promotion, 
research, and information Act of 1994 (P.L. 105-185; 112 Stat. 
607) is repealed.
    Sec. 773. National Genetic Resources Program advisory 
council (7 U.S.C. 5843) is repealed.
    Sec. 774. National Advisory Board on Agricultural Weather 
(7 U.S.C. 5853) is repealed.
    Sec. 775. Agricultural Information Exchange with Ireland 
(P.L. 99-198; 99 Stat. 1551) is repealed.
    Sec. 776. Pesticide Resistance Study (P.L. 99-198; 99 Stat. 
1558) is repealed.
    Sec. 777. Expansion of Education Study (P.L. 99-198; 99 
Stat. 1559) is repealed.
    Sec. 778. Support for advisory board of the National 
Agriculture Library (7 U.S.C. 3127) is repealed.
    Sec. 779. Task force on 10-year strategic plan for 
agricultural research facilities (7 U.S.C. 390b) is repealed.

              Subtitle E--Agriculture Facility Protection


Sec. 790. Agriculture facility protection

    The Research Facilities Act (7 U.S.C. 390 et seq.) is 
amended by adding a new section to provide the Secretary with 
authority to investigate and assess civil penalties in cases of 
reckless or intentional destruction of animal or agricultural 
enterprises. A civil penalty assessed by the Secretary against 
a person for a violation shall be not less than the total cost 
incurred by the Secretary and the total cost of the economic 
damage suffered by the agricultural enterprise. A fund to 
assist victims of disruption would be established in the 
Treasury consisting of that portion of each civil penalty that 
represents the recovery of economic damages. The Secretary of 
Agriculture shall use the fund to compensate an animal or 
agricultural enterprise for economic losses.

                    TITLE VIII--FORESTRY INITIATIVES


Sec. 801. Repeal of Foresty Incentives Program and Stewardship 
        Incentive Program

    Repeals the Forestry Incentives Program and Stewardship 
Incentive Program located in section 4 and section 6 of the 
Cooperative Forestry Assistance Act of 1978 respectively.

Sec. 802. Establishment of Forest Land Enhancement Program

    Creates a new program administered through NRCS. FLEP will 
provide cost-share assistance to non-industrial private forest 
landowners who agree to develop a management plan and implement 
approved activities for a period of not less than 10 years.
    The Secretary is directed to cooperate with other federal 
and state agencies as well as the private sector in 
implementing the program.
    The maximum amount of cost-share is limited to a sum not to 
exceed 75% of the total cost. The Secretary is directed to 
determine the maximum amount of payments by any one owner.
    FLEP is funded with $15 M in mandatory money per year for 
fiscal years 2002 through 2011.

Sec. 803. Renewable resources extension activities

    Reauthorizes the Renewable Resources Extension Act through 
2011. Provides $30 million of discretionary money.
    Also creates a Sustainable Forestry Outreach Initiative 
within the RREA which would provide education to landowners 
about sustainable forestry practices.

Sec. 804. Enhanced community fire protection

    Directs the Secretary to coordinate with local communities 
in implementing the rural fire prevention and control 
strategies.
    Also creates a Community and Private Land Fire Assistance 
Program which enables the Secretary to undertake a variety of 
activities aimed at preventing fires on both federal and non-
federal lands. Provides $35 million of discretionary money.

Sec. 805. International forestry programs

    Reauthorizes the International Forestry Program through 
2011.

Sec. 806. Long-term forest stewardship

    Contracts for hazardous fuels removal and implementation of 
the National Fire Plan. Gives the Secretary the authority to 
enter into stewardship end result contracts to implement the 
National Fire Plan on Federal lands.

Sec. 807. McIntire-Stennis Cooperative Forestry Research Program

    Reaffirms the importance of Public Law 87-88, the McIntire-
Stennis Cooperative Forestry Act.
    The Forestry Initiatives Title modifies USDA assistance 
programs for State and private forestry.
    The Forestry Title repeals the Forestry Incentives Program 
and the Stewardship Incentives Program and creates a new 
program in their place, the Forest Land Enhancement Program 
(FLEP). FLEP provides cost-share assistance to landowners for a 
wide range of activities including the development of land 
management plans. The Secretary of Agriculture is directed to 
distribute $150 million for FY 2002 through FY 2011 in 
mandatory spending through the Natural Resources Conservation 
Service (NRCS) to the State forestry agencies for landowner 
assistance. It is the intent of the Committee that the funds 
made available for FLEP are to be used by the State Foresters 
in direct landowner assistance activities.
    The Sustainable Forestry Outreach Initiative, within the 
Renewable Resources Extension Act, directs the Secretary 
through Extension Services to create a new program for the 
purpose of educating landowners about: the value and benefits 
of practicing sustainable forestry; the importance of 
professional forestry advice in achieving sustainable forestry 
objectives; and, the variety of public and private sector 
resources available to assist them in planning for and 
practicing sustainable forestry. The objective of this program 
is to articulate the importance of sustainable forest 
management on nonindustrial private lands, and to develop a 
marketing program designed to provide private landowners with 
information on all Federal, State, and Private programs 
developed to assist private landowners with sustainable forest 
management options.

                   TITLE IX--MISCELLANEOUS PROVISIONS


                  Subtitle A--Tree Assistance Program


Sec. 901. Eligibility

    Requires the Secretary of Agriculture to provide assistance 
to eligible orchardists that planted trees for commercial 
purposes but lost such trees as a result of a natural disaster. 
Orchardists qualify for assistance only if tree mortality 
exceeds 15%.

Sec. 902. Assistance

    Consists of either reimbursement of 75% of the cost of 
replanting eligible trees lost or, at the discretion of the 
Secretary, sufficient seedlings to reestablish the stand.

Sec. 903. Limitation on assistance

    Payment limitation per person may not exceed $50,000 or an 
equivalent value in tree seedlings. Requires the Secretary to 
issue regulations defining ``person.'' Requires the Secretary 
to issue regulations prescribing rules to ensure a fair and 
reasonable application of the limitation established under this 
section.

Sec. 904. Definitions

    Defines ``eligible orchardist,'' ``natural disaster,'' and 
``tree''.

