    [House Report 112-669]
    [From the U.S. Government Publishing Office]

    112th Congress                                                   Report
                            HOUSE OF REPRESENTATIVES
     2d Session                                                     112-669

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

           FEDERAL AGRICULTURE REFORM AND RISK MANAGEMENT ACT OF 2012

                                    _______

     September 13, 2012.--Committed to the Committee of the Whole House on
                the State of the Union and ordered to be printed

                                    _______

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

                                  R E P O R T

                                 together with

                        ADDITIONAL AND DISSENTING VIEWS

                            [To accompany H.R. 6083]

          [Including cost estimate of the Congressional Budget Office]

        The Committee on Agriculture, to whom was referred the bill
    (H.R. 6083) to provide for the reform and continuation of
    agricultural and other programs of the Department of
    Agriculture through fiscal year 2017, and for other purposes,
    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 ``Federal Agriculture
    Reform and Risk Management Act of 2012''.
      (b) Table of Contents.--The table of contents of this Act is as
    follows:

    Sec. 1. Short title; table of contents.
    Sec. 2. Definition of Secretary of Agriculture.

                              TITLE I--COMMODITIES

                        Subtitle A--Repeals and Reforms

    Sec. 1101. Repeal of direct payments.
    Sec. 1102. Repeal of counter-cyclical payments.
    Sec. 1103. Repeal of average crop revenue election program.
    Sec. 1104. Definitions.
    Sec. 1105. Base acres.
    Sec. 1106. Payment yields.
    Sec. 1107. Farm risk management election.
    Sec. 1108. Producer agreements.
    Sec. 1109. Period of effectiveness.

                          Subtitle B--Marketing Loans

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

                               Subtitle C--Sugar

    Sec. 1301. Sugar program.

                               Subtitle D--Dairy

    Part I--Dairy Producer Margin Protection and Dairy Market Stabilization
                                    Programs

    Sec. 1401. Definitions.
    Sec. 1402. Calculation of average feed cost and actual dairy producer
    margins.

              subpart a--dairy producer margin protection program

    Sec. 1411. Establishment of dairy producer margin protection program.
    Sec. 1412. Participation of dairy producers in margin protection
    program.
    Sec. 1413. Production history of participating dairy producers.
    Sec. 1414. Basic margin protection.
    Sec. 1415. Supplemental margin protection.
    Sec. 1416. Effect of failure to pay administrative fees or premiums.

                 subpart b--dairy market stabilization program

    Sec. 1431. Establishment of dairy market stabilization program.
    Sec. 1432. Threshold for implementation and reduction in dairy producer
    payments.
    Sec. 1433. Producer milk marketing information.
    Sec. 1434. Calculation and collection of reduced dairy producer
    payments.
    Sec. 1435. Remitting monies to the Secretary and use of monies.
    Sec. 1436. Suspension of reduced payment requirement.
    Sec. 1437. Enforcement.
    Sec. 1438. Audit requirements.

                    subpart c--commodity credit corporation

    Sec. 1451. Use of Commodity Credit Corporation.

                       subpart d--initiation and duration

    Sec. 1461. Rulemaking.
    Sec. 1462. Duration.

      Part II--Repeal or Reauthorization of Other Dairy-related Provisions

    Sec. 1481. Repeal of dairy product price support and milk income loss
    contract programs.
    Sec. 1482. Repeal of dairy export incentive program.
    Sec. 1483. Extension of dairy forward pricing program.
    Sec. 1484. Extension of dairy indemnity program.
    Sec. 1485. Extension of dairy promotion and research program.
    Sec. 1486. Repeal of Federal Milk Marketing Order Review Commission.

                            Part III--Effective Date

    Sec. 1491. Effective date.

       Subtitle E--Supplemental Agricultural Disaster Assistance Programs

    Sec. 1501. Supplemental agricultural disaster assistance.

                           Subtitle F--Administration

    Sec. 1601. Administration generally.
    Sec. 1602. Suspension of permanent price support authority.
    Sec. 1603. Payment limitations.
    Sec. 1604. Adjusted gross income limitation.
    Sec. 1605. Geographically disadvantaged farmers and ranchers.
    Sec. 1606. Personal liability of producers for deficiencies.
    Sec. 1607. Prevention of deceased individuals receiving payments under
    farm commodity programs.
    Sec. 1608. Technical corrections.
    Sec. 1609. Assignment of payments.
    Sec. 1610. Tracking of benefits.
    Sec. 1611. Signature authority.
    Sec. 1612. Implementation.

                             TITLE II--CONSERVATION

                    Subtitle A--Conservation Reserve Program

    Sec. 2001. Extension and enrollment requirements of conservation
    reserve program.
    Sec. 2002. Farmable wetland program.
    Sec. 2003. Duties of owners and operators.
    Sec. 2004. Duties of the Secretary.
    Sec. 2005. Payments.
    Sec. 2006. Contract requirements.
    Sec. 2007. Conversion of land subject to contract to other conserving
    uses.
    Sec. 2008. Effective date.

                  Subtitle B--Conservation Stewardship Program

    Sec. 2101. Conservation stewardship program.

              Subtitle C--Environmental Quality Incentives Program

    Sec. 2201. Purposes.
    Sec. 2202. Establishment and administration.
    Sec. 2203. Evaluation of applications.
    Sec. 2204. Duties of producers.
    Sec. 2205. Limitation on payments.
    Sec. 2206. Conservation innovation grants and payments.
    Sec. 2207. Effective date.

             Subtitle D--Agricultural Conservation Easement Program

    Sec. 2301. Agricultural conservation easement program.

             Subtitle E--Regional Conservation Partnership Program

    Sec. 2401. Regional conservation partnership program.

                    Subtitle F--Other Conservation Programs

    Sec. 2501. Conservation of private grazing land.
    Sec. 2502. Grassroots source water protection program.
    Sec. 2503. Voluntary public access and habitat incentive program.
    Sec. 2504. Agriculture conservation experienced services program.
    Sec. 2505. Small watershed rehabilitation program.
    Sec. 2506. Agricultural management assistance program.

                     Subtitle G--Funding and Administration

    Sec. 2601. Funding.
    Sec. 2602. Technical assistance.
    Sec. 2603. Regional equity.
    Sec. 2604. Reservation of funds to provide assistance to certain
    farmers or ranchers for conservation access.
    Sec. 2605. Annual report on program enrollments and assistance.
    Sec. 2606. Review of conservation practice standards.
    Sec. 2607. Administrative requirements applicable to all conservation
    programs.
    Sec. 2608. Standards for State technical committees.
    Sec. 2609. Rulemaking authority.

     Subtitle H--Repeal of Superseded Program Authorities and Transitional
                        Provisions; Technical Amendments

    Sec. 2701. Comprehensive conservation enhancement program.
    Sec. 2702. Emergency forestry conservation reserve program.
    Sec. 2703. Wetlands reserve program.
    Sec. 2704. Farmland protection program and farm viability program.
    Sec. 2705. Grassland reserve program.
    Sec. 2706. Agricultural water enhancement program.
    Sec. 2707. Wildlife habitat incentive program.
    Sec. 2708. Great Lakes basin program.
    Sec. 2709. Chesapeake Bay watershed program.
    Sec. 2710. Cooperative conservation partnership initiative.
    Sec. 2711. Environmental easement program.
    Sec. 2712. Technical amendments.

                                TITLE III--TRADE

                         Subtitle A--Food for Peace Act

    Sec. 3001. General authority.
    Sec. 3002. Support for organizations through which assistance is
    provided.
    Sec. 3003. Food aid quality.
    Sec. 3004. Minimum levels of assistance.
    Sec. 3005. Food Aid Consultative Group.
    Sec. 3006. Oversight, monitoring, and evaluation.
    Sec. 3007. Assistance for stockpiling and rapid transportation,
    delivery, and distribution of shelf-stable prepackaged foods.
    Sec. 3008. General provisions.
    Sec. 3009. Prepositioning of agricultural commodities.
    Sec. 3010. Annual report regarding food aid programs and activities.
    Sec. 3011. Deadline for agreements to finance sales or to provide other
    assistance.
    Sec. 3012. Authorization of appropriations.
    Sec. 3013. Micronutrient fortification programs.
    Sec. 3014. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.

                   Subtitle B--Agricultural Trade Act of 1978

    Sec. 3101. Funding for export credit guarantee program.
    Sec. 3102. Funding for market access program.
    Sec. 3103. Foreign market development cooperator program.

                   Subtitle C--Other Agricultural Trade Laws

    Sec. 3201. Food for Progress Act of 1985.
    Sec. 3202. Bill Emerson Humanitarian Trust.
    Sec. 3203. Promotion of agricultural exports to emerging markets.
    Sec. 3204. McGovern-Dole International Food for Education and Child
    Nutrition Program.
    Sec. 3205. Technical assistance for specialty crops.
    Sec. 3206. Global Crop Diversity Trust.
    Sec. 3207. Under Secretary of Agriculture for Foreign Agricultural
    Services.

                              TITLE IV--NUTRITION

             Subtitle A--Supplemental Nutrition Assistance Program

    Sec. 4001. Retailers.
    Sec. 4002. Enhancing services to elderly and disabled supplemental
    nutrition assistance program recipients.
    Sec. 4003. Food distribution program on Indian reservations.
    Sec. 4004. Updating program eligibility.
    Sec. 4005. Exclusion of medical marijuana from excess medical expense
    deduction.
    Sec. 4006. Standard utility allowances based on the receipt of energy
    assistance payments.
    Sec. 4007. Eligibility disqualifications.
    Sec. 4008. Ending supplemental nutrition assistance program benefits
    for lottery or gambling winners.
    Sec. 4009. Improving security of food assistance.
    Sec. 4010. Demonstration projects on acceptance of benefits of mobile
    transactions.
    Sec. 4011. Use of benefits for purchase of community-supported
    agriculture share.
    Sec. 4012. Restaurant meals program.
    Sec. 4013. State verification option.
    Sec. 4014. Repeal of grant program.
    Sec. 4015. Data exchange standardization for improved interoperability.
    Sec. 4016. Repeal of bonus program.
    Sec. 4017. Funding of employment and training programs.
    Sec. 4018. Monitoring employment and training program.
    Sec. 4019. Cooperation with program research and evaluation.
    Sec. 4020. Authorization of appropriations.
    Sec. 4021. Limitation on use of block grant to Puerto Rico.
    Sec. 4022. Assistance for community food projects.
    Sec. 4023. Emergency food assistance.
    Sec. 4024. Nutrition education.
    Sec. 4025. Retailer trafficking.
    Sec. 4026. Technical and conforming amendments.
    Sec. 4027. Tolerance level for excluding small errors.
    Sec. 4028. Commonwealth of the Northern Mariana Islands pilot program.
    Sec. 4029. Annual State report on verification of SNAP participation.

                  Subtitle B--Commodity Distribution Programs

    Sec. 4101. Commodity distribution program.
    Sec. 4102. Commodity supplemental food program.
    Sec. 4103. Distribution of surplus commodities to special nutrition
    projects.
    Sec. 4104. Processing of commodities.

                           Subtitle C--Miscellaneous

    Sec. 4201. Farmers' market nutrition program.
    Sec. 4202. Nutrition information and awareness pilot program.
    Sec. 4203. Fresh fruit and vegetable program.
    Sec. 4204. Additional authority for purchase of fresh fruits,
    vegetables, and other specialty food crops.
    Sec. 4205. Encouraging locally and regionally grown and raised food.

                                TITLE V--CREDIT

                        Subtitle A--Farm Ownership Loans

    Sec. 5001. Eligibility for farm ownership loans.
    Sec. 5002. Conservation loan and loan guarantee program.
    Sec. 5003. Down payment loan program.
    Sec. 5004. Elimination of mineral rights appraisal requirement.

                          Subtitle B--Operating Loans

    Sec. 5101. Eligibility for farm operating loans.
    Sec. 5102. Elimination of rural residency requirement for operating
    loans to youth.
    Sec. 5103. Authority to waive personal liability for youth loans due to
    circumstances beyond borrower control.
    Sec. 5104. Microloans.

                          Subtitle C--Emergency Loans

    Sec. 5201. Eligibility for emergency loans.

                     Subtitle D--Administrative Provisions

    Sec. 5301. Beginning farmer and rancher individual development accounts
    pilot program.
    Sec. 5302. Eligible beginning farmers and ranchers.
    Sec. 5303. Loan authorization levels.
    Sec. 5304. Priority for participation loans.
    Sec. 5305. Loan fund set-asides.
    Sec. 5306. Conforming amendment to borrower training provision,
    relating to eligibility changes.

               Subtitle E--State Agricultural Mediation Programs

    Sec. 5401. State agricultural mediation programs.

          Subtitle F--Loans to Purchasers of Highly Fractionated Land

    Sec. 5501. Loans to purchasers of highly fractionated land.

                          TITLE VI--RURAL DEVELOPMENT

            Subtitle A--Consolidated Farm and Rural Development Act

    Sec. 6001. Water, waste disposal, and wastewater facility grants.
    Sec. 6002. Rural business opportunity grants.
    Sec. 6003. Elimination of reservation of community facilities grant
    program funds.
    Sec. 6004. Rural water and wastewater circuit rider program.
    Sec. 6005. Tribal college and university essential community
    facilities.
    Sec. 6006. Emergency and imminent community water assistance grant
    program.
    Sec. 6007. 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. 6008. Rural business and industry loan program.
    Sec. 6009. Rural cooperative development grants.
    Sec. 6010. Locally or regionally produced agricultural food products.
    Sec. 6011. Intermediary relending program.
    Sec. 6012. Enhancing public/private partnerships to support rural water
    and waste disposal infrastructure.
    Sec. 6013. Simplified applications.
    Sec. 6014. Reauthorization of State rural development councils.
    Sec. 6015. Grants for NOAA weather radio transmitters.
    Sec. 6016. Rural microentrepreneur assistance program.
    Sec. 6017. Delta Regional Authority.
    Sec. 6018. Northern Great Plains Regional Authority.
    Sec. 6019. Rural business investment program.

                 Subtitle B--Rural Electrification Act of 1936

    Sec. 6101. Relending for certain purposes.
    Sec. 6102. Fees for certain loan guarantees.
    Sec. 6103. Guarantees for bonds and notes issued for electrification or
    telephone purposes.
    Sec. 6104. Expansion of 911 access.
    Sec. 6105. Access to broadband telecommunications services in rural
    areas.

                           Subtitle C--Miscellaneous

    Sec. 6201. Distance learning and telemedicine.
    Sec. 6202. Value-added agricultural market development program grants.
    Sec. 6203. Agriculture innovation center demonstration program.
    Sec. 6204. Program metrics.
    Sec. 6205. Study of rural transportation issues.
    Sec. 6206. Agricultural transportation policy.
    Sec. 6207. Certain Federal actions not to be considered major for
    purposes of environmental review.

              TITLE VII--RESEARCH, EXTENSION, AND RELATED MATTERS

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

    Sec. 7101. Option to not be included as Hispanic-serving agricultural
    college or university.
    Sec. 7102. National Agricultural Research, Extension, Education, and
    Economics Advisory Board.
    Sec. 7103. Specialty crop committee.
    Sec. 7104. Veterinary services grant program.
    Sec. 7105. Grants and fellowships for food and agriculture sciences
    education.
    Sec. 7106. Policy research centers.
    Sec. 7107. Repeal of human nutrition intervention and health promotion
    research program.
    Sec. 7108. Repeal of pilot research program to combine medical and
    agricultural research.
    Sec. 7109. Nutrition education program.
    Sec. 7110. Continuing animal health and disease research programs.
    Sec. 7111. Repeal of appropriations for research on national or
    regional problems.
    Sec. 7112. Grants to upgrade agricultural and food sciences facilities
    at 1890 land-grant colleges, including Tuskegee University.
    Sec. 7113. Grants to upgrade agriculture and food science facilities
    and equipment at insular area land-grant institutions.
    Sec. 7114. Repeal of national research and training virtual centers.
    Sec. 7115. Hispanic-serving institutions.
    Sec. 7116. Competitive grants for international agricultural science
    and education programs.
    Sec. 7117. Repeal of research equipment grants.
    Sec. 7118. University research.
    Sec. 7119. Extension service.
    Sec. 7120. Auditing, reporting, bookkeeping, and administrative
    requirements.
    Sec. 7121. Supplemental and alternative crops.
    Sec. 7122. Capacity building grants for NLGCA institutions.
    Sec. 7123. Aquaculture assistance programs.
    Sec. 7124. Rangeland research programs.
    Sec. 7125. Special authorization for biosecurity planning and response.
    Sec. 7126. Distance education and resident instruction grants program
    for insular area institutions of higher education.
    Sec. 7127. Matching funds requirement.

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

    Sec. 7201. Best utilization of biological applications.
    Sec. 7202. Integrated management systems.
    Sec. 7203. Sustainable agriculture technology development and transfer
    program.
    Sec. 7204. National training program.
    Sec. 7205. National Genetics Resources Program.
    Sec. 7206. Repeal of National Agricultural Weather Information System.
    Sec. 7207. Repeal of rural electronic commerce extension program.
    Sec. 7208. Repeal of agricultural genome initiative.
    Sec. 7209. High-priority research and extension initiatives.
    Sec. 7210. Repeal of nutrient management research and extension
    initiative.
    Sec. 7211. Organic agriculture research and extension initiative.
    Sec. 7212. Repeal of agricultural bioenergy feedstock and energy
    efficiency research and extension initiative.
    Sec. 7213. Farm business management.
    Sec. 7214. Regional centers of excellence.
    Sec. 7215. Repeal of red meat safety research center.
    Sec. 7216. Assistive technology program for farmers with disabilities.
    Sec. 7217. National rural information center clearinghouse.

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

    Sec. 7301. Relevance and merit of agricultural research, extension, and
    education funded by the Department.
    Sec. 7302. Integrated research, education, and extension competitive
    grants program.
    Sec. 7303. Repeal of coordinated program of research, extension, and
    education to improve viability of small and medium size dairy,
    livestock, and poultry operations.
    Sec. 7304. Repeal of Bovine Johne's disease control program.
    Sec. 7305. Grants for youth organizations.
    Sec. 7306. Specialty crop research initiative.
    Sec. 7307. Food animal residue avoidance database program.
    Sec. 7308. Repeal of national swine research center.
    Sec. 7309. Office of pest management policy.
    Sec. 7310. Repeal of studies of agricultural research, extension, and
    education.

                             Subtitle D--Other Laws

    Sec. 7401. Critical Agricultural Materials Act.
    Sec. 7402. Equity in Educational Land-grant Status Act of 1994.
    Sec. 7403. Research Facilities Act.
    Sec. 7404. Repeal of carbon cycle research.
    Sec. 7405. Competitive, Special, and Facilities Research Grant Act.
    Sec. 7406. Renewable Resources Extension Act of 1978.
    Sec. 7407. National Aquaculture Act of 1980.
    Sec. 7408. Repeal of use of remote sensing data.
    Sec. 7409. Repeal of reports under Farm Security and Rural Investment
    Act of 2002.
    Sec. 7410. Beginning farmer and rancher development program.
    Sec. 7411. Inclusion of Northern Mariana Islands as a State under
    McIntire-Stennis Cooperative Forestry Act.

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

                         Part 1--Agricultural Security

    Sec. 7501. Agricultural biosecurity communication center.
    Sec. 7502. Assistance to build local capacity in agricultural
    biosecurity planning, preparation, and response.
    Sec. 7503. Research and development of agricultural countermeasures.
    Sec. 7504. Agricultural biosecurity grant program.

                             Part 2--Miscellaneous

    Sec. 7511. Enhanced use lease authority pilot program.
    Sec. 7512. Grazinglands research laboratory.
    Sec. 7513. Budget submission and funding.
    Sec. 7514. Repeal of research and education grants for the study of
    antibiotic-resistant bacteria.
    Sec. 7515. Repeal of farm and ranch stress assistance network.
    Sec. 7516. Repeal of seed distribution.
    Sec. 7517. Natural products research program.
    Sec. 7518. Sun grant program.
    Sec. 7519. Repeal of study and report on food deserts.
    Sec. 7520. Repeal of agricultural and rural transportation research and
    education.
    Sec. 7521. Conveyance of land comprising Subtropical Horticulture
    Research Station.
    Sec. 7522. Concessions, fees, and voluntary services at National
    Arboretum.
    Sec. 7523. Cotton Disease Research Report.
    Sec. 7524. Miscellaneous technical corrections.

                              TITLE VIII--FORESTRY

                Subtitle A--Repeal of Certain Forestry Programs

    Sec. 8001. Forest land enhancement program.
    Sec. 8002. Watershed forestry assistance program.
    Sec. 8003. Expired cooperative national forest products marketing
    program.
    Sec. 8004. Hispanic-serving institution agricultural land national
    resources leadership program.
    Sec. 8005. Tribal watershed forestry assistance program.
    Sec. 8006. Separate Forest Service decisionmaking and appeals process.

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

    Sec. 8101. Forest Legacy Program.
    Sec. 8102. Community forest and open space conservation program.

           Subtitle C--Reauthorization of Other Forestry-Related Laws

    Sec. 8201. Rural revitalization technologies.
    Sec. 8202. Office of International Forestry.
    Sec. 8203. Change in funding source for healthy forests reserve
    program.
    Sec. 8204. Stewardship end result contracting project authority.

               Subtitle D--National Forest Critical Area Response

    Sec. 8301. Definitions.
    Sec. 8302. Designation of critical areas.
    Sec. 8303. Application of expedited procedures and activities of the
    Healthy Forests Restoration Act of 2003 to critical areas.
    Sec. 8304. Good neighbor authority.

                      Subtitle E--Miscellaneous Provisions

    Sec. 8401. Revision of strategic plan for forest inventory and
    analysis.
    Sec. 8402. Forest Service participation in ACES Program.

                                TITLE IX--ENERGY

    Sec. 9001. Definition of renewable energy system.
    Sec. 9002. Biobased markets program.
    Sec. 9003. Biorefinery Assistance.
    Sec. 9004. Repeal of repowering assistance program and transfer of
    remaining funds.
    Sec. 9005. Bioenergy Program for Advanced Biofuels.
    Sec. 9006. Biodiesel Fuel Education Program.
    Sec. 9007. Rural Energy for America Program.
    Sec. 9008. Biomass Research and Development.
    Sec. 9009. Feedstock Flexibility Program for Bioenergy Producers.
    Sec. 9010. Biomass Crop Assistance Program.
    Sec. 9011. Community wood energy program.
    Sec. 9012. Repeal of biofuels infrastructure study.
    Sec. 9013. Repeal of renewable fertilizer study.

                             TITLE X--HORTICULTURE

    Sec. 10001. Specialty crops market news allocation.
    Sec. 10002. Repeal of grant program to improve movement of specialty
    crops.
    Sec. 10003. Farmers market and local food promotion program.
    Sec. 10004. Organic agriculture.
    Sec. 10005. Investigations and enforcement of the Organic Foods
    Production Act of 1990.
    Sec. 10006. Food safety education initiatives.
    Sec. 10007. Specialty crop block grants.
    Sec. 10008. Report on specialty crop production by certain farmers.
    Sec. 10009. Report on honey.
    Sec. 10010. Bulk shipments of apples to Canada.
    Sec. 10011. Inclusion of olive oil in import controls under the
    Agricultural Adjustment Act.
    Sec. 10012. Petitions to determine organism not a plant pest.
    Sec. 10013. Consolidation of plant pest and disease management and
    disaster prevention programs.
    Sec. 10014. Authority for regulation of plants.
    Sec. 10015. Report to Congress on regulation of biotechnology.
    Sec. 10016. Pesticide Registration Improvement.
    Sec. 10017. Modification, cancellation, or suspension on basis of a
    biological opinion.
    Sec. 10018. Use and discharges of authorized pesticides.
    Sec. 10019. Inclusion of Bed Bugs in Definition of Vector Organisms.
    Sec. 10020. Effective date.

                            TITLE XI--CROP INSURANCE

    Sec. 11001. Information sharing.
    Sec. 11002. Publication of information on violations of prohibition on
    premium adjustments.
    Sec. 11003. Supplemental coverage option.
    Sec. 11004. Premium amounts for catastrophic risk protection.
    Sec. 11005. Repeal of performance-based discount.
    Sec. 11006. Permanent enterprise unit subsidy.
    Sec. 11007. Enterprise units for irrigated and nonirrigated crops.
    Sec. 11008. Data collection.
    Sec. 11009. Adjustment in actual production history to establish
    insurable yields.
    Sec. 11010. Submission and review of policies.
    Sec. 11011. Equitable relief for specialty crop policies.
    Sec. 11012. Budget limitations on renegotiation of the standard
    reinsurance agreement.
    Sec. 11013. Crop production on native sod.
    Sec. 11014. Coverage levels by practice.
    Sec. 11015. Beginning farmer and rancher provisions.
    Sec. 11016. Stacked income protection plan for producers of upland
    cotton.
    Sec. 11017. Peanut revenue crop insurance.
    Sec. 11018. Authority to correct errors.
    Sec. 11019. Implementation.
    Sec. 11020. Research and development priorities.
    Sec. 11021. Additional research and development contracting
    requirements.
    Sec. 11022. Pilot programs.
    Sec. 11023. Limitation on expenditures for livestock pilot programs.
    Sec. 11024. Noninsured crop assistance program.
    Sec. 11025. Technical amendments.

                            TITLE XII--MISCELLANEOUS

                             Subtitle A--Livestock

    Sec. 12101. National Sheep Industry Improvement Center.
    Sec. 12102. Trichinae certification program.
    Sec. 12103. National Aquatic Animal Health Plan.
    Sec. 12104. Report on compliance with World Trade Organization decision
    regarding country of origin labeling.
    Sec. 12105. Repeal of certain regulations under the Packers and
    Stockyards Act, 1921.
    Sec. 12106. Meat and poultry processing report.

       Subtitle B--Socially Disadvantaged Producers and Limited Resource
                                   Producers

    Sec. 12201. Outreach and assistance for socially disadvantaged farmers
    and ranchers and veteran farmers and ranchers.
    Sec. 12202. Office of Advocacy and Outreach.

                   Subtitle C--Other Miscellaneous Provisions

    Sec. 12301. Grants to improve supply, stability, safety, and training
    of agricultural labor force.
    Sec. 12302. Evaluation required for purposes of prohibition on closure
    or relocation of county offices for the Farm Service Agency.
    Sec. 12303. Prohibition on attending an animal fight or causing a minor
    to attend an animal fight.
    Sec. 12304. Program benefit eligibility status for participants in high
    plains water study.
    Sec. 12305. Office of Tribal Relations.
    Sec. 12306. Military Veterans Agricultural Liaison.
    Sec. 12307. Acer access and development program.
    Sec. 12308. Prohibition against interference by State and local
    governments with production or manufacture of items in other States.
    Sec. 12309. Increased protection for agricultural interests in the
    Missouri River basin.

    SEC. 2. DEFINITION OF SECRETARY OF AGRICULTURE.

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

                              TITLE I--COMMODITIES

                        Subtitle A--Repeals and Reforms

    SEC. 1101. REPEAL OF DIRECT PAYMENTS.

      (a) Repeal.--Sections 1103 and 1303 of the Food, Conservation, and
    Energy Act of 2008 (7 U.S.C. 8713, 8753) are repealed.
      (b) Continued Application for 2012 Crop Year.--Sections 1103 and 1303
    of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713,
    8753), as in effect on the day before the date of enactment of this
    Act, shall continue to apply through the 2012 crop year with respect to
    all covered commodities (as defined in section 1001 of that Act (7
    U.S.C. 8702)) and peanuts on a farm.

    SEC. 1102. REPEAL OF COUNTER-CYCLICAL PAYMENTS.

      (a) Repeal.--Sections 1104 and 1304 of the Food, Conservation, and
    Energy Act of 2008 (7 U.S.C. 8714, 8754) are repealed.
      (b) Continued Application for 2012 Crop Year.--Sections 1104 and 1304
    of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8714,
    8754), as in effect on the day before the date of enactment of this
    Act, shall continue to apply through the 2012 crop year with respect to
    all covered commodities (as defined in section 1001 of that Act (7
    U.S.C. 8702)) and peanuts on a farm.

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

      (a) Repeal.--Section 1105 of the Food, Conservation, and Energy Act
    of 2008 (7 U.S.C. 8715) is repealed.
      (b) Continued Application for 2012 Crop Year.--Section 1105 of the
    Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8715), as in
    effect on the day before the date of enactment of this Act, shall
    continue to apply through the 2012 crop year with respect to all
    covered commodities (as defined in section 1001 of that Act (7 U.S.C.
    8702)) and peanuts on a farm for which the irrevocable election under
    section 1105 of that Act was made before the date of enactment of this
    Act.

    SEC. 1104. DEFINITIONS.

      In this subtitle and subtitle B:
              (1) Actual county revenue.--The term ``actual county
            revenue'', with respect to a covered commodity for a crop year,
            means the amount determined by the Secretary under section
            1107(c)(4) to determine whether revenue loss coverage payments
            are required to be provided for that crop year.
              (2) Base acres.--The term ``base acres'', with respect to a
            covered commodity and cotton on a farm, means the number of
            acres established under section 1101 and 1302 of the Farm
            Security and Rural Investment Act of 2002 (7 U.S.C. 7911, 7952)
            or section 1101 and 1302 of the Food, Conservation, and Energy
            Act of 2008 (7 U.S.C. 8711, 8752), as in effect on September
            30, 2012, subject to any adjustment under section 1105 of this
            Act.
              (3) County revenue loss coverage trigger.--The term ``county
            revenue loss coverage trigger'', with respect to a covered
            commodity for a crop year, means the amount determined by the
            Secretary under section 1107(c)(5) to determine whether revenue
            loss coverage payments are required to be provided for that
            crop year.
              (4) Covered commodity.--The term ``covered commodity'' means
            wheat, oats, and barley (including wheat, oats, and barley used
            for haying and grazing), corn, grain sorghum, long grain rice,
            medium grain rice, pulse crops, soybeans, other oilseeds, and
            peanuts.
              (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 1107(b)(2) to
            determine whether price loss coverage payments are required to
            be provided for that crop year.
              (6) Extra long staple cotton.--The term ``extra long staple
            cotton'' means cotton that--
                      (A) is produced from pure strain varieties of the
                    Barbadense species or any hybrid of the species, or
                    other similar types of extra long staple cotton,
                    designated by the Secretary, having characteristics
                    needed for various end uses for which United States
                    upland cotton is not suitable and grown in irrigated
                    cotton-growing regions of the United States designated
                    by the Secretary or other areas designated by the
                    Secretary as suitable for the production of the
                    varieties or types; and
                      (B) is ginned on a roller-type gin or, if authorized
                    by the Secretary, ginned on another type gin for
                    experimental purposes.
              (7) Farm base acres.--The term ``farm base acres'' means the
            sum of the base acreage for all covered commodities and cotton
            on a farm in effect as of September 30, 2012, and subject to
            any adjustment under section 1105.
              (8) Medium grain rice.--The term ``medium grain rice''
            includes short grain rice.
              (9) Midseason price.--The term ``midseason price'' means the
            applicable national average market price received by producers
            for the first 5 months of the applicable marketing year, as
            determined by the Secretary.
              (10) Other oilseed.--The term ``other oilseed'' means a crop
            of sunflower seed, rapeseed, canola, safflower, flaxseed,
            mustard seed, crambe, sesame seed, or any oilseed designated by
            the Secretary.
              (11) Payment acres.--
                      (A) In general.--Except as provided in subparagraphs
                    (B) through (D), the term ``payment acres'', with
                    respect to the provision of price loss coverage
                    payments and revenue loss coverage payments, means--
                              (i) 85 percent of total acres planted for the
                            year to each covered commodity on a farm; and
                              (ii) 30 percent of approved total acres
                            prevented from being planted for the year to
                            each covered commodity on a farm.
                      (B) Maximum.--The total quantity of payment acres
                    determined under subparagraph (A) shall not exceed the
                    farm base acres.
                      (C) Reduction.--If the sum of all payment acres for a
                    farm exceeds the limits established under subparagraph
                    (B), the Secretary shall reduce the payment acres
                    applicable to each crop proportionately.
                      (D) Exclusion.--The term ``payment acres'' does not
                    include any crop subsequently planted during the same
                    crop year on the same land for which the first crop is
                    eligible for payments under this subtitle, unless the
                    crop was approved for double cropping in the county, as
                    determined by the Secretary.
              (12) Payment yield.--The term ``payment yield'' means the
            yield established for counter-cyclical payments under section
            1102 or 1302 of the Farm Security and Rural Investment Act of
            2002 (7 U.S.C. 7912, 7952), section 1102 of the Food,
            Conservation, and Energy Act of 2008 (7 U.S.C. 8712), as in
            effect on September 30, 2012, or under section 1106 of this
            Act, for a farm for a covered commodity.
              (13) Price loss coverage.--The term ``price loss coverage''
            means coverage provided under section 1107(b).
              (14) Producer.--
                      (A) In general.--The term ``producer'' means an
                    owner, operator, landlord, tenant, or sharecropper that
                    shares in the risk of producing a crop and is entitled
                    to share in the crop available for marketing from the
                    farm, or would have shared had the crop been produced.
                      (B) Hybrid seed.--In determining whether a grower of
                    hybrid seed is a producer, the Secretary shall--
                              (i) not take into consideration the existence
                            of a hybrid seed contract; and
                              (ii) ensure that program requirements do not
                            adversely affect the ability of the grower to
                            receive a payment under this title.
              (15) Pulse crop.--The term ``pulse crop'' means dry peas,
            lentils, small chickpeas, and large chickpeas.
              (16) Reference price.--The term ``reference price'', with
            respect to a covered commodity for a crop year, means the
            following:
                      (A) Wheat, $5.50 per bushel.
                      (B) Corn, $3.70 per bushel.
                      (C) Grain sorghum, $3.95 per bushel.
                      (D) Barley, $4.95 per bushel.
                      (E) Oats, $2.40 per bushel.
                      (F) Long grain rice, $14.00 per hundredweight.
                      (G) Medium grain rice, $14.00 per hundredweight.
                      (H) Soybeans, $8.40 per bushel.
                      (I) Other oilseeds, $20.15 per hundredweight.
                      (J) Peanuts $535.00 per ton.
                      (K) Dry peas, $11.00 per hundredweight.
                      (L) Lentils, $19.97 per hundredweight.
                      (M) Small chickpeas, $19.04 per hundredweight.
                      (N) Large chickpeas, $21.54 per hundredweight.
              (17) Revenue loss coverage.--The term ``revenue loss
            coverage'' means coverage provided under section 1107(c).
              (18) Secretary.--The term ``Secretary'' means the Secretary
            of Agriculture.
              (19) State.--The term ``State'' means--
                      (A) a State;
                      (B) the District of Columbia;
                      (C) the Commonwealth of Puerto Rico; and
                      (D) any other territory or possession of the United
                    States.
              (20) Transitional yield.--The term ``transitional yield'' has
            the meaning given the term in section 502(b) of the Federal
            Crop Insurance Act (7 U.S.C. 1502(b)).
              (21) United states.--The term ``United States'', when used in
            a geographical sense, means all of the States.
              (22) United states premium factor.--The term ``United States
            Premium Factor'' means the percentage by which the difference
            in the United States loan schedule premiums for Strict Middling
            (SM) 1\1/8\-inch upland cotton and for Middling (M) 1\3/32\-
            inch upland cotton exceeds the difference in the applicable
            premiums for comparable international qualities.

    SEC. 1105. BASE ACRES.

      (a) Adjustment of Base Acres.--
              (1) In general.--The Secretary shall provide for an
            adjustment, as appropriate, in the base acres for covered
            commodities and cotton for a farm whenever any of the following
            circumstances occurs:
                      (A) A conservation reserve contract entered into
                    under section 1231 of the Food Security Act of 1985 (16
                    U.S.C. 3831) with respect to the farm expires or is
                    voluntarily terminated.
                      (B) Cropland is released from coverage under a
                    conservation reserve contract by the Secretary.
                      (C) The producer has eligible oilseed acreage as the
                    result of the Secretary designating additional
                    oilseeds, which shall be determined in the same manner
                    as eligible oilseed acreage under section 1101(a)(1)(D)
                    of the Food, Conservation, and Energy Act of 2008 (7
                    U.S.C. 8711(a)(1)(D)).
              (2) Special conservation reserve acreage payment rules.--For
            the crop year in which a base acres adjustment under
            subparagraph (A) or (B) of paragraph (1) is first made, the
            owner of the farm shall elect to receive price loss coverage or
            revenue loss coverage with respect to the acreage added to the
            farm under this subsection or a prorated payment under the
            conservation reserve contract, but not both.
      (b) Prevention of Excess Base Acres.--
              (1) Required reduction.--If the sum of the base acres for a
            farm, together with the acreage described in paragraph (2)
            exceeds the actual cropland acreage of the farm, the Secretary
            shall reduce the base acres for 1 or more covered commodities
            or cotton for the farm so that the sum of the base acres and
            acreage described in paragraph (2) does not exceed the actual
            cropland acreage of the farm.
              (2) Other acreage.--For purposes of paragraph (1), the
            Secretary shall include the following:
                      (A) Any acreage on the farm enrolled in the
                    conservation reserve program or wetlands reserve
                    program (or successor programs) under chapter 1 of
                    subtitle D of title XII of the Food Security Act of
                    1985 (16 U.S.C. 3830 et seq.).
                      (B) Any other acreage on the farm enrolled in a
                    Federal conservation program for which payments are
                    made in exchange for not producing an agricultural
                    commodity on the acreage.
                      (C) If the Secretary designates additional oilseeds,
                    any eligible oilseed acreage, which shall be determined
                    in the same manner as eligible oilseed acreage under
                    subsection (a)(1)(C).
              (3) Selection of acres.--The Secretary shall give the owner
            of the farm the opportunity to select the base acres for a
            covered commodity or cotton for the farm against which the
            reduction required by paragraph (1) will be made.
              (4) Exception for double-cropped acreage.--In applying
            paragraph (1), the Secretary shall make an exception in the
            case of double cropping, as determined by the Secretary.
      (c) Reduction in Base Acres.--
              (1) Reduction at option of owner.--
                      (A) In general.--The owner of a farm may reduce, at
                    any time, the base acres for any covered commodity or
                    cotton for the farm.
                      (B) Effect of reduction.--A reduction under
                    subparagraph (A) shall be permanent and made in a
                    manner prescribed by the Secretary.
              (2) Required action by secretary.--
                      (A) In general.--The Secretary shall proportionately
                    reduce base acres on a farm for covered commodities and
                    cotton for land that has been subdivided and developed
                    for multiple residential units or other nonfarming uses
                    if the size of the tracts and the density of the
                    subdivision is such that the land is unlikely to return
                    to the previous agricultural use, unless the producers
                    on the farm demonstrate that the land--
                              (i) remains devoted to commercial
                            agricultural production; or
                              (ii) is likely to be returned to the previous
                            agricultural use.
                      (B) Requirement.--The Secretary shall establish
                    procedures to identify land described in subparagraph
                    (A).

    SEC. 1106. PAYMENT YIELDS.

      (a) Establishment and Purpose.--For the purpose of making payments
    under this subtitle, the Secretary shall provide for the establishment
    of a yield for each farm for any designated oilseed for which a payment
    yield was not established under section 1102 of the Food, Conservation,
    and Energy Act of 2008 (7 U.S.C. 8712) in accordance with this section.
      (b) Payment Yields for Designated Oilseeds.--
              (1) Determination of average yield.--In the case of
            designated oilseeds, the Secretary shall determine the average
            yield per planted acre for the designated oilseed on a farm for
            the 1998 through 2001 crop years, excluding any crop year in
            which the acreage planted to the designated oilseed was zero.
              (2) Adjustment for payment yield.--
                      (A) In general.--The payment yield for a farm for a
                    designated oilseed shall be equal to the product of the
                    following:
                              (i) The average yield for the designated
                            oilseed determined under paragraph (1).
                              (ii) The ratio resulting from dividing the
                            national average yield for the designated
                            oilseed for the 1981 through 1985 crops by the
                            national average yield for the designated
                            oilseed for the 1998 through 2001 crops.
                      (B) No national average yield information
                    available.--To the extent that national average yield
                    information for a designated oilseed is not available,
                    the Secretary shall use such information as the
                    Secretary determines to be fair and equitable to
                    establish a national average yield under this section.
              (3) Use of county average yield.--If the yield per planted
            acre for a crop of a designated oilseed for a farm for any of
            the 1998 through 2001 crop years was less than 75 percent of
            the county yield for that designated oilseed, the Secretary
            shall assign a yield for that crop year equal to 75 percent of
            the county yield for the purpose of determining the average
            under paragraph (1).
              (4) No historic yield data available.--In the case of
            establishing yields for designated oilseeds, if historic yield
            data is not available, the Secretary shall use the ratio for
            dry peas calculated under paragraph (2)(A)(ii) in determining
            the yields for designated oilseeds, as determined to be fair
            and equitable by the Secretary.
      (c) Effect of Lack of Payment Yield.--
              (1) Establishment by secretary.--If no payment yield is
            otherwise established for a farm for which a covered commodity
            is planted and eligible to receive price loss coverage
            payments, the Secretary shall establish an appropriate payment
            yield for the covered commodity on the farm under paragraph
            (2).
              (2) Use of similarly situated farms.--Notwithstanding any
            other provision of law, to establish an appropriate payment
            yield for a covered commodity on a farm as required by
            paragraph (1), the Secretary shall take into consideration the
            farm program payment yields applicable to that covered
            commodity for similarly situated farms.
      (d) Single Opportunity to Update Yields Used to Determine Price Loss
    Coverage Payments.--
              (1) Election to update.--At the sole discretion of the owner
            of a farm, the owner of a farm shall have a 1-time opportunity
            to update the payment yields on a covered commodity-by-covered
            commodity basis that would otherwise be used in calculating any
            price loss coverage payment for covered commodities on the
            farm.
              (2) Time for election.--The election under paragraph (1)
            shall be made at a time and manner to be in effect for the 2013
            crop year as determined by the Secretary.
              (3) Method of updating yields.--If the owner of a farm elects
            to update yields under this subsection, the payment yield for a
            covered commodity on the farm, for the purpose of calculating
            price loss coverage payments only, shall be equal to 90 percent
            of the average of the yield per planted acre for the crop of
            the covered commodity on the farm for the 2008 through 2012
            crop years, as determined by the Secretary, excluding any crop
            year in which the acreage planted to the crop of the covered
            commodity was zero.
              (4) Use of county average yield.--If the yield per planted
            acre for a crop of the covered commodity for a farm for any of
            the 2008 through 2012 crop years was less than 75 percent of
            the average of the 2008 through 2012 county yield for that
            commodity, the Secretary shall assign a yield for that crop
            year equal to 75 percent of the average of the 2008 through
            2012 county yield for the purposes of determining the average
            yield under paragraph (3).
              (5) Effect of lack of payment yield.--
                      (A) Establishment by secretary.--For purposes of this
                    subsection, if no payment yield is otherwise
                    established for a covered commodity on a farm, the
                    Secretary shall establish an appropriate updated
                    payment yield for the covered commodity on the farm
                    under subparagraph (B).
                      (B) Use of similarly situated farms.--Notwithstanding
                    any other provision of law, to establish an appropriate
                    updated payment yield for a covered commodity on a farm
                    as required by subparagraph (A), the Secretary shall
                    take into consideration the farm program payment yields
                    applicable to that covered commodity for similarly
                    situated farms, but before the yields for the similarly
                    situated farms are updated as provided in this
                    subsection.

    SEC. 1107. FARM RISK MANAGEMENT ELECTION.

      (a) In General.--
              (1) Payments required.--Except as provided in paragraph (2),
            if the Secretary determines that payments are required under
            subsection (b)(1) or (c)(2) for a covered commodity, the
            Secretary shall make payments for that covered commodity
            available under such subsection to producers on a farm pursuant
            to the terms and conditions of this section.
              (2) Prohibition on payments; exceptions.--Notwithstanding any
            other provision of this title, a producer on a farm may not
            receive price loss coverage payments or revenue loss coverage
            payments if the sum of the planted acres of covered commodities
            on the farm is 10 acres or less, as determined by the
            Secretary, unless the producer is--
                      (A) a socially disadvantaged farmer or rancher (as
                    defined in section 355(e) of the Consolidated Farm and
                    Rural Development Act (7 U.S.C. 2003(e))); or
                      (B) a limited resource farmer or rancher, as defined
                    by the Secretary.
      (b) Price Loss Coverage.--
              (1) Payments.--For each of the 2013 through 2017 crop years,
            the Secretary shall make price loss coverage payments to
            producers on a farm for a covered commodity if the Secretary
            determines that--
                      (A) the effective price for the covered commodity for
                    the crop year; is less than
                      (B) the reference price for the covered commodity for
                    the crop year.
              (2) Effective price.--The effective price for a covered
            commodity for a crop year shall be the higher of--
                      (A) the midseason price; or
                      (B) the national average loan rate for a marketing
                    assistance loan for the covered commodity in effect for
                    crop years 2013 through 2017 under subtitle B.
              (3) Payment rate.--The payment rate shall be equal to the
            difference between--
                      (A) the reference price for the covered commodity;
                    and
                      (B) the effective price determined under paragraph
                    (2) for the covered commodity.
              (4) Payment amount.--If price loss coverage payments are
            required to be provided under this subsection for any of the
            2013 through 2017 crop years for a covered commodity, the
            amount of the price loss coverage payment to be paid to the
            producers on a farm for the crop year shall be equal to the
            product obtained by multiplying--
                      (A) the payment rate for the covered commodity under
                    paragraph (3);
                      (B) the payment yield for the covered commodity; and
                      (C) the payment acres for the covered commodity.
              (5) Time for payments.--If the Secretary determines under
            this subsection that price loss coverage payments are required
            to be provided for the covered commodity, the payments shall be
            made beginning October 1, or as soon as practicable thereafter,
            after the end of the applicable marketing year for the covered
            commodity.
              (6) Special rule.--In determining the effective price for
            barley in paragraph (2), the Secretary shall use the all-barley
            price.
      (c) Revenue Loss Coverage.--
              (1) Available as an alternative.--As an alternative to
            receiving price loss coverage payments under subsection (b) for
            a covered commodity, all of the owners of the farm may make a
            one-time, irrevocable election on a covered commodity-by-
            covered commodity basis to receive revenue loss coverage
            payments for each covered commodity in accordance with this
            subsection. If any of the owners of the farm make different
            elections on the same covered commodity on the farm, all of the
            owners of the farm shall be deemed to have not made the
            election available under this paragraph.
              (2) Payments.--In the case of owners of a farm that make the
            election described in paragraph (1) for a covered commodity,
            the Secretary shall make revenue loss coverage payments
            available under this subsection for each of the 2013 through
            2017 crop years if the Secretary determines that--
                      (A) the actual county revenue for the crop year for
                    the covered commodity; is less than
                      (B) the county revenue loss coverage trigger for the
                    crop year for the covered commodity.
              (3) Time for payments.--If the Secretary determines under
            this subsection that revenue loss coverage payments are
            required to be provided for the covered commodity, payments
            shall be made beginning October 1, or as soon as practicable
            thereafter, after the end of the applicable marketing year for
            the covered commodity.
              (4) Actual county revenue.--The amount of the actual county
            revenue for a crop year of a covered commodity shall be equal
            to the product obtained by multiplying--
                      (A) the actual county yield, as determined by the
                    Secretary, for each planted acre for the crop year for
                    the covered commodity; and
                      (B) the higher of--
                              (i) the midseason price; or
                              (ii) the national average loan rate for a
                            marketing assistance loan for the covered
                            commodity in effect for crop years 2013 through
                            2017 under subtitle B.
              (5) County revenue loss coverage trigger.--
                      (A) In general.--The county revenue loss coverage
                    trigger for a crop year for a covered commodity on a
                    farm shall equal 85 percent of the benchmark county
                    revenue.
                      (B) Benchmark county revenue.--
                              (i) In general.--The benchmark county revenue
                            shall be the product obtained by multiplying--
                                      (I) subject to clause (ii), the
                                    average historical county yield as
                                    determined by the Secretary for the
                                    most recent 5 crop years, excluding
                                    each of the crop years with the highest
                                    and lowest yields; and
                                      (II) subject to clause (iii), the
                                    average national marketing year average
                                    price for the most recent 5 crop years,
                                    excluding each of the crop years with
                                    the highest and lowest prices.
                              (ii) Yield conditions.--If the historical
                            county yield in clause (i)(I) for any of the 5
                            most recent crop years, as determined by the
                            Secretary, is less than 70 percent of the
                            transitional yield, as determined by the
                            Secretary, the amounts used for any of those
                            years in clause (i)(I) shall be 70 percent of
                            the transitional yield.
                              (iii) Reference price.--If the national
                            marketing year average price in clause (i)(II)
                            for any of the 5 most recent crop years is
                            lower than the reference price for the covered
                            commodity, the Secretary shall use the
                            reference price for any of those years for the
                            amounts in clause (i)(II).
              (6) Payment rate.--The payment rate shall be equal to the
            lesser of--
                      (A) the difference between--
                              (i) the county revenue loss coverage trigger
                            for the covered commodity; and
                              (ii) the actual county revenue for the crop
                            year for the covered commodity; or
                      (B) 10 percent of the benchmark county revenue for
                    the crop year for the covered commodity.
              (7) Payment amount.--If revenue loss coverage payments under
            this subsection are required to be provided for any of the 2013
            through 2017 crop years of a covered commodity, the amount of
            the revenue loss coverage payment to be provided to the
            producers on a farm for the crop year shall be equal to the
            product obtained by multiplying--
                      (A) the payment rate under paragraph (6); and
                      (B) the payment acres of the covered commodity on the
                    farm.
              (8) Duties of the secretary.--In providing revenue loss
            coverage payments under this subsection, the Secretary--
                      (A) shall ensure that producers on a farm do not
                    reconstitute the farm of the producers to void or
                    change the election made under paragraph (1);
                      (B) to the maximum extent practicable, shall use all
                    available information and analysis, including data
                    mining, to check for anomalies in the provision of
                    revenue loss coverage payments;
                      (C) to the maximum extent practicable, shall
                    calculate a separate county revenue loss coverage
                    trigger for irrigated and nonirrigated covered
                    commodities and a separate actual county revenue for
                    irrigated and nonirrigated covered commodities;
                      (D) shall assign a benchmark county yield for each
                    planted acre for the crop year for the covered
                    commodity on the basis of the yield history of
                    representative farms in the State, region, or crop
                    reporting district, as determined by the Secretary,
                    if--
                              (i) the Secretary cannot establish the
                            benchmark county yield for each planted acre
                            for a crop year for a covered commodity in the
                            county in accordance with paragraph (5); or
                              (ii) the yield determined under paragraph (5)
                            is an unrepresentative average yield for the
                            county (as determined by the Secretary); and
                      (E) to the maximum extent practicable, shall ensure
                    that in order to be eligible for a payment under this
                    subsection, the producers on the farm suffered an
                    actual loss on the covered commodity for the crop year
                    for which payment is sought.

    SEC. 1108. PRODUCER AGREEMENTS.

      (a) Compliance With Certain Requirements.--
              (1) Requirements.--Before the producers on a farm may receive
            price loss coverage payments or revenue loss coverage payments
            with respect to the farm, the producers shall agree, during the
            crop year for which the payments are made and in exchange for
            the payments--
                      (A) to comply with applicable conservation
                    requirements under subtitle B of title XII of the Food
                    Security Act of 1985 (16 U.S.C. 3811 et seq.);
                      (B) to comply with applicable wetland protection
                    requirements under subtitle C of title XII of that Act
                    (16 U.S.C. 3821 et seq.); and
                      (C) to effectively control noxious weeds and
                    otherwise maintain the land in accordance with sound
                    agricultural practices, as determined by the Secretary.
              (2) Compliance.--The Secretary may issue such rules as the
            Secretary considers necessary to ensure producer compliance
            with the requirements of paragraph (1).
              (3) Modification.--At the request of the transferee or owner,
            the Secretary may modify the requirements of this subsection if
            the modifications are consistent with the objectives of this
            subsection, as determined by the Secretary.
      (b) Transfer or Change of Interest in Farm.--
              (1) Termination.--
                      (A) In general.--Except as provided in paragraph (2),
                    a transfer of (or change in) the interest of the
                    producers on a farm for which price loss coverage
                    payments or revenue loss coverage payments are provided
                    shall result in the termination of the price loss
                    coverage and revenue loss coverage, unless the
                    transferee or owner of the acreage agrees to assume all
                    obligations under subsection (a).
                      (B) Effective date.--The termination shall take
                    effect on the date determined by the Secretary.
              (2) Exception.--If a producer entitled to a price loss
            coverage payment or revenue loss coverage payment dies, becomes
            incompetent, or is otherwise unable to receive the payment, the
            Secretary shall make the payment in accordance with rules
            issued by the Secretary.
      (c) Acreage Reports.--As a condition on the receipt of any benefits
    under this subtitle or subtitle B, the Secretary shall require
    producers on a farm to submit to the Secretary annual acreage reports
    with respect to all cropland on the farm.
      (d) Tenants and Sharecroppers.--In carrying out this subtitle, the
    Secretary shall provide adequate safeguards to protect the interests of
    tenants and sharecroppers.
      (e) Sharing of Payments.--The Secretary shall provide for the sharing
    of price loss coverage payments and revenue loss coverage payments
    among the producers on a farm on a fair and equitable basis.

    SEC. 1109. PERIOD OF EFFECTIVENESS.

      This subtitle shall be effective beginning with the 2013 crop year of
    each covered commodity through the 2017 crop year.

                          Subtitle B--Marketing Loans

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

      (a) Definition of Loan Commodity.--In this subtitle, the term ``loan
    commodity'' means wheat, corn, grain sorghum, barley, oats, upland
    cotton, extra long staple cotton, long grain rice, medium grain rice,
    peanuts, soybeans, other oilseeds, graded wool, nongraded wool, mohair,
    honey, dry peas, lentils, small chickpeas, and large chickpeas.
      (b) Nonrecourse Loans Available.--
              (1) In general.--For each of the 2013 through 2017 crops of
            each loan commodity, the Secretary shall make available to
            producers on a farm nonrecourse marketing assistance loans for
            loan commodities produced on the farm.
              (2) Terms and conditions.--The marketing assistance loans
            shall be made under terms and conditions that are prescribed by
            the Secretary and at the loan rate established under section
            1202 for the loan commodity.
      (c) Eligible Production.--The producers on a farm shall be eligible
    for a marketing assistance loan under subsection (b) for any quantity
    of a loan commodity produced on the farm.
      (d) Compliance With Conservation and Wetlands Requirements.--As a
    condition of the receipt of a marketing assistance loan under
    subsection (b), 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 that Act (16 U.S.C. 3821
    et seq.) during the term of the loan.
      (e) Special Rules for Peanuts.--
              (1) In general.--This subsection shall apply only to
            producers of peanuts.
              (2) Options for obtaining loan.--A marketing assistance loan
            under this section, and loan deficiency payments under section
            1205, may be obtained at the option of the producers on a farm
            through--
                      (A) a designated marketing association or marketing
                    cooperative of producers that is approved by the
                    Secretary; or
                      (B) the Farm Service Agency.
              (3) Storage of loan peanuts.--As a condition on the approval
            by the Secretary of an individual or entity to provide storage
            for peanuts for which a marketing assistance loan is made under
            this section, the individual or entity shall agree--
                      (A) to provide the storage on a nondiscriminatory
                    basis; and
                      (B) to comply with such additional requirements as
                    the Secretary considers appropriate to accomplish the
                    purposes of this section and promote fairness in the
                    administration of the benefits of this section.
              (4) Storage, handling, and associated costs.--
                      (A) In general.--To ensure proper storage of peanuts
                    for which a loan is made under this section, the
                    Secretary shall pay handling and other associated costs
                    (other than storage costs) incurred at the time at
                    which the peanuts are placed under loan, as determined
                    by the Secretary.
                      (B) Redemption and forfeiture.--The Secretary shall--
                              (i) require the repayment of handling and
                            other associated costs paid under subparagraph
                            (A) for all peanuts pledged as collateral for a
                            loan that is redeemed under this section; and
                              (ii) pay storage, handling, and other
                            associated costs for all peanuts pledged as
                            collateral that are forfeited under this
                            section.
              (5) Marketing.--A marketing association or cooperative may
            market peanuts for which a loan is made under this section in
            any manner that conforms to consumer needs, including the
            separation of peanuts by type and quality.
              (6) Reimbursable agreements and payment of administrative
            expenses.--The Secretary may implement any reimbursable
            agreements or provide for the payment of administrative
            expenses under this subsection only in a manner that is
            consistent with those activities in regard to other loan
            commodities.

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

      (a) In General.--For purposes of each of the 2013 through 2017 crop
    years, the loan rate for a marketing assistance loan under section 1201
    for a loan commodity shall be equal to the following:
              (1) In the case of wheat, $2.94 per bushel.
              (2) In the case of corn, $1.95 per bushel.
              (3) In the case of grain sorghum, $1.95 per bushel.
              (4) In the case of barley, $1.95 per bushel.
              (5) In the case of oats, $1.39 per bushel.
              (6) In the case of base quality of upland cotton, for the
            2013 and each subsequent crop year, the simple average of the
            adjusted prevailing world price for the 2 immediately preceding
            marketing years, as determined by the Secretary and announced
            October 1 preceding the next domestic plantings, but in no case
            less than $0.47 per pound or more than $0.52 per pound.
              (7) In the case of extra long staple cotton, $0.7977 per
            pound.
              (8) In the case of long grain rice, $6.50 per hundredweight.
              (9) In the case of medium grain rice, $6.50 per
            hundredweight.
              (10) In the case of soybeans, $5.00 per bushel.
              (11) In the case of other oilseeds, $10.09 per hundredweight
            for each of the following kinds of oilseeds:
                      (A) Sunflower seed.
                      (B) Rapeseed.
                      (C) Canola.
                      (D) Safflower.
                      (E) Flaxseed.
                      (F) Mustard seed.
                      (G) Crambe.
                      (H) Sesame seed.
                      (I) Other oilseeds designated by the Secretary.
              (12) In the case of dry peas, $5.40 per hundredweight.
              (13) In the case of lentils, $11.28 per hundredweight.
              (14) In the case of small chickpeas, $7.43 per hundredweight.
              (15) In the case of large chickpeas, $11.28 per
            hundredweight.
              (16) In the case of graded wool, $1.15 per pound.
              (17) In the case of nongraded wool, $0.40 per pound.
              (18) In the case of mohair, $4.20 per pound.
              (19) In the case of honey, $0.69 per pound.
              (20) In the case of peanuts, $355 per ton.
      (b) Single County Loan Rate for Other Oilseeds.--The Secretary shall
    establish a single loan rate in each county for each kind of other
    oilseeds described in subsection (a)(11).

    SEC. 1203. TERM OF LOANS.

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

    SEC. 1204. REPAYMENT OF LOANS.

      (a) General Rule.--The Secretary shall permit the producers on a farm
    to repay a marketing assistance loan under section 1201 for a loan
    commodity (other than upland cotton, long grain rice, medium grain
    rice, extra long staple cotton, peanuts and confectionery and each
    other kind of sunflower seed (other than oil sunflower seed)) at a rate
    that is the lesser of--
              (1) the loan rate established for the commodity under section
            1202, plus interest (determined in accordance with section 163
            of the Federal Agriculture Improvement and Reform Act of 1996
            (7 U.S.C. 7283));
              (2) a rate (as determined by the Secretary) that--
                      (A) is calculated based on average market prices for
                    the loan commodity during the preceding 30-day period;
                    and
                      (B) will minimize discrepancies in marketing loan
                    benefits across State boundaries and across county
                    boundaries; or
              (3) a rate that the Secretary may develop using alternative
            methods for calculating a repayment rate for a loan commodity
            that the Secretary determines will--
                      (A) minimize potential loan forfeitures;
                      (B) minimize the accumulation of stocks of the
                    commodity by the Federal Government;
                      (C) minimize the cost incurred by the Federal
                    Government in storing the commodity;
                      (D) allow the commodity produced in the United States
                    to be marketed freely and competitively, both
                    domestically and internationally; and
                      (E) minimize discrepancies in marketing loan benefits
                    across State boundaries and across county boundaries.
      (b) Repayment Rates for Upland Cotton, Long Grain Rice, and Medium
    Grain Rice.--The Secretary shall permit producers to repay a marketing
    assistance loan under section 1201 for upland cotton, long grain rice,
    and medium grain rice at a rate that is the lesser of--
              (1) the loan rate established for the commodity under section
            1202, plus interest (determined in accordance with section 163
            of the Federal Agriculture Improvement and Reform Act of 1996
            (7 U.S.C. 7283)); or
              (2) the prevailing world market price for the commodity, as
            determined and adjusted by the Secretary in accordance with
            this section.
      (c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a
    marketing assistance loan for extra long staple cotton shall be at the
    loan rate established for the commodity under section 1202, plus
    interest (determined in accordance with section 163 of the Federal
    Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
      (d) Prevailing World Market Price.--For purposes of this section and
    section 1207, the Secretary shall prescribe by regulation--
              (1) a formula to determine the prevailing world market price
            for each of upland cotton, long grain rice, and medium grain
            rice; and
              (2) a mechanism by which the Secretary shall announce
            periodically those prevailing world market prices.
      (e) Adjustment of Prevailing World Market Price for Upland Cotton,
    Long Grain Rice, and Medium Grain Rice.--
              (1) Rice.--The prevailing world market price for long grain
            rice and medium grain rice determined under subsection (d)
            shall be adjusted to United States quality and location.
              (2) Cotton.--The prevailing world market price for upland
            cotton determined under subsection (d)--
                      (A) shall be adjusted to United States quality and
                    location, with the adjustment to include--
                              (i) a reduction equal to any United States
                            Premium Factor for upland cotton of a quality
                            higher than Middling (M) 1\3/32\-inch; and
                              (ii) the average costs to market the
                            commodity, including average transportation
                            costs, as determined by the Secretary; and
                      (B) may be further adjusted, during the period
                    beginning on the date of enactment of this Act and
                    ending on July 31, 2018, if the Secretary determines
                    the adjustment is necessary--
                              (i) to minimize potential loan forfeitures;
                              (ii) to minimize the accumulation of stocks
                            of upland cotton by the Federal Government;
                              (iii) to ensure that upland cotton produced
                            in the United States can be marketed freely and
                            competitively, both domestically and
                            internationally; and
                              (iv) to ensure an appropriate transition
                            between current-crop and forward-crop price
                            quotations, except that the Secretary may use
                            forward-crop price quotations prior to July 31
                            of a marketing year only if--
                                      (I) there are insufficient current-
                                    crop price quotations; and
                                      (II) the forward-crop price quotation
                                    is the lowest such quotation available.
              (3) Guidelines for additional adjustments.--In making
            adjustments under this subsection, the Secretary shall
            establish a mechanism for determining and announcing the
            adjustments in order to avoid undue disruption in the United
            States market.
      (f) Repayment Rates for Confectionery and Other Kinds of Sunflower
    Seeds.--The Secretary shall permit the producers on a farm to repay a
    marketing assistance loan under section 1201 for confectionery and each
    other kind of sunflower seed (other than oil sunflower seed) at a rate
    that is the lesser of--
              (1) the loan rate established for the commodity under section
            1202, plus interest (determined in accordance with section 163
            of the Federal Agriculture Improvement and Reform Act of 1996
            (7 U.S.C. 7283)); or
              (2) the repayment rate established for oil sunflower seed.
      (g) Payment of Cotton Storage Costs.--Effective for each of the 2013
    through 2017 crop years, the Secretary shall make cotton storage
    payments available in the same manner, and at the same rates as the
    Secretary provided storage payments for the 2006 crop of cotton, except
    that the rates shall be reduced by 10 percent.
      (h) Repayment Rate for Peanuts.--The Secretary shall permit producers
    on a farm to repay a marketing assistance loan for peanuts under
    subsection (a) at a rate that is the lesser of--
              (1) the loan rate established for peanuts under subsection
            (b), plus interest (determined in accordance with section 163
            of the Federal Agriculture Improvement and Reform Act of 1996
            (7 U.S.C. 7283)); or
              (2) a rate that the Secretary determines will--
                      (A) minimize potential loan forfeitures;
                      (B) minimize the accumulation of stocks of peanuts by
                    the Federal Government;
                      (C) minimize the cost incurred by the Federal
                    Government in storing peanuts; and
                      (D) allow peanuts produced in the United States to be
                    marketed freely and competitively, both domestically
                    and internationally.
      (i) Authority to Temporarily Adjust Repayment Rates.--
              (1) Adjustment authority.--In the event of a severe
            disruption to marketing, transportation, or related
            infrastructure, the Secretary may modify the repayment rate
            otherwise applicable under this section for marketing
            assistance loans under section 1201 for a loan commodity.
              (2) Duration.--Any adjustment made under paragraph (1) in the
            repayment rate for marketing assistance loans for a loan
            commodity shall be in effect on a short-term and temporary
            basis, as determined by the Secretary.

    SEC. 1205. LOAN DEFICIENCY PAYMENTS.

      (a) Availability of Loan Deficiency Payments.--
              (1) In general.--Except as provided in subsection (d), the
            Secretary may make loan deficiency payments available to
            producers on a farm that, although eligible to obtain a
            marketing assistance loan under section 1201 with respect to a
            loan commodity, agree to forgo obtaining the loan for the
            commodity in return for loan deficiency payments under this
            section.
              (2) Unshorn pelts, hay, and silage.--
                      (A) Marketing assistance loans.--Subject to
                    subparagraph (B), nongraded wool in the form of unshorn
                    pelts and hay and silage derived from a loan commodity
                    are not eligible for a marketing assistance loan under
                    section 1201.
                      (B) Loan deficiency payment.--Effective for the 2013
                    through 2017 crop years, the Secretary may make loan
                    deficiency payments available under this section to
                    producers on a farm that produce unshorn pelts or hay
                    and silage derived from a loan commodity.
      (b) Computation.--A loan deficiency payment for a loan commodity or
    commodity referred to in subsection (a)(2) shall be equal to the
    product obtained by multiplying--
              (1) the payment rate determined under subsection (c) for the
            commodity; by
              (2) the quantity of the commodity produced by the eligible
            producers, excluding any quantity for which the producers
            obtain a marketing assistance loan under section 1201.
      (c) Payment Rate.--
              (1) In general.--In the case of a loan commodity, the payment
            rate shall be the amount by which--
                      (A) the loan rate established under section 1202 for
                    the loan commodity; exceeds
                      (B) the rate at which a marketing assistance loan for
                    the loan commodity may be repaid under section 1204.
              (2) Unshorn pelts.--In the case of unshorn pelts, the payment
            rate shall be the amount by which--
                      (A) the loan rate established under section 1202 for
                    ungraded wool; exceeds
                      (B) the rate at which a marketing assistance loan for
                    ungraded wool may be repaid under section 1204.
              (3) Hay and silage.--In the case of hay or silage derived
            from a loan commodity, the payment rate shall be the amount by
            which--
                      (A) the loan rate established under section 1202 for
                    the loan commodity from which the hay or silage is
                    derived; exceeds
                      (B) the rate at which a marketing assistance loan for
                    the loan commodity may be repaid under section 1204.
      (d) Exception for Extra Long Staple Cotton.--This section shall not
    apply with respect to extra long staple cotton.
      (e) Effective Date for Payment Rate Determination.--The Secretary
    shall determine the amount of the loan deficiency payment to be made
    under this section to the producers on a farm with respect to a
    quantity of a loan commodity or commodity referred to in subsection
    (a)(2) using the payment rate in effect under subsection (c) as of the
    date the producers request the payment.

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

      (a) Eligible Producers.--
              (1) In general.--Effective for the 2013 through 2017 crop
            years, in the case of a producer that would be eligible for a
            loan deficiency payment under section 1205 for wheat, barley,
            or oats, but that elects to use acreage planted to the wheat,
            barley, or oats for the grazing of livestock, the Secretary
            shall make a payment to the producer under this section if the
            producer enters into an agreement with the Secretary to forgo
            any other harvesting of the wheat, barley, or oats on that
            acreage.
              (2) Grazing of triticale acreage.--Effective for the 2013
            through 2017 crop years, with respect to a producer on a farm
            that uses acreage planted to triticale for the grazing of
            livestock, the Secretary shall make a payment to the producer
            under this section if the producer enters into an agreement
            with the Secretary to forgo any other harvesting of triticale
            on that acreage.
      (b) Payment Amount.--
              (1) In general.--The amount of a payment made under this
            section to a producer on a farm described in subsection (a)(1)
            shall be equal to the amount determined by multiplying--
                      (A) the loan deficiency payment rate determined under
                    section 1205(c) in effect, as of the date of the
                    agreement, for the county in which the farm is located;
                    by
                      (B) the payment quantity determined by multiplying--
                              (i) the quantity of the grazed acreage on the
                            farm with respect to which the producer elects
                            to forgo harvesting of wheat, barley, or oats;
                            and
                              (ii)(I) the payment yield in effect for the
                            calculation of price loss coverage under
                            subtitle A with respect to that loan commodity
                            on the farm; or
                              (II) in the case of a farm without a payment
                            yield for that loan commodity, an appropriate
                            yield established by the Secretary in a manner
                            consistent with section 1106(c) of this Act.
              (2) Grazing of triticale acreage.--The amount of a payment
            made under this section to a producer on a farm described in
            subsection (a)(2) shall be equal to the amount determined by
            multiplying--
                      (A) the loan deficiency payment rate determined under
                    section 1205(c) in effect for wheat, as of the date of
                    the agreement, for the county in which the farm is
                    located; by
                      (B) the payment quantity determined by multiplying--
                              (i) the quantity of the grazed acreage on the
                            farm with respect to which the producer elects
                            to forgo harvesting of triticale; and
                              (ii)(I) the payment yield in effect for the
                            calculation of price loss coverage under
                            subtitle A with respect to wheat on the farm;
                            or
                              (II) in the case of a farm without a payment
                            yield for wheat, an appropriate yield
                            established by the Secretary in a manner
                            consistent with section 1106(c) of this Act.
      (c) Time, Manner, and Availability of Payment.--
              (1) Time and manner.--A payment under this section shall be
            made at the same time and in the same manner as loan deficiency
            payments are made under section 1205.
              (2) Availability.--
                      (A) In general.--The Secretary shall establish an
                    availability period for the payments authorized by this
                    section.
                      (B) Certain commodities.--In the case of wheat,
                    barley, and oats, the availability period shall be
                    consistent with the availability period for the
                    commodity established by the Secretary for marketing
                    assistance loans authorized by this subtitle.
      (d) Prohibition on Crop Insurance Indemnity or Noninsured Crop
    Assistance.--A 2013 through 2017 crop of wheat, barley, oats, or
    triticale planted on acreage that a producer elects, in the agreement
    required by subsection (a), to use for the grazing of livestock in lieu
    of any other harvesting of the crop shall not be eligible for an
    indemnity under a policy or plan of insurance authorized under the
    Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop
    assistance under section 196 of the Federal Agriculture Improvement and
    Reform Act of 1996 (7 U.S.C. 7333).

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

      (a) Special Import Quota.--
              (1) Definition of special import quota.--In this subsection,
            the term ``special import quota'' means a quantity of imports
            that is not subject to the over-quota tariff rate of a tariff-
            rate quota.
              (2) Establishment.--
                      (A) In general.--The President shall carry out an
                    import quota program during the period beginning on
                    August 1, 2013, and ending on July 31, 2018, as
                    provided in this subsection.
                      (B) Program requirements.--Whenever the Secretary
                    determines and announces that for any consecutive 4-
                    week period, the Friday through Thursday average price
                    quotation for the lowest-priced United States growth,
                    as quoted for Middling (M) 1\3/32\-inch cotton,
                    delivered to a definable and significant international
                    market, as determined by the Secretary, exceeds the
                    prevailing world market price, there shall immediately
                    be in effect a special import quota.
              (3) Quantity.--The quota shall be equal to the consumption
            during a 1-week period of cotton by domestic mills at the
            seasonally adjusted average rate of the most recent 3 months
            for which official data of the Department of Agriculture are
            available or, in the absence of sufficient data, as estimated
            by the Secretary.
              (4) Application.--The quota shall apply to upland cotton
            purchased not later than 90 days after the date of the
            Secretary's announcement under paragraph (2) and entered into
            the United States not later than 180 days after that date.
              (5) Overlap.--A special quota period may be established that
            overlaps any existing quota period if required by paragraph
            (2), except that a special quota period may not be established
            under this subsection if a quota period has been established
            under subsection (b).
              (6) Preferential tariff treatment.--The quantity under a
            special import quota shall be considered to be an in-quota
            quantity for purposes of--
                      (A) section 213(d) of the Caribbean Basin Economic
                    Recovery Act (19 U.S.C. 2703(d));
                      (B) section 204 of the Andean Trade Preference Act
                    (19 U.S.C. 3203);
                      (C) section 503(d) of the Trade Act of 1974 (19
                    U.S.C. 2463(d)); and
                      (D) General Note 3(a)(iv) to the Harmonized Tariff
                    Schedule.
              (7) Limitation.--The quantity of cotton entered into the
            United States during any marketing year under the special
            import quota established under this subsection may not exceed
            the equivalent of 10 week's consumption of upland cotton by
            domestic mills at the seasonally adjusted average rate of the 3
            months immediately preceding the first special import quota
            established in any marketing year.
      (b) Limited Global Import Quota for Upland Cotton.--
              (1) Definitions.--In this subsection:
                      (A) Demand.--The term ``demand'' means--
                              (i) the average seasonally adjusted annual
                            rate of domestic mill consumption of cotton
                            during the most recent 3 months for which
                            official data of the Department of Agriculture
                            are available or, in the absence of sufficient
                            data, as estimated by the Secretary; and
                              (ii) the larger of--
                                      (I) average exports of upland cotton
                                    during the preceding 6 marketing years;
                                    or
                                      (II) cumulative exports of upland
                                    cotton plus outstanding export sales
                                    for the marketing year in which the
                                    quota is established.
                      (B) 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.
                      (C) Supply.--The term ``supply'' means, using the
                    latest official data of the Department of Agriculture--
                              (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.
              (2) Program.--The President shall carry out an import quota
            program that provides that whenever the Secretary determines
            and announces that the average price of the base quality of
            upland cotton, as determined by the Secretary, in the
            designated spot markets for a month exceeded 130 percent of the
            average price of the quality of cotton in the markets for the
            preceding 36 months, notwithstanding any other provision of
            law, there shall immediately be in effect a limited global
            import quota subject to the following conditions:
                      (A) Quantity.--The quantity of the quota shall be
                    equal to 21 days of domestic mill consumption of upland
                    cotton at the seasonally adjusted average rate of the
                    most recent 3 months for which official data of the
                    Department of Agriculture are available or, in the
                    absence of sufficient data, as estimated by the
                    Secretary.
                      (B) Quantity if prior quota.--If a quota has been
                    established under this subsection during the preceding
                    12 months, the quantity of the quota next established
                    under this subsection shall be the smaller of 21 days
                    of domestic mill consumption calculated under
                    subparagraph (A) or the quantity required to increase
                    the supply to 130 percent of the demand.
                      (C) Preferential tariff treatment.--The quantity
                    under a limited global import quota shall be considered
                    to be an in-quota quantity for purposes of--
                              (i) section 213(d) of the Caribbean Basin
                            Economic Recovery Act (19 U.S.C. 2703(d));
                              (ii) section 204 of the Andean Trade
                            Preference Act (19 U.S.C. 3203);
                              (iii) section 503(d) of the Trade Act of 1974
                            (19 U.S.C. 2463(d)); and
                              (iv) General Note 3(a)(iv) to the Harmonized
                            Tariff Schedule.
                      (D) Quota entry period.--When a quota is established
                    under this subsection, cotton may be entered under the
                    quota during the 90-day period beginning on the date
                    the quota is established by the Secretary.
              (3) No overlap.--Notwithstanding paragraph (2), a quota
            period may not be established that overlaps an existing quota
            period or a special quota period established under subsection
            (a).
      (c) Economic Adjustment Assistance to Users of Upland Cotton.--
              (1) In general.--Subject to paragraph (2), the Secretary
            shall, on a monthly basis, make economic adjustment assistance
            available to domestic users of upland cotton in the form of
            payments for all documented use of that upland cotton during
            the previous monthly period regardless of the origin of the
            upland cotton.
              (2) Value of assistance.--Effective beginning on August 1,
            2012, the value of the assistance provided under paragraph (1)
            shall be 3 cents per pound.
              (3) Allowable purposes.--Economic adjustment assistance under
            this subsection shall be made available only to domestic users
            of upland cotton that certify that the assistance shall be used
            only to acquire, construct, install, modernize, develop,
            convert, or expand land, plant, buildings, equipment,
            facilities, or machinery.
              (4) Review or audit.--The Secretary may conduct such review
            or audit of the records of a domestic user under this
            subsection as the Secretary determines necessary to carry out
            this subsection.
              (5) Improper use of assistance.--If the Secretary determines,
            after a review or audit of the records of the domestic user,
            that economic adjustment assistance under this subsection was
            not used for the purposes specified in paragraph (3), the
            domestic user shall be--
                      (A) liable for the repayment of the assistance to the
                    Secretary, plus interest, as determined by the
                    Secretary; and
                      (B) ineligible to receive assistance under this
                    subsection for a period of 1 year following the
                    determination of the Secretary.

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

      (a) Competitiveness Program.--Notwithstanding any other provision of
    law, during the period beginning on the date of enactment of this Act
    through July 31, 2018, the Secretary shall carry out a program--
              (1) to maintain and expand the domestic use of extra long
            staple cotton produced in the United States;
              (2) to increase exports of extra long staple cotton produced
            in the United States; and
              (3) to ensure that extra long staple cotton produced in the
            United States remains competitive in world markets.
      (b) Payments Under Program; Trigger.--Under the program, the
    Secretary shall make payments available under this section whenever--
              (1) for a consecutive 4-week period, the world market price
            for the lowest priced competing growth of extra long staple
            cotton (adjusted to United States quality and location and for
            other factors affecting the competitiveness of such cotton), as
            determined by the Secretary, is below the prevailing United
            States price for a competing growth of extra long staple
            cotton; and
              (2) the lowest priced competing growth of extra long staple
            cotton (adjusted to United States quality and location and for
            other factors affecting the competitiveness of such cotton), as
            determined by the Secretary, is less than 134 percent of the
            loan rate for extra long staple cotton.
      (c) Eligible Recipients.--The Secretary shall make payments available
    under this section to domestic users of extra long staple cotton
    produced in the United States and exporters of extra long staple cotton
    produced in the United States that enter into an agreement with the
    Commodity Credit Corporation to participate in the program under this
    section.
      (d) Payment Amount.--Payments under this section shall be based on
    the amount of the difference in the prices referred to in subsection
    (b)(1) during the fourth week of the consecutive 4-week period
    multiplied by the amount of documented purchases by domestic users and
    sales for export by exporters made in the week following such a
    consecutive 4-week period.

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

      (a) High Moisture Feed Grains.--
              (1) Definition of high moisture state.--In this subsection,
            the term ``high moisture state'' means corn or grain sorghum
            having a moisture content in excess of Commodity Credit
            Corporation standards for marketing assistance loans made by
            the Secretary under section 1201.
              (2) Recourse loans available.--For each of the 2013 through
            2017 crops of corn and grain sorghum, the Secretary shall make
            available recourse loans, as determined by the Secretary, to
            producers on a farm that--
                      (A) normally harvest all or a portion of their crop
                    of corn or grain sorghum in a high moisture state;
                      (B) present--
                              (i) certified scale tickets from an
                            inspected, certified commercial scale,
                            including a licensed warehouse, feedlot, feed
                            mill, distillery, or other similar entity
                            approved by the Secretary, pursuant to
                            regulations issued by the Secretary; or
                              (ii) field or other physical measurements of
                            the standing or stored crop in regions of the
                            United States, as determined by the Secretary,
                            that do not have certified commercial scales
                            from which certified scale tickets may be
                            obtained within reasonable proximity of harvest
                            operation;
                      (C) certify that the producers on the farm were the
                    owners of the feed grain at the time of delivery to,
                    and that the quantity to be placed under loan under
                    this subsection was in fact harvested on the farm and
                    delivered to, a feedlot, feed mill, or commercial or
                    on-farm high-moisture storage facility, or to a
                    facility maintained by the users of corn and grain
                    sorghum in a high moisture state; and
                      (D) comply with deadlines established by the
                    Secretary for harvesting the corn or grain sorghum and
                    submit applications for loans under this subsection
                    within deadlines established by the Secretary.
              (3) Eligibility of acquired feed grains.--A loan under this
            subsection shall be made on a quantity of corn or grain sorghum
            of the same crop acquired by the producer equivalent to a
            quantity determined by multiplying--
                      (A) the acreage of the corn or grain sorghum in a
                    high moisture state harvested on the farm of the
                    producer; by
                      (B) the lower of the farm program payment yield used
                    to make payments under subtitle A or the actual yield
                    on a field, as determined by the Secretary, that is
                    similar to the field from which the corn or grain
                    sorghum was obtained.
      (b) Recourse Loans Available for Seed Cotton.--For each of the 2013
    through 2017 crops of upland cotton and extra long staple cotton, the
    Secretary shall make available recourse seed cotton loans, as
    determined by the Secretary, on any production.
      (c) Repayment Rates.--Repayment of a recourse loan made under this
    section shall be at the loan rate established for the commodity by the
    Secretary, plus interest (determined in accordance with section 163 of
    the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
    7283)).

    SEC. 1210. ADJUSTMENTS OF LOANS.

      (a) Adjustment Authority.--Subject to subsection (e), the Secretary
    may make appropriate adjustments in the loan rates for any loan
    commodity (other than cotton) for differences in grade, type, quality,
    location, and other factors.
      (b) Manner of Adjustment.--The adjustments under subsection (a)
    shall, to the maximum extent practicable, be made in such a manner that
    the average loan level for the commodity will, on the basis of the
    anticipated incidence of the factors, be equal to the level of support
    determined in accordance with this subtitle and subtitle C.
      (c) Adjustment on County Basis.--
              (1) In general.--The Secretary may establish loan rates for a
            crop for producers in individual counties in a manner that
            results in the lowest loan rate being 95 percent of the
            national average loan rate, if those loan rates do not result
            in an increase in outlays.
              (2) Prohibition.--Adjustments under this subsection shall not
            result in an increase in the national average loan rate for any
            year.
      (d) Adjustment in Loan Rate for Cotton.--
              (1) In general.--The Secretary may make appropriate
            adjustments in the loan rate for cotton for differences in
            quality factors.
              (2) Types of adjustments.--Loan rate adjustments under
            paragraph (1) may include--
                      (A) the use of non-spot market price data, in
                    addition to spot market price data, that would enhance
                    the accuracy of the price information used in
                    determining quality adjustments under this subsection;
                      (B) adjustments in the premiums or discounts
                    associated with upland cotton with a staple length of
                    33 or above due to micronaire with the goal of
                    eliminating any unnecessary artificial splits in the
                    calculations of the premiums or discounts; and
                      (C) such other adjustments as the Secretary
                    determines appropriate, after consultations conducted
                    in accordance with paragraph (3).
              (3) Consultation with private sector.--
                      (A) Prior to revision.--In making adjustments to the
                    loan rate for cotton (including any review of the
                    adjustments) as provided in this subsection, the
                    Secretary shall consult with representatives of the
                    United States cotton industry.
                      (B) Inapplicability of federal advisory committee
                    act.--The Federal Advisory Committee Act (5 U.S.C.
                    App.) shall not apply to consultations under this
                    subsection.
              (4) Review of adjustments.--The Secretary may review the
            operation of the upland cotton quality adjustments implemented
            pursuant to this subsection and may make further adjustments to
            the administration of the loan program for upland cotton, by
            revoking or revising any adjustment taken under paragraph (2).
      (e) Rice.--The Secretary shall not make adjustments in the loan rates
    for long grain rice and medium grain rice, except for differences in
    grade and quality (including milling yields).

                               Subtitle C--Sugar

    SEC. 1301. SUGAR PROGRAM.

      (a) Continuation of Current Program and Loan Rates.--
              (1) Sugarcane.--Section 156(a)(5) of the Federal Agriculture
            Improvement and Reform Act of 1996 (7 U.S.C. 7272(a)(5)) is
            amended by striking ``the 2012 crop year'' and inserting ``each
            of the 2012 through 2017 crop years''.
              (2) Sugar beets.--Section 156(b)(2) of the Federal
            Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
            7272(b)(2)) is amended by striking ``2012'' and inserting
            ``2017''.
              (3) Effective period.--Section 156(i) of the Federal
            Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
            7272(i)) is amended by striking ``2012'' and inserting
            ``2017''.
      (b) Flexible Marketing Allotments for Sugar.--
              (1) Sugar estimates.--Section 359b(a)(1) of the Agricultural
            Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by
            striking ``2012'' and inserting ``2017''.
              (2) Effective period.--Section 359l(a) of the Agricultural
            Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by
            striking ``2012'' and inserting ``2017''.

                               Subtitle D--Dairy

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

    SEC. 1401. DEFINITIONS.

      In this part:
              (1) Actual dairy producer margin.--The term ``actual dairy
            producer margin'' means the difference between the all-milk
            price and the average feed cost, as calculated under section
            1402.
              (2) All-milk price.--The term ``all-milk price'' means the
            average price received, per hundredweight of milk, by dairy
            producers for all milk sold to plants and dealers in the United
            States, as determined by the Secretary.
              (3) Annual production history.--The term ``annual production
            history'' means the production history determined for a
            participating dairy producer under section 1413(b) whenever the
            dairy producer purchases supplemental margin protection.
              (4) Average feed cost.--The term ``average feed cost'' means
            the average cost of feed used by a dairy operation to produce a
            hundredweight of milk, determined under section 1402 using the
            sum of the following:
                      (A) The product determined by multiplying 1.0728 by
                    the price of corn per bushel.
                      (B) The product determined by multiplying 0.00735 by
                    the price of soybean meal per ton.
                      (C) The product determined by multiplying 0.0137 by
                    the price of alfalfa hay per ton.
              (5) Basic production history.--The term ``basic production
            history'' means the production history determined for a
            participating dairy producer under section 1413(a) for
            provision of basic margin protection.
              (6) Consecutive two-month period.--The term ``consecutive
            two-month period'' refers to the two-month period consisting of
            the months of January and February, March and April, May and
            June, July and August, September and October, or November and
            December, respectively.
              (7) Dairy producer.--
                      (A) In general.--Subject to subparagraph (B), the
                    term ``dairy producer'' means an individual or entity
                    that directly or indirectly (as determined by the
                    Secretary)--
                              (i) shares in the risk of producing milk; and
                              (ii) makes contributions (including land,
                            labor, management, equipment, or capital) to
                            the dairy operation of the individual or entity
                            that are at least commensurate with the share
                            of the individual or entity of the proceeds of
                            the operation.
                      (B) Additional ownership structures.--The Secretary
                    shall determine additional ownership structures to be
                    covered by the definition of dairy producer.
              (8) Handler.--
                      (A) In general.--The term ``handler'' means the
                    initial individual or entity making payment to a dairy
                    producer for milk produced in the United States and
                    marketed for commercial use.
                      (B) Producer-handler.--The term includes a
                    ``producer-handler'' when the producer satisfies the
                    definition in subparagraph (A).
              (9) Margin protection program.--The term ``margin protection
            program'' means the dairy producer margin protection program
            required by subpart A.
              (10) Participating dairy producer.--The term ``participating
            dairy producer'' means a dairy producer that--
                      (A) signs up under section 1412 to participate in the
                    margin protection program under subpart A; and
                      (B) as a result, also participates in the
                    stabilization program under subpart B.
              (11) Stabilization program.--The term ``stabilization
            program'' means the dairy market stabilization program required
            by subpart B for all participating dairy producers.
              (12) Stabilization program base.--The term ``stabilization
            program base'', with respect to a participating dairy producer,
            means the stabilization program base calculated for the
            producer under section 1431(b).
              (13) United states.--The term ``United States'', in a
            geographical sense, means the 50 States, the District of
            Columbia, American Samoa, Guam, the Commonwealth of the
            Northern Mariana Islands, the Commonwealth of Puerto Rico, the
            Virgin Islands of the United States, and any other territory or
            possession of the United States.

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

      (a) Calculation of Average Feed Cost.--The Secretary shall calculate
    the national average feed cost for each month using the following data:
              (1) The price of corn for a month shall be the price received
            during that month by farmers in the United States for corn, as
            reported in the monthly Agricultural Prices report by the
            Secretary.
              (2) The price of soybean meal for a month shall be the
            central Illinois price for soybean meal, as reported in the
            Market News-Monthly Soybean Meal Price Report by the Secretary.
              (3) The price of alfalfa hay for a month shall be the price
            received during that month by farmers in the United States for
            alfalfa hay, as reported in the monthly Agricultural Prices
            report by the Secretary.
      (b) Calculation of Actual Dairy Producer Margins.--
              (1) Margin protection program.--For use in the margin
            protection program under subpart A, the Secretary shall
            calculate the actual dairy producer margin for each consecutive
            two-month period by subtracting--
                      (A) the average feed cost for that consecutive two-
                    month period, determined in accordance with subsection
                    (a); from
                      (B) the all-milk price for that consecutive two-month
                    period.
              (2) Stabilization program.--For use in the stabilization
            program under subpart B, the Secretary shall calculate each
            month the actual dairy producer margin for the preceding month
            by subtracting--
                      (A) the average feed cost for that preceding month,
                    determined in accordance with subsection (a); from
                      (B) the all-milk price for that preceding month.
              (3) Time for calculations.--The calculations required by
            paragraphs (1) and (2) shall be made as soon as practicable
            each month using the full month price of the applicable
            reference month, but in no case shall the calculation be made
            later than the last business day of the month.

              Subpart A--Dairy Producer Margin Protection Program

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

      The Secretary shall establish and administer a dairy producer margin
    protection program for the purpose of protecting dairy producer income
    by paying participating dairy producers--
              (1) basic margin protection payments when actual dairy
            producer margins are less than the threshold levels for such
            payments; and
              (2) supplemental margin protection payments if purchased by a
            participating dairy producer.

    SEC. 1412. PARTICIPATION OF DAIRY PRODUCERS IN MARGIN PROTECTION
                        PROGRAM.

      (a) Eligibility.--All dairy producers in the United States are
    eligible to participate in the margin protection program, except that a
    dairy producer must sign up with the Secretary before the producer may
    receive--
              (1) basic margin protection payments under section 1414; and
              (2) if the dairy producer purchases supplemental margin
            protection under section 1415, supplemental margin protection
            payments under such section.
      (b) Sign-up Process.--
              (1) In general.--The Secretary shall allow all interested
            dairy producers to sign up to participate in the margin
            protection program. The Secretary shall specify the manner and
            form by which a dairy producer must sign up to participate in
            the margin protection program.
              (2) Treatment of multi-producer operations.--If a dairy
            operation consists of more than one dairy producer, all of the
            dairy producers of the operation shall be treated as a single
            dairy producer for purposes of--
                      (A) registration to receive basic margin protection
                    and purchase supplemental margin protection;
                      (B) payment of the administrative fee under
                    subsection (e) and producer premiums under section
                    1415; and
                      (C) participation in the stabilization program under
                    subpart B.
              (3) Treatment of producers with multiple dairy operations.--
            If a dairy producer operates two or more dairy operations, each
            dairy operation of the producer shall require a separate
            registration to receive basic margin protection and purchase
            supplemental margin protection. Only those dairy operations so
            registered shall be subject to the stabilization program.
      (c) Time for Sign up.--
              (1) Existing dairy producers.--During the one-year period
            beginning on the date of the initiation of the sign-up period
            for the margin protection program, a dairy producer that is
            actively engaged in a dairy operation as of such date may sign
            up with the Secretary--
                      (A) to receive basic margin protection; and
                      (B) if the producer elects, to purchase supplemental
                    margin protection.
              (2) New entrants.--A dairy producer that has no existing
            interest in a dairy operation as of the date of the initiation
            of the sign-up period for the margin protection program, but
            that, after such date, establishes a new dairy operation, may
            sign up with the Secretary during the one year period beginning
            on the date on which the dairy operation first markets milk
            commercially--
                      (A) to receive basic margin protection; and
                      (B) if the producer elects, to purchase supplemental
                    margin protection.
      (d) Retroactivity Provision.--
              (1) Notice of availability of retroactive protection.--Not
            later than 30 days after the effective date of this subtitle,
            the Secretary shall publish a notice in the Federal Register to
            inform dairy producers of the availability of retroactive basic
            margin protection and retroactive supplemental margin
            protection, subject to the condition that interested producers
            must file a notice of intent (in such form and manner as the
            Secretary specifies in the Federal Register notice)--
                      (A) to participate in the margin protection program
                    and receive basic margin protection; and
                      (B) at the election of the producer under paragraph
                    (3), to also obtain supplemental margin protection.
              (2) Retroactive basic margin protection.--
                      (A) Availability.--If a dairy producer files a notice
                    of intent under paragraph (1) to participate in the
                    margin protection program before the initiation of the
                    sign-up period for the margin protection program and
                    subsequently signs up for the margin protection
                    program, the producer shall receive basic margin
                    protection retroactive to the effective date of this
                    subtitle.
                      (B) Duration.--Retroactive basic margin protection
                    under this paragraph for a dairy producer shall apply
                    from the effective date of this subtitle until the date
                    on which the producer signs up for the margin
                    protection program.
              (3) Retroactive supplemental margin protection.--
                      (A) Availability.--Subject to subparagraphs (B) and
                    (C), if a dairy producer files a notice of intent under
                    paragraph (1) to participate in the margin protection
                    program and obtain supplemental margin protection and
                    subsequently signs up for the margin protection
                    program, the producer shall receive supplemental margin
                    protection, in addition to the basic margin protection
                    under paragraph (2), retroactive to the effective date
                    of this subtitle.
                      (B) Deadline for submission.--A notice of intent to
                    obtain retroactive supplemental margin protection must
                    be filed with the Secretary no later than the earlier
                    of the following:
                              (i) 150 days after the date on which the
                            Secretary publishes the notice in the Federal
                            Register required by paragraph (1).
                              (ii) The date on which the Secretary
                            initiates the sign up period for the margin
                            protection program.
                      (C) Election of coverage level and percentage of
                    coverage.--To be sufficient to obtain retroactive
                    supplemental margin protection, the notice of intent to
                    participate filed by a dairy producer must specify--
                              (i) a selected coverage level that is higher,
                            in any increment of $0.50, than the payment
                            threshold for basic margin protection specified
                            in section 1414(b), but not to exceed $6.00;
                            and
                              (ii) the percentage of coverage, subject to
                            limits imposed in section 1415(c).
                      (D) Duration.--The coverage level and percentage
                    specified in the notice of intent to participate filed
                    by a dairy producer shall apply from the effective date
                    of this subtitle until the later of the following:
                              (i) October 1, 2013.
                              (ii) The date on which the Secretary
                            initiates the sign-up period for the margin
                            protection program.
              (4) Notice of intent and obligation to participate in margin
            protection program.--In no way does filing a notice of intent
            under this subsection obligate a dairy producer to sign up for
            the margin protection program once the program rules are final,
            but if a producer does file a notice of intent and subsequently
            signs up for the margin protection program, that dairy producer
            is obligated to pay fees and premiums for any retroactive basic
            margin protection or retroactive supplemental margin protection
            selected in the notice of intent.
      (e) Administrative Fee.--
              (1) Administrative fee required.--A dairy producer shall pay
            an administrative fee under this subsection to sign up to
            participate in the margin protection program. The participating
            dairy producer shall pay the administrative fee annually
            thereafter to continue to participate in the margin protection
            program.
              (2) Fee amount.--The administrative fee for a participating
            dairy producer for a calendar year is based on the pounds of
            milk (in millions) marketed by the dairy producer in the
            previous calendar year, as follows:

    ------------------------------------------------------------------------
       Pounds Marketed (in millions)                  Admin. Fee
    ------------------------------------------------------------------------
                     less than 1                                 $100
                         1 to 10                                 $250
              more than 10 to 40                                 $500
                    more than 40                                $1000
    ------------------------------------------------------------------------

              (3) Deposit of fees.--All administrative fees collected under
            this subsection shall be credited to the fund or account used
            to cover the costs incurred to administer the margin protection
            program and the stabilization program and shall be available to
            the Secretary, without further appropriation and until
            expended, for use or transfer as provided in paragraph (4).
              (4) Use of fees.--The Secretary shall use administrative fees
            collected under this subsection--
                      (A) to cover administrative costs of the margin
                    protection program and stabilization program; and
                      (B) to the extent funds remain available after
                    operation of subparagraphs (A), to cover costs of the
                    Department of Agriculture relating to reporting of
                    dairy market news and to carry out section 273 of the
                    Agricultural Marketing Act of 1946 (7 U.S.C. 1637b).
      (f) Reconstitution.--The Secretary shall prohibit a dairy producer
    from reconstituting a dairy operation for the sole purpose of the dairy
    producer--
              (1) receiving basic margin protection;
              (2) purchasing supplemental margin protection; or
              (3) avoiding participation in the stabilization program.
      (g) Priority Consideration.--A dairy operation that participates in
    the margin protection program shall be eligible to participate in the
    livestock gross margin for dairy program under the Federal Crop
    Insurance Act (7 U.S.C. 1501 et seq.) only after operations that are
    not participating in the production margin protection program are
    enrolled.

    SEC. 1413. PRODUCTION HISTORY OF PARTICIPATING DAIRY PRODUCERS.

      (a) Production History for Basic Margin Protection.--
              (1) Determination required.--For purposes of providing basic
            margin protection, the Secretary shall determine the basic
            production history of the dairy operation of each participating
            dairy producer in the margin protection program.
              (2) Calculation.--Except as provided in paragraph (3), the
            basic production history of a participating dairy producer for
            basic margin protection is equal to the highest annual milk
            marketings of the dairy producer during any one of the three
            calendar years immediately preceding the calendar year in which
            the dairy producer first signed up to participate in the margin
            protection program.
              (3) Election by new producers.--If a participating dairy
            producer has been in operation for less than a year, the dairy
            producer shall elect one of the following methods for the
            Secretary to determine the basic production history of the
            dairy producer:
                      (A) The volume of the actual milk marketings for the
                    months the dairy producer has been in operation
                    extrapolated to a yearly amount.
                      (B) An estimate of the actual milk marketings of the
                    dairy producer based on the herd size of the producer
                    relative to the national rolling herd average data
                    published by the Secretary.
              (4) No change in production history for basic margin
            protection.--Once the basic production history of a
            participating dairy producer is determined under paragraph (2)
            or (3), the basic production history shall not be subsequently
            changed for purposes of determining the amount of any basic
            margin protection payments for the dairy producer made under
            section 1414.
      (b) Annual Production History for Supplemental Margin Protection.--
              (1) Determination required.--For purposes of providing
            supplemental margin protection for a participating dairy
            producer that purchases supplemental margin protection for a
            year under section 1415, the Secretary shall determine the
            annual production history of the dairy operation of the dairy
            producer under paragraph (2).
              (2) Calculation.--The annual production history of a
            participating dairy producer for a year is equal to the actual
            milk marketings of the dairy producer during the preceding
            calendar year.
              (3) New producers.--Subsection (a)(3) shall apply with
            respect to determining the annual production history of a
            participating dairy producer that has been in operation for
            less than a year.
      (c) Required Information.--A participating dairy producer shall
    provide all information that the Secretary may require in order to
    establish--
              (1) the basic production history of the dairy operation of
            the dairy producer under subsection (a); and
              (2) the production history of the dairy operation of the
            dairy producer whenever the producer purchases supplemental
            margin protection under section 1415.
      (d) Transfer of Production Histories.--
              (1) Transfer by sale or lease.--In promulgating the rules to
            initiate the margin protection program, the Secretary shall
            specify the conditions under which and the manner by which the
            production history of a dairy operation may be transferred by
            sale or lease.
              (2) Coverage level.--
                      (A) Basic margin protection.--A purchaser or lessee
                    to whom the Secretary transfers a basic production
                    history under this subsection shall not obtain a
                    different level of basic margin protection than the
                    basic margin protection coverage held by the seller or
                    lessor from whom the transfer was obtained.
                      (B) Supplemental margin protection.--A purchaser or
                    lessee to whom the Secretary transfers an annual
                    production history under this subsection shall not
                    obtain a different level of supplemental margin
                    protection coverage than the supplemental margin
                    protection coverage in effect for the seller or lessor
                    from whom the transfer was obtained for the calendar
                    year in which the transfer was made.
      (e) Movement and Transfer of Production History.--
              (1) Movement and transfer authorized.--Subject to paragraph
            (2), if a dairy producer moves from one location to another
            location, the dairy producer may maintain the basic production
            history and annual production history associated with the
            operation.
              (2) Notification requirement.--A dairy producer shall notify
            the Secretary of any move of a dairy operation under paragraph
            (1).
              (3) Subsequent occupation of vacated location.--A party
            subsequently occupying a dairy operation location vacated as
            described in paragraph (1) shall have no interest in the basic
            production history or annual production history previously
            associated with the operation at such location.

    SEC. 1414. BASIC MARGIN PROTECTION.

      (a) Eligibility.--All participating dairy producers are eligible to
    receive basic margin protection under the margin protection program.
      (b) Payment Threshold.--Participating dairy producers shall receive a
    basic margin protection payment whenever the average actual dairy
    producer margin for a consecutive two-month period is less than $4.00
    per hundredweight of milk.
      (c) Basic Margin Protection Payment.--
              (1) Payment required.--The Secretary shall make a basic
            margin protection payment to each participating dairy producer
            whenever such a payment is required by subsection (b).
              (2) Amount of payment.--The basic margin protection payment
            for the dairy operation of a participating dairy producer for a
            consecutive two-month period shall be determined as follows:
                      (A) The Secretary shall calculate the difference
                    between the average actual dairy producer margin for
                    the consecutive two-month period and $4.00, except
                    that, if the difference is more than $4.00, the
                    Secretary shall use $4.00.
                      (B) The Secretary shall multiply the amount under
                    subparagraph (A) by the lesser of the following:
                              (i) 80 percent of the production history of
                            the dairy producer, divided by six.
                              (ii) The actual amount of milk marketed by
                            the dairy operation of the dairy producer
                            during the consecutive two-month period.

    SEC. 1415. SUPPLEMENTAL MARGIN PROTECTION.

      (a) Election of Supplemental Margin Protection.--Supplemental margin
    protection is available only on an annual basis. A participating dairy
    producer may annually purchase supplemental margin protection to
    protect, during the calendar year for which purchased, a higher level
    of the income of a participating dairy producer than the income level
    guaranteed by basic margin protection under section 1414.
      (b) Selection of Payment Threshold.--A participating dairy producer
    purchasing supplemental margin protection for a year shall elect a
    coverage level that is higher, in any increment of $0.50, than the
    payment threshold for basic margin protection specified in section
    1414(b), but not to exceed $8.00.
      (c) Selection of Coverage Percentage.--A participating dairy producer
    purchasing supplemental margin protection for a year shall elect a
    percentage of coverage equal to not more than 90 percent, nor less than
    25 percent, of the annual production history of the dairy operation of
    the participating dairy producer.
      (d) Producer Premiums for Supplemental Margin Protection.--
              (1) Premiums required.--A participating dairy producer that
            purchases supplemental margin protection shall pay an annual
            premium equal to the product obtained by multiplying--
                      (A) the percentage selected by the dairy producer
                    under subsection (c);
                      (B) the annual production history of the dairy
                    producer; and
                      (C) the premium per hundredweight of milk, as
                    specified in the applicable table under paragraph (2)
                    or (3).
              (2) Premium per hundredweight for first 4 million pounds of
            production.--For the first 4,000,000 pounds of milk marketings
            included in the annual production history of a participating
            dairy producer, the premium per hundredweight corresponding to
            each coverage level specified in the following table is as
            follows:

    ------------------------------------------------------------------------
               Coverage Level                      Premium per Cwt.
    ------------------------------------------------------------------------
                           $4.50                                $0.01
                           $5.00                               $0.025
                           $5.50                                $0.04
                           $6.00                               $0.065
                           $6.50                                $0.09
                           $7.00                               $0.434
                           $7.50                               $0.590
                           $8.00                               $0.922
    ------------------------------------------------------------------------

              (3) Premium per hundredweight for production in excess of 4
            million pounds.--For milk marketings in excess of 4,000,000
            pounds included in the annual production history of a
            participating dairy producer, the premium per hundredweight
            corresponding to each coverage level is as follows:

    ------------------------------------------------------------------------
               Coverage Level                      Premium per Cwt.
    ------------------------------------------------------------------------
                           $4.50                               $0.015
                           $5.00                               $0.036
                           $5.50                               $0.081
                           $6.00                               $0.155
                           $6.50                               $0.230
                           $7.00                               $0.434
                           $7.50                               $0.590
                           $8.00                               $0.922
    ------------------------------------------------------------------------

              (4) Time for payment.--In promulgating the rules to initiate
            the margin protection program, the Secretary shall provide more
            than one method by which a participating dairy producer that
            purchases supplemental margin protection for a calendar year
            may pay the premium under this subsection for that year that
            maximizes producer payment flexibility and program integrity.
      (e) Producer's Premium Obligations.--
              (1) Pro-ration of premium for new producers.--A dairy
            producer described in section 1412(c)(2) that purchases
            supplemental margin protection for a calendar year after the
            start of the calendar year shall pay a pro-rated premium for
            that calendar year based on the portion of the calendar year
            for which the producer purchases the coverage.
              (2) Legal obligation.--A participating dairy producer that
            purchases supplemental margin protection for a calendar year
            shall be legally obligated to pay the applicable premium for
            that calendar year, except that, if the dairy producer retires,
            the producer may request that Secretary cancel the supplemental
            margin protection if the producer has terminated the dairy
            operation entirely and certifies under oath that the producer
            will not be actively engaged in any dairy operation for at
            least the next seven years.
      (f) Supplemental Payment Threshold.--A participating dairy producer
    with supplemental margin protection shall receive a supplemental margin
    protection payment whenever the average actual dairy producer margin
    for a consecutive two-month period is less than the coverage level
    threshold selected by the dairy producer under subsection (b).
      (g) Supplemental Margin Protection Payments.--
              (1) In general.--The supplemental margin protection payment
            for a participating dairy producer is in addition to the basic
            margin protection payment.
              (2) Amount of payment.--The supplemental margin protection
            payment for the dairy operation of a participating dairy
            producer shall be determined as follows:
                      (A) The Secretary shall calculate the difference
                    between the coverage level threshold selected by the
                    dairy producer under subsection (b) and the greater
                    of--
                              (i) the average actual dairy producer margin
                            for the consecutive two-month period; or
                              (ii) $4.00.
                      (B) The amount determined under subparagraph (A)
                    shall be multiplied by the percentage selected by the
                    participating dairy producer under subsection (c) and
                    by the lesser of the following:
                              (i) The annual production history of the
                            dairy operation of the dairy producer, divided
                            by six.
                              (ii) The actual amount of milk marketed by
                            the dairy operation of the dairy producer
                            during the consecutive two-month period.

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

      (a) Loss of Benefits.--A participating dairy producer that fails to
    pay the required administrative fee under section 1412 or is in arrears
    on premium payments for supplemental margin protection under section
    1415--
              (1) remains legally obligated to pay the administrative fee
            or premiums, as the case may be; and
              (2) may not receive basic margin protection payments or
            supplemental margin protection payments until the fees or
            premiums are fully paid.
      (b) Enforcement.--The Secretary may take such action as necessary to
    collect administrative fees and premium payments for supplemental
    margin protection.

                 Subpart B--Dairy Market Stabilization Program

    SEC. 1431. ESTABLISHMENT OF DAIRY MARKET STABILIZATION PROGRAM.

      (a) Program Required; Purpose.--The Secretary shall establish and
    administer a dairy market stabilization program applicable to
    participating dairy producers for the purpose of assisting in balancing
    the supply of milk with demand when dairy producers are experiencing
    low or negative operating margins.
      (b) Election of Stabilization Program Base Calculation Method.--
              (1) Election.--When a dairy producer signs up under section
            1412 to participate in the margin protection program, the dairy
            producer shall inform the Secretary of the method by which the
            stabilization program base for the dairy producer for fiscal
            year 2013 will be calculated under paragraph (3).
              (2) Change in calculation method.--A participating dairy
            producer may change the stabilization program base calculation
            method to be used for a calendar year by notifying the
            Secretary of the change not later than a date determined by the
            Secretary.
              (3) Calculation methods.--A participating dairy producer may
            elect either of the following methods for calculation of the
            stabilization program base for the producer:
                      (A) The volume of the average monthly milk marketings
                    of the dairy producer for the three months immediately
                    preceding the announcement by the Secretary that the
                    stabilization program will become effective.
                      (B) The volume of the monthly milk marketings of the
                    dairy producer for the same month in the preceding year
                    as the month for which the Secretary has announced the
                    stabilization program will become effective.

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

      (a) When Stabilization Program Required.--Except as provided in
    subsection (b), the Secretary shall announce that the stabilization
    program is in effect and order reduced payments for any participating
    dairy producer that exceeds the applicable percentage of the producer's
    stabilization program base whenever--
              (1) the actual dairy producer margin has been $6.00 or less
            per hundredweight of milk for each of the immediately preceding
            two months; or
              (2) the actual dairy producer margin has been $4.00 or less
            per hundredweight of milk for the immediately preceding month.
      (b) Exception.--The Secretary shall not make the announcement under
    subsection (a) to implement the stabilization program or order reduced
    payments if any of the conditions described in section 1436(b) have
    been met during the two months immediately preceding the month in which
    the announcement under subsection (a) would otherwise be made by the
    Secretary in the absence of this exception.
      (c) Effective Date for Implementation of Payment Reductions.--
    Reductions in dairy producer payments shall commence beginning on the
    first day of the month immediately following the date of the
    announcement by the Secretary under subsection (a).

    SEC. 1433. PRODUCER MILK MARKETING INFORMATION.

      (a) Collection of Milk Marketing Data.--The Secretary shall
    establish, by regulation, a process to collect from participating dairy
    producers and handlers such information that the Secretary considers
    necessary for each month during which the stabilization program is in
    effect.
      (b) Reduce Regulatory Burden.--When implementing the process under
    subsection (a), the Secretary shall minimize the regulatory burden on
    dairy producers and handlers.

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

      (a) Reduced Producer Payments Required.--During any month in which
    payment reductions are in effect under the stabilization program, each
    handler shall reduce payments to each participating dairy producer from
    whom the handler receives milk.
      (b) Reductions Based on Actual Dairy Producer Margin.--
              (1) Reduction requirement 1.--Unless the reduction required
            by paragraph (2) or (3) applies, when the actual dairy producer
            margin has been $6.00 or less per hundredweight of milk for two
            consecutive months, the handler shall make payments to a
            participating dairy producer for a month based on the greater
            of the following:
                      (A) 98 percent of the stabilization program base of
                    the dairy producer.
                      (B) 94 percent of the marketings of milk for the
                    month by the producer.
              (2) Reduction requirement 2.--Unless the reduction required
            by paragraph (3) applies, when the actual dairy producer margin
            has been $5.00 or less per hundredweight of milk for two
            consecutive months, the handler shall make payments to a
            participating dairy producer for a month based on the greater
            of the following:
                      (A) 97 percent of the stabilization program base of
                    the dairy producer.
                      (B) 93 percent of the marketings of milk for the
                    month by the producer.
              (3) Reduction requirement 3.--When the actual dairy producer
            margin has been $4.00 or less for any one month, the handler
            shall make payments to a participating dairy producer for a
            month based on the greater of the following:
                      (A) 96 percent of the stabilization program base of
                    the dairy producer.
                      (B) 92 percent of the marketings of milk for the
                    month by the producer.
      (c) Continuation of Reductions.--The largest level of payment
    reduction required under paragraph (1), (2), or (3) of subsection (b)
    shall be continued for each month until the Secretary suspends the
    stabilization program and terminates payment reductions in accordance
    with section 1436.
      (d) Payment Reduction Exception.--Notwithstanding any preceding
    subsection of this section, a handler shall make no payment reductions
    for a dairy producer for a month if the producer's milk marketings for
    the month are equal to or less than the percentage of the stabilization
    program base applicable to the producer under paragraph (1), (2), or
    (3) of subsection (b).

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

      (a) Remitting Monies.--As soon as practicable after the end of each
    month during which payment reductions are in effect under the
    stabilization program, each handler shall remit to the Secretary an
    amount equal to the amount by which payments to participating dairy
    producers are reduced by the handler under section 1434.
      (b) Deposit of Monies.--All monies received under subsection (a)
    shall be available to the Secretary, without further appropriation and
    until expended, for use or transfer as provided in subsection (c).
      (c) Use of Monies.--
              (1) Availability for certain commodity donations.--Within
            three months of the receipt of monies under subsection (a), the
            Secretary shall obligate the monies for the purpose of--
                      (A) purchasing dairy products for donation to food
                    banks and other programs that the Secretary determines
                    appropriate; and
                      (B) expanding consumption and building demand for
                    dairy products.
              (2) No duplication of effort.--The Secretary shall ensure
            that expenditures under paragraph (1) are compatible with, and
            do not duplicate, programs supported by the dairy research and
            promotion activities conducted under the Dairy Production
            Stabilization Act of 1983 (7 U.S.C. 4501 et seq.).
              (3) Accounting.--The Secretary shall keep an accurate account
            of all monies obligated under paragraph (1).
      (d) Annual Report.--Not later than December 31 of each year that the
    stabilization program is in effect, the Secretary shall submit to the
    Committee on Agriculture of the House of Representatives and the
    Committee on Agriculture, Nutrition, and Forestry of the Senate a
    report that provides an accurate accounting of--
              (1) the monies received by the Secretary during the preceding
            fiscal year under subsection (a); and
              (2) all expenditures made by the Secretary under subsection
            (b) during the preceding fiscal year.
      (e) Enforcement.--If a participating dairy producer or handler fails
    to remit or collect the amounts by which payments to participating
    dairy producers are reduced under section 1434, the producer or handler
    responsible for the failure shall be liable to the Secretary for the
    amount that should have been remitted or collected, plus interest. In
    addition to the enforcement authorities available under section 1437,
    the Secretary may enforce this subsection in the courts of the United
    States.

    SEC. 1436. SUSPENSION OF REDUCED PAYMENT REQUIREMENT.

      (a) Determination of Prices.--For purposes of this section:
              (1) The price in the United States for cheddar cheese and
            nonfat dry milk shall be determined by the Secretary.
              (2) The world price of cheddar cheese and skim milk powder
            shall be determined by the Secretary.
      (b) Initial Suspension Thresholds.--The Secretary shall announce that
    the stabilization program shall be suspended whenever the Secretary
    determines that--
              (1) the actual dairy producer margin is greater than $6.00
            per hundredweight of milk for two consecutive months;
              (2) the dairy producer margin is equal to or less than $6.00
            (but greater than $5.00) for two consecutive months, and during
            the same two consecutive months--
                      (A) the price in the United States for cheddar cheese
                    is equal to or greater than the world price of cheddar
                    cheese; or
                      (B) the price in the United States for nonfat dry
                    milk is equal to or greater than the world price of
                    skim milk powder;
              (3) the dairy producer margin is equal to or less than $5.00
            (but greater than $4.00) for two consecutive months, and during
            the same two consecutive months--
                      (A) the price in the United States for cheddar cheese
                    is more than 5 percent above the world price of cheddar
                    cheese; or
                      (B) the price in the United States for nonfat dry
                    milk is more than 5 percent above the world price of
                    skim milk powder; or
              (4) the dairy producer margin is equal to or less than $4.00
            for two consecutive months, and during the same two consecutive
            months--
                      (A) the price in the United States for cheddar cheese
                    is more than 7 percent above the world price of cheddar
                    cheese; or
                      (B) the price in the United States for nonfat dry
                    milk is more than 7 percent above the world price of
                    skim milk powder.
      (c) Enhanced Suspension Thresholds.--If the stabilization program is
    not suspended pursuant to subsection (b) for six consecutive months or
    more, the stabilization program shall be suspended whenever the
    Secretary determines that--
              (1) the actual dairy producer margin is greater than $6.00
            per hundredweight of milk for two consecutive months;
              (2) the dairy producer margin is equal to or less than $6.00
            (but greater than $5.00) for two consecutive months, and during
            the same two consecutive months--
                      (A) the price in the United States for cheddar cheese
                    is not less than 97 percent of the world price of
                    cheddar cheese; or
                      (B) the price in the United States for non-fat dry
                    milk is not less than 97 percent of the world price of
                    skim milk powder;
              (3) the dairy producer margin is equal to or less than $5.00
            (but greater than $4.00) for two consecutive months, and during
            the same two consecutive months--
                      (A) the price in the United States for cheddar cheese
                    is more than 3 percent above the world price of cheddar
                    cheese; or
                      (B) the price in the United States for non fat dry
                    milk is more than 3 percent above the world price of
                    skim milk powder; or
              (4) the dairy producer margin is equal to or less than $4.00
            for two consecutive months, and during the same two consecutive
            months--
                      (A) the price in the United States for cheddar cheese
                    is more than 6 percent above the world price of cheddar
                    cheese; or
                      (B) the price in the United States for non fat dry
                    milk is more than 6 percent above the world price of
                    skim milk powder.
      (d) Implementation by Handlers.--Effective on the day after the date
    of the announcement by the Secretary under subsection (b) or (c) of the
    suspension of the stabilization program, the handler shall cease
    reducing payments to participating dairy producers under the
    stabilization program.
      (e) Condition on Resumption of Stabilization Program.--Upon the
    announcement by the Secretary under subsection (b) or (c) that the
    stabilization program has been suspended, the stabilization program may
    not be implemented again until, at the earliest--
              (1) two months have passed, beginning on the first day of the
            month immediately following the announcement by the Secretary;
            and
              (2) the conditions of section 1432(a) are again met.

    SEC. 1437. ENFORCEMENT.

      (a) Unlawful Act.--It shall be unlawful and a violation of the this
    subpart for any person subject to the stabilization program to
    willfully fail or refuse to provide, or delay the timely reporting of,
    accurate information and remittance of funds to the Secretary in
    accordance with this subpart.
      (b) Order.--After providing notice and opportunity for a hearing to
    an affected person, the Secretary may issue an order against any person
    to cease and desist from continuing any violation of this subpart.
      (c) Appeal.--An order of the Secretary under subsection (b) shall be
    final and conclusive unless an affected person files an appeal of the
    order of the Secretary in United States district court not later than
    30 days after the date of the issuance of the order. A finding of the
    Secretary in the order shall be set aside only if the finding is not
    supported by substantial evidence.
      (d) Noncompliance With Order.--If a person subject to this subpart
    fails to obey an order issued under subsection (b) after the order has
    become final and unappealable, or after the appropriate United States
    district court has entered a final judgment in favor of the Secretary,
    the United States may apply to the appropriate United States district
    court for enforcement of the order. If the court determines that the
    order was lawfully made and duly served and that the person violated
    the order, the court shall enforce the order.

    SEC. 1438. AUDIT REQUIREMENTS.

      (a) Audits of Producer and Handler Compliance.--
              (1) Audits authorized.--If determined by the Secretary to be
            necessary to ensure compliance by participating dairy producers
            and handlers with the stabilization program, the Secretary may
            conduct periodic audits of participating dairy producers and
            handlers.
              (2) Sample of dairy producers.--Any audit conducted under
            this subsection shall include, at a minimum, investigation of a
            statistically valid and random sample of participating dairy
            producers.
      (b) Submission of Results.--The Secretary shall submit the results of
    any audit conducted under subsection (a) to the Committee on
    Agriculture of the House of Representatives and the Committee on
    Agriculture, Nutrition, and Forestry of the Senate and include such
    recommendations as the Secretary considers appropriate regarding the
    stabilization program.

                    Subpart C--Commodity Credit Corporation

    SEC. 1451. USE OF COMMODITY CREDIT CORPORATION.

      The Secretary shall use the funds, facilities, and the authorities of
    the Commodity Credit Corporation to carry out this part.

                       Subpart D--Initiation and Duration

    SEC. 1461. RULEMAKING.

      (a) Procedure.--The promulgation of regulations for the initiation of
    the margin protection program and the stabilization program, and for
    administration of such programs, shall be made without regard to--
              (1) chapter 35 of title 44, United States Code (commonly
            known as the Paperwork Reduction Act);
              (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) the notice and comment provisions of section 553 of title
            5, United States Code.
      (b) Congressional Review of Agency Rulemaking.--In carrying out
    subsection (a), the Secretary shall use the authority provided under
    section 808 of title 5, United States Code.

    SEC. 1462. DURATION.

      The margin protection program and the stabilization program shall end
    on December 31, 2017.

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

    SEC. 1481. REPEAL OF DAIRY PRODUCT PRICE SUPPORT AND MILK INCOME LOSS
                        CONTRACT PROGRAMS.

      (a) Repeal of Dairy Product Price Support Program.--Section 1501 of
    the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8771) is
    repealed.
      (b) Repeal of Milk Income Loss Contract Program.--Section 1506 of the
    Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is repealed.

    SEC. 1482. REPEAL OF DAIRY EXPORT INCENTIVE PROGRAM.

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

    SEC. 1483. EXTENSION OF DAIRY FORWARD PRICING PROGRAM.

      Section 1502(e) of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 8772(e)) is amended--
              (1) in paragraph (1), by striking ``2012'' and inserting
            ``2017''; and
              (2) in paragraph (2), by striking ``2015'' and inserting
            ``2020''.

    SEC. 1484. EXTENSION OF DAIRY INDEMNITY PROGRAM.

      Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended by striking
    ``2012'' and inserting ``2017''.

    SEC. 1485. EXTENSION OF DAIRY PROMOTION AND RESEARCH PROGRAM.

      Section 113(e)(2) of the Dairy Production Stabilization Act of 1983
    (7 U.S.C. 4504(e)(2)) is amended by striking ``2012'' and inserting
    ``2017''.

    SEC. 1486. REPEAL OF FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.

      Section 1509 of the Food, Conservation, and Energy Act of 2008
    (Public Law 110-246; 122 Stat. 1726) is repealed.

                            PART III--EFFECTIVE DATE

    SEC. 1491. EFFECTIVE DATE.

      This subtitle and the amendments made by this subtitle shall take
    effect on October 1, 2012.

       Subtitle E--Supplemental Agricultural Disaster Assistance Programs

    SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

      (a) Definitions.--In this section:
              (1) Eligible producer on a farm.--
                      (A) In general.--The term ``eligible producer on a
                    farm'' means an individual or entity described in
                    subparagraph (B) that, as determined by the Secretary,
                    assumes the production and market risks associated with
                    the agricultural production of crops or livestock.
                      (B) Description.--An individual or entity referred to
                    in subparagraph (A) is--
                              (i) a citizen of the United States;
                              (ii) a resident alien;
                              (iii) a partnership of citizens of the United
                            States; or
                              (iv) a corporation, limited liability
                            corporation, or other farm organizational
                            structure organized under State law.
              (2) Farm-raised fish.--The term ``farm-raised fish'' means
            any aquatic species that is propagated and reared in a
            controlled environment.
              (3) Livestock.--The term ``livestock'' includes--
                      (A) cattle (including dairy cattle);
                      (B) bison;
                      (C) poultry;
                      (D) sheep;
                      (E) swine;
                      (F) horses; and
                      (G) other livestock, as determined by the Secretary.
              (4) Secretary.--The term ``Secretary'' means the Secretary of
            Agriculture.
      (b) Livestock Indemnity Payments.--
              (1) Payments.--For each of the fiscal years 2012 through
            2017, the Secretary shall use such sums as are necessary of the
            funds of the Commodity Credit Corporation to make livestock
            indemnity payments to eligible producers on farms that have
            incurred livestock death losses in excess of the normal
            mortality, as determined by the Secretary, due to--
                      (A) attacks by animals reintroduced into the wild by
                    the Federal Government or protected by Federal law,
                    including wolves and avian predators; or
                      (B) adverse weather, as determined by the Secretary,
                    during the calendar year, including losses due to
                    hurricanes, floods, blizzards, disease, wildfires,
                    extreme heat, and extreme cold.
              (2) Payment rates.--Indemnity payments to an eligible
            producer on a farm under paragraph (1) shall be made at a rate
            of 75 percent of the market value of the applicable livestock
            on the day before the date of death of the livestock, as
            determined by the Secretary.
              (3) Special rule for payments made due to disease.--The
            Secretary shall ensure that payments made to an eligible
            producer under paragraph (1) are not made for the same
            livestock losses for which compensation is provided pursuant to
            section 10407(d) of the Animal Health Protection Act (7 U.S.C.
            8306(d)).
      (c) Livestock Forage Disaster Program.--
              (1) Definitions.--In this subsection:
                      (A) Covered livestock.--
                              (i) In general.--Except as provided in clause
                            (ii), the term ``covered livestock'' means
                            livestock of an eligible livestock producer
                            that, during the 60 days prior to the beginning
                            date of a qualifying drought or fire condition,
                            as determined by the Secretary, the eligible
                            livestock producer--
                                      (I) owned;
                                      (II) leased;
                                      (III) purchased;
                                      (IV) entered into a contract to
                                    purchase;
                                      (V) is a contract grower; or
                                      (VI) sold or otherwise disposed of
                                    due to qualifying drought conditions
                                    during--
                                              (aa) the current production
                                            year; or
                                              (bb) subject to paragraph
                                            (3)(B)(ii), 1 or both of the 2
                                            production years immediately
                                            preceding the current
                                            production year.
                              (ii) Exclusion.--The term ``covered
                            livestock'' does not include livestock that
                            were or would have been in a feedlot, on the
                            beginning date of the qualifying drought or
                            fire condition, as a part of the normal
                            business operation of the eligible livestock
                            producer, as determined by the Secretary.
                      (B) Drought monitor.--The term ``drought monitor''
                    means a system for classifying drought severity
                    according to a range of abnormally dry to exceptional
                    drought, as defined by the Secretary.
                      (C) Eligible livestock producer.--
                              (i) In general.--The term ``eligible
                            livestock producer'' means an eligible producer
                            on a farm that--
                                      (I) is an owner, cash or share
                                    lessee, or contract grower of covered
                                    livestock that provides the pastureland
                                    or grazing land, including cash-leased
                                    pastureland or grazing land, for the
                                    livestock;
                                      (II) provides the pastureland or
                                    grazing land for covered livestock,
                                    including cash-leased pastureland or
                                    grazing land that is physically located
                                    in a county affected by drought;
                                      (III) certifies grazing loss; and
                                      (IV) meets all other eligibility
                                    requirements established under this
                                    subsection.
                              (ii) Exclusion.--The term ``eligible
                            livestock producer'' does not include an owner,
                            cash or share lessee, or contract grower of
                            livestock that rents or leases pastureland or
                            grazing land owned by another person on a rate-
                            of-gain basis.
                      (D) Normal carrying capacity.--The term ``normal
                    carrying capacity'', with respect to each type of
                    grazing land or pastureland in a county, means the
                    normal carrying capacity, as determined under paragraph
                    (3)(D)(i), that would be expected from the grazing land
                    or pastureland for livestock during the normal grazing
                    period, in the absence of a drought or fire that
                    diminishes the production of the grazing land or
                    pastureland.
                      (E) Normal grazing period.--The term ``normal grazing
                    period'', with respect to a county, means the normal
                    grazing period during the calendar year for the county,
                    as determined under paragraph (3)(D)(i).
              (2) Program.--For each of the fiscal years 2012 through 2017,
            the Secretary shall use such sums as are necessary of the funds
            of the Commodity Credit Corporation to provide compensation for
            losses to eligible livestock producers due to grazing losses
            for covered livestock due to--
                      (A) a drought condition, as described in paragraph
                    (3); or
                      (B) fire, as described in paragraph (4).
              (3) Assistance for losses due to drought conditions.--
                      (A) Eligible losses.--
                              (i) In general.--An eligible livestock
                            producer may receive assistance under this
                            subsection only for grazing losses for covered
                            livestock that occur on land that--
                                      (I) is native or improved pastureland
                                    with permanent vegetative cover; or
                                      (II) is planted to a crop planted
                                    specifically for the purpose of
                                    providing grazing for covered
                                    livestock.
                              (ii) Exclusions.--An eligible livestock
                            producer may not receive assistance under this
                            subsection for grazing losses that occur on
                            land used for haying or grazing under the
                            conservation reserve program established under
                            subchapter B of chapter 1 of subtitle D of
                            title XII of the Food Security Act of 1985 (16
                            U.S.C. 3831 et seq.).
                      (B) Monthly payment rate.--
                              (i) In general.--Except as provided in clause
                            (ii), the payment rate for assistance under
                            this paragraph for 1 month shall, in the case
                            of drought, be equal to 60 percent of the
                            lesser of--
                                      (I) the monthly feed cost for all
                                    covered livestock owned or leased by
                                    the eligible livestock producer, as
                                    determined under subparagraph (C); or
                                      (II) the monthly feed cost calculated
                                    by using the normal carrying capacity
                                    of the eligible grazing land of the
                                    eligible livestock producer.
                              (ii) Partial compensation.--In the case of an
                            eligible livestock producer that sold or
                            otherwise disposed of covered livestock due to
                            drought conditions in 1 or both of the 2
                            production years immediately preceding the
                            current production year, as determined by the
                            Secretary, the payment rate shall be 80 percent
                            of the payment rate otherwise calculated in
                            accordance with clause (i).
                      (C) Monthly feed cost.--
                              (i) In general.--The monthly feed cost shall
                            equal the product obtained by multiplying--
                                      (I) 30 days;
                                      (II) a payment quantity that is equal
                                    to the feed grain equivalent, as
                                    determined under clause (ii); and
                                      (III) a payment rate that is equal to
                                    the corn price per pound, as determined
                                    under clause (iii).
                              (ii) Feed grain equivalent.--For purposes of
                            clause (i)(II), the feed grain equivalent shall
                            equal--
                                      (I) in the case of an adult beef cow,
                                    15.7 pounds of corn per day; or
                                      (II) in the case of any other type of
                                    weight of livestock, an amount
                                    determined by the Secretary that
                                    represents the average number of pounds
                                    of corn per day necessary to feed the
                                    livestock.
                              (iii) Corn price per pound.--For purposes of
                            clause (i)(III), the corn price per pound shall
                            equal the quotient obtained by dividing--
                                      (I) the higher of--
                                              (aa) the national average
                                            corn price per bushel for the
                                            12-month period immediately
                                            preceding March 1 of the year
                                            for which the disaster
                                            assistance is calculated; or
                                              (bb) the national average
                                            corn price per bushel for the
                                            24-month period immediately
                                            preceding that March 1; by
                                      (II) 56.
                      (D) Normal grazing period and drought monitor
                    intensity.--
                              (i) Fsa county committee determinations.--
                                      (I) In general.--The Secretary shall
                                    determine the normal carrying capacity
                                    and normal grazing period for each type
                                    of grazing land or pastureland in the
                                    county served by the applicable
                                    committee.
                                      (II) Changes.--No change to the
                                    normal carrying capacity or normal
                                    grazing period established for a county
                                    under subclause (I) shall be made
                                    unless the change is requested by the
                                    appropriate State and county Farm
                                    Service Agency committees.
                              (ii) Drought intensity.--
                                      (I) D2.--An eligible livestock
                                    producer that owns or leases grazing
                                    land or pastureland that is physically
                                    located in a county that is rated by
                                    the U.S. Drought Monitor as having a D2
                                    (severe drought) intensity in any area
                                    of the county for at least 8
                                    consecutive weeks during the normal
                                    grazing period for the county, as
                                    determined by the Secretary, shall be
                                    eligible to receive assistance under
                                    this paragraph in an amount equal to 1
                                    monthly payment using the monthly
                                    payment rate determined under
                                    subparagraph (B).
                                      (II) D3.--An eligible livestock
                                    producer that owns or leases grazing
                                    land or pastureland that is physically
                                    located in a county that is rated by
                                    the U.S. Drought Monitor as having at
                                    least a D3 (extreme drought) intensity
                                    in any area of the county at any time
                                    during the normal grazing period for
                                    the county, as determined by the
                                    Secretary, shall be eligible to receive
                                    assistance under this paragraph--
                                              (aa) in an amount equal to 2
                                            monthly payments using the
                                            monthly payment rate determined
                                            under subparagraph (B); or
                                              (bb) if the county is rated
                                            as having a D3 (extreme
                                            drought) intensity in any area
                                            of the county for at least 4
                                            weeks during the normal grazing
                                            period for the county, or is
                                            rated as having a D4
                                            (exceptional drought) intensity
                                            in any area of the county at
                                            any time during the normal
                                            grazing period, in an amount
                                            equal to 3 monthly payments
                                            using the monthly payment rate
                                            determined under subparagraph
                                            (B).
              (4) Assistance for losses due to fire on public managed
            land.--
                      (A) In general.--An eligible livestock producer may
                    receive assistance under this paragraph only if--
                              (i) the grazing losses occur on rangeland
                            that is managed by a Federal agency; and
                              (ii) the eligible livestock producer is
                            prohibited by the Federal agency from grazing
                            the normal permitted livestock on the managed
                            rangeland due to a fire.
                      (B) Payment rate.--The payment rate for assistance
                    under this paragraph shall be equal to 50 percent of
                    the monthly feed cost for the total number of livestock
                    covered by the Federal lease of the eligible livestock
                    producer, as determined under paragraph (3)(C).
                      (C) Payment duration.--
                              (i) In general.--Subject to clause (ii), an
                            eligible livestock producer shall be eligible
                            to receive assistance under this paragraph for
                            the period--
                                      (I) beginning on the date on which
                                    the Federal agency excludes the
                                    eligible livestock producer from using
                                    the managed rangeland for grazing; and
                                      (II) ending on the last day of the
                                    Federal lease of the eligible livestock
                                    producer.
                              (ii) Limitation.--An eligible livestock
                            producer may only receive assistance under this
                            paragraph for losses that occur on not more
                            than 180 days per year.
              (5) No duplicative payments.--An eligible livestock producer
            may elect to receive assistance for grazing or pasture feed
            losses due to drought conditions under paragraph (3) or fire
            under paragraph (4), but not both for the same loss, as
            determined by the Secretary.
      (d) Emergency Assistance for Livestock, Honey Bees, and Farm-raised
    Fish.--
              (1) In general.--For each of the fiscal years 2012 through
            2017, the Secretary shall use not more than $20,000,000 of the
            funds of the Commodity Credit Corporation to provide emergency
            relief to eligible producers of livestock, honey bees, and
            farm-raised fish to aid in the reduction of losses due to
            disease (including cattle tick fever), adverse weather, or
            other conditions, such as blizzards and wildfires, as
            determined by the Secretary, that are not covered under
            subsection (b) or (c).
              (2) Use of funds.--Funds made available under this subsection
            shall be used to reduce losses caused by feed or water
            shortages, disease, or other factors as determined by the
            Secretary.
              (3) Availability of funds.--Any funds made available under
            this subsection shall remain available until expended.
      (e) Tree Assistance Program.--
              (1) Definitions.--In this subsection:
                      (A) Eligible orchardist.--The term ``eligible
                    orchardist'' means a person that produces annual crops
                    from trees for commercial purposes.
                      (B) Natural disaster.--The term ``natural disaster''
                    means plant disease, insect infestation, drought, fire,
                    freeze, flood, earthquake, lightning, or other
                    occurrence, as determined by the Secretary.
                      (C) Nursery tree grower.--The term ``nursery tree
                    grower'' means a person who produces nursery,
                    ornamental, fruit, nut, or Christmas trees for
                    commercial sale, as determined by the Secretary.
                      (D) Tree.--The term ``tree'' includes a tree, bush,
                    and vine.
              (2) Eligibility.--
                      (A) Loss.--Subject to subparagraph (B), for each of
                    the fiscal years 2012 through 2017, the Secretary shall
                    use such sums as are necessary of the funds of the
                    Commodity Credit Corporation to provide assistance--
                              (i) under paragraph (3) to eligible
                            orchardists and nursery tree growers that
                            planted trees for commercial purposes but lost
                            the trees as a result of a natural disaster, as
                            determined by the Secretary; and
                              (ii) under paragraph (3)(B) to eligible
                            orchardists and nursery tree growers that have
                            a production history for commercial purposes on
                            planted or existing trees but lost the trees as
                            a result of a natural disaster, as determined
                            by the Secretary.
                      (B) Limitation.--An eligible orchardist or nursery
                    tree grower shall qualify for assistance under
                    subparagraph (A) only if the tree mortality of the
                    eligible orchardist or nursery tree grower, as a result
                    of damaging weather or related condition, exceeds 15
                    percent (adjusted for normal mortality).
              (3) Assistance.--Subject to paragraph (4), the assistance
            provided by the Secretary to eligible orchardists and nursery
            tree growers for losses described in paragraph (2) shall
            consist of--
                      (A)(i) reimbursement of 65 percent of the cost of
                    replanting trees lost due to a natural disaster, as
                    determined by the Secretary, in excess of 15 percent
                    mortality (adjusted for normal mortality); or
                      (ii) at the option of the Secretary, sufficient
                    seedlings to reestablish a stand; and
                      (B) reimbursement of 50 percent of the cost of
                    pruning, removal, and other costs incurred by an
                    eligible orchardist or nursery tree grower to salvage
                    existing trees or, in the case of tree mortality, to
                    prepare the land to replant trees as a result of damage
                    or tree mortality due to a natural disaster, as
                    determined by the Secretary, in excess of 15 percent
                    damage or mortality (adjusted for normal tree damage
                    and mortality).
              (4) Limitations on assistance.--
                      (A) Definitions of legal entity and person.--In this
                    paragraph, the terms ``legal entity'' and ``person''
                    have the meaning given those terms in section 1001(a)
                    of the Food Security Act of 1985 (7 U.S.C. 1308(a)).
                      (B) Amount.--The total amount of payments received,
                    directly or indirectly, by a person or legal entity
                    (excluding a joint venture or general partnership)
                    under this subsection may not exceed $125,000 for any
                    crop year, or an equivalent value in tree seedlings.
                      (C) Acres.--The total quantity of acres planted to
                    trees or tree seedlings for which a person or legal
                    entity shall be entitled to receive payments under this
                    subsection may not exceed 500 acres.
      (f) Payment Limitations.--
              (1) Definitions of legal entity and person.--In this
            subsection, the terms ``legal entity'' and ``person'' have the
            meaning given those terms in section 1001(a) of the Food
            Security Act of 1985 (7 U.S.C. 1308(a).
              (2) Amount.--The total amount of disaster assistance payments
            received, directly or indirectly, by a person or legal entity
            (excluding a joint venture or general partnership) under this
            section (excluding payments received under subsection (e)) may
            not exceed $125,000 for any crop year.
              (3) Direct attribution.--Subsections (e) and (f) of section
            1001 of the Food Security Act of 1985 (7 U.S.C. 1308) or any
            successor provisions relating to direct attribution shall apply
            with respect to assistance provided under this section.

                           Subtitle F--Administration

    SEC. 1601. ADMINISTRATION GENERALLY.

      (a) Use of Commodity Credit Corporation.--The Secretary of
    Agriculture shall use the funds, facilities, and authorities of the
    Commodity Credit Corporation to carry out this title.
      (b) Determinations by Secretary.--A determination made by the
    Secretary under this title shall be final and conclusive.
      (c) Regulations.--
              (1) In general.--Except as otherwise provided in this
            subsection, not later than 90 days after the date of enactment
            of this Act, the Secretary and the Commodity Credit
            Corporation, as appropriate, shall promulgate such regulations
            as are necessary to implement this title and the amendments
            made by this title.
              (2) Procedure.--The promulgation of the regulations and
            administration of this title and the amendments made by this
            title and sections 11003 and 11016 of this Act shall be made
            without regard to--
                      (A) the notice and comment provisions of section 553
                    of title 5, United States Code;
                      (B) chapter 35 of title 44, United States Code
                    (commonly known as the ``Paperwork Reduction Act'');
                    and
                      (C) the Statement of Policy of the Secretary of
                    Agriculture effective July 24, 1971 (36 Fed. Reg.
                    13804), relating to notices of proposed rulemaking and
                    public participation in rulemaking.
              (3) Congressional review of agency rulemaking.--In carrying
            out this subsection, the Secretary shall use the authority
            provided under section 808 of title 5, United States Code.
      (d) Adjustment Authority Related to Trade Agreements Compliance.--
              (1) Required determination; adjustment.--If the Secretary
            determines that expenditures under this title that are subject
            to the total allowable domestic support levels under the
            Uruguay Round Agreements (as defined in section 2 of the
            Uruguay Round Agreements Act (19 U.S.C. 3501)) will exceed the
            allowable levels for any applicable reporting period, the
            Secretary shall, to the maximum extent practicable, make
            adjustments in the amount of the expenditures during that
            period to ensure that the expenditures do not exceed the
            allowable levels.
              (2) Congressional notification.--Before making any adjustment
            under paragraph (1), the Secretary shall submit to the
            Committee on Agriculture of the House of Representatives and
            the Committee on Agriculture, Nutrition, and Forestry of the
            Senate a report describing the determination made under that
            paragraph and the extent of the adjustment to be made.

    SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

      (a) Agricultural Adjustment Act of 1938.--The following provisions of
    the Agricultural Adjustment Act of 1938 shall not be applicable to the
    2013 through 2017 crops of covered commodities (as defined in section
    1104), cotton, and sugar and shall not be applicable to milk during the
    period beginning on the date of enactment of this Act through December
    31, 2017:
              (1) Parts II through V of subtitle B of title III (7 U.S.C.
            1326 et seq.).
              (2) In the case of upland cotton, section 377 (7 U.S.C.
            1377).
              (3) Subtitle D of title III (7 U.S.C. 1379a et seq.).
              (4) Title IV (7 U.S.C. 1401 et seq.).
      (b) Agricultural Act of 1949.--The following provisions of the
    Agricultural Act of 1949 shall not be applicable to the 2013 through
    2017 crops of covered commodities (as defined in section 1104), cotton,
    and sugar and shall not be applicable to milk during the period
    beginning on the date of enactment of this Act and through December 31,
    2017:
              (1) Section 101 (7 U.S.C. 1441).
              (2) Section 103(a) (7 U.S.C. 1444(a)).
              (3) Section 105 (7 U.S.C. 1444b).
              (4) Section 107 (7 U.S.C. 1445a).
              (5) Section 110 (7 U.S.C. 1445e).
              (6) Section 112 (7 U.S.C. 1445g).
              (7) Section 115 (7 U.S.C. 1445k).
              (8) Section 201 (7 U.S.C. 1446).
              (9) Title III (7 U.S.C. 1447 et seq.).
              (10) Title IV (7 U.S.C. 1421 et seq.), other than sections
            404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
              (11) Title V (7 U.S.C. 1461 et seq.).
              (12) Title VI (7 U.S.C. 1471 et seq.).
      (c) Suspension of Certain Quota Provisions.--The joint resolution
    entitled ``A joint resolution relating to corn and wheat marketing
    quotas under the Agricultural Adjustment Act of 1938, as amended'',
    approved May 26, 1941 (7 U.S.C. 1330, 1340), shall not be applicable to
    the crops of wheat planted for harvest in the calendar years 2013
    through 2017.

    SEC. 1603. PAYMENT LIMITATIONS.

      (a) In General.--Section 1001 of the Food Security Act of 1985 (7
    U.S.C. 1308) is amended by striking subsections (b) and (c) and
    inserting the following:
      ``(b) Limitation on Payments for Covered Commodities (other Than
    Peanuts).--The total amount of payments received, directly or
    indirectly, by a person or legal entity (except a joint venture or
    general partnership) for any crop year under subtitle A of title I of
    the Federal Agriculture Reform and Risk Management Act of 2012 for 1 or
    more covered commodities (other than peanuts) may not exceed $125,000.
      ``(c) Limitation on Payments for Peanuts.--The total amount of
    payments received, directly or indirectly, by a person or legal entity
    (except a joint venture or general partnership) for any crop year under
    subtitle A of title I of the Federal Agriculture Reform and Risk
    Management Act of 2012 for peanuts may not exceed $125,000.''.
      (b) Conforming Amendments.--
              (1) Section 1001(f) of the Food Security Act of 1985 (7
            U.S.C. 1308(f)) is amended by striking ``or title XII'' each
            place it appears in paragraphs (5)(A) and (6)(A) and inserting
            ``, title I of the Federal Agriculture Reform and Risk
            Management Act of 2012, or title XII''.
              (2) Section 1001C(a) of the Food Security Act of 1985 (7
            U.S.C. 1308-3(a)) is amended by inserting ``title I of the
            Federal Agriculture Reform and Risk Management Act of 2012,''
            after ``2008,''.
      (c) Application.--The amendments made by this section shall apply
    beginning with the 2013 crop year.

    SEC. 1604. ADJUSTED GROSS INCOME LIMITATION.

      (a) Limitations and Covered Benefits.--Section 1001D(b) of the Food
    Security Act of 1985 (7 U.S.C. 1308-3a(b)) is amended--
              (1) in the subsection heading, by striking ``Limitations''
            and inserting ``Limitations on Commodity and Conservation
            Programs'';
              (2) by striking paragraphs (1) and (2) and inserting the
            following new paragraphs:
              ``(1) Limitation.--Notwithstanding any other provision of
            law, a person or legal entity shall not be eligible to receive
            any benefit described in paragraph (2) during a crop, fiscal,
            or program year, as appropriate, if the average adjusted gross
            income of the person or legal entity exceeds $950,000.
              ``(2) Covered benefits.--Paragraph (1) applies with respect
            to a payment or benefit under section 1107, subtitle B or E of
            title I, or title II of the Federal Agriculture Reform and Risk
            Management Act of 2012, title II of the Farm Security and Rural
            Investment Act of 2002, title II of the Food, Conservation, and
            Energy Act of 2008, title XII of the Food Security Act of 1985,
            section 524(b) of the Federal Crop Insurance Act (7 U.S.C.
            1524(b)), or section 196 of the Federal Agriculture Improvement
            and Reform Act of 1996 (7 U.S.C. 7333).''.
      (b) Elimination of Unused Definitions.--Paragraph (1) of section
    1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308-3a(a)) is
    amended to read as follows:
              ``(1) Average adjusted gross income.--In this section, the
            term `average adjusted gross income', with respect to a person
            or legal entity, means the average of the adjusted gross income
            or comparable measure of the person or legal entity over the 3
            taxable years preceding the most immediately preceding complete
            taxable year, as determined by the Secretary.''.
      (c) Income Determination.--Section 1001D of the Food Security Act of
    1985 (7 U.S.C. 1308-3a) is amended--
              (1) by striking subsection (c); and
              (2) by redesignating subsections (d), (e), and (f) as
            subsections (c), (d), and (e), respectively.
      (d) Conforming Amendments.--Section 1001D of the Food Security Act of
    1985 (7 U.S.C. 1308-3a) is amended--
              (1) in subsection (a)(2)--
                      (A) by striking ``subparagraph (A) or (B) of''; and
                      (B) by striking ``, the average adjusted gross farm
                    income, and the average adjusted gross nonfarm
                    income'';
              (2) in subsection (a)(3), by striking ``, average adjusted
            gross farm income, and average adjusted gross nonfarm income''
            both places it appears;
              (3) in subsection (c) (as redesignated by subsection (c)(2)
            of this section)--
                      (A) in paragraph (1), by striking ``, average
                    adjusted gross farm income, and average adjusted gross
                    nonfarm income'' both places it appears; and
                      (B) in paragraph (2), by striking ``paragraphs (1)(C)
                    and (2)(B) of subsection (b)'' and inserting
                    ``subsection (b)(2)''; and
              (4) in subsection (d) (as redesignated by subsection (c)(2)
            of this section)--
                      (A) by striking ``paragraphs (1)(C) and (2)(B) of
                    subsection (b)'' and inserting ``subsection (b)(2)'';
                    and
                      (B) by striking ``, average adjusted gross farm
                    income, or average adjusted gross nonfarm income''.
      (e) Effective Period.--Subsection (e) of section 1001D of the Food
    Security Act of 1985 (7 U.S.C. 1308-3a), as redesignated by subsection
    (c)(2) of this section, is amended by striking ``2009 through 2012''
    and inserting ``2013 through 2017''.
      (f) Limitation on Applicability.--Section 1001(d) of the Food
    Security Act of 1985 (7 U.S.C. 1308) is amended by inserting before the
    period at the end the following: ``or title I of the Federal
    Agriculture Reform and Risk Management Act of 2012''.
      (g) Transition.--Section 1001D of the Food Security Act of 1985 (7
    U.S.C. 1308-3a), as in effect on the day before the date of the
    enactment of this Act, shall apply with respect to the 2012 crop,
    fiscal, or program year, as appropriate, for each program described in
    paragraphs (1)(C) and (2)(B) of subsection (b) of that section (as so
    in effect on that day).

    SEC. 1605. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.

      Section 1621(d) of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 8792(d)) is amended by striking ``2012'' and inserting ``2017''.

    SEC. 1606. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

      Section 164 of the Federal Agriculture Improvement and Reform Act of
    1996 (7 U.S.C. 7284) is amended by striking ``and title I of the Food,
    Conservation, and Energy Act of 2008'' each place it appears and
    inserting ``title I of the Food, Conservation, and Energy Act of 2008
    (7 U.S.C. 8702 et seq.), and title I of the Federal Agriculture Reform
    and Risk Management Act of 2012''.

    SEC. 1607. PREVENTION OF DECEASED INDIVIDUALS RECEIVING PAYMENTS UNDER
                        FARM COMMODITY PROGRAMS.

      (a) Reconciliation.--At least twice each year, the Secretary shall
    reconcile social security numbers of all individuals who receive
    payments under this title, whether directly or indirectly, with the
    Commissioner of Social Security to determined if the individuals are
    alive.
      (b) Preclusion.--The Secretary shall preclude the issuance of
    payments to, and on behalf of, deceased individuals that were not
    eligible for payments.

    SEC. 1608. TECHNICAL CORRECTIONS.

      (a) Missing Punctuation.--Section 359f(c)(1)(B) of the Agricultural
    Adjustment Act of 1938 (7 U.S.C. 1359ff(c)(1)(B)) is amended by adding
    a period at the end.
      (b) Erroneous Cross Reference.--
              (1) Amendment.--Section 1603(g) of the Food, Conservation,
            and Energy Act of 2008 (Public Law 110-246; 122 Stat. 1739) is
            amended in paragraphs (2) through (6) and the amendments made
            by those paragraphs by striking ``1703(a)'' each place it
            appears and inserting ``1603(a)''.
              (2) Effective date.--This subsection and the amendments made
            by this subsection take effect as if included in the Food,
            Conservation, and Energy Act of 2008 (Public Law 110-246; 122
            Stat. 1651).
      (c) Continued Applicability of Appropriations General Provision.--
    Section 767 of division A of Public Law 108-7 (7 U.S.C. 7911 note; 117
    Stat. 48) is amended--
              (1) in subsection (a)--
                      (A) by striking ``sections 1101 and 1102 of Public
                    Law 107-171'' and inserting ``subtitle A of title I of
                    the Federal Agriculture Reform and Risk Management Act
                    of 2012''; and
                      (B) by striking ``such section 1102'' and inserting
                    ``such subtitle''; and
              (2) by striking subsection (b) and inserting the following
            new subsection:
      ``(b) This section, as amended by section 1608(c) of the Federal
    Agriculture Reform and Risk Management Act of 2012, shall take effect
    beginning with the 2013 crop year.''.

    SEC. 1609. ASSIGNMENT OF PAYMENTS.

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

    SEC. 1610. TRACKING OF BENEFITS.

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

    SEC. 1611. SIGNATURE AUTHORITY.

      (a) In General.--In carrying out this title and title II and
    amendments made by those titles, if the Secretary approves a document,
    the Secretary shall not subsequently determine the document is
    inadequate or invalid because of the lack of authority of any person
    signing the document on behalf of the applicant or any other
    individual, entity, general partnership, or joint venture, or the
    documents relied upon were determined inadequate or invalid, unless the
    person signing the program document knowingly and willfully falsified
    the evidence of signature authority or a signature.
      (b) Affirmation.--
              (1) In general.--Nothing in this section prohibits the
            Secretary from asking a proper party to affirm any document
            that otherwise would be considered approved under subsection
            (a).
              (2) No retroactive effect.--A denial of benefits based on a
            lack of affirmation under paragraph (1) shall not be
            retroactive with respect to third-party producers who were not
            the subject of the erroneous representation of authority, if
            the third-party producers--
                      (A) relied on the prior approval by the Secretary of
                    the documents in good faith; and
                      (B) substantively complied with all program
                    requirements.

    SEC. 1612. IMPLEMENTATION.

      (a) Streamlining.--In implementing this title, the Secretary shall,
    to the maximum extent practicable--
              (1) seek to reduce administrative burdens and costs to
            producers by streamlining and reducing paperwork, forms, and
            other administrative requirements;
              (2) improve coordination, information sharing, and
            administrative work with the Risk Management Agency and the
            Natural Resources Conservation Service; and
              (3) take advantage of new technologies to enhance efficiency
            and effectiveness of program delivery to producers.
      (b) Maintenance of Base Acres and Payment Yields.--
              (1) In general.--The Secretary shall maintain through
            September 30, 2017, for each covered commodity and upland
            cotton, base acres and payment yields on a farm established
            under--
                      (A)(i) in the case of covered commodities and upland
                    cotton, sections 1101 and 1102 of the Farm Security and
                    Rural Investment Act of 2002 (7 U.S.C. 7911, 7912); and
                      (ii) in the case of peanuts, section 1302 of that Act
                    (7 U.S.C. 7952); and
                      (B)(i) in the case of covered commodities and upland
                    cotton, sections 1101 and 1102 of the Food,
                    Conservation, and Energy Act of 2008 (7 U.S.C. 8711,
                    8712); and
                      (ii) in the case of peanuts, section 1302 of that Act
                    (7 U.S.C. 8752).
              (2)  Special rule for long grain and medium grain rice.--
                      (A) In general.--The Secretary shall maintain
                    separate base acres for long grain rice and medium
                    grain rice.
                      (B) Limitation.--In carrying out this paragraph, the
                    Secretary shall use the same total base acres and
                    payment yields established with respect to rice under
                    sections 1108 of the Food, Conservation, and Energy Act
                    of 2008 (7 U.S.C. 8718), as in effect on the day before
                    the date of enactment of this Act, subject to any
                    adjustment under section 1105.
      (c) Implementation.--The Secretary shall make available to the Farm
    Service Agency to carry out this title $100,000,000.

                             TITLE II--CONSERVATION

                    Subtitle A--Conservation Reserve Program

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

      (a) Extension.--Section 1231(a) of the Food Security Act of 1985 (16
    U.S.C. 3831(a)) is amended by striking ``2012'' and inserting ``2017''.
      (b) Eligible Land.--Section 1231(b) of the Food Security Act of 1985
    (16 U.S.C. 3831(b)) is amended--
              (1) in paragraph (1)(B), by striking ``the date of enactment
            of the Food, Conservation, and Energy Act of 2008'' and
            inserting ``the date of the enactment of the Federal
            Agriculture Reform and Risk Management Act of 2012'';
              (2) by striking paragraph (2) and redesignating paragraph (3)
            as paragraph (2);
              (3) by inserting before paragraph (4) the following new
            paragraph:
              ``(3) grasslands that--
                      ``(A) contain forbs or shrubland (including improved
                    rangeland and pastureland) for which grazing is the
                    predominant use;
                      ``(B) are located in an area historically dominated
                    by grasslands; and
                      ``(C) could provide habitat for animal and plant
                    populations of significant ecological value if the land
                    is retained in its current use or restored to a natural
                    condition;'';
              (4) in paragraph (4)(C), by striking ``filterstrips devoted
            to trees or shrubs'' and inserting ``filterstrips or riparian
            buffers devoted to trees, shrubs, or grasses''; and
              (5) by striking paragraph (5) and inserting the following new
            paragraph:
              ``(5) the portion of land in a field not enrolled in the
            conservation reserve in a case in which--
                      ``(A) more than 50 percent of the land in the field
                    is enrolled as a buffer or filterstrip, or more than 75
                    percent of the land in the field is enrolled as a
                    conservation practice other than as a buffer or
                    filterstrip; and
                      ``(B) the remainder of the field is--
                              ``(i) infeasible to farm; and
                              ``(ii) enrolled at regular rental rates.''.
      (c) Planting Status of Certain Land.--Section 1231(c) of the Food
    Security Act of 1985 (16 U.S.C. 3831(c)) is amended by striking ``if''
    and all that follows through the period at the end and inserting ``if,
    during the crop year, the land was devoted to a conserving use.''.
      (d) Enrollment.--Subsection (d) of section 1231 of the Food Security
    Act of 1985 (16 U.S.C. 3831) is amended to read as follows:
      ``(d) Enrollment.--
              ``(1) Maximum acreage enrolled.--The Secretary may maintain
            in the conservation reserve at any one time during--
                      ``(A) fiscal year 2012, no more than 32,000,000
                    acres;
                      ``(B) fiscal year 2013, no more than 29,000,000
                    acres;
                      ``(C) fiscal year 2014, no more than 26,000,000
                    acres;
                      ``(D) fiscal year 2015, no more than 26,000,000
                    acres;
                      ``(E) fiscal year 2016, no more than 25,500,000
                    acres; and
                      ``(F) fiscal year 2017, no more than 25,000,000
                    acres.
              ``(2) Grasslands.--
                      ``(A) Limitation.--For purposes of applying the
                    limitations in paragraph (1), no more than 2,000,000
                    acres of the land described in subsection (b)(3) may be
                    enrolled in the program at any one time during the 2013
                    through 2017 fiscal years.
                      ``(B) Priority.--In enrolling acres under
                    subparagraph (A), the Secretary may give priority to
                    land with expiring conservation reserve program
                    contracts.
                      ``(C) Method of enrollment.--In enrolling acres under
                    subparagraph (A), the Secretary shall make the program
                    available to owners or operators of eligible land on a
                    continuous enrollment basis with one or more ranking
                    periods.''.
      (e) Duration of Contract.--Section 1231(e) of the Food Security Act
    of 1985 (16 U.S.C. 3831(e)) is amended by striking paragraphs (2) and
    (3) and inserting the following new paragraph:
              ``(2) Special rule for certain land.--In the case of land
            devoted to hardwood trees, shelterbelts, windbreaks, or
            wildlife corridors under a contract entered into under this
            subchapter, the owner or operator of the land may, within the
            limitations prescribed under paragraph (1), specify the
            duration of the contract.''.
      (f) Conservation Priority Areas.--Section 1231(f) of the Food
    Security Act of 1985 (16 U.S.C. 3831(f)) is amended--
              (1) in paragraph (1), by striking ``watershed areas of the
            Chesapeake Bay Region, the Great Lakes Region, the Long Island
            Sound Region, and other'';
              (2) in paragraph (2), by striking ``watersheds.--Watersheds''
            and inserting ``areas.--Areas''; and
              (3) in paragraph (3), by striking ``a watershed's
            designation--'' and all that follows through the period at the
            end and inserting ``an area's designation if the Secretary
            finds that the area no longer contains actual and significant
            adverse water quality or habitat impacts related to
            agricultural production activities.''.

    SEC. 2002. FARMABLE WETLAND PROGRAM.

      (a) Extension.--Section 1231B(a)(1) of the Food Security Act of 1985
    (16 U.S.C. 3831b(a)(1)) is amended--
              (1) by striking ``2012'' and inserting ``2017''; and
              (2) by striking ``a program'' and inserting ``a farmable
            wetland program''.
      (b) Eligible Acreage.--Section 1231B(b)(1)(B) of the Food Security
    Act of 1985 (16 U.S.C. 3831b(b)(1)(B)) is amended by striking ``flow
    from a row crop agriculture drainage system'' and inserting ``surface
    and subsurface flow from row crop agricultural production''.
      (c) Acreage Limitation.--Section 1231B(c)(1)(B) of the Food Security
    Act of 1985 (16 U.S.C. 3831b(c)(1)(B)) is amended by striking
    ``1,000,000'' and inserting ``750,000''.
      (d) Clerical Amendment.--The heading of section 1231B of the Food
    Security Act of 1985 (16 U.S.C. 3831b) is amended to read as follows:
    ``farmable wetland program''.

    SEC. 2003. DUTIES OF OWNERS AND OPERATORS.

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

    SEC. 2004. DUTIES OF THE SECRETARY.

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

    ``SEC. 1233. DUTIES OF THE SECRETARY.

      ``(a) Cost-share and Rental Payments.--In return for a contract
    entered into by an owner or operator under the conservation reserve
    program, the Secretary shall--
              ``(1) share the cost of carrying out the conservation
            measures and practices set forth in the contract for which the
            Secretary determines that cost sharing is appropriate and in
            the public interest; and
              ``(2) for a period of years not in excess of the term of the
            contract, pay an annual rental payment in an amount necessary
            to compensate for--
                      ``(A) the conversion of highly erodible cropland or
                    other eligible lands normally devoted to the production
                    of an agricultural commodity on a farm or ranch to a
                    less intensive use;
                      ``(B) the retirement of any base history that the
                    owner or operator agrees to retire permanently; and
                      ``(C) the development and management of grasslands
                    for multiple natural resource conservation benefits,
                    including to soil, water, air, and wildlife.
      ``(b) Specified Activities Permitted.--The Secretary shall permit
    certain activities or commercial uses of land that is subject to a
    contract under the conservation reserve program in a manner that is
    consistent with a plan approved by the Secretary, as follows:
              ``(1) Harvesting, grazing, or other commercial use of the
            forage in response to a drought or other emergency created by a
            natural disaster, without any reduction in the rental rate.
              ``(2) Consistent with the conservation of soil, water
            quality, and wildlife habitat (including habitat during nesting
            seasons for birds in the area), and in exchange for a reduction
            of not less than 25 percent in the annual rental rate for the
            acres covered by the authorized activity--
                      ``(A) managed harvesting and other commercial use
                    (including the managed harvesting of biomass), except
                    that in permitting managed harvesting, the Secretary,
                    in coordination with the State technical committee--
                              ``(i) shall develop appropriate vegetation
                            management requirements; and
                              ``(ii) shall identify periods during which
                            managed harvesting may be conducted, such that
                            the frequency is not more than once every three
                            years;
                      ``(B) routine grazing or prescribed grazing for the
                    control of invasive species, except that in permitting
                    such routine grazing or prescribed grazing, the
                    Secretary, in coordination with the State technical
                    committee--
                              ``(i) shall develop appropriate vegetation
                            management requirements and stocking rates for
                            the land that are suitable for continued
                            routine grazing; and
                              ``(ii) shall identify the periods during
                            which routine grazing may be conducted, such
                            that the frequency is not more than once every
                            two years, taking into consideration regional
                            differences such as--
                                      ``(I) climate, soil type, and natural
                                    resources;
                                      ``(II) the number of years that
                                    should be required between routine
                                    grazing activities; and
                                      ``(III) how often during a year in
                                    which routine grazing is permitted that
                                    routine grazing should be allowed to
                                    occur; and
                      ``(C) the installation of wind turbines and
                    associated access, except that in permitting the
                    installation of wind turbines, the Secretary shall
                    determine the number and location of wind turbines that
                    may be installed, taking into account--
                              ``(i) the location, size, and other physical
                            characteristics of the land;
                              ``(ii) the extent to which the land contains
                            wildlife and wildlife habitat; and
                              ``(iii) the purposes of the conservation
                            reserve program under this subchapter.
              ``(3) The intermittent and seasonal use of vegetative buffer
            practices incidental to agricultural production on lands
            adjacent to the buffer such that the permitted use does not
            destroy the permanent vegetative cover.
      ``(c) Authorized Activities on Grasslands.--For eligible land
    described in section 1231(b)(3), the Secretary shall permit the
    following activities:
              ``(1) Common grazing practices, including maintenance and
            necessary cultural practices, on the land in a manner that is
            consistent with maintaining the viability of grassland, forb,
            and shrub species appropriate to that locality.
              ``(2) Haying, mowing, or harvesting for seed production,
            subject to appropriate restrictions during the nesting season
            for critical bird species in the area.
              ``(3) Fire presuppression, fire-related rehabilitation, and
            construction of fire breaks.
              ``(4) Grazing-related activities, such as fencing and
            livestock watering.
      ``(d) Resource Conserving Use.--
              ``(1) In general.--Beginning on the date that is 1 year
            before the date of termination of a contract under the program,
            the Secretary shall allow an owner or operator to make
            conservation and land improvements that facilitate maintaining
            protection of enrolled land after expiration of the contract.
              ``(2) Conservation plan.--The Secretary shall require an
            owner or operator carrying out the activities described in
            paragraph (1) to develop and implement a conservation plan.
              ``(3) Re-enrollment prohibited.--Land improved under
            paragraph (1) may not be re-enrolled in the conservation
            reserve program for 5 years after the date of termination of
            the contract.''.

    SEC. 2005. PAYMENTS.

      (a) Trees, Windbreaks, Shelterbelts, and Wildlife Corridors.--Section
    1234(b)(3)(A) of the Food Security Act of 1985 (16 U.S.C.
    3834(b)(3)(A)) is amended--
              (1) in clause (i), by inserting ``and'' after the semicolon;
              (2) by striking clause (ii); and
              (3) by redesignating clause (iii) as clause (ii).
      (b) Annual Rental Payments.--Section 1234(c) of the Food Security Act
    of 1985 (16 U.S.C. 3834(c)) is amended--
              (1) in paragraph (1), by inserting ``or other eligible
            lands'' after ``highly erodible cropland'' both places it
            appears; and
              (2) by striking paragraph (2) and inserting the following new
            paragraph:
              ``(2) Methods of determination.--
                      ``(A) In general.--The amounts payable to owners or
                    operators in the form of rental payments under
                    contracts entered into under this subchapter may be
                    determined through--
                              ``(i) the submission of bids for such
                            contracts by owners and operators in such
                            manner as the Secretary may prescribe; or
                              ``(ii) such other means as the Secretary
                            determines are appropriate.
                      ``(B) Grasslands.--In the case of eligible land
                    described in section 1231(b)(3), the Secretary shall
                    make annual payments in an amount that is not more than
                    75 percent of the grazing value of the land covered by
                    the contract.''.
      (c) Payment Schedule.--Subsection (d) of section 1234 of the Food
    Security Act of 1985 (16 U.S.C. 3834) is amended to read as follows:
      ``(d) Payment Schedule.--
              ``(1) In general.--Except as otherwise provided in this
            section, payments under this subchapter shall be made in cash
            in such amount and on such time schedule as is agreed on and
            specified in the contract.
              ``(2) Advance payment.--Payments under this subchapter may be
            made in advance of determination of performance.''.
      (d) Payment Limitation.--Section 1234(f) of the Food Security Act of
    1985 (16 U.S.C. 3834(f)) is amended--
              (1) in paragraph (1), by striking ``, including rental
            payments made in the form of in-kind commodities,'';
              (2) by striking paragraph (3); and
              (3) by redesignating paragraph (4) as paragraph (2).

    SEC. 2006. CONTRACT REQUIREMENTS.

      (a) Early Termination by Owner or Operator.--Section 1235(e) of the
    Food Security Act of 1985 (16 U.S.C. 3835(e)) is amended--
              (1) in paragraph (1)(A)--
                      (A) by striking ``The Secretary'' and inserting
                    ``During fiscal year 2013, the Secretary''; and
                      (B) by striking ``before January 1, 1995,'';
              (2) in paragraph (2), by striking subparagraph (C) and
            inserting the following:
                      ``(C) Land devoted to hardwood trees.
                      ``(D) Wildlife habitat, duck nesting habitat,
                    pollinator habitat, upland bird habitat buffer,
                    wildlife food plots, State acres for wildlife
                    enhancement, shallow water areas for wildlife, and rare
                    and declining habitat.
                      ``(E) Farmable wetland and restored wetland.
                      ``(F) Land that contains diversions, erosion control
                    structures, flood control structures, contour grass
                    strips, living snow fences, salinity reducing
                    vegetation, cross wind trap strips, and sediment
                    retention structures.
                      ``(G) Land located within a federally-designated
                    wellhead protection area.
                      ``(H) Land that is covered by an easement under the
                    conservation reserve program.
                      ``(I) Land located within an average width, according
                    to the applicable Natural Resources Conservation
                    Service field office technical guide, of a perennial
                    stream or permanent water body.''; and
              (3) in paragraph (3), by striking ``60 days after the date on
            which the owner or operator submits the notice required under
            paragraph (1)(C)'' and inserting ``upon approval by the
            Secretary''.
      (b) Transition Option for Certain Farmers or Ranchers.--Section
    1235(f) of the Food Security Act of 1985 (16 U.S.C. 3835(f)) is
    amended--
              (1) in paragraph (1)--
                      (A) in the matter preceding subparagraph (A), by
                    striking ``Duties'' and all that follows through ``a
                    beginning farmer'' and inserting ``Transition to
                    covered farmer or rancher.--In the case of a contract
                    modification approved in order to facilitate the
                    transfer of land subject to a contract from a retired
                    farmer or rancher to a beginning farmer'';
                      (B) in subparagraph (A)(i), by inserting ``,
                    including preparing to plant an agricultural crop''
                    after ``improvements'';
                      (C) in subparagraph (D), by striking ``the farmer or
                    rancher'' and inserting ``the covered farmer or
                    rancher''; and
                      (D) in subparagraph (E), by striking ``section
                    1001A(b)(3)(B)'' and inserting ``section 1001''; and
              (2) in paragraph (2), by striking ``requirement of section
            1231(h)(4)(B)'' and inserting ``option pursuant to section
            1234(c)(2)(A)(ii)''.
      (c) Final Year Contract.--Section 1235 of the Food Security Act of
    1985 (16 U.S.C. 3835) is amended by adding at the end the following new
    subsections:
      ``(g) Final Year of Contract.--The Secretary shall not consider an
    owner or operator to be in violation of a term or condition of the
    conservation reserve contract if--
              ``(1) during the year prior to expiration of the contract,
            the land is enrolled in the conservation stewardship program;
            and
              ``(2) the activity required under the conservation
            stewardship program pursuant to such enrollment is consistent
            with this subchapter.
      ``(h) Land Enrolled in Agricultural Conservation Easement Program.--
    The Secretary may terminate or modify a contract entered into under
    this subchapter if eligible land that is subject to such contract is
    transferred into the agricultural conservation easement program under
    subtitle H.''.

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

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

    SEC. 2008. EFFECTIVE DATE.

      (a) In General.--The amendments made by this subtitle shall take
    effect on October 1, 2012, except the amendment made by section
    2001(d), which shall take effect on the date of the enactment of this
    Act.
      (b) Effect on Existing Contracts.--
              (1) In general.--Except as provided in paragraph (2), the
            amendments made by this subtitle shall not affect the validity
            or terms of any contract entered into by the Secretary of
            Agriculture under subchapter B of chapter 1 of subtitle D of
            title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et
            seq.) before October 1, 2012, or any payments required to be
            made in connection with the contract.
              (2) Updating of existing contracts.--The Secretary shall
            permit an owner or operator of land subject to a contract
            entered into under subchapter B of chapter 1 of subtitle D of
            title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et
            seq.) before October 1, 2012, to update the contract to reflect
            the activities and uses of land under contract permitted under
            the terms and conditions of section 1233(b) of that Act (as
            amended by section 2004), as determined appropriate by the
            Secretary.

                  Subtitle B--Conservation Stewardship Program

    SEC. 2101. CONSERVATION STEWARDSHIP PROGRAM.

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

                ``Subchapter B--Conservation Stewardship Program

    ``SEC. 1238D. DEFINITIONS.

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

    ``SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM.

      ``(a) Establishment and Purpose.--During each of fiscal years 2013
    through 2017, the Secretary shall carry out a conservation stewardship
    program to encourage producers to address priority resource concerns in
    a comprehensive manner--
              ``(1) by undertaking additional conservation activities; and
              ``(2) by improving, maintaining, and managing existing
            conservation activities.
      ``(b) Exclusions.--
              ``(1) Land enrolled in other conservation programs.--Subject
            to paragraph (2), the following land (even if covered by the
            definition of eligible land) is not eligible for enrollment in
            the program:
                      ``(A) Land enrolled in the conservation reserve
                    program, unless--
                              ``(i) the conservation reserve contract will
                            expire at the end of the fiscal year in which
                            the land is to be enrolled in the program; and
                              ``(ii) conservation reserve program payments
                            for land enrolled in the program cease before
                            the first program payment is made to the
                            applicant under this subchapter.
                      ``(B) Land enrolled in a wetland easement through the
                    agricultural conservation easement program.
                      ``(C) Land enrolled in the conservation security
                    program.
              ``(2) Conversion to cropland.--Eligible land used for crop
            production after October 1, 2012, that had not been planted,
            considered to be planted, or devoted to crop production for at
            least 4 of the 6 years preceding that date shall not be the
            basis for any payment under the program, unless the land does
            not meet the requirement because--
                      ``(A) the land had previously been enrolled in the
                    conservation reserve program;
                      ``(B) the land has been maintained using long-term
                    crop rotation practices, as determined by the
                    Secretary; or
                      ``(C) the land is incidental land needed for
                    efficient operation of the farm or ranch, as determined
                    by the Secretary.

    ``SEC. 1238F. STEWARDSHIP CONTRACTS.

      ``(a) Submission of Contract Offers.--To be eligible to participate
    in the conservation stewardship program, a producer shall submit to the
    Secretary a contract offer for the agricultural operation that--
              ``(1) demonstrates to the satisfaction of the Secretary that
            the producer, at the time of the contract offer, meets or
            exceeds the stewardship threshold for at least 2 priority
            resource concerns; and
              ``(2) would, at a minimum, meet or exceed the stewardship
            threshold for at least 1 additional priority resource concern
            by the end of the stewardship contract by--
                      ``(A) installing and adopting additional conservation
                    activities; and
                      ``(B) improving, maintaining, and managing existing
                    conservation activities across the entire agricultural
                    operation in a manner that increases or extends the
                    conservation benefits in place at the time the contract
                    offer is accepted by the Secretary.
      ``(b) Evaluation of Contract Offers.--
              ``(1) Ranking of applications.--In evaluating contract offers
            submitted under subsection (a), the Secretary shall rank
            applications based on--
                      ``(A) the level of conservation treatment on all
                    applicable priority resource concerns at the time of
                    application;
                      ``(B) the degree to which the proposed conservation
                    activities effectively increase conservation
                    performance;
                      ``(C) the number of applicable priority resource
                    concerns proposed to be treated to meet or exceed the
                    stewardship threshold by the end of the contract;
                      ``(D) the extent to which other priority resource
                    concerns will be addressed to meet or exceed the
                    stewardship threshold by the end of the contract
                    period;
                      ``(E) the extent to which the actual and anticipated
                    conservation benefits from the contract are provided at
                    the least cost relative to other similarly beneficial
                    contract offers; and
                      ``(F) the extent to which priority resource concerns
                    will be addressed when transitioning from the
                    conservation reserve program to agricultural
                    production.
              ``(2) Prohibition.--The Secretary may not assign a higher
            priority to any application because the applicant is willing to
            accept a lower payment than the applicant would otherwise be
            eligible to receive.
              ``(3) Additional criteria.--The Secretary may develop and use
            such additional criteria that the Secretary determines are
            necessary to ensure that national, State, and local priority
            resource concerns are effectively addressed.
      ``(c) Entering Into Contracts.--After a determination that a producer
    is eligible for the program under subsection (a), and a determination
    that the contract offer ranks sufficiently high under the evaluation
    criteria under subsection (b), the Secretary shall enter into a
    conservation stewardship contract with the producer to enroll the
    eligible land to be covered by the contract.
      ``(d) Contract Provisions.--
              ``(1) Term.--A conservation stewardship contract shall be for
            a term of 5 years.
              ``(2) Required provisions.--The conservation stewardship
            contract of a producer shall--
                      ``(A) state the amount of the payment the Secretary
                    agrees to make to the producer for each year of the
                    conservation stewardship contract under section
                    1238G(d);
                      ``(B) require the producer--
                              ``(i) to implement a conservation stewardship
                            plan that describes the program purposes to be
                            achieved through 1 or more conservation
                            activities;
                              ``(ii) to maintain and supply information as
                            required by the Secretary to determine
                            compliance with the conservation stewardship
                            plan and any other requirements of the program;
                            and
                              ``(iii) not to conduct any activities on the
                            agricultural operation that would tend to
                            defeat the purposes of the program;
                      ``(C) permit all economic uses of the eligible land
                    that--
                              ``(i) maintain the agricultural nature of the
                            land; and
                              ``(ii) are consistent with the conservation
                            purposes of the conservation stewardship
                            contract;
                      ``(D) include a provision to ensure that a producer
                    shall not be considered in violation of the contract
                    for failure to comply with the contract due to
                    circumstances beyond the control of the producer,
                    including a disaster or related condition, as
                    determined by the Secretary;
                      ``(E) include provisions requiring that upon the
                    violation of a term or condition of the contract at any
                    time the producer has control of the land--
                              ``(i) if the Secretary determines that the
                            violation warrants termination of the
                            contract--
                                      ``(I) the producer shall forfeit all
                                    rights to receive payments under the
                                    contract; and
                                      ``(II) the producer shall refund all
                                    or a portion of the payments received
                                    by the producer under the contract,
                                    including any interest on the payments,
                                    as determined by the Secretary; or
                              ``(ii) if the Secretary determines that the
                            violation does not warrant termination of the
                            contract, the producer shall refund or accept
                            adjustments to the payments provided to the
                            producer, as the Secretary determines to be
                            appropriate;
                      ``(F) include provisions in accordance with
                    paragraphs (3) and (4) of this section; and
                      ``(G) include any additional provisions the Secretary
                    determines are necessary to carry out the program.
              ``(3) Change of interest in land subject to a contract.--
                      ``(A) In general.--At the time of application, a
                    producer shall have control of the eligible land to be
                    enrolled in the program. Except as provided in
                    subparagraph (B), a change in the interest of a
                    producer in eligible land covered by a contract under
                    the program shall result in the termination of the
                    contract with regard to that land.
                      ``(B) Transfer of duties and rights.--Subparagraph
                    (A) shall not apply if--
                              ``(i) within a reasonable period of time (as
                            determined by the Secretary) after the date of
                            the change in the interest in eligible land
                            covered by a contract under the program, the
                            transferee of the land provides written notice
                            to the Secretary that all duties and rights
                            under the contract have been transferred to,
                            and assumed by, the transferee for the portion
                            of the land transferred;
                              ``(ii) the transferee meets the eligibility
                            requirements of the program; and
                              ``(iii) the Secretary approves the transfer
                            of all duties and rights under the contract.
              ``(4) Modification and termination of contracts.--
                      ``(A) Voluntary modification or termination.--The
                    Secretary may modify or terminate a contract with a
                    producer if--
                              ``(i) the producer agrees to the modification
                            or termination; and
                              ``(ii) the Secretary determines that the
                            modification or termination is in the public
                            interest.
                      ``(B) Involuntary termination.--The Secretary may
                    terminate a contract if the Secretary determines that
                    the producer violated the contract.
              ``(5) Repayment.--If a contract is terminated, the Secretary
            may, consistent with the purposes of the program--
                      ``(A) allow the producer to retain payments already
                    received under the contract; or
                      ``(B) require repayment, in whole or in part, of
                    payments received and assess liquidated damages.
      ``(e) Contract Renewal.--At the end of the initial 5-year contract
    period, the Secretary may allow the producer to renew the contract for
    1 additional 5-year period if the producer--
              ``(1) demonstrates compliance with the terms of the initial
            contract;
              ``(2) agrees to adopt and continue to integrate conservation
            activities across the entire agricultural operation, as
            determined by the Secretary; and
              ``(3) agrees, by the end of the contract period--
                      ``(A) to meet the stewardship threshold of at least
                    two additional priority resource concerns on the
                    agricultural operation; or
                      ``(B) to exceed the stewardship threshold of two
                    existing priority resource concerns that are specified
                    by the Secretary in the initial contract.

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

      ``(a) In General.--To achieve the conservation goals of a contract
    under the conservation stewardship program, the Secretary shall--
              ``(1) make the program available to eligible producers on a
            continuous enrollment basis with 1 or more ranking periods, one
            of which shall occur in the first quarter of each fiscal year;
              ``(2) identify not less than 5 priority resource concerns in
            a particular watershed or other appropriate region or area
            within a State; and
              ``(3) establish a science-based stewardship threshold for
            each priority resource concern identified under paragraph (2).
      ``(b) Allocation to States.--The Secretary shall allocate acres to
    States for enrollment, based--
              ``(1) primarily on each State's proportion of eligible land
            to the total acreage of eligible land in all States; and
              ``(2) also on consideration of--
                      ``(A) the extent and magnitude of the conservation
                    needs associated with agricultural production in each
                    State;
                      ``(B) the degree to which implementation of the
                    program in the State is, or will be, effective in
                    helping producers address those needs; and
                      ``(C) other considerations to achieve equitable
                    geographic distribution of funds, as determined by the
                    Secretary.
      ``(c) Acreage Enrollment Limitation.--During the period beginning on
    October 1, 2012, and ending on September 30, 2021, the Secretary shall,
    to the maximum extent practicable--
              ``(1) enroll in the program an additional 9,000,000 acres for
            each fiscal year; and
              ``(2) manage the program to achieve a national average rate
            of $18 per acre, which shall include the costs of all financial
            assistance, technical assistance, and any other expenses
            associated with enrollment or participation in the program.
      ``(d) Conservation Stewardship Payments.--
              ``(1) Availability of payments.--The Secretary shall provide
            annual payments under the program to compensate the producer
            for--
                      ``(A) installing and adopting additional conservation
                    activities; and
                      ``(B) improving, maintaining, and managing
                    conservation activities in place at the agricultural
                    operation of the producer at the time the contract
                    offer is accepted by the Secretary.
              ``(2) Payment amount.--The amount of the conservation
            stewardship annual payment shall be determined by the Secretary
            and based, to the maximum extent practicable, on the following
            factors:
                      ``(A) Costs incurred by the producer associated with
                    planning, design, materials, installation, labor,
                    management, maintenance, or training.
                      ``(B) Income forgone by the producer.
                      ``(C) Expected conservation benefits.
                      ``(D) The extent to which priority resource concerns
                    will be addressed through the installation and adoption
                    of conservation activities on the agricultural
                    operation.
                      ``(E) The level of stewardship in place at the time
                    of application and maintained over the term of the
                    contract.
                      ``(F) The degree to which the conservation activities
                    will be integrated across the entire agricultural
                    operation for all applicable priority resource concerns
                    over the term of the contract.
                      ``(G) Such other factors as determined appropriate by
                    the Secretary.
              ``(3) Exclusions.--A payment to a producer under this
            subsection shall not be provided for--
                      ``(A) the design, construction, or maintenance of
                    animal waste storage or treatment facilities or
                    associated waste transport or transfer devices for
                    animal feeding operations; or
                      ``(B) conservation activities for which there is no
                    cost incurred or income forgone to the producer.
              ``(4) Delivery of payments.--In making payments under this
            subsection, the Secretary shall, to the extent practicable--
                      ``(A) prorate conservation performance over the term
                    of the contract so as to accommodate, to the extent
                    practicable, producers earning equal annual payments in
                    each fiscal year; and
                      ``(B) make payments as soon as practicable after
                    October 1 of each fiscal year for activities carried
                    out in the previous fiscal year.
      ``(e) Supplemental Payments for Resource-conserving Crop Rotations.--
              ``(1) Availability of payments.--The Secretary shall provide
            additional payments to producers that, in participating in the
            program, agree to adopt or improve resource-conserving crop
            rotations to achieve beneficial crop rotations as appropriate
            for the eligible land of the producers.
              ``(2) Beneficial crop rotations.--The Secretary shall
            determine whether a resource-conserving crop rotation is a
            beneficial crop rotation eligible for additional payments under
            paragraph (1) based on whether the resource-conserving crop
            rotation is designed to provide natural resource conservation
            and production benefits.
              ``(3) Eligibility.--To be eligible to receive a payment
            described in paragraph (1), a producer shall agree to adopt and
            maintain beneficial resource-conserving crop rotations for the
            term of the contract.
              ``(4) Resource-conserving crop rotation.--In this subsection,
            the term `resource-conserving crop rotation' means a crop
            rotation that--
                      ``(A) includes at least 1 resource conserving crop
                    (as defined by the Secretary);
                      ``(B) reduces erosion;
                      ``(C) improves soil fertility and tilth;
                      ``(D) interrupts pest cycles; and
                      ``(E) in applicable areas, reduces depletion of soil
                    moisture or otherwise reduces the need for irrigation.
      ``(f) Payment Limitations.--A person or legal entity may not receive,
    directly or indirectly, payments under the program that, in the
    aggregate, exceed $200,000 under all contracts entered into during
    fiscal years 2013 through 2017, excluding funding arrangements with
    Indian tribes, regardless of the number of contracts entered into under
    the program by the person or legal entity.
      ``(g) Specialty Crop and Organic Producers.--The Secretary shall
    ensure that outreach and technical assistance are available, and
    program specifications are appropriate to enable specialty crop and
    organic producers to participate in the program.
      ``(h) Coordination With Organic Certification.--The Secretary shall
    establish a transparent means by which producers may initiate organic
    certification under the Organic Foods Production Act of 1990 (7 U.S.C.
    6501 et seq.) while participating in a contract under the program.
      ``(i) Regulations.--The Secretary shall promulgate regulations that--
              ``(1) prescribe such other rules as the Secretary determines
            to be necessary to ensure a fair and reasonable application of
            the limitations established under subsection (f); and
              ``(2) otherwise enable the Secretary to carry out the
            program.''.
      (b) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.
      (c) Effect on Existing Contracts.--
              (1) In general.--The amendment made by this section shall not
            affect the validity or terms of any contract entered into by
            the Secretary of Agriculture under subchapter B of chapter 2 of
            subtitle D of title XII of the Food Security Act of 1985 (16
            U.S.C. 3838d et seq.) before October 1, 2012, or any payments
            required to be made in connection with the contract.
              (2) Conservation stewardship program.--Funds made available
            under section 1241(a)(4) of the Food Security Act of 1985 (16
            U.S.C. 3841(a)(4)) (as amended by section 2601(a) of this
            title) may be used to administer and make payments to program
            participants that enrolled into contracts during any of fiscal
            years 2009 through 2012.

              Subtitle C--Environmental Quality Incentives Program

    SEC. 2201. PURPOSES.

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

    SEC. 2202. ESTABLISHMENT AND ADMINISTRATION.

      Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-2)
    is amended--
              (1) in subsection (a), by striking ``2014'' and inserting
            ``2017'';
              (2) in subsection (b), by striking paragraph (2) and
            inserting the following new paragraph:
              ``(2) Term.--A contract under the program shall have a term
            that does not exceed 10 years.'';
              (3) in subsection (d)(4)--
                      (A) in subparagraph (A), in the matter preceding
                    clause (i), by inserting ``, veteran farmer or rancher
                    (as defined in section 2501(e) of the Food,
                    Agriculture, Conservation, and Trade Act of 1990 (7
                    U.S.C. 2279(e))),'' before ``or a beginning farmer or
                    rancher''; and
                      (B) by striking subparagraph (B) and inserting the
                    following new subparagraph:
                      ``(B) Advance payments.--
                              ``(i) In general.--Not more than 50 percent
                            of the amount determined under subparagraph (A)
                            may be provided in advance for the purpose of
                            purchasing materials or contracting.
                              ``(ii) Return of funds.--If funds provided in
                            advance are not expended during the 90-day
                            period beginning on the date of receipt of the
                            funds, the funds shall be returned within a
                            reasonable time frame, as determined by the
                            Secretary.'';
              (4) by striking subsection (f) and inserting the following
            new subsection:
      ``(f) Allocation of Funding.--
              ``(1) Livestock.--For each of fiscal years 2013 through 2017,
            at least 60 percent of the funds made available for payments
            under the program shall be targeted at practices relating to
            livestock production.
              ``(2) Wildlife habitat.--For each of fiscal years 2013
            through 2017, 5 percent of the funds made available for
            payments under the program shall be targeted at practices
            benefitting wildlife habitat.'';
              (5) in subsection (g)--
                      (A) in the subsection heading, by striking
                    ``Federally Recognized Native American Indian Tribes
                    and Alaska Native Corporations'' and inserting ``Indian
                    Tribes'';
                      (B) by striking ``federally recognized Native
                    American Indian Tribes and Alaska Native Corporations
                    (including their affiliated membership organizations)''
                    and inserting ``Indian tribes''; and
                      (C) by striking ``or Native Corporation''; and
              (6) by adding at the end the following:
      ``(j) Wildlife Habitat Incentive Practice.--The Secretary shall
    provide payments under the program for conservation practices that
    support the restoration, development, and improvement of wildlife
    habitat on eligible land, including--
              ``(1) upland wildlife habitat;
              ``(2) wetland wildlife habitat;
              ``(3) habitat for threatened and endangered species;
              ``(4) fish habitat;
              ``(5) habitat on pivot corners and other irregular areas of a
            field; and
              ``(6) other types of wildlife habitat, as determined
            appropriate by the Secretary.''.

    SEC. 2203. EVALUATION OF APPLICATIONS.

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

    SEC. 2204. DUTIES OF PRODUCERS.

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

    SEC. 2205. LIMITATION ON PAYMENTS.

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

    ``SEC. 1240G. LIMITATION ON PAYMENTS.

      ``A person or legal entity may not receive, directly or indirectly,
    cost share or incentive payments under this chapter that, in aggregate,
    exceed $450,000 for all contracts entered into under this chapter by
    the person or legal entity during the period of fiscal years 2013
    through 2017, regardless of the number of contracts entered into under
    this chapter by the person or legal entity.''.

    SEC. 2206. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

      Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8)
    is amended--
              (1) in subsection (a)(2)--
                      (A) in subparagraph (C), by striking ``; and'' and
                    inserting a semicolon;
                      (B) in subparagraph (D), by striking the period and
                    inserting a semicolon; and
                      (C) by adding at the end the following new
                    subparagraphs:
                      ``(E) facilitate on-farm conservation research and
                    demonstration activities; and
                      ``(F) facilitate pilot testing of new technologies or
                    innovative conservation practices.''; and
              (2) by striking subsection (b) and inserting the following
            new subsection:
      ``(b) Reporting.--Not later than December 31, 2013, and every two
    years thereafter, the Secretary shall submit to the Committee on
    Agriculture, Nutrition, and Forestry of the Senate and the Committee on
    Agriculture of the House of Representatives a report on the status of
    projects funded under this section, including--
              ``(1) funding awarded;
              ``(2) project results; and
              ``(3) incorporation of project findings, such as new
            technology and innovative approaches, into the conservation
            efforts implemented by the Secretary.''.

    SEC. 2207. EFFECTIVE DATE.

      (a) In General.--The amendments made by this subtitle shall take
    effect on October 1, 2012.
      (b) Effect on Existing Contracts.--The amendments made by this
    subtitle shall not affect the validity or terms of any contract entered
    into by the Secretary of Agriculture under chapter 4 of subtitle D of
    title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.)
    before October 1, 2012, or any payments required to be made in
    connection with the contract.

             Subtitle D--Agricultural Conservation Easement Program

    SEC. 2301. AGRICULTURAL CONSERVATION EASEMENT PROGRAM.

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

            ``Subtitle H--Agricultural Conservation Easement Program

    ``SEC. 1265. ESTABLISHMENT AND PURPOSES.

      ``(a) Establishment.--The Secretary shall establish an agricultural
    conservation easement program for the conservation of eligible land and
    natural resources through easements or other interests in land.
      ``(b) Purposes.--The purposes of the program are to--
              ``(1) combine the purposes and coordinate the functions of
            the wetlands reserve program established under section 1237,
            the grassland reserve program established under section 1238N,
            and the farmland protection program established under section
            1238I, as such sections were in effect on September 30, 2012;
              ``(2) restore, protect, and enhance wetlands on eligible
            land;
              ``(3) protect the agricultural use and related conservation
            values of eligible land by limiting nonagricultural uses of
            that land; and
              ``(4) protect grazing uses and related conservation values by
            restoring and conserving eligible land.

    ``SEC. 1265A. DEFINITIONS.

      ``In this subtitle:
              ``(1) Agricultural land easement.--The term `agricultural
            land easement' means an easement or other interest in eligible
            land that--
                      ``(A) is conveyed for the purpose of protecting
                    natural resources and the agricultural nature of the
                    land; and
                      ``(B) permits the landowner the right to continue
                    agricultural production and related uses subject to an
                    agricultural land easement plan, as approved by the
                    Secretary.
              ``(2) Eligible entity.--The term `eligible entity' means--
                      ``(A) an agency of State or local government or an
                    Indian tribe (including a farmland protection board or
                    land resource council established under State law); or
                      ``(B) an organization that is--
                              ``(i) organized for, and at all times since
                            the formation of the organization has been
                            operated principally for, 1 or more of the
                            conservation purposes specified in clause (i),
                            (ii), (iii), or (iv) of section 170(h)(4)(A) of
                            the Internal Revenue Code of 1986;
                              ``(ii) an organization described in section
                            501(c)(3) of that Code that is exempt from
                            taxation under section 501(a) of that Code; or
                              ``(iii) described in--
                                      ``(I) paragraph (1) or (2) of section
                                    509(a) of that Code; or
                                      ``(II) section 509(a)(3) of that Code
                                    and is controlled by an organization
                                    described in section 509(a)(2) of that
                                    Code.
              ``(3) Eligible land.--The term `eligible land' means private
            or tribal land that is--
                      ``(A) in the case of an agricultural land easement,
                    agricultural land, including land on a farm or ranch--
                              ``(i) that is subject to a pending offer for
                            purchase of an agricultural land easement from
                            an eligible entity;
                              ``(ii) that--
                                      ``(I) has prime, unique, or other
                                    productive soil;
                                      ``(II) contains historical or
                                    archaeological resources; or
                                      ``(III) the protection of which will
                                    further a State or local policy
                                    consistent with the purposes of the
                                    program; and
                              ``(iii) that is--
                                      ``(I) cropland;
                                      ``(II) rangeland;
                                      ``(III) grassland or land that
                                    contains forbs, or shrubland for which
                                    grazing is the predominate use;
                                      ``(IV) pastureland; or
                                      ``(V) nonindustrial private forest
                                    land that contributes to the economic
                                    viability of an offered parcel or
                                    serves as a buffer to protect such land
                                    from development;
                      ``(B) in the case of a wetland easement, a wetland or
                    related area, including--
                              ``(i) farmed or converted wetlands, together
                            with adjacent land that is functionally
                            dependent on that land, if the Secretary
                            determines it--
                                      ``(I) is likely to be successfully
                                    restored in a cost effective manner;
                                    and
                                      ``(II) will maximize the wildlife
                                    benefits and wetland functions and
                                    values, as determined by the Secretary
                                    in consultation with the Secretary of
                                    the Interior at the local level;
                              ``(ii) cropland or grassland that was used
                            for agricultural production prior to flooding
                            from the natural overflow of--
                                      ``(I) a closed basin lake and
                                    adjacent land that is functionally
                                    dependent upon it, if the State or
                                    other entity is willing to provide 50
                                    percent share of the cost of an
                                    easement;
                                      ``(II) a pothole and adjacent land
                                    that is functionally dependent on it;
                              ``(iii) farmed wetlands and adjoining lands
                            that--
                                      ``(I) are enrolled in the
                                    conservation reserve program;
                                      ``(II) have the highest wetland
                                    functions and values, as determined by
                                    the Secretary; and
                                      ``(III) are likely to return to
                                    production after they leave the
                                    conservation reserve program;
                              ``(iv) riparian areas that link wetlands that
                            are protected by easements or some other device
                            that achieves the same purpose as an easement;
                            or
                              ``(v) other wetlands of an owner that would
                            not otherwise be eligible, if the Secretary
                            determines that the inclusion of such wetlands
                            in a wetland easement would significantly add
                            to the functional value of the easement; or
                      ``(C) in the case of either an agricultural land
                    easement or wetland easement, other land that is
                    incidental to land described in subparagraph (A) or
                    (B), if the Secretary determines that it is necessary
                    for the efficient administration of the easements under
                    this program.
              ``(4) Program.--The term `program' means the agricultural
            conservation easement program established by this subtitle.
              ``(5) Wetland easement.--The term `wetland easement' means a
            reserved interest in eligible land that--
                      ``(A) is defined and delineated in a deed; and
                      ``(B) stipulates--
                              ``(i) the rights, title, and interests in
                            land conveyed to the Secretary; and
                              ``(ii) the rights, title, and interests in
                            land that are reserved to the landowner.

    ``SEC. 1265B. AGRICULTURAL LAND EASEMENTS.

      ``(a) Availability of Assistance.--The Secretary shall facilitate and
    provide funding for--
              ``(1) the purchase by eligible entities of agricultural land
            easements and other interests in eligible land; and
              ``(2) technical assistance to provide for the conservation of
            natural resources pursuant to an agricultural land easement
            plan.
      ``(b) Cost-share Assistance.--
              ``(1) In general.--The Secretary shall protect the
            agricultural use, including grazing, and related conservation
            values of eligible land through cost-share assistance to
            eligible entities for purchasing agricultural land easements.
              ``(2) Scope of assistance available.--
                      ``(A) Federal share.--An agreement described in
                    paragraph (4) shall provide for a Federal share
                    determined by the Secretary of an amount not to exceed
                    50 percent of the fair market value of the agricultural
                    land easement or other interest in land, as determined
                    by the Secretary using--
                              ``(i) the Uniform Standards of Professional
                            Appraisal Practice;
                              ``(ii) an area-wide market analysis or
                            survey; or
                              ``(iii) another industry-approved method.
                      ``(B) Non-federal share.--
                              ``(i) In general.--Under the agreement, the
                            eligible entity shall provide a share that is
                            at least equivalent to that provided by the
                            Secretary.
                              ``(ii) Source of contribution.--An eligible
                            entity may include as part of its share a
                            charitable donation or qualified conservation
                            contribution (as defined by section 170(h) of
                            the Internal Revenue Code of 1986) from the
                            private landowner if the eligible entity
                            contributes its own cash resources in an amount
                            that is at least 50 percent of the amount
                            contributed by the Secretary.
                      ``(C) Exception.--In the case of grassland of special
                    environmental significance, as determined by the
                    Secretary, the Secretary may provide an amount not to
                    exceed 75 percent of the fair market value of the
                    agricultural land easement.
              ``(3) Evaluation and ranking of applications.--
                      ``(A) Criteria.--The Secretary shall establish
                    evaluation and ranking criteria to maximize the benefit
                    of Federal investment under the program.
                      ``(B) Considerations.--In establishing the criteria,
                    the Secretary shall emphasize support for--
                              ``(i) protecting agricultural uses and
                            related conservation values of the land; and
                              ``(ii) maximizing the protection of areas
                            devoted to agricultural use.
                      ``(C) Bidding down.--If the Secretary determines that
                    2 or more applications for cost-share assistance are
                    comparable in achieving the purpose of the program, the
                    Secretary shall not assign a higher priority to any of
                    those applications solely on the basis of lesser cost
                    to the program.
              ``(4) Agreements with eligible entities.--
                      ``(A) In general.--The Secretary shall enter into
                    agreements with eligible entities to stipulate the
                    terms and conditions under which the eligible entity is
                    permitted to use cost-share assistance provided under
                    this section.
                      ``(B) Length of agreements.--An agreement shall be
                    for a term that is--
                              ``(i) in the case of an eligible entity
                            certified under the process described in
                            paragraph (5), a minimum of five years; and
                              ``(ii) for all other eligible entities, at
                            least three, but not more than five years.
                      ``(C) Minimum terms and conditions.--An eligible
                    entity shall be authorized to use its own terms and
                    conditions for agricultural land easements so long as
                    the Secretary determines such terms and conditions--
                              ``(i) are consistent with the purposes of the
                            program;
                              ``(ii) permit effective enforcement of the
                            conservation purposes of such easements;
                              ``(iii) include a right of enforcement for
                            the Secretary, that may be used only if the
                            terms of the easement are not enforced by the
                            holder of the easement;
                              ``(iv) subject the land in which an interest
                            is purchased to an agricultural land easement
                            plan that--
                                      ``(I) describes the activities which
                                    promote the long-term viability of the
                                    land to meet the purposes for which the
                                    easement was acquired;
                                      ``(II) requires the management of
                                    grasslands according to a grasslands
                                    management plan; and
                                      ``(III) includes a conservation plan,
                                    where appropriate, and requires, at the
                                    option of the Secretary, the conversion
                                    of highly erodible cropland to less
                                    intensive uses; and
                              ``(v) include a limit on the impervious
                            surfaces to be allowed that is consistent with
                            the agricultural activities to be conducted.
                      ``(D) Substitution of qualified projects.--An
                    agreement shall allow, upon mutual agreement of the
                    parties, substitution of qualified projects that are
                    identified at the time of the proposed substitution.
                      ``(E) Effect of violation.--If a violation occurs of
                    a term or condition of an agreement under this
                    subsection--
                              ``(i) the Secretary may terminate the
                            agreement; and
                              ``(ii) the Secretary may require the eligible
                            entity to refund all or part of any payments
                            received by the entity under the program, with
                            interest on the payments as determined
                            appropriate by the Secretary.
              ``(5) Certification of eligible entities.--
                      ``(A) Certification process.--The Secretary shall
                    establish a process under which the Secretary may--
                              ``(i) directly certify eligible entities that
                            meet established criteria;
                              ``(ii) enter into long-term agreements with
                            certified eligible entities; and
                              ``(iii) accept proposals for cost-share
                            assistance for the purchase of agricultural
                            land easements throughout the duration of such
                            agreements.
                      ``(B) Certification criteria.--In order to be
                    certified, an eligible entity shall demonstrate to the
                    Secretary that the entity will maintain, at a minimum,
                    for the duration of the agreement--
                              ``(i) a plan for administering easements that
                            is consistent with the purpose of this
                            subtitle;
                              ``(ii) the capacity and resources to monitor
                            and enforce agricultural land easements; and
                              ``(iii) policies and procedures to ensure--
                                      ``(I) the long-term integrity of
                                    agricultural land easements on eligible
                                    land;
                                      ``(II) timely completion of
                                    acquisitions of such easements; and
                                      ``(III) timely and complete
                                    evaluation and reporting to the
                                    Secretary on the use of funds provided
                                    under the program.
                      ``(C) Review and revision.--
                              ``(i) Review.--The Secretary shall conduct a
                            review of eligible entities certified under
                            subparagraph (A) every three years to ensure
                            that such entities are meeting the criteria
                            established under subparagraph (B).
                              ``(ii) Revocation.--If the Secretary finds
                            that the certified eligible entity no longer
                            meets the criteria established under
                            subparagraph (B), the Secretary may--
                                      ``(I) allow the certified eligible
                                    entity a specified period of time, at a
                                    minimum 180 days, in which to take such
                                    actions as may be necessary to meet the
                                    criteria; and
                                      ``(II) revoke the certification of
                                    the eligible entity, if after the
                                    specified period of time, the certified
                                    eligible entity does not meet such
                                    criteria.
      ``(c) Method of Enrollment.--The Secretary shall enroll eligible land
    under this section through the use of--
              ``(1) permanent easements; or
              ``(2) easements for the maximum duration allowed under
            applicable State laws.
      ``(d) Technical Assistance.--The Secretary may provide technical
    assistance, if requested, to assist in--
              ``(1) compliance with the terms and conditions of easements;
            and
              ``(2) implementation of an agricultural land easement plan.

    ``SEC. 1265C. WETLAND EASEMENTS.

      ``(a) Availability of Assistance.--The Secretary shall provide
    assistance to owners of eligible land to restore, protect, and enhance
    wetlands through--
              ``(1) wetland easements and related wetland easement plans;
            and
              ``(2) technical assistance.
      ``(b) Easements.--
              ``(1) Method of enrollment.--The Secretary shall enroll
            eligible land under this section through the use of--
                      ``(A) 30-year easements;
                      ``(B) permanent easements;
                      ``(C) easements for the maximum duration allowed
                    under applicable State laws; or
                      ``(D) as an option for Indian tribes only, 30-year
                    contracts (which shall be considered to be 30-year
                    easements for the purposes of this subtitle).
              ``(2) Limitations.--
                      ``(A) Ineligible land.--The Secretary may not acquire
                    easements on--
                              ``(i) land established to trees under the
                            conservation reserve program, except in cases
                            where the Secretary determines it would further
                            the purposes of the program; and
                              ``(ii) farmed wetlands or converted wetlands
                            where the conversion was not commenced prior to
                            December 23, 1985.
                      ``(B) Changes in ownership.--No wetland easement
                    shall be created on land that has changed ownership
                    during the preceding 24-month period unless--
                              ``(i) the new ownership was acquired by will
                            or succession as a result of the death of the
                            previous owner;
                              ``(ii)(I) the ownership change occurred
                            because of foreclosure on the land; and
                              ``(II) immediately before the foreclosure,
                            the owner of the land exercises a right of
                            redemption from the mortgage holder in
                            accordance with State law; or
                              ``(iii) the Secretary determines that the
                            land was acquired under circumstances that give
                            adequate assurances that such land was not
                            acquired for the purposes of placing it in the
                            program.
              ``(3) Evaluation and ranking of offers.--
                      ``(A) Criteria.--The Secretary shall establish
                    evaluation and ranking criteria to maximize the benefit
                    of Federal investment under the program.
                      ``(B) Considerations.--When evaluating offers from
                    landowners, the Secretary may consider--
                              ``(i) the conservation benefits of obtaining
                            a wetland easement, including the potential
                            environmental benefits if the land was removed
                            from agricultural production;
                              ``(ii) the cost-effectiveness of each wetland
                            easement, so as to maximize the environmental
                            benefits per dollar expended;
                              ``(iii) whether the landowner or another
                            person is offering to contribute financially to
                            the cost of the wetland easement to leverage
                            Federal funds; and
                              ``(iv) such other factors as the Secretary
                            determines are necessary to carry out the
                            purposes of the program.
                      ``(C) Priority.--The Secretary shall place priority
                    on acquiring wetland easements based on the value of
                    the wetland easement for protecting and enhancing
                    habitat for migratory birds and other wildlife.
              ``(4) Agreement.--To be eligible to place eligible land into
            the program through a wetland easement, the owner of such land
            shall enter into an agreement with the Secretary to--
                      ``(A) grant an easement on such land to the
                    Secretary;
                      ``(B) authorize the implementation of a wetland
                    easement plan developed for the eligible land under
                    subsection (f);
                      ``(C) create and record an appropriate deed
                    restriction in accordance with applicable State law to
                    reflect the easement agreed to;
                      ``(D) provide a written statement of consent to such
                    easement signed by those holding a security interest in
                    the land;
                      ``(E) comply with the terms and conditions of the
                    easement and any related agreements; and
                      ``(F) permanently retire any existing base history
                    for the land on which the easement has been obtained.
              ``(5) Terms and conditions of easement.--
                      ``(A) In general.--A wetland easement shall include
                    terms and conditions that--
                              ``(i) permit--
                                      ``(I) repairs, improvements, and
                                    inspections on the land that are
                                    necessary to maintain existing public
                                    drainage systems; and
                                      ``(II) owners to control public
                                    access on the easement areas while
                                    identifying access routes to be used
                                    for restoration activities and
                                    management and easement monitoring;
                              ``(ii) prohibit--
                                      ``(I) the alteration of wildlife
                                    habitat and other natural features of
                                    such land, unless specifically
                                    authorized by the Secretary;
                                      ``(II) the spraying of such land with
                                    chemicals or the mowing of such land,
                                    except where such spraying or mowing is
                                    authorized by the Secretary or is
                                    necessary--
                                              ``(aa) to comply with Federal
                                            or State noxious weed control
                                            laws;
                                              ``(bb) to comply with a
                                            Federal or State emergency pest
                                            treatment program; or
                                              ``(cc) to meet habitat needs
                                            of specific wildlife species;
                                      ``(III) any activities to be carried
                                    out on the owner's or successor's land
                                    that is immediately adjacent to, and
                                    functionally related to, the land that
                                    is subject to the easement if such
                                    activities will alter, degrade, or
                                    otherwise diminish the functional value
                                    of the eligible land; and
                                      ``(IV) the adoption of any other
                                    practice that would tend to defeat the
                                    purposes of the program, as determined
                                    by the Secretary;
                              ``(iii) provide for the efficient and
                            effective establishment of wildlife functions
                            and values; and
                              ``(iv) include such additional provisions as
                            the Secretary determines are desirable to carry
                            out the program or facilitate the practical
                            administration thereof.
                      ``(B) Violation.--On the violation of the terms or
                    conditions of a wetland easement, the wetland easement
                    shall remain in force and the Secretary may require the
                    owner to refund all or part of any payments received by
                    the owner under the program, together with interest
                    thereon as determined appropriate by the Secretary.
                      ``(C) Compatible uses.--Land subject to a wetland
                    easement may be used for compatible economic uses,
                    including such activities as hunting and fishing,
                    managed timber harvest, or periodic haying or grazing,
                    if such use is specifically permitted by the wetland
                    easement plan developed for the land under subsection
                    (f) and is consistent with the long-term protection and
                    enhancement of the wetland resources for which the
                    easement was established.
                      ``(D) Reservation of grazing rights.--The Secretary
                    may include in the terms and conditions of a wetland
                    easement a provision under which the owner reserves
                    grazing rights if--
                              ``(i) the Secretary determines that the
                            reservation and use of the grazing rights--
                                      ``(I) is compatible with the land
                                    subject to the easement;
                                      ``(II) is consistent with the
                                    historical natural uses of the land and
                                    the long-term protection and
                                    enhancement goals for which the
                                    easement was established; and
                                      ``(III) complies with the wetland
                                    easement plan developed for the land
                                    under subsection (f); and
                              ``(ii) the agreement provides for a
                            commensurate reduction in the easement payment
                            to account for the grazing value, as determined
                            by the Secretary.
              ``(6) Compensation.--
                      ``(A) Determination.--
                              ``(i) Permanent easements.--The Secretary
                            shall pay as compensation for a permanent
                            wetland easement acquired under the program an
                            amount necessary to encourage enrollment in the
                            program, based on the lowest of--
                                      ``(I) the fair market value of the
                                    land, as determined by the Secretary,
                                    using the Uniform Standards of
                                    Professional Appraisal Practice or an
                                    area-wide market analysis or survey;
                                      ``(II) the amount corresponding to a
                                    geographical cap, as determined by the
                                    Secretary in regulations; or
                                      ``(III) the offer made by the
                                    landowner.
                              ``(ii) 30-year easements.--Compensation for a
                            30-year wetland easement shall be not less than
                            50 percent, but not more than 75 percent, of
                            the compensation that would be paid for a
                            permanent wetland easement.
                      ``(B) Form of payment.--Compensation for a wetland
                    easement shall be provided by the Secretary in the form
                    of a cash payment, in an amount determined under
                    subparagraph (A).
                      ``(C) Payment schedule.--
                              ``(i) Easements valued at $500,000 or less.--
                            For wetland easements valued at $500,000 or
                            less, the Secretary may provide easement
                            payments in not more than 10 annual payments.
                              ``(ii) Easements valued at more than
                            $500,000.--For wetland easements valued at more
                            than $500,000, the Secretary may provide
                            easement payments in at least 5, but not more
                            than 10 annual payments, except that, if the
                            Secretary determines it would further the
                            purposes of the program, the Secretary may make
                            a lump sum payment for such an easement.
      ``(c) Easement Restoration.--
              ``(1) In general.--The Secretary shall provide financial
            assistance to owners of eligible land to carry out the
            establishment of conservation measures and practices and
            protect wetland functions and values, including necessary
            maintenance activities, as set forth in a wetland easement plan
            developed for the eligible land under subsection (f).
              ``(2) Payments.--The Secretary shall--
                      ``(A) in the case of a permanent wetland easement,
                    pay an amount that is not less than 75 percent, but not
                    more than 100 percent, of the eligible costs, as
                    determined by the Secretary; and
                      ``(B) in the case of a 30-year wetland easement, pay
                    an amount that is not less than 50 percent, but not
                    more than 75 percent, of the eligible costs, as
                    determined by the Secretary.
      ``(d) Technical Assistance.--
              ``(1) In general.--The Secretary shall assist owners in
            complying with the terms and conditions of wetland easements.
              ``(2) Contracts or agreements.--The Secretary may enter into
            1 or more contracts with private entities or agreements with a
            State, non-governmental organization, or Indian tribe to carry
            out necessary restoration, enhancement, or maintenance of a
            wetland easement if the Secretary determines that the contract
            or agreement will advance the purposes of the program.
      ``(e) Wetland Enhancement Option.--The Secretary may enter into 1 or
    more agreements with a State (including a political subdivision or
    agency of a State), nongovernmental organization, or Indian tribe to
    carry out a special wetland enhancement option that the Secretary
    determines would advance the purposes of program.
      ``(f) Administration.--
              ``(1) Wetland easement plan.--The Secretary shall develop a
            wetland easement plan for eligible lands subject to a wetland
            easement, which shall include practices and activities
            necessary to restore, protect, enhance, and maintain the
            enrolled lands.
              ``(2) Delegation of easement administration.--The Secretary
            may delegate--
                      ``(A) any of the easement management, monitoring, and
                    enforcement responsibilities of the Secretary to other
                    Federal or State agencies that have the appropriate
                    authority, expertise, and resources necessary to carry
                    out such delegated responsibilities; and
                      ``(B) any of the easement management responsibilities
                    of the Secretary to other conservation organizations if
                    the Secretary determines the organization has the
                    appropriate expertise and resources.
              ``(3) Payments.--
                      ``(A) Timing of payments.--The Secretary shall
                    provide payment for obligations incurred by the
                    Secretary under this section--
                              ``(i) with respect to any easement
                            restoration obligation under subsection (c), as
                            soon as possible after the obligation is
                            incurred; and
                              ``(ii) with respect to any annual easement
                            payment obligation incurred by the Secretary,
                            as soon as possible after October 1 of each
                            calendar year.
                      ``(B) Payments to others.--If an owner who is
                    entitled to a payment under this section dies, becomes
                    incompetent, is otherwise unable to receive such
                    payment, or is succeeded by another person or entity
                    who renders or completes the required performance, the
                    Secretary shall make such payment, in accordance with
                    regulations prescribed by the Secretary and without
                    regard to any other provision of law, in such manner as
                    the Secretary determines is fair and reasonable in
                    light of all of the circumstances.

    ``SEC. 1265D. ADMINISTRATION.

      ``(a) Ineligible Land.--The Secretary may not use program funds for
    the purposes of acquiring an easement on--
              ``(1) lands owned by an agency of the United States, other
            than land held in trust for Indian tribes;
              ``(2) lands owned in fee title by a State, including an
            agency or a subdivision of a State, or a unit of local
            government;
              ``(3) land subject to an easement or deed restriction which,
            as determined by the Secretary, provides similar protection as
            would be provided by enrollment in the program; or
              ``(4) lands where the purposes of the program would be
            undermined due to on-site or off-site conditions, such as risk
            of hazardous substances, proposed or existing rights of way,
            infrastructure development, or adjacent land uses.
      ``(b) Priority.--In evaluating applications under the program, the
    Secretary may give priority to land that is currently enrolled in the
    conservation reserve program in a contract that is set to expire within
    1 year and--
              ``(1) in the case of an agricultural land easement, is
            grassland that would benefit from protection under a long-term
            easement; and
              ``(2) in the case of a wetland easement, is a wetland or
            related area with the highest functions and value and is likely
            to return to production after the land leaves the conservation
            reserve program.
      ``(c) Subordination, Exchange, Modification, and Termination.--
              ``(1) In general.--The Secretary may subordinate, exchange,
            modify, or terminate any interest in land, or portion of such
            interest, administered by the Secretary, either directly or on
            behalf of the Commodity Credit Corporation under the program if
            the Secretary determines that--
                      ``(A) it is in the Federal Government's interest to
                    subordinate, exchange, modify, or terminate the
                    interest in land;
                      ``(B) the subordination, exchange, modification, or
                    termination action--
                              ``(i) will address a compelling public need
                            for which there is no practicable alternative;
                            or
                              ``(ii) such action will further the practical
                            administration of the program; and
                      ``(C) the subordination, exchange, modification, or
                    termination action will result in comparable
                    conservation value and equivalent or greater economic
                    value to the United States.
              ``(2) Consultation.--The Secretary shall work with the owner,
            and eligible entity if applicable, to address any
            subordination, exchange, modification, or termination of the
            interest, or portion of such interest, in land.
              ``(3) Notice.--At least 90 days before taking any termination
            action described in paragraph (1), the Secretary shall provide
            written notice of such action to the Committee on Agriculture
            of the House of Representatives and the Committee on
            Agriculture, Nutrition, and Forestry of the Senate.
      ``(d) Land Enrolled in Conservation Reserve Program.--The Secretary
    may terminate or modify a contract entered into under section 1231(a)
    if eligible land that is subject to such contract is transferred into
    the program.
      ``(e) Allocation of Funds for Agricultural Land Easements.--Of the
    funds made available under section 1241 to carry out the program for a
    fiscal year, the Secretary shall, to the extent practicable, use for
    agricultural land easements--
              ``(1) no less than 40 percent in each of fiscal years 2013
            through 2016; and
              ``(2) no less than 50 percent in fiscal year 2017.''.
      (b) Compliance With Certain Requirements.--Before an eligible entity
    or owner of eligible land may receive assistance under subtitle H of
    title XII of the Food Security Act of 1985, the eligible entity or
    person shall agree, during the crop year for which the assistance is
    provided and in exchange for the assistance--
              (1) to comply with applicable conservation requirements under
            subtitle B of title XII of that Act (16 U.S.C. 3811 et seq.);
            and
              (2) to comply with applicable wetland protection requirements
            under subtitle C of title XII of that Act (16 U.S.C. 3821 et
            seq.).
      (c) Cross Reference; Calculation.--Section 1244 of the Food Security
    Act of 1985 (16 U.S.C. 3844) is amended--
              (1) in subsection (c)--
                      (A) in paragraph (1)--
                              (i) by inserting ``and'' at the end of
                            subparagraph (A);
                              (ii) by striking ``and'' at the end of
                            subparagraph (B); and
                              (iii) by striking subparagraph (C);
                      (B) by redesignating paragraph (2) as paragraph (3);
                    and
                      (C) by inserting after paragraph (1) the following
                    new subparagraph:
              ``(2) the agricultural conservation easement program
            established under subtitle H; and''; and
              (2) in subsection (f)--
                      (A) in paragraph (1)--
                              (i) in subparagraph (A), by striking
                            ``programs administered under subchapters B and
                            C of chapter 1 of subtitle D'' and inserting
                            ``conservation reserve program established
                            under subchapter B of chapter 1 of subtitle D
                            and wetland easements under section 1265C'';
                            and
                              (ii) in subparagraph (B), by striking ``an
                            easement acquired under subchapter C of chapter
                            1 of subtitle D'' and inserting ``a wetland
                            easement under section 1265C''; and
                      (B) by adding at the end the following new paragraph:
              ``(5) Calculation.--In calculating the percentages described
            in paragraph (1), the Secretary shall include any acreage that
            was included in calculations of percentages made under such
            paragraph, as in effect on September 30, 2012, and that remains
            enrolled when the calculation is made after that date under
            paragraph (1).''.
      (d) Effective Date.--The amendments made by this section shall take
    effect on October 1, 2012.

             Subtitle E--Regional Conservation Partnership Program

    SEC. 2401. REGIONAL CONSERVATION PARTNERSHIP PROGRAM.

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

            ``Subtitle I--Regional Conservation Partnership Program

    ``SEC. 1271. ESTABLISHMENT AND PURPOSES.

      ``(a) Establishment.--The Secretary shall establish a regional
    conservation partnership program to implement eligible activities on
    eligible land through--
              ``(1) partnership agreements with eligible partners; and
              ``(2) contracts with producers.
      ``(b) Purposes.--The purposes of the program are as follows:
              ``(1) To use covered programs to accomplish purposes and
            functions similar to those of the following programs, as in
            effect on September 30, 2012:
                      ``(A) The agricultural water enhancement program
                    established under section 1240I.
                      ``(B) The Chesapeake Bay watershed program
                    established under section 1240Q.
                      ``(C) The cooperative conservation partnership
                    initiative established under section 1243.
                      ``(D) The Great Lakes basin program for soil erosion
                    and sediment control established under section 1240P.
              ``(2) To further the conservation, restoration, and
            sustainable use of soil, water, wildlife, and related natural
            resources on eligible land on a regional or watershed scale.
              ``(3) To encourage eligible partners to cooperate with
            producers in--
                      ``(A) meeting or avoiding the need for national,
                    State, and local natural resource regulatory
                    requirements related to production on eligible land;
                    and
                      ``(B) implementing projects that will result in the
                    carrying out of eligible activities that affect
                    multiple agricultural or nonindustrial private forest
                    operations on a local, regional, State, or multi-State
                    basis.

    ``SEC. 1271A. DEFINITIONS.

      ``In this subtitle:
              ``(1) Covered program.--The term `covered program' means the
            following:
                      ``(A) The agricultural conservation easement program.
                      ``(B) The environmental quality incentives program.
                      ``(C) The conservation stewardship program.
              ``(2) Eligible activity.--The term `eligible activity' means
            any of the following conservation activities:
                      ``(A) Water quality or quantity conservation,
                    restoration, or enhancement projects relating to
                    surface water and groundwater resources, including--
                              ``(i) the conversion of irrigated cropland to
                            the production of less water-intensive
                            agricultural commodities or dryland farming; or
                              ``(ii) irrigation system improvement and
                            irrigation efficiency enhancement.
                      ``(B) Drought mitigation.
                      ``(C) Flood prevention.
                      ``(D) Water retention.
                      ``(E) Air quality improvement.
                      ``(F) Habitat conservation, restoration, and
                    enhancement.
                      ``(G) Erosion control and sediment reduction.
                      ``(H) Other related activities that the Secretary
                    determines will help achieve conservation benefits.
              ``(3) Eligible land.--The term `eligible land' means land on
            which agricultural commodities, livestock, or forest-related
            products are produced, including--
                      ``(A) cropland;
                      ``(B) grassland;
                      ``(C) rangeland;
                      ``(D) pastureland;
                      ``(E) nonindustrial private forest land; and
                      ``(F) other land incidental to agricultural
                    production (including wetlands and riparian buffers) on
                    which significant natural resource issues could be
                    addressed under the program.
              ``(4) Eligible partner.--The term `eligible partner' means
            any of the following:
                      ``(A) An agricultural or silvicultural producer
                    association or other group of producers.
                      ``(B) A State or unit of local government.
                      ``(C) An Indian tribe.
                      ``(D) A farmer cooperative.
                      ``(E) A water district, irrigation district, rural
                    water district or association, or other organization
                    with specific water delivery authority to producers on
                    agricultural land.
                      ``(F) An institution of higher education.
                      ``(G) An organization with an established history of
                    working cooperatively with producers on agricultural
                    land, as determined by the Secretary, to address--
                              ``(i) local conservation priorities related
                            to agricultural production, wildlife habitat
                            development, or nonindustrial private forest
                            land management; or
                              ``(ii) critical watershed-scale soil erosion,
                            water quality, sediment reduction, or other
                            natural resource issues.
              ``(5) Partnership agreement.--The term `partnership
            agreement' means an agreement entered into under section 1271B
            between the Secretary and an eligible partner.
              ``(6) Program.--The term `program' means the regional
            conservation partnership program established by this subtitle.

    ``SEC. 1271B. REGIONAL CONSERVATION PARTNERSHIPS.

      ``(a) Partnership Agreements Authorized.--The Secretary may enter
    into a partnership agreement with an eligible partner to implement a
    project that will assist producers with installing and maintaining an
    eligible activity on eligible land.
      ``(b) Length.--A partnership agreement shall be for a period not to
    exceed 5 years, except that the Secretary may extend the agreement one
    time for up to 12 months when an extension is necessary to meet the
    objectives of the program.
      ``(c) Duties of Partners.--
              ``(1) In general.--Under a partnership agreement, the
            eligible partner shall--
                      ``(A) define the scope of a project, including--
                              ``(i) the eligible activities to be
                            implemented;
                              ``(ii) the potential agricultural or
                            nonindustrial private forest land operations
                            affected;
                              ``(iii) the local, State, multi-State, or
                            other geographic area covered; and
                              ``(iv) the planning, outreach,
                            implementation, and assessment to be conducted;
                      ``(B) conduct outreach to producers for potential
                    participation in the project;
                      ``(C) at the request of a producer, act on behalf of
                    a producer participating in the project in applying for
                    assistance under section 1271C;
                      ``(D) leverage financial or technical assistance
                    provided by the Secretary with additional funds to help
                    achieve the project objectives;
                      ``(E) conduct an assessment of the project's effects;
                    and
                      ``(F) at the conclusion of the project, report to the
                    Secretary on its results and funds leveraged.
              ``(2) Contribution.--An eligible partner shall provide a
            significant portion of the overall costs of the scope of the
            project that is the subject of the agreement entered into under
            subsection (a), as determined by the Secretary.
      ``(d) Applications.--
              ``(1) Competitive process.--The Secretary shall conduct a
            competitive process to select applications for partnership
            agreements and may assess and rank applications with similar
            conservation purposes as a group.
              ``(2) Criteria used.--In carrying out the process described
            in paragraph (1), the Secretary shall make public the criteria
            used in evaluating applications.
              ``(3) Content.--An application to the Secretary shall include
            a description of--
                      ``(A) the scope of the project, as described in
                    subsection (c)(1)(A);
                      ``(B) the plan for monitoring, evaluating, and
                    reporting on progress made towards achieving the
                    project's objectives;
                      ``(C) the program resources requested for the
                    project, including the covered programs to be used and
                    estimated funding needed from the Secretary;
                      ``(D) eligible partners collaborating to achieve
                    project objectives, including their roles,
                    responsibilities, capabilities, and financial
                    contribution; and
                      ``(E) any other elements the Secretary considers
                    necessary to adequately evaluate and competitively
                    select applications for funding under the program.
              ``(4) Priority to certain applications.--The Secretary may
            give a higher priority to applications that--
                      ``(A) assist producers in meeting or avoiding the
                    need for a natural resource regulatory requirement;
                      ``(B) have a high percentage of eligible producers in
                    the area to be covered by the agreement;
                      ``(C) significantly leverage non-Federal financial
                    and technical resources and coordinate with other
                    local, State, or national efforts;
                      ``(D) deliver high percentages of applied
                    conservation to address conservation priorities or
                    regional, State, or national conservation initiatives;
                      ``(E) provide innovation in conservation methods and
                    delivery, including outcome-based performance measures
                    and methods; or
                      ``(F) meet other factors that are important for
                    achieving the purposes of the program, as determined by
                    the Secretary.

    ``SEC. 1271C. ASSISTANCE TO PRODUCERS.

      ``(a) In General.--The Secretary shall enter into contracts with
    producers to provide financial and technical assistance to--
              ``(1) producers participating in a project with an eligible
            partner, as described in section 1271B; or
              ``(2) producers that fit within the scope of a project
            described in section 1271B or a critical conservation area
            designated under section 1271F, but who are seeking to
            implement an eligible activity on eligible land independent of
            a partner.
      ``(b) Terms and Conditions.--
              ``(1) Consistency with program rules.--Except as provided in
            paragraph (2), the Secretary shall ensure that the terms and
            conditions of a contract under this section are consistent with
            the applicable rules of the covered programs to be used as part
            of the project, as described in the application under section
            1271B(d)(3)(C).
              ``(2) Adjustments.--Except with respect to statutory program
            requirements governing appeals, payment limitations, and
            conservation compliance, the Secretary may adjust the
            discretionary program rules of a covered program--
                      ``(A)   to provide a simplified application and
                    evaluation process; and
                      ``(B) to better reflect unique local circumstances
                    and purposes if the Secretary determines such
                    adjustments are necessary to achieve the purposes of
                    the program.
      ``(c) Payments.--
              ``(1) In general.--In accordance with statutory requirements
            of the covered programs involved, the Secretary may make
            payments to a producer in an amount determined by the Secretary
            to be necessary to achieve the purposes of the program.
              ``(2) Payments to producers in states with water quantity
            concerns.--The Secretary may provide payments to producers
            participating in a project that addresses water quantity
            concerns for a period of five years in an amount sufficient to
            encourage conversion from irrigated farming to dryland farming.
              ``(3) Waiver authority.--To assist in the implementation of
            the program, the Secretary may waive the applicability of the
            limitation in section 1001D(b)(2) of this Act for participating
            producers if the Secretary determines that the waiver is
            necessary to fulfill the objectives of the program.

    ``SEC. 1271D. FUNDING.

      ``(a) Availability of Funds.--The Secretary shall use $100,000,000 of
    the funds of the Commodity Credit Corporation for each of fiscal years
    2013 through 2017 to carry out the program.
      ``(b) Duration of Availability.--Funds made available under
    subsection (a) shall remain available until expended.
      ``(c) Additional Funding and Acres.--
              ``(1) In general.--In addition to the funds made available
            under subsection (a), the Secretary shall reserve 6 percent of
            the funds and acres made available for a covered program for
            each of fiscal years 2013 through 2017 in order to ensure
            additional resources are available to carry out this program.
              ``(2) Unused funds and acres.--Any funds or acres reserved
            under paragraph (1) for a fiscal year from a covered program
            that are not obligated under this program by April 1 of that
            fiscal year shall be returned for use under the covered
            program.
      ``(d) Allocation of Funding.--Of the funds and acres made available
    for the program under subsections (a) and (c), the Secretary shall
    allocate--
              ``(1) 25 percent of the funds and acres to projects based on
            a State competitive process administered by the State
            Conservationist, with the advice of the State technical
            committee established under subtitle G;
              ``(2) 50 percent of the funds and acres to projects based on
            a national competitive process to be established by the
            Secretary; and
              ``(3) 25 percent of the funds and acres to projects for the
            critical conservation areas designated under section 1271F.
      ``(e) Limitation on Administrative Expenses.--None of the funds made
    available under the program may be used to pay for the administrative
    expenses of eligible partners.

    ``SEC. 1271E. ADMINISTRATION.

      ``(a) Disclosure.--In addition to the criteria used in evaluating
    applications as described in section 1271B(d)(2), the Secretary shall
    make publicly available information on projects selected through the
    competitive process described in section 1271B(d)(1).
      ``(b) Reporting.--Not later than December 31, 2013, and every two
    years thereafter, the Secretary shall submit to the Committee on
    Agriculture of the House of Representatives and the Committee on
    Agriculture, Nutrition, and Forestry of the Senate a report on the
    status of projects funded under the program, including--
              ``(1) the number and types of eligible partners and producers
            participating in the partnership agreements selected;
              ``(2) the number of producers receiving assistance; and
              ``(3) total funding committed to projects, including from
            Federal and non-Federal resources.

    ``SEC. 1271F. CRITICAL CONSERVATION AREAS.

      ``(a) In General.--In administering funds under section 1271D(d)(3),
    the Secretary shall select applications for partnership agreements and
    producer contracts within critical conservation areas designated under
    this section.
      ``(b) Critical Conservation Area Designations.--
              ``(1) Priority.--In designating critical conservation areas
            under this section, the Secretary shall give priority to
            geographical areas based on the degree to which the
            geographical area--
                      ``(A) includes multiple States with significant
                    agricultural production;
                      ``(B) is covered by an existing regional, State,
                    binational, or multistate agreement or plan that has
                    established objectives, goals, and work plans and is
                    adopted by a Federal, State, or regional authority;
                      ``(C) would benefit from water quality improvement,
                    including through reducing erosion, promoting sediment
                    control, and addressing nutrient management activities
                    affecting large bodies of water of regional, national,
                    or international significance;
                      ``(D) would benefit from water quantity improvement,
                    including improvement relating to--
                              ``(i) groundwater, surface water, aquifer, or
                            other water sources; or
                              ``(ii) a need to promote water retention and
                            flood prevention; or
                      ``(E) contains producers that need assistance in
                    meeting or avoiding the need for a natural resource
                    regulatory requirement that could have a negative
                    economic impact on agricultural operations within the
                    area.
              ``(2) Limitation.--The Secretary may not designate more than
            8 geographical areas as critical conservation areas under this
            section.
      ``(c) Administration.--
              ``(1) In general.--Except as provided in paragraph (2), the
            Secretary shall administer any partnership agreement or
            producer contract under this section in a manner that is
            consistent with the terms of the program.
              ``(2) Relationship to existing activity.--The Secretary
            shall, to the maximum extent practicable, ensure that eligible
            activities carried out in critical conservation areas
            designated under this section complement and are consistent
            with other Federal and State programs and water quality and
            quantity strategies.
              ``(3) Additional authority.--For a critical conservation area
            described in subsection (b)(1)(D), the Secretary may use
            authorities under the Watershed Protection and Flood Prevention
            Act (16 U.S.C. 1001 et seq.), other than section 14 of such Act
            (16 U.S.C. 1012), to carry out projects for the purposes of
            this section.''.
      (b) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.

                    Subtitle F--Other Conservation Programs

    SEC. 2501. CONSERVATION OF PRIVATE GRAZING LAND.

      Section 1240M(e) of the Food Security Act of 1985 (16 U.S.C.
    3839bb(e)) is amended by striking ``2012'' and inserting ``2017''.

    SEC. 2502. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

      Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 3839bb-
    2) is amended to read as follows:
      ``(b) Funding.--
              ``(1) Authorization of appropriations.--There is authorized
            to be appropriated to carry out this section $20,000,000 for
            each of fiscal years 2008 through 2017.
              ``(2) Availability of funds.--In addition to funds made
            available under paragraph (1), of the funds of the Commodity
            Credit Corporation, the Secretary shall use $5,000,000, to
            remain available until expended.''.

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

      (a) Funding.--Section 1240R(f) of the Food Security Act of 1985 (16
    U.S.C. 3839bb-5(f)) is amended by inserting before the period at the
    end the following: ``and $30,000,000 for the period of fiscal years
    2013 through 2017''.
      (b) Report on Program Effectiveness.--Not later than two years after
    the date of the enactment of this Act, the Secretary of Agriculture
    shall submit to the Committee on Agriculture of the House of
    Representatives and the Committee on Agriculture, Nutrition, and
    Forestry of the Senate a report evaluating the effectiveness of the
    voluntary public access program established by section 1240R of the
    Food Security Act of 1985 (16 U.S.C. 3839bb-5), including--
              (1) identifying cooperating agencies;
              (2) identifying the number of land holdings and total acres
            enrolled by each State and tribal government;
              (3) evaluating the extent of improved access on eligible
            lands, improved wildlife habitat, and related economic
            benefits; and
              (4) any other relevant information and data relating to the
            program that would be helpful to such Committees.

    SEC. 2504. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.

      (a) Funding.--Subsection (c) of section 1252 of the Food Security Act
    of 1985 (16 U.S.C. 3851) is amended to read as follows:
      ``(c) Funding.--
              ``(1) In general.--The Secretary may carry out the ACES
            program using funds made available to carry out each program
            under this title.
              ``(2) Exclusion.--Funds made available to carry out the
            conservation reserve program may not be used to carry out the
            ACES program.''.
      (b) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.

    SEC. 2505. SMALL WATERSHED REHABILITATION PROGRAM.

      (a) Availability of Funds.--Section 14(h)(1) of the Watershed
    Protection and Flood Prevention Act (16 U.S.C. 1012(h)(1)) is amended--
              (1) in subparagraph (E), by striking ``; and'' and inserting
            a semicolon;
              (2) in subparagraph (F), by striking the period and inserting
            a semicolon;
              (3) in subparagraph (G), by striking the period and inserting
            ``; and''; and
              (4) by adding at the end the following new subparagraph:
                      ``(H) $250,000,000 for fiscal year 2013, to remain
                    available until expended.''.
      (b) Authorization of Appropriations.--Section 14(h)(2)(E) of the
    Watershed Protection and Flood Prevention Act (16 U.S.C. 1012(h)(2)(E))
    is amended by striking ``2012'' and inserting ``2017''.

    SEC. 2506. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM.

      (a) Uses.--Section 524(b)(2) of the Federal Crop Insurance Act (7
    U.S.C. 1524(b)(2)) is amended--
              (1) by striking subparagraph (B) and redesignating
            subparagraphs (C) through (F) as subparagraphs (B) through (E),
            respectively; and
              (2) in subparagraph (B) (as so redesignated)--
                      (A) in the matter preceding clause (i), by striking
                    ``or resource conservation practices''; and
                      (B) by striking clause (i) and redesignating clauses
                    (ii) through (iv) as clauses (i) through (iii),
                    respectively.
      (b) Commodity Credit Corporation.--
              (1) Funding.--Section 524(b)(4)(B) of the Federal Crop
            Insurance Act (7 U.S.C. 1524(b)(4)(B)) is amended to read as
            follows:
                      ``(B) Funding.--The Commodity Credit Corporation
                    shall make available to carry out this subsection not
                    less than $10,000,000 for each fiscal year.''.
              (2) Certain uses.--Section 524(b)(4)(C) of the Federal Crop
            Insurance Act (7 U.S.C. 1524(b)(4)(C)) is amended--
                      (A) in clause (i)--
                              (i) by striking ``50'' and inserting ``30'';
                            and
                              (ii) by striking ``(A), (B), and (C)'' and
                            inserting ``(A) and (B)''; and
                      (B) in clause (iii), by striking ``40'' and inserting
                    ``60''.

                     Subtitle G--Funding and Administration

    SEC. 2601. FUNDING.

      (a) In General.--Subsection (a) of section 1241 of the Food Security
    Act of 1985 (16 U.S.C. 3841) is amended to read as follows:
      ``(a) Annual Funding.--For each of fiscal years 2013 through 2017,
    the Secretary shall use the funds, facilities, and authorities of the
    Commodity Credit Corporation to carry out the following programs under
    this title (including the provision of technical assistance):
              ``(1) The conservation reserve program under subchapter B of
            chapter 1 of subtitle D, including, to the maximum extent
            practicable, $25,000,000 for the period of fiscal years 2013
            through 2017 to carry out section 1235(f) to facilitate the
            transfer of land subject to contracts from retired or retiring
            owners and operators to beginning farmers or ranchers and
            socially disadvantaged farmers or ranchers.
              ``(2) The agriculture conservation easement program under
            subtitle H, using, to the maximum extent practicable--
                      ``(A) $450,000,000 in fiscal year 2013;
                      ``(B) $475,000,000 in fiscal year 2014;
                      ``(C) $500,000,000 in fiscal year 2015;
                      ``(D) $525,000,000 in fiscal year 2016; and
                      ``(E) $266,000,000 in fiscal year 2017.
              ``(3) The conservation security program under subchapter A of
            chapter 2 of subtitle D, using such sums as are necessary to
            administer contracts entered into before September 30, 2008.
              ``(4) The conservation stewardship program under subchapter B
            of chapter 2 of subtitle D.
              ``(5) The environmental quality incentives program under
            chapter 4 of subtitle D, using, to the maximum extent
            practicable, $1,750,000,000 for each of fiscal years 2013
            through 2017.''.
      (b) Guaranteed Availability of Funds.--Section 1241 of the Food
    Security Act of 1985 (16 U.S.C. 3841) is amended--
              (1) by redesignating subsections (b) through (h) as
            subsections (c) through (i); respectively; and
              (2) by inserting after subsection (a) the following new
            subsection:
      ``(b) Availability of Funds.--Amounts made available by subsection
    (a) shall be used by the Secretary to carry out the programs specified
    in such subsection for fiscal years 2013 through 2017 and shall remain
    available until expended. Amounts made available for the programs
    specified in such subsection during a fiscal year through
    modifications, cancellations, terminations, and other related
    administrative actions and not obligated in that fiscal year shall
    remain available for obligation during subsequent fiscal years, but
    shall reduce the amount of additional funds made available in the
    subsequent fiscal year by an amount equal to the amount remaining
    unobligated.''.
      (c) Effective Date.--The amendments made by this section shall take
    effect on October 1, 2012.

    SEC. 2602. TECHNICAL ASSISTANCE.

      (a) In General.--Subsection (c) of section 1241 of the Food Security
    Act of 1985 (16 U.S.C. 3841), as redesignated by section 2601(b)(1) of
    this Act, is amended to read as follows:
      ``(c) Technical Assistance.--
              ``(1) Availability of funds.--Commodity Credit Corporation
            funds made available for a fiscal year for each of the programs
            specified in subsection (a)--
                      ``(A) shall be available for the provision of
                    technical assistance for the programs for which funds
                    are made available as necessary to implement the
                    programs effectively; and
                      ``(B) shall not be available for the provision of
                    technical assistance for conservation programs
                    specified in subsection (a) other than the program for
                    which the funds were made available.
              ``(2) Report.--Not later than December 31, 2012, the
            Secretary shall submit (and update as necessary in subsequent
            years) to the Committee on Agriculture of the House of
            Representatives and the Committee on Agriculture, Nutrition,
            and Forestry of the Senate a report--
                      ``(A) detailing the amount of technical assistance
                    funds requested and apportioned in each program
                    specified in subsection (a) during the preceding fiscal
                    year; and
                      ``(B) any other data relating to this subsection that
                    would be helpful to such Committees.''.
      (b) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.

    SEC. 2603. REGIONAL EQUITY.

      (a) In General.--Section 1241 of the Food Security Act of 1985 (16
    U.S.C. 3841) is amended by striking subsection (e) (as redesignated by
    section 2601(b)(1) of this Act) and inserting the following:
      ``(e) Regional Equity.--
              ``(1) Equitable distribution.--In determining funding
            allocations each fiscal year, the Secretary shall, after
            considering available funding and program demand in each State,
            provide a distribution of funds for conservation programs under
            subtitle D (excluding the conservation reserve program under
            subchapter B of chapter 1), subtitle H (excluding wetland
            easements under section 1265C), and subtitle I to ensure
            equitable program participation proportional to historical
            funding allocations and usage by all States.
              ``(2) Minimum percentage.--In determining the specific
            funding allocations under paragraph (1), the Secretary shall--
                      ``(A) ensure that during the first quarter of each
                    fiscal year each State has the opportunity to establish
                    that the State can use an aggregate allocation amount
                    of at least 0.6 percent of the funds made available for
                    those conservation programs; and
                      ``(B) for each State that can so establish, provide
                    an aggregate amount of at least 0.6 percent of the
                    funds made available for those conservation
                    programs.''.
      (b) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.

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

      (a) In General.--Subsection (h) of section 1241 of the Food Security
    Act of 1985 (16 U.S.C. 3841) (as redesignated by section 2601(b)(1)) is
    amended--
              (1) in paragraph (1) by striking ``2012'' and inserting
            ``2017''; and
              (2) by adding at the end the following new paragraph:
              ``(4) Preference.--In providing assistance under paragraph
            (1), the Secretary shall give preference to a veteran farmer or
            rancher (as defined in section 2501(e) of the Food,
            Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
            2279(e))) that qualifies under subparagraph (A) or (B) of
            paragraph (1).''.
      (b) Effective Date.--The amendments made by this section shall take
    effect on October 1, 2012.

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

      (a) In General.--Subsection (i) (as redesignated by section
    2601(b)(1)) of section 1241 of the Food Security Act of 1985 (16 U.S.C.
    3841) is amended--
              (1) in paragraph (1), by striking ``wetlands reserve
            program'' and inserting ``agricultural conservation easement
            program'';
              (2) by striking paragraphs (2) and (3) and redesignating
            paragraphs (4), (5), and (6) as paragraphs (2), (3), and (4),
            respectively; and
              (3) in paragraph (3) (as so redesignated)--
                      (A) by striking ``agricultural water enhancement
                    program'' and inserting ``regional conservation
                    partnership program''; and
                      (B) by striking ``1240I(g)'' and inserting
                    ``1271C(c)(3)''.
      (b) Effective Date.--The amendments made by this section shall take
    effect on October 1, 2012.

    SEC. 2606. REVIEW OF CONSERVATION PRACTICE STANDARDS.

      Section 1242(h)(1)(A) of the Food Security Act of 1985 (16 U.S.C.
    3842(h)(1)(A)) is amended by striking ``the Food, Conservation, and
    Energy Act of 2008'' and inserting ``the Federal Agriculture Reform and
    Risk Management Act of 2012''.

    SEC. 2607. ADMINISTRATIVE REQUIREMENTS APPLICABLE TO ALL CONSERVATION
                        PROGRAMS.

      (a) In General.--Section 1244 of the Food Security Act of 1985 (16
    U.S.C. 3844) is amended--
              (1) in subsection (a)(2), by adding at the end the following
            new subparagraph:
                      ``(E) Veteran farmers or ranchers (as defined in
                    section 2501(e) of the Food, Agriculture, Conservation,
                    and Trade Act of 1990 (7 U.S.C. 2279(e))).'';
              (2) in subsection (d), by inserting ``, H, and I'' before the
            period at the end;
              (3) in subsection (f)--
                      (A) in paragraph (1)(B), by striking ``country'' and
                    inserting ``county''; and
                      (B) in paragraph (3), by striking ``subsection
                    (c)(2)(B) or (f)(4)'' and inserting ``subsection
                    (c)(2)(A)(ii) or (f)(2)''; and
              (4) by adding at the end the following new subsections:
      ``(j) Improved Administrative Efficiency and Effectiveness.--In
    administrating a conservation program under this title, the Secretary
    shall, to the maximum extent practicable--
              ``(1) seek to reduce administrative burdens and costs to
            producers by streamlining conservation planning and program
            resources; and
              ``(2) take advantage of new technologies to enhance
            efficiency and effectiveness.
      ``(k) Relation to Other Payments.--Any payment received by an owner
    or operator under this title, including an easement payment or rental
    payment, shall be in addition to, and not affect, the total amount of
    payments that the owner or operator is otherwise eligible to receive
    under any of the following:
              ``(1) This Act.
              ``(2) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).
              ``(3) The Federal Agriculture Reform and Risk Management Act
            of 2012.
              ``(4) Any law that succeeds a law specified in paragraph (1),
            (2), or (3).''.
      (b) Effective Date.--The amendments made by this section shall take
    effect on October 1, 2012.

    SEC. 2608. STANDARDS FOR STATE TECHNICAL COMMITTEES.

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

    SEC. 2609. RULEMAKING AUTHORITY.

      Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C.
    3841 et seq.) is amended by adding at the end the following new
    section:

    ``SEC. 1246. REGULATIONS.

      ``(a) In General.--The Secretary shall promulgate such regulations as
    are necessary to implement programs under this title, including such
    regulations as the Secretary determines to be necessary to ensure a
    fair and reasonable application of the limitations established under
    section 1244(f).
      ``(b) Rulemaking Procedure.--The promulgation of regulations and
    administration of programs under this title--
              ``(1) shall be carried out without regard to--
                      ``(A) the Statement of Policy of the Secretary
                    effective July 24, 1971 (36 Fed. Reg. 13804), relating
                    to notices of proposed rulemaking and public
                    participation in rulemaking; and
                      ``(B) chapter 35 of title 44, United States Code
                    (commonly known as the Paperwork Reduction Act); and
              ``(2) shall be made as an interim rule effective on
            publication with an opportunity for notice and comment.
      ``(c) Congressional Review of Agency Rulemaking.--In promulgating
    regulations under this section, the Secretary shall use the authority
    provided under section 808 of title 5, United States Code.''.

     Subtitle H--Repeal of Superseded Program Authorities and Transitional
                        Provisions; Technical Amendments

    SEC. 2701. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.

      (a) Repeal.--Section 1230 of the Food Security Act of 1985 (16 U.S.C.
    3830) is repealed.
      (b) Conforming Amendment.--The heading of chapter 1 of subtitle D of
    title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) is
    amended to read as follows: ``CONSERVATION RESERVE''.

    SEC. 2702. EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.

      (a) Repeal.--Section 1231A of the Food Security Act of 1985 (16
    U.S.C. 3831a) is repealed.
      (b) Transitional Provisions.--
              (1) Effect on existing contracts.--The amendment made by this
            section shall not affect the validity or terms of any contract
            entered into by the Secretary of Agriculture under section
            1231A of the Food Security Act of 1985 (16 U.S.C. 3831a) before
            October 1, 2012, or any payments required to be made in
            connection with the contract.
              (2) Funding.--The Secretary may use funds made available to
            carry out the conservation reserve program under subchapter B
            of chapter 1 of subtitle D of title XII of the Food Security
            Act of 1985 (16 U.S.C. 3831 et seq.) to continue to carry out
            contracts referred to in paragraph (1) using the provisions of
            law and regulation applicable to such contracts as they existed
            on September 30, 2012.
      (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.

    SEC. 2703. WETLANDS RESERVE PROGRAM.

      (a) Repeal.--Subchapter C of chapter 1 of subtitle D of title XII of
    the Food Security Act of 1985 (16 U.S.C. 3837 et seq.) is repealed.
      (b) Transitional Provisions.--
              (1) Effect on existing contracts.--The amendment made by this
            section shall not affect the validity or terms of any contract
            entered into by the Secretary of Agriculture under subchapter C
            of chapter 1 of subtitle D of title XII of the Food Security
            Act of 1985 (16 U.S.C. 3837 et seq.) before October 1, 2012, or
            any payments required to be made in connection with the
            contract.
              (2) Funding.--The Secretary may use funds made available to
            carry out the agricultural conservation easement program under
            subtitle H of title XII of the Food Security Act of 1985, as
            added by section 2301 of this Act, to continue to carry out
            contracts referred to in paragraph (1) using the provisions of
            law and regulation applicable to such contracts as they existed
            on September 30, 2012.
      (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.

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

      (a) Repeal.--Subchapter C of chapter 2 of subtitle D of title XII of
    the Food Security Act of 1985 (16 U.S.C. 3838h et seq.) is repealed.
      (b) Conforming Amendment.--The heading of chapter 2 of subtitle D of
    title XII of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.) is
    amended by striking ``AND FARMLAND PROTECTION''.
      (c) Transitional Provisions.--
              (1) Effect on existing contracts.--The amendments made by
            this section shall not affect the validity or terms of any
            contract entered into by the Secretary of Agriculture under
            subchapter C of chapter 2 of subtitle D of title XII of the
            Food Security Act of 1985 (16 U.S.C. 3838h et seq.) before
            October 1, 2012, or any payments required to be made in
            connection with the contract.
              (2) Funding.--The Secretary may use funds made available to
            carry out the agricultural conservation easement program under
            subtitle H of title XII of the Food Security Act of 1985, as
            added by section 2301 of this Act, to continue to carry out
            contracts referred to in paragraph (1) using the provisions of
            law and regulation applicable to such contracts as they existed
            on September 30, 2012.
      (d) Effective Date.--The amendments made by this section shall take
    effect on October 1, 2012.

    SEC. 2705. GRASSLAND RESERVE PROGRAM.

      (a) Repeal.--Subchapter D of chapter 2 of subtitle D of title XII of
    the Food Security Act of 1985 (16 U.S.C. 3838n et seq.) is repealed.
      (b) Transitional Provisions.--
              (1) Effect on existing contracts.--The amendment made by this
            section shall not affect the validity or terms of any contract
            entered into by the Secretary of Agriculture under subchapter D
            of chapter 2 of subtitle D of title XII of the Food Security
            Act of 1985 (16 U.S.C. 3838n et seq.) before October 1, 2012,
            or any payments required to be made in connection with the
            contract.
              (2) Funding.--The Secretary may use funds made available to
            carry out the agricultural conservation easement program under
            subtitle H of title XII of the Food Security Act of 1985, as
            added by section 2301 of this Act, to continue to carry out
            contracts referred to in paragraph (1) using the provisions of
            law and regulation applicable to such contracts as they existed
            on September 30, 2012.
      (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.

    SEC. 2706. AGRICULTURAL WATER ENHANCEMENT PROGRAM.

      (a) Repeal.--Section 1240I of the Food Security Act of 1985 (16
    U.S.C. 3839aa-9) is repealed.
      (b) Transitional Provisions.--
              (1) Effect on existing contracts.--The amendment made by this
            section shall not affect the validity or terms of any contract
            entered into by the Secretary of Agriculture under section
            1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa-9)
            before October 1, 2012, or any payments required to be made in
            connection with the contract.
              (2) Funding.--The Secretary may use funds made available to
            carry out the regional conservation partnership program under
            subtitle I of title XII of the Food Security Act of 1985, as
            added by section 2401 of this Act, to continue to carry out
            contracts referred to in paragraph (1) using the provisions of
            law and regulation applicable to such contracts as they existed
            on September 30, 2012.
      (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.

    SEC. 2707. WILDLIFE HABITAT INCENTIVE PROGRAM.

      (a) Repeal.--Section 1240N of the Food Security Act of 1985 (16
    U.S.C. 3839bb-1) is repealed.
      (b) Transitional Provisions.--
              (1) Effect on existing contracts.--The amendment made by this
            section shall not affect the validity or terms of any contract
            entered into by the Secretary of Agriculture under section
            1240N of the Food Security Act of 1985 (16 U.S.C. 3839bb-1)
            before October 1, 2012, or any payments required to be made in
            connection with the contract.
              (2) Funding.--The Secretary may use funds made available to
            carry out the environmental quality incentives program under
            chapter 4 of subtitle D of title XII of the Food Security Act
            of 1985 (16 U.S.C. 3839aa et seq.) to continue to carry out
            contracts referred to in paragraph (1) using the provisions of
            law and regulation applicable to such contracts as they existed
            on September 30, 2012.
      (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.

    SEC. 2708. GREAT LAKES BASIN PROGRAM.

      (a) Repeal.--Section 1240P of the Food Security Act of 1985 (16
    U.S.C. 3839bb-3) is repealed.
      (b) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.

    SEC. 2709. CHESAPEAKE BAY WATERSHED PROGRAM.

      (a) Repeal.--Section 1240Q of the Food Security Act of 1985 (16
    U.S.C. 3839bb-4) is repealed.
      (b) Transitional Provisions.--
              (1) Effect on existing contracts.--The amendment made by this
            section shall not affect the validity or terms of any contract
            entered into by the Secretary of Agriculture under section
            1240Q of the Food Security Act of 1985 (16 U.S.C. 3839bb-4)
            before October 1, 2012, or any payments required to be made in
            connection with the contract.
              (2) Funding.--The Secretary may use funds made available to
            carry out the regional conservation partnership program under
            subtitle I of title XII of the Food Security Act of 1985, as
            added by section 2401 of this Act, to continue to carry out
            contracts referred to in paragraph (1) using the provisions of
            law and regulation applicable to such contracts as they existed
            on September 30, 2012.
      (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.

    SEC. 2710. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

      (a) Repeal.--Section 1243 of the Food Security Act of 1985 (16 U.S.C.
    3843) is repealed.
      (b) Transitional Provisions.--
              (1) Effect on existing contracts.--The amendment made by this
            section shall not affect the validity or terms of any contract
            entered into by the Secretary of Agriculture under section 1243
            of the Food Security Act of 1985 (16 U.S.C. 3843) before
            October 1, 2012, or any payments required to be made in
            connection with the contract.
              (2) Funding.--The Secretary may use funds made available to
            carry out the regional conservation partnership program under
            subtitle I of title XII of the Food Security Act of 1985, as
            added by section 2401 of this Act, to continue to carry out
            contracts referred to in paragraph (1) using the provisions of
            law and regulation applicable to such contracts as they existed
            on September 30, 2012.
      (c) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.

    SEC. 2711. ENVIRONMENTAL EASEMENT PROGRAM.

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

    SEC. 2712. TECHNICAL AMENDMENTS.

      (a) Definitions.--Section 1201(a) of the Food Security Act of 1985
    (16 U.S.C. 3801(a)) is amended in the matter preceding paragraph (1) by
    striking ``E'' and inserting ``I''.
      (b) Program Ineligibility.--Section 1211(a) of the Food Security Act
    of 1985 (16 U.S.C. 3811(a)) is amended by striking ``predominate'' each
    place it appears and inserting ``predominant''.
      (c) Specialty Crop Producers.--Section 1242(i) of the Food Security
    Act of 1985 (16 U.S.C. 3842(i)) is amended in the header by striking
    ``Speciality'' and inserting ``Specialty''.

                                TITLE III--TRADE

                         Subtitle A--Food for Peace Act

    SEC. 3001. GENERAL AUTHORITY.

      Section 201 of the Food for Peace Act (7 U.S.C. 1721) is amended--
              (1) in the matter preceding paragraph (1), by inserting ``(to
            be implemented by the Administrator)'' after ``under this
            title''; and
              (2) by striking paragraph (7) and the second sentence and
            inserting the following new paragraph:
              ``(7) build resilience to mitigate and prevent food crises
            and reduce the future need for emergency aid.''.

    SEC. 3002. SUPPORT FOR ORGANIZATIONS THROUGH WHICH ASSISTANCE IS
                        PROVIDED.

      Section 202(e)(1) of the Food for Peace Act (7 U.S.C. 1722(e)(1)) is
    amended by striking ``13 percent'' and inserting ``11 percent''.

    SEC. 3003. FOOD AID QUALITY.

      Section 202(h) of the Food for Peace Act (7 U.S.C. 1722(h)) is
    amended--
              (1) in paragraph (1)--
                      (A) in the matter preceding subparagraph (A)--
                              (i) by striking ``The Administrator'' and
                            inserting ``In consultation with the Secretary,
                            the Administrator''; and
                              (ii) by inserting ``to establish a
                            mechanism'' after ``this title'';
                      (B) by striking ``and'' at the end of subparagraph
                    (B); and
                      (C) by striking subparagraph (C) and inserting the
                    following new paragraphs:
                      ``(C) to evaluate, as necessary, the use of current
                    and new agricultural commodities and products thereof
                    in different program settings and for particular
                    recipient groups, including the testing of prototypes;
                      ``(D) to establish and implement appropriate
                    protocols for quality assurance of food products
                    procured by the Secretary for food aid programs; and
                      ``(E) to periodically update program guidelines on
                    the recommended use of agricultural commodities and
                    food products in food aid programs to reflect findings
                    from the implementation of this subsection and other
                    relevant information.'';
              (2) in paragraph (2), by striking ``The Administrator'' and
            inserting ``In consultation with the Secretary, the
            Administrator''; and
              (3) in paragraph (3), by striking ``fiscal years 2009 through
            2011, not more than $4,500,000'' and inserting ``fiscal years
            2013 through 2017, not more than $1,000,000''.

    SEC. 3004. MINIMUM LEVELS OF ASSISTANCE.

      Section 204(a) of the Food for Peace Act (7 U.S.C. 1724(a)) is
    amended--
              (1) in paragraph (1), by striking ``2012'' and inserting
            ``2017''; and
              (2) in paragraph (2), by striking ``2012'' and inserting
            ``2017''.

    SEC. 3005. FOOD AID CONSULTATIVE GROUP.

      (a) Membership.--Section 205(b) of the Food for Peace Act (7 U.S.C.
    1725(b)) is amended--
              (1) by striking ``and'' at the end of paragraph (6);
              (2) by redesignating paragraph (7) as paragraph (8); and
              (3) by inserting after paragraph (6) the following new
            paragraph:
              ``(7) representatives from the United States agricultural
            processing sector involved in providing agricultural
            commodities for programs under this Act; and''.
      (b) Consultation.--Section 205(d) of the Food for Peace Act (7 U.S.C.
    1725(d)) is amended--
              (1) by striking the first sentence and inserting the
            following:
              ``(1) Consultation in advance of issuance of implementation
            regulations, handbooks, and guidelines.--Not later than 45 days
            before a proposed regulation, handbook, or guideline
            implementing this title, or a proposed significant revision to
            a regulation, handbook, or guideline implementing this title,
            becomes final, the Administrator shall provide the proposal to
            the Group for review and comment.''; and
              (2) by adding at the end the following new paragraph:
              ``(2) Consultation regarding food aid quality efforts.--The
            Administrator shall seek input from and consult with the Group
            on the implementation of section 202(h).''.
      (c) Reauthorization.--Section 205(f) of the Food for Peace Act (7
    U.S.C. 1725(f)) is amended by striking ``2012'' and inserting ``2017''.

    SEC. 3006. OVERSIGHT, MONITORING, AND EVALUATION.

      (a) Regulations and Guidance.--Section 207(c) of the Food for Peace
    Act (7 U.S.C. 1726a(c)) is amended--
              (1) in the subsection heading, by inserting ``and Guidance''
            after ``Regulations'';
              (2) in paragraph (1), by adding at the end the following new
            sentence: ``Not later than 270 days after the date of the
            enactment of the Federal Agriculture Reform and Risk Management
            Act of 2012, the Administrator shall issue all regulations and
            revisions to agency guidance necessary to implement the
            amendments made to this title by such Act.''; and
              (3) in paragraph (2), by inserting ``and guidance'' after
            ``develop regulations''.
      (b) Funding.--Section 207(f) of the Food for Peace Act (7 U.S.C.
    1726a(f)) is amended--
              (1) in paragraph (2)--
                      (A) by inserting ``and'' at the end of subparagraph
                    (D);
                      (B) by striking ``; and'' at the end of subparagraph
                    (E) and inserting the period; and
                      (C) by striking subparagraph (F);
              (2) by striking paragraphs (3) and (4); and
              (3) by redesignating paragraphs (5) and (6) as paragraphs (3)
            and (4), respectively; and
              (4) in paragraph (4) (as so redesignated)--
                      (A) in subparagraph (A), by striking ``, except for
                    paragraph (2)(F), for which only $2,500,000 shall be
                    made available during fiscal year 2009'' and inserting
                    ``and up to $10,000,000 of such funds for each of
                    fiscal years 2013 through 2017''; and
                      (B) in subparagraph (B)(i), by striking ``2012'' and
                    inserting ``2017''.
      (c) Implementation Reports.--Not later than 270 days after the date
    of the enactment of this Act, the Administrator of the Agency for
    International Development shall submit to the Committee on Agriculture,
    Nutrition, and Forestry of the Senate and the Committees on Agriculture
    and Foreign Affairs of the House of Representatives a report
    describing--
              (1) the implementation of section 207(c) of the Food for
            Peace Act (7 U.S.C. 1726a(c));
              (2) the surveys, studies, monitoring, reporting, and audit
            requirements for programs conducted under title II of such Act
            (7 U.S.C. 1721 et seq.) by an eligible organization that is a
            nongovernmental organization (as such term is defined in
            section 402 of such Act (7 U.S.C. 1732)); and
              (3) the surveys, studies, monitoring, reporting, and audit
            requirements for such programs by an eligible organization that
            is an intergovernmental organization, such as the World Food
            Program or other multilateral organization.

    SEC. 3007. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION,
                        DELIVERY, AND DISTRIBUTION OF SHELF-STABLE
                        PREPACKAGED FOODS.

      Section 208(f) of the Food for Peace Act (7 U.S.C. 1726b(f)) is
    amended by striking ``2012'' and inserting ``2017''.

    SEC. 3008. GENERAL PROVISIONS.

      (a) Impact on Local Farmers and Economy.--Section 403(b) of the Food
    for Peace Act (7 U.S.C. 1733(b)) is amended by adding at the end the
    following new sentence: ``The Secretary or the Administrator, as
    appropriate, shall seek information, as part of the regular proposal
    and submission process, from implementing agencies on the potential
    benefits to the local economy of sales of agricultural commodities
    within the recipient country.''.
      (b) Prevention of Price Disruptions.--Section 403(e) of the Food for
    Peace Act (7 U.S.C. 1733(e)) is amended--
              (1) in paragraph (2), by striking ``reasonable market price''
            and inserting ``fair market value''; and
              (2) by adding at the end the following new paragraph:
              ``(3) Coordination on assessments.--The Secretary and the
            Administrator shall coordinate in assessments to carry out
            paragraph (1) and in the development of approaches to be used
            by implementing agencies for determining the fair market value
            described in paragraph (2).''.
      (c) Report on Use of Funds.--Section 403 of the Food for Peace Act (7
    U.S.C. 1733) is amended by adding at the end the following new
    subsection:
      ``(m) Report on Use of Funds.--Not later than 180 days after the date
    of the enactment of the Federal Agriculture Reform and Risk Management
    Act of 2012, and annually thereafter, the Administrator shall submit to
    Congress a report--
              ``(1) specifying the amount of funds (including funds for
            administrative costs, indirect cost recovery, and internal
            transportation, storage and handling, and associated
            distribution costs) provided to each eligible organization that
            received assistance under this Act in the previous fiscal year;
            and
              ``(2) describing how those funds were used by the eligible
            organization.''.

    SEC. 3009. PREPOSITIONING OF AGRICULTURAL COMMODITIES.

      Section 407(c)(4) of the Food for Peace Act (7 U.S.C. 1736a(c)(4)) is
    amended--
              (1) in subparagraph (A)--
                      (A) by striking ``2012'' and inserting ``2017''; and
                      (B) by striking ``for each such fiscal year not more
                    than $10,000,000 of such funds'' and inserting ``for
                    each of fiscal years 2001 through 2012 not more than
                    $10,000,000 of such funds and for each of fiscal years
                    2013 through 2017 not more than $15,000,000 of such
                    funds''; and
              (2) by striking subparagraph (B) and inserting the following
            new subparagraph:
                      ``(B) Additional prepositioning sites.--The
                    Administrator may establish additional sites for
                    prepositioning in foreign countries or change the
                    location of current sites for prepositioning in foreign
                    countries after conducting, and based on the results
                    of, assessments of need, feasibility, and cost.''.

    SEC. 3010. ANNUAL REPORT REGARDING FOOD AID PROGRAMS AND ACTIVITIES.

      Section 407(f)(1) of the Food for Peace Act (7 U.S.C. 1736a(f)(1)) is
    amended--
              (1) in the paragraph heading, by striking ``agricultural
            trade'' and inserting ``food aid'';
              (2) in subparagraph (B)(ii), by inserting before the
            semicolon at the end the following: ``and the intended
            beneficiaries of the project or activity''; and
              (3) in subparagraph (B)(iii)--
                      (A) by striking ``and'' at the end of subclause (I);
                      (B) by inserting ``and'' at the end of subclause
                    (II); and
                      (C) by inserting after subclause (II) the following
                    new subclause:
                                      ``(III) the McGovern-Dole
                                    International Food for Education and
                                    Child Nutrition Program established by
                                    section 3107 of the Farm Security and
                                    Rural Investment Act of 2002 (7 U.S.C.
                                    1736o-1);''.

    SEC. 3011. DEADLINE FOR AGREEMENTS TO FINANCE SALES OR TO PROVIDE OTHER
                        ASSISTANCE.

      Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is amended by
    striking ``2012'' and inserting ``2017''.

    SEC. 3012. AUTHORIZATION OF APPROPRIATIONS.

      (a) Authorization of Appropriations.--Section 412(a)(1) of the Food
    for Peace Act (7 U.S.C. 1736f(a)(1)) is amended by striking ``for
    fiscal year 2008 and each fiscal year thereafter, $2,500,000,000'' and
    inserting ``$2,500,000,000 for each of fiscal years 2008 through 2012
    and $2,000,000,000 for each of fiscal years 2013 through 2017''.
      (b) Minimum Level of Nonemergency Food Assistance.--Paragraph (1) of
    section 412(e) of the Food for Peace Act (7 U.S.C. 1736f(e)) is amended
    to read as follows:
              ``(1) Funds and commodities.--For each of fiscal years 2013
            through 2017, of the amounts made available to carry out
            emergency and nonemergency food assistance programs under title
            II, not less than $400,000,000 shall be expended for
            nonemergency food assistance programs under such title.''.

    SEC. 3013. MICRONUTRIENT FORTIFICATION PROGRAMS.

      (a) Elimination of Obsolete Reference to Study.--Section 415(a)(2)(B)
    of the Food for Peace Act (7 U.S.C. 1736g-2(a)(2)(B)) is amended by
    striking ``, using recommendations'' and all that follows through
    ``quality enhancements''.
      (b) Extension.--Section 415(c) of the Food for Peace Act (7 U.S.C.
    1736g-2(c)) is amended by striking ``2012'' and inserting ``2017''.

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

      Section 501 of the Food for Peace Act (7 U.S.C. 1737) is amended--
              (1) in subsection (d), in the matter preceding paragraph (1),
            by inserting ``, and not less than the greater of $15,000,000
            or 0.5 percent of the amounts made available for each of fiscal
            years 2013 through 2017,'' after ``2012''; and
              (2) in subsection (e)(1), by striking ``2012'' and inserting
            ``2017''.

                   Subtitle B--Agricultural Trade Act of 1978

    SEC. 3101. FUNDING FOR EXPORT CREDIT GUARANTEE PROGRAM.

      Section 211(b) of the Agricultural Trade Act of 1978 (7 U.S.C.
    5641(b)) is amended by striking ``2012'' and inserting ``2017''.

    SEC. 3102. FUNDING FOR MARKET ACCESS PROGRAM.

      Section 211(c)(1)(A) of the Agricultural Trade Act of 1978 (7 U.S.C.
    5641(c)(1)(A)) is amended by striking ``2012'' and inserting ``2017''.

    SEC. 3103. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

      Section 703(a) of the Agricultural Trade Act of 1978 (7 U.S.C.
    5723(a)) is amended by striking ``2012'' and inserting ``2017''.

                   Subtitle C--Other Agricultural Trade Laws

    SEC. 3201. FOOD FOR PROGRESS ACT OF 1985.

      (a) Extension.--The Food for Progress Act of 1985 (7 U.S.C. 1736o) is
    amended--
              (1) in subsection (f)(3), by striking ``2012'' and inserting
            ``2017'';
              (2) in subsection (g), by striking ``2012'' and inserting
            ``2017'';
              (3) in subsection (k), by striking ``2012'' and inserting
            ``2017''; and
              (4) in subsection (l)(1), by striking ``2012'' and inserting
            ``2017''.
      (b) Repeal of Completed Project.--Subsection (f) of the Food for
    Progress Act of 1985 (7 U.S.C. 1736o) is amended by striking paragraph
    (6).

    SEC. 3202. BILL EMERSON HUMANITARIAN TRUST.

      Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C.
    1736f-1) is amended--
              (1) in subsection (b)(2)(B)(i), by striking ``2012'' both
            places it appears and inserting ``2017''; and
              (2) in subsection (h), by striking ``2012'' both places it
            appears and inserting ``2017''.

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

      (a) Direct Credits or Export Credit Guarantees.--Section 1542(a) of
    the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law
    101-624; 7 U.S.C. 5622 note) is amended by striking ``2012'' and
    inserting ``2017''.
      (b) Development of Agricultural Systems.--Section 1542(d)(1)(A)(i) of
    the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law
    101-624; 7 U.S.C. 5622 note) is amended by striking ``2012'' and
    inserting ``2017''.

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

      (a) Reauthorization.--Section 3107(l)(2) of the Farm Security and
    Rural Investment Act of 2002 (7 U.S.C. 1736o-1(l)(2)) is amended by
    striking ``2012'' and inserting ``2017''.
      (b) Technical Correction.--Section 3107(d) of the Farm Security and
    Rural Investment Act of 2002 (7 U.S.C. 1736o-1(d)) is amended by
    striking ``to'' in the matter preceding paragraph (1).

    SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

      (a) Purpose.--Section 3205(b) of the Farm Security and Rural
    Investment Act of 2002 (7 U.S.C. 5680(b)) is amended by striking
    ``related barriers to trade'' and inserting ``technical barriers to
    trade''.
      (b) Funding.--Section 3205(e)(2) of the Farm Security and Rural
    Investment Act of 2002 (7 U.S.C. 5680(e)(2)) is amended--
              (1) by inserting ``and'' at the end of subparagraph (C); and
              (2) by striking subparagraphs (D) and (E) and inserting the
            following new subparagraph:
                      ``(D) $9,000,000 for each of fiscal years 2011
                    through 2017.''.

    SEC. 3206. GLOBAL CROP DIVERSITY TRUST.

      Section 3202(c) of the Food, Conservation, and Energy Act of 2008
    (Public Law 110-246; 22 U.S.C. 2220a note) is amended by striking
    ``section'' and all that follows through the period and inserting the
    following: ``section--
              ``(1) $60,000,000 for the period of fiscal years 2008 through
            2012; and
              ``(2) $50,000,000 for the period of fiscal years 2013 through
            2017.''.

    SEC. 3207. UNDER SECRETARY OF AGRICULTURE FOR FOREIGN AGRICULTURAL
                        SERVICES.

      (a) In General.--Subtitle B of the Department of Agriculture
    Reorganization Act of 1994 is amended by inserting after section 225 (7
    U.S.C. 6931) the following new section:

    ``SEC. 225A. UNDER SECRETARY OF AGRICULTURE FOR FOREIGN AGRICULTURAL
                        SERVICES.

      ``(a) Authorization.--The Secretary is authorized to establish in the
    Department the position of Under Secretary of Agriculture for Foreign
    Agricultural Services.
      ``(b) Confirmation Required.--If the Secretary establishes the
    position of Under Secretary of Agriculture for Foreign Agricultural
    Services under subsection (a), the Under Secretary shall be appointed
    by the President, by and with the advice and consent of the Senate.
      ``(c) Functions of Under Secretary.--
              ``(1) Principal functions.--Upon establishment, the Secretary
            shall delegate to the Under Secretary of Agriculture for
            Foreign Agricultural Services those functions under the
            jurisdiction of the Department that are related to foreign
            agricultural services.
              ``(2) Additional functions.--The Under Secretary of
            Agriculture for Foreign Agricultural Services shall perform
            such other functions as may be required by law or prescribed by
            the Secretary.
      ``(d) Succession.--Any official who is serving as Under Secretary of
    Agriculture for Farm and Foreign Agricultural Services on the date of
    the enactment of this section and who was appointed by the President,
    by and with the advice and consent of the Senate, shall not be required
    to be reappointed under subsection (b) or section 225(b) to the
    successor position authorized under subsection (a) or section 225(a) if
    the Secretary establishes the position, and the official occupies the
    new position, with 180 days after the date of the enactment of this
    section (or such later date set by the Secretary if litigation delays
    rapid succession).''.
      (b) Conforming Amendments.--Section 225 of the Department of
    Agriculture Reorganization Act of 1994 (7 U.S.C. 6931) is amended--
              (1) by striking ``Under Secretary of Agriculture for Farm and
            Foreign Agricultural Services'' each place it appears and
            inserting ``Under Secretary of Agriculture for Farm Services'';
            AND
              (2) in subsection (c)(1), by striking ``and foreign
            agricultural''.
      (c) Permanent Authority.--Section 296(b) of the Department of
    Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
              (1) in paragraph (6)(C), by striking ``or'' at the end;
              (2) in paragraph (7), by striking the period at the end and
            inserting a semicolon; and
              (3) by adding at the end the following new paragraph:
              ``(8) the authority of the Secretary to establish in the
            Department the position of Under Secretary of Agriculture for
            Foreign Agricultural Services in accordance with section
            225A;''.

                              TITLE IV--NUTRITION

             Subtitle A--Supplemental Nutrition Assistance Program

    SEC. 4001. RETAILERS.

      (a) Definition of Retail Food Store.--Section 3(p)(1)(A) of the Food
    and Nutrition Act of 2008 (7 U.S.C. 2012(p)(1)(A)) is amended by
    striking ``at least 2'' and inserting ``at least 3''.
      (b) Alternative Benefit Delivery.--Section 7(f) of the Food and
    Nutrition Act of 2008 (7 U.S.C. 2016(f)) is amended--
              (1) by striking paragraph (2) and inserting the following:
              ``(2) Imposition of costs.--
                      ``(A) In general.--Except as provided in subparagraph
                    (B), the Secretary shall require participating
                    retailers (including restaurants participating in a
                    State option restaurant program intended to serve the
                    elderly, disabled, and homeless) to pay 100 percent of
                    the costs of acquiring, and arrange for the
                    implementation of, electronic benefit transfer point-
                    of-sale equipment and supplies.
                      ``(B) Exemptions.--The Secretary may exempt from
                    subparagraph (A)--
                              ``(i) farmers' markets, military
                            commissaries, nonprofit food buying
                            cooperatives, and establishments,
                            organizations, programs, or group living
                            arrangements described in paragraphs (5), (7),
                            and (8) of section 3(k); and
                              ``(ii) establishments described in paragraphs
                            (3), (4), and (9) of section 3(k), other than
                            restaurants participating in a State option
                            restaurant program.''; and
              (2) by adding at the end the following:
              ``(4) Termination of manual vouchers.--
                      ``(A) In general.--Effective beginning on the
                    effective date of this paragraph, except as provided in
                    subparagraph (B), no State shall issue manual vouchers
                    to a household that receives supplemental nutrition
                    assistance under this Act or allow retailers to accept
                    manual vouchers as payment, unless the Secretary
                    determines that the manual vouchers are necessary, such
                    as in the event of an electronic benefit transfer
                    system failure or a disaster situation.
                      ``(B) Exemptions.--The Secretary may exempt
                    categories of retailers or individual retailers from
                    subparagraph (A) based on criteria established by the
                    Secretary.
              ``(5) Unique identification number required.--In an effort to
            enhance the antifraud protections of the program, the Secretary
            shall require all parties providing electronic benefit transfer
            services to provide for and maintain a unique terminal
            identification number information through the supplemental
            nutrition assistance program electronic benefit transfer
            transaction routing system. In developing the regulations
            implementing this paragraph, the Secretary shall consider
            existing commercial practices for other point-of-sale debit
            transactions. The Secretary shall issue proposed regulations
            implementing this paragraph not earlier than 2 years after the
            date of enactment of this paragraph.''.
      (c) Electronic Benefit Transfers.--Section 7(h)(3)(B) of the Food and
    Nutrition Act of 2008 (7 U.S.C. 2016(h)(3)(B)) is amended by striking
    ``is operational--'' and all that follows through ``(ii) in the case of
    other participating stores,'' and inserting ``is operational''.
      (d) Approval of Retail Food Stores and Wholesale Food Concerns.--
    Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) is
    amended--
              (1) in the 2d sentence of subsection (a)(1) by striking ``;
            and (C)'' and inserting ``; (C) whether the applicant is
            located in an area with significantly limited access to food;
            and (D)'';
              (2) in subsection (b) by adding at the end the following:
              ``(3) Retail food stores with significant sales of excluded
            items.--
                      ``(A) In general.--No retail food store for which at
                    least 45 percent of the total sales of the retail food
                    store is from the sale of excluded items described in
                    section 3(k)(1) may be authorized to accept and redeem
                    benefits unless the Secretary determines that the
                    participation of the retail food store is required for
                    the effective and efficient operation of the
                    supplemental nutrition assistance program.
                      ``(B) Application.--Subparagraph (A) shall be
                    effective--
                              ``(i) in the case of retail food stores
                            applying to be authorized for the 1st time,
                            beginning on the date that is 1 year after the
                            effective date of this paragraph; and
                              ``(ii) in the case of retail food stores
                            participating in the program on the effective
                            date of this paragraph, during periodic
                            reauthorization in accordance with subsection
                            (a)(2)(A).''; and
              (3) by adding at the end the following:
      ``(g) EBT Service Requirement.--An approved retail food store shall
    provide adequate EBT service as described in section 7(h)(3)(B).''.

    SEC. 4002. ENHANCING SERVICES TO ELDERLY AND DISABLED SUPPLEMENTAL
                        NUTRITION ASSISTANCE PROGRAM RECIPIENTS.

      (a) Enhancing Services to Elderly and Disabled Program Recipients.--
    Section 3(p) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(p))
    is amended--
              (1) in paragraph (3) by striking ``and'' at the end,
              (2) in paragraph (4) by striking the period at the end and
            inserting ``; and'', and
              (3) by inserting after paragraph (4) the following:
              ``(5) a governmental or private nonprofit food purchasing and
            delivery service that--
                      ``(A) purchases food for, and delivers such food to,
                    individuals who are--
                              ``(i) unable to shop for food; and
                              ``(ii)(I) not less than 60 years of age; or
                              ``(II) physically or mentally handicapped or
                            otherwise disabled;
                      ``(B) clearly notifies the participating household at
                    the time such household places a food order--
                              ``(i) of any delivery fee associated with the
                            food purchase and delivery provided to such
                            household by such service; and
                              ``(ii) that a delivery fee cannot be paid
                            with benefits provided under supplemental
                            nutrition assistance program; and
                      ``(C) sells food purchased for such household at the
                    price paid by such service for such food and without
                    any additional cost markup.''.
      (b) Implementation.--
              (1) Issuance of rules.--The Secretary of Agriculture shall
            issue regulations that--
                      (A) establish criteria to identify a food purchasing
                    and delivery service referred to in section 3(p)(5) of
                    the Food and Nutrition Act of 2008 as amended by this
                    Act, and
                      (B) establish procedures to ensure that such
                    service--
                              (i) does not charge more for a food item than
                            the price paid by the such service for such
                            food item,
                              (ii) offers food delivery service at no or
                            low cost to households under such Act,
                              (iii) ensures that benefits provided under
                            the supplemental nutrition assistance program
                            are used only to purchase food, as defined in
                            section 3 of such Act,
                              (iv) limits the purchase of food, and the
                            delivery of such food, to households eligible
                            to receive services described in section
                            3(p)(5) of such Act as so amended,
                              (v) has established adequate safeguards
                            against fraudulent activities, including
                            unauthorized use of electronic benefit cards
                            issued under such Act, and
                              (vi) such other requirements as the Secretary
                            deems to be appropriate.
              (2) Limitation.--Before the issuance of rules under paragraph
            (1) , the Secretary of Agriculture may not approve more than 20
            food purchasing and delivery services referred to in section
            3(p)(5) of the Food and Nutrition Act of 2008 as amended by
            this Act, to participate as retail food stores under the
            supplemental nutrition assistance program.

    SEC. 4003. FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.

      Section 4(b)(6)(F) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2013(b)(6)(F)) is amended by striking ``2012'' and inserting ``2017''.

    SEC. 4004. UPDATING PROGRAM ELIGIBILITY.

      Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is
    amended--
              (1) in the 2d sentence of subsection (a) by striking
            ``households in which each member receives benefits'' and
            inserting ``households in which each member receives cash
            assistance'', and
              (2) in subsection (j) by striking ``or who receives benefits
            under a State program'' and inserting ``or who receives cash
            assistance under a State program''.

    SEC. 4005. EXCLUSION OF MEDICAL MARIJUANA FROM EXCESS MEDICAL EXPENSE
                        DEDUCTION.

      Section 5(e)(5) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2014(e)(5)) is amended by adding at the end the following:
                      ``(C) Exclusion of medical marijuana.--The Secretary
                    shall promulgate rules to ensure that medical marijuana
                    is not treated as a medical expense for purposes of
                    this paragraph.''.

    SEC. 4006. STANDARD UTILITY ALLOWANCES BASED ON THE RECEIPT OF ENERGY
                        ASSISTANCE PAYMENTS.

      (a) Standard Utility Allowances in the Supplemental Nutrition
    Assistance Program.--Section 5(e)(6)(C) of the Food and Nutrition Act
    of 2008 (7 U.S.C. 2014(e)(6)(C)) is amended--
              (1) in clause (i) by inserting ``, subject to clause (iv)''
            after ``Secretary''; and
              (2) in clause (iv)(I) by striking ``the household still
            incurs'' and all that follows through the end of the subclause
            and inserting ``the payment received by, or made on behalf of,
            the household exceeds $10 or a higher amount annually, as
            determined by the Secretary.''.
      (b) Conforming Amendment.--Section 2605(f)(2)(A) of the Low-Income
    Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)(2)(A)) is amended
    by inserting before the semicolon at the end ``, except that, for
    purposes of the supplemental nutrition assistance program established
    under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), such
    payments or allowances exceed $10 or a higher amount annually, as
    determined by the Secretary of Agriculture in accordance with section
    5(e)(6)(C)(iv)(I) of that Act (7 U.S.C. 2014(e)(6)(C)(iv)(I))''.
      (c) Effective and Implementation Date.--
              (1) In general.--Except as provided in paragraph (2), this
            section and the amendments made by this section shall take
            effect beginning on October 1, 2013, for all certification
            periods beginning after that date.
              (2) State option to delay implementation for current
            recipients.--A State may, at the option of the State, implement
            a policy that eliminates or minimizes the effect of the
            amendments made by this section for households that receive a
            standard utility allowance as of the date of enactment of this
            Act for not more than a 180-day period beginning on the date on
            which the amendments made by this section would otherwise
            affect the benefits received by a household.

    SEC. 4007. ELIGIBILITY DISQUALIFICATIONS.

      Section 6(e)(3)(B) of Food and Nutrition Act of 2008 (7 U.S.C.
    2015(e)(3)(B)) is amended by striking ``section;'' and inserting the
    following:
                      ``section, subject to the condition that the course
                    or program of study--
                              ``(i) is part of a program of career and
                            technical education (as defined in section 3 of
                            the Carl D. Perkins Career and Technical
                            Education Act of 2006 (20 U.S.C. 2302)) that
                            may be completed in not more than 4 years at an
                            institution of higher education (as defined in
                            section 102 of the Higher Education Act of 1965
                            (20 U.S.C. 1002)); or
                              ``(ii) is limited to remedial courses, basic
                            adult education, literacy, or English as a
                            second language;''.

    SEC. 4008. ENDING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS
                        FOR LOTTERY OR GAMBLING WINNERS.

      (a) In General.--Section 6 of the Food and Nutrition Act of 2008 (7
    U.S.C. 2015) is amended by adding at the end the following:
      ``(r) Ineligibility for Benefits Due to Receipt of Substantial
    Lottery or Gambling Winnings.--
              ``(1) In general.--Any household in which a member receives
            substantial lottery or gambling winnings, as determined by the
            Secretary, shall lose eligibility for benefits immediately upon
            receipt of the winnings.
              ``(2) Duration of ineligibility.--A household described in
            paragraph (1) shall remain ineligible for participation until
            the household meets the allowable financial resources and
            income eligibility requirements under subsections (c), (d),
            (e), (f), (g), (i), (k), (l), (m), and (n) of section 5.
              ``(3) Agreements.--As determined by the Secretary, each State
            agency, to the maximum extent practicable, shall establish
            agreements with entities responsible for the regulation or
            sponsorship of gaming in the State to determine whether
            individuals participating in the supplemental nutrition
            assistance program have received substantial lottery or
            gambling winnings.''.
      (b) Conforming Amendments.--Section 5(a) of the Food and Nutrition
    Act of 2008 (7 U.S.C. 2014(a)) is amended in the 2d sentence by
    striking ``sections 6(b), 6(d)(2), and 6(g)'' and inserting
    ``subsections (b), (d)(2), (g), and (r) of section 6''.

    SEC. 4009. IMPROVING SECURITY OF FOOD ASSISTANCE.

      Section 7(h)(8) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2016(h)(8)) is amended--
              (1) in the heading by striking ``card fee'' and inserting
            ``of cards'';
              (2) by striking ``A State'' and inserting the following:
                      ``(A) Fees.--A State''; and
              (3) by adding after subparagraph (A) (as so designated by
            paragraph (2)) the following:
                      ``(B) Purposeful loss of cards.--
                              ``(i) In general.--Subject to terms and
                            conditions established by the Secretary in
                            accordance with clause (ii), if a household
                            makes excessive requests for replacement of the
                            electronic benefit transfer card of the
                            household, the Secretary may require a State
                            agency to decline to issue a replacement card
                            to the household unless the household, upon
                            request of the State agency, provides an
                            explanation for the loss of the card.
                              ``(ii) Requirements.--The terms and
                            conditions established by the Secretary shall
                            provide that--
                                      ``(I) the household be given the
                                    opportunity to provide the requested
                                    explanation and meet the requirements
                                    under this paragraph promptly;
                                      ``(II) after an excessive number of
                                    lost cards, the head of the household
                                    shall be required to review program
                                    rights and responsibilities with State
                                    agency personnel authorized to make
                                    determinations under section 5(a); and
                                      ``(III) any action taken, including
                                    actions required under section 6(b)(2),
                                    other than the withholding of the
                                    electronic benefit transfer card until
                                    an explanation described in subclause
                                    (I) is provided, shall be consistent
                                    with the due process protections under
                                    section 6(b) or 11(e)(10), as
                                    appropriate.
                      ``(C) Protecting vulnerable persons.--In implementing
                    this paragraph, a State agency shall act to protect
                    homeless persons, persons with disabilities, victims of
                    crimes, and other vulnerable persons who lose
                    electronic benefit transfer cards but are not
                    intentionally committing fraud.
                      ``(D) Effect on eligibility.--While a State may
                    decline to issue an electronic benefits transfer card
                    until a household satisfies the requirements under this
                    paragraph, nothing in this paragraph shall be
                    considered a denial of, or limitation on, the
                    eligibility for benefits under section 5.''.

    SEC. 4010. DEMONSTRATION PROJECTS ON ACCEPTANCE OF BENEFITS OF MOBILE
                        TRANSACTIONS.

      Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h))
    is amended by adding at the end the following:
              ``(14) Demonstration projects on acceptance of benefits of
            mobile transactions.--
                      ``(A) In general.--The Secretary shall pilot the use
                    of mobile technologies determined by the Secretary to
                    be appropriate to test the feasibility and implications
                    for program integrity, by allowing retail food stores,
                    farmers markets, and other direct producer-to-consumer
                    marketing outlets to accept benefits from recipients of
                    supplemental nutrition assistance through mobile
                    transactions.
                      ``(B) Demonstration projects.--To be eligible to
                    participate in a demonstration project under subsection
                    (a), a retail food store, farmers market, or other
                    direct producer-to-consumer marketing outlet shall
                    submit to the Secretary for approval a plan that
                    includes--
                              ``(i) a description of the technology;
                              ``(ii) the manner by which the retail food
                            store, farmers market or other direct producer-
                            to-consumer marketing outlet will provide proof
                            of the transaction to households;
                              ``(iii) the provision of data to the
                            Secretary, consistent with requirements
                            established by the Secretary, in a manner that
                            allows the Secretary to evaluate the impact of
                            the demonstration on participant access, ease
                            of use, and program integrity; and
                              ``(iv) such other criteria as the Secretary
                            may require.
                      ``(C) Date of completion.--The demonstration projects
                    under this paragraph shall be completed and final
                    reports submitted to the Secretary by not later than
                    July 1, 2015.
                      ``(D) Report to congress.--The Secretary shall submit
                    a report to the Committee on Agriculture of the House
                    of Representatives and the Committee on Agriculture,
                    Nutrition, and Forestry of the Senate that includes a
                    finding, based on the data provided under subparagraph
                    (C) whether or not implementation in all States is in
                    the best interest of the supplemental nutrition
                    assistance program.''.

    SEC. 4011. USE OF BENEFITS FOR PURCHASE OF COMMUNITY-SUPPORTED
                        AGRICULTURE SHARE.

      Section 10 of the Food and Nutrition Act of 2008 (7 U.S.C. 2019) is
    amended in the 1st sentence by inserting ``agricultural producers who
    market agricultural products directly to consumers shall be authorized
    to redeem benefits for the initial cost of the purchase of a community-
    supported agriculture share,'' after ``food so purchased,''.

    SEC. 4012. RESTAURANT MEALS PROGRAM.

      (a) In General.--Section 11(e) of the Food and Nutrition Act of 2008
    (7 U.S.C. 2020(e)) is amended--
              (1) in paragraph (22) by striking ``and'' at the end;
              (2) in paragraph (23)(C) by striking the period at the end
            and inserting ``; and''; and
              (3) by adding at the end the following:
              ``(24) if the State elects to carry out a program to contract
            with private establishments to offer meals at concessional
            prices, as described in paragraphs (3), (4), and (9) of section
            3(k)--
                      ``(A) the plans of the State agency for operating the
                    program, including--
                              ``(i) documentation of a need that eligible
                            homeless, elderly, and disabled clients are
                            underserved in a particular geographic area;
                              ``(ii) the manner by which the State agency
                            will limit participation to only those private
                            establishments that the State determines
                            necessary to meet the need identified in clause
                            (i); and
                              ``(iii) any other conditions the Secretary
                            may prescribe, such as the level of security
                            necessary to ensure that only eligible
                            recipients participate in the program; and
                      ``(B) a report by the State agency to the Secretary
                    annually, the schedule of which shall be established by
                    the Secretary, that includes--
                              ``(i) the number of households and individual
                            recipients authorized to participate in the
                            program, including any information on whether
                            the individual recipient is elderly, disabled,
                            or homeless; and
                              ``(ii) an assessment of whether the program
                            is meeting an established need, as documented
                            under subparagraph (A)(i).''.
      (b) Approval of Retail Food Stores and Wholesale Food Concerns.--
    Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) is
    amended by adding at the end the following:
      ``(h) Private Establishments.--
              ``(1) In general.--Subject to paragraph (2), no private
            establishment that contracts with a State agency to offer meals
            at concessional prices as described in paragraphs (3), (4), and
            (9) of section 3(k) may be authorized to accept and redeem
            benefits unless the Secretary determines that the participation
            of the private establishment is required to meet a documented
            need in accordance with section 11(e)(24).
              ``(2) Existing contracts.--
                      ``(A) In general.--If, on the day before the
                    effective date of this subsection, a State has entered
                    into a contract with a private establishment described
                    in paragraph (1) and the Secretary has not determined
                    that the participation of the private establishment is
                    necessary to meet a documented need in accordance with
                    section 11(e)(24), the Secretary shall allow the
                    operation of the private establishment to continue
                    without that determination of need for a period not to
                    exceed 180 days from the date on which the Secretary
                    establishes determination criteria, by regulation,
                    under section 11(e)(24).
                      ``(B) Justification.--If the Secretary determines to
                    terminate a contract with a private establishment that
                    is in effect on the effective date of this subsection,
                    the Secretary shall provide justification to the State
                    in which the private establishment is located for that
                    termination.
              ``(3) Report to congress.--Not later than 90 days after
            September 30, 2013, and 90 days after the last day of each
            fiscal year thereafter, the Secretary shall report to the
            Committee on Agriculture of the House of Representatives and
            the Committee on Agriculture, Nutrition, and Forestry of the
            Senate on the effectiveness of a program under this subsection
            using any information received from States under section
            11(e)(24) as well as any other information the Secretary may
            have relating to the manner in which benefits are used.''.
      (c) Conforming Amendments.--Section 3(k) of the Food and Nutrition
    Act of 2008 (7 U.S.C. 2012(k)) is amended by inserting ``subject to
    section 9(h)'' after ``concessional prices'' each place it appears.

    SEC. 4013. STATE VERIFICATION OPTION.

      Section 11(p) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2020(p)) is amended to read as follows:
      ``(p) State Verification Option.--In carrying out the supplemental
    nutrition assistance program, a State agency shall be required to use
    an income and eligibility, or an immigration status, verification
    system established under section 1137 of the Social Security Act (42
    U.S.C. 1320b-7), in accordance with standards set by the Secretary.''.

    SEC. 4014. REPEAL OF GRANT PROGRAM.

      Section 11(t) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2020(t)) is repealed.

    SEC. 4015. DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTEROPERABILITY.

      (a) Data Exchange Standardization.--Section 11 of the Food and
    Nutrition Act of 2008 (7 U.S.C. 2020) is amended by adding at the end
    the following:
      ``(v) Data Exchange Standardization for Improved Interoperability.--
              ``(1) Data exchange standards.--
                      ``(A) Designation.--The Secretary, in consultation
                    with an interagency work group which shall be
                    established by the Office of Management and Budget, and
                    considering State perspectives, shall, by rule,
                    designate a data exchange standard for any category of
                    information required to be reported under this Act.
                      ``(B) Data exchange standards must be nonproprietary
                    and interoperable.--The data exchange standard
                    designated under subparagraph (A) shall, to the extent
                    practicable, be nonproprietary and interoperable.
                      ``(C) Other requirements.--In designating data
                    exchange standards under this subsection, the Secretary
                    shall, to the extent practicable, incorporate--
                              ``(i) interoperable standards developed and
                            maintained by an international voluntary
                            consensus standards body, as defined by the
                            Office of Management and Budget, such as the
                            International Organization for Standardization;
                              ``(ii) interoperable standards developed and
                            maintained by intergovernmental partnerships,
                            such as the National Information Exchange
                            Model; and
                              ``(iii) interoperable standards developed and
                            maintained by Federal entities with authority
                            over contracting and financial assistance, such
                            as the Federal Acquisition Regulatory Council.
              ``(2) Data exchange standards for reporting.--
                      ``(A) Designation.--The Secretary, in consultation
                    with an interagency work group established by the
                    Office of Management and Budget, and considering State
                    perspectives, shall, by rule, designate data exchange
                    standards to govern the data reporting required under
                    this part.
                      ``(B) Requirements.--The data exchange standards
                    required by subparagraph (A) shall, to the extent
                    practicable--
                              ``(i) incorporate a widely-accepted,
                            nonproprietary, searchable, computer-readable
                            format;
                              ``(ii) be consistent with and implement
                            applicable accounting principles; and
                              ``(iii) be capable of being continually
                            upgraded as necessary.
                      ``(C) Incorporation of nonproprietary standards.--In
                    designating reporting standards under this subsection,
                    the Secretary shall, to the extent practicable,
                    incorporate existing nonproprietary standards, such as
                    the eXtensible Markup Language.''.
      (b) Effective Dates.--
              (1) Data exchange standards.--The Secretary of Agriculture
            shall issue a proposed rule under section 11(v)(1) of the Food
            and Nutrition Act of 2008 within 12 months after the effective
            date of this section, and shall issue a final rule under such
            section after public comment, within 24 months after such
            effective date.
              (2) Data reporting standards.--The reporting standards
            required under section 11(v)(2) of such Act shall become
            effective with respect to reports required in the first
            reporting period, after the effective date of the final rule
            referred to in paragraph (1) of this subsection, for which the
            authority for data collection and reporting is established or
            renewed under the Paperwork Reduction Act.

    SEC. 4016. REPEAL OF BONUS PROGRAM.

      Section 16(d) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2025(d)) is repealed.

    SEC. 4017. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.

      Section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2025(h)(1)(A)) is amended by striking ``$90,000,000'' and inserting
    ``$79,000,000''.

    SEC. 4018. MONITORING EMPLOYMENT AND TRAINING PROGRAM.

      (a) Reporting Measures.--Section 16(h)(5) of the Food and Nutrition
    Act of 2008 (7 U.S.C. 2025(h)(5)) is amended to read:
              ``(5)(A) In general.--The Secretary shall monitor the
            employment and training programs carried out by State agencies
            under section 6(d)(4) and assess their effectiveness in--
                      ``(i) preparing members of households participating
                    in the supplemental nutrition assistance program for
                    employment, including the acquisition of basic skills
                    necessary for employment; and
                      ``(ii) increasing the numbers of household members
                    who obtain and retain employment subsequent to their
                    participation in such employment and training programs.
              ``(B) Reporting measures.--The Secretary, in consultation
            with the Secretary of Labor, shall develop reporting measures
            that identify improvements in the skills, training education or
            work experience of members of households participating in the
            supplemental nutrition assistance program. Measures shall be
            based on common measures of performance for federal workforce
            training programs, so long as they reflect the challenges
            facing the types of members of households participating in the
            supplemental nutrition assistance program who participate in a
            specific employment and training component. The Secretary shall
            require that each State employment and training plan submitted
            under section 11(3)(19) identify appropriate reporting measures
            for each of their proposed components that serve at least 100
            people. Such measures may include:
                      ``(i) the percentage and number of program
                    participants who received employment and training
                    services and are in unsubsidized employment subsequent
                    to the receipt of those services;
                      ``(ii) the percentage and number of program
                    participants who obtain a recognized postsecondary
                    credential, including a registered apprenticeship, or a
                    regular secondary school diploma or its recognized
                    equivalent, while participating in or within 1 year
                    after receiving employment and training services;
                      ``(iii) the percentage and number of program
                    participants who are in an education or training
                    program that is intended to lead to a recognized
                    postsecondary credential, including a registered
                    apprenticeship or on-the-job training program, a
                    regular secondary school diploma or its recognized
                    equivalent, or unsubsidized employment;
                      ``(iv) subject to the terms and conditions set by the
                    Secretary, measures developed by each State agency to
                    assess the skills acquisition of employment and
                    training program participants that reflect the goals of
                    their specific employment and training program
                    components, which may include, but are not limited to--
                              ``(I) the percentage and number of program
                            participants who are meeting program
                            requirements in each component of the State's
                            education and training program; and
                              ``(II) the percentage and number of program
                            participants who are gaining skills likely to
                            lead to employment as measured through testing,
                            quantitative or qualitative assessment or other
                            method; and
                      ``(v) other indicators as approved by the Secretary.
              ``(C) State report.--Each State agency shall annually prepare
            and submit to the Secretary a report on the State's employment
            and training program that includes the numbers of supplemental
            nutrition assistance program participants who have gained
            skills, training, work or experience that will increase their
            ability to obtain regular employment using measures identified
            in subparagraph (B).
              ``(D) Modifications to the state employment and training
            plan.--Subject to the terms and conditions established by the
            Secretary, if the Secretary determines that the state agency's
            performance with respect to employment and training outcomes is
            inadequate, the Secretary may require the State agency to make
            modifications to their employment and training plan to improve
            such outcomes.
              ``(E) Periodic evaluation.--
                      ``(i) In general.--Subject to terms and conditions
                    established by the Secretary, not later than October 1,
                    2015, and not less frequently than once every 5 years
                    thereafter, the Secretary shall conduct a study to
                    review existing practice and research to identify
                    employment and training program components and
                    practices that--
                              ``(I) effectively assist members of
                            households participating in the supplemental
                            nutrition assistance program in gaining skills,
                            training, work, or experience that will
                            increase their ability to obtain regular
                            employment, and
                              ``(II) are best integrated with statewide
                            workforce development systems.
                      ``(ii) Report to congress.--The Secretary shall
                    submit a report that describes the results of the study
                    under clause (i) to the Committee on Agriculture in the
                    House of Representatives, and the Committee on
                    Agriculture, Nutrition and Forestry in the Senate.''.
      (b) Effective Date.--Notwithstanding section 4(c) of the Food and
    Nutrition Act of 2008 (7 U.S.C. 2013(a)), the Secretary shall issue
    interim final regulations implementing the amendment made by subsection
    (a) no later than 18 months after the date of enactment of this Act.
    States shall include such reporting measures in their employment and
    training plans for the 1st fiscal year thereafter that begins no sooner
    than 6 months after the date that such regulations are published.

    SEC. 4019. COOPERATION WITH PROGRAM RESEARCH AND EVALUATION.

      Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 2026) is
    amended by adding at the end the following:
      ``(l) Cooperation With Program Research and Evaluation.--States,
    State agencies, local agencies, institutions, facilities such as data
    consortiums, and contractors participating in programs authorized under
    this Act shall cooperate with officials and contractors acting on
    behalf of the Secretary in the conduct of evaluations and studies under
    this Act and shall submit information at such time and in such manner
    as the Secretary may require.''.

    SEC. 4020. AUTHORIZATION OF APPROPRIATIONS.

      Section 18(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2027(a)(1)) is amended in the 1st sentence by striking ``2012'' and
    inserting ``2017''.

    SEC. 4021. LIMITATION ON USE OF BLOCK GRANT TO PUERTO RICO.

      Section 19(a)(2)(B) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2028(a)(2)(B)) is amended by adding at the end the following:
                              ``(iii) Limitation on use of funds.--None of
                            the funds made available to the Commonwealth of
                            Puerto Rico under this subparagraph may be used
                            to provide nutrition assistance in the form of
                            cash benefits.''.