 Subtitle B--Advisory Council and Federal Interagency Working Group on 
                        Upper Mississippi River


Sec. 911. Definitions

    Defines ``Advisory Council,'' ``Upper Mississippi River 
Basin,'' and ``Upper Mississippi River Stewardship 
Initiative.''

Sec. 912. Establishment of Advisory Council on the Upper Mississippi 
        River Stewardship Initiative

    Creates an advisory council to provide guidance regarding 
the Upper Mississippi River Stewardship Initiative. Members 
shall be appointed by the governors of the states of Minnesota, 
Wisconsin, Illinois, Iowa and Missouri. Membership shall also 
include members drawn from the state technical committees in 
each of the states named above.

Sec. 913. Responsibilities of Advisory Council

    Provides that the Advisory Committee shall serve as a means 
for coordination, communication and information sharing 
regarding issues in the Upper Mississippi River Basin such as 
science and technology concerning conservation practices. 
Requires the Advisory Council to prepare an annual report 
regarding publicly-financed efforts to reduce sediment and 
nutrient loss. Provides for the creation of specific issue task 
forces within the Advisory Council as needed. Requires the 
Advisory Council to hold an annual public meeting in each state 
represented on the council to formulate recommendations and 
seek public input regarding methods and priorities to reduce 
nutrient and sediment loss in the Upper Mississippi River 
Basin.

Sec. 914. Advisory nature of Council

    Provides that the Advisory Council is purely advisory in 
nature. However, the Secretary and the heads of other federal 
agencies in the interagency working group established in 
section 915 shall give strong consideration to the Council's 
recommendations in administering the natural resources programs 
in the region.

Sec. 915. Federal interagency working group

    Requires the Secretary of Agriculture and the Secretary of 
the Interior to establish an interagency working group to 
coordinate federal nutrient and sediment reduction efforts in 
the Upper Mississippi River Basin under the Initiative.

Sec. 916. Authorization of appropriations

    Authorizes $400,000 for each of fiscal years 2003 through 
2011 to carry out this subtitle.

                       Subtitle C--Other Matters


Sec. 921. Hazardous fuels reduction grants to prevent wildfire 
        disasters and transform hazardous fuels to electric energy, 
        useful heat or transportation fuels.

    Authorizes the Secretary to make grants to energy producers 
who purchase hazardous fuels (unnaturally excessive 
accumulations of organic material), derived from forests lands, 
for use in the production of electric energy, useful heat, or 
transportation fuels. The grants will be awarded based on the 
planned purchase of such hazardous fuels and the level of 
anticipated benefit to reduce wildfire risk. There are 
authorized to be appropriated $50,000,000 for each fiscal year 
to carry out this program.
    Hazardous fuels that are removed from forest lands for 
wildfire prevention represent an abundant renewable resource as 
well as a significant supply of biomass that can be used for 
energy production. In establishing the Hazardous Fuels to 
Energy Grant Program, it is the intent of the Committee to 
encourage the use of forest-derived biomass in the production 
of electric energy, useful heat, or transportation fuels, while 
simultaneously providing an alternative use for hazardous fuels 
that may contribute to the occurrence of wildfires. These 
grants will assist energy producers by offsetting some of the 
costs associated with utilizing and transporting the hazardous 
fuel to the biomass-to-energy facility. These grants will be 
awarded based on the level of anticipated benefit to reduce 
wildfire risk and therefore, may potentially benefit more than 
20,000 communities in the United States that are at risk to 
wildfires. Additionally, these grants will benefit energy 
consumers by providing a mechanism for increasing production of 
alternative energy sources.

Sec. 922. Bioenergy Program

    Requires the Secretary to include animal fats, agricultural 
by-products, and oils as eligible commodities under the 
existing Bioenergy Program (7 CFR 1424).
    The Committee recognizes the role of the Bioenergy Program 
in encouraging the industrial consumption of agricultural 
commodities for the production of ethanol and biodiesel fuels. 
The Committee also recognizes that the expansion of alternative 
markets for agricultural commodities depends upon the stability 
of such programs. Therefore, the Committee encourages the 
Secretary to continue the Bioenergy Program under authority 
provided in Section 5(e) of the Commodity Credit Corporation 
Charter Act. Additionally, for the purpose of treating all 
agriculturally-derived biobased products equitably, animal 
fats, agricultural by-products, and oils are to be added to the 
list of eligible commodities.

Sec. 923. Availability of section 32 funds

    Amends the second undesignated paragraph of section 32 of 7 
U.S.C. 612c by striking ``$300,000,000'' and inserting 
``$500,000,000''.

Sec. 924. Seniors farmers' market nutrition program

    Allows Secretary to use $15,000,000 for each of fiscal 
years 2002 through 2011 to carry out and expand a seniors 
farmers' market nutrition program. Further explains purposes of 
program.

Sec. 925. Federal marketing order for cane berries

    Requires Secretary to issue a Federal marketing order for 
cane berries grown in the United States.
    A Federal Marketing Order for cane berries will allow 
producers to promote orderly marketing through collectively 
influencing the supply, demand or price and to pool resources 
to finance research and promotion. Producers need this tool to 
address low prices due, in part, to overproduction.
    Fruit and Vegetable Advisory Committee--Presently USDA has 
oversight of numerous programs that impact and influence the 
day to day activities of the produce industry, many unique to 
the specialty crop industry. During the past Congress, the 
Secretary of Agriculture approved a USDA Fruit and Vegetable 
Advisory Committee which was strongly supported by industry. 
However, the structure and/or appointments have not yet been 
decided on. To ensure that industry members and federal 
officials maintain an open dialogue to provide suggestions and 
ideas on how USDA administers fruit and vegetable programs to 
meet the industry's changing needs, the Managers encourage the 
Secretary of Agriculture to finish completion of the review 
process to establish and appoint members to this Fruit and 
Vegetable Advisory Committee.

Sec. 926. National Appeals Division

    Provides that if an appellant prevails at the regional 
level in an administrative appeal of a decision by the National 
Appeals Division, the Agency may not pursue an administrative 
appeal of that decision to the national level.

Sec. 927. Outreach and assistance for socially disadvantaged farmers 
        and ranchers

    The outreach program for socially-disadvantaged farmers and 
ranchers contained in Sec. 2501 of the Food, Agriculture, 
Conservation and Trade Act of 1990 is amended by increasing the 
authorization of appropriations from $10 million in each fiscal 
year to $25 million.

                    Committee Views on Other Issues

            Adjusted Gross Revenue Insurance Report Language

    On June 20, 2000, the Agricultural Risk Protection Act of 
2000 was signed into law (ARPA; P.L. 106-224). ARPA made 
comprehensive changes in the Federal Crop Insurance Program. 
One purpose of that Act is to ensure that the Risk Management 
Agency has ample flexibility to operate pilot programs free of 
administrative restrictions that had previously hindered the 
ability to broadly test new ideas. Specifically, as added by 
ARPA, section 523 of the Federal Crop Insurance Act authorizes 
RMA to approve a pilot program on a regional, State, or 
national basis, to operate a pilot program for 4 years, and to 
extend the time of a pilot program beyond 4 years if it 
determines such an extension to be appropriate.
    The Committee is aware that the Risk Management Agency 
currently operates an Adjusted Gross Revenue (AGR) Pilot 
Program. Where it is offered, the program is available to all 
producers in some participating states but only to producers in 
particular counties in other States. The program is offered 
Statewide in Delaware, Connecticut, Maine, Massachusetts, New 
Hampshire, Rhode Island, New Jersey and Vermont. It is only 
offered in specified counties in the States of Florida, Idaho, 
Maryland, Michigan, New York, Oregon, Pennsylvania, Virginia, 
and Washington. The Committee is also aware of considerable 
interest in the protection offered by the AGR policy in other 
States.
    The Committee is encouraged by the popularity and 
performance of the AGR program where it has been offered under 
the current pilot. The Committee expects the Risk Management 
Agency to move quickly to make the pilot program available to 
additional producers throughout the nation. Because the policy 
has proven to be particularly beneficial as a risk management 
tool for specialty crop producers, the Committee strongly 
recommends that RMA make the product available for States with 
high volumes of fruit and vegetable production, such as 
California. The Committee also expects the RMA to use the 
authority granted in section 523(a)(4)(A) of the FCIA to 
operate the program on a statewide basis in those States where 
it is currently offered only in specified counties.

                        COMMITTEE CONSIDERATION

I. Hearings

    In the 106th Congress, Members of the House Committee on 
Agriculture traveled to 10 cities throughout rural America, 
convening field hearings on farm policy that were heard live 
over the Committee's Internet site. Allowing for the broadest 
discussion possible, the Committee encouraged testimony beyond 
the effect of the current farm bill, to seek producer specifics 
on what is working--and what can work better--in all areas of 
federal farm policy. Producers were strongly supportive of the 
flexibility of the ``Freedom to Farm'' concept, and in 
agreement with Committee Members critique of the federal 
government's failure to pursue other promised elements of the 
market-oriented legislation: tax relief, reducing regulatory 
burdens, and the opening of more world markets for American 
agricultural products.
    Under the leadership and initiative of Chairman Combest, 
and the support of Ranking Minority Member Stenholm, these Farm 
Policy Field Hearings enjoyed high attendance--totaling more 
than 2,500 present in the audiences, 200 witnesses, and the 
high degree of participation by Members of the Committee. While 
producers were unable to agree on specifics for new policy 
initiatives, the personal involvement of Agriculture Committee 
Members traveling thousands of miles to listen to local farmers 
and ranchers in their communities contributed to expressions of 
producer confidence in Members' willingness to continue to work 
for consensus.
    The Committee concluded this comprehensive review with a 
series of hearings in Washington, D.C., and heard from leaders 
of national farm organizations, national commodity 
organizations and producer groups that face many issues 
distinct to their industries.
    At the beginning of the 107th Congress, House Agriculture 
Committee Members began the process of building consensus in 
future farm policy by convening January 31, 2001, to examine 
the final report of the Commission on 21st Century Production 
Agriculture, that was created in the 1996 farm bill to complete 
a comprehensive review regarding the current status of 
agriculture, taking into account economic risk, food security, 
trade, international competitiveness of U.S. production, 
farmland values, producer incomes, and regulatory and tax 
relief for farmers and ranchers.
    Shortly after this hearing, the Committee began a series of 
hearings on the future of farm policy that challenged commodity 
and farm groups to provide detailed policy proposals, as well 
as how their proposals would affect related industries, impact 
America's ability to move products in the world market, how it 
would comport with U.S. trade agreements, and the impact on the 
federal budget and overall spending on farm programs.
    Over 15 commodity and farm groups met this challenge and 
helped give the Committee the tools to shape a four page 
concept paper that was based upon these specific proposals.
    Also instrumental to the concept paper were hearings before 
the Committee and its Subcommittees which focused on trade, 
forestry, conservation, nutrition, credit, research, and rural 
development.
    The concept paper developed by the Committee maintained the 
planting flexibility that had proven so popular with producers. 
It guaranteed counter-cyclical income that increases payments 
to producers when prices fall without having to enact new 
legislation. It made oilseeds full partners in the commodity 
programs for major field crops and does so on an equitable 
basis and allows producers a choice to maintain current 
contract payment acres or to update payment acres for recent 
plantings and makes counter-cyclical payments on fixed 
production reduced by market distortions caused by government 
payments. The concept paper also grants relief to sugar and 
wool and mohair producers and provides funds to revamp the 
peanut program to help adjust to challenges from global 
markets.
    The concept paper expanded the Conservation Reserve Program 
to just below 40 million acres and helps livestock and crop 
producers meet environmental goals by reauthorizing the 
Environmental Quality Incentives Programs at an annual funding 
level of $1.2 billion. It helps farmers and ranchers promote 
their products overseas and access foreign markets by 
reauthorizing and increasing funding for the Market Access 
Program.
    The concept paper continued the investment in the future of 
American agriculture by increasing funding for agricultural 
research, extension, and education programs. Expanding the 
program that helps distribute food to food and soup kitchens, 
while increasing access to the food stamp program for families 
in need by providing an additional $2 billion to simplify 
administration.
    The Committee then concluded with a series of hearings to 
hear the viewpoints of panelists representing producers, 
commodity groups, agribusiness, conservation and rural 
development interests concerning the concept paper.