    SEC. 4022. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

      (a) Definition.--Section 25(a)(1)(B)(i) of the Food and Nutrition Act
    of 2008 (7 U.S.C. 2034(a)(1)(B)(i)) is amended--
              (1) in subclause (II) by striking ``and'' at the end;
              (2) in subclause (III) by striking ``or'' at the end and
            inserting ``and''; and
              (3) by adding at the end the following:
                                      ``(IV) to provide incentives for the
                                    consumption of fruits and vegetables
                                    among low-income individuals; or''.
      (b) Additional Funding.--Section 25(b) of the Food and Nutrition Act
    of 2008 (7 U.S.C. 2034) is amended by adding at the end the following:
              ``(3) Funding.--
                      ``(A) In general.--Out of any funds in the Treasury
                    not otherwise appropriated, the Secretary of the
                    Treasury shall transfer to the Secretary to carry out
                    this section not less than $10,000,000 for fiscal year
                    2013 and each fiscal year thereafter. Of the amount
                    made available under this subparagraph for each such
                    fiscal year, $5,000,000 shall be available to carry out
                    subsection (a)(1)(B)(I)(IV).
                      ``(B) Receipt and acceptance.--The Secretary shall be
                    entitled to receive, shall accept, and shall use to
                    carry out this section, the funds transferred under
                    subparagraph (A) without further appropriation.
                      ``(C) Maintenance of funding.--The funding provided
                    under subparagraph (A) shall supplement (and not
                    supplant) other Federal funding made available to the
                    Secretary to carry out this section.''.

    SEC. 4023. EMERGENCY FOOD ASSISTANCE.

      (a) Purchase of Commodities.--Section 27(a) of the Food and Nutrition
    Act of 2008 (7 U.S.C. 2036(a)) is amended--
              (1) in paragraph (1) by striking ``2008 through 2012'' and
            inserting ``2012 through 2017''; and
              (2) in paragraph (2)--
                      (A) by striking subparagraphs (A) and (B) and
                    inserting the following:
                      ``(A) for fiscal year 2012, $260,250,000;
                      ``(B) for fiscal year 2013 the dollar amount of
                    commodities specified in subparagraph (A) adjusted by
                    the percentage by which the thrifty food plan has been
                    adjusted under section 3(u)(4) between June 30, 2011
                    and June 30, 2012, and subsequently increased by
                    $20,000,000;'';
                      (B) in subparagraph (C)--
                              (i) by striking ``2010 through 2012, the
                            dollar amount of commodities specified in'' and
                            inserting ``2014 through 2017, the total amount
                            of commodities under''; and
                              (ii) by striking ``2008'' and inserting
                            ``2012''; and
                              (iii) by striking the period at the end and
                            inserting:``; and''; and
                      (C) by adding at the end the following:
                      ``(D) for fiscal year 2013 the dollar amount of
                    commodities specified in subparagraph (B), and for each
                    of the fiscal years 2014 through 2017 the respective
                    dollar amount of commodities specified in subparagraph
                    (C), increased by $5,000,000.''.
      (b) Emergency Food Program Infrastructure Grants.--Section 209(d) of
    the Emergency Food Assistance Act of 1983 (7 U.S.C. 7511a(d)) is
    amended by striking ``2012'' and inserting ``2017''.

    SEC. 4024. NUTRITION EDUCATION.

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

    SEC. 4025. RETAILER TRAFFICKING.

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

    ``SEC. 29. RETAILER TRAFFICKING.

      ``(a) Purpose.--The purpose of this section is to provide the
    Department of Agriculture with additional resources to prevent
    trafficking in violation of this Act by strengthening recipient and
    retailer program integrity. Additional funds are provided to supplement
    the Department's payment accuracy, and retailer and recipient integrity
    activities.
      ``(b) Funding.--
              ``(1) In general.--Out of any funds in the Treasury not
            otherwise appropriated, the Secretary of the Treasury shall
            transfer to the Secretary to carry out this section not less
            than $5,000,000 for fiscal year 2013 and each fiscal year
            thereafter.
              ``(2) Receipt and acceptance.--The Secretary shall be
            entitled to receive, shall accept, and shall use to carry out
            this section the funds transferred under paragraph (1) without
            further appropriation.
              ``(3) Maintenance of funding.--The funding provided under
            paragraph (1) shall supplement (and not supplant) other Federal
            funding for programs carried out under this Act.''.

    SEC. 4026. TECHNICAL AND CONFORMING AMENDMENTS.

      (a) Section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012)
    is amended--
              (1) in subsection (g) by striking ``coupon,'' the last place
            it appears and inserting ``coupon'';
              (2) in subsection (k)(7) by striking ``or are'' and inserting
            ``and'';
              (3) by striking subsection (l);
              (4) by redesignating subsections (m) through (t) as
            subsections (l) through (s), respectively; and
              (5) by inserting after subsection (s) (as so redesignated)
            the following:
      ``(t) `Supplemental nutritional assistance program' means the program
    operated pursuant to this Act.''.
      (b) Section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2013(a)) is amended by striking ``benefits'' the last place it appears
    and inserting ``Benefits''.
      (c) Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014)
    is amended--
              (1) in the last sentence of subsection (i)(2)(D) by striking
            ``section 13(b)(2)'' and inserting ``section 13(b)''; and
              (2) in subsection (k)(4)(A) by striking ``paragraph (2)(H)''
            and inserting ``paragraph (2)(G)''.
      (d) Section 6(d)(4) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2015(d)(4)) is amended--
              (1) in subparagraph (B)(vii) by moving the left margin 2 ems
            to the left, and
              (2) in subparagraph(F)(iii) by moving the left margin 4 ems
            to the left.
      (e) Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2016(h)) is amended by redesignating the 2d paragraph (12) as paragraph
    (13).
      (f) Section 9(a)(3) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2018(a)) is amended by moving the left margin 2 ems to the left.
      (g) Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 2021)
    is amended--
              (1) in subsection (b)(3)(C) by striking ``civil money
            penalties'' and inserting ``civil penalties''; and
              (2) in subsection (g)(1) by striking ``(7 U.S.C. 1786)'' and
            inserting ``(42 U.S.C. 1786)''.
      (h) Section 15(b)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2024(b)(1)) is amended in the 1st sentence by striking ``an benefit''
    and inserting ``a benefit''.
      (i) Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2025(a)) is amended in the proviso following paragraph (8) by striking
    ``, as amended.''.
      (j) Section 18(e) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2027(e)) is amended in the 1st sentence by striking ``sections 7(f)''
    and inserting ``section 7(f)''.
      (k) Section 22(b)(10)(B)(i) of the Food and Nutrition Act of 2008 (7
    U.S.C. 2031(b)(10)(B)(i)) is amended in the last sentence by striking
    ``Food benefits'' and inserting ``Benefits''.
      (l) Section 26(f)(3)(C) of the Food and Nutrition Act of 2008 (7
    U.S.C. 2035(f)(3)(C)) is amended by striking ``subsection'' and
    inserting ``subsections''.
      (m) Section 27(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2036(a)(1)) is amended by striking ``(Public Law 98-8; 7 U.S.C. 612c
    note)'' and inserting ``(7 U.S.C. 7515)''.
      (n) Section 509 of the Older Americans Act of 1965 (42 U.S.C. 3056g)
    is amended in the section heading by striking ``food stamp programs''
    and inserting ``supplemental nutrition assistance program''.
      (o) Section 4115(c)(2)(H) of the Food, Conservation, and Energy Act
    of 2008 (Public Law 110-246; 122 Stat. 1871) is amended by striking
    ``531'' and inserting ``454''.
      (p) Section 3803(c)(2)(C)(vii) of title 31 of the United States Code
    is amended by striking ``section 3(l)'' each place it appears and
    inserting ``section 3(s)''.
      (q) Section 115 of the Personal Responsibility and Work Opportunity
    Reconciliation Act of 1996 (Public Law 104-193) is amended--
              (1) in subsection (a)(2) by striking ``section 3(l)'' and
            inserting ``section 3(s)'';
              (2) in subsection (b)(2) by striking ``section 3(l)'' and
            inserting ``section 3(s)''; and
              (3) in subsection (e)(2) by striking ``section 3(l)'' and
            inserting ``section 3(s)''.
      (r) The Agriculture and Consumer Protection Act of 1973 (7 U.S.C.
    612c) is amended--
              (1) in section 4(a) by striking ``Food Stamp Act of 1977''
            and inserting ``Food and Nutrition Act of 2008''; and
              (2) in section 5--
                      (A) in subsection (i)(1) by striking ``Food Stamp Act
                    of 1977'' and inserting ``Food and Nutrition Act of
                    2008''; and
                      (B) in subsection (l)(2)(B) by striking ``Food Stamp
                    Act of 1977'' and inserting ``Food and Nutrition Act of
                    2008''.
      (s) The Social Security Act (42 U.S.C. 301 et seq.) is amended--
              (1) in the heading of section 453(j)(10) by striking ``food
            stamp'' and inserting ``supplemental nutrition assistance'';
              (2) in section 1137--
                      (A) in subsection (a)(5)(B) by striking ``food
                    stamp'' and inserting ``supplemental nutrition
                    assistance''; and
                      (B) in subsection (b)(4) by striking ``food stamp
                    program under the Food Stamp Act of 1977'' and
                    inserting ``supplemental nutrition assistance program
                    under the Food and Nutrition Act of 2008''; and
              (3) in the heading of section 1631(n) by striking ``Food
            Stamp'' and inserting ``Supplemental Nutrition Assistance''.

    SEC. 4027. TOLERANCE LEVEL FOR EXCLUDING SMALL ERRORS.

      The Secretary shall set the tolerance level for excluding small
    errors for the purposes of section 16(c) of the Food and Nutrition Act
    of 2008 (7 U.S.C. 2025(c))--
              (1) for fiscal year 2013 at an amount no greater than $25;
            and
              (2) for each fiscal year thereafter, the amount specified in
            paragraph (1) adjusted by the percentage by which the thrifty
            food plan is adjusted under section 3(u)(4) of such Act between
            June 30, 2011, and June 30 of the immediately preceding fiscal
            year.

    SEC. 4028. COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS PILOT PROGRAM.

      (a) Study.--
              (1) In general.--Prior to establishing the pilot program
            under subsection (b), the Secretary shall conduct a study to be
            completed not later than 2 years after the effective date of
            this section to assess--
                      (A) the capabilities of the Commonwealth of the
                    Northern Mariana Islands to operate the supplemental
                    nutrition assistance program in the same manner in
                    which the program is operated in the States (as defined
                    in section 3 of the Food and Nutrition Act (7 U.S.C.
                    2011 et seq)); and
                      (B) alternative models of the supplemental nutrition
                    assistance program operation and benefit delivery that
                    best meet the nutrition assistance needs of the
                    Commonwealth of the Northern Mariana Islands.
              (2) Scope.--The study conducted under paragraph (1)(A) will
            assess the capability of the Commonwealth to fulfill the
            responsibilities of a State agency, including--
                      (A) extending and limiting participation to eligible
                    households, as prescribed by sections 5 and 6 of the
                    Act;
                      (B) issuing benefits through EBT cards, as prescribed
                    by section 7 of the Act;
                      (C) maintaining the integrity of the program,
                    including operation of a quality control system, as
                    prescribed by section 16(c) of the Act;
                      (D) implementing work requirements, including
                    operating an employment and training program, as
                    prescribed by section 6(d) of the Act; and
                      (E) paying a share of administrative costs with non-
                    Federal funds, as prescribed by section 16(a) of the
                    Act.
      (b) Establishment.--If the Secretary determines that a pilot program
    is feasible, the Secretary shall establish a pilot program for the
    Commonwealth of the Northern Mariana Islands to operate the
    supplemental nutrition assistance program in the same manner in which
    the program is operated in the States.
      (c) Scope.--The Secretary shall utilize the information obtained from
    the study conducted under subsection (a) to establish the scope of the
    pilot program established under subsection (b).
      (d) Report.--Not later than June 30, 2018, the Secretary shall submit
    to the Committee on Agriculture of the House of Representatives and the
    Committee on Agriculture, Nutrition, and Forestry of the Senate a
    report on the pilot program carried out under this section, including
    an analysis of the feasibility of operating in the Commonwealth of the
    Northern Mariana Islands the supplemental nutrition assistance program
    as it is operated in the States.
      (e) Funding.--
              (1) Study.--Of the funds made available under section
            18(a)(1) of the Food and Nutrition Act of 2008, the Secretary
            may use not more than $1,000,000 in each of fiscal years 2013
            and 2014 to conduct the study described in subsection (a).
              (2) Pilot program.--Of the funds made available under section
            18(a)(1) of the Food and Nutrition Act of 2008, for the
            purposes of establishing and carrying out the pilot program
            established under subsection (b) of this section, including the
            Federal costs for providing technical assistance to the
            Commonwealth, authorizing and monitoring retail food stores,
            and assessing pilot operations, the Secretary may use not more
            than--
                      (A) $13,500,000 in fiscal year 2015; and
                      (B) $8,500,000 in each of fiscal years 2016 and 2017.

    SEC. 4029. ANNUAL STATE REPORT ON VERIFICATION OF SNAP PARTICIPATION.

      (a) Annual Report.--Not later 1 year after the date specified by the
    Secretary in the 180-period beginning on the date of the enactment of
    this Act, and annually thereafter, each State agency that carries out
    the supplemental nutrition assistance program shall submit to the
    Secretary a report containing sufficient information for the Secretary
    to determine whether the State agency has, for the then most recently
    concluded fiscal year preceding such annual date, verified that
    households to which such State agency provided such assistance in such
    fiscal year--
              (1) did not obtain benefits attributable to a deceased
            individual; and
              (2) did not include an individual who was simultaneously
            included in a household receiving such assistance in another
            State.
      (b) Penalty for Noncompliance.--For any fiscal year for which a State
    agency fails to comply with subsection (a), the Secretary shall reduce
    by 50 percent the amount otherwise payable to such State agency under
    section 16(a) of the Food and Nutrition Act of 2008 with respect to
    such fiscal year.

                  Subtitle B--Commodity Distribution Programs

    SEC. 4101. COMMODITY DISTRIBUTION PROGRAM.

      Section 4(a) of the Agriculture and Consumer Protection Act of 1973
    (7 U.S.C. 612c note; Public Law 93-86) is amended in the 1st sentence
    by striking ``2012'' and inserting ``2017''.

    SEC. 4102. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

      Section 5 of the Agriculture and Consumer Protection Act of 1973 (7
    U.S.C. 612c note; Public Law 93-86) is amended--
              (1) in paragraphs (1) and (2)(B) of subsection (a) by
            striking ``2012'' each place it appears and inserting ``2017'';
              (2) in the 1st sentence of subsection (d)(2) by striking
            ``2012'' and inserting ``2017'';
              (3) by striking subsection (g) and inserting the following:
      ``(g) Eligibility.--Except as provided in subsection (m), the States
    shall only provide assistance under the commodity supplemental food
    program to low-income individuals aged 60 and older.''; and
              (4) by adding at the end the following:
      ``(m) Phase-out.--Notwithstanding any other provision of law, an
    individual who receives assistance under the commodity supplemental
    food program on the day before the effective date of this subsection
    shall continue to receive that assistance until the date on which the
    individual no longer qualifies for assistance under the eligibility
    criteria for the program in effect on the day before the effective date
    of this subsection.''.

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

      Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7
    U.S.C. 1431e(2)(A)) is amended in the 1st sentence by striking ``2012''
    and inserting ``2017''.

    SEC. 4104. PROCESSING OF COMMODITIES.

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

                           Subtitle C--Miscellaneous

    SEC. 4201. FARMERS' MARKET NUTRITION PROGRAM.

      Section 4402 of the Farm Security and Rural Investment Act of 2002 (7
    U.S.C. 3007) is amended--
              (1) in the section heading by striking ``seniors'';
              (2) by amending subsection (a) to read as follows:
      ``(a) Funding.--
              ``(1) In general.--Of the funds of the Commodity Credit
            Corporation, the Secretary of Agriculture shall use to carry
            out and expand the farmers market nutrition program $20,600,000
            for each of fiscal years 2013 through 2017.
              ``(2) Additional funding.--There is authorized to be
            appropriated such sums as are necessary to carry out this
            subsection for each of fiscal years 2013 through 2017.'';
              (3) in subsection (b)--
                      (A) in the matter preceding paragraph (1), by
                    striking ``seniors''; and
                      (B) in paragraph (1) by inserting ``, and low-income
                    families who are determined to be at nutritional risk''
                    after ``low-income seniors'';
              (4) in subsection (c) by striking ``seniors'';
              (5) in subsection (d) by striking ``seniors'';
              (6) in subsection (e) by striking ``seniors'';
              (7) by redesignating subsections (c), (d), (e), and (f) as
            subsections (d), (e), (f), and (g), respectively; and
              (8) by inserting after subsection (b) the following:
      ``(c) State Grants and Other Assistance.--The Secretary shall carry
    out the Program through grants and other assistance provided in
    accordance with agreements made with States, for implementation through
    State agencies and local agencies, that include provisions--
              ``(1) for the issuance of coupons or vouchers to
            participating individuals;
              ``(2) establishing an appropriate annual percentage
            limitation on the use of funds for administrative costs; and
              ``(3) specifying other terms and conditions as the Secretary
            deems appropriate to encourage expanding the participation of
            small scale farmers in Federal nutrition programs.''.

    SEC. 4202. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

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

    SEC. 4203. FRESH FRUIT AND VEGETABLE PROGRAM.

      Section 19 of the Richard B. Russell National School Lunch Act (42
    U.S.C. 1769a) is amended--
              (1) in the section heading, by striking ``fresh'';
              (2) in subsection (a), by striking ``fresh'';
              (3) in subsection (b), by striking ``fresh''; and
              (4) in subsection (e), by striking ``fresh''.

    SEC. 4204. ADDITIONAL AUTHORITY FOR PURCHASE OF FRESH FRUITS,
                        VEGETABLES, AND OTHER SPECIALTY FOOD CROPS.

      Section 10603 of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 612c-4) is amended--
              (1) in subsection (b), by striking ``2012'' and inserting
            ``2017'';
              (2) by redesignating subsection (c) as subsection (d); and
              (3) by inserting after subsection (b) the following new
            subsection:
      ``(c) Pilot Grant Program for Purchase of Fresh Fruits and
    Vegetables.--
              ``(1) In general.--Using amounts made available to carry out
            subsection (b), the Secretary of Agriculture shall conduct a
            pilot program under which the Secretary will give not more than
            five participating States the option of receiving a grant in an
            amount equal to the value of the commodities that the
            participating State would otherwise receive under this section
            for each of fiscal years 2013 through 2017.
              ``(2) Use of grant funds.--A participating State receiving a
            grant under this subsection may use the grant funds solely to
            purchase fresh fruits and vegetables for distribution to
            schools and service institutions in the State that participate
            in the food service programs under the Richard B. Russell
            National School Lunch Act (42 U.S.C. 1751 et seq.) and the
            Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
              ``(3) Selection of participating states.--The Secretary shall
            select participating States from applications submitted by the
            States.
              ``(4) Reporting requirements.--
                      ``(A) School and service institution requirement.--
                    Schools and service institutions in a participating
                    State shall keep records of purchases of fresh fruits
                    and vegetables made using the grant funds and report
                    such records to the State.
                      ``(B) State requirement.--Each participating State
                    shall submit to the Secretary a report on the success
                    of the pilot program in the State, including
                    information on--
                              ``(i) the amount and value of each type of
                            fresh fruit and vegetable purchased by the
                            State; and
                              ``(ii) the benefit provided by such purchases
                            in conducting the school food service in the
                            State, including meeting school meal
                            requirements.''.

    SEC. 4205. ENCOURAGING LOCALLY AND REGIONALLY GROWN AND RAISED FOOD.

      (a) Commodity Purchase Streamlining.--The Secretary may permit each
    school food authority with a low annual commodity entitlement value, as
    determined by the Secretary, to elect to substitute locally and
    regionally grown and raised food for the authority's allotment, in
    whole or in part, of commodity assistance for the school meal programs
    under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751
    et seq.) and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.),
    if--
              (1) the election is requested by the school food authority;
              (2) the Secretary determines that the election will reduce
            State and Federal administrative costs; and
              (3) the election will provide the school food authority with
            greater flexibility to purchase locally and regionally grown
            and raised foods.
      (b) Farm-to-school Demonstration Programs.--
              (1) In general.--The Secretary may establish farm-to-school
            demonstration programs under which school food authorities,
            agricultural producers producing for local and regional
            markets, and other farm-to-school stakeholders will collaborate
            with the Agriculture Marketing Service to, on a cost neutral
            basis, source food for the school meal programs under the
            Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et
            seq.) and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et
            seq.) from local farmers and ranchers in lieu of the commodity
            assistance provided to the school food authorities for the
            school meal programs.
              (2) Requirements.--
                      (A) In general.--Each demonstration program carried
                    out under this subsection shall--
                              (i) facilitate and increase the purchase of
                            unprocessed and minimally processed locally and
                            regionally grown and raised agricultural
                            products to be served under the school meal
                            programs;
                              (ii) test methods to improve procurement,
                            transportation, and meal preparation processes
                            for the school meal programs;
                              (iii) assess whether administrative costs can
                            be saved through increased school authority
                            flexibility to source locally and regionally
                            produced foods for the school meal programs;
                            and
                              (iv) undertake rigorous evaluation and share
                            information about results of the demonstration
                            program, including cost savings, with the
                            Secretary, other school food authorities,
                            agricultural producers producing for the local
                            and regional market, and the general public.
                      (B) Plans.--In order to be selected to carry out a
                    demonstration program under this subsection, a school
                    food authority shall submit to the Secretary a plan at
                    such time and in such manner as the Secretary may
                    require, and containing information with respect to the
                    requirements described in clauses (i) through (iv) of
                    subparagraph (A).
              (3) Technical assistance.--The Secretary shall provide
            technical assistance to demonstration program participants to
            assist such participants to acquire bids from potential vendors
            in a timely and cost-effective manner.
              (4) Length.--The Secretary shall determine the appropriate
            length of time for each demonstration program under this
            subsection.
              (5) Coordination.--The Secretary shall coordinate among
            relevant agencies of the Department of Agriculture and non-
            governmental organizations with appropriate expertise to
            facilitate the provision of training and technical assistance
            necessary to the successful implementation of demonstration
            programs carried out under this subsection.
              (6) Number.--Subject to the availability of funds to carry
            out this subsection, the Secretary of Agriculture shall
            implement at least 10 demonstration programs under this
            subsection.
              (7) Diversity and balance.--In carrying out demonstration
            programs under this subsection, the Secretary shall, to the
            maximum extent practicable, ensure--
                      (A) geographical diversity;
                      (B) at least half of the demonstration programs are
                    completed in collaboration with school food authorities
                    with small annual commodity entitlements, as determined
                    by the Secretary;
                      (C) at least half of the demonstration programs are
                    completed in rural or tribal communities;
                      (D) equitable treatment of school food authorities
                    with a high percentage of students eligible for free or
                    reduced price lunches, as determined by the Secretary;
                    and
                      (E) at least one of the demonstration programs is
                    completed on a military installation as defined in
                    section 2687(e)(1) of title 10, United States Code.

                                TITLE V--CREDIT

                        Subtitle A--Farm Ownership Loans

    SEC. 5001. ELIGIBILITY FOR FARM OWNERSHIP LOANS.

      (a) In General.--Section 302(a) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1922(a)) is amended--
              (1) by striking ``(a) In General.--The'' and inserting the
            following:
      ``(a) In General.--
              ``(1) Eligibility requirements.--The'';
              (2) in the 1st sentence, by inserting after ``limited
            liability companies'' the following: ``, and such other legal
            entities as the Secretary deems appropriate,'';
              (3) in the 2nd sentence, by redesignating clauses (1) through
            (4) as clauses (A) through (D), respectively;
              (4) in each of the 2nd and 3rd sentences, by striking ``and
            limited liability companies'' each place it appears and
            inserting ``limited liability companies, and such other legal
            entities'';
              (5) in the 3rd sentence, by striking ``(3)'' and ``(4)'' and
            inserting ``(C)'' and ``(D)'', respectively; and
              (6) by adding at the end the following:
              ``(2) Special deeming rules.--
                      ``(A) Eligibility of certain operating-only
                    entities.--An entity that is or will become only the
                    operator of a family farm is deemed to meet the owner-
                    operator requirements of paragraph (1) if the
                    individuals that are the owners of the family farm own
                    more than 50 percent (or such other percentage as the
                    Secretary determines is appropriate) of the entity.
                      ``(B) Eligibility of certain embedded entities.--An
                    entity that is an owner-operator described in paragraph
                    (1), or an operator described in subparagraph (A) of
                    this paragraph that is owned, in whole or in part, by
                    other entities, is deemed to meet the direct ownership
                    requirement imposed under paragraph (1) if at least 75
                    percent of the ownership interests of each embedded
                    entity of such entity is owned directly or indirectly
                    by the individuals that own the family farm.''.
      (b) Direct Farm Ownership Experience Requirement.--Section 302(b)(1)
    of such Act (7 U.S.C. 1922(b)(1)) is amended by inserting ``or has
    other acceptable experience for a period of time, as determined by the
    Secretary,'' after ``3 years''.
      (c) Conforming Amendments.--
              (1) Section 304(c)(2) of such Act (7 U.S.C. 1924(c)(2)) by
            striking ``paragraphs (1) and (2) of section 302(a)'' and
            inserting ``clauses (A) and (B) of section 302(a)(1)''.
              (2) Section 310D of such Act (7 U.S.C. 1934) is amended--
                      (A) by inserting after ``partnership'' the following:
                    ``, or such other legal entities as the Secretary deems
                    appropriate,''; and
                      (B) by striking ``or partners'' each place it appears
                    and inserting ``partners, or owners''.

    SEC. 5002. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

      (a) Eligibility.--Section 304(c) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1924(c)) is amended by inserting after
    ``limited liability companies'' the following: ``, or such other legal
    entities as the Secretary deems appropriate,''.
      (b) Limitation on Loan Guarantee Amount.--Section 304(e) of such Act
    (7 U.S.C. 1924(e)) is amended by striking ``75 percent'' and inserting
    ``90 percent''.
      (c) Extension of Program.--Section 304(h) of such Act (7 U.S.C.
    1924(h)) is amended by striking ``2012'' and inserting ``2017''.

    SEC. 5003. DOWN PAYMENT LOAN PROGRAM.

      (a) In General.--Section 310E(b)(1)(C) of the Consolidated Farm and
    Rural Development Act (7 U.S.C. 1935(b)(1)(C)) is amended by striking
    ``$500,000'' and inserting ``$667,000''.
      (b) Technical Correction.--Section 310E(b) of such Act (7 U.S.C.
    1935(b)) is amended by striking the 2nd paragraph (2).

    SEC. 5004. ELIMINATION OF MINERAL RIGHTS APPRAISAL REQUIREMENT.

      Section 307 of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1927) is amended by striking subsection (d) and redesignating
    subsection (e) as subsection (d).

                          Subtitle B--Operating Loans

    SEC. 5101. ELIGIBILITY FOR FARM OPERATING LOANS.

      Section 311(a) of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1941(a)) is amended--
              (1) by striking ``(a) In General.--The'' and inserting the
            following:
      ``(a) In General.--
              ``(1) Eligibility requirements.--The'';
              (2) in the 1st sentence, by inserting after ``limited
            liability companies'' the following: ``, and such other legal
            entities as the Secretary deems appropriate,'';
              (3) in the 2nd sentence, by redesignating clauses (1) through
            (4) as clauses (A) through (D), respectively;
              (4) in each of the 2nd and 3rd sentences, by striking ``and
            limited liability companies'' each place it appears and
            inserting ``limited liability companies, and such other legal
            entities'';
              (5) in the 3rd sentence, by striking ``(3)'' and ``(4)'' and
            inserting ``(C)'' and ``(D)'', respectively; and
              (6) by adding at the end the following:
              ``(2) Special deeming rule.--An entity that is an operator
            described in paragraph (1) that is owned, in whole or in part,
            by other entities, is deemed to meet the direct ownership
            requirement imposed under paragraph (1) if at least 75 percent
            of the ownership interests of each embedded entity of such
            entity is owned directly or indirectly by the individuals that
            own the family farm.''.

    SEC. 5102. ELIMINATION OF RURAL RESIDENCY REQUIREMENT FOR OPERATING
                        LOANS TO YOUTH.

      Section 311(b)(1) of the Consolidated Farm and Rural Development Act
    (7 U.S.C. 1941(b)(1)) is amended by striking ``who are rural
    residents''.

    SEC. 5103. AUTHORITY TO WAIVE PERSONAL LIABILITY FOR YOUTH LOANS DUE TO
                        CIRCUMSTANCES BEYOND BORROWER CONTROL.

      Section 311(b) of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1941(b)) is amended by adding at the end the following:
      ``(5) The Secretary may, on a case by case basis, waive the personal
    liability of a borrower for a loan made under this subsection if any
    default on the loan was due to circumstances beyond the control of the
    borrower.''.

    SEC. 5104. MICROLOANS.

      (a) In General.--Section 313 of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1943) is amended by adding at the end the
    following:
      ``(c) Microloans.--
              ``(1) In general.--Subject to paragraph (2), the Secretary
            may establish a program to make or guarantee microloans.
              ``(2) Limitation.--The Secretary shall not make or guarantee
            a microloan under this subsection that exceeds $35,000 or that
            would cause the total principal indebtedness outstanding at any
            1 time for microloans made under this chapter to any 1 borrower
            to exceed $70,000.
              ``(3) Applications.--To the maximum extent practicable, the
            Secretary shall limit the administrative burdens and streamline
            the application and approval process for microloans under this
            subsection.
              ``(4) Cooperative lending projects.--
                      ``(A) In general.--Subject to subparagraph (B), the
                    Secretary may contract with community-based and
                    nongovernmental organizations, State entities, or other
                    intermediaries, as the Secretary determines
                    appropriate--
                              ``(i) to make or guarantee a microloan under
                            this subsection; and
                              ``(ii) to provide business, financial,
                            marketing, and credit management services to
                            borrowers.
                      ``(B) Requirements.--Before contracting with an
                    entity described in subparagraph (A), the Secretary--
                              ``(i) shall review and approve--
                                      ``(I) the loan loss reserve fund for
                                    microloans established by the entity;
                                    and
                                      ``(II) the underwriting standards for
                                    microloans of the entity; and
                              ``(ii) establish such other requirements for
                            contracting with the entity as the Secretary
                            determines necessary.''.
      (b) Exceptions for Direct Loans.--Section 311(c)(2) of such Act (7
    U.S.C. 1941(c)(2)) is amended to read as follows:
              ``(2) Exceptions.--In this subsection, the term `direct
            operating loan' shall not include--
                      ``(A) a loan made to a youth under subsection (b); or
                      ``(B) a microloan made to a young beginning farmer or
                    rancher or a military veteran farmer, as defined by the
                    Secretary.''.
      (c) Section 312(a) of such Act (7 U.S.C. 1942(a)) is amended by
    inserting ``(including a microloan, as defined by the Secretary)''
    after ``A direct loan''.
      (d) Section 316(a)(2) of such Act (7 U.S.C. 1946(a)(2)) is amended by
    inserting ``a microloan to a beginning farmer or rancher or military
    veteran farmer or'' after ``The interest rate on''.

                          Subtitle C--Emergency Loans

    SEC. 5201. ELIGIBILITY FOR EMERGENCY LOANS.

      Section 321(a) of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1961(a)) is amended--
              (1) by striking ``owner-operators (in the case of loans for a
            purpose under subtitle A) or operators (in the case of loans
            for a purpose under subtitle B)'' each place it appears and
            inserting ``(in the case of farm ownership loans in accordance
            with subtitle A) owner-operators or operators, or (in the case
            of loans for a purpose under subtitle B) operators'';
              (2) by inserting after ``limited liability companies'' the
            1st place it appears the following: ``, or such other legal
            entities as the Secretary deems appropriate''; and
              (3) by inserting after ``limited liability companies'' the
            2nd place it appears the following: ``, or other legal
            entities'';
              (4) by striking ``and limited liability companies,'' and
            inserting ``limited liability companies, and such other legal
            entities'';
              (5) by striking ``ownership and operator'' and inserting
            ``ownership or operator''; and
              (6) by adding at the end the following: ``An entity that is
            an owner-operator or operator described in this subsection is
            deemed to meet the direct ownership requirement imposed under
            this subsection if at least 75 percent of the ownership
            interests of each embedded entity of such entity is owned
            directly or indirectly by the individuals that own the family
            farm.''.

                     Subtitle D--Administrative Provisions

    SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS
                        PILOT PROGRAM.

      Section 333B(h) of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1983b(h)) is amended by striking ``2012'' and inserting
    ``2017''.

    SEC. 5302. ELIGIBLE BEGINNING FARMERS AND RANCHERS.

      (a) Conforming Amendments Relating to Changes in Eligibility Rules.--
    Section 343(a)(11) of such Act (7 U.S.C. 1991(a)(11)) is amended--
              (1) by inserting after ``joint operation,'' the 1st place it
            appears the following: ``or such other legal entity as the
            Secretary deems appropriate,'';
              (2) by striking ``or joint operators'' each place it appears
            and inserting ``joint operators, or owners''; and
              (3) by inserting after ``joint operation,'' the 2nd and 3rd
            place it appears the following: ``or such other legal
            entity,''.
      (b) Modification of Acreage Ownership Limitation.--Section
    343(a)(11)(F) of such Act (7 U.S.C. 1991(a)(11)(F)) is amended by
    striking ``median acreage'' and inserting ``average acreage''.

    SEC. 5303. LOAN AUTHORIZATION LEVELS.

      Section 346(b)(1) of the Consolidated Farm and Rural Development Act
    (7 U.S.C. 1994(b)(1)) is amended in the matter preceding subparagraph
    (A) by striking ``2012'' and inserting ``2017''.

    SEC. 5304. PRIORITY FOR PARTICIPATION LOANS.

      Section 346(b)(2)(A)(i) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1994(b)(2)(A)(i)) is amended by adding at the
    end the following:
                                      ``(III) Priority.--In order to
                                    maximize the number of borrowers served
                                    under this clause, the Secretary--
                                              ``(aa) shall give priority to
                                            applicants who apply under the
                                            down payment loan program under
                                            section 310E or joint financing
                                            arrangements under section
                                            307(a)(3)(D); and
                                              ``(bb) may offer other
                                            financing options under this
                                            subtitle to applicants only if
                                            the Secretary determines that
                                            down payment or other
                                            participation loan options are
                                            not a viable approach for the
                                            applicants.''.

    SEC. 5305. LOAN FUND SET-ASIDES.

      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--
              (1) by striking ``2012'' and inserting ``2017''; and
              (2) by striking ``of the total amount''.

    SEC. 5306. CONFORMING AMENDMENT TO BORROWER TRAINING PROVISION,
                        RELATING TO ELIGIBILITY CHANGES.

      Section 359(c)(2) of the Consolidated Farm and Rural Development Act
    (7 U.S.C. 2006a(c)(2)) is amended by striking ``section 302(a)(2) or
    311(a)(2)'' and inserting ``section 302(a)(1)(B) or 311(a)(1)(B)''.

               Subtitle E--State Agricultural Mediation Programs

    SEC. 5401. STATE AGRICULTURAL MEDIATION PROGRAMS.

      Section 506 of the Agricultural Credit Act of 1987 (7 U.S.C. 5106) is
    amended by striking ``2015'' and inserting ``2017''.

          Subtitle F--Loans to Purchasers of Highly Fractionated Land

    SEC. 5501. LOANS TO PURCHASERS OF HIGHLY FRACTIONATED LAND.

      The first section of Public Law 91-229 (25 U.S.C. 488) is amended in
    subsection (b)(1) by striking ``pursuant to section 205(c) of the
    Indian Land Consolidation Act (25 U.S.C. 2204(c))'' and inserting ``or
    to intermediaries in order to establish revolving loan funds for the
    purchase of highly fractionated land''.

                          TITLE VI--RURAL DEVELOPMENT

            Subtitle A--Consolidated Farm and Rural Development Act

    SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY GRANTS.

      Section 306(a)(2)(B)(vii) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) by striking ``$30,000,000
    for each of fiscal years 2008 through 2012'' and inserting
    ``$15,000,000 for each of fiscal years 2013 through 2017''.

    SEC. 6002. 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 ``$15,000,000 for
    each of fiscal years 2008 through 2012'' and inserting ``$15,000,000
    for each of fiscal years 2013 through 2017''.

    SEC. 6003. ELIMINATION OF RESERVATION OF COMMUNITY FACILITIES GRANT
                        PROGRAM FUNDS.

      Section 306(a)(19) of the Consolidated Farm and Rural Development Act
    (7 U.S.C. 1926(a)(19)) is amended by striking subparagraph (C).

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

      Section 306(a)(22) of the Consolidated Farm and Rural Development Act
    (7 U.S.C. 1926(a)(22)) is amended to read as follows:
              ``(22) Rural water and wastewater circuit rider program.--
                      ``(A) In general.--The Secretary shall continue a
                    national rural water and wastewater circuit rider
                    program that--
                              ``(i) is consistent with the activities and
                            results of the program conducted before the
                            date of enactment of this paragraph, as
                            determined by the Secretary; and
                              ``(ii) receives funding from the Secretary,
                            acting through the Rural Utilities Service.
                      ``(B) Authorization of appropriations.--There is
                    authorized to be appropriated to carry out this
                    paragraph $20,000,000 for fiscal year 2013 and each
                    fiscal year thereafter.''.

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

      Section 306(a)(25)(C) of the Consolidated Farm and Rural Development
    Act (7 U.S.C. 1926(a)(25)(C)) is amended by striking ``$10,000,000 for
    each of fiscal years 2008 through 2012'' and inserting ``$5,000,000 for
    each of fiscal years 2013 through 2017''.

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

      Section 306A(i)(2) of the Consolidated Farm and Rural Development Act
    (7 U.S.C. 1926a(i)(2)) is amended by striking ``$35,000,000 for each of
    fiscal years 2008 through 2012'' and inserting ``$27,000,000 for each
    of fiscal years 2013 through 2017''.

    SEC. 6007. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE
                        CONSTRUCTION, REFURBISHING, AND SERVICING OF
                        INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN
                        RURAL AREAS FOR INDIVIDUALS WITH LOW OR MODERATE
                        INCOMES.

      Section 306E(d) of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1926e(d)) is amended by striking ``$10,000,000 for each of
    fiscal years 2008 through 2012'' and inserting ``$5,000,000 for each of
    fiscal years 2013 through 2017''.

    SEC. 6008. RURAL BUSINESS AND INDUSTRY LOAN PROGRAM.

      (a) Flexibility for the Business and Loan Program.--Section
    310B(a)(2)(A) of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1932(a)(2)(A)) is amended by inserting ``including working
    capital'' after ``employment''.
      (b) Greater Flexibility for Adequate Collateral Through Accounts
    Receivable.--Section 310B(g)(7) of such Act (7 U.S.C. 1932(g)(7)) is
    amended by adding at the end the following: ``In the discretion of the
    Secretary, if the Secretary determines that the action would not create
    or otherwise contribute to an unreasonable risk of default or loss to
    the Federal Government, the Secretary may take account receivables as
    security for the obligations entered into in connection with loans and
    a borrower may use account receivables as collateral to secure a loan
    made or guaranteed under this subsection.''.
      (c) Regulations.--Not later than 6 months after the date of the
    enactment of this Act, the Secretary shall promulgate such regulations
    as are necessary to implement the amendments made by this section.

    SEC. 6009. RURAL COOPERATIVE DEVELOPMENT GRANTS.

      Section 310B(e)(12) of the Consolidated Farm and Rural Development
    Act (7 U.S.C. 1932(e)(12)) is amended by striking ``$50,000,000 for
    each of fiscal years 2008 through 2012'' and inserting ``$40,000,000
    for each of fiscal years 2013 through 2017''.

    SEC. 6010. LOCALLY OR REGIONALLY PRODUCED AGRICULTURAL FOOD PRODUCTS.

      Section 310B(g)(9)(B)(v)(I) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1932(g)(9)(B)(v)(I)) is amended--
              (1) by striking ``2012'' and inserting ``2017''; and
              (2) by inserting ``and not more than 7 percent'' after ``5
            percent''.

    SEC. 6011. INTERMEDIARY RELENDING PROGRAM.

      (a) In General.--Subtitle A of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1922-1936a) is amended by adding at the end
    the following:

    ``SEC. 310H. INTERMEDIARY RELENDING PROGRAM.

      ``(a) In General.--The Secretary shall make loans to the entities,
    for the purposes, and subject to the terms and conditions specified in
    the 1st, 2nd, and last sentences of section 623(a) of the Community
    Economic Development Act of 1981 (42 U.S.C. 9812(a)).
      ``(b) Limitations on Authorization of Appropriations.--For loans
    under subsection (a), there are authorized to be appropriated to the
    Secretary not more than $10,000,000 for each of fiscal years 2013
    through 2017.''.
      (b) Conforming Amendments.--Section 1323(b)(2) of the Food Security
    Act of 1985 (Public Law 99-198; 7 U.S.C. 1932 note) is amended--
              (1) in subparagraph (A), by adding ``and'' at the end;
              (2) in subparagraph (B), by striking ``; and'' and inserting
            a period; and
              (3) by striking subparagraph (C).

    SEC. 6012. ENHANCING PUBLIC/PRIVATE PARTNERSHIPS TO SUPPORT RURAL WATER
                        AND WASTE DISPOSAL INFRASTRUCTURE.

      Section 333 of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1983) is amended--
              (1) by striking ``require'';
              (2) in paragraph (1), by inserting ``require'' after ``(1)'';
              (3) in paragraph (2), by inserting ``, require'' after
            ``314'';
              (4) in paragraph (3), by inserting ``require'' after
            ``loans,'';
              (5) in paragraph (4)--
                      (A) by inserting ``require'' after ``(4)''; and
                      (B) by striking ``and'' after the semicolon;
              (6) in paragraph (5)--
                      (A) by inserting ``require'' after ``(5)''; and
                      (B) by striking the period at the end and inserting
                    ``; and''; and
              (7) by adding at the end the following:
              ``(6) with respect to water and waste disposal direct and
            guaranteed loans provided under section 306, encourage, to the
            maximum extent practicable, private or cooperative lenders to
            finance rural water and waste disposal facilities by--
                      ``(A) maximizing the use of loan guarantees to
                    finance eligible projects in rural communities where
                    the population exceeds 5,500;
                      ``(B) maximizing the use of direct loans to finance
                    eligible projects in rural communities where the impact
                    on rate payers will be material when compared to
                    financing with a loan guarantee;
                      ``(C) establishing and applying a materiality
                    standard when determining the difference in impact on
                    rate payers between a direct loan and a loan guarantee;
                      ``(D) in the case of projects that require interim
                    financing in excess of $500,000, requiring that such
                    projects initially seek such financing from private or
                    cooperative lenders; and
                      ``(E) determining if an existing direct loan borrower
                    can refinance with a private or cooperative lender,
                    including with a loan guarantee, prior to providing a
                    new direct loan.''.

    SEC. 6013. SIMPLIFIED APPLICATIONS.

      (a) In General.--Section 333A of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1983a) is amended by adding at the end the
    following:
      ``(h) Simplified Application Forms.--Except as provided in subsection
    (g)(2) of this section, the Secretary shall, to the maximum extent
    practicable, develop a simplified application process, including a
    single page application where possible, for grants and relending
    authorized under sections 306, 306C, 306D, 306E, 310B(b), 310B(c),
    310B(e), 310B(f), 310H, 379B, and 379E.''.
      (b) Report to the Congress.--Within 2 years after the date of the
    enactment of this Act, the Secretary shall submit to the Committee on
    Agriculture of the House of Representatives and the Committee on
    Agriculture, Nutrition, and Forestry of the Senate a written report
    that contains an evaluation of the implementation of the amendment made
    by subsection (a).

    SEC. 6014. REAUTHORIZATION OF STATE RURAL DEVELOPMENT COUNCILS.

      Section 378(h) of the Consolidated Farm and Rural Development Act (7
    U.S.C. 2008m(h)) is amended by striking ``2012'' and inserting
    ``2017''.

    SEC. 6015. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

      Section 379B(d) of the Consolidated Farm and Rural Development Act (7
    U.S.C. 2008p(d)) is amended to read as follows:
      ``(d) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $1,000,000 for each of fiscal
    years 2013 through 2017.''.

    SEC. 6016. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.

      Section 379E(d)(2) of the Consolidated Farm and Rural Development Act
    (7 U.S.C. 2008s(d)(2)) is amended by striking ``$40,000,000 for each of
    fiscal years 2009 through 2012'' and inserting ``$20,000,000 for each
    of fiscal years 2013 through 2017''.

    SEC. 6017. DELTA REGIONAL AUTHORITY.

      (a) Authorization of Appropriations.--Section 382M(a) of the
    Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-12(a)) is
    amended by striking ``$30,000,000 for each of fiscal years 2008 through
    2012'' and inserting ``$12,000,000 for each of fiscal years 2013
    through 2017''.
      (b) Termination of Authority.--Section 382N of such Act (7 U.S.C.
    2009aa-13) is amended by striking ``2012'' and inserting ``2017''.

    SEC. 6018. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

      (a) Authorization of Appropriations.--Section 383N(a) of the
    Consolidated Farm and Rural Development Act (7 U.S.C. 2009bb-12(a)) is
    amended by striking ``$30,000,000 for each of fiscal years 2008 through
    2012'' and inserting ``$2,000,000 for each of fiscal years 2013 through
    2017''.
      (b) Termination of Authority.--Section 383O of such Act (7 U.S.C.
    2009bb-13) is amended by striking ``2012'' and inserting ``2017''.

    SEC. 6019. RURAL BUSINESS INVESTMENT PROGRAM.

      Section 384S of the Consolidated Farm and Rural Development Act (7
    U.S.C. 2009cc-18) is amended by striking ``$50,000,000 for the period
    of fiscal years 2008 through 2012'' and inserting ``$20,000,000 for
    each of fiscal years 2013 through 2017''.

                 Subtitle B--Rural Electrification Act of 1936

    SEC. 6101. RELENDING FOR CERTAIN PURPOSES.

      (a) In General.--The Rural Electrification Act of 1936 (7 U.S.C. 901
    et seq.) is amended--
              (1) in section 2(a), by inserting ``(including relending for
            this purpose as provided in section 4)'' after ``efficiency'';
              (2) in section 4(a), by inserting ``(including relending to
            ultimate consumers for this purpose by borrowers enumerated in
            the proviso in this section)'' after ``efficiency''; and
              (3) in section 313(b)(2)(B)--
                      (A) by inserting ``(acting through the Rural
                    Utilities Service)'' after ``Secretary''; and
                      (B) by inserting ``energy efficiency (including
                    relending to ultimate consumers for this purpose),''
                    after ``promoting''.
      (b) Current Authority.--The authority provided in this section is in
    addition to any other relending authority of the Secretary under the
    Rural Electrification Act of 1936 (7 U.S.C. 901 et. seq.) or any other
    law.
      (c) Administration.--The Secretary (acting through the Rural
    Utilities Service) shall continue to carry out section 313 of the Rural
    Electrification Act of 1936 (7 U.S.C. 940c) in the same manner as on
    the day before enactment of this Act until such time as any regulations
    necessary to carry out the amendments made by this section are fully
    implemented.

    SEC. 6102. FEES FOR CERTAIN LOAN GUARANTEES.

      The Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) is
    amended by inserting after section 4 the following:

    ``SEC. 5. FEES FOR CERTAIN LOAN GUARANTEES.

      ``(a) In General.--For electrification baseload generation loan
    guarantees, the Secretary shall, at the request of the borrower, charge
    an upfront fee to cover the costs of the loan guarantee.
      ``(b) Fee.--The fee described in subsection (a) for a loan guarantee
    shall be equal to the costs of the loan guarantee (within the meaning
    of section 502(5)(C) of the Federal Credit Reform Act of 1990 (2 U.S.C.
    661a(5)(C))).
      ``(c) Limitation.--Funds received from a borrower to pay the fee
    described in this section shall not be derived from a loan or other
    debt obligation that is made or guaranteed by the Federal
    Government.''.

    SEC. 6103. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR
                        TELEPHONE PURPOSES.

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

    SEC. 6104. EXPANSION OF 911 ACCESS.

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

    SEC. 6105. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL
                        AREAS.

      Section 601 of the Rural Electrification Act of 1936 (7 U.S.C. 950bb)
    is amended--
              (1) in subsection (c), by striking paragraph (2) and
            inserting the following:
              ``(2) Priorities.--In making or guaranteeing loans under
            paragraph (1), the Secretary shall give--
                      ``(A) the highest priority to applicants that offer
                    to provide broadband service to the greatest proportion
                    of households that, prior to the provision of the
                    broadband service, had no incumbent service provider;
                    and
                      ``(B) priority to applicants that offer in their
                    applications to provide broadband service not
                    predominantly for business service, but where at least
                    25 percent of customers in the proposed service
                    territory are commercial interests.'';
              (2) in subsection (d)--
                      (A) in paragraph (5)--
                              (i) by striking ``and'' at the end of
                            subparagraph (B);
                              (ii) by striking the period at the end of
                            subparagraph (C) and inserting a semicolon; and
                              (iii) by adding at the end the following:
                      ``(D) the amount and type of support requested; and
                      ``(E) a list of the census block groups or tracts
                    proposed to be so served.''; and
                      (B) by adding at the end the following:
              ``(8) Additional process.--The Secretary shall establish a
            process under which an incumbent service provider which, as of
            the date of the publication of notice under paragraph (5) with
            respect to an application submitted by the provider, is
            providing broadband service to a remote rural area, may (but
            shall not be required to) submit to the Secretary, not less
            than 15 and not more than 30 days after that date, information
            regarding the broadband services that the provider offers in
            the proposed service territory, so that the Secretary may
            assess whether the application meets the requirements of this
            section with respect to eligible projects.'';
              (3) in subsection (e), by adding at the end the following:
              ``(3) Requirement.--In considering the technology needs of
            customers in a proposed service territory, the Secretary shall
            take into consideration the upgrade or replacement cost for the
            construction or acquisition of facilities and equipment in the
            territory.''; and
              (4) in each of subsections (k)(1) and (l), by striking
            ``2012'' and inserting ``2017''.

                           Subtitle C--Miscellaneous

    SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE.

      (a) Authorization of Appropriations.--Section 2335A of the Food,
    Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-5) is
    amended by striking ``$100,000,000 for each of fiscal years 2008
    through 2012'' and inserting ``$65,000,000 for each of fiscal years
    2013 through 2017''.
      (b) Conforming Amendment.--Section 1(b) of Public Law 102-551 (7
    U.S.C. 950aaa note) is amended by striking ``2012'' and inserting
    ``2017''.

    SEC. 6202. VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT PROGRAM GRANTS.

      Section 231(b)(7) of the Agricultural Risk Protection Act of 2000 (7
    U.S.C. 1632a(b)(7)) is amended--
              (1) in subparagraph (A)--
                      (A) by striking ``2008'' and inserting ``2012''; and
                      (B) by striking ``$15,000,000'' and inserting
                    ``$50,000,000''; and
              (2) in subparagraph (B), by striking ``2012'' and inserting
            ``2017''.

    SEC. 6203. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.

      Section 6402(i) of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 1632b(i)) is amended by striking ``$6,000,000 for each of
    fiscal years 2008 through 2012'' and inserting ``$1,000,000 for each of
    fiscal years 2013 through 2017''.

    SEC. 6204. PROGRAM METRICS.

      (a) In General.--The Secretary of Agriculture shall collect data
    regarding economic activities created through grants and loans,
    including any technical assistance provided as a component of the grant
    or loan program, and measure the short and long term viability of award
    recipients and any entities to whom those recipients provide assistance
    using award funds under section 231 of the Agricultural Risk Protection
    Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224), section 9007 of
    the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107),
    section 313(b)(2) of the Rural Electrification Act of 1936 (7 U.S.C.
    940c(b)(2)), or section 306(a)(11), 310B(c), 310B(e), 310B(g), 310H, or
    379E, or subtitle E, of the Consolidated Farm and Rural Development Act
    (7 U.S.C. 1926(a)(11), 1932(c), 1932(e), 1932(g), 2008s, or 2009
    through 2009m).
      (b) Data.--The data collected under subsection (a) shall include
    information collected from recipients both during the award period and
    after the period as determined by the Secretary, but not less than 2
    years after the award period ends.
      (c) Report.--Not later than 4 years after the date of enactment of
    this Act, and every 2 years thereafter, the Secretary shall submit to
    the Committee on Agriculture of the House of Representatives and the
    Committee on Agriculture, Nutrition, and Forestry of the Senate a
    report that contains the data described in subsection (a). The report
    shall include detailed information regarding--
              (1) actions taken by the Secretary to utilize the data;
              (2) the number of jobs, including self-employment and the
            value of salaries and wages;
              (3) how the provision of funds from the grant or loan
            involved affected the local economy;
              (4) any benefit, such as an increase in revenue or customer
            base; and
              (5) such other information as the Secretary deems
            appropriate.

    SEC. 6205. STUDY OF RURAL TRANSPORTATION ISSUES.

      (a) In General.--The Secretary of Agriculture and the Secretary of
    Transportation shall publish an updated version of the study described
    in section 6206 of the Food, Conservation, and Energy Act of 2008.
      (b) Report to Congress.--Not later than 1 year after the date of
    enactment of this Act, the Secretary of Agriculture and the Secretary
    of Transportation shall submit to the Congress the updated version of
    the study required by subsection (a).

    SEC. 6206. AGRICULTURAL TRANSPORTATION POLICY.

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

    SEC. 6207. CERTAIN FEDERAL ACTIONS NOT TO BE CONSIDERED MAJOR FOR
                        PURPOSES OF ENVIRONMENTAL REVIEW.

      In the case of a loan, loan guarantee, or grant program in the rural
    development mission area of the Department of Agriculture, an action of
    the Secretary before, on, or after the date of enactment of this Act
    that does not involve the provision by the Department of Agriculture of
    Federal dollars or a Federal loan guarantee, including--
              (1) the approval by the Department of Agriculture of the
            decision of a borrower to commence a privately funded activity;
              (2) a lien accommodation or subordination;
              (3) a debt settlement or restructuring; or
              (4) the restructuring of a business entity by a borrower,
    shall not be considered a major Federal action.

              TITLE VII--RESEARCH, EXTENSION, AND RELATED MATTERS

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

    SEC. 7101. OPTION TO NOT BE INCLUDED AS HISPANIC-SERVING AGRICULTURAL
                        COLLEGE OR UNIVERSITY.

      Section 1404(10)(A) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3103(10)(A)) is amended--
              (1) in the matter preceding clause (i), by striking ``that'';
              (2) in clause (i)--
                      (A) by inserting ``that'' before ``qualify''; and
                      (B) by striking ``and'' at the end;
              (3) in clause (ii)--
                      (A) by inserting ``that'' before ``offer''; and
                      (B) by striking the period at the end and inserting
                    ``; and''; and
              (4) by adding at the end the following new clause:
                              ``(iii) with respect to which the Secretary
                            has not received a statement of the declaration
                            of the intent of a college or university to not
                            be considered a Hispanic-serving agricultural
                            college or university.''.

    SEC. 7102. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND
                        ECONOMICS ADVISORY BOARD.

      (a) Extension of Termination Date.--Section 1408(h) of the National
    Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
    U.S.C. 3123(h)) is amended by striking ``2012'' and inserting ``2017''.
      (b) Duties of National Agricultural Research, Extension, Education,
    and Economics Advisory Board.--Section 1408(c) of the National
    Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
    U.S.C. 3123(c)) is amended--
              (1) in paragraph (3), by striking ``and'' at the end;
              (2) in paragraph (4)(C), by striking the period at the end
            and inserting ``; and''; and
              (3) by adding at the end the following new paragraph:
              ``(5) consult with industry groups on agricultural research,
            extension, education, and economics, and make recommendations
            to the Secretary based on that consultation.''.

    SEC. 7103. SPECIALTY CROP COMMITTEE.

      Section 1408A(c) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3123a(c)) is amended--
              (1) in paragraph (1), by striking ``Measures'' and inserting
            ``Programs'';
              (2) by striking paragraph (2);
              (3) by redesignating paragraphs (3), (4), and (5) as
            paragraphs (2), (3), and (4), respectively; and
              (4) in paragraph (2) (as so redesignated)--
                      (A) in the matter preceding subparagraph (A), by
                    striking ``Programs that would'' and inserting
                    ``Research, extension, and teaching programs designed
                    to improve competitiveness in the specialty crop
                    industry, including programs that would'';
                      (B) in subparagraph (D), by inserting ``including
                    improving the quality and taste of processed specialty
                    crops'' before the semicolon; and
                      (C) in subparagraph (G), by inserting ``the remote
                    sensing and the'' before ``mechanization''.

    SEC. 7104. VETERINARY SERVICES GRANT PROGRAM.

      The National Agricultural Research, Extension, and Teaching Policy
    Act of 1977 is amended by inserting after section 1415A (7 U.S.C.
    3151a) the following new section:

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

      ``(a) Definitions.--In this section:
              ``(1) Qualified entity.--The term `qualified entity' means--
                      ``(A) a for-profit or nonprofit entity located in the
                    United States that, or an individual who, operates a
                    veterinary clinic providing veterinary services--
                              ``(i) in a rural area, as defined in section
                            343(a) of the Consolidated Farm and Rural
                            Development Act (7 U.S.C. 1991(a)); and
                              ``(ii) in a veterinarian shortage situation;
                      ``(B) a State, national, allied, or regional
                    veterinary organization or specialty board recognized
                    by the American Veterinary Medical Association;
                      ``(C) a college or school of veterinary medicine
                    accredited by the American Veterinary Medical
                    Association;
                      ``(D) a university research foundation or veterinary
                    medical foundation;
                      ``(E) a department of veterinary science or
                    department of comparative medicine accredited by the
                    Department of Education;
                      ``(F) a State agricultural experiment station; or
                      ``(G) a State, local, or tribal government agency.
              ``(2) Veterinarian shortage situation.--The term
            `veterinarian shortage situation' means a veterinarian shortage
            situation as determined by the Secretary under section 1415A.
      ``(b) Establishment.--
              ``(1) Competitive grants.--The Secretary shall carry out a
            program to make competitive grants to qualified entities that
            carry out programs or activities described in paragraph (2) for
            the purpose of developing, implementing, and sustaining
            veterinary services.
              ``(2) Eligibility requirements.--A qualified entity shall be
            eligible to receive a grant described in paragraph (1) if the
            entity carries out programs or activities that the Secretary
            determines will--
                      ``(A) substantially relieve veterinarian shortage
                    situations;
                      ``(B) support or facilitate private veterinary
                    practices engaged in public health activities; or
                      ``(C) support or facilitate the practices of
                    veterinarians who are providing or have completed
                    providing services under an agreement entered into with
                    the Secretary under section 1415A(a)(2).
      ``(c) Award Processes and Preferences.--
              ``(1) Application, evaluation, and input processes.--In
            administering the grant program established under this section,
            the Secretary shall--
                      ``(A) use an appropriate application and evaluation
                    process, as determined by the Secretary; and
                      ``(B) seek the input of interested persons.
              ``(2) Coordination preference.--In selecting recipients of
            grants to be used for any of the purposes described in
            subsection (d)(1), the Secretary shall give a preference to
            qualified entities that provide documentation of coordination
            with other qualified entities, with respect to any such
            purpose.
              ``(3) Consideration of available funds.--In selecting
            recipients of grants to be used for any of the purposes
            described in subsection (d), the Secretary shall take into
            consideration the amount of funds available for grants and the
            purposes for which the grant funds will be used.
              ``(4) Nature of grants.--A grant awarded under this section
            shall be considered to be a competitive research, extension, or
            education grant.
      ``(d) Use of Grants to Relieve Veterinarian Shortage Situations and
    Support Veterinary Services.--
              ``(1) In general.--Except as provided in paragraph (2), a
            qualified entity may use funds provided by a grant awarded
            under this section to relieve veterinarian shortage situations
            and support veterinary services for any of the following
            purposes:
                      ``(A) To promote recruitment (including for programs
                    in secondary schools), placement, and retention of
                    veterinarians, veterinary technicians, students of
                    veterinary medicine, and students of veterinary
                    technology.
                      ``(B) To allow veterinary students, veterinary
                    interns, externs, fellows, and residents, and
                    veterinary technician students to cover expenses (other
                    than the types of expenses described in section
                    1415A(c)(5)) to attend training programs in food safety
                    or food animal medicine.
                      ``(C) To establish or expand accredited veterinary
                    education programs (including faculty recruitment and
                    retention), veterinary residency and fellowship
                    programs, or veterinary internship and externship
                    programs carried out in coordination with accredited
                    colleges of veterinary medicine.
                      ``(D) To provide continuing education and extension,
                    including veterinary telemedicine and other distance-
                    based education, for veterinarians, veterinary
                    technicians, and other health professionals needed to
                    strengthen veterinary programs and enhance food safety.
                      ``(E) To provide technical assistance for the
                    preparation of applications submitted to the Secretary
                    for designation as a veterinarian shortage situation
                    under this section or section 1415A.
              ``(2) Qualified entities operating veterinary clinics.--A
            qualified entity described in subsection (a)(1)(A) may only use
            funds provided by a grant awarded under this section to
            establish or expand veterinary practices, including--
                      ``(A) equipping veterinary offices;
                      ``(B) sharing in the reasonable overhead costs of
                    such veterinary practices, as determined by the
                    Secretary; or
                      ``(C) establishing mobile veterinary facilities in
                    which a portion of the facilities will address
                    education or extension needs.
      ``(e) Special Requirements for Certain Grants.--
              ``(1) Terms of service requirements.--
                      ``(A) In general.--Funds provided through a grant
                    made under this section to a qualified entity described
                    in subsection (a)(1)(A) and used by such entity under
                    subsection (d)(2) shall be subject to an agreement
                    between the Secretary and such entity that includes a
                    required term of service for such entity (including a
                    qualified entity operating as an individual), as
                    prospectively established by the Secretary.
                      ``(B) Considerations.--In establishing a term of
                    service under subparagraph (A), the Secretary shall
                    consider only--
                              ``(i) the amount of the grant awarded; and
                              ``(ii) the specific purpose of the grant.
              ``(2) Breach remedies.--
                      ``(A) In general.--An agreement under paragraph (1)
                    shall provide remedies for any breach of the agreement
                    by the qualified entity referred to in paragraph
                    (1)(A), including repayment or partial repayment of the
                    grant funds, with interest.
                      ``(B) Waiver.--The Secretary may grant a waiver of
                    the repayment obligation for breach of contract if the
                    Secretary determines that such qualified entity
                    demonstrates extreme hardship or extreme need.
                      ``(C) Treatment of amounts recovered.--Funds
                    recovered under this paragraph shall--
                              ``(i) be credited to the account available to
                            carry out this section; and
                              ``(ii) remain available until expended
                            without further appropriation.
      ``(f) Prohibition on Use of Grant Funds for Construction.--Except as
    provided in subsection (d)(2), funds made available for grants under
    this section may not be used--
              ``(1) to construct a new building or facility; or
              ``(2) to acquire, expand, remodel, or alter an existing
            building or facility, including site grading and improvement
            and architect fees.
      ``(g) Regulations.--Not later than 1 year after the date of the
    enactment of this section, the Secretary shall promulgate regulations
    to carry out this section.
      ``(h) Authorization of Appropriations.--There are authorized to be
    appropriated to the Secretary to carry out this section $10,000,000 for
    fiscal year 2013 and each fiscal year thereafter, to remain available
    until expended.''.

    SEC. 7105. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURE SCIENCES
                        EDUCATION.

      Section 1417(m) of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3152(m)) is amended by striking
    ``section $60,000,000'' and all that follows and inserting the
    following: ``section--
              ``(1) $60,000,000 for each of fiscal years 1990 through 2012;
            and
              ``(2) $40,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 7106. POLICY RESEARCH CENTERS.

      Section 1419A of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended--
              (1) in the section heading, by inserting ``agricultural and
            food'' before ``policy'';
              (2) in subsection (a), in the matter preceding paragraph
            (1)--
                      (A) by striking ``Secretary may'' and inserting
                    ``Secretary shall, acting through the Office of the
                    Chief Economist,'';
                      (B) by striking ``make grants, competitive grants,
                    and special research grants to, and enter into
                    cooperative agreements and other contracting
                    instruments with,'' and inserting ``make competitive
                    grants to or enter into cooperative agreements with'';
                    and
                      (C) by inserting ``with a history of providing
                    unbiased, nonpartisan economic analysis to Congress''
                    after ``subsection (b)'';
              (3) in subsection (b), by striking ``other research
            institutions'' and all that follows through ``shall be
            eligible'' and inserting ``and other public research
            institutions and organizations shall be eligible'';
              (4) by redesignating subsections (c) and (d) as subsections
            (d) and (e), respectively;
              (5) by inserting after subsection (b), the following new
            subsection:
      ``(c) Preference.--In awarding grants under this section, the
    Secretary shall give a preference to policy research centers that have
    extensive databases, models, and demonstrated experience in providing
    Congress with agricultural market projections, rural development
    analysis, agricultural policy analysis, and baseline projections at the
    farm, multiregional, national, and international levels.''; and
              (6) by striking subsection (e) (as redesignated by paragraph
            (4)) and inserting the following new subsection:
      ``(e) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section--
              ``(1) such sums as are necessary for each of fiscal years
            1996 through 2012; and
              ``(2) $5,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 7107. REPEAL OF HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION
                        RESEARCH PROGRAM.

      Section 1424 of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3174) is repealed.

    SEC. 7108. REPEAL OF PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND
                        AGRICULTURAL RESEARCH.

      Section 1424A of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3174a) is repealed.

    SEC. 7109. NUTRITION EDUCATION PROGRAM.

      Section 1425(f) of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3175(f)) is amended by striking
    ``2012'' and inserting ``2017''.

    SEC. 7110. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.

      Section 1433 of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3195) is amended by striking the
    section designation and heading and all that follows through subsection
    (a) and inserting the following:

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

      ``(a) Authorization of Appropriations.--
              ``(1) In general.--There are authorized to be appropriated to
            support continuing animal health and disease research programs
            at eligible institutions--
                      ``(A) $25,000,000 for each of fiscal years 1991
                    through 2012; and
                      ``(B) $15,000,000 for each of fiscal years 2013
                    through 2017.
              ``(2) Use of funds.--Funds made available under this section
            shall be used--
                      ``(A) to meet the expenses of conducting animal
                    health and disease research, publishing and
                    disseminating the results of such research, and
                    contributing to the retirement of employees subject to
                    the Act of March 4, 1940 (7 U.S.C. 331);
                      ``(B) for administrative planning and direction; and
                      ``(C) to purchase equipment and supplies necessary
                    for conducting the research described in subparagraph
                    (A).''.

    SEC. 7111. REPEAL OF APPROPRIATIONS FOR RESEARCH ON NATIONAL OR
                        REGIONAL PROBLEMS.

      (a) Repeal.--Section 1434 of the National Agricultural Research,
    Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196) is repealed.
      (b) Conforming Amendments.--
              (1) Matching funds.--Section 1438 of the National
            Agricultural Research, Extension, and Teaching Policy Act of
            1977 (7 U.S.C. 3200) is amended in the first sentence by
            striking ``, exclusive of the funds provided for research on
            specific national or regional animal health and disease
            problems under the provisions of section 1434 of this title,''.
              (2) Authorization of appropriations for existing and certain
            new agricultural research programs.--Section 1463(c) of the
            National Agricultural Research, Extension, and Teaching Policy
            Act of 1977 (7 U.S.C. 3311(c)) is amended by striking
            ``sections 1433 and 1434'' and inserting ``section 1433''.

    SEC. 7112. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES
                        AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE
                        UNIVERSITY.

      Section 1447(b) of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by striking
    ``2012'' and inserting ``2017''.

    SEC. 7113. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCE FACILITIES
                        AND EQUIPMENT AT INSULAR AREA LAND-GRANT
                        INSTITUTIONS.

      (a) Supporting Tropical and Subtropical Agricultural Research.--
              (1) In general.--Section 1447B(a) of the National
            Agricultural Research, Extension, and Teaching Policy Act of
            1977 (7 U.S.C. 3222b-2(a)) is amended to read as follows:
      ``(a) Purpose.--It is the intent of Congress to assist the land-grant
    colleges and universities in the insular areas in efforts to--
              ``(1) acquire, alter, or repair facilities or relevant
            equipment necessary for conducting agricultural research; and
              ``(2) support tropical and subtropical agricultural research,
            including pest and disease research.''.
              (2) Conforming amendment.--Section 1447B of the National
            Agricultural Research, Extension, and Teaching Policy Act of
            1977 (7 U.S.C. 3222b-2) is amended in the heading--
                      (A) by inserting ``and support tropical and
                    subtropical agricultural research'' after
                    ``equipment''; and
                      (B) by striking ``institutions'' and inserting
                    ``colleges and universities''.
      (b) Extension.--Section 1447B(d) of the National Agricultural
    Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b-
    2(d)) is amended by striking ``2012'' and inserting ``2017''.

    SEC. 7114. REPEAL OF NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.

      Section 1448 of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3222c) is repealed.

    SEC. 7115. HISPANIC-SERVING INSTITUTIONS.

      Section 1455(c) of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) is amended by striking
    ``2012'' and inserting ``2017''.

    SEC. 7116. 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 to read
    as follows:
      ``(c) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section--
              ``(1) such sums as are necessary for each of fiscal years
            1999 through 2012; and
              ``(2) $5,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 7117. REPEAL OF RESEARCH EQUIPMENT GRANTS.

      Section 1462A of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3310a) is repealed.

    SEC. 7118. UNIVERSITY RESEARCH.

      Section 1463 of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended in both of
    subsections (a) and (b) by striking ``2012'' and inserting ``2017''.

    SEC. 7119. EXTENSION SERVICE.

      Section 1464 of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking
    ``2012'' and inserting ``2017''.

    SEC. 7120. AUDITING, REPORTING, BOOKKEEPING, AND ADMINISTRATIVE
                        REQUIREMENTS.

      Section 1469 of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3315) is amended--
              (1) in subsection (a)--
                      (A) in paragraph (2), by adding ``and'' at the end;
                      (B) by striking paragraph (3); and
                      (C) by redesignating paragraph (4) as paragraph (3);
              (2) by redesignating subsections (b), (c), and (d) as
            subsections (c), (d), and (e), respectively; and
              (3) by inserting after subsection (a) the following new
            subsection:
      ``(b) Administrative Expenses.--
              ``(1) In general.--Except as provided in paragraph (2) and
            notwithstanding any other provision of law, the Secretary may
            retain not more than 4 percent of amounts made available for
            agricultural research, extension, and teaching assistance
            programs for the administration of those programs authorized
            under this Act or any other Act.
              ``(2) Exceptions.--The limitation on administrative expenses
            under paragraph (1) shall not apply to peer panel expenses
            under subsection (d) or any other provision of law related to
            the administration of agricultural research, extension, and
            teaching assistance programs that contains a limitation on
            administrative expenses that is less than the limitation under
            paragraph (1).''.

    SEC. 7121. SUPPLEMENTAL AND ALTERNATIVE CROPS.

      (a) Authorization of Appropriations and Termination.--Section 1473D
    of the National Agricultural Research, Extension, and Teaching Policy
    Act of 1977 (7 U.S.C. 3319d) is amended--
              (1) in subsection (a), by striking ``2012'' and inserting
            ``2017''; and
              (2) by adding at the end the following new subsection:
      ``(e) There are authorized to be appropriated to carry out this
    section--
              ``(1) such sums as are necessary for fiscal year 2012; and
              ``(2) $1,000,000 for each of fiscal years 2013 through
            2017.''.
      (b) Competitive Grants.--Section 1473D(c)(1) of the National
    Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
    U.S.C. 3319d(c)(1)) is amended by striking ``use such research funding,
    special or competitive grants, or other means, as the Secretary
    determines,'' and inserting ``make competitive grants''.

    SEC. 7122. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.

      Section 1473F(b) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3319i(b)) is amended by
    striking ``2012'' and inserting ``2017''.

    SEC. 7123. AQUACULTURE ASSISTANCE PROGRAMS.

      (a) Competitive Grants.--Section 1475(b) of the National Agricultural
    Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3322(b))
    is amended in the matter preceding paragraph (1), by inserting
    ``competitive'' before ``grants''.
      (b) Authorization of Appropriations.--Section 1477 of the National
    Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
    U.S.C. 3324) is amended to read as follows:

    ``SEC. 1477. AUTHORIZATION OF APPROPRIATIONS.

      ``(a) In General.--There are authorized to be appropriated to carry
    out this subtitle--
              ``(1) $7,500,000 for each of fiscal years 1991 through 2012;
            and
              ``(2) $5,000,000 for each of fiscal years 2013 through 2017.
      ``(b) Prohibition on Use.--Funds made available under this section
    may not be used to acquire or construct a building.''.

    SEC. 7124. RANGELAND RESEARCH PROGRAMS.

      Section 1483(a) of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by striking
    ``subtitle'' and all that follows and inserting the following:
    ``subtitle--
              ``(1) $10,000,000 for each of fiscal years 1991 through 2012;
            and
              ``(2) $2,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 7125. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND RESPONSE.

      Section 1484(a) of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3351(a)) is amended by striking
    ``response such sums as are necessary'' and all that follows and
    inserting the following: ``response--
              ``(1) such sums as are necessary for each of fiscal years
            2002 through 2012; and
              ``(2) $10,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 7126. DISTANCE EDUCATION AND RESIDENT INSTRUCTION GRANTS PROGRAM
                        FOR INSULAR AREA INSTITUTIONS OF HIGHER EDUCATION.

      (a) Distance Education Grants for Insular Areas.--
              (1) Competitive grants.--Section 1490(a) of the National
            Agricultural Research, Extension, and Teaching Policy Act of
            1977 (7 U.S.C. 3362(a)) is amended by striking ``or
            noncompetitive''.
              (2) Authorization of appropriations.--Section 1490(f) of the
            National Agricultural Research, Extension, and Teaching Policy
            Act of 1977 (7 U.S.C. 3362(f)) is amended by striking
            ``section'' and all that follows and inserting the following:
            ``section--
              ``(1) such sums as are necessary for each of fiscal years
            2002 through 2012; and
              ``(2) $2,000,000 for each of fiscal years 2013 through
            2017.''.
      (b) Resident Instruction Grants for Insular Areas.--Section 1491(c)
    of the National Agricultural Research, Extension, and Teaching Policy
    Act of 1977 (7 U.S.C. 3363(c)) is amended by striking ``such sums as
    are necessary'' and all that follows and inserting the following: ``to
    carry out this section--
              ``(1) such sums as are necessary for each of fiscal years
            2002 through 2012; and
              ``(2) $2,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 7127. MATCHING FUNDS REQUIREMENT.

      (a) In General.--The National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended by
    adding at the end the following new subtitle:

                        ``Subtitle P--General Provisions

    ``SEC. 1492. MATCHING FUNDS REQUIREMENT.

      ``(a) Matching Funds Requirement.--The recipient of a competitive
    grant that is awarded by the Secretary under a covered law and that
    involves applied research or extension that is commodity-specific or
    State-specific shall provide funds, in-kind contributions, or a
    combination of both, from sources other than funds provided through
    such grant in an amount at least equal to the amount of such grant.
      ``(b) Waiver Authority.--The Secretary may waive the matching funds
    requirement under subsection (a) with respect to a competitive grant
    that involves applied research or extension that the National
    Agricultural Research, Extension, Education, and Economics Advisory
    Board has determined is a national priority under section 1408(c).
      ``(c) Definitions.--In this section:
              ``(1) Applied research.--The term `applied research' has the
            meaning given such term in section 251(f)(1)(B) of the
            Department of Agriculture Reorganization Act of 1994 (7 U.S.C.
            6971(f)(1)(B)).
              ``(2) Covered law.--The term `covered law' means each of the
            following provisions of law:
                      ``(A) This title.
                      ``(B) Title XVI of the Food, Agriculture,
                    Conservation, and Trade Act of 1990 (7 U.S.C. 5801 et
                    seq.).
                      ``(C) The Agricultural Research, Extension, and
                    Education Reform Act of 1998 (7 U.S.C. 7601 et seq.).
                      ``(D) Section 7405 of the Farm Security and Rural
                    Investment Act of 2002 (7 U.S.C. 3319f).
                      ``(E) Part III of subtitle E of title VII of the
                    Food, Conservation, and Energy Act of 2008 (7 U.S.C.
                    3202 et seq.).
                      ``(F) The Competitive, Special, and Facilities
                    Research Grant Act (7 U.S.C. 450i).''.
      (b) Conforming Amendment.--Paragraph (9) of section 2(b) of the
    Competitive, Special, and Facilities Research Grant Act (7 U.S.C.
    450i(b)) is amended--
              (1) by striking subparagraph (B);
              (2) in the heading, by inserting ``for equipment grants''
            after ``funds'';
              (3) by striking ``(A) Equipment grants.--''; and
              (4) by redesignating clauses (i) and (ii) as subparagraphs
            (A) and (B), respectively, and moving the margins of such
            subparagraphs two ems to the left.
      (c) Application to Amendments.--
              (1) New grants.--Section 1492 of the National Agricultural,
            Research, Extension, and Teaching Policy Act of 1977, as added
            by subsection (a), shall apply with respect to grants described
            in such section awarded after October 1, 2012, unless the
            provision of a covered law under which such grants are awarded
            specifically exempts such grants from the matching funds
            requirement under such section.
              (2) Existing grants.--A matching funds requirement in effect
            on or before October 1, 2012, under a covered law shall
            continue to apply to a grant awarded under such provision of
            law on or before that date.

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

    SEC. 7201. BEST UTILIZATION OF BIOLOGICAL APPLICATIONS.

      Section 1624 of the Food, Agriculture, Conservation, and Trade Act of
    1990 (7 U.S.C. 5814) is amended in the first sentence--
              (1) by striking ``$40,000,000 for each fiscal year''; and
              (2) by inserting ``$40,000,000 for each of fiscal years 2012
            through 2017'' after ``chapter''.

    SEC. 7202. INTEGRATED MANAGEMENT SYSTEMS.

      Section 1627(d) of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 5821(d)) is amended to read as follows:
      ``(d) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section through the National Institute
    of Food and Agriculture $20,000,000 for each of fiscal years 2012
    through 2017.''.

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

      Section 1628(f) of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 5831(f)) is amended to read as follows:
      ``(f) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section--
              ``(1) such sums as are necessary for fiscal year 2012; and
              ``(2) $5,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 7204. NATIONAL TRAINING PROGRAM.

      Section 1629(i) of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 5832(i)) is amended to read as follows:
      ``(i) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out the National Training Program $20,000,000 for
    each of fiscal years 2012 through 2017.''.

    SEC. 7205. NATIONAL GENETICS RESOURCES PROGRAM.

      Section 1635(b) of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 5844(b)) is amended--
              (1) by striking ``such funds as may be necessary''; and
              (2) by striking ``subtitle'' and all that follows and
            inserting the following: ``subtitle--
              ``(1) such sums as are necessary for each of fiscal years
            1991 through 2012; and
              ``(2) $1,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 7206. REPEAL OF NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.

      Subtitle D of title XVI of the Food, Agriculture, Conservation, and
    Trade Act of 1990 (7 U.S.C. 5851 et seq.) is repealed.

    SEC. 7207. REPEAL OF RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.

      Section 1670 of the Food, Agriculture, Conservation, and Trade Act of
    1990 (7 U.S.C. 5923) is repealed.

    SEC. 7208. REPEAL OF AGRICULTURAL GENOME INITIATIVE.

      Section 1671 of the Food, Agriculture, Conservation, and Trade Act of
    1990 (7 U.S.C. 5924) is repealed.

    SEC. 7209. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

      Section 1672 of the Food, Agriculture, Conservation, and Trade Act of
    1990 (7 U.S.C. 5925) is amended--
              (1) in the first sentence of subsection (a), by striking
            ``subsections (e) through (i)'' and inserting ``subsections (e)
            through (g)'';
              (2) in subsection (b)(2), in the first sentence, by striking
            ``subsections (e) through (i)'' and inserting ``subsections (e)
            through (g)'';
              (3) in subsection (c)(2)--
                      (A) in subparagraph (A), by striking ``or'' at the
                    end;
                      (B) in subparagraph (B), by striking the period at
                    the end and inserting ``; or''; and
                      (C) by adding at the end the following new
                    subparagraph:
                      ``(C) the project involves a pest that has been
                    designated as a pest of public health significance by
                    the Environmental Protection Agency and the Centers for
                    Disease Control and Prevention, as described in section
                    2(nn) of the Federal Insecticide, Fungicide, and
                    Rodenticide Act (7 U.S.C. 136(nn)).'';
              (4) by striking subsections (e), (f), and (i);
              (5) by redesignating subsections (g), (h), and (j) as
            subsections (e), (f), and (h), respectively;
              (6) in subsection (e) (as redesignated by paragraph (5))--
                      (A) in the heading, by inserting ``, Bed Bugs, and
                    Other Pests'' after ``Termite''; and
                      (B) by inserting ``, bed bugs, and other pests,
                    including pests that the Secretary determines are a
                    risk to public health'' after ``termites'' each place
                    it appears in paragraphs (1), (2)(A), and (3);
              (7) in subsection (f) (as redesignated by paragraph (5))--
                      (A) by striking ``2012'' each place it appears in
                    paragraphs (1)(B), (2)(B), and (3) and inserting
                    ``2017''; and
                      (B) in paragraph (4)--
                              (i) in subparagraph (A), by inserting ``and
                            honey bee health disorders'' after
                            ``collapse''; and
                              (ii) in subparagraph (B), by inserting ``,
                            including best management practices'' after
                            ``strategies'';
              (8) by inserting after subsection (f) (as redesignated by
            paragraph (5)), the following new subsection:
      ``(g) Bed Bug Control.--
              ``(1) Authorization and use of grants.--The Secretary, in
            consultation with a task force appointed under subsection
            (b)(2), shall award grants under this subsection for purposes
            of--
                      ``(A) developing more efficacious methods of
                    detecting, preventing, and managing bed bugs; and
                      ``(B) conducting basic and applied bed bug biology
                    research.
              ``(2) Grants.--
                      ``(A) Requests for proposals.--The Secretary shall,
                    not later than 180 days after the date of the enactment
                    of this subsection and in consultation with the task
                    force, publish a request for openly competitive grant
                    proposals for research projects for the purposes
                    described in paragraph (1).
                      ``(B) Award of grants.--Not later than 180 days after
                    the date of such publication, the Secretary shall--
                              ``(i) evaluate the grant proposals referred
                            to in subparagraph (A) in consultation with the
                            task force; and
                              ``(ii) award grants to entities that
                            submitted grant proposals for research projects
                            the Secretary determines are meritorious for
                            the purposes described in paragraph (1).
                      ``(C) Notification requirement.--The Secretary shall
                    notify the task force of any award made under
                    subparagraph (B) not later than 30 days after awarding
                    such grant.
              ``(3) Consultation and coordination.--To expedite the
            approval or registration under section 3, section 18, or
            section 24 of the Federal Insecticide, Fungicide and
            Rodenticide Act (7 U.S.C. 136a, 136p, and 136v) of the methods
            identified or discovered through research projects funded under
            this subsection, the Secretary shall consult and coordinate
            with the Administrator of the Environmental Protection Agency
            regarding--
                      ``(A) the awarding of grants under this subsection;
                    and
                      ``(B) the evaluation of the results of such research
                    projects.''; and
              (9) in subsection (h) (as redesignated by paragraph (5)), by
            striking ``2012'' and inserting ``2017''.

    SEC. 7210. REPEAL OF NUTRIENT MANAGEMENT RESEARCH AND EXTENSION
                        INITIATIVE.

      Section 1672A of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 5925a) is repealed.

    SEC. 7211. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.

      Section 1672B of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 5925b) is amended--
              (1) by striking subsection (e) and inserting the following
            new subsection:
      ``(e) Farm Business Management Encouraged.--Following the completion
    of a peer review process for grant proposals received under this
    section, the Secretary shall provide a priority to grant proposals
    found in the review process to be scientifically meritorious using the
    same criteria the Secretary uses to give priority to grants under
    section 1672D(b).''; and
              (2) in subsection (f)--
                      (A) in paragraph (1)--
                              (i) in subparagraph (A), by striking ``and''
                            at the end;
                              (ii) in subparagraph (B), by striking the
                            period at the end and inserting ``; and''; and
                              (iii) by adding at the end the following new
                            subparagraph:
                      ``(C) $16,000,000 for each of fiscal years 2013
                    through 2017.''; and
                      (B) in paragraph (2), by striking ``2012'' and
                    inserting ``2017''.

    SEC. 7212. REPEAL OF AGRICULTURAL BIOENERGY FEEDSTOCK AND ENERGY
                        EFFICIENCY RESEARCH AND EXTENSION INITIATIVE.

      (a) Repeal.--Section 1672C of the Food, Agriculture, Conservation,
    and Trade Act of 1990 (7 U.S.C. 5925e) is repealed.
      (b) Conforming Amendment.--Section 251(f)(1)(D) of the Department of
    Agriculture Reorganization Act of 1994 (7 U.S.C. 6971(f)(1)(D)) is
    amended--
              (1) by striking clause (xi); and
              (2) by redesignating clauses (xii) and (xiii) as clauses (xi)
            and (xii), respectively.

    SEC. 7213. FARM BUSINESS MANAGEMENT.

      Section 16f72D(d) of the Food, Agriculture, Conservation, and Trade
    Act of 1990 (7 U.S.C. 5925f(d)) is amended by striking ``such sums as
    are necessary to carry out this section.'' and inserting the following:
    ``to carry out this section--
              ``(1) such sums as are necessary for fiscal year 2012; and
              ``(2) $5,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 7214. REGIONAL CENTERS OF EXCELLENCE.

      The Food, Agriculture, Conservation, and Trade Act of 1990 is amended
    by inserting after section 1672D (7 U.S.C. 5925f) the following new
    section:

    ``SEC. 1673. REGIONAL CENTERS OF EXCELLENCE.

      ``(a) Funding Priorities.--The Secretary shall prioritize regional
    centers of excellence established for specific agricultural commodities
    for the receipt of funding for any competitive research or extension
    program administered by the Secretary.
      ``(b) Composition.--A regional center of excellence is composed of 1
    or more of the eligible entities specified in section 2(b)(7) of the
    Competitive, Special, and Facilities Research Grant Act (7 U.S.C.
    450i(b)(7)).
      ``(c) Criteria for Regional Centers of Excellence.--The criteria for
    consideration to be recognized as a regional center of excellence shall
    include efforts--
              ``(1) to ensure coordination and cost effectiveness by
            reducing unnecessarily duplicative efforts regarding research,
            teaching, and extension;
              ``(2) to leverage available resources by using public/private
            partnerships among agricultural industry groups, institutions
            of higher education, and the Federal Government;
              ``(3) to implement teaching initiatives to increase awareness
            and effectively disseminate solutions to target audiences
            through extension activities;
              ``(4) to increase the economic returns to rural communities
            by identifying, attracting, and directing funds to high-
            priority agricultural issues; and
              ``(5) to improve teaching capacity and infrastructure at
            colleges and universities (including land-grant institutions,
            schools of forestry, schools of veterinary medicine, and NLGCA
            Institutions).''.

    SEC. 7215. REPEAL OF RED MEAT SAFETY RESEARCH CENTER.

      Section 1676 of the Food, Agriculture, Conservation, and Trade Act of
    1990 (7 U.S.C. 5929) is repealed.

    SEC. 7216. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

      Section 1680(c)(1) of the Food, Agriculture, Conservation, and Trade
    Act of 1990 (7 U.S.C. 5933(c)(1)) is amended--
              (1) by striking ``is'' and inserting ``are''; and
              (2) by striking ``section'' and all that follows and
            inserting the following: ``section--
                      ``(A) $6,000,000 for each of fiscal years 1999
                    through 2012; and
                      ``(B) $3,000,000 for each of fiscal years 2013
                    through 2017.''.

    SEC. 7217. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

      Section 2381(e) of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 3125b(e)) is amended by striking ``2012'' and
    inserting ``2017''.

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

    SEC. 7301. RELEVANCE AND MERIT OF AGRICULTURAL RESEARCH, EXTENSION, AND
                        EDUCATION FUNDED BY THE DEPARTMENT.

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

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

      Section 406(f) of the Agricultural Research, Extension, and Education
    Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by striking ``2012''
    and inserting ``2017''.

    SEC. 7303. REPEAL OF COORDINATED PROGRAM OF RESEARCH, EXTENSION, AND
                        EDUCATION TO IMPROVE VIABILITY OF SMALL AND MEDIUM
                        SIZE DAIRY, LIVESTOCK, AND POULTRY OPERATIONS.

      (a) Repeal.--Section 407 of the Agricultural Research, Extension, and
    Education Reform Act of 1998 (7 U.S.C. 7627) is repealed.
      (b) Conforming Amendment.--Section 251(f)(1)(D) of the Department of
    Agriculture Reorganization Act of 1994 (7 U.S.C. 6971(f)(1)(D)), as
    amended by section 7212(b), is further amended--
              (1) by striking clause (xi) (as redesignated by section
            7212(b)); and
              (2) by redesignating clause (xii) (as redesignated by section
            7212(b)) as clause (xi).

    SEC. 7304. REPEAL OF BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

      Section 409 of the Agricultural Research, Extension, and Education
    Reform Act of 1998 (7 U.S.C. 7629) is repealed.

    SEC. 7305. GRANTS FOR YOUTH ORGANIZATIONS.

      Section 410(d) of the Agricultural Research, Extension, and Education
    Reform Act of 1998 (7 U.S.C. 7630(d)) is amended by striking ``section
    such sums as are necessary'' and all that follows and inserting the
    following: ``section--
              ``(1) such sums as are necessary for each of fiscal years
            2008 through 2012; and
              ``(2) $3,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 7306. SPECIALTY CROP RESEARCH INITIATIVE.

      Section 412 of the Agricultural Research, Extension, and Education
    Reform Act of 1998 (7 U.S.C. 7632) is amended--
              (1) in subsection (b)--
                      (A) in paragraph (1), by striking ``and genomics''
                    and inserting ``genomics, and other methods''; and
                      (B) in paragraph (3), by inserting ``handling and
                    processing,'' after ``production efficiency,'';
              (2) by striking subsection (d) and inserting the following
            new subsection:
      ``(d) Research Projects.--In carrying out this section, the Secretary
    shall award competitive grants on the basis of--
              ``(1) an initial scientific peer review conducted by a panel
            of subject matter experts from Federal agencies, non-Federal
            entities, and the specialty crop industry; and
              ``(2) a final funding determination made by the Secretary
            based on a review and ranking for merit, relevance, and impact
            conducted by a panel of specialty crop industry representatives
            for the specific specialty crop.''; and
              (3) in subsection (h)--
                      (A) in paragraph (1)--
                              (i) by striking ``(1) In general.--Of the
                            funds'' and inserting the following:
              ``(1) Mandatory funding.--
                      ``(A) In general.--Of the funds''; and
                              (ii) by adding at the end the following new
                            subparagraph:
                      ``(B) Subsequent funding.--Of the funds of the
                    Commodity Credit Corporation, the Secretary shall make
                    available to carry out this section--
                              ``(i) $25,000,000 for fiscal year 2013;
                              ``(ii) $30,000,000 for each of fiscal years
                            2014 and 2015;
                              ``(iii) $65,000,000 for fiscal year 2016; and
                              ``(iv) $50,000,000 for fiscal year 2017 and
                            each fiscal year thereafter.''; and
                      (B) in paragraph (2), by striking ``2012'' and
                    inserting ``2017''.

    SEC. 7307. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.

      Section 604(e) of the Agricultural Research, Extension, and Education
    Reform Act of 1998 (7 U.S.C. 7642(e)) is amended by striking ``2012''
    and inserting ``2017''.

    SEC. 7308. REPEAL OF NATIONAL SWINE RESEARCH CENTER.

      Section 612 of the Agricultural Research, Extension, and Education
    Reform Act of 1998 (Public Law 105-185; 112 Stat. 605) is repealed.

    SEC. 7309. OFFICE OF PEST MANAGEMENT POLICY.

      Section 614(f) of the Agricultural Research, Extension, and Education
    Reform Act of 1998 (7 U.S.C. 7653(f)) is amended--
              (1) by striking ``such sums as are necessary''; and
              (2) by striking ``section'' and all that follows and
            inserting the following: ``section--
              ``(1) such sums as are necessary for each of fiscal years
            1999 through 2012; and
              ``(2) $3,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 7310. REPEAL OF STUDIES OF AGRICULTURAL RESEARCH, EXTENSION, AND
                        EDUCATION.

      Subtitle C of title VI of the Agricultural Research, Extension, and
    Education Reform Act of 1998 (7 U.S.C. 7671 et seq.) is repealed.

                             Subtitle D--Other Laws

    SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT.

      Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C.
    178n(a)) is amended--
              (1) by striking ``such sums as are necessary''; and
              (2) by striking ``Act'' and all that follows and inserting
            the following: ``Act--
              ``(1) such sums as are necessary for each of fiscal years
            1991 through 2012; and
              ``(2) $2,000,000 for each of fiscal years 2013 through
            2017.''.

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

      (a) Definition of 1994 Institutions.--Section 532 of the Equity in
    Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
    Law 103-382) is amended--
              (1) in paragraph (8), by striking ``Memorial'';
              (2) in paragraph (26), by striking ``Community'';
              (3) by striking paragraphs (5), (10), and (27);
              (4) by redesignating paragraphs (1), (2), (3), (4), (6), (7),
            (8), (9), (11), (12), (13), (14), (15), (16), (17), (18), (19),
            (20), (21), (22), (23), (24), (25), (26), (28), (29), (30),
            (31), (32), (33), and (34) as paragraphs (2), (3), (4), (8),
            (9), (10), (5), (11), (12), (13), (14), (16), (18), (19), (20),
            (21), (23), (24), (25), (26), (33), (27), (28), (29), (30),
            (31), (32), (34), (35), (36), and (15) respectively, and
            transferring the paragraphs so as to appear in numerical order;
              (5) by inserting before paragraph (2) (as so redesignated),
            the following new paragraph:
              ``(1) Aaniih Nakoda College.'';
              (6) by inserting after paragraph (5) (as so redesignated),
            the following new paragraphs:
              ``(6) College of the Muscogee Nation.
              ``(7) Comanche Nation College.'';
              (7) by inserting after paragraph (16) (as so redesignated)
            the following new paragraph:
              ``(17) Keweenaw Bay Ojibwa Community College.''; and
              (8) by inserting after paragraph (21) (as so redesignated)
            the following new paragraph:
              ``(22) Navajo Technical College.''.
      (b) Endowment for 1994 Institutions.--Section 533(b) of the Equity in
    Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
    Law 103-382) is amended in the first sentence by striking ``2012'' and
    inserting ``2017''.
      (c) Institutional Capacity Building Grants.--Section 535 of the
    Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note;
    Public Law 103-382) is amended by striking ``2012'' each place it
    appears in subsections (b)(1) and (c) and inserting ``2017''.
      (d) Research Grants.--
              (1) Authorization of appropriations.--Section 536(c) of the
            Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
            301 note; Public Law 103-382) is amended in the first sentence
            by striking ``2012'' and inserting ``2017''.
              (2) Research grant requirements.--Section 536(b) of the
            Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
            301 note; Public Law 103-382) is amended by striking ``with at
            least 1 other land-grant college or university'' and all that
            follows and inserting the following: ``with--
              ``(1) the Agricultural Research Service of the Department of
            Agriculture; or
              ``(2) at least 1--
                      ``(A) other land-grant college or university
                    (exclusive of another 1994 Institution);
                      ``(B) non-land-grant college of agriculture (as
                    defined in section 1404 of the National Agricultural
                    Research, Extension, and Teaching Policy Act of 1977 (7
                    U.S.C. 3103)); or
                      ``(C) cooperating forestry school (as defined in that
                    section).''.

    SEC. 7403. RESEARCH FACILITIES ACT.

      Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is
    amended by striking ``2012'' and inserting ``2017''.

    SEC. 7404. REPEAL OF CARBON CYCLE RESEARCH.

      Section 221 of the Agricultural Risk Protection Act of 2000 (7 U.S.C.
    6711) is repealed.

    SEC. 7405. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANT ACT.

      (a) Extension.--Section 2(b)(11)(A) of the Competitive, Special, and
    Facilities Research Grant Act (7 U.S.C. 450i(b)(11)(A)) is amended in
    the matter preceding clause (i) by striking ``2012'' and inserting
    ``2017''.
      (b) Priority Areas.--Section 2(b)(2) of the Competitive, Special, and
    Facilities Research Grant Act (7 U.S.C. 450i(b)(2)) is amended--
              (1) in subparagraph (A)--
                      (A) in clause (vi), by striking ``and'' at the end;
                      (B) in clause (vii), by striking the period at the
                    end and inserting ``; and''; and
                      (C) by adding at the end the following new clause:
                              ``(viii) plant-based foods that are major
                            sources of nutrients of concern (as determined
                            by the Secretary).'';
              (2) in subparagraph (B)--
                      (A) in clause (vii), by striking ``and'' at the end;
                      (B) in clause (viii), by striking the period at the
                    end and inserting a semicolon; and
                      (C) by adding at the end the following new clauses:
                              ``(ix) the research and development of
                            surveillance methods, vaccines, vaccination
                            delivery systems, or diagnostic tests for
                            zoonotic diseases in wildlife reservoirs
                            presenting a potential concern to public health
                            or domestic livestock; and
                              ``(x) the identification of animal drug needs
                            and the generation and dissemination of data
                            for safe and effective therapeutic applications
                            of animal drugs for minor species and minor
                            uses of such drugs in major species.'';
              (3) in subparagraph (C)--
                      (A) in clause (ii), by inserting before the semicolon
                    ``, including the effects of plant-based foods that are
                    major sources of nutrients of concern on diet and
                    health'';
                      (B) in clause (iii), by inserting before the
                    semicolon ``, including plant-based foods that are
                    major sources of nutrients of concern'';
                      (C) in clause (iv), by inserting before the semicolon
                    ``, including postharvest practices conducted with
                    respect to plant-based foods that are major sources of
                    nutrients of concern''; and
                      (D) in clause (v), by inserting before the period ``,
                    including improving the functionality of plant-based
                    foods that are major sources of nutrients of concern'';
              (4) in subparagraph (D)--
                      (A) by redesignating clauses (iv), (v), and (vi) as
                    clauses (v), (vi), and (vii), respectively; and
                      (B) by inserting after clause (iii) the following new
                    clause:
                              ``(iv) the effectiveness of conservation
                            practices and technologies designed to address
                            nutrient losses and improve water quality;'';
                            and
              (5) in subparagraph (F)--
                      (A) in the matter preceding clause (i), by inserting
                    ``economics,'' after ``trade,'';
                      (B) by redesignating clauses (v) and (vi) as clauses
                    (vi) and (vii), respectively; and
                      (C) by inserting after clause (iv) the following new
                    clause:
                              ``(v) the economic costs, benefits, and
                            viability of producers adopting conservation
                            practices and technologies designed to improve
                            water quality;''.
      (c) General Administration.--Section 2(b)(4) of the Competitive,
    Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)(4)) is
    amended--
              (1) in subparagraph (D), by striking ``and'' at the end;
              (2) in subparagraph (E), by striking the period at the end
            and inserting ``; and''; and
              (3) by adding at the end the following new subparagraph:
                      ``(F) establish procedures under which a commodity
                    board established under a commodity promotion law (as
                    such term is defined under section 501(a) of the
                    Federal Agriculture Improvement and Reform Act of 1996
                    (7 U.S.C. 7401(a))) or a State commodity board (or
                    other equivalent State entity) may directly submit to
                    the Secretary proposals for requests for applications
                    to specifically address particular issues related to
                    the priority areas specified in paragraph (2).''.
      (d) Special Considerations.--Section 2(b)(6) of the Competitive,
    Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)(6)) is
    amended--
              (1) in subparagraph (C), by striking ``and'' at the end;
              (2) in subparagraph (D), by striking the period at the end
            and inserting ``; and''; and
              (3) by adding at the end the following new subparagraph:
                      ``(E) to eligible entities to carry out the specific
                    research proposals submitted under procedures
                    established under paragraph (4)(F).''.
      (e) Inter-Regional Research Project Number 4.--Section 2(e) of the
    Competitive, Special, and Facilities Research Grant Act (7 U.S.C.
    450i(e)) is amended--
              (1) in paragraph (1)(A), by striking ``minor use pesticides''
            and inserting ``pesticides for minor agricultural use and for
            use on specialty crops (as defined in section 3 of the
            Specialty Crop Competitiveness Act of 2004 (7 U.S.C. 1621
            note)''; and
              (2) in paragraph (4)--
                      (A) in subparagraph (A), by inserting ``and for use
                    on specialty crops'' after ``minor agricultural use'';
                      (B) in subparagraph (B), by striking ``and'' at the
                    end;
                      (C) by redesignating subparagraph (C) as subparagraph
                    (G); and
                      (D) by inserting after subparagraph (B) the following
                    new subparagraphs:
                      ``(C) prioritize potential pest management technology
                    for minor agricultural use and for use on specialty
                    crops;
                      ``(D) conduct research to develop the data necessary
                    to facilitate pesticide registrations, reregistrations,
                    and associated tolerances;
                      ``(E) assist in removing trade barriers caused by
                    residues of pesticides registered for minor
                    agricultural use and for use on domestically grown
                    specialty crops;
                      ``(F) assist in the registration and reregistration
                    of pest management technologies for minor agricultural
                    use and for use on specialty crops; and''.
      (f) Emphasis on Sustainable Agriculture.--Section 2 of the
    Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i)
    is amended by striking subsection (k).

    SEC. 7406. RENEWABLE RESOURCES EXTENSION ACT OF 1978.

      (a) Authorization of Appropriations.--Section 6 of the Renewable
    Resources Extension Act of 1978 (16 U.S.C. 1675) is amended in the
    first sentence by striking ``2012'' and inserting ``2017''.
      (b) Termination Date.--Section 8 of the Renewable Resources Extension
    Act of 1978 (16 U.S.C. 1671 note; Public Law 95-306) is amended by
    striking ``2012'' and inserting ``2017''.

    SEC. 7407. NATIONAL AQUACULTURE ACT OF 1980.

      Section 10 of the National Aquaculture Act of 1980 (16 U.S.C. 2809)
    is amended by striking ``2012'' each place it appears and inserting
    ``2017''.

    SEC. 7408. REPEAL OF USE OF REMOTE SENSING DATA.

      Section 892 of the Federal Agriculture Improvement and Reform Act of
    1996 (7 U.S.C. 5935) is repealed.

    SEC. 7409. REPEAL OF REPORTS UNDER FARM SECURITY AND RURAL INVESTMENT
                        ACT OF 2002.

      (a) Repeal of Report on Producers and Handlers for Organic
    Products.--Section 7409 of the Farm Security and Rural Investment Act
    of 2002 (7 U.S.C. 5925b note; Public Law 107-171) is repealed.
      (b) Repeal of Report on Genetically Modified Pest-protected Plants.--
    Section 7410 of the Farm Security and Rural Investment Act of 2002
    (Public Law 107-171; 116 Stat. 462) is repealed.
      (c) Repeal of Study on Nutrient Banking.--Section 7411 of the Farm
    Security and Rural Investment Act of 2002 (7 U.S.C. 5925a note; Public
    Law 107-171) is repealed.

    SEC. 7410. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

      Section 7405 of the Farm Security and Rural Investment Act of 2002 (7
    U.S.C. 3319f) is amended--
              (1) in subsection (c)--
                      (A) in paragraph (1), by striking subparagraphs (A)
                    through (R) and inserting the following new
                    subparagraphs:
                      ``(A) basic livestock, forest management, and crop
                    farming practices;
                      ``(B) innovative farm, ranch, and private,
                    nonindustrial forest land transfer strategies;
                      ``(C) entrepreneurship and business training;
                      ``(D) financial and risk management training
                    (including the acquisition and management of
                    agricultural credit);
                      ``(E) natural resource management and planning;
                      ``(F) diversification and marketing strategies;
                      ``(G) curriculum development;
                      ``(H) mentoring, apprenticeships, and internships;
                      ``(I) resources and referral;
                      ``(J) farm financial benchmarking;
                      ``(K) assisting beginning farmers or ranchers in
                    acquiring land from retiring farmers and ranchers;
                      ``(L) agricultural rehabilitation and vocational
                    training for veterans; and
                      ``(M) other similar subject areas of use to beginning
                    farmers or ranchers.'';
                      (B) in paragraph (7), by striking ``and community-
                    based organizations'' and inserting ``, community-based
                    organizations, and school-based agricultural
                    educational organizations'';
                      (C) by striking paragraph (8) and inserting the
                    following new paragraph:
              ``(8) Military veteran beginning farmers and ranchers.--
                      ``(A) In general.--Not less than 5 percent of the
                    funds used to carry out this subsection for a fiscal
                    year shall be used to support programs and services
                    that address the needs of military veteran beginning
                    farmers and ranchers.
                      ``(B) Coordination permitted.--A recipient of a grant
                    under this section using the grant as described in
                    subparagraph (A) may coordinate with a recipient of a
                    grant under section 1680 of the Food, Agriculture,
                    Conservation, and Trade Act of 1990 (7 U.S.C. 5933) in
                    addressing the needs of military veteran beginning
                    farmers and ranchers with disabilities.''; and
                      (D) by adding at the end the following new paragraph:
              ``(11) Limitation on indirect costs.--A recipient of a grant
            under this section may not use more than 10 percent of the
            funds provided by the grant for the indirect costs of carrying
            out the initiatives described in paragraph (1).'';
              (2) in subsection (h)(1)--
                      (A) in subparagraph (A), by striking ``and'' at the
                    end;
                      (B) in subparagraph (B), by striking the period at
                    the end and inserting ``; and''; and
                      (C) by adding at the end the following new
                    subparagraph:
                      ``(C) $10,000,000 for each of fiscal years 2013
                    through 2017, to remain available until expended.'';
                    and
              (3) in subsection (h)(2), by striking ``2012'' and inserting
            ``2017''.

    SEC. 7411. INCLUSION OF NORTHERN MARIANA ISLANDS AS A STATE UNDER
                        MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT.

      Section 8 of Public Law 87-788 (commonly known as the McIntire-
    Stennis Cooperative Forestry Act; 16 U.S.C. 582a-7) is amended by
    striking ``and Guam'' and inserting ``Guam, and the Commonwealth of the
    Northern Mariana Islands''.

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

                         PART 1--AGRICULTURAL SECURITY

    SEC. 7501. AGRICULTURAL BIOSECURITY COMMUNICATION CENTER.

      Section 14112(c) of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 8912(c)) is amended to read as follows:
      ``(c) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section--
              ``(1) such sums as are necessary for each of fiscal years
            2008 through 2012; and
              ``(2) $2,000,000 for each of fiscal years 2013 through
            2017.''.

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

      Section 14113 of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 8913) is amended--
              (1) in subsection (a)(2)--
                      (A) by striking ``such sums as may be necessary'';
                    and
                      (B) by striking ``subsection'' and all that follows
                    and inserting the following: ``subsection--
              ``(1) such sums as are necessary for each of fiscal years
            2008 through 2012; and
              ``(2) $15,000,000 for each of fiscal years 2013 through
            2017.''; and
              (2) in subsection (b)(2), by striking ``is authorized to be
            appropriated to carry out this subsection'' and all that
            follows and inserting the following: ``are authorized to be
            appropriated to carry out this subsection--
              ``(1) $25,000,000 for each of fiscal years 2008 through 2012;
            and
              ``(2) $15,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 7503. RESEARCH AND DEVELOPMENT OF AGRICULTURAL COUNTERMEASURES.

      Section 14121(b) of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 8921(b)) is amended by striking ``is authorized to be
    appropriated to carry out this section'' and all that follows and
    inserting the following: ``are authorized to be appropriated to carry
    out this section--
              ``(1) $50,000,000 for each of fiscal years 2008 through 2012;
            and
              ``(2) $15,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 7504. AGRICULTURAL BIOSECURITY GRANT PROGRAM.

      Section 14122(e) of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 8922(e)) is amended--
              (1) by striking ``sums as are necessary''; and
              (2) by striking ``section'' and all that follows and
            inserting the following: ``section--
              ``(1) such sums as are necessary for each of fiscal years
            2008 through 2012, to remain available until expended; and
              ``(2) $5,000,000 for each of fiscal years 2013 through 2017,
            to remain available until expended.''.

                             PART 2--MISCELLANEOUS

    SEC. 7511. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.

      Section 308 of the Federal Crop Insurance Reform and Department of
    Agriculture Reorganization Act of 1994 (7 U.S.C. 3125a) is amended--
              (1) in subsection (b)(6)(A), by striking ``5 years'' and
            inserting ``9 years''; and
              (2) in subsection (d)(2), by striking ``1, 3, and 5 years''
            and inserting ``5, 7, and 9 years''.

    SEC. 7512. GRAZINGLANDS RESEARCH LABORATORY.

      Section 7502 of the Food, Conservation, and Energy Act of 2008
    (Public Law 110-246; 122 Stat. 2019) is amended by striking ``5-year
    period'' and inserting ``9-year period''.

    SEC. 7513. BUDGET SUBMISSION AND FUNDING.

      Section 7506 of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 7614c) is amended--
              (1) by striking subsection (a) and inserting the following
            new subsection:
      ``(a) Definitions.--In this section:
              ``(1) Covered program.--The term `covered program' means--
                      ``(A) each research program carried out by the
                    Agricultural Research Service or the Economic Research
                    Service for which annual appropriations are requested
                    in the annual budget submission of the President; and
                      ``(B) each competitive program carried out by the
                    National Institute of Food and Agriculture for which
                    annual appropriations are requested in the annual
                    budget submission of the President.
              ``(2) Request for awards.--The term `request for awards'
            means a funding announcement published by the National
            Institute of Food and Agriculture that provides detailed
            information on funding opportunities at the Institute,
            including the purpose, eligibility, restriction, focus areas,
            evaluation criteria, regulatory information, and instructions
            on how to apply for such opportunities.''; and
              (2) by adding at the end the following new subsections:
      ``(e) Additional Presidential Budget Submission Requirement.--
              ``(1) In general.--Each year, the President shall submit to
            Congress, together with the annual budget submission of the
            President, the information described in paragraph (2) for each
            funding request for a covered program.
              ``(2) Information described.--The information described in
            this paragraph includes--
                      ``(A) baseline information, including with respect to
                    each covered program--
                              ``(i) the funding level for the program for
                            the fiscal year preceding the year the annual
                            budget submission of the President is
                            submitted;
                              ``(ii) the funding level requested in the
                            annual budget submission of the President,
                            including any increase or decrease in the
                            funding level; and
                              ``(iii) an explanation justifying any change
                            from the funding level specified in clause (i)
                            to the level specified in clause (ii);
                      ``(B) with respect to each covered program that is
                    carried out by the Economic Research Service or the
                    Agricultural Research Service, the location and staff
                    years of the program;
                      ``(C) the proposed funding levels to be allocated to,
                    and the expected publication date, scope, and
                    allocation level for, each request for awards to be
                    published under or associated with--
                              ``(i) each priority area specified in section
                            2(b)(2) of the Competitive, Special, and
                            Facilities Research Grant Act (7 U.S.C.
                            450i(b)(2));
                              ``(ii) each research and extension project
                            carried out under section 1621(a) of the Food,
                            Agriculture, Conservation, and Trade Act of
                            1990 (7 U.S.C. 5811(a));
                              ``(iii) each grant to be awarded under
                            section 1672B(a) of the Food, Agriculture,
                            Conservation, and Trade Act of 1990 (7 U.S.C.
                            5925b(a));
                              ``(iv) each grant awarded under section
                            412(d) of the Agricultural Research, Extension,
                            and Education Reform Act of 1998 (7 U.S.C.
                            7632(d)); and
                              ``(v) each grant awarded under 7405(c)(1) of
                            the Farm Security and Rural Investment Act of
                            2002 (7 U.S.C. 3319f(c)(1)); or
                      ``(D) any other information the Secretary determines
                    will increase congressional oversight with respect to
                    covered programs.
              ``(3) Prohibition.--Unless the President submits the
            information described in paragraph (2)(C) for a fiscal year,
            the President may not carry out any program during the fiscal
            year that is authorized under--
                      ``(A) section 2(b) of the Competitive, Special, and
                    Facilities Research Grant Act (7 U.S.C. 450i(b));
                      ``(B) section 1621 of the Food, Agriculture,
                    Conservation, and Trade Act of 1990 (7 U.S.C. 5811);
                      ``(C) section 1672B of the Food, Agriculture,
                    Conservation, and Trade Act of 1990 (7 U.S.C. 5925b);
                      ``(D) section 412 of the Agricultural Research,
                    Extension, and Education Reform Act of 1998 (7 U.S.C.
                    7632); or
                      ``(E) section 7405 of the Farm Security and Rural
                    Investment Act of 2002 (7 U.S.C. 3319f).
      ``(f) Report of the Secretary of Agriculture.--Each year on a date
    that is not later than the date on which the President submits the
    annual budget, the Secretary shall submit to Congress a report
    containing a description of the agricultural research, extension, and
    education activities carried out by the Federal Government during the
    fiscal year that immediately precedes the year for which the report is
    submitted, including--
              ``(1) a review of the extent to which those activities--
                      ``(A) are duplicative or overlap within the
                    Department of Agriculture; or
                      ``(B) are similar to activities carried out by--
                              ``(i) other Federal agencies;
                              ``(ii) the States (including the District of
                            Columbia, the Commonwealth of Puerto Rico and
                            other territories or possessions of the United
                            States);
                              ``(iii) institutions of higher education (as
                            defined in section 101 of the Higher Education
                            Act of 1965 (20 U.S.C. 1001)); or
                              ``(iv) the private sector; and
              ``(2) for each report submitted under this section on or
            after January 1, 2013, a 5-year projection of national
            priorities with respect to agricultural research, extension,
            and education, taking into account domestic needs.''.

    SEC. 7514. REPEAL OF RESEARCH AND EDUCATION GRANTS FOR THE STUDY OF
                        ANTIBIOTIC-RESISTANT BACTERIA.

      Section 7521 of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 3202) is repealed.

    SEC. 7515. REPEAL OF FARM AND RANCH STRESS ASSISTANCE NETWORK.

      Section 7522 of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 5936) is repealed.

    SEC. 7516. REPEAL OF SEED DISTRIBUTION.

      Section 7523 of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 415-1) is repealed.

    SEC. 7517. NATURAL PRODUCTS RESEARCH PROGRAM.

      Section 7525(e) of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 5937(e)) is amended to read as follows:
      ``(e) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section $7,000,000 for each of fiscal
    years 2013 through 2017.''.

    SEC. 7518. SUN GRANT PROGRAM.

      (a) In General.--Section 7526 of the Food, Conservation, and Energy
    Act of 2008 (7 U.S.C. 8114) is amended--
              (1) in subsection (a)(4)(B), by striking ``the Department of
            Energy'' and inserting ``other appropriate Federal agencies (as
            determined by the Secretary)'';
              (2) in subsection (c)(1)--
                      (A) in subparagraph (B), by striking ``multistate''
                    and all that follows through the period and inserting
                    ``integrated, multistate research, extension, and
                    education programs on technology development and
                    technology implementation.'';
                      (B) by striking subparagraph (C); and
                      (C) by redesignating subparagraph (D) as subparagraph
                    (C);
              (3) in subsection (d)--
                      (A) in paragraph (1)--
                              (i) by striking ``in accordance with
                            paragraph (2)'';
                              (ii) by striking ``gasification'' and
                            inserting ``bioproducts''; and
                              (iii) by striking ``the Department of
                            Energy'' and inserting ``other appropriate
                            Federal agencies'';
                      (B) by striking paragraph (2); and
                      (C) by redesignating paragraphs (3) and (4) as
                    paragraphs (2) and (3), respectively; and
              (4) in subsection (g), by striking ``2012'' and inserting
            ``2017''.
      (b) Conforming Amendments.--Section 7526(f)(1) of the Food,
    Conservation, and Energy Act of 2008 (7 U.S.C. 8114(f)(1)) is amended
    by striking ``subsection (c)(1)(D)(i)'' and inserting ``subsection
    (c)(1)(C)(i)''.

    SEC. 7519. REPEAL OF STUDY AND REPORT ON FOOD DESERTS.

      Section 7527 of the Food, Conservation, and Energy Act of 2008
    (Public Law 110-246; 122 Stat. 2039) is repealed.

    SEC. 7520. REPEAL OF AGRICULTURAL AND RURAL TRANSPORTATION RESEARCH AND
                        EDUCATION.

      Section 7529 of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 5938) is repealed.

    SEC. 7521. CONVEYANCE OF LAND COMPRISING SUBTROPICAL HORTICULTURE
                        RESEARCH STATION.

      (a) Definitions.--In this section:
              (1) County.--The term ``County'' means Miami-Dade County in
            the State of Florida.
              (2) Property.--The term ``Property'' means approximately 2
            acres, more or less, of the federally owned land comprising the
            Subtropical Horticulture Research Station in the County,
            which--
                      (A) has been mutually delineated by the Secretary and
                    the authorized representative of the County; and
                      (B) fronts on SW 67th Avenue in Palmetto Bay,
                    Florida.
              (3) Secretary.--The term ``Secretary'' means the Secretary of
            Agriculture.
      (b) Property Conveyance.--
              (1) In general.--Not later than 120 days after the date on
            which the County deposits the consideration under paragraph (2)
            and cost reimbursement provided in this section with the
            Department of Agriculture, the Secretary shall convey and
            quitclaim to the County, all rights, title, and interests of
            the United States in the Property, subject to easements and
            rights of record and such other reservations, terms, and
            conditions as the Secretary may prescribe.
              (2) Consideration.--
                      (A) In general.--As consideration for the conveyance
                    of the Property, the County shall pay to the Secretary
                    an amount in cash equal to the market value of the
                    property.
                      (B) Appraisal.--To determine the market value of the
                    Property, the Secretary shall have the Property
                    appraised for the highest and best use of the Property
                    in conformity with the Uniform Appraisal Standards for
                    Federal Land Acquisitions developed by the Interagency
                    Land Acquisition Conference. The approved appraisal
                    shall at all times be the property of the United
                    States.
              (3) Corrections.--With the agreement of the County, the
            Secretary may make minor corrections or modifications to the
            legal description of the Property.
              (4) Costs.--
                      (A) Transaction costs.--Except as provided in
                    subparagraph (C), the County shall, at closing for the
                    conveyance of the Property under this section, pay or
                    reimburse the Secretary, as appropriate, for the
                    reasonable transaction and administrative personnel
                    costs associated with the conveyance authorized by this
                    section, including the transaction costs of appraisal,
                    title, hazardous substances examination, and closing
                    costs.
                      (B) Administrative costs.--In addition to transaction
                    costs under subparagraph (A), the County shall pay
                    administrative costs in the liquidated amount of
                    $50,000.
                      (C) Attorneys' fees.--The County and the Secretary
                    shall each bear their own attorneys' fees.
              (5) Survey.--The County shall, at its cost, survey the
            exterior boundaries of the Subtropical Horticulture Research
            Station and the Property in accordance with Federal survey
            standards and to the satisfaction of the Secretary, and shall
            provide to the Secretary certified originals with signature and
            raised seal.
              (6) Release.--The County, by a recordable instrument that the
            Secretary determines is satisfactory, shall release the
            Department of Agriculture from the instrument dated September
            8, 2006, titled ``Unity of Title''.
              (7) Security fencing.--On or before closing for the
            conveyance of the Property under this section, the County
            shall, at its cost, contract for the construction of a security
            fence located on the boundary between the Property and the
            adjacent land administered by the Secretary. The fence shall be
            of materials and standards approved in advance by the
            Secretary. The Secretary may approve temporary security
            structures for use during construction phases of the fence.
              (8) Other terms.--The Secretary and the County may otherwise
            effect the purpose of this section on such additional terms as
            are mutually acceptable and which are not inconsistent with the
            provisions of this section.
      (c) Receipts.--
              (1) In general.--The Secretary shall deposit all funds
            received from the conveyance authorized under this section,
            including the market value consideration and the reimbursement
            for costs, into the Treasury of the United States to be
            credited to the appropriation for the Agricultural Research
            Service.
              (2) Use of funds.--Notwithstanding any limitation in
            applicable appropriation Acts for the Department of Agriculture
            or the Agricultural Research Service, all funds deposited into
            the Treasury pursuant to subsection (b) shall be available to
            the Secretary until expended, without further appropriation,
            for the operation, upkeep, and maintenance of the Subtropical
            Horticulture Research Station.

    SEC. 7522. CONCESSIONS, FEES, AND VOLUNTARY SERVICES AT NATIONAL
                        ARBORETUM.

      Section 6 of the Act of March 4, 1927 (20 U.S.C. 196) is amended--
              (1) in subsection (a)(1), by inserting ``or nonprofit
            organizations that support the purpose of the National
            Arboretum'' after ``mission of the National Arboretum''; and
              (2) by adding at the end the following new subsection:
      ``(d) Recognition of Donors.--A non-profit organization granted a
    concession under subsection (a)(1) may recognize donors if such
    recognition is approved in advance by the Secretary.''.

    SEC. 7523. COTTON DISEASE RESEARCH REPORT.

      Not later than 180 days after the date of the enactment of this Act,
    the Secretary shall submit to Congress a report on the fungus fusarium
    oxysporum f. sp. vasinfectum race 4 (referred to in this section as
    ``FOV Race 4'') and the impact of such fungus on cotton, including--
              (1) an overview of the threat FOV Race 4 poses to the cotton
            industry in the United States;
              (2) the status and progress of Federal research initiatives
            to detect, contain, or eradicate FOV Race 4, including current
            FOV Race 4-specific research projects; and
              (3) a comprehensive strategy to combat FOV Race 4 that
            establishes--
                      (A) detection and identification goals;
                      (B) containment goals;
                      (C) eradication goals; and
                      (D) a plan to partner with the cotton industry in the
                    United States to maximize resources, information
                    sharing, and research responsiveness and effectiveness.

    SEC. 7524. MISCELLANEOUS TECHNICAL CORRECTIONS.

      Sections 7408 and 7409 of the Food, Conservation, and Energy Act of
    2008 (Public Law 110-246; 122 Stat. 2013) are both amended by striking
    ``Title III of the Department of Agriculture Reorganization Act of
    1994'' and inserting ``Title III of the Federal Crop Insurance Reform
    and Department of Agriculture Reorganization Act of 1994''.

                              TITLE VIII--FORESTRY

                Subtitle A--Repeal of Certain Forestry Programs

    SEC. 8001. FOREST LAND ENHANCEMENT PROGRAM.

      (a) Repeal.--Section 4 of the Cooperative Forestry Assistance Act of
    1978 (16 U.S.C. 2103) is repealed.
      (b) Conforming Amendment.--Section 8002 of the Farm Security and
    Rural Investment Act of 2002 (Public Law 107-171; 16 U.S.C. 2103 note)
    is amended by striking subsection (a).
      (c) Effective Date.--The amendments made by this section shall take
    effect on October 1, 2012.

    SEC. 8002. WATERSHED FORESTRY ASSISTANCE PROGRAM.

      (a) Repeal.--Section 6 of the Cooperative Forestry Assistance Act of
    1978 (16 U.S.C. 2103b) is repealed.
      (b) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.

    SEC. 8003. EXPIRED COOPERATIVE NATIONAL FOREST PRODUCTS MARKETING
                        PROGRAM.

      Section 18 of the Cooperative Forestry Assistance Act of 1978 (16
    U.S.C. 2112) is repealed.

    SEC. 8004. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND NATIONAL
                        RESOURCES LEADERSHIP PROGRAM.

      (a) Repeal.--Section 8402 of the Food, Conservation, and Energy Act
    of 2008 (16 U.S.C. 1649a) is repealed.
      (b) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.

    SEC. 8005. TRIBAL WATERSHED FORESTRY ASSISTANCE PROGRAM.

      (a) Repeal.--Section 303 of the Healthy Forests Restoration Act of
    2003 (16 U.S.C. 6542) is repealed.
      (b) Effective Date.--The amendment made by this section shall take
    effect on October 1, 2012.

    SEC. 8006. SEPARATE FOREST SERVICE DECISIONMAKING AND APPEALS PROCESS.

      Section 322 of the Department of the Interior and Related Agencies
    Appropriations Act, 1993 (Public Law 102-381; 16 U.S.C. 1612 note) is
    repealed. Section 428 of division E of the Consolidated Appropriations
    Act, 2012 (Public Law 112-74; 125 Stat. 1046; 16 U.S.C. 6515 note)
    shall not apply to any project or activity implementing a land and
    resource management plan developed under section 6 of the Forest and
    Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1604)
    that is categorically excluded from documentation in an environmental
    assessment or an environmental impact statement under the National
    Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

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

    SEC. 8101. FOREST LEGACY PROGRAM.

      Subsection (m) of section 7 of the Cooperative Forestry Assistance
    Act of 1978 (16 U.S.C. 2103c) is amended to read as follows:
      ``(m) Authorization of Appropriations.--To carry out this section,
    there are authorized to be appropriated--
              ``(1) such sums as are necessary for fiscal year 2012; and
              ``(2) $55,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 8102. COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.

      Subsection (g) of section 7A of the Cooperative Forestry Assistance
    Act of 1978 (16 U.S.C. 2103d) is amended to read as follows:
      ``(g) Authorization of Appropriations.--To carry out this section,
    there are authorized to be appropriated--
              ``(1) such sums as are necessary for fiscal year 2012; and
              ``(2) $1,500,000 for each of fiscal years 2013 through
            2017.''.

           Subtitle C--Reauthorization of Other Forestry-Related Laws

    SEC. 8201. RURAL REVITALIZATION TECHNOLOGIES.

      Section 2371(d)(2) of the Food, Agriculture, Conservation, and Trade
    Act of 1990 (7 U.S.C. 6601(d)(2)) is amended by striking ``2012'' and
    inserting ``2017''.

    SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY.

      Subsection (d) of section 2405 of the Global Climate Change
    Prevention Act of 1990 (7 U.S.C. 6704) is amended to read as follows:
      ``(d) Authorization of Appropriations.--To carry out this section,
    there are authorized to be appropriated--
              ``(1) such sums as are necessary for each of fiscal years
            1996 through 2012; and
              ``(2) $6,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 8203. CHANGE IN FUNDING SOURCE FOR HEALTHY FORESTS RESERVE
                        PROGRAM.

      Section 508 of the Healthy Forests Restoration Act of 2003 (16 U.S.C.
    6578) is amended--
              (1) in subsection (a), by striking ``In General'' and
            inserting ``Fiscal Years 2009 Through 2012'';
              (2) by redesignating subsection (b) as subsection (d); and
              (3) by inserting after subsection (a) the following new
            subsections:
      ``(b) Fiscal Years 2013 Through 2017.--There is authorized to be
    appropriated to the Secretary of Agriculture to carry out this section
    $9,750,000 for each of fiscal years 2013 through 2017.
      ``(c) Additional Source of Funds.--In addition to funds appropriated
    pursuant to the authorization of appropriations in subsection (b) for a
    fiscal year, the Secretary may use such amount of the funds
    appropriated for that fiscal year to carry out the Soil Conservation
    and Domestic Allotment Act (16 U.S.C. 590a et seq.) as the Secretary
    determines necessary to cover the cost of technical assistance,
    management, and enforcement responsibilities for land enrolled in the
    healthy forests reserve program pursuant to subsections (a) and (b) of
    section 504.''.

    SEC. 8204. STEWARDSHIP END RESULT CONTRACTING PROJECT AUTHORITY.

      Section 347(a) 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) is amended by striking
    ``2013'' and inserting ``2017''.

               Subtitle D--National Forest Critical Area Response

    SEC. 8301. DEFINITIONS.

      In this title:
              (1) Critical area.--The term ``critical area'' means an area
            of the National Forest System designated by the Secretary under
            section 8302
              (2) National forest system.--The term ``National Forest
            System'' has the meaning given that term in section 11(a) of
            the Forest and Rangeland Renewable Resources Planning Act of
            1974 (16 U.S.C. 1609(a)).
              (3) Secretary.--The term ``Secretary'' means the Secretary of
            Agriculture.

    SEC. 8302. DESIGNATION OF CRITICAL AREAS.

      (a) Designation Requirements.--The Secretary of Agriculture shall
    designate critical areas within the National Forest System for the
    purposes of addressing--
              (1) deteriorating forest health conditions in existence as of
            the date of the enactment of this Act due to insect
            infestation, drought, disease, or storm damage; and
              (2) the future risk of insect infestations or disease
            outbreaks through preventative treatments.
      (b) Designation Method.--In considering National Forest System land
    for designation as a critical area, the Secretary shall use--
              (1) for purposes of subsection (a)(1), the most recent annual
            forest health aerial surveys of mortality and defoliation; and
              (2) for purposes of subsection (a)(2), the National Insect
            and Disease Risk Map.
      (c) Time for Initial Designations.--The first critical areas shall be
    designated by the Secretary not later than 60 days after the date of
    the enactment of this Act.
      (d) Duration of Designation.--The designation of a critical area
    shall expire not later than 10 years after the date of the designation.

    SEC. 8303. APPLICATION OF EXPEDITED PROCEDURES AND ACTIVITIES OF THE
                        HEALTHY FORESTS RESTORATION ACT OF 2003 TO CRITICAL
                        AREAS.

      (a) Applicability.--Subject to subsections (b) through (e), title I
    of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6511 et seq.)
    (including the environmental analysis requirements of section 104 of
    that Act (16 U.S.C. 6514), the special administrative review process
    under section 105 of that Act (16 U.S.C. 6515), and the judicial review
    process under section 106 of that Act (16 U.S.C. 6516)), shall apply to
    all Forest Service projects and activities carried out in a critical
    area.
      (b) Application of Other Law.--Section 322 of Public Law 102-381 (16
    U.S.C. 1612 note; 106 Stat. 1419) shall not apply to projects conducted
    in accordance with this section.
      (c) Required Modifications.--In applying title I of the Healthy
    Forests Restoration Act of 2003 (16 U.S.C. 6511 et seq.) to Forest
    Service projects and activities in a critical area, the Secretary shall
    make the following modifications:
              (1) The authority shall apply to the entire critical area,
            including land that is outside of a wildland-urban interface
            area or that does not satisfy any of the other eligibility
            criteria specified in section 102(a) of that Act (16 U.S.C.
            6512(a)).
              (2) All projects and activities of the Forest Service,
            including necessary connected actions (as described in section
            1508.25(a)(1) of title 40, Code of Federal Regulations (or a
            successor regulation)), shall be considered to be authorized
            hazardous fuel reduction projects for purposes of applying the
            title.
      (d) Smaller Projects.--
              (1) In general.--Except as provided in paragraph (2), a
            project conducted in a critical area in accordance with this
            section that comprises less than 10,000 acres shall be--
                      (A) considered an action categorically excluded from
                    the requirements for an environmental assessment or an
                    environmental impact statement under section 1508.4 of
                    title 40, Code of Federal Regulations (or a successor
                    regulation); and
                      (B) exempt from the special administrative review
                    process under section 105 of the Healthy Forests
                    Restoration Act of 2003 (16 U.S.C. 6515).
              (2) Exclusion of certain areas.--Paragraph (1) does not apply
            to--
                      (A) a component of the National Wilderness
                    Preservation System;
                      (B) any Federal land on which, by Act of Congress or
                    Presidential proclamation, the removal of vegetation is
                    restricted or prohibited;
                      (C) a congressionally designated wilderness study
                    area; or
                      (D) an area in which activities under paragraph (1)
                    would be inconsistent with the applicable land and
                    resource management plan.
      (e) Forest Management Plans.--All projects and activities carried out
    in a critical area pursuant to this subtitle shall be consistent with
    the land and resource management plan established under section 6 of
    the Forest and Rangeland Renewable Resources Planning Act of 1974 (16
    U.S.C. 1604) for the unit of the National Forest System containing the
    critical area.

    SEC. 8304. GOOD NEIGHBOR AUTHORITY.

      (a) Definitions.--In this section:
              (1) Eligible state.--The term ``eligible State'' means a
            State that contains National Forest System land.
              (2) Secretary.--The term ``Secretary'' means the Secretary of
            Agriculture.
              (3) State forester.--The term ``State forester'' means the
            head of a State agency with jurisdiction over State forestry
            programs in an eligible State.
      (b) Cooperative Agreements and Contracts.--
              (1) In general.--The Secretary may enter into a cooperative
            agreement or contract (including a sole source contract) with a
            State forester to authorize the State forester to provide the
            forest, rangeland, and watershed restoration and protection
            services described in paragraph (2) on National Forest System
            land in the eligible State.
              (2) Authorized services.--The forest, rangeland, and
            watershed restoration and protection services referred to in
            paragraph (1) include the conduct of--
                      (A) activities to treat insect infected trees;
                      (B) activities to reduce hazardous fuels; and
                      (C) any other activities to restore or improve
                    forest, rangeland, and watershed health, including fish
                    and wildlife habitat.
              (3) State as agent.--Except as provided in paragraph (6), a
            cooperative agreement or contract entered into under paragraph
            (1) may authorize the State forester to serve as the agent for
            the Secretary in providing the restoration and protection
            services authorized under that paragraph.
              (4) Subcontracts.--In accordance with applicable contract
            procedures for the eligible State, a State forester may enter
            into subcontracts to provide the restoration and protection
            services authorized under a cooperative agreement or contract
            entered into under paragraph (1).
              (5) Timber sales.--Subsections (d) and (g) of section 14 of
            the National Forest Management Act of 1976 (16 U.S.C. 472a)
            shall not apply to services performed under a cooperative
            agreement or contract entered into under paragraph (1).
              (6) Retention of nepa responsibilities.--Any decision
            required to be made under the National Environmental Policy Act
            of 1969 (42 U.S.C. 4321 et seq.) with respect to any
            restoration and protection services to be provided under this
            section by a State forester on National Forest System land
            shall not be delegated to a State forester or any other officer
            or employee of the eligible State.
              (7) Applicable law.--The restoration and protection services
            to be provided under this section shall be carried out on a
            project-to-project basis under existing authorities of the
            Forest Service.

                      Subtitle E--Miscellaneous Provisions

    SEC. 8401. REVISION OF STRATEGIC PLAN FOR FOREST INVENTORY AND
                        ANALYSIS.

      (a) Revision Required.--Not later than 180 days after the date of the
    enactment of this Act, the Secretary of Agriculture shall revise the
    strategic plan for forest inventory and analysis initially prepared
    pursuant to section 3(e) of the Forest and Rangeland Renewable
    Resources Research Act of 1978 (16 U.S.C. 1642(e)) to address the
    requirements imposed by subsection (b).
      (b) Elements of Revised Strategic Plan.--In revising the strategic
    plan, the Secretary of Agriculture shall describe in detail the
    organization, procedures, and funding needed to achieve each of the
    following:
              (1) Complete the transition to a fully annualized forest
            inventory program and include inventory and analysis of
            interior Alaska.
              (2) Implement an annualized inventory of trees in urban
            settings, including the status and trends of trees and forests,
            and assessments of their ecosystem services, values, health,
            and risk to pests and diseases.
              (3) Report information on renewable biomass supplies and
            carbon stocks at the local, State, regional, and national
            level, including by ownership type.
              (4) Engage State foresters and other users of information
            from the forest inventory and analysis in reevaluating the list
            of core data variables collected on forest inventory and
            analysis plots with an emphasis on demonstrated need.
              (5) Improve the timeliness of the timber product output
            program and accessibility of the annualized information on that
            database.
              (6) Foster greater cooperation among the forest inventory and
            analysis program, research station leaders, and State foresters
            and other users of information from the forest inventory and
            analysis.
              (7) Promote availability of and access to non-Federal
            resources to improve information analysis and information
            management.
              (8) Collaborate with the Natural Resources Conservation
            Service, National Aeronautics and Space Administration,
            National Oceanic and Atmospheric Administration, and United
            States Geological Survey to integrate remote sensing, spatial
            analysis techniques, and other new technologies in the forest
            inventory and analysis program.
              (9) Understand and report on changes in land cover and use.
              (10) Expand existing programs to promote sustainable forest
            stewardship through increased understanding, in partnership
            with other Federal agencies, of the over 10 million family
            forest owners, their demographics, and the barriers to forest
            stewardship.
              (11) Implement procedures to improve the statistical
            precision of estimates at the sub-State level.
      (c) Submission of Revised Strategic Plan.--The Secretary of
    Agriculture shall submit the revised strategic plan to the Committee on
    Agriculture of the House of Representatives and the Committee on
    Agriculture, Nutrition, and Forestry of the Senate.

    SEC. 8402. FOREST SERVICE PARTICIPATION IN ACES PROGRAM.

      The Secretary of Agriculture, acting through the Chief of the Forest
    Service, may use funds derived from conservation-related programs
    executed on National Forest System lands to utilize the Agriculture
    Conservation Experienced Services Program established pursuant to
    section 1252 of the Food Security Act of 1985 (16 U.S.C. 3851) to
    provide technical services for conservation-related programs and
    authorities carried out by the Secretary on National Forest System
    lands.

                                TITLE IX--ENERGY

    SEC. 9001. DEFINITION OF RENEWABLE ENERGY SYSTEM.

      Section 9001 of the Farm Security and Rural Investment Act of 2002 (7
    U.S.C. 8101) is amended by--
              (1) striking paragraph (4) and inserting the following:
              ``(4) Biobased product.--
                      ``(A) In general.--The term `biobased product' means
                    a product determined by the Secretary to be a
                    commercial or industrial product (other than food or
                    feed) that is--
                              ``(i) composed, in whole or in significant
                            part, of biological products, including
                            renewable domestic agricultural materials and
                            forestry materials; or
                              ``(ii) an intermediate ingredient or
                            feedstock.
                      ``(B) Inclusion.--The term `biobased product', with
                    respect to forestry materials, includes forest products
                    that meet biobased content requirements,
                    notwithstanding the market share the product holds, the
                    age of the product, or whether the market for the
                    product is new or emerging.'';
              (2) redesignating paragraphs (9), (10), (11), (12), (13), and
            (14) as paragraphs (10), (11), (12), (13), (14), and (16);
              (3) inserting after paragraph (8), the following new
            paragraph:
              ``(9) Forest product.--
                      ``(A) In general.--The term `forest product' means a
                    product made from materials derived from the practice
                    of forestry or the management of growing timber.
                      ``(B) Inclusions.--The term `forest product'
                    includes--
                              ``(i) pulp, paper, paperboard, pellets, and
                            wood products; and
                              ``(ii) any recycled products derived from
                            forest materials.''; and
              (4) inserting after paragraph (14) (as so redesignated), the
            following new paragraph:
              ``(15) Renewable energy system.--
                      ``(A) In general.--Subject to subparagraph (B), the
                    term `renewable energy system' means a system that--
                              ``(i) produces usable energy from a renewable
                            energy source; and
                              ``(ii) may include distribution components
                            necessary to move energy produced by such
                            system to the initial point of sale.
                      ``(B) Limitation.--A system described in subparagraph
                    (A) may not include a mechanism for dispensing energy
                    at retail.''.

    SEC. 9002. BIOBASED MARKETS PROGRAM.

      Section 9002(h) of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 8102(h)) is amended--
              (1) in the heading of paragraph (1), by inserting ``for
            fiscal years 2008 through 2012'' after ``funding'';
              (2) in the heading of paragraph (2), by inserting ``for
            fiscal years 2009 through 2012'' after ``funding''; and
              (3) by adding at the end the following new paragraph:
              ``(3) Fiscal years 2013 through 2017.--There are authorized
            to be appropriated to carry out this section $2,000,000 for
            each of fiscal years 2013 through 2017.''.

    SEC. 9003. BIOREFINERY ASSISTANCE.

      (a) Program Adjustments.--Section 9003 of the Farm Security and Rural
    Investment Act of 2002 (7 U.S.C. 8103) is amended--
              (1) in subsection (c), by striking ``to eligible entities''
            and all that follows through ``guarantees for loans'' and
            inserting ``to eligible entities guarantees for loans'';
              (2) by striking subsection (d);
              (3) by redesignating subsections (e), (f), (g), and (h) as
            subsections (d), (e), (f), and (g), respectively; and
              (4) in subsection (d) (as so redesignated)--
                      (A) by striking ``subsection (c)(2)'' each place it
                    appears and inserting ``subsection (c)''; and
                      (B) in paragraph (2)(C), by striking ``subsection
                    (h)'' and inserting ``subsection (g)''.
      (b) Funding.--Section 9003(g) of the Farm Security and Rural
    Investment Act of 2002, as redesignated by subsection (a)(3), is
    amended--
              (1) in the heading of paragraph (1), by inserting ``for
            fiscal years 2009 and 2010'' after ``funding'';
              (2) in the heading of paragraph (2), by inserting ``for
            fiscal years 2009 through 2012'' after ``funding''; and
              (3) by adding at the end the following new paragraph:
              ``(3) Fiscal years 2013 through 2017.--There are authorized
            to be appropriated to carry out this section $75,000,000 for
            each of fiscal years 2013 through 2017.''.

    SEC. 9004. REPEAL OF REPOWERING ASSISTANCE PROGRAM AND TRANSFER OF
                        REMAINING FUNDS.

      (a) Repeal.--Subject to subsection (b), section 9004 of the Farm
    Security and Rural Investment Act of 2002 (7 U.S.C. 8104) is repealed.
      (b) Use of Remaining Funding for Rural Energy for America Program.--
    Funds made available pursuant to subsection (d) of such section 9004
    that are unobligated on the day before the date of the enactment of
    this section shall--
              (1) remain available until expended;
              (2) be used by the Secretary of Agriculture to carry out
            financial assistance for energy efficiency improvements and
            renewable energy systems under section 9007(a)(2) of the Farm
            Security and Rural Investment Act of 2002 (7 U.S.C.
            8107(a)(2)); and
              (3) be in addition to any other funds made available to carry
            out that program.

    SEC. 9005. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.

      Section 9005(g) of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 8105(c)) is amended--
              (1) in the heading of paragraph (1), by inserting ``for
            fiscal years 2009 through 2012'' after ``funding'';
              (2) in the heading of paragraph (2), by inserting ``for
            fiscal years 2009 through 2012'' after ``funding'';
              (3) by redesignating paragraph (3) as paragraph (4); and
              (4) by inserting after paragraph (2) the following new
            paragraph:
              ``(3) Fiscal years 2013 through 2017.--There are authorized
            to be appropriated to carry out this section $50,000,000 for
            each of fiscal years 2013 through 2017.''.

    SEC. 9006. BIODIESEL FUEL EDUCATION PROGRAM.

      Subsection (d) of section 9006 of the Farm Security and Rural
    Investment Act of 2002 (7 U.S.C. 8106(d)) is amended to read as
    follows:
      ``(d) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section $2,000,000 for each of fiscal
    years 2013 through 2017.''.

    SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM.

      (a) Program Adjustments.--
              (1) Repeal of feasibility studies.--Section 9007(c) of the
            Farm Security and Rural Investment Act of 2002 (7 U.S.C.
            8107(c)) is amended by striking paragraph (3).
              (2) Tiered application process.--Section 9007(c) of the Farm
            Security and Rural Investment Act of 2002 (7 U.S.C. 8107(c)) is
            further amended by--
                      (A) redesignating paragraph (2) as paragraph (3); and
                      (B) by inserting after paragraph (1) the following
                    new paragraph:
              ``(2) Tiered application process.--In carrying out this
            subsection, the Secretary shall establish a three-tiered
            application, evaluation, and oversight process that varies
            based on the cost of the proposed project with the process most
            simplified for projects referred to in subparagraph (A), more
            comprehensive for projects referred to in subparagraph (B), and
            most comprehensive for projects referred to in subparagraph
            (C). The three tiers for such process shall be as follows:
                      ``(A) Tier 1.--Projects for which the cost of the
                    project funded under this subsection is not more than
                    $80,000.
                      ``(B) Tier 2.--Projects for which the cost of the
                    project funded under this subsection is more than
                    $80,000 but less than $200,000.
                      ``(C) Tier 3.--Projects for which the cost of the
                    project funded under this subsection is $200,000 or
                    more.''.
      (b) Funding.--Section 9007(g) of the Farm Security and Rural
    Investment Act of 2002 (7 U.S.C. 8107(g)) is amended--
              (1) in the heading of paragraph (1), by inserting ``for
            fiscal years 2009 through 2012'' after ``funding'';
              (2) in the heading of paragraph (2), by inserting ``for
            fiscal years 2009 through 2012'' after ``funding'';
              (3) in the heading of paragraph (3), by inserting ``for
            fiscal years 2009 through 2012'' after ``funding''; and
              (4) by adding at the end the following new paragraph:
              ``(4) Fiscal years 2013 through 2017.--There are authorized
            to be appropriated to carry out this section $45,000,000 for
            each of fiscal years 2013 through 2017.''.

    SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT.

      Section 9008(h) of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 8108(h)) is amended--
              (1) in the heading of paragraph (1), by inserting ``for
            fiscal years 2009 through 2012'' after ``funding'';
              (2) in the heading of paragraph (2), by inserting ``for
            fiscal years 2009 through 2012'' after ``funding''; and
              (3) by adding at the end the following new paragraph:
              ``(3) Fiscal years 2013 through 2017.--There are authorized
            to be appropriated to carry out this section $20,000,000 for
            each of fiscal years 2013 through 2017.''.

    SEC. 9009. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.

      Section 9010(b) of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 8110(b)) is amended--
              (1) in paragraph (1)(A), by striking ``2012'' and inserting
            ``2017''; and
              (2) in paragraph (2)(A), by striking ``2012'' and inserting
            ``2017''.

    SEC. 9010. BIOMASS CROP ASSISTANCE PROGRAM.

      Section 9011 of the Farm Security and Rural Investment Act of 2002 (7
    U.S.C. 8111) is amended--
              (1) in subsection (a)--
                      (A) by striking paragraph (6); and
                      (B) by redesignating paragraphs (7) and (8) as
                    paragraphs (6) and (7), respectively;
              (2) in subsection (b)--
                      (A) by striking ``Program to'' and all that follows
                    through ``support the establishment'' and inserting
                    ``Program to support the establishment'';
                      (B) by striking ``; and'' and inserting a period; and
                      (C) by striking paragraph (2);
              (3) in subsection (c)--
                      (A) in paragraph (2)(B)--
                              (i) in clause (viii), by striking ``; and''
                            and inserting a semicolon;
                              (ii) by redesignating clause (ix) as clause
                            (x); and
                              (iii) by inserting after clause (viii) the
                            following new clause:
                              ``(ix) existing project areas that have
                            received funding under this section and the
                            continuation of funding of such project areas
                            to advance the maturity of such project areas;
                            and''; and
                      (B) in paragraph (5)(C)(ii)--
                              (i) by striking subclause (III); and
                              (ii) by redesignating subclauses (IV) and (V)
                            as subclauses (III) and (IV), respectively;
              (4) by striking subsection (d);
              (5) by redesignating subsections (e) and (f) as subsections
            (d) and (e), respectively; and
              (6) in subsection (e) (as so redesignated)--
                      (A) by striking ``(e) Funding.--Of the funds'' and
                    inserting ``(e) Funding.--
              ``(1) Fiscal years 2008 through 2012.--Of the funds''; and
                      (B) by adding at the end the following new paragraph:
              ``(2) Fiscal years 2013 through 2017.--
                      ``(A) In general.--Subject to subparagraph (B), there
                    are authorized to be appropriated to carry out this
                    section $75,000,000 for each of fiscal years 2013
                    through 2017.
                      ``(B) Multiyear contracts.--For each multiyear
                    contract entered into by the Secretary during a fiscal
                    year under this section, the Secretary shall ensure
                    that sufficient funds are obligated from the
                    appropriation for that fiscal year to fully cover all
                    payments required by the contract for all years of the
                    contract.''.

    SEC. 9011. COMMUNITY WOOD ENERGY PROGRAM.

      Section 9013(e) of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 8113(e)) is amended by striking ``carry out this section''
    and all that follows and inserting the following: ``carry out this
    section--
              ``(1) $5,000,000 for each of fiscal years 2009 through 2012;
            and
              ``(2) $2,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 9012. REPEAL OF BIOFUELS INFRASTRUCTURE STUDY.

      Section 9002 of the Food, Conservation, and Energy Act of 2008
    (Public Law 110-246; 122 Stat. 2095) is repealed.

    SEC. 9013. REPEAL OF RENEWABLE FERTILIZER STUDY.

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

                             TITLE X--HORTICULTURE

    SEC. 10001. SPECIALTY CROPS MARKET NEWS ALLOCATION.

      Section 10107(b) of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 1622b(b)) is amended by striking ``2012'' and inserting
    ``2017''.

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

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

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

      Section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7
    U.S.C. 3005) is amended--
              (1) in the section heading, by inserting ``and local food''
            after ``farmers' market'';
              (2) in subsection (a)--
                      (A) by inserting ``and Local Food'' after ``Farmers'
                    Market'';
                      (B) by striking ``farmers' markets and to promote'';
                    and
                      (C) by striking the period and inserting ``and assist
                    in the development of local food business
                    enterprises.'';
              (3) in subsection (b), by striking paragraph (1) and
            inserting the following new paragraph:
              ``(1) In general.--The purposes of the Program are to
            increase domestic consumption of, and consumer access to,
            locally and regionally produced agricultural products by
            assisting in the development, improvement, and expansion of--
                      ``(A) domestic farmers' markets, roadside stands,
                    community-supported agriculture programs, agritourism
                    activities, and other direct producer-to-consumer
                    market opportunities; and
                      ``(B) local and regional food business enterprises
                    that process, distribute, aggregate, and store locally
                    or regionally produced food products.'';
              (4) in subsection (c)(1)--
                      (A) by inserting ``or other agricultural business
                    entity'' after ``cooperative''; and
                      (B) by inserting ``, including a community supported
                    agriculture network or association'' after
                    ``association'';
              (5) by redesignating subsection (e) as subsection (g);
              (6) by inserting after subsection (d) the following new
            subsections:
      ``(e) Priority.--In awarding grants under this section, the Secretary
    shall give priority to applications submitted by eligible entities that
    include proposals for projects that--
              ``(1) benefit underserved communities;
              ``(2) develop market opportunities for small and mid-sized
            farm and ranch operations; and
              ``(3) include a strategic plan to maximize the use of funds
            to build capacity for local and regional food systems in a
            community.
      ``(f) Funds Requirements for Eligible Entities.--
              ``(1) Matching funds.--An entity receiving a grant under this
            section for a project to carry out a purpose described in
            subsection (b)(1)(B) shall provide matching funds in the form
            of cash or an in-kind contribution in an amount equal to 25
            percent of the total cost of such project.
              ``(2) Limitation on use of funds.--An eligible entity may not
            use a grant or other assistance provided under this section for
            the purchase, construction, or rehabilitation of a building or
            structure.''; and
              (7) in subsection (g) (as redesignated by paragraph (5))--
                      (A) in paragraph (1)--
                              (i) in subparagraph (B), by striking ``and''
                            at the end;
                              (ii) in subparagraph (C), by striking the
                            period at the end and inserting ``; and''; and
                              (iii) by adding at the end the following new
                            subparagraph:
                      ``(D) $20,000,000 for each of fiscal years 2013
                    through 2017.'';
                      (B) by striking paragraphs (2) and (4);
                      (C) by redesignating paragraph (3) as paragraph (5);
                    and
                      (D) by inserting after paragraph (1) the following
                    new paragraphs:
              ``(2) Authorization of appropriations.--There are authorized
            to be appropriated to carry out this section $10,000,000 for
            each of fiscal years 2013 through 2017.
              ``(3) Use of funds.--Of the funds made available to carry out
            this section for a fiscal year, 50 percent of such funds shall
            be used for the purposes described in subparagraph (A) of
            subsection (b)(1) and 50 percent of such funds shall be used
            for the purposes described in subparagraph (B) of such
            subsection.
              ``(4) Limitation on administrative expenses.--Not more than 5
            percent of the total amount made available to carry out this
            section for a fiscal year may be used for administrative
            expenses.''.

    SEC. 10004. ORGANIC AGRICULTURE.