II. Full committee consideration

    The Committee on Agriculture met, pursuant to notice, with 
a quorum present, on July 26, 2001, to consider H.R. 2646, the 
Agriculture Act of 2001.
    Chairman Combest made an opening statement as did Ranking 
Member Stenholm. Other Members were also acknowledged for brief 
remarks and opening statements including Messrs. Dooley, Smith, 
Kind, Baldacci, and Mrs. Clayton.
    Without objection, H.R. 2646 was placed before the 
Committee and open for amendment at any point. Committee 
Counsel was then recognized to give a brief summary of the 
bill.
    Mrs. Clayton was then recognized and moved that the 
nutrition title be adopted as a whole by the Committee. By a 
voice vote, the motion was agreed to and the Title IV was 
adopted.
    Mr. Pombo was recognized to offer and explain an amendment 
to eliminate funding for decoupled farm payments and 
conservation programs to provide necessary funding for export 
and trade related programs. Discussion occurred and by voice 
vote, the amendment failed.
    Mr. Dooley was recognized to offer and explain an amendment 
to establish an AMTA 2% payment modification to increase 
funding for the Initiative for Future Food and Agricultural 
Research Title. Discussion occurred and by voice vote, the 
amendment failed.
    Mrs. Clayton was recognized to offer and explain an 
amendment to instruct the Secretary of Agriculture to impose 
assessment upon fixed, decoupled farm payments to provide 
necessary funds for rural development. Discussion occurred and 
by voice vote, the amendment failed.
    Mr. Goodlatte was recognized to offer and explain an 
amendment to provide funding for rural local television 
broadcast signal loan guarantees. By unanimous consent, the 
amendment was incorporated into the base text of the bill.
    Mr. Osborne was recognized to offer and explain an 
amendment to increase the Research Initiative for Future 
Agricultural Systems by $200 million. Discussion occurred and 
by a roll call vote of 26 yeas--20 nays, the amendment was 
adopted. See Roll Call Vote #1.
    Mr. Putnam was then recognized to offer and explain an 
amendment to make $50,000,000 available for a Pest Detection 
Program through the Animal and Plant Health Inspection Service. 
Discussion occurred and by voice vote, the amendment failed.
    Mr. Berry was recognized to offer and explain an amendment 
to increase the payment limitation for loan deficiency payments 
and marketing loan gains during any crop year from $75,000 to 
$150,000. Discussion occurred and by voice vote, the amendment 
was adopted.
    Mr. Smith was recognized to offer and explain an amendment 
to set a payment limitation of $150,000 per producer on 
benefits received through loan deficiency payments, marketing 
loan gains, commodity certificates, and loan forfeitures. 
Representatives from the USDA were called upon for comment, 
including, Mr. Ralph Linden with the Office of the General 
Counsel, and Mr. Brad Karmen with the Farm Service Agency. 
Discussion occurred and by voice vote, the amendment failed.
    Mr. Boswell was recognized to offer and explain an 
amendment to establish an energy reserve containing an amount 
of farm commodities equal to one year's production of ethanol 
and bio-diesel. Discussion occurred and without objection, the 
amendment was withdrawn.
    Mr. Peterson was recognized to offer and explain an 
amendment establishing market loans based on economic cost of 
production, creating commodity reserves, and initiating a 
commodity inventory management program. Discussion occurred and 
without objection, the amendment was withdrawn.
    Mr. Boehner questioned Committee Counsel on whether the 
marketing allotment provisions within the Sugar Chapter 
(Chapter 2, page 63) of the Commodities Title (Title I) would 
lead to trade distorting import quotas and, consequently, 
violate existing trade commitments. Mr. Boehner expressed 
concern that this would provide an incentive for USDA to set 
the WTO quota at its lowest possible level. An amendment was 
not offered.
    Mr. Dooley was recognized to offer and explain an amendment 
to eliminate funding for counter cyclical farm payments to 
provide additional funds for nonrecourse marketing assistance 
loans. Discussion occurred and without objection, the amendment 
was withdrawn.
    Mr. Etheridge was recognized to offer and explain an 
amendment to amend the Agricultural Adjustment Act of 1938 to 
lower required flue-cured tobacco reserves, held by the Flue-
cured Tobacco Stabilization Cooperative, from 100 million 
pounds or 15 percent of the previous year's quota, to 75 
million pounds or 10 percent of the previous year's quota. 
Discussion occurred and by voice vote, the amendment was 
adopted.
    Mr. Smith was then recognized to offer and explain an 
amendment to allow producers to lock-in a loan deficiency 
payment rate any time after the harvest of a commodity. 
Discussion occurred and without objection, the amendment was 
withdrawn. Report language requested by Mr. Smith, Mr. 
Gutknecht, and Mr. Graves regarding flexible loan payment rates 
for loan deficiency payments was, however, accepted in lieu of 
the amendment.
    Mr. Kind was recognized to offer and explain an amendment 
to deliver payment to dairy farmers from the Farm Service 
Agency when the price of any class of milk falls below $12.50 
per hundredweight. Discussion occurred and without objection, 
the amendment was withdrawn.
    Mr. Etheridge was recognized to offer and explain an 
amendment to reauthorize the Northeast Dairy Compact, as well 
as authorize the creation of a Southeast Dairy Compact, Pacific 
Dairy Compact, and an Intermountain Dairy Compact. Discussion 
occurred and without objection, the amendment was withdrawn.
    Mr. Hayes was recognized to offer and explain an amendment 
to eliminate the 1.25 cent threshold with respect to cotton's 
competitiveness provisions for FY 2002 and 2003. Discussion 
occurred and without objection, the amendment was withdrawn. 
Report language was, however, accepted in lieu of the 
amendment.
    Mr. Osborne brought forth his adopted amendment regarding 
the Research Initiative for Future Agricultural Systems to make 
clarifying changes. Discussion occurred and, without objection, 
the clarifying changes were accepted.
    Mr. Thompson (CA) requested that report language be 
considered to direct the Secretary of Agriculture to use 
available conservation programs to alleviate water demands in 
the Klamath Basin. Discussion occurred and without objection, 
report language was withdrawn. Modified report language was, 
however, accepted.
    Mr. Stenholm was recognized and made a motion to reconsider 
the adopted Etheridge amendment to amend the Agricultural 
Adjustment Act of 1938 to lower required flue-cured tobacco 
reserves, held by the Flue-cured Tobacco Stabilization 
Cooperative. Discussion occurred and without objection, the 
motion was withdrawn.
    Mr. Boswell was recognized to offer and explain an 
amendment to add historical and archaeological sites for 
eligibility under the Farmland Protection Program. Discussion 
occurred and by voice vote, the amendment was adopted.
    Mr. Smith was recognized to offer and explain an amendment 
to allow states to oversee animal feeding operations without 
administering federal discharge permits. Discussion occurred 
and without objection, the amendment was withdrawn.
    Mr. Baldacci offered and explained an amendment to limit 
concentrated animal feeding operations for up to 25 percent 
cost-share payments under the Environmental Quality Incentives 
Program, for constructing animal waste management facilities. 
Discussion occurred and without objection, the amendment was 
withdrawn.
    Mr. Pombo offered and explained an amendment to protect 
ranchers and farmers from the sharing of confidential 
information with other government agencies when applying to 
conservation programs. Discussion occurred and by voice vote, 
the amendment was adopted.
    Mr. Pombo, Mr. Ose, and Mr. Bishop expressed concern that 
report language be considered to clarify conservation program 
information sharing. Without objection, report language was 
accepted.
    Mr. Ose expressed concern that report language be 
considered to eliminate the need to submit a new conservation 
program application if the operation had not changed from the 
previous year. Discussion occurred and without objection, 
report language was accepted.
    Mr. Kind offered an amendment to increase funding for USDA 
incentive and easement programs. Discussion occurred and 
without objection, the amendment was withdrawn.
    Mr. Pickering offered an amendment to take $100 million 
over ten years from the Farmland Protection Program and 
transfer funds to the new Forest Land Enhancement Program. By a 
roll call vote of 23 yeas--25 nays, the amendment failed. See 
Roll Call Vote #2.
    Mrs. Clayton was recognized to offer and explain an 
amendment on behalf of herself and Mr. Thune to establish an 
international food for education and infant and child nutrition 
program to be carried out under section 416(b) of the 
Agricultural Act of 1949. Discussion occurred and without 
objection, the amendment was withdrawn, with the understanding 
that any jurisdictional issues would be worked out with the 
Committee on International Relations.
    Mr. Pombo was recognized to offer and explain an amendment 
to increase participation in value-added agricultural product 
market development grants. Discussion occurred and by voice 
vote, the amendment was adopted.
    Mr. Pombo was again recognized to offer and explain an 
amendment to promote value-added products through the Foreign 
Market Development Program. Discussion occurred and by voice 
vote, the amendment was adopted.
    Mr. Stenholm, Mr. Ose, Mr. Thompson (CA), and Mr. Berry 
requested that report language on the Foreign Market 
Development Program be considered. Discussion occurred and 
without objection, report language was accepted.
    Mr. Bishop was then recognized to offer and explain an 
amendment to modify Sec. 1, Sec. 2, and Sec. 3 of the trade 
title. Discussion occurred and without objection, the amendment 
was withdrawn.
    Mrs. Clayton was recognized to offer and explain an 
amendment to establish authority for a program to allow for a 
bi-lateral exchange of African and Caribbean farmers. 
Discussion occurred and without objection, the amendment was 
withdrawn, with the understanding that the Chairman would work 
with Mrs. Clayton before the legislation reaches the House 
Floor.
    Mr. Etheridge was recognized to offer and explain an 
amendment to use Market Access Program funds to promote leaf 
tobacco. Discussion occurred and by voice vote, the amendment 
was adopted.
    Mr. Acevedo-Vila was recognized to offer and explain report 
language to urge the Secretary to provide technical assistance 
and financial support for the Puerto Rico Department of 
Agriculture to support the market promotion of specialty crops, 
such as mangoes and plantains. Discussion occurred. Mr Putnam 
expressed concern that this report language may promote one 
nation's produce over that of another. Further discussion 
occurred and without objection, report language was accepted.
    Mr. Chambliss was recognized to offer and explain an 
amendment to phase out direct loans after five years and 
require a report on USDA direct lending. Discussion occurred 
and by unanimous consent, the amendment was amended to also 
include a study of USDA guaranteed lending. Further discussion 
occurred and by voice vote, the amendment, as amended, was 
adopted.
    Mrs. Clayton was recognized to offer and explain an 
amendment to allow farmers and ranchers to remain eligible for 
USDA credit through two experiences of debt forgiveness. 
Discussion occurred and by unanimous consent, the amendment was 
amended. Further discussion occurred and by voice vote, the 
amendment, as amended, was adopted.
    Mr. Ose was recognized to offer and explain an amendment to 
consider intangible assets and subordinated unsecured debt in 
determining eligibility of farmer owned cooperative for 
business and industry guaranteed loans. Discussion occurred and 
by unanimous consent, the amendment was amended by changing 
``shall'' to ``may'' in line 15. By voice vote, the amendment, 
as amended, was adopted.
    Mr. Dooley was recognized to offer and explain an amendment 
to remove the ban on limiting eligibility of Farmer 
Cooperatives for business and industry loan guarantee, based on 
population of area in which the cooperative is located. 
Discussion occurred and by voice vote, the amendment was 
adopted.
    Mr. Baldacci was recognized to offer and explain an 
amendment to allow communities designated as Rural Enterprise 
Communities or Rural Empowerment Zones to apply for and receive 
USDA rural development loans for community facilities. 
Discussion occurred and by unanimous consent, the amendment was 
amended to include Champion Communities. Further discussion 
occurred and by voice vote, the amendment, as amended, was 
adopted.
    Mr. Peterson was recognized to offer and explain an 
amendment on behalf of himself and Mr. Fletcher to treat horses 
the same as other livestock under the Consolidated Farm and 
Rural Development Act. Discussion occurred and by voice vote, 
the amendment was adopted.
    Mr. Dooley was recognized to offer and explain an amendment 
to train farm workers in new technologies and specialized 
skills necessary for higher value crops. Discussion occurred 
and by voice vote, the amendment was adopted.
    Mr. Kind was recognized to offer and explain an amendment 
to allow manure reuse loans and grants for the purpose of 
energy generation. Discussion occurred and it was determined 
that this amendment was already contained within the under 
lying bill. Without objection, the amendment was withdrawn.
    Mr. Putnam was recognized to offer and explain an amendment 
to expand the Business and Industry Loan Program for the 
purchase of stock in a farmer cooperative to existing 
cooperatives. Discussion occurred and by voice vote, the 
amendment was adopted.
    Mr. Kind was recognized to offer and explain an amendment 
to establish a Bovine Johne's Disease Control Program. 
Discussion occurred and by voice vote, the amendment was 
adopted.
    Mr. Smith was then recognized to offer and explain an 
amendment to provide research and development grants for the 