      (a) Organic Production and Market Data Initiatives.--Section 7407(d)
    of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
    5925c(d)) is amended--
              (1) by redesignating paragraph (2) as paragraph (3);
              (2) by inserting after paragraph (1) the following new
            paragraph:
              ``(2) Mandatory funding.--In addition to funds made available
            under paragraph (1), of the funds of the Commodity Credit
            Corporation, the Secretary shall use to carry out this section
            $5,000,000, to remain available until expended.''; and
              (3) in paragraph (3) (as redesignated by paragraph (1))--
                      (A) by striking ``paragraph (1)'' and inserting
                    ``paragraphs (1) and (2)''; and
                      (B) by striking ``2012'' and inserting ``2017''.
      (b) Modernization and Technology Upgrade for National Organic
    Program.--Section 2122 of the Organic Foods Production Act of 1990 (7
    U.S.C. 6521) is amended by adding at the end the following new
    subsection:
      ``(c) Modernization and Technology Upgrade for National Organic
    Program.--The Secretary shall modernize database and technology systems
    of the national organic program.''.
      (c) Authorization of Appropriations for National Organic Program.--
    Section 2123 of the Organic Foods Production Act of 1990 (7 U.S.C.
    6522) is amended--
              (1) in subsection (b)--
                      (A) in paragraph (5), by striking ``and'' at the end;
                      (B) by redesignating paragraph (6) as paragraph (7);
                    and
                      (C) by inserting after paragraph (5) the following
                    new paragraph:
              ``(6) $11,000,000 for each of fiscal years 2013 through 2017;
            and''; and
              (2) by adding at the end the following new subsection:
      ``(c) Modernization and Technology Upgrade for National Organic
    Program.--Of the funds of the Commodity Credit Corporation and in
    addition to any other funds made available to carry out section
    2122(c), the Secretary shall use to carry out such section $5,000,000
    for fiscal year 2013, to remain available until expended.''.
      (d) National Organic Certification Cost-share Program.--Section 10606
    of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 6523)
    is repealed.

    SEC. 10005. INVESTIGATIONS AND ENFORCEMENT OF THE ORGANIC FOODS
                        PRODUCTION ACT OF 1990.

      The Organic Foods Production Act of 1990 is amended by inserting
    after section 2122 (7 U.S.C. 6521) the following new section:

    ``SEC. 2122A. INVESTIGATIONS AND ENFORCEMENT.

      ``(a) Investigation.--
              ``(1) In general.--The Secretary may take such investigative
            actions as the Secretary considers to be necessary to carry out
            this title--
                      ``(A) to verify the accuracy of any information
                    reported or made available under this title; and
                      ``(B) to determine, with regard to actions,
                    practices, or information required under this title,
                    whether a person covered by this title has committed a
                    violation of any provision of this title.
              ``(2) Investigative powers.--The Secretary may administer
            oaths and affirmations, subpoena witnesses, compel attendance
            of witnesses, take evidence, and require the production of any
            records required to be maintained under section 2112(d) or
            2116(c) that are relevant to the investigation.
      ``(b) Unlawful Act.--It shall be unlawful and a violation of this
    title for any person covered by this title--
              ``(1) to refuse to provide information required by the
            Secretary under this title; or
              ``(2) to violate--
                      ``(A) a suspension or revocation of the organic
                    certification of a producer or handler; or
                      ``(B) a suspension or revocation of the accreditation
                    of a certifying agent.
      ``(c) Enforcement.--
              ``(1) Suspension.--
                      ``(A) In general.--The Secretary may, after notice
                    and opportunity for an expedited administrative
                    hearing, suspend the organic certification of a
                    producer or handler, or accreditation of a certifying
                    agent, if the Secretary has reason to believe that a
                    person producing or handling an agricultural product,
                    or a certifying agent, has violated or is violating any
                    provision of this title. The decision to suspend a
                    certification under this subparagraph by the Secretary
                    may be appealed to a United States district court not
                    later than 30 days after such decision is made and
                    shall not take effect until judicial review of such
                    decision is completed.
                      ``(B) Continuation of suspension through appeal.--If
                    the Secretary determines subsequent to an investigation
                    that a violation of this title by a person covered by
                    this title has occurred, the suspension shall remain in
                    effect until the Secretary issues a revocation of the
                    certification of the person or of the accreditation of
                    the certifying agent, covered by this title, after an
                    expedited administrative appeal under section 2121 has
                    been completed.
              ``(2) Revocation.--After notice and opportunity for an
            administrative appeal under section 2121, if a violation of
            this title is determined to have occurred, the Secretary shall
            revoke the organic certification of the producer or handler, or
            the accreditation of the certifying agent.
      ``(d) Appeal.--
              ``(1) In general.--A revocation of a certification or an
            accreditation under subsection (c)(2) shall be final and
            conclusive unless the affected person files an appeal of the
            revocation, if the affected person so elects, to a United
            States district court as provided in section 2121(b) not later
            than 30 days after the date of the revocation under subsection
            (c)(2).
              ``(2) Standard.--A revocation of a certification or an
            accreditation under subsection (c)(2) shall be set aside only
            if the revocation of such certification or such accreditation
            is clearly erroneous.
      ``(e) Noncompliance.--
              ``(1) In general.--If a person covered by this title fails to
            obey a revocation of a certification or an accreditation under
            subsection (c)(2) after such revocation has become final and
            conclusive or after the appropriate United States district
            court has entered a final judgment in favor of the Secretary,
            the United States may apply to the appropriate United States
            district court for enforcement of such revocation.
              ``(2) Enforcement.--If the court determines that the
            revocation was lawfully made and duly served and that the
            person violated the revocation, the court shall enforce the
            revocation.
              ``(3) Civil penalty.--If the court finds that the person
            violated the revocation of a certification or an accreditation
            under subsection (c)(2), the person shall be subject to one or
            more of the penalties provided in subsections (a) and (b) of
            section 2120.''.

    SEC. 10006. FOOD SAFETY EDUCATION INITIATIVES.

      Section 10105(c) of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 7655a(c)) is amended by striking ``2012'' and inserting
    ``2017''.

    SEC. 10007. SPECIALTY CROP BLOCK GRANTS.

      Section 101 of the Specialty Crops Competitiveness Act of 2004 (7
    U.S.C. 1621 note; Public Law 108-465) is amended--
              (1) in subsection (a)--
                      (A) by striking ``subsection (j)'' and inserting
                    ``subsection (l)''; and
                      (B) by striking ``2012'' and inserting ``2017'';
              (2) by striking subsection (b) and inserting the following
            new subsection:
      ``(b) Grants Based on Value and Acreage.--Subject to subsection (c),
    for each State whose application for a grant for a fiscal year that is
    accepted by the Secretary under subsection (f), the amount of the grant
    for such fiscal year to the State under this section shall bear the
    same ratio to the total amount made available under subsection (l)(1)
    for such fiscal year as--
              ``(1) the average of the most recent available value of
            specialty crop production in the State and the acreage of
            specialty crop production in the State, as demonstrated in the
            most recent Census of Agriculture data; bears to
              ``(2) the average of the most recent available value of
            specialty crop production in all States and the acreage of
            specialty crop production in all States, as demonstrated in the
            most recent Census of Agriculture data.'';
              (3) by redesignating subsection (j) as subsection (l);
              (4) by inserting after subsection (i) the following new
            subsections:
      ``(j) Multistate Projects.--Not later than 180 days after the
    effective date of the Federal Agriculture Reform and Risk Management
    Act of 2012, the Secretary of Agriculture shall issue guidance for the
    purpose of making grants to multistate projects under this section for
    projects involving--
              ``(1) food safety;
              ``(2) plant pests and disease;
              ``(3) research;
              ``(4) crop-specific projects addressing common issues; and
              ``(5) any other area that furthers the purposes of this
            section, as determined by the Secretary.
      ``(k) Administration.--
              ``(1) Department.--The Secretary of Agriculture may not use
            more than 3 percent of the funds made available to carry out
            this section for a fiscal year for administrative expenses.
              ``(2) States.--A State receiving a grant under this section
            may not use more than 8 percent of the funds received under the
            grant for a fiscal year for administrative expenses.''; and
              (5) in subsection (l) (as redesignated by paragraph (3))--
                      (A) by redesignating paragraphs (1), (2), and (3) as
                    subparagraphs (A), (B), and (C), respectively, and
                    moving such subparagraphs two ems to the right;
                      (B) by striking ``Of the funds'' and inserting the
                    following:
              ``(1) In general.--Of the funds'';
                      (C) in paragraph (1) (as so designated)--
                              (i) in subparagraph (B) (as redesignated by
                            subparagraph (A)), by striking ``and'' at the
                            end;
                              (ii) in subparagraph (C) (as redesignated by
                            subparagraph (A)), by striking the period at
                            the end and inserting ``; and''; and
                              (iii) by adding at the end the following new
                            subparagraph:
                      ``(D) $70,000,000 for fiscal year 2013 and each
                    fiscal year thereafter.''; and
                      (D) by adding at the end the following new paragraph:
              ``(2) Multistate projects.--Of the funds made available under
            paragraph (1), the Secretary may use to carry out subsection
            (j), to remain available until expended--
                      ``(A) $1,000,000 for fiscal year 2013;
                      ``(B) $2,000,000 for fiscal year 2014;
                      ``(C) $3,000,000 for fiscal year 2015;
                      ``(D) $4,000,000 for fiscal year 2016; and
                      ``(E) $5,000,000 for fiscal year 2017.''.

    SEC. 10008. REPORT ON SPECIALTY CROP PRODUCTION BY CERTAIN FARMERS.

      (a) Report Required.--The Secretary of Agriculture shall, in
    consultation with interested persons, submit to the Committee on
    Agriculture of the House of Representatives a report on specialty crop
    production by small-holder, women, minority, and socially disadvantaged
    producers (as defined in section 355(e) of the Consolidated Farm and
    Rural Development Act (7 U.S.C. 2003(e))) throughout the United States,
    including--
              (1) an assessment of--
                      (A) the number of such producers in the United
                    States;
                      (B) the economic and social challenges such producers
                    have in increasing production capacity and value; and
                      (C) the resources needed to increase or add value to
                    the production of such producers;
              (2) a list of the resources available at the Department of
            Agriculture to provide assistance to such producers;
              (3) an evaluation of private sector resources and initiatives
            that could be used to increase production capacity and value
            for the crops grown by such producers; and
              (4) an evaluation of how geographic differences affect
            opportunities available to small-holder producers.
      (b) Updates and Completion.--The Secetary shall submit the completed
    report required under subsection (a) not later than one year after the
    date of the enactment of the Federal Agriculture Reform and Risk
    Management Act of 2012. Beginning on such date of enactment, the
    Secretary shall update the Committee on Agriculture of the House of
    Representatives every 90 days on the progress made toward completing
    the report.

    SEC. 10009. REPORT ON HONEY.

      (a) Report.--Not later than 180 days after the date of the enactment
    of this Act, the Secretary of Agriculture, in consultation with persons
    affected by the potential establishment of a Federal standard for the
    identity of honey, shall submit to the Commissioner of Food and Drugs a
    report describing how an appropriate Federal standard for the identity
    of honey would be in the interest of consumers, the honey industry, and
    United States agriculture.
      (b) Considerations.--In preparing the report required under
    subsection (a), the Secretary shall take into consideration the March,
    2006, Standard of Identity citizens petition filed with the Food and
    Drug Administration, including any current industry amendments or
    clarifications necessary to update such petition.

    SEC. 10010. BULK SHIPMENTS OF APPLES TO CANADA.

      (a) Bulk Shipment of Apples to Canada.--Section 4 of the Export Apple
    Act (7 U.S.C. 584) is amended--
              (1) by striking ``Apples in'' and inserting ``(a) Apples
            in''; and
              (2) by adding at the end the following new subsection:
      ``(b) Apples may be shipped to Canada in bulk bins without complying
    with the provisions of this Act.''.
      (b) Definition of Bulk Bin.--Section 9 of the Export Apple Act (7
    U.S.C. 589) is amended by adding at the end the following new
    paragraph:
      ``(5) The term `bulk bin' means a bin that contains a quantity of
    apples weighing more than 100 pounds.''.
      (c) Regulations.--Not later than 60 days after the date of the
    enactment of this Act, the Secretary of Agriculture shall issue
    regulations to carry out the amendments made by this section

    SEC. 10011. INCLUSION OF OLIVE OIL IN IMPORT CONTROLS UNDER THE
                        AGRICULTURAL ADJUSTMENT ACT.

      Section 8e(a) of the Agricultural Adjustment Act (7 U.S.C. 608e-1(a))
    is amended by inserting ``olive oil,'' after ``olives (other than
    Spanish-style green olives),''.

    SEC. 10012. PETITIONS TO DETERMINE ORGANISM NOT A PLANT PEST.

      (a) Petition to Determine Organism Not a Plant Pest.--The Plant
    Protection Act is amended by inserting after section 411 (7 U.S.C.
    7711) the following new section:

    ``SEC. 411A. PETITION TO DETERMINE ORGANISM NOT A PLANT PEST.

      ``(a) Petition.--A person may petition the Secretary for a
    determination that an organism that is subject to regulation by the
    Secretary as a plant pest under this Act is not a plant pest for
    purposes of this Act.
      ``(b) Review of Petition.--
              ``(1) Assessment and analysis required.--In reviewing a
            petition submitted under subsection (a), the Secretary shall
            conduct the following with respect to an organism that is the
            subject of the petition:
                      ``(A) Plant pest risk assessment.--An assessment of
                    the likelihood that such organism is a plant pest.
                      ``(B) Environmental analysis.--An analysis of any
                    likely adverse effects of such organism on the soil,
                    water, air quality, non-target organisms, and listed
                    threatened and endangered species and the critical
                    habitat of such species for the environment in which
                    such organism is likely to be grown or otherwise used
                    under the conditions specified in such petition.
              ``(2) Determination.--The Secretary shall issue a
            determination that an organism is not a plant pest for purposes
            of this Act if the Secretary determines, based on sound science
            and the plant pest risk assessment conducted under paragraph
            (1)(A), that an organism is not likely to be a plant pest.
              ``(3) Review period.--
                      ``(A) Initial review period.--Not later than one year
                    after the date on which the Secretary determines that a
                    petition submitted under subsection (a) is complete,
                    the Secretary shall complete the plant pest risk
                    assessment and the environmental analysis required
                    under paragraph (1) and issue a determination with
                    respect to such petition under paragraph (2).
                      ``(B) Extension.--The Secretary may extend the one-
                    year review period referred to in subparagraph (A) for
                    a petition for one additional period of not more than
                    180 days if the Secretary determines that additional
                    review is necessary. The Secretary shall notify the
                    person who submitted the petition, in writing, of the
                    reasons for the extension and an estimate of the time
                    period necessary to complete the review.
              ``(4) Effect of failure to meet time period.--Notwithstanding
            any other provision of law, if after completing the plant pest
            risk assessment, but not the environmental analysis, required
            under paragraph (1), the Secretary finds that there is no
            reason to believe that an organism is a plant pest and does not
            grant or deny a petition submitted under subsection (a) with
            respect to such organism within the time period required under
            paragraph (3), such organism shall be deemed not to be a plant
            pest for purposes of this Act.
              ``(5) Effect on pesticide registration.--In the case of an
            organism containing a plant-incorporated protectant (as defined
            in section 174.3 of title 40, Code of Federal Regulations, or
            any successor regulation) with respect to which an application
            for registration of the plant-incorporated protectant is
            pending under the Federal Insecticide, Fungicide, and
            Rodenticide Act (7 U.S.C. 136a et seq.), a determination made
            under paragraph (2) that an organism is not a plant pest or the
            deeming that an organism is not a plant pest under paragraph
            (4) shall not be effective until the registration of the plant-
            incorporated protectant contained in such organism is approved
            under the Federal Insecticide, Fungicide, and Rodenticide Act
            (7 U.S.C. 136a et seq.). If such registration is not approved,
            a determination made under paragraph (2) that an organism is
            not a plant pest or a deeming that an organism is not a plant
            pest under paragraph (4) shall not become effective.
              ``(6) Subsequent authority to regulate.--Notwithstanding a
            determination that an organism is not a plant pest under
            paragraph (2) or that such organism has been deemed not to be a
            plant pest under paragraph (4), the Secretary may issue a
            determination, based on information discovered after the date
            of such determination or the date on which the organism was so
            deemed and sound science, that an organism is a plant pest for
            purposes of this Act.
              ``(7) Public notice.--
                      ``(A) Notice.--The Secretary shall publish notice in
                    the Federal Register of--
                              ``(i) the grant or denial of a petition
                            submitted under subsection (a) with respect to
                            an organism; or
                              ``(ii) the deeming that such organism is not
                            a plant pest under paragraph (4).
                      ``(B) Risk assessments and environmental analysis.--
                    The Secretary shall provide to the person who submitted
                    a petition under subsection (a), and make available to
                    the public, the risk assessment and environmental
                    analysis prepared under paragraph (1) with respect to
                    such petition.
      ``(c) Applicability of Environmental Analysis Conducted for Petition
    to Determine Organism Not a Plant Pest.--
              ``(1) Exclusive analysis performed.--Notwithstanding any
            other provision of law, the environmental analysis required
            under subsection (b)(1) and as specifically described in such
            subsection shall be the only analysis or procedure regarding
            the effects on the environment of an organism that is the
            subject of a petition submitted under subsection (a) required
            or authorized by law with respect to reviewing and taking
            action on such a petition.
              ``(2) Prohibition on use of funds for other analyses.--No
            funds made available by any Act shall be obligated, expended,
            or used for any analysis or procedure regarding the effects on
            the environment of an organism conducted for purposes of this
            section other than the environmental analysis required under
            subsection (b)(1).
              ``(3) Prohibition on solicitation of funds for environmental
            analysis.--The Secretary shall not require or solicit any
            financial assistance from a person submitting a petition under
            subsection (a) for any analysis or procedure regarding the
            effects on the environment of an organism or for any other
            analysis or procedure not specifically authorized by subsection
            (b)(1).
      ``(d) Use of Data From Permits for Purposes of Petition for a
    Determination That an Organism Not a Plant Pest.--Notwithstanding any
    other provision of law, the Secretary shall use data collected under a
    permit issued by the Secretary under section 411(a) with respect to an
    organism, among other relevant data, for purposes of the review of a
    petition submitted under subsection (a) with respect to such
    organism.''.
      (b) Authority of Review for and Environmental Analysis Applicable to
    Permits.--Section 411 of the Plant Protection Act (7 U.S.C. 7711) is
    amended--
              (1) by redesignating subsections (c), (d), and (e) as
            subsections (e), (f), and (g), respectively; and
              (2) by inserting after subsection (b), the following new
            subsections:
      ``(c) Limitation on Analyses and Procedures for Permits.--
    Notwithstanding any other provision of law, the analyses or procedures
    required under the regulations issued by the Secretary under the
    Federal Plant Pest Act and continued in effect in accordance with
    section 438(c) shall be the only analyses or procedures required or
    authorized by law with respect to reviewing and taking action on an
    application for a permit submitted under subsection (a).
      ``(d) Environmental Analysis Applicable to Certain Permits.--
    Notwithstanding any other provision of law, in reviewing an application
    for a permit submitted under subsection (a) that is not excluded from
    environmental review under regulations issued by the Secretary in
    effect on the date of the enactment of this subsection (or any
    successor regulations), the Secretary shall conduct an environmental
    analysis described in section 411A(b)(1)(B). Such analysis shall be the
    only environmental analysis or procedure required or authorized by law
    with respect to reviewing and taking action on such an application.''.
      (c) Transitional Provisions.--
              (1) Completeness.--
                      (A) Completeness of petitions.--Notwithstanding any
                    other provision of law, including section 411A of the
                    Plant Protection Act (as added by subsection (a)), if
                    the Secretary of Agriculture determined that a petition
                    submitted before the date of the enactment of this
                    section under section 340.6 of title 7, Code of Federal
                    Regulations, for a determination that an organism is
                    not a plant pest was complete before such date, the
                    Secretary shall consider such petition to be complete
                    and maintain the status such petition had in the
                    process for the review of such petition on such date
                    under section 340.6 of title 7, Code of Federal
                    Regulations.
                      (B) Completeness of applications for permits.--
                    Notwithstanding any other provision of law, including
                    subsection (c) of section 411 of the Plant Protection
                    Act (7 U.S.C. 7711) (as amended by subsection (b)), if
                    the Secretary of Agriculture determined that an
                    application for a permit submitted under subsection (a)
                    of such section (7 U.S.C. 7711) before the date of the
                    enactment of this section was complete before such
                    date, the Secretary shall consider such application to
                    be complete and maintain the status such application
                    had in the process for the review of such application
                    on such date under subsection (a) of such section.
              (2) Use of environmental analysis.--
                      (A) Use of environmental analysis for petitions.--
                    Notwithstanding any other provision of law, the
                    Secretary of Agriculture shall use any environmental
                    analysis conducted for purposes of a petition submitted
                    under section 340.6 of title 7, Code of Federal
                    Regulations, before the date of the enactment of this
                    section with respect to an organism to the greatest
                    extent possible to complete the environmental analysis
                    conducted under section 411A of the Plant Protection
                    Act (as added by subsection (a)) for purposes of a
                    petition submitted under subsection (a) of such section
                    with respect to such organism.
                      (B) Use of environmental analysis for applications
                    for permits.--Notwithstanding any other provision of
                    law, the Secretary of Agriculture shall use any
                    environmental analysis conducted for purposes of an
                    application for a permit submitted under subsection (a)
                    of section 411 of the Plant Protection Act (7 U.S.C.
                    7711) before the date of the enactment of this section
                    with respect to such organism to the greatest extent
                    possible to complete the environmental analysis
                    conducted under subsection (d) of such section (as
                    amended by subsection (b)) with respect to such
                    organism.
              (3) Special consideration for review of certain petitions.--
                      (A) Pending petitions without a completed plant pest
                    risk assessment.--Notwithstanding section 411A(b)(3) of
                    the Plant Protection Act (as added by subsection (a)),
                    the Secretary of Agriculture shall determine the length
                    of the period for the review of petitions submitted
                    under section 340.6 of title 7, Code of Federal
                    Regulations, before the date of the enactment of this
                    section for which a plant pest risk assessment has not
                    been completed on or before such date of enactment.
                      (B) Pending petitions with a completed plant pest
                    risk assessment.--
                              (i) Deeming of certain petitions.--
                            Notwithstanding any other provision of law,
                            with respect to each covered petition, if the
                            Secretary finds that there is no reason to
                            believe that the organism that is the subject
                            of such covered petition is a plant pest and
                            the Secretary does not grant or deny such
                            covered petition not later than 90 days after
                            the date of the enactment of this section, such
                            organism shall be deemed not to be a plant pest
                            for purposes of the Plant Protection Act (7
                            U.S.C. 7701 et seq.).
                              (ii) Covered petition defined.--In this
                            subparagraph, the term ``covered petition''
                            means a petition submitted before the date of
                            the enactment of this section under section
                            340.6 of title 7, Code of Federal Regulations,
                            for a determination that an organism is not a
                            plant pest for which a plant pest risk
                            assessment and an environmental assessment have
                            been published and a notice and comment period
                            on each assessment has been completed as of
                            such date of enactment.
              (4) Regulations.--Not later than 180 days after the date of
            the enactment of this section, the Secretary of Agriculture
            shall issue such regulations as the Secretary considers
            necessary to carry out the amendments made by this section.

    SEC. 10013. CONSOLIDATION OF PLANT PEST AND DISEASE MANAGEMENT AND
                        DISASTER PREVENTION PROGRAMS.

      (a) Relocation of Legislative Language Relating to National Clean
    Plant Network.--Section 420 of the Plant Protection Act (7 U.S.C. 7721)
    is amended--
              (1) by redesignating subsection (e) as subsection (f); and
              (2) by inserting after subsection (d) the following new
            subsection:
      ``(e) National Clean Plant Network.--
              ``(1) In general.--The Secretary shall establish a program to
            be known as the `National Clean Plant Network' (referred to in
            this subsection as the `Program').
              ``(2) Requirements.--Under the Program, the Secretary shall
            establish a network of clean plant centers for diagnostic and
            pathogen elimination services--
                      ``(A) to produce clean propagative plant material;
                    and
                      ``(B) to maintain blocks of pathogen-tested plant
                    material in sites located throughout the United States.
              ``(3) Availability of clean plant source material.--Clean
            plant source material produced or maintained under the Program
            may be made available to--
                      ``(A) a State for a certified plant program of the
                    State; and
                      ``(B) private nurseries and producers.
              ``(4) Consultation and collaboration.--In carrying out the
            Program, the Secretary shall--
                      ``(A) consult with--
                              ``(i) State departments of agriculture; and
                              ``(ii) land-grant colleges and universities
                            and NLGCA Institutions (as those terms are
                            defined in section 1404 of the National
                            Agricultural Research, Extension, and Teaching
                            Policy Act of 1977 (7 U.S.C. 3103)); and
                      ``(B) to the extent practicable and with input from
                    the appropriate State officials and industry
                    representatives, use existing Federal or State
                    facilities to serve as clean plant centers.''.
      (b) Funding.--Subsection (f) of section 420 of the Plant Protection
    Act (7 U.S.C. 7721) (as so redesignated) is amended--
              (1) in paragraph (3), by striking ``and'' at the end;
              (2) in paragraph (4), by striking ``and each fiscal year
            thereafter.'' and inserting ``; and''; and
              (3) by adding at the end the following new paragraph:
              ``(5) $71,500,000 for fiscal year 2013 and each fiscal year
            thereafter.''.
      (c) Repeal of Existing Provision.--Section 10202 of the Food,
    Conservation, and Energy Act of 2008 (7 U.S.C. 7761) is repealed.
      (d) Clarification of Use of Funds for Technical Assistance.--Section
    420 of the Plant Protection Act (7 U.S.C. 7721) (as amended by
    subsection (a)) is amended by adding at the end the following new
    subsection:
      ``(g) Relationship to Other Law.--The use of Commodity Credit
    Corporation funds under this section to provide technical assistance
    shall not be considered an allotment or fund transfer from the
    Commodity Credit Corporation for purposes of the limit on expenditures
    for technical assistance imposed by section 11 of the Commodity Credit
    Corporation Charter Act (15 U.S.C. 714i).''.

    SEC. 10014. AUTHORITY FOR REGULATION OF PLANTS.

      (a) Regulation of Plants Under Plant Protection Act.--Subject to
    subsection (b), any living stage of a plant, including any nucleic acid
    or other genetic material as contained in such plant, shall be
    exclusively subject to regulation under statutes under which the
    Secretary of Agriculture is authorized to issue regulations with
    respect to plants, including the Plant Protection Act (7 U.S.C. 7701 et
    seq.).
      (b) Regulation of Certain Pesticidal Substances Under Federal
    Insecticide, Fungicide, and Rodenticide Act.--A pesticidal substance
    contained in a plant shall be subject to regulation as a plant-
    incorporated protectant (as defined in section 174.3 of title 40, Code
    of Federal Regulations, or any successor regulation) under the Federal
    Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.).
      (c) Requirements for Regulation of Certain Pesticidal Substances
    Under Federal Insecticide, Fungicide, and Rodenticide Act.--The
    regulations issued by the Administrator of the Environmental Protection
    Agency with respect to plant-incorporated protectants under the Federal
    Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.),
    including section 3(c)(1)(C) of such Act (7 U.S.C. 136a(c)(1)(C)),
    section 3(c)(2)(A) of such Act (7 U.S.C. 136a(c)(2)(A)), section 7 of
    such Act (7 U.S.C. 136e), section 8 of such Act (7 U.S.C. 136f),
    section 9 of such Act (7 U.S.C. 136g), and section 17 of such Act (7
    U.S.C. 136o), shall--
              (1) be based on sound science;
              (2) use the least burdensome requirements; and
              (3) provide for exemptions from the requirements otherwise
            applicable to pesticides that are not plant-incorporated
            protectants.
      (d) Definitions.--In this section:
              (1) Plant.--The term ``plant'' has the meaning given such
            term in section 403 of the Plant Protection Act (7 U.S.C.
            7702).
              (2) Pesticidal substance.--The term ``pesticidal substance''
            means a substance or a mixture of substances that--
                      (A) is contained in any living stage of a plant
                    that--
                              (i) as of the date of the enactment of this
                            subsection, is subject to part 340 of title 7,
                            Code of Federal Regulations; or
                              (ii) has been determined not to be a plant
                            pest under section 411A(b)(2) or deemed not to
                            be a plant pest under section 411A(b)(4); and
                      (B) is intended for preventing, destroying,
                    repelling, or mitigating any pest.

    SEC. 10015. REPORT TO CONGRESS ON REGULATION OF BIOTECHNOLOGY.

      Not later than one year after the date of the enactment of this
    section, the Secretary, in consultation with the Secretary of Health
    and Human Services and the Administrator of the Environmental
    Protection Agency, shall submit to Congress a report on the measures
    taken and proposed to be taken by the Secretaries and the Administrator
    to provide for balanced and appropriate regulatory oversight of
    agricultural biotechnology products, by--
              (1) reducing regulatory burdens on research conducted by
            academic institutions, small businesses, and public entities in
            developing lower-cost plant and animal sources of food, feed,
            fuel, and fiber developed through biotechnology, with special
            emphasis on minor use crops, orphan crops, and sources of
            protein;
              (2) identifying categories of products developed through
            biotechnology for which a history of safe use has been
            established and providing with respect to such products reduced
            data requirements, expedited review periods, exemptions from
            regulation, and other measures, as appropriate, based on sound
            science; and
              (3) developing and implementing a cohesive national policy
            for the low-level presence of agronomic biotechnology material
            in crops, including grain and other commodity crops, for food,
            feed, and processing.

    SEC. 10016. PESTICIDE REGISTRATION IMPROVEMENT.

      (a) Maintenance Fees.--
              (1) Fees.--Section 4(i) of the Federal Insecticide,
            Fungicide, and Rodenticide Act (7 U.S.C. 136a-1(i)) is
            amended--
                      (A) in paragraph (5)--
                              (i) in subparagraph (C), by striking
                            ``aggregate amount of'' and all that follows
                            through the end of the subparagraph and
                            inserting ``aggregate amount of $27,800,000 for
                            each of fiscal years 2013 through 2017.'';
                              (ii) in subparagraph (D)--
                                      (I) in clause (i), by striking
                                    ``shall be'' and all that follows
                                    through the semicolon and inserting
                                    ``shall be $115,500 for each of fiscal
                                    years 2013 through 2017;''; and
                                      (II) in clause (ii), by striking
                                    ``shall be'' and all that follows
                                    through the period and inserting
                                    ``shall be $184,800 for each of fiscal
                                    years 2013 through 2017.'';
                              (iii) in subparagraph (E)(i)--
                                      (I) in subclause (I), by striking
                                    ``shall be'' and all that follows
                                    through the semicolon and inserting
                                    ``shall be $70,600 for each of fiscal
                                    years 2013 through 2017;''; and
                                      (II) in subclause (II), by striking
                                    ``shall be'' and all that follows
                                    through the period and inserting
                                    ``shall be $122,100 for each of fiscal
                                    years 2013 through 2017.'';
                              (iv) by redesignating subparagraphs (F), (G),
                            and (H) as subparagraphs (G), (H), and (I),
                            respectively;
                              (v) by inserting after subparagraph (E), the
                            following new subparagraph:
                      ``(F) Fee reduction for certain small businesses.--
                              ``(i) Waiver.--Except as provided in clause
                            (ii), the Administrator shall waive 25 percent
                            of the fee under this paragraph applicable to
                            the first registration of any qualified small
                            business entity under this paragraph.
                              ``(ii) Limitation.--The Administrator shall
                            not grant a waiver under clause (i) to a
                            qualified small business entity if the
                            Administrator determines that the entity has
                            been formed or manipulated primarily for the
                            purpose of qualifying for the waiver.
                              ``(iii) Definition.--For purposes of this
                            subparagraph, the term `qualified small
                            business entity' means a corporation,
                            partnership, or unincorporated business that--
                                      ``(I) has 500 or fewer employees;
                                      ``(II) during the 3-year period prior
                                    to the most recent maintenance fee
                                    billing cycle, had an average annual
                                    global gross revenue from all sources
                                    that did not exceed $10,000,000; and
                                      ``(III) holds not more than 5
                                    pesticide registrations under this
                                    paragraph.'';
                              (vi) in subparagraph (G) (as redesignated by
                            clause (iv)), by striking ``paragraph (3)'' and
                            inserting ``this paragraph''; and
                              (vii) in subparagraph (I) (as so
                            redesignated), by striking ``2012'' and
                            inserting ``2017'';
                      (B) in paragraph (6)--
                              (i) by striking ``2014'' and inserting
                            ``2019''; and
                              (ii) by striking ``paragraphs (1) through
                            (5)'' and inserting ``paragraph (5)'';
                      (C) by striking paragraphs (1), (2), (3), (4), and
                    (7); and
                      (D) by redesignating paragraphs (5) and (6) as
                    paragraphs (1) and (2), respectively.
              (2) Extension of prohibition on tolerance fees.--Section
            408(m)(3) of the Federal Food, Drug, and Cosmetic Act (21
            U.S.C. 346a(m)(3)) is amended by striking ``September 30,
            2012'' and inserting ``September 30, 2017''.
              (3) Reregistration and expedited processing fund.--
                      (A) Source and use.--Section 4(k)(2)(A) of the
                    Federal Insecticide, Fungicide, and Rodenticide Act (7
                    U.S.C. 136a-1(k)(2)(A)) is amended--
                              (i) by inserting ``, to enhance the
                            information systems capabilities to improve the
                            tracking of pesticide registration decisions,''
                            after ``paragraph (3)'' each place it appears;
                            and
                              (ii) in clause (i)--
                                      (I) by inserting ``offset'' before
                                    ``the costs of reregistration''; and
                                      (II) by striking ``in the same
                                    portion as appropriated funds''.
                      (B) Expedited processing of similar applications.--
                    Section 4(k)(3)(A) of the Federal Insecticide,
                    Fungicide, and Rodenticide Act (7 U.S.C. 136a-
                    1(k)(3)(A)) is amended--
                              (i) in the matter preceding clause (i), by
                            striking ``2008 through 2012, between 1/8 and
                            1/7'' and inserting ``2013 through 2017,
                            between 1/9 and 1/8''; and
                              (ii) in clause (i), by striking ``new''.
                      (C) Enhancements of information technology systems
                    for improvement in review of pesticide applications.--
                    Section 4(k) of the Federal Insecticide, Fungicide, and
                    Rodenticide Act (7 U.S.C. 136a-1(k)) is amended--
                              (i) by redesignating paragraphs (4) and (5)
                            as paragraphs (5) and (6), respectively;
                              (ii) by inserting after paragraph (3) the
                            following new paragraph:
              ``(4) Enhancements of information technology systems for
            improvement in review of pesticide applications.--
                      ``(A) In general.--For each of fiscal years 2013
                    through 2017, the Administrator shall use not more than
                    $800,000 of the amounts made available to the
                    Administrator in the Reregistration and Expedited
                    Processing Fund for the activities described in
                    subparagraph (B).
                      ``(B) Activities.--The Administrator shall use
                    amounts made available from such Fund to improve the
                    information systems capabilities for the Office of
                    Pesticide Programs to enhance tracking of pesticide
                    registration decisions, which shall include--
                              ``(i) the electronic tracking of--
                                      ``(I) registration submissions; and
                                      ``(II) the status of conditional
                                    registrations;
                              ``(ii) enhancing the database for information
                            regarding endangered species assessments for
                            registration review;
                              ``(iii) implementing the capability to
                            electronically review labels submitted with
                            registration actions; and
                              ``(iv) acquiring and implementing the
                            capability to electronically assess and
                            evaluate confidential statements of formula
                            submitted with registration actions.''; and
                              (iii) in the first sentence of paragraph (6)
                            (as redesignated by clause (i)), by striking
                            ``to carry out the goals established under
                            subsection (l)'' and inserting ``for the
                            purposes described in paragraphs (2), (3), and
                            (4) and to carry out the goals established
                            under subsection (l)''.
      (b) Pesticide Registration Service Fees.--
              (1) Amount of fees.--Section 33(b) of the Federal
            Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136w-
            8(b)) is amended--
                      (A) in paragraph (3)--
                              (i) in subparagraph (A), by striking
                            ``Pesticide Registration Improvement Renewal
                            Act'' and inserting ``Federal Agriculture
                            Reform and Risk Management Act of 2012''; and
                              (ii) in subparagraph (B), by striking
                            ``S10409'' and all that follows through the
                            period and inserting ``S___ through S___, dated
                            ___.'';
                      (B) in paragraph (6)--
                              (i) in subparagraph (A)--
                                      (I) by striking ``October 1, 2008''
                                    and inserting ``October 1, 2013''; and
                                      (II) by striking ``September 30,
                                    2010'' and inserting ``September 30,
                                    2015''; and
                              (ii) in subparagraph (B)--
                                      (I) by striking ``October 1, 2010''
                                    and inserting ``October 1, 2015''; and
                                      (II) by striking ``September 30,
                                    2010'' and inserting ``September 30,
                                    2015''; and
                      (C) in paragraph (8)(C)(ii)--
                              (i) in subclause (I), by striking ``or'' at
                            the end;
                              (ii) in subclause (II), by striking the
                            period at the end and inserting ``; or''; and
                              (iii) by adding at the end the following new
                            subclause:
                                      ``(III) on the basis that the
                                    Administrator rejected the application
                                    under subsection (f)(4)(B).''.
              (2) Pesticide registration fund.--Section 33(c)(3)(B) of the
            Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C.
            136w-8(c)(3)(B)) is amended--
                      (A) in clause (i), by striking ``2008 through 2012''
                    and inserting ``2013 through 2017'';
                      (B) in clause (ii), by striking ``grants'' and all
                    that follows through the end of clause (ii) and
                    inserting ``grants, for each of fiscal years 2013
                    through 2017, $500,000.''; and
                      (C) in clause (iii), by striking ``2008 through
                    2012'' and inserting ``2013 through 2017''.
              (3) Assessment of fees.--Section 33(d) of the Federal
            Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136w-
            8(d)) is amended--
                      (A) in paragraph (2), by striking ``2002'' each place
                    it appears and inserting ``2012'';
                      (B) by striking paragraph (4); and
                      (C) by redesignating paragraph (5) as paragraph (4).
              (4) Reforms to reduce decision time review periods.--Section
            33(e) of the Federal Insecticide, Fungicide, and Rodenticide
            Act (7 U.S.C. 136w-8(e)) is amended by striking ``Pesticide
            Registration Improvement Act of 2003'' and inserting ``Federal
            Agriculture Reform and Risk Management Act of 2012''.
              (5) Decision time review periods.--Section 33(f) of the
            Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C.
            136w-8(f)) is amended--
                      (A) in paragraph (1), by striking ``Pesticide
                    Registration Improvement Renewal Act'' and inserting
                    ``Federal Agriculture Reform and Risk Management Act of
                    2012'';
                      (B) in paragraph (2), by striking ``S10409'' and all
                    that follows through the period and inserting ``S__
                    through S___, dated ___.''; and
                      (C) in paragraph (4)--
                              (i) in subparagraph (A), by inserting ``and
                            fee'' before the period; and
                              (ii) in subparagraph (B)--
                                      (I) in the heading, by striking
                                    ``Completeness of application'' and
                                    inserting ``Initial content and
                                    preliminary technical screenings'';
                                      (II) in clause (i)--
                                              (aa) by striking ``Not
                                            later'' and inserting the
                                            following:
                                      ``(I) Not later''.
                                              (bb) by adding at the end the
                                            following new subclause:
                                      ``(II) After conducting the initial
                                    content screening described in
                                    subclause (I) and in accordance with
                                    clause (iv), the Administrator shall
                                    conduct a preliminary technical
                                    screening--
                                              ``(aa) not later than 45 days
                                            after the date on which the
                                            decision time review period
                                            begins (for applications with
                                            decision time review periods of
                                            not more than 180 days); and
                                              ``(bb) not later than 90 days
                                            after the date on which the
                                            decision time review period
                                            begins (for applications with
                                            decision time review periods
                                            greater than 180 days).'';
                                      (III) in clause (ii) by striking
                                    ``under clause (i)'' and all that
                                    follows through the period and
                                    inserting ``at any time before the
                                    Administrator completes the preliminary
                                    technical screening under clause
                                    (i)(II) that the application failed the
                                    initial content or preliminary
                                    technical screening and the applicant
                                    does not correct such failure before
                                    the date that is 10 business days after
                                    the applicant receives a notification
                                    of the failure, the Administrator shall
                                    reject the application. The
                                    Administrator shall make every effort
                                    to provide a written notification of
                                    such rejection during the 10-day period
                                    that begins on the date the
                                    Administrator completes the preliminary
                                    technical screening.'';
                                      (IV) in clause (iii)--
                                              (aa) in the heading, by
                                            inserting ``initial content''
                                            before ``screening'' ;
                                              (bb) in the matter preceding
                                            subclause (I), by inserting
                                            ``content'' after ``initial'';
                                            and
                                              (cc) in subclause (II), by
                                            striking ``contains'' and
                                            inserting ``appears to
                                            contain''; and
                                      (V) by adding at the end the
                                    following new clause:
                              ``(iv) Requirements of preliminary technical
                            screening.--In conducting a preliminary
                            technical screening of an application, the
                            Administrator shall determine if--
                                      ``(I) the application and the data
                                    and information submitted with such
                                    application are accurate and complete;
                                    and
                                      ``(II) the application, data, and
                                    information are consistent with the
                                    proposed labeling and any proposal for
                                    a tolerance or exemption from the
                                    requirement for a tolerance under
                                    section 408 of the Federal Food, Drug,
                                    and Cosmetic Act, and are such that,
                                    subject to full review under the
                                    standards of this Act, could result in
                                    the granting of the application.''.
              (6) Reports.--Section 33(k) of the Federal Insecticide,
            Fungicide, and Rodenticide Act (7 U.S.C. 136w-8(k)) is
            amended--
                      (A) in paragraph (1), by striking ``March 1, 2014''
                    and inserting ``March 1, 2017''; and
                      (B) in paragraph (2)--
                              (i) in subparagraph (A)--
                                      (I) in clause (vi), by striking
                                    ``and'' at the end;
                                      (II) in clause (vii), by inserting
                                    ``and'' at the end; and
                                      (III) by adding at the end the
                                    following new clause:
                              ``(viii) the number of extensions of decision
                            time review periods agreed to under subsection
                            (f)(5) along with a description of the reason
                            that the Administrator was unable to make a
                            decision within the initial decision time
                            review period;'';
                              (ii) in subparagraph (E), by striking ``and''
                            at the end;
                              (iii) in subparagraph (F), by striking the
                            period and inserting a semicolon; and
                              (iv) by adding at the end the following new
                            subparagraphs:
                      ``(G) a review of the progress made toward--
                              ``(i) carrying out section 4(k)(4) and the
                            amounts from the Reregistration and Expedited
                            Processing Fund used for the purposes described
                            in such section;
                              ``(ii) implementing systems for the
                            electronic tracking of registration submissions
                            by December 31, 2013;
                              ``(iii) implementing a system for tracking
                            the status of conditional registrations,
                            including making non-confidential information
                            related to such conditional registrations
                            publicly available by December 31, 2013;
                              ``(iv) implementing enhancements to the
                            endangered species knowledge database,
                            including making non-confidential information
                            related to such database publicly available;
                              ``(v) implementing the capability to
                            electronically submit and review labels
                            submitted with registration actions;
                              ``(vi) acquiring and implementing the
                            capability to electronically assess and
                            evaluate confidential statements of formula
                            submitted with registration actions by December
                            31, 2014; and
                              ``(vii) facilitating public participation in
                            certain registration actions and the
                            registration review process by providing
                            electronic notification to interested parties
                            of additions to the public docket;
                      ``(H) the number of applications rejected by the
                    Administrator under the initial content and preliminary
                    technical screening conducted under subsection (f)(4);
                      ``(I) a review of the progress made in updating the
                    Pesticide Incident Data System, including progress
                    toward making the information contained in such System
                    available to the public (as the Administrator
                    determines is appropriate); and
                      ``(J) an assessment of the public availability of
                    summary pesticide usage data.''.
              (7) Termination of effectiveness.--Section 33(m) of the
            Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C.
            136w-8(m)) is amended--
                      (A) in paragraph (1), by striking ``2012'' and
                    inserting ``2017''; and
                      (B) in paragraph (2)--
                              (i) in subparagraph (A)--
                                      (I) in the heading, by striking
                                    ``2013'' and inserting ``2018'';
                                      (II) by striking ``2013,'' and
                                    inserting ``2018,''; and
                                      (III) by striking ``September 30,
                                    2012'' and inserting ``September 30,
                                    2017'';
                              (ii) in subparagraph (B)--
                                      (I) in the heading by striking
                                    ``2014'' and inserting ``2019'';
                                      (II) by striking ``2014,'' and
                                    inserting ``2019,''; and
                                      (III) by striking ``September 30,
                                    2012'' and inserting ``September 30,
                                    2017'';
                              (iii) in subparagraph (C)--
                                      (I) in the heading by striking
                                    ``2014'' and inserting ``2019''; and
                                      (II) by striking ``September 30,
                                    2014'' and inserting ``September 30,
                                    2019''; and
                              (iv) in subparagraph (D), by striking
                            ``2012'' each place it appears and inserting
                            ``2017''.

    SEC. 10017. MODIFICATION, CANCELLATION, OR SUSPENSION ON BASIS OF A
                        BIOLOGICAL OPINION.

      (a) In General.--Except in the case of a voluntary request from a
    pesticide registrant to amend a registration under section 3 of the
    Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136a), a
    registration of a pesticide may be modified, canceled, or suspended on
    the basis of the implementation of a Biological Opinion issued by the
    National Marine Fisheries Service or the United States Fish and
    Wildlife Service prior to the date of completion of the study referred
    to in subsection (b), or January 1, 2014, whichever is earlier, only
    if--
              (1) the modification, cancellation, or suspension is
            undertaken pursuant to section 6 of such Act (7 U.S.C. 136d);
            and
              (2) the Biological Opinion complies with the recommendations
            contained in the study referred to in subsection (b).
      (b) National Academy of Sciences Study.--The study commissioned by
    the Administrator of the Environmental Protection Agency on March 10,
    2011, shall include, at a minimum, each of the following:
              (1) A formal, independent, and external peer review,
            consistent with Office of Management and Budget policies, of
            each Biological Opinion described in subsection (a).
              (2) Assessment of economic impacts of measures or
            alternatives recommended in each such Biological Opinion.
              (3) An examination of the specific scientific and procedural
            questions and issues pertaining to economic feasibility
            contained in the June 23, 2011 letter sent to the Administrator
            (and other Federal officials) by the Chairmen of the Committee
            on Agriculture, the Committee on Natural Resources, and the
            Subcommittee on Interior, Environment, and Related Agencies of
            the Committee on Appropriations, of the House of
            Representatives.

    SEC. 10018. USE AND DISCHARGES OF AUTHORIZED PESTICIDES.

      (a) Short Title.--This section may be cited as the ``Reducing
    Regulatory Burdens Act of 2012''.
      (b) Use of Authorized Pesticides.--Section 3(f) of the Federal
    Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136a(f)) is
    amended by adding at the end the following:
              ``(5) Use of authorized pesticides.--Except as provided in
            section 402(s) of the Federal Water Pollution Control Act, the
            Administrator or a State may not require a permit under such
            Act for a discharge from a point source into navigable waters
            of a pesticide authorized for sale, distribution, or use under
            this Act, or the residue of such a pesticide, resulting from
            the application of such pesticide.''.
      (c) Discharges of Pesticides.--Section 402 of the Federal Water
    Pollution Control Act (33 U.S.C. 1342) is amended by adding at the end
    the following:
      ``(s) Discharges of Pesticides.--
              ``(1) No permit requirement.--Except as provided in paragraph
            (2), a permit shall not be required by the Administrator or a
            State under this Act for a discharge from a point source into
            navigable waters of a pesticide authorized for sale,
            distribution, or use under the Federal Insecticide, Fungicide,
            and Rodenticide Act, or the residue of such a pesticide,
            resulting from the application of such pesticide.
              ``(2) Exceptions.--Paragraph (1) shall not apply to the
            following discharges of a pesticide or pesticide residue:
                      ``(A) A discharge resulting from the application of a
                    pesticide in violation of a provision of the Federal
                    Insecticide, Fungicide, and Rodenticide Act that is
                    relevant to protecting water quality, if--
                              ``(i) the discharge would not have occurred
                            but for the violation; or
                              ``(ii) the amount of pesticide or pesticide
                            residue in the discharge is greater than would
                            have occurred without the violation.
                      ``(B) Stormwater discharges subject to regulation
                    under subsection (p).
                      ``(C) The following discharges subject to regulation
                    under this section:
                              ``(i) Manufacturing or industrial effluent.
                              ``(ii) Treatment works effluent.
                              ``(iii) Discharges incidental to the normal
                            operation of a vessel, including a discharge
                            resulting from ballasting operations or vessel
                            biofouling prevention.''.

    SEC. 10019. INCLUSION OF BED BUGS IN DEFINITION OF VECTOR ORGANISMS.

      (a) Definition.--Section 2(oo) of the Federal Insecticide, Fungicide,
    and Rodenticide Act (7 U.S.C. 136(oo)) is amended by inserting ``bed
    bugs,'' after ``cockroaches,''.
      (b) Efficacy Data for Exempted Pesticides.--Section 25(b) of the
    Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136w(b))
    is amended by adding at the end the following new sentences:
    ``Notwithstanding the exemption of a pesticide under this subsection,
    the Administrator shall require the submission of efficacy data (and
    evaluate such data) if the pesticide is labeled for or proposed to be
    labeled for the control of a pest of public health significance. The
    Administrator shall not permit the sale or distribution of any product
    that is marketed, distributed, or sold with a claim that such product
    will control a public health pest if the efficacy data submitted under
    this subsection does not support such claim.''.

    SEC. 10020. EFFECTIVE DATE.

      (a) In General.--Except as provided in subsection (b), this title and
    the amendments made by this title take effect on October 1, 2012.
      (b) Exceptions.--The following provisions of this title shall take
    effect on the date of the enactment of this Act:
              (1) Section 10008.
              (2) Section 10009.
              (3) Section 10010.

                            TITLE XI--CROP INSURANCE

    SEC. 11001. INFORMATION SHARING.

      Section 502(c) of the Federal Crop Insurance Act (7 U.S.C. 1502(c))
    is amended by adding at the end the following new paragraph:
              ``(4) Information.--
                      ``(A) Request.--Subject to subparagraph (B), the Farm
                    Service Agency shall, in a timely manner, provide to an
                    agent or an approved insurance provider authorized by
                    the producer any information (including Farm Service
                    Agency Form 578s (or any successor form) or maps (or
                    any corrections to those forms or maps) that may assist
                    the agent or approved insurance provider in insuring
                    the producer under a policy or plan of insurance under
                    this subtitle.
                      ``(B) Privacy.--Except as provided in subparagraph
                    (C), an agent or approved insurance provider that
                    receives the information of a producer pursuant to
                    subparagraph (A) shall treat the information in
                    accordance with paragraph (1).
                      ``(C) Sharing.--Nothing in this section prohibits the
                    sharing of the information of a producer pursuant to
                    subparagraph (A) between the agent and the approved
                    insurance provider of the producer.''.

    SEC. 11002. PUBLICATION OF INFORMATION ON VIOLATIONS OF PROHIBITION ON
                        PREMIUM ADJUSTMENTS.

      Section 508(a)(9) of the Federal Crop Insurance Act (7 U.S.C.
    1508(a)(9)) is amended by adding at the end the following new
    subparagraph:
                      ``(C) Publication of violations.--
                              ``(i) Publication required.--Subject to
                            clause (ii), the Corporation shall publish in a
                            timely manner on the website of the Risk
                            Management Agency information regarding each
                            violation of this paragraph, including any
                            sanctions imposed in response to the violation,
                            in sufficient detail so that the information
                            may serve as effective guidance to approved
                            insurance providers, agents, and producers.
                              ``(ii) Protection of privacy.--In providing
                            information under clause (i) regarding
                            violations of this paragraph, the Corporation
                            shall redact the identity of the persons and
                            entities committing the violations in order to
                            protect their privacy.''.

    SEC. 11003. SUPPLEMENTAL COVERAGE OPTION.

      (a) Availability of Supplemental Coverage Option.--Paragraph (3) of
    section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is
    amended to read as follows:
              ``(3) Yield and loss basis options.--A producer shall have
            the option of purchasing additional coverage based on--
                      ``(A)(i) an individual yield and loss basis; or
                      ``(ii) an area yield and loss basis;
                      ``(B) an individual yield and loss basis,
                    supplemented with coverage based on an area yield and
                    loss basis to cover a part of the deductible under the
                    individual yield and loss policy, as described in
                    paragraph (4)(C); or
                      ``(C) a margin basis alone or in combination with the
                    coverages available in subparagraph (A) or (B).''.
      (b) Level of Coverage.--Paragraph (4) of section 508(c) of the
    Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended to read as
    follows:
              ``(4) Level of coverage.--
                      ``(A) Dollar denomination and percentage of yield.--
                    Except as provided in subparagraph (C), the level of
                    coverage--
                              ``(i) shall be dollar denominated; and
                              ``(ii) may be purchased at any level not to
                            exceed 85 percent of the individual yield or 95
                            percent of the area yield (as determined by the
                            Corporation).
                      ``(B) Information.--The Corporation shall provide
                    producers with information on catastrophic risk and
                    additional coverage in terms of dollar coverage (within
                    the allowable limits of coverage provided in this
                    paragraph).
                      ``(C) Supplemental coverage option.--
                              ``(i) In general.--Notwithstanding
                            subparagraph (A), in the case of the
                            supplemental coverage option described in
                            paragraph (3)(B), the Corporation shall offer
                            producers the opportunity to purchase coverage
                            in combination with a policy or plan of
                            insurance offered under this subtitle that
                            would allow indemnities to be paid to a
                            producer equal to a part of the deductible
                            under the policy or plan of insurance--
                                      ``(I) at a county-wide level to the
                                    fullest extent practicable; or
                                      ``(II) in counties that lack
                                    sufficient data, on the basis of such
                                    larger geographical area as the
                                    Corporation determines to provide
                                    sufficient data for purposes of
                                    providing the coverage.
                              ``(ii) Trigger.--Coverage offered under
                            paragraph (3)(B) and clause (i) shall be
                            triggered only if the losses in the area exceed
                            10 percent of normal levels (as determined by
                            the Corporation).
                              ``(iii) Coverage.--Subject to the trigger
                            described in clause (ii), coverage offered
                            under paragraph (3)(B) and clause (i) shall not
                            exceed the difference between--
                                      ``(I) 90 percent; and
                                      ``(II) the coverage level selected by
                                    the producer for the underlying policy
                                    or plan of insurance.
                              ``(iv) Ineligible crops and acres.--Crops for
                            which the producer has elected under section
                            1107(c)(1) of the Federal Agriculture Reform
                            and Risk Management Act of 2012 to receive
                            revenue loss coverage and acres that are
                            enrolled in the stacked income protection plan
                            under section 508B shall not be eligible for
                            supplemental coverage under this subparagraph.
                              ``(v) Calculation of premium.--
                            Notwithstanding subsection (d), the premium for
                            coverage offered under paragraph (3)(B) and
                            clause (i) shall--
                                      ``(I) be sufficient to cover
                                    anticipated losses and a reasonable
                                    reserve; and
                                      ``(II) include an amount for
                                    operating and administrative expenses
                                    established in accordance with
                                    subsection (k)(4)(F).''.
      (c) Payment of Portion of Premium by Corporation.--Section 508(e)(2)
    of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended by
    adding at the end the following new subparagraph:
                      ``(H) In the case of the supplemental coverage option
                    authorized in subsection (c)(4)(C), the amount shall be
                    equal to the sum of--
                              ``(i) 70 percent of the additional premium
                            associated with the coverage; and
                              ``(ii) the amount determined under subsection
                            (c)(4)(C)(vi)(II), subject to subsection
                            (k)(4)(F), for the coverage to cover operating
                            and administrative expenses.''.
      (d) Effective Date.--The Federal Crop Insurance Corporation shall
    begin to provide additional coverage based on an individual yield and
    loss basis, supplemented with coverage based on an area yield and loss
    basis, not later than for the 2013 crop year.

    SEC. 11004. PREMIUM AMOUNTS FOR CATASTROPHIC RISK PROTECTION.

      Subparagraph (A) of section 508(d)(2) of the Federal Crop Insurance
    Act (7 U.S.C. 1508(d)(2)) is amended to read as follows:
                      ``(A) In the case of catastrophic risk protection,
                    the amount of the premium established by the
                    Corporation for each crop for which catastrophic risk
                    protection is available shall be reduced by the
                    percentage equal to the difference between the average
                    loss ratio for the crop and 100 percent, plus a
                    reasonable reserve.''.

    SEC. 11005. REPEAL OF PERFORMANCE-BASED DISCOUNT.

      (a) Repeal.--Section 508(d) of the Federal Crop Insurance Act (7
    U.S.C. 1508(d)) is amended--
              (1) by striking paragraph (3); and
              (2) by redesignating paragraph (4) as paragraph (3).
      (b) Conforming Amendment.--Section 508(a)(9)(B) of the Federal Crop
    Insurance Act (7 U.S.C. 1508(a)(9)(B)) is amended--
              (1) by inserting ``or'' at the end of clause (i);
              (2) by striking clause (ii); and
              (3) by redesignating clause (iii) as clause (ii).

    SEC. 11006. PERMANENT ENTERPRISE UNIT SUBSIDY.

      Subparagraph (A) of section 508(e)(5) of the Federal Crop Insurance
    Act (7 U.S.C. 1508(e)(5)) is amended to read as follows:
                      ``(A) In general.--The Corporation may pay a portion
                    of the premiums for plans or policies of insurance for
                    which the insurable unit is defined on a whole farm or
                    enterprise unit basis that is higher than would
                    otherwise be paid in accordance with paragraph (2).''.

    SEC. 11007. ENTERPRISE UNITS FOR IRRIGATED AND NONIRRIGATED CROPS.

      Section 508(e)(5) of the Federal Crop Insurance Act (7 U.S.C.
    1508(e)(5)) is amended by adding at the end the following new
    subparagraph:
                      ``(D) Nonirrigated crops.--Beginning with the 2013
                    crop year, the Corporation shall make available
                    separate enterprise units for irrigated and
                    nonirrigated acreage of crops in counties.''.

    SEC. 11008. DATA COLLECTION.

      Section 508(g)(2) of the Federal Crop Insurance Act (7 U.S.C.
    1508(g)(2)) is amended by adding at the end the following new
    subparagraph:
                      ``(E) Sources of yield data.--To determine yields
                    under this paragraph, the Corporation--
                              ``(i) shall use county data collected by the
                            Risk Management Agency or the National
                            Agricultural Statistics Service, or both; or
                              ``(ii) if sufficient county data is not
                            available, may use other data considered
                            appropriate by the Secretary.''.

    SEC. 11009. ADJUSTMENT IN ACTUAL PRODUCTION HISTORY TO ESTABLISH
                        INSURABLE YIELDS.

      Section 508(g)(4)(B) of the Federal Crop Insurance Act (7 U.S.C.
    1508(g)(4)(B)) is amended by striking ``60'' each place it appears and
    inserting ``70''.

    SEC. 11010. SUBMISSION AND REVIEW OF POLICIES.

      Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h))
    is amended--
              (1) in paragraph (1)--
                      (A) by redesignating subparagraphs (A) and (B) as
                    clauses (i) and (ii), respectively, and indenting
                    appropriately;
                      (B) by striking ``(1) In general.--In addition'' and
                    inserting the following:
              ``(1) Authority to submit.--
                      ``(A) In general.--In addition''; and
                      (C) by adding at the end the following new
                    subparagraph:
                      ``(B) Review and submission by corporation.--The
                    Corporation shall review any policy developed under
                    section 522(c) or any pilot program developed under
                    section 523 and submit the policy or program to the
                    Board under this subsection if the Corporation, at the
                    sole discretion of the Corporation, finds that the
                    policy or program--
                              ``(i) will likely result in a viable and
                            marketable policy consistent with this
                            subsection;
                              ``(ii) would provide crop insurance coverage
                            in a significantly improved form; and
                              ``(iii) adequately protects the interests of
                            producers.''; and
              (2) in paragraph (3)--
                      (A) by striking ``A policy'' and inserting the
                    following:
                      ``(A) In general.--A policy''; and
                      (B) by adding at the end the following new
                    subparagraph:
                      ``(B) Specified review and approval priorities.--In
                    reviewing policies and other materials submitted to the
                    Board under this subsection for approval, the Board--
                              ``(i) shall make the development and approval
                            of a revenue policy for peanut producers a
                            priority so that a revenue policy is available
                            to peanut producers in time for the 2013 crop
                            year;
                              ``(ii) shall make the development and
                            approval of a downed rice policy and margin
                            coverage policy for rice producers a priority
                            so that each policy is available to rice
                            producers in time for the 2013 crop year; and
                              ``(iii) may approve a submission that is made
                            pursuant to this subsection that would,
                            beginning with the 2013 crop year, allow
                            producers that purchase policies in accordance
                            with subsection (e)(5)(A) to separate
                            enterprise units by risk rating for acreage of
                            crops in counties.''.

    SEC. 11011. EQUITABLE RELIEF FOR SPECIALTY CROP POLICIES.

      Section 508(k)(8)(E) of the Federal Crop Insurance Act of 1938 (7
    U.S.C. 1508(k)(8)(E)) is amended by adding at the end the following new
    clause:
                              ``(iii) Equitable relief for specialty crop
                            policies.--
                                      ``(I) In general.--For each of the
                                    2011 through 2015 reinsurance years, in
                                    addition to the total amount of funding
                                    for reimbursement of administrative and
                                    operating costs that is otherwise
                                    required to be made available in each
                                    such reinsurance year pursuant to an
                                    agreement entered into by the
                                    Corporation, the Corporation shall use
                                    $41,000,000 to provide additional
                                    reimbursement with respect to eligible
                                    insurance contracts for any
                                    agricultural commodity that is not
                                    eligible for a benefit under subtitles
                                    A, B or C of title I of the Federal
                                    Agriculture Reform and Risk Management
                                    Act of 2012.
                                      ``(II) Treatment.--Additional
                                    reimbursements made under this clause
                                    shall be included as part of the base
                                    level of administrative and operating
                                    expense reimbursement to which any
                                    limit on compensation to persons
                                    involved in the direct sale and service
                                    of any eligible crop insurance contract
                                    required under an agreement entered
                                    into by the Corporation is applied.
                                      ``(III) Rule of construction.--
                                    Nothing in this clause shall be
                                    construed as statutory assent to the
                                    limit described in subclause (II).''.

    SEC. 11012. BUDGET LIMITATIONS ON RENEGOTIATION OF THE STANDARD
                        REINSURANCE AGREEMENT.

      Section 508(k)(8) of the Federal Crop Insurance Act of 1938 (7 U.S.C.
    1508(k)(8)) is amended by adding at the end the following new
    subparagraph:
                      ``(F) Budget.--
                              ``(i) In general.--The Board shall ensure
                            that any Standard Reinsurance Agreement
                            negotiated under subparagraph (A)(ii), as
                            compared to the previous Standard Reinsurance
                            Agreement--
                                      ``(I) to the maximum extent
                                    practicable, shall be budget neutral;
                                    and
                                      ``(II) in no event, may significantly
                                    depart from budget neutrality.
                              ``(ii) Use of savings.--To the extent that
                            any budget savings is realized in the
                            renegotiation of a Standard Reinsurance
                            Agreement under subparagraph (A)(ii), and the
                            savings are determined not to be a significant
                            departure from budget neutrality under clause
                            (i), the savings shall be used to increase the
                            obligations of the Corporation under
                            subsections (e)(2) or (k)(4) or section 523.''.

    SEC. 11013. CROP PRODUCTION ON NATIVE SOD.

      (a) Federal Crop Insurance.--Section 508(o) of the Federal Crop
    Insurance Act (7 U.S.C. 1508(o)) is amended--
              (1) in paragraph (1)(B), by inserting ``, or the producer
            cannot substantiate that the ground has ever been tilled,''
            after ``tilled'';
              (2) in paragraph (2)--
                      (A) in the paragraph heading, by striking
                    ``Ineligibility for'' and inserting ``Reduction in'';
                    and
                      (B) in subparagraph (A), by striking ``for benefits
                    under--'' and all that follows through the period at
                    the end and inserting ``for--
                              ``(i) a portion of crop insurance premium
                            subsidies under this subtitle in accordance
                            with paragraph (3);
                              ``(ii) benefits under section 196 of the
                            Federal Agriculture Improvement and Reform Act
                            of 1996 (7 U.S.C. 7333); and
                              ``(iii) payments described in subsection (b)
                            or (c) of section 1001 of the Food Security Act
                            of 1985 (7 U.S.C. 1308).''; and
              (3) by striking paragraph (3) and inserting the following new
            paragraphs:
              ``(3) Administration.--
                      ``(A) In general.--During the first 4 crop years of
                    planting on native sod acreage by a producer described
                    in paragraph (2)--
                              ``(i) paragraph (2) shall apply to 65 percent
                            of the transitional yield of the producer; and
                              ``(ii) the crop insurance premium subsidy
                            provided for the producer under this subtitle
                            shall be 50 percentage points less than the
                            premium subsidy that would otherwise apply.
                      ``(B) Yield substitution.--During the period native
                    sod acreage is covered by this subsection, a producer
                    may not substitute yields for the native sod acreage.
              ``(4) Application.--This subsection shall only apply to
            native sod in the Prairie Pothole National Priority Area.''.
      (b) Noninsured Crop Disaster Assistance.--Section 196(a)(4) of the
    Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
    7333(a)(4)) is amended--
              (1) in the paragraph heading, by striking ``ineligibility''
            and inserting ``benefit reduction'';
              (2) in subparagraph (A)(ii), by inserting ``, or the producer
            cannot substantiate that the ground has ever been tilled,''
            after ``tilled'';
              (3) in subparagraph (B)--
                      (A) in the subparagraph heading, by striking
                    ``Ineligibility'' and inserting ``Reduction in''; and
                      (B) in clause (i), by striking ``for benefits under--
                    '' and all that follows through the period at the end
                    and inserting ``for--
                                      ``(I) benefits under this section;
                                      ``(II) a portion of crop insurance
                                    premium subsidies under the Federal
                                    Crop Insurance Act (7 U.S.C. 1501 et
                                    seq.) in accordance with subparagraph
                                    (C); and
                                      ``(III) payments described in
                                    subsection (b) or (c) of section 1001
                                    of the Food Security Act of 1985 (7
                                    U.S.C. 1308).''; and
              (4) by striking subparagraph (C) and inserting the following
            new subparagraphs:
                      ``(C) Administration.--
                              ``(i) In general.--During the first 4 crop
                            years of planting on native sod acreage by a
                            producer described in subparagraph (B)--
                                      ``(I) subparagraph (B) shall apply to
                                    65 percent of the transitional yield of
                                    the producer; and
                                      ``(II) the crop insurance premium
                                    subsidy provided for the producer under
                                    the Federal Crop Insurance Act (7
                                    U.S.C. 1501 et seq.) shall be 50
                                    percentage points less than the premium
                                    subsidy that would otherwise apply.
                              ``(ii) Yield substitution.--During the period
                            native sod acreage is covered by this
                            paragraph, a producer may not substitute yields
                            for the native sod acreage.
                      ``(D) Application.--This paragraph shall only apply
                    to native sod in the Prairie Pothole National Priority
                    Area.''.
      (c) Cropland Report.--
              (1) Baseline.--Not later than 180 days after the date of
            enactment of this Act, the Secretary of Agriculture shall
            submit to the Committee on Agriculture of the House of
            Representatives and the Committee on Agriculture, Nutrition,
            and Forestry of the Senate a report that describes the cropland
            acreage in each applicable county and State, and the change in
            cropland acreage from the preceding year in each applicable
            county and State, beginning with calendar year 2000 and
            including that information for the most recent year for which
            that information is available.
              (2) Annual updates.--Not later than January 1, 2014, and each
            January 1 thereafter through January 1, 2017, the Secretary of
            Agriculture shall submit to the Committee on Agriculture of the
            House of Representatives and the Committee on Agriculture,
            Nutrition, and Forestry of the Senate a report that describes--
                      (A) the cropland acreage in each applicable county
                    and State as of the date of submission of the report;
                    and
                      (B) the change in cropland acreage from the preceding
                    year in each applicable county and State.

    SEC. 11014. COVERAGE LEVELS BY PRACTICE.

      Section 508 of the Federal Crop Insurance Act of 1938 (7 U.S.C. 1508)
    is amended by adding at the end the following new subsection:
      ``(p) Coverage Levels by Practice.--Beginning with the 2014 crop
    year, a producer that produces an agricultural commodity on both dry
    land and irrigated land may elect a different coverage level for each
    production practice.''.

    SEC. 11015. BEGINNING FARMER AND RANCHER PROVISIONS.

      (a) Definition.--Section 502(b) of the Federal Crop Insurance Act (7
    U.S.C. 1502(b)) is amended--
              (1) by redesignating paragraphs (3) through (9) as paragraphs
            (4) through (10), respectively; and
              (2) by inserting after paragraph (2) the following:
              ``(3) Beginning farmer or rancher.--The term `beginning
            farmer or rancher' means a farmer or rancher who has not
            actively operated and managed a farm or ranch with a bona fide
            insurable interest in a crop or livestock as an owner-operator,
            landlord, tenant, or sharecropper for more than 5 crop years,
            as determined by the Secretary.''.
      (b) Premium Adjustments.--Section 508 of the Federal Crop Insurance
    Act (7 U.S.C. 1508) is amended--
              (1) in subsection (b)(5)(E), by inserting ``and beginning
            farmers or ranchers'' after ``limited resource farmers'';
              (2) in subsection (e), by adding at the end the following new
            paragraph:
              ``(8) Premium for beginning farmers or ranchers.--
            Notwithstanding any other provision of this subsection
            regarding payment of a portion of premiums, a beginning farmer
            or rancher shall receive premium assistance that is 10
            percentage points greater than premium assistance that would
            otherwise be available under paragraphs (2) (except for
            subparagraph (A) of that paragraph), (5), (6), and (7) for the
            applicable policy, plan of insurance, and coverage level
            selected by the beginning farmer or rancher.''; and
              (3) in subsection (g)--
                      (A) in paragraph (2)(B)--
                              (i) in clause (i), by striking ``or'' at the
                            end;
                              (ii) in clause (ii)(III), by striking the
                            period at the end and inserting ``; or''; and
                              (iii) by adding at the end the following:
                              ``(iii) if the producer is a beginning farmer
                            or rancher who was previously involved in a
                            farming or ranching operation, including
                            involvement in the decisionmaking or physical
                            involvement in the production of the crop or
                            livestock on the farm, for any acreage obtained
                            by the beginning farmer or rancher, a yield
                            that is the higher of--
                                      ``(I) the actual production history
                                    of the previous producer of the crop or
                                    livestock on the acreage determined
                                    under subparagraph (A); or
                                      ``(II) a yield of the producer, as
                                    determined in clause (i).''; and
                      (B) in paragraph (4)(B)(ii) (as amended by section
                    11009)--
                              (i) by inserting ``(I)'' after ``(ii)'';
                              (ii) by striking the period at the end and
                            inserting ``; or''; and
                              (iii) by adding at the end the following:
                                              ``(II) in the case of
                                            beginning farmers or ranchers,
                                            replace each excluded yield
                                            with a yield equal to 80
                                            percent of the applicable
                                            transitional yield.''.

    SEC. 11016. STACKED INCOME PROTECTION PLAN FOR PRODUCERS OF UPLAND
                        COTTON.

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

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

      ``(a) Availability.--Beginning not later than the 2013 crop of upland
    cotton, the Corporation shall make available to producers of upland
    cotton an additional policy (to be known as the `Stacked Income
    Protection Plan'), which shall provide coverage consistent with the
    Group Risk Income Protection Plan (and the associated Harvest Revenue
    Option Endorsement) offered by the Corporation for the 2011 crop year.
      ``(b) Required Terms.--The Corporation may modify the Stacked Income
    Protection Plan on a program-wide basis, except that the Stacked Income
    Protection Plan shall comply with the following requirements:
              ``(1) Provide coverage for revenue loss of not less than 10
            percent and not more than 30 percent of expected county
            revenue, specified in increments of 5 percent. The deductible
            is the minimum percent of revenue loss at which indemnities are
            triggered under the plan, not to be less than 10 percent of the
            expected county revenue.
              ``(2) Be offered to producers of upland cotton in all
            counties with upland cotton production--
                      ``(A) at a county-wide level to the fullest extent
                    practicable; or
                      ``(B) in counties that lack sufficient data, on the
                    basis of such larger geographical area as the
                    Corporation determines to provide sufficient data for
                    purposes of providing the coverage.
              ``(3) Be purchased in addition to any other individual or
            area coverage in effect on the producer's acreage or as a
            stand-alone policy, except that if a producer has an individual
            or area coverage for the same acreage, the maximum coverage
            available under the Stacked Income Protection Plan shall not
            exceed the deductible for the individual or area coverage.
              ``(4) Establish coverage based on--
                      ``(A) an expected price that is the higher of--
                              ``(i) the expected price established under
                            existing Group Risk Income Protection or area
                            wide policy offered by the Corporation for the
                            applicable county (or area) and crop year; or
                              ``(ii) $0.6861 per pound; and
                      ``(B) an expected county yield that is the higher
                    of--
                              ``(i) the expected county yield established
                            for the existing area-wide plans offered by the
                            Corporation for the applicable county (or area)
                            and crop year (or, in geographic areas where
                            area-wide plans are not offered, an expected
                            yield determined in a manner consistent with
                            those of area-wide plans); or
                              ``(ii) the average of the applicable yield
                            data for the county (or area) for the most
                            recent 5 years, excluding the highest and
                            lowest observations, from the Risk Management
                            Agency or the National Agricultural Statistics
                            Service (or both) or, if sufficient county data
                            is not available, such other data considered
                            appropriate by the Secretary.
              ``(5) Use a multiplier factor to establish maximum protection
            per acre (referred to as a `protection factor') of not less
            than the higher of the level established on a program wide
            basis or 120 percent.
              ``(6) Pay an indemnity based on the amount that the expected
            county revenue exceeds the actual county revenue, as applied to
            the individual coverage of the producer. Indemnities under the
            Stacked Income Protection Plan shall not include or overlap the
            amount of the deductible selected under paragraph (1).
              ``(7) In all counties for which data are available, establish
            separate coverage levels for irrigated and non-irrigated
            practices.
      ``(c) Reinsurance.--When the $0.6861 reference price is equal to or
    greater than the expected price established under the existing Group
    Risk Income Protection or area wide policy offered by the Corporation
    for the applicable county (or area) and crop year or the yield
    established under subsection (b)(4)(B) is used to establish the
    expected county yield, the Corporation shall reinsure at 100 percent
    that portion of the indemnity that is attributable to the difference
    between--
              ``(1) the $0.6861 reference price and the expected price
            established under the existing Group Risk Income Protection or
            area wide policy offered by the Corporation for the applicable
            county (or area) and crop year; and
              ``(2) the yield established under subsection (b)(4)(B).
      ``(d) Premium.--Notwithstanding section 508(d), the premium for the
    Stacked Income Protection Plan shall--
              ``(1) be sufficient to cover anticipated losses and a
            reasonable reserve; and
              ``(2) include an amount for operating and administrative
            expenses established in accordance with section 508(k)(4)(F).
      ``(e) Payment of Portion by Corporation.--Subject to section
    508(e)(4), the amount of premium paid by the Corporation for all
    qualifying coverage levels of the Stacked Income Protection Plan shall
    be--
              ``(1) 80 percent of the amount of the premium established
            under subsection (d) for the coverage level selected; and
              ``(2) the amount determined under subsection (d)(2), subject
            to section 508(k)(4)(F), for the coverage to cover
            administrative and operating expenses.
      ``(f) Relation to Other Coverages.--The Stacked Income Protection
    Plan is in addition to all other coverages available to producers of
    upland cotton.''.
      (b) Conforming Amendment.--Section 508(k)(4)(F) of the Federal Crop
    Insurance Act (7 U.S.C. 1508(k)(4)(F)) is amended by inserting ``or
    authorized under subsection (c)(4)(C) or section 508B'' after ``of this
    subparagraph''.

    SEC. 11017. PEANUT REVENUE CROP INSURANCE.

      The Federal Crop Insurance Act is amended by inserting after section
    508B, as added by the previous section, the following new section:

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

      ``(a) In General.--Effective beginning with the 2013 crop year, the
    Risk Management Agency and the Corporation shall make available to
    producers of peanuts a revenue crop insurance program for peanuts.
      ``(b) Effective Price.--Subject to subsection (c), for purposes of
    the revenue crop insurance program and the multiperil crop insurance
    program under this Act, the effective price for peanuts shall be equal
    to the Rotterdam price index for peanuts, as adjusted to reflect the
    farmer stock price of peanuts in the United States.
      ``(c) Adjustments.--
              ``(1) In general.--The effective price for peanuts
            established under subsection (b) may be adjusted by the Risk
            Management Agency and the Corporation to correct distortions.
              ``(2) Administration.--If an adjustment is made under
            paragraph (1), the Risk Management Agency and the Corporation
            shall--
                      ``(A) make the adjustment in an open and transparent
                    manner; and
                      ``(B) submit to the Committee on Agriculture of the
                    House of Representatives and the Committee on
                    Agriculture, Nutrition, and Forestry of the Senate a
                    report that describes the reasons for the
                    adjustment.''.

    SEC. 11018. AUTHORITY TO CORRECT ERRORS.

      Section 515(c) of the Federal Crop Insurance Act (7 U.S.C. 1515(c))
    is amended--
              (1) in the first sentence, by striking ``The Secretary'' and
            inserting the following:
              ``(1) In general.--The Secretary'';
              (2) in the second sentence, by striking ``Beginning with''
            and inserting the following:
              ``(2) Frequency.--Beginning with''; and
              (3) by adding at the end the following new paragraph:
              ``(3) Corrections.--
                      ``(A) In general.--In addition to the corrections
                    permitted by the Corporation as of the date of
                    enactment of the Federal Agriculture Reform and Risk
                    Management Act of 2012, the Corporation shall allow an
                    agent or an approved insurance provider, subject to
                    subparagraph (B)--
                              ``(i) within a reasonable amount of time
                            following the applicable sales closing date, to
                            correct unintentional errors in information
                            that is provided by a producer for the purpose
                            of obtaining coverage under any policy or plan
                            of insurance made available under this subtitle
                            to ensure that the eligibility information is
                            correct;
                              ``(ii) within a reasonable amount of time
                            following--
                                      ``(I) the acreage reporting date, to
                                    correct unintentional errors in factual
                                    information that is provided by a
                                    producer after the sales closing date
                                    to reconcile the information with the
                                    information reported by the producer to
                                    the Farm Service Agency; or
                                      ``(II) the date of any subsequent
                                    correction of data by the Farm Service
                                    Agency made as a result of the
                                    verification of information; and
                              ``(iii) at any time, to correct unintentional
                            errors that were made by the Farm Service
                            Agency or an agent or approved insurance
                            provider in transmitting the information
                            provided by the producer to the approved
                            insurance provider or the Corporation.
                      ``(B) Limitation.--In accordance with the procedures
                    of the Corporation, correction to the information
                    described in clauses (i) and (ii) of subparagraph (A)
                    may only be made if the corrections do not allow the
                    producer--
                              ``(i) to avoid ineligibility requirements for
                            insurance;
                              ``(ii) to obtain, enhance, or increase an
                            insurance guarantee or indemnity, or avoid
                            premium owed, if a cause of loss exists or has
                            occurred before any correction has been made;
                            or
                              ``(iii) to avoid an obligation or requirement
                            under any Federal or State law.
                      ``(C) Exception to late filing sanctions.--Any
                    corrections made pursuant to this paragraph shall not
                    be subject to any late filing sanctions authorized in
                    the reinsurance agreement with the Corporation.''.

    SEC. 11019. IMPLEMENTATION.

      Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1515) is
    amended--
              (1) in subsection (j), by striking paragraph (1) and
            inserting the following new paragraph:
              ``(1) Systems maintenance and upgrades.--
                      ``(A) In general.--The Secretary shall maintain and
                    upgrade the information management systems of the
                    Corporation used in the administration and enforcement
                    of this subtitle.
                      ``(B) Requirement.--
                              ``(i) In general.--In maintaining and
                            upgrading the systems, the Secretary shall
                            ensure that new hardware and software are
                            compatible with the hardware and software used
                            by other agencies of the Department to maximize
                            data sharing and promote the purposes of this
                            section.
                              ``(ii) Acreage report streamlining initiative
                            project.--As soon as practicable, the Secretary
                            shall develop and implement an acreage report
                            streamlining initiative project to allow
                            producers to report acreage and other
                            information directly to the Department.''; and
              (2) in subsection (k), by striking paragraph (1) and
            inserting the following new paragraph:
              ``(1) Information technology.--
                      ``(A) In general.--For purposes of subsection (j)(1),
                    the Corporation may use, from amounts made available
                    from the insurance fund established under section
                    516(c), not more than--
                              ``(i)(I) for fiscal year 2013, $25,000,000;
                            and
                              ``(II) for each of fiscal years 2014 through
                            2017, $10,000,000; or
                              ``(ii) if the Acreage Crop Reporting
                            Streamlining Initiative (ACRSI) project is
                            substantially completed by September 30, 2014,
                            not more than $15,000,000 for each of the
                            fiscal years 2014 through 2017.
                      ``(B) Notification.--The Secretary shall notify the
                    Committee on Agriculture of the House of
                    Representatives and the Committee on Agriculture,
                    Nutrition, and Forestry of the Senate of the
                    substantial completion of the Acreage Crop Reporting
                    Streamlining Initiative (ACRSI) project not later than
                    July 1, 2014.''.

    SEC. 11020. RESEARCH AND DEVELOPMENT PRIORITIES.

      Section 522(c)(6) of the Federal Crop Insurance Act (7 U.S.C.
    1522(c)(6)) is amended by striking ``a pasture, range, and forage
    program'' and inserting ``policies that increase participation by
    producers of underserved agricultural commodities, including sweet
    sorghum, biomass sorghum, rice, peanuts, and sugarcane''.

    SEC. 11021. ADDITIONAL RESEARCH AND DEVELOPMENT CONTRACTING
                        REQUIREMENTS.

      Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c))
    is amended--
              (1) in paragraph (10)--
                      (A) in subparagraph (A), by striking ``the Food,
                    Conservation, and Energy Act of 2008'' and inserting
                    ``the Federal Agriculture Reform and Risk Management
                    Act of 2012'';
                      (B) in subparagraph (B)(iii), by striking ``2009''
                    and inserting ``2013''; and
                      (C) in subparagraph (C)--
                              (i) in clause (ii), by striking ``2010'' and
                            inserting ``2013''; and
                              (ii) in clause (iii), by striking ``Food,
                            Conservation, and Energy Act of 2008'' and
                            inserting ``the Federal Agriculture Reform and
                            Risk Management Act of 2012'';
              (2) by redesignating paragraph (17) as paragraph (24); and
              (3) by inserting after paragraph (16), the following new
            paragraphs:
              ``(17) Margin coverage for catfish.--
                      ``(A) In general.--The Corporation shall offer to
                    enter into a contract with a qualified entity to
                    conduct research and development regarding a policy to
                    insure producers against reduction in the margin
                    between the market value of catfish and selected costs
                    incurred in the production of catfish.
                      ``(B) Eligibility.--Eligibility for the policy
                    described in subparagraph (A) shall be limited to
                    freshwater species of catfish that are propagated and
                    reared in controlled or selected environments.
                      ``(C) Implementation.--The Board shall review the
                    policy described in subparagraph (B) under subsection
                    508(h) and approve the policy if the Board finds that
                    the policy--
                              ``(i) will likely result in a viable and
                            marketable policy consistent with this
                            subsection;
                              ``(ii) would provide crop insurance coverage
                            in a significantly improved form;
                              ``(iii) adequately protects the interests of
                            producers; and
                              ``(iv) the proposed policy meets other
                            requirements of this subtitle determined
                            appropriate by the Board.
              ``(18) Biomass and sweet sorghum energy crop insurance
            policies.--
                      ``(A) Authority.--The Corporation shall offer to
                    enter into 1 or more contracts with qualified entities
                    to carry out research and development regarding--
                              ``(i) a policy to insure biomass sorghum that
                            is grown expressly for the purpose of producing
                            a feedstock for renewable biofuel, renewable
                            electricity, or biobased products; and
                              ``(ii) a policy to insure sweet sorghum that
                            is grown for a purpose described in clause (i).
                      ``(B) Research and development.--Research and
                    development with respect to each of the policies
                    required in subparagraph (A) shall evaluate the
                    effectiveness of risk management tools for the
                    production of biomass sorghum or sweet sorghum,
                    including policies and plans of insurance that--
                              ``(i) are based on market prices and yields;
                              ``(ii) to the extent that insufficient data
                            exist to develop a policy based on market
                            prices and yields, evaluate the policies and
                            plans of insurance based on the use of weather
                            indices, including excessive or inadequate
                            rainfall, to protect the interest of crop
                            producers; and
                              ``(iii) provide protection for production or
                            revenue losses, or both.
              ``(19) Study on swine catastrophic disease program.--
                      ``(A) In general.--The Corporation shall contract
                    with a qualified person to conduct a study to determine
                    the feasibility of insuring swine producers for a
                    catastrophic event.
                      ``(B) Report.--Not later than 1 year after the date
                    of the enactment of this paragraph, the Corporation
                    shall submit to the Committee on Agriculture of the
                    House of Representatives and the Committee on
                    Agriculture, Nutrition, and Forestry of the Senate a
                    report that describes the results of the study
                    conducted under subparagraph (A).
              ``(20) Whole farm diversified risk management insurance
            plan.--
                      ``(A) In general.--The Corporation shall conduct
                    activities or enter into contracts to carry out
                    research and development to develop a whole farm risk
                    management insurance plan, with a liability limitation
                    of $1,000,000, that allows a diversified crop or
                    livestock producer the option to qualify for an
                    indemnity if actual gross farm revenue is below 85
                    percent of the average gross farm revenue or the
                    expected gross farm revenue that can reasonably be
                    expected of the producer, as determined by the
                    Corporation.
                      ``(B) Eligible producers.--The Corporation shall
                    permit producers (including direct-to-consumer
                    marketers and producers servicing local and regional
                    and farm identity-preserved markets) who produce
                    multiple agricultural commodities, including specialty
                    crops, industrial crops, livestock, and aquaculture
                    products, to participate in the plan in lieu of any
                    other plan under this subtitle.
                      ``(C) Diversification.--The Corporation may provide
                    diversification-based additional coverage payment
                    rates, premium discounts, or other enhanced benefits in
                    recognition of the risk management benefits of crop and
                    livestock diversification strategies for producers that
                    grow multiple crops or that may have income from the
                    production of livestock that uses a crop grown on the
                    farm.
                      ``(D) Market readiness.--The Corporation may include
                    coverage for the value of any packing, packaging, or
                    any other similar on-farm activity the Corporation
                    determines to be the minimum required in order to
                    remove the commodity from the field.
                      ``(E) Report.--Not later than 2 years after the date
                    of enactment of this paragraph, the Corporation shall
                    submit to the Committee on Agriculture of the House of
                    Representatives and the Committee on Agriculture,
                    Nutrition, and Forestry of the Senate a report that
                    describes the results and feasibility of the research
                    and development conducted under this paragraph,
                    including an analysis of potential adverse market
                    distortions.
              ``(21) Study of food safety insurance.--
                      ``(A) In general.--The Corporation shall offer to
                    enter into a contract with 1 or more qualified entities
                    to conduct a study to determine whether offering
                    policies that provide coverage for specialty crops from
                    food safety and contamination issues would benefit
                    agricultural producers.
                      ``(B) Subject.--The study described in subparagraph
                    (A) shall evaluate policies and plans of insurance
                    coverage that provide protection for production or
                    revenue impacted by food safety concerns including, at
                    a minimum, government, retail, or national consumer
                    group announcements of a health advisory, removal, or
                    recall related to a contamination concern.
                      ``(C) Report.--Not later than 1 year after the date
                    of enactment of this paragraph, the Corporation shall
                    submit to the Committee on Agriculture of the House of
                    Representatives and the Committee on Agriculture,
                    Nutrition, and Forestry of the Senate a report that
                    describes the results of the study conducted under
                    subparagraph (A).
              ``(22) Study on poultry catastrophic disease program.--
                      ``(A) In general.--The Corporation shall contract
                    with a qualified person to conduct a study to determine
                    the feasibility of insuring poultry producers for a
                    catastrophic event.
                      ``(B) Report.--Not later than 1 year after the date
                    of the enactment of this paragraph, the Corporation
                    shall submit to the Committee on Agriculture of the
                    House of Representatives and the Committee on
                    Agriculture, Nutrition, and Forestry of the Senate a
                    report that describes the results of the study
                    conducted under subparagraph (A).
              ``(23) Poultry business interruption insurance policy.--
                      ``(A) Authority.--The Corporation shall offer to
                    enter into a contract or cooperative agreement with a
                    university or other legal entity to carry out research
                    and development regarding a policy to insure the
                    commercial production of poultry against business
                    interruptions caused by integrator bankruptcy.
                      ``(B) Research and development.--As part of the
                    research and development conducted pursuant to a
                    contract or cooperative agreement entered into under
                    subparagraph (A), the entity shall--
                              ``(i) evaluate the market place for business
                            interruption insurance that is available to
                            poultry growers;
                              ``(ii) determine what statutory authority
                            would be necessary to implement a business
                            interruption insurance through the Corporation;
                              ``(iii) assess the feasibility of a policy or
                            plan of insurance offered under this subtitle
                            to insure against losses due to the bankruptcy
                            of an business integrator; and
                              ``(iv) analyze the costs to the Federal
                            Government of a Federal business interruption
                            insurance program for poultry growers.
                      ``(C) Definitions.--In this paragraph, the terms
                    `poultry' and `poultry grower' have the meanings given
                    those terms in section 2(a) of the Packers and
                    Stockyards Act, 1921 (7 U.S.C. 182(a)).
                      ``(D) Deadline for contract or cooperative
                    agreement.--Not later than six months after the date of
                    the enactment of this paragraph, the Corporation shall
                    enter into the contract or cooperative agreement
                    required by subparagraph (A).
                      ``(E) Deadline for completion of research and
                    development.--Not later than one year after the date of
                    the enactment of this paragraph, the Corporation shall
                    submit to the Committee on Agriculture of the House of
                    Representatives and the Committee on Agriculture,
                    Nutrition, and Forestry of the Senate a report that
                    describes the results of the research and development
                    conducted pursuant to the contract or cooperative
                    agreement entered into under subparagraph (A).''.

    SEC. 11022. PILOT PROGRAMS.

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

    SEC. 11023. LIMITATION ON EXPENDITURES FOR LIVESTOCK PILOT PROGRAMS.

      Section 523(b)(10) of the Federal Crop Insurance Act (7 U.S.C.
    1523(b)(10)) is amended--
              (1) in subparagraph (C), by striking ``fiscal year 2004 and
            each subsequent fiscal year'' and inserting ``each of fiscal
            years 2004 through 2012''; and
              (2) by adding at the end the following new subparagraph:
                      ``(D) $50,000,000 for fiscal year 2013 and each
                    subsequent fiscal year.''.

    SEC. 11024. NONINSURED CROP ASSISTANCE PROGRAM.

      Section 196 of the Federal Agriculture Improvement and Reform Act of
    1996 (7 U.S.C. 7333), as amended by section 11013(b)) is further
    amended--
              (1) in subsection (a)--
                      (A) by striking paragraph (1) and inserting the
                    following new paragraph:
              ``(1) In general.--
                      ``(A) Coverages.--In the case of an eligible crop
                    described in paragraph (2), the Secretary of
                    Agriculture shall operate a noninsured crop disaster
                    assistance program to provide coverages based on
                    individual yields (other than for value-loss crops)
                    equivalent to--
                              ``(i) catastrophic risk protection available
                            under section 508(b) of the Federal Crop
                            Insurance Act (7 U.S.C. 1508(b)); or
                              ``(ii) additional coverage available under
                            subsections (c) and (h) of section 508 of that
                            Act (7 U.S.C. 1508) that does not exceed 65
                            percent.
                      ``(B) Administration.--The Secretary shall carry out
                    this section through the Farm Service Agency (referred
                    to in this section as the `Agency').''; and
                      (B) in paragraph (2)(A)--
                              (i) in clause (i), by striking ``and'' after
                            the semicolon at the end;
                              (ii) by redesignating clause (ii) as clause
                            (iii); and
                              (iii) by inserting after clause (i) the
                            following new clause:
                                      ``(ii) for which additional coverage
                                    under subsections (c) and (h) of
                                    section 508 of that Act (7 U.S.C. 1508)
                                    is not available; and'';
              (2) in subsection (d), by striking ``The Secretary'' and
            inserting ``Subject to subsection (l), the Secretary''; and
              (3) by adding at the end the following new subsection:
      ``(l) Payment Equivalent to Additional Coverage.--
              ``(1) In general.--The Secretary shall make available to a
            producer eligible for noninsured assistance under this section
            a payment equivalent to an indemnity for additional coverage
            under subsections (c) and (h) of section 508 of the Federal
            Crop Insurance Act (7 U.S.C. 1508) that does not exceed 65
            percent of the established yield for the eligible crop on the
            farm, computed by multiplying--
                      ``(A) the quantity that is not greater than 65
                    percent of the established yield for the crop, as
                    determined by the Secretary, specified in increments of
                    5 percent;
                      ``(B) 100 percent of the average market price for the
                    crop, as determined by the Secretary; and
                      ``(C) a payment rate for the type of crop, as
                    determined by the Secretary, that reflects--
                              ``(i) in the case of a crop that is produced
                            with a significant and variable harvesting
                            expense, the decreasing cost incurred in the
                            production cycle for the crop that is, as
                            applicable--
                                      ``(I) harvested;
                                      ``(II) planted but not harvested; or
                                      ``(III) prevented from being planted
                                    because of drought, flood, or other
                                    natural disaster, as determined by the
                                    Secretary; or
                              ``(ii) in the case of a crop that is produced
                            without a significant and variable harvesting
                            expense, such rate as shall be determined by
                            the Secretary.
              ``(2) Premium.--To be eligible to receive a payment under
            this subsection, a producer shall pay--
                      ``(A) the service fee required by subsection (k); and
                      ``(B) a premium for the applicable crop year that is
                    equal to the product obtained by multiplying--
                              ``(i) the number of acres devoted to the
                            eligible crop;
                              ``(ii) the established yield for the eligible
                            crop, as determined by the Secretary under
                            subsection (e);
                              ``(iii) the coverage level elected by the
                            producer;
                              ``(iv) the average market price, as
                            determined by the Secretary; and
                              ``(v) .0525.
              ``(3) Limited resource, beginning, and socially disadvantaged
            farmers.--The additional coverage made available under this
            subsection shall be available to limited resource, beginning,
            and socially disadvantaged producers, as determined by the
            Secretary, in exchange for a premium that is 50 percent of the
            premium determined for a producer under paragraph (2).
              ``(4) Premium payment and application deadline.--
                      ``(A) Premium payment.--A producer electing
                    additional coverage under this subsection shall pay the
                    premium amount owed for the additional coverage by
                    September 30 of the crop year for which the additional
                    coverage is purchased.
                      ``(B) Application deadline.--The latest date on which
                    additional coverage under this subsection may be
                    elected shall be the application closing date described
                    in subsection (b)(1).
              ``(5) Effective date.--Additional coverage under this
            subsection shall be available beginning with the 2014
            crop.''.workhome100now . com

    SEC. 11025. TECHNICAL AMENDMENTS.

      (a) Eligibility for Department Programs.--Section 508(b) of the
    Federal Crop Insurance Act (7 U.S.C. 1508(b)) is amended--
              (1) by striking paragraph (7); and
              (2) by redesignating paragraphs (8) through (11) as
            paragraphs (7) through (10), respectively.
      (b) Exclusions to Assistance for Losses Due to Drought Conditions.--
              (1) In general.--Section 531(d)(3)(A) of the Federal Crop
            Insurance Act (7 U.S.C. 1531(d)(3)(A)) is amended--
                      (A) by striking ``(A) Eligible losses.--'' and all
                    that follows through ``An eligible'' in clause (i) and
                    inserting the following:
                      ``(A) Eligible losses.--An eligible'';
                      (B) by striking clause (ii); and
                      (C) by redesignating subclauses (I) and (II) as
                    clauses (i) and (ii), respectively, and indenting
                    appropriately.
              (2) Conforming amendment.--Section 901(d)(3)(A) of the Trade
            Act of 1974 (19 U.S.C. 2497(d)(3)(A)) is amended--
                      (A) by striking ``(A) Eligible losses.--'' and all
                    that follows through ``An eligible'' in clause (i) and
                    inserting the following:
                      ``(A) Eligible losses.--An eligible'';
                      (B) by striking clause (ii); and
                      (C) by redesignating subclauses (I) and (II) as
                    clauses (i) and (ii), respectively, and indenting
                    appropriately.

                            TITLE XII--MISCELLANEOUS

                             Subtitle A--Livestock

    SEC. 12101. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

      Section 375(e)(6)(C) of the Consolidated Farm and Rural Development
    Act (7 U.S.C. 2008j(e)(6)(C)) is amended by striking ``2012'' and
    inserting ``2017''.

    SEC. 12102. TRICHINAE CERTIFICATION PROGRAM.

      Section 10405(d)(1) of the Animal Health Protection Act (7 U.S.C.
    8304(d)(1)) is amended in subparagraphs (A) and (B) by striking
    ``2012'' each place it appears and inserting ``2017''.

    SEC. 12103. NATIONAL AQUATIC ANIMAL HEALTH PLAN.

      Section 11013(d) of the Food, Conservation, and Energy Act of 2008 (7
    U.S.C. 8322(d)) is amended by striking ``2012'' and inserting ``2017''.

    SEC. 12104. REPORT ON COMPLIANCE WITH WORLD TRADE ORGANIZATION DECISION
                        REGARDING COUNTRY OF ORIGIN LABELING.

      Not later than 90 days after the date of enactment of this Act, the
    Secretary of Agriculture shall submit to the Committee on Agriculture,
    Nutrition, and Forestry of the Senate and the Committee on Agriculture
    of the House of representatives a report detailing the steps the
    Secretary will take so that the United States is in compliance with the
    decision of the World Trade Organization in United States - Certain
    Country of Origin Labeling (COOL) Requirements (DS384, DS386).

    SEC. 12105. REPEAL OF CERTAIN REGULATIONS UNDER THE PACKERS AND
                        STOCKYARDS ACT, 1921.

      (a) Repeal of Certain Regulation Requirement.--Section 11006 of the
    Food, Conservation, and Energy Act of 2008 (Public Law 110-246; 122
    Stat. 2120) is repealed.
      (b) Repeal of Certain Existing Regulations.--The following provisions
    of title 9, Code of Federal Regulations, are repealed:
              (1) Subsections (n) and (o) of section 201.2.
              (2) Subsection (a) of section 201.3.
              (3) Subsection (a) of section 201.215.
      (c) Prohibition on Enforcement of Certain Regulations or Issuance of
    Similar Regulations.--Notwithstanding any other provision of law, the
    Secretary of Agriculture shall not--
              (1) enforce the provisions of title 9, Code of Federal
            Regulations, referred to in subsection (b);
              (2) finalize or implement section 201.2(l), 201.2(t),
            201.2(u), 201.3(c), 201.210, 201.211, 201.213, and 201.214 of
            title 9, Code of Federal Regulations, as proposed to be added
            by the rule entitled ``Implementation of Regulations Required
            Under Title XI of the Food, Conservation and Energy Act of
            2008; Conduct in Violation of the Act'' (75 Fed. Reg. 35338
            (June 22, 2010)); or
              (3) issue regulations or adopt a policy similar to the
            provisions referred to in subsection (b) or in paragraph (2).

    SEC. 12106. MEAT AND POULTRY PROCESSING REPORT.

      Not later than one year after the date of the enactment of this Act,
    the Secretary of Agriculture, in consultation with States, processors,
    and producers, shall submit to Congress a report describing--
              (1) additional steps that can be taken to better meet the
            needs of small and very small meat and poultry producers and
            processors that are subject to Federal or State inspection; and
              (2) methods to create an electronic submission option for the
            approval of meat labels and to provide improved public access
            to information on the label approval process.

       Subtitle B--Socially Disadvantaged Producers and Limited Resource
                                   Producers

    SEC. 12201. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS
                        AND RANCHERS AND VETERAN FARMERS AND RANCHERS.

      (a) Outreach and Assistance for Socially Disadvantaged Farmers and
    Ranchers and Veteran Farmers and Ranchers.--Section 2501 of the Food,
    Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is
    amended--
              (1) in the section heading, by inserting ``and veteran
            farmers and ranchers'' after ``ranchers'';
              (2) in subsection (a)--
                      (A) in paragraph (1), by inserting ``and veteran
                    farmers or ranchers'' after ``ranchers'';
                      (B) in paragraph (2)(B)(i), by inserting ``and
                    veteran farmers or ranchers'' after ``ranchers''; and
                      (C) in paragraph (4)--
                              (i) in subparagraph (A)--
                                      (I) in clause (i), by striking
                                    ``and'' at the end;
                                      (II) in clause (ii), by striking the
                                    period at the end and inserting ``;
                                    and''; and
                                      (III) by adding at the end the
                                    following new clause:
                              ``(iii) $10,000,000 for each of fiscal years
                            2013 through 2017.''; and
                              (ii) by adding at the end the following new
                            subparagraph:
                      ``(D) Authorization of appropriations.--There is
                    authorized to be appropriated to carry out this section
                    $20,000,000 for each of fiscal years 2013 through
                    2017.'';
              (3) in subsection (b)(2), by inserting ``or veteran farmers
            and ranchers'' after ``socially disadvantaged farmers and
            ranchers'';
              (4) in subsection (c)--
                      (A) in paragraph (1)(A), by inserting ``veteran
                    farmers or ranchers and'' before ``members''; and
                      (B) in paragraph (2)(A), by inserting ``veteran
                    farmers or ranchers and'' before ``members''; and
              (5) in subsection (e)(5)(A)--
                      (A) in clause (i), by inserting ``and veteran farmers
                    or ranchers'' after ``ranchers''; and
                      (B) in clause (ii), by inserting ``and veteran
                    farmers or ranchers'' after ``ranchers''.
      (b) Definition of Veteran Farmer or Rancher.--Section 2501(e) of the
    Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
    2279(e)) is amended by adding at the end the following new paragraph:
              ``(7) Veteran farmer or rancher.--The term `veteran farmer or
            rancher' means a farmer or rancher who served in the active
            military, naval, or air service, and who was discharged or
            released from the service under conditions other than
            dishonorable.''.

    SEC. 12202. OFFICE OF ADVOCACY AND OUTREACH.

      Paragraph (3) of section 226B(f) of the Department of Agriculture
    Reorganization Act of 1994 (7 U.S.C. 6934(f)) is amended to read as
    follows:
              ``(3) Authorization of appropriations.--There are authorized
            to be appropriated to carry out this subsection--
                      ``(A) such sums as are necessary for each of fiscal
                    years 2009 through 2012; and
                      ``(B) $2,000,000 for each of fiscal years 2013
                    through 2017.''.

                   Subtitle C--Other Miscellaneous Provisions

    SEC. 12301. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND TRAINING
                        OF AGRICULTURAL LABOR FORCE.

      Subsection (d) of section 14204 of the Food, Conservation, and Energy
    Act of 2008 (7 U.S.C. 2008q-1) is amended to read as follows:
      ``(d) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section--
              ``(1) such sums as are necessary for each of fiscal years
            2008 through 2012; and
              ``(2) $10,000,000 for each of fiscal years 2013 through
            2017.''.

    SEC. 12302. EVALUATION REQUIRED FOR PURPOSES OF PROHIBITION ON CLOSURE
                        OR RELOCATION OF COUNTY OFFICES FOR THE FARM
                        SERVICE AGENCY.

      (a) Prohibition on Closure or Relocation of Offices With High
    Workload Volume.--Section 14212 of the Food, Conservation, and Energy
    Act of 2008 (7 U.S.C. 6932a) is amended by striking subsection (a) and
    inserting the following new subsection:
      ``(a) Prohibition on Closure or Relocation of Offices With High
    Workload Volume.--The Secretary of Agriculture may not close or
    relocate a county or field office of the Farm Service Agency in a State
    if the Secretary determines, after conducting the evaluation required
    under subsection (b)(1)(B), that the office has a high workload volume
    compared with other county offices in the State.''.
      (b) Workload Evaluation.--Section 14212(b)(1) of such Act (7 U.S.C.
    6932a(b)(1)) is amended--
              (1) by redesignating subparagraphs (A) and (B) as clauses (i)
            and (ii), respectively, and moving the margins of such clauses
            two ems to the right;
              (2) by striking ``the Farm Service Agency, to the maximum
            extent practicable'' and inserting ``the Farm Service Agency--
                      ``(A) to the maximum extent practicable'';
              (3) in clause (ii) (as redesignated by paragraph (1))--
                      (A) by inserting ``as of the date of the enactment of
                    this Act'' after ``employees''; and
                      (B) by striking the period at the end and inserting
                    ``; and''; and
              (4) by adding at the end the following new subparagraph:
                      ``(B) conduct and complete an evaluation of all
                    workload assessments for Farm Service Agency county
                    offices that were open and operational as of January 1,
                    2012, during the period that begins on a date that is
                    not later than 180 days after the date of the enactment
                    of the Federal Agriculture Reform and Risk Management
                    Act of 2012 and ends on the date that is 18 months
                    after such date of enactment.''.

    SEC. 12303. PROHIBITION ON ATTENDING AN ANIMAL FIGHT OR CAUSING A MINOR
                        TO ATTEND AN ANIMAL FIGHT.

      Section 26(a)(1) of the Animal Welfare Act (7 U.S.C. 2156(a)(1)) is
    amended by striking the period and inserting ``or to knowingly attend
    or knowingly cause a minor to attend an animal fighting venture.''.

    SEC. 12304. PROGRAM BENEFIT ELIGIBILITY STATUS FOR PARTICIPANTS IN HIGH
                        PLAINS WATER STUDY.

      Section 2901 of the Food, Conservation, and Energy Act of 2008
    (Public Law 110-246; 122 Stat. 1818) is amended by striking ``this Act
    or an amendment made by this Act'' and inserting ``this Act, an
    amendment made by this Act, the Federal Agriculture Reform and Risk
    Management Act of 2012, or an amendment made by the Federal Agriculture
    Reform and Risk Management Act of 2012''.

    SEC. 12305. OFFICE OF TRIBAL RELATIONS.

      (a) In General.--Title III of the Department of Agriculture
    Reorganization Act of 1994 is amended by adding after section 308 (7
    U.S.C. 3125a note; Public Law 103-354) the following new section:

    ``SEC. 309. OFFICE OF TRIBAL RELATIONS.

      ``The Secretary shall establish in the Office of the Secretary an
    Office of Tribal Relations to advise the Secretary on policies related
    to Indian tribes.''.
      (b) Conforming Amendment.--Section 296(b) of the Department of
    Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended by
    inserting after paragraph (8), as added by section 3207, the following
    new paragraph:
              ``(9) the authority of the Secretary to establish in the
            Office of the Secretary the Office of Tribal Relations in
            accordance with section 309; and''.

    SEC. 12306. MILITARY VETERANS AGRICULTURAL LIAISON.

      (a) In General.--Subtitle A of the Department of Agriculture
    Reorganization Act of 1994 is amended by inserting after section 218 (7
    U.S.C. 6918) the following new section:

    ``SEC. 219. MILITARY VETERANS AGRICULTURAL LIAISON.

      ``(a) Authorization.--The Secretary shall establish in the Department
    the position of Military Veterans Agricultural Liaison.
      ``(b) Duties.--The Military Veterans Agricultural Liaison shall--
              ``(1) provide information to returning veterans about, and
            connect returning veterans with, beginning farmer training and
            agricultural vocational and rehabilitation programs appropriate
            to the needs and interests of returning veterans, including
            assisting veterans in using Federal veterans educational
            benefits for purposes relating to beginning a farming or
            ranching career;
              ``(2) provide information to veterans concerning the
            availability of and eligibility requirements for participation
            in agricultural programs, with particular emphasis on beginning
            farmer and rancher programs;
              ``(3) serve as a resource for assisting veteran farmers and
            ranchers, and potential farmers and ranchers, in applying for
            participation in agricultural programs; and
              ``(4) advocate on behalf of veterans in interactions with
            employees of the Department.''.
      (b) Conforming Amendment.--Section 296(b) of the Department of
    Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended by
    inserting after paragraph (9), as added by section 12305, the following
    new paragraph:
              ``(10) the authority of the Secretary to establish in the
            Department the position of Military Veterans Agricultural
            Liaison in accordance with section 219.''.

    SEC. 12307. ACER ACCESS AND DEVELOPMENT PROGRAM.

      (a) Grants Authorized.--The Secretary of Agriculture may make grants
    to States, tribal governments, and research institutions to support the
    efforts of such States, tribal governments, and research institutions
    to promote the domestic maple syrup industry through the following
    activities:
              (1) Promotion of research and education related to maple
            syrup production.
              (2) Promotion of natural resource sustainability in the maple
            syrup industry.
              (3) Market promotion for maple syrup and maple-sap products.
              (4) Encouragement of owners and operators of privately-held
            land containing species of trees in the genus Acer--
                      (A) to initiate or expand maple-sugaring activities
                    on the land; or
                      (B) to voluntarily make the land available, including
                    by lease or other means, for access by the public for
                    maple-sugaring activities.
      (b) Application.--In submitting an application for a grant under this
    section, a State or tribal government shall include--
              (1) a description of the activities to be supported using the
            grant funds;
              (2) a description of the benefits that the State or tribal
            government intends to achieve as a result of engaging in such
            activities; and
              (3) an estimate of the increase in maple-sugaring activities
            or maple syrup production that the State or tribal government
            anticipates will occur as a result of engaging in such
            activities.
      (c) Rule of Construction.--Nothing in this section shall be construed
    so as to preempt a State or tribal government law, including a State or
    tribal government liability law.
      (d) Definition of Maple-sugaring.--In this section, the term ``maple-
    sugaring'' means the collection of sap from any species of tree in the
    genus Acer for the purpose of boiling to produce food.
      (e) Regulations.--The Secretary of Agriculture shall promulgate such
    regulations as are necessary to carry out this section.
      (f) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section $20,000,000 for each of fiscal
    years 2013 through 2017.

    SEC. 12308. PROHIBITION AGAINST INTERFERENCE BY STATE AND LOCAL
                        GOVERNMENTS WITH PRODUCTION OR MANUFACTURE OF ITEMS
                        IN OTHER STATES.

      (a) In General.--The government of a State or locality therein shall
    not impose a standard or condition on the production or manufacture of
    any agricultural product sold or offered for sale in interstate
    commerce if--
              (1) such production or manufacture occurs in another State;
            and
              (2) the standard or condition is in addition to the standards
            and conditions applicable to such production or manufacture
            pursuant to--
                      (A) Federal law; and
                      (B) the laws of the State and locality in which such
                    production or manufacture occurs.
      (b) Agricultural Product Defined.--In this section, the term
    ``agricultural product'' has the meaning given such term in section 207
    of the Agricultural Marketing Act of 1946 (7 U.S.C. 1626).

    SEC. 12309. INCREASED PROTECTION FOR AGRICULTURAL INTERESTS IN THE
                        MISSOURI RIVER BASIN.

      (a) Findings.--Congress finds the following:
              (1) Record runoff occurred in the Missouri River basin during
            2011 as a result of historic rainfall over portions of the
            upper basin coupled with heavy plains and mountain snowpack.
              (2) Runoff above Sioux City, Iowa, during the 5-month period
            of March through July totaled an estimated 48,400,000 acre-feet
            (referred to in this section as ``MAF''). This runoff volume
            was more than 20 percent greater than the design storm for the
            Missouri River Mainstem Reservoir System (referred to in this
            section as ``System''), which was based on the 1881 runoff of
            40.0 MAF during the same 5-month period.
              (3) During the 2011 runoff season, nearly 61,000,000 acre-
            feet of water entered the Missouri River system, far surpassing
            the previous record of 49 MAF in runoff that was set during the
            flood of 1997.
              (4) Given the incredible amount of water entering the
            reservoir system, the summer months were spent working to
            evacuate as much water from the reservoir system as possible,
            ultimately leading to record high water releases from Gavins
            Point Dam of 160,000 cubic feet per second, a rate that more
            than doubled the previous release record of 70,000 cubic feet
            per second set in 1997.
              (5) For nearly 4 months, these extremely high releases from
            Gavins Point were maintained, resulting in severe and sustained
            flooding, with much of western Iowa and eastern Nebraska as
            well as portions of South Dakota, Kansas, and Missouri
            inundated by a flooding river 3 to 5 feet deep, up to 11 miles
            wide, and flowing at a rate of 4 to miles per hour.
              (6) Thousands of homes and businesses were damaged or
            destroyed and hundreds of millions of dollars in damage was
            done to roads and other public infrastructure.
              (7) In addition to the homes, businesses, and infrastructure
            impacted by the flooding, hundreds of thousands of acres of
            cropland were affected.
              (8) The Department of Agriculture has estimated that 400,000
            to 500,000 acres of some of the most productive crop land in
            the world was flooded in 2011.
              (9) Local Farm Services Agency representatives have estimated
            that $82,100,000 was lost in 2011 alone due to damaged or lost
            crops and unplanted acres.
              (10) Not only did the flooding eliminate the crop, but it is
            highly unlikely that many farmers will be able to put this land
            back into production at any point in the near future.
              (11) Producers will have to contend with large piles of sand,
            silt, and other debris that have been deposited in their
            fields, meaning the impact of this flood will be felt in the
            agricultural communities up and down the river for many, many
            years to come.
              (12) Currently, the amount of storage capacity in the
            reservoir system that is set aside for flood control is based
            upon the vacated space required to control the 1881 flood,
            because prior to the 2011 flood, the 1881 flood was seen as the
            ``high water mark''.
              (13) Given the historic flooding that took place in 2011, it
            is clear that that year's flooding now represents a new ``high
            water mark'', surpassing the flooding of even the 1881 flood.
              (14) It is important that the flood control related functions
            of the System management be adjusted to reflect the reality of
            the 2011 flood as the new ``worst case scenario'' for flooding
            along the Missouri River.
              (15) System management may begin to be adjusted to account
            for the 2011 flood through a recalculation of the amount of
            storage space within the System that is allocated to flood
            control, using the model not of the 1881 flood, but of the
            greatest flood experienced--the flood of 2011.
              (16) As a result of the flooding in 2011, many States
            received disaster declarations from the Department of
            Agriculture to help farmers and producers recover from the
            damage done by the high water.
              (17) Though helpful, even the assistance provided by the
            Department of Agriculture will not provide many in the
            agriculture community with the resources to put their land back
            into production any time soon.
              (18) Without the protection that will come from a fundamental
            change in the reservoir System's flood control storage
            allocations, farmers, producers, and other agricultural
            interests who may be in a position to restart their operations
            will find it difficult to justify doing so, given the fact that
            they will not be protected from similar flooding in the future.
              (19) On behalf of Agribusiness in Hamburg, Iowa, and its
            neighboring communities, the Secretary of Agriculture should
            use any authority and all relationships the Secretary has with
            other Federal agencies to ensure that the area and local
            agricultural economy are protected from flooding.
      (b) Updated Management of the Missouri River to Protect Agricultural
    Interests.--In order to strengthen the agricultural economy, revitalize
    the rural communities, and conserve the natural resources of the
    Missouri River basin, the Congress directs the Secretary of Agriculture
    to take action to promote immediate increased flood protection for
    farmers, producers, and other agricultural interests in the Missouri
    River basin by working within his jurisdiction to support efforts--
              (1) to recalculate the amount of space within the System that
            is allocated to flood control storage using the 2011 flood as
            the model; and
              (2) to increase the River's channel capacity between the
            reservoirs and below Gavins Point.

                               Brief Explanation

                              Title I--Commodities

         Repeals the Direct Payment program beginning with
    the 2013 crop year.
         Repeals the Average Crop Revenue Election (ACRE)
    program beginning with the 2013 crop year.
         Repeals the Counter-Cyclical Payment (CCP) program
    beginning with the 2013 crop year.
         Provides producers with a one-time choice between
    participating in Price Loss Coverage (PLC) or Revenue Loss
    Coverage (RLC). The choice is made on a farm-by-farm and crop-
    by-crop basis. Both options utilize the reference prices given
    below.

                                REFERENCE PRICES
    ------------------------------------------------------------------------
                                                                H.R. 6083 as
            Reference price             Units      Current law     amended
    ------------------------------------------------------------------------
    Wheat.........................           Bu         4.17            5.50
    Rice..........................             Cwt     10.50           14.00
    Corn..........................           Bu         2.63            3.70
    Oats..........................           Bu         1.79            2.40
    Barley\1\.....................           Bu         2.63            4.95
    Sorghum.......................           Bu         2.63            3.95
    Cotton........................           Lb         0.7125        n/a
    Peanuts.......................          Ton       495             535
    Soybeans......................           Bu         6.00            8.40
    Other Oilseeds................             Cwt     12.68           20.15
    Dry Peas......................             Cwt      8.32           11.00
    Lentils.......................             Cwt     12.81           19.97
    Small Chickpeas...............             Cwt     10.36           19.04
    Large Chickpeas...............             Cwt     12.81           21.54
    ------------------------------------------------------------------------

         USDA is directed to use the all-barley price for
    making Price Loss Coverage and Revenue Loss Coverage payments
    for barley.
         Cotton is ineligible for PLC and RLC and instead
    is offered an area-based crop insurance product to resolve the
    World Trade Organization (WTO) dispute with Brazil.
         Reauthorizes nonrecourse loans for loan
    commodities for the 2013 to 2017 crops years at loan rates
    established in current law. Adjustments are made to the cotton
    marketing loan rate to resolve the WTO dispute with Brazil.
         Eliminates the separate farm and non-farm adjusted
    gross income limits. Individuals with a 3-year average adjusted
    gross income greater than $950,000 are ineligible for commodity
    and conservation program benefits.
         Individuals and entities may only receive up to a
    combined total of $125,000 from both PLC and RLC payments.
         Reauthorizes the sugar policy established in
    current law.
         Reauthorizes the Livestock Indemnity Program, the
    Livestock Forage Disaster Program, Emergency Assistance for
    Livestock, Honey Bees and Farm-Raised Fish and the Tree
    Assistance Program.
         Establishes a voluntary risk management safety net
    for dairy producers; the Dairy Producer Margin Protection and
    Dairy Market Stabilization Programs.
         Dairy producers have the option to sign up for
    basic margin protection developed to aid in better risk
    management practices when milk prices and feed prices converge.
         Producers signing up for the margin protection
    program would be subject to the Dairy Market Stabilization
    Program.
         Among the risk management tools authorized for
    dairy producers is a new program that will provide a basic
    level of protection for up to 80 percent of production history
    when margins fall below $4.00 for a consecutive two month
    period.
         Saves $37 million over 10 years, nearly a 10
    percent saving from the current baseline.
         Creates one new program: the voluntary risk
    management, which is tied to a market stabilization program.
         Reauthorizes 3 programs: (1) Dairy Forward Pricing
    Program; (2) Dairy Indemnity Program; and (3) Dairy Promotion
    and Research Program.
         Eliminates 4 programs: (1) Dairy Product Price
    Support Program; (2) Milk Income Loss Contract Program (MILC);
    (3) Dairy Export Incentive Program; and (4) Federal Milk
    Marketing Order Review Commission.

                             Title II--Conservation

         Provides farmers, ranchers, foresters and
    landowners with voluntary, incentive-based financial and
    technical assistance for conservation practices.
         Consolidates 23 programs into 13, while increasing
    flexibility and program efficiency.
         Amends the Conservation Reserve Program to improve
    and focus acres on the most environmentally sensitive lands.
    Enrollment is incrementally scaled back to 25 million acres by
    2017. Flexibility for haying and grazing is included, in
    addition to two million acres reserved for grassland contracts.
    While transitioning acres, expiring contracts are given
    priority consideration for working lands and grasslands
    contracts and Conservation Stewardship Program contracts. The
    Transition Incentives Program (TIP) will continue.
         The Conservation Stewardship Program allows for
    producers to adopt new conservation practices while maintaining
    and protecting existing improvements made on natural resources.
    Enrollment is 9 million acres per year.
         Reauthorizes and amends the Environmental Quality
    Incentives Program to include functions of the past Wildlife
    Habitat Incentives Program (WHIP), providing similar wildlife
    incentives. Also, EQIP provides cost share incentives to
    producers to meet or avoid the need for national, state, or
    local regulation. The Conservation Innovation Grant (CIG)
    subprogram will continue.
         Reauthorizes the Voluntary Public Access and
    Habitat Incentive Program.
         Establishes the Regional Conservation Partnership
    Program (RCPP) by the consolidation of four programs, including
    all of their major functions in order to leverage program
    dollars to increase effectiveness. RCPP allows for USDA and
    outside partners to work directly with producers to address
    natural resource concerns. This is a competitive program that
    USDA will select based on the merit of the targeted regions
    application. The Secretary may designate Critical Conservation
    Areas that are under significant regulatory pressure.
         Creates the Agricultural Conservation Easement
    Program (ACEP) in order to consolidate all easement programs to
    increase flexibility for the administration. ACEP allows for
    different lands to be enrolled into working grassland or
    farmland aspect or the wetland easement portion to enhance
    water quality and wildlife habitat.

                                Title III--Trade

         Amends The Food for Peace Act to emphasize
    building resiliency through development programs.
         Reduces the maximum allowable cash assistance for
    administrative costs in food aid from 13 percent to 11 percent.
         Directs USDA and USAID to consult on improving
    food aid quality and to work together to deploy new
    formulations, and reauthorizes $1 million from the Food for
    Peace Act for these purposes.
         Updates reporting requirements and extends funding
    for monitoring and enforcement of programs.
         Amends The Food for Peace Act by reducing the
    authorization for appropriations from $2.5 billion to $2
    billion per year and sets a minimum level of development
    programming at $400 million per year. Directs USDA and USAID to
    collect information on the benefits of monetization in local
    economies.
         Amends The Food for Peace Act by increasing
    funding for prepositioning from $10 million to $15 million per
    year. Reauthorizes $8 million for shelf-stable, prepackaged
    foods, and extends authorization for the micronutrient
    fortification program.
         Reauthorizes the Market Access Program to provide
    assistance on a cost-share basis, targeting small businesses,
    farmer cooperatives, and non-profit trade organizations.
         Extends the Foreign Market Development, Emerging
    Markets, and the GSM-102 programs through 2017.
         Reauthorizes the John Ogonowski and Doug Bereuter
    Farmer-to-Farmer program and increases the minimum level of
    funding from $10 million to $15 million per year to provide
    technical assistance for agricultural improvements in
    developing countries.
         Extends the Food for Progress Act through 2017 and
    repeals an outdated provision related to a project in Malawi.
         Extends Technical Assistance for Specialty Crops
    (TASC) through 2017 and clarifies that technical barriers to
    trade can be addressed through the program.
         To assist in the conservation of genetic diversity
    in food crops through the collection and storage of the
    germplasm of food crops the Global Crop Diversity Trust is
    extended through 2017 at a contribution level of $50 million.
         Allows for the establishment of an Under Secretary
    of Agriculture for Foreign Agricultural Services, appointed by
    the President with the advice and consent of the Senate, to
    address trade challenges and export opportunities for
    agriculture.

                              Title IV--Nutrition

         Saves $16 billion over 10 years from the
    Supplemental Nutrition Assistance Program (SNAP).
         Restricts program eligibility to those households
    receiving cash assistance from other low-income programs.
         Closes a loophole in SNAP related to the Low
    Income Home Energy Assistance Program (LIHEAP) payments.
         Eliminates state performance bonuses.
         Cracks down on waste, fraud and abuse by ending
    SNAP benefits for lottery winners, providing more
    accountability in the SNAP Employment and Training program, and
    increasing oversight of SNAP programs for the homeless,
    elderly, and disabled.
         Provides the Secretary with more resources to
    prevent trafficking of SNAP benefits.
         Requires states to use an immigration status
    verification system to verify an applicant's immigration
    status.
         Improves the quality of SNAP-approved retail
    stores.
         Seeks to eliminate the advertisement and promotion
    of SNAP.
         Increases assistance for food banks by providing
    an additional $25 million per year for The Emergency Food
    Assistance Program (TEFAP).
         Increases support for Community Food Projects and
    designates funding for projects that provide incentives for
    low-income individuals to purchase more fruits and vegetables.
         Expands the Fresh Fruit and Vegetable Program to
    allow participating elementary schools to purchase fresh,
    frozen, canned and dried produce.
         Establishes pilot programs for the purchase of
    more locally grown foods for schools.

                                Title V--Credit

         Amends Farm Ownership Loans by including ``other
    legal entities'' to the list of eligible borrowers, and
    provides clarification to Secretary for individuals meeting the
    3-year farming or ranching experience requirement.
         Amends Conservation Loan and Loan Guarantee
    Program by raising Loan Guarantee amount from 75 to 90 percent.
         Amends Maximum Loan Value for Down Payment Loan
    Program from 45 percent of $500,000 to 45 percent of $667,000.
         Repeals mineral rights appraisals requirement for
    real estate loans.
         Amends Personal Liability for Youth Loans, on a
    case by case basis, to enable youth to obtain student loans and
    grants for higher education.
         Amends Emergency Loans by adding ``or other such
    legal entities as the Secretary deems appropriate'' to the list
    of approved borrowers.
         Extends the Beginning Farmer and Rancher
    Individual Development Accounts Pilot Program through 2017.
         Amends Direct Farm Operating Loans to grant FSA
    authority to provide young, beginning, veteran and urban
    farmers and ranchers smaller microloans up to $35,000.
         Amends Priority for Joint Financing Participation
    Loans and Down Payment Loans within Direct Farm Ownership Loans
    maximizing number of borrowers served for a given level of
    appropriations.
         Amends median farm size limitation by replacing
    ``median'' with ``average'' allowing more otherwise qualified
    applicants to receive beginning farmer ownership loans.
         Extends Secretary's ability to make loans under
    each subtitle through 2017.
         Extends Loan Fund Set-Asides through 2017.
         Repeals ``rural residents'' requirement allowing
    all youth the opportunity to receive a Youth Operating Loan.
         Extends the State Agricultural Mediation Programs
    through 2017, allowing agriculture and USDA-related disputes to
    be resolved.
         Amends Loans to Purchasers of Highly Fractionated
    Land to meet the needs of Indian tribes and tribal members.

                          Title VI--Rural Development

         Thirteen programs are eliminated and funding
    levels are reduced by more than $1.5 billion over 5 years, a
    50% reduction in authorizations. In addition, $100 million in
    mandatory money is not reauthorized.
         Requires the Secretary to track the success of
    investments through grants and loans in order to improve rural
    development programs. Also requires the Secretary to develop
    simplified application forms to reduce administrative burdens
    and to make programs more accessible to small, rural
    communities.
         Reauthorizes programs to assist rural communities
    in addressing critical water and wastewater needs through loans
    and grants for municipal and household wells. Provides
    opportunities to enhance the public-private partnerships to
    support Rural Water and Waste Disposal Infrastructure in rural
    communities.
         Reauthorizes the Business & Industry Loan
    Guarantee Program with additional changes that allow for small
    rural lenders to more easily participate in local communities
    by improving existing credit structure through the guarantee of
    quality loans that provide community benefits. Funding set
    aside for locally and regionally produced food is capped at 7%
    of the program.
         Reauthorizes the Intermediary Relending Program
    and the Rural Microentrepreneur Assistance Program in order to
    assist small businesses to start or expand their operations.
         Reauthorizes Value-Added Producer Grants with $50
    million in mandatory funding. These grants benefit producers
    and cooperatives that process agricultural commodities to
    capture increased margins directly by the agricultural
    producer.
         Reauthorizes the Broadband Loan Program with
    additional provisions to increase transparency and to ensure
    investments focus on areas without broadband service. Emphasis
    is placed on projects which serve both businesses and homes to
    maximize the economic impact of entire rural areas.
         Reauthorizes Community Facilities programs to
    assist communities in developing essential health, safety, and
    educational assets.
         Reauthorizes the Delta and Great Plains Regional
    Authorities, and the Rural Business Opportunities Grants
    Program to assist communities and regions in the planning and
    execution of economic development activities.
         Amends the Rural Electrification Act to authorize
    loans and grants to promote energy efficiency. Amends fees for
    certain loan guarantees.

              Title VII--Research, Extension, and Related Matters

         Intramural research programs are reauthorized to
    be carried out through the Agricultural Research Service,
    Economic Research Service, National Agricultural Statistics
    Service and the Forest Service.
         Authority for extramural research grants and
    formula funds programs administered by the National Institute
    of Food and Agriculture are extended.
         University research for agricultural activities
    are reauthorized for 1862, 1890 and 1994 Land Grant Colleges
    and Universities.
         Competitive grants for Non-Land Grant Colleges of
    Agriculture (NLGCA) institutions are reauthorized in order to
    maintain and expand research and outreach in regards to
    agriculture, renewable resources and production practices.
         The National Agricultural Research, Extension,
    Education and Economics Advisory Board is reauthorized while
    enhancing the involvement of other agricultural industry
    interest in the consultation of agricultural priorities.
         Agriculture and Food Research Initiative continue
    critical agriculture research by providing competitive grants
    through integrated research and extension activities.
         Enhances accountability, transparency and
    consistency of USDA administered research, extension and
    education funding by mandating that the annual Presidential
    Budget Submission include sufficient information for the
    Congress to thoroughly evaluate and approve future spending
    plans. With regard to extramural competitive grant programs,
    USDA will be barred from obligating appropriated funds unless a
    comprehensive spending plan is submitted with the President's
    budget and approved by Congress.
         The Veterinary Services Grant Program is
    authorized in order to address the shortage of veterinarians.
    This requires an entity to develop programs to relieve
    shortages, support private practices, and support those
    practices that successfully complete a specific service
    requirement.
         The Specialty Crop Research Initiative, Organic
    Research and Extension Initiative, Sustainable Agriculture
    Research and Extension, and the Beginning Farmer and Rancher
    Development Program are reauthorized.

                              Title VIII--Forestry

         The forestry title promotes the health and active
    management of America's national, state, and private forests.
         Conservation programs such as the Forest Legacy
    Program and the Community Open Space Program, and Healthy
    Forest Reserve Programs are reauthorized.
         Contains authority for the Forest Service to
    accelerate its treatment of national forests affected by pine
    bark beetle infestation and natural disasters. This authority
    streamlines the approval process for the Forest Service in
    selecting afflicted areas that need treatment within our
    national forests.
         To assist rural economies, the title reauthorizes
    the Office of International Forestry, which is designed to help
    facilitate the development of foreign markets for domestically
    produced wood products and the Rural Revitalization
    Technologies program in order to provide grants and technical
    assistance to forested rural communities.
         Promotes forest health by extending the Forest
    Stewardship Contracting program for an additional four years,
    allowing the Forest Service to engage in needed restoration
    work on our national forests.

                                Title IX--Energy

         Reauthorizes programs that promote the development
    of advanced biofuels and renewable energy with discretionary
    funding.
         Creates a tiered application process for farmers
    and rural businesses applying for smaller grants under the
    Rural Energy for America Program (REAP).
         Clarifies Congressional intent of REAP by
    eliminating funding for ethanol blender pumps.
         Prioritizes funding of the Biomass Crop Assistance
    Program (BCAP) for the establishment of dedicated energy crops
    by eliminating the collection, harvest, storage, and
    transportation (CHST) payments.
         Ensures certain domestic forest products with
    mature markets are eligible under federal procurement
    guidelines for renewable products under the Biobased Markets
    Program.
         Provides competitive grants to non-profit entities
    to provide information and outreach on the benefits of
    biodiesel fuel use.
         Repeals programs that have outlived their
    usefulness or have never been fully implemented.

                             Title X--Horticulture

         Increases funding to $70,000,000 per year for the
    Specialty Crop Block Grant Program, with funding provided for
    multi-state projects.
         Provides $20,000,000 per year for the Farmers
    Market and Local Food Promotion Program to improve and expand
    direct producer-to-consumer market opportunities including the
    development of local food system infrastructure.
         Combats pest and disease by consolidating two very
    effective programs, the Plant Pest and Disease Management and
    Disaster Prevention Program and the National Clean Plant
    Network. Increases funding for this combined program to
    $71,500,000 per year.
         Provides funding for the Organic Production and
    Market Data Initiatives Program and the National Organic
    Program as well as enhances investigation and enforcement
    tools.
         Provides regulatory relief by eliminating a costly
    and duplicative permitting requirement for pesticide
    applications.
         Imposes a temporary stay on the EPA from acting on
    pesticide registrations based on Biological Opinions from the
    Services not withstanding a peer review.
         Reiterates the authority of the Secretary to
    regulate products of biotechnology under the Plant Protection
    Act.
         Reauthorizes the registration process for
    pesticide manufacturers.

                            Title XI--Crop Insurance

         Requires the Farm Service Agency (FSA) to provide
    an authorized agent or an approved insurance provider (AIP)
    information that may assist in insuring the producer.
         Requires Risk Management Agency (RMA) to publish
    violations of the prohibition on rebates to serve as guidance
    to AIPs, agents and producers.
         Establishes a supplemental coverage option (SCO)
    to provide producers the option of purchasing area coverage by
    itself or in addition to individual coverage. Producers may
    also purchase margin coverage and do so in addition to
    individual and area coverage.
         Continues reduced premiums on enterprise unit
    policies.
         Requires enterprise units to be made available by
    practice.
         Requires the use of data collected by the RMA,
    National Agricultural Statistics Service (NASS), or both, to
    determine yields. Where sufficient county data is not
    available, authorizes the Secretary to use data from other
    sources.
         Adjusts the actual production history used to
    determine insurable yields.
         Requires the Federal Crop Insurance Corporation
    (FCIC) to review policies developed under research and
    development contracting authority, or pilot programs, and
    submit to the FCIC Board for review policies that will likely
    result in viable and marketable policies, provide crop
    insurance in a significantly improved form, and adequately
    protect the interests of producers.
         Provides equitable relief on specialty crop
    policies that were disproportionately adversely impacted by the
    Standard Reinsurance Agreement (SRA) but clarifies that
    Congress does not provide statutory assent to SRA provisions.
         Requires the FCIC Board to ensure that SRA
    renegotiations maintain budget neutrality to the maximum extent
    practicable, and use any savings that may be realized for
    specific crop insurance purposes.
         Limits availability on crop insurance to protect
    native sod.
         Allows producers to elect different coverage
    levels by practice.
         Provides beginning farmers and ranchers with
    additional premium assistance, enhanced T-yields, and the
    ability to use previous producer's APH or an assigned yield.
         Requires a stacked income protection plan to be
    made available to upland cotton producers.
         Requires a revenue crop insurance policy for
    peanut producers to be made available.
         Authorizes AIPs and agents to correct
    unintentional errors to ensure accuracy of all insurance
    information.
         Requires the Secretary to maintain and upgrade
    information management systems and to implement an acreage
    report streamlining initiative.
         Provides for research and development contracting
    priorities. Makes specialty crops, sweet sorghum, biomass
    sorghum, rice, peanuts and sugarcane a research and development
    priority.
         Amends the noninsured crop assistance program
    (NAP) to allow for the purchase of additional NAP coverage with
    respect to crops for which no coverage is available under
    Federal Crop Insurance.

                            Title XII--Miscellaneous

         Reauthorizes National Sheep Industry Improvement
    Center.
         Reauthorizes Trichinae Certification Program.
         Reauthorizes National Aquatic Animal Health Plan.
         Authorizes Report on Compliance with World Trade
    Organization Decision Regarding Country of Origin Labeling.
         Repeals Certain Regulations Under the Packers and
    Stockyard Act, 1912.
         Requires Meat and Poultry Processing Report on
    Better Meeting the Needs of Small Meat and Poultry Growers.
         Amends Outreach and Assistance for Socially
    Disadvantaged Farmers and Ranchers and Veteran Farmers and
    Ranchers.
         Reauthorizes Office of Advocacy and Outreach.
         Authorizes Grants to Improve Supply, Stability,
    Safety, and Training of Agricultural Labor Force.
         Requires Evaluation for Purposes of Prohibition on
    Closure or Relocation of County Offices for the Farm Service
    Agency.
         Prohibits Attending an Animal Fight or Causing a
    Minor to Attend and Animal Fight.
         Reauthorizes Program Benefit Eligibility Status
    for Participants in High Plains Water Study.
         Requires an Office of Tribal Relations.
         Authorizes Military Veterans Agricultural Liaison.
         Authorizes Acer Access and Development Program.
         Prohibits Interference by State and Local
    Governments with Production or Manufacture of Items in Other
    States.
         Increases Protection for Agricultural Interests in
    the Missouri River Basin.

                                Purpose and Need

        The Federal Agriculture Reform and Risk Management Act
    (FARRM) is the product of nearly three years of deliberations,
    including 46 House hearings and audits, a joint deficit
    reduction proposal developed between leaders of the House and
    Senate Committees on Agriculture, and, ultimately, Committee
    consideration and passage on an overwhelming and bipartisan
    basis. As measured by the length of the Committee's
    consideration and by the depth of its evaluation, having fully
    examined the purpose and effectiveness of each and every
    authority under the jurisdiction of the Committee, FARRM is the
    product of extensive analysis and research.
        Once enacted into law, the Congressional Budget Office
    (CBO) estimates that FARRM will yield taxpayers more than $35
    billion in deficit reduction. FARRM proposes to achieve these
    substantial budget savings through significant reform. FARRM
    repeals or consolidates more than 100 programs, saves $16
    billion from SNAP by curbing abuse, eliminates Direct Payments
    and reforms commodity policy at a savings of more than $14
    billion, saves another $6 billion by consolidating 23
    conservation programs into 12, and brings about long overdue
    regulatory relief for farmers and ranchers. The Committee
    believes that if all committees of Congress and all functions
    of government underwent the review, reform, and reductions that
    this Committee has imposed upon policies under its
    jurisdiction, the United States would be well on its way to a
    smaller government and a balanced budget.

                              Title I--Commodities

        For its share, Title I sustains a 37.5 percent reduction.
    These savings are accomplished through a complete reform of
    U.S. farm policy, repealing all of current policy under Title I
    relative to row crops, except for the marketing loan which is
    maintained with an adjustment to the cotton loan in order to
    address a World Trade Organization (WTO) dispute. In lieu of
    current policy, producers are given a choice between two less
    expensive risk management options under Title I as well as some
    additional tools to manage risk that producers may purchase
    under Federal Crop Insurance.
        Upon FARRM's passage, Title I and Federal Crop Insurance
    will have been cut by more than $30 billion over the past seven
    years, contributing $24 billion to deficit reduction. This
    reduction in funding stands in contrast to the rising costs of
    other functions of the U.S. government. Additionally, foreign
    subsidies and tariffs are trending sharply upward according to
    two independent reports issued during the Committee's
    development of FARRM, which serve as prescient reminders of
    both the appropriateness of and need for U.S. farm policy.
        The resilience and strength of the U.S. farm sector over
    much of the past decade, its contribution to two economic
    recoveries and millions of on and off-farm jobs, and its
    positive contribution to the nation's balance of trade have
    been acknowledged by both proponents and opponents of U.S. farm
    policy, but for purposes of advancing very different
    objectives. Relatively strong crop prices and production
    experienced over the past ten years have been viewed by
    opponents as obviating the need for much or even all of farm
    policy, while proponents have pointed to the current policy's
    evident success in creating a positive business environment at
    low cost to the taxpayer--only a small fraction of 1 percent of
    the federal budget. Ultimately, Mother Nature is weighing in on
    the dispute, imposing a widespread and severe drought that
    currently grips at least 29 states. This serves as a reminder
    of the unique risks farmers and ranchers face that necessitate
    effective U.S. farm policy.
        Robust prices for at least some crops, in part brought on
    by the drought, will undoubtedly serve as a straw man for those
    who might still contend that the significant savings and
    reforms achieved by FARRM are insufficient, that the deficit
    and growing national debt demand even more. Those without the
    benefit of history may find this argument compelling. However,
    the nation's experience with the past three farm bills leads to
    a different conclusion. While the 1996 farm bill was predicated
    on forecasts of high prices that ultimately plunged, resulting
    in billions of dollars in additional costs, the 2002 and 2008
    farm bills were predicated on or at least designed to deal with
    dramatic price declines that ultimately never materialized,
    yielding substantially lower costs to taxpayers. Prudent policy
    and honest budgeting, informed by these experiences, directed
    the Committee to couple the fiscal successes of the previous
    two farm bills with the market-orientation and regulatory
    relief of the 1996 law in order to accomplish significant
    savings and reform.
        It is in the context of these overarching objectives that
    the Committee took into consideration the substantive policy
    priorities of all those impacted by a farm bill, including the
    nation's farmers and ranchers. Relative to the farm safety net,
    despite what seemed at times to be a cacophony of views,
    several key themes constantly emerged.
        The first and most widely shared theme is that Congress
    should do no harm to Federal Crop Insurance. The cuts made in
    the 2008 farm bill, the cuts made unilaterally by the
    Administration just two years later in its renegotiation of the
    Standard Reinsurance Agreement (SRA), and dramatic policy
    changes elsewhere in the administration of crop insurance,
    raised the alarm that 32 years of progress in making crop
    insurance the cornerstone of U.S. farm policy it is today could
    be jeopardized. One of the most significant challenges the
    Committee faced was honoring producer priority to protect crop
    insurance while also satisfying the wishes of some producers
    who wanted a revenue-based program offered under Title I, goals
    which are to some extent at cross purposes due to interaction.
        The second and third themes--producer choice and price
    protection respectively--are also widely held, though there are
    earnest differences as to approach. From hearings held in all
    regions of the country, it was evident that producers were
    uncomfortable with Washington creating a one-size-fits-all
    approach to Title I. It would be a mistake, however, to
    interpret the concern on the part of these producers as being
    interested in a choice simply for the sake of being allowed to
    make one. Even among producer groups and producers who
    expressed a common preference for revenue-based support under
    the commodity title, differences were sufficient to produce two
    alternate options that farmers could choose from under the
    Senate farm bill.
        However, it is price protection that is at the heart of
    producers' interest in choice. For producers of some crops,
    limited variances in yield from year to year greatly diminished
    the value of a farm policy based on revenue because their peril
    was not revenue but rather price. Although frequently
    mischaracterized as a regional divide separating northern and
    southern producers and crops, omission of a price-based
    alternative to revenue-based programs would disenfranchise
    producers of every crop from every region who contended that
    the farm bill's primary purpose is to address long-term price
    declines.
        In regard to cotton policy, the Committee weighed the
    options carefully in light of ongoing efforts to resolve the
    WTO dispute with Brazil. As the report to the 2008 farm bill
    chronicles, very substantial changes have been made to U.S.
    cotton policy to address the WTO complaint, including in the
    2006 budget reconciliation and the 2008 farm bill. These
    reforms to U.S. cotton policy have occurred alongside major
    changes in cotton prices, reductions in U.S. cotton acreage and
    increases in Brazil cotton acreage, as well as increases in
    Brazilian support for its producers since the time the Brazil
    cotton case was initiated. The fundamental change in U.S.
    cotton policy included in the House farm bill eliminates any
    objectionable remnant of that policy.
        In relation to rules of eligibility, as part of overall
    reform efforts, the Committee reluctantly imposes a lower
    adjusted gross income (AGI) means test that is uniform to all
    income sources for the commodity programs in Title I and for
    Title II conservation programs. AGI rules were sharply lowered
    four years ago in the 2008 farm bill and changed again just
    last year as part of the annual appropriations process.
    However, the Committee does maintain reasonable payment
    limitations and rules that allow producers to share the risks
    of farming with family members and do so without confronting
    new obstacles and added layers of bureaucratic red tape.
        Finally, the Committee considered and rejected proposed
    changes to U.S. sugar policy that would have reverted the
    policy to 1985. U.S. sugar policy has operated at zero cost to
    taxpayers and is projected to remain a zero cost policy into
    the future. Under WTO and NAFTA commitments, the United States
    is the biggest importer of sugar in the world and has a totally
    open market with Mexico. However, heavily subsidized and
    protected foreign sugar producing countries distort global
    markets, alternately shorting world supplies and driving up
    prices or glutting world supplies and depressing prices,
    divorced from real market forces. U.S. sugar policy allows
    highly efficient U.S. producers to remain competitive on a
    lopsided global playing field while providing safe, low cost
    sugar to consumers.

    Supplemental Agricultural Disaster Assistance Programs

        The Committee reported bill maintains existing disaster
    assistance for livestock producers when their livestock die due
    to severe weather, disease, or other acts of nature. It also
    continues assistance for natural disasters that destroy forage
    used for grazing, honey bees, farm fish, orchard trees, and
    nursery trees. The Livestock Indemnity Program, the Livestock
    Forage Disaster Program, Emergency Assistance for Livestock,
    Honey Bees, and Farm-Raised, and the Tree Assistance Program
    are established and proven programs in the livestock and the
    orchard & nursery tree sectors.
        Rapidly rising input costs, volatile export markets,
    natural disasters, and other unpredictable factors present
    production risks to animal agriculture. The emerging drought in
    the summer of 2012 is an example of an unpredictable event with
    the potential to upset business models and adversely affect
    producers and consumers. Many crops have access to insurance
    products that help them manage this production risk. The
    Committee applauds the efforts of the animal agriculture
    community to explore such products as evidenced by a number of
    reports called for in this legislation, including swine
    catastrophic disease loss, poultry business interruption, and
    poultry catastrophic disease loss insurance.
        Unless and until additional insurance products can be
    developed and adopted by the livestock sector, these programs
    will be a vital tool to help manage production risks and
    protect animal agriculture, and ultimately consumers, from the
    consequences of natural disasters.
        In the case of orchardists and nursery tree growers who
    produce trees, bushes and vines for commercial purposes, the
    Tree Assistance Program helps them replant trees, bushes and
    vines destroyed by natural disasters.

    Dairy Margin Protection Program

        The failure of existing dairy programs to address the
    challenges faced by dairy farmers in recent years led the
    Committee to reconsider the best means for managing price
    volatility and producer risk in the dairy sector.
        Current dairy programs focus on price support. While milk
    prices were mostly stable when these supports were first
    enacted, annual fluctuations in farm milk prices are now
    routine, with milk prices regularly moving between lows and
    record or near-record highs over the past decade. In 2009, the
    dairy industry suffered dramatic losses, as dairy prices fell
    sharply from record highs in 2007-2008 at a time when feed
    costs were rising substantially above long-run averages.
        While milk price is an important factor for the financial
    success of dairy producers, another significant factor is the
    cost of dairy feed, which accounts for about three-quarters of
    a dairy farm's operating costs or about one-half of total
    costs.
        In light of these considerations, focus has shifted to a
    safety net that is centered on a ``milk margin.'' The margin is
    the amount available to pay all other costs once the feed bill
    is paid and can be calculated by subtracting a national feed
    cost from the national farm milk price.
        The dairy margin protection program is designed to address
    both catastrophic conditions, which can result in the severe
    loss of equity for dairy farmers, such as those witnessed in
    2009, as well as long periods of low margins, such as those
    experienced in 2002.
        For producers who elect to participate, basic catastrophic
    coverage will be provided at no cost. According to testimony
    from Food and Agricultural Policy Research Institute (FAPRI) to
    the House Agriculture Committee's Subcommittee on Livestock,
    Dairy, and Poultry, ``Although base program coverage comes at
    no cost to producers, the probability of receiving a large
    payment from the base program is small.''
        Participating producers who exercise their option to buy
    supplemental margin protection coverage will be able to access
    a specific level and amount of risk management protection that
    is tailored to their farms' risk management needs. By offering
    a lower premium on supplemental coverage for the first 4
    million pounds of production, the Committee has incentivized
    producers of all sizes to utilize this risk management tool on
    at least a portion of their production.

    Dairy Market Stabilization Program

        Voluntary participation in the margin protection program
    requires producers to be subject to the dairy market
    stabilization program. According to testimony from the National
    Milk Producers Federation to the House Agriculture Committee's
    Subcommittee on Livestock, Dairy, and Poultry, ``The purpose of
    the program is to make what occurs naturally in the marketplace
    occur sooner and faster and reducing price volatility. . . . It
    also reduces that cost of the margin program resulting in
    savings compared to current dairy programs. . . . The simple
    fact of the matter is that dairy farmers and the cooperatives
    they own bear the burden of balancing the supply of milk with
    processor demand for that milk.''
        In order to address the concern about the effect a supply
    management program may have on the U.S. dairy industry growing
    export potential, the program incorporates a series of
    qualifiers that would prevent any reduction in domestic supply
    of milk if the U.S. and world prices misaligned.
        According to testimony from FAPRI to the House Agriculture
    Committee's Subcommittee on Livestock, Dairy, and Poultry, when
    the stabilization program operates, it lasts a very short
    period of time because of the world price triggers. FAPRI's
    analysis used a stochastic model to draw 500 alternatives for
    the conditioning variables in determining the dairy baseline,
    which incorporate historical distributions of the conditioning
    factors to make certain any historical correlation in these
    conditioning factors is included. None of the 500 potential
    outcomes show long-term multi-year operation of the program.

    Repeal of Dairy Product Price Support Program

        The Dairy Product Price Support Program was created in 1949
    as a means to help provide government support for farm-level
    milk prices through government purchases of dairy products.
    During most of its lifespan, the program targeted a set milk
    price, and later established pricing targets for federal
    purchases of key products, such as cheese, butter, and nonfat
    milk powder, that would help support that milk price. In the
    2008 Farm Bill, the program was altered to support specific
    product price levels.
        Many in the dairy industry have advocated for the repeal of
    this program for several reasons. First, it supports dairy
    farmers all around the world, including America's competitors.
    The current program helps balance world supplies by encouraging
    the periodic global surplus of milk products to be purchased by
    U.S. taxpayers. As a result, dairy farmers in other countries,
    particularly the Oceania region, enjoy as much price protection
    from the program as our own U.S. farmers.
        Secondly, the program has reduced total demand for U.S.
    dairy products by diverting some of the U.S. milk products into
    government warehouses, rather than to commercial buyers. It
    creates a dynamic where it is more difficult for the U.S. to be
    a consistent supplier of many products, since sometimes the
    domestic industry has products to export, and at other times,
    it is easier for the domestic industry to just sell its product
    to the government.
        Thirdly, the program disincentivizes product innovation by
    creating a government market for products that the marketplace
    doesn't want. For example, because the government purchases
    nonfat dry milk, too much of this is produced instead of
    protein-standardized skim milk powder, as well as specialty
    milk proteins, such as milk protein concentrates, which are in
    demand both domestically and internationally.
        Also, USDA only buys products of certain size and packaging
    specifications. Once purchased, nonfat dry milk powder
    returning back to the market from government storage also
    presents challenges, dampening the recovery of prices.
        Finally, the program seeks to achieve price levels that are
    no longer relevant to farmers, as the price support levels have
    been considerably less than the cost of production for many
    years. As demonstrated by the dairy crisis of 2009, this
    program was not an effective safety net.

    Repeal of Milk Income Loss Contract Program

        The Milk Income Loss Contract (MILC) program is a price-
    based safety net, which is ineffective for today's dairy
    producers.
        Since the inception of MILC, large dairy farm operators
    have expressed concern that the payment limit has negatively
    affected their income. For larger farm operations, their annual
    production is well above the limit, and any in excess of that
    receives no risk protection. Limiting the level of protection
    to a maximum of 2.985 million pounds of milk a year provides a
    safety net for less than 30 percent of the total milk produced
    in the U.S.
        Despite the feed cost adjustor that was added in the 2008
    farm bill, MILC does not adequately offset high feed costs. If
    milk prices are at average levels and feed costs are high,
    farmers can suffer substantial losses and still not receive any
    assistance from MILC. The feed cost adjustment program does not
    go into effect until the standard feed ration reaches $147 per
    ton, and it also only covers about 30 percent of the feed price
    increase above this level.
        The inadequacy of MILC as a safety net was most evident
    through most of 2008, when high feed costs overwhelmed average
    milk prices and put most farmers into a deep hole without the
    help of any MILC payments.

    Repeal of Dairy Export Incentive Program

        The Dairy Export Incentive Program (DEIP) has generally
    been used in concert with the dairy price support program. As
    such, it has only been made available in a very limited way
    after the price support program has begun purchasing and
    storing dairy products.
        Instead of expanding world markets for U.S. dairy products
    which requires a long-term commitment to serving those markets,
    the U.S. government has only used DEIP either in response to
    heavy European subsidization of dairy exports or as an
    alternative to storing products under the price support
    program. The program generates a baseline cost without
    providing any consistent, meaningful return to the U.S. dairy
    sector.

    Extension of Dairy Forward Pricing Program

        The ability for producers and processors to manage price
    risk is limited under the Federal Milk Marketing Order system.
    By extending the dairy forward pricing program, producers and
    processors will be able to continue to make use of forward
    contracting to manage price risk, without the practice being
    found a violation of the requirements of marketing orders. The
    program is strictly voluntary and will only apply to Classes
    II, III and IV milk.

    Extension of Dairy Indemnity Program

        The Dairy Indemnity Program provides payments to dairy
    producers who have been directed by a public regulatory agency
    to remove their milk from the commercial market because it has
    been contaminated by pesticides, toxic substances, and/or
    chemical residues. Because such events can be devastating to
    the financial well-being of producers through no fault of their
    own, the Committee proposes to extend the program's
    authorization through FY 2017.

    Extension of Dairy Promotion and Research Program

        The Dairy Production Stabilization Act of 1983 authorized a
    national producer program for dairy product promotion,
    research, and 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.

    Federal Milk Marketing Order Review

        The 2008 farm bill revised the federal milk marketing order
    amendment procedures in order to streamline and expedite the
    amendment process. As there continues to be interest in
    marketing order reform, stakeholders are encouraged to make use
    of this administrative process, which allows for petition of
    the Secretary at any time and a hearing process whereby
    producers and processors can provide input. The House
    Agriculture Committee continues to provide oversight of this
    process and refrain from any legislative changes to the order
    system until stakeholders have exhausted their administrative
    remedies.

                             Title II--Conservation

        The conservation title authorizes cost-share and technical
    assistance for farmers, ranchers, foresters, and landowners
    through voluntary, incentive-based conservation programs.
    Through these programs, producers protect and restore water
    quality and quantity, air quality, wildlife habitat and address
    regulatory requirements while providing a safe, abundant, and
    affordable food supply. The conservation programs have grown in
    size and significance in recent farm bills.
        The Food Security Act of 1985 authorized several
    conservation measures intended to address concerns about the
    impact of agricultural production on soil erosion and wetland
    loss. The 1996 Farm Bill took the groundbreaking step of
    consolidating previously discretionary funded programs into one
    new program funded with mandatory money from the Commodity
    Credit Corporation (CCC). The program created, the
    Environmental Quality Incentives Program (EQIP), is one of the
    most successful and popular programs among farmers and
    ranchers.
        During consideration of the Farm Security and Rural
    Investment Act of 2002, budget circumstances allowed for the
    expansion of conservation programs with the addition of $17.5
    billion to the conservation baseline for the life of the 2002
    Bill and the out-year baseline as well. The Conservation
    Security Program was created.
        Despite budget pressures, the Food, Conservation, and
    Energy Act of 2008 increased conservation spending by nearly
    $4.5 billion during the life of the bill and created new
    targeted conservation programs such as the Chesapeake Bay
    Program, the Cooperative Conservation Partnership Initiative
    (CCPI), and the Conservation Stewardship Program (CSP).
    However, the Wetland Reserve Program (WRP), the Grassland
    Reserve Program (GRP), the Small Watershed Rehabilitation
    Program, and the Voluntary Public Access and Habitat Incentive
    Program remained without adequate baselines given the demand
    and interest in these programs.
        The Committee recognizes that these programs serve as a
    foundation for improved conservation efforts. The Committee's
    priority to assist farmers and ranchers in addressing
    environmental regulations and conservation needs has not
    changed. The Committee reported bill maintains the core
    functions and goals of the conservation title while eliminating
    or combining 23 duplicative and overlapping programs into 13
    programs to allow for streamlined delivery, while also
    providing $6.1 billion in savings below baseline funding.

    Conservation Reserve Program (CRP)

        The Committee strongly supports the Conservation Reserve
    Program as one of the main pillars of cost-effective
    conservation available to farmers and ranchers. However,
    through the hearing process, the Committee recognized that
    market pressures are moving land into production. Maximum
    enrollment of CRP is incrementally stepped down to 25 million
    acres allowing enrollment to focus on the most environmentally
    sensitive lands. Additionally, the Committee reported bill
    further addresses this issue by directing the Secretary to
    conduct a onetime early out of land that is not considered
    environmentally sensitive.
        The reported bill directs the Secretary to reserve two
    million acres under CRP for working grassland contracts to
    capture land that was previously eligible under GRP. The
    reported bill further directs USDA to provide landowners with
    added flexibility to better manage their enrolled acres with
    managed activities such as haying and grazing or in the cases
    of drought or other emergencies.
        To ensure that environmental benefits are maintained, the
    reported bill gives expiring CRP acres priority consideration
    for working grassland contracts, and the Conservation
    Stewardship Program, as well as the ability to enter into
    contracts under working land programs before the CRP contract
    expires. Beginning farmers or ranchers will continue to be
    eligible for greater access to productive land with the
    continuation of the Transition Incentives Program (TIP).
        The Committee is concerned that USDA has not been fully
    utilizing CRP technical assistance authorities and funding
    enacted by the 2008 Farm Bill for agency infrastructure,
    including outreach, training, and other technical services. The
    Committee expects USDA to better utilize this authority for
    internal support and to support outreach and partnership with
    non-governmental organizations and other qualified entities to
    ensure that producers and landowners are fully aware of their
    options under the program.
        The Committee directs the Secretary of Agriculture to,
    within one year of enactment, report to Congress on the quality
    of land currently enrolled in CRP based on the land capability
    classification system, the erodibility index, other eligible
    lands criteria, and natural resource benefits. The report
    should include justification for using the prescribed
    environmental benefits index threshold for any acres enrolled
    into the program after enactment. The Secretary shall complete
    such a report five years thereafter and include the same
    information on land quality and decisions to enroll types of
    acres based on the environmental benefits index. If the
    decision is made to use a different environmental benefits
    index threshold or methodology for making decisions to enroll
    program contracts, reasons for the decision should be included
    in the report.
        Additionally the Committee directs the Secretary of
    Agriculture, within two years of enactment, to complete a
    comprehensive economic impact study that specifically evaluates
    the impact the CRP has had on rural communities. The report
    should include the average county rental rates and rental rates
    paid for CRP land.
        While the Committee agreed to an overall reduction in the
    maximum acres that could be enrolled in CRP, this should not
    serve as an indicator of declining or reduced support for CRP.
    The Committee intends for CRP to be implemented at authorized
    levels, and for the program to continue as one of USDA's key
    conservation programs. Because there are widespread concerns
    that CRP rental rates are below prevailing local market levels,
    USDA shall update rental rates annually and use incentive
    payments for continuous CRP practices to make the program
    competitive with other programs and more economically viable
    for producers.

    Conservation Stewardship Program (CSP)

        The Conservation Stewardship Program encourages producers
    to adopt new conservation measures while maintaining current
    practices to protect natural resources. The Committee
    encourages the Secretary to place emphasis on adopting new
    practices; with new contracts addressing at least one
    additional priority resource concern and renewing contracts
    that address at least two priority resource concerns.
        The Committee intends for the supplemental payment to
    encourage producers to adopt new, additional beneficial crop
    rotations that provide significant conservation benefits. The
    payments are to be available to producers across the country
    and should not be limited to a particular crop, cropping
    system, or region of the country. In the Southeast, peanuts are
    an example of a crop that responds well to increased rotation
    lengths, which help peanut producers, conserve water, more
    effectively control disease, and reduce inputs to control
    disease and increase productivity. Alfalfa is another important
    rotation crop in many parts of the country and plays a role in
    adding value to a producers' operation as well as providing
    natural resource benefits. The Committee recognizes sorghum's
    very significant contributions to resource conservation as a
    water-conserving crop and expects the Secretary to include
    sorghum in any supplemental payments for resource conserving
    crop rotations made available under the CSP, in addition to
    maximizing sorghum's role in achieving the purposes of the
    Regional Conservation Partnership Program and the Environmental
    Quality Incentives Program.
        The Committee believes conservation programs as implemented
    by USDA should recognize the use of innovative technology such
    as enhanced efficiency fertilizers. Enhanced efficiency
    fertilizers, which reduce nitrate losses to the environment,
    help protect water quality, and reduce greenhouse gas
    emissions, include slow- and controlled-release fertilizers
    (absorbed, coated, occluded or reacted) and stabilized nitrogen
    fertilizers (nitrification inhibitors and nitrogen stabilizers)
    and are recognized by NRCS' 590 National Nutrient Standard and
    by State regulators of fertilizers.

    Environmental Quality Incentives Program (EQIP)

        The Environmental Quality Incentives Program provides cost
    share incentives to producers to meet or avoid the need for
    national, state, or local regulation. Under the Committee
    reported bill, EQIP will provide additional incentives for
    wildlife by consolidating the functions of the Wildlife Habitat
    Incentives Program (WHIP) and requiring 5% of the program
    funding to go towards wildlife habitat incentives.
        The Committee addresses the concerns heard in hearings and
    field hearings regarding beginning farmers by maintaining set-
    asides for beginning farmers or ranchers and socially
    disadvantaged producers while including a priority for veteran
    farmers. Producers under these set-asides would also be
    eligible to have up to 50% of upfront project costs covered in
    advance.
        The Committee recognizes the broad responsibilities of the
    EQIP program and the great work that it does in promoting
    environmental stewardship among livestock and poultry farmers
    around the country and maintains that 60% of allocation go
    towards these producers. Within six months of enactment, the
    Committee requests from USDA a report on funds spent over the
    duration of the last Farm Bill and on whether NRCS has met its
    statutory obligations. Additionally, the Committee encourages
    NRCS to evaluate its education program and make sure that it is
    providing all potential users within each state an opportunity
    to become educated about the EQIP program and how each farmer
    can incorporate EQIP into their farm stewardship management
    plans. The Committee also requests a comprehensive breakdown of
    practices used and how each state spent its allocated funds to
    also be included in the report.
        The program maintains the Conservation Innovation Grant
    (CIG) subprogram to promote new and innovative conservation
    practices. The reported bill directs the secretary to report to
    the Committee every two years on project funding and results of
    projects authorized under CIG. The Committee intends for
    increased transparency over innovative conservation projects
    and monitoring that these innovative conservation practices are
    later incorporated into common conservation practices.
        The Committee reported bill does not reauthorize the Air
    Quality Initiative; however, the Committee intends for EQIP to
    continue to provide financial assistance to producers operating
    in nonattainment areas to make air quality improvements,
    including reducing emissions from mobile or stationary sources,
    to help them comply with Federal air quality standards and
    associated requirements or regulations.

    Agriculture Conservation Easement Program (ACEP)

        The Committee reported bill addresses duplication and
    funding issues identified with FRPP, WRP, and GRP by
    consolidating their functions into one easement program for
    streamlined and flexible administration. ACEP consolidates all
    easement programs into one umbrella program with two legs: (1)
    Agriculture Land Easements (ALE) to protect grasslands or
    farmland from non-agriculture development and (2) Wetlands
    Easements to restore, maintain, and protect wetlands.
        The reported bill establishes that the federal match of ALE
    will not exceed 50% of the eligible land's fair market value.
    However, the Committee recognizes that historically the
    purchase of grasslands easements have occurred with a higher
    federal match. The reported bill gives the Secretary the
    authority to pay up to 75% of the fair market value to address
    the purchase of grassland easements.
        The Committee directs the Secretary, at a national level,
    to reserve 40% of allocations for agriculture land easements
    until 2016 and 50% in 2017. The Committee intends that states
    will have the flexibility to allocate funding as appropriate to
    address the eligible lands in their region.

    Regional Conservation Partnership Program (RCPP)

        The Committee understands that a targeted approach to
    conservation practices can achieve a greater conservation
    benefit. The Committee is also cognizant of specific regions of
    the country that are under significant regulatory pressure or
    have serious concerns regarding specific natural resources. The
    Committee reported bill creates the Regional Conservation
    Partnership Program by consolidating four programs into one
    targeted initiative that leverages USDA funding and resources
    by partnering with private organizations to address natural
    resource concerns.
        The Committee eliminates the Agricultural Water Enhancement
    (AWEP) Program, the Chesapeake Bay Watershed Program, the
    Cooperative Conservation Partnership Initiatives (CCPI)
    Program, and the Great Lakes Basin Program. However, the
    functions of each of these programs are still necessary and the
    Committee intends for the Secretary to capture their functions
    in the implementation of the RCPP. Eligible conservation
    practices implemented currently through these programs should
    be continued under the new consolidated program.
        Targeted conservation initiatives will be developed on the
    local level and selected by USDA through a competitive, merit
    based application process. All resource concerns should hold
    equal weighting. The Committee encourages the Secretary to
    distribute funding equitably across the nation and to not
    ignore different natural resource concerns that may be unique
    to each region.
        The Committee strongly encourages the Secretary to only
    choose partners who have a successful history of working with
    agriculture producers.
        Additionally, USDA may designate Critical Conservation
    Areas to target conservation programs in regions under
    significant regulatory pressure. The Committee reported bill
    has set allocation levels for the state and national levels in
    addition to the Critical Conservation areas to help address
    priorities.

    Funding and Administration

        Section 2607 of the Committee reported bill combines
    language on improved administrative efficiency and streamlining
    from individual programs and places it here to apply to all
    conservation programs. It expands and clarifies requirements
    for developing a streamlined conservation application process.
    It clarifies that any payment received under this title is in
    addition to and does not affect total payments that an owner or
    operator is otherwise eligible to receive. The Committee
    encourages the Secretary to significantly increase the use of
    computer-based conservation practice planning tools that
    incorporate Light Detection and Ranging elevation data to
    modernize and simplify conservation planning, improve
    efficiency of technical assistance, and improve service to
    private landowners.

                                Title III--Trade

    Humanitarian assistance and agricultural development programs

        The United States provides nearly half of all food aid
    provided around the world through emergency humanitarian
    responses and non-emergency, agricultural development programs.
    The Committee reported bill modifies the general authorities in
    Title II of the Food for Peace Act to place a greater emphasis
    on projects which focus on building resiliency in the recipient
    population where food shortfalls and droughts are common.
        The Committee reported bill adjusts the maximum allowable
    level of cash assistance for administrative and programmatic
    costs in Title II of the Food for Peace Act to ensure that
    scarce cash resources are made available only for costs and
    expenses which cannot be readily funded through the
    monetization process in the first period of a new project. The
    Committee expects USAID to closely evaluate its guidance and
    approval process to ensure that direct and indirect program
    costs are clearly defined and to ensure that administrative
    costs in the programs are minimized.
        In May 2011 the Government Accountability Office (GAO)
    completed a report which cites deficiencies in the nutrition
    and quality controls of U.S. food aid commodities. Included in
    this report are recommendations that USAID review food aid
    packaging, track food aid quality throughout the supply chain,
    and ensure that available food aid commodities meet the
    nutritional needs of recipients. The Committee notes that USAID
    has sufficient and specific authority to address the
    recommendations made by GAO, and expects USAID to build strong
    public-private partnerships with food manufacturers and other
    stakeholders to more quickly address the deficiencies
    highlighted in the May 2011 report using currently available
    studies on food aid quality and nutrition. The Committee
    reported bill reauthorizes funding at a lower level for these
    activities to encourage USAID to focus on deploying food aid
    products already developed under this authority.
        The Committee reported bill directs USDA and USAID to
    establish a formal mechanism by which new products will be
    approved through both agencies in a timely manner. In the view
    of the Committee, USDA and USAID are not coordinating
    sufficiently and should quickly modify the interagency process
    to ensure new food aid commodities are made available to
    appropriately target recipient populations. In support of
    efforts to provide appropriate commodities to vulnerable
    populations, authority is extended for shelf-stable,
    prepackaged foods and micronutrient fortification of food aid
    commodities.
        The Committee notes that while USAID places significant
    burdens for success of programs upon implementing partners and
    other stakeholders, feedback from these groups through the Food
    Aid Consultative Group (FACG) is not adequately incorporated
    into program guidelines. The Committee reported bill instructs
    USAID to give sufficient notice of changes to the FACG before
    new guidance is finalized, and requires new guidance to be
    promulgated in a timely manner after any changes to the Food
    for Peace Act.
        Authority is extended for the Famine Early Warning System
    Network to provide advance information to more quickly and
    effectively respond to an emerging crisis. However, the
    Committee is disappointed in efforts by USAID to complete
    implementation of new information technology systems authorized
    in previous legislation. No additional funding is provided for
    new information technology systems, and the Committee fully
    expects USAID to complete development and management of those
    systems without additional Food for Peace resources.
        Funding is continued for additional monitoring and
    evaluation of programs at a level which reflects resources
    available for Food for Peace programs. The Committee reported
    bill also requires that USAID report on the monitoring and
    evaluation activities actually conducted. In 2009 GAO concluded
    that monitoring of programs was inconsistent and that program
    management was not modified to reflect information gained from
    the monitoring and evaluation conducted by or for USAID.
    Through provisions in the Committee reported bill, the
    Committee expects USAID to make significant improvements in
    program guidance based on the monitoring and evaluation
    conducted.
        In June 2011 GAO reported on inefficiencies and adverse
    impacts of monetization. The Committee agrees that both USDA
    and USAID should have consistent policies governing both
    agencies monetization activities. The Committee reported bill
    requires that USAID consider the benefits of monetization when
    considering a proposal under Food for Peace. The Committee
    notes existing requirements for USDA and USAID to approve only
    those sales which will not disrupt the usual marketing and
    processing of commodities in the recipient country, and
    clarifies that commodities should be sold at a fair market
    value.
        Recognizing the necessity of responding quickly to
    humanitarian emergencies, authority is increased for the
    prepositioning of food aid commodities which allows USAID to
    increase the number of prepositioning sites, as appropriate.
        The Committee reported bill reduces the authorized level of
    funding for the Food for Peace Act while extending sufficient
    authority to provide funding above the ten-year average
    appropriation. The Committee recognizes the importance of non-
    emergency agricultural development programs to create resilient
    communities in vulnerable populations, and extends minimum
    levels of funding to support development activities.
        The Committee is disappointed that the report on local and
    regional purchase of food aid commodities, which was required
    under previous legislation, was not made available to the
    Committee prior to consideration of the bill as introduced. The
    report was expected to quantify the challenges associated with
    relying on purchases of foreign commodities to address acute
    humanitarian needs. The Committee also recognizes that more
    than $300 million in local purchases of commodities is
    routinely carried out under authorities contained in other
    legislation.
        The Committee reported bill increases authority for the
    John Ogonowski and Doug Bereuter Farmer-to-Farmer Program
    contained in the Food for Peace Act to extend the program which
    mobilizes U.S. volunteers from the agricultural industry,
    universities, and non-profit organizations to assist their
    counterparts in developing and emerging economies.

    Trade Programs

        The U.S. agricultural industry is highly dependent on
    exports, with nearly a third of all cash receipts generated
    from international markets. The Committee reported bill ensures
    that U.S. producers are able to capitalize on these
    opportunities by making strategic investments in programs
    designed to address foreign barriers to U.S. exports. Increased
    margins for U.S. farm output translates to greater capital
    flows back to rural America, supporting farms and their rural
    communities.
        The Market Access Program is reauthorized to provide
    assistance on a cost-share basis, targeting small businesses,
    famer cooperatives, and non-profit trade organizations. Private
    contributions are estimated at 60 percent of total annual
    spending on trade promotion and market development, further
    increasing the effectiveness of promotional activities.
        Additional programs which are reauthorized include the
    Foreign Market Development Program which gives preference to
    trade groups which represent an entire industry, Technical
    Assistance for Specialty Crops to address non-tariff trade
    barriers for specialty crop exports, and the Emerging Markets
    Program to promote generic U.S. exports in emerging economies.
        The Committee reported bill also reauthorizes the GSM -102
    program while preserving USDA's authority to manage usage of
    the program to meet certain administrative goals, including the
    ability to adjust tenor and fees associated with guarantees
    made available under the program.
        The Committee recognizes that exports are vitally important
    to the U.S. economy. Given the need to spur economic growth and
    job creation the Committee reported bill amends the Department
    of Agriculture Reorganization Act of 1994 to provide for the
    establishment of an Under Secretary of Agriculture for Foreign
    Agricultural Services. The agricultural sector has been and
    continues to be a major contributor to the nation's overall
    level of exports and is one of only a few sectors of the
    economy that traditionally has had a positive net trade
    balance. However, U.S. agricultural exports face increased
    barriers overseas.
        The Committee reported bill meets the need to address
    tariff and non-tariff trade barriers for U.S. agricultural
    exports by providing a full time, singular focus on trade and
    foreign agricultural programs. The Committee expects this new
    focus to allow more effective coordination and to provide a
    single point of contact for resolving internal and external
    trade and foreign agricultural affairs issues through a high
    level of representation for agricultural trade issues within
    the Executive Branch and with Congress, stakeholders, foreign
    governments and international bodies. The Committee does not
    intend for this provision to create the need for additional
    personnel or appropriations for USDA.

                              Title IV--Nutrition

    Supplemental Nutrition Assistance Program (SNAP)

        The Supplemental Nutrition Assistance Program (SNAP),
    formerly known as the food stamp program, has seen
    unprecedented growth over the past ten years and today accounts
    for almost 80 percent of the Committee's mandatory spending.
    Consequently, the Committee agreed to make reforms in SNAP that
    resulted in a reduction of $16 billion over ten years, which is
    a two percent reduction to the program.
        The Committee views these changes as part of its ongoing
    responsibility to ensure that SNAP is of the highest integrity.
    The provisions passed by the Committee will close program
    loopholes; reduce waste, fraud and abuse; and ensure that the
    program continues to serve those who are in need of food
    assistance according to the rule of law. It is the Committee's
    clear intent that families who lawfully qualify for assistance
    under SNAP law are not prevented from receiving their benefits.
    The changes made to SNAP in the 2008 farm bill remain fully
    intact and will continue to benefit SNAP participants.
        The Committee agrees that SNAP provides important support
    for many Americans and these reported provisions further
    protect the program. In order to ensure the integrity of this
    program, the Committee will continue to refine SNAP to better
    target valuable benefits to serve those in need, while making a
    reasonable reduction in the deficit.

    Making Common Sense Reforms and Closing Program Loopholes

        The FARRM Act makes common sense reforms to SNAP
    eligibility. Since passage of the Personal Responsibility and
    Work Opportunity Reconciliation Act of 1996, states have had
    the option of using ``categorical eligibility,'' or automatic
    eligibility, to streamline SNAP administration for those
    receiving benefits from other low-income assistance programs.
    These other programs are Temporary Assistance for Needy
    Families (TANF), Supplemental Security Income (SSI), or other
    state general assistance programs. TANF assistance can be in
    the form of cash or non-cash benefits (i.e. informational
    brochures, or access to an informational 800-number). When
    states implement ``broad-based'' categorical eligibility, they
    may permit households to use the asset and gross income test of
    the alternate assistance program. As of May 2012, 43
    jurisdictions (40 States, the District of Columbia, Guam, and
    the U.S. Virgin Islands) have implemented broad-based
    categorical eligibility. These jurisdictions generally make all
    households with incomes below a state-determined income
    threshold eligible for SNAP.
        The bill would restrict categorical eligibility to only
    those households receiving cash assistance from SSI, TANF, or a
    state-run general assistance program, saving taxpayers $11.5
    billion over ten years. This would disqualify those merely
    receiving a TANF-funded brochure, a referral to an ``800''
    number telephone hotline, as well as other non-cash assistance.
    It is estimated that 3.9 percent of the 46.2 million people
    currently enrolled in SNAP would be affected by this provision.
    Those who no longer have categorical eligibility status under
    the amended provision would have the opportunity to be reviewed
    for SNAP eligibility independent of their status as a TANF
    beneficiary. And those who receive cash assistance from SSI,
    TANF, or a state-run general assistance program will still be
    categorically eligible for SNAP.
        Next, the FARRM Act closes a loophole in SNAP regarding how
    Low Income Home Energy Assistance Program (LIHEAP) payments
    interact with SNAP benefit calculation. Current law allows low-
    income households receiving any amount of LIHEAP assistance,
    even a nominal payment, to automatically qualify for the SNAP
    Standard Utility Allowance (SUA). In the last several years,
    recipients in approximately 16 states and the District of
    Columbia have qualified for the SNAP SUA under this provision.
        Under current law, if a participant received $1 in LIHEAP,
    they can automatically deduct the SUA from their income.
    Therefore, their net income was reduced, and they subsequently
    received a higher amount in SNAP benefits. Under the
    Committee's reported bill, a household must receive a minimum
    LIHEAP payment of $10 per year to qualify for the SUA
    deduction, thus saving the taxpayers $4.5 billion over ten
    years. The revised provision will not affect any household
    receiving traditional LIHEAP assistance or any household that
    can demonstrate an out-of-pocket utility cost.
        The Committee also eliminated state performance bonuses,
    saving $480 million over ten years. States are responsible for
    administering the SNAP program and are legally bound to process
    applications in a timely manner, ensure households receive the
    accurate amount of SNAP benefits, and make certain the program
    is administered in the most effective and efficient manner. In
    this economic climate the Committee believes it is very
    difficult to justify awarding states bonuses for practices that
    should be the daily operating procedure.

    Cracking Down on Waste, Fraud and Abuse

        The FARRM Act makes significant strides to crack down on
    waste, fraud and abuse within SNAP. The Committee was concerned
    by press reports of two lottery winners, both receiving more
    than $1 million in winnings, who were also found to have been
    receiving SNAP assistance. The bill includes a provision that
    would put an end to millionaire lottery winners receiving SNAP,
    and will prevent them from receiving any benefits if they do
    not meet SNAP eligibility requirements. The Committee is aware
    that the Secretary must define the terms ``substantial lottery
    or gambling winnings'' in order to carry out this provision.
    The Committee intends for the Secretary to establish a
    reasonable threshold for such winnings that balances the need
    to maintain strong program integrity, the ability of states to
    administer the provision, and the burden on SNAP households.
        Furthermore, the legislation requires that state SNAP
    Employment and Training (E&T) programs be limited to assisting
    only those college students enrolled in specific career and
    technical education courses or basic adult education, remedial,
    and literacy courses. The Committee was alarmed to learn that
    some states were taking great liberty in administering their
    SNAP E&T programs; therefore, the Committee took steps to
    ensure only those college students meeting the specified
    criteria could be served by a state's SNAP E&T program. To
    further improve the accountability of the SNAP E&T program, the
    bill requires states to report on how their programs are
    assisting SNAP participants in gaining skills, training, and
    work, or experience that leads to employment.
        The legislation also reduces fraud at retail stores by
    requiring a more rigorous standard for stores to become
    eligible to process SNAP benefits. Retailers will be required
    to stock more foods like fruits and vegetables, with the
    Committee's expectation that retailers can meet this
    requirement by providing products that are fresh, frozen or
    canned. Retailers will be required to pay 100 percent of the
    costs for acquiring and implementing EBT point-of-sale
    equipment. By including this provision, the Committee is
    targeting fraud within the program, and does not intend for
    credit card companies, banks, or others to impose any
    additional fees in regard to the acceptance of SNAP EBT
    benefits. The bill terminates the use of manual vouchers except
    in such circumstances as a disaster or EBT system failure.
    Manual vouchers can serve as a quick-response in emergency
    situations, and the Committee expects vouchers to be used in
    the event of a disaster when power is unavailable for an
    extended period of time.
        The legislation bans stores from participating in SNAP if
    they have significant sales of prohibited items like alcohol
    and tobacco. The Committee is aware that some stores are
    concerned about remaining eligible for the program under this
    change; however, the Committee provides the Secretary with
    discretion to exempt stores from this provision if the store is
    deemed necessary to serve SNAP recipients. The Committee
    expects the Secretary to ensure participants have a choice of
    stores and that there are sufficient options in underserved
    areas.
        Additionally, the Committee expects the Secretary to work
    with retailers and relevant stakeholders in developing
    regulations to implement a unique terminal identification
    system. Credit card associations are considering implementation
    of this practice across the entire retail industry in the near
    future, and it is imperative that the Secretary work with SNAP-
    approved retailers to ensure there are no additional costs or
    burdens that are duplicative or inconsistent with common
    commercial practices.
        Recognizing that issuance of SNAP benefits to all
    participants on the same date within a month creates many
    challenges both for suppliers and retailers, the Committee
    directs the Secretary to begin working with states to stagger
    the monthly issuance of SNAP benefits across an entire month
    for new beneficiaries. To prevent disruption, the Committee
    does not expect states to make immediate changes for current
    beneficiaries nor does the Committee suggest a change in
    current policy to allow for more than once-per-month issuance
    of benefits. The Committee encourages the Secretary to work
    with all stakeholders, particularly those within states that
    are in the process of staggering SNAP benefits, to ensure
    distribution is of the greatest benefit to the economy at the
    least cost.
        The FARRM Act recognizes the need to increase the
    Secretary's oversight of those states and territories choosing
    to operate a Restaurant Meals Program strictly for the purpose
    of serving homeless, elderly and disabled participants.
    Currently, states and territories have the option of running
    this program without seeking approval from the Department,
    which has raised the Committee's concern over proper use and
    implementation of this authority. The bill requires those
    states and territories to submit their request as part of their
    state plan and gain approval from the Department before
    implementing a Restaurant Meals Program. The plan must
    demonstrate a need for such a program along with effective
    control measures. If states and territories are found not
    operating the program in a proper manner or do not provide
    sufficient justification for establishing a program, it is the
    Committee's expectation that the Secretary will suspend or not
    approve such programs.
        The Committee is concerned about the use of funds to
    advertise and promote the use of SNAP through the use of
    national outreach funds. Recent news articles have described
    SNAP advertisements airing on the radio and television as well
    as information on the Department's website encouraging the
    enrollment of participants by suggesting that community
    outreach partners ``throw a great party.'' With historically
    high SNAP enrollments, the Committee directs these outreach
    funds to be used towards The Emergency Food Assistance Program
    (TEFAP).
        The bill also expands upon the bipartisan work begun by the
    Committee on Ways and Means Human Resources Subcommittee to
    allow data both within and across key federal assistance
    programs to operate more efficiently. These standardization
    activities promote transparency, flexibility, and consistency
    so data can be shared across the various information technology
    platforms established by federal and state agencies, increasing
    administrative efficiency and reducing improper payments. This
    provision is not intended to provide additional authority to
    standardize data, but to drive the process to occur across
    multiple federal agencies.
        The bill includes a provision that allows SNAP benefits to
    be used for the purchase of community-supported agriculture
    (CSA) shares. The Committee is aware that the Secretary
    currently permits CSA businesses to participate in SNAP.
    Farmers organized as a CSA can participate in a manner similar
    to farmers' markets; SNAP recipients use SNAP benefits and
    receive eligible food items from the CSA at the time product is
    delivered (i.e. at the point-of-sale). Non-profit CSAs are
    permitted to accept SNAP benefit payment up to 14 days in
    advance of product delivery. The Committee expects that the
    Secretary will administer this provision in accordance with
    current practice and procedures for authorized community-
    supported agriculture businesses.

    Additional nutrition programs

        Food banks have been successful in effectively utilizing
    federal commodities and securing private sector donations in
    order to feed hungry Americans. However, local food banks have
    been struggling to provide enough food to needy families in the
    current economic climate. Recognizing the challenges food banks
    are facing, the FARRM Act provides an additional $25 million
    per year for The Emergency Food Assistance Program (TEFAP).
        Furthermore, it is the intent of the Committee that the
    Secretary purchase and deliver emergency foods so as to
    maximize the continuity of food product flow to emergency
    feeding organizations throughout the year to better enable them
    to meet the need for assistance in local communities,
    particularly in times of high demand. To meet this objective,
    the Committee strongly encourages the Secretary to review
    potential bonus and surplus removal purchases on a real-time
    basis and adjust the timing of mandatory food purchases and
    deliveries to address periods when bonus and specialty crop
    deliveries are expected to be low. Having a more balanced
    delivery of both mandatory and bonus food purchases will enable
    emergency feeding organizations to better serve those in need.
    The Committee also intends for the Secretary to consider the
    cost of regulatory changes on the operation of emergency
    feeding operations in order to prevent such regulatory changes
    from adversely affecting the services provided by the emergency
    feeding organizations. The Committee encourages the Secretary
    to work with emergency feeding organizations to address these
    concerns.
        The FARRM Act makes changes to the Commodity Supplemental
    Food Program (CSFP) that will transition this program into
    serving only the elderly while allowing the small percentage of
    women and children currently enrolled in the program to
    continue to receive services until they have exceeded the age
    of eligibility. The Committee intends that individuals
    participating in CSFP on the day immediately prior to the
    effective date of this provision shall remain eligible until
    such time as an individual is no longer eligible for the
    program in any age or category. For example, a participating
    infant on effective date may remain in the program as he or she
    ages into subsequent age/categories, if otherwise eligible.
    Women and children will all continue to be served by the
    Special Supplemental Nutrition Program for Women, Infants, and
    Children (WIC), which is more suited to their dietary needs.
        The Committee agreed to increase funding for Community Food
    Projects by an additional $10 million per fiscal year, with
    half of this increased funding being designated to projects
    that help communities provide incentives for low-income
    individuals to purchase fruits and vegetables. The Committee
    recognizes that there has been tremendous growth in the
    purchase of locally grown fruits and vegetables. Rather than
    duplicate programs, the Committee increased funding for an
    existing program that is flexible and has been successful in
    helping communities address the food and nutritional needs of
    its citizens.
        The FARRM Act also removes the word ``fresh'' from the
    Fresh Fruit and Vegetable Program. The purpose of the program
    is to encourage the increased consumption of fruits and
    vegetables in a variety of forms in elementary schools with a
    high number of low-income students. This change will allow
    elementary schools participating in this program to maximize
    their funding by having the option of purchasing fresh, frozen,
    canned, and dried fruits and vegetables. Fruits and vegetables
    in all forms, as emphasized by the 2010 Dietary Guidelines for
    Americans, provide a variety of micronutrients and fiber that
    are important to maintaining overall health. The Committee
    recognizes the challenges schools face in the storage and
    preparation of fresh foods, and to accommodate those needs, the
    bill provides schools with greater flexibility while still
    serving school children with a variety of nutritious produce.
    The Committee expects the Secretary to inform states and
    schools of this change to the program through notification.
        Additionally, the Committee believes that participants in
    all federally funded nutrition assistance programs deserve
    access to a variety of safe and nutritious food. The 2010
    Dietary Guidelines for Americans recognized that Americans'
    consumption of fruits, vegetables, and fiber is below target,
    and all forms of these products increase the intake of
    essential vitamins and nutrients. The Committee encourages the
    Secretary to include all forms of fruits, vegetables and
    beans--canned, fresh, frozen, and dried--in nutrition
    assistance programs, and to educate program participants that
    all forms of these foods can help them meet the Dietary
    Guidelines for Americans.
        The bill includes a pilot program within the Department of
    Defense (DOD) Fresh Fruit and Vegetable Program. This pilot
    would allow up to five states to use their DOD Fresh funding
    allocation to source local produce. The Committee expects
    states that are selected to participate in this pilot to use
    this funding solely for the procurement of local fresh fruits
    and vegetables for school children. The Committee also intends
    for the pilots to be carefully evaluated in order to help
    inform future national policy.

                                Title V--Credit

        The House Agriculture Committee understands that access to
    credit is crucial to America's economy as a whole, but more
    importantly to the health and success of family farms, ranches,
    and the entire agricultural sector. To that end, the FARRM Act
    provides greater flexibility to the Farm Service Agency (FSA)
    in facilitating credit programs.
        Under current law, FSA provides Farm Ownership Loans to
    owners of farms. However, when a family forms a separate entity
    for transition or liability reasons, Farm Ownership Loans are
    no longer available to them. By adding ``other legal entities''
    to the list of eligible borrowers, the Committee reported bill
    enables FSA to assist qualified operating entities with Farm
    Ownership Loans even when the entity does not own real estate
    or is a member of the operating entity thus providing
    flexibility and greater participation to the program.
        The Committee reported bill provides clarification and
    flexibility to the Secretary to adjust experience requirements
    to avoid excluding those who are qualified, but may not be able
    to meet the current 3-year farming or ranching experience
    requirement, thus enabling more young or beginning farmers and
    ranchers to participate in the program.
        The Committee reported bill increases the Conservation Loan
    guarantee amount from 75 to 90 percent (a percentage similar to
    other loan programs), encouraging a larger participation rate
    for beginning farmers and ranchers, while continuing to protect
    priority for beginning and socially disadvantaged farmers and
    ranchers.
        In an effort to provide greater participation for beginning
    farmers and ranchers and increased flexibility to FSA, the
    Committee reported bill increases the maximum loan value for
    the Down Payment Loan Program from 45 percent of $500,000 to 45
    percent of $667,000.
        Throughout last summer's audit hearings the Committee found
    several areas in which FSA could streamline certain
    administrative mandates. As a result, the Committee repealed
    the Mineral Rights Appraisals requirement for real estate
    loans. Moving forward, this change should reduce costs for both
    the borrower and FSA as third party appraisals could be used in
    some cases instead of FSA having to obtain a new appraisal that
    specifically includes the mineral value.
        Under the current statute, delinquent youth loan borrowers
    are subject to provisions of the Debt Collection Improvement
    Act. This can result in undue hardship, as a youth loan
    recipient could be rendered ineligible for student loans and
    grants, which may prevent them from obtaining higher education.
    The Committee reported bill directs the Secretary, on a case-
    by-case basis, to waive the personal liability and cancel any
    remaining debt in situations in which failure was beyond the
    youth's control (i.e. project failure due to disease or natural
    disaster).
        The Committee reported bill directs the Secretary to
    establish a microloan program to better serve young, beginning,
    veteran and urban farmers and ranchers.
        The Committee reported bill directs FSA to prioritize joint
    financing agreements and Down Payment Loans within the Direct
    Farm Ownership Loan program in order to maximize the number of
    borrowers served for a given level of appropriations.
        Under current law, beginning farmer ownership loans are
    limited to applicants who do not own real estate in excess of
    30 percent of the median farm size in the county. In some
    counties however, the median size is so small that an applicant
    cannot qualify if they own any real estate. To that end, the
    Committee reported bill reconciles the median farm size
    limitation by replacing ``median'' with ``average''. In almost
    every county, the average is greater than the median farm size.
    This allows more otherwise qualified applicants to receive
    beginning farmer ownership loans.
        Most FSA loans are available to all agriculture producers,
    no matter if they reside in rural, suburban, or urban areas.
    However, FSA Youth Operating Loans are currently only available
    to youth (ages 10-20) who live in rural areas (areas with
    50,000 or less residents). The Committee reported bill removes
    the ``rural residents'' requirement allowing all youth the
    opportunity to receive a Youth Operating Loan similar to all
    other FSA loans, while continuing to require that youth
    borrowers would need to be under the supervision of an
    organization, such as 4-H, FFA or Boys/Girls Clubs.
        The Committee reported bill makes changes to the loan
    program for purchasers of highly fractionated tribal land to
    ensure that the program meets the needs of tribal members.

                          Title VI--Rural Development

        The Committee reported bill addresses fiscal constraints by
    reducing authorizations for appropriations by more than $1.5
    billion over five years. Based on discussions with
    stakeholders, and in conjunction with the reduced number of
    programs, the Committee expects this action will ensure scarce
    funds are concentrated in the most effective programs.
        In testimony before the House Agriculture Subcommittee on
    Rural Development, Research, Biotechnology and Foreign
    Agriculture, the Government Accountability Office (GAO)
    responded to several critical issues in programs operated by
    USDA. Among these was the impact that funding set-asides have
    on the fragmentation of rural development programs, and the
    overlap or duplication across programs. Additional testimony by
    witnesses representing counties, municipalities, and non-profit
    rural development organizations cited both the confusing number
    of programs and the burden of applying for assistance as a
    major impediment to accessing rural development funding at
    USDA. The Committee agrees with a number of the GAO's
    conclusions and the concerns of municipal organizations. The
    Committee reported bill addresses these concerns by eliminating
    thirteen programs, requiring the Secretary to collect
    information on the success of loans and grants over time, and
    requiring the Secretary to create simplified applications.
        GAO also highlighted a need for measuring the effectiveness
    of rural development programs. Committee passed bill addresses
    this need by requiring the Secretary to collect data regarding
    economic activity created through the loans and grants provided
    to rural communities. The Committee expects these efforts will
    create a harmonized baseline of information for effective use
    by USDA and Congress. It is the intent of the Committee to
    integrate this collected information with program changes and
    rulemaking.
        In testimony reviewing rural development programs in
    advance of formulating the Committee reported bill,
    stakeholders spoke to the importance of regional collaboration
    to create effective outcomes. The Committee recognizes that the
    Secretary can coordinate the efforts of USDA with other Federal
    agencies, and expects the Secretary to ensure rural development
    funds are carefully targeted for the greatest impact possible.
    The Committee reported bill also addresses regional
    collaboration through the reauthorization of the Delta Regional
    Authority, the Northern Great Plains Regional Authority, and
    the State Rural Development Councils.
        Testimony presented to review broadband programs clearly
    indicated a need for transparency through the application
    process for incumbent providers to respond appropriately to
    applications for new funding in their service territory. The
    Committee reported bill addresses this need by authorizing the
    Secretary to establish a process by which incumbent providers
    may submit comments.
        The Committee recognizes the importance of ``Main Street''
    businesses to rural communities, and that the recent economic
    downturn has reduced the affordability of credit in rural
    areas, putting considerable strain on these small businesses.
    The Committee reported bill addresses this issue through
    changes to the Business & Industry (B&I) Loan Program intended
    to ensure working capital is an eligible use of funds. The
    Committee reported bill also provides flexibility for the
    Secretary to consider accounts receivable for the purposes of
    collateral to allow lenders to help meet the capital needs of
    small businesses in rural areas. The Committee encourages USDA
    to examine additional ways to guarantee lending to small brick-
    and-mortar, community-owned businesses, such as an increased
    loan guarantee percentage for smaller loans, a streamlined
    process for making B&I loans of less than $250,000, and making
    operating lines of credit eligible as a program use.
    Additionally, the Committee encourages USDA to better
    coordinate with the Small Business Administration on outreach
    related to the B&I loan guarantee program to rural lenders.
        The Committee recognizes that with over $3 billion in
    pending applications for water and wastewater projects
    throughout rural America, reauthorization of water
    infrastructure programs is a vital component to rural economic
    development. Access to water systems promotes the health of
    rural communities and attracts businesses to invest in
    communities which are well supported by critical
    infrastructure. To address the current backlog, the Committee
    passed bill directs USDA to maximize the use of guarantees
    through private or cooperative lenders for projects in larger
    communities. The Committee expects these provisions to leverage
    available funds to serve more communities than might otherwise
    be served solely through direct loans.

              Title VII--Research, Extension, and Related Matters

    Option to determine status

        The Committee recognizes that for institutions with degree
    programs in the agricultural sciences that qualify as a
    Hispanic Serving Institution under the Higher Education Act of
    1965, the subsequent automatic qualification as a Hispanic
    Serving Agricultural College or University then precludes that
    institution from qualification as a Non-Land-Grant College of
    Agriculture. The Committee does not take a position on how an
    institution should be designated, but has provided that
    Hispanic Serving Institutions with degree programs in the
    agricultural sciences may make a one-time choice which
    designation they wish to be considered under for purposes of
    access to program funding eligibility.

    National Agricultural Research, Extension, Education, and Economics
            Advisory Board

        The National Agricultural Research, Education, Extension,
    and Economics Advisory Board (NAREEEAB) was created in 1996.
    The NAREEEAB replaced an existing user's advisory board and
    consolidated the functions of numerous other boards, task
    forces and councils. This advisory board has since served as
    the principal advisory mechanism to the Secretary, Under
    Secretary, agency administrators and the Congress on all
    aspects of the Research, Education and Economics (REE) mission
    area.
        In creating the NAREEEAB, the Congress intended for this
    board to recommend policies, identify short and long term
    national priorities for REE programs, and to evaluate program
    results and effectiveness among other assigned duties. The
    Congress has since added multiple duties and consultative
    functions to the Board's mandate. In doing so, the Committee is
    aware that the work load and learning curve of the volunteer
    members is high. It has become apparent to the Committee that
    it can take several years for new board members to become
    comfortable not only with the diverse subject matter under
    review, but likewise the law and administrative functions they
    are required to evaluate. While the statute defines the length
    of a Board member's individual term, the Congress has never
    included nor intended for board members to be subject to a
    limit on the number of terms they can serve. Unfortunately, the
    Committee has become aware that USDA has instituted an
    arbitrary term limit policy on Board members that inhibits the
    individual members and the overall Board's effectiveness. The
    Committee strongly encourages the Secretary to reverse this
    policy.
        Among the duties of the Board previously assigned was the
    responsibility to review and make recommendations on procedures
    for merit review of competitive grant proposals. The Committee
    has become aware that the USDA initially requested comments of
    the NAREEEAB following enactment of the merit review
    requirement in 1998 but has never revisited the question. The
    Committee is concerned that the USDA has misunderstood the
    legal mandate for merit review and has included clarification
    that for purposes of this review, merit is to be equated with
    the relevancy of the research or extension project to the
    community it is meant to serve. The Committee envisions that
    the process of evaluating a grant application would start with
    scientific peer review, and those applications deemed to be of
    sufficient scientific quality would then be reviewed and
    awarded on the basis of merit and relevancy. The Committee has
    further required that the NAREEEAB consult with industry
    stakeholders in developing their guidance and that the USDA
    consult on an ongoing basis with the NAREEEAB to ensure that
    these reviews are functioning as intended.
        The Committee recognizes the interest in growing
    agricultural commodities in less traditional production areas.
    As such, the Committee encourages the Secretary in consultation
    with the NAREEEAB, in both the intramural research carried out
    by the Agricultural Research Service and in the competitive
    grants programs carried out through AFRI and other authorities,
    to carry out and fund research into the unique situations
    facing producers in urban areas. These unique situations may
    include reclaiming land previously used for industrial purposes
    or neglected residential areas, and addressing needs such as
    the remediation of soils to make them capable of producing
    agricultural commodities for human consumption.

    Veterinary services grant program

        Our veterinary workforce is responsible for ensuring that
    the food we eat is safe, but they are facing a critical
    shortage in the public, private, industrial and academic
    sectors, and the problem is growing. Our Nation's large-animal
    vets are truly on the front lines of food safety, public
    health, animal health and national security. The demand for
    large-animal veterinarians is increasing, and lack of these
    specialists in many areas of the country will continue to put
    our agricultural economy and the safety of our food supply at
    risk.
        Since the fall of 2000, the Committee on Agriculture has
    worked on ways of resolving the serious veterinary shortage
    problem confronting many rural communities. With the passage of
    the National Veterinary Medical Service Act in December of
    2003, a program was finally authorized to incentivize large
    animal veterinarians to practice in communities that USDA
    designated as veterinarian shortage areas. With this program in
    place, large animal veterinarians are able to apply on a
    competitive basis for educational loan repayment assistance in
    exchange for their commitment to practice in shortage areas.
        To the extent that the loan program is successful, it's
    important to consider that this was just the first step. While
    this assistance will be very helpful in attracting
    veterinarians to these communities, there remain gaps in
    veterinarian recruitment, attracting and training technical
    support staff, and simply meeting the long-term costs of
    operating veterinarian practices in these communities.
        The Veterinarian Services Investment Act is meant to
    address these secondary needs and is designed to complement the
    loan repayment program to help large animal veterinarians
    become established in these rural communities.
        This bill recognizes and addresses a real problem in rural
    America. This legislation will authorize grants to address
    workforce shortages based on the needs of underserved areas.
    For example, grants could be used to recruit veterinarians and
    veterinary technicians in shortage areas and communities. It
    could add veterinarians expanding and establishing practices in
    high-need areas. It could establish mobile portable clinics and
    televet services and establish education programs, including
    continuing education, distance education, and factor
    recruitment in veterinary science.

    Grants and fellowships for food and agriculture sciences education

        The Norman E. Borlaug International Agricultural Science
    and Technology Fellowship Program (Borlaug Fellowship Program)
    helps developing countries strengthen agricultural practices by
    providing scientific training and collaborative research
    opportunities to visiting researchers, policymakers, and
    university faculty. The Borlaug Fellowship Program has provided
    over 500 fellowships for agricultural professional from 64
    developing countries worldwide. Currently, Fellowships can run
    from six to twelve weeks depending on research topic and
    funding availability. The Committee is concerned that the
    length of the fellowships currently offered may be too brief in
    term in some instances to provide real training and research
    opportunities. The Committee understands that a brief short
    term fellowship is an effective method to provide certain
    specific training and research opportunities. However, the
    Committee would urge the Secretary to modify the implementation
    of the program to also provide longer term training and
    collaborative research opportunities to address those instances
    where a long term fellowship would allow greater in depth
    training and research.

    Extension research

        The Cooperative Extension System is a nationwide, non-
    formal educational network. Each state, territory, and the
    District of Columbia has an office at its land-grant
    universities and a network of local or regional offices which
    are staffed by experts who provide practical, research-based
    education to agricultural producers, small business owners,
    youth, consumers, and others in rural and urban communities.
    The Committee encourages the Secretary to ensure that
    Cooperative Extension is effectively utilized to deliver the
    educational component of USDA programs. The Secretary is also
    encouraged to engage in discussions with other federal
    departments and agencies to consider ways to use the
    Cooperative Extension to deliver education for other federal
    programs as practicable.

    Auditing, reporting, bookkeeping, and administrative requirements

        The Committee is concerned about the increasing use of
    assessments, fees, and higher indirect costs rates imposed on
    its university partners by the Agricultural Research Service
    (ARS). These university partners play a major role in achieving
    ARS research priorities and objectives. In a time of scarce
    budgetary resources, ARS must ensure limited research dollars
    are maximized and administrative costs are reduced to the
    fullest extent possible. In recent years, ARS has imposed a
    variety of administrative assessments on its university
    partners, effectively reducing funds intended for important
    research projects. The Committee expects ARS to operate within
    historical administrative cost parameters, namely by imposing a
    administrative cost cap not exceeding four percent. All
    administrative assessments, fees, dues, or charges, of any
    type, must be included within this overall administrative cost
    cap. ARS must administer its programs more efficiently to
    ensure valuable research funds are maximized so it may continue
    to maintain a robust agricultural research enterprise. The
    Committee encourages ARS to continue university research
    partnerships to ensure our nation's premier educational and
    clinical institutions play a major role in achieving ARS and
    congressional research objectives.

    Matching funds requirement

        The use of matching funds has proven to be an effective
    tool in leveraging limited Federal resources with commitments
    from those benefitting from agricultural research and
    extension. Unfortunately, the application of these policies by
    the U.S. Department of Agriculture (USDA) has been arbitrary
    and inconsistent.
        Efforts by the Committee to develop a comprehensive policy
    on research and extension matching funds originated during the
    development of the 2008 farm bill. At the time, it was noted
    that as research programs have been authorized or modified, the
    incorporation of matching requirements was done in a subjective
    manner. An effort was initiated during the 2008 farm bill
    conference to harmonize the matching requirements, but due to
    the complexity of the task and time constraints, the effort was
    dropped with the understanding that the Committees and USDA
    would undertake a stakeholder process designed to provide
    recommendations in advance of the 2012 farm bill. Unfortunately
    that process never materialized after the 2008 bill.
        The House Agriculture Committee has maintained an interest
    in engaging stakeholders in a discussion about how to harmonize
    these policies to improve consistency and transparency in their
    application. Several requests have been made for suggestions on
    how best to approach this issue and the consensus seemed to be
    that the Committee should propose a discussion draft. The
    language included in Committee legislation was the result of
    technical assistance received by the USDA and is meant to begin
    this discussion.
        As part of the discussion that has already commenced, it is
    important to highlight what the provision does, as well as what
    it does not do.
        The provision, once implemented would apply to competitive
    grants for extension or applied agricultural research. These
    grants would be subject to a 100 percent match of cash or in-
    kind support from any other source, but only if the grant is
    specific to a state or commodity. The Secretary would have the
    authority to waive the matching requirement if the grant is
    deemed to be a national priority using the process established
    for priority setting conducted as part of the statutory mandate
    of the National Agricultural Research, Extension, Education and
    Economics Advisory Board (NAREEEAB). The use of the NAREEEAB in
    this way is not without precedent. Under the Organic Food
    Production Act, the authority of the Secretary to create a
    National List of approved and prohibited substances that shall
    be included in the standards for organic production and
    handling is limited to the advice of the National Organic
    Standards Board.
        Current matching fund policies, such as that under the
    Agricultural and Food Research Initiative impose a requirement
    of a non-Federal match to commodity specific grants that are
    not of national scope, but under a plain reading of the law
    would apply to regional collaborative grants involving multiple
    States.
        It is the intent of the Committee that the match policy
    allow for cash or support from ``any'' other source, including
    other federal funds. However, we are aware that under this
    statutory language such funds would have to be consistent with
    the purpose of both grants. As stated above, this language is
    meant to begin discussions on important issues surrounding a
    universal match policy.
        The Committee is aware of both the difficulty in meeting
    these requirements and the inconsistency in which they are
    applied and has attempted to develop a policy that is
    reasonable, transparent and consistently applied across the
    universe of USDA competitive agricultural research and
    extension grant programs.

    Repeal of National Agricultural Weather Information System

        The Committee is aware that advanced weather forecasts
    using Tropospheric Airborne Meteorological Data Reporting
    (TAMDAR) systems have been used by the Federal Aviation
    Administration, the U.S. Weather Service, and the National
    Oceanic and Atmospheric Administration for over seven years.
    The Committee supports advanced forecasting employing TAMDAR in
    that it enhances U.S. and allied meteorological forecasting
    systems, thus providing improved reliability and situational
    awareness, which is particularly useful in agricultural
    forecasts. The Committee therefore encourages continued use of
    this system by the Department of Agriculture.

    Regional Centers of Excellence

        With limited resources to invest in critical programs, the
    Committee has considered multiple options by which Federal
    funds can be leveraged to improve overall program
    effectiveness. With the recognition that multiple institutions
    and organizations participate in projects of similar interest,
    the Committee has sought to incentivize the formation of formal
    partnerships and other organizational structures as Regional
    Centers of Excellence. The Committee reported bill directs that
    such centers that meet established criteria be granted priority
    in receipt of competitive research and extension grants.
        The Committee would recommend USDA to promulgate
    regulations implementing section 1673 in accordance with
    appropriate regulatory procedures in order to allow interested
    stakeholders to gain a firm understanding of USDA's
    implementation of the provision.

    Specialty Crop Research Initiative

        The Committee is aware of concerns that the required merit
    review process under the Specialty Crop Research Initiative and
    other competitive grants programs is not functioning as
    intended. Congress established the merit review requirement to
    ensure that grant applications that are of sufficient
    scientific quality as determined through a process of peer
    review shall then be evaluated and final awards be made based
    on the merit and relevancy of the grant request with respect to
    the constituency being served. In carrying out the merit and
    relevancy review process under the Specialty Crop Research
    Initiative, the Committee expects that the review and ranking
    for impact to be conducted by a panel of specialty crop
    industry representatives for the specific specialty crop. The
    Committee further encourages the Secretary to prioritize
    competitive grants to address imminent threats which may impact
    the future of specialty crop production in this country.

    Competitive, Special, and facilities Research Grant Act

        The Agriculture and Food Research Initiative (AFRI) is the
    premier competitive research and extension grants program
    within the USDA. The AFRI program was established in 2008 as a
    successor program to the National Research Initiative
    Competitive Grants Program and the Initiative for Future
    Agriculture and Food Systems. The statutory priorities for the
    AFRI program are purposefully broad. In developing these
    priorities, the Congress was aware that as science evolves, a
    balance needed to be achieved between the need for flexibility
    to respond to new and emerging threats and opportunities, and
    the need for transparency and accountability in the expenditure
    of taxpayer funds.
        Concerns are periodically raised regarding the annual
    allocations among the various statutory programmatic priorities
    and sub priorities. The Committee was aware of these
    qualitative concerns but lacked quantitative information on
    which to base any policy modifications. As a continuation of
    the programmatic audit carried out by the Committee in
    preparation for developing the FARRM Act, the Committee
    requested USDA provide a listing of recent awards under the
    AFRI program sorted according the corresponding statutory
    priorities and sub priorities. USDA initially responded to the
    Committee that it had no means by which to track grants in
    relationship to the statutory authority upon which they are
    awarded. The Committee ultimately received a partial response
    to the oversight request after a delay of more than 3 months,
    but only days prior to consideration of the FARRM Act. The data
    reveal a dramatic shift in awards funding away from traditional
    areas of production agriculture. For instance, awards for
    research in plant systems dropped from 38.7% of available funds
    in fiscal year 2007, the final full year under of the
    predecessor programs, to 18.4% in 2011. Awards for research in
    animal systems fell from 22.4% to 9.4% over the same time
    period.
        The Committee is concerned that the allocation of research
    and extension awards under the AFRI program is inconsistent
    with our national priorities. This same concern was raised by
    the Appropriations Subcommittee on Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    in their report for the fiscal year 2012 appropriations when
    the subcommittee stated that ``over the past few years,
    numerous reports from Federal agencies and private
    philanthropic and scientific organizations have highlighted the
    need for the United States to invest in agricultural research,
    particularly to ensure productivity growth and to develop and
    refine sound natural resources management practices for U.S.
    farmers and ranchers and others around the world. In light of
    this advice and the nation's serious budget deficit and debt
    problems, the agency should be focusing its research efforts on
    only the highest priority, scientifically merited research.
    While there are many interesting research topics and a
    multitude of issues that could be researched, the Committee
    expects the agency to focus on its core mission of agricultural
    research by setting a very high standard for research funded by
    the agency and requiring a rigorous peer review.''
        The Committee agrees with the concerns raised by the
    Appropriations Subcommittee and has included language related
    to the President's annual budget submission to both improve the
    transparency and the accountability for the funding
    administered by the USDA under AFRI and other competitive
    agricultural research and extension grants programs.
        The Committee recognizes the importance of basic animal
    health research to support the farmed cervidae industry, and as
    such, supports research focusing on the development of viable
    strategies for the prevention, diagnosis, and treatment of
    infectious, parasitic and toxic diseases of farmed deer and the
    mapping of the deer genome.
        The Committee recognizes the growing importance of and need
    for comprehensive and practical scientific and economic
    assessments of agricultural practices and technologies intended
    to improve agriculture's water quality and quantity
    performance. This is particularly the case as states work with
    producers on high priority or high profile water quality
    challenges. Such scientific and economic assessments are needed
    for the major crop producing regions of the country, taking
    into account soils, climate, crops grown, and the technologies
    and agricultural practices in use. The goal of such assessments
    should be to develop information and continue to build on the
    tools already in place. The assessments should continue to
    develop new and innovative approaches to help producers and
    policy makers in states understand what is affordable,
    achievable and sustainable for producers. The assessment can
    then he used to consider how different water quality policy
    choices relate to other important societal objectives involving
    agriculture. The Committee encourages the Secretary to initiate
    a multi-year effort to help the states and USDA continue to
    develop this base of science and knowledge through the funding
    of proposals from qualified institutions capable of supporting
    interdisciplinary teams of researchers and experts to carry out
    such efforts.
        The Committee recognizes the success of the Conservation
    Effects Assessment Project (CEAP) and the cross collaborative
    approach between multiple agencies at USDA, and strongly
    encourages USDA to continue and expand on those efforts. The
    Committee does not intend for this provision to be a
    replacement for or duplication of CEAP, but rather as a source
    of sound, complementary economic and technical information that
    could be used in conjunction with CEAP to create more accurate
    assessments of the effects of prospective conservation measures
    on agricultural land.
        The Committee recognizes that maintaining and enhancing
    wild rice, a uniquely American specialty crop, depends on
    continued use of traditional breeding methods, along with the
    application of new genetic tools to make conventional breeding
    more efficient. Genetic analysis of shattering, disease
    resistance, reduced plant height, and other traits require not
    only development of new genetic markers for wild rice, but also
    new methods for gathering accurate phenotypic information on
    the plants. The use of these improved genetic resources in the
    future depends on their continued availability through reliable
    seed storage methods. Some research has been done on
    maintaining viability of stored seeds, but these need to be
    translated into reliable and useful methods at the local level
    to ensure breeding progress.
        The Committee would hope that the Secretary would consider
    the following research objectives regarding wild rice genetic
    resources: preserving and enhancing wild rice breeding lines
    for testing and release as future varieties; developing
    phenotyping methods and genotypic markers for various traits;
    using genotypic and phenotypic information to identify superior
    genetic resources for breeding and to develop more efficient
    breeding methods; evaluating and maintaining the genetic
    distinctiveness of wild rice breeding lines and populations;
    and developing improved methods for short- and medium-term
    storage of wild rice breeding lines and populations.

    Renewable Resources Extension Act of 1978

        The National Association of University Forest Resources
    Programs (NAUFRP), (formerly the National Association of
    Professional Forestry Schools and Colleges) represents 69 of
    our nation's universities and their respective scientists,
    educators and extension specialists. NAUFRP's purpose is to
    advance the health, productivity, and sustainability of
    America's forests by providing university-based natural
    resource education, research, science, extension and
    international programs. The Committee would encourage USDA to
    engage in discussions with NAUFRP to ensure that their
    proposals for ecosystem services, invasive species management,
    and innovative biobased products are appropriately addressed.

    Budget submission and funding

        The Committee is aware of the need for the statutory
    priorities for the various agricultural research, education and
    extension programs to be written with sufficient flexibility so
    that the Administrators of the USDA research agencies can
    respond quickly and efficiently to emerging problems and
    opportunities. The Committee is equally cognizant of the need
    for taxpayer funds to be used in a transparent and accountable
    manner.
        Recent changes that have occurred in Congressional
    appropriations procedures have empowered USDA bureaucrats to
    direct spending seemingly without regard to statutory
    priorities. Coupling the extraordinary spending discretion
    granted to the agencies with a lack of transparency relating to
    the priority setting process exposes these critical programs to
    allegations of waste, fraud and abuse.
        As a follow up to a series of programmatic audits conducted
    by the Committee, a request was submitted for the Department to
    provide a listing of grants awarded by the USDA under one
    principal competitive grants program sorted according to the
    statutory priorities for which the funding was appropriated.
    The Department was unable to provide this information for more
    than 3 months due to what was at the time a lack of ability by
    the Department to track program funding according to the
    authorized priorities.
        A review of the data ultimately provided by the Department
    demonstrates a significant reduction in funding provided for
    research related to core production agricultural programs. The
    Committee reported bill does not significantly alter the
    priorities for the various competitive research and extension
    programs. Nor does the Committee draft adopt specific across
    the board set asides. In order to increase the ability of
    Congress to oversee funding allocations, the Committee reported
    bill instead creates a new requirement on the Secretary to
    provide transparency and accountability with regard to the
    research, extension and education budget. It is the intent of
    the Committee that USDA provide increasingly detailed spending
    plans to Congress in advance of the development of annual
    appropriations measures so that the legislature and interested
    constituencies can weigh the merits of these allocations
    against evolving priorities, and as a representative body the
    Congress can approve or disapprove of the proposed allocations.
        Working cooperatively between the branches and fully
    involving interested stakeholders in the priority setting
    process will likely result in better understanding of the need
    and benefits of investment in agricultural research, extension
    and education programs.

    Sun Grant program

        The Committee reported bill directs the Secretary to
    utilize and leverage the investment, resources and capacities
    of the current regional Sun Grant Program Centers and Sub-
    center to continue their leadership and management of the
    regional Sun Grant competitive grants program.

                              Title VIII--Forestry

        The Committee believes that healthy national, state, and
    private forests should be a high priority for the Department.
    Healthy forests are an important component of helping sustain
    fire-resistant communities and promoting economic health across
    rural America. The Committee reported bill reflects the
    priorities of the Committee by providing the Forest Service the
    tools necessary to improve forest management over the course of
    the bill.

    Forest Service decision making process

        The Committee reported bill includes language that
    clarifies that the Forest Service does not need to engage in a
    notice, comment, and appeal process for routine actions. This
    language came as a result of a federal court decision in March
    2012 that the agency must engage in this process for
    noncontroversial actions such as planting trees after wildfire,
    trail maintenance, or one-time events such as races. The
    Committee believes this is a burdensome requirement for the
    Forest Service when no other federal agency is required to
    engage in a similar process. The Committee is also concerned
    that this requirement will have an adverse impact on rural
    economies by virtue of restricting the number of revenue-
    generating activities that may occur on National Forest lands.

    Stewardship Contracting

        The Committee provided the Forest Service with a four-year
    extension of authority to conduct Stewardship contracting. This
    approach to land management has proved effective nationwide
    since it was first authorized in 1999 and extended in 2003.
    Stewardship contracting allows the Forest Service to conduct
    important forest restoration work by allowing the value of wood
    removed to help offset the cost of needed restoration
    treatments, like forest thinning, introduction of prescribed
    fire, and habitat improvements for a variety of species. It is
    important to note that Stewardship contracting is not intended
    to replace the existing timber sale contract. Where there are
    robust wood markets, the Forest Service can frequently achieve
    its forest restoration and habitat goals simply by offering
    carefully designed timber sales. The Committee asks the Chief
    to work with purchasers of Forest Service timber to address
    concerns they have raised about methods of selecting the
    winning bidders on Stewardship contracts, and to provide
    feedback to losing bidders to help increase their understanding
    of the process to become more effective in the future. The
    Committee asks the Chief to include liability limitations for
    operations fires in all types of Stewardship Contracts and
    Stewardship Agreements. These liability limitations should be
    substantially similar to the protections in existing timber
    sale contracts.

    Pine Bark Beetle

        The outbreak of the pine bark beetle afflicting states
    across the nation is a great concern to the Committee. To date,
    an estimated 41 million acres have been affected, creating
    potentially hazardous fuel loads in several western states. The
    Committee reported bill includes provisions to provide the
    Forest Service with increased flexibility to address this issue
    and work with partners to mitigate the potential damage. The
    Committee wishes to clarify that the Secretary has the
    authority to designate critical areas at any point beyond the
    initial 60-day deadline specified in Sec. 8302. In reviewing
    the threat maps for designation of possible critical areas, the
    Secretary has the authority to treat those areas that are not
    immediately threatened by a disease outbreak in order to reduce
    the threat of future outbreak.

    Forest Inventory and Analysis

        The Forest Inventory and Analysis (FIA) program is the
    nation's only comprehensive forest inventory system for
    assessing the health and sustainability of the nation's forests
    across all ownerships. FIA provides essential data related to
    forest species composition, forest growth rates, and forest
    health data and is the baseline inventory estimate used in the
    State-wide Assessments and Strategies for Forest Resources. The
    program provides unbiased information that has immediate
    utility to foresters, landowners and many other users by
    serving as the basis for monitoring trends in wildlife habitat,
    wildfire risk, insect and disease threats, predicting spread of
    invasive species and for responding to contemporary forest
    issues such as estimating sustainable woody biomass supplies
    for renewable energy production, forest carbon inventories, and
    determining the timber supply available to support local mills
    and local jobs. The Committee recognizes the critical
    importance of the FIA program and directs the Forest Service to
    place increased emphasis within the agency's Research and
    Development program to implement the strategic plan called for
    in Sec. 8401.

    Forest Service Retired Employees

        The Committee is concerned about the increasing number of
    retired Forest Service employees in recent years. Section 8402
    included language to allow the Forest Service to hire retired
    employees under the Agriculture Conservation Experienced
    Services (ACES) program. The Forest Service will continue to
    see a large number of retirements in the comings years.
    Allowing the Forest Service to participate in the ACES program
    allows the agency to retain the institutional knowledge
    acquired through the years by these senior employees.

                                Title IX--Energy

        The Committee continued the efforts of the 2002 and 2008
    Farm Bills in drafting the energy title of the Committee
    reported bill. The Committee recognized rural America's
    important role in contributing to America's energy needs. The
    Committee focus in drafting the energy title was to continue to
    facilitate the establishment of new types of renewable energy
    feedstocks across rural America and to assist agriculture
    producers and rural small business to become more energy
    efficient.
        With the exception of the Flexible Feedstock program, the
    programs under the energy title did not have a budget baseline
    beyond the expiration of the 2008 Farm Bill. Given the
    difficult budgetary decisions already affecting the drafting of
    a new bill, the Committee did not include mandatory funding for
    programs in the energy title. The Committee chose to keep the
    framework for renewable energy in place by reauthorizing
    several programs with discretionary funding and modifications
    to the underlying statutory authority. Despite the lack of
    mandatory funding, the Committee expects to see significant
    progress in the development of advanced biofuel feedstocks over
    the course of the Farm Bill.

    BioPreferred Program

        The Biobased Market Program is intended to stimulatethe
    production of new biobasedproducts and to energize
    emergingmarkets for those products. While the focus of the
    program is to promote new products and emerging markets, the
    program shall not create market disadvantages for certain
    biobased products relative to other biobased products. The
    Committee would hope that in its current rulemaking process,
    that mature markets for biobased products, including products
    made from forestry and cotton materials, are not put at a
    competitive disadvantage, particularly in comparison to
    products that may be imported into the United States. The
    Committee has heard concerns from a variety of sources within
    the forest products industry, including lumber producers, about
    their eligibility to participate in this program. And as such,
    the Committee reported bill amends the definition of a biobased
    product in order to clarify that forest products should be
    included in the Biopreferred program.

    Rural Energy for America Program

        The Committee reported bill amends the definition of a
    ``renewable energy system'' to clarify what is eligible for
    financial assistance under the Renewable Energy for America
    Program (REAP). The Department announced an initiative in
    October 2010 to assist in the installation of 10,000 blender
    pumps over a five year period. The intent of the program has
    been to promote energy efficiency and the production of
    renewable energy, rather than energy delivery. Therefore,
    blender pumps or other mechanisms to dispense fuel on a retail
    level are not a use of the program consistent with this
    purpose.
        The Committee reported bill also streamlines the
    application process for REAP to create a three-tiered
    application process. The Committee believes that due to the
    wide range of projects funded under the program, those
    producers seeking smaller amounts of assistance should not be
    required to submit the same volume of information as those
    seeking larger amounts.

    Biomass Crop Assistance Program

        The Biomass Crop Assistance Program was reauthorized with
    modifications. The program as written in the 2008 Farm Bill was
    not implemented in a manner consistent with the Committee's
    vision. Initial estimates of the program projected spending of
    $70 million on the program over the course of the Farm Bill.
    However, approximately $924 million has been spent on the
    program through the end of FY 11. After issuance of the final
    rule in October 2010, the Committee believes the program is now
    being run in a manner consistent with Congressional intent. To
    ensure that the purpose of the program continued to be carried
    out, the Committee removed the authorization of payments for
    the collection, harvesting, storage, and transportation of
    eligible materials to a biomass conversion facility. The
    Committee intends that the purpose should be on the
    establishment of new crops, rather than funding existing crops.

                             Title X--Horticulture

    Horticulture

        Specialty crops--fruits, vegetables, tree nuts, and nursery
    plants--account for almost half of the domestic crop value in
    the United States.
        The Committee believes that the specialty crop industry can
    be best served through Federal and State efforts that help
    producers increase their respective competitive positions
    through marketing, promotion, plant pest and disease pressures,
    and research programs. The FARRM Act builds upon the popular
    and successful programs established in the 2008 Farm Bill with
    this notion in mind. Expanding export markets and increasing
    access to locally produced products is a priority in the FARRM
    Act.

    Specialty Crop Block Grant Program

        The bill makes several changes to the Specialty Crop Block
    Grant program, which has been successful in enhancing the
    competitiveness of specialty crops by promoting increased
    consumption of fruits, vegetables, and nuts, fostering local
    and regional economic development, and enhancing research on
    specialty crops. The FARRM Act increases funding for the
    Specialty Crop Block Grant program to $70,000,000 for each
    fiscal year. The Committee also adjusts the grant allocation
    formula in a manner that balances the value of specialty crops
    with the number of acres devoted to specialty crop production
    within states. The Committee directs both USDA and the states
    to limit the administrative funds at 3 and 8 percent
    respectively to capitalize on the funds available to growers.
        The Committee recognizes the difficulty in coordinating and
    funding multi-state projects within the block grant program,
    and the Committee expects the USDA to issue guidance and work
    with states in making grants available for such projects. These
    multi-state projects may include food safety, research, plant
    pest and disease, and crop specific projects. These projects
    have the ability to link growers across state lines and promote
    much needed collaborative research. In the Secretary's
    guidance, effective multi-state collaborative research should
    not limit needed equipment and facilities if it is found they
    are essential to research advancements. Furthermore, multi-
    state projects may encourage the use of farm financial
    benchmarking, which can be used as a tool to provide financial
    training, management training, risk management training, and
    diversification and marketing strategies for all producers.

    Plant Pest and Disease

        To ensure the continued availability of funding for the
    important work of the National Clean Plant Network, the
    Committee has combined this program with the Pest and Disease
    program and increased baseline funding for both. The Committee
    expects that annual funding for the important work of the
    National Clean Plant Network will not be less than the level
    provided in FY2012 and may be provided to the Network without
    regard to the process for distributing funds to address the
    other provisions of Section 420 of the Plant Protection Act.
        The Committee recognizes that Disease Management and
    Disaster Prevention Programs as previously authorized in the
    Food, Conservation, and Energy Act of 2008 includes imminent
    pressing and persistent threats from pests and disease, such as
    Citrus Greening, to agriculture production.
        The Committee recognizes the importance of the Federal
    government, specifically the USDA, developing and maintaining
    the highest technological capability of identifying plant pests
    and invasive species. Further, the Committee believes that the
    advanced technological capabilities acquired through
    development of plant pest and invasive species detection
    technologies should facilitate the development of a
    coordinated, interagency response plan for the federal
    government to effectively mitigate plant pests and invasive
    species. The Committee encourages USDA to take the appropriate
    steps to facilitate information and technology sharing with
    other appropriate agencies of the Federal government involved
    in invasive species management such as Department of the
    Interior, Environmental Protection Agency, U.S. Coast Guard and
    the U.S. Army Corps of Engineers.

    Farmers Markets

        The Committee recognizes the growing interest among
    producers and consumers to provide and purchase locally-grown
    agricultural products. The FARRM Act expands the Farmers Market
    Promotion Program to include food system infrastructure and
    increases funding for competitive grants to expand farmers
    markets and other direct-to-consumer market opportunities.

    Olive Oil Marketing Order

        The Committee has taken steps to permit the establishment
    of a marketing order for domestically produced olive oil.
    Should this marketing order be established, the Committee
    expects USDA, in conjunction with the U.S. Trade
    Representative's office, to ensure the marketing order is
    implemented in a manner that will not cause undue trade
    disruption.

    Honey Standard of Identity

        The Committee is concerned with the Food and Drug
    Administration's denial of the honey industry's 2006 citizen's
    petition calling for a federal standard of identity for honey.
    Consequently, the Committee directs USDA to submit a report to
    the Commissioner of the FDA on the importance of establishing
    such a standard. The Committee recognizes that inconsistent
    standards can cause confusion in the market place and legal
    challenges. The Committee instructs the USDA to take into
    consideration the honey industry's petition filed with the Food
    and Drug Administration.

    Organics

        Organic agriculture and its products continue to occupy a
    prominent place in the minds of American consumers. Recent
    surveys show that seventy-eight percent of U.S. families say
    they choose organic food, up from seventy three percent in
    2009. Further, seventy-two percent of survey respondents say
    they are familiar with the USDA organic seal and its meaning.
        Consumer confidence in the integrity of USDA National
    Organic Program (NOP) is fundamental to the continued growth of
    the organic sector. An essential element of strong consumer
    confidence is the ability of the NOP to efficiently administer
    enforcement actions against producers and handlers who violate
    NOP regulations.
        The Federal Agriculture Reform and Risk Management Act
    strengthens the ability of the NOP to bring enforcement actions
    against violators of the NOP regulations by permitting the
    Secretary to administer oaths, affirmations, subpoena witness,
    compel their attendance, take evidence and require the
    production of records during the course of an NOP
    investigation. The Act also ensures due process is afforded to
    organic producers and handlers by affirming the right to
    judicial review of USDA orders suspending organic
    certification.

    Importance of Biotechnology

        Since its introduction in the late 1990's Agricultural
    biotechnology has been embraced by American farmers with 94% of
    soybeans, 88% of corn and 90% of cotton grown in the U.S.
    through varieties improved by modern biotechnology.
        Currently, nearly two billion people in our global
    community are malnourished, and the need to sustain a rapidly
    growing global population places an imperative on finding ways
    to meet daily life needs in an environmentally sustainable way.
    According to the U.S. State Department, it will be necessary to
    produce as much food in the next 50 years as was produced
    during the previous 10,000 years combined. Science and
    innovation in agriculture will be required to produce this
    amount of food, feed and fiber in an environmentally
    sustainable way. U.S. consumers must be assured of the
    availability of an adequate, wholesome and economical food
    supply.
        The wide spread adoption of agricultural biotechnology has
    resulted in several environmental improvements. Because of no-
    till and reduced-till practices associated with the use of
    biotechnology crops, soil quality and carbon storage has
    improved, on-farm fuel use has declined, and greenhouse gas
    emissions have been reduced. In 2009, the aggregate
    environmental effect of these benefits was equivalent to
    removing of 17.7 billion kg of carbon dioxide from the
    atmosphere or removing 7.8 million cars from the road for one
    year.

    Legal Challenges

        The Committee is aware that many industry and academic
    experts agree that frivolous legal challenges have made the
    U.S. regulatory process for agricultural biotechnology products
    an impediment to the timely review and commercialization of
    valuable new products. While administrative reforms have been
    introduced at USDA in an effort to produce decisions better
    able to withstand procedural challenges in federal court, the
    Committee is concerned that expenditure of the limited
    resources available to the USDA should be based on the
    prioritization of risk, not responding to questionable
    procedural claims. The numerous oversight activities carried
    out by the Committee have all led to the conclusion that
    targeted legislation is needed to ensure advances in modern
    agriculture will be available in the future.
        Opponents of technology filing lawsuits once agricultural
    biotechnology products are approved by USDA, claim that the
    Department experts have not conducted proper environmental
    analyses despite the rigorous environmental reviews conducted
    by USDA and the lack of evidence that previously approved crops
    are harmful to health or the environment. Lawsuits dramatically
    slow USDA's review of new products and cost the Department
    millions of dollars each year, slows down the entire process
    and stigmatizes the technology without any scientific basis.
    The delay in regulatory approvals creates uncertainty for
    farmers, researchers and companies.

    Implications

        Conducting extensive reviews of products with a history of
    safe use diverts scarce resources from higher priority
    applications. When researchers are prohibited from studying new
    technologies because of costs associated with regulation, it
    reduces farmer choice and threatens discoveries of scientific
    breakthroughs that could help feed a rapidly growing world
    population.
        Other countries recognize the value of efficient
    agricultural biotechnology regulation. Brazil, for example, has
    accelerated its regulatory processes while continuing to
    rigorously evaluate environmental safety concerns. In a six-
    year period beginning with 2005, Brazil completed the review of
    28 biotech crops and the USDA completed its review of 15. The
    average time to review a product in Brazil is 27 months
    compared to the average time in the U.S. of 38.4 months (as of
    2010). According to USDA, between 1992 and 1999, USDA, on
    average, took 178 days to complete a review of a biotech crop.
    Currently, that process takes two to five years. The Committee
    has acted to ensure that U.S. farmers and businesses are not at
    a competitive disadvantage when it comes to our foreign trading
    partners. Such a disadvantage makes it more difficult for the
    U.S. to grow a 21st Century bio-economy.

    Legislation to Address Current Regulatory Review Process

        The Committee has taken note of the enormous challenges
    confronting the current USDA review process for innovative new
    agricultural products and the serious hardships that prolonged
    litigation has had on growers and others who rely on the review
    to be efficient, transparent and science-based. The FARRM Act
    provisions are intended to address those challenges by
    consolidating the Secretary's review of potential adverse
    environmental effects and potential plant pest risk under one
    statute, the Plant Protection Act, with clearly defined time
    tables.
        The Committee is likewise aware of potential procedural
    challenges brought against the USDA related to the issuance of
    confined field test permits for new and novel traits that meet
    well defined regulatory criteria. The Committee would like to
    reiterate that the purpose of confined field test permits
    authorized by the Secretary is to accumulate the information
    needed to properly assess potential environmental effects and
    plant pest risk at such time as a petition for nonregulated
    status is submitted for review by the Secretary.
        The Committee recognizes that the regulations that would be
    in effect on the date of enactment of this subsection currently
    provide USDA flexibility to forego environmental assessments
    under certain circumstances through the use of categorical
    exclusions. As noted in International Center for Technology
    Assessment v. Johanns (473 F.Supp.2d 9) (D.D.C. 2007),
    generally, APHIS's regulations require environmental assessment
    preparation for field trials (7 C.F.R. Sec. 372.5(b)(5)(i)).
    The regulations also set forth, however, a series of
    ``categorically excluded actions'' that do not require the
    preparation of an EA or EIS. These excluded actions include
    ``[p]ermitting, or acknowledgment of notifications for,
    confined field releases of genetically engineered organisms and
    products.'' It is the intent of the Committee to preserve that
    flexibility and apply this Act's environmental analysis
    requirements only in the instances where the Department has
    previously determined that an environmental assessment or an
    environmental impact statement had been required. The Secretary
    would be expected to tailor the level of detail in the
    environmental analysis to the scope and complexity of the
    action under review.
        The current environmental review process has proven to be
    very cumbersome. The Secretary must attempt to comply with a
    variety of different statutory requirements and regulatory
    procedures in order to address the likely environmental effects
    of actions taken under the Plant Protection Act. The amendment
    ensures that those environmental effects, including effects on
    threatened and endangered species, will be addressed in a
    consistent, timely manner under a single statutory mandate and
    set of procedures.
        The Committee also presumes that the current regulatory
    definition of ``organism'' would be used as the basis for any
    new rulemaking; however, we intend to give the Secretary
    flexibility in this matter.

    Failure To Meet Time Period

        If the Secretary has failed to act on a petition within the
    requisite time period under paragraph (3), the Committee
    expects that, should the environmental analysis required under
    paragraph (1) not be completed on the date the organism is
    deemed not to be a plant pest by operation of law, the analysis
    will be completed within no more than 90 days after such date.

    Background on Establishment of PRIA

        The Pesticide Registration Improvement Act (PRIA) is a
    landmark law enacted on January 23, 2004. Congress reauthorized
    PRIA (now known as ``PRIA 2'') for another five years on
    October 9, 2007. The law is intended to provide additional
    resources for the Environmental Protection Agency's (EPA)
    registration activities and more predictable service for
    pesticide registrants.
        PRIA created an entirely new paradigm for EPA to process
    applications for pesticide registrations and other related
    actions, including establishing specific timelines with
    corresponding fee schedules. Under PRIA 1, the Agency's Office
    of Pesticide Programs was required to process applications
    within timeframes specified for each of the 50 categories of
    registration actions. PRIA 1 also established specific fees for
    each of the 50 categories. Under PRIA 2, the number of
    categories increased to 140 and PRIA 3 would establish 189
    categories.
        PRIA legislation retained and increased the product
    maintenance fees that support reregistration and tolerance
    reassessment authorized under the Food Quality Protection Act.
    Pesticide registrants paid $110 million in maintenance fees
    during the authorization of PRIA (which expires in October
    2012) and registrants are scheduled to pay $139 million in
    maintenance fees for the five year period to be covered by the
    proposed ``PRIA 3.''
        PRIA established a prohibition against the collection of
    other registration fees (as distinct from registration service
    fees) authorized under the Federal Insecticide, Fungicide and
    Rodenticide Act (FIFRA). PRIA also suspended the Agency's
    authority to collect tolerance fees which had been authorized
    by the Federal Food, Drug and Cosmetic Act (FFDCA).

    Implications of Additional Fees Proposed by Administration

        Since 1989, various White House administrations have sought
    to reinstate old and prohibited fees and the current
    administration is no exception. In Fiscal Year 2013, industry
    registrants have already agreed to revenues ranging from $31
    million to $38 million for maintenance and registration service
    fees. For Fiscal Year 2013, the Office of Management and Budget
    (OMB) has proposed an additional $27 million in maintenance
    fees and an additional $24 million in registration service
    fees.
        If these proposed fees are enacted, the revenue would go to
    the U.S. Treasury where it would be unavailable to EPA's
    Pesticide Program. Moreover, enactment of these fees would
    require amendments to FIFRA and FFDCA, thus undermining the
    letter and intent of PRIA. Congress has repeatedly barred
    collection of increased fees proposed by OMB and rejected White
    House proposals to modify FIFRA and FFDCA accordingly. To enact
    pesticide fee increases beyond those authorized by PRIA would
    jeopardize the many gains in EPA's pesticide registration
    program to the many stakeholders that benefit from EPA's
    scientifically rigorous regulation of this industry.

    EPA and USDA Coordination for Decisions on Plant Incorporated
            Protectants (PIPs)

        Congress has previously directed the Administrator to
    expedite the review of reduced-risk pesticides, FIFRA Section
    3(c)(10), 7 U.S.C. 136a(c)(10). In reauthorizing PRIA, the
    Committee is troubled by apparent inefficiencies in the EPA's
    registration process for two categories of reduced-risk
    pesticides: plant-incorporated protectants, both individual and
    combined trait products, and herbicides used over the top of
    herbicide-tolerant crops, both individually and in combination.
    Both categories of pesticide products involve a parallel,
    albeit independent, review of the relevant plant products by
    the Secretary under the Plant Protection Act and implementing
    regulations.
        The Committee expects that the Administrator and the
    Secretary will coordinate and otherwise conduct their
    respective reviews in such a manner as not to cause any undue
    delay in action being taken on the particular application,
    petition or other request pending before them. Nor should any
    provision of PRIA be used to delay action by the Administrator
    on an application submitted under FIFRA without good cause
    shown.

    Provisions Under ``PRIA 3''

        The following provisions are included in the third
    reauthorization of PRIA:
         extends the authority of EPA to collect
    maintenance fees until 2017;
         extends the prohibition on collection of other
    registration and tolerance fees to 2019 and 2017, respectively;
         establishes a small business cap;
         allocates funds for EPA to use for the enhancement
    and improvement of IT systems for the registration of
    pesticides and tracking of key information;
         amends the percentage of maintenance fees devoted
    to review of inerts and fast track amendments;
         increases registration service fees during the
    life of PRIA 3 by 2.5%;
         provides that the Administrator shall identify
    reforms in processing that would allow it to improve decision
    times beyond those provided for in the Act; and
         cites new schedule of decision review times.

    ``PRIA 3'' Tables

        The Committee includes in this report an Appendix that
    contains ``PRIA 3'' Tables with the applicable schedules of
    covered pesticide registrations applications and corresponding
    registration service fees and decision time review periods.

    Pesticide Biological Opinions

        The Committee has been made aware of the dramatically
    different views on approaches to assessing and managing
    potential risks to fish, wildlife and plant species between the
    Environmental Protection Agency (EPA) and the Fish and Wildlife
    Service and National Marine Fisheries Service (collectively,
    the Services). Consequently, these agencies disagree on
    fundamental legal and science policy matters related to their
    respective obligations under the Endangered Species Act (ESA)
    and the Federal Insecticide, Fungicide and Rodenticide Act
    (FIFRA). These scientific disagreements, along with inability
    to develop a sound and workable process for consultation under
    ESA, threaten public health, agricultural productivity, and
    global competitiveness with no commensurate benefit to
    threatened and endangered species.
        FIFRA requires EPA to evaluate unreasonable risk of harm to
    human health or the environment (including fish, wildlife and
    ``non-target'' plants) before granting pesticide registrations
    or amendments to existing pesticide registrations.
        FIFRA requires applicants for pesticide registration
    actions (registrants) to submit to EPA a robust set of
    scientific data to ensure the protection of the environment.
    EPA also considers other available data and has the authority
    to require additional data from pesticide registrants to ensure
    decisions are scientifically sound. EPA's Office of Pesticide
    Programs is uniquely staffed to critically evaluate the
    voluminous available data on the potential pesticide effects.
        ESA provides for an additional level of scrutiny by
    requiring federal agencies, such as EPA, to consult with the
    Services on ``agency actions'' (such as a pesticide
    registration) that could impact threatened or endangered
    species or their critical habitats. As part of the consultation
    process, the Services issue a ``biological opinion'' which may
    recommend additional modifications or restrictions to ``agency
    actions.''
        In the last decade, EPA has been sued to compel
    consultations with the Services for hundreds of products
    throughout the nation, and has agreed to do so. These lawsuits
    are ``procedural'' in nature citing a lack of ``consultation''
    with the Services and rarely attack EPA's underlying analysis
    of the science-based record. Most importantly, however, such
    lawsuits divert precious government resources from actually
    protecting endangered species. Several of the lawsuits filed
    have resulted in Court-ordered ``interim'' restrictions on the
    use of critical pesticides. In January 2011, an activist group
    filed a suit against EPA involving more than 380 pesticides and
    214 threatened or endangered species. A suit of this magnitude
    could seriously jeopardize agriculture and pest control
    activities in 49 states.
        The EPA has made significant efforts to meet obligations
    under FIFRA and ESA, while the Services have produced
    biological opinions that many observers find grossly flawed,
    ignore pertinent data, and rely on outdated and irrelevant
    studies. Therefore, the five partial consultations conducted
    since 2002 have not been fully implemented. As a result, EPA
    has not found the Service's recommendations sufficiently based
    on sound science to compel registrants to adopt them.
        This inability to resolve fundamental scientific issues at
    the heart of a consultation involving pesticides led EPA
    Administrator Lisa Jackson and the Secretaries of the United
    States Department of Agriculture, Department of Interior and
    Department of Commerce to recently ask the National Research
    Council (NRC) of the National Academy of Sciences (NAS) to
    provide guidance on six key scientific issues. This action,
    however, does not stop the litigation, nor will it impede
    courts from unilaterally imposing unwarranted pesticide
    restrictions. In a joint oversight hearing held on May 4, 2011,
    between the Committee's on Agriculture and Natural Resources,
    it became clear to many of the Committee's respective Members
    that the requested NRC study was incomplete and lacking in the
    scope necessary to critically review existing biological
    opinions in their entirety.

    Response for Why Legislation Is Needed

        Committee Members have therefore raised numerous concerns
    with the failure of the NRC study contract to include unbiased
    scientific peer review of the Services' biological opinions as
    well as an analysis of the technological and economic
    feasibility of the proposed ``Reasonable and Prudent Measures''
    or ``Reasonable and Prudent Alternatives''.
        To ensure the NRC study addresses the concerns raised by
    interested parties during the hearing, the Committee continues
    to strongly assert that the following scientific questions must
    be included in the NRC study to properly examine the numerous
    issues raised by the Services' biological opinions to date.
    Questions that the Committee has asked the agency to include in
    the NRC contract include:
        The NAS recently provided guidance on evaluation of data
    quality for EPA Integrated Risk Information System (IRIS)
    evaluations. What criteria should the EPA and the Services be
    using in evaluating data for acceptability and relative quality
    in regulatory decision-making? How should decisions on data
    acceptability be documented?
        A well defined weight-of-evidence framework would provide
    some structure and transparency to the objective assessment of
    information relied upon for regulatory decision-making. Is
    there a recommended framework for a ``weight-of-evidence''
    approach for evaluation of all relevant available data and how
    should that framework be applied?
        Were apparent incongruities or inconsistencies in available
    data appropriately addressed and clearly described in the
    Services' biological opinions? Were the implications of the
    inconsistencies considered in describing the uncertainty in the
    assessment?
        Were the rationales used to support jeopardy or adverse
    modification determinations well-grounded in empirical
    observations? Have the Services clearly articulately the
    limitations and uncertainties associated with the effects
    determinations?
        When worst-case assumptions are made, how should they be
    documented to make the level of conservatism apparent,
    consistent with Presidential memoranda?
        Should uncertainty factors be reduced or eliminated as more
    recent empirical data are made available? If so, have the
    Services adopted this principle in their effects determinations
    conducted to date?
        Were the assumptions used to fill data gaps supported by
    empirical data, reasonable and clearly articulated?
        Were the specific assumptions and inferences used to
    support jeopardy and adverse modification determinations
    plausible? That is, did the Services include an assessment of
    the a priori likelihood that critical assumptions and
    inferences would prove true if tested?
        Where in the assessment process should the Services involve
    the expertise of other federal and state Agencies, as well as
    non-federal entities such as growers and other stakeholders, in
    the risk assessment process?
        The problem formulation includes a description of the
    different stressors that are influential on species survival.
    How are considerations of key stressors for endangered and
    threatened species and the relative significance of their known
    or potential impacts incorporated into a jeopardy finding as
    part of the Biological Opinion?
        How should consideration of key stressors inform the
    Reasonable and Prudent Measures (RPMs) or Reasonable and
    Prudent Alternatives (RPAs) suggested at the end of the
    consultation process? For example, if habitat loss is
    identified as the predominant factor impacting a species in
    question, how will measures to lessen impact include
    consideration of mitigation options that increase or improve
    habitat?
        How should the Services consider the human health
    implications of the impact of proposed mitigation measures on
    mosquito population control efforts?
        The Committee is likewise concerned that the scope of work
    of the NRC must cover direct and indirect economic impacts.
    Therefore, it is imperative that any review of these biological
    opinions be comprehensive in nature, and address the following
    issues pertaining to economic feasibility, consistent with 50
    C.F.R. Sec.  402.02 before moving forward with implementation
    of any pending or future biological opinions related to FIFRA
    registered products.
        What factors should the Services consider to make the
    determination that proposals are ``technologically feasible''?
        What factors should the Services consider to make the
    determination that the proposals are ``economically feasible''?
        Can you recommend an appropriate framework for conducting a
    benefit-cost analysis (BCA) for determining and documenting
    economic and technical feasibility?
        In addition to a BCA, a cost-effectiveness analysis (CEA)
    can provide a rigorous way to identify and evaluate options
    that achieve the most effective use of the resources available.
    Can you recommend an appropriate framework for conducting a CEA
    to evaluate a range of possible alternatives under
    consideration?
        For both BCAs and CEAs how should the Services document and
    analyze important uncertainties associated with proposed RPAs?
    Furthermore, to what extent is it recommended that the Services
    provide a sensitivity analysis to reveal whether, and to what
    extent, the results of the analysis are sensitive to plausible
    changes in the main assumptions and inputs?
        To what extent is it recommended that the Services identify
    and consider important ancillary benefits and countervailing
    risks related to proposed RPAs? (For example, potential
    reduction in habitat resulting from changes in land management
    practices in response to proposed restrictions.)
        Taken together, these questions represent a reasonable
    basis on which to achieve scientific consensus. The Committee
    urges the EPA, USDA and Services' to take such action as is
    necessary to amend, supplement or reinitiate the request to the
    NRC to ensure that their work, once completed will be thorough
    and defensible.

    The Federal Insecticide, Fungicide, and Rodenticide Act

        The Federal Insecticide, Fungicide, and Rodenticide Act
    (``FIFRA'') is a regulatory statute that governs the sale and
    use of pesticides in the United States through the registration
    and labeling of such products. Its objective is to protect
    human health and the environment from unreasonable adverse
    effects of pesticides, taking into account the costs and
    benefits of various product uses. Pesticides regulated under
    FIFRA include insecticides, herbicides, fungicides,
    rodenticides, and other designated substances. The
    Environmental Protection Agency (``EPA'') reviews scientific
    data submitted by chemical manufacturers on toxicity and
    behavior in the environment to evaluate risks and exposure
    associated with a product's use.
        FIFRA prohibits the sale of any pesticide unless it is
    registered and labeled indicating approved uses and
    restrictions. It is a violation of Federal law to use such a
    chemical in a manner that is inconsistent with the label
    instructions. If a registration is granted, EPA makes a finding
    that the chemical `when used in accordance with widespread and
    commonly recognized practice it will not generally cause
    unreasonable adverse effects on the environment.' (7 U.S.C.
    136a(c)(5)(D)). EPA then specifies the approved uses and
    conditions of use of the pesticide, and this is required to be
    explained on the product label.

    The Clean Water Act

        The objective of the Federal Water Pollution Control Act
    (commonly known as the ``Clean Water Act'' or the ``CWA'') is
    to restore and maintain the chemical, physical, and biological
    integrity of the nation's waters. The primary mechanism for
    achieving this objective is the CWA's prohibition on the
    discharge of any pollutant without a National Pollutant
    Discharge Elimination System (``NPDES'') permit. EPA has the
    authority to regulate the discharge of pollutants either
    through general permits or through individual permits. NPDES
    permits specify limits on what pollutants may be discharged
    from point sources and in what amounts. Under the CWA, 47
    states and territories have been authorized to implement NPDES
    permits and enforce permits. EPA manages the Clean Water Act
    program in the remaining states and territories.
        NPDES permits are the basic regulatory tool of the CWA. EPA
    or an authorized state may issue compliance orders, or file
    civil suits against those who violate the terms of a permit. In
    addition, in the absence of Federal or state action,
    individuals may bring a citizen suit in United States district
    court against those who violate the terms of an NPDES permit,
    or against those who discharge without a valid permit.

    Litigation

        In over 30 years of administering the CWA, EPA had never
    required an NPDES permit for the application of a pesticide,
    when the pesticide is applied in a manner consistent with FIFRA
    and its regulations. While the CWA contains a provision
    granting citizen suits against those who violate permit
    conditions or those who discharge without an NPDES permit,
    FIFRA has no citizen suit provision. As a result, beginning in
    the late 1990s, a series of citizen lawsuits were filed by
    parties, contending that an NPDES permit is necessary when
    applying a FIFRA-regulated product over, into, or near
    waterbodies. These cases generated several Court of Appeals
    decisions that created confusion and concern among pesticide
    users regarding the applicability of the CWA with regard to
    pesticide use.
        As the litigation continued, concern and confusion grew
    among farmers, forest landowners, and public health officials,
    prompting EPA to issue interim, and later final, interpretive
    guidance in August 2003 and January 2005, and then to undertake
    a rulemaking to clarify and formalize the Agency's
    interpretation of the CWA as it applied to pesticide use. The
    EPA rule was finalized in November 2006 (71 Fed. Reg. 68483
    (Nov. 27, 2006)), and was the culmination of a three year
    participatory rulemaking process that began with the interim
    interpretive statement in 2003 and involved two rounds of
    public comment.
        The 2006 EPA rule codified EPA's long-standing
    interpretation that the application of chemical and biological
    pesticides for their intended purpose and in compliance with
    pesticide label restrictions is not a discharge of a
    ``pollutant'' under the CWA, and therefore, that an NPDES
    permit is not required. The rule clearly defined specific
    circumstances in which the use of pesticides in accordance with
    all relevant requirements under FIFRA is not a CWA ``discharge
    of a pollutant,'' explaining in detail the rationale for the
    Agency's interpretation.
        When the rule was finalized, environmental groups, as well
    as farm and pesticide industry groups, filed petitions for
    review of the rule in several Federal Circuit Courts of Appeal.
    The petitions were consolidated in the Sixth Circuit. The Sixth
    Circuit ultimately vacated the rule on January 7, 2009 in
    National Cotton Council v. EPA (553 F.3d 927; hereinafter,
    National Cotton Council), concluding that the final rule was
    not a reasonable interpretation of the CWA's permitting
    requirements. The court rejected EPA's contention that, when
    pesticides are applied over, into, or near waterbodies to
    control pests, they are not considered pollutants as long as
    they comply with FIFRA, and held that NPDES permits are
    required for all pesticide applications that may leave a
    residue in water.
        EPA estimated that the ruling would affect approximately
    365,000 pesticide applicators that perform some 5.6 million
    pesticide applications annually. The court's decision, which
    would apply nationally, was to be effective seven days after
    the deadline for rehearing expired or seven days after a denial
    of any petition for rehearing. Parties had until April 9, 2009
    to seek rehearing.
        On April 9, 2009, the government chose not to seek
    rehearing in the National Cotton Council case. The government
    instead filed a motion to stay issuance of the court's mandate
    for two years to provide EPA time to develop an entirely new
    NPDES permitting process to cover pesticide use. As part of
    this, EPA needed to propose and issue a final NPDES general
    permit for pesticide applications, for states to develop
    permits, and for EPA to provide outreach and education to the
    regulated community. Industry groups filed a petition seeking
    en banc review, asking the full Sixth Circuit to reconsider the
    decision from the three-judge panel.
        On June 8, 2009, the Sixth Circuit granted EPA a two-year
    stay of the court's mandate, in response to their earlier
    request. The Sixth Circuit denied the industry groups' petition
    for rehearing in August 2009. The court-ordered deadline for
    EPA to promulgate a new permitting process for pesticides under
    the Clean Water Act was April 9, 2011. On March 3, 2011, EPA
    filed another request for an extension with the court. On March
    28, 2011, the Sixth Circuit granted an extension through
    October 31, 2011. The Court's extension only temporarily
    postponed the need for an NPDES permit for pesticide use, and
    did not obviate the need for this legislation.
        Two petitions were filed with the U.S. Supreme Court in
    December 2009 by representatives of the agriculture community
    and the pesticide industry, requesting that the U.S. Supreme
    Court review the National Cotton Council case. A number of
    parties, including numerous Members of Congress, filed amicus
    briefs with the U.S. Supreme Court, in support of or opposition
    to the petitions. On February 22, 2010, the U.S. Supreme Court
    denied the petitioners' request without comment.

    EPA development of a new permitting process to cover pesticide use

        EPA continued to move ahead and developed a new NPDES
    permitting process to cover pesticide use, and on October 31,
    2011, EPA issued a final NPDES Pesticide General Permit for
    point source discharges from the application of pesticides to
    waters of the United States. The permit covers four pesticide
    uses: (1) mosquito and other flying insect pest control; (2)
    aquatic weed and algae control; (3) aquatic nuisance animal
    control; and (4) forest canopy pest control. It does not cover
    terrestrial applications to control pests on agricultural crops
    or forest floors, and does not cover activities exempt from
    permitting under the CWA (irrigation return flow, agricultural
    stormwater runoff) and discharges that will require coverage
    under an individual permit, such as discharges of pesticides to
    waterbodies that are considered impaired under CWA Sec. 303(d)
    for that discharged pesticide. This general permit provides
    coverage for discharges in the states where EPA is the NPDES
    permitting authority. In the remaining states, the states are
    authorized to develop and issue the NPDES pesticide permits.

    Implications

        The Committee has received testimony and other information
    on the implications of the Sixth Circuit's holding in the
    National Cotton Council case, and the new permitting process
    that EPA has had to develop under the CWA as a result of that
    holding, on state and local agencies, mosquito control
    districts, water districts, pesticide applicators, agriculture,
    forest managers, and other stakeholders. On February 16, 2011,
    the Subcommittee on Water Resources and Environment of the
    House Committee on Transportation and Infrastructure held a
    joint hearing with the Nutrition and Horticulture Subcommittee
    of the House Committee on Agriculture to consider means for
    reducing the regulatory burdens posed by the case, National
    Cotton Council v. EPA (6th Cir. 2009), and to consider related
    draft legislation.
        Despite being limited to four categories of pesticide uses,
    EPA's new general permit for covered pesticides stands to be
    the single greatest expansion of the permitting process in the
    history of the NPDES program. EPA has estimated that it can
    expect approximately 5.6 million covered pesticide applications
    per year by approximately 365,000 applicators--virtually
    doubling the number of entities currently subject to NPDES
    permitting. (U.S. EPA, Fact Sheet for 2010 Public Notice of:
    Draft National Pollutant Discharge Elimination System (NPDES)
    Pesticides General Permit (PGP) for Discharges from the
    Application of Pesticides to or over, including near Waters of
    the U.S., at 14, available at http://www.epa.gov/npdes/pubs/
    proposedXpgpXfs.pdf.)
        With this unprecedented expansion comes real and tangible
    burdens for EPA and the states that will have to issue the
    permits, those whose livelihoods depend on the use of
    pesticides, and even everyday citizens going about their daily
    lives.
        EPA has said that they will be able to conform the current
    process to meet the Sixth Circuit's mandate. Even so, much of
    the responsibility of developing and issuing general permits
    falls on the states. Forty-five states (and the Virgin Islands)
    are now facing increased financial and administrative burdens
    in order to comply with the new permitting process. In a time
    when too many states are being forced to make difficult
    budgetary cuts, the nation cannot afford to impose more
    financial burdens.
        The expanded permitting process also imposes enormous
    burdens on pesticide users who encompass a wide range of
    individuals from state agencies, city and county
    municipalities, mosquito control districts, water districts,
    pesticide applicators, farmers, ranchers, forest managers,
    scientists and others. The new and duplicative permitting
    process is increasing both the administrative difficulty and
    costs for pesticide applicators to come into compliance with
    the law. Compliance no longer means simply following
    instructions on a pesticide label. Instead, applicators have to
    navigate a complex process of identifying the relevant permit,
    filing with the regulatory authority a valid notice of intent
    to comply with the permit and having a familiarity with all of
    the permit's conditions and restrictions. Along with increased
    administrative burdens comes an increased monetary burden.
    Estimates are that the cost associated with the EPA permit
    scheme to small businesses could be as high as $50,000 per
    business, annually.
        In addition to the costs of coming into compliance,
    pesticide users are subject to an increased risk of litigation
    and exorbitant fines. Applicators not in compliance face fines
    of up to $37,500 per day per violation, not including
    attorney's fees. Given the fact that a large number of
    applicators have never been subject to NPDES and its permitting
    process, even a good faith effort to be in compliance could
    fall short. Moreover, the CWA allows for private actions
    against individuals who may or may not have committed a
    violation. Thus, while EPA may exercise its judgment and
    refrain from prosecuting certain applicators, they remain
    vulnerable to citizen suits. Unless Congress acts, hundreds of
    thousands of farmers, foresters, and public health pesticide
    users will remain under the constant threat of lawsuits, now
    that the Sixth Circuit's April 9, 2011 deadline has passed.
        It is not only pesticide regulators and applicators who are
    being affected by the new permitting requirements. Rather, the
    Sixth Circuit's decision is affecting everyday citizens, who
    rely on the benefits provided by pesticides and their
    responsible application. Pesticide use is an essential part of
    agriculture. Imposing a burdensome and duplicative permitting
    process on our nation's farmers threatens their ability to
    continue to provide the country with a safe and reliable food
    supply. Many family farmers and small applicators lack the
    resources to ensure compliance with a cumbersome and detailed
    permit scheme. Moreover, for those farmers who are able to
    comply, delays that are inherent in permitting schemes are ill-
    suited for prompt pest control actions necessary in
    agriculture. Failure to apply a pesticide soon after a pest is
    first detected could result in recurring and greater pest
    damage in subsequent years if a prolific insect were to become
    established in plant hosts. The Secretary of Agriculture, Hon.
    Thomas J. Vilsack, has said that a permitting system under the
    CWA for pesticide use ``is ill-suited to the demands of
    agricultural production.'' (Letter, Hon. Thomas J. Vilsack,
    Secretary of Agriculture, to Hon. Lisa P. Jackson,
    Administrator, U.S. Environmental Protection Agency, Subject:
    The National Cotton Council of America, et al., v. United
    States Environmental Protection Agency (Mar. 6, 2009)).
        Forest landowners also stand to suffer under the new permit
    scheme. EPA's permit scheme stands to result in a reduction in
    the use of forest pest control as a forest management tool,
    resulting in the acceleration of tree mortality and general
    decline in overall forest health. It also is erecting barriers
    for the control of pests, such as Gypsy Moth and Forest Tent
    Caterpillar. This may result in a higher incidence of
    preventable tree kills and defoliated landscapes.
        The Committee also recognizes the importance of the aerial
    application of pest control tools. These tools are useful not
    only to ensure overall food safety and food security, but also
    to promote public health through improved mosquito control
    techniques. The ARS Aerial Application Technology Program
    conducts innovative research making aerial applications more
    efficient, effective, and precise. This program has yielded
    more effective public health control programs, as well as
    increased efficiencies and greater crop production. Research
    for aerial application serves the public interest as a vital
    tool for the future.
        Finally, the Sixth Circuit's holding could have significant
    implications for public health. The National Centers for
    Disease Control officially recognizes the following as a
    partial list of mosquito-borne diseases--Eastern Equine
    Encephalitis, Japanese Encephalitis, La Crosse Encephalitis,
    St. Louis Encephalitis, West Nile Virus, Western Equine
    Encephalitis, Dengue Fever, Malaria, Rift Valley Fever, and
    Yellow Fever. (Centers for Disease Control and Prevention,
    http://www.cdc.gov/ncidod/diseases/listXmosquitoborne.htm.)
    EPA's permit program poses the possibility of critical delays
    in emergency responses to insect and disease outbreaks and
    stands to divert resources from controlling environmental pests
    to litigation and administrative burdens.

    Development of legislation in response to the Sixth Circuit decision

        As a result of concerns raised by Federal, state, local,
    and private stakeholders regarding the interrelationship
    between FIFRA and the CWA and the concerns posed by the new and
    duplicative permitting process under the CWA, the House
    Committee on Transportation and Infrastructure and House
    Committee on Agriculture sought technical assistance from EPA
    to draft very narrow legislation targeted only at addressing
    the Sixth Circuit's holding in National Cotton Council and
    return the state of pesticide regulation to the status quo--
    before the courts got involved. The Provisions of Section 10017
    are based on the technical assistance that EPA provided to the
    Committees, and is intended to be consistent with EPA's final
    rule from November 2006. The bill amends FIFRA and the CWA to
    eliminate the requirement of an NPDES permit for applications
    of pesticides authorized for sale, distribution, or use under
    FIFRA.

    Sulfuryl Fluoride

        On May 1, 2012, EPA published a Federal Register notice 77
    Fed. Reg. 25661 requesting additional comment on several issues
    raised during the agency's January 19, 2011, request for
    comments on the proposed tolerance revocation and stay request
    for the pesticide sulfuryl fluoride. In its latest request, EPA
    asked the public to provide additional information on several
    issues that were raised by commenters on EPA's earlier
    proposal, including certain legal issues regarding the
    implementation of Federal Food, Drug, and Cosmetic Act section
    408 and factual issues regarding the availability of
    alternatives to sulfuryl fluoride and impacts that would result
    if it were no longer available as a fumigant.
        The Committee appreciates the EPA's efforts to come to
    terms with what the Agency admits are ``the unusual
    circumstances'' surrounding the application of certain risk
    assessment policies in a situation where the vast majority of
    exposure results from fluoride sources other than sulfuryl
    fluoride, including naturally occurring sources. The current
    proposal continues however to cast doubt over the use of an
    important pesticide that, with the strong encouragement of the
    EPA, was adopted by the agriculture and food industries. The
    Committee is concerned that the reluctance to use sulfuryl
    fluoride by producers and related businesses during a lengthy
    administrative process may contribute to higher food costs and
    pose considerable challenges to maintaining food safety. For
    that reason, the Committee urges the EPA Administrator to
    withdraw the proposed order until such time as the relevant
    legal and factual issues have been resolved.

                            Title XI--Crop Insurance

        Over the course of the past 20 years, the United States has
    gone from ensuring 83 million acres to 264 million acres, a 218
    percent increase. Over that same period, the value of
    production protected by crop insurance has risen from roughly
    $11.3 billion in 1992 to $113.5 billion in 2011. Vast
    improvements in crop insurance over the past 20 years have
    resulted in growers taking up this tool as the cornerstone of
    their risk management strategy. With crop insurance, farmers
    have ``skin'' in the game, paying in a record $4.5 billion in
    crop insurance premiums in 2011.
        Through several audit, field, and Washington-based hearings
    in preparation for writing the farm bill--along with countless
    meetings with farmers and farm groups--the resounding message
    the Committee heard was that we should do no harm to crop
    insurance.
        The Committee heeded the message of not harming crop
    insurance and has used the opportunity to make several
    improvements, building on the tool that has become the
    cornerstone of the risk management framework for our nation's
    farmers.

    Information sharing

        The Committee recognizes that many of the errors discovered
    in the delivery of crop insurance are due to the agent or the
    approved insurance provider not receiving information from the
    Farm Service Agency or not receiving that information in a
    timely manner. The Committee expects the Department of
    Agriculture to ensure that the Farm Service Agency (FSA) shares
    information with agents and approved insurance providers (AIPs)
    in a timely manner to ensure effective coverage for producers
    and to reduce errors.

    Publication of information on violations of prohibition on premium
            adjustments

        The Committee has consistently sought to enjoin rebating
    under federal crop insurance. The Committee remains concerned
    about inadequate enforcement, as well as overly broad
    interpretations of the very limited exceptions that have been
    statutorily granted. The Committee expects the Department to
    enhance enforcement efforts, give the narrowest application to
    the exceptions granted, and to publish violations as required
    by this section in order to provide clear guidance on what is
    permissible under the statute. That being said, finite
    enforcement resources and judgment require the Department to
    focus on activities that are serious and plain violations
    rather than discovering ``rebates'' in long-standing business
    practices that have, heretofore, existed in harmony alongside
    anti-rebating rules without a detrimental effect on crop
    insurance.

    Supplemental Coverage Option

        The Committee recognizes that budget conditions have
    greatly limited the resources available under Title I of the
    Farm Bill and that this requires the Department to use
    authorities granted under the Federal Crop Insurance Act to
    help fill at least a part of the void. The Supplemental
    Coverage Option (SCO), which statutorily requires that
    producers be allowed to supplement individual yield or revenue
    policies with area-based yield or revenue policies on the same
    acreage, is an essential part of this effort and, as such, must
    be made available for the 2013 crop year for all producers in
    all counties seeking such coverage.
        The Committee understands that the Department has cited
    limited data as a possible reason to delay availability in
    certain counties and for certain crops. However, the Committee
    observes that this section and section 11008 of this Act
    greatly enhances the Department's capacity to gather and use
    the necessary data for timely implementation for the 2013 crop
    year. The Committee particularly expects that SCO will also be
    implemented for the 2013 crop year for crops that have a
    history of low participation and coverage levels under crop
    insurance, including rice and peanuts in all counties where
    these crops are produced. The Committee encourages the
    Department to work to ensure that price discovery issues do not
    impede availability of SCO to any producer, including producers
    of medium grain rice.
        Finally, the Committee would note that the Federal Crop
    Insurance Act is a broad grant of statutory authority which
    already authorizes SCO even without the express grant now
    provided under this section. The Committee is concerned that
    specific legislation is frequently required to address producer
    needs that could and should be met under the general grant of
    authority and urges the Department to exercise its authority to
    meet producer needs under this general grant rather than wait
    for Congress to require it. This is both in the interest of
    producers and to ensure that the broad, organic statute does
    not become a patchwork of specific requirements.
        The Committee also expects that the Department will approve
    margin coverage in time for the 2013 crop year and specifically
    grants legal authority to offer such coverage under the Act.
        The Committee would note in this instance as well as in the
    case of SCO that such legal authority already exists without
    the express approval of margin coverage under this section.
    Moreover, the Committee is concerned that the Department is
    applying the limitations imposed under the Federal Crop
    Insurance Act, generally, on the development of new policies
    under section 508(h) of the Federal Crop Insurance Act when the
    Act expressly instructs the Department not to do so. Section
    508(h)(2) specifically excuses section 508(h) submissions from
    limitations generally applicable under the statute, yet the
    Department has applied these limitations nevertheless. The
    Committee expects the Department to give meaning to the
    statutory instruction that ``a policy or other material
    submitted to the Board under this subsection may be prepared
    without regard to the limitations contained in this subtitle''
    without the need for a statutory restatement. Finally, the
    Committee expects that a producer may purchase additional
    coverage, margin coverage, and SCO on the same acreage since
    margin coverage is meant to be a supplement to additional
    coverage.

    Repeal of performance-based discount

        The Committee notes that any number of discounts or rebates
    have been tested in previous years and have failed. Amendments
    to the statute made in this Act and previous Acts have largely
    eliminated the authority for discounts and rebates and the
    inequities on produces and increased burdens on delivery that
    these schemes tend to generate. For this reason, the Committee
    expects the Department to avoid the expansion of activities
    operating under any authorities that remain.

    Permanent Enterprise Unit Subsidy

        The Committee would observe that the Department has the
    authority to carry out the enhanced premium support of
    Enterprise Units without the express authority the Committee
    now grants in this section. The Committee expects the
    Department to continue to carry out the enhanced premium
    support of Enterprise Units in a manner that makes such an
    election at least as cost-effective to producers as it was
    prior to enactment of this legislation.

    Enterprise Units for Irrigated and Non-Irrigated Crops

        The Committee restates that authority already exists to
    achieve this important goal for producers and expects the
    Department to implement this section in time for the 2013 crop
    year as required by this amendment to the statute.

    Data collection

        The authority granted under this section is to ensure,
    among other things, that SCO and the Stacked Income Protection
    Plan for Upland Cotton (STAX) are offered in all counties for
    the 2013 crop year.

    Adjustment in actual production history to establish insurance yields

        The Committee intends to reduce the double deductible
    producers face due to actual deductibles and those unintended
    deductibles created by artificially low Actual Production
    Histories (APHs). The Committee urges an aggressive effort to
    address this problem through the use of the authorities under
    this section and other authorities, including through a greatly
    expanded use of personal T-Yields and other effective
    approaches.

    Submission and approval of pilot programs and other policies

        For the same reason, the Committee elected not to make
    changes to the private submission process established under
    section 508(h) of the Federal Crop Insurance Act in order to
    foster the greatest possible flexibility in the development of
    policies that will effectively serve producers. The Committee
    expects that a revenue policy for peanut producers as well as
    margin coverage and downed rice coverage for rice producers
    will be made available to producers in time for the 2013 crop
    year. The Committee further expects the Department to approve
    the separating of enterprise units by risk rating so that such
    enterprise unit coverage is available in time for the 2013 crop
    year.

    Equitable relief for specialty crop producers

        The Committee recognizes that specialty crop contracts were
    especially and unfairly impacted by the Standard Reinsurance
    Agreement (SRA) and provides $41 million for each of the 2011
    through 2015 reinsurance years in order to mitigate the adverse
    impacts. With respect to future reinsurance years to which this
    section applies, the Committee intends that the additional
    amounts provided to approved insurance providers be paid to
    agents at the same time as amounts paid pursuant to the ``soft
    cap'' on administrative and operating expenses.
        The Committee further intends that the disbursements made
    under this section be paid without regard to the conditions
    imposed on the payment of administrative and operating expense
    amounts above the ``soft cap.'' Finally, the Committee expects
    the Department to ensure that amounts made available with
    respect to previous or current reinsurance years are disbursed
    by approved insurance providers to agents in a manner
    consistent with payments made in those years under the ``soft
    cap.''
        The Committee underscores that the provision of this
    equitable relief does not in any way provide statutory assent
    to the administrative imposition of limits on administrative
    and operating expenses or compensation to agents under the SRA.

    Budget limitations on renegotiation of the standard reinsurance
            agreement

        The Committee expects the Department to negotiate budget
    neutral Standard Reinsurance Agreements. To the extent that
    there are any savings from such an agreement, such savings must
    be used to increase premium assistance to producers, enhance
    administrative and operating expense reimbursement to ensure
    effective delivery, or fund pilot programs. The Committee notes
    the extraordinary cuts made in the last SRA, much through
    administratively imposed restrictions on administrative and
    operating expense reimbursement and on agent compensation
    although authority for such restrictions is not to be found in
    statute. While the statute is broad, it expressly states
    administrative and operating expense reimbursement rates, and
    had never before been construed to authorize government
    intervention into private contracts between approved insurance
    providers and agents.
        The Committee recognizes the covenants not to sue over
    these provisions, imposed on approved insurance providers who
    are privy to a contract with the federal government and on
    agents who are not privy to contract, as an acknowledgement by
    the Department of these issues. The Committee expects that the
    Department will consult the committees of jurisdiction more
    closely in future negotiations of the SRA, correct the
    overreaches of the 2011 SRA, and consult with agent
    representatives in such negotiations given the impact the SRA
    now has on agents both in terms of finances and workload. The
    Committee also recognizes that agents are the eyes and ears of
    crop insurance on the ground and encourages the Department to
    involve agents in the promulgation of rules, regulations, and
    policies of crop insurance in order to preempt program
    vulnerabilities before they occur.

    Crop production on native sod

        The Committee considered this issue carefully and opted to
    confine the section's reach to the Prairie Pothole National
    Priority Area. The section contains prescriptive requirements
    and also broader authority to effectuate its purpose. The
    Committee expects the Department to exercise any discretion it
    may have in carrying out this section in a manner that is
    balanced and not overly onerous on producers.

    Coverage levels by practice

        The Committee expects the Department to allow producers to
    elect different coverage levels by irrigation practice
    beginning with the 2014 crop year as provided for in this
    section. However, the Committee encourages the Department to
    implement this section earlier if practicable.

    Beginning farmer and rancher provisions

        The Committee expects the Department to carry out this
    section in a manner that imposes minimal burden on beginning
    farmers and ranchers, producers, approved insurance providers,
    and agents.

    Stacked income protection plan for producers of upland cotton (STAX)

        In order to address a World Trade Organization (WTO)
    dispute, U.S. cotton policy is fundamentally altered under the
    provisions of this Act, sharply limiting cotton producer
    support under the commodity title to the marketing loan. The
    Committee expects such coverage to be offered to all cotton
    producers in all counties in time for the 2013 crop year. The
    section would provide the bulwark of risk management for cotton
    producers through crop insurance and so this section's
    implementation in 2013 is essential. Provisions in this section
    and section 11008 enable the Department to implement this
    policy for cotton producers in a timely manner. The Committee
    expects the Corporation to cover the costs of that portion of
    indemnities attributable to the reference price.

    Peanut revenue crop insurance

        The Committee expects the peanut revenue policy required
    under this section to be made available in time for the 2013
    crop year. With substantially declining support under the
    commodity title, producers are expected to assume greater
    responsibility in managing price and production risks on the
    farm. In order to achieve this, all producers of all crops in
    all regions need access to risk management tools that they can
    purchase that are cost-effective on their operations.

    Authority to correct errors

        The Committee views the sharing of information required
    under section 11001 and the authority to correct errors as key
    components to ensuring that producers have effective coverage
    in place at the time of a loss and to protecting program
    integrity. The Committee expects the Department to implement
    this section in a manner that does not eliminate any
    authorities or practices preexisting the enactment of this Act
    that permit the correction of errors but rather as additive
    authority.
        The Committee relied heavily upon the Department for its
    drafting and policy expertise in crafting this section, the
    spirit of which is intended by the Committee to allow the
    correction of unintentional errors to the maximum extent
    practicable. Neither program nor producer is served if coming
    forward with unintentional errors is punished as it may chill
    attempts at correction while leaving the producer without
    coverage if and when the error is discovered.

    Implementation

        The Committee expects the Department to work closely with
    the FSA, the RMA, approved insurance providers, and agent and
    producer representatives in developing any acreage report
    streamlining initiative project to ensure that the best
    interests of the producer are served.

    Research and development priorities

        The Committee expects the Department to make the
    development of policies that increase the participation of
    underserved commodities a priority, particularly policies
    serving sweet sorghum, biomass sorghum, rice, peanuts, and
    sugarcane.

    Additional research and development contracting requirements

        The Committee expects the Department to develop effective
    margin coverage for catfish producers and further emphasizes
    the need for the development of policies that effectively serve
    energy-dedicated biomass sorghum and sweet sorghum, as is
    required under this Act.

    Pilot programs

        The Committee expects this provision to further remove
    unnecessary impediments to the initiation of pilot programs
    designed to test the effectiveness of risk management tools for
    producers.

    Noninsured crop assistance program (NAP)

        The Committee is concerned that the improvements to NAP not
    impede the development of crop insurance policies for crops
    served by NAP. The Committee affirms the goal of developing
    effective crop insurance policies for all producers, crops, and
    regions so that producers meaningfully pay for the risk
    management coverage on their operations. Reliance on NAP should
    be a last resort.
        The Committee recognizes the need for NAP to provide
    financial assistance to producers of non-insured crops, such as
    fern fronds, when low yields, loss of inventory, or prevented
    planting occurs due to natural disasters. With respect to NAP
    coverage, the Committee expects the inventory values of fern
    fronds to be counted separately from rooted fern plants.

                            Title XII--Miscellaneous

    Mandatory Country of Origin Labeling Report

        On June 29, 2010 the World Trade Organization finalized the
    ruling on Canadian and Mexican challenges to the United States'
    mandatory country of origin law with respect to beef and pork.
    The decision was adverse to elements of mandatory country of
    origin labeling. A question remains as to whether or not the
    issue can be resolved administratively or require changes in
    the statute. The Committee expects that the Secretary will
    report to Congress how the Administration will bring the
    Administration into compliance with this decision. The
    Committee does not intend this provision to presuppose that
    determination.

    GIPSA

        The Committee addresses regulations prompted by Section
    11006 of the Food, Conservation, and Energy Act of 2008, which
    were proposed by the U.S. Department of Agriculture on June 22,
    2010 and titled ``Implementation of Regulations Required Under
    Title XI, of the Food, Conservation and Energy Act of 2008''.
    On July 20, 2010, the Livestock, Dairy & Poultry Subcommittee
    of the House Committee on Agriculture conducted a hearing on
    Farm Bill programs under its jurisdiction administered by USDA.
    During the hearing a broad array of concerns were expressed by
    Members of the Committee. Members asserted that the proposed
    rule went far beyond the scope of the Farm Bill, lacked a sound
    economic analysis necessary to judge both the need and utility
    of the proposed rule and may have been the result of a flawed
    rulemaking process.
        On October 1, 2010, 115 Members of the House wrote the
    Secretary of Agriculture requesting a cost benefit analysis
    that has yet to be conducted. On April 6, April 13, and May 4,
    2011 the Livestock, Dairy & Poultry Subcommittee conducted
    hearings on the beef, pork, and poultry sectors respectively.
    During these hearings, representatives from the beef, poultry
    and pork sectors testified about the challenges facing their
    communities, including the proposed GIPSA regulation. On May
    18, 2011, 147 Members wrote the Secretary requesting him to
    withdraw the rule and repropose with an economic analysis.
        The FY 2012 Agriculture Appropriations, H.R. 2112,
    contained Section 721 barring USDA work on major portions of
    proposed rule. The Appropriations Committee-reported
    appropriations for FY 2013, H.R. 5973, contains Section 719,
    barring USDA action on these same components of the proposed
    rule and repealing three items on which the Administration had
    completed rulemaking.
        The Committee asserts that the Packers and Stockyards Act
    has an important role to play in our livestock markets. That
    said, the Committee continues to express its concerns with
    actions taken thus far to implement the 2008 amendments. The
    Committee action seeks to codify language similar to that
    adopted in 2011 with Section 721 of H.R. 2112 as modified by
    Section 719 of H.R. 5973, except that the Committee reported
    bill would prohibit the Secretary from issuing similar
    regulations or adopting similar policies in the future.

    Meat and Poultry Processing Report

        The Committee reported bill directs the Secretary to submit
    a report to Congress detailing steps that the Department can
    take to better meet the needs of federally and State inspected
    small and very small meat and poultry slaughter and processing
    plants, and to improve the electronic submission and approval
    process for labels. As it weighs various options to improve
    public access to label approval process information, the
    Committee suggests the Department consider publishing a user-
    friendly web page that includes relevant information.
        The Committee intends that in developing the report, the
    Secretary will include input from niche market livestock and
    poultry producers. The report should build upon and update, as
    appropriate, the 2006-2007 FSIS Strategic Implementation Plan
    for Strengthening Small and Very Small Plant Outreach, and
    should focus on assistance that can be offered to meet the
    requirements of the Federal Meat Inspection Act and the Poultry
    Products Inspection Act. In addition, the Committee intends
    that the Secretary will consider the needs of custom and mobile
    slaughter and processing plants in meeting the requirements for
    receiving USDA official marks of inspection.

                               Section-By-Section

    Sec. 1. Short Title; Table of Contents

    Sec. 2. Definition of Secretary of Agriculture

                              Title I--Commodities

                        SUBTITLE A--REPEALS AND REFORMS

    Sec. 1101. Repeal of Direct Payments

        Section 1101 repeals direct payments effective with the
    2013 crop year.

    Sec. 1102. Repeal of Counter-Cyclical Payments

        Section 1102 repeals the counter-cyclical payments
    effective with the 2013 crop year.

    Sec. 1103. Repeal of Average Crop Revenue Election Program

        Section 1103 repeals the Average Crop Revenue Election
    (ACRE) program effective with the 2013 crop year.

    Sec. 1104. Definitions

        Section 1104 contains majority and all common definitions
    for the Title.

    Sec. 1105. Base Acres

        Section 1105 continues the Secretary's authority to provide
    for adjustments to base acres for covered commodities and
    cotton when a CRP contract is terminated, acres are released
    from the CRP or when the Secretary designates additional
    oilseeds in the same manner as current law.

    Sec. 1106. Payment Yields

        Section 1106(a) continues the Secretary's authority to
    establish payment yields for each farm for any designated
    oilseed that does not have a payment yield.
        Section 1106(b) continues the method of determining the
    payment yield for designated oilseeds in the same manner as
    current law.
        Section 1106(c) authorizes the Secretary to establish a
    payment yield if no payment yield is otherwise established for
    a covered commodity using the program payment yields of
    similarly situated farms.
        Section 1106(d) In time for the 2013 crop year, the owner
    of the farm can update the payment yields of each covered
    commodity once.

    Sec. 1107. Farm Risk Management Election

        Section 1107(a) states that producers with more than 10
    planted acres of covered commodities may elect Price Loss
    Coverage or Revenue Loss Coverage.
        Section 1107(b) makes producers eligible for a price loss
    coverage payment for covered commodities for the 2013-2017 crop
    years when the effective price for a covered commodity is less
    than the reference price for the covered commodities. The
    effective price is the higher of the national average market
    price for a covered commodity for the first 5 months of the
    marketing year (the midseason price) and the national average
    marketing loan rate established in subtitle B. The reference
    prices are set in Sec. 1104(16). If a payment is required, the
    payment will be the difference between the reference price and
    the effective price multiplied by the payment yield (defined in
    Sec. 1104(12)) and the payment acres (defined in
    Sec. 1104(11)). The Secretary shall make price loss coverage
    payments on October 1, or as soon as practicable thereafter,
    after the applicable marketing year for the covered commodity.
        Section 1107(c) offers an alternative to price loss
    coverage. A farmer can make a one-time, irrevocable election on
    a crop by crop, farm by farm basis to receive revenue loss
    coverage. Farmers will receive revenue loss coverage payments
    for the 2013-2017 crop years when the actual county revenue for
    a covered commodity in a crop year is less than the county
    revenue loss trigger for the covered commodity.
        The actual farm revenue is the product of multiplying the
    actual county yield for each planted acre of the covered
    commodity and the higher the first 5 months of the marketing
    year (the midseason price) or the national average marketing
    loan rate established in subtitle B. The county revenue loss
    coverage trigger for a covered commodity is 85 percent of the
    benchmark county revenue.
        The benchmark county revenue is the average historical
    county yield of a covered commodity in a county for the most
    recent 5 years, excluding the highest and the lowest, subject
    to the average national marketing year price. In calculating
    the benchmark county revenue the Secretary shall use the higher
    of the historical county yield or 70 percent of the historical
    county transitional yield. For price the Secretary shall use
    the higher of the national marketing year average price or the
    reference price (set in Sec. 1104(16)).
        The payment rate is the difference between the county
    revenue loss coverage trigger for the covered commodity and the
    actual county revenue for the crop year for the covered
    commodity or 10 percent of the benchmark county revenue for the
    crop year for the covered commodity.
        If payments are required the payment amount is the
    determined by multiplying the payment rate and the payment
    acres of the covered commodity on the farm. Payments are to be
    made on October 1 or as soon as practicable thereafter, after
    the applicable marketing year for the covered commodity.

    Sec. 1108. Producer Agreements

        Section 1108 states that before a producer of a covered
    commodity can receive a payment under section 1107 he or she
    must comply with sod buster provisions in subtitle B of title
    XII of the '85 act, and the swampbuster provisions of subtitle
    C of the title XII of the '85 act, keep the land in agriculture
    or conserving use, and effectively control noxious weeds.
        If a producer sells or otherwise transfers his farm to
    someone else, the new owner or operator must assume all of the
    compliance obligations or the right to either the price loss
    coverage payment or the revenue loss coverage payment is
    terminated.
        The producer is still required to submit to the Secretary
    acreage reports. Accidental errors in the reports will not
    result in loss of payment.
        The Secretary shall provide adequate safeguards to protect
    the interest of tenants and sharecroppers and for sharing the
    payments among the producers on a farm on a fair and equitable
    basis.

    Sec. 1109. Period of Effectiveness

        Section 1109 sets 2013-2017 as the period of effectiveness
    for this subtitle.

                          SUBTITLE B--MARKETING LOANS

    Sec. 1201. Availability of Nonrecourse Marketing Assistance Loans for
            Loan Commodities

        Section 1201 authorizes nonrecourse loans for loan
    commodities for 2013-2017 crop years in the same manner as
    current law. It also includes a requirement that producers
    comply with certain conservation requirements.

    Sec. 1202. Loan Rates for Nonrecourse Marketing Assistance Loans

        Section 1202 continues current law establishing loan rates
    for commodities, except for an adjustment to upland cotton, as
    follows for the 2013-2017 crop years:
        Wheat, $2.94 (same as current law)
        Corn, $1.95 (same as current law)
        Grain Sorghum, $1.95 (same as current law)
        Barley, $1.95 (same as current law, though now using the
    all barley price)
        Oats, $1.39 (same as current law)
        Upland Cotton, for the 2013 and each subsequent crop year,
    the simple average of the adjusted prevailing world price for
    the 2 immediately preceding marketing years, but in no case
    less than $0.47 per pound or more than $0.52 per pound.
        Extra long staple cotton, $0.7977 (same as current law)
        Long grain rice, $6.50 (same as current law)
        Medium/short grain rice, $6.50 (same as current law)
        Soybeans, $5.00 (same as current law)
        Other oilseeds, $10.09 (same as current law)
        Dry Peas, $5.40 (same as current law)
        Lentils, $11.28 (same as current law)
        Small Chickpeas, $7.43 (same as current law)
        Large Chickpeas, $11.28 per hundredweight (same as current
    law)
        Peanuts, $355 per ton (same as current law)
        Graded wool, $1.15 (same as current law)
        Non-graded wool, $0.40 (same as current law)
        Honey, $0.69 (same as current law)
        Mohair, $4.20 (same as current law)

    Sec. 1203. Term of Loans

        Section 1203 continues the provisions of the current law on
    the terms of loans: 9 months; no extensions.

    Sec. 1204. Repayment of Loans

        Section 1204 requires the repayment of marketing assistance
    loans in the same manner as current law.

    Sec. 1205. Loan Deficiency Payments

        Section 1205 authorizes loan deficiency payments for 2013-
    2017 crop years under same conditions as 2002 Farm Bill.

    Sec. 1206. Payments In Lieu of Loan Deficiency Payments for Grazed
            Acreage

        Section 1206 continues the authorization for payments in
    lieu of LDPs for producers who have grazed acreage for the
    2013-2017 crop years under in the same manner as current law.

    Sec. 1207. Special Marketing Loan Provisions for Upland Cotton

        Section 1207 continues the authorization for the President
    to issue special import quota for the 2013-2017 crop year in
    the same manner as current law using only official USDA data.

    Sec. 1208. Special Competitive Provisions for Extra Long Staple Cotton

        Section 1208 continues the authorization through July 31,
    2013 of the special competitive provisions for extra long
    staple cotton in the same manner as current law.

    Sec. 1209. Availability of Recourse Loans for High Moisture Feed Grains
            and Seed Cotton

        Section 1209 continues the authorization for recourse loans
    for these crops for the 2013-2017 crop years in same manner as
    current law.

    Sec. 1210. Adjustment of Loans

        Section 1210 authorizes the Secretary to adjust loan rates.

                               SUBTITLE C--SUGAR

    Sec. 1301. Sugar Program

        Section 1301 reauthorizes the sugar program requiring the
    Secretary to administer the program in the same manner as
    current law.

                               SUBTITLE D--DAIRY

    Part I--Dairy Producer Margin Protection and Dairy Market Stabilization
                                    Programs

    Sec. 1401. Definitions

        Section 1401 defines the terms used in the Dairy Producer
    Margin Protection and Dairy Market Stabilization Programs,
    including that a ``participating dairy producer'' is a dairy
    producer that registers for the dairy producer margin
    protection program, and, as a result of the registration, also
    participates in the dairy market stabilization program.

    Sec. 1402. Calculation of Average Feed Cost and Actual Dairy Producer
            Margins

        Section 1402 establishes that the average feed cost be
    calculated each month using the price of corn, the price of
    soybean meal in central Illinois, and the price of alfalfa hay,
    as reported by the Secretary.
        For use in the margin protection program, directs the
    Secretary to calculate the actual dairy producer margin for
    each consecutive 2 month period by subtracting the average feed
    cost from the all-milk price for that period.
        For use in the stabilization program, directs the Secretary
    to calculate the actual dairy producer margin for each
    preceding month by subtracting the average feed cost from the
    all-milk price for that period.

              Subpart A--Dairy Producer Margin Protection Program

    Sec. 1411. Establishment of Dairy Producer Margin Protection Program

        Section 1411 directs the Secretary to establish a dairy
    producer margin protection program by providing basic margin
    protection payments when margins are less than a $4 threshold
    level, and providing supplemental margin protection up to an $8
    margin if purchased by the producer.

    Sec. 1412. Participation of Dairy Producers in Margin Protection
            Program

        Section 1412 establishes that all dairy producers in the
    United States are eligible to participate in and sign-up for
    the margin protection program to receive basic margin
    protection, and, if the producer so chooses, to purchase
    supplemental margin protection.

    Sec. 1413. Production History of Participating Dairy Producers

        Section 1413 establishes the production history of
    producers.

    Sec. 1414. Basic Margin Protection

        Section 1414 establishes a basic margin protection program
    under which participating dairy producers receive a basic
    margin protection payment when the average actual dairy
    producer margin falls below $4.00 for a consecutive two-month
    period.

    Sec. 1415. Supplemental Margin Protection

        Section 1415 establishes that a dairy producer may purchase
    supplemental margin protection on a yearly basis to protect a
    higher level of income than under the basic margin program.

    Sec. 1416. Effect of Failure To Pay Administrative Fees and Premiums

        Section 1416 mandates that a dairy producer, who elects to
    participate in the basic or supplemental margin protection
    programs and fails to pay the required administrative fees or
    premiums, may not receive basic or supplemental margin
    protection payments and remains legally obligated to pay such
    fees or premiums.

                 Subpart B--Dairy Market Stabilization Program

    Sec. 1431. Establishment of Dairy Market Stabilization Program

        Section 1431 establishes a dairy market stabilization
    program which is triggered when the actual dairy producer
    margin has been $6 or less per hundredweight of milk for the
    immediately preceding 2 months or $4 or less for the
    immediately preceding month. If the stabilization program is
    triggered, the Secretary will order reduced payments for the
    participating producer that exceeds the applicable percentage
    of the producer's stabilization base.

    Sec. 1432. Threshold for Implementation and Reduction in Dairy Producer
            Payments

        Section 1432 requires the Secretary to announce that the
    stabilization program is in effect and payment reductions are
    required.

    Sec. 1433. Producer Milk Marketing Information

        Section 1433 requires the Secretary to establish a process
    to collect the necessary information while the stabilization
    program is in effect.

    Sec. 1434. Calculation and Collection of Reduced Dairy Producer
            Payments

        Section 1434 requires handlers to reduce payments to
    participating dairy producers during any month in which payment
    reductions are in effect.

    Sec. 1435. Remitting Monies to the Secretary and Use of Monies

        Section 1435 requires handlers to remit to the Secretary an
    amount equal to reduced producer payments.

    Sec. 1436. Suspension of Reduced Payment Requirement

        Section 1436 lists the thresholds at which the Secretary
    will suspend the stabilization program.

    Sec. 1437. Enforcement

        Section 1437 makes it unlawful for any person subject to
    the stabilization program to not provide or to delay the
    reporting of accurate information and remittance of funds to
    the Secretary.

    Sec. 1438. Audit Requirements

        Section 1438 is the audit requirements for the
    stabilization program.

                    Subpart C--Commodity Credit Corporation

    Sec. 1451. Use of Commodity Credit Corporation

        Section 1451 requires the Secretary to use the funds and
    facilities of the CCC to carry out the program.

                       Subpart D--Initiation and Duration

    Sec. 1461. Rulemaking

        Section 1461 exempts the programs from the Administrative
    Procedures Act and the Paperwork Reduction Act.

    Sec. 1462. Duration

        Section 1462 terminates the margin protection program and
    the stabilization program on December 31, 2017.

      Part II--Repeal or Reauthorization of Other Dairy-Related Provisions

    Sec. 1481. Repeal of Dairy Product Price Support and Milk Income Loss
            Contract Programs

        Section 1481 repeals the dairy price support and milk
    income loss programs.

    Sec. 1482. Repeal of Dairy Export Incentive Program

        Section 1482 repeals the dairy export incentive program.

    Sec. 1483. Extension of Dairy Forward Pricing Program

        Section 1483 reauthorizes the dairy forward pricing program
    through 2020.

    Sec. 1484. Extension of Dairy Indemnity Program

        Section 1484 reauthorizes the dairy indemnity program
    through 2017.

    Sec. 1485. Extension of Dairy Promotion and Research Program

        Section 1485 reauthorizes the dairy promotion and research
    program through 2017.

    Sec. 1486. Repeal of Federal Milk Marketing Order Review Commission

        Section 1486 repeals the federal milk marketing order
    review commission.

                            Part III--Effective Date

    Sec. 1491. Effective Date

        Section 1491 states this subtitle is effective October 1,
    2012.

       SUBTITLE E--SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE PROGRAMS

    Sec. 1501. Supplemental Agricultural Disaster Assistance

        In general, section 1501 authorizes the continuation of
    certain Supplemental Agricultural Disaster Assistance programs,
    previously codified in subtitle B of the Federal Crop Insurance
    Act, as a standalone provision within the bill.
        Section 1501(a) is the definitions section. The section
    strikes definitions that are no longer relevant to the title.
        Section 1501(b) authorizes the Livestock Indemnity Payments
    (LIP) for fiscal years 2012 through 2017. The subsection
    authorizes the Secretary to use such sums as necessary of the
    funds of the Commodity Credit Corporation to be used to make
    livestock indemnity payments to eligible producers for
    livestock losses in excess of normal mortality due to adverse
    weather or attacks by federally reintroduced animals, such as
    wolves or avian predators. It maintains the 75% of the market
    value rate for indemnity.
        Section 1501(c) authorizes the Livestock Forage Disaster
    Program (ELFP) for fiscal years 2012 through 2017. The
    subsection authorizes the Secretary to use such sums as
    necessary from the Commodity Credit Corporation to provide
    compensation to eligible livestock producers for livestock
    losses due to grazing losses caused by drought or fire.
    Coverage includes native or improved pastureland with permanent
    vegetative cover, or land that has crops that are specifically
    planted for the purpose of grazing livestock. However, an
    eligible livestock producer may not receive assistance for land
    used for haying or grazing under the Conservation Reserve
    Program. The language maintains the payment rate for losses
    caused by drought for 1 month at equal to the lesser of 60
    percent of the lesser of the monthly feed cost for all covered
    livestock owned or leased by the eligible producer, or the
    monthly feed cost calculated by using the normal carrying
    capacity of the eligible grazing land of the eligible livestock
    producer. Fire losses continue to be limited to fires that have
    occurred on federally managed land. The section maintains the
    payment rate for losses due to fire at equal to 50 percent of
    the monthly feed costs for the total number of livestock
    covered by the Federal lease of the eligible livestock
    producer. The language eliminates the minimum risk management
    purchase requirement.
        Section 1501(d) authorizes the Emergency Assistance for
    Livestock, Honey Bees, and Farm-Raised Fish (ELAP) for fiscal
    years 2012 through 2017. The subsection authorizes the
    Secretary to use $20,000,000 of the funds of the Commodity
    Credit Corporation to provide emergency relief for producers to
    aid in the reduction of loss due to disease and adverse
    weather. The language clarifies that that loss due to disease
    includes losses from cattle tick fever. The subsection
    maintains the provision that the funds shall remain available
    until expended.
        Section 1501(e) authorizes the Tree Assistance Program
    (TAP) for fiscal years 2012 through 2017. The Secretary is
    authorized to use such sums as are necessary of the funds of
    the Commodity Credit Corporation to provide assistance to
    orchardists and nursery growers for losses of trees due to
    natural disaster. The language provides a reimbursement rate of
    65% of the cost of replanting trees for losses in excess of 15%
    mortality. The language increases the payment cap under TAP to
    $125,000 per crop year. It further maintains the 500 acre limit
    on total number of acres planted in trees or tree seedlings for
    which a person or legal entity shall be entitled to receive
    payments under this subsection.
        Section 1501(f) includes the payment limitation for the
    entire section. The language increases the payment cap for
    total amount of disaster assistance payments, excluding TAP
    payments, to $125,000 received, either directly or indirectly,
    by a person or legal entity. The language eliminated the AGI
    limitation for payments under this section. It further
    maintains the application of direct attribution provisions to
    this section.

                           SUBTITLE F--ADMINISTRATION

    Sec. 1601. Administration Generally

        Section 1601 allows the Secretary to use the funds and
    facilities of the Commodity Credit Corporation to carry out
    this title. It also provides for an expedited implementation of
    this title.
        The Secretary's authority to adjust expenditures under this
    title to ensure the United States remains in compliance with
    our international trade agreements is continued in the same
    manner as current law.

    Sec. 1602. Suspension of Permanent Price Support Authority

        Section 1602 continues the suspension of permanent price
    authority in the Agriculture Marketing Adjustment Act of 1938
    and the Agricultural Act of 1949.

    Sec. 1603. Payment Limitations

        Section 1603 limits the total amount of payments a person
    or a legal entity can receive under subtitle A to $125,000.

    Sec. 1604. Adjusted Gross Income Limitation

        Section 1604 replaces the two income limitation test (farm
    and nonfarm income) with a single $950,000 adjusted gross
    income limitation for commodity and conservation programs.

    Sec. 1605. Geographically Disadvantaged Farmers and Ranchers

        Section 1605 continues the geographically disadvantaged
    farmers and ranchers program authorization for reimbursement
    payments through 2017 in the same manner as current law.

    Sec. 1606. Personal Liability of Producers for Deficiencies

        Section 1606 extends the personal liability of producers
    for deficiencies through 2017 in the same manner as current
    law.

    Sec. 1607. Prevention of Deceased Individuals Receiving Payments Under
            Farm Commodity Programs

        Section 1607 continues the requirement that the Secretary
    prevent deceased individuals from receiving farm commodity
    program payments by reconciling the social security numbers of
    all individuals who received payments under this title with the
    Commissioner of Social Security in the same manner as current
    law.

    Sec. 1608. Technical Corrections

        Section 1608 includes technical corrections.

    Sec. 1609. Assignment of Payments

        Section 1609 continues the authority of a producer who
    receives a payment under this title to assign the payment to
    someone else after proper notice to the secretary in the same
    manner as current law.

    Sec. 1610. Tracking of Benefits

        Section 1610 reauthorizes the Secretary to track the
    benefits provided to individuals getting payments under titles
    I and II in the same manner as current law.

    Sec. 1611. Signature Authority

        Section 1611 continues the signature authority of a
    producer in the same manner as current law.

    Sec. 1612. Implementation

        Section 1612 requires the Secretary to maintain records on
    base acres and the records for the separate base acres for long
    grain and medium grain rice through 2017. The Secretary shall
    make available to the Farm Service Agency to carry out this
    title $100,000,000.

                             Title II--Conservation

                    SUBTITLE A--CONSERVATION RESERVE PROGRAM

    Sec. 2001. Extension and Enrollment Requirements of Conservation
            Reserve Program

        Section 2001(a) extends the Conservation Reserve Program
    (CRP) through fiscal year 2017.
        Section 2001(b) amends the definition of eligible land by
    updating the date for cropping history under highly erodible
    lands; by removing marginal pasture land converted to wetland
    or established as wildlife habitat prior to 1999; by adding
    grasslands as eligible lands; by including filterstrips and
    riparian buffers devoted to trees, shrubs, and grasses as
    cropland that would otherwise be ineligible; and by amending
    the requirement for buffers and filterstrips associated with
    the remainder of a field enrolled in CRP.
        Section 2001(c) amends the requirement for certain lands to
    be considered planted to an agricultural commodity for the
    purposes of determining eligibility to land that was devoted to
    a conserving use during the crop year; and eliminates the
    inclusion of land enrolled in the water bank program.
        Section 2001(d) reduces the acreage cap for fiscal years
    2013-2017:
              FY2012--32,000,000 acres
              FY2013--29,000,000 acres
              FY2014--26,000,000 acres
              FY2015--26,000,000 acres
              FY2016--25,500,000 acres
              FY2017--25,000,000 acres
        It further adds a provision for enrollment of 2,000,000
    acres of grasslands and authorizes the Secretary to give
    priority to expiring CRP contracts to be enrolled under the
    grasslands cap.
        Section 2001(e) eliminates the five-year extension option
    for hardwood trees as well as the additional one-year extension
    for contracts which expired during the 2002 calendar year.
    Owners and operators of land with hardwoods, windbreaks, or
    wildlife corridors may specify the duration of the contract
    within the 10-15 year limitation.
        Section 2001(f) eliminates the specified conservation
    priority area watersheds and leaves the ability to designate a
    priority area--including non-watershed areas--to the discretion
    of the Secretary. It further eliminates the ability for a State
    agency to apply for withdrawal from a designation.

    Sec. 2002. Farmable Wetland Program

        Section 2002 extends the Farmable Wetlands Program through
    fiscal year 2017, decreases the program cap from 1,000,000 to
    750,000 acres and makes several changes that are clarifying in
    nature. The program has been further amended so it is no longer
    a pilot program.

    Sec. 2003. Duties of Owners and Operators

        Section 2003(a) amends the limitation on harvesting,
    grazing and commercial use of forage by moving it from the
    section establishing the duties of owners and operators to the
    section enumerating the duties of the secretary.
        Section 2003(b) amends the conservation plan requirements
    by eliminating the option for the plan to provide for permanent
    retirement of existing base history.
        Section 2003(c) eliminates the umbrella rental rate
    reduction for certain authorized uses of the land. Similar
    rental rate language appears in the section enumerating the
    duties of the Secretary.

    Sec. 2004. Duties of the Secretary

        Section 2004 requires the Secretary to allow for certain
    harvesting, grazing and commercial use of forage in exchange
    for a reduction in the rental rate at not less than 25 percent,
    except for in the case of drought or other emergency created by
    natural disaster, where the activity may occur without any
    reduction in the rental rate. The section provides for the
    incidental use of buffers adjacent to agricultural lands. The
    section adds a new subsection (c) that requires the Secretary
    to permit certain haying and grazing practices on grasslands
    specifically. It adds provisions for individuals with expiring
    contracts to initiate conservation and land improvement
    practices in the final year of the contract with a commensurate
    reduction in rental value. Re-enrollment of these lands is
    prohibited for at least five years.