purpose of plant genome expression research. Discussion 
occurred and by voice vote, the amendment was adopted.
    Mr. Kind was then recognized to offer and explain an 
amendment establishing a livestock disease research and 
education program to preempt potentially devastating 
biosecurity threats to animal agriculture. Discussion occurred 
and without objection, the amendment was withdrawn.
    Mr. Thompson (CA) was recognized to offer and explain an 
amendment to include tribal programs under the Cooperative 
Forestry Assistance Act of 1978. Discussion occurred and 
without objection, the amendment was withdrawn.
    Mr. Smith was recognized to offer and explain an amendment 
to require members of the state Farm Service Agency Committee 
to select the State Director from not less than 2 people 
nominated by the Secretary. Discussion occurred and without 
objection, the amendment was withdrawn.
    Mrs. Clayton was recognized to offer and explain an 
amendment to amend the Agricultural Fair Practices Act to 
protect the ability of farmers to negotiate fair contracts with 
processors. Discussion occurred and without objection, the 
amendment was withdrawn.
    Mr. Moran was recognized to offer and explain an to 
prohibit the National Appeals Division Director from 
overturning regional National Appeals Division decisions in the 
producer's favor. By a show of hands of 24 yeas--20 nays, the 
amendment was amended to strike the attorney provisions in Sec. 
283. Further discussion occurred and by voice vote, the Moran 
amendment, as amended, was adopted.
    Mrs. Clayton was recognized to offer and explain an 
amendment to establish a proactive system to identify and hold 
the USDA accountable for gaps in services to socially 
disadvantaged farmers and ranchers. Discussion occurred and 
without objection, the amendment was withdrawn.
    Mr. Thune was recognized to offer and explain an amendment 
on behalf of himself and Mr. Ross to create a new title 
requiring the Secretary of Agriculture, acting through the 
Agricultural Marketing Service, to administer country-of-origin 
labeling of meats, including, beef, lamb, pork, perishable 
commodities, and farm raised fish. Extensive discussion 
occurred, however, a series of votes on the House Floor 
precluded a full discussion of this amendment, and the 
Committee adjourned to reconvene on July 27, 2001.
    On the morning of July 27, 2001, Chairman Combest called 
the meeting to order for the continued consideration of H.R. 
2646, The Farm Security Act of 2001, a bill by Mr. Combest and 
Mr. Stenholm to provide for the continuation of agricultural 
programs through fiscal year 2011.
    Discussion resumed with the Thune-Ross amendment, 
addressing the topic of country-of-origin labeling. Mr. Kenneth 
Clayton of the Agricultural Marketing Service and Ms. Debra 
Henke of the Foreign Agriculture Service were called upon for 
comment.
    Mr. Hayes was recognized to offer and explain an amendment 
to the Thune-Ross amendment to exempt pork from country-of-
origin labeling. Ms. Linda Swacina of the Food and Nutrition 
Service was called upon for comment. Discussion occurred and by 
voice vote, the amendment failed.
    Mr. Dooley was recognized to offer and explain an amendment 
to the Thune-Ross amendment to require the Secretary of 
Agriculture to develop and implement a mandatory animal 
identification system for cattle, hogs, and sheep prior to 
implementation of country-of-origin labeling. Discussion 
occurred and by voice vote, the amendment was adopted.
    Mr. Stenholm was recognized to offer and explain an 
amendment to the Thune-Ross amendment, exempting retailers in 
the state of Texas from country-of-origin labeling. Discussion 
occurred and without objection, the amendment was withdrawn.
    Mr. Osborne was recognized to offer and explain an 
amendment to the Thune-Ross amendment to limit applicability of 
country-of-origin labeling to animals that have been raised in 
the United States for 100 days. Discussion occurred and without 
objection, the amendment was withdrawn.
    Mr. Peterson was recognized to offer and explain an 
amendment to the Thune-Ross amendment to include poultry in 
country-of origin labeling. Discussion occurred and by voice 
vote, the amendment was adopted.
    Mr. Bishop was recognized to offer and explain an amendment 
to the Thune-Ross amendment to require retailers to inform 
consumers, at the final point of sale, of the country-of-origin 
of peanuts and peanut products. Discussion occurred and by 
voice vote, the amendment was adopted.
    Mr. Pickering was recognized to offer and explain an 
amendment to the Thune-Ross amendment requiring USDA to submit 
recommendations to Congress on how to implement country-or-
origin labeling. Discussion occurred and by voice vote, the 
amendment failed.
    By voice vote, the amendment offered by Mr. Thune and Mr. 
Ross to create a new title requiring the Secretary of 
Agriculture, acting through the Agricultural Marketing Service, 
to administer country-of-origin labeling of meats, including 
beef, lamb, pork, perishable commodities, and farm raised fish, 
failed.
    Mr. Ross was then recognized to offer and explain an 
amendment to require retailers of farm raised fish to inform 
consumers, at the final point of sale, of the country-of-origin 
of the commodity. Discussion occurred and the amendment was 
ruled out of order.
    Mr. Kind was recognized to offer and explain an amendment 
to authorize the establishment of an Advisory Council and 
Federal Interagency Working Group on the Mississippi River. 
Discussion occurred and by voice vote, the amendment was 
adopted.
    Mr. Hilliard was recognized to offer and explain an 
amendment to increase the authorization for socially 
disadvantaged farmers and ranchers from $10 million to $25 
million. Discussion occurred and by voice vote, the amendment 
was adopted.
    There being no further amendments, Mr. Stenholm moved that 
H.R. 2646, as amended, be adopted and reported favorably to the 
House with the recommendation that it pass. By voice vote, the 
motion was agreed to in the presence of a quorum.
    By voice vote, H.R. 2646 was ordered favorably reported, as 
amended, to the House of Representatives.
    Mr. Stenholm moved that pursuant to clause 1 of rule XX, 
that the Committee authorize the Chairman to offer such motion 
as may be necessary in the House to go to conference with the 
Senate on H.R. 2646 or a similar Senate bill. Without 
objection, the motion was agreed to.
    Mr. Stenholm further moved that the Chairman, after 
consultation with the Ranking Member, be authorized to make 
such adjustment to the spending levels in the reported version 
of the bill in order to ensure that the total costs of this 
legislation, when combined with the total cost of the crop year 
2001 supplemental agricultural spending bill, does not exceed 
the total amount authorized. Without objection, the motion was 
agreed to.
    Without objection, staff was given permission to make any 
necessary clerical, technical or conforming changes to reflect 
the intent of the Committee.
    Chairman Combest thanked all the Members for their 
attentiveness and good work and adjourned the meeting subject 
to the call of the Chair.