    Sec. 2005. Payments

        Section 2005(a) is a technical conforming amendment in
    response to the elimination of section 1235A.
        Section 2005(b) adds ``other eligible land'' to the annual
    rental payment language. Subsection (b) further adds the
    determination for payments to owners or operators of grasslands
    at 75 percent of the grazing value of the land under contract.
        Section 2005(c) amends the payment schedule section to
    eliminate in-kind commodity payments through Commodity Credit
    Corporation stocks.
        Section 2005(d) is a technical conforming amendment in
    response to the elimination of in-kind commodity payments.

    Sec. 2006. Contract Requirements

        Section 2006(a) allows for a one-time early termination
    option for an owner or operator if the contract has been in
    effect for five years. The section further specifies what
    environmentally sensitive land is exempted from the early
    termination.
        Section 2006(b) makes adjustments to the transition options
    language regarding the transfer of land from a retired farmer
    or rancher to a beginning farmer or rancher.
        Section 2006(c) allows for an owner or operator to enroll
    into the Conservation Stewardship Program in the last year of
    the owner or operator conservation reserve contract.

    Sec. 2007. Conversion of Land Subject to Contract to Other Conserving
            Uses

        Section 2007 repeals Section 1235A of the Food Security Act
    of 1985, Conservation of Land Subject to Contract to other
    Conserving Uses which is no longer applicable for contracts in
    place prior to November 28, 1990.

                  SUBTITLE B--CONSERVATION STEWARDSHIP PROGRAM

    Sec. 2101. Conservation Stewardship Program

        Section 2101 revises the Conservation Stewardship Program.
        Definitions: The section includes a definition of
    ``agricultural operation'', strikes the definition of
    ``conservation measurement tool'' to conform with other
    amendments, redefines ``priority resource concern'', and it
    revises the definition of ``eligible land''.
        Establishment and purposes: The section authorizes the
    program through 2017. It limits the excluded land by allowing
    for CRP land to be enrolled in the final year of the contract.
    The section increases emphasis on new conservation. It also
    eliminates the requirement that not more than 10 percent of the
    acres enrolled be non-industrial private forest land. The
    section allows enrollment of lands that are under agricultural
    land easements option of the ACE Program.
        Stewardship contracting: The section requires participants,
    at the time of the contract offer, to be meeting the
    stewardship threshold of at least two priority resource
    concerns with at least one additional priority resource concern
    by the end of the contract. It establishes a priority
    consideration for land with expiring CRP contracts. The section
    also eliminates the conservation measurement tool. It adds the
    requirement for the producer, in order to renew a contract for
    an additional year, to meet the stewardship threshold of at
    least two additional priority resource concerns or exceed the
    threshold of at least two existing priority resource concerns
    by then end of the contract period. It eliminates the on-farm
    research and demonstration, or pilot testing provisions.
        Duties of the Secretary: The section replaces the
    conservation measurement tool with a science-based stewardship
    threshold. It includes an acreage enrollment limitation of
    9,000,000 acres for each fiscal year and a national average
    rate of $18 per acre, which shall include costs of assistance.

              SUBTITLE C--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

    Sec. 2201. Purposes

        Section 2201 adds ``developing and improving wildlife'' to
    the purposes section.

    Sec. 2202. Establishment and Administration

        Section 2202 extends EQIP though fiscal year 2017.
        Section 2223 amends the term of an EQIP contract to a
    period not to exceed 10 years, eliminating the minimum
    requirement. The increased payments to certain producers
    section is amended to include veteran farmers or ranchers. The
    section increases the amount allowed for an advanced payment to
    50 percent and includes a new requirement that funds provided
    in advance but not expended during the required 90-day period
    be returned. It maintains the 60 percent allocation for
    livestock production and creates a new 5 percent allocation for
    practices benefiting wildlife habitat. The section adds a new
    subsection in order to include wildlife habitat restoration,
    improvement, and development activities under EQIP.

    Sec. 2203. Evaluation of Applications

        Section 2203 amends the evaluation of application process
    section for the purpose of a conforming amendment.

    Sec. 2204. Duties of Producers

        Section 2204 is a technical amendment to the duties of
    producers section.

    Sec. 2205. Limitation on Payments

        Section 2205 establishes the payment limitation at $450,000
    and eliminates the waiver authority.

    Sec. 2206. Conservation Innovation Grants and Payments

        Section 2206 adds a reporting requirement to CIG projects.

             SUBTITLE D--AGRICULTURAL CONSERVATION EASEMENT PROGRAM

    Sec. 2301. Agricultural Conservation Easement Program

        Section 2301 establishes a new Agricultural Conservation
    Easement (ACE) Program consolidating the Wetland Reserve
    Program, the Grassland Reserve Program, and the Farmland
    Protection Program. The purposes of the program include
    restoring, protecting, and enhancing wetlands; protecting the
    agricultural use and conservation values on agricultural lands;
    and protecting grazing uses and related conservation values on
    agricultural lands. The program has two distinct branches under
    the umbrella easement program--agricultural land easements and
    wetland easements.
        The program includes definitions for ``agricultural land
    easement'', ``wetland easement'', ``eligible entity'', and
    ``eligible land''.
        Under the Agricultural Land Easements, the Secretary
    facilitates and provides funds to eligible entities to purchase
    conservation easements in agricultural land and grasslands. The
    easements shall be permanent easements, or easements for the
    maximum duration allowed under applicable State law. The scope
    of the federal share shall not exceed 50 percent of the fair
    market value of the land using the USPAP, an area-wide market
    analysis survey, or another industry approved method. There is
    an exemption for grasslands of special environmental
    significance, by which the Secretary may provide up to 75
    percent of the fair market value.
        The Agricultural Land Easement Program establishes a
    process under which an eligible entity may be certified by the
    Secretary, though non-certified entities may still participate.
    Agreements between the Secretary and an eligible entity shall
    be at least three, but no more than five years unless the
    eligible entity is certified, in which case the term shall be a
    minimum of five years.
        Under the Wetlands Easements, the Secretary enrolls
    wetlands through the use of 30-year easements; permanent
    easements; easements for the maximum duration allowed under
    State law; or for Indian tribes only, 30-year contracts. The
    Secretary shall not acquire easements on land that has been
    established to trees in CRP, or farmed wetlands or converted
    wetlands where the conversion was not commenced prior to
    December 23, 1985. The program establishes a priority based on
    the value of the wetland easement for protecting and enhancing
    habitat for migratory birds and other wildlife.
        Compensation for permanent easements shall be in an amount
    necessary to encourage enrollment in the program based on the
    lowest of the fair market value, the amount corresponding to a
    geographical cap, or the offer made by the landowner. In the
    case of a 30-year wetland easement, compensation shall be not
    less than 50 percent, but not more than 75 percent, of the
    compensation that would be paid for a permanent wetland
    easement.
        The Wetlands Easement Program further authorizes the
    Secretary to provide financial assistance to owners to carry
    out the establishment of conservation measures and practices to
    protect wetland functions and values including maintenance. In
    the case of restoration on permanent wetland easements, the
    Secretary shall pay at least 70 percent, but not more than 100
    percent, of the costs. In the case of a 30-year wetland
    easement, the Secretary shall pay at least 50 percent, but not
    more than 75 percent of the costs. The entire ACE Program
    includes a priority for certain lands currently enrolled in CRP
    with a contract set to expire within 1 year.
        Of the funds made available under the program, at least 40
    percent are reserved for agricultural land easements for fiscal
    years 2013 through 2016 and at least 50 percent for
    agricultural land easements in fiscal year 2017.

             SUBTITLE E--REGIONAL CONSERVATION PARTNERSHIP PROGRAM

    Sec. 2401. Regional Conservation Partnership Program

        Section 2401 establishes a Regional Conservation
    Partnership Program by combining program purposes of the
    Agricultural Water Enhancement Program (AWEP), the Chesapeake
    Bay Watershed Program, the Cooperative Conservation Partnership
    Initiatives Program (CCPI), and the Great Lakes Basin Program.
    The new Regional Program works through the existing programs--
    Agricultural Conservation Easement Program (ACEP),
    Environmental Quality Incentives Program (EQIP), and the
    Conservation Stewardship Program (CSP)--in order to further
    conservation, restoration and sustainable use of soil, water,
    air, wildlife and related natural resources on a regional or
    watershed scale while encouraging eligible partners to
    cooperate with producers in meeting or avoiding the need for
    natural resource regulatory requirements related to
    agricultural production and implement projects that will affect
    operations on a local, regional, State, or multi-State basis.
        The program includes definitions for ``covered programs'',
    ``eligible activities'', ``eligible land'' and ``eligible
    partner''.
        Under the program, the Secretary may enter into short term
    contracts with eligible partners, who are selected through a
    competitive process. A partnership agreement may not exceed
    five years, but may be extended one time for up to 12 months if
    necessary to meet the objectives of the program. Through the
    contracts, partners will assist producers with installing and
    maintaining conservation activities through existing programs.
    An eligible partner shall provide a significant portion of the
    overall costs of the scope of the project. The program includes
    several priorities for applications, including the ability to
    assist producers in meeting or avoiding regulatory
    requirements.
        The Secretary may also enter into contracts directly with
    producers who are in an established project area. The Secretary
    shall make payments directly to the producer in an amount
    determined by the Secretary to be necessary to achieve the
    purposes of the program. The language includes a waiver from
    the adjusted gross income requirement.
        The program includes a section for critical conservation
    areas under which the Secretary can administer the program as
    well as very limited flood prevention and erosion control
    projects. When implementing projects under the critical
    conservation areas, the Secretary may use additional
    authorities under the Watershed Protection and Flood Prevention
    Act.
        The funding for the program consists of mandatory funds out
    of the Commodity Credit Corporation of $100,000,000 for each
    fiscal year, as well as a 6 percent reservation of funds out of
    the conservation programs mentioned above. Out of all of the
    funds, 25 percent is allocated to the State conservationist, 50
    percent is allocated to the Secretary on a national competitive
    basis, and 25 percent is allocated for the critical
    conservation areas.

                    SUBTITLE F--OTHER CONSERVATION PROGRAMS

    Sec. 2501. Conservation of Private Grazing Land

        Section 2501 extends Conservation of Private Grazing Land
    through fiscal year 2017.

    Sec. 2502. Grassroots Source Water Protection Program

        Section 2502 extends the Grassroots Water Protection
    Program. It further makes available $5,000,000 in mandatory
    money to remain available until expended.

    Sec. 2503. Voluntary Public Access and Habitat Incentive Program

        Section 2503 extends the Voluntary Public Access program
    through fiscal year 2017, reduces its mandatory funding level
    to $30,000,000 and requires a report on program effectiveness.

    Sec. 2504. Agriculture Conservation Experienced Services Program

        Section 2504 provides funding for ACES through the funds
    made available to carry out each program under the title,
    excluding CRP.

    Sec. 2505. Small Watershed Rehabilitation Program

        Section 2505 reauthorizes the appropriations of the Small
    Watershed Rehabilitation Program at current appropriated levels
    through fiscal year 2017 and further authorizes $250,000,000 in
    mandatory money for the Small Watershed Rehabilitation Program
    for fiscal year 2013, to remain available until expended.

    Sec. 2506. Agricultural Management Assistance Program

        Section 2506 amends the Agricultural Management Assistance
    Program, within the Federal Crop Insurance Act, by eliminating
    the practice of planting trees for windbreaks or for improving
    water quality and mitigation of risk through resource
    conservation practices as uses for financial assistance under
    the program. The section further eliminates the exception of
    $15,000,000 in mandatory funding through each fiscal year while
    maintaining the base $10,000,000 in funding. The section amends
    the percentages for the distribution of funds decreasing the
    funds through Natural Resources Conservation Services to 30
    percent, maintaining the funds for organic certification cost
    share through Agricultural Marketing Service at 10 percent, and
    increasing the funds through the Risk Management Agency to 60
    percent.

                     SUBTITLE G--FUNDING AND ADMINISTRATION

    Sec. 2601. Funding

        Section 2601(a) extends and amends the funding section for
    conservation programs provided by the Commodity Credit
    Corporation funds.
        Funding levels:
        CRP TIP--$25,000,000 set aside in the period of fiscal
    years 2013-2017.
        ACE--
              $450,000,000 in FY13;
              $475,000,000 in FY14;
               $500,000,000 in FY15;
               $525,000,000 in FY16; and
               $266,000,000 in FY17.
        EQIP--$1,750,000,000 in each of fiscal years 2013-2017.
        Section 2601(b) makes the funding covered by this section
    no year funds.

    Sec. 2602. Technical Assistance

        Section 2602 amends the funding section of the 1985 Act to
    include an amended technical assistance subsection and also
    requires a report to Congress on technical assistance.

    Sec. 2603. Regional Equity

        Section 2603 amends Regional Equity by striking the
    $15,000,000 target for regional equity allocations and replaces
    it with 0.6 percent of the funds made available for
    conservation programs in order to allow allocations to
    synchronize with annual program appropriations.

    Sec. 2604. Reservation of Funds to Provide Assistance to Certain
            Farmers or Ranchers for Conservation Access

        Section 2604 extends the 5 percent reservation of funds for
    both socially disadvantaged and beginning farmers and ranchers
    through fiscal year 2017. The language adds a priority within
    the reservation of funds for producers who are veterans.

    Sec. 2605. Annual Report on Program Enrollments and Assistance

        Section 2605 makes technical amendments to the annual
    reporting requirement on program enrollments and assistance.

    Sec. 2606. Administrative Requirements Applicable to All Conservation
            Programs

        Section 2606 adds a new subsection to the administrative
    requirements for conservation programs that requires the
    Secretary, to the maximum extent practicable, to seek to reduce
    administrative burdens and costs by streamlining and taking
    advantage of new technologies to enhance efficiency and
    effectiveness. The section clarifies that any payment received
    under the title is in addition to, and does not affect, the
    total amount of payments an owner or operator is otherwise
    eligible to receive.

    Sec. 2607. Standards for State Technical Committees

        Section 2607 makes a technical change to the standards for
    state technical committees.

    Sec. 2608. Rulemaking Authority

        Section 2608 requires the Secretary to promulgate
    regulations, gives the Secretary rulemaking authority in
    regards to conservation programs, and provides for the
    operation of the programs under interim rules.

     SUBTITLE H--REPEAL OF SUPERSEDED PROGRAM AUTHORITIES AND TRANSITIONAL
                                   PROVISIONS

    Sec. 2701. Comprehensive Conservation Enhancement Program

        Section 2701 repeals the Comprehensive Conservation
    Enhancement Program.

    Sec. 2702. Emergency Forestry Conservation Reserve Program

        Section 2702 repeals the Emergency Forestry Conservation
    Reserve Program, but provides for the continuation of existing
    contracts until the contract's expiration.

    Sec. 2703. Wetlands Reserve Program

        Section 2703 repeals the Wetlands Reserve Program, but
    provides for the continuation of existing contracts until the
    contract's expiration.

    Sec. 2704. Farmland Protection Program and Farm Viability Program

        Section 2704 repeals the Farmland Protection Program, but
    provides for the continuation of existing contracts until the
    contract's expiration.

    Sec. 2705. Grasslands Reserve Program

        Section 2705 repeals the Grassland Reserve Program, but
    provides for the continuation of existing contracts until the
    contract's expiration.

    Sec. 2706. Agricultural Water Enhancement Program

        Section 2706 repeals the Agricultural Water Enhancement
    Program, but provides for the continuation of existing
    contracts until the contract's expiration.

    Sec. 2707. Wildlife Habitat Incentive Program

        Section 2707 repeals the Wildlife Habitat Incentive
    Program, but provides for the continuation of existing
    contracts until the contract's expiration.

    Sec. 2708. Great Lakes Basin Program

        Section 2708 repeals the Great Lakes Basin Program.

    Sec. 2709. Chesapeake Bay Watershed Program

        Section 2709 repeals the Chesapeake Bay Watershed Program,
    but provides for the continuation of existing contracts until
    the contract's expiration.

    Sec. 2710. Cooperative Conservation Partnership Initiative

        Section 2710 repeals the Cooperative Conservation
    Partnership Initiative, but provides for the continuation of
    existing contracts until the contract's expiration.

    Sec. 2711. Environmental Easement Program

        Section 2711 repeals the Environmental Easement Program.

    Sec. 2712. Technical Amendments

        Section 2712 includes technical amendments.

                                Title III--Trade

                         SUBTITLE A--FOOD FOR PEACE ACT

    Sec. 3001. General Authority

        Section 3001 amends section 201 of the Food for Peace Act
    by updating the general authorities with language focused on
    building resilience to reduce the future need for emergency
    food aid.

    Sec. 3002. Support for Organizations through which Assistance is
            Provided

        Section 3002 amends section 202(e)(1) of the Food for Peace
    Act by reducing the maximum allowable cash assistance available
    for administrative costs in non-emergency programs from 13% to
    11% of the total funds made available for the program.

    Sec. 3003. Food Aid Quality

        Section 3003 amends section 202(h) of the Food for Peace
    Act by requiring the Administrator to consult with the
    Secretary in performing the requirements of this subsection
    related to food aid quality; by establishing a mechanism for
    USDA and USAID to evaluate food aid commodities and implement
    appropriate changes; by instructing the agencies to update
    program guidance on the use of new commodities; and by limiting
    the available funding for these purposes to $1 million.

    Sec. 3004. Minimum Levels of Assistance

        Section 3004 amends section 204(a) of the Food for Peace
    act by reauthorizing the minimum levels of commodities
    available for emergency and non-emergency assistance under Food
    for Peace.

    Sec. 3005. Food Aid Consultative Group

        Section 3005 amends Section 205 of the Food for Peace Act
    by reauthorizing the Food Aid Consultative Group (the
    ``Group'') and adding representatives from the processing
    sector to the Group. The provision further requires the
    Administrator to consult with the Group on the implementation
    of food aid quality provisions and requires the Administrator
    to provide the Group at least 45 days notice before a proposed
    regulation handbook or guideline, or revision thereof, becomes
    final.

    Sec. 3006. Oversight, Monitoring, and Evaluation

        Section 3006 amends section 207 of the Food for Peace Act
    by requiring that all regulations and revisions to agency
    guidance necessary for implementation of the Federal
    Agricultural Reform and Risk Management Act be issued within
    270 days of enactment. The provision removes authority for
    purchasing new computer systems, removes obsolete reporting
    requirements, and provides $10 million per year for monitoring
    and evaluation. Further, the provision requires a report on the
    extent of monitoring and evaluation required by eligible
    organizations participating in Food for Peace programs.

    Sec. 3007. Assistance for Stockpiling and Rapid Transportation,
            Delivery, and Distribution of Shelf-stable Pre-packaged Foods

        Section 3007 amends section 208 of the Food for Peace Act
    by reauthorizing assistance for stockpiling and rapid
    transportation, delivery, and distribution of shelf-stable
    prepackaged foods at $8 million per year.

    Sec. 3008. General Provisions

        Section 3008 amends section 403 of the Food for Peace Act
    by requiring USDA and USAID to seek information on the
    potential benefits of monetization to local economies. The
    provision further clarifies that implementing partners should
    sell monetized commodities at fair market value. The Secretary
    and the Administrator are also instructed to coordinate
    assessments which guide the use of monetization to ensure
    consistency across programs. The provision requires USAID to
    issue a report detailing the use of funds made available for
    implementing partners, including funds for administrative and
    indirect costs.

    Sec. 3009. Prepositioning of Agricultural Commodities

        Section 3009 amends section 407(c) of the Food for Peace
    Act by increasing funding for prepositioning of agricultural
    commodities from $10 million to $15 million per year. The
    section also allows the Administrator discretion to establish
    additional prepositioning sites based on the results of
    assessments of need, feasibility, and cost.

    Sec. 3010. Annual Report Regarding Food Aid Programs and Activities

        Section 3010 amends section 407(f) of the Food for Peace
    Act by requiring the annual report regarding food aid programs
    and activities to include information on the actual
    beneficiaries of the programs and by specifying the report
    include the McGovern-Dole International Food for Education and
    Child Nutrition Program.

    Sec. 3011. Deadline for Agreements To Finance Sales or To Provide Other
            Assistance

        Section 3011 amends section 408 of the Food for Peace Act
    by extending the expiration of Food for Peace authorities
    through 2017.

    Sec. 3012. Authorization of Appropriations

        Section 3012 amends section 412 of the Food for Peace Act
    by reducing the authorization for appropriations from $2.5 to
    $2 billion per year and sets the minimum level of development
    programming at $400 million per year.

    Sec. 3013. Micronutrient Fortification Programs

        Section 3013 amends section 415 of the Food for Peace Act
    by striking a reference to an obsolete report and reauthorizing
    the micronutrient fortification program through 2017.

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

        Section 3014 amends section 501 of the Food for Peace Act
    by reauthorizing the Farmer-to-Farmer program and increasing
    the minimum level of funding from $10 million to $15 million
    per year.

                   SUBTITLE B--AGRICULTURAL TRADE ACT OF 1978

    Sec. 3101. Funding for Export Credit Guarantee Program

        Section 3101 amends section 211 of the Agricultural Trade
    Act of 1978 by reauthorizing funding for the Export Credit
    Guarantee Program through 2017.

    Sec. 3102. Funding for Market Access Program

        Section 3102 amends section 211 of the Agricultural Trade
    Act of 1978 by reauthorizing funding for the Market Access
    Program through 2017.

    Sec. 3103. Foreign Market Development Cooperator Program

        Section 3103 amends section 703 of the Agricultural Trade
    Act of 1978 to reauthorize funding for the Foreign Market
    Development Coordinator Program through 2017.

                   SUBTITLE C--OTHER AGRICULTURAL TRADE LAWS

    Sec. 3201. Food for Progress Act of 1985

        Section 3201 amends the Food for Progress Act of 1985 by
    reauthorizing the program through 2017 and repeals a completed
    project in Malawi.

    Sec. 3202. Bill Emerson Humanitarian Trust

        Section 3202 amends the Bill Emerson Humanitarian Trust Act
    to reauthorize the Trust through 2017.

    Sec. 3203. Promotion of Agricultural Exports to Emerging Markets

        Section 3203 amends section 1542 of the Food, Agriculture,
    Conservation, and Trade Act of 1990 by reauthorizing the
    promotion of agricultural exports to emerging markets through
    2017.

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

        Section 3204 amends section 3107 of the Farm Security and
    Rural Investment Act of 2002 by reauthorizing the McGovern-Dole
    International Food for Education and Child Nutrition Program
    through 2017.

    Sec. 3205. Technical Assistance for Specialty Crops

        Section 3205 amends section 3205 of the Farm Security and
    Rural Investment Act of 2002 to reauthorize the export
    assistance program known as Technical Assistance for Specialty
    Crops through 2017 at $9 million per year and clarifies that
    technical barriers to trade can be addressed through the
    program.

    Sec. 3206. Global Crop Diversity Trust

        Section 3206 amends section 3202(c) of the Food,
    Conservation, and Energy Act of 2008 by reauthorizing the U.S.
    Agency for International Development to make a contribution of
    up to $50 million over 5 years to the Global Crop Diversity
    Trust.

    Sec. 3207 Under Secretary of Agriculture for Foreign Agricultural
            Services

        Section 3207 amends Subtitle B of the Department of
    Agriculture Reorganization Act of 1994 by adding a new section
    allowing USDA to establish the position of Under Secretary for
    Foreign Agricultural Services, which would be appointed by the
    President with the advice and consent of the Senate.

                              Title IV--Nutrition

             SUBTITLE A--SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

    Sec. 4001. Retailers

        Subsection (a) amends section 3 of the Food and Nutrition
    Act of 2008 (the ``Act'') by requiring retailers to provide
    perishable items in at least 3 of the staple food categories.
        Subsection (b) amends section 7 of the Act by requiring
    that retailers will be responsible for purchasing and paying
    for Supplemental Nutrition Assistance Program (``SNAP'') point-
    of-sale equipment and supplies. The subsection terminates the
    use of manual vouchers except in cases of disasters or other
    similar situations. The subsection requires parties providing
    electronic benefit transfer services to maintain unique
    terminal identification numbers throughout the SNAP routing
    system.
        Subsection (c) amends section 7 of the Act by removing
    outdated language related to the use of coupons.
        Subsection (d) amends section 9 of the Act by making
    retailers selling more than 45% of prohibited SNAP items, such
    as alcohol and tobacco, ineligible to participate in the
    program.

    Sec. 4002. Enhancing Services to Elderly and Disabled Supplement
            Nutrition Assistance Program Recipients

        Section 4002 amends section 3 of the Act by adding
    governmental or nonprofit food purchasing delivery services to
    the list of eligible retailers if they serve elderly or
    disabled individuals who are otherwise unable to shop for their
    own food.

    Sec. 4003. Food Distribution Program on Indian Reservations

        Section 4003 amends section 4 of the Act by reauthorizing
    the Food Distribution Program on Indian Reservations.

    Sec. 4004. Updating Program Eligibility

        Section 4004 amends section 5 of the Act by restricting
    categorical eligibility for SNAP to only those households
    receiving cash assistance through other low-income assistance
    programs.

    Sec. 4005. Exclusion of Medical Marijuana from Excess Medical Expense
            Deduction

        Section 4005 amends section 5 of the Act by prohibiting
    medical marijuana from being treated as a medical expense for
    purposes of income deductions.

    Sec. 4006. Standard Utility Allowances Based on the Receipt of Energy
            Assistance Payments

        Section 4006 amends section 5 of the Act by requiring a
    household to receive a Low Income Home Energy Assistance
    Program (LIHEAP) payment of $10 or more in order to receive the
    SNAP Standard Utility Allowance (SUA) deduction when
    calculating SNAP benefits.

    Sec. 4007. Eligibility Disqualifications

        Section 4007 amends section (6) of the Act by requiring
    that State SNAP Employment and Training programs be limited to
    assisting only those college students enrolled in specific
    career and technical education courses or basic adult
    education, remedial, and literacy courses.

    Sec. 4008. Ending Supplemental Nutrition Assistance Program Benefits
            for Lottery or Gambling Winners

        Section 4008 amends section 6 of the Act by making any
    household in which a member receives substantial lottery or
    gambling winnings ineligible for SNAP benefits.

    Sec. 4009. Improving Security of Food Assistance

        Section 4009 amends section 7 of the Act by allowing States
    to request information from households that repeatedly lose
    their electronic benefit transfer (EBT) card in order to
    investigate potential fraud and trafficking violations. The
    section provides protection for those who are not intentionally
    committing fraud.

    Sec. 4010. Demonstration Projects on Acceptance of Benefits of Mobile
            Transactions

        Section 4010 amends section 7 of the Act by requiring the
    Secretary of Agriculture (the ``Secretary'') to implement a
    pilot program to test the feasibility of allowing retailers to
    accept SNAP benefits through mobile transactions.

    Sec. 4011. Use of Benefits for Purchase of Community-Supported
            Agriculture Shares

        Section 4011 amends section 10 of the Act by allowing SNAP
    benefits to be used for the purchase of community-supported
    agriculture shares.

    Sec. 4012. Restaurant Meals Program

        Section 4012 amends section 11 of the Act by requiring
    greater oversight of States choosing to operate a Restaurant
    Meals Program that allows only homeless, elderly and disabled
    SNAP populations to redeem their benefits at approved
    restaurants. The section requires USDA to approve the State's
    implementation plan and ensure that a documented need exists to
    serve the target populations in specific geographic areas.

    Sec. 4013. State Verification Option

        Section 4013 amends section 11 of the Act by requiring
    States to use an immigration status verification system to
    verify an applicant's immigration status.

    Sec. 4014. Repeal of Grant Program

        Section 4014 repeals section 11 of the Act to eliminate a
    program that allows grant funding to be used for advertising to
    promote SNAP participation.

    Sec. 4015. Data Exchange Standardization for Improved Interoperability

        Section 4015 amends section 11 of the Act by establishing
    requirements consistent with other means tested programs for
    the electronic content and format of data used in the
    administration of SNAP.

    Sec. 4016. Repeal of Bonus Programs

        Section 4016 repeals section 16 of the Act to eliminate the
    performance bonuses provided to States for effectively
    administering SNAP.

    Sec. 4017. Funding of Employment and Training Programs

        Section 4017 amends section 16 of the Act by reducing the
    allocation to State agencies to carry out employment and
    training programs from $90 million to $79 million per year.

    Sec. 4018. Monitoring Employment and Training Programs

        Section 4018 amends section 16 of the Act by requiring that
    the Secretary implement monitoring and performance measures for
    State employment and training programs. The section requires
    that the Secretary, in consultation with the Secretary of
    Labor, develop reporting measures for participants in
    employment and training programs. The section requires that
    States report annually on such measures. The section further
    provides that if a State agency's performance is inadequate,
    the Secretary may require the State agency to modify its
    employment and training plan.

    Sec. 4019. Cooperation with Program Research and Evaluation

        Section 4019 amends section 17 of the Act by requiring
    entities that participate in SNAP programs to cooperate with
    the Department of Agriculture and its agents in conducting
    evaluations and studies authorized under the Act.

    Sec. 4020. Authorization of Appropriations

        Section 4020 amends section 18 of the Act by extending the
    authorization for appropriations to carry out the Act through
    fiscal year 2017.

    Sec. 4021. Limitation on Use of Block Grant to Puerto Rico

        Section 4021 amends section 19 of the Act by ensuring that
    no funds made available to the Commonwealth of Puerto Rico may
    be used to provide nutrition assistance in the form of cash.

    Sec. 4022. Assistance for Community Food Projects

        Section 4022 amends section 25 of the Act by providing an
    additional $10 million per fiscal year for Community Food
    Projects, $5 million per fiscal year which shall be used to
    provide incentives for the consumption of fruits and vegetables
    by low-income individuals.

    Sec. 4023. Emergency Food Assistance

        Section 4023 amends section 27 of the Act by providing an
    additional $25 million per fiscal year for Emergency Food
    Assistance. The section also reauthorizes Emergency Food
    Program Infrastructure Grants through fiscal year 2017.

    Sec. 4024. Nutrition Education

        Section 4024 amends section 28 of the Act by including
    ``physical activity'' as an allowable activity under the SNAP
    nutrition education program.

    Sec. 4025. Retailer Trafficking

        Section 4025 amends the Act by providing $5 million each
    fiscal year for USDA to use in preventing SNAP fraud and
    trafficking violations.

    Sec. 4026. Technical and Conforming Amendments

        Section 4026 makes technical and conforming amendments to
    the Act.

    Sec. 4027. Tolerance Level for Excluding Small Errors

        Section 4027 prevents the Secretary from excluding payment
    errors greater than $25 from improper payments calculations.

    Sec. 4028. Commonwealth of the Northern Mariana Islands Pilot Program

        Section 4028 requires the Secretary to conduct a study to
    assess the capabilities of the Commonwealth of the Northern
    Mariana Islands (CNMI) to operate the SNAP program in the same
    manner it is operated in the States. The section requires that
    if, following the study, the Secretary determines that it is
    feasible for the CNMI to operate the SNAP program in the same
    manner it is operated by the States, the Secretary shall
    establish a pilot program in CNMI for such purposes.

    Sec. 4029. Annual State Report on Verification of Snap Participation

        Section 4029 requires States to submit an annual report to
    the Secretary sufficient to show that the State is verifying
    that its SNAP recipients are not receiving benefits in more
    than one state and that no benefits are being paid to deceased
    individuals.

                  SUBTITLE B--COMMODITY DISTRIBUTION PROGRAMS

    Sec. 4101. Commodity Distribution Program

        Section 4101 amends section 4 of the Agriculture and
    Consumer Protection Act of 1973 by reauthorizing the Commodity
    Distribution Program through fiscal year 2017.

    Sec. 4102. Commodity Supplemental Food Program

        Section 4102 amends section 5 of the Agriculture and
    Consumer Protection Act of 1973 by modifying the eligibility of
    the Commodity Supplemental Food Program to serve only elderly
    populations. Those individuals under the age of 60 currently
    being served by the program may remain in the program until
    they no longer meet the current eligibility requirements. The
    section also reauthorizes the program through fiscal year 2017.

    Sec. 4103. Distribution of Surplus Commodities to Special Nutrition
            Projects

        Section 4103 amends section 114(a)(2)(A) of the Agriculture
    and Food Act of 1981 by reauthorizing Distribution of Surplus
    Commodities to Special Nutrition Projects through fiscal year
    2017.

    Sec. 4104. Processing of Commodities

        Section 4104 amends the Commodity Distribution Reform Act
    and WIC Amendments of 1987 by ensuring that the Secretary has
    legal standing to enter into national processing agreements and
    allows the Secretary to retain title to commodities processed
    under those agreements prior to their final delivery to
    schools.

                           SUBTITLE C--MISCELLANEOUS

    Sec. 4201. Farmers' Market Nutrition Program

        Section 4201 amends section 4402 of the Farm Security and
    Rural Investment Act of 2002 by expanding the program purposes
    to allow additional at-risk populations to be served and by
    requiring the Secretary to specify terms and conditions to
    encourage expanding the participation of small-scale farmers in
    Federal nutrition programs.

    Sec. 4202. Nutrition Information and Awareness Pilot Program

        Section 4202 repeals section 4403 of the Farm Security and
    Rural Investment Act of 2002 by eliminating the Nutrition
    Information and Awareness Pilot Program.

    Sec. 4203. Fresh Fruit and Vegetable Program

        Section 4203 amends section 19 of the Richard B. Russell
    National School Lunch Act by expanding the forms of fruits and
    vegetables made available to students through the Fresh Fruit
    and Vegetable Program to include canned, frozen, and dried.

    Sec. 4204. Additional Authority for Purchase of Fresh Fruits,
            Vegetables, and Other Specialty Food Crops

        Section 4204 amends section 10603 of the Farm Security and
    Rural Investment Act of 2002 by requiring the Secretary to
    establish a pilot program in which five participating States
    shall have the option to receive a grant to purchase fresh
    fruits and vegetables for distribution to schools and service
    institutions in lieu of participating in the DOD fresh program.

    Sec. 4205. Encouraging Locally and Regionally Grown and Raised Food.

        Section 4205 requires the Secretary to allow small rural
    schools to purchase locally and regionally grown food in lieu
    of the school's commodity assistance provided under school meal
    programs. The section also allows the Secretary to establish
    farm-to-school demonstration programs at up to 10 schools.

                                Title V--Credit

                        SUBTITLE A--FARM OWNERSHIP LOANS

    Sec. 5001. Eligibility for Farm Ownership Loans

        Section 5001(a) expands eligibility for farm ownership
    loans by including ``other legal entities'' to the list of
    eligible borrowers that includes farmers, ranchers, farming
    cooperatives and private domestic companies. An entity that is
    or will become only the operator of a family farm is deemed to
    meet the owner operator requirements if the owners own more
    than 50% of the entity. An entity that is an owner-operator
    that is owned, in whole or in part, by other entities is deemed
    to meet the direct ownership requirement if at least 75% of the
    embedded entity is owned directly or indirectly by the
    individuals that own the farm.
        Section 5001(b) allows a borrower to meet the experience
    requirements of farming or ranching for 3 years is he or she
    has ``other acceptable experience for a period of time, as
    determined by the Secretary''.

    Sec. 5002. Conservation Loan and Loan Guarantee Program

        Section 5002 expands the eligibility for the conservation
    loan and guarantee program by adding ``or other such legal
    entities as the Secretary deems appropriate'' to the list of
    eligible borrowers. It also raises the limitation on the loan
    guarantee from 75% to 90% and extends the program until 2017.

    Sec. 5003. Down Payment Loan Program

        Section 5003 increase the possible principal amount of the
    loan from 45% of $500,000 to 45% of $667,000.

    Sec. 5004. Elimination of Mineral Rights Appraisal Requirement

        Section 5004 eliminates the requirement to do a mineral
    rights appraisal for real estate loans.

                          SUBTITLE B--OPERATING LOANS

    Sec. 5101. Eligibility for Farm Operating Loans

        Section 5101 expands eligibility for operating loans by
    including ``other legal entities'' to the list of eligible
    borrowers that includes farmers, ranchers, farming cooperatives
    and private domestic companies. An entity that is an operator
    and is owned in whole or in part by other entities is deemed to
    meet the direct ownership if at least 75% of the embedded
    entity is owned directly or indirectly by the individuals that
    own the farm.

    Sec. 5102. Elimination of rural residency requirement for operating
            loans to youth

        Section 5102 expands eligibility by striking the words
    ``rural residency'' from the eligibility requirements for
    operating loans to young farmers.

    Sec. 5103. Authority To Waive Personal Liability for Youth Loans Due to
            Circumstances Beyond Borrower Control

        Section 5103 allows the Secretary, on a case by case basis,
    to waive the personal liability of a borrower for an operating
    loan if any default on the loan was due to circumstances beyond
    the control of the borrower.

    Sec. 5104. Microloans

        Section 5104 authorizes the Secretary to make operating
    loans of $35,000 to eligible borrowers.

                          SUBTITLE C--EMERGENCY LOANS

    Sec. 5201. Eligibility for Emergency Loans

        Section 5201 expands the eligibility for emergency loans by
    adding ``or other such legal entities as the Secretary deems
    appropriate'' to the list of approved borrowers. An entity that
    is an owner-operator and is owned in whole or in part by other
    entities is deemed to meet the direct ownership if at least 75%
    of the embedded entity is owned directly or indirectly by the
    individuals that own the farm.

                     SUBTITLE D--ADMINISTRATIVE PROVISIONS

        Sec. 5301. Beginning Farmer and Rancher Individual
    Development Accounts Pilot Program
        Section 5301 reauthorizes the Beginning Farmer and Rancher
    Individual Development Accounts Pilot Program through 2017.

    Sec. 5302. Eligible Beginning Farmers and Ranchers

        Section 5302 expands the definition of a beginning farmer
    or rancher to include ``or other such legal entity''. It also
    changes the acreage ownership limitation from 30% of the median
    acreage of farms in the county to 30% of the average acreage of
    farms in the county.

    Sec. 5303. Loan Authorization Levels

        Section 5303 reauthorizes the Secretary's ability to make
    loans under each subtitle through 2017.

    Sec. 5304. Priority for Participation Loans

        Section 5304 adds a new priority for beginning farmer and
    rancher direct loans to those applicants who apply under the
    down payment loan program or for joint financing arrangements.

    Sec. 5305. Loan Fund Set-Asides

        Section 5305 reauthorizes the loan fund set-asides through
    2017.

    Sec. 5306. Conforming Amendment to Borrower Training Provision,
            Relating to Eligibility Changes

        Section 5306 is a conforming amendment to a borrower
    training provision.

               SUBTITLE E--STATE AGRICULTURAL MEDIATION PROGRAMS

    Sec. 5401. State Agricultural Mediation Programs

        Section 5401 reauthorizes the state agricultural mediation
    programs through 2017.

          SUBTITLE F--LOANS TO PURCHASERS OF HIGHLY FRACTIONATED LAND

    Sec. 5501. Loans to Purchasers of Highly Fractionated Land

        Section 5501 authorizes the use of a revolving loan fund
    for purchasers of highly fractionated land.

                          Title VI--Rural Development

            SUBTITLE A--CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT

    Sec. 6001. Water, Waste disposal, and Wastewater Facility Grants

        The Consolidated Farm and Rural Development Act is amended
    to decrease the current authorization of appropriations for
    water, waste disposal and wastewater facility grants (7 U.S.C.
    1926(a)(2)(B)(vii)) from $30,000,000 to $15,000,000 for each
    fiscal year through 2017.

    Sec. 6002. Rural Business Opportunity Grants

        Rural Business Opportunity Grants (7 U.S.C. 1926(a)(11)(D))
    are reauthorized through 2017.

    Sec. 6003. Elimination of Reservation of Community Facilities Grant
            Program Funds

        A reservation of funds (7 U.S.C. 1926(a)(19)) within the
    community facilities grant program is repealed.

    Sec. 6004. Rural Water and Wastewater Circuit Rider Program

        The Rural Water and Wastewater Circuit Rider program (7
    U.S.C. 1926(a)(22)) is amended to continue with a national
    program that is consistent with the activities and results of
    the program prior to enactment of this paragraph, and funded
    from the Secretary through the Rural Utilities Service.
    $20,000,000 is authorized to be appropriated for fiscal year
    2013 and each fiscal year thereafter.

    Sec. 6005. Tribal College and University Essential Community Facilities

        Tribal College and University Essential Community
    Facilities (7 U.S.C. 1926(a)(25(C)) is amended to decrease the
    current authorization of appropriations from $10,000,000 to
    $5,000,000 for each fiscal year through 2017.

    Sec. 6006. Emergency and Imminent Community Water Assistance Grant
            Program

        Emergency and Imminent Community Water Assistance Grant
    Program (7 U.S.C. 1926a(i)(2)) is amended to decrease the
    current authorization of appropriations from $35,000,000 to
    $27,000,000 for each fiscal year through 2017.

    Sec. 6007. 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

        Grants to nonprofits to finance the construction,
    refurbishing, and servicing of individually-owned household
    water well systems (7 U.S.C. 1926e(d)) is amended to decrease
    the current authorization of appropriations from $10,000,000 to
    $5,000,000 for each fiscal year through 2017.

    Sec. 6008. Rural Business and Industry Loan Program

        The Consolidated Farm and Rural Development Act is amended
    (7 U.S.C. 932(a)(2)(A)) to authorize working capital as a loan
    purpose. The Business and Industry loan program (7 U.S.C.
    1932(g)) is amended to allow, where the action would not create
    or contribute to an unreasonable risk of default or loss to the
    Federal Government, in the discretion of the Secretary,
    accounts receivables as security for a loan under this
    subsection.

    Sec. 6009. Rural Cooperative Development Grants

        Rural Cooperative Development Grants (7 U.S.C. 1932(e)(12))
    is amended to decrease the current authorization level from
    $50,000,000 to $40,000,000 for each fiscal year through 2017.

    Sec. 6010. Locally or Regionally Produced Agricultural Food Products

        Locally or regionally produced agricultural food products
    (7 U.S.C. 1932(g)(9)(B)(v)(I)) is reauthorized through 2017.
    The Secretary shall reserve not more than 7 percent of funds
    made available to carry out this loan program for this
    authority.

    Sec. 6011. Intermediary Relending Program

        Subtitle A of the Consolidated Farm and Rural Development
    Act (7 U.S.C. 1922-1936a) is amended to authorize the
    Intermediary Relending Program. $10,000,000 is authorized to be
    appropriated for each fiscal year through 2017.

    Sec. 6012. Enhancing Public/Private Partnerships to Support Rural Water
            and Waste Disposal Infrastructure

        Water and waste disposal direct and guaranteed loans (7
    U.S.C. 1983) are amended to encourage financing by private or
    cooperative lenders, to the maximum extent practicable, for
    rural water and waste disposal facilities by using loan
    guarantees where the population exceeds 5,500, using direct
    loans where the impact on rate payers will be material when
    compared to financing with a loan guarantee, establishing and
    applying a materiality standard regarding the difference in
    impact on rate payers, requiring projects that require interim
    financing in excess of $500,000 initially seek financing from
    private or cooperative lenders, and determining if an existing
    direct loan borrower can refinance with a private or
    cooperative lender prior to providing a new direct loan.

    Sec. 6013. Simplified Applications

        Amends the Consolidated Farm and Rural Development Act (7
    U.S.C. 1983a) authorizing the Secretary, to the maximum extent
    practicable, develop a simplified application process,
    including single page applications where possible, for specific
    grants and relending programs authorized in this title. Within
    2 years, after the date of enactment of this Act, the Secretary
    shall submit to Congress a report on the implementation of
    simplified applications.

    Sec. 6014. Reauthorization of State Rural Development Councils

        State Rural Development Councils (7 U.S.C. 2008m(h)) are
    reauthorized through 2017.

    Sec. 6015. Grants for NOAA Weather Radio Transmitters

        Grants for NOAA weather radio transmitters (7 U.S.C.
    2008p(d)) are authorized to be appropriated at $1,000,000 for
    each fiscal year through 2017.

    Sec. 6016. Rural Microentrepreneuer Assistance Program

        The Rural Microentrepreneuer Assistance Program (7 U.S.C.
    2008s(d)(2)) is amended to decrease the current authorization
    level from $40,000,000 to $20,000,000 for each fiscal year
    through 2017.

    Sec. 6017. Delta Regional Authority

        The Delta Regional Authority is reauthorized (7 U.S.C.
    2009aa-13) and amended (7 U.S.C. 2009aa-12(a)) to decrease the
    current authorization level from $30,000,000 to $12,000,000 for
    each fiscal year through 2017.

    Sec. 6018. Northern Great Plains Regional Authority

        The Northern Great Plains Regional Authority (7 U.S.C.
    2009bb-13) is reauthorized and amended (7 U.S.C. 2009bb-12(a))
    to decrease the current authorization level from $30,000,000 to
    $2,000,000 for each fiscal year through 2017.

    Sec. 6019. Rural Business Investment Program

        The Rural Business Investment Program (7 U.S.C. 2009cc-18)
    is amended to decrease the current authorization level from
    $50,000,000 to $20,000,000 for each fiscal year through 2017.

                 SUBTITLE B--RURAL ELECTRIFICATION ACT OF 1936

    Sec. 6101. Relending for Certain Purposes

        The Rural Electrification Act of 1936 (7 U.S.C. 901 et
    seq.) is amended to authorize loans for borrower relending to
    ultimate consumers for the purpose of energy efficiency. Loans
    and grants are also authorized under the Cushion of Credit
    Payments Program for relending to ultimate consumers for the
    purpose of energy efficiency.

    Sec. 6102. Fees for Certain Loan Guarantees

        The Rural Electrification Act of 1936 (7 U.S.C. 901 et
    seq.) is amended to require that the Secretary, at the request
    of an electrification baseload generation loan guarantee
    borrower, charge an upfront fee that is equal to the costs of
    the loan guarantee to cover the costs of the loan guarantee. A
    borrower may not use funds from a loan or other debt obligation
    made or guaranteed by the Federal Government to pay the fee.

    Sec. 6103. Guarantees for Bonds and Notes Issued for Electrification or
            Telephone Purposes

        Guarantees for bonds and notes issued for electrification
    or telephone purposes (7 U.S.C. 940c-1(f)) are reauthorized.

    Sec. 6104. Expansion of 911 Access

        Expansion of 911 access (7 U.S.C. 940e(d)) is reauthorized.

    Sec. 6105. Access to Broadband Telecommunications Services in Rural
            Areas

        The Broadband Program (7 U.S.C. 950bb) is reauthorized and
    amended to provide a priority for applications that are not
    predominantly for business service but where at least 25
    percent of customers in the proposed service territory are
    commercial interests. Publication of notice of applications
    shall include the amount and type of support requested and a
    list of the census block groups or tracts to be served. The
    Secretary is authorized to establish a process where an
    incumbent service provider that as of the date of the
    publication of notice of an application is providing broadband
    service to a remote rural area, may submit information to the
    Secretary information regarding the broadband services offered
    in the application's proposed service territory so that the
    Secretary may assess whether the application is an eligible
    project. The Secretary is also authorized to take into
    consideration the upgrade or replacement cost for construction
    or acquisition of facilities and equipment in considering the
    technology needs of customers in a proposed service territory.

                           SUBTITLE C--MISCELLANEOUS

    Sec. 6201. Distance Learning and Telemedicine

        Distance Learning and Telemedicine (7 U.S.C. 950aaa-5) is
    amended to decrease the current authorization level from
    $100,000,000 to $65,000,000 for each fiscal year through 2017.

    Sec. 6202. Value-Added Agricultural Market Development Program Grants

        Value-Added Agricultural Market Development Program Grants
    (7 U.S.C. 1632a(b)(7)) are reauthorized.

    Sec. 6203. Agriculture Innovation Center Demonstration Program

        The Agriculture Innovation Center Demonstration program (7
    U.S.C. 1632b(i)) is amended to decrease the current
    authorization from $6,000,000 to $1,000,000 for each fiscal
    year through 2017.

    Sec. 6204. Program Metrics

        The Secretary is authorized to collect data regarding
    economic activities created through grants and loans and to
    measure the short- and long-term viability of award recipients
    and any entities to who those recipients provide assistance
    using award funds under certain authorities. The data shall be
    collected both during the award period and after the award
    period for a minimum of 2 years. Not later than 4 years after
    the date of enactment of this Act, and every 2 years
    thereafter, the Secretary shall submit to Congress a report
    that contains data collected including specific information on
    actions taken by the Secretary to utilize the data, the number
    of jobs, including self employment and the value of salaries
    and wages, how the grant or loan affected the local economy and
    any other benefit, as the Secretary deems appropriate.

    Sec. 6205. Study of Rural Transportation Issues

        An update on the study on rural transportation issues is
    authorized to be submitted not later than 1 year after the date
    of enactment of this Act to Congress.

    Sec. 6206. Agricultural Transportation Policy

        This section authorizes the Secretary of Agriculture to
    participate in all proceedings of the Surface Transportation
    Board that may establish freight rail transportation policy
    affecting agriculture and rural America.

    Sec. 6207. Certain Federal Actions not to be Considered Major for
            Purposes of Environmental Review

        An action of the Secretary that does not involve the
    provision of Federal dollars or a loan guarantee from the
    Department of Agriculture, including approval by USDA of a
    borrower's decision to commence a privately funded activity, a
    lien accommodation or subordination, a debt settlement or
    restructuring, or the restructuring of a business entity by a
    borrower, in the case of a loan, loan guarantee, or grant
    program in the rural development mission area of the Department
    of Agriculture, shall not be considered a major Federal action.

              Title VII--Research, Extension, and Related Matters

      SUBTITLE A--NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING
                               POLICY ACT OF 1977

    Sec. 7101. Option to not be Included as Hispanic-Serving Agricultural
            College or University

        The National Agriculture, Research, Extension, and Teaching
    Policy Act of 1977 (7 U.S.C. 3103(10)(A)) is amended to allow
    Hispanic-serving Agricultural Colleges and Universities to opt
    out of the designation.

    Sec. 7102. National Agricultural Research, Extension, Education, and
            Economics Advisory Board

        The National Agricultural Research, Extension, Education,
    and Economics Advisory Board (7 U.S.C. 3123) is extended
    through September 30, 2017 and amended to provide authority for
    the board to consult with industry groups and make
    recommendations to the Secretary.

    Sec. 7103. Specialty Crop Committee

        Amends Specialty Crop Committee (7 U.S.C. 3123a) to
    authorize in its annual report recommendations regarding
    research, extension and teaching programs designed to improve
    competitiveness in the specialty crop industry.

    Sec. 7104. Veterinary Services Grant Program

        The National Agricultural Research, Extension, and Teaching
    Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended to
    provide the Secretary authority to establish a competitive
    grant program for the purpose of developing, implementing, and
    sustaining veterinary services. Grants shall only be made to
    qualified entities that substantially relieve veterinary
    shortage situations, support or facilitate private veterinary
    practices engaged in public health activities, or support or
    facilitate the practices of veterinarians who are or have
    completed services in emergency situations. The Secretary shall
    give preference to qualified entities that coordinate with
    other qualified entities, consider together the availability of
    funds and the grant purpose when selecting grant recipients,
    and consider these grants to be competitive research, extension
    or education grants. A qualified entity may use funds to
    relieve veterinary shortage situations and support vet services
    for any of 5 purposes. However, qualified entities operating a
    veterinary clinic may only use a grant to establish or expand
    veterinary practices and those entities are subject to an
    agreement with the Secretary that includes a term of service
    for the recipient where the Secretary shall consider together
    the amount and specific purpose of the grant. The agreement
    shall provide remedies for any breach by the recipient and a
    waiver of repayment based on extreme hardship as determined by
    the Secretary. Funds recovered shall be credited to the account
    carrying out this program and remain available until expended.
    Funds may not be used for the purpose of constructing a new
    building or facility, or to acquire, expand, remodel or alter
    an existing building or facility. The Secretary shall
    promulgate regulations for this section not later than 1 year
    after the date of enactment of this section. There are
    authorized to be appropriated $10,000,000 for fiscal year 2013
    and each fiscal year thereafter, to remain available until
    expended.

    Sec. 7105. Grants and Fellowships for Food and Agriculture Sciences
            Education

        Grants and Fellowships for Food and Agricultural Sciences
    Education (7 U.S.C. 3152(m)) is amended, decreasing the
    authorization of appropriations from $60,000,000 to $40,000,000
    for each fiscal year through 2017.

    Sec. 7106. Policy Research Centers

        The National Agricultural Research, Extension, and Teaching
    Policy Act of 1977 (7 U.S.C. 3155) is amended to authorize the
    Secretary to act through the office of the Chief Economist, and
    make competitive grants or cooperative agreements to policy
    research centers with a history of providing unbiased,
    nonpartisan economic analysis to Congress. Eligible recipients
    are amended to include other public research institutions and
    organizations. The Secretary shall give a preference to certain
    policy research centers that provide analysis to Congress.
    There are authorized to be appropriated $5,000,000 for each
    fiscal year through 2017.

    Sec. 7107. Repeal of Human Nutrition Intervention and Health Promotion
            Research Program

        Human Nutrition Intervention and Health Promotion Research
    (7 U.S.C. 3174) is repealed.

    Sec. 7108. Repeal of Pilot Research Program to Combine Medical and
            Agricultural Research

        Pilot Research Program to Combine Medical and Agricultural
    Research (7 U.S.C. 3174a) is repealed.

    Sec. 7109. Nutrition Education Program

        Nutrition Education Program (7 U.S.C. 3175(f)) is
    reauthorized.

    Sec. 7110. Continuing Animal Health and Disease Research Programs

        Continuing Animal Health and Disease Research Programs (7
    U.S.C. 3195) is amended by decreasing the authorization of
    appropriations from $25,000,000 to $15,000,000 for each fiscal
    year through 2017.

    Sec. 7111. Repeal of Appropriations for Research on National or
            Regional Problems

        Appropriations for Research on National or Regional
    Problems (7 U.S.C. 3196) is repealed.

    Sec. 7112. Grants to Upgrade Agricultural and Food Sciences Facilities
            at 1890 Land-Grant Colleges, including Tuskegee University

        Grants to Upgrade Agricultural and Food Sciences Facilities
    at 1890 Land-Grant Colleges, including Tuskegee University (7
    U.S.C. 3222b(b)) is reauthorized.

    Sec. 7113. Grants to Upgrade Agriculture and Food Sciences Facilities
            and Equipment at Insular Area Land-Grant Institutions

        Grants to Upgrade Agricultural and Food Sciences Facilities
    and Equipment at Insular Area Land-Grant Institutions (7 U.S.C.
    3222b-2(d)) is reauthorized and amended (7 U.S.C. 3222b-2(a))
    to authorize grants to support tropical and subtropical
    research, including pest and disease research.

    Sec. 7114. Repeal of National Research and Training Virtual Centers

        National Research and Training Virtual Centers (7 U.S.C.
    3222c) is repealed.

    Sec. 7115. Hispanic-Serving Institutions

        Hispanic-Serving Institutions (7 U.S.C. 3241(c)) is
    reauthorized.

    Sec. 7116. Competitive Grants for International Agricultural Science
            and Education Programs

        Competitive Grants for International Agricultural Science
    and Education Programs (7 U.S.C. 3292b(c)) is authorized at
    $5,000,000 through for each fiscal year through 2017.

    Sec. 7117. Repeal of Research Equipment Grants

        Research Equipment Grants (7 U.S.C. 3310a) is repealed.

    Sec. 7118. University Research

        University Research (7 U.S.C. 3311) is reauthorized.

    Sec. 7119. Extension Service

        Extension Service (7 U.S.C. 3312) is reauthorized.

    Sec. 7120. Auditing, Reporting, Bookkeeping, and Administrative
            Requirements

        Section 1469 of the National Agricultural Research,
    Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3315) is
    amended to authorize the Secretary to retain not more than 4
    percent of amounts made available for agricultural research,
    extension and teaching assistance programs towards
    administration, with the exception of peer panel expense or
    limitations on administrative expenses that are less than 4
    percent.

    Sec. 7121. Supplemental and Alternative Crops

        Supplemental and Alternative Crops (7 U.S.C. 3319d) is
    amended to authorize competitive grants and authorized at
    $1,000,000 for each fiscal year through 2017.

    Sec. 7122. Capacity Building Grants for NLGCA Institutions

        Capacity Building Grants for NLGCA Institutions (7 U.S.C.
    3319i(b)) is reauthorized.

    Sec. 7123. Aquaculture Assistance Programs

        Aquaculture Assistance Programs (7 U.S.C. 3322(b)) are
    amended to authorize competitive grants and decrease the
    authorization of appropriations from $7,500,000 to $5,000,000
    for each fiscal year through 2017.

    Sec. 7124. Rangeland Research Programs

        Rangeland Research Programs (7 U.S.C. 3336(a)) is amended,
    decreasing the authorization of appropriations from $10,000,000
    to $2,000,000 for each fiscal year through 2017.

    Sec. 7125. Special Authorization for Biosecurity Planning and Response

        Special Authorization for Biosecurity Planning and Response
    (7 U.S.C. 3351(a)) is authorized at $10,000,000 for each fiscal
    year through 2017.

    Sec. 7126. Distance Education and Resident Instruction Grants Program
            for Insular Area Institutions of Higher Education

        Distance Education and Resident Instruction Grants Program
    for Insular Area Institutions of Higher Education (7 U.S.C.
    3362) is amended to authorize competitive grants at $2,000,000
    for each fiscal year through 2017. Also, Resident Instruction
    Grants for Insular Areas (7 U.S.C. 3363) is authorized at
    $2,000,000 for each fiscal year through 2017.

    Sec. 7127. Matching Funds Requirement

        The National Agricultural, Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended
    to apply a match fund requirement to competitive grants
    involving applied research or extension that are commodity or
    State-specific under certain covered laws. The recipient shall
    provide a match of at least 100 percent of the amount of the
    grant, from sources other than funds provided through the
    grant. The Secretary is given the authority to waive the match
    requirement if the Advisory Board has determined that the
    applied research is a national priority. This provision will
    apply to grants awarded after Oct. 1, 2012, unless this
    authority is withstood.

       SUBTITLE B--FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT OF 1990

    Sec. 7201. Best Utilization of Biological Applications

        Best Utilization of Biological Applications (7 U.S.C. 5814)
    is authorized for each fiscal year through 2017.

    Sec. 7202. Integrated Pest Management Systems

        Integrated Pest Management Systems (7 U.S.C. 5821(d)) is
    authorized for each fiscal year through 2017.

    Sec. 7203. Sustainable Agriculture Technology Development and Transfer
            Program

        Sustainable Agriculture Technology Development and Transfer
    Program (7 U.S.C. 5831(f)) is authorized at $5,000,000 for each
    fiscal year through 2017.

    Sec. 7204. National Training Program

        National Training Program (7 U.S.C. 5832(9)) is authorized
    for each fiscal year through 2017.

    Sec. 7205. National Genetics Resources Program

        National Genetics Resources Program (7 U.S.C. 5844(b)) is
    authorized at $1,000,000 for each fiscal year through 2017.

    Sec. 7206. Repeal of National Agricultural Weather Information System

        National Agricultural Weather Information System (7 U.S.C.
    5851 et seq.) is repealed.

    Sec. 7207. Repeal of Rural Electronic Commerce Extension Program

        Rural Electronic Commerce Extension Program (7 U.S.C. 5923)
    is repealed.

    Sec. 7208. Repeal of Agricultural Genome Initiative

        Agricultural Genome Initiative (7 U.S.C. 5924) is repealed.

    Sec. 7209. High-Priority Research and Extension Initiatives

        High-Priority Research and Extension Initiatives (7 U.S.C.
    5925) is reauthorized and amended to repeal certain
    authorities. A waiver of the matching funds requirement is
    authorized if the project involves a pest that has been
    designated as a pest of public health significance.
    Reauthorizes pollinator protection and authorizes research on
    bed bugs and pests that are a risk to public health. An annual
    report is authorized to address honey bee health disorders and
    best management practices. The Secretary shall award grants for
    the purposes of developing more efficacious methods of
    detecting, preventing and managing bed bugs and conducting
    basic and applied bed bug biology research. A timeline is
    provided requiring that the Secretary publish a request for
    competitive grant proposals and for the evaluation and award of
    grants and the notification of any awards to the task force.
    Also provides for consultation and coordination between the
    Secretary and the Administrator of the EPA regarding the
    awarding of grants under this subsection and the evaluation of
    the results of such research projects to expedite the approval
    or registration under the Federal Insecticide, Fungicide, and
    Rodenticide Act of methods identified or discovered through
    research projects funded under this subsection.

    Sec. 7210. Repeal of Nutrient Management Research and Extension
            Initiative

        Nutrient Management Research and Extension Initiative (7
    U.S.C. 5925a) is repealed.

    Sec. 7211. Organic Agriculture Research and Extension Initiative

        The Food, Agriculture, Conservation, and Trade Act of 1990
    (7 U.S.C. 5925b) is reauthorized and amended to authorize a
    priority for grant proposals that, after the peer review
    process, are found to be scientifically meritorious under the
    criteria for priority under the farm business management grant
    authority. Of the funds of the Commodity Credit Corporation,
    $16,000,000 is authorized for each fiscal year through 2017.

    Sec. 7212. Repeal of Agricultural Bioenergy Feedstock and Energy
            Efficiency Research and Extension Initiative

        Agricultural Bioenergy Feedstock and Energy Efficiency
    Research and Extension Initiative (7 U.S.C. 5925e) is repealed.

    Sec. 7213. Farm Business Management

        Farm Business Management (7 U.S.C. 5925f(d)) is authorized
    at $5,000,000 for each fiscal year through 2017.

    Sec. 7214. Regional Centers of Excellence

        The Food, Agriculture, Conservation, and Trade Act of 1990
    (7 U.S.C. 5925f) is amended to authorize the Secretary to
    prioritize regional centers of excellence for specific
    agricultural commodities to receive funding for competitive
    research or extension programs. A regional center of excellence
    is composed of 1 or more of the eligible entities under the
    Agriculture and Food Research Initiative. Certain criteria will
    be considered for recognition as a center of excellence.

    Sec. 7215. Repeal of Red Meat Safety Research Center

        Red Meat Safety Research Center (7 U.S.C. 5929) is
    repealed.

    Sec. 7216. Assistive Technology Program for Farmers with Disabilities

        Assistive Technology Program for Farmers with Disabilities
    (7 U.S.C. 5933(c)(1)) is amended, decreasing the authorization
    of appropriations from $6,000,000 to $3,000,000 for each fiscal
    year through 2017.

    Sec. 7217. National Rural Information Center Clearinghouse

        National Rural Information Center Clearinghouse (7 U.S.C.
    3125b(e)) is reauthorized.

    SUBTITLE C--AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION REFORM ACT
                                    OF 1998

    Sec. 7301. Relevance and Merit of Agricultural Research, Extension, and
            Education Funded by the Department

        The Agricultural Research, Extension, and Education Reform
    Act of 1998 (7 U.S.C. 7613(a)(2)) is amended to require
    procedures for review to address relevance for grants
    administered on a competitive basis by the National Institute
    of Food and Agriculture and provides for ongoing consultation
    between the Secretary and advisory board regarding merit review
    procedures.

    Sec. 7302. Integrated Research, Education, and Extension Competitive
            Grants Program

        Integrated Research, Education, and Extension Competitive
    Grants Program (7 U.S.C. 7626(e)) is reauthorized.

    Sec. 7303. Repeal of Coordinated Program of Research, Extension, and
            Education to Improve Viability of Small and Medium Size Dairy,
            Livestock, and Poultry Operations

        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) is repealed.

    Sec. 7304. Repeal of Bovine Johne's Disease Control Program

        Bovine Johne's Disease Control Program (7 U.S.C. 7629) is
    repealed.

    Sec. 7305. Grants for Youth Organizations

        Grants for Youth Organizations (7 U.S.C. 7630(d)) is
    authorized at $3,000,000 for each fiscal year through 2017.

    Sec. 7306. Specialty Crop Research Initiative

        The Agricultural Research, Extension, and Education Reform
    Act of 1998 (7 U.S.C. 7632) is reauthorized and amended to
    include efforts to improve handling and processing. It is also
    amended to authorize competitive grants based on an initial
    scientific peer review conducted by a panel of subject matter
    experts and a final funding determination based on a review and
    ranking for merit, relevance and impact by an appropriate panel
    of specialty crop industry representatives. Of the funds of the
    Commodity Credit Corporation, $25,000,000 is authorized for
    fiscal year 2013; $30,000,000 for each fiscal years 2014 and
    2015; $65,000,000 for fiscal year 2016 and $50,000,000 for
    fiscal year 2017 and each year thereafter.

    Sec. 7307. Food Animal Residue Avoidance Database Program

        Food Animal Residue Avoidance Database Program is
    reauthorized through 2017.

    Sec. 7308. Repeal of National Swine Research Center

        National Swine Research Center (P.L. 105-185; 112 Stat.
    605) is repealed.

    Sec. 7309. Office of Pest Management Policy

        Office of Pest management Policy (7 U.S.C. 7653(f)) is
    authorized at $3,000,000 for each fiscal year through 2017.

    Sec. 7310. Repeal of Studies of Agricultural Research, Extension, and
            Education

        Studies of Agricultural Research, Extension and Education
    (7 U.S.C. 7671 et seq.) is repealed.

                             SUBTITLE D--OTHER LAWS

    Sec. 7401. Critical Agricultural Materials Act

        Critical Agricultural Materials Act (7 U.S.C. 178n(a)) is
    authorized at $2,000,000 for each fiscal year through 2017.

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

        Equity in Educational Land-Grant Status Act of 1994 (7
    U.S.C. 301 note; P.L. 103-382) is amended to update and add
    colleges to the list of 1994 institutions. Section 533 extends
    the authorization of appropriations and the consideration of
    1994 Institutions as land-grant colleges eligible to
    participate in the youth-at-risk and the federally recognized
    Tribes Extension Program implemented under section 3(d) of the
    Smith-Lever Act. Section 535 reauthorizes Institutional
    Capacity Building Grants. Section 536 expands the list of
    partners eligible to enter into cooperative agreements with
    1994 Institutions to conduct research from land-grant colleges
    or universities only, to include ARS, Non-land Grant College of
    Agriculture, or McIntyre-Stennis recognized schools of forestry
    and authorizes funds to be appropriated as necessary for each
    of the fiscal years through 2017.

    Sec. 7403. Research Facilities Act

        Research Facilities Act (7 U.S.C. 390d(a)) is reauthorized.

    Sec. 7404. Repeal of Carbon Cycle Research

        Carbon Cycle Research (7 U.S.C. 6711) is repealed.

    Sec. 7405. Competitive, Special, and Facilities Research Grant Act

        Competitive, Special, and Facilities Research Grant Act (7
    U.S.C. 450(i)) is reauthorized. Plant based foods that are a
    major source of nutrients, zoonotic diseases in wildlife
    reservoirs presenting potential concern to public health or
    domestic livestock, animal drugs for minor species and minor
    uses in major species and conservation efforts addressing
    nutrient loss and water quality are authorized as priority
    areas for competitive grants. Requires the Secretary to
    establish procedures under which State or Federal commodity
    promotion entities may directly submit proposals for requests
    for applications for grants to address issues related to
    established priorities. Also authorizes the Secretary to
    provide grants to eligible entities for research proposals
    submitted by State or Federal commodity promotion entities. The
    emphasis on sustainable agriculture is repealed.

    Sec. 7406. Renewable Resources Extension Act of 1978

        Renewable Resources Extension Act of 1978 (16 U.S.C. 1675)
    is reauthorized.

    Sec. 7407. National Aquaculture Act of 1980

        National Aquaculture Act of 1980 (16 U.S.C. 2809) is
    reauthorized.

    Sec. 7408. Repeal of Use of Remote Sensing Data

        Use of Remote Sensing Data (7 U.S.C. 5935) is repealed.

    Sec. 7409. Repeal of Reports under Farm Security and Rural Investment
            Act of 2002

        Reports under Farm Security and Rural Investment Act of
    2002 (7 U.S.C. 5925b note, PL 107-171) (PL 107-171; 116 Stat.
    462) (7 U.S.C. 5925a note; PL 107-171) is repealed.

    Sec. 7410. Beginning Farmer and Rancher Development Program

        Sec. 7405 of the Farm Security and Rural Investment Act of
    2002 (7 U.S.C. 3319f) is amended to authorize competitive
    grants towards certain programs and services and provide a
    priority for school based agriculture education organizations.
    At least 5 percent of funds shall be used to support programs
    and services addressing the needs of beginning farmers and
    ranchers who are also military veterans. These grant recipients
    are encouraged to coordinate with recipients under the
    Assistive Technology Program for Farmers with Disabilities. Of
    the funds of the Commodity Credit Corporation, $10,000,000 is
    authorized for each fiscal year through 2017, to be available
    until expended.

    Sec. 7411. Inclusion of Northern Mariana Islands as a State under
            McIntire-Stennis Cooperative Forestry Act

        Public Law 87-788, commonly known as the McIntire-Stennis
    Cooperative Forestry Act (16 U.S.C. 582a-7) is amended to
    include the Commonwealth of the Northern Mariana Islands as a
    state.

             SUBTITLE E--FOOD, CONSERVATION, AND ENERGY ACT OF 2008

    Sec. 7501. Agricultural Biosecurity Communication Center

        Agricultural Biosecurity Communication Center (7 U.S.C.
    8912(c)) is authorized at $2,000,000 for each fiscal year
    through 2017.

    Sec. 7502. Assistance to Build Local Capacity in Agricultural
            Biosecurity Planning, Preparation, and Response

        Assistance to Build Local Capacity in Agricultural
    Biosecurity Planning, Preparation and Response (7 U.S.C. 8913)
    is each authorized at $15,000,000 for each fiscal year through
    2017.

    Sec. 7503. Research and Development of Agricultural Countermeasures

        Research and Development of Agricultural Countermeasures (7
    U.S.C. 8921(b)) is amended, decreasing the authorization from
    $50,000,000 to $15,000,000 for each fiscal year through 2017.

    Sec. 7504. Agricultural Biosecurity Grant Program

        Agricultural Biosecurity Grant Program (7 U.S.C. 8922(e))
    is authorized at $5,000,000 for each fiscal year through 2017,
    to remain available until expended.

    Sec. 7511. Enhance Use Lease Authority Pilot Program

        Enhanced Use Lease Authority Pilot Program (7 U.S.C. 3125a)
    is reauthorized through 2017.

    Sec. 7512. Grazinglands Research Laboratory

        Grazinglands Research Laboratory (P.L. 110-246;122 Stat
    2019) is reauthorized through 2017.

    Sec. 7513. Budget Submission and Funding

        Section 7506 of the Food, Conservation, and Energy Act of
    2008 (7 U.S.C. 7641c) is amended to add a budget and funding
    submission requirement. The budget submission shall include for
    each funding request for covered programs, certain baseline for
    each covered program, including the location and staff years of
    each covered program carried out by ERS or ARS, and specific
    information for each request for awards under certain
    authorities. Covered programs may not be carried out during the
    fiscal year if required information is not submitted with the
    budget. A report is authorized containing a description of the
    agricultural research, extension and education activities
    carried out by the Federal government during the fiscal year
    immediately preceding.

    Sec. 7514. Repeal of Research and Education Grants for the Study of
            Antibiotic-Resistant Bacteria

        Research and Education Grants for the Study of Antibiotic-
    Resistant Bacteria (7 U.S.C. 3202) is repealed.

    Sec. 7515. Repeal of Farm and Ranch Stress Assistance Network

        Farm and Ranch Stress Assistance Network (7 U.S.C. 5936) is
    repealed.

    Sec. 7516. Repeal of Seed Distribution

        Seed Distribution (7 U.S.C. 415-1) is repealed.

    Sec. 7517. Natural Products Research Program

        Natural Products Research Program (7 U.S.C. 5937(e)) is
    authorized at $7,000,000 for each fiscal year through 2017.

    Sec. 7518. Sun Grant Program

        Sec. 7526 of the Food, Conservation, and Energy Act of 2008
    (7 U.S.C. 8114) is amended to authorize the Secretary to
    coordinate among appropriate Federal agencies. Grants are
    authorized to be used towards integrated, multistate research,
    extension and education programs on technology development and
    implementation. Funding allocations for specific programs are
    repealed. Requirements for the plan for research activities to
    be funded to address bioproducts and priorities of appropriate
    Federal agencies are amended. The Sun Grant Program is
    reauthorized.

    Sec. 7519. Repeal of Study and Report on Food Deserts

        Study and Report on Food Deserts (PL 110-246, 112 Stat.
    2039) is repealed.

    Sec. 7520. Repeal of Agricultural and Rural Transportation Research and
            Education

        Agricultural and Rural Transportation Research and
    Education (7 U.S.C. 5938) is repealed.

    Sec. 7521. Conveyance of Land Comprising Subtropical Horticulture
            Research Station

        The Secretary is authorized to convey land comprising
    subtropical horticulture research station in exchange for an
    amount of cash equal to the market value of the property from
    Miami-Dade County in the state of Florida. The Secretary shall
    deposit all funds received from the conveyance into the
    Treasury of the United States, to be credited to the
    appropriation for the Agricultural Research Service, until
    expended, for the operation, upkeep and maintenance of the
    Subtropical Horticulture Research Station.

    Sec. 7522. Concessions, Fees, and Voluntary Services at National
            Arboretum

        The Act of March 4, 1927 (20 U.S.C. 196) is amended to
    allow the Secretary to grant concessions to nonprofit
    organizations that support the purpose of the National
    Arboretum. In addition, a nonprofit organization granted a
    concession may recognize donors if such recognition is approved
    by the Secretary.

    Sec. 7523. Cotton Disease Research Report

        Not later than 180 days after enactment of this Act, the
    Secretary shall submit to Congress a Cotton Disease Research
    Report.

    Sec. 7524. Miscellaneous Technical Corrections

        The Food, Conservation, and Energy Act of 2008 (PL 110-246;
    122 Stat. 2013) is amended to make a technical correction.

                              Title VIII--Forestry

                SUBTITLE A--REPEAL OF CERTAIN FORESTRY PROGRAMS

    Sec. 8001. Forest Land Enhancement Program

        Section 8001 amends section 4 of the Cooperative Forestry
    Assistance Act of 1978 by repealing the Forest Land Enhancement
    Program.

    Sec. 8002. Watershed Forestry Assistance Program

        Section 8002 amends section 6 of the Cooperative Forestry
    Assistance Act of 1978 by repealing the Watershed Forestry
    Assistance Program.

    Sec. 8003. Expired Cooperative National Forest Products Marketing
            Program

        Section 8003 amends section 18 of the Cooperative Forestry
    Assistance Act of 1987 by repealing the Cooperative National
    Forest Products Marketing Program.

    Sec. 8004. Hispanic-Serving Institution Agricultural Land National
            Resources Leadership Program

        Section 8004 amends section 8402 of the Food, Conservation,
    and Energy Act of 2008 by repealing the Hispanic-serving
    Institutional Agricultural Land National Resources Leadership
    Program.

    Section 8005. Tribal Watershed Forestry Assistance Program

        Section 8005 amends section 303 of the Healthy Forests
    Restoration Act of 2003 by repealing the Tribal Watershed
    Forestry Assistance Program.

     SUBTITLE B--REAUTHORIZATION OF COOPERATIVE FORESTRY ASSISTANCE ACT OF
                                 1978 PROGRAMS

    Sec. 8101. Forest Legacy Program

        Section 8101 amends section 7 of the Cooperative Forestry
    Assistance Act of 1978 by reauthorizing the Forest Legacy
    Program through FY 2017 at $55,000,000 for each fiscal year
    2013 through 2017.

    Section 8102. Community Forest and Open Space Conservation Program

        Section 8102 amends section 7A of the Cooperative Forestry
    Assistance Act of 1978 by reauthorizing the Community Forest
    and Open Space Conservation Program at $1,500,000 for each
    fiscal year 2013 though 2017.

           SUBTITLE C--REAUTHORIZATION OF OTHER FORESTRY-RELATED LAWS

    Sec. 8201. Rural Revitalization Technologies

        Section 8201 amends section 2371 of the Food, Agriculture,
    Conservation, and Trade Act of 1990 by reauthorizing the Rural
    Revitalization Technologies at the current level of $5,000,000
    for each fiscal year through 2017.

    Sec. 8202. Office of International Forestry

        Section 8201 amends section 2405 of the Global Climate
    Change Prevention Act of 1990 by reauthorizing the Office of
    International Forestry within the Forest Service at $6,000,000
    for each fiscal year 2013 though 2017.

    Sec. 8203. Change in Funding Source for Healthy Forest Reserve Program

        Section 8203 amends section 508 of the Healthy Forests
    Restoration Act of 2003 by making the Healthy Forest Reserve
    Program subject to appropriated funds at an authorization level
    of $9,750,000 for each fiscal year 2013 through 2017. The
    section further allows the Secretary to use funds appropriated
    for a given fiscal to carry out the Soil Conservation and
    Domestic Allotment Act, if necessary to cover the cost of
    technical assistance, management, and enforcement
    responsibilities for land enrolled in the program as permanent
    easements or 30-year easements.

    Sec. 8204. Stewardship End Result Contracting Project Authority

        Section 8204 amends section 347 of the Department of the
    Interior and Related Agencies Appropriations Act by
    reauthorizing Forest Service's stewardship end contracting
    authority through FY 2017.

               SUBTITLE D--NATIONAL FOREST CRITICAL AREA RESPONSE

    Sec. 8301. Definitions

        Section 8301 defines the terms ``critical area'' and
    ``National Forest system'' for the purposes of the title.

    Sec. 8302. Designation of Critical Areas

        Subsection (a) requires the Secretary to designate critical
    areas within the National Forest System for the purposes of
    addressing deteriorating forest health conditions in existence
    at the time of this Act due to insect infestation, drought,
    disease, or storm damage as well as future risk of insect
    infestations or disease outbreaks.
        Subsection (b) directs the Secretary to use the most recent
    annual forest health aerial surveys of mortality and
    defoliation for the purpose of determining deteriorating forest
    health conditions at the time of this Act and the National
    Insect and Disease Risk Map for the purpose determining of
    future risk when considering National Forest System land for
    designation as a critical area.
        Subsection (c) requires the Secretary to designate the
    first critical areas no later than 60 days after enactment of
    this Act.
        Subsection (d) establishes that a critical area designation
    under this subtitle shall last for 10 years.

    Sec. 8303. Application of Expedited Procedures and Activities of the
            Healthy Forest Restoration Act of 2003 to Critical Areas

        Subsection (a), subject to specified modifications within
    the section, allows for the application of authorities of title
    I of the Healthy Forests Restoration Act of 2003 to all Forest
    Service projects and activities carried out in a designated
    critical area.
        Subsection (b) exempts projects conducted in accordance
    with this section from section 322 of Public Law 102-381 which
    prohibits the use of appropriations to complete and issue the
    five-year program under the Forest and Rangeland Renewable
    Resources Planning Act.
        Subsection (c) requires the Secretary to make the following
    modifications when applying title I authorities to Forest
    Service projects and activities in a critical area: (1) the
    authority should apply to the entire critical area; and (2) all
    projects and activities of the Forest Service shall be
    considered to be authorized hazardous fuel reduction projects
    for the purpose of applying this title.
        Subsection (d) excludes projects that comprise less than
    1,000 acres from the requirements for an environmental
    assessment or an environmental impact statement. The exclusion
    does not apply to: land in the National Wilderness Preservation
    System; any Federal land on which, by an Act of Congress or
    Presidential proclamation, removal of vegetation is restricted;
    a congressionally designated wilderness study area; or an area
    in which the activity would be inconsistent with the applicable
    land and resource management plan.
        Subsection (e) requires that all projects and activities
    carried out in a critical area pursuant to the subtitle shall
    be consistent with land and resource management plans.

    Sec. 8304. Good Neighbor Authority

        Subsection (a) defines the terms ``eligible State'' and
    ``State forester'' for the purposes of the section.
        Subsection (b) gives the Secretary authority to enter into
    cooperative agreements or contracts with a State forester
    authorizing the State forester to provide the forest,
    rangeland, and watershed restoration and protection services on
    National Forest System land in the eligible State. Restoration
    and protection services include activities to treat insect
    infected trees, activities to reduce hazardous fuels, and any
    other activities to restore or improve forest, rangeland, and
    watershed health. Such cooperative agreement or contract may
    authorize the State forester to serve as the agent for the
    Secretary in providing those authorized services. A State
    forester may enter into subcontracts to provide those
    authorized services if it is in accordance with applicable
    contract procedures for the eligible State. Any decision
    required to be made under NEPA may not be delegated to a State
    forester or any other officer or employee of the eligible State
    under this section.
        Services performed under such cooperative agreement or
    contract shall be exempt from subsections (d) and (g) of
    section 14 of the National Forest Management Act of 1976.
    Subsection (d) of that Act requires the Secretary to advertise
    all timber sales unless extraordinary conditions exist or the
    appraised value of the sale is less than $10,000. Subsection
    (g) of that Act requires that designation and marking, and
    supervision of harvesting of trees be conducted by persons
    employed by the Secretary and have no personal interest in the
    purchase or harvest of such products nor be in the direct or
    indirect employ of the purchaser.
        The restoration and protection services under this section
    shall be carried out on a project-by-project basis under
    existing Forest Service authorities.

                      SUBTITLE E--MISCELLANEOUS PROVISIONS

    Sec. 8401. Revision of Strategic Plan for Forest Inventory and Analysis

        Subsection (a) requires the Secretary to, not later than
    180 days after enactment of this Act, revise the strategic plan
    for forest inventory and analysis to address the new
    requirements imposed by this section.
        Subsection (b) enumerates a list of new requirements for
    the purpose of revising the strategic plan for forest inventory
    and analysis.
        Subsection (c) requires the Secretary to submit the revised
    strategic plan to the Committee on Agriculture of the House of
    Representatives and the Committee on Agriculture, Nutrition,
    and Forestry of the Senate.

    Sec. 8402. Forest Service Participation in ACES Program

        Section 8402 allows the Forest Service to use certain
    Forest Service funds for the purpose of using the Agricultural
    Conservation Experienced Services (ACES) Program to provide
    technical services for conservation-related programs and
    authorities carried out on Forest Service System lands.

                                Title IX--Energy

    Sec. 9001. Definition of Renewable Energy System

        Section 9001 amends section 9001 of the Farm Security and
    Rural Investment Act of 2002 by modifying the definition of
    ``biobased product'' and adding a definition of ``forest
    product'' to ensure that mature forest products are treated in
    the same manner as other biobased products. The section also
    adds a definition for ``renewable energy system'' which limits
    the eligible projects in the Rural Energy for America Program.

    Sec. 9002. Biobased Markets Program

        Section 9002 amends section 9002 of the Farm Security and
    Rural Investment Act of 2002 by reauthorizing the Biobased
    Markets Program with discretionary funding authorized at $2
    million per fiscal year through 2017.

    Sec. 9003. Biorefinery Assistance

        Section 9003 amends section 9003 of the Farm Security and
    Rural Investment Act of 2002 by eliminating grant funding in
    the Biorefinery Assistance Program to ensure that program
    funding is spent more efficiently through loan guarantees with
    discretionary funding at $75 million per fiscal year through
    2017.

    Sec. 9004. Repeal of Repowering Assistance Program and Transfer of
            Remaining Funds

        Section 9004 amends section 9004 of the Farm Security and
    Rural Investment Act of 2002 by repealing the Repowering
    Assistance Program and transferring any remaining funds to the
    Rural Energy for America Program.

    Sec. 9005. Bioenergy Program for Advanced Biofuels

        Section 9005 amends section 9005 of the Farm Security and
    Rural Investment Act of 2002 by reauthorizing the Bioenergy
    Program for Advanced Biofuels with discretionary funding at $50
    million per fiscal year through 2017.

    Sec. 9006. Biodiesel Fuel Education Program

        Section 9006 amends section 9006 of the Farm Security and
    Rural Investment Act of 2002 by reauthorizing the Biodiesel
    Fuel Education Program with discretionary funding at $2 million
    per fiscal year through 2017.

    Sec. 9007. Rural Energy for America Program

        Section 9007 amends section 9007 of the Farm Security and
    Rural Investment Act of 2002 by eliminating the authority for
    feasibility studies, creating a three-tiered application
    process, and reauthorizing the Rural Energy for America Program
    with discretionary funding at $45 million per fiscal year
    through 2017.

    Sec. 9008. Biomass Research and Development

        Section 9008 amends section 9008 of the Farm Security and
    Rural Investment Act of 2002 by reauthorizing Biomass Research
    and Development with discretionary funding at $20 million per
    fiscal year through 2017.

    Sec. 9009. Feedstock Flexibility Program for Bioenergy Producers

        Section 9009 amends section 9010 of the Farm Security and
    Rural Investment Act of 2002 by reauthorizing the Feedstock
    Flexibility Program for Bioenergy Producers through 2017.

    Sec. 9010. Biomass Crop Assistance Program

        Section 9010 amends section 9011 of the Farm Security and
    Rural Investment Act of 2002 by eliminating collection,
    harvest, storage, and transportation (``CHST'') payments and
    reauthorizing the program with discretionary funding at
    $75,000,000 per fiscal year through 2017. This section also
    adds ``existing project areas that have received funding'' to
    the factors the Secretary shall consider when selecting project
    areas.

    Sec. 9011. Community Wood Energy Program

        Section 9011 amends section 9013 of the Farm Security and
    Rural Investment Act of 2002 by reauthorizing the Community
    Wood Energy Program with discretionary funding at $2 million
    per fiscal year through 2017.

    Sec. 9012. Repeal of Biofuels Infrastructure Study

        Section 9012 amends section 9002 of the Food, Conservation,
    and Energy Act of 2008 by repealing the Biofuels Infrastructure
    Study.

    Sec. 9013. Repeal of Renewable Fertilizer Study

        Section 9013 amends section 9003 of the Food, Conservation,
    and Energy Act of 2008 by repealing the Renewable Fertilizer
    Study.

                             Title X--Horticulture

    Sec. 10001. Specialty Crops Market News Allocation

        Section 10001 amends section 10107 of the Food,
    Conservation, and Energy Act of 2008 by reauthorizing
    appropriations for specialty crop news market services at
    $9,000,000 for each fiscal year, through FY 2017.

    Sec. 10002. Repeal of Grant Program To Improve Movement of Specialty
            Crops

        Sec. 10002 amends section 10403 of the Food, Conservation,
    and Energy Act of 2008 repealing the grant program to improve
    movement of specialty crops.

    Sec. 10003. Farmers Market and Local Food Promotion Program

        Sec. 10003 amends section 6 of the Farmer-to-Consumer
    Direct Marketing Act of 1976 and the Farmers Market and Local
    Food Promotion Program. The section includes ``local food'' in
    the title and establishment section. It further clarifies the
    purposes section of the program to highlight ``locally and
    regionally produced agricultural products''.
        The section includes a matching fund requirement at 25
    percent for entities carrying out local and regional food
    business enterprises. It limits the use of grant money by
    prohibiting its use for purchase, construction, or
    rehabilitation of buildings or structure.
        The section makes available $20,000,000 in mandatory
    funding each year and maintains the authorization for
    $10,000,000 for the program for each fiscal year 2013 through
    FY 2017. Of the funds made available, 50 percent is reserved
    for activities related to direct producer-to-consumer market
    opportunities, such as farmers' market and roadside stands; and
    50 percent is reserved for activities of local and regional
    food business enterprises that process, distribute, aggregate,
    and store locally or regionally produced food products. Not
    more than 5 percent of the total amount of funds made available
    to the program can be used for administrative expenses.

    Sec. 10004. Organic Agriculture

        Subsection (a) amends section 7407 of the Farm Security and
    Rural Investment Act of 2002 by extending the Organic
    Production and Market Data Initiatives through FY 2017 at
    $5,000,000 for each fiscal year. In addition to appropriated
    funds, the subsection makes available $5,000,000 in mandatory
    funds to remain available until expended.
        Subsection (b) amends section 2122 of the Organic Foods
    Production Act of 1990 and the National Organic Program to
    include a section requiring the Secretary to modernize database
    and technology systems for the program.
        Subsection (c) amends section 2123 of the Organic Foods
    Production Act of 1990 by reauthorizing the program at the
    current level of $11,000,000 for each fiscal year through FY
    2017. In addition to appropriated funds, the subsection makes
    available $5,000,000 in mandatory funds to remain available
    until expended.
        Subsection (d) amends section 10606 of the Farm Security
    and Rural Investment Act of 2002 by repealing the National
    Organic Certification Cost-share Program.

    Sec. 10005. Investigations and Enforcement of the Organic Foods
            Production Act of 1990

        The Organic Foods Production Act of 1990 (7 U.S.C. 6521) is
    amended to authorize the Secretary to take investigative
    actions necessary to carry out this title to verify the
    accuracy of information and determine whether a person covered
    by this title has committed a violation of any provision of
    this title. The Secretary is authorized to administer oaths and
    affirmations, subpoena witnesses, take evidence and require the
    production of records required to be maintained under this
    title, relevant to the investigation. It is an unlawful act for
    any person covered by this title to refuse to provide
    information required by the Secretary under this title or to
    violate a suspension or revocation of either the organic
    certification of a producer or handler or the accreditation of
    a certifying agent. The Secretary may suspend, after notice and
    opportunity for an expedited administrative hearing, the
    organic certification or accreditation if the Secretary has
    reason to believe that a covered person has violated or is
    violating any provision of this title. The decision to suspend
    a certification may be appealed to a U.S. district court no
    later than 30 days after such decision is made and shall not
    take effect until judicial review of the decision is completed.
    If the Secretary, subsequent to an investigation, determines
    that a violation has occurred, the suspension shall remain in
    effect until the Secretary issues a revocation of the
    certification or the accreditation, after an expedited
    administrated appeal is completed. After the appeal, if a
    violation of this title is determined to have occurred, the
    Secretary shall revoke the certification or the accreditation.
    A revocation of a certification or accreditation may be
    appealed to a U.S. district court within 30 days of the
    revocation. A revocation shall be set aside only if the
    revocation is clearly erroneous. The Secretary may apply to the
    appropriate U.S. district court for enforcement of a final
    revocation, and the court shall enforce the revocation. Civil
    penalties under the title are authorized if there is a
    violation of the revocation.

    Sec. 10006. Food Safety Education Initiatives

        Section 10006 amends section 10105 of the Food,
    Conservation, and Energy Act of 2008 by extending the
    authorization of appropriations for Food Safety Education
    Initiatives at $1,000,000 through FY 2017.

    Sec. 10007. Specialty Crop Block Grants

        Section 10007 amends section 101 of the Specialty Crops
    Competitiveness Act of 2004 by changing the grant allocation
    formula. It makes available $70,000,000 in mandatory funding
    for the Specialty Crop Block Grants for each fiscal year, 2013
    through 2017. The section requires the Secretary, not later
    than 180 days after the effective date of this Act, to issue
    guidance for the purpose of making grants to multistate
    projects and designates mandatory funds for such purposes. The
    Secretary may not use more than 3 percent of the funds made
    available for a fiscal year for administrative expenses. A
    State receiving a Specialty Crop Block Grant may not use more
    than 8 percent of the funds received under the grant for a
    fiscal year for administrative expenses.

    Sec. 10008. Report on Honey

        Subsection (a) requires the Secretary, in consultation with
    stakeholders, to submit a report to the Commissioner of the
    FDA, describing how an appropriate Federal standard for
    identifying honey would be in the interest of consumers and the
    honey industry. The Secretary shall submit such a report not
    later than 180 days of the date of enactment of this Act.
        Subsection (b) requires the Secretary to consider the
    March, 2006, Standard of Identity citizens' petition filed with
    the FDA, including any current industry amendments or
    clarifications, when preparing such a report.

    Sec. 10009. Bulk Shipments of Apples to Canada

        Subsection (a) exempts apples shipped to Canada in bulk
    bins from the provisions of the Export Apple Act.
        Subsection (b) amends the definitions section of the Export
    Apple Act to include a definition of the term ``bulk bin''.
        Subsection (c) requires the Secretary to issue regulations
    to carry out the amendments, not later than 60 days after the
    date of enactment of this Act.

    Sec. 10010. Inclusion of Olive Oil in Import Controls under the
            Agricultural Adjustment Act

        Section 10010 amends section 8e of the Agricultural
    Adjustment Act to include olive oil in the list of commodities
    regulated by import controls.

    Sec. 10011. Petitions to Determine Organism Not a Plant Pest

        The Plant Protection Act (7 U.S.C. 7711) is amended to
    expand the scope and clarify the procedures of the process by
    which a person may petition the Secretary for a determination
    that an organism that is subject to regulation by the Secretary
    as a plant pest is not a plant pest. In reviewing a petition,
    the Secretary shall conduct a plant pest risk assessment as
    well as an environmental analysis of any likely adverse effects
    of such organism on the soil, water, air quality, non-target
    organisms, and listed threatened and endangered species and the
    critical habitat of such species for the environment in which
    such organism is likely to be grown or otherwise used under the
    conditions in the petition. The Secretary shall issue a
    determination that an organism is not a plant pest if, based on
    sound science and the plant pest risk assessment, the Secretary
    determines that the organism is not likely to be a plant pest.
    The Secretary shall complete the risk assessment and authorized
    environmental analysis and issue a determination not later than
    1 year after the Secretary determines that a petition is
    complete. The Secretary may extend the 1 year review period for
    an additional 180 days if the Secretary determines the
    additional review is necessary, after written notification to
    the person submitting the petition. Notwithstanding any other
    provision of law, if after completing the risk assessment, the
    Secretary finds there is no reason to believe that an organism
    is a plant pest and does not grant or deny a petition within
    the time period required, such organism shall be deemed not to
    be a plant pest.
        If an organism contains a plant-incorporated protectant, a
    determination made that an organism is not a plant pest or the
    deeming that an organism is not a plant pest shall not be
    effective until the registration of the plant-incorporated
    protectant is approved under the Federal Insecticide,
    Fungicide, and Rodenticide Act (7 U.S.C. 136a et seq.).
    Notwithstanding a determination that an organism is not a plant
    pest or that such organism has been deemed not to be a plant
    pest, the Secretary may issue a determination, based on
    information discovered after the date of such determination or
    the date on which the organism was so deemed and sound science
    that an organism is a plant pest.
        The Secretary shall publish notice in the Federal Register
    of a grant or denial of a petition or a deeming that such
    organism is not a plant pest. The risk assessment and
    environmental analysis shall be provided to the person who
    submitted a petition and made available to the public.
        Notwithstanding any other provision of law, the
    environmental analysis required here shall be the only analysis
    or procedure regarding the effects on the environment of an
    organism that is the subject of a petition required or
    authorized by law with respect to reviewing and taking action
    on such petition. No funds made available by any act shall be
    obligated, expended or used for any environmental analysis or
    procedure other than the environmental analysis required here
    for petitions. The Secretary shall also not require or solicit
    any financial assistance from a person submitting a petition
    for any environmental analysis or procedure required here, or
    for any other analysis or procedure.
        Notwithstanding any other provision of law, the Secretary
    shall use data collected under a permit, with respect to an
    organism, among other relevant data, for the purposes of the
    review of a petition submitted with respect to such organism,
    and shall use the analysis or procedures required under the
    regulations issued under the Federal Plant Pest Act, continued
    in effect in accordance with section 438(c), as the only
    analyses or procedures required or authorized by law with
    respect to reviewing and taking action on an application for a
    permit.
        Notwithstanding any other provision of law, in reviewing an
    application for a permit that is not currently excluded from
    environmental review, the Secretary shall conduct the
    environmental analysis authorized here. Such analysis shall be
    the only environmental analysis or procedure required or
    authorized by law with respect to reviewing and taking action
    on this type of permit.
        Notwithstanding any other provision of law, including
    section 411A of the Plant Protection Act, if the Secretary
    determined that a petition submitted before the date of
    enactment of this section was complete before such date, the
    Secretary shall consider such petition to remain complete and
    maintain such status. Notwithstanding any other provision of
    law, including subsection (c) of section 411 of this Act, if
    the Secretary determined that a permit application submitted
    before the date of enactment of this section was complete
    before such date, the Secretary shall consider such application
    to remain complete and maintain such status.
        Notwithstanding any other provision of law, the Secretary
    shall use any environmental analysis conducted for purposes of
    a petition before the date of enactment of this section with
    respect to an organism to the greatest extent possible to
    complete the environmental analysis conducted under section
    411A of this Act for a petition. Notwithstanding any other
    provision of law, the Secretary shall use any environmental
    analysis conducted for purposes of a permit application before
    the date of enactment of this section with respect to an
    organism to the greatest extent possible to complete any
    environmental analysis that may be required for this type of
    permit after the date of enactment.
        The Secretary shall determine the length of the period for
    the review of petitions that were pending review on the date of
    the enactment of this section. Notwithstanding any other
    provision of law, for each covered petition, if the Secretary
    finds that there is no reason to believe that the subject
    organism is a plant pest, and the petition is not granted or
    denied, not later than 90 days after enactment of this section,
    such organism shall be deemed not to be a plant pest. A covered
    petition is a petition submitted before the date of enactment
    of this section for which a plant pest risk assessment and an
    environmental assessment have been published and a notice and
    comment period have been completed as of the date of enactment.
    Not later than 180 days after the date of enactment of this
    section, the Secretary shall issue such regulations as the
    Secretary considers necessary to carry out the amendments made
    by this section.

    Sec. 10012. Consolidation of Plant Pest and Disease Management and
            Disaster Prevention Programs

        Amends the Plant Protection Act to authorize the National
    Clean Plant Network, as previously authorized in the Food,
    Conservation, and Energy Act of 2008 (7 U.S.C. 7761). The use
    of any Commodity Credit Corporation funds under this section to
    provide technical assistance shall not be considered an
    allotment or fund transfer from the Corporation for the
    purposes of the limit on expenditure for technical assistance
    imposed by the Corporation's Charter Act (7 U.S.C. 714i). The
    section makes available $71,500,000 in mandatory funds for
    fiscal year 2013 and each fiscal year thereafter.

    Sec.10013. Authority for Regulation of Plants

        Any living stage of a plant, including any nucleic acid or
    other genetic material as contained in such plant, shall be
    exclusively subject to regulation under statutes which
    authorize the Secretary of Agriculture to issue regulations
    with respect to plants. However, a pesticidal substance that is
    contained in a plant, subjected to the Plant Protection Act and
    intended for preventing, destroying, repelling, or mitigating
    any pest shall be subject to regulation as a plant incorporated
    protectant under the Federal Insecticide, Fungicide, and
    Rodenticide Act (7 U.S.C. 136 et seq.). The regulations issued
    by the Administrator of the Environmental Protection Agency for
    plant-incorporated protectants shall be based on sound science,
    use the least burdensome requirements, and provide for
    exemptions from the requirements otherwise applicable to
    pesticides that are not plant-incorporated protectants.

    Sec.10014. Report to Congress on Regulation of Biotechnology

        Not later than 1 year after the date of enactment of this
    section, the Secretary in consultation with the Secretary of
    Health and Human Services and the Administrator of the
    Environmental Protection Agency shall submit to Congress a
    report on the measures taken and proposed to be taken to
    provide for balanced and appropriate regulatory oversight of
    agricultural biotechnology products.

    Sec. 10015. Pesticide Registration Improvement

        Section 4 of the Federal Insecticide, Fungicide, and
    Rodenticide Act (7 U.S.C. 136a-1(i)) is amended by authorizing
    the total amount of maintenance fees collected in the aggregate
    to $27,800,000 through fiscal year 2017. The maximum amount of
    fees payable by a registrant holding not more than 50 pesticide
    registrations is $115,500, and for one holding over 50
    pesticide registrations, $184,800 through fiscal year 2017. The
    maximum amount of fees payable by a registrant that is a small
    business holding not more than 50 pesticide registrations is
    $70,600, and for one holding over 50 pesticide registrations,
    $122,100 through fiscal year 2017.
        The Administrator is also authorized to provide a waiver in
    the amount of 25 percent of the fee applicable to the first
    registration of a qualified small business not formed or
    manipulated primarily for the purpose of qualifying for the
    waiver. The paragraph on maintenance fees is reauthorized
    through 2017.
        The abatement of other fees not included in sections 4 or
    33 of FIFRA is extended. Section 408(m)(3) of the Federal Food,
    Drug, and Cosmetic Act (21 U.S.C. 346a(m)(3)) is extended to
    reauthorize the abatement of tolerance fees through fiscal year
    2017.
        The Reregistration and Expedited Processing Fund is
    authorized to offset costs to enhance information systems
    capabilities to improve the tracking of pesticide registration
    decisions.
        Amends the Act to authorize the Administrator to use
    between \1/9\ and \1/8\ of maintenance fees collected in a
    fiscal year to review and evaluate inert ingredients through
    fiscal year 2017. The Reregistration and Expedited Processing
    Fund is also authorized to offset costs, in an amount not to
    exceed $800,000, to improving information systems capabilities
    for the Office of Pesticide Programs to enhance tracking of
    registration actions and status of conditional registrations,
    allow electronic capability of review of labels and
    confidential statements of formula in registration actions, and
    enhance database capabilities for information on endangered
    species assessments in the registration review process.
        Section 33 of this Act is amended to update the schedule of
    covered pesticide registration applications and corresponding
    fees and require its publication. Fee adjustments for covered
    pesticide registration applications are reauthorized. The Act
    is amended to allow the Administrator to provide a refund of a
    portion of a covered registration service fee on the basis that
    the application is rejected based on the initial content and
    preliminary technical screening.
        The worker protection set aside in the Pesticide
    Registration Fund is reauthorized through fiscal year 2017.
    $500,000 each fiscal year through 2017 shall be used out of the
    fund for partnership grants. The pesticide safety education
    program is reauthorized through fiscal year 2017.
        Authorization to assess registration service fees is made
    contingent upon an amount of appropriations for salaries,
    contracts, and expense for functions as of fiscal year 2012, of
    the Office of Pesticide Programs equal or greater to the amount
    of appropriations for covered functions for fiscal year 2012.
    The measure of compliance allowing a decline of 3 percent to be
    regarded as equal to the amount of appropriations is repealed.
        This Act is amended to update the schedule of decision
    review periods for covered pesticide registration actions and
    fees and require its publication. The start of the decision
    time review period begins after the receipt of the covered
    pesticide registration application and fee. The Administrator
    is also authorized to provide for a preliminary technical
    screening in addition to the current authorization for initial
    content. The preliminary technical screening shall be conducted
    not later than 45 or 90 days, whichever is appropriate, after
    the date on which the decision time review period begins. The
    Administrator is authorized to reject the application at any
    time before the completion of the authorized preliminary
    technical screening if it is determined that the application
    failed the initial content or preliminary technical screening
    and the failure is not corrected before the date that is 10
    business days after the applicant receives notification of the
    failure. The Administrator shall determine whether an
    application appears to contain necessary forms, data and draft
    labeling in conducting an initial content screening. A
    preliminary technical screening determines whether the
    application including the data and information submitted are
    accurate and complete, as well as consistent with the proposed
    labeling and any proposal for a tolerance or exemption from the
    requirement for a tolerance under the FFDCA and could result in
    the granting of the application.
        The annual report describing pesticide registration fees is
    reauthorized through March 1, 2017, including new information
    regarding the number of extensions of decision time review
    periods, progress towards carrying out section 4(k)(4) and the
    amounts from the Reregistration and Expedited Processing Fund
    used for the purposes described, implementing the new
    electronic tracking system, the number of applications rejected
    by the Administrator under the initial content and preliminary
    technical screening, an update of the Pesticide Incident Data
    System, and an assessment of the public availability of summary
    pesticide usage data.
        Section 33(m) Termination of Effectiveness is in each
    instance extended 5 years.

    Sec. 10016. Modification, Cancellation, or Suspension on Basis of a
            Biological Opinion

        Except in the case of a voluntary request from a registrant
    under section 3 of the Federal Insecticide, Fungicide, and
    Rodenticide Act (7 U.S.C. 136a), a registration may be
    modified, canceled or suspended on the basis of the
    implementation of a Biological Opinion issued by the NMFS or
    the USFWS prior to the completion of the National Academy of
    Sciences study commissioned by the Administrator of the EPA or
    Jan. 1, 2014, whichever is earlier, only if the action is taken
    pursuant to section 6 of the Act and the Biological Opinion
    complies with the recommendations contained in the study. The
    study shall include at minimum: (1) a formal, independent, and
    external peer review, consistent with OMB policies of each
    Biological Opinion, (2) an assessment of economic impacts of
    measures or alternatives recommended in each Biological
    Opinion, (3) an examination of specific scientific and
    procedural questions and issues pertaining to economic
    feasibility contained in a June 23, 2011 letter sent to the
    Administrator and other Federal officials from Members of
    Congress.

    Sec. 10017. Use and Discharges of Authorized Pesticides

        Section 10017(a) is the short title.
        Section 10017(b) amends section 3(f) of the Federal
    Insecticide, Fungicide, and Rodenticide Act prohibiting the
    Administrator or a State from requiring a permit under the
    Federal Water Pollution Control Act for pesticide applications
    authorized under the Federal Insecticide, Fungicide and
    Rodenticide Act, except in certain instances.
        Section 10017(c) amends section 402 of the Federal Water
    Pollution Control Act prohibiting the Administrator or a State
    from requiring a permit under section 402 for the application
    into navigable waters of a pesticide applications authorized
    under the Federal Insecticide, Fungicide, and Rodenticide Act.
    Subsection (s)(2) provides exceptions for certain instances.

    Sec. 10018. Effective Date

        The effective date of this title is October 1, 2012, except
    for Sections 10008, 10009 and 10010.

    Sec. 10019. Inclusion of Bed Bugs in Definition of Vector Organisms

        The Federal Insecticide, Fungicide, and Rodenticide Act
    (FIFRA) (7 U.S.C. 136(oo)) is amended to include bed bugs in
    the definition of vector organisms. Also amends FIFRA (7 U.S.C.
    136w(b)) authorizing the Administrator to require the
    submission of efficacy data, and to evaluate such data, if the
    pesticide is labeled or proposed to be labeled for the control
    of a pest of public health significance. The Administrator
    shall not permit the sale or distribution of any product that
    is marketed, distributed, or sold with a claim that the product
    will control a public health pest if the data submitted under
    this subsection does not support that claim. This requirement
    is applicable to pesticides exempted under this subsection.

                            Title XI--Crop Insurance

    Sec. 11001. Information Sharing

        Section 11001 if the producer authorizes it, this section
    requires the FSA to provide to an agent or an approved
    insurance provider (AIP) information that may assist the agent
    or AIP in insuring the producer.

    Sec. 11002. Publication of Information on Violations of Prohibition on
            Premium Adjustments

        Section 11002 requires the RMA to publish on its website
    violations of the prohibition to give rebates or discounts in
    premium in sufficient detail to serve as guidance to AIP,
    agents and producers.

    Sec. 11003. Supplemental Coverage Option

        Section 11003 establishes the new Supplemental Coverage
    Option to give a producer the option of purchasing additional
    coverage on an individual or area yield and loss basis or a
    margin basis. Coverage cannot exceed the difference between 90
    percent of the actual loss and the coverage level selected by
    the producer of the underlying policy or plan of insurance.

    Sec. 11004. Premium Amounts for Catastrophic Risk Protection

        Section 11004 requires a re-rating of the catastrophic risk
    protection premium.

    Sec. 11005. Repeal of Performance-Based Discount

        Section 11005 repeals unused authority for performance-
    based discounts.

    Sec. 11006. Permanent Enterprise Unit Subsidy

        Section 11006 makes permanent the Federal Crop Insurance
    Corporation (the Corporation) authority to pay a portion of the
    premiums for policies that insure on a enterprise unit basis.

    Sec. 11007. Enterprise Units for Irrigated and Non-Irrigated Crops

        Section 11007 requires enterprise units to be made
    available by practice (irrigated or non-irrigated).

    Sec. 11008. Data Collection

        Section 11008 allows the use of data collected by the Risk
    Management Agency, the National Agricultural Statistics
    Service, or both, to determine yields. Where sufficient county
    data is not available, this section authorizes the Secretary to
    use data from other sources.

    Sec. 11009. Adjustment in Actual Production History to Establish
            Insurable Yields

        Section 11009 increases the percentage of the applicable
    transitional yield used to replace excluded recorded or
    appraised yields from 60 percent to 70 percent.

    Sec. 11010. Submission and Review of Policies

        Section 11010 requires the Corporation to review policies
    developed under the research and development contracting
    authority at 522(c), or pilot program developed under 523, and
    submit to the Board for review policies that will likely result
    in viable and marketable policies, provide crop insurance in a
    significantly improved form, and adequately protect the
    interests of producers. This section also requires and
    encourages approval of certain policies.

    Sec. 11011. Equitable Relief for Specialty Crop Producers

        Section 11011 provides equitable relief on specialty crop
    policies that were disproportionately adversely impacted by the
    SRA but clarifies that Congress does not provide statutory
    assent to SRA provisions.

    Sec. 11012. Budget Limitations on Renegotiation of the Standard
            Reinsurance Agreement

        Section 11012 requires the Board to ensure budget
    neutrality to the maximum extent practicable, and return any
    savings realized in Standard Reinsurance Agreement
    renegotiations to specific crop insurance purposes.

    Sec. 11013. Crop Production on Native Sod

        Section 11013 availability on crop insurance to protect
    native sod.

    Sec. 11014. Coverage Levels by Practice

        Section 11014 allows producers to elect different coverage
    for both dry land and irrigated land.

    Sec. 11015. Beginning Farmer and Rancher Provisions

        Section 11015 provides beginning farmers and ranchers with
    additional premium assistance, enhanced T-yields, and the
    ability to use previous producer's APH or an assigned yield.

    Sec. 11016. Stacked Income Protection Plan for Producers of Upland
            Cotton

        Section 11016 requires a stacked income protection plan to
    be made available to upland cotton producers beginning with the
    2013 crop year.

    Sec. 11017. Peanut Revenue Crop Insurance

        Section 11017 creates a revenue crop insurance program for
    peanut producers, beginning in crop year 2013, using the
    effective price for peanuts equal to the Rotterdam price index,
    adjusted to reflect the farmer stock price of peanuts in the
    U.S.

    Sec. 11018. Authority to Correct Errors

        Section 11018 allows an insurance provider or agent to
    correct information to make it consistent with information a
    producer reported to FSA, provided the corrections do not allow
    the producer to obtain a disproportionate benefit or avoid any
    ineligibility requirements or legal obligations.

    Sec. 11019. Implementation

        Section 11019 requires the Secretary to maintain and
    upgrade information management systems and to implement an
    acreage report streamlining initiative.

    Sec. 11020. Research and Development Priorities

        Section 11020 make specialty crops, sweet sorghum, biomass
    sorghum, rice, peanuts and sugarcane a research and development
    priority.

    Sec.11021. Additional Research and Development Contracting Requirements

        Section 11021 lists additional research and development
    contracting priorities.

    Sec. 11022. Pilot Programs

        Section 11022 clarifies Corporation may conduct pilot
    programs at its sole discretion.

    Sec. 11023. Limitation on Expenditures for Livestock Pilot Programs

        Section 11023 increases the funding for livestock pilot
    program funding to $50 million per year.

    Sec. 11024. Noninsured Crop Assistance Program

        Section 11024 amends the noninsured crop assistance program
    (NAP) to allow for the purchase of additional NAP coverage for
    crops that do not otherwise have coverage under the Federal
    Crop Insurance Act.

    Sec. 11025. Technical Amendments

        Section 11025 makes technical amendments.

                            Title XII--Miscellaneous

                             SUBTITLE A--LIVESTOCK

    Sec. 12101. National Sheep Industry Improvement Center

        Section 12101 amends section 375 of the Consolidated Farm
    and Rural Development Act by reauthorizing the appropriations
    for the National Sheep Industry Improvement Center though
    fiscal year 2017, at the current level of $10,000,000 for each
    fiscal year.

    Sec. 12102. Trichinae Certification Program

        Section 12102 amends section 10405 of the Animal Health
    Protection Act by reauthorizing the Trichinae Certification
    Program through fiscal year 2017, at the current level of
    $1,500,000 to remain available until expended, as well as such
    additional sums as may be necessary.

    Sec. 12103. National Aquatic Animal Health Plan

        Section 12103 amends section 11013 of the Food,
    Conservation, and Energy Act of 2008 by reauthorizing the
    National Aquatic Animal Health Plan.

    Sec. 12104. Report on Compliance with World Trade Organization Decision
            Regarding Country of Origin Labeling

        Section 12104 requires the Secretary to submit a report to
    Congress, within 90 days of the date of enactment, detailing
    the steps the Secretary will take to make the United States
    compliant with the WTO decision on country of origin labeling.

    Sec. 12105. Repeal of Certain Regulations Under the Packers and
            Stockyard Act, 1912

        Subsection (a) repeals the requirement from the Food,
    Conservation, and Energy Act of 2008 that the Secretary
    promulgate regulations with respect to the Packers and
    Stockyards Act, 1921 that would establish criteria to consider
    in determining whether on undue or unreasonable preference has
    occurred, whether a live poultry dealer has provided reasonable
    notice of a suspension of delivery of birds, when a requirement
    of additional capital investments over the life of a poultry
    growing arrangement or a swine producing contract constitutes a
    violation of the Packers and Stockyards Act, and if a
    contractor has provided a reasonable period of time for a
    grower to remedy a breach of contract that could result in the
    termination of the arrangement or contract.
        Subsection (b) repeals provisions from the Code of Federal
    Regulations regarding capital investments, suspension of
    delivery of birds, applicability to live poultry dealers, and
    written 90 days notice of intent to suspend delivery of birds.
        Subsection (c) prohibits the Secretary from enforcing the
    provisions referred to in subsection (b). It further prohibits
    the Secretary from finalizing or implementing certain proposed
    regulations regarding the tournament system, the definitions of
    competitive injury and likelihood of competitive injury, unfair
    and unjustly discriminatory and deceptive practices or devices,
    and undue or unreasonable preferences or advantages/prejudice
    or disadvantage. Finally, subsection (c) prohibits the
    Secretary from either issuing regulations or adopting policies
    similar to the provisions referenced in subsections (b) and
    (c).

    Sec. 12106. Meat and Poultry Processing Report

        Section 12106 requires the Secretary to cooperate with
    States, processors and producers in developing a report on
    better meeting the needs of small and very small meat and
    poultry growers and processors and methods to create an
    electronic submission option for the meat label approval
    process. The report must be submitted to Congress not later
    than one year of the date of enactment of this Act.

       SUBTITLE B--SOCIALLY DISADVANTAGED PRODUCERS AND LIMITED RESOURCE
                                   PRODUCERS

    Sec. 12201. Outreach and Assistance for Socially Disadvantaged Farmers
            and Ranchers and Veteran Farmers and Ranchers

        Section 12201(a) amends section 2501 of the Food,
    Agriculture, Conservation, and Trade Act of 1990 to include
    veteran farmers and ranchers. The section makes available
    $10,000,000 in mandatory funding for each fiscal year 2013
    through 2017. The section also adds a new authorization of
    appropriations of $20,000,000 for each fiscal year 2013 through
    2017.
        Section 12201(b) includes a definition of the term
    ``veteran farmer or rancher''.

    Sec. 12202. Office of Advocacy and Outreach

        Section 12202 amends paragraph (3) of section 226B(f) of
    the Department of Agriculture Reorganization Act of 1994 to
    include an authorization of appropriations of $2,000,000 for
    each fiscal years 2013 through 2017.

                   SUBTITLE C--OTHER MISCELLANEOUS PROVISIONS

    Sec. 12301. Grants to Improve Supply, Stability, Safety, and Training
            of Agricultural Labor Force

        Section 12301 amends section 14204(d) of the Food,
    Conservation, and Energy Act of 2008 to include an
    authorization of appropriations of $10,000,000 for each fiscal
    year 2013 through 2017.

    Sec. 12302. Evaluation Required for Purposes of Prohibition on Closure
            or Relocation of County Offices for the Farm Service Agency

        Section 12302 amends section 14212 of the Food,
    Conservation, and Energy Act of 2008.
        Subsection (a) replaces the two year temporary prohibition
    on the closure or relocation of a FSA county or field office
    with a permanent prohibition on closure or relocation after the
    Secretary conducts an evaluation on the workload volume of the
    office compared to other county offices.
        Subsection (b) adds a new requirement that the Secretary
    conduct an evaluation of all workload assessments for Farm
    Service Agency county offices that were open and operational as
    of January 1, 2012.
        Subsection (c) amends the notice and public meeting
    requirement in order to conform to the amendments made in
    subsection (a).
        Subsection (d) in a conforming amendment related to the
    amendment made in subsection (b).

    Sec. 12303. Prohibition on Attending an Animal Fight or Causing a Minor
            To Attend an Animal Fight

        Section 12303 amends the Animal Welfare Act by making it
    unlawful to knowingly attend an animal fighting venture or to
    knowingly cause a minor to attend an animal fighting venture.
    The term ``minor'' is defined as a person under the age of 18
    years old.

    Sec. 12304. Program Benefit Eligibility Status for Participants in High
            Plains Water Study

        Section 12304 amends the Food, Conservation, and Energy Act
    of 2008 to continue to prevent producers and growers who are
    participating in a 1-time study of recharge potential for the
    Ogallala Aquifer in the High Plains of Texas from losing
    eligibility for programs under the Federal Agriculture Reform
    and Risk Management Act of 2012 solely as the result of
    participation.

    Sec. 12305. Office of Tribal Relations

        Subsection (a) amends Title II of the Department of
    Agriculture Reorganization Act of 1994 by requiring the
    Secretary to establish an Office of Tribal Relations, within
    the Office of the Secretary, to advise the Secretary on
    policies related to Indian Tribes.
        Subsection (b) is a conforming amendment within the Act.

    Sec. 12306. Military Veterans Agricultural Liaison

        The Department of Agriculture Reorganization Act of 1994 (7
    U.S.C. 6918) is amended to authorize the position of Military
    Veterans Agricultural Liaison (liaison) within the Department
    of Agriculture (Department). The liaison shall provide
    information to returning veterans and connect returning
    veterans with beginning farmer training and agricultural
    vocational and rehabilitation programs appropriate to the needs
    and interests of returning veterans. The liaison is also
    authorized to provide information to veterans concerning
    participation in agricultural programs, serve as a resource for
    assisting veteran farmers and ranchers and potential farmers
    and ranchers in applying for agricultural programs and serve as
    an advocate on behalf of veterans within the Department.

    Sec. 12307. Acer Access and Development Program

        Subsection (a) authorizes the Secretary to make grants to
    States, tribal governments, and research institutions to
    support their efforts to promote the domestic maple syrup
    industry.
        Subsection (b) enumerates information that shall be
    included in a grant application.
        Subsection (c) is the rule of construction so as to not
    preempt any State or tribal government law.
        Subsection (d) provides a definition for the term ``maple-
    sugaring''.

    Sec. 12308. Prohibition Against Interference by State and Local
            Governments with Production or Manufacture of Items in Other
            States

        Subsection (a) forbids State or local governments from
    imposing a standard or condition of the production or
    manufacture of any agricultural product that is sold or offered
    for sale in interstate commerce if production or manufacture
    occurs in another State and the imposed standard or condition
    is in addition to those pursuant to Federal law and the laws of
    the State or locality in which the production or manufacture
    occurs.
        Subsection (b) defines the term ``agricultural product'' as
    the term used in the Agricultural Marketing Act of 1946.

    Sec. 12309. Increased Protection for Agricultural Interests in the
            Missouri River Basin

        Directs the Secretary to take action to promote immediate
    increased flood protection for farmers, producers, and other
    agricultural interests in the Missouri River basin by working
    within his jurisdiction to support efforts to recalculate the
    amount of space within the System that is allocated to flood
    control storage using the 2011 flood as the model and increase
    the River's channel capacity between the reservoirs and below
    Gavins Point.

                            Committee Consideration

                                    HEARINGS

        In the 111th Congress, the Committee on Agriculture held 16
    farm bill hearings in preparation of the 2012 Farm Bill both in
    Washington, D.C. and across the country in nine different
    states. The Committee heard that in general, the 2008 Farm Bill
    was working well for most farmers and ranchers and is popular.
    However, Chairman Peterson cautioned that there would be no new
    money available to write the 2012 Farm Bill and asked farm bill
    stakeholders to take a look at current programs and to see if
    there are ways that we can better use the funding available to
    provide a safety net that will continue coverage for farmers
    and ranchers.
        Under the leadership and initiative of Chairman Lucas, the
    Committee continued the farm bill process with 11 audit
    hearings on agriculture programs to look for ways to improve
    programs for farmers, increase efficiency, and reduce spending.
    These hearings were followed-up with 7 subcommittee hearings to
    hear from national agricultural stakeholders advocating for
    policy priorities and 4 field hearings across the country to
    hear firsthand how U.S. farm policy is working for farmers and
    ranchers in advance of writing the legislation.

                          FULL COMMITTEE CONSIDERATION

        On July 11, 2012, the Committee on Agriculture met pursuant
    to notice, with a quorum present to consider H.R. 6083.
    Chairman Lucas made an opening statement as did Ranking Member
    Peterson.
        Chairman Lucas placed H.R. 6083 before the Committee and,
    without objection it was considered as original text for
    purposes of amendment and open to amendment at any point.
        Chairman Lucas stated that although the bill is open to
    amendment at any point, he encouraged that amendments be
    offered on a Title by Title basis. Without objection, Title I--
    Commodities was placed before the Committee for consideration
    and Counsel was recognized for a brief explanation.
        Mr. Goodlatte was recognized to offer and explain an
    amendment to remove the ``Dairy Producer Margin Protection and
    Dairy Market Stabilization Programs'' and replace it with a new
    ``Dairy Producer Margin Insurance Program''. Discussion
    occurred and by a roll call vote of 17 yeas to 29 nays, the
    amendment failed. See Roll Call #1.
        Mr. Baca offered an amendment that would add a Sense of
    Congress language regarding child labor in agriculture.
    Discussion occurred and the amendment was withdrawn.
        Mr. Cardoza was also recognized to offer and explain an
    amendment that provides dairy producers with the option of
    selecting an alternative method of calculating average feed
    cost within the margin insurance program. Discussion occurred
    and by a voice vote the amendment failed.
        Mr. Fortenberry was recognized to offer and explain an
    amendment that would place a limit on an individual of $50,000
    and $100,000 for a married couple payments under the Title I
    revenue and countercyclical commodity programs. Discussion
    occurred and the amendment was withdrawn.
        Mr. McIntyre was then recognized to offer and explain an
    amendment to allow USDA to share crop information with
    501(c)(5) nonprofit agricultural commodity marketing and
    promotion organizations for the purpose of implementing state
    based programs authorized by producer referendum. Discussion
    occurred and the amendment was withdrawn.
        Mr. Goodlatte was then recognized to offer and explain an
    amendment to reform sugar. Discussion occurred and by a roll
    call vote of 10 yeas to 36 nays the amendment failed. See Roll
    Call # 2.
        Mr. Boswell was recognized to offer and explain an
    amendment that would require all participants in the commodity
    title to be required to show a revenue loss to be eligible for
    a PLC or RLC payment. Discussion occurred and by a voice vote
    the amendment failed.
        Mr. Gibbs was also recognized to offer and explain an
    amendment to change the language for those that opt for the RLC
    program. The proposed language would require that the
    ``majority of owners'' to agree on the option for which the
    farmland is entered into. Therefore, eliminating the possible
    to ``veto power'' that one landowner might yield over multiple
    other owners. Discussion occurred and the amendment was
    withdrawn.
        Mr. Walz was then recognized to offer and explain an
    amendment that would allow dairy farmers to stay enrolled in
    the Milk Income Loss Contract (MILC) program during transition
    process to the new Dairy Producer Margin Program. Discussion
    occurred and the amendment was withdrawn.
        Mr. Crawford was recognized to offer and explain an
    amendment that would require a workload assessment to be
    implemented and provided to the public before any FSA county
    office closures take place. Discussion occurred and by a voice
    vote the amendment was adopted.
        Title II--Conservation was placed before the Committee for
    consideration.
        Mr. Costa was recognized to offer and explain an amendment
    that would reauthorize the Environmental Quality Incentive
    Program (EQIP) Conservation Innovation Grants and Payments for
    air quality concerns from agriculture operations at level
    funding of $37.5 million for fiscal year 2013 through 2017.
    Discussion occurred and by a roll call vote of 18 yeas to 26
    nays, the amendment failed. See Roll Call #3.
        Title III--Trade was placed before the Committee for
    consideration.
        Mr. Rooney was then recognized to offer and explain an
    amendment that allows USDA to establish the position of Under
    Secretary for Foreign Agricultural Services, which would be
    appointed by the President with the advice and consent of the
    Senate. Discussion occurred and by a voice vote the amendment
    was adopted.
        Title IV--Nutrition was placed before the Committee for
    consideration.
        Mrs. Schmidt was recognized to offer and explain an
    amendment that instructs the Secretary to exclude Medical
    Marijuana from being a deduction as a medical expense.
    Discussion occurred and by a voice vote the amendment was
    adopted.
        Mr. Johnson was then recognized to offer and explain an
    amendment that increases the focus within the Community Food
    Project (CFP) on participation of SNAP recipients at Farmers
    Markets. Discussion occurred and by a voice vote the amendment
    was adopted.
        Ms. Pingree was also recognized to offer and explain an
    amendment that would allow the use of SNAP benefits for the
    purchase of community-supported agriculture share (CSA).
    Discussion occurred and by a voice vote the amendment was
    adopted.
        Mrs. Roby was recognized to offer and explain an amendment
    that would require a state agency to verify income and
    eligibility or an immigration status verification system (such
    as Systematic Alien Verification for Entitlements Program) for
    carrying out the Supplemental Nutrition Assistance Program.
    Discussion occurred and by a voice vote the amendment was
    adopted.
        Mr. McGovern was recognized to offer and explain an
    amendment that would restore the $16.5 billion cut to the
    Supplemental Nutrition Assistance Program (SNAP) that is
    currently in the bill. Discussion occurred and by roll call
    vote of 15 yeas to 31 nays, the amendment failed. See Roll Call
    #4.
        Mr. Goodlatte was recognized to offer and explain an
    amendment that would require the Secretary to consider the
    impact of a new regulation on the cost of emergency feeding
    organizations. Discussion occurred and the amendment was
    withdrawn.
        Mr. Goodlatte was again recognized to offer and explain an
    amendment that would maximize the continuity of food product
    flow to Emergency Feeding Organizations throughout the year
    from mandatory food deliveries from the TEFAP programs to
    States. Discussion occurred and the amendment was withdrawn.
        Mr. Schrader was recognized to offer and explain an
    amendment that would delete Title IV of the underlying bill and
    replace it with Title IV of the Senate bill, S. 3240, the
    Agriculture Reform, Food, and Jobs Act of 2012. Discussion
    occurred and by a roll call vote of 15 yeas to 28 nays, the
    amendment failed. See Roll Call #5.
        Ms. Fudge was recognized to offer and explain an amendment
    that would ensure the Nation's underserved urban and rural
    communities have access to healthy food. Discussion occurred
    and the amendment was withdrawn.
        Mr. Conaway was recognized to offer and explain an
    amendment that strikes the language prohibiting approval of
    retail food stores with significant sales of excluded items.
    Discussion occurred and the amendment was withdrawn.
        Mr. Costa was recognized to offer and explain an amendment
    that would provide to states with the flexibility to enroll
    into innovative employment and training programs for SNAP
    recipients who are also receiving funds through the Temporary
    Assistance for Needy Families (TANF) programs. Discussion
    occurred and the amendment was withdrawn.
        Mr. King was recognized to offer and explain an amendment
    that would require all SNAP benefits in Puerto Rico to be
    delivered by EBT cards. Discussion occurred and by a roll call
    vote of 27 yeas to 19 nays, the amendment was adopted. See Roll
    Call #6.
        Ms. Pingree was recognized to offer and explain an
    amendment that would give more control to the States and local
    communities by authorizing schools with low annual commodity
    entitlement values (small rural school) to start making their
    own food purchases, provided USDA determines this would yield
    reduced administrative costs. Discussion occurred and by a
    voice vote the amendment was adopted.
        Mr. Huelskamp was recognized to offer and explain an
    amendment that restores to the bill all of the SNAP reforms
    passed by the Committee to fulfill its obligation under FY2013
    budget reconciliation. Discussion occurred and by roll call
    vote of 13 yeas to 33 nays, the amendment failed. See Roll Call
    #7.
        Mr. Cardoza was recognized to offer and explain an
    amendment that would strike Section 4203, restoring the
    Congressional intent for the Fresh Fruit and Vegetable Program
    by restoring the word ``Fresh'' into the title of the program.
    Mr. Ribble raised a point of order against the amendment.
    Discussion occurred and the amendment was withdrawn.
        Mrs. Roby was then recognized to offer and explain an
    amendment that would require households that receive SNAP
    benefits to provide proof of payment for their heating and
    cooling bill in order to qualify for the income deduction.
    Discussion occurred and by a roll call vote of 17 yeas to 27
    nays, the amendment failed. See Roll Call #8.
        Mr. Sablan was recognized to offer and explain an amendment
    that would require the Secretary of Agriculture to report to
    the House Committee on Agriculture and the Senate Committee on
    Agriculture, Nutrition, and Forestry on the costs of providing
    school lunches and other meals and supplements in the U.S.
    territories with a comparison of these costs to the national
    reimbursement rates provided under the Russell School Lunch Act
    and the Child Nutrition Act. Discussion occurred and the
    amendment was withdrawn.
        Mr. Goodlatte was recognized to offer and explain an
    amendment that would strike funds for advertising for SNAP and
    would transfer the saving for commodity purchases for food
    banks under TEFAP. Discussion occurred and by a voice vote the
    amendment was adopted.
        Mr. Neugebauer was recognized to offer and explain an
    amendment that would require $50 LIHEAP assistance per year to
    qualify for additional benefits under SNAP. Discussion occurred
    and by a voice vote the amendment failed.
        Mr. Conaway was recognized to offer and explain an
    amendment that would establish requirements consistent with
    other means-tested programs, for the electronic content and
    format of data used in the administration of the Supplemental
    Nutrition Assistance Program. Discussion occurred and by a
    voice vote the amendment was adopted.
        Mr. Huelskamp was recognized to offer and explain an
    amendment that would set the effective date for the
    Supplemental Utility Allowance reform for January 1, 2013, and
    eliminate the option for states to delay implementation by 180
    days. Discussion occurred and by a voice vote the amendment
    failed.
        Mr. Neugebauer was then recognized to offer and explain an
    amendment that would require states to submit a report once a
    year to ensure they are checking to make certain SNAP
    recipients are not deceased and are not dual-enrolled.
    Discussion occurred and by a voice vote the amendment was
    adopted.
        Title V--Credit was placed before the Committee for
    consideration.
        Ms. Fudge was recognized to offer and explain an amendment
    that would improve federal agricultural credit programs to
    better meet the needs of small, young, beginning, veteran and
    urban farmers and ranchers. Discussion occurred and by a voice
    vote the amendment was adopted.
        Ms. Fudge was again recognized to offer and explain an
    amendment that would lift the residential restriction and
    funding for Youth Operating Loans. Discussion occurred and by
    voice vote the amendment was adopted.
        Mr. Boswell was recognized to offer and explain an
    amendment that would repeal the term limits for FSA Guaranteed
    Loans which are currently capped at 15 years. Discussion
    occurred and by a voice vote the amendment failed.
        Mr. Fortenberry was recognized to offer and explain an
    amendment that would maintain eligibility for rural communities
    to compete for rural development funding. Discussion occurred
    and by a voice vote the amendment was withdrawn.
        Title VI--Rural Development was placed before the Committee
    for consideration.
        Mr. McIntyre was recognized to offer and explain an
    amendment that would direct $50 million dollars in mandatory
    spending to address the water and wastewater backlog at USDA.
    Discussion occurred and by a voice vote the amendment failed.
        Mr. Johnson was then recognized to offer and explain an
    amendment that would clarify the text of the bill that
    emphasizes the economic development aspect of broadband
    projects by connecting businesses to broadband networks.
    Discussion occurred and by a voice vote the amendment was
    adopted.
        Ms. Sewell was also recognized to offer and explain an
    amendment that would allow USDA to give priority to
    applications that are otherwise eligible and support strategic
    community and economic development plans on a multi-
    jurisdictional basis. Discussion occurred and by a roll call
    vote of 18 yeas to 26 nays, the amendment failed. See Roll Call
    #9.
        Mr. Gibson was recognized to offer and explain an amendment
    to increase the RUS Broadband Program authorization level from
    $25 million to $35 million. Discussion occurred and by a roll
    call vote of 20 yeas to 24 nays, the amendment failed. See Roll
    Call #10.
        Mr. Courtney was recognized to offer and explain an
    amendment that would clarify the definition of unincorporated
    areas to include municipally designed townships, villages,
    borough, county, or municipal subdivision. Discussion occurred
    and the amendment was withdrawn.
        Mr. Austin Scott was then recognized to offer and explain
    an amendment that would give greater flexibility within the
    purpose of the USDA Business and Industry Loan Program by
    including the term ``working capital'' as an approved purpose.
    Discussion occurred and by a voice vote the amendment was
    adopted.
        Ms. Pingree was recognized to offer and explain an
    amendment to remove the cap on Business and Industry (B&I)
    loans for local and regional enterprise loan guarantees.
    Discussion occurred and the amendment was withdrawn.
        Mr. Tipton was also recognized to offer and explain an
    amendment that would direct USDA to encourage to the maximum
    extent practicable, private or cooperative lends to finance
    rural water and waste disposal facilities by utilizing loan
    guarantees where possible. Discussion occurred and by a voice
    vote the amendment was adopted.
        Mr. Welch was then recognized to offer and explain an
    amendment to reauthorize the State Rural Development Councils.
    Discussion occurred and by a voice vote the amendment was
    adopted.
        Mr. Gibson was recognized to offer and explain an amendment
    that would increase the population threshold of rural areas and
    towns from 20,000 to 30,000 people for the Community Facility
    loans and grants program. Discussion occurred and by a voice
    vote the amendment failed.
        Mr. Walz was then recognized to offer and explain an
    amendment that would direct the Secretary of Agriculture to
    participate in the activities of the Surface Transportation
    Board (STB) on behalf of the interest of agriculture and rural
    America. Discussion occurred and by a voice vote the amendment
    was adopted.
        Mr. Huelskamp was also recognized to offer and explain an
    amendment that clarifies that privately financed infrastructure
    projects undertaken by the Rural Utilities Service borrowers
    are not considered to be a major federal action. Discussion
    occurred and by a voice vote the amendment was adopted.
        Title VII--Research, Extension, and Related Matters was
    placed before the Committee for consideration.
        Ms. Sewell was recognized to offer and explain an amendment
    that adds a new section that requires any recipient of a
    competition grant that is for commodity-specific or State-
    specific applied research or extension to raise a one-to-one
    match of funds. Discussion occurred and the amendment was
    withdrawn.
        Mr. Fortenberry was then recognized to offer and explain an
    amendment that provides training and technical assistance to
    beginning farmers and ranchers through competitive grants to
    land-grant institutions, community organizations, and other
    farm organizations. Discussion occurred and Mr. Fortenberry
    asked unanimous consent to strike the first three lines of the
    amendment. Without objection the amendment was revised and by a
    voice vote adopted.
        Mr. Baca was recognized to offer and explain an amendment
    regarding education and training programs for agriculture farm
    workers. Discussion occurred and by a roll call vote of 17 yeas
    to 25 nays, the amendment failed. See Roll Call #11.
        Mrs. Schmidt was also recognized to offer and explain an
    amendment that would authorize ongoing federal bed bug research
    funding. Discussion occurred and by a voice vote the amendment
    was adopted.
        Mr. Schrader was recognized to offer and explain an
    amendment that increases mandatory funding for the Specialty
    Crop Research Initiative by $10 million in each Fiscal Year
    beginning in FY2013. Discussion occurred and by a roll call
    vote of 19 yeas to 26 nays, the amendment failed. See Roll Call
    #12.
        Title VIII--Forestry was placed before the Committee for
    consideration.
        Mr. Thompson was recognized to offer and explain an
    amendment that will reinforce the U.S. Forest Service's
    categorical exclusion authorities for day-to-day, non-
    controversial activities. Discussion occurred and by a voice
    vote the amendment was adopted.
        Mrs. Noem was then recognized to offer and explain an
    amendment that would increase acres for categorical exclusion
    from 1,000 to 10,000 acres to be used for pin beetle mitigation
    efforts in USDA-designated areas as part of the National Forest
    Critical Area Response. Discussion occurred and by a voice vote
    the amendment was adopted.
        Mrs. Noem was again recognized to offer and explain an
    amendment that would authorize $200,000,000 annually for the
    National forest Critical Area Response to deal with insect
    infestations in USDA designated areas in national forests
    across the west that are battling pine beetle epidemics.
    Discussion occurred and the amendment was withdrawn.
        Mr. Schrader was recognized to offer and explain an
    amendment that creates a pilot program in the State of Oregon
    to allow for permanent timber production primarily on lands
    that have been previously harvested, ensuring a sustainable
    level of timber and forest products from federal lands to
    maintain and create jobs in the local timber industry. Mr.
    Goodlatte raised a point of order against the amendment that it
    contains subject matter within the Rule X jurisdiction of
    another committee. Chairman Lucas ruled that the amendment was
    not in order. Mr. Schrader appealed the ruling of the Chair.
    Mr. Goodlatte moved to table the motion to appeal the ruling of
    the Chair. By a voice vote, the motion to table the amendment
    was agreed to and the ruling of the Chair was sustained.
        Mr. Boswell was recognized to offer and explain an
    amendment that provides mandatory and discretionary funding
    levels to energy programs and repeals provisions prohibiting
    REAP funding of blender pumps. Discussion occurred and the
    amendment was withdrawn.
        Mrs. Noem was recognized to offer and explain an amendment
    that would replace the portion of the bill and allow for REAP
    funds to be use used for blender pumps. Discussion occurred and
    the amendment was withdrawn.
        Mr. Southerland was recognized to offer and explain an
    amendment that would include lumber within the U.S. Department
    of Agriculture's Biobased Marketing Program. Discussion
    occurred and the amendment was withdrawn.
        Mrs. Noem was recognized to offer and explain an amendment
    that adds another factor for the Secretary to consider when
    considering allocating BCAP project funds. Discussion occurred
    and by a voice vote the amendment was adopted.
        Title X--Horticulture was placed before the Committee for
    consideration.
        Mr. Welch was recognized to offer and explain an amendment
    that clarifies changes to allow the organic industry to
    petition USDA to establish an organic promotion order using the
    normal promotion order process. Discussion occurred and the
    amendment was withdrawn.
        Mrs. Schmidt was recognized to offer and explain an
    amendment that clarifies bed bugs as a vector organism and
    establishes an efficacy requirement for 25(b) or minimum risk
    pesticides labeled for the control of bed bugs and other public
    health pests. Discussion occurred and by a voice vote the
    amendment was adopted.
        Ms. Sewell was recognized to offer and explain an amendment
    that would require USDA to conduct a study on specialty crop
    production by small-holders, and women, minority, and socially
    disadvantaged farmers. Discussion occurred and by a voice vote
    the amendment was adopted.
        Mr. Fortenberry was recognized to offer and explain an
    amendment that prioritizes underserved communities, small and
    mid-sized farms, and capacity building for local and regional
    food systems. Discussion occurred and by a voice vote the
    amendment was adopted.
        Mr. Stutzman was then recognized to offer and explain an
    amendment to ensure due process for farmers and handlers by
    affirming the right to judicial review of suspension orders.
    Discussion occurred and by a voice vote the amendment was
    adopted.
        Mr. Costa was then recognized to offer and explain an
    amendment that would strike the repeal of the National Organic
    Certification Cost-Share Program and provide $22 million for
    producers to offset the fees associated with going through
    organic certification. Discussion occurred and by a roll call
    vote of 17 yeas to 27 nays, the amendment failed. See Roll Call
    #13.
        Mr. Ribble was recognized to offer and explain an amendment
    to the Specialty Block Grant program to allow for grants to be
    used for multistate research projects. Discussion occurred and
    by a voice vote the amendment was adopted.
        Title XI--Crop Insurance was placed before the Committee
    for consideration.
        Mr. McIntyre was recognized to offer and explain an
    amendment that would commission a study at USDA to assess the
    private market for business interruption insurance, determine
    what statutory authority would be needed for RMA to implement a
    business interruption policy for growers, and explore the
    feasibility and cost of such a policy if it were to be
    authorized. Discussion occurred and by a voice vote the
    amendment was adopted.
        Mr. Cardoza was then recognized to offer and explain an
    amendment that would allow private companies to offer
    alternative coverage to growers under the Revenue Loss Coverage
    (RLC) and Supplemental Coverage Option (SCO) programs if they
    can deliver index-bases supplemental coverage at comparable
    cost and meet strict accountability standards. Discussion
    occurred and the amendment was withdrawn.
        Mr. McIntyre was recognized to offer and explain an
    amendment that would increase the per farm liability limit from
    $1 million to $1.5 million in the Whole Farm Risk Management
    Insurance product. Discussion occurred and by a roll call vote
    of 19 yeas to 25 nays, the amendment failed. See Roll Call #14.
        Mr. Cardoza was also recognized to offer and explain an
    amendment that would direct USDA's Risk Management Agency to
    conduct a study into the feasibility of a crop insurance
    product that would cover producer's losses due to food safety
    recalls that they did not cause. Discussion occurred and by a
    voice vote the amendment was adopted.
        Mr. Welch was recognized to offer and explain an amendment
    that would encourage USDA's Risk Management Agency to complete
    the development of organic elections for crop insurance.
    Discussion occurred and by a voice vote the amendment was
    adopted.
        Mr. Walz was recognized to offer and explain an amendment
    that would strike language in the bill that reduces federal
    crop insurance subsidies on native sod that is put into
    production for the first four years in the National Prairie
    Pothole Priority Area. Chairman recognized himself to offer and
    explain a second degree amendment that would not include the
    States of Oklahoma and Texas as part of the Walz Amendment.
    Discussion occurred and Mr. Walz withdrew his amendment as did
    Chairman Lucas.
        Mr. Kissell was recognized to offer and explain an
    amendment to commission the USDA to study feasibility of
    creating an insurance program to protect poultry growers and
    companies in the event of a disease outbreak or other
    catastrophic loss event. Discussion occurred and by a voice
    vote the amendment was adopted.
        Title XII--Miscellaneous was placed before the Committee
    for consideration.
        Mr. McIntyre was recognized to offer and explain an
    amendment to extend authorization for appropriations for FY13
    through FY17 for the Southeast Crescent Regional Commission,
    the Northern Border Regional Commission and the Southwest
    Border Regional Commission. Mr. Conaway raised a point of order
    to the amendment because it related to subject matter within
    Rule X jurisdiction of another committee. Chairman Lucas ruled
    that the amendment was not in order. Mr. McIntyre appealed the
    ruling of the Chair. Mr. Conaway moved to table the motion to
    appeal the ruling of the Chair. By voice vote, the motion to
    table the appeal was agreed to. Mr. McIntyre asked for a
    recorded vote on the motion to table the appeal to the point of
    order on the McIntyre amendment. The results of the recorded
    vote were 25 yeas to 20 nays. The motion to table the appeal
    was adopted and the ruling of the Chair was sustained. See Roll
    Call #15.
        Mrs. Roby was then recognized to offer and explain an
    amendment to modify the Safe Drinking Water Act to allow water
    utilities to post their annual consumer confidence reports
    online, saving time as well as printing and mailing costs. Mr.
    Conaway raised a point of order against the amendment.
    Discussion occurred and the amendment was withdrawn.
        Mr. Schrader was recognized to offer and explain an
    amendment to authorize Wildlife Services to provide Explosive
    Pest Control Devices or ``cracker shells'' to farmers who are
    permitted to use such devices for bird and wildlife pest
    hazing. Discussion occurred and the amendment was withdrawn.
        Mr. King was recognized to offer and explain an amendment
    that would reinforce the Commerce Clause by asserting the right
    of a state to trade agricultural products with another state.
    Discussion occurred and by a voice vote the amendment was
    adopted.
        Mr. Boswell was recognized to offer and explain an
    amendment that created a Military Veterans Agricultural Liaison
    within the USDA to educate returning veterans about farming and
    connect them with beginning farmer training programs.
    Discussion occurred and by a voice vote the amendment was
    adopted.
        Mr. Neugebauer was recognized to offer and explain an
    amendment that would require USDA to turn in a report not later
    than 90 days after the enactment date of the Act to the
    Committee on Agriculture, Nutrition, and Forestry of the Senate
    and the Committee on Agriculture of the House of
    Representatives detailing the steps the Secretary will take so
    that the United States is in compliance with the decision of
    the World Trade Organization regarding Country of Origin
    Labeling. Discussion occurred and by a roll call vote of 34
    yeas to 12 nays, the amendment was adopted. See Roll Call #16.
        Mr. Welch was recognized to offer and explain an amendment
    that would authorize the Secretary to make grants to states,
    tribal government, and research institutions to research,
    promote and expand access to lands for maple sugaring.
    Discussion occurred and by roll call vote of 25 yeas to 21
    nays, the amendment was adopted. See Roll Call #17.
        Mr. Hartzler was then recognized to offer and explain an
    amendment that repeals a provision of Food, Conservation, and
    Energy Act of 2008 establishing a USDA inspection and grading
    program for catfish and other species of farm-raised fish. Mr.
    Baca raised a point of order against the amendment but the
    point of order was later withdrawn. Discussion occurred and by
    a roll call vote of 20 yeas to 25 nays, the amendment failed.
    See Roll Call #18.
        Mr. David Scott was also recognized to offer and explain an
    amendment that will clarify the rules governing the sugar trade
    between the United States and Columbia under the United States-
    Colombia Trade Promotion Agreement in a manner similar to that
    under other U.S. Free Trade Agreements with sugar-producing
    countries. Mr. Conaway raised a point of order against the
    amendment. Discussion occurred and the amendment was withdrawn.
        Mrs. Noem was recognized to offer and explain an amendment
    that would permanently establish an Office of Tribal Relations
    with the Office of the Secretary of Agriculture to ensure
    Tribal consultation and Tribal access to USDA programs.
    Discussion occurred and by a voice vote the amendment was
    adopted.
        Mr. McGovern was recognized to offer and explain an
    amendment that would close a loophole related to spectators at
    animal fighting ventures. Discussion occurred and by roll call
    vote of 26 yeas to 19 nays, the amendment was adopted. See Roll
    Call #19.
        Mr. Neugebauer was recognized to offer and explain an
    amendment that would continue a provision from the 2008 Farm
    Bill that would prevent producers and growers from losing
    eligibility for any program under the Federal Agricultural
    Reform and Risk Management Act of 2012 solely as a result of
    participating in a 1-time study of recharge potential for the
    Ogallala Aquifer in the High Plains of the State of Texas.
    Discussion occurred and by a voice vote the amendment was
    adopted.
        Ms. Pingree was recognized to offer and explain an
    amendment that provides for the Secretary to cooperate with
    States, processors and growers in submitting a report to
    Congress within 12 months of enactment of the bill. Discussion
    occurred and by a voice vote the amendment was adopted.
        Mr. King was recognized to offer and explain an amendment
    that directs the Secretary of Agriculture to take action,
    within his jurisdiction to promote immediate increased flood
    protection for farmers, producers, and other agricultural
    interests in the Missouri River Basin. Mr. Boswell was
    recognized to offer an amendment in the second degree that
    would add agribusinesses in Hamburg, Iowa. Mr. Conaway raised a
    point of order, discussion occurred and the point of order was
    vacated. By a voice vote the King amendment was adopted, as
    amended by the Boswell amendment.
        Mr. Conaway was then recognized to offer and explain an
    amendment that prevents the Grain Inspection, Packers and
    Stockyards Administration from doing any further work on the
    GIPSA rulemaking that resulted from the 2008 Farm Bill by
    repealing section 11006 of the Food, Conservation, and Energy
    Act of 2008. Discussion occurred and by a voice vote the
    amendment was adopted.
        Mrs. Hartzler was recognized to offer and explain an
    amendment that authorizes the Secretary of Agriculture acting
    through Agricultural Research Service to provide greater
    outreach and educational opportunities to the ``Socially
    Disadvantaged Farmers and Ranchers, and Veteran Farmers and
    Ranchers'' program by engaging in cooperative agreements with
    universities and non-profit organizations. Discussion occurred
    and by a voice vote the amendment failed.
        Mr. Huelskamp was recognized to offer and explain an
    amendment that prohibits the EPA from regulating coarse
    particulate matter from activities common in rural areas or
    from natural sources. Discussion occurred and the amendment was
    withdrawn.
        Mr. Huelskamp was again recognized to offer and explain an
    amendment that defines ``water of the United States'' and
    ``navigable waters'' for the purposes of regulation by the EPA.
    Discussion occurred and the amendment was withdrawn.
        There being no further amendments, Mr. Peterson moved that
    H.R. 6083, as amended, be adopted and reported favorably to the
    House with the recommendation that it pass. By a roll call vote
    of 35 yeas to 11 nays, motion was agreed to in the presence of
    a quorum. See Roll Call #20.
        Mr. Peterson moved that the Chairman, after consultation
    with the Ranking Member, be authorized to make such adjustments
    to the spending levels in the reported version of the bill as
    are necessary. Without objection, the motion was agreed to.
        Chairman Lucas informed Committee Members who wished to
    file supplemental, minority, or additional views to the bill to
    transmit them to the Counsel's Office.
        Without objection, staff was given permission to make any
    necessary clerical, technical or conforming changes to reflect
    the intent of the Committee.
        Chairman Lucas thanked all the members for their
    attentiveness and good work and adjourned the meeting.

                      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. 6083.

                                  ROLL CALL #1

        Summary: Amendment to Title I of H.R. 6083 that would
    remove ``Dairy Producer Margin Protection and Dairy Market
    Stabilization Programs'' and replace it with a new ``Dairy
    Producer Margin Insurance Program''.
        Offered By: Representative Bob Goodlatte
        Results: Amendment failed by a vote of 17 yeas, 29 nays.

                                      YEAS

     1. Mr. Goodlatte                   10. Mr. Southerland
     2. Mr. King                        11. Mr. Huelskamp
     3. Mr. Neugebauer                  12. Mr. DesJarlais
     4. Mr. Fortenberry                 13. Mrs. Ellmers
     5. Mrs. Schmidt                    14. Mr. Hultgren
     6. Mr. Thompson                    15. Mr. Ribble
     7. Mr. Rooney                      16. Mr. David Scott
     8. Mr. Gibbs                       17. Ms. Fudge
     9. Mr. Tipton

                                      NAYS

     1. Mr. Lucas                       16. Mr. Baca
     2. Mr. Johnson                     17. Mr. Cardoza
     3. Mr. Conaway                     18. Mr. Cuellar
     4. Mr. Stutzman                    19. Mr. Costa
     5. Mr. Austin Scott                20. Mr. Walz
     6. Mr. Crawford                    21. Mr. Schrader
     7. Mrs. Roby                       22. Mr. Kissell
     8. Mr. Gibson                      23. Mr. Owens
     9. Mrs. Hartzler                   24. Ms. Pingree
    10. Mr. Schilling                   25. Mr. Courtney
    11. Mrs. Noem                       26. Mr. Welch
    12. Mr. Peterson                    27. Mr. Sablan
    13. Mr. Holden                      28. Ms. Sewell
    14. Mr. McIntyre                    29. Mr. McGovern
    15. Mr. Boswell

                                  ROLL CALL #2

        Summary: Amendment to Title I of H.R. 6083 that would
    repeal the Feedstock Flexibility Program, repeal unnecessary
    trade restrictions, eliminate higher price support levels,
    reform domestic supply restrictions to provide more flexibility
    to USDA, and provide flexibility to USDA in administering sugar
    policies.
        Offered By: Representative Bob Goodlatte
        Results: Amendment failed by a vote of 10 yeas, 36 nays.

                                      YEAS

     1. Mr. Goodlatte                    6. Mr. Huelskamp
     2. Mr. Johnson                      7. Mr. DesJarlais
     3. Mr. Neugebauer                   8. Mr. Ribble
     4. Mr. Thompson                     9. Mr. David Scott
     5. Mr. Stutzman                    10. Ms. Fudge

                                      NAYS

     1. Mr. Lucas                       19. Mr. Peterson
     2. Mr. King                        20. Mr. Holden
     3. Mr. Conaway                     21. Mr. McIntyre
     4. Mr. Fortenberry                 22. Mr. Boswell
     5. Mrs. Schmidt                    23. Mr. Baca
     6. Mr. Rooney                      24. Mr. Cardoza
     7. Mr. Gibbs                       25. Mr. Cuellar
     8. Mr. Austin Scott                26. Mr. Costa
     9. Mr. Tipton                      27. Mr. Walz
    10. Mr. Southerland                 28. Mr. Schrader
    11. Mr. Crawford                    29. Mr. Kissell
    12. Mrs. Roby                       30. Mr. Owens
    13. Mrs. Ellmers                    31. Ms. Pingree
    14. Mr. Gibson                      32. Mr. Courtney
    15. Mr. Hultgren                    33. Mr. Welch
    16. Mrs. Hartzler                   34. Mr. Sablan
    17. Mr. Schilling                   35. Ms. Sewell
    18. Mrs. Noem                       36. Mr. McGovern

                                  ROLL CALL #3

        Summary: Amendment to Title II of H.R. 6083 that would
    extend authorization of EQIP for air quality concerns.
        Offered By: Representative Jim Costa
        Results: Amendment failed by a vote of 18 yeas, 26 nays,
    and 2 not voting.

                                      YEAS

     1. Mr. Tipton                      10. Mr. Schrader
     2. Mr. Gibson                      11. Mr. Kissell
     3. Mr. Boswell                     12. Mr. Owens
     4. Mr. Baca                        13. Ms. Pingree
     5. Mr. Cardoza                     14. Mr. Courtney
     6. Mr. David Scott                 15. Mr. Welch
     7. Mr. Cuellar                     16. Mr. Sablan
     8. Mr. Costa                       17. Ms. Sewell
     9. Mr. Walz                        18. Mr. McGovern

                                      NAYS

     1. Mr. Lucas                       14. Mr. Southerland
     2. Mr. Goodlatte                   15. Mr. Crawford
     3. Mr. Johnson                     16. Mrs. Roby
     4. Mr. King                        17. Mr. Huelskamp
     5. Mr. Neugebauer                  18. Mr. DesJarlais
     6. Mr. Conaway                     19. Mr. Hultgren
     7. Mr. Fortenberry                 20. Mrs. Hartzler
     8. Mrs. Schmidt                    21. Mr. Schilling
     9. Mr. Thompson                    22. Mr. Ribble
    10. Mr. Rooney                      23. Mrs. Noem
    11. Mr. Stutzman                    24. Mr. Peterson
    12. Mr. Gibbs                       25. Mr. Holden
    13. Mr. Austin Scott                26. Mr. McIntyre

                                   NOT VOTING

     1. Mrs. Ellmers                     2. Ms. Fudge

                                  ROLL CALL #4

        Summary: Amendment to Title IV of H.R. 6083 that would
    strike sections 4004, 4005, and 4011.
        Offered By: Representative Jim McGovern
        Results: Amendment failed by a vote of 15 yeas, 31 nays.

                                      YEAS

     1. Mr. Boswell                      9. Ms. Pingree
     2. Mr. Baca                        10. Mr. Courtney
     3. Mr. Cardoza                     11. Mr. Welch
     4. Mr. David Scott                 12. Ms. Fudge
     5. Mr. Cuellar                     13. Mr. Sablan
     6. Mr. Costa                       14. Ms. Sewell
     7. Mr. Walz                        15. Mr. McGovern
     8. Mr. Kissell

                                      NAYS

     1. Mr. Lucas                       17. Mrs. Roby
     2. Mr. Goodlatte                   18. Mr. Huelskamp
     3. Mr. Johnson                     19. Mr. DesJarlais
     4. Mr. King                        20. Mrs. Ellmers
     5. Mr. Neugebauer                  21. Mr. Gibson
     6. Mr. Conaway                     22. Mr. Hultgren
     7. Mr. Fortenberry                 23. Mrs. Hartzler
     8. Mrs. Schmidt                    24. Mr. Schilling
     9. Mr. Thompson                    25. Mr. Ribble
    10. Mr. Rooney                      26. Mrs. Noem
    11. Mr. Stutzman                    27. Mr. Peterson
    12. Mr. Gibbs                       28. Mr. Holden
    13. Mr. Austin Scott                29. Mr. McIntyre
    14. Mr. Tipton                      30. Mr. Schrader
    15. Mr. Southerland                 31. Mr. Owens
    16. Mr. Crawford

                                  ROLL CALL #5

        Summary: Amendment to Title IV of H.R. 6083 that would
    strike Title IV and insert it with Title IV from S. 3240.
        Offered By: Representative Kurt Schrader
        Results: Amendment failed by a vote of 15 yeas, 28 nays,
    and 3 not voting.

                                      YEAS

     1. Mr. Gibson                       9. Mr. Walz
     2. Mr. McIntyre                    10. Mr. Schrader
     3. Mr. Boswell                     11. Mr. Kissell
     4. Mr. Baca                        12. Mr. Owens
     5. Mr. Cardoza                     13. Ms. Pingree
     6. Mr. David Scott                 14. Mr. Courtney
     7. Mr. Cuellar                     15. Mr. Welch
     8. Mr. Costa

                                      NAYS

     1. Mr. Lucas                       15. Mr. Crawford
     2. Mr. Goodlatte                   16. Mrs. Roby
     3. Mr. King                        17. Mr. Huelskamp
     4. Mr. Neugebauer                  18. Mr. DesJarlais
     5. Mr. Conaway                     19. Mrs. Ellmers
     6. Mr. Fortenberry                 20. Mr. Hultgren
     7. Mrs. Schmidt                    21. Mrs. Hartzler
     8. Mr. Thompson                    22. Mr. Schilling
     9. Mr. Rooney                      23. Mr. Ribble
    10. Mr. Stutzman                    24. Mrs. Noem
    11. Mr. Gibbs                       25. Mr. Peterson
    12. Mr. Austin Scott                26. Mr. Holden
    13. Mr. Tipton                      27. Mr. Sablan
    14. Mr. Southerland                 28. Mr. McGovern

                                   NOT VOTING

     1. Mr. Johnson                      3. Ms. Sewell
     2. Ms. Fudge

                                  ROLL CALL #6

        Summary: Amendment to Title IV of H.R. 6083 that would
    require all SNAP benefits in Puerto Rico be delivered by EBT
    cards.
        Offered By: Representative Steve King
        Results: Amendment adopted by a vote of 27 yeas, 19 nays.

                                      YEAS

     1. Mr. Lucas                       15. Mr. Southerland
     2. Mr. Goodlatte                   16. Mr. Crawford
     3. Mr. Johnson                     17. Mrs. Roby
     4. Mr. King                        18. Mr. Huelskamp
     5. Mr. Neugebauer                  19. Mr. DesJarlais
     6. Mr. Conaway                     20. Mrs. Ellmers
     7. Mr. Fortenberry                 21. Mr. Hultgren
     8. Mrs. Schmidt                    22. Mrs. Hartzler
     9. Mr. Thompson                    23. Mr. Schilling
    10. Mr. Rooney                      24. Mr. Ribble
    11. Mr. Stutzman                    25. Mrs. Noem
    12. Mr. Gibbs                       26. Mr. McIntyre
    13. Mr. Austin Scott                27. Mr. Cuellar
    14. Mr. Tipton

                                      NAYS

     1. Mr. Gibson                      11. Mr. Kissell
     2. Mr. Peterson                    12. Mr. Owens
     3. Mr. Holden                      13. Ms. Pingree
     4. Mr. Boswell                     14. Mr. Courtney
     5. Mr. Baca                        15. Mr. Welch
     6. Mr. Cardoza                     16. Ms. Fudge
     7. Mr. David Scott                 17. Mr. Sablan
     8. Mr. Costa                       18. Ms. Sewell
     9. Mr. Walz                        19. Mr. McGovern
    10. Mr. Schrader

                                  ROLL CALL #7

        Summary: Amendment to Title IV of H.R. 6083 that would
    restore all SNAP reforms passed by the Committee to fulfill
    their obligation under FY 2013 budget reconciliation.
        Offered By: Representative Tim Huelskamp
        Results: Amendment failed by a vote of 13 yeas, 33 nays.

                                      YEAS

     1. Mr. Goodlatte                    8. Mrs. Roby
     2. Mr. King                         9. Mr. Huelskamp
     3. Mr. Neugebauer                  10. Mr. DesJarlais
     4. Mr. Stutzman                    11. Mrs. Ellmers
     5. Mr. Gibbs                       12. Mrs. Hartzler
     6. Mr. Austin Scott                13. Mr. Ribble
     7. Mr. Southerland

                                      NAYS

     1. Mr. Lucas                       18. Mr. Baca
     2. Mr. Johnson                     19. Mr. Cardoza
     3. Mr. Conaway                     20. Mr. David Scott
     4. Mr. Fortenberry                 21. Mr. Cuellar
     5. Mrs. Schmidt                    22. Mr. Costa
     6. Mr. Thompson                    23. Mr. Walz
     7. Mr. Rooney                      24. Mr. Schrader
     8. Mr. Tipton                      25. Mr. Kissell
     9. Mr. Crawford                    26. Mr. Owens
    10. Mr. Gibson                      27. Ms. Pingree
    11. Mr. Hultgren                    28. Mr. Courtney
    12. Mr. Schilling                   29. Mr. Welch
    13. Mrs. Noem                       30. Ms. Fudge
    14. Mr. Peterson                    31. Mr. Sablan
    15. Mr. Holden                      32. Ms. Sewell
    16. Mr. McIntyre                    33. Mr. McGovern
    17. Mr. Boswell

                                  ROLL CALL #8

        Summary: Amendment to Title IV of H.R. 6083 that would
    require proof of payment for income deductions for households
    that receive SNAP benefits.
        Offered By: Representative Martha Roby
        Results: Amendment failed by a vote of 17 yeas, 27 nays,
    and 2 not voting.

                                      YEAS

     1. Mr. Goodlatte                   10. Mrs. Roby
     2. Mr. Johnson                     11. Mr. Huelskamp
     3. Mr. King                        12. Mr. DesJarlais
     4. Mr. Neugebauer                  13. Mrs. Ellmers
     5. Mr. Rooney                      14. Mrs. Hartzler
     6. Mr. Stutzman                    15. Mr. Schilling
     7. Mr. Gibbs                       16. Mr. Ribble
     8. Mr. Austin Scott                17. Mrs. Noem
     9. Mr. Southerland

                                      NAYS

     1. Mr. Lucas                       15. Mr. Cuellar
     2. Mr. Conaway                     16. Mr. Costa
     3. Mr. Fortenberry                 17. Mr. Walz
     4. Mrs. Schmidt                    18. Mr. Schrader
     5. Mr. Tipton                      19. Mr. Kissell
     6. Mr. Crawford                    20. Mr. Owens
     7. Mr. Gibson                      21. Ms. Pingree
     8. Mr. Hultgren                    22. Mr. Courtney
     9. Mr. Peterson                    23. Mr. Welch
    10. Mr. McIntyre                    24. Ms. Fudge
    11. Mr. Boswell                     25. Mr. Sablan
    12. Mr. Baca                        26. Ms. Sewell
    13. Mr. Cardoza                     27. Mr. McGovern
    14. Mr. David Scott

                                   NOT VOTING

     1. Mr. Thompson                     2. Mr. Holden

                                  ROLL CALL #9

        Summary: Amendment to Title VI of H.R. 6083 that would
    create a universal priority across all rural development
    programs for applications which support strategic community and
    economic development plans on a multijurisdictional basis.
        Offered By: Representative Terri Sewell
        Results: Amendment failed by a vote of 18 yeas, 26 nays,
    and 2 not voting.

                                      YEAS

     1. Mr. Austin Scott                10. Mr. Schrader
     2. Mr. Gibson                      11. Mr. Kissell
     3. Mr. Schilling                   12. Mr. Owens
     4. Mr. McIntyre                    13. Ms. Pingree
     5. Mr. Boswell                     14. Mr. Courtney
     6. Mr. Baca                        15. Mr. Welch
     7. Mr. David Scott                 16. Mr. Sablan
     8. Mr. Costa                       17. Ms. Sewell
     9. Mr. Walz                        18. Mr. McGovern

                                      NAYS

     1. Mr. Lucas                       14. Mr. Southerland
     2. Mr. Goodlatte                   15. Mr. Crawford
     3. Mr. Johnson                     16. Mrs. Roby
     4. Mr. King                        17. Mr. Huelskamp
     5. Mr. Neugebauer                  18. Mr. DesJarlais
     6. Mr. Conaway                     19. Mrs. Ellmers
     7. Mr. Fortenberry                 20. Mr. Hultgren
     8. Mrs. Schmidt                    21. Mrs. Hartzler
     9. Mr. Thompson                    22. Mr. Ribble
    10. Mr. Rooney                      23. Mrs. Noem
    11. Mr. Stutzman                    24. Mr. Peterson
    12. Mr. Gibbs                       25. Mr. Holden
    13. Mr. Tipton                      26. Mr. Cuellar

                                   NOT VOTING

     1. Mr. Cardoza                      2. Ms. Fudge

                                 ROLL CALL #10

        Summary: Amendment to Title VI of H.R. 6083 that would
    increase the RUS Broadband Program authorization level from $25
    million to $35 million and directs Appropriators to make not
    less than $25 million available for loans and not more than $10
    million available for grants. Grants must be made in
    combination with a loan where the grant does not exceed 10
    percent of the cost of the project, and the eligible entity
    provides matching funds from non-Federal sources.
        Offered By: Representative Chris Gibson
        Results: Amendment failed by a vote of 20 yeas, 24 nays,
    and 2 not voting.

                                      YEAS

     1. Mr. Austin Scott                11. Mr. Costa
     2. Mr. Tipton                      12. Mr. Walz
     3. Mr. Gibson                      13. Mr. Schrader
     4. Mrs. Noem                       14. Mr. Kissell
     5. Mr. Peterson                    15. Mr. Owens
     6. Mr. Holden                      16. Ms. Pingree
     7. Mr. McIntyre                    17. Mr. Courtney
     8. Mr. Boswell                     18. Ms. Fudge
     9. Mr. Baca                        19. Mr. Sablan
    10. Mr. Cuellar                     20. Mr. McGovern

                                      NAYS

     1. Mr. Lucas                       13. Mr. Southerland
     2. Mr. Goodlatte                   14. Mr. Crawford
     3. Mr. Johnson                     15. Mrs. Roby
     4. Mr. King                        16. Mr. Huelskamp
     5. Mr. Neugebauer                  17. Mr. DesJarlais
     6. Mr. Conaway                     18. Mrs. Ellmers
     7. Mr. Fortenberry                 19. Mr. Hultgren
     8. Mrs. Schmidt                    20. Mrs. Hartzler
     9. Mr. Thompson                    21. Mr. Schilling
    10. Mr. Rooney                      22. Mr. Ribble
    11. Mr. Stutzman                    23. Mr. David Scott
    12. Mr. Gibbs                       24. Mr. Welch

                                   NOT VOTING

     1. Mr. Cardoza                      2. Ms. Sewell

                                 ROLL CALL #11

        Summary: Amendment to Title VII of H.R. 6083 regarding
    education and training programs for agriculture farm workers.
        Offered By: Representative Joe Baca
        Results: Amendment failed by a vote of 17 yeas, 25 nays,
    and 4 not voting.

                                      YEAS

     1. Mr. Gibson                      10. Mr. Walz
     2. Mr. Peterson                    11. Mr. Schrader
     3. Mr. Holden                      12. Mr. Kissell
     4. Mr. Boswell                     13. Mr. Owens
     5. Mr. Baca                        14. Mr. Welch
     6. Mr. Cardoza                     15. Ms. Fudge
     7. Mr. David Scott                 16. Mr. Sablan
     8. Mr. Cuellar                     17. Mr. McGovern
     9. Mr. Costa

                                      NAYS

     1. Mr. Lucas                       14. Mr. Tipton
     2. Mr. Goodlatte                   15. Mr. Southerland
     3. Mr. Johnson                     16. Mr. Crawford
     4. Mr. King                        17. Mrs. Roby
     5. Mr. Neugebauer                  18. Mr. Huelskamp
     6. Mr. Conaway                     19. Mr. DesJarlais
     7. Mr. Fortenberry                 20. Mrs. Ellmers
     8. Mrs. Schmidt                    21. Mr. Hultgren
     9. Mr. Thompson                    22. Mrs. Hartzler
    10. Mr. Rooney                      23. Mr. Schilling
    11. Mr. Stutzman                    24. Mr. Ribble
    12. Mr. Gibbs                       25. Mrs. Noem
    13. Mr. Austin Scott

                                   NOT VOTING

     1. Mr. McIntyre                    3. Mr. Courtney
     2. Ms. Pingree                     4. Ms. Sewell

                                 ROLL CALL #12

        Summary: Amendment to Title VII of H.R. 6083 to increase
    mandatory funding for the Specialty Crop Research initiative.
        Offered By: Representative Kurt Schrader
        Results: Amendment failed by a vote of 19 yeas, 26 nays,
    and 1 not voting.

                                      YEAS

     1. Mr. Rooney                      11. Mr. Schrader
     2. Mr. Gibson                      12. Mr. Kissell
     3. Mr. McIntyre                    13. Mr. Owens
     4. Mr. Boswell                     14. Ms. Pingree
     5. Mr. Baca                        15. Mr. Courtney
     6. Mr. Cardoza                     16. Mr. Welch
     7. Mr. David Scott                 17. Ms. Fudge
     8. Mr. Cuellar                     18. Mr. Sablan
     9. Mr. Costa                       19. Mr. McGovern
    10. Mr. Walz

                                      NAYS

     1. Mr. Lucas                       14. Mr. Southerland
     2. Mr. Goodlatte                   15. Mr. Crawford
     3. Mr. Johnson                     16. Mrs. Roby
     4. Mr. King                        17. Mr. Huelskamp
     5. Mr. Neugebauer                  18. Mr. DesJarlais
     6. Mr. Conaway                     19. Mrs. Ellmers
     7. Mr. Fortenberry                 20. Mr. Hultgren
     8. Mrs. Schmidt                    21. Mrs. Hartzler
     9. Mr. Thompson                    22. Mr. Schilling
    10. Mr. Stutzman                    23. Mr. Ribble
    11. Mr. Gibbs                       24. Mrs. Noem
    12. Mr. Austin Scott                25. Mr. Peterson
    13. Mr. Tipton                      26. Mr. Holden

                                   NOT VOTING

     1. Ms. Sewell

                                 ROLL CALL #13

        Summary: Amendment to Title X of H.R. 6083 to restore the
    National Organic Certification Cost-Share Program.
        Offered By: Representative Jim Costa.
        Results: Amendment failed by a vote of 17 yeas, 27 nays,
    and 2 not voting.

                                      YEAS

     1. Mr. Gibson                      10. Mr. Schrader
     2. Mr. Ribble                      11. Mr. Kissell
     3. Mr. Boswell                     12. Mr. Owens
     4. Mr. Baca                        13. Ms. Pingree
     5. Mr. Cardoza                     14. Mr. Courtney
     6. Mr. David Scott                 15. Mr. Sablan
     7. Mr. Cuellar                     16. Ms. Sewell
     8. Mr. Costa                       17. Mr. McGovern
     9. Mr. Walz

                                      NAYS

     1. Mr. Lucas                       15. Mr. Southerland
     2. Mr. Goodlatte                   16. Mr. Crawford
     3. Mr. Johnson                     17. Mrs. Roby
     4. Mr. King                        18. Mr. Huelskamp
     5. Mr. Neugebauer                  19. Mr. DesJarlais
     6. Mr. Conaway                     20. Mrs. Ellmers
     7. Mr. Fortenberry                 21. Mr. Hultgren
     8. Mrs. Schmidt                    22. Mrs. Hartzler
     9. Mr. Thompson                    23. Mr. Schilling
    10. Mr. Rooney                      24. Mrs. Noem
    11. Mr. Stutzman                    25. Mr. Peterson
    12. Mr. Gibbs                       26. Mr. Holden
    13. Mr. Austin Scott                27. Mr. McIntyre
    14. Mr. Tipton

                                   NOT VOTING

     1. Mr. Welch                       2. Ms. Fudge

                                 ROLL CALL #14

        Summary: Amendment to Title XI of H.R. 6083 to increase the
    per farm limit from $1 million to $1.5 million in the Whole
    Farm Risk Management Insurance product.
        Offered By: Representative Mike McIntyre.
        Results: Amendment failed by a vote of 19 yeas, 25 nays,
    and 2 not voting.

                                      YEAS

     1. Mr. Gibson                      11. Mr. Kissell
     2. Mr. Peterson                    12. Mr. Owens
     3. Mr. Holden                      13. Ms. Pingree
     4. Mr. McIntyre                    14. Mr. Courtney
     5. Mr. Boswell                     15. Mr. Welch
     6. Mr. Baca                        16. Ms. Fudge
     7. Mr. David Scott                 17. Mr. Sablan
     8. Mr. Cuellar                     18. Ms. Sewell
     9. Mr. Walz                        19. Mr. McGovern
    10. Mr. Schrader

                                      NAYS

     1. Mr. Lucas                       14. Mr. Southerland
     2. Mr. Goodlatte                   15. Mr. Crawford
     3. Mr. King                        16. Mrs. Roby
     4. Mr. Neugebauer                  17. Mr. Huelskamp
     5. Mr. Conaway                     18. Mr. DesJarlais
     6. Mr. Fortenberry                 19. Mrs. Ellmers
     7. Mrs. Schmidt                    20. Mr. Hultgren
     8. Mr. Thompson                    21. Mrs. Hartzler
     9. Mr. Rooney                      22. Mr. Schilling
    10. Mr. Stutzman                    23. Mr. Ribble
    11. Mr. Gibbs                       24. Mrs. Noem
    12. Mr. Austin Scott                25. Mr. Cardoza
    13. Mr. Tipton

                                   NOT VOTING

     1. Mr. Johnson                     2. Mr. Costa

                                 ROLL CALL #15

        Summary: Conaway motion to table the appeal to the point of
    order on the McIntyre amendment.
        Results: Motion passed by a vote of 25 yeas, 20 nays, and 1
    not voting.

                                      YEAS

     1. Mr. Lucas                       14. Mr. Tipton
     2. Mr. Goodlatte                   15. Mr. Southerland
     3. Mr. Johnson                     16. Mr. Crawford
     4. Mr. King                        17. Mrs. Roby
     5. Mr. Neugebauer                  18. Mr. Huelskamp
     6. Mr. Conaway                     19. Mr. DesJarlais
     7. Mr. Fortenberry                 20. Mrs. Ellmers
     8. Mrs. Schmidt                    21. Mr. Gibson
     9. Mr. Thompson                    22. Mr. Hultgren
    10. Mr. Rooney                      23. Mrs. Hartzler
    11. Mr. Stutzman                    24. Mr. Schilling
    12. Mr. Gibbs                       25. Mrs. Noem
    13. Mr. Austin Scott

                                      NAYS

     1. Mr. Peterson                    11. Mr. Schrader
     2. Mr. Holden                      12. Mr. Kissell
     3. Mr. McIntyre                    13. Mr. Owens
     4. Mr. Boswell                     14. Ms. Pingree
     5. Mr. Baca                        15. Mr. Courtney
     6. Mr. Cardoza                     16. Mr. Welch
     7. Mr. David Scott                 17. Ms. Fudge
     8. Mr. Cuellar                     18. Mr. Sablan
     9. Mr. Costa                       19. Ms. Sewell.
    10. Mr. Walz                        20. Mr. McGovern

                                   NOT VOTING

     1. Mr. Ribble

                                 ROLL CALL #16

        Summary: Amendment to Title XII of H.R. 6083 requiring a
    report from USDA outlining the necessary steps to be taken by
    the U.S. in order to be in compliance with the WTO COOL
    decision.
        Offered By: Representative Randy Neugebauer.
        Results: Amendment passed with 34 yeas and 12 nays.

                                      YEAS

     1. Mr. Lucas                       18. Mr. Huelskamp
     2. Mr. Goodlatte                   19. Mr. DesJarlais
     3. Mr. Johnson                     20. Mrs. Ellmers
     4. Mr. King                        21. Mr. Gibson
     5. Mr. Neugebauer                  22. Mr. Hultgren
     6. Mr. Conaway                     23. Mrs. Hartzler
     7. Mr. Fortenberry                 24. Mr. Schilling
     8. Mrs. Schmidt                    25. Mr. Ribble
     9. Mr. Thompson                    26. Mrs. Noem
    10. Mr. Rooney                      27. Mr. McIntyre
    11. Mr. Stutzman                    28. Mr. David Scott
    12. Mr. Gibbs                       29. Mr. Cuellar
    13. Mr. Austin Scott                30. Mr. Kissell
    14. Mr. Tipton                      31. Mr. Owens
    15. Mr. Southerland                 32. Mr. Courtney
    16. Mr. Crawford                    33. Mr. Sablan
    17. Mrs. Roby                       34. Ms. Sewell

                                      NAYS

     1. Mr. Peterson                      7. Mr. Walz
     2. Mr. Holden                        8. Mr. Schrader
     3. Mr. Boswell                       9. Ms. Pingree
     4. Mr. Baca                        10. Mr. Welch
     5. Mr. Cardoza                     11. Ms. Fudge
     6. Mr. Costa                       12. Mr. McGovern

                                 ROLL CALL #17

        Summary: Amendment to Title XII of H.R. 6083 authorizing
    the Secretary of Agriculture to make grants to states, tribal
    governments and research institutions to research, promote, and
    expand access to lands for maple sugaring.
        Offered By: Representative Peter Welch.
        Results: Amendment passed by a vote of 25 yeas and 21 nays.

                                      YEAS

     1. Mr. Lucas                       14. Mr. Costa
     2. Mr. Goodlatte                   15. Mr. Walz
     3. Mr. Johnson                     16. Mr. Schrader
     4. Mr. Fortenberry                 17. Mr. Kissell
     5. Mr. Rooney                      18. Mr. Owens
     6. Mr. Gibson                      19. Ms. Pingree
     7. Mr. Peterson                    20. Mr. Courtney
     8. Mr. Holden                      21. Mr. Welch
     9. Mr. Boswell                     22. Ms. Fudge
    10. Mr. Baca                        23. Mr. Sablan
    11. Mr. Cardoza                     24. Ms. Sewell
    12. Mr. David Scott                 25. Mr. McGovern
    13. Mr. Cuellar

                                      NAYS

     1. Mr. King                        12. Mrs. Roby
     2. Mr. Neugebauer                  13. Mr. Huelskamp
     3. Mr. Conaway                     14. Mr. DesJarlais
     4. Mrs. Schmidt                    15. Mrs. Ellmers
     5. Mr. Thompson                    16. Mr. Hultgren
     6. Mr. Stutzman                    17. Mrs. Hartzler
     7. Mr. Gibbs                       18. Mr. Schilling
     8. Mr. Austin Scott                19. Mr. Ribble
     9. Mr. Tipton                      20. Mrs. Noem
    10. Mr. Southerland                 21. Mr. McIntyre
    11. Mr. Crawford

                                 ROLL CALL #18

        Summary: Amendment to Title XII of H.R. 6083 to repeal a
    provision of the Food, Conservation, and Energy Act of 2008
    establishing a USDA inspection and grading program for catfish
    and other species of farm-raised fish.
        Offered By: Representative Vicky Hartzler.
        Results: Amendment failed by a vote of 20 yeas, 25 nays,
    and 1 not voting.

                                      YEAS

     1. Mr. King                        11. Mrs. Ellmers
     2. Mr. Neugebauer                  12. Mr. Hultgren
     3. Mr. Thompson                    13. Mrs. Hartzler
     4. Mr. Rooney                      14. Mr. Schilling
     5. Mr. Stutzman                    15. Mr. Ribble
     6. Mr. Gibbs                       16. Mrs. Noem
     7. Mr. Tipton                      17. Mr. McIntyre
     8. Mr. Southerland                 18. Mr. Schrader
     9. Mr. Huelskamp                   19. Mr. Kissell
    10. Mr. DesJarlais                  20. Ms. Pingree

                                      NAYS

     1. Mr. Lucas                       14. Mr. Baca
     2. Mr. Goodlatte                   15. Mr. Cardoza
     3. Mr. Johnson                     16. Mr. David Scott
     4. Mr. Conaway                     17. Mr. Cuellar
     5. Mr. Fortenberry                 18. Mr. Costa
     6. Mrs. Schmidt                    19. Mr. Walz
     7. Mr. Austin Scott                20. Mr. Owens
     8. Mr. Crawford                    21. Mr. Courtney
     9. Mrs. Roby                       22. Mr. Welch
    10. Mr. Gibson                      23. Ms. Fudge
    11. Mr. Peterson                    24. Mr. Sablan
    12. Mr. Holden                      25. Ms. Sewell
    13. Mr. Boswell

                                   NOT VOTING

     1. Mr. McGovern

                                 ROLL CALL #19

        Summary: Amendment to Tile XII of H.R. 6083 to close a
    loophole related to spectators at animal fighting ventures.
        Offered By: Representative James McGovern.
        Results: Amendment adopted by a vote of 26 yeas, 19 nays,
    and 1 not voting.

                                      YEAS

     1. Mr. Fortenberry                 14. Mr. David Scott
     2. Mr. Thompson                    15. Mr. Cuellar
     3. Mr. Austin Scott                16. Mr. Walz
     4. Mrs. Roby                       17. Mr. Schrader
     5. Mrs. Ellmers                    18. Mr. Kissell
     6. Mr. Gibson                      19. Mr. Owens
     7. Mr. Schilling                   20. Ms. Pingree
     8. Mr. Peterson                    21. Mr. Courtney
     9. Mr. Holden                      22. Mr. Welch
    10. Mr. McIntyre                    23. Ms. Fudge
    11. Mr. Boswell                     24. Mr. Sablan
    12. Mr. Baca                        25. Ms. Sewell
    13. Mr. Cardoza                     26. Mr. McGovern

                                      NAYS

     1. Mr. Lucas                       11. Mr. Southerland
     2. Mr. Goodlatte                   12. Mr. Crawford
     3. Mr. King                        13. Mr. Huelskamp
     4. Mr. Neugebauer                  14. Mr. DesJarlais
     5. Mr. Conaway                     15. Mr. Hultgren
     6. Mrs. Schmidt                    16. Mrs. Hartzler
     7. Mr. Rooney                      17. Mr. Ribble
     8. Mr. Stutzman                    18. Mrs. Noem
     9. Mr. Gibbs                       19. Mr. Costa
    10. Mr. Tipton

                                   NOT VOTING

     1. Mr. Johnson

                                 ROLL CALL #20

        Summary: Final Passage of H.R. 6083
        Results: Bill passed by a vote of 35 yeas, and 11 nays

                                      YEAS

     1. Mr. Lucas                       19. Mrs. Hartzler
     2. Mr. Johnson                     20. Mr. Schilling
     3. Mr. King                        21. Mr. Ribble
     4. Mr. Neugebauer                  22. Mrs. Noem
     5. Mr. Conaway                     23. Mr. Peterson
     6. Mr. Fortenberry                 24. Mr. Holden
     7. Mrs. Schmidt                    25. Mr. McIntyre
     8. Mr. Thompson                    26. Mr. Boswell
     9. Mr. Rooney                      27. Mr. Cardoza
    10. Mr. Austin Scott                28. Mr. Cuellar
    11. Mr. Tipton                      29. Mr. Costa
    12. Mr. Southerland                 30. Mr. Walz
    13. Mr. Crawford                    31. Mr. Schrader
    14. Mrs. Roby                       32. Mr. Kissell
    15. Mr. DesJarlais                  33. Mr. Owens
    16. Mrs. Ellmers                    34. Mr. Welch
    17. Mr. Gibson                      35. Mr. Sablan
    18. Mr. Hultgren

                                      NAYS

     1. Mr. Goodlatte                    7. Ms. Pingree
     2. Mr. Stutzman                     8. Mr. Courtney
     3. Mr. Gibbs                        9. Ms. Fudge
     4. Mr. Huelskamp                   10. Ms. Sewell
     5. Mr. Baca                        11. Mr. McGovern
     6. Mr. David Scott

                          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 provisions of clause 3(c)(2) of rule XIII of the Rules
    of the House of Representatives and section 308(a)(1) of the
    Congressional Budget Act of 1974 (relating to estimates of new
    budget authority, new spending authority, new credit authority,
    or increased or decreased revenues or tax expenditures) are not
    considered applicable. The estimate and comparison required to
    be prepared by the Director of the Congressional Budget Office
    under 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 submitted to the Committee prior to the
    filing of this report are as follows:

                                         U.S. Congress,
                                   Congressional Budget Office,
                                         Washington, DC, July 26, 2012.
    Hon. Frank Lucas,
    Chairman, Committee on Agriculture,
    House of Representatives, Washington, DC.
        Dear Mr. Chairman: The Congressional Budget Office has
    prepared the enclosed cost estimate for H.R. 6083, the Federal
    Agriculture Reform and Risk Management act of 2012, as ordered
    reported by the House Committee on Agriculture on July 11,
    2012.
        If you wish further details on this estimate, we will be
    pleased to provide them. The CBO staff contact is Jim Langley.
                Sincerely,
                                                  Douglas W. Elmendorf.
        Enclosure.

    H.R. 6083--Federal Agriculture Reform and Risk Management Act of 2012

        Summary: H.R. 6083 would amend and extend a number of major
    programs administered by the U.S. Department of Agriculture
    (USDA), including those addressing farm income support, food
    and nutrition, land conservation, trade promotion, rural
    development, research, forestry, energy, horticulture, and crop
    insurance.
        When combined with estimated spending under CBO's baseline
    projections for those programs, CBO estimates that enacting the
    Federal Agriculture Reform and Risk Management Act of 2012
    would bring total direct spending for those USDA programs to
    $957.7 billion over the 2013-2022 period--$35.1 billion less
    than we project would be spent if those programs were continued
    as under current law.
        Pay-as-you-go procedures apply because enacting the
    legislation would affect direct spending. Enacting the bill
    would not affect revenues.
        The bill also would authorize appropriations over the 2013-
    2017 period for existing and new USDA programs involving
    research and education, nutrition, trade promotion, rural
    development, credit assistance, forestry, conservation
    initiatives, and other miscellaneous activities. CBO estimates
    that implementing those provisions would cost about $22.1
    billion over the next five years, assuming appropriation of the
    necessary amounts.
        The bill would impose intergovernmental and private-sector
    mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    CBO estimates that the aggregate costs of mandates on state,
    local, and tribal governments would fall below the annual
    threshold established in UMRA for intergovernmental mandates
    ($73 million in 2012, adjusted annually for inflation). Because
    the cost of some of the mandates on the private sector would
    depend on future regulations, CBO cannot determine whether the
    aggregate cost of those mandates would exceed the annual
    threshold established in UMRA for private-sector mandates ($146
    million in 2012, adjusted annually for inflation).
        Estimated cost to the Federal Government: The estimated
    budgetary impact of H.R. 6083 is shown in Table 1. The costs of
    this legislation fall within budget functions 150
    (international affairs), 270 (energy), 300 (natural resources
    and environment), 350 (agriculture), 450 (community and
    regional development), and 600 (income security).

                  TABLE 1. SUMMARY OF ESTIMATED BUDGETARY EFFECTS OF H.R. 6083, THE FEDERAL AGRICULTURE REFORM AND RISK MANAGEMENT ACT OF 2012
    --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           By fiscal year, in millions of dollars--
                                 ---------------------------------------------------------------------------------------------------------------------------
                                    2013      2014      2015      2016      2017      2018      2019      2020      2021      2022     2013-2017   2013-2022
    --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   CHANGES IN DIRECT SPENDING

    Estimated Budget Authority..        31    -5,023    -3,410    -3,592    -3,320    -3,428    -3,694    -3,689    -3,846    -3,780     -15,315     -33,751
    Estimated Outlays...........      -306    -5,968    -3,612    -3,491    -3,327    -3,387    -3,709    -3,698    -3,834    -3,810     -16,705     -35,143

                                                          CHANGES IN SPENDING SUBJECT TO APPROPRIATION

    Estimated Authorization          4,911     5,434     5,464     5,505     5,537       511        11        11        11        11      26,852      27,407
     Level......................
    Estimated Outlays...........     2,203     4,011     5,042     5,339     5,476     3,244     1,430       404       146        45      22,070     27,339
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    Note: Components may not sum to totals because of rounding.

        Basis of estimate: For this estimate, CBO assumes that H.R.
    6083 will be enacted around the end of fiscal year 2012. The
    legislation would provide direct spending authority for most of
    the USDA programs authorized, amended, or created by the
    legislation through the 2013-2017 period. Following the
    baseline projection rules of section 257 of the Balanced Budget
    and Emergency Deficit Control Act, CBO estimates the 10-year
    costs of the bill by assuming that most of those programs
    continue to operate beyond that five-year authorization period.
        The following sections describe the major budgetary effects
    of each title of the bill, including changes in direct spending
    for mandatory programs and changes in spending that are subject
    to future appropriation for discretionary programs.

    Direct spending

        CBO's estimates of the changes in direct spending that
    would result from enacting the legislation are presented in
    Table 2. All estimates are relative to CBO's March 2012
    baseline projections for spending by mandatory agriculture
    programs. That baseline assumes that the agriculture programs
    authorized by the most recent farm bill (Public Law 110-246)
    continue to operate beyond their statutory expiration dates
    through 2022. (The 2008 farm bill established authorizations
    through 2012 for most such programs.)

                   TABLE 2. ESTIMATED EFFECTS ON DIRECT SPENDING FOR H.R. 6083, THE FEDERAL AGRICULTURE REFORM AND RISK MANAGEMENT ACT OF 2012
    --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           By fiscal year, in millions of dollars--
                                 ---------------------------------------------------------------------------------------------------------------------------
                                    2013      2014      2015      2016      2017      2018      2019      2020      2021      2022     2013-2017   2013-2022
    --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             CHANGES IN OUTLAYS FROM DIRECT SPENDING

    Title I--Commodity Programs:
        Repeal Direct Payments..         0    -4,958    -4,958    -4,958    -4,958    -4,958    -4,958    -4,958    -4,958    -4,958     -19,832     -44,622
        Repeal Countercyclical           0         0      -101      -127      -121      -123      -130      -137      -134      -135        -349      -1,008
         Payments...............
        Repeal Average Crop              0         0      -863      -637      -470      -479      -452      -547      -632      -533      -1,970      -4,615
         Revenue Elections
         Payments...............
        Farm Risk Management             0         0     3,253     3,086     3,217     3,180     2,893     2,998     2,949     2,968       9,556      24,544
         Election...............
        Dairy Program...........       -60       -56       -46       -29         3        28         7        32        61        22        -188         -38
        Supplemental Agriculture       226       211       192       192       199       197       196       198       203       208       1,020       2,022
         Disaster Assistance....
        Other Commodity                 65        38         3         3         2         2         5         5         4         4         111         131
         Provisions.............
                                 ---------------------------------------------------------------------------------------------------------------------------
          Subtotal, Title I.....       231    -4,765    -2,520     2,470    -2,128    -2,153    -2,439    -2,409    -2,507    -2,424     -11,651     -23,584

    Title II--Conservation:
        Conservation Reserve             0        41      -399      -532      -479      -476      -446      -438      -427      -424      -1,369      -3,580
         Program................
        Conservation Security          -10       -77      -145      -202      -269      -345      -411      -479      -545      -612        -703      -3,095
         Program................
        Agricultural                  -146       -60       173       283       216       123        86        72        63        70         466         880
         Conservation Easement..
        Regional Conservation           -3        -7        -8        -8       -10       -10       -10       -10       -10       -10         -36         -86
         Partnership............
        Other Conservation......       131        90        51        39        15         9        10        10        10        10         326         375
        Repeal of Wildlife             -18       -37       -47       -57       -66       -76       -85       -85       -85       -85        -225        -641
         Habitat Incentives.....
                                 ---------------------------------------------------------------------------------------------------------------------------
          Subtotal, Title II....       -46       -50      -375      -477      -593      -775      -856      -930      -994    -1,051      -1,541      -6,148

    Title IV--Nutrition:
        Updating Program              -615    -1,240    -1,255    -1,255    -1,235    -1,210    -1,195    -1,180    -1,170    -1,155      -5,600     -11,510
         Eligibility............
        Utility Allowances......         0      -130      -530      -540      -540      -540      -550      -550      -550      -560      -1,740      -4,490
        Interaction Effects.....         0         2        10        10        10        10        10        10        10        10          32          82
        Changes to Grants.......       -37       -37       -28       -28       -30       -36       -38       -38       -38       -38        -160        -348
        Retailer Equipment......        -7        -8        -8        -8        -8        -8        -8        -8        -8        -8         -39         -79
        Expiring Provisions.....        25        25        26        26        27        27        28        28        29        29         129         270
                                 ---------------------------------------------------------------------------------------------------------------------------
          Subtotal, Title IV....      -634    -1,388    -1,785    -1,795    -1,776    -1,757    -1,753    -1,738    -1,727    -1,722      -7,378     -16,075

    Title VI--Rural Development:
        Value-Added Marketing            0        18        15        15         2         0         0         0         0         0          50          50
         Grants.................
        Rural Economic                   0         1         5         7         7         7         7         7         7         7          20          55
         Development Loans and
         Grants.................
                                 ---------------------------------------------------------------------------------------------------------------------------
          Subtotal, Title VI....         0        19        20        22         9         7         7         7         7         7          70         105
    Title VII--Research,
     Extension, and Related
     Matters:
        Organic Agriculture              8        13        16        16        16         8         3         0         0         0          69          80
         Research and Extension.
        Specialty Crop Research.        13        23        29        48        50        53        50        50        50        50         163         416
        Beginning Farmer and             3         5         8        10        10         8         5         1         0         0          36          50
         Rancher Development....
                                 ---------------------------------------------------------------------------------------------------------------------------
          Subtotal, Title VII...        23        40        53        74        76        68        58        52        50        50         267         546

    Title VIII--Forestry........         0         1         1         1         1         0         0         0         0         0           4           4

    Title IX--Energy............        -5        -5         8         2         0         0         0         0         0         0           0           0

    Title X--Horticulture:
        Farmers Market and Local        20        20        20        20        20         0         0         0         0         0         100         100
         Food Promotion.........
        Organic Agriculture and          3         4         1         1         1         0         0         0         0         0          10          10
         Technology Upgrade.....
        Specialty Crop Block             8        14        15        15        15        15        15        15        15        15          67         142
         Grants.................
        Plant, Pest, and Disease         5        13        16        17        22        22        22        22        22        22          73         181
         Management.............
                                 ---------------------------------------------------------------------------------------------------------------------------
          Subtotal, Title X.....        36        51        52        53        58        37        37        37        37        37         250         435

    Title XI--Crop Insurance:
        Supplemental Coverage            0        42       405       465       461       514       512       524       543       531       1,373       3,998
         Option.................
        Reducing Premiums for            0        -5       -45       -53       -54       -54       -55       -56       -57       -58        -157        -437
         CAT....................
        Enterprise Units for             0         5        50        59        60        62        65        67        68        70         174         506
         Irrigated and
         Nonirrigated Crops.....
        Adjustment in APH Yields         0        12       116       136       138       140       143       146       147       149         402       1,127
        Crop Production on               0         0        -4        -8       -11       -15       -16       -16       -16       -16         -23        -102
         Native Sod.............
        Beginning Farmer                 0         2        16        20        21        25        27        27        27        28          59         192
         Provisions.............
        Stacked Income                   0         0       314       400       380       492       540       577       574       574       1,094       3,851
         Protection for Cotton..
        Peanut Revenue Crop              0         3        26        30        30        30        30        30        30        30          89         239
         Insurance..............
        Participation Effects of         0        -7       -65       -77       -87       -90       -75       -79       -80       -79        -236        -639
         Commodity Programs.....
        Equitable Relief for            82        41        41        41         0         0         0         0         0         0         205         205
         Specialty Crop
         Producers..............
        Coverage Level by                0         2        17        20        20        21        21        21        22        22          59         166
         Practice...............
        Implementation..........         2        21        16        15        15        14         2         0         0         0          69          85
        Limitation on                    0         3        26        30        30        30        30        30        30        30          89         239
         Expenditures for
         Livestock Pilot Program
        Noninsured Assistance...         0         1        10        12        12        12        12        12        12        12          36          96
                                 ---------------------------------------------------------------------------------------------------------------------------
          Subtotal, Title XI....        84       120       923     1,089     1,015     1,181     1,235     1,283     1,300     1,292       3,231       9,523

    Title XII--Miscellaneous....         5         8        10        10        10         5         2         0         0         0          43          50

          Total Changes in            -306    -5,968    -3,612    -3,491    -3,327    -3,387    -3,709    -3,698    -3,834    -3,810     -16,705    -35,143
           Outlays from Direct
           Spending.............
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    Note: CAT = Catastrophic Crop Insurance; APH = Average Producer History; components may not sum to totals because of rounding.

        Title I: Commodity Programs. Title I would repeal most
    current agricultural price and income support programs for crop
    and dairy producers. It would authorize new revenue protection
    programs for those producers, reauthorize price support loan
    programs for crop producers, and reauthorize agricultural
    disaster assistance programs for livestock producers. Under the
    bill, we estimate that federal spending on commodity programs
    would total $39.4 billion over the 2013-2022 period--or $23.6
    billion less than expected if current law were continued.
        End Current Commodity Programs. Title I would end:
               Direct payments made to producers based on
            historical acres and yields using fixed payment rates
            not affected by market prices;
               Countercyclical payments made to producers
            based on historical acres and yields using payment
            rates partly determined by market prices; and
               Average Crop Revenue Election payments made
            to producers based on any shortfall in actual revenue
            received by the producer compared to the expected
            revenue.
        Each of those programs will expire at the end of 2012 but
    are assumed to continue in the CBO baseline. Ending those three
    programs would reduce spending on commodity programs, compared
    to the CBO baseline, by $50.2 billion over the 2013-2022
    period.
        Farm Risk Management Election. The commodity programs ended
    under the bill would be replaced by a new Farm Risk Management
    Election (FRME) program. Under FRME, producers would make a
    one-time choice to receive either price loss coverage (PLC) for
    their farm or revenue loss coverage (RLC) for their county.
    Each option would be available for all major crops other than
    upland cotton. Under PLC, producers would receive a payment
    from the federal government whenever the national average
    market price for each crop was less than an effective price
    specified in the legislation. This price difference would be
    paid on a fixed yield (which the producer would have one
    opportunity to update) and a portion of planted acres for each
    crop. Producers who choose RLC would receive a payment to
    partially compensate them for any difference between the actual
    revenue from selling their crops in their county and the
    revenue the government expects the producers to receive in that
    county using a calculation specified in the bill.
        CBO estimates that spending for the new FRME program would
    total $24.5 billion over the 2013-2022 period, of which $16.0
    billion would be for PLC and $8.5 billion for RLC. CBO
    estimates that, in total, FRME payments would average about
    $3.1 billion per year; however, actual payments from year to
    year would probably vary considerably from that expected
    average payment.
        Dairy Program. Subtitle D would replace current government
    support programs for dairy producers--Dairy Product Price
    Support, Milk Income Loss Contract Payments, and Dairy Export
    Incentives Program--with a new Dairy Production Margin
    Protection Program (DPMPP) and a Dairy Market Stabilization
    Program (DMSP). CBO estimates that the new dairy provisions
    would cost $353 million over the 2013-2022 period. However,
    that cost would be more than offset by repealing the current
    dairy programs. CBO estimates that enacting the dairy
    provisions in this subtitle would result in a net savings of
    $38 million over the 2013-2022 period. CBO expects that actual
    payments from the new dairy program would vary considerably
    from the average annual payments presented in this estimate.
        Supplemental Agriculture Disaster Assistance. The bill
    would reauthorize four disaster assistance programs for
    livestock and tree-crop producers. Those programs include the
    Livestock Indemnity Program; Livestock Forage Program;
    Emergency Assistance for Livestock; and Honey Bees, Farm-raised
    Fish, and Tree Assistance. Those programs expired September 30,
    2011, and are not assumed to continue in the baseline. CBO
    estimates that continuing those programs would cost almost $2.0
    billion for the 2013-2022 period.
        Other Commodity Provisions. The bill also would reauthorize
    commodity loan programs, establish new limits for FRME and
    livestock disaster payments, and provide $100 million to USDA
    for administrative costs to implement the new programs. CBO
    estimates that those provisions would have a net cost of $131
    million over the 2013-2022 period.
        Title II: Conservation. Title II would amend USDA's land
    conservation programs that are authorized to expend funds from
    the Commodity Credit Corporation (CCC). Under the bill, CBO
    estimates that spending on land conservation programs would
    total $57.9 billion over the 2013-2022 period--or about $6.1
    billion less than expected under a continuation of current law.
    Significant changes to USDA's conservation programs include:
         Reducing the maximum acreage eligible for the
    Conservation Reserve Program each year from 32 million acres to
    25 million acres by 2017. CBO estimates that this provision
    would reduce future spending by $3.6 billion over the 2013-2022
    period.
         Reducing maximum annual enrollment in the
    Conservation Stewardship Program from 12.769 million acres to
    9.000 million acres. CBO estimates that provision would reduce
    direct spending by $3.1 billion over the 2013-2022 period.
         Establishing a new Agricultural Conservation
    Easement Program to replace the Wetlands Reserve Program,
    Grasslands Reserve Program, Farmland Protection Program, and
    Farm Viability Program. CBO estimates that the new program
    would cost $880 million more than the amounts assumed in the
    CBO baseline for those existing programs over the 2013-2022
    period.
         Establishing a new Regional Conservation
    Partnership Program that would combine the Agricultural Water
    Enhancement Program, the Chesapeake Bay Watershed Program, the
    Cooperative Conservation Partnership Initiative, and the Great
    Lakes Basin Program. CBO estimates that the new program would
    cost $86 million less than continuing the existing programs
    over the 2013-2022 period.
         Continuing funding for several other conservation
    programs, such as the Voluntary Public Access and Habitat
    Incentives Program and the Small Watershed Rehabilitation
    Program. CBO estimates that those provisions would cost $375
    million more than the amounts in CBO's baseline for the 2013-
    2022 period.
         Repealing the Wildlife Habitat Incentives Program.
    CBO estimates that ending this program would reduce spending by
    $641 million relative to continuing to operate it over the
    2013-2022 period.
        Title III: Trade. The bill would amend the trade promotion
    and food assistance programs administered by USDA and the U.S.
    Agency for International Development (USAID). It would extend
    the authorized funding levels through 2017 for the:
               Export Credit Guarantee Program,
               Market Access Program,
               Foreign Market Development Program,
               Food for Progress Program, and
               Several technical assistance programs for
            specialty crops and emerging markets.
        Because CBO's baseline assumes that those trade programs
    continue to operate beyond their scheduled expiration dates, we
    estimate that the provisions in title III would not change the
    cost of those programs, which we estimate will total $3.4
    billion over the 2013-2022 period.
        Title IV: Nutrition. The legislation would extend spending
    authority for the Supplemental Nutrition Assistance Program
    (SNAP) and other nutrition assistance programs and change how
    those programs operate. In total, CBO estimates that enacting
    the provisions in title IV would cost $756 billion--$16.1
    billion less than expected under the baseline for the 2013-2022
    period.
        Updating Program Eligibility. Individuals in households in
    which all members receive cash assistance from the Temporary
    Assistance to Needy Families Program (TANF), Supplemental
    Security Income, or similar state cash assistance programs are
    considered automatically eligible for SNAP and are not subject
    to the program's income and asset requirements. States
    currently have the option to extend such categorical
    eligibility to households that receive or are eligible to
    receive noncash services through TANF.
        The legislation would restrict categorical eligibility to
    households receiving cash assistance. Based on data from the
    Department of Agriculture, CBO estimates that about 1.8 million
    people per year, on average, would lose benefits if they were
    subject to SNAP's income and asset tests. In addition, about
    280,000 school-age children in those households would no longer
    be automatically eligible for free school meals through their
    receipt of SNAP benefits. CBO estimates that this provision
    would lower direct spending by $11.5 billion over the 2013-2022
    period.
        Utility Allowances. Under current law, households qualify
    for a Heating and Cooling Standard Utility Allowance (HCSUA) if
    they provide proof that they pay heating or cooling expenses or
    receive any assistance through the Low-Income Home Energy
    Assistance Program (LIHEAP). The bill would eliminate the
    automatic qualification for those allowances for households who
    receive less than $10 each year in energy assistance, beginning
    in fiscal year 2014. (States would have the option to delay
    implementation for six months for current recipients.) The
    value of the HCSUA is used, along with other factors, to
    determine the amount of housing expenses that households can
    deduct from their income.
        Some states send nominal LIHEAP benefits (typically between
    $1 and $5, and typically only once per year) to SNAP
    participants to automatically qualify them for the utility
    allowance. Based on discussions with states, CBO assumes that
    some states would continue to send LIHEAP benefits that meet
    the $10 minimum qualification to some SNAP participants, but
    others would discontinue that practice. CBO estimates that
    under this provision, nearly 500,000 households each year would
    have their SNAP benefits reduced by an average of $90 per
    month. In total, CBO estimates that enacting this provision
    would reduce direct spending by about $4.5 billion over the
    2013-2022 period.
        Interaction Effects. Restricting categorical eligibility
    would reduce the total number of households receiving SNAP
    benefits; changes to standard utility allowances would reduce
    the benefit amounts that households receive. Therefore, the
    estimated savings from each provision would be reduced if they
    were enacted simultaneously. Accounting for the interactions
    between those provisions, CBO estimates that the total savings
    would decline by $82 million over the 2013-2022 period.
        Changes to Grant Programs. Enacting the legislation would
    reduce net spending for nutrition-related grant programs by
    $348 million over the 2013-2022 period. Specifically, the bill
    would:
               Eliminate $48 million in annual funding for
            awards to states with high or improved performance in
            administering SNAP, for total savings of $480 million
            over the 2013-2022 period;
               Eliminate $5 million in annual funding for
            projects to simplify application systems for SNAP and
            improve access to the program, for total savings of $50
            million over the 2013-2022 period;
               Provide $5 million per year for USDA to
            pursue activities to prevent trafficking of SNAP
            benefits, with a total cost of $50 million over the 10-
            year period;
               Provide an additional $10 million each year
            for community food projects for a total cost of $100
            million over the 2013-2022 period--in addition to $5
            million per year provided by USDA under current law;
            and
               Provide a total of $32.5 million for USDA to
            conduct a study and pilot program in the Commonwealth
            of the Northern Mariana Islands.
        Retailer Equipment. All SNAP recipients use an electronic
    benefit transfer (EBT) card to pay for food. Under current law,
    retail food stores may request a point-of-sale terminal that
    accepts EBT cards. (Most larger grocery stores use their
    existing debit/credit card machines and program them to also
    accept EBT cards.) The cost of leasing this equipment from the
    state's EBT contractor is split between states and the federal
    government. The bill would require all retailers to assume the
    full cost of the equipment. Based on data from the USDA Food
    and Nutrition Service, CBO estimates that eliminating the
    federal share of those costs would reduce direct spending by
    $79 million over the 2013-2022 period.
        Expiring Provisions. The bill would reauthorize SNAP, which
    includes funding of The Emergency Food Assistance Program
    (TEFAP) and the Senior Farmers Market Nutrition Program (which
    the bill would rename the Farmers Market Nutrition Program),
    through 2017. Pursuant to the Balanced Budget and Emergency
    Deficit Control Act of 1985, those extensions are assumed in
    CBO's current baseline projections and have no cost relative to
    that baseline. Under the assumptions underlying CBO's March
    2012 baseline projections, we estimate that extending SNAP for
    the 2013-2017 period would result in outlays of almost $370
    billion over that period (including $1.4 billion for TEFAP) and
    that extending the Farmers Market Nutrition Program would
    result in outlays of $103 million.
        In addition to reauthorizing those programs, the bill would
    increase funding for commodity purchases made through TEFAP.
    The commodities are distributed by states to local
    organizations, including food banks and shelters. That
    provision would increase direct spending for the program above
    baseline levels by $270 million over the 2013-2022 period.
        Other provisions in title IV would reduce costs in SNAP by
    less than $500,000 over the 2013-2022 period:
         The bill would make households automatically
    ineligible for SNAP if a member of that household receives
    substantial lottery or gambling winnings.
         The bill would allow the Secretary of Agriculture
    to impose new restrictions on states that carry out programs to
    allow certain SNAP recipients to purchase meals at restaurants.
         The bill would require states to use the
    Systematic Alien Verification for Entitlements (SAVE) program
    to verify the immigration status of non-citizen applicants.
        Title VI: Rural Development. Title VI would provide $50
    million in mandatory funding for grants to producers of value-
    added agricultural products for marketing and for developing a
    business plan. The title also would authorize funding derived
    from the Cushion of Credit payments program to be used to
    provide grants and loans to rural cooperatives and other
    borrowers that relend such funds to consumers for energy-
    efficiency projects. CBO estimates that spending for both
    programs would total $105 million over the 2013-2022 period.
        Title VII: Research, Extension, and Related Matters. Under
    the bill, CBO estimates that spending on agriculture research,
    extension activities, and related efforts would total $760
    million--an increase of $546 million above estimated expenses
    under the baseline over the 2013-2022 period. Programs
    authorized by this title include:
         Organic Agriculture Research and Extension
    Initiative,
         Specialty Crop Research Initiative; and
         Beginning Farmer and Rancher Development Program.
        Title VIII: Forestry. Title VIII would authorize the Forest
    Service through 2017 to enter into special contracts known as
    stewardship contracts. Under such contracts, the Forest Service
    and the Department of the Interior use timber resources owned
    by the government in lieu of cash to compensate firms that
    provide certain services related to forest management. Under
    current law, authority to enter into stewardship contracts will
    expire in 2013. Because CBO expects that some of the timber
    that would be used as compensation under stewardship contracts
    would be sold under current law, we estimate that enacting this
    provision would reduce net offsetting receipts (a credit
    against direct spending) by $1 million a year over the 2014-
    2017 period. Thus, enacting this provision would increase
    direct spending $4 million over the next 10 years.
        Title IX: Energy. CBO estimates that spending on the energy
    programs covered in the legislation would total $750 million
    over the 2013-2022 period--the same spending level assumed in
    the baseline. Rural energy programs that had received mandatory
    funding in the previous farm bill would now be made subject to
    appropriation.
        Title X: Horticulture. Under the bill, CBO estimates that
    spending for horticulture programs would total $1.5 billion
    over the 2013-2022 period--$435 million more than the expected
    cost of continuing those programs under current law. Programs
    authorized by the bill include:
         Farmers Market and Local Food Promotion Program,
         Specialty Crop Block Grants,
         Plant Pest and Disease Management, and
         A variety of other smaller programs.
        Title XI: Crop Insurance. Under the bill, CBO estimates
    that spending on federal crop insurance programs would total
    $99.0 billion over the 2013-2022 period--about $9.5 billion
    more than we expect would be spent if those programs were
    continued under current law.
        Supplemental Coverage Option. Beginning with the 2014
    crops, the Supplemental Coverage Option (SCO) authorized in
    section 11003 would allow farmers to combine farm-level crop
    insurance coverage with crop insurance based on county-level
    coverage. This option would be subject to a deductible of 10
    percent of expected revenue for farmers participating in the
    Price Loss Coverage program. USDA would pay 70 percent of the
    premium for the SCO policy. CBO estimates that implementing the
    supplemental coverage provisions would cost $4 billion over the
    2013-2022 period.
        Reducing Premiums for CAT. Section 11004 would require USDA
    to reduce the premium for crop insurance protection against
    catastrophic losses (known as CAT coverage). This change in
    premiums would reduce government costs because the amounts paid
    by USDA to private insurance companies for delivering crop
    insurance are based on that premium. CBO estimates that
    reducing the premium for CAT coverage would save $437 million
    over the 2013-2022 period.
        Enterprise Units for Irrigated and Nonirrigated Crops.
    Farmers who choose to buy crop insurance for a particular crop
    must buy insurance on all of the acres of that crop that they
    grow in the county. However, farmers may divide their cropland
    into separate units so that if one unit has a loss and the
    others do not, the loss is paid on the unit with a loss
    regardless of the production from other units. (Dividing
    cropland into separate units increases the likelihood of being
    paid for a loss but also increases the premium the farmer pays
    for the insurance.) Section 11007 would allow farmers to
    separate irrigated and nonirrigated farmland into different
    units without an increase in their premiums. CBO estimates that
    this change would cost $506 million over the 2013-2022 period.
        Adjustments in APH Yields. Crop insurance benefits are
    generally based on a farmer's actual production history (APH).
    Under the program rules, however, the actual yields for any
    years with unusually low yields can be replaced with a ``yield
    plug'' equal to 60 percent of the average crop yield in the
    county where the insurance is purchased. Section 11009 would
    increase the ``yield plug'' from 60 percent to 70 percent for
    all years with unusually low yields. CBO estimates that change
    would cost $1.1 billion over the 2013-2022 period.
        Crop Production on Native Sod. Section 11013 would limit
    commodity program payments and benefits under the crop
    insurance and the Noninsured Assistance Program to farmers in
    the Prairie Pothole Region who convert native sod (rangeland
    that has never been cultivated) to cropland. CBO estimates that
    change would save $102 million over the 2013-2022 period.
        Beginning Farmer Provisions. Section 11015 would reduce
    fees, raise premium subsidies, and allow for adjustments in the
    actual production histories of beginning farmers, which would
    increase insurance guarantees and government costs. CBO
    estimates that change would cost $192 million over the 2013-
    2022 period.
        Stacked Income Protection for Cotton. Section 11016 would
    establish a new Stacked Income Protection Plan (STAX). Based on
    information from USDA, CBO expects that STAX could not be
    offered before the 2014 crop of upland cotton has been
    produced. Under STAX, upland cotton producers would be eligible
    to purchase a crop insurance policy for revenue losses of
    between 10 percent and 30 percent of the expected revenue from
    cotton crops in the county, with a minimum guaranteed price of
    $0.6861 per pound. USDA would pay 80 percent of the premium of
    the STAX policy. CBO estimates that STAX would cost $3.9
    billion over the 2013-2022 period.
        Peanut Revenue Crop Insurance. Section 11017 would
    establish a revenue crop insurance program for peanuts. CBO
    estimates that this program would cost $239 million over the
    2013-2022 period.
        Participation Effects of Commodity Programs. Because title
    I would eliminate direct payments and allow farmers to choose
    between countercyclical payments and a new revenue protection
    program, CBO expects that producers choosing the revenue
    program would reduce their participation in the crop insurance
    program. CBO estimates that reduction in crop insurance
    participation would save about $0.6 billion over the 2013-2022
    period.
        Other Crop Insurance Provisions. Other provisions in title
    XI would provide for additional delivery expense reimbursements
    on specialty crop policies (section 11011), allow for different
    coverage levels on a farm for irrigated and nonirrigated
    practices (section 11014), provide funding for implementation
    (section 11019), increase annual expenditures for livestock
    pilot programs (section 11023), and increase coverage options
    under the Noninsured Assistance Program (section 11024). In
    total, CBO estimates that those provisions would increase
    outlays by $790 million over the 2013-2022 period.
        Title XII: Miscellaneous. Title XII would reauthorize CCC
    spending for outreach and assistance for socially disadvantaged
    and veteran farmers and ranchers, at a cost of $50 million over
    the 2013-2022 period.

    Spending subject to appropriation

        CBO estimates that implementing the provisions of the
    Agriculture Reform, Food, and Jobs Act of 2012 that authorize
    appropriations would cost $22.1 billion over the 2013-2017
    period, assuming appropriation of the necessary funds. Those
    discretionary costs are displayed in Table 3 and described in
    further detail below.
        Title I: Commodity Programs. Section 1605 would reauthorize
    the Geographically Disadvantaged Farmers and Ranchers Program
    to reimburse such producers for certain transportation costs.
    Based on amounts provided in recent years, CBO estimates that
    implementing this provision would cost $24 million over the
    next five years.
        Title II: Conservation. CBO estimates that implementing the
    discretionary programs authorized by title II would cost $680
    million over the 2013-2017 period. That amount includes $291
    million for conservation of private grazing land, $292 million
    for rehabilitating small watersheds, and $97 million for
    protecting grassroots source water.

     TABLE 3. ESTIMATED EFFECTS ON DISCRETIONARY SPENDING FROM IMPLEMENTING THE FEDERAL AGRICULTURE REFORM AND RISK
                                                 MANAGEMENT ACT OF 2012
    ----------------------------------------------------------------------------------------------------------------
                                                                     By fiscal year, in millions of dollars--
                                                            --------------------------------------------------------
                                                               2013     2014     2015     2016     2017    2013-2017
    ----------------------------------------------------------------------------------------------------------------
                                      CHANGES IN SPENDING SUBJECT TO APPROPRIATION

    Title I--Commodity Programs:
        Estimated Authorization Level......................        5        5        5        5        5          25
        Estimated Outlays..................................        4        5        5        5        5          24
    Title II--Conservation:
        Estimated Authorization Level......................      165      165      165      165      825
        Estimated Outlays..................................       81      123      149      162      165         680
    Title III--Trade:
        Estimated Authorization Level......................    1,697    2,199    2,202    2,205    2,209      10,511
        Estimated Outlays..................................      642    1,572    1,992    2,122    2,175       8,503
    Title IV--Nutrition:
        Estimated Authorization Level......................      198      196      198      202      204         998
        Estimated Outlays..................................      182      196      198      201      204         981
    Title V--Credit:
        Estimated Authorization Level......................       91       91       91       99       99         471
        Estimated Outlays..................................       84       91       91       98       99         463
    Title VI--Rural Development:
        Estimated Authorization Level......................      319      319      319      319      319       1,596
        Estimated Outlays..................................       30      130      212      281      309         963
    Title VII--Research, Extension, and Related Matters:
        Estimated Authorization Level......................    1,979    2,004    2,029    2,055    2,082      10,149
        Estimated Outlays..................................    1,010    1,596    2,012    2,037    2,063       8,719
    Title VIII--Forestry:
        Authorization Level................................       77       77       77       77       77         386
        Estimated Outlays..................................       35       54       66       73       77         305
    Title IX--Energy:
        Authorization Level................................      271      271      271      271      271       1,355
        Estimated Outlays..................................       71      150      210      252      271         953
    Title X--Horticulture:
        Estimated Authorization Level......................       36       36       36       36      180
        Estimated Outlays..................................       25       33       36       36       36         166
    Title XI--Crop Insurance:
        Estimated Authorization Level......................        1        0        0        0        0           1
        Estimated Outlays..................................        1        0        0        0        0           1
    Title XII--Miscellaneous:
        Estimated Authorization Level......................       72       71       71       71       71         356
        Estimated Outlays..................................       39       60       71       71       71         312
          Total Changes:
              Estimated Authorization Level................    4,911    5,434    5,464    5,505    5,537      26,852
              Estimated Outlays............................    2,203    4,011    5,042    5,339    5,476     22,070
    ----------------------------------------------------------------------------------------------------------------
    Note: Components may not sum to totals because of rounding.

        Title III: Trade. CBO estimates that implementing title III
    would cost $8.5 billion over the 2013-2017 period, assuming
    appropriation of the necessary amounts. Major components of
    that total are described below.
        Public Law 480. The Agricultural Trade Development and
    Assistance Act of 1954, typically referred to as Public Law
    480, established a variety of programs to provide food
    assistance to countries around the world. Section 3011 of the
    bill would extend the expiring authorities for title II of
    Public Law 480 (emergency and nonemergency food assistance
    programs) from December 31, 2012, to December 31, 2017. Section
    3012 would authorize the appropriation of $2 billion each year
    for those programs over the 2013-2017 period. Funding for title
    II programs, as set in annual appropriation acts, has remained
    around $1.5 billion in recent years. While section 3010 also
    would extend the authority for title I (Trade and Economic
    Development Assistance) and title III (Food for Development) of
    Public Law 480, those programs have received no new funding in
    recent years. CBO estimates that implementing section 3011
    would cost $7.5 billion over the 2013-2017 period.
        McGovern-Dole International Food for Education and Child
    Nutrition Program. Under current law, the authorization of
    appropriations for the McGovern-Dole program expires at the end
    of 2012.The bill would reauthorize the appropriation of funds
    for this program through 2017. Funding for this program is used
    to purchase commodities and donate them overseas in support of
    infant and school feeding programs. In 2012, funding for this
    program was $184 million. Assuming that funding continues at
    that level and adjusting for anticipated inflation, CBO
    estimates that implementing this provision would cost $932
    million over the 2013-2017 period.
        Global Crop Diversity Trust. Section 3206 would reauthorize
    funding to help promote the conservation of food crops. This
    provision would authorize the appropriation of $50 million over
    the 2013-2017 period, and CBO estimates that implementing it
    would cost $50 million over that period.
        Title IV: Nutrition. CBO estimates that implementing the
    discretionary provisions of title IV would cost about $1
    billion over the 2013-2017 period, assuming appropriation of
    the necessary amounts.
        Commodity Supplemental Food Program. The bill would
    reauthorize through 2017 and modify the Commodity Supplemental
    Food Program (CSFP). The program currently provides food
    packages to low-income elderly people, pregnant and postpartum
    women, and young children. Under the bill, only low-income
    people aged 60 or older could receive benefits. CBO estimates
    that this change would reduce costs in the program by about 3
    percent per year. The CSFP received an appropriation of $177
    million in fiscal year 2012. CBO estimates that implementing
    this provision would cost $881 million over the 2013-2017
    period, assuming the appropriation of the necessary amounts.
        Farmers Market Nutrition Program. The bill would authorize
    the appropriation of funds for the Farmers Market Nutrition
    Program. Based on historical spending on similar activities,
    CBO estimates that implementing this provision would cost $100
    million over the 2013-2017 period, assuming the appropriation
    of the necessary amounts. This authority would be in addition
    to the $103 million in mandatory funds provided over that
    period for the same purpose.
        Title V: Credit. CBO estimates that implementing title V
    would cost $463 million over the 2013-2017 period, assuming
    appropriation of the necessary amounts. Components of that
    total are described below.
        Authorization of Appropriations and Allocation of Funds.
    Section 5301 would amend and extend the farm credit programs
    administered by USDA. CBO estimates that implementing the
    authorized loan levels, based on subsidy rates in 2011, would
    cost $418 million over the 2013-2017 period. Section 5301 also
    would reauthorize the conservation loan program and grants to
    farmers with individual development savings accounts. CBO
    estimates that implementing the conservation loan program and
    the individual development accounts would cost $30 million over
    the next five years.
        State Agricultural Mediation Programs. Section 5002 would
    extend the authorization for appropriations to State
    Agricultural Mediation Programs for two years, from 2015 to
    2017, and would cost $15 million over that period.
        Title VI: Rural Development. Title VI would reauthorize a
    number of rural development programs, including grants and
    other financial assistance for infrastructure improvement,
    business investment, and regional development. This title also
    would reauthorize and modify USDA's authority to guarantee
    loans under the Rural Electrification Act. CBO estimates that
    spending for those programs would total $963 million over the
    2013-2017 period, assuming appropriation of amounts specified
    and estimated to be necessary. This estimate reflects
    historical expenditure patterns for similar rural development
    activities of USDA.
        Title VII: Research, Extension, and Related Matters. Title
    VII would authorize appropriations for many agricultural
    research and education programs and initiatives. CBO estimates
    that implementing this title would cost $8.7 billion over the
    2013-2017 period, assuming appropriation of the necessary
    amounts. About $3.4 billion of that amount is specifically
    authorized by the legislation. Estimated funding for the other
    programs is based on information from USDA and on funding
    levels provided for the same or similar programs or initiatives
    in recent years.
        Estimated spending over the 2013-2017 period for research
    programs includes:
               $6.3 billion for basic research and
            extension services and for applied research in areas
            such as animal health, alternative crops, nutrition
            education, aquaculture, and rangeland;
               $0.2 billion to upgrade agriculture and food
            sciences facilities at traditionally black, Native
            American, and Hispanic-serving facilities;
               $1.2 billion for high-priority research and
            extension initiatives, such as biological applications,
            organic farming, specialty crops, and food protection;
               $0.4 billion for endowments, grants, and
            research at Native American land-grant institutions,
            and for beginning farmer and rancher development; and
               $0.6 billion for biosecurity planning,
            preparation, response, development of countermeasures,
            national products research, and for research in biomass
            and bioenergy.
        Title VIII: Forestry. Title VIII would authorize the
    appropriation of $223 million over the 2013-2017 period for
    programs established by the Cooperative Forestry Assistance Act
    of 1978. Those programs protect environmentally sensitive
    forest lands, provide technical assistance to private forest
    owners, and award grants to local governments to establish
    community forests. Title VIII also would authorize the
    appropriation of $82 million over that period for other
    forestry programs. In total, CBO estimates that implementing
    title VIII would cost about $305 billion over the 2013-2017
    period, assuming appropriation of the necessary amounts.
        Title IX: Energy. Title IX would authorize appropriations
    of $1.4 billion over the next five years for the energy
    programs covered in the legislation. The bill would authorize:
               $375 million for grants and loan guarantees
            to individuals, state and local governments,
            cooperatives, and other entities to fund the
            development, construction, and retrofitting of
            demonstration- and commercial-scale biorefineries;
               $225 million for grants and loan guarantees
            to state and local governments, rural electric
            cooperatives, and other entities to perform energy
            audits, purchase renewable energy systems, and improve
            energy efficiency;
               $250 million for the Secretaries of
            Agriculture and Energy to coordinate policies and
            procedures that promote research and development
            regarding the production of biofuels and biobased
            products;
               $375 million for extending the Biomass Crop
            Assistance Program to encourage producers to grow
            biomass crops and to cover a portion of the cost to
            transport biomass products to facilities that would
            convert those products into energy; and
               $130 million for various other energy
            programs.
        Assuming appropriations of the specified amounts, CBO
    estimates that implementing title IX would cost $953 million
    over the next five years.
        Title X: Horticulture. Assuming appropriation of the
    authorized amounts, CBO estimates that implementing title X
    would cost $166 million over the 2013-2017 period to support
    and encourage farmers' markets and local food promotion
    programs, modernization and technology upgrades for the
    National Organic Program, specialty crop market news, and
    organic production and market data initiatives.
        Title XI: Crop Insurance. Title XI would require USDA to
    conduct studies on the feasibility of food safety insurance, a
    poultry catastrophic disease program, and poultry business
    interruption insurance policies. CBO estimates those studies
    would cost $1 million.
        Title XII: Miscellaneous. CBO estimates that implementing
    title XII would cost $312 million over the 2013-2017 period,
    assuming appropriation of the necessary amounts, for a variety
    of programs, including:
               $95 million for outreach and assistance for
            socially disadvantaged and veteran farmers and
            ranchers,
               $70 million for national sheep industry
            improvement center, trichinae certification, and
            aquatic animal health,
               $86 million to development and promotion of
            maple syrup, and
               $61 million for safety and training of the
            agricultural labor force and for establishing an office
            of tribal relations and a military veterans
            agricultural liaison office in USDA.
        Pay-As-You-Go-Considerations: The Statutory Pay-As-You-Go
    Act of 2010 establishes budget-reporting and enforcement
    procedures for legislation affecting on-budget direct spending
    or revenues. The net changes in outlays that are subject to
    those pay-as-you-go procedures are show in the following table.

        TABLE 4. CBO ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS FOR H.R. 6083, THE FEDERAL AGRICULTURE REFORM AND RISK MANAGEMENT ACT OF 2012, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON
                                                                                      AGRICULTURE ON JULY 11, 2012
    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                By fiscal year, in millions of dollars--
                                                                  ----------------------------------------------------------------------------------------------------------------------------------
                                                                    2012     2013     2014      2015      2016      2017      2018      2019      2020      2021      2022     2012-2017   2012-2022
    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               NET INCREASE OR DECREASE (-) IN THE DEFICIT

    Statutory Pay-As-You-Go Impact...............................       0     -306    -5,968    -3,612    -3,491    -3,327    -3,387    -3,709    -3,698    -3,834    -3,810     -16,705     -35,143
    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

        Intergovernmental and private-sector impact: The bill would
    impose intergovernmental and private-sector mandates as defined
    in UMRA. CBO estimates that the aggregate costs of mandates on
    state, local, and tribal governments would fall below the
    annual threshold established in UMRA for intergovernmental
    mandates ($73 million in 2012, adjusted annually for
    inflation). Because the cost of some of the mandates on the
    private sector would depend on future regulations, CBO cannot
    determine whether the aggregate cost of those mandates would
    exceed the annual threshold established in UMRA for private-
    sector mandates ($146 million in 2012, adjusted annually for
    inflation).

    Mandates that apply to public and private entities

        The bill would impose an intergovernmental and private-
    sector mandate by extending maintenance fees for the use of
    pesticides through 2017. The bill also would increase the
    amount of maintenance fees collected annually to about $28
    million from the current $22 million collected. According to
    information from the Environmental Protection Agency, public
    entities usually receive waivers from maintenance fees for
    minor use or public health uses. Thus, fees paid by public
    entities are minimal and make up a very small portion of the
    total fees collected. The majority of the amount collected
    would be paid by private entities.

    Mandates that apply to public entities only

        The bill would preempt state laws that regulate the
    production and manufacture of agricultural products offered for
    sale in interstate commerce if those laws impose standards or
    conditions that are in addition to the standards and conditions
    imposed by federal law or the laws of the producing or
    manufacturing state. Many states have laws regulating the
    production and manufacture of agricultural products that are
    different than the laws of other states. By limiting a state's
    ability to regulate agricultural products sold under its
    jurisdiction, the bill would preempt state authority. However,
    because state and local governments would not be required to
    take any action resulting in additional spending or lost
    revenue, CBO estimates that the cost of the preemption would be
    insignificant.

    Mandates that apply to private entities only

        Requirements on Dairy Handlers. The bill would impose
    mandates on dairy handlers that purchase milk from dairy
    producers participating in the Dairy Market Stabilization
    Program (DMSP). Under the DMSP, when producer margins fall
    below a designated amount, handlers would be required to report
    information to USDA, reduce payments for milk to participating
    dairy producers, and pay to USDA the amount by which the
    payment was reduced. Thus, the bill would impose new
    requirements on dairy handlers who are not voluntary
    participants in DMSP. According to information from industry
    sources, the cost for handlers to collect and report
    information under the DMSP could amount to hundreds of millions
    of dollars annually, depending on regulations to be issued by
    USDA.
        Standards for Imports of Olive Oil. The bill would require
    imports of olive oil to meet the same standards as olive oil
    produced in the United States if a marketing order for olive
    oil is established. A marketing order for olive oil has been
    proposed, but the process of approving the order is in its
    early stages. CBO has no basis for determining what the final
    standards of a marketing order would be, if approved; and thus
    the cost to importers is uncertain.
        Pesticide Fees and Reporting Requirements. The bill would
    impose a private-sector mandate by extending registration
    service fees for the use of pesticides for five years.
    Pesticide registration service fees amount to about $15 million
    annually. The bill also would impose a private-sector mandate
    if manufacturers of pesticides currently exempt from
    registration requirements would be required to submit efficacy
    data to support some statements on product labels. Based on
    information from the Environmental Protection Agency and
    industry experts, CBO expects that the cost of the mandate
    could amount to tens of millions of dollars.

                             PREVIOUS CBO ESTIMATES

    Draft House Legislation

        On July 5, 2012, CBO transmitted a cost estimate for draft
    legislation that was posted on the Web site of the House
    Committee on Agriculture prior to markup. The current estimate
    is based on H.R. 6083, as ordered reported by the committee on
    July 11, 2012. The amendments adopted during markup affected
    estimates of discretionary spending.

    S. 3240

        On July 6, 2012, CBO transmitted a cost estimate for S.
    3240, the Agriculture Reform, Food, and Jobs Act of 2012, as
    passed by the Senate on June 21, 2012. CBO estimated that
    enacting S. 3240 would bring total direct spending for USDA
    programs to $970.0 billion over the 2013-2022 period, or $23.1
    billion less than CBO projected would be spent if current
    programs continued as under current law. H.R. 6083, the Federal
    Agriculture Reform and Risk Management Act of 2012, as ordered
    reported by the House Committee on Agriculture on July 11,
    2012, would result in total direct spending for USDA programs
    of $957.7 billion over the 2013-2022 period, or $35.1 billion
    less than the CBO baseline projections for those programs.
    Thus, H.R. 6083 would result in total direct spending for USDA
    programs over the 2013-2022 period that is $12.0 billion less
    than S. 3240.
        Differences between S. 3240 and H.R. 6083 are shown in
    Table 5. The combined change in spending from provisions
    affecting commodities and crop insurance is similar between the
    two bills--$14.1 billion less in the H.R. 6083 and $14.4
    billion less in S. 3240, compared with continuation of current
    programs in the CBO baseline. However, H.R. 6083 would result
    in lower spending on commodities and more spending on crop
    insurance, compared with S. 3240.
        Title I. The total change in commodity payments between the
    House and Senate bills is shown in Table 6. Estimated commodity
    payments under the House bill would be around $4.0 billion less
    than under the Senate bill, with the House bill resulting in
    relatively smaller reductions in payments for wheat, rice, and
    peanuts, and relatively higher reductions in payments for feed
    grains and oilseeds, compared with the estimates for the Senate
    bill. The county-based revenue options in the two bills are
    similar, but payments under the price-loss coverage option in
    the House bill are expected to be lower than the farm-level
    revenue option in the Senate's legislation. In addition, the
    timing of payments in the House bill would be delayed until
    after October 1, so that there would be one less payment in the
    2013-2022 period.
        Title IV. CBO estimated that the nutrition provisions in
    title IV of S. 3240 would reduce direct spending by $4.0
    billion over the 2013-2022 period, about $12.1 billion less
    than the reductions in title IV of H.R. 6083. While S. 3240
    included the same change to utility allowances as H.R. 6083,
    H.R. 6083 contains additional cuts to SNAP, including
    provisions to restrict categorical eligibility and repeal state
    performance awards, among other changes.
        Title XI. Changes in crop insurance provisions in H.R. 6083
    are estimated to increase spending by $9.5 billion over the
    2013-2022 period, compared with the estimated increase in
    spending of $5.0 billion for the crop-insurance provisions
    included in S. 3240. The higher estimated spending for the
    House bill reflects higher participation in the Supplemental
    Coverage Option, lower savings from commodity program effects
    on crop-insurance participation, and higher spending for the
    Stacked Income Protection program for cotton producers.
        Discretionary Costs. S. 3240 would authorize spending
    subject to appropriation of $29.0 billion over the 2013-2022
    period, CBO estimates, while the authorization level in H.R.
    6083 would total an estimated $22.1 billion--$6.9 billion less
    than in S. 3240.

    Agriculture Reconciliation Act of 2012

        On April 23, 2012, CBO transmitted a cost estimate for the
    Agriculture Reconciliation Act of 2012, as approved by the
    House Committee on Agriculture on April 18, 2012. CBO estimated
    that enacting that legislation would reduce direct spending in
    nutrition programs by $33.7 billion over the 2013-2022 period,
    $17.6 billion more than would result if provisions in title IV
    of H.R. 6083 were enacted. Differences in the estimates reflect
    differences in the legislation.
        The Agriculture Reconciliation Act included a change to
    SNAP utility allowances that CBO estimates would reduce
    benefits for more participants than a similar provision in H.R.
    6083. The Agriculture Reconciliation Act would require all
    households to show proof that they pay heating or cooling costs
    to claim the utility allowance. Under H.R. 6083, SNAP
    households who receive energy assistance payments below $10
    annually would no longer qualify automatically for a utility
    allowance and would have to show proof that they pay heating or
    cooling costs in order to claim the allowance; households who
    receive more than $10 annually in energy assistance would still
    qualify automatically for a utility allowance. The Agriculture
    Reconciliation Act also contained further cuts to SNAP that are
    not included in H.R. 6083, including provisions that would
    accelerate the sunset date of a benefit increase stemming from
    the American Recovery and Reinvestment Act and reduce funding
    for employment and training programs and nutrition education,
    among other changes.

     TABLE 5. COMPARISON BY TITLE OF THE TOTAL CHANGE IN DIRECT SPENDING FOR
    H.R. 6083 AS ORDERED REPORTED ON JULY 11, 2012, AND S. 3240 AS PASSED ON
                                  JUNE 21, 2012
    ------------------------------------------------------------------------
                                         Totals for fiscal years 2013-2022,
                                              in millions of dollars--
                Description            -------------------------------------
                                                    H.R. 6083b
                                         S. 3240a                Differencec
    ------------------------------------------------------------------------
    Title I--Commodities:
        Change in Budget Authority....     -19,188     -23,370       -4,182
        Change in Outlays.............     -19,428     -23,584       -4,156
    Title II--Conservation:
        Change in Budget Authority....      -6,934      -6,446          448
        Change in Outlays.............      -6,376      -6,148          228
    Title IV--Nutrition:
        Change in Budget Authority....      -3,940     -16,085      -12,135
        Change in Outlays.............      -4,000     -16,075      -12,075
    Title VII--Research, Extension,
     and Related Matters:
        Change in Budget Authority....         715         580         -135
        Change in Outlays.............         681         546         -135
    Title IX--Energy:
        Change in Budget Authority....         801           0         -801
        Change in Outlays.............         780           0         -780
    Title XI--Crop Insurance:
        Change in Budget Authority....       5,901      10,999        5,098
        Change in Outlays.............       5,036       9,523        4,487
    Title XII--Miscellaneous:
        Change in Budget Authority....        -374          50          424
        Change in Outlays.............        -319          50          369
    Other Titles:d
        Change in Budget Authority....         514         538           24
        Change in Outlays.............         482         542           59
                                       -------------------------------------
        Total Changes:
        Change in Budget Authority....     -22,504     -33,751      -11,247
        Change in Outlays.............     -23,143     -35,143     -12,000
    ------------------------------------------------------------------------
    aAgriculture Reform, Food, and Jobs Act of 2012, as passed by the Senate
      on June 21, 2012.
    bFederal Agriculture Reform and Risk Management Act of 2012, as ordered
      reported by the House Committee on Agriculture on July 11, 2012.
    cDifference = House estimate less Senate estimate.
    dOther titles (with differences) include: Title III--Trade (0); Title V--
      Credit (0); Title VI--Rural Development (-10); Title VIII--Forestry (-
      5); and Title X--Horticulture (77).

      TABLE 6. COMPARISON BY CROP OF THE TOTAL CHANGE IN COMMODITY PAYMENTS
     BETWEEN H.R. 6083 AS ORDERED REPORTED ON JULY 11, 2012, AND S. 3240 AS
                             PASSED ON JUNE 21, 2012
    ------------------------------------------------------------------------
                                         Totals for fiscal years 2013-2022,
                                              in millions of dollars--
                   Crop                -------------------------------------
                                                    H.R. 6083b
                                         S. 3240a                Differencec
    ------------------------------------------------------------------------
    Corn..............................      -5,969     -11,031       -5,062
    Sorghum...........................        -525      -1,021         -496
    Barley............................        -625        -138          487
    Oats..............................         -13          84           97
          Total Feed Grains...........      -7,132    -12, 105       -4,973
    Soybeans..........................       1,272      -1,509       -2,781
    Wheat.............................      -6,673      -5,448        1,225
    Upland Cottond....................      -6,077      -6,077            0
    Rice..............................      -2,842      -1,075        1,767
    Peanuts...........................        -314         187          501
    Other Oilseeds....................          44         243          199
    Dairy.............................         -59         -38           21
    Dry Peas..........................          17         101           84
    Lentils...........................          28          15          -13
                                       -------------------------------------
          Total Changes...............     -21,677     -25,707      -4,030
    ------------------------------------------------------------------------
    a Agriculture Reform, Food, and Jobs Act of 2012, as passed by the
      Senate on June 21, 2012.
    b Federal Agriculture Reform and Risk management Act of 2012, as ordered
      reported by the House Committee on Agriculture on July 11, 2012.
    c Difference = House minus Senate total changes.
    d. Upland cotton does not include any potential benefits under the
      Stacked Income Protection Program in the Crop Insurance title, which
      CBO estimates would be $3.9 billion under H.R. 6083 and $3.2 billion
      under S. 3240 over the 2013-2022 period.
    Note: Change from CBO March 2012 Baseline.

        Estimate prepared by: Federal Costs: Jim Langley, Greg
    Hitz, Dave Hull, Kathleen FitzGerald, Emily Holcombe, Ann
    Futrell, Dan Hoople, and Jeff LaFave.
        Impact on State, local, and tribal governments: J'nell L.
    Blanco and Lisa Ramirez-Branum.
        Impact on the private sector: Amy Petz and Vi Nguyen.
        Estimate approved by: Theresa Gullo, Deputy Assistant
    Director for Budget Analysis.

                        Performance Goals and Objectives

        With respect to the requirement of clause 3(c)(4) of rule
    XIII of the Rules of the House of Representatives, the
    performance goals and objections of this legislation are to
    provide for the reform and continuation of agricultural and
    other programs of the Department of Agriculture through fiscal
    year 2017, and for other purposes.

                       Constitutional Authority Statement

        The Committee finds the Constitutional authority for this
    legislation in Article I, Section 8, Clause 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.

                            Committee Cost Estimate

        Pursuant to clause 3(d)(2) of rule XIII of the Rules of the
    House of Representatives, the Committee report incorporates the
    cost estimate prepared by the Director of the Congressional
    Budget Office pursuant to sections 402 and 423 of the
    Congressional Budget Act of 1974.

                          Advisory Committee Statement

        No advisory committee within the meaning of section 5(b) of
    the Federal Advisory Committee Act was created by this
    legislation.

                    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).

                           Federal Mandates Statement

        The Committee adopted as its own the estimate of Federal
    mandates prepared by the Director of the Congressional Budget
    Office pursuant to section 423 of the Unfunded Mandates Reform
    Act (Public Law 104-4).

    Earmark Statement Required by Clause 9 of Rule XXI of the Rules of the
                            House of Representatives

        H.R. 6083 does not contain any congressional earmarks,
    limited tax benefits, or limited tariff benefits as defined in
    clause 9(e), 9(f), or 9(g) of rule XXI of the Rules of the
    House Representatives.

             Changes in Existing Law Made by the Bill, as Reported

      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, as reported, are shown as follows (existing law
    proposed to be omitted is enclosed in black brackets, new
    matter is printed in italic, existing law in which no change is
    proposed is shown in roman):

                   FOOD, CONSERVATION, AND ENERGY ACT OF 2008

               *       *       *       *       *       *       *
    TITLE I--COMMODITY PROGRAMS

               *       *       *       *       *       *       *

    Subtitle A--Direct Payments and Counter-Cyclical Payments

               *       *       *       *       *       *       *

    [SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.

      [(a) Payment Required.--For each of the 2008 through 2012
    crop years of each covered commodity (other than pulse crops),
    the Secretary shall make direct payments to producers on farms
    for which base acres and payment yields are established.
      [(b) Payment Rate.--Except as provided in section 1105, the
    payment rates used to make direct payments with respect to
    covered commodities for a crop year shall be as follows:
              [(1) Wheat, $0.52 per bushel.
              [(2) Corn, $0.28 per bushel.
              [(3) Grain sorghum, $0.35 per bushel.
              [(4) Barley, $0.24 per bushel.
              [(5) Oats, $0.024 per bushel.
              [(6) Upland cotton, $0.0667 per pound.
              [(7) Long grain rice, $2.35 per hundredweight.
              [(8) Medium grain rice, $2.35 per hundredweight.
              [(9) Soybeans, $0.44 per bushel.
              [(10) Other oilseeds, $0.80 per hundredweight.
      [(c) Payment Amount.--The amount of the direct payment to be
    paid to the producers on a farm for a covered commodity for a
    crop year shall be equal to the product of the following:
              [(1) The payment rate specified in subsection (b).
              [(2) The payment acres of the covered commodity on
            the farm.
              [(3) The payment yield for the covered commodity for
            the farm.
      [(d) Time for Payment.--
              [(1) In general.--Except as provided in paragraph
            (2), in the case of each of the 2008 through 2012 crop
            years, the Secretary may not make direct payments
            before October 1 of the calendar year in which the crop
            of the covered commodity is harvested.
              [(2) Advance payments.--
                      [(A) Option.--
                              [(i) In general.--At the option of
                            the producers on a farm, the Secretary
                            shall pay in advance up to 22 percent
                            of the direct payment for a covered
                            commodity for any of the 2008 through
                            2011 crop years to the producers on a
                            farm.
                              [(ii) 2008 crop year.--If the
                            producers on a farm elect to receive
                            advance direct payments under clause
                            (i) for a covered commodity for the
                            2008 crop year, as soon as practicable
                            after the election, the Secretary shall
                            make the advance direct payment to the
                            producers on the farm.
                      [(B) Month.--
                              [(i) Selection.--Subject to clauses
                            (ii) and (iii), the producers on a farm
                            shall select the month during which the
                            advance payment for a crop year will be
                            made.
                              [(ii) Options.--The month selected
                            may be any month during the period--
                                      [(I) beginning on December 1
                                    of the calendar year before the
                                    calendar year in which the crop
                                    of the covered commodity is
                                    harvested; and
                                      [(II) ending during the month
                                    within which the direct payment
                                    would otherwise be made.
                              [(iii) Change.--The producers on a
                            farm may change the selected month for
                            a subsequent advance payment by
                            providing advance notice to the
                            Secretary.
              [(3) Repayment of advance payments.--If a producer on
            a farm that receives an advance direct payment for a
            crop year ceases to be a producer on that farm, or the
            extent to which the producer shares in the risk of
            producing a crop changes, before the date the remainder
            of the direct payment is made, the producer shall be
            responsible for repaying the Secretary the applicable
            amount of the advance payment, as determined by the
            Secretary.

    [SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

      [(a) Payment Required.--Except as provided in section 1105,
    for each of the 2008 through 2012 crop years for each covered
    commodity, the Secretary shall make counter-cyclical payments
    to producers on farms for which payment yields and base acres
    are established with respect to the covered commodity if the
    Secretary determines that the effective price for the covered
    commodity is less than the target price for the covered
    commodity.
      [(b) Effective Price.--
              [(1) Covered commodities other than rice.--Except as
            provided in paragraph (2), for purposes of subsection
            (a), the effective price for a covered commodity is
            equal to the sum of the following:
                      [(A) The higher of the following:
                              [(i) The national average market
                            price received by producers during the
                            12-month marketing year for the covered
                            commodity, as determined by the
                            Secretary.
                              [(ii) The national average loan rate
                            for a marketing assistance loan for the
                            covered commodity in effect for the
                            applicable period under subtitle B.
                      [(B) The payment rate in effect for the
                    covered commodity under section 1103 for the
                    purpose of making direct payments with respect
                    to the covered commodity.
              [(2) Rice.--In the case of long grain rice and medium
            grain rice, for purposes of subsection (a), the
            effective price for each type or class of rice is equal
            to the sum of the following:
                      [(A) The higher of the following:
                              [(i) The national average market
                            price received by producers during the
                            12-month marketing year for the type or
                            class of rice, as determined by the
                            Secretary.
                              [(ii) The national average loan rate
                            for a marketing assistance loan for the
                            type or class of rice in effect for the
                            applicable period under subtitle B.
                      [(B) The payment rate in effect for the type
                    or class of rice under section 1103 for the
                    purpose of making direct payments with respect
                    to the type or class of rice.
      [(c) Target Price.--
              [(1) 2008 crop year.--For purposes of the 2008 crop
            year, the target prices for covered commodities shall
            be as follows:
                      [(A) Wheat, $3.92 per bushel.
                      [(B) Corn, $2.63 per bushel.
                      [(C) Grain sorghum, $2.57 per bushel.
                      [(D) Barley, $2.24 per bushel.
                      [(E) Oats, $1.44 per bushel.
                      [(F) Upland cotton, $0.7125 per pound.
                      [(G) Long grain rice, $10.50 per
                    hundredweight.
                      [(H) Medium grain rice, $10.50 per
                    hundredweight.
                      [(I) Soybeans, $5.80 per bushel.
                      [(J) Other oilseeds, $10.10 per
                    hundredweight.
              [(2) 2009 crop year.--For purposes of the 2009 crop
            year, the target prices for covered commodities shall
            be as follows:
                      [(A) Wheat, $3.92 per bushel.
                      [(B) Corn, $2.63 per bushel.
                      [(C) Grain sorghum, $2.57 per bushel.
                      [(D) Barley, $2.24 per bushel.
                      [(E) Oats, $1.44 per bushel.
                      [(F) Upland cotton, $0.7125 per pound.
                      [(G) Long grain rice, $10.50 per
                    hundredweight.
                      [(H) Medium grain rice, $10.50 per
                    hundredweight.
                      [(I) Soybeans, $5.80 per bushel.
                      [(J) Other oilseeds, $10.10 per
                    hundredweight.
                      [(K) Dry peas, $8.32 per hundredweight.
                      [(L) Lentils, $12.81 per hundredweight.
                      [(M) Small chickpeas, $10.36 per
                    hundredweight.
                      [(N) Large chickpeas, $12.81 per
                    hundredweight.
              [(3) Subsequent crop years.--For purposes of each of
            the 2010 through 2012 crop years, the target prices for
            covered commodities shall be as follows:
                      [(A) Wheat, $4.17 per bushel.
                      [(B) Corn, $2.63 per bushel.
                      [(C) Grain sorghum, $2.63 per bushel.
                      [(D) Barley, $2.63 per bushel.
                      [(E) Oats, $1.79 per bushel.
                      [(F) Upland cotton, $0.7125 per pound.
                      [(G) Long grain rice, $10.50 per
                    hundredweight.
                      [(H) Medium grain rice, $10.50 per
                    hundredweight.
                      [(I) Soybeans, $6.00 per bushel.
                      [(J) Other oilseeds, $12.68 per
                    hundredweight.
                      [(K) Dry peas, $8.32 per hundredweight.
                      [(L) Lentils, $12.81 per hundredweight.
                      [(M) Small chickpeas, $10.36 per
                    hundredweight.
                      [(N) Large chickpeas, $12.81 per
                    hundredweight.
      [(d) Payment Rate.--The payment rate used to make counter-
    cyclical payments with respect to a covered commodity for a
    crop year shall be equal to the difference between--
              [(1) the target price for the covered commodity; and
              [(2) the effective price determined under subsection
            (b) for the covered commodity.
      [(e) Payment Amount.--If counter-cyclical payments are
    required to be paid under this section for any of the 2008
    through 2012 crop years of a covered commodity, the amount of
    the counter-cyclical payment to be paid to the producers on a
    farm for that crop year shall be equal to the product of the
    following:
              [(1) The payment rate specified in subsection (d).
              [(2) The payment acres of the covered commodity on
            the farm.
              [(3) The payment yield for the covered commodity for
            the farm.
      [(f) Time for Payments.--
              [(1) General rule.--Except as provided in paragraph
            (2), if the Secretary determines under subsection (a)
            that counter-cyclical payments are required to be made
            under this section for the crop of a covered commodity,
            beginning October 1, or as soon as practicable
            thereafter, after the end of the marketing year for the
            covered commodity, the Secretary shall make the
            counter-cyclical payments for the crop.
              [(2) Availability of partial payments.--
                      [(A) In general.--If, before the end of the
                    12-month marketing year for a covered
                    commodity, the Secretary estimates that
                    counter-cyclical payments will be required for
                    the crop of the covered commodity, the
                    Secretary shall give producers on a farm the
                    option to receive partial payments of the
                    counter-cyclical payment projected to be made
                    for that crop of the covered commodity.
                      [(B) Election.--
                              [(i) In general.--The Secretary shall
                            allow producers on a farm to make an
                            election to receive partial payments
                            for a covered commodity under
                            subparagraph (A) at any time but not
                            later than 60 days prior to the end of
                            the marketing year for that covered
                            commodity.
                              [(ii) Date of issuance.--The
                            Secretary shall issue the partial
                            payment after the date of an
                            announcement by the Secretary but not
                            later than 30 days prior to the end of
                            the marketing year.
              [(3) Time for partial payments.--When the Secretary
            makes partial payments for a covered commodity for any
            of the 2008 through 2010 crop years--
                      [(A) the first partial payment shall be made
                    after completion of the first 180 days of the
                    marketing year for the covered commodity; and
                      [(B) the final partial payment shall be made
                    beginning October 1, or as soon as practicable
                    thereafter, after the end of the applicable
                    marketing year for the covered commodity.
              [(4) Amount of partial payment.--
                      [(A) First partial payment.--For each of the
                    2008 through 2010 crops of a covered commodity,
                    the first partial payment under paragraph (3)
                    to the producers on a farm may not exceed 40
                    percent of the projected counter-cyclical
                    payment for the covered commodity for the crop
                    year, as determined by the Secretary.
                      [(B) Final payment.--The final payment for a
                    covered commodity for a crop year shall be
                    equal to the difference between--
                              [(i) the actual counter-cyclical
                            payment to be made to the producers for
                            the covered commodity for that crop
                            year; and
                              [(ii) the amount of the partial
                            payment made to the producers under
                            subparagraph (A).
              [(5) Repayment.--The producers on a farm that receive
            a partial payment under this subsection for a crop year
            shall repay to the Secretary the amount, if any, by
            which the total of the partial payments exceed the
            actual counter-cyclical payment to be made for the
            covered commodity for that crop year.

    [SEC. 1105. AVERAGE CROP REVENUE ELECTION PROGRAM.

      [(a) Availability and Election of Alternative Approach.--
              [(1) Availability of average crop revenue election
            payments.--As an alternative to receiving counter-
            cyclical payments under section 1104 or 1304 and in
            exchange for a 20-percent reduction in direct payments
            under section 1103 or 1303 and a 30-percent reduction
            in marketing assistance loan rates under section 1202
            or 1307, with respect to all covered commodities and
            peanuts on a farm, during each of the 2009, 2010, 2011,
            and 2012 crop years, the Secretary shall give the
            producers on the farm an opportunity to make an
            irrevocable election to instead receive average crop
            revenue election (referred to in this section as
            ``ACRE'') payments under this section for the initial
            crop year for which the election is made through the
            2012 crop year.
              [(2) Limitation.--
                      [(A) In general.--The total number of planted
                    acres for which the producers on a farm may
                    receive ACRE payments under this section may
                    not exceed the total base acreage for all
                    covered commodities and peanuts on the farm.
                      [(B) Election.--If the total number of
                    planted acres to all covered commodities and
                    peanuts of the producers on a farm exceeds the
                    total base acreage of the farm, the producers
                    on the farm may choose which planted acres to
                    enroll in the program under this section.
              [(3) Election; time for election.--
                      [(A) In general.--The Secretary shall provide
                    notice to producers regarding the opportunity
                    to make each of the elections described in
                    paragraph (1).
                      [(B) Notice requirements.--The notice shall
                    include--
                              [(i) notice of the opportunity of the
                            producers on a farm to make the
                            election; and
                              [(ii) information regarding the
                            manner in which the election must be
                            made and the time periods and manner in
                            which notice of the election must be
                            submitted to the Secretary.
              [(4) Election deadline.--Within the time period and
            in the manner prescribed pursuant to paragraph (3), all
            of the producers on a farm shall submit to the
            Secretary notice of an election made under paragraph
            (1).
              [(5) Effect of failure to make election.--If all of
            the producers on a farm fail to make an election under
            paragraph (1), make different elections under paragraph
            (1), or fail to timely notify the Secretary of the
            election made, as required by paragraph (4), all of the
            producers on the farm shall be deemed to have made the
            election to receive counter-cyclical payments under
            section 1104 or 1304 for all covered commodities and
            peanuts on the farm, and to otherwise not have made the
            election described in paragraph (1), for the applicable
            crop years.
      [(b) Payments Required.--
              [(1) In general.--In the case of producers on a farm
            who make an election under subsection (a) to receive
            ACRE payments for any of the 2009 through 2012 crop
            years for all covered commodities and peanuts, the
            Secretary shall make ACRE payments available to the
            producers on a farm in accordance with this subsection.
              [(2) ACRE payment.--
                      [(A) In general.--Subject to paragraph (3),
                    in the case of producers on a farm described in
                    paragraph (1), the Secretary shall make ACRE
                    payments available to the producers on a farm
                    for each crop year if--
                              [(i) the actual State revenue for the
                            crop year for the covered commodity or
                            peanuts in the State determined under
                            subsection (c); is less than
                              [(ii) the ACRE program guarantee for
                            the crop year for the covered commodity
                            or peanuts in the State determined
                            under subsection (d).
                      [(B) Individual loss.--The Secretary shall
                    make ACRE payments available to the producers
                    on a farm in a State for a crop year only if
                    (as determined by the Secretary)--
                              [(i) the actual farm revenue for the
                            crop year for the covered commodity or
                            peanuts, as determined under subsection
                            (e); is less than
                              [(ii) the farm ACRE benchmark revenue
                            for the crop year for the covered
                            commodity or peanuts, as determined
                            under subsection (f).
              [(3) Time for payments.--In the case of each of the
            2009 through 2012 crop years, the Secretary shall make
            ACRE payments beginning October 1, or as soon as
            practicable thereafter, after the end of the applicable
            marketing year for the covered commodity or peanuts.
      [(c) Actual State Revenue.--
              [(1) In general.--For purposes of subsection
            (b)(2)(A), the amount of the actual State revenue for a
            crop year of a covered commodity or peanuts shall equal
            the product obtained by multiplying--
                      [(A) the actual State yield for each planted
                    acre for the crop year for the covered
                    commodity or peanuts determined under paragraph
                    (2); and
                      [(B) the national average market price for
                    the crop year for the covered commodity or
                    peanuts determined under paragraph (3).
              [(2) Actual state yield.--For purposes of paragraph
            (1)(A), the actual State yield for each planted acre
            for a crop year for a covered commodity or peanuts in a
            State shall equal (as determined by the Secretary)--
                      [(A) the quantity of the covered commodity or
                    peanuts that is produced in the State during
                    the crop year; divided by
                      [(B) the number of acres that are planted to
                    the covered commodity or peanuts in the State
                    during the crop year.
              [(3) National average market price.--For purposes of
            paragraph (1)(B), the national average market price for
            a crop year for a covered commodity or peanuts in a
            State shall equal the greater of--
                      [(A) the national average market price
                    received by producers during the 12-month
                    marketing year for the covered commodity or
                    peanuts, as determined by the Secretary; or
                      [(B) the marketing assistance loan rate for
                    the covered commodity or peanuts under section
                    1202 or 1307, as reduced under subsection
                    (a)(1).
      [(d) ACRE Program Guarantee.--
              [(1) Amount.--
                      [(A) In general.--For purposes of subsection
                    (b)(2)(A) and subject to subparagraph (B), the
                    ACRE program guarantee for a crop year for a
                    covered commodity or peanuts in a State shall
                    equal 90 percent of the product obtained by
                    multiplying--
                              [(i) the benchmark State yield for
                            each planted acre for the crop year for
                            the covered commodity or peanuts in a
                            State determined under paragraph (2);
                            and
                              [(ii) the ACRE program guarantee
                            price for the crop year for the covered
                            commodity or peanuts determined under
                            paragraph (3).
                      [(B) Minimum and maximum guarantee.--In the
                    case of each of the 2010 through 2012 crop
                    years, the ACRE program guarantee for a crop
                    year for a covered commodity or peanuts under
                    subparagraph (A) shall not decrease or increase
                    more than 10 percent from the guarantee for the
                    preceding crop year.
              [(2) Benchmark state yield.--
                      [(A) In general.--For purposes of paragraph
                    (1)(A)(i), subject to subparagraph (B), the
                    benchmark State yield for each planted acre for
                    a crop year for a covered commodity or peanuts
                    in a State shall equal the average yield per
                    planted acre for the covered commodity or
                    peanuts in the State for the most recent 5 crop
                    year yields, excluding each of the crop years
                    with the highest and lowest yields, using
                    National Agricultural Statistics Service data.
                      [(B) Assigned yield.--If the Secretary cannot
                    establish the benchmark State yield for each
                    planted acre for a crop year for a covered
                    commodity or peanuts in a State in accordance
                    with subparagraph (A) or if the yield
                    determined under subparagraph (A) is an
                    unrepresentative average yield for the State
                    (as determined by the Secretary), the Secretary
                    shall assign a benchmark State yield for each
                    planted acre for the crop year for the covered
                    commodity or peanuts in the State on the basis
                    of--
                              [(i) previous average yields for a
                            period of 5 crop years, excluding each
                            of the crop years with the highest and
                            lowest yields; or
                              [(ii) benchmark State yields for
                            planted acres for the crop year for the
                            covered commodity or peanuts in similar
                            States.
              [(3) ACRE program guarantee price.--For purposes of
            paragraph (1)(A)(ii), the ACRE program guarantee price
            for a crop year for a covered commodity or peanuts in a
            State shall be the simple average of the national
            average market price received by producers of the
            covered commodity or peanuts for the most recent 2 crop
            years, as determined by the Secretary.
              [(4) States with irrigated and nonirrigated land.--In
            the case of a State in which at least 25 percent of the
            acreage planted to a covered commodity or peanuts in
            the State is irrigated and at least 25 percent of the
            acreage planted to the covered commodity or peanuts in
            the State is not irrigated, the Secretary shall
            calculate a separate ACRE program guarantee for the
            irrigated and nonirrigated areas of the State for the
            covered commodity or peanuts.
      [(e) Actual Farm Revenue.--For purposes of subsection
    (b)(2)(B)(i), the amount of the actual farm revenue for a crop
    year for a covered commodity or peanuts shall equal the amount
    determined by multiplying--
              [(1) the actual yield for the covered commodity or
            peanuts of the producers on the farm; and
              [(2) the national average market price for the crop
            year for the covered commodity or peanuts determined
            under subsection (c)(3).
      [(f) Farm ACRE Benchmark Revenue.--For purposes of subsection
    (b)(2)(B)(ii), the farm ACRE benchmark revenue for the crop
    year for a covered commodity or peanuts shall equal the sum
    obtained by adding--
              [(1) the amount determined by multiplying--
                      [(A) the average yield per planted acre for
                    the covered commodity or peanuts of the
                    producers on the farm for the most recent 5
                    crop years, excluding each of the crop years
                    with the highest and lowest yields; and
                      [(B) the ACRE program guarantee price for the
                    applicable crop year for the covered commodity
                    or peanuts in a State determined under
                    subsection (d)(3); and
              [(2) the amount of the per acre crop insurance
            premium required to be paid by the producers on the
            farm for the applicable crop year for the covered
            commodity or peanuts on the farm.
      [(g) Payment Amount.--If ACRE payments are required to be
    paid for any of the 2009 through 2012 crop years of a covered
    commodity or peanuts under this section, the amount of the ACRE
    payment to be paid to the producers on the farm for the crop
    year under this section shall be equal to the product obtained
    by multiplying--
              [(1) the lesser of--
                      [(A) the difference between--
                              [(i) the ACRE program guarantee for
                            the crop year for the covered commodity
                            or peanuts in the State determined
                            under subsection (d); and
                              [(ii) the actual State revenue from
                            the crop year for the covered commodity
                            or peanuts in the State determined
                            under subsection (c); and
                      [(B) 25 percent of the ACRE program guarantee
                    for the crop year for the covered commodity or
                    peanuts in the State determined under
                    subsection (d);
              [(2)(A) for each of the 2009 through 2011 crop years,
            83.3 percent of the acreage planted or considered
            planted to the covered commodity or peanuts for harvest
            on the farm in the crop year; and
              [(B) for the 2012 crop year, 85 percent of the
            acreage planted or considered planted to the covered
            commodity or peanuts for harvest on the farm in the
            crop year; and
              [(3) the quotient obtained by dividing--
                      [(A) the average yield per planted acre for
                    the covered commodity or peanuts of the
                    producers on the farm for the most recent 5
                    crop years, excluding each of the crop years
                    with the highest and lowest yields; by
                      [(B) the benchmark State yield for the crop
                    year, as determined under subsection (d)(2).]

               *       *       *       *       *       *       *

    Subtitle C--Peanuts

               *       *       *       *       *       *       *

    [SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS.

      [(a) Payment Required.--For each of the 2008 through 2012
    crop years for peanuts, the Secretary shall make direct
    payments to the producers on a farm for which a payment yield
    and base acres for peanuts are established.
      [(b) Payment Rate.--Except as provided in section 1105, the
    payment rate used to make direct payments with respect to
    peanuts for a crop year shall be equal to $36 per ton.
      [(c) Payment Amount.--The amount of the direct payment to be
    paid to the producers on a farm for peanuts 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) In general.--Except as provided in paragraph
            (2), in the case of each of the 2008 through 2012 crop
            years, the Secretary may not make direct payments under
            this section before October 1 of the calendar year in
            which the crop is harvested.
              [(2) Advance payments.--
                      [(A) Option.--
                              [(i) In general.--At the option of
                            the producers on a farm, the Secretary
                            shall pay in advance up to 22 percent
                            of the direct payment for peanuts for
                            any of the 2008 through 2011 crop years
                            to the producers on a farm.
                              [(ii) 2008 crop year.--If the
                            producers on a farm elect to receive
                            advance direct payments under clause
                            (i) for peanuts for the 2008 crop year,
                            as soon as practicable after the
                            election, the Secretary shall make the
                            advance direct payment to the producers
                            on the farm.
                      [(B) Month.--
                              [(i) Selection.--Subject to clauses
                            (ii) and (iii), the producers on a farm
                            shall select the month during which the
                            advance payment for a crop year will be
                            made.
                              [(ii) Options.--The month selected
                            may be any month during the period--
                                      [(I) beginning on December 1
                                    of the calendar year before the
                                    calendar year in which the crop
                                    of peanuts is harvested; and
                                      [(II) ending during the month
                                    within which the direct payment
                                    would otherwise be made.
                              [(iii) Change.--The producers on a
                            farm may change the selected month for
                            a subsequent advance payment by
                            providing advance notice to the
                            Secretary.
              [(3) Repayment of advance payments.--If a producer on
            a farm that receives an advance direct payment for a
            crop year ceases to be a producer on that farm, or the
            extent to which the producer shares in the risk of
            producing a crop changes, before the date the remainder
            of the direct payment is made, the producer shall be
            responsible for repaying the Secretary the applicable
            amount of the advance payment, as determined by the
            Secretary.

    [SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.

      [(a) Payment Required.--Except as provided in section 1105,
    for each of the 2008 through 2012 crop years for peanuts, the
    Secretary shall make counter-cyclical payments to producers on
    farms for which payment yields and base acres for peanuts are
    established if the Secretary determines that the effective
    price for peanuts is less than the target price for peanuts.
      [(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 for
                    peanuts 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 applicable period under this subtitle.
              [(2) The payment rate in effect for peanuts under
            section 1303 for the purpose of making direct payments.
      [(c) Target Price.--For purposes of subsection (a), the
    target price for peanuts shall be equal to $495 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 for peanuts; and
              [(2) the effective price determined under subsection
            (b) for peanuts.
      [(e) Payment Amount.--If counter-cyclical payments are
    required to be paid for any of the 2008 through 2012 crops of
    peanuts, the amount of the counter-cyclical payment to be paid
    to the producers on a farm for that crop year shall be equal to
    the product of the following:
              [(1) The payment rate specified in subsection (d).
              [(2) The payment acres on the farm.
              [(3) The payment yield for the farm.
      [(f) Time for Payments.--
              [(1) General rule.--Except as provided in paragraph
            (2), if the Secretary determines under subsection (a)
            that counter-cyclical payments are required to be made
            under this section for a crop of peanuts, beginning
            October 1, or as soon as practicable after the end of
            the marketing year, the Secretary shall make the
            counter-cyclical payments for the crop.
              [(2) Availability of partial payments.--
                      [(A) In general.--If, before the end of the
                    12-month marketing year, the Secretary
                    estimates that counter-cyclical payments will
                    be required under this section for a crop year,
                    the Secretary shall give producers on a farm
                    the option to receive partial payments of the
                    counter-cyclical payment projected to be made
                    for the crop.
                      [(B) Election.--
                              [(i) In general.--The Secretary shall
                            allow producers on a farm to make an
                            election to receive partial payments
                            under subparagraph (A) at any time but
                            not later than 60 days prior to the end
                            of the marketing year for the crop.
                              [(ii) Date of issuance.--The
                            Secretary shall issue the partial
                            payment after the date of an
                            announcement by the Secretary but not
                            later than 30 days prior to the end of
                            the marketing year.
              [(3) Time for partial payments.--When the Secretary
            makes partial payments for any of the 2008 through 2010
            crop years--
                      [(A) the first partial payment shall be made
                    after completion of the first 180 days of the
                    marketing year for that crop; and
                      [(B) the final partial payment shall be made
                    beginning October 1, or as soon as practicable
                    thereafter, after the end of the applicable
                    marketing year for that crop.
              [(4) Amount of partial payments.--
                      [(A) First partial payment.--For each of the
                    2008 through 2010 crop years, the first partial
                    payment under paragraph (3) to the producers on
                    a farm may not exceed 40 percent of the
                    projected counter-cyclical payment for the crop
                    year, as determined by the Secretary.
                      [(B) Final payment.--The final payment for a
                    crop year shall be equal to the difference
                    between--
                              [(i) the actual counter-cyclical
                            payment to be made to the producers for
                            that crop year; and
                              [(ii) the amount of the partial
                            payment made to the producers under
                            subparagraph (A).
              [(5) Repayment.--The producers on a farm that receive
            a partial payment under this subsection for a crop year
            shall repay to the Secretary the amount, if any, by
            which the total of the partial payments exceed the
            actual counter-cyclical payment to be made for that
            crop year.]

               *       *       *       *       *       *       *

                               Subtitle E--Dairy

    [SEC. 1501. DAIRY PRODUCT PRICE SUPPORT PROGRAM.

      [(a) Definition of Net Removals.--In this section, the term
    ``net removals'' means--
              [(1) the sum of--
                      [(A) the quantity of a product described in
                    subsection (b) purchased by the Commodity
                    Credit Corporation under this section; and
                      [(B) the quantity of the product exported
                    under section 153 of the Food Security Act of
                    1985 (15 U.S.C. 713a-14); less
              [(2) the quantity of the product sold for
            unrestricted use by the Commodity Credit Corporation.
      [(b) Support Activities.--During the period beginning on
    January 1, 2008, and ending December 31, 2012, the Secretary
    shall support the price of cheddar cheese, butter, and nonfat
    dry milk through the purchase of such products made from milk
    produced in the United States.
      [(c) Purchase Price.--To carry out subsection (b) during the
    period specified in that subsection, the Secretary shall
    purchase--
              [(1) cheddar cheese in blocks at not less than $1.13
            per pound;
              [(2) cheddar cheese in barrels at not less than $1.10
            per pound;
              [(3) butter at not less than $1.05 per pound; and
              [(4) nonfat dry milk at not less than $0.80 per
            pound.
      [(d) Temporary Price Adjustment to Avoid Excess
    Inventories.--
              [(1) Adjustments authorized.--The Secretary may
            adjust the minimum purchase prices established under
            subsection (c) only as permitted under this subsection.
              [(2) Cheese inventories in excess of 200,000,000
            pounds.--If net removals for a period of 12 consecutive
            months exceed 200,000,000 pounds of cheese, but do not
            exceed 400,000,000 pounds, the Secretary may reduce the
            purchase prices under paragraphs (1) and (2) of
            subsection (c) during the immediately following month
            by not more than 10 cents per pound.
              [(3) Cheese inventories in excess of 400,000,000
            pounds.--If net removals for a period of 12 consecutive
            months exceed 400,000,000 pounds of cheese, the
            Secretary may reduce the purchase prices under
            paragraphs (1) and (2) of subsection (c) during the
            immediately following month by not more than 20 cents
            per pound.
              [(4) Butter inventories in excess of 450,000,000
            pounds.--If net removals for a period of 12 consecutive
            months exceed 450,000,000 pounds of butter, but do not
            exceed 650,000,000 pounds, the Secretary may reduce the
            purchase price under subsection (c)(3) during the
            immediately following month by not more than 10 cents
            per pound.
              [(5) Butter inventories in excess of 650,000,000
            pounds.--If net removals for a period of 12 consecutive
            months exceed 650,000,000 pounds of butter, the
            Secretary may reduce the purchase price under
            subsection (c)(3) during the immediately following
            month by not more than 20 cents per pound.
              [(6) Nonfat dry milk inventories in excess of
            600,000,000 pounds.--If net removals for a period of 12
            consecutive months exceed 600,000,000 pounds of nonfat
            dry milk, but do not exceed 800,000,000 pounds, the
            Secretary may reduce the purchase price under
            subsection (c)(4) during the immediately following
            month by not more than 5 cents per pound.
              [(7) Nonfat dry milk inventories in excess of
            800,000,000 pounds.--If net removals for a period of 12
            consecutive months exceed 800,000,000 pounds of nonfat
            dry milk, the Secretary may reduce the purchase price
            under subsection (c)(4) during the immediately
            following month by not more than 10 cents per pound.
      [(e) Uniform Purchase Price.--The prices that the Secretary
    pays for cheese, butter, or nonfat dry milk, respectively,
    under subsection (b) shall be uniform for all regions of the
    United States.
      [(f) Sales From Inventories.--In the case of each commodity
    specified in subsection (c) that is available for unrestricted
    use in the inventory of the Commodity Credit Corporation, the
    Secretary may sell the commodity at the market prices
    prevailing for that commodity at the time of sale, except that
    the sale price may not be less than 110 percent of the minimum
    purchase price specified in subsection (c) for that commodity.]

    SEC. 1502. DAIRY FORWARD PRICING PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (e) Duration.--
              (1) New contracts.--No forward price contract may be
            entered into under the program established under this
            section after September 30, [2012] 2017.
              (2) Application.--No forward contract entered into
            under the program may extend beyond September 30,
            [2015] 2020.

               *       *       *       *       *       *       *

    [SEC. 1506. MILK INCOME LOSS CONTRACT PROGRAM.

      [(a) Definitions.--In this section:
              [(1) Class i milk.--The term ``Class I milk'' means
            milk (including milk components) classified as Class I
            milk under a Federal milk marketing order.
              [(2) Eligible production.--The term ``eligible
            production'' means milk produced by a producer in a
            participating State.
              [(3) Federal milk marketing order.--The term
            ``Federal milk marketing order'' means an order issued
            under section 8c of the Agricultural Adjustment Act (7
            U.S.C. 608c), reenacted with amendments by the
            Agricultural Marketing Agreement Act of 1937.
              [(4) Participating state.--The term ``participating
            State'' means each State.
              [(5) Producer.--The term ``producer'' means an
            individual or entity that directly or indirectly (as
            determined by the Secretary)--
                      [(A) shares in the risk of producing milk;
                    and
                      [(B) makes contributions (including land,
                    labor, management, equipment, or capital) to
                    the dairy farming operation of the individual
                    or entity that are at least commensurate with
                    the share of the individual or entity of the
                    proceeds of the operation.
      [(b) Payments.--The Secretary shall offer to enter into
    contracts with producers on a dairy farm located in a
    participating State under which the producers receive payments
    on eligible production.
      [(c) Amount.--Payments to a producer under this section shall
    be calculated by multiplying (as determined by the Secretary)--
              [(1) the payment quantity for the producer during the
            applicable month established under subsection (e);
              [(2) the amount equal to--
                      [(A) $16.94 per hundredweight, as adjusted
                    under subsection (d); less
                      [(B) the Class I milk price per hundredweight
                    in Boston under the applicable Federal milk
                    marketing order; by
              [(3)(A) for the period beginning October 1, 2007, and
            ending September 30, 2008, 34 percent;
              [(B) for the period beginning October 1, 2008, and
            ending August 31, 2012, 45 percent; and
              [(C) for the period beginning September 1, 2012, and
            thereafter, 34 percent.
      [(d) Payment Rate Adjustment for Feed Prices.--
              [(1) Initial adjustment authority.--During the period
            beginning on January 1, 2008, and ending on August 31,
            2012, if the National Average Dairy Feed Ration Cost
            for a month during that period is greater than $7.35
            per hundredweight, the amount specified in subsection
            (c)(2)(A) used to determine the payment rate for that
            month shall be increased by 45 percent of the
            percentage by which the National Average Dairy Feed
            Ration Cost exceeds $7.35 per hundredweight.
              [(2) Subsequent adjustment authority.--For any month
            beginning on or after September 1, 2012, if the
            National Average Dairy Feed Ration Cost for the month
            is greater than $9.50 per hundredweight, the amount
            specified in subsection (c)(2)(A) used to determine the
            payment rate for that month shall be increased by 45
            percent of the percentage by which the National Average
            Dairy Feed Ration Cost exceeds $9.50 per hundredweight.
              [(3) National average dairy feed ration cost.--For
            each month, the Secretary shall calculate a National
            Average Dairy Feed Ration Cost per hundredweight using
            the same procedures (adjusted to a hundredweight basis)
            used to calculate the feed components of the estimated
            price of 16% Mixed Dairy Feed per pound noted on page
            33 of the USDA March 2008 Agricultural Prices
            publication (including the data and factors noted in
            footnote 4).
      [(e) Payment Quantity.--
              [(1) In general.--Subject to paragraph (2), the
            payment quantity for a producer during the applicable
            month under this section shall be equal to the quantity
            of eligible production marketed by the producer during
            the month.
              [(2) Limitation.--
                      [(A) In general.--The payment quantity for
                    all producers on a single dairy operation for
                    which the producers receive payments under
                    subsection (b) shall not exceed--
                              [(i) for the period beginning October
                            1, 2007, and ending September 30, 2008,
                            2,400,000 pounds;
                              [(ii) for the period beginning
                            October 1, 2008, and ending August 31,
                            2012, 2,985,000 pounds for each fiscal
                            year; and
                              [(iii) effective beginning September
                            1, 2012, 2,400,000 pounds per fiscal
                            year.
                      [(B) Standards.--For purposes of determining
                    whether producers are producers on separate
                    dairy operations or a single dairy operation,
                    the Secretary shall apply the same standards as
                    were applied in implementing the dairy program
                    under section 805 of the Agriculture, Rural
                    Development, Food and Drug Administration, and
                    Related Agencies Appropriations Act, 2001 (as
                    enacted into law by Public Law 106-387; 114
                    Stat. 1549A-50).
              [(3) Reconstitution.--The Secretary shall ensure that
            a producer does not reconstitute a dairy operation for
            the sole purpose of receiving additional payments under
            this section.
      [(f) Payments.--A payment under a contract under this section
    shall be made on a monthly basis not later than 60 days after
    the last day of the month for which the payment is made.
      [(g) Signup.--The Secretary shall offer to enter into
    contracts under this section during the period beginning on the
    date that is 90 days after the date of enactment of this Act
    and ending on September 30, 2012.
      [(h) Duration of Contract.--
              [(1) In general.--Except as provided in paragraph
            (2), any contract entered into by producers on a dairy
            farm under this section shall cover eligible production
            marketed by the producers on the dairy farm during the
            period starting with the first day of month the
            producers on the dairy farm enter into the contract and
            ending on September 30, 2012.
              [(2) Violations.--If a producer violates the
            contract, the Secretary may--
                      [(A) terminate the contract and allow the
                    producer to retain any payments received under
                    the contract; or
                      [(B) allow the contract to remain in effect
                    and require the producer to repay a portion of
                    the payments received under the contract based
                    on the severity of the violation.]

               *       *       *       *       *       *       *

    [SEC. 1509. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.

      [(a) Establishment.--Subject to the availability of
    appropriations to carry out this section, the Secretary shall
    establish a commission to be known as the ``Federal Milk
    Marketing Order Review Commission'' (referred to in this
    section as the ``commission''), which shall conduct a
    comprehensive review and evaluation of--
              [(1) the Federal milk marketing order system in
            effect on the date of establishment of the commission;
            and
              [(2) non-Federal milk marketing order systems.
      [(b) Elements of Review and Evaluation.--As part of the
    review and evaluation under subsection (a), the commission
    shall consider legislative and regulatory options for--
              [(1) ensuring that the competitiveness of dairy
            products with other competing products in the
            marketplace is preserved and enhanced;
              [(2) enhancing the competitiveness of American dairy
            producers in world markets;
              [(3) ensuring the competitiveness and transparency in
            dairy pricing;
              [(4) streamlining and expediting the process by which
            amendments to Federal milk market orders are adopted;
              [(5) simplifying the Federal milk marketing order
            system;
              [(6) evaluating whether the Federal milk marketing
            order system serves the interests of dairy producers,
            consumers, and dairy processors; and
              [(7) evaluating the nutritional composition of milk,
            including the potential benefits and costs of adjusting
            the milk content standards.
      [(c) Membership.--
              [(1) Composition.--The commission shall consist of 14
            members.
              [(2) Members.--As soon as practicable after the date
            on which funds are first made available to carry out
            this section, the Secretary shall appoint members to
            the commission according to the following requirements:
                      [(A) At least 1 member shall represent a
                    national consumer organization.
                      [(B) At least 4 members shall represent land-
                    grant universities or NLGCA Institutions (as
                    defined in section 1404 of the National
                    Agricultural Research, Extension, and Teaching
                    Policy Act of 1977 (7 U.S.C. 3103)) with
                    accredited dairy economic programs, with at
                    least 2 of those members being experts in the
                    field of economics.
                      [(C) At least 1 member shall represent the
                    food and beverage retail sector.
                      [(D) 4 dairy producers and 4 dairy
                    processors, appointed so as to balance
                    geographical distribution of milk production
                    and dairy processing, reflect all segments of
                    dairy processing, and represent all regions of
                    the United States equitably, including States
                    that operate outside of a Federal milk
                    marketing order.
              [(3) Chair.--The commission shall elect 1 of the
            appointed members of the commission to serve as
            chairperson for the duration of the proceedings of the
            commission.
              [(4) Vacancy.--Any vacancy occurring before the
            termination of the commission shall be filled in the
            same manner as the original appointment.
              [(5) Compensation.--Members of the commission shall
            serve without compensation, but shall be reimbursed by
            the Secretary from existing budget authority for
            necessary and reasonable expenses incurred in the
            performance of the duties of the commission.
      [(d) Report.--
              [(1) In general.--Not later than 2 years after the
            date of the first meeting of the commission, the
            commission shall submit to Congress and the Secretary a
            report describing the results of the review and
            evaluation conducted under this section, including such
            recommendations regarding the legislative and
            regulatory options considered under subsection (b) as
            the commission considers to be appropriate.
              [(2) Opinions.--The report findings shall reflect, to
            the maximum extent practicable, a consensus opinion of
            the commission members, but the report may include
            majority and minority findings regarding those matters
            for which consensus was not reached.
      [(e) Advisory Nature.--The commission is wholly advisory in
    nature, and the recommendations of the commission are
    nonbinding.
      [(f) No Effect on Existing Programs.--The Secretary shall not
    allow the existence of the commission to impede, delay, or
    otherwise affect any decisionmaking process of the Department
    of Agriculture, including any rulemaking procedures planned,
    proposed, or near completion.
      [(g) Administrative Assistance.--The Secretary shall provide
    administrative support to the commission, and expend to carry
    out this section such funds as necessary from budget authority
    available to the Secretary.
      [(h) Authorization of Appropriations.--There are authorized
    to be appropriated such sums as are necessary to carry out this
    section.
      [(i) Termination.--The commission shall terminate effective
    on the date of the submission of the report under subsection
    (d).]

               *       *       *       *       *       *       *

    Subtitle F--Administration

               *       *       *       *       *       *       *

    SEC. 1603. PAYMENT LIMITATIONS.

      (a) * * *

               *       *       *       *       *       *       *

      (g) Conforming Amendments.--
              (1) * * *
              (2) Section 609(b)(1) of the Emergency Livestock Feed
            Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is
            amended by inserting ``(before the amendment made by
            section [1703(a)] 1603(a) of the Food, Conservation,
            and Energy Act of 2008)'' after ``1985''.
              (3) Section 524(b)(3) of the Federal Crop Insurance
            Act (7 U.S.C. 1524(b)(3)) is amended by inserting
            ``(before the amendment made by section [1703(a)]
            1603(a) of the Food, Conservation, and Energy Act of
            2008)'' after ``1308(5)))''.
              (4) Section 10204(c)(1) of the Farm Security and
            Rural Investment Act of 2002 (7 U.S.C. 8204(c)(1)) is
            amended by inserting ``(before the amendment made by
            section [1703(a)] 1603(a) of the Food, Conservation,
            and Energy Act of 2008)'' after ``1308)''.
              (5) Section 1271(c)(3)(A) of the Food, Agriculture,
            Conservation, and Trade Act of 1990 (16 U.S.C.
            2106a(c)(3)(A)) is amended by inserting ``(before the
            amendment made by section [1703(a)] 1603(a) of the
            Food, Conservation, and Energy Act of 2008)'' after
            ``1308)''.
              (6) Section 291(2) of the Trade Act of 1974 (19
            U.S.C. 2401(2)) is amended by inserting ``(before the
            amendment made by section [1703(a)] 1603(a) of the
            Food, Conservation, and Energy Act of 2008)'' before
            the period at the end.

               *       *       *       *       *       *       *

    SEC. 1621. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.

      (a) * * *

               *       *       *       *       *       *       *

      (d) Authorization of Appropriations.--There are authorized to
    be appropriated such sums as are necessary to carry out this
    section for each of fiscal years 2009 through [2012] 2017.

               *       *       *       *       *       *       *

               Subtitle J--Miscellaneous Conservation Provisions

    SEC. 2901. HIGH PLAINS WATER STUDY.

      Notwithstanding any other provision of this Act, no person
    shall become ineligible for any program benefits under [this
    Act or an amendment made by this Act] this Act, an amendment
    made by this Act, the Federal Agriculture Reform and Risk
    Management Act of 2012, or an amendment made by the Federal
    Agriculture Reform and Risk Management Act of 2012 solely as a
    result of participating in a 1-time study of recharge potential
    for the Ogallala Aquifer in the High Plains of the State of
    Texas.

               *       *       *       *       *       *       *

    TITLE III--TRADE

               *       *       *       *       *       *       *

    Subtitle C--Miscellaneous

               *       *       *       *       *       *       *

    SEC. 3202. GLOBAL CROP DIVERSITY TRUST.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this [section $60,000,000 for the
    period of fiscal years 2008 through 2012.] section--
              (1) $60,000,000 for the period of fiscal years 2008
            through 2012; and
              (2) $50,000,000 for the period of fiscal years 2013
            through 2017.

               *       *       *       *       *       *       *

                              TITLE IV--NUTRITION

    Subtitle A--Food Stamp Program

               *       *       *       *       *       *       *

    PART III--PROGRAM OPERATIONS

               *       *       *       *       *       *       *

    SEC. 4115. ISSUANCE AND USE OF PROGRAM BENEFITS.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Conforming Cross-References.--
              (1) * * *
              (2) Definition references.--
                      (A) * * *

               *       *       *       *       *       *       *

                      (H) Section [531] 454 of the Social Security
                    Act (42 U.S.C. 654) is amended by striking
                    ``section 3(h)'' each place it appears and
                    inserting ``section 3(l)''.

               *       *       *       *       *       *       *

    TITLE VII--RESEARCH AND RELATED MATTERS

               *       *       *       *       *       *       *

    Subtitle D--Other Laws

               *       *       *       *       *       *       *

    SEC. 7408. EXCHANGE OR SALE AUTHORITY.

      [Title III of the Department of Agriculture Reorganization
    Act of 1994] Title III of the Federal Crop Insurance Reform and
    Department of Agriculture Reorganization Act of 1994 (Public
    Law 103-354; 108 Stat. 3238) is amended by adding at the end
    the following:

    ``SEC. 307. EXCHANGE OR SALE AUTHORITY.

      ``(a) Definition of Qualified Item of Personal Property.--In
    this section, the term `qualified item of personal property'
    means--
              ``(1) * * *

               *       *       *       *       *       *       *

    SEC. 7409. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.

      [Title III of the Department of Agriculture Reorganization
    Act of 1994] Title III of the Federal Crop Insurance Reform and
    Department of Agriculture Reorganization Act of 1994 (Public
    Law 103-354; 108 Stat. 3238) (as amended by section 7408) is
    amended by adding at the end the following:

    ``SEC. 308. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.

      ``(a) * * *

               *       *       *       *       *       *       *

                           Subtitle E--Miscellaneous

    PART I--GENERAL PROVISIONS

               *       *       *       *       *       *       *

    SEC. 7502. GRAZINGLANDS RESEARCH LABORATORY.

      Except as otherwise specifically authorized by law and
    notwithstanding any other provision of law, the Federal land
    and facilities at El Reno, Oklahoma, administered by the
    Secretary (as of the date of enactment of this Act) as the
    Grazinglands Research Laboratory, shall not at any time, in
    whole or in part, be declared to be excess or surplus Federal
    property under chapter 5 of subtitle I of title 40, United
    States Code, or otherwise be conveyed or transferred in whole
    or in part, for the [5-year] 9-year period beginning on the
    date of enactment of this Act.

               *       *       *       *       *       *       *

    SEC. 7506. BUDGET SUBMISSION AND FUNDING.

      [(a) Definition of Competitive Programs.--In this section,
    the term ``competitive programs'' includes only competitive
    programs for which annual appropriations are requested in the
    annual budget submission of the President.]
      (a) Definitions.--In this section:
              (1) Covered program.--The term ``covered program''
            means--
                      (A) each research program carried out by the
                    Agricultural Research Service or the Economic
                    Research Service for which annual
                    appropriations are requested in the annual
                    budget submission of the President; and
                      (B) each competitive program carried out by
                    the National Institute of Food and Agriculture
                    for which annual appropriations are requested
                    in the annual budget submission of the
                    President.
              (2) Request for awards.--The term ``request for
            awards'' means a funding announcement published by the
            National Institute of Food and Agriculture that
            provides detailed information on funding opportunities
            at the Institute, including the purpose, eligibility,
            restriction, focus areas, evaluation criteria,
            regulatory information, and instructions on how to
            apply for such opportunities.

               *       *       *       *       *       *       *

      (e) Additional Presidential Budget Submission Requirement.--
              (1) In general.--Each year, the President shall
            submit to Congress, together with the annual budget
            submission of the President, the information described
            in paragraph (2) for each funding request for a covered
            program.
              (2) Information described.--The information described
            in this paragraph includes--
                      (A) baseline information, including with
                    respect to each covered program--
                              (i) the funding level for the program
                            for the fiscal year preceding the year
                            the annual budget submission of the
                            President is submitted;
                              (ii) the funding level requested in
                            the annual budget submission of the
                            President, including any increase or
                            decrease in the funding level; and
                              (iii) an explanation justifying any
                            change from the funding level specified
                            in clause (i) to the level specified in
                            clause (ii);
                      (B) with respect to each covered program that
                    is carried out by the Economic Research Service
                    or the Agricultural Research Service, the
                    location and staff years of the program;
                      (C) the proposed funding levels to be
                    allocated to, and the expected publication
                    date, scope, and allocation level for, each
                    request for awards to be published under or
                    associated with--
                              (i) each priority area specified in
                            section 2(b)(2) of the Competitive,
                            Special, and Facilities Research Grant
                            Act (7 U.S.C. 450i(b)(2));
                              (ii) each research and extension
                            project carried out under section
                            1621(a) of the Food, Agriculture,
                            Conservation, and Trade Act of 1990 (7
                            U.S.C. 5811(a));
                              (iii) each grant to be awarded under
                            section 1672B(a) of the Food,
                            Agriculture, Conservation, and Trade
                            Act of 1990 (7 U.S.C. 5925b(a));
                              (iv) each grant awarded under section
                            412(d) of the Agricultural Research,
                            Extension, and Education Reform Act of
                            1998 (7 U.S.C. 7632(d)); and
                              (v) each grant awarded under
                            7405(c)(1) of the Farm Security and
                            Rural Investment Act of 2002 (7 U.S.C.
                            3319f(c)(1)); or
                      (D) any other information the Secretary
                    determines will increase congressional
                    oversight with respect to covered programs.
              (3) Prohibition.--Unless the President submits the
            information described in paragraph (2)(C) for a fiscal
            year, the President may not carry out any program
            during the fiscal year that is authorized under--
                      (A) section 2(b) of the Competitive, Special,
                    and Facilities Research Grant Act (7 U.S.C.
                    450i(b));
                      (B) section 1621 of the Food, Agriculture,
                    Conservation, and Trade Act of 1990 (7 U.S.C.
                    5811);
                      (C) section 1672B of the Food, Agriculture,
                    Conservation, and Trade Act of 1990 (7 U.S.C.
                    5925b);
                      (D) section 412 of the Agricultural Research,
                    Extension, and Education Reform Act of 1998 (7
                    U.S.C. 7632); or
                      (E) section 7405 of the Farm Security and
                    Rural Investment Act of 2002 (7 U.S.C. 3319f).
      (f) Report of the Secretary of Agriculture.--Each year on a
    date that is not later than the date on which the President
    submits the annual budget, the Secretary shall submit to
    Congress a report containing a description of the agricultural
    research, extension, and education activities carried out by
    the Federal Government during the fiscal year that immediately
    precedes the year for which the report is submitted,
    including--
              (1) a review of the extent to which those
            activities--
                      (A) are duplicative or overlap within the
                    Department of Agriculture; or
                      (B) are similar to activities carried out
                    by--
                              (i) other Federal agencies;
                              (ii) the States (including the
                            District of Columbia, the Commonwealth
                            of Puerto Rico and other territories or
                            possessions of the United States);
                              (iii) institutions of higher
                            education (as defined in section 101 of
                            the Higher Education Act of 1965 (20
                            U.S.C. 1001)); or
                              (iv) the private sector; and
              (2) for each report submitted under this section on
            or after January 1, 2013, a 5-year projection of
            national priorities with respect to agricultural
            research, extension, and education, taking into account
            domestic needs.

               *       *       *       *       *       *       *

                   PART III--NEW GRANT AND RESEARCH PROGRAMS

    [SEC. 7521. RESEARCH AND EDUCATION GRANTS FOR THE STUDY OF ANTIBIOTIC-
                        RESISTANT BACTERIA.

      [(a) In General.--The Secretary shall provide research and
    education grants, on a competitive basis--
              [(1) to study the development of antibiotic-resistant
            bacteria, including--
                      [(A) movement of antibiotic-resistant
                    bacteria into groundwater and surface water;
                    and
                      [(B) the effect on antibiotic resistance from
                    various drug use regimens; and
              [(2) to study and ensure the judicious use of
            antibiotics in veterinary and human medicine,
            including--
                      [(A) methods and practices of animal
                    husbandry;
                      [(B) safe and effective alternatives to
                    antibiotics;
                      [(C) the development of better veterinary
                    diagnostics to improve decisionmaking; and
                      [(D) the identification of conditions or
                    factors that affect antibiotic use on farms.
      [(b) Administration.--Paragraphs (4), (7), (8), and (11)(B)
    of subsection (b) of the Competitive, Special, and Facilities
    Research Grant Act (7 U.S.C. 450i) shall apply with respect to
    the making of grants under this section.
      [(c) Authorization of Appropriations.--There are authorized
    to be appropriated such sums as are necessary to carry out this
    section for each of fiscal years 2008 through 2012.

    [SEC. 7522. FARM AND RANCH STRESS ASSISTANCE NETWORK.

      [(a) In General.--The Secretary, in coordination with the
    Secretary of Health and Human Services, shall make competitive
    grants to support cooperative programs between State
    cooperative extension services and nonprofit organizations to
    establish a Farm and Ranch Stress Assistance Network that
    provides stress assistance programs to individuals who are
    engaged in farming, ranching, and other agriculture-related
    occupations.
      [(b) Eligible Programs.--Grants awarded under subsection (a)
    may be used to initiate, expand, or sustain programs that
    provide professional agricultural behavioral health counseling
    and referral for other forms of assistance as necessary
    through--
              [(1) farm telephone helplines and websites;
              [(2) community education;
              [(3) support groups;
              [(4) outreach services and activities; and
              [(5) home delivery of assistance, in a case in which
            a farm resident is homebound.
      [(c) Extension Services.--Grants shall be awarded under this
    subsection directly to State cooperative extension services to
    enable the State cooperative extension services to enter into
    contracts, on a multiyear basis, with nonprofit, community-
    based, direct-service organizations to initiate, expand, or
    sustain cooperative programs described in subsections (a) and
    (b).
      [(d) Authorization of Appropriations.--There are authorized
    to be appropriated such sums as are necessary to carry out this
    section for each of fiscal years 2008 through 2012.

    [SEC. 7523. SEED DISTRIBUTION.

      [(a) In General.--The Secretary shall make competitive grants
    to eligible entities to carry out a seed distribution program
    to administer and maintain the distribution of vegetable seeds
    donated by commercial seed companies.
      [(b) Purposes.--The purposes of this program include--
              [(1) the distribution of seeds donated by commercial
            seed companies free-of-charge to appropriate--
                      [(A) individuals;
                      [(B) groups;
                      [(C) institutions;
                      [(D) governmental and nongovernmental
                    organizations; and
                      [(E) such other entities as the Secretary may
                    designate;
              [(2) distribution of seeds to underserved
            communities, such as communities that experience--
                      [(A) limited access to affordable fresh
                    vegetables;
                      [(B) a high rate of hunger or food
                    insecurity; or
                      [(C) severe or persistent poverty.
      [(c) Administration.--Paragraphs (4), (7), (8), and (11)(B)
    of subsection (b) of the Competitive, Special, and Facilities
    Research Grant Act (7 U.S.C. 450i) shall apply with respect to
    the making of grants under this section.
      [(d) Selection.--An eligible entity selected to receive a
    grant under subsection (a) shall have--
              [(1) expertise regarding the distribution of
            vegetable seeds donated by commercial seed companies;
            and
              [(2) the ability to achieve the purpose of the seed
            distribution program.
      [(e) Authorization of Appropriations.--There are authorized
    to be appropriated such sums as are necessary to carry out this
    section for each of fiscal years 2008 through 2012.]

               *       *       *       *       *       *       *

    SEC. 7525. NATURAL PRODUCTS RESEARCH PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      [(e) Authorization of Appropriations.--There are authorized
    to be appropriated to carry out this section such sums as are
    necessary for each of fiscal years 2008 through 2012.]
      (e) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section $7,000,000 for each
    of fiscal years 2013 through 2017.

    SEC. 7526. SUN GRANT PROGRAM.

      (a) Establishment.--The Secretary shall establish and carry
    out a program to provide grants to the sun grant centers and
    subcenter specified in subsection (b)--
              (1) * * *

               *       *       *       *       *       *       *

              (4) to enhance the efficiency of bioenergy and
            biomass research and development programs through
            improved coordination and collaboration among--
                      (A) the Department of Agriculture;
                      (B) [the Department of Energy] other
                    appropriate Federal agencies (as determined by
                    the Secretary); and

               *       *       *       *       *       *       *

      (c) Use of Funds.--
              (1) Competitive grants.--
                      (A) * * *
                      (B) Activities.--Grants described in
                    subparagraph (A) shall be used by the grant
                    recipient to conduct, in a manner consistent
                    with the purposes described in subsection (a),
                    multi-institutional and [multistate--
                              [(i) research, extension, and
                            education programs on technology
                            development; and
                              [(ii) integrated research, extension,
                            and education programs on technology
                            implementation.] integrated, multistate
                            research, extension, and education
                            programs on technology development and
                            technology implementation.
                      [(C) Funding allocation.--Of the amount of
                    funds that is used to provide grants under
                    subparagraph (A), the sun grant center or
                    subcenter shall use--
                              [(i) not less than 30 percent of the
                            funds to carry out the programs
                            described in subparagraph (B)(i); and
                              [(ii) not less than 30 percent of the
                            funds to carry out the programs
                            described in subparagraph (B)(ii).]
                      [(D)] (C) Administration.--
                              (i) * * *

               *       *       *       *       *       *       *

      (d) Plan for Research Activities to Be Funded.--
              (1) In general.--Subject to the availability of funds
            under subsection (g), and in cooperation with land-
            grant colleges and universities and private industry
            [in accordance with paragraph (2)], the sun grant
            centers and subcenter shall jointly develop and submit
            to the Secretary for approval a plan for addressing the
            bioenergy, biomass, and [gasification] bioproducts
            research priorities of the Department of Agriculture
            and [the Department of Energy] other appropriate
            Federal agencies at the State and regional levels.
              [(2) Gasification coordination.--With respect to
            gasification research activity, the sun grant centers
            and subcenter shall coordinate planning with land-grant
            colleges and universities in their respective regions
            that have ongoing research activities in that area.]
              [(3)] (2) Funding.--Funds described in subsection
            (c)(2) shall be available to carry out planning
            coordination under paragraph (1).
              [(4)] (3) Use of plan.--The sun grant centers and
            subcenter shall use the plan described in paragraph (1)
            in making grants under subsection (c)(1).
      (f) Annual Reports.--Not later than 90 days after the end of
    each fiscal year, a sun grant center or subcenter receiving a
    grant under this section shall submit to the Secretary a report
    that describes the policies, priorities, and operations of the
    program carried out by the center or subcenter during the
    fiscal year, including--
              (1) the results of all peer and merit review
            procedures conducted pursuant to [subsection
            (c)(1)(D)(i)] subsection (c)(1)(C)(i); and

               *       *       *       *       *       *       *

      (g) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $75,000,000 for each
    of fiscal years 2008 through [2012] 2017, of which not more
    than $4,000,000 for each fiscal year shall be made available to
    carry out subsection (e).

    [SEC. 7527. STUDY AND REPORT ON FOOD DESERTS.

      [(a) Definition of Food Desert.--In this section, the term
    ``food desert'' means an area in the United States with limited
    access to affordable and nutritious food, particularly such an
    area composed of predominantly lower-income neighborhoods and
    communities.
      [(b) Study and Report.--The Secretary shall carry out a study
    of, and prepare a report on, food deserts.
      [(c) Contents.--The study and report shall--
              [(1) assess the incidence and prevalence of food
            deserts;
              [(2) identify--
                      [(A) characteristics and factors causing and
                    influencing food deserts; and
                      [(B) the effect on local populations of
                    limited access to affordable and nutritious
                    food; and
              [(3) provide recommendations for addressing the
            causes and effects of food deserts through measures
            that include--
                      [(A) community and economic development
                    initiatives;
                      [(B) incentives for retail food market
                    development, including supermarkets, small
                    grocery stores, and farmers' markets; and
                      [(C) improvements to Federal food assistance
                    and nutrition education programs.
      [(d) Coordination With Other Agencies and Organizations.--The
    Secretary shall conduct the study under this section in
    coordination and consultation with--
              [(1) the Secretary of Health and Human Services;
              [(2) the Administrator of the Small Business
            Administration;
              [(3) the Institute of Medicine; and
              [(4) representatives of appropriate businesses,
            academic institutions, and nonprofit and faith-based
            organizations.
      [(e) Submission to Congress.--Not later than 1 year after the
    date of enactment of this Act, the Secretary shall submit to
    the Committee on Agriculture of the House of Representatives
    and the Committee on Agriculture, Nutrition, and Forestry of
    the Senate the report prepared under this section, including
    the findings and recommendations described in subsection (c).
      [(f) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $500,000.]

               *       *       *       *       *       *       *

    [SEC. 7529. AGRICULTURAL AND RURAL TRANSPORTATION RESEARCH AND
                        EDUCATION.