                  REPORTING THE BILL--ROLL CALL VOTES

    In compliance with clause 3(b) of rule XIII of the House of 
Representatives, the Committee sets forth the record of the 
following roll call votes taken with respect to H.R. 2646.

Roll Call #1

    Summary: Amendment to increase the Research Initiative for 
Future Agricultural Systems by $200 million.
    Offered by: Mr. Osborne.
    Results adopted by a vote of 26 yeas, 20 nays and 5 not 
voting.

                                  YEAS

1. Mr. Boehner
2. Mr. Pombo
3. Mr. Gutknecht
4. Mr. Riley
5. Mr. Simpson
6. Mr. Ose
7. Mr. Johnson
8. Mr. Osborne
9. Mr. Pence
10. Mr. Rehberg
11. Mr. Graves
12. Mr. Putnam
13. Mr. Condit
14. Mr. Dooley
15. Mrs. Clayton
16. Mr. Hilliard
17. Mr. Holden
18. Mr. Baldacci
19. Mr. Berry
20. Mr. McIntyre
21. Mr. Etheridge
22. Mr. Lucas, KY
23. Mr. Hill
24. Mr. Baca
25. Mr. Ross
26. Mr. Acevedo-Vila

                                  NAYS

1. Mr. Combest
2. Mr. Goodlatte
3. Mr. Smith
4. Mr. Everett
5. Mr. Lucas, OK
6. Mr. Chambliss
7. Mr. Moran
8. Mr. Thune
9. Mr. Jenkins
10. Mr. Hayes
11. Mr. Pickering
12. Mr. Kennedy
13. Mr. Stenholm
14. Mr. Peterson
15. Mr. Boswell
16. Mr. Phelps
17. Mr. Thompson, CA
18. Mr. Larsen
19. Mr. Kind
20. Mr. Shows

                               NOT VOTING

1. Mr. Schaffer
2. Mr. Cooksey
3. Mr. Fletcher
4. Mr. Bishop
5. Mr. Thompson, MS
  

Roll Call #2

    Summary: Amendment to take $100 million over ten years from 
the Farmland Protection Program and transfer funds to the new 
Forest Land Enhancement Program.
    Offered by: Mr. Pickering.
    Results failed by a vote of 23 yeas to 25 nays and 3 not 
voting.

                                  YEAS

1. Mr. Goodlatte
2. Mr. Pombo
3. Mr. Everett
4. Mr. Lucas, OK
5. Mr. Chambliss
6. Mr. Moran
7. Mr. Schaffer
8. Mr. Thune
9. Mr. Jenkins
10. Mr. Riley
11. Mr. Simpson
12. Mr. Hayes
13. Mr. Fletcher
14. Mr. Pickering
15. Mr. Pence
16. Mr. Rehberg
17. Mr. Peterson
18. Mr. Hilliard
19. Mr. Bishop
20. Mr. Thompson, MS
21. Mr. McIntyre
22. Mr. Ross
23. Mr. Shows

                                  NAYS

1. Mr. Combest
2. Mr. Boehner
3. Mr. Smith
4. Mr. Gutknecht
5. Mr. Ose
6. Mr. Johnson
7. Mr. Osborne
8. Mr. Graves
9. Mr. Putnam
10. Mr. Kennedy
11. Mr. Stenholm
12. Mr. Condit
13. Mrs. Clayton
14. Mr. Holden
15. Mr. Baldacci
16. Mr. Etheridge
17. Mr. Boswell
18. Mr. Phelps
19. Mr. Lucas, KY
20. Mr. Thompson, CA
21. Mr. Hill
22. Mr. Baca
23. Mr. Larsen
24. Mr. Acevedo-Vila
25. Mr. Kind
  

                               NOT VOTING

1. Mr. Cooksey
2. Mr. Dooley
3. Mr. Berry
  

                      COMMITTEE OVERSIGHT FINDINGS

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee on Agriculture's 
oversight findings and recommendations are reflected in the 
body of this report.

           BUDGET ACT COMPLIANCE (SECTIONS 308, 402, AND 423)

    The Congressional Budget Office estimate and unfunded 
mandate analysis required by clause 3(c)(3) of rule XIII of the 
Rules of the House of Representatives and sections 402 and 423 
of the Congressional Budget Act of 1974 were not available from 
the Congressional Budget Office as of the date of filing of 
this report. The Congressional Budget Office estimate and 
accompanying materials will be contained in a supplemental 
report.

                    PERFORMANCE GOALS AND OBJECTIVES

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the performance goals and 
objectives of this legislation are to modify and improve 
current Federal agricultural support programs in order to 
provide for a more reliable Federal safety net for America's 
farmers and ranchers in fiscal years 2002 through 2011.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the 
Constitutional authority for this legislation in Article I, 
clause 8, section 18, that grants Congress the power to make 
all laws necessary and proper for carrying out the powers 
vested by Congress in the Constitution of the United States or 
in any department or officer thereof.

                      ADVISORY COMMITTEE STATEMENT

    In accordance with section 5(b) of the Federal Advisory 
Committee Act, the Committee finds that the advisory committee 
established by subtitle B of title IX of this legislation is 
necessary to carry out the functions and responsibilities 
contained therein.

                APPLICABILITY TO THE LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

                        COMMITTEE COST ESTIMATE

    Pursuant to clause 3(d)(2) of rule XIII of the Rules of the 
House of Representatives, the Committee's estimate of the cost 
of H.R. 2646 is as follows:

Change in direct spending, fiscal years 2002-2011, preliminary 
estimates, committee staff estimate

                        [In millions of dollars]

Title 1: Program Crops............................................45,278
Title 1: Other Commodities........................................ 4,525
Title 2: Conservation.............................................16,086
Title 3: Trade.................................................... 1,343
Title 4: Food & Nutrition......................................... 3,648
Title 5: Credit...................................................     0
Title 6: Research................................................. 1,160
Title 7: Rural Development........................................ 1,150
Title 8: Forestry.................................................   150
Title 9: Miscellaneous............................................   150
                                                                  ______
      Total.......................................................73,490

Change in Direct Spending

                  [By fiscal year, in million dollars]

FY 2002...........................................................  3958
FY 2003...........................................................  7583
FY 2004...........................................................  8936
FY 2005...........................................................  8639
FY 2006...........................................................  8530

Increases in Program Authorization Levels

                  [By fiscal year, in million dollars]

FY 2002...........................................................   100
FY 2003...........................................................   133
FY 2004...........................................................   116
FY 2005...........................................................   116
FY 2006...........................................................   116

                        CHANGES IN EXISTING LAW

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives changes in existing law made by 
the bill will be printed in a supplemental report.

               ADDITIONAL VIEWS OF CONGRESSMAN NICK SMITH

            state responsibility for animal waste management

    With regard to regulation of animal feeding operations 
under the Clean Water Act, I believe that states should have 
the flexibility to design functionally equivalent programs best 
suited to their state's needs. Many states currently have 
nutrient management and permitting programs to address animal 
feeding operations. The current authority for states to develop 
these programs should not be preempted, nor should the federal 
government add conflicting requirements to existing state 
programs.
    Furthermore, I have concerns that the proposed AFL/CAFO 
rules released by EPA in December 2000 would impose an 
unnecessary unfunded mandate on the animal livestock industry, 
while providing no significant environmental benefits, and 
possibly even leading to environmental backsliding. Requiring 
states to administer federal discharge permits to almost 40,000 
Concentrated Animal Feeding Operations will be extremely costly 
and counterproductive, as many states are already implementing 
successful waste management programs without one-size-fits-all 
federal permitting.
    The federal government should work with the states in 
developing a new strategy for animal feeding operations and 
should allow existing state programs to operate in lieu of 
federal requirements, provided the existing state program, in 
combination with other point and non-point source measures, is 
effective in attaining and maintaining the federally approved 
state water quality standards.

                   price support payment limitations

    This legislation does not have real limits on federal price 
support payments. The current committee-passed limitation of 
$150,000 on benefits from loan deficiency payments and 
marketing loan gains is not a real limit. Large farmers are 
easily able to continue receiving government price support 
beyond the limitation amount through benefits from commodity 
certificates and loan forfeitures. Some very wealthy farmers 
with tens of thousands of acres receive price support benefits 
in excess of a million dollars. I am concerned that continued 
massive government payments to a handful of large farmers 
threatens to reduce popular support of agriculture for the 82 
percent of farmers that received only 26 percent of total price 
support benefits. Further, imposing an absolute price support 
limitation of $150,000 would only affect the largest \1/2\ of 
one percent of farmers. I would urge members of Congress to 
work to set real payment limitations that would reduce the 
current disparities in federal farm price support payments.

                  empowerment of state fsa committees

    The Secretary should take steps to empower state Farm 
Service Agency Committees with a more involved role in the 
decision-making process for state-administered farm programs.
                                                        Nick Smith.

             ADDITIONAL VIEWS OF CONGRESSMAN RICHARD POMBO

    Congressman Richard Pombo in discussion with Congressman 
Wally Herger assert the following additional views. It is not 
the policy of many members of this Congress to encourage the 
loss of private, productive agricultural land in the heart of 
our most productive farming communities. To the contrary, we 
believe it is, and must continue to be, the policy of this 
Congress and the Secretary of Agriculture to maintain land in 
private ownership and in productive agricultural uses.
    We remain very concerned about the denial of irrigation 
water to the farmers in the Klamath Basin and about the 
precedent that this decision under the Endangered Species Act 
sets for agriculture across the country. We strongly urge the 
Secretary to utilize the programs at her disposal to assist the 
persons affected by this crisis. In so doing, we believe the 
existing policy of this Congress requires the Secretary to 
ensure that there is no net loss of private, agricultural lands 
in the Basin by sale, acquisition, forfeiture, seizure or 
reversion. We also urge the Secretary to work closely with the 
Secretaries of Interior and Commerce to help them ensure that 
future water allocation decisions provide for balance.
    The report language on the Klamath Basin speaks to the 
problem as solely an ``over allocation'' issue. Neither the 
Congress nor the Administration has formally accepted this as 
an accurate depiction of the problems in the Klamath Basin. 
Quite the contrary, much of the focus of the debate on the 
Klamath Basin water crisis has been on the role that the 
Endangered Species Act has played in depriving the farmers of 
this area--for the first time in the 100-year history of the 
project--of their land and water rights. Placing the fault for 
this year's water situation solely on the shoulders of an 
``overallocation,'' fails to account for the regulatory 
constraints that have contributed to this year's zero water 
outcome. It ignores the reality of the Endangered Species Act, 
and removes the necessary policy focus that this Congress must 
continue to place on the role that the law has played in the 
current crisis.
    Indeed, this statement may simply be factually incorrect. 
If this year's water supply outcome were simply a function of 
an overallocated system, one would assume that prior drought 
years would have yielded a similar result. To our knowledge, 
this is not the case.
    While we agree strongly that USDA must continue doing 
everything possible to assist the communities of the Klamath 
Basin, there is not consensus within these communities that the 
purchase of conservation easements and/or the acquisition of 
fee simple interests in farmlands are a viable long-term 
solution. Or that now is the time to consider such actions. 
Many individuals in this area believe that such a large-scale 
acquisition of land and water rights could be the beginning of 
the end for these communities and strongly oppose it. We 
believe the best and proper course would be for Congress to 
fully vet such proposal, with the involvement of each of the 
affected parties, when and if the communities themselves 
request that kind of assistance.
                                                  Richard W. Pombo.

                                  