      [(a) In General.--The Secretary, in consultation with the
    Secretary of Transportation, shall make competitive grants to
    institutions of higher education to carry out agricultural and
    rural transportation research and education activities.
      [(b) Activities.--Research and education grants made under
    this section shall be used to address rural transportation and
    logistics needs of agricultural producers and related rural
    businesses, including--
              [(1) the transportation of biofuels; and
              [(2) the export of agricultural products.
      [(c) Selection Criteria.--
              [(1) In general.--The Secretary shall award grants
            under this section on the basis of the transportation
            research, education, and outreach expertise of the
            applicant, as determined by the Secretary.
              [(2) Priority.--In awarding grants under this
            section, the Secretary shall give priority to
            institutions of higher education for use in
            coordinating research and education activities with
            other institutions of higher education with similar
            agricultural and rural transportation research and
            education programs.
      [(d) Diversification of Research.--The Secretary shall award
    grants under this section in areas that are regionally diverse
    and broadly representative of the diversity of agricultural
    production and related transportation needs in the rural areas
    of the United States.
      [(e) Matching Funds Requirement.--The Secretary shall require
    each recipient of a grant under this section to provide, from
    non-Federal sources, in cash or in kind, 50 percent of the cost
    of carrying out activities under the grant.
      [(f) Grant Review.--A grant shall be awarded under this
    section on a competitive, peer- and merit-reviewed basis in
    accordance with section 103(a) of the Agricultural Research,
    Extension, and Education Reform Act of 1998 (7 U.S.C. 7613(a)).
      [(g) No Duplication.--In awarding grants under this section,
    the Secretary shall ensure that activities funded under this
    section do not duplicate the efforts of the University
    Transportation Centers described in sections 5505 and 5506 of
    title 49, United States Code.
      [(h) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $5,000,000 for each
    of fiscal years 2008 through 2012.]

               *       *       *       *       *       *       *

    TITLE VIII--FORESTRY

               *       *       *       *       *       *       *

    Subtitle E--Miscellaneous Provisions

               *       *       *       *       *       *       *

    [SEC. 8402. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND NATIONAL
                        RESOURCES LEADERSHIP PROGRAM.

      [(a) Definition of Hispanic-Serving Institution.--In this
    section, the term ``Hispanic-serving institution'' has the
    meaning given that term in section 502(a)(5) of the Higher
    Education Act of 1965 (20 U.S.C. 1101a(a)(5)).
      [(b) Grant Authority.--The Secretary of Agriculture may make
    grants, on a competitive basis, to Hispanic-serving
    institutions for the purpose of establishing an undergraduate
    scholarship program to assist in the recruitment, retention,
    and training of Hispanics and other under-represented groups in
    forestry and related fields.
      [(c) Use of Grant Funds.--Grants made under this section
    shall be used to recruit, retain, train, and develop
    professionals to work in forestry and related fields with
    Federal agencies, such as the Forest Service, State agencies,
    and private-sector entities.
      [(d) Authorization of Appropriations.--There are authorized
    to be appropriated to the Secretary for each of fiscal years
    2008 through 2012 such sums as may be necessary to carry out
    this section.]

               *       *       *       *       *       *       *

    TITLE IX--ENERGY

               *       *       *       *       *       *       *

    [SEC. 9002. BIOFUELS INFRASTRUCTURE STUDY.

      [(a) In General.--The Secretary of Agriculture, the Secretary
    of Energy, the Administrator of the Environmental Protection
    Agency, and the Secretary of Transportation (referred to in
    this section as the ``Secretaries''), shall jointly conduct a
    study that includes--
              [(1) an assessment of the infrastructure needs for
            expanding the domestic production, transport, and
            distribution of biofuels given current and likely
            future market trends;
              [(2) recommendations for infrastructure needs and
            development approaches, taking into account cost and
            other associated factors; and
              [(3) a report that includes--
                      [(A) a summary of infrastructure needs;
                      [(B) an analysis of alternative development
                    approaches to meeting the needs described in
                    subparagraph (A), including cost, siting, and
                    other regulatory issues; and
                      [(C) recommendations for specific
                    infrastructure development actions to be taken.
      [(b) Scope of Study.--
              [(1) In general.--In conducting the study described
            in subsection (a), the Secretaries shall address--
                      [(A) current and likely future market trends
                    for biofuels through calendar year 2025;
                      [(B) current and future availability of
                    feedstocks;
                      [(C) water resource needs, including water
                    requirements for biorefineries;
                      [(D) shipping and storage needs for biomass
                    feedstock and biofuels, including the adequacy
                    of rural roads; and
                      [(E) modes of transportation and delivery for
                    biofuels (including shipment by rail, truck,
                    pipeline or barge) and associated
                    infrastructure issues.
              [(2) Considerations.--In addressing the issues
            described in paragraph (1), the Secretaries shall
            consider--
                      [(A) the effects of increased tank truck,
                    rail, and barge transport on existing
                    infrastructure and safety;
                      [(B) the feasibility of shipping biofuels
                    through pipelines in existence as the date of
                    enactment of this Act;
                      [(C) the development of new biofuels
                    pipelines, including siting, financing, timing,
                    and other economic issues;
                      [(D) the implications of various biofuel
                    blend levels on infrastructure needs;
                      [(E) the implications of various approaches
                    to infrastructure development on resource use
                    and conservation;
                      [(F) regional differences in biofuels
                    infrastructure needs; and
                      [(G) other infrastructure issues, as
                    determined by the Secretaries.
      [(c) Implementation.--In carrying out this section, the
    Secretaries --
              [(1) shall--
                      [(A) consult with individuals and entities
                    with interest or expertise in the areas
                    described in subsection (b);
                      [(B) to the extent available, use the
                    information developed and results of the
                    related studies authorized under sections 243
                    and 245 of the Energy Independence and Security
                    Act of 2007 (Public Law 110-140; 121 Stat.
                    1540, 1546)); and
                      [(C) submit to Congress the report required
                    under subsection (a)(3), including--
                              [(i) in the Senate--
                                      [(I) the Committee on
                                    Agriculture, Nutrition, and
                                    Forestry;
                                      [(II) the Committee on
                                    Commerce, Science, and
                                    Transportation;
                                      [(III) the Committee on
                                    Energy and Natural Resources;
                                    and
                                      [(IV) the Committee on
                                    Environment and Public Works;
                                    and
                              [(ii) in the House of
                            Representatives--
                                      [(I) the Committee on
                                    Agriculture;
                                      [(II) the Committee on Energy
                                    and Commerce;
                                      [(III) the Committee on
                                    Transportation and
                                    Infrastructure; and
                                      [(IV) the Committee on
                                    Science and Technology; and
              [(2) may issue a solicitation for a competition to
            select a contractor to support the Secretaries.

    [SEC. 9003. RENEWABLE FERTILIZER STUDY.

      [(a) In General.--Not later than 1 year after the date of
    receipt of appropriations to carry out this section, the
    Secretary shall--
              [(1) conduct a study to assess the current state of
            knowledge regarding the potential for the production of
            fertilizer from renewable energy sources in rural
            areas, including--
                      [(A) identification of the critical
                    challenges to commercialization of rural
                    production of nitrogen and phosphorus-based
                    fertilizer from renewables;
                      [(B) the most promising processes and
                    technologies for renewable fertilizer
                    production;
                      [(C) the potential cost-competitiveness of
                    renewable fertilizer; and
                      [(D) the potential impacts of renewable
                    fertilizer on fossil fuel use and the
                    environment; and
              [(2) submit to the Committee on Agriculture of the
            House of Representatives and the Committee on
            Agriculture, Nutrition, and Forestry of the Senate a
            report describing the results of the study.
      [(b) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $1,000,000 for fiscal
    year 2009.]

               *       *       *       *       *       *       *

    TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE

               *       *       *       *       *       *       *

    Subtitle A--Horticulture Marketing and Information

               *       *       *       *       *       *       *

    SEC. 10105. FOOD SAFETY EDUCATION INITIATIVES.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Authorization of Appropriations.--There is authorized to
    be appropriated to the Secretary to carry out this section
    $1,000,000 for each of fiscal years 2008 through [2012] 2017,
    to remain available until expended.

               *       *       *       *       *       *       *

    SEC. 10107. SPECIALTY CROPS MARKET NEWS ALLOCATION.

      (a) * * *
      (b) Authorization of Appropriations.--In addition to any
    other funds made available through annual appropriations for
    market news services, there is authorized to be appropriated to
    carry out this section $9,000,000 for each of fiscal years 2008
    through [2012] 2017, to remain available until expended.

               *       *       *       *       *       *       *

    Subtitle B--Pest and Disease Management

               *       *       *       *       *       *       *

    [SEC. 10202. NATIONAL CLEAN PLANT NETWORK.

      [(a) In General.--The Secretary shall establish a program to
    be known as the ``National Clean Plant Network'' (referred to
    in this section as the ``Program'').
      [(b) Requirements.--Under the Program, the Secretary shall
    establish a network of clean plant centers for diagnostic and
    pathogen elimination services to--
              [(1) produce clean propagative plant material; and
              [(2) maintain blocks of pathogen-tested plant
            material in sites located throughout the United States.
      [(c) Availability of Clean Plant Source Material.--Clean
    plant source material may be made available to--
              [(1) a State for a certified plant program of the
            State; and
              [(2) private nurseries and producers.
      [(d) Consultation and Collaboration.--In carrying out the
    Program, the Secretary shall--
              [(1) consult with State departments of agriculture,
            land grant universities, and NLGCA Institutions (as
            defined in section 1404 of the National Agricultural
            Research, Extension, and Teaching Policy Act of 1977 (7
            U.S.C. 3103)); and
              [(2) to the extent practicable and with input from
            the appropriate State officials and industry
            representatives, use existing Federal or State
            facilities to serve as clean plant centers.
      [(e) Funding.--Of the funds of the Commodity Credit
    Corporation, the Secretary shall use to carry out the Program
    $5,000,000 for each of fiscal years 2009 through 2012, to
    remain available until expended.]

               *       *       *       *       *       *       *

    Subtitle D--Miscellaneous

               *       *       *       *       *       *       *

    [SEC. 10403. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY CROPS.

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

               *       *       *       *       *       *       *

    TITLE XI--LIVESTOCK

               *       *       *       *       *       *       *

    [SEC. 11006. REGULATIONS.

      [As soon as practicable, but not later than 2 years after the
    date of the enactment of this Act, the Secretary of Agriculture
    shall promulgate regulations with respect to the Packers and
    Stockyards Act, 1921 (7 U.S.C. 181 et seq.) to establish
    criteria that the Secretary will consider in determining--
              [(1) whether an undue or unreasonable preference or
            advantage has occurred in violation of such Act;
              [(2) whether a live poultry dealer has provided
            reasonable notice to poultry growers of any suspension
            of the delivery of birds under a poultry growing
            arrangement;
              [(3) when a requirement of additional capital
            investments over the life of a poultry growing
            arrangement or swine production contract constitutes a
            violation of such Act; and
              [(4) if a live poultry dealer or swine contractor has
            provided a reasonable period of time for a poultry
            grower or a swine production contract grower to remedy
            a breach of contract that could lead to termination of
            the poultry growing arrangement or swine production
            contract.]

               *       *       *       *       *       *       *

    SEC. 11013. NATIONAL AQUATIC ANIMAL HEALTH PLAN.

      (a) * * *

               *       *       *       *       *       *       *

      (d) Authorization of Appropriations.--There is authorized to
    be appropriated such sums as may be necessary to carry out this
    section for each of fiscal years 2008 through [2012] 2017.

               *       *       *       *       *       *       *

                            TITLE XIV--MISCELLANEOUS

       Subtitle A--Socially Disadvantaged Producers and Limited Resource
    Producers

               *       *       *       *       *       *       *

    CHAPTER 1--AGRICULTURAL SECURITY

               *       *       *       *       *       *       *

    SEC. 14112. AGRICULTURAL BIOSECURITY COMMUNICATION CENTER.

      (a) * * *

               *       *       *       *       *       *       *

      [(c) Authorization of Appropriations.--There is authorized to
    be appropriated such sums as may be necessary to carry out this
    section for each of fiscal years 2008 through 2012.]
      (c) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section--
              (1) such sums as are necessary for each of fiscal
            years 2008 through 2012; and
              (2) $2,000,000 for each of fiscal years 2013 through
            2017.

    SEC. 14113. ASSISTANCE TO BUILD LOCAL CAPACITY IN AGRICULTURAL
                        BIOSECURITY PLANNING, PREPAREDNESS, AND RESPONSE.

      (a) Advanced Training Programs.--
              (1) * * *
              (2) Authorization of appropriations.--There are
            authorized to be appropriated to the Secretary [such
            sums as may be necessary] to carry out this [subsection
            for each of fiscal years 2008 through 2012.]
            subsection--
              (1) such sums as are necessary for each of fiscal
            years 2008 through 2012; and
              (2) $15,000,000 for each of fiscal years 2013 through
            2017.
      (b) Assessment of Response Capability.--
              (1) * * *
              (2) Authorization of appropriations.--There [is
            authorized to be appropriated to carry out this
            subsection $25,000,000 for each of fiscal years 2008
            through 2012.] are authorized to be appropriated to
            carry out this subsection--
              (1) $25,000,000 for each of fiscal years 2008 through
            2012; and
              (2) $15,000,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

                          CHAPTER 2--OTHER PROVISIONS

    SEC. 14121. RESEARCH AND DEVELOPMENT OF AGRICULTURAL COUNTERMEASURES.

      (a) * * *
      (b) Authorization of Appropriations.--There [is authorized to
    be appropriated to carry out this section $50,000,000 for each
    of fiscal years 2008 through 2012.] are authorized to be
    appropriated to carry out this section--
              (1) $50,000,000 for each of fiscal years 2008 through
            2012; and
              (2) $15,000,000 for each of fiscal years 2013 through
            2017.

    SEC. 14122. AGRICULTURAL BIOSECURITY GRANT PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (e) Authorization of Appropriations.--There are authorized to
    be appropriated [sums as are necessary] to carry out this
    [section for each of fiscal years 2008 through 2012, to remain
    available until expended.] section--
              (1) such sums as are necessary for each of fiscal
            years 2008 through 2012, to remain available until
            expended; and
              (2) $5,000,000 for each of fiscal years 2013 through
            2017, to remain available until expended.

               *       *       *       *       *       *       *

    Subtitle C--Other Miscellaneous Provisions

               *       *       *       *       *       *       *

    SEC. 14204. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND TRAINING
                        OF AGRICULTURAL LABOR FORCE.

      (a) * * *

               *       *       *       *       *       *       *

      [(d) Authorization of Appropriations.--There are authorized
    to be appropriated such sums as are necessary to carry out this
    section for each of fiscal years 2008 through 2012.]
      (d) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section--
              (1) such sums as are necessary for each of fiscal
            years 2008 through 2012; and
              (2) $10,000,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

    SEC. 14212. PROHIBITION ON CLOSURE OR RELOCATION OF COUNTY OFFICES FOR
                        THE FARM SERVICE AGENCY.

      [(a) Temporary Prohibition.--
              [(1) In general.--Subject to paragraph (2), until the
            date that is two years after the date of the enactment
            of this Act, the Secretary of Agriculture may not close
            or relocate a county or field office of the Farm
            Service Agency.
              [(2) Exception.--Paragraph (1) shall not apply to--
                      [(A) an office that is located not more than
                    20 miles from another office of the Farm
                    Service Agency; or
                      [(B) the relocation of an office within the
                    same county in the course of routine leasing
                    operations.]
      (a) Prohibition on Closure or Relocation of Offices With High
    Workload Volume.--The Secretary of Agriculture may not close or
    relocate a county or field office of the Farm Service Agency in
    a State if the Secretary determines, after conducting the
    evaluation required under subsection (b)(1)(B), that the office
    has a high workload volume compared with other county offices
    in the State.
      (b) Limitation on Closure; Notice.--
              (1) Limitation.--After the period referred to in
            subsection (a)(1), the Secretary shall, before closing
            any office of the Farm Service Agency that is located
            more than 20 miles from another office of [the Farm
            Service Agency, to the maximum extent practicable] the
            Farm Service Agency--
                      (A) to the maximum extent practicable, first
                    close any offices of the Farm Service Agency
                    that--
                              [(A)] (i) are located less than 20
                            miles from another office of the Farm
                            Service Agency; and
                              [(B)] (ii) have two or fewer
                            permanent full-time employees[.] as of
                            the date of the enactment of this Act;
                            and
                      (B) conduct and complete an evaluation of all
                    workload assessments for Farm Service Agency
                    county offices that were open and operational
                    as of January 1, 2012, during the period that
                    begins on a date that is not later than 180
                    days after the date of the enactment of the
                    Federal Agriculture Reform and Risk Management
                    Act of 2012 and ends on the date that is 18
                    months after such date of enactment.

               *       *       *       *       *       *       *

                                  ----------

             FEDERAL AGRICULTURE IMPROVEMENT AND REFORM ACT OF 1996

               *       *       *       *       *       *       *
    TITLE I--AGRICULTURAL MARKET TRANSITION ACT

               *       *       *       *       *       *       *

    Subtitle D--Other Commodities

               *       *       *       *       *       *       *

    CHAPTER 2--SUGAR

               *       *       *       *       *       *       *

    SEC. 156. SUGAR PROGRAM.

      (a) Sugarcane.--The Secretary shall make loans available to
    processors of domestically grown sugarcane at a rate equal to--
              (1) * * *

               *       *       *       *       *       *       *

              (5) 18.75 cents per pound for raw cane sugar for [the
            2012 crop year] each of the 2012 through 2017 crop
            years.
      (b) Sugar Beets.--The Secretary shall make loans available to
    processors of domestically grown sugar beets at a rate equal
    to--
              (1) * * *
              (2) a rate that is equal to 128.5 percent of the loan
            rate per pound of raw cane sugar for the applicable
            crop year under subsection (a) for each of the 2009
            through [2012] 2017 crop years.

               *       *       *       *       *       *       *

      (i) Effective Period.--This section shall be effective only
    for the 2008 through [2012] 2017 crops of sugar beets and
    sugarcane.

    Subtitle E--Administration

               *       *       *       *       *       *       *

    SEC. 164. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

      (a) In General.--Except as provided in subsection (b), no
    producer shall be personally liable for any deficiency arising
    from the sale of the collateral securing any nonrecourse loan
    made under this title title I of the Farm Security and Rural
    Investment Act of 2002, [and title I of the Food, Conservation,
    and Energy Act of 2008] title I of the Food, Conservation, and
    Energy Act of 2008 (7 U.S.C. 8702 et seq.), and title I of the
    Federal Agriculture Reform and Risk Management Act of 2012
    unless the loan was obtained through a fraudulent
    representation by the producer.
      (b) Limitations.--Subsection (a) shall not prevent the
    Commodity Credit Corporation or the Secretary from requiring a
    producer to assume liability for--
              (1) * * *

               *       *       *       *       *       *       *

              (3) a failure or refusal to deliver a commodity in
            accordance with a program established under this title,
            title I of the Farm Security and Rural Investment Act
            of 2002, [and title I of the Food, Conservation, and
            Energy Act of 2008] title I of the Food, Conservation,
            and Energy Act of 2008 (7 U.S.C. 8702 et seq.), and
            title I of the Federal Agriculture Reform and Risk
            Management Act of 2012.
      (c) Acquisition of Collateral.--In the case of a nonrecourse
    loan made under this title, title I of the Farm Security and
    Rural Investment Act of 2002, [and title I of the Food,
    Conservation, and Energy Act of 2008] title I of the Food,
    Conservation, and Energy Act of 2008 (7 U.S.C. 8702 et seq.),
    and title I of the Federal Agriculture Reform and Risk
    Management Act of 2012 or the Commodity Credit Corporation
    Charter Act (15 U.S.C. 714 et seq.), if the Commodity Credit
    Corporation acquires title to the unredeemed collateral, the
    Corporation shall be under no obligation to pay for any market
    value that the collateral may have in excess of the loan
    indebtedness.

               *       *       *       *       *       *       *

    Subtitle H--Miscellaneous Commodity Provisions

               *       *       *       *       *       *       *

    SEC. 196. ADMINISTRATION AND OPERATION OF NONINSURED CROP ASSISTANCE
                        PROGRAM.

      (a) Operation and Administration of Program.--
              [(1) In general.--In the case of an eligible crop
            described in paragraph (2), the Secretary of
            Agriculture shall operate a noninsured crop disaster
            assistance program to provide coverage equivalent to
            the catastrophic risk protection otherwise available
            under section 508(b) of the Federal Crop Insurance Act
            (7 U.S.C. 1508(b)). The Secretary shall carry out this
            section through the Consolidated Farm Service Agency
            (in this section referred to as the ``Agency'').]
              (1) In general.--
                      (A) Coverages.--In the case of an eligible
                    crop described in paragraph (2), the Secretary
                    of Agriculture shall operate a noninsured crop
                    disaster assistance program to provide
                    coverages based on individual yields (other
                    than for value-loss crops) equivalent to--
                              (i) catastrophic risk protection
                            available under section 508(b) of the
                            Federal Crop Insurance Act (7 U.S.C.
                            1508(b)); or
                              (ii) additional coverage available
                            under subsections (c) and (h) of
                            section 508 of that Act (7 U.S.C. 1508)
                            that does not exceed 65 percent.
                      (B) Administration.--The Secretary shall
                    carry out this section through the Farm Service
                    Agency (referred to in this section as the
                    ``Agency'').
              (2) Eligible crops.--
                      (A) In general.--In this section, the term
                    ``eligible crop'' means each commercial crop or
                    other agricultural commodity (except
                    livestock)--
                              (i) for which catastrophic risk
                            protection under section 508(b) of the
                            Federal Crop Insurance Act (7 U.S.C.
                            1508(b)) is not available; [and]
                              (ii) for which additional coverage
                            under subsections (c) and (h) of
                            section 508 of that Act (7 U.S.C. 1508)
                            is not available; and
                              [(ii)] (iii) that is produced for
                            food or fiber.

               *       *       *       *       *       *       *

              (4) Program [ineligibility] benefit reduction
            relating to crop production on native sod.--
                      (A) Definition of native sod.--In this
                    paragraph, the term ``native sod'' means land--
                              (i) * * *
                              (ii) that has never been tilled, or
                            the producer cannot substantiate that
                            the ground has ever been tilled, for
                            the production of an annual crop as of
                            the date of enactment of this
                            paragraph.

               *       *       *       *       *       *       *

                      (B) [Ineligibility] Reduction in for
                    benefits.--
                              (i) In general.--Subject to clause
                            (ii) and subparagraph (C), native sod
                            acreage that has been tilled for the
                            production of an annual crop after the
                            date of enactment of this paragraph
                            shall be ineligible during the first 5
                            crop years of planting, as determined
                            by the Secretary, [for benefits under--
                                      [(I) this section; and
                                      [(II) the Federal Crop
                                    Insurance Act (7 U.S.C. 1501 et
                                    seq.).] for--
                                      (I) benefits under this
                                    section;
                                      (II) a portion of crop
                                    insurance premium subsidies
                                    under the Federal Crop
                                    Insurance Act (7 U.S.C. 1501 et
                                    seq.) in accordance with
                                    subparagraph (C); and
                                      (III) payments described in
                                    subsection (b) or (c) of
                                    section 1001 of the Food
                                    Security Act of 1985 (7 U.S.C.
                                    1308).

               *       *       *       *       *       *       *

                      [(C) Application.--Subparagraph (B) may apply
                    to native sod acreage in the Prairie Pothole
                    National Priority Area at the election of the
                    Governor of the respective State.]
                      (C) Administration.--
                              (i) In general.--During the first 4
                            crop years of planting on native sod
                            acreage by a producer described in
                            subparagraph (B)--
                                      (I) subparagraph (B) shall
                                    apply to 65 percent of the
                                    transitional yield of the
                                    producer; and
                                      (II) the crop insurance
                                    premium subsidy provided for
                                    the producer under the Federal
                                    Crop Insurance Act (7 U.S.C.
                                    1501 et seq.) shall be 50
                                    percentage points less than the
                                    premium subsidy that would
                                    otherwise apply.
                              (ii) Yield substitution.--During the
                            period native sod acreage is covered by
                            this paragraph, a producer may not
                            substitute yields for the native sod
                            acreage.
                      (D) Application.--This paragraph shall only
                    apply to native sod in the Prairie Pothole
                    National Priority Area.

               *       *       *       *       *       *       *

      (d) Payment.--[The Secretary] Subject to subsection (l), the
    Secretary shall make available to a producer eligible for
    noninsured assistance under this section a payment computed by
    multiplying--
              (1) * * *

               *       *       *       *       *       *       *

      (l) Payment Equivalent to Additional Coverage.--
              (1) In general.--The Secretary shall make available
            to a producer eligible for noninsured assistance under
            this section a payment equivalent to an indemnity for
            additional coverage under subsections (c) and (h) of
            section 508 of the Federal Crop Insurance Act (7 U.S.C.
            1508) that does not exceed 65 percent of the
            established yield for the eligible crop on the farm,
            computed by multiplying--
                      (A) the quantity that is not greater than 65
                    percent of the established yield for the crop,
                    as determined by the Secretary, specified in
                    increments of 5 percent;
                      (B) 100 percent of the average market price
                    for the crop, as determined by the Secretary;
                    and
                      (C) a payment rate for the type of crop, as
                    determined by the Secretary, that reflects--
                              (i) in the case of a crop that is
                            produced with a significant and
                            variable harvesting expense, the
                            decreasing cost incurred in the
                            production cycle for the crop that is,
                            as applicable--
                                      (I) harvested;
                                      (II) planted but not
                                    harvested; or
                                      (III) prevented from being
                                    planted because of drought,
                                    flood, or other natural
                                    disaster, as determined by the
                                    Secretary; or
                              (ii) in the case of a crop that is
                            produced without a significant and
                            variable harvesting expense, such rate
                            as shall be determined by the
                            Secretary.
              (2) Premium.--To be eligible to receive a payment
            under this subsection, a producer shall pay--
                      (A) the service fee required by subsection
                    (k); and
                      (B) a premium for the applicable crop year
                    that is equal to the product obtained by
                    multiplying--
                              (i) the number of acres devoted to
                            the eligible crop;
                              (ii) the established yield for the
                            eligible crop, as determined by the
                            Secretary under subsection (e);
                              (iii) the coverage level elected by
                            the producer;
                              (iv) the average market price, as
                            determined by the Secretary; and
                              (v) .0525.
              (3) Limited resource, beginning, and socially
            disadvantaged farmers.--The additional coverage made
            available under this subsection shall be available to
            limited resource, beginning, and socially disadvantaged
            producers, as determined by the Secretary, in exchange
            for a premium that is 50 percent of the premium
            determined for a producer under paragraph (2).
              (4) Premium payment and application deadline.--
                      (A) Premium payment.--A producer electing
                    additional coverage under this subsection shall
                    pay the premium amount owed for the additional
                    coverage by September 30 of the crop year for
                    which the additional coverage is purchased.
                      (B) Application deadline.--The latest date on
                    which additional coverage under this subsection
                    may be elected shall be the application closing
                    date described in subsection (b)(1).
              (5) Effective date.--Additional coverage under this
            subsection shall be available beginning with the 2014
            crop.

               *       *       *       *       *       *       *

    TITLE VIII--RESEARCH, EXTENSION, AND EDUCATION

               *       *       *       *       *       *       *

    Subtitle D--Miscellaneous Research Provisions

               *       *       *       *       *       *       *

    [SEC. 892. USE OF REMOTE SENSING DATA AND OTHER DATA TO ANTICIPATE
                        POTENTIAL FOOD, FEED, AND FIBER SHORTAGES OR
                        EXCESSES AND TO PROVIDE TIMELY INFORMATION TO
                        ASSIST FARMERS WITH PLANTING DECISIONS.

      [(a) Findings.--Congress finds that--
              [(1) remote sensing data can be useful to predict
            impending famine problems and forest infestations in
            time to allow remedial action;
              [(2) remote sensing data can inform the agricultural
            community as to the condition of crops and the land
            that sustains those crops; and
              [(3) remote sensing data and other data can be
            valuable, when received on a timely basis, in
            determining the need for additional plantings of a
            particular crop or a substitute crop.
      [(b) Information Development.--The Secretary of Agriculture
    and the Administrator of the National Aeronautics and Space
    Administration, maximizing private funding and involvement,
    shall provide farmers and other interested persons with timely
    information, through remote sensing, on crop conditions,
    fertilization and irrigation needs, pest infiltration, soil
    conditions, projected food, feed, and fiber production, and any
    other information available through remote sensing.
      [(c) Coordination.--The Secretary of Agriculture and the
    Administrator of the National Aeronautics and Space
    Administration shall jointly develop a proposal to provide
    farmers and other prospective users with supply and demand
    information for food and fibers.
      [(d) Sunset.--The authorities provided by this section shall
    expire 5 years after the date of enactment of this Act.]
                                  ----------

                      AGRICULTURAL ADJUSTMENT ACT OF 1938

               *       *       *       *       *       *       *
       TITLE III--LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING
    QUOTAS, AND MARKETING CERTIFICATES

               *       *       *       *       *       *       *

    Subtitle B--Marketing Quotas

               *       *       *       *       *       *       *

    PART VII--FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR

               *       *       *       *       *       *       *

    SEC. 359B. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

      (a) Sugar Estimates.--
              (1) In general.--Not later than August 1 before the
            beginning of each of the 2008 through [2012] 2017 crop
            years for sugarcane and sugar beets, the Secretary
            shall estimate--
                      (A) * * *

               *       *       *       *       *       *       *

    SEC. 359F. PROVISIONS APPLICABLE TO PRODUCERS.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Proportionate Shares of Certain Allotments.--
              (1) Definition of seed.--
                      (A) * * *
                      (B) Exclusion.--The term ``seed'' does not
                    include seed of a high-fiber cane variety
                    dedicated to other uses, as determined by the
                    Secretary.

               *       *       *       *       *       *       *

    SEC. 359L. PERIOD OF EFFECTIVENESS.

      (a) In General.--This part shall be effective only for the
    2008 through [2012] 2017 crop years for sugar.

               *       *       *       *       *       *       *

                                  ----------

                           FOOD SECURITY ACT OF 1985

               *       *       *       *       *       *       *
                     TITLE X--GENERAL COMMODITY PROVISIONS

                 Subtitle A--Miscellaneous Commodity Provisions

    SEC. 1001. PAYMENT LIMITATIONS.

      (a) * * *
      [(b) Limitation on Direct Payments, Counter-Cyclical
    Payments, and ACRE Payments for Covered Commodities (other Than
    Peanuts).--
              [(1) Direct payments.--The total amount of direct
            payments received, directly or indirectly, by a person
            or legal entity (except a joint venture or a general
            partnership) for any crop year under subtitle A of
            title I of the Food, Conservation, and Energy Act of
            2008 for 1 or more covered commodities (except for
            peanuts) may not exceed--
                      [(A) in the case of a person or legal entity
                    that does not participate in the average crop
                    revenue election program under section 1105 of
                    that Act, $40,000; or
                      [(B) in the case of a person or legal entity
                    that participates in the average crop revenue
                    election program under section 1105 of that
                    Act, an amount equal to--
                              [(i) the payment limit specified in
                            subparagraph (A); less
                              [(ii) the amount of the reduction in
                            direct payments under section
                            1105(a)(1) of that Act.
              [(2) Counter-cyclical payments.--In the case of a
            person or legal entity (except a joint venture or a
            general partnership) that does not participate in the
            average crop revenue election program under section
            1105 of the Food, Conservation, and Energy Act of 2008,
            the total amount of counter-cyclical payments received,
            directly or indirectly, by the person or legal entity
            for any crop year under subtitle A of title I of that
            Act for 1 or more covered commodities (except for
            peanuts) may not exceed $65,000.
              [(3) ACRE and counter-cyclical payments.--In the case
            of a person or legal entity (except a joint venture or
            a general partnership) that participates in the average
            crop revenue election program under section 1105 of the
            Food, Conservation, and Energy Act of 2008, the total
            amount of average crop revenue election payments and
            counter-cyclical payments received, directly or
            indirectly, by the person or legal entity for any crop
            year for 1 or more covered commodities (except for
            peanuts) may not exceed the sum of--
                      [(A) $65,000; and
                      [(B) the amount by which the direct payment
                    limitation is reduced under paragraph (1)(B).
      [(c) Limitation on Direct Payments, Counter-Cyclical
    Payments, and ACRE Payments for Peanuts.--
              [(1) Direct payments.--The total amount of direct
            payments received, directly or indirectly, by a person
            or legal entity (except a joint venture or a general
            partnership) for any crop year under subtitle C of
            title I of the Food, Conservation, and Energy Act of
            2008 for peanuts may not exceed--
                      [(A) in the case of a person or legal entity
                    that does not participate in the average crop
                    revenue election program under section 1105 of
                    that Act, $40,000; or
                      [(B) in the case of a person or legal entity
                    that participates in the average crop revenue
                    election program under section 1105 of that
                    Act, an amount equal to--
                              [(i) the payment limit specified in
                            subparagraph (A); less
                              [(ii) the amount of the reduction in
                            direct payments under section
                            1105(a)(1) of that Act.
              [(2) Counter-cyclical payments.--In the case of a
            person or legal entity (except a joint venture or a
            general partnership) that does not participate in the
            average crop revenue election program under section
            1105 of the Food, Conservation, and Energy Act of 2008,
            the total amount of counter-cyclical payments received,
            directly or indirectly, by the person or legal entity
            for any crop year under subtitle C of title I of that
            Act for peanuts may not exceed $65,000.
              [(3) ACRE and counter-cyclical payments.--In the case
            of a person or legal entity (except a joint venture or
            a general partnership) that participates in the average
            crop revenue election program under section 1105 of the
            Food, Conservation, and Energy Act of 2008, the total
            amount of average crop revenue election payments
            received, directly or indirectly, by the person or
            legal entity for any crop year for peanuts may not
            exceed the sum of--
                      [(A) $65,000; and
                      [(B) the amount by which the direct payment
                    limitation is reduced under paragraph (1)(B).]
      (b) Limitation on Payments for Covered Commodities (Other
    Than Peanuts).--The total amount of payments received, directly
    or indirectly, by a person or legal entity (except a joint
    venture or general partnership) for any crop year under
    subtitle A of title I of the Federal Agriculture Reform and
    Risk Management Act of 2012 for 1 or more covered commodities
    (other than peanuts) may not exceed $125,000.
      (c) Limitation on Payments for Peanuts.--The total amount of
    payments received, directly or indirectly, by a person or legal
    entity (except a joint venture or general partnership) for any
    crop year under subtitle A of title I of the Federal
    Agriculture Reform and Risk Management Act of 2012 for peanuts
    may not exceed $125,000.
      (d) Limitation on Applicability.--Nothing in this section
    authorizes any limitation on any benefit associated with the
    marketing assistance loan program or the loan deficiency
    payment program under title I of the Food, Conservation, and
    Energy Act of 2008 or title I of the Federal Agriculture Reform
    and Risk Management Act of 2012.

               *       *       *       *       *       *       *

      (f) Special Rules.--
              (1) * * *

               *       *       *       *       *       *       *

              (5) Federal agencies.--
                      (A) In general.--Notwithstanding subsection
                    (d), a Federal agency shall not be eligible to
                    receive any payment, benefit, or loan under
                    title I of the Food, Conservation, and Energy
                    Act of 2008 [or title XII], title I of the
                    Federal Agriculture Reform and Risk Management
                    Act of 2012, or title XII of this Act.

               *       *       *       *       *       *       *

              (6) State and local governments.--
                      (A) In general.--Notwithstanding subsection
                    (d), except as provided in subsection (g), a
                    State or local government, or political
                    subdivision or agency of the government, shall
                    not be eligible to receive any payment,
                    benefit, or loan under title I of the Food,
                    Conservation, and Energy Act of 2008 [or title
                    XII], title I of the Federal Agriculture Reform
                    and Risk Management Act of 2012, or title XII
                    of this Act.

               *       *       *       *       *       *       *

    SEC. 1001C. FOREIGN PERSONS MADE INELIGIBLE FOR PROGRAM BENEFITS.

      Notwithstanding any other provision of law:
      (a) In General.--Any person who is not a citizen of the
    United States or an alien lawfully admitted into the United
    States for permanent residence under the Immigration and
    Nationality Act (8 U.S.C. 1101 et seq.) shall be ineligible to
    receive any type of loans or payments made available under
    title I of the Food, Conservation, and Energy Act of 2008,
    title I of the Federal Agriculture Reform and Risk Management
    Act of 2012, the Agricultural Market Transition Act, the
    Commodity Credit Corporation Charter Act (15 U.S.C. 714 et
    seq.), or subtitle D of title XII of the Food Security Act of
    1985 (16 U.S.C. 3831 et seq.), or under any contract entered
    into under title XII, with respect to any commodity produced,
    or land set aside from production, on a farm that is owned or
    operated by such person, unless such person is an individual
    who is providing land, capital, and a substantial amount of
    personal labor in the production of crops on such farm.

               *       *       *       *       *       *       *

    SEC. 1001D. ADJUSTED GROSS INCOME LIMITATION.

      (a) Definitions.--
              [(1) In general.--In this section:
                      [(A) Average adjusted gross income.--The term
                    ``average adjusted gross income'', with respect
                    to a person or legal entity, means the average
                    of the adjusted gross income or comparable
                    measure of the person or legal entity over the
                    3 taxable years preceding the most immediately
                    preceding complete taxable year, as determined
                    by the Secretary.
                      [(B) Average adjusted gross farm income.--The
                    term ``average adjusted gross farm income'',
                    with respect to a person or legal entity, means
                    the average of the portion of adjusted gross
                    income of the person or legal entity that is
                    attributable to activities related to farming,
                    ranching, or forestry for the 3 taxable years
                    described in subparagraph (A), as determined by
                    the Secretary in accordance with subsection
                    (c).
                      [(C) Average adjusted gross nonfarm income.--
                    The term ``average adjusted gross nonfarm
                    income'', with respect to a person or legal
                    entity, means the difference between--
                              [(i) the average adjusted gross
                            income of the person or legal entity;
                            and
                              [(ii) the average adjusted gross farm
                            income of the person or legal entity.]
              (1) Average adjusted gross income.--In this section,
            the term ``average adjusted gross income'', with
            respect to a person or legal entity, means the average
            of the adjusted gross income or comparable measure of
            the person or legal entity over the 3 taxable years
            preceding the most immediately preceding complete
            taxable year, as determined by the Secretary.
              (2) Special rules for certain persons and legal
            entities.--In the case of a legal entity that is not
            required to file a Federal income tax return or a
            person or legal entity that did not have taxable income
            in 1 or more of the taxable years used to determine the
            average under [subparagraph (A) or (B) of] paragraph
            (1), the Secretary shall provide, by regulation, a
            method for determining the average adjusted gross
            income[, the average adjusted gross farm income, and
            the average adjusted gross nonfarm income] of the
            person or legal entity for purposes of this section.
              (3) Allocation of income.--On the request of any
            person filing a joint tax return, the Secretary shall
            provide for the allocation of average adjusted gross
            income[, average adjusted gross farm income, and
            average adjusted gross nonfarm income] among the
            persons filing the return if--
                      (A) the person provides a certified statement
                    by a certified public accountant or attorney
                    that specifies the method by which the average
                    adjusted gross income[, average adjusted gross
                    farm income, and average adjusted gross nonfarm
                    income] would have been declared and reported
                    had the persons filed 2 separate returns; and

               *       *       *       *       *       *       *

      (b) [Limitations] Limitations on Commodity and Conservation
    Programs.--
              [(1) Commodity programs.--
                      [(A) Nonfarm limitation.--Notwithstanding any
                    other provision of law, a person or legal
                    entity shall not be eligible to receive any
                    benefit described in subparagraph (C) during a
                    crop, fiscal, or program year, as appropriate,
                    if the average adjusted gross nonfarm income of
                    the person or legal entity exceeds $500,000.
                      [(B) Farm limitation.--Notwithstanding any
                    other provision of law, a person or legal
                    entity shall not be eligible to receive a
                    direct payment under subtitle A or C of title I
                    of the Food, Conservation, and Energy Act of
                    2008 during a crop year, if the average
                    adjusted gross farm income of the person or
                    legal entity exceeds $750,000.
                      [(C) Covered benefits.--Subparagraph (A)
                    applies with respect to the following:
                              [(i) A direct payment or counter-
                            cyclical payment under subtitle A or C
                            of title I of the Food, Conservation,
                            and Energy Act of 2008 or an average
                            crop revenue election payment under
                            subtitle A of title I of that Act.
                              [(ii) A marketing loan gain or loan
                            deficiency payment under subtitle B or
                            C of title I of the Food, Conservation,
                            and Energy Act of 2008.
                              [(iii) A payment or benefit under
                            section 196 of the Federal Agriculture
                            Improvement and Reform Act of 1996 (7
                            U.S.C. 7333).
                              [(iv) A payment or benefit under
                            section 1506 of the Food, Conservation,
                            and Energy Act of 2008.
                              [(v) A payment or benefit under title
                            IX of the Trade Act of 1974 or subtitle
                            B of the Federal Crop Insurance Act.
              [(2) Conservation programs.--
                      [(A) Limits.--
                              [(i) In general.--Notwithstanding any
                            other provision of law, except as
                            provided in clause (ii), a person or
                            legal entity shall not be eligible to
                            receive any benefit described in
                            subparagraph (B) during a crop, fiscal,
                            or program year, as appropriate, if the
                            average adjusted gross nonfarm income
                            of the person or legal entity exceeds
                            $1,000,000, unless not less than 66.66
                            percent of the average adjusted gross
                            income of the person or legal entity is
                            average adjusted gross farm income.
                              [(ii) Exception.--The Secretary may
                            waive the limitation established under
                            clause (i) on a case-by-case basis if
                            the Secretary determines that
                            environmentally sensitive land of
                            special significance would be
                            protected.
                      [(B) Covered benefits.--Subparagraph (A)
                    applies with respect to the following:
                              [(i) A payment or benefit under title
                            XII of this Act.
                              [(ii) A payment or benefit under
                            title II of the Farm Security and Rural
                            Investment Act of 2002 (Public Law 107-
                            171; 116 Stat. 223) or title II of the
                            Food, Conservation, and Energy Act of
                            2008.
                              [(iii) A payment or benefit under
                            section 524(b) of the Federal Crop
                            Insurance Act (7 U.S.C. 1524(b)).]
              (1) Limitation.--Notwithstanding any other provision
            of law, a person or legal entity shall not be eligible
            to receive any benefit described in paragraph (2)
            during a crop, fiscal, or program year, as appropriate,
            if the average adjusted gross income of the person or
            legal entity exceeds $950,000.
              (2) Covered benefits.--Paragraph (1) applies with
            respect to a payment or benefit under section 1107,
            subtitle B or E of title I, or title II of the Federal
            Agriculture Reform and Risk Management Act of 2012,
            title II of the Farm Security and Rural Investment Act
            of 2002, title II of the Food, Conservation, and Energy
            Act of 2008, title XII of the Food Security Act of
            1985, section 524(b) of the Federal Crop Insurance Act
            (7 U.S.C. 1524(b)), or section 196 of the Federal
            Agriculture Improvement and Reform Act of 1996 (7
            U.S.C. 7333).
      [(c) Income Determination.--
              [(1) In general.--In determining the average adjusted
            gross farm income of a person or legal entity, the
            Secretary shall include income or benefits derived from
            or related to--
                      [(A) the production of crops, including
                    specialty crops (as defined in section 3 of the
                    Specialty Crops Competitiveness Act of 2004 (7
                    U.S.C. 1621 note; Public Law 108-465)) and
                    unfinished raw forestry products;
                      [(B) the production of livestock (including
                    cattle, elk, reindeer, bison, horses, deer,
                    sheep, goats, swine, poultry, fish, and other
                    aquacultural products used for food, honeybees,
                    and other animals designated by the Secretary)
                    and products produced by, or derived from,
                    livestock;
                      [(C) the production of farm-based renewable
                    energy (as defined in section 9001 of the Farm
                    Security and Rural Investment Act of 2002 (7
                    U.S.C. 8101));
                      [(D) the sale, including the sale of
                    easements and development rights, of farm,
                    ranch, or forestry land, water or hunting
                    rights, or environmental benefits;
                      [(E) the rental or lease of land or equipment
                    used for farming, ranching, or forestry
                    operations, including water or hunting rights;
                      [(F) the processing (including packing),
                    storing (including shedding), and transporting
                    of farm, ranch, and forestry commodities,
                    including renewable energy;
                      [(G) the feeding, rearing, or finishing of
                    livestock;
                      [(H) the sale of land that has been used for
                    agriculture;
                      [(I) payments or other benefits received
                    under any program authorized under title I of
                    the Farm Security and Rural Investment Act of
                    2002 (7 U.S.C. 7901 et seq.) or title I of the
                    Food, Conservation, and Energy Act of 2008;
                      [(J) payments or other benefits received
                    under any program authorized under title XII of
                    this Act, title II of the Farm Security and
                    Rural Investment Act of 2002 (Public Law 107-
                    171; 116 Stat. 223), or title II of the Food,
                    Conservation, and Energy Act of 2008;
                      [(K) payments or other benefits received
                    under section 196 of the Federal Agriculture
                    Improvement and Reform Act of 1996 (7 U.S.C.
                    7333);
                      [(L) payments or other benefits received
                    under title IX of the Trade Act of 1974 or
                    subtitle B of the Federal Crop Insurance Act;
                      [(M) risk management practices, including
                    benefits received under a program authorized
                    under the Federal Crop Insurance Act (7 U.S.C.
                    1501 et seq.) (including a catastrophic risk
                    protection plan offered under section 508(b) of
                    that Act (7 U.S.C. 1508(b))); and
                      [(N) any other activity related to farming,
                    ranching, or forestry, as determined by the
                    Secretary.
              [(2) Income derived from farming, ranching, or
            forestry.--In determining the average adjusted gross
            farm income of a person or legal entity, in addition to
            the inclusions described in paragraph (1), the
            Secretary shall include any income reported on the
            Schedule F or other schedule used by the person or
            legal entity to report income from farming, ranching,
            or forestry operations to the Internal Revenue Service,
            to the extent such income is not already included under
            paragraph (1).
              [(3) Special rule.--If not less than 66.66 percent of
            the average adjusted gross income of a person or legal
            entity is derived from farming, ranching, or forestry
            operations described in paragraphs (1) and (2), in
            determining the average adjusted gross farm income of
            the person or legal entity, the Secretary shall also
            include--
                      [(A) the sale of equipment to conduct farm,
                    ranch, or forestry operations; and
                      [(B) the provision of production inputs and
                    services to farmers, ranchers, foresters, and
                    farm operations.]
      [(d)] (c) Enforcement.--
              (1) In general.--To comply with subsection (b), at
            least once every 3 years a person or legal entity shall
            provide to the Secretary--
                      (A) a certification by a certified public
                    accountant or another third party that is
                    acceptable to the Secretary that the average
                    adjusted gross income[, average adjusted gross
                    farm income, and average adjusted gross nonfarm
                    income] of the person or legal entity does not
                    exceed the applicable limitation specified in
                    that subsection; or
                      (B) information and documentation regarding
                    the average adjusted gross income[, average
                    adjusted gross farm income, and average
                    adjusted gross nonfarm income] of the person or
                    legal entity through other procedures
                    established by the Secretary.
              (2) Denial of program benefits.--If the Secretary
            determines that a person or legal entity has failed to
            comply with this section, the Secretary shall deny the
            issuance of applicable payments and benefits specified
            in [paragraphs (1)(C) and (2)(B) of subsection (b)]
            subsection (b)(2) to the person or legal entity, under
            similar terms and conditions as described in section
            1001B.

               *       *       *       *       *       *       *

      [(e)] (d) Commensurate Reduction.--In the case of a payment
    or benefit described in [paragraphs (1)(C) and (2)(B) of
    subsection (b)] subsection (b)(2) made in a crop, program, or
    fiscal year, as appropriate, to an entity, general partnership,
    or joint venture, the amount of the payment or benefit shall be
    reduced by an amount that is commensurate with the direct and
    indirect ownership interest in the entity, general partnership,
    or joint venture of each person who has an average adjusted
    gross income[, average adjusted gross farm income, or average
    adjusted gross nonfarm income] in excess of the applicable
    limitation specified in subsection (b).
      [(f)] (e) Effective Period.--This section shall apply only
    during the [2009 through 2012] 2013 through 2017 crop, program,
    or fiscal years, as appropriate.

               *       *       *       *       *       *       *

    TITLE XI--TRADE

               *       *       *       *       *       *       *

    Subtitle D--Agricultural Imports

               *       *       *       *       *       *       *

                        [DAIRY EXPORT INCENTIVE PROGRAM

      [Sec. 153. (a) During the period beginning 60 days after the
    date of enactment of this Act and ending on December 31, 2012,
    the Commodity Credit Corporation shall establish and operate an
    export incentive program as described in this section for dairy
    products under section 5 of the Commodity Credit Corporation
    Charter Act.
      [(b) The program established under subsection (a) shall
    provide for the Corporation to make payments, on a bid basis,
    to an entity that sells for export United States dairy
    products. The Secretary shall have sole discretion to accept or
    reject bids under such criteria as the Secretary deems
    appropriate.
      [(c) The program shall be operated under such rules and
    regulations issued by the Secretary as the Secretary deems
    necessary to ensure, among other things, that--
              [(1) payments may be made under the program only on
            the quantity of dairy products sold by an entity for
            export in any year that is in addition to, and not in
            place of, any export sales of dairy products that the
            entity would otherwise make in the absence of the
            program;
              [(2) to the extent practicable, dairy products sold
            for export under the program will not displace
            commercial export sales of United States dairy products
            by other exporters;
              [(3) the maximum volume of dairy product exports
            allowable consistent with the obligations of the United
            States under the Uruguay Round Agreements approved
            under section 101 of the Uruguay Round Agreements Act
            (19 U.S.C. 3511) is exported under the program each
            year (minus the volume sold under section 1163 of this
            Act during that year), except to the extent that the
            export of such a volume under the program would, in the
            judgment of the Secretary, exceed the limitations on
            the value permitted under subsection (f); and
              [(4) payments may be made under the program for
            exports to any destination in the world for the purpose
            of market development, except a destination in a
            country with respect to which shipments from the United
            States are otherwise restricted by law.
      [(d)(1) The regulations issued by the Secretary may provide
    for payments under the program to be made in cash or in
    commodities of equal value that are available in Commodity
    Credit Corporation stock.
      [(2) If payments in commodities are authorized, such payments
    shall be made through the issuance of generic certificates
    redeemable in commodities.
      [(3) If generic certificates issued in accordance with the
    program provided for by this section are exchanged for dairy
    products owned by the Commodity Credit Corporation, the
    regulations issued by the Secretary shall ensure that--
              [(A) such dairy products, or an equal quantity of
            other dairy products, will be sold for export by the
            entity; and
              [(B) any such export sales by the entity--
                      [(i) will be in addition to, and not in place
                    of, export sales of dairy products that the
                    entity would otherwise make under the program
                    or in the absence of the program; and
                      [(ii) to the extent practicable, will not
                    displace commercial export sales of United
                    States dairy products by other exporters.
      [(e)(1) The payments made under the program shall be made at
    a rate or rates established or approved by the Secretary,
    taking into consideration, among other things the type of
    product to be exported, the domestic price of dairy products,
    the world price of the dairy products, and any additional
    amount that may be required to assist in the development of
    world markets for United States dairy products.
      [(2) Any such rate established or approved by the Secretary
    shall be published in the Federal Register or publicly
    announced through other appropriate means, and shall be at a
    level or levels as will encourage the exportation of United
    States dairy products by entities.
      [(f) Required Funding.--
              [(1) Funds and commodities.--Except as provided in
            paragraph (2), the Commodity Credit Corporation shall
            in each year use money and commodities for the program
            under this section in the maximum amount consistent
            with the obligations of the United States under the
            Uruguay Round Agreements approved under section 101 of
            the Uruguay Round Agreements Act (19 U.S.C. 3511),
            minus the amount expended under section 1163 of this
            Act during that year.
              [(2) Volume limitations.--The Commodity Credit
            Corporation may not exceed the limitations specified in
            subsection (c)(3) on the volume of allowable dairy
            product exports.]

               *       *       *       *       *       *       *

                            TITLE XII--CONSERVATION

                            Subtitle A--Definitions

                                  DEFINITIONS

      Sec. 1201. (a) For purposes of subtitles A through [E] I:
              (1) * * *

               *       *       *       *       *       *       *

                 Subtitle B--Highly Erodible Land Conservation

    SEC. 1211. PROGRAM INELIGIBILITY.

      (a) In General.--Except as provided in section 1212, and
    notwithstanding any other provision of law, any person who in
    any crop year produces an agricultural commodity on a field on
    which highly erodible land is [predominate] predominant, or
    designates land on which highly erodible land is [predominate]
    predominant to be set aside, diverted, devoted to conservation
    uses, or otherwise not cultivated under a program administered
    by the Secretary to reduce production of an agricultural
    commodity, as determined by the Secretary shall be ineligible
    for--
              (1) * * *

               *       *       *       *       *       *       *

            Subtitle D--Agricultural Resources Conservation Program

          CHAPTER 1--[COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM]
                              CONSERVATION RESERVE

                        Subchapter A--General Provisions

    [SEC. 1230. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.

      [(a) Establishment.--
              [(1) In general.--During the 1996 through 2002
            calendar years, the Secretary shall establish a
            comprehensive conservation enhancement program
            (referred to in this section as ``CCEP'') to be
            implemented through contracts and the acquisition of
            easements to assist owners and operators of farms and
            ranches to conserve and enhance soil, water, and
            related natural resources, including grazing land,
            wetland, and wildlife habitat.
              [(2) Means.--The Secretary shall carry out the CCEP
            by--
                      [(A) providing for the long-term protection
                    of environmentally sensitive land; and
                      [(B) providing technical and financial
                    assistance to farmers and ranchers to--
                              [(i) improve the management and
                            operation of the farms and ranches; and
                              [(ii) reconcile productivity and
                            profitability with protection and
                            enhancement of the environment.
              [(3) Programs.--The CCEP shall consist of--
                      [(A) the conservation reserve program
                    established under subchapter B;
                      [(B) the wetlands reserve program established
                    under subchapter C; and
                      [(C) the environmental quality incentives
                    program established under chapter 4.
      [(b) Administration.--
              [(1) In general.--In carrying out the CCEP, the
            Secretary shall enter into contracts with owners and
            operators and acquire interests in land through
            easements from owners, as provided in this chapter and
            chapter 4.
              [(2) Prior enrollments.--Acreage enrolled in the
            conservation reserve or wetlands reserve program prior
            to the date of enactment of this paragraph shall be
            considered to be placed into the CCEP.]

               *       *       *       *       *       *       *

                       Subchapter B--Conservation Reserve

    SEC. 1231. CONSERVATION RESERVE.

      (a) In General.--Through the [2012] 2017 fiscal year, the
    Secretary shall formulate and carry out a conservation reserve
    program under which land is enrolled through the use of
    contracts to assist owners and operators of land specified in
    subsection (b) to conserve and improve the soil, water, and
    wildlife resources of such land and to address issues raised by
    State, regional, and national conservation initiatives.
      (b) Eligible Land.--The Secretary may include in the program
    established under this subchapter--
              (1) highly erodible cropland that--
                      (A) * * *
                      (B) the Secretary determines had a cropping
                    history or was considered to be planted for 4
                    of the 6 years preceding [the date of enactment
                    of the Food, Conservation, and Energy Act of
                    2008] the date of the enactment of the Federal
                    Agriculture Reform and Risk Management Act of
                    2012 (except for land enrolled in the
                    conservation reserve program as of that date);
              [(2) marginal pasture land converted to wetland or
            established as wildlife habitat prior to November 28,
            1990;]
              [(3)] (2) marginal pasture land to be devoted to
            appropriate vegetation, including trees, in or near
            riparian areas, or devoted to similar water quality
            purposes (including marginal pastureland converted to
            wetland or established as wildlife habitat);
              (3) grasslands that--
                      (A) contain forbs or shrubland (including
                    improved rangeland and pastureland) for which
                    grazing is the predominant use;
                      (B) are located in an area historically
                    dominated by grasslands; and
                      (C) could provide habitat for animal and
                    plant populations of significant ecological
                    value if the land is retained in its current
                    use or restored to a natural condition;
              (4) cropland that is otherwise ineligible if the
            Secretary determines that--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) the land will be devoted to newly
                    established living snow fences, permanent
                    wildlife habitat, windbreaks, shelterbelts, or
                    [filterstrips devoted to trees or shrubs]
                    filterstrips or riparian buffers devoted to
                    trees, shrubs, or grasses;

               *       *       *       *       *       *       *

              [(5) the portion of land in a field not enrolled in
            the conservation reserve in a case in which more than
            50 percent of the land in the field is enrolled as a
            buffer, if--
                      [(A) the land is enrolled as part of the
                    buffer; and
                      [(B) the remainder of the field is--
                              [(i) infeasible to farm; and
                              [(ii) enrolled at regular rental
                            rates.]
              (5) the portion of land in a field not enrolled in
            the conservation reserve in a case in which--
                      (A) more than 50 percent of the land in the
                    field is enrolled as a buffer or filterstrip,
                    or more than 75 percent of the land in the
                    field is enrolled as a conservation practice
                    other than as a buffer or filterstrip; and
                      (B) the remainder of the field is--
                              (i) infeasible to farm; and
                              (ii) enrolled at regular rental
                            rates.
      (c) Planting Status of Certain Land.--For purposes of
    determining the eligibility of land to be placed in the
    conservation reserve established under this subchapter, land
    shall be considered to be planted to an agricultural commodity
    during a crop year [if--
              [(1) during the crop year, the land was devoted to a
            conserving use; or
              [(2)(A) during the crop year or during any of the 2
            years preceding the crop year, the land was enrolled in
            the water bank program; and
              [(B) the contract of the owner or operator of the
            cropland expired or will expire in calendar year 2000,
            2001, or 2002.] if, during the crop year, the land was
            devoted to a conserving use.
      [(d) Maximum Enrollment.--The Secretary may maintain up to
    39,200,000 acres in the conservation reserve at any 1 time
    during the 2002 through 2009 fiscal years (including contracts
    extended by the Secretary pursuant to section 1437(c) of the
    Food, Agriculture, Conservation, and Trade Act of 1990 (16
    U.S.C. 3831 note; Public Law 101 09624)). During fiscal years
    2010, 2011, and 2012, the Secretary may maintain up to
    32,000,000 acres in the conservation reserve at any 1 time.]
      (d) Enrollment.--
              (1) Maximum acreage enrolled.--The Secretary may
            maintain in the conservation reserve at any one time
            during--
                      (A) fiscal year 2012, no more than 32,000,000
                    acres;
                      (B) fiscal year 2013, no more than 29,000,000
                    acres;
                      (C) fiscal year 2014, no more than 26,000,000
                    acres;
                      (D) fiscal year 2015, no more than 26,000,000
                    acres;
                      (E) fiscal year 2016, no more than 25,500,000
                    acres; and
                      (F) fiscal year 2017, no more than 25,000,000
                    acres.
              (2) Grasslands.--
                      (A) Limitation.--For purposes of applying the
                    limitations in paragraph (1), no more than
                    2,000,000 acres of the land described in
                    subsection (b)(3) may be enrolled in the
                    program at any one time during the 2013 through
                    2017 fiscal years.
                      (B) Priority.--In enrolling acres under
                    subparagraph (A), the Secretary may give
                    priority to land with expiring conservation
                    reserve program contracts.
                      (C) Method of enrollment.--In enrolling acres
                    under subparagraph (A), the Secretary shall
                    make the program available to owners or
                    operators of eligible land on a continuous
                    enrollment basis with one or more ranking
                    periods.
      (e) Duration of Contract.--
              (1) * * *
              [(2) Certain land.--
                      [(A) In general.--In the case of land devoted
                    to hardwood trees, shelterbelts, windbreaks, or
                    wildlife corridors under a contract entered
                    into under this subchapter after October 1,
                    1990, and land devoted to such uses under
                    contracts modified under section 1235A, the
                    owner or operator of the land may, within the
                    limitations prescribed under this section,
                    specify the duration of the contract.
                      [(B) Hardwood trees.--In the case of land
                    that is devoted to hardwood trees under a
                    contract entered into under this subchapter
                    prior to October 1, 1990, the Secretary may
                    extend the contract for a term of not to exceed
                    5 years, as agreed to by the owner or operator
                    of such land and the Secretary.
              [(3) 1-year extension.--In the case of a contract
            described in paragraph (1) the term of which expires
            during calendar year 2002, an owner or operator of land
            enrolled under the contract may extend the contract for
            1 additional year.]
              (2) Special rule for certain land.--In the case of
            land devoted to hardwood trees, shelterbelts,
            windbreaks, or wildlife corridors under a contract
            entered into under this subchapter, the owner or
            operator of the land may, within the limitations
            prescribed under paragraph (1), specify the duration of
            the contract.
      (f) Conservation Priority Areas.--
              (1) Designation.--On application by the appropriate
            State agency, the Secretary shall designate [watershed
            areas of the Chesapeake Bay Region, the Great Lakes
            Region, the Long Island Sound Region, and other] areas
            of special environmental sensitivity as conservation
            priority areas.
              (2) Eligible [watersheds.--] areas.--[Watersheds]
            Areas eligible for designation under this subsection
            shall include areas with actual and significant adverse
            water quality or habitat impacts related to
            agricultural production activities.
              (3) Expiration.--Conservation priority area
            designation under this subsection shall expire after 5
            years, subject to redesignation, except that the
            Secretary may withdraw [a watershed's designation--
                      [(A) on application by the appropriate State
                    agency; or
                      [(B) in the case of an area covered by this
                    subsection, if the Secretary finds that the
                    area no longer contains actual and significant
                    adverse water quality or habitat impacts
                    related to agricultural production activities.]
                    an area's designation if the Secretary finds
                    that the area no longer contains actual and
                    significant adverse water quality or habitat
                    impacts related to agricultural production
                    activities.

               *       *       *       *       *       *       *

    [SEC. 1231A. EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.

              [(a) Definitions.--In this section:
                      [(1) Merchantable timber.--The term
                    ``merchantable timber'' means timber on private
                    nonindustrial forest land on which the average
                    tree has a trunk diameter of at least 6 inches
                    measured at a point no less than 4.5 feet above
                    the ground.
                      [(2) Private nonindustrial forest land.--The
                    term ``private nonindustrial forest land''
                    includes State school trust land.
              [(b) Program.--The Secretary shall carry out an
            emergency pilot program in States that the Secretary
            determines have suffered damage to merchantable timber
            in counties affected by hurricanes during the 2005
            calendar year.
              [(c) Eligible acreage.--
                      [(1) In general.--Subject to paragraph (2)
                    and the availability of funds under paragraph
                    (7), an owner or operator may enroll private
                    nonindustrial forest land in the conservation
                    reserve under this section.
                      [(2) Determination of damages.--Eligibility
                    for enrollment shall be limited to owners and
                    operators of private nonindustrial forest land
                    that have experienced a loss of 35 percent or
                    more of merchantable timber in a county
                    affected by hurricanes during the 2005 calendar
                    year.
                      [(3) Exemptions.--Acreage enrolled in the
                    conservation reserve under this section shall
                    not count toward--
                              [(A) county acreage limitations
                            described in section 1243(b); or
                              [(B) the maximum enrollment described
                            in section 1231(d).
                      [(4) Duties of owners and operators.--As a
                    condition of entering into a contract under
                    this section, during the term of the contract,
                    the owner or operator of private nonindustrial
                    forest land shall agree--
                              [(A) to restore the land, through
                            site preparation and planting of
                            similar species as existing prior to
                            hurricane damages or to the maximum
                            extent practicable with other native
                            species, as determined by the
                            Secretary; and
                              [(B) to establish temporary
                            vegetative cover the purpose of which
                            is to prevent soil erosion on the
                            eligible acreage, as determined by the
                            Secretary.
                      [(5) Duties of the secretary.--
                              [(A) In general.--In return for a
                            contract entered into by an owner or
                            operator of private nonindustrial
                            forest land under this section, the
                            Secretary shall provide, at the option
                            of the landowner--
                                      [(i) notwithstanding the
                                    limitation in section
                                    1234(f)(1), a lump sum payment;
                                    or
                                      [(ii) annual rental payments.
                              [(B) Calculation of lump sum
                            payment.--The lump sum payment
                            described in subparagraph (A)(i) shall
                            be calculated using a net present value
                            formula, as determined by the
                            Secretary, based on the total amount a
                            producer would receive over the
                            duration of the contract.
                              [(C) Calculation of annual rental
                            payments.--The annual rental payment
                            described in subparagraph (A)(ii) shall
                            be equal to the average rental rate for
                            conservation reserve contracts in the
                            county in which the land is located.
                              [(D) Rolling signup.--The Secretary
                            shall offer a rolling signup for
                            contracts under this section.
                              [(E) Duration of contracts.--A
                            contract entered into under this
                            section shall have a term of 10 years.
                      [(6) Balance of natural resources.--In
                    determining the acceptability of contract
                    offers under this section, the Secretary shall
                    consider an equitable balance among the
                    purposes of soil erosion prevention, water
                    quality improvement, wildlife habitat
                    restoration, and mitigation of economic loss.
                      [(7) Funding.--The Secretary shall use
                    $504,100,000, to remain available until
                    expended, of funds of the Commodity Credit
                    Corporation to carry out this section.
                      [(8) Determinations by secretary.--A
                    determination made by the Secretary under this
                    section shall be final and conclusive.
                      [(9) Regulations.--
                              [(A) In general.--Not later than 90
                            days after the date of enactment of
                            this Act, the Secretary shall
                            promulgate such regulations as are
                            necessary to implement this section.
                              [(B) Procedure.--The promulgation of
                            regulations and administration of this
                            section shall be made without regard
                            to--
                                      [(i) the notice and comment
                                    provisions of section 553 of
                                    title 5, United States Code;
                                      [(ii) 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
                                      [(iii) chapter 35 of title
                                    44, United States Code
                                    (commonly known as the
                                    ``Paperwork Reduction Act'').
                              [(C) Congressional review of agency
                            rulemaking.--In carrying out this
                            section, the Secretary shall use the
                            authority provided under section 808 of
                            title 5, United States Code.]

    SEC. 1231B. [PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND BUFFER ACREAGE
                        IN CONSERVATION RESERVE.] FARMABLE WETLAND PROGRAM.

      (a) Program Required.--
              (1) In general.--During the 2008 through [2012] 2017
            fiscal years, the Secretary shall carry out [a program]
            a farmable wetland program in each State under which
            the Secretary shall enroll eligible acreage described
            in subsection (b).

               *       *       *       *       *       *       *

      (b) Eligible Acreage.--
              (1) Wetland and related land.--Subject to subsections
            (c) and (d), an owner or operator may enroll in the
            conservation reserve, pursuant to the program
            established under this section, land--
                      (A) * * *
                      (B) on which a constructed wetland is to be
                    developed that will receive [flow from a row
                    crop agriculture drainage system] surface and
                    subsurface flow from row crop agricultural
                    production and is designed to provide nitrogen
                    removal in addition to other wetland functions;

               *       *       *       *       *       *       *

      (c) Program Limitations.--
              (1) Acreage limitation.--The Secretary may enroll in
            the conservation reserve, pursuant to the program
            established under this section, not more than--
                      (A) * * *
                      (B) a total of [1,000,000] 750,000 acres.

               *       *       *       *       *       *       *

    SEC. 1232. DUTIES OF OWNERS AND OPERATORS.

      (a) In General.--Under the terms of a contract entered into
    under this subchapter, during the term of the contract, an
    owner or operator of a farm or ranch shall agree--
              (1) * * *

               *       *       *       *       *       *       *

              (8) not to conduct any harvesting or grazing, nor
            otherwise make commercial use of the forage, on land
            that is subject to the contract, nor adopt any similar
            practice specified in the contract by the Secretary as
            a practice that would tend to defeat the purposes of
            the contract, [except that the Secretary may permit,
            consistent with the conservation of soil, water
            quality, and wildlife habitat (including habitat during
            nesting seasons for birds in the area)--
                      [(A) managed harvesting (including the
                    managed harvesting of biomass), except that in
                    permitting managed harvesting, the Secretary,
                    in coordination with the State technical
                    committee--
                              [(i) shall develop appropriate
                            vegetation management requirements; and
                              [(ii) shall identify periods during
                            which managed harvesting may be
                            conducted;
                      [(B) harvesting and grazing or other
                    commercial use of the forage on the land that
                    is subject to the contract in response to a
                    drought or other emergency;
                      [(C) routine grazing or prescribed grazing
                    for the control of invasive species, except
                    that in permitting such routine grazing or
                    prescribed grazing, the Secretary, in
                    coordination with the State technical
                    committee--
                              [(i) shall develop appropriate
                            vegetation management requirements and
                            stocking rates for the land that are
                            suitable for continued routine grazing;
                            and
                              [(ii) shall establish the frequency
                            during which routine grazing may be
                            conducted, taking into consideration
                            regional differences such as--
                                      [(I) climate, soil type, and
                                    natural resources;
                                      [(II) the number of years
                                    that should be required between
                                    routine grazing activities; and
                                      [(III) how often during a
                                    year in which routine grazing
                                    is permitted that routine
                                    grazing should be allowed to
                                    occur; and
                      [(D) the installation of wind turbines,
                    except that in permitting the installation of
                    wind turbines, the Secretary shall determine
                    the number and location of wind turbines that
                    may be installed, taking into account--
                              [(i) the location, size, and other
                            physical characteristics of the land;
                              [(ii) the extent to which the land
                            contains wildlife and wildlife habitat;
                            and
                              [(iii) the purposes of the
                            conservation reserve program under this
                            subchapter;] except as provided in
                            subsection (b) or (c) of section 1233;

               *       *       *       *       *       *       *

      [(b) Conservation Plans.--The plan referred to in subsection
    (a)(1)--
              [(1) shall set forth--
                      [(A) the conservation measures and practices
                    to be carried out by the owner or operator
                    during the term of the contract; and
                      [(B) the commercial use, if any, to be
                    permitted on the land during the term; and
              [(2) may provide for the permanent retirement of any
            existing cropland base and allotment history for the
            land.]
      (b) Conservation Plans.--The plan referred to in subsection
    (a)(1) shall set forth--
              (1) the conservation measures and practices to be
            carried out by the owner or operator during the term of
            the contract; and
              (2) the commercial use, if any, to be permitted on
            the land during the term.

               *       *       *       *       *       *       *

      [(d) Rental Payment Reduction for Certain Authorized Uses of
    Enrolled Land.--In the case of an authorized activity under
    subsection (a)(8) on land that is subject to a contract under
    this subchapter, the Secretary shall reduce the rental payment
    otherwise payable under the contract by an amount commensurate
    with the economic value of the authorized activity.]

    [SEC. 1233. DUTIES OF THE SECRETARY.

      [In return for a contract entered into by an owner or
    operator under section 1232, the Secretary shall--
              [(1) share the cost of carrying out the conservation
            measures and practices set forth in the contract for
            which the Secretary determines that cost sharing is
            appropriate and in the public interest; and
              [(2) for a period of years not in excess of the term
            of the contract, pay an annual rental payment in an
            amount necessary to compensate for--
                      [(A) the conversion of highly erodible
                    cropland normally devoted to the production of
                    an agricultural commodity on a farm or ranch to
                    a less intensive use; and
                      [(B) the retirement of any cropland base and
                    allotment history that the owner or operator
                    agrees to retire permanently.]

    SEC. 1233. DUTIES OF THE SECRETARY.

      (a) Cost-Share and Rental Payments.--In return for a contract
    entered into by an owner or operator under the conservation
    reserve program, the Secretary shall--
              (1) share the cost of carrying out the conservation
            measures and practices set forth in the contract for
            which the Secretary determines that cost sharing is
            appropriate and in the public interest; and
              (2) for a period of years not in excess of the term
            of the contract, pay an annual rental payment in an
            amount necessary to compensate for--
                      (A) the conversion of highly erodible
                    cropland or other eligible lands normally
                    devoted to the production of an agricultural
                    commodity on a farm or ranch to a less
                    intensive use;
                      (B) the retirement of any base history that
                    the owner or operator agrees to retire
                    permanently; and
                      (C) the development and management of
                    grasslands for multiple natural resource
                    conservation benefits, including to soil,
                    water, air, and wildlife.
      (b) Specified Activities Permitted.--The Secretary shall
    permit certain activities or commercial uses of land that is
    subject to a contract under the conservation reserve program in
    a manner that is consistent with a plan approved by the
    Secretary, as follows:
              (1) Harvesting, grazing, or other commercial use of
            the forage in response to a drought or other emergency
            created by a natural disaster, without any reduction in
            the rental rate.
              (2) Consistent with the conservation of soil, water
            quality, and wildlife habitat (including habitat during
            nesting seasons for birds in the area), and in exchange
            for a reduction of not less than 25 percent in the
            annual rental rate for the acres covered by the
            authorized activity--
                      (A) managed harvesting and other commercial
                    use (including the managed harvesting of
                    biomass), except that in permitting managed
                    harvesting, the Secretary, in coordination with
                    the State technical committee--
                              (i) shall develop appropriate
                            vegetation management requirements; and
                              (ii) shall identify periods during
                            which managed harvesting may be
                            conducted, such that the frequency is
                            not more than once every three years;
                      (B) routine grazing or prescribed grazing for
                    the control of invasive species, except that in
                    permitting such routine grazing or prescribed
                    grazing, the Secretary, in coordination with
                    the State technical committee--
                              (i) shall develop appropriate
                            vegetation management requirements and
                            stocking rates for the land that are
                            suitable for continued routine grazing;
                            and
                              (ii) shall identify the periods
                            during which routine grazing may be
                            conducted, such that the frequency is
                            not more than once every two years,
                            taking into consideration regional
                            differences such as--
                                      (I) climate, soil type, and
                                    natural resources;
                                      (II) the number of years that
                                    should be required between
                                    routine grazing activities; and
                                      (III) how often during a year
                                    in which routine grazing is
                                    permitted that routine grazing
                                    should be allowed to occur; and
                      (C) the installation of wind turbines and
                    associated access, except that in permitting
                    the installation of wind turbines, the
                    Secretary shall determine the number and
                    location of wind turbines that may be
                    installed, taking into account--
                              (i) the location, size, and other
                            physical characteristics of the land;
                              (ii) the extent to which the land
                            contains wildlife and wildlife habitat;
                            and
                              (iii) the purposes of the
                            conservation reserve program under this
                            subchapter.
              (3) The intermittent and seasonal use of vegetative
            buffer practices incidental to agricultural production
            on lands adjacent to the buffer such that the permitted
            use does not destroy the permanent vegetative cover.
      (c) Authorized Activities on Grasslands.--For eligible land
    described in section 1231(b)(3), the Secretary shall permit the
    following activities:
              (1) Common grazing practices, including maintenance
            and necessary cultural practices, on the land in a
            manner that is consistent with maintaining the
            viability of grassland, forb, and shrub species
            appropriate to that locality.
              (2) Haying, mowing, or harvesting for seed
            production, subject to appropriate restrictions during
            the nesting season for critical bird species in the
            area.
              (3) Fire presuppression, fire-related rehabilitation,
            and construction of fire breaks.
              (4) Grazing-related activities, such as fencing and
            livestock watering.
      (d) Resource Conserving Use.--
              (1) In general.--Beginning on the date that is 1 year
            before the date of termination of a contract under the
            program, the Secretary shall allow an owner or operator
            to make conservation and land improvements that
            facilitate maintaining protection of enrolled land
            after expiration of the contract.
              (2) Conservation plan.--The Secretary shall require
            an owner or operator carrying out the activities
            described in paragraph (1) to develop and implement a
            conservation plan.
              (3) Re-enrollment prohibited.--Land improved under
            paragraph (1) may not be re-enrolled in the
            conservation reserve program for 5 years after the date
            of termination of the contract.

    SEC. 1234. PAYMENTS.

      (a) * * *
      (b) Federal Percentage of Cost Sharing Payments.--
              (1) * * *

               *       *       *       *       *       *       *

              (3) Trees, windbreaks, shelterbelts, and wildlife
            corridors.--
                      (A) Applicability.--This paragraph applies
                    to--
                              (i) land devoted to the production of
                            hardwood trees, windbreaks,
                            shelterbelts, or wildlife corridors
                            under a contract entered into under
                            this subchapter after November 28,
                            1990; and
                              [(ii) land converted to such
                            production under section 1235A; and]
                              [(iii)] (ii) land on which an owner
                            or operator agrees to conduct thinning
                            authorized by section 1232(a)(9), if
                            the thinning is necessary to improve
                            the condition of resources on the land.

               *       *       *       *       *       *       *

      (c) Annual Rental Payments.--
              (1) In general.--In determining the amount of annual
            rental payments to be paid to owners and operators for
            converting highly erodible cropland or other eligible
            lands normally devoted to the production of an
            agricultural commodity to less intensive use, the
            Secretary may consider, among other things, the amount
            necessary to encourage owners or operators of highly
            erodible cropland or other eligible lands to
            participate in the program established by this
            subchapter.
              [(2) Method of determination.--The amounts payable to
            owners or operators in the form of rental payments
            under contracts entered into under this subchapter may
            be determined through--
                      [(A) the submission of bids for such
                    contracts by owners and operators in such
                    manner as the Secretary may prescribe; or
                      [(B) such other means as the Secretary
                    determines are appropriate.]
              (2) Methods of determination.--
                      (A) In general.--The amounts payable to
                    owners or operators in the form of rental
                    payments under contracts entered into under
                    this subchapter may be determined through--
                              (i) the submission of bids for such
                            contracts by owners and operators in
                            such manner as the Secretary may
                            prescribe; or
                              (ii) such other means as the
                            Secretary determines are appropriate.
                      (B) Grasslands.--In the case of eligible land
                    described in section 1231(b)(3), the Secretary
                    shall make annual payments in an amount that is
                    not more than 75 percent of the grazing value
                    of the land covered by the contract.

               *       *       *       *       *       *       *

      [(d) Cash or In-Kind Payments.--
              [(1) In general.--Except as otherwise provided in
            this section, payments under this subchapter--
                      [(A) shall be made in cash or in commodities
                    in such amount and on such time schedule as is
                    agreed on and specified in the contract; and
                      [(B) may be made in advance of determination
                    of performance.
              [(2) Method of providing in-kind payments.--If the
            payment to an owner or operator is made with in-kind
            commodities, the payment shall be made by the Commodity
            Credit Corporation--
                      [(A) by delivery of the commodity involved to
                    the owner or operator at a warehouse or other
                    similar facility located in the county in which
                    the highly erodible cropland is located or at
                    such other location as is agreed to by the
                    Secretary and the owner or operator;
                      [(B) by the transfer of negotiable warehouse
                    receipts; or
                      [(C) by such other method, including the sale
                    of the commodity in commercial markets, as is
                    determined by the Secretary to be appropriate
                    to enable the owner or operator to receive
                    efficient and expeditious possession of the
                    commodity.
              [(3) Cash payments.--
                      [(A) Commodity credit corporation stocks.--If
                    stocks of a commodity acquired by the Commodity
                    Credit Corporation are not readily available to
                    make full payment in kind to the owner or
                    operator, the Secretary may substitute full or
                    partial payment in cash for payment in kind.
                      [(B) Special conservation reserve enhancement
                    program.--Payments to an owner or operator
                    under a special conservation reserve
                    enhancement program described in subsection
                    (f)(4) shall be in the form of cash only.]
      (d) Payment Schedule.--
              (1) In general.--Except as otherwise provided in this
            section, payments under this subchapter shall be made
            in cash in such amount and on such time schedule as is
            agreed on and specified in the contract.
              (2) Advance payment.--Payments under this subchapter
            may be made in advance of determination of performance.

               *       *       *       *       *       *       *

      (f) Payment Limitation for Rental Payments.--
              (1) In general.--The total amount of rental
            payments[, including rental payments made in the form
            of in-kind commodities,] received by a person or legal
            entity, directly or indirectly, under this subchapter
            for any fiscal year may not exceed $50,000.
              [(3) Other payments.--Rental payments received by an
            owner or operator shall be in addition to, and not
            affect, the total amount of payments that the owner or
            operator is otherwise eligible to receive under the
            Farm Security and Rural Investment Act of 2002.]
              [(4)] (2) Special conservation reserve enhancement
            program.--
                      (A) * * *

               *       *       *       *       *       *       *

    SEC. 1235. CONTRACTS.

      (a) * * *

               *       *       *       *       *       *       *

      (e) Early Termination by Owner or Operator.--
              (1) Early termination.--
                      (A) In general.--[The Secretary] During
                    fiscal year 2013, the Secretary shall allow a
                    participant that entered into a contract under
                    this subchapter [before January 1, 1995,] to
                    terminate the contract at any time if the
                    contract has been in effect for at least 5
                    years.

               *       *       *       *       *       *       *

              (2) Certain land excepted.--The following land shall
            not be subject to an early termination of contract
            under this subsection:
                      (A) * * *

               *       *       *       *       *       *       *

                      [(C) Other land of high environmental value
                    (including wetland), as determined by the
                    Secretary.]
                      (C) Land devoted to hardwood trees.
                      (D) Wildlife habitat, duck nesting habitat,
                    pollinator habitat, upland bird habitat buffer,
                    wildlife food plots, State acres for wildlife
                    enhancement, shallow water areas for wildlife,
                    and rare and declining habitat.
                      (E) Farmable wetland and restored wetland.
                      (F) Land that contains diversions, erosion
                    control structures, flood control structures,
                    contour grass strips, living snow fences,
                    salinity reducing vegetation, cross wind trap
                    strips, and sediment retention structures.
                      (G) Land located within a federally-
                    designated wellhead protection area.
                      (H) Land that is covered by an easement under
                    the conservation reserve program.
                      (I) Land located within an average width,
                    according to the applicable Natural Resources
                    Conservation Service field office technical
                    guide, of a perennial stream or permanent water
                    body.
              (3) Effective date.--The contract termination shall
            become effective [60 days after the date on which the
            owner or operator submits the notice required under
            paragraph (1)(C)] upon approval by the Secretary.

               *       *       *       *       *       *       *

      (f) Transition Option for Certain Farmers or Ranchers.--
              (1) [Duties of the secretary.--In the case of a
            contract modification approved in order to facilitate
            the transfer, as described subsection (c)(1)(B)(iii),
            of land to a beginning farmer] Transition to covered
            farmer or rancher.--In the case of a contract
            modification approved in order to facilitate the
            transfer of land subject to a contract from a retired
            farmer or rancher to a beginning farmer or rancher or
            socially disadvantaged farmer or rancher (in this
            subsection referred to as a ``covered farmer or
            rancher''), the Secretary shall--
                      (A) beginning on the date that is 1 year
                    before the date of termination of the
                    contract--
                              (i) allow the covered farmer or
                            rancher, in conjunction with the
                            retired or retiring owner or operator,
                            to make conservation and land
                            improvements, including preparing to
                            plant an agricultural crop; and

               *       *       *       *       *       *       *

                      (D) provide to the covered farmer or rancher
                    an opportunity to enroll in the conservation
                    stewardship program or the environmental
                    quality incentives program by not later than
                    the date on which [the farmer or rancher] the
                    covered farmer or rancher takes possession of
                    the land through ownership or lease; and
                      (E) continue to make annual payments to the
                    retired or retiring owner or operator for not
                    more than an additional 2 years after the date
                    of termination of the contract, if the retired
                    or retiring owner or operator is not a family
                    member (as defined in [section 1001A(b)(3)(B)]
                    section 1001 of this Act) of the covered farmer
                    or rancher.
              (2) Reenrollment.--The Secretary shall provide a
            covered farmer or rancher with the option to reenroll
            any applicable partial field conservation practice
            that--
                      (A) is eligible for enrollment under the
                    continuous signup [requirement of section
                    1231(h)(4)(B)] option pursuant to section
                    1234(c)(2)(A)(ii); and

               *       *       *       *       *       *       *

      (g) Final Year of Contract.--The Secretary shall not consider
    an owner or operator to be in violation of a term or condition
    of the conservation reserve contract if--
              (1) during the year prior to expiration of the
            contract, the land is enrolled in the conservation
            stewardship program; and
              (2) the activity required under the conservation
            stewardship program pursuant to such enrollment is
            consistent with this subchapter.
      (h) Land Enrolled in Agricultural Conservation Easement
    Program.--The Secretary may terminate or modify a contract
    entered into under this subchapter if eligible land that is
    subject to such contract is transferred into the agricultural
    conservation easement program under subtitle H.

    [SEC. 1235A. CONVERSION OF LAND SUBJECT TO CONTRACT TO OTHER CONSERVING
                        USES.

      [(a) Conversion to Trees.--
              [(1) In general.--The Secretary shall permit an owner
            or operator that has entered into a contract under this
            subchapter that is in effect on November 28, 1990, to
            convert areas of highly erodible cropland that are
            subject to the contract, and that are devoted to
            vegetative cover, from that use to hardwood trees,
            windbreaks, shelterbelts, or wildlife corridors.
              [(2) Terms.--
                      [(A) Extension of contract.--With respect to
                    a contract that is modified under this section
                    that provides for the planting of hardwood
                    trees, windbreaks, shelterbelts, or wildlife
                    corridors, if the original term of the contract
                    was less than 15 years, the owner or operator
                    may extend the contract to a term of not to
                    exceed 15 years.
                      [(B) Cost share assistance.--The Secretary
                    shall pay 50 percent of the cost of
                    establishing conservation measures and
                    practices authorized under this subsection for
                    which the Secretary determines the cost sharing
                    is appropriate and in the public interest.
      [(b) Conversion to Wetland.--The Secretary shall permit an
    owner or operator that has entered into a contract under this
    subchapter that is in effect on November 28, 1990, to restore
    areas of highly erodible cropland that are devoted to
    vegetative cover under the contract to wetland if--
              [(1) the areas are prior converted wetland;
              [(2) the owner or operator of the areas enters into
            an agreement to provide the Secretary with a long-term
            or permanent easement under subchapter C covering the
            areas;
              [(3) there is a high probability that the prior
            converted area can be successfully restored to wetland
            status; and
              [(4) the restoration of the areas otherwise meets the
            requirements of subchapter C.
      [(c) Limitation.--The Secretary shall not incur, through a
    conversion under this section, any additional expense on the
    acres, including the expense involved in the original
    establishment of the vegetative cover, that would result in
    cost share for costs under this section in excess of the costs
    that would have been subject to cost share for the new practice
    had that practice been the original practice.
      [(d) Condition of Contract.--An owner or operator shall as a
    condition of entering into a contract under subsection (a)
    participate in the Forest Stewardship Program established under
    section 5 of the Cooperative Forestry Assistance Act of 1978
    (16 U.S.C. 2103a).]

                    [Subchapter C--Wetlands Reserve Program

    [SEC. 1237. WETLANDS RESERVE PROGRAM.

      [(a) Establishment and Purposes.--
              [(1) Establishment.--The Secretary shall establish a
            wetlands reserve program to assist owners of eligible
            lands in restoring and protecting wetlands.
              [(2) Purposes.--The purposes of the wetlands reserve
            program are to restore, protect, or enhance wetlands on
            private or tribal lands that are eligible under
            subsections (c) and (d).
      [(b) Enrollment Conditions.--
              [(1) Maximum enrollment.--The total number of acres
            enrolled in the wetlands reserve program shall not
            exceed 3,041,200 acres.
              [(2) Methods of enrollment.--Subject to paragraph
            (3), the Secretary shall enroll acreage into the
            wetlands reserve program through the use of permanent
            easements, 30-year easements, restoration cost share
            agreements, or any combination of those options.
              [(3) Acreage owned by indian tribes.--In the case of
            acreage owned by an Indian tribe, the Secretary shall
            enroll acreage into the wetlands reserve program
            through the use of--
                      [(A) a 30-year contract (the value of which
                    shall be equivalent to the value of a 30-year
                    easement);
                      [(B) restoration cost-share agreements; or
                      [(C) any combination of the options described
                    in subparagraphs (A) and (B).
      [(c) Eligibility.--For purposes of enrolling land in the
    wetland reserve established under this subchapter during the
    1991 through 2012 fiscal years, private or tribal land shall be
    eligible to be placed into such reserve if the Secretary, in
    consultation with the Secretary of the Interior at the local
    level, determines that--
              [(1) such land maximizes wildlife benefits and
            wetland values and functions;
              [(2) such land is--
                      [(A) farmed wetland or converted wetland,
                    together with the adjacent land that is
                    functionally dependent on the wetlands, except
                    that converted wetland with respect to which
                    the conversion was not commenced prior to
                    December 23, 1985, shall not be eligible to be
                    enrolled in the program under this section; or
                      [(B) cropland or grassland that was used for
                    agricultural production prior to flooding from
                    the natural overflow of a closed basin lake or
                    pothole, as determined by the Secretary,
                    together (where practicable) with the adjacent
                    land that is functionally dependent on the
                    cropland or grassland; and
              [(3) the likelihood of the successful restoration of
            such land and the resultant wetland values merit
            inclusion of such land in the program taking into
            consideration the cost of such restoration.
      [(d) Other Eligible Land.--The Secretary may include in the
    wetland reserve established under this subchapter, together
    with land that is eligible under subsection (c), land that
    maximizes wildlife benefits and that is--
              [(1) farmed wetland and adjoining lands, enrolled in
            the conservation reserve, with the highest wetland
            functions and values, and that are likely to return to
            production after they leave the conservation reserve;
              [(2) other wetland of an owner that would not
            otherwise be eligible if the Secretary determines that
            the inclusion of such wetland in such easement would
            significantly add to the functional value of the
            easement; or
              [(3) riparian areas that link wetlands that are
            protected by easements or some other device or
            circumstance that achieves the same purpose as an
            easement.
      [(e) Ineligible Land.--The Secretary may not acquire
    easements on--
              [(1) land that contains timber stands established
            under the conservation reserve under subchapter B; or
              [(2) pasture land established to trees under the
            conservation reserve under subchapter B.
      [(f) Termination of existing contract.--The Secretary may
    terminate or modify an existing contract entered into under
    section 1231(a) if eligible land that is subject to such
    contract is transferred into the program established by this
    subchapter.

    [SEC. 1237A. EASEMENTS AND AGREEMENTS.

      [(a) In General.--To be eligible to place land into the
    wetland reserve under this subchapter, the owner of such land
    shall enter into an agreement with the Secretary--
              [(1) to grant an easement on such land to the
            Secretary;
              [(2) to implement a wetland easement conservation
            plan as provided for in this section;
              [(3) to create and record an appropriate deed
            restriction in accordance with applicable State law to
            reflect the easement agreed to under this subchapter
            with respect to such lands; and
              [(4) to provide a written statement of consent to
            such easement signed by those holding a security
            interest in the land.
      [(b) Terms of Easement.--An owner granting an easement under
    subsection (a) shall be required to provide for the restoration
    and protection of the functional values of wetland pursuant to
    a wetland easement conservation plan that--
              [(1) permits--
                      [(A) repairs, improvements, and inspections
                    on such land that are necessary to maintain
                    existing public drainage systems if such land
                    is subsequently restored to the condition
                    required by the terms of the easement; and
                      [(B) landowners to control public access on
                    the easement areas while identifying access
                    routes to be used for wetland restoration
                    activities and management and easement
                    monitoring;
              [(2) prohibits--
                      [(A) the alteration of wildlife habitat and
                    other natural features of such land, unless
                    specifically permitted by the plan;
                      [(B) the spraying of such land with chemicals
                    or the mowing of such land, except where such
                    spraying or mowing is permitted by the plan or
                    is necessary--
                              [(i) to comply with Federal or State
                            noxious weed control laws;
                              [(ii) to comply with a Federal or
                            State emergency pest treatment program;
                            or
                              [(iii) to meet habitat needs of
                            specific wildlife species; and
                      [(C) any activities to be carried out on such
                    participating landowner's or successor's land
                    that is immediately adjacent to, and
                    functionally related to, the land that is
                    subject to the easement if such activities will
                    alter, degrade, or otherwise diminish the
                    functional value of the eligible land; and
                      [(D) the adoption of any other practice that
                    would tend to defeat the purposes of this
                    subchapter, as determined by the Secretary;
              [(3) provides for the efficient and effective
            restoration of the functional values of wetlands; and
              [(4) includes such additional provisions as the
            Secretary determines are desirable to carry out this
            subchapter or to facilitate the practical
            administration thereof.
      [(c) Restoration Plans.--The development of a restoration
    plan, including any compatible use, under this section shall be
    made through the local Natural Resources Conservation Service
    representative, in consultation with the State technical
    committee.
      [(d) Compatible Uses.--Wetland reserve program lands may be
    used for compatible economic uses, including such activities as
    hunting and fishing, managed timber harvest, or periodic haying
    or grazing, if such use is specifically permitted by the plan
    and consistent with the long-term protection and enhancement of
    the wetlands resources for which the easement was established.
      [(e) Type and Length of Easement.--A conservation easement
    granted under this section--
              [(1) shall be in a recordable form; and
              [(2) shall be for 30 years, permanent, or the maximum
            duration allowed under applicable State laws.
      [(f) Compensation.--
              [(1) Determination.--Effective on the date of the
            enactment of the Food, Conservation, and Energy Act of
            2008, the Secretary shall pay as compensation for a
            conservation easement acquired under this subchapter
            the lowest of--
                      [(A) the fair market value of the land, as
                    determined by the Secretary, using the Uniform
                    Standards of Professional Appraisal Practices
                    or an area-wide market analysis or survey;
                      [(B) the amount corresponding to a
                    geographical cap, as determined by the
                    Secretary in regulations; or
                      [(C) the offer made by the landowner.
              [(2) Form of payment.--Compensation for an easement
            shall be provided by the Secretary in the form of a
            cash payment, in an amount determined under paragraph
            (1) and specified in the easement agreement.
              [(3) Payment schedule for easements.--
                      [(A) Easements valued at $500,000 or less.--
                    For easements valued at $500,000 or less, the
                    Secretary may provide easement payments in not
                    more than 30 annual payments.
                      [(B) Easements in excess of $500,000.--For
                    easements valued at more than $500,000, the
                    Secretary may provide easement payments in at
                    least 5, but not more than 30 annual payments,
                    except that, if the Secretary determines it
                    would further the purposes of the program, the
                    Secretary may make a lump sum payment for such
                    an easement.
              [(4) Restoration agreement payment limitation.--
            Payments made to a person or legal entity, directly or
            indirectly, pursuant to a restoration cost-share
            agreement under this subchapter may not exceed, in the
            aggregate, $50,000 per year.
              [(5) Enrollment procedure.--Lands may be enrolled
            under this subchapter through the submission of bids
            under a procedure established by the Secretary.
      [(g) Violation.--On the violation of the terms or conditions
    of the easement or related agreement entered into under
    subsection (a), the easement shall remain in force and the
    Secretary may require the owner to refund all or part of any
    payments received by the owner under this subchapter, together
    with interest thereon as determined appropriate by the
    Secretary.
      [(h) Wetlands Reserve Enhancement Program.--
              [(1) Program authorized.--The Secretary may enter
            into 1 or more agreements with a State (including a
            political subdivision or agency of a State),
            nongovernmental organization, or Indian tribe to carry
            out a special wetlands reserve enhancement program that
            the Secretary determines would advance the purposes of
            this subchapter.
              [(2) Reserved rights pilot program.--
                      [(A) Reservation of grazing rights.--As part
                    of the wetlands reserve enhancement program,
                    the Secretary shall carry out a pilot program
                    for land in which a landowner may reserve
                    grazing rights in the warranty easement deed
                    restriction if the Secretary determines that
                    the reservation and use of the grazing rights--
                              [(i) is compatible with the land
                            subject to the easement;
                              [(ii) is consistent with the long-
                            term wetland protection and enhancement
                            goals for which the easement was
                            established; and
                              [(iii) complies with a conservation
                            plan.
                      [(B) Duration.--The pilot program established
                    under this paragraph shall terminate on
                    September 30, 2012.

    [SEC. 1237B. DUTIES OF OWNERS.

      [Under the terms of an agreement entered into under this
    subchapter, an owner and operator of the land that is subject
    to an easement under this subchapter shall agree to comply with
    the terms of the easement and related agreements and shall
    agree to the permanent retirement of any existing cropland base
    and allotment history for such land under any program
    administered by the Secretary.

    [SEC. 1237C. DUTIES OF THE SECRETARY.

      [(a) In General.--In return for the granting of an easement
    by an owner under this subchapter, the Secretary shall--
              [(1) share the cost of carrying out the establishment
            of conservation measures and practices, and the
            protection of the wetland functions and values,
            including necessary maintenance activities, as set
            forth in the plan to the extent that the Secretary
            determines that cost sharing is appropriate and in the
            public interest; and
              [(2) provide necessary technical assistance to assist
            owners in complying with the terms and conditions of
            the easement and the plan.
      [(b) Cost-Share and Technical Assistance.--
              [(1) Easements.--Effective beginning October 1, 1996,
            in making cost-share payments under subsection (a)(1),
            the Secretary shall--
                      [(A) in the case of a permanent easement, pay
                    the owner an amount that is not less than 75
                    percent, but not more than 100 percent, of the
                    eligible costs; and
                      [(B) in the case of a 30-year easement, pay
                    the owner an amount that is not less than 50
                    percent, but not more than 75 percent, of the
                    eligible costs.
              [(2) Restoration cost-share agreements.--In making
            cost-share payments in connection with a restoration
            cost-share agreement entered into under section
            1237A(h), the Secretary shall pay the owner an amount
            that is not less than 50 percent, but not more than 75
            percent, of the eligible costs.
              [(3) Technical assistance.--The Secretary shall
            provide owners with technical assistance to assist
            owners in complying with the terms of easements and
            restoration cost-share agreements.
      [(c) Ranking of Offers.--
              [(1) Conservation benefits and funding
            considerations.--When evaluating offers from
            landowners, the Secretary may consider--
                      [(A) the conservation benefits of obtaining
                    an easement or other interest in the land;
                      [(B) the cost-effectiveness of each easement
                    or other interest in eligible land, so as to
                    maximize the environmental benefits per dollar
                    expended; and
                      [(C) whether the landowner or another person
                    is offering to contribute financially to the
                    cost of the easement or other interest in the
                    land to leverage Federal funds.
              [(2) Additional considerations.--In determining the
            acceptability of easement offers, the Secretary may
            take into consideration--
                      [(A) the extent to which the purposes of the
                    easement program would be achieved on the land;
                      [(B) the productivity of the land; and
                      [(C) the on-farm and off-farm environmental
                    threats if the land is used for the production
                    of agricultural commodities.
      [(d) Easement Priority.--In carrying out this subchapter, to
    the extent practicable, taking into consideration costs and
    future agricultural and food needs, the Secretary shall give
    priority to obtaining permanent conservation easements before
    shorter term conservation easements and, in consultation with
    the Secretary of the Interior, shall place priority on
    acquiring easements based on the value of the easement for
    protecting and enhancing habitat for migratory birds and other
    wildlife.

    [SEC. 1237D. PAYMENTS.

      [(a) Time of Payment.--The Secretary shall provide payment
    for obligations incurred by the Secretary under this
    subchapter--
              [(1) with respect to any cost sharing obligation as
            soon as possible after the obligation is incurred; and
              [(2) with respect to any annual easement payment
            obligation incurred by the Secretary as soon as
            possible after October 1 of each calendar year.
      [(b) Payments to Others.--If an owner who is entitled to a
    payment under this subchapter dies, becomes incompetent, is
    otherwise unable to receive such payment, or is succeeded by
    another person who renders or completes the required
    performance, the Secretary shall make such payment, in
    accordance with regulations prescribed by the Secretary and
    without regard to any other provision of law, in such manner as
    the Secretary determines is fair and reasonable in light of all
    of the circumstances.
      [(c) Payment Limitation.--
              [(1) In general.--The total amount of payments that a
            person or legal entity may receive, directly or
            indirectly, under this subchapter for any year may not
            exceed $50,000, except such limitation shall not apply
            with respect to payments for perpetual or 30-year
            easements or under 30-year contracts.
              [(2) Regulations.--The Secretary shall issue
            regulations prescribing such rules as the Secretary
            determines necessary to ensure a fair and reasonable
            application of the limitation contained in this
            subsection.
              [(3) Other payments.--Easement payments received by
            an owner shall be in addition to, and not affect, the
            total amount of payments that such owner is otherwise
            eligible to receive under this Act, the Food,
            Agriculture, Conservation, and Trade Act of 1990, or
            the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).
      [(d) Exemption From Automatic Sequester.--Notwithstanding any
    other provision of law, no order issued under section 252 of
    the Balanced Budget and Emergency Deficit Control Act of 1985,
    as amended (2 U.S.C. 902) shall affect any payment under this
    subchapter.

    [SEC. 1237E. CHANGES IN OWNERSHIP; AGREEMENT MODIFICATION; TERMINATION.

      [(a) Limitations.--No easement shall be created under this
    subchapter on land that has changed ownership during the
    preceding 7-year period unless--
              [(1) the new ownership was acquired by will or
            succession as a result of the death of the previous
            owner;
              [(2)(A) the ownership change occurred because of
            foreclosure on the land; and
              [(B) immediately before the foreclosure, the owner of
            the land exercises a right of redemption from the
            mortgage holder in accordance with State law; or
              [(3) the Secretary determines that the land was
            acquired under circumstances that give adequate
            assurances that such land was not acquired for the
            purposes of placing it in the program established by
            this subchapter.
      [(b) Modification; Termination.--
              [(1) Modification.--The Secretary may modify an
            easement acquired from, or a related agreement with, an
            owner under this subchapter if--
                      [(A) the current owner agrees to such
                    modification; and
                      [(B) the Secretary determines that such
                    modification is desirable--
                              [(i) to carry out this subchapter;
                              [(ii) to facilitate the practical
                            administration of this subchapter; or
                              [(iii) to achieve such other goals as
                            the Secretary determines are
                            appropriate and consistent with this
                            subchapter.
              [(2) Termination.--
                      [(A) In general.--The Secretary may terminate
                    an easement created with an owner under this
                    subchapter if--
                              [(i) the current owner agrees to such
                            termination; and
                              [(ii) the Secretary determines that
                            such termination would be in the public
                            interest.
                      [(B) Notice.--At least 90 days before taking
                    any action to terminate under paragraph (A) all
                    easements entered into under this subchapter,
                    the Secretary shall provide written notice of
                    such action to the Committee on Agriculture of
                    the House of Representatives and the Committee
                    on Agriculture, Nutrition, and Forestry of the
                    Senate.

    [SEC. 1237F. ADMINISTRATION, AND FUNDING.

      [(a) Delegation of Easement Administration.--The Secretary
    may delegate any of the easement management, monitoring, and
    enforcement responsibilities of the Secretary to Federal or
    State agencies that have the appropriate authority, expertise,
    and resources necessary to carry out such delegated
    responsibilities.
      [(b) Regulations.--Not later than 180 days after the date of
    enactment of this subchapter, the Secretary shall issue such
    regulations as are necessary to carry out this subchapter.
      [(c) Prairie Pothole Region Survey and Reallocation.--
              [(1) Survey.--The Secretary shall conduct a survey
            during fiscal year 2008 and each subsequent fiscal year
            for the purpose of determining interest and allocations
            for the Prairie Pothole Region to enroll eligible land
            described in section 1237(c)(2)(B).
              [(2) Annual adjustment.--The Secretary shall make an
            adjustment to the allocation for an interested State
            for a fiscal year, based on the results of the survey
            conducted under paragraph (1) for the State during the
            previous fiscal year.]

               *       *       *       *       *       *       *

    CHAPTER 2--CONSERVATION SECURITY [AND FARMLAND PROTECTION]

               *       *       *       *       *       *       *

                [Subchapter B--Conservation Stewardship Program

    [SEC. 1238D. DEFINITIONS.

      [In this subchapter:
              [(1) Conservation activities.--
                      [(A) In general.--The term ``conservation
                    activities'' means conservation systems,
                    practices, or management measures that are
                    designed to address a resource concern.
                      [(B) Inclusions.--The term ``conservation
                    activities'' includes--
                              [(i) structural measures, vegetative
                            measures, and land management measures,
                            including agriculture drainage
                            management systems, as determined by
                            the Secretary; and
                              [(ii) planning needed to address a
                            resource concern.
              [(2) Conservation measurement tools.--The term
            ``conservation measurement tools'' means procedures to
            estimate the level of environmental benefit to be
            achieved by a producer in implementing conservation
            activities, including indices or other measures
            developed by the Secretary.
              [(3) Conservation stewardship plan.--The term
            ``conservation stewardship plan'' means a plan that--
                      [(A) identifies and inventories resource
                    concerns;
                      [(B) establishes benchmark data and
                    conservation objectives;
                      [(C) describes conservation activities to be
                    implemented, managed, or improved; and
                      [(D) includes a schedule and evaluation plan
                    for the planning, installation, and management
                    of the new and existing conservation
                    activities.
              [(4) Priority resource concern.--The term ``priority
            resource concern'' means a resource concern that is
            identified at the State level, in consultation with the
            State Technical Committee, as a priority for a
            particular watershed or area of the State.
              [(5) Program.--The term ``program'' means the
            conservation stewardship program established by this
            subchapter.
              [(6) Resource concern.--The term ``resource concern''
            means a specific natural resource impairment or
            problem, as determined by the Secretary, that--
                      [(A) represents a significant concern in a
                    State or region; and
                      [(B) is likely to be addressed successfully
                    through the implementation of conservation
                    activities by producers on land eligible for
                    enrollment in the program.
              [(7) Stewardship threshold.--The term ``stewardship
            threshold'' means the level of natural resource
            conservation and environmental management required, as
            determined by the Secretary using conservation
            measurement tools, to improve and conserve the quality
            and condition of a resource concern.

    [SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM.

      [(a) Establishment and Purpose.--During each of fiscal years
    2009 through 2014, the Secretary shall carry out a conservation
    stewardship program to encourage producers to address resource
    concerns in a comprehensive manner--
              [(1) by undertaking additional conservation
            activities; and
              [(2) by improving, maintaining and managing existing
            conservation activities.
      [(b) Eligible Land.--
              [(1) In general.--Except as provided in subsection
            (c), the following land is eligible for enrollment in
            the program:
                      [(A) Private agricultural land (including
                    cropland, grassland, prairie land, improved
                    pastureland, rangeland, and land used for agro-
                    forestry).
                      [(B) Agricultural land under the jurisdiction
                    of an Indian tribe.
                      [(C) Forested land that is an incidental part
                    of an agricultural operation.
                      [(D) Other private agricultural land
                    (including cropped woodland, marshes, and
                    agricultural land used for the production of
                    livestock) on which resource concerns related
                    to agricultural production could be addressed
                    by enrolling the land in the program, as
                    determined by the Secretary.
              [(2) Special rule for nonindustrial private forest
            land.--Nonindustrial private forest land is eligible
            for enrollment in the program, except that not more
            than 10 percent of the annual acres enrolled nationally
            in any fiscal year may be nonindustrial private forest
            land.
              [(3) Agricultural operation.--Eligible land shall
            include all acres of an agricultural operation of a
            producer, whether or not contiguous, that are under the
            effective control of the producer at the time the
            producer enters into a stewardship contract, and is
            operated by the producer with equipment, labor,
            management, and production or cultivation practices
            that are substantially separate from other agricultural
            operations, as determined by the Secretary.
      [(c) Exclusions.--
              [(1) Land enrolled in other conservation programs.--
            Subject to paragraph (2), the following land is not be
            eligible for enrollment in the program:
                      [(A) Land enrolled in the conservation
                    reserve program.
                      [(B) Land enrolled in the wetlands reserve
                    program.
                      [(C) Land enrolled in the grassland reserve
                    program.
              [(2) Conversion to cropland.--Land used for crop
            production after the date of enactment of the Food,
            Conservation, and Energy Act of 2008 that had not been
            planted, considered to be planted, or devoted to crop
            production for at least 4 of the 6 years preceding that
            date shall not be the basis for any payment under the
            program, unless the land does not meet the requirement
            because--
                      [(A) the land had previously been enrolled in
                    the conservation reserve program;
                      [(B) the land has been maintained using long-
                    term crop rotation practices, as determined by
                    the Secretary; or
                      [(C) the land is incidental land needed for
                    efficient operation of the farm or ranch, as
                    determined by the Secretary.

    [SEC. 1238F. STEWARDSHIP CONTRACTS.

      [(a) Submission of Contract Offers.--To be eligible to
    participate in the conservation stewardship program, a producer
    shall submit to the Secretary for approval a contract offer
    that--
              [(1) demonstrates to the satisfaction of the
            Secretary that the producer, at the time of the
            contract offer, is meeting the stewardship threshold
            for at least one resource concern; and
              [(2) would, at a minimum, meet or exceed the
            stewardship threshold for at least 1 priority resource
            concern by the end of the stewardship contract by--
                      [(A) installing and adopting additional
                    conservation activities; and
                      [(B) improving, maintaining, and managing
                    conservation activities in place at the
                    operation of the producer at the time the
                    contract offer is accepted by the Secretary.
      [(b) Evaluation of Contract Offers.--
              [(1) Ranking of applications.--In evaluating contract
            offers made by producers to enter into contracts under
            the program, the Secretary shall rank applications
            based on--
                      [(A) the level of conservation treatment on
                    all applicable priority resource concerns at
                    the time of application, based to the maximum
                    extent practicable on conservation measurement
                    tools;
                      [(B) the degree to which the proposed
                    conservation treatment on applicable priority
                    resource concerns effectively increases
                    conservation performance, based to the maximum
                    extent possible on conservation measurement
                    tools;
                      [(C) the number of applicable priority
                    resource concerns proposed to be treated to
                    meet or exceed the stewardship threshold by the
                    end of the contract;
                      [(D) the extent to which other resource
                    concerns, in addition to priority resource
                    concerns, will be addressed to meet or exceed
                    the stewardship threshold by the end of the
                    contract period; and
                      [(E) the extent to which the actual and
                    anticipated environmental benefits from the
                    contract are provided at the least cost
                    relative to other similarly beneficial contract
                    offers.
              [(2) Prohibition.--The Secretary may not assign a
            higher priority to any application because the
            applicant is willing to accept a lower payment than the
            applicant would otherwise be eligible to receive.
              [(3) Additional criteria.--The Secretary may develop
            and use such additional criteria for evaluating
            applications to enroll in the program that the
            Secretary determines are necessary to ensure that
            national, State, and local conservation priorities are
            effectively addressed.
      [(c) Entering Into Contracts.--After a determination that a
    producer is eligible for the program under subsection (a), and
    a determination that the contract offer ranks sufficiently high
    under the evaluation criteria under subsection (b), the
    Secretary shall enter into a conservation stewardship contract
    with the producer to enroll the land to be covered by the
    contract.
      [(d) Contract Provisions.--
              [(1) Term.--A conservation stewardship contract shall
            be for a term of 5 years.
              [(2) Provisions.--The conservation stewardship
            contract of a producer shall--
                      [(A) state the amount of the payment the
                    Secretary agrees to make to the producer for
                    each year of the conservation stewardship
                    contract under section 1238G(e);
                      [(B) require the producer--
                              [(i) to implement during the term of
                            the conservation stewardship contract
                            the conservation stewardship plan
                            approved by the Secretary;
                              [(ii) to maintain, and make available
                            to the Secretary at such times as the
                            Secretary may request, appropriate
                            records showing the effective and
                            timely implementation of the
                            conservation stewardship contract; and
                              [(iii) not to engage in any activity
                            during the term of the conservation
                            stewardship contract on the eligible
                            land covered by the contract that would
                            interfere with the purposes of the
                            conservation stewardship contract;
                      [(C) permit all economic uses of the land
                    that--
                              [(i) maintain the agricultural nature
                            of the land; and
                              [(ii) are consistent with the
                            conservation purposes of the
                            conservation stewardship contract;
                      [(D) include a provision to ensure that a
                    producer shall not be considered in violation
                    of the contract for failure to comply with the
                    contract due to circumstances beyond the
                    control of the producer, including a disaster
                    or related condition, as determined by the
                    Secretary; and
                      [(E) include such other provisions as the
                    Secretary determines necessary to ensure the
                    purposes of the program are achieved.
      [(e) Contract Renewal.--At the end of an initial conservation
    stewardship contract of a producer, the Secretary may allow the
    producer to renew the contract for one additional five-year
    period if the producer--
              [(1) demonstrates compliance with the terms of the
            existing contract; and
              [(2) agrees to adopt new conservation activities, as
            determined by the Secretary.
      [(f) Modification.--The Secretary may allow a producer to
    modify a stewardship contract if the Secretary determines that
    the modification is consistent with achieving the purposes of
    the program.
      [(g) Contract Termination.--
              [(1) Voluntary termination.--A producer may terminate
            a conservation stewardship contract if the Secretary
            determines that termination would not defeat the
            purposes of the program.
              [(2) Involuntary termination.--The Secretary may
            terminate a contract under this subchapter if the
            Secretary determines that the producer violated the
            contract.
              [(3) Repayment.--If a contract is terminated, the
            Secretary may, consistent with the purposes of the
            program--
                      [(A) allow the producer to retain payments
                    already received under the contract; or
                      [(B) require repayment, in whole or in part,
                    of payments already received and assess
                    liquidated damages.
              [(4) Change of interest in land subject to a
            contract.--
                      [(A) In general.--Except as provided in
                    paragraph (B), a change in the interest of a
                    producer in land covered by a contract under
                    this chapter shall result in the termination of
                    the contract with regard to that land.
                      [(B) Transfer of duties and rights.--
                    Subparagraph (A) shall not apply if--
                              [(i) within a reasonable period of
                            time (as determined by the Secretary)
                            after the date of the change in the
                            interest in land covered by a contract
                            under the program, the transferee of
                            the land provides written notice to the
                            Secretary that all duties and rights
                            under the contract have been
                            transferred to, and assumed by, the
                            transferee; and
                              [(ii) the transferee meets the
                            eligibility requirements of the
                            program.
      [(h) Coordination With Organic Certification.--The Secretary
    shall establish a transparent means by which producers may
    initiate organic certification under the Organic Foods
    Production Act of 1990 (7 U.S.C. 6501 et. seq.) while
    participating in a contract under this subchapter.
      [(i) On-Farm Research and Demonstration or Pilot Testing.--
    The Secretary may approve a contract offer under this
    subchapter that includes--
              [(1) on-farm conservation research and demonstration
            activities; and
              [(2) pilot testing of new technologies or innovative
            conservation practices.

    [SEC. 1238G. DUTIES OF THE SECRETARY.

      [(a) In General.--To achieve the conservation goals of a
    contract under the conservation stewardship program, the
    Secretary shall--
              [(1) make the program available to eligible producers
            on a continuous enrollment basis with 1 or more ranking
            periods, one of which shall occur in the first quarter
            of each fiscal year;
              [(2) identify not less than 3 nor more than 5
            priority resource concerns in a particular watershed or
            other appropriate region or area within a State; and
              [(3) develop reliable conservation measurement tools
            for purposes of carrying out the program.
      [(b) Allocation to States.--The Secretary shall allocate
    acres to States for enrollment, based--
              [(1) primarily on each State's proportion of eligible
            acres under section 1238E(b)(1) to the total number of
            eligible acres in all States; and
              [(2) also on consideration of--
                      [(A) the extent and magnitude of the
                    conservation needs associated with agricultural
                    production in each State;
                      [(B) the degree to which implementation of
                    the program in the State is, or will be,
                    effective in helping producers address those
                    needs; and
                      [(C) other considerations to achieve
                    equitable geographic distribution of funds, as
                    determined by the Secretary.
      [(c) Specialty Crop and Organic Producers.--The Secretary
    shall ensure that outreach and technical assistance are
    available, and program specifications are appropriate to enable
    specialty crop and organic producers to participate in the
    program.
      [(d) Acreage Enrollment Limitation.--During the period
    beginning on October 1, 2008, and ending on September 30, 2017,
    the Secretary shall, to the maximum extent practicable--
              [(1) enroll in the program an additional 12,769,000
            acres for each fiscal year; and
              [(2) manage the program to achieve a national average
            rate of $18 per acre, which shall include the costs of
            all financial assistance, technical assistance, and any
            other expenses associated with enrollment or
            participation in the program.
      [(e) Conservation Stewardship Payments.--
              [(1) Availability of payments.--The Secretary shall
            provide a payment under the program to compensate the
            producer for--
                      [(A) installing and adopting additional
                    conservation activities; and
                      [(B) improving, maintaining, and managing
                    conservation activities in place at the
                    operation of the producer at the time the
                    contract offer is accepted by the Secretary.
              [(2) Payment amount.--The amount of the conservation
            stewardship payment shall be determined by the
            Secretary and based, to the maximum extent practicable,
            on the following factors:
                      [(A) Costs incurred by the producer
                    associated with planning, design, materials,
                    installation, labor, management, maintenance,
                    or training.
                      [(B) Income forgone by the producer.
                      [(C) Expected environmental benefits as
                    determined by conservation measurement tools.
              [(3) Exclusions.--A payment to a producer under this
            subsection shall not be provided for--
                      [(A) the design, construction, or maintenance
                    of animal waste storage or treatment facilities
                    or associated waste transport or transfer
                    devices for animal feeding operations; or
                      [(B) conservation activities for which there
                    is no cost incurred or income forgone to the
                    producer.
              [(4) Timing of payments.--
                      [(A) In general.--The Secretary shall make
                    payments as soon as practicable after October 1
                    of each fiscal year for activities carried out
                    in the previous fiscal year.
                      [(B) Additional activities.--The Secretary
                    shall make payments to compensate producers for
                    installation of additional practices at the
                    time at which the practices are installed and
                    adopted.
      [(f) Supplemental Payments for Resource-Conserving Crop
    Rotations.--
              [(1) Availability of payments.--The Secretary shall
            provide additional payments to producers that, in
            participating in the program, agree to adopt resource-
            conserving crop rotations to achieve beneficial crop
            rotations as appropriate for the land of the producers.
              [(2) Beneficial crop rotations.--The Secretary shall
            determine whether a resource-conserving crop rotation
            is a beneficial crop rotation eligible for additional
            payments under paragraph (1), based on whether the
            resource-conserving crop rotation is designed to
            provide natural resource conservation and production
            benefits.
              [(3) Eligibility.--To be eligible to receive a
            payment described in paragraph (1), a producer shall
            agree to adopt and maintain beneficial resource-
            conserving crop rotations for the term of the contract.
              [(4) Resource-conserving crop rotation.--In this
            subsection, the term ``resource-conserving crop
            rotation'' means a crop rotation that--
                      [(A) includes at least 1 resource conserving
                    crop (as defined by the Secretary);
                      [(B) reduces erosion;
                      [(C) improves soil fertility and tilth;
                      [(D) interrupts pest cycles; and
                      [(E) in applicable areas, reduces depletion
                    of soil moisture or otherwise reduces the need
                    for irrigation.
      [(g) Payment Limitations.--A person or legal entity may not
    receive, directly or indirectly, payments under this subchapter
    that, in the aggregate, exceed $200,000 for all contracts
    entered into during any 5-year period, excluding funding
    arrangements with federally recognized Indian tribes or Alaska
    Native corporations, regardless of the number of contracts
    entered into under the program by the person or entity.
      [(h) Regulations.--The Secretary shall promulgate regulations
    that--
              [(1) prescribe such other rules as the Secretary
            determines to be necessary to ensure a fair and
            reasonable application of the limitations established
            under subsection (g); and
              [(2) otherwise enable the Secretary to carry out the
            program.
      [(i) Data.--The Secretary shall maintain detailed and
    segmented data on contracts and payments under the program to
    allow for quantification of the amount of payments made for--
              [(1) the installation and adoption of additional
            conservation activities and improvements to
            conservation activities in place on the operation of a
            producer at the time the conservation stewardship offer
            is accepted by the Secretary;
              [(2) participation in research, demonstration, and
            pilot projects; and
              [(3) the development and periodic assessment and
            evaluation of conservation plans developed under this
            subchapter.

                   [Subchapter C--Farmland Protection Program

    [SEC. 1238H. DEFINITIONS.

      [In this subchapter:
              [(1) Eligible entity.--The term ``eligible entity''
            means--
                      [(A) any agency of any State or local
                    government or an Indian tribe (including a
                    farmland protection board or land resource
                    council established under State law); or
                      [(B) any organization that--
                              [(i) is organized for, and at all
                            times since the formation of the
                            organization has been operated
                            principally for, 1 or more of the
                            conservation purposes specified in
                            clause (i), (ii), (iii), or (iv) of
                            section 170(h)(4)(A) of the Internal
                            Revenue Code of 1986;
                              [(ii) is an organization described in
                            section 501(c)(3) of that Code that is
                            exempt from taxation under section
                            501(a) of that Code; and
                              [(iii) is--
                                      [(I) described in paragraph
                                    (1) or (2) of section 509(a) of
                                    that Code; or
                                      [(II) described in section
                                    509(a)(3), and is controlled by
                                    an organization described in
                                    section 509(a)(2), of that
                                    Code.
              [(2) Eligible land.--
                      [(A) In general.--The term ``eligible land''
                    means land on a farm or ranch that is subject
                    to a pending offer for purchase from an
                    eligible entity and--
                              [(i) has prime, unique, or other
                            productive soil;
                              [(ii) contains historical or
                            archaeological resources; or
                              [(iii) the protection of which will
                            further a State or local policy
                            consistent with the purposes of the
                            program.
                      [(B) Inclusions.--The term ``eligible land''
                    includes, on a farm or ranch--
                              [(i) cropland;
                              [(ii) rangeland;
                              [(iii) grassland;
                              [(iv) pasture land;
                              [(v) forest land that--
                                      [(I) contributes to the
                                    economic viability of an
                                    agricultural operation; or
                                      [(II) serves as a buffer to
                                    protect an agricultural
                                    operation from development; and
                              [(vi) land that is incidental to land
                            described in clauses (i) through (v),
                            if such land is necessary for the
                            efficient administration of a
                            conservation easement, as determined by
                            the Secretary.
              [(3) Indian tribe.--The term ``Indian tribe'' has the
            meaning given the term in section 4 of the Indian Self-
            Determination and Education Assistance Act (25 U.S.C.
            450b).
              [(4) Program.--The term ``program'' means the
            farmland protection program established under section
            1238I(a).

    [SEC. 1238I. FARMLAND PROTECTION PROGRAM.

      [(a) Establishment.--The Secretary shall establish and carry
    out a farmland protection program under which the Secretary
    shall facilitate and provide funding for the purchase of
    conservation easements or other interests in eligible land.
      [(b) Purpose.--The purpose of the program is to protect the
    agricultural use and related conservation values of eligible
    land by limiting nonagricultural uses of that land.
      [(c) Cost-Share Assistance.--
              [(1) Provision of assistance.--The Secretary shall
            provide cost-share assistance to eligible entities for
            purchasing a conservation easement or other interest in
            eligible land.
              [(2) Federal share.--The share of the cost provided
            by the Secretary for purchasing a conservation easement
            or other interest in eligible land shall not exceed 50
            percent of the appraised fair market value of the
            conservation easement or other interest in eligible
            land.
              [(3) Non-federal share.--
                      [(A) Share provided by eligible entity.--The
                    eligible entity shall provide a share of the
                    cost of purchasing a conservation easement or
                    other interest in eligible land in an amount
                    that is not less than 25 percent of the
                    acquisition purchase price.
                      [(B) Landowner contribution.--As part of the
                    non-Federal share of the cost of purchasing a
                    conservation easement or other interest in
                    eligible land, an eligible entity may include a
                    charitable donation or qualified conservation
                    contribution (as defined by section 170(h) of
                    the Internal Revenue Code of 1986) from the
                    private landowner from which the conservation
                    easement or other interest in land will be
                    purchased.
      [(d) Determination of Fair Market Value.--Effective on the
    date of enactment of the Food, Conservation, and Energy Act of
    2008, the fair market value of the conservation easement or
    other interest in eligible land shall be determined on the
    basis of an appraisal using an industry approved method,
    selected by the eligible entity and approved by the Secretary.
      [(e) Bidding Down Prohibited.--If the Secretary determines
    that 2 or more applications for cost-share assistance are
    comparable in achieving the purpose of the program, the
    Secretary shall not assign a higher priority to any 1 of those
    applications solely on the basis of lesser cost to the program.
      [(f) Condition on Assistance.--
              [(1) Conservation plan.--Any highly erodible cropland
            for which a conservation easement or other interest is
            purchased using cost-share assistance provided under
            the program shall be subject to a conservation plan
            that requires, at the option of the Secretary, the
            conversion of the cropland to less intensive uses.
              [(2) Contingent right of enforcement.--The Secretary
            shall require the inclusion of a contingent right of
            enforcement for the Secretary in the terms of a
            conservation easement or other interest in eligible
            land that is purchased using cost-share assistance
            provided under the program.
      [(g) Agreements With Eligible Entities.--
              [(1) In general.--The Secretary shall enter into
            agreements with eligible entities to stipulate the
            terms and conditions under which the eligible entity is
            permitted to use cost-share assistance provided under
            subsection (c).
              [(2) Length of agreements.--An agreement under this
            subsection shall be for a term that is--
                      [(A) in the case of an eligible entity
                    certified under the process described in
                    subsection (h), a minimum of five years; and
                      [(B) for all other eligible entities, at
                    least three, but not more than five years.
              [(3) Substitution of qualified projects.--An
            agreement shall allow, upon mutual agreement of the
            parties, substitution of qualified projects that are
            identified at the time of the proposed substitution.
              [(4) Minimum requirements.--An eligible entity shall
            be authorized to use its own terms and conditions, as
            approved by the Secretary, for conservation easements
            and other purchases of interests in land, so long as
            such terms and conditions--
                      [(A) are consistent with the purposes of the
                    program;
                      [(B) permit effective enforcement of the
                    conservation purposes of such easements or
                    other interests; and
                      [(C) include a limit on the impervious
                    surfaces to be allowed that is consistent with
                    the agricultural activities to be conducted.
              [(5) Effect of violation.--If a violation occurs of a
            term or condition of an agreement entered into under
            this subsection--
                      [(A) the agreement shall remain in force; and
                      [(B) the Secretary may require the eligible
                    entity to refund all or part of any payments
                    received by the entity under the program, with
                    interest on the payments as determined
                    appropriate by the Secretary.
      [(h) Certification of Eligible Entities.--
              [(1) Certification process.--The Secretary shall
            establish a process under which the Secretary may--
                      [(A) directly certify eligible entities that
                    meet established criteria;
                      [(B) enter into long-term agreements with
                    certified entities, as authorized by subsection
                    (g)(2)(A); and
                      [(C) accept proposals for cost-share
                    assistance to certified entities for the
                    purchase of conservation easements or other
                    interests in eligible land throughout the
                    duration of such agreements.
              [(2) Certification criteria.--In order to be
            certified, an eligible entity shall demonstrate to the
            Secretary that the entity will maintain, at a minimum,
            for the duration of the agreement--
                      [(A) a plan for administering easements that
                    is consistent with the purpose of this
                    subchapter;
                      [(B) the capacity and resources to monitor
                    and enforce conservation easements or other
                    interests in land; and
                      [(C) policies and procedures to ensure--
                              [(i) the long-term integrity of
                            conservation easements or other
                            interests in eligible land;
                              [(ii) timely completion of
                            acquisitions of easements or other
                            interests in eligible land; and
                              [(iii) timely and complete evaluation
                            and reporting to the Secretary on the
                            use of funds provided by the Secretary
                            under the program.
              [(3) Review and revision.--
                      [(A) Review.--The Secretary shall conduct a
                    review of eligible entities certified under
                    paragraph (1) every three years to ensure that
                    such entities are meeting the criteria
                    established under paragraph (2).
                      [(B) Revocation.--If the Secretary finds that
                    the certified entity no longer meets the
                    criteria established under paragraph (2), the
                    Secretary may--
                              [(i) allow the certified entity a
                            specified period of time, at a minimum
                            180 days, in which to take such actions
                            as may be necessary to meet the
                            criteria; and
                              [(ii) revoke the certification of the
                            entity, if after the specified period
                            of time, the certified entity does not
                            meet the criteria established in
                            paragraph (2).

    [SEC. 1238J. FARM VIABILITY PROGRAM.

      [(a) In General.--The Secretary may provide to eligible
    entities identified by the Secretary grants for use in carrying
    out farm viability programs developed by the eligible entities
    and approved by the Secretary.
      [(b) Authorization of Appropriations.--There are authorized
    to be appropriated to the Secretary to carry out this section
    such sums as are necessary for each of fiscal years 2002
    through 2012.

                    [Subchapter D--Grassland Reserve Program

    [SEC. 1238N. GRASSLAND RESERVE PROGRAM.

      [(a) Establishment and Purpose.--The Secretary shall
    establish a grassland reserve program (referred to in this
    subchapter as the ``program'') for the purpose of assisting
    owners and operators in protecting grazing uses and related
    conservation values by restoring and conserving eligible land
    through rental contracts, easements, and restoration
    agreements.
      [(b) Enrollment of Acreage.--
              [(1) Acreage enrolled.--The Secretary shall enroll an
            additional 1,220,000 acres of eligible land in the
            program during fiscal years 2009 through 2012.
              [(2) Methods of enrollment.--The Secretary shall
            enroll eligible land in the program through the use of;
                      [(A) a 10-year, 15-year, or 20-year rental
                    contract;
                      [(B) a permanent easement; or
                      [(C) in a State that imposes a maximum
                    duration for easements, an easement for the
                    maximum duration allowed under the law of that
                    State.
              [(3) Limitation.--Of the total amount of funds
            expended under the program to acquire rental contracts
            and easements described in paragraph (2), the Secretary
            shall use, to the extent practicable--
                      [(A) 40 percent for rental contacts; and
                      [(B) 60 percent for easements.
              [(4) Enrollment of conservation reserve land.--
                      [(A) Priority.--Upon expiration of a contract
                    under subchapter B of chapter 1 of this
                    subtitle, the Secretary shall give priority for
                    enrollment in the program to land previously
                    enrolled in the conservation reserve program
                    if--
                              [(i) the land is eligible land, as
                            defined in subsection (c); and
                              [(ii) the Secretary determines that
                            the land is of high ecological value
                            and under significant threat of
                            conversion to uses other than grazing.
                      [(B) Maximum enrollment.--The number of acres
                    of land enrolled under the priority described
                    in subparagraph (A) in a calendar year shall
                    not exceed 10 percent of the total number of
                    acres enrolled in the program in that calendar
                    year.
      [(c) Eligible Land Defined.--For purposes of the program, the
    term ``eligible land'' means private or tribal land that--
              [(1) is grassland, land that contains forbs, or
            shrubland (including improved rangeland and
            pastureland) for which grazing is the predominant use;
              [(2) is located in an area that has been historically
            dominated by grassland, forbs, or shrubland, and the
            land--
                      [(A) could provide habitat for animal or
                    plant populations of significant ecological
                    value if the land--
                              [(i) is retained in its current use;
                            or
                              [(ii) is restored to a natural
                            condition;
                      [(B) contains historical or archaeological
                    resources; or
                      [(C) would address issues raised by State,
                    regional, and national conservation priorities;
                    or
              [(3) is incidental to land described in paragraph (1)
            or (2), if the incidental land is determined by the
            Secretary to be necessary for the efficient
            administration of a rental contract or easement under
            the program.

    [SEC. 1238O. DUTIES OF OWNERS AND OPERATORS.

      [(a) Rental Contracts.--To be eligible to enroll eligible
    land in the program under a rental contract, the owner or
    operator of the land shall agree--
              [(1) to comply with the terms of the contract and,
            when applicable, a restoration agreement;
              [(2) to suspend any existing cropland base and
            allotment history for the land under another program
            administered by the Secretary; and
              [(3) to implement a grazing management plan, as
            approved by the Secretary, which may be modified upon
            mutual agreement of the parties.
      [(b) Easements.--To be eligible to enroll eligible land in
    the program through an easement, the owner of the land shall
    agree--
              [(1) to grant an easement to the Secretary or to an
            eligible entity described in section 1238Q;
              [(2) to create and record an appropriate deed
            restriction in accordance with applicable State law to
            reflect the easement;
              [(3) to provide a written statement of consent to the
            easement signed by persons holding a security interest
            or any vested interest in the land;
              [(4) to provide proof of unencumbered title to the
            underlying fee interest in the land that is the subject
            of the easement;
              [(5) to comply with the terms of the easement and,
            when applicable, a restoration agreement;
              [(6) to implement a grazing management plan, as
            approved by the Secretary, which may be modified upon
            mutual agreement of the parties; and
              [(7) to eliminate any existing cropland base and
            allotment history for the land under another program
            administered by the Secretary.
      [(c) Restoration Agreements.--
              [(1) When applicable.--To be eligible for cost-share
            assistance to restore eligible land subject to a rental
            contract or an easement under the program, the owner or
            operator of the land shall agree to comply with the
            terms of a restoration agreement.
              [(2) Terms and conditions.--The Secretary shall
            prescribe the terms and conditions of a restoration
            agreement by which eligible land that is subject to a
            rental contract or easement under the program shall be
            restored.
              [(3) Duties.--The restoration agreement shall
            describe the respective duties of the owner or operator
            and the Secretary, including the Federal share of
            restoration payments and technical assistance.
      [(d) Terms and Conditions Applicable to Rental Contracts and
    Easements.--
              [(1) Permissible activities.--The terms and
            conditions of a rental contract or easement under the
            program shall permit--
                      [(A) common grazing practices, including
                    maintenance and necessary cultural practices,
                    on the land in a manner that is consistent with
                    maintaining the viability of grassland, forb,
                    and shrub species appropriate to that locality;
                      [(B) haying, mowing, or harvesting for seed
                    production, subject to appropriate restrictions
                    during the nesting season for birds in the
                    local area that are in significant decline or
                    are conserved in accordance with Federal or
                    State law, as determined by the State
                    Conservationist;
                      [(C) fire presuppression, rehabilitation, and
                    construction of fire breaks; and
                      [(D) grazing related activities, such as
                    fencing and livestock watering.
              [(2) Prohibitions.--The terms and conditions of a
            rental contract or easement under the program shall
            prohibit--
                      [(A) the production of crops (other than
                    hay), fruit trees, vineyards, or any other
                    agricultural commodity that is inconsistent
                    with maintaining grazing land; and
                      [(B) except as permitted under a restoration
                    plan, the conduct of any other activity that
                    would be inconsistent with maintaining grazing
                    land enrolled in the program.
              [(3) Additional terms and conditions.--A rental
            contract or easement under the program shall include
            such additional provisions as the Secretary determines
            are appropriate to carry out or facilitate the purposes
            and administration of the program.
      [(e) Violations.--On a violation of the terms or conditions
    of a rental contract, easement, or restoration agreement
    entered into under this section--
              [(1) the contract or easement shall remain in force;
            and
              [(2) the Secretary may require the owner or operator
            to refund all or part of any payments received under
            the program, with interest on the payments as
            determined appropriate by the Secretary.

    [SEC. 1238P. DUTIES OF SECRETARY.

      [(a) Evaluation and Ranking of Applications.--
              [(1) Criteria.--The Secretary shall establish
            criteria to evaluate and rank applications for rental
            contracts and easements under the program.
              [(2) Considerations.--In establishing the criteria,
            the Secretary shall emphasize support for--
                      [(A) grazing operations;
                      [(B) plant and animal biodiversity; and
                      [(C) grassland, land that contains forbs, and
                    shrubland under the greatest threat of
                    conversion to uses other than grazing.
      [(b) Payments.--
              [(1) In general.--In return for the execution of a
            rental contract or the granting of an easement by an
            owner or operator under the program, the Secretary
            shall--
                      [(A) make rental contract or easement
                    payments to the owner or operator in accordance
                    with paragraphs (2) and (3); and
                      [(B) make payments to the owner or operator
                    under a restoration agreement for the Federal
                    share of the cost of restoration in accordance
                    with paragraph (4).
              [(2) Rental contract payments.--
                      [(A) Percentage of grazing value of land.--In
                    return for the execution of a rental contract
                    by an owner or operator under the program, the
                    Secretary shall make annual payments during the
                    term of the contract in an amount, subject to
                    subparagraph (B), that is not more than 75
                    percent of the grazing value of the land
                    covered by the contract.
                      [(B) Payment limitation.--Payments made under
                    1 or more rental contracts to a person or legal
                    entity, directly or indirectly, may not exceed,
                    in the aggregate, $50,000 per year.
              [(3) Easement payments.--
                      [(A) In general.--Subject to subparagraph
                    (B), in return for the granting of an easement
                    by an owner under the program, the Secretary
                    shall make easement payments in an amount not
                    to exceed the fair market value of the land
                    less the grazing value of the land encumbered
                    by the easement.
                      [(B) Method for determination of
                    compensation.--In making a determination under
                    subparagraph (A), the Secretary shall pay as
                    compensation for a easement acquired under the
                    program the lowest of--
                              [(i) the fair market value of the
                            land encumbered by the easement, as
                            determined by the Secretary, using--
                                      [(I) the Uniform Standards of
                                    Professional Appraisal
                                    Practices; or
                                      [(II) an area-wide market
                                    analysis or survey;
                              [(ii) the amount corresponding to a
                            geographical cap, as determined by the
                            Secretary in regulations; or
                              [(iii) the offer made by the
                            landowner.
                      [(C) Schedule.--Easement payments may be
                    provided in up to 10 annual payments of equal
                    or unequal amount, as agreed to by the
                    Secretary and the owner.
              [(4) Restoration agreement payments.--
                      [(A) Federal share of restoration.--The
                    Secretary shall make payments to an owner or
                    operator under a restoration agreement of not
                    more than 50 percent of the costs of carrying
                    out measures and practices necessary to restore
                    functions and values of that land.
                      [(B) Payment limitation.--Payments made under
                    1 or more restoration agreements to a person or
                    legal entity, directly or indirectly, may not
                    exceed, in the aggregate, $50,000 per year.
              [(5) Payments to others.--If an owner or operator who
            is entitled to a payment under the program 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. 1238Q. DELEGATION OF DUTY.

      [(a) Authority to Delegate.--The Secretary may delegate a
    duty under the program--
              [(1) by transferring title of ownership to an
            easement to an eligible entity to hold and enforce; or
              [(2) by entering into a cooperative agreement with an
            eligible entity for the eligible entity to own, write,
            and enforce an easement.
      [(b) Eligible Entity Defined.--In this section, the term
    ``eligible entity'' means--
              [(1) an agency of State or local government or an
            Indian tribe; or
              [(2) an organization that--
                      [(A) is organized for, and at all times since
                    the formation of the organization has been
                    operated principally for, one or more of the
                    conservation purposes specified in clause (i),
                    (ii), (iii), or (iv) of section 170(h)(4)(A) of
                    the Internal Revenue Code of 1986;
                      [(B) is an organization described in section
                    501(c)(3) of that Code that is exempt from
                    taxation under section 501(a) of that Code; and
                      [(C) is described in--
                              [(i) paragraph (1) or (2) of section
                            509(a) of that Code; or
                              [(ii) in section 509(a)(3) of that
                            Code, and is controlled by an
                            organization described in section
                            509(a)(2) of that Code.
      [(c) Transfer of Title of Ownership.--
              [(1) Transfer.--The Secretary may transfer title of
            ownership to an easement to an eligible entity to hold
            and enforce, in lieu of the Secretary, subject to the
            right of the Secretary to conduct periodic inspections
            and enforce the easement, if--
                      [(A) the Secretary determines that the
                    transfer will promote protection of grassland,
                    land that contains forbs, or shrubland;
                      [(B) the owner authorizes the eligible entity
                    to hold or enforce the easement; and
                      [(C) the eligible entity agrees to assume the
                    costs incurred in administering and enforcing
                    the easement, including the costs of
                    restoration or rehabilitation of the land as
                    specified by the owner and the eligible entity.
              [(2) Application.--An eligible entity that seeks to
            hold and enforce an easement shall apply to the
            Secretary for approval.
              [(3) Approval by secretary.--The Secretary may
            approve an application described in paragraph (2) if
            the eligible entity--
                      [(A) has the relevant experience necessary,
                    as appropriate for the application, to
                    administer an easement on grassland, land that
                    contains forbs, or shrubland;
                      [(B) has a charter that describes a
                    commitment to conserving ranchland,
                    agricultural land, or grassland for grazing and
                    conservation purposes; and
                      [(C) has the resources necessary to
                    effectuate the purposes of the charter.
      [(d) Cooperative Agreements.--
              [(1) Authorized; terms and conditions.--The Secretary
            shall establish the terms and conditions of a
            cooperative agreement under which an eligible entity
            shall use funds provided by the Secretary to own,
            write, and enforce an easement, in lieu of the
            Secretary.
              [(2) Minimum requirements.--At a minimum, the
            cooperative agreement shall--
                      [(A) specify the qualification of the
                    eligible entity to carry out the entity's
                    responsibilities under the program, including
                    acquisition, monitoring, enforcement, and
                    implementation of management policies and
                    procedures that ensure the long-term integrity
                    of the easement protections;
                      [(B) require the eligible entity to assume
                    the costs incurred in administering and
                    enforcing the easement, including the costs of
                    restoration or rehabilitation of the land as
                    specified by the owner and the eligible entity;
                      [(C) specify the right of the Secretary to
                    conduct periodic inspections to verify the
                    eligible entity's enforcement of the easement;
                      [(D) subject to subparagraph (E), identify a
                    specific project or a range of projects to be
                    funded under the agreement;
                      [(E) allow, upon mutual agreement of the
                    parties, substitution of qualified projects
                    that are identified at the time of
                    substitution;
                      [(F) specify the manner in which the eligible
                    entity will evaluate and report the use of
                    funds to the Secretary;
                      [(G) allow the eligible entity flexibility to
                    develop and use terms and conditions for
                    easements, if the Secretary finds the terms and
                    conditions consistent with the purposes of the
                    program and adequate to enable effective
                    enforcement of the easements;
                      [(H) if applicable, allow an eligible entity
                    to include a charitable donation or qualified
                    conservation contribution (as defined by
                    section 170(h) of the Internal Revenue Code of
                    1986) from the landowner from which the
                    easement will be purchased as part of the
                    entity's share of the cost to purchase an
                    easement; and
                      [(I) provide for a schedule of payments to an
                    eligible entity, as agreed to by the Secretary
                    and the eligible entity.
              [(3) Cost sharing.--
                      [(A) In general.--As part of a cooperative
                    agreement with an eligible entity under this
                    subsection, the Secretary may provide a share
                    of the purchase price of an easement under the
                    program.
                      [(B) Minimum share by eligible entity.--The
                    eligible entity shall be required to provide a
                    share of the purchase price at least equivalent
                    to that provided by the Secretary.
                      [(C) Priority.--The Secretary may accord a
                    higher priority to proposals from eligible
                    entities that leverage a greater share of the
                    purchase price of the easement.
              [(4) Violation.--If an eligible entity violates the
            terms or conditions of a cooperative agreement entered
            into under this subsection--
                      [(A) the cooperative agreement shall remain
                    in force; and
                      [(B) the Secretary may require the eligible
                    entity to refund all or part of any payments
                    received by the eligible entity under the
                    program, with interest on the payments as
                    determined appropriate by the Secretary.
      [(e) Protection of Federal Investment.--When delegating a
    duty under this section, the Secretary shall ensure that the
    terms of an easement include a contingent right of enforcement
    for the Department.]

                 Subchapter B--Conservation Stewardship Program

    SEC. 1238D. DEFINITIONS.

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

    SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM.

      (a) Establishment and Purpose.--During each of fiscal years
    2013 through 2017, the Secretary shall carry out a conservation
    stewardship program to encourage producers to address priority
    resource concerns in a comprehensive manner--
              (1) by undertaking additional conservation
            activities; and
              (2) by improving, maintaining, and managing existing
            conservation activities.
      (b) Exclusions.--
              (1) Land enrolled in other conservation programs.--
            Subject to paragraph (2), the following land (even if
            covered by the definition of eligible land) is not
            eligible for enrollment in the program:
                      (A) Land enrolled in the conservation reserve
                    program, unless--
                              (i) the conservation reserve contract
                            will expire at the end of the fiscal
                            year in which the land is to be
                            enrolled in the program; and
                              (ii) conservation reserve program
                            payments for land enrolled in the
                            program cease before the first program
                            payment is made to the applicant under
                            this subchapter.
                      (B) Land enrolled in a wetland easement
                    through the agricultural conservation easement
                    program.
                      (C) Land enrolled in the conservation
                    security program.
              (2) Conversion to cropland.--Eligible land used for
            crop production after October 1, 2012, that had not
            been planted, considered to be planted, or devoted to
            crop production for at least 4 of the 6 years preceding
            that date shall not be the basis for any payment under
            the program, unless the land does not meet the
            requirement because--
                      (A) the land had previously been enrolled in
                    the conservation reserve program;
                      (B) the land has been maintained using long-
                    term crop rotation practices, as determined by
                    the Secretary; or
                      (C) the land is incidental land needed for
                    efficient operation of the farm or ranch, as
                    determined by the Secretary.

    SEC. 1238F. STEWARDSHIP CONTRACTS.

      (a) Submission of Contract Offers.--To be eligible to
    participate in the conservation stewardship program, a producer
    shall submit to the Secretary a contract offer for the
    agricultural operation that--
              (1) demonstrates to the satisfaction of the Secretary
            that the producer, at the time of the contract offer,
            meets or exceeds the stewardship threshold for at least
            2 priority resource concerns; and
              (2) would, at a minimum, meet or exceed the
            stewardship threshold for at least 1 additional
            priority resource concern by the end of the stewardship
            contract by--
                      (A) installing and adopting additional
                    conservation activities; and
                      (B) improving, maintaining, and managing
                    existing conservation activities across the
                    entire agricultural operation in a manner that
                    increases or extends the conservation benefits
                    in place at the time the contract offer is
                    accepted by the Secretary.
      (b) Evaluation of Contract Offers.--
              (1) Ranking of applications.--In evaluating contract
            offers submitted under subsection (a), the Secretary
            shall rank applications based on--
                      (A) the level of conservation treatment on
                    all applicable priority resource concerns at
                    the time of application;
                      (B) the degree to which the proposed
                    conservation activities effectively increase
                    conservation performance;
                      (C) the number of applicable priority
                    resource concerns proposed to be treated to
                    meet or exceed the stewardship threshold by the
                    end of the contract;
                      (D) the extent to which other priority
                    resource concerns will be addressed to meet or
                    exceed the stewardship threshold by the end of
                    the contract period;
                      (E) the extent to which the actual and
                    anticipated conservation benefits from the
                    contract are provided at the least cost
                    relative to other similarly beneficial contract
                    offers; and
                      (F) the extent to which priority resource
                    concerns will be addressed when transitioning
                    from the conservation reserve program to
                    agricultural production.
              (2) Prohibition.--The Secretary may not assign a
            higher priority to any application because the
            applicant is willing to accept a lower payment than the
            applicant would otherwise be eligible to receive.
              (3) Additional criteria.--The Secretary may develop
            and use such additional criteria that the Secretary
            determines are necessary to ensure that national,
            State, and local priority resource concerns are
            effectively addressed.
      (c) Entering Into Contracts.--After a determination that a
    producer is eligible for the program under subsection (a), and
    a determination that the contract offer ranks sufficiently high
    under the evaluation criteria under subsection (b), the
    Secretary shall enter into a conservation stewardship contract
    with the producer to enroll the eligible land to be covered by
    the contract.
      (d) Contract Provisions.--
              (1) Term.--A conservation stewardship contract shall
            be for a term of 5 years.
              (2) Required provisions.--The conservation
            stewardship contract of a producer shall--
                      (A) state the amount of the payment the
                    Secretary agrees to make to the producer for
                    each year of the conservation stewardship
                    contract under section 1238G(d);
                      (B) require the producer--
                              (i) to implement a conservation
                            stewardship plan that describes the
                            program purposes to be achieved through
                            1 or more conservation activities;
                              (ii) to maintain and supply
                            information as required by the
                            Secretary to determine compliance with
                            the conservation stewardship plan and
                            any other requirements of the program;
                            and
                              (iii) not to conduct any activities
                            on the agricultural operation that
                            would tend to defeat the purposes of
                            the program;
                      (C) permit all economic uses of the eligible
                    land that--
                              (i) maintain the agricultural nature
                            of the land; and
                              (ii) are consistent with the
                            conservation purposes of the
                            conservation stewardship contract;
                      (D) include a provision to ensure that a
                    producer shall not be considered in violation
                    of the contract for failure to comply with the
                    contract due to circumstances beyond the
                    control of the producer, including a disaster
                    or related condition, as determined by the
                    Secretary;
                      (E) include provisions requiring that upon
                    the violation of a term or condition of the
                    contract at any time the producer has control
                    of the land--
                              (i) if the Secretary determines that
                            the violation warrants termination of
                            the contract--
                                      (I) the producer shall
                                    forfeit all rights to receive
                                    payments under the contract;
                                    and
                                      (II) the producer shall
                                    refund all or a portion of the
                                    payments received by the
                                    producer under the contract,
                                    including any interest on the
                                    payments, as determined by the
                                    Secretary; or
                              (ii) if the Secretary determines that
                            the violation does not warrant
                            termination of the contract, the
                            producer shall refund or accept
                            adjustments to the payments provided to
                            the producer, as the Secretary
                            determines to be appropriate;
                      (F) include provisions in accordance with
                    paragraphs (3) and (4) of this section; and
                      (G) include any additional provisions the
                    Secretary determines are necessary to carry out
                    the program.
              (3) Change of interest in land subject to a
            contract.--
                      (A) In general.--At the time of application,
                    a producer shall have control of the eligible
                    land to be enrolled in the program. Except as
                    provided in subparagraph (B), a change in the
                    interest of a producer in eligible land covered
                    by a contract under the program shall result in
                    the termination of the contract with regard to
                    that land.
                      (B) Transfer of duties and rights.--
                    Subparagraph (A) shall not apply if--
                              (i) within a reasonable period of
                            time (as determined by the Secretary)
                            after the date of the change in the
                            interest in eligible land covered by a
                            contract under the program, the
                            transferee of the land provides written
                            notice to the Secretary that all duties
                            and rights under the contract have been
                            transferred to, and assumed by, the
                            transferee for the portion of the land
                            transferred;
                              (ii) the transferee meets the
                            eligibility requirements of the
                            program; and
                              (iii) the Secretary approves the
                            transfer of all duties and rights under
                            the contract.
              (4) Modification and termination of contracts.--
                      (A) Voluntary modification or termination.--
                    The Secretary may modify or terminate a
                    contract with a producer if--
                              (i) the producer agrees to the
                            modification or termination; and
                              (ii) the Secretary determines that
                            the modification or termination is in
                            the public interest.
                      (B) Involuntary termination.--The Secretary
                    may terminate a contract if the Secretary
                    determines that the producer violated the
                    contract.
              (5) Repayment.--If a contract is terminated, the
            Secretary may, consistent with the purposes of the
            program--
                      (A) allow the producer to retain payments
                    already received under the contract; or
                      (B) require repayment, in whole or in part,
                    of payments received and assess liquidated
                    damages.
      (e) Contract Renewal.--At the end of the initial 5-year
    contract period, the Secretary may allow the producer to renew
    the contract for 1 additional 5-year period if the producer--
              (1) demonstrates compliance with the terms of the
            initial contract;
              (2) agrees to adopt and continue to integrate
            conservation activities across the entire agricultural
            operation, as determined by the Secretary; and
              (3) agrees, by the end of the contract period--
                      (A) to meet the stewardship threshold of at
                    least two additional priority resource concerns
                    on the agricultural operation; or
                      (B) to exceed the stewardship threshold of
                    two existing priority resource concerns that
                    are specified by the Secretary in the initial
                    contract.

    SEC. 1238G. DUTIES OF THE SECRETARY.

      (a) In General.--To achieve the conservation goals of a
    contract under the conservation stewardship program, the
    Secretary shall--
              (1) make the program available to eligible producers
            on a continuous enrollment basis with 1 or more ranking
            periods, one of which shall occur in the first quarter
            of each fiscal year;
              (2) identify not less than 5 priority resource
            concerns in a particular watershed or other appropriate
            region or area within a State; and
              (3) establish a science-based stewardship threshold
            for each priority resource concern identified under
            paragraph (2).
      (b) Allocation to States.--The Secretary shall allocate acres
    to States for enrollment, based--
              (1) primarily on each State's proportion of eligible
            land to the total acreage of eligible land in all
            States; and
              (2) also on consideration of--
                      (A) the extent and magnitude of the
                    conservation needs associated with agricultural
                    production in each State;
                      (B) the degree to which implementation of the
                    program in the State is, or will be, effective
                    in helping producers address those needs; and
                      (C) other considerations to achieve equitable
                    geographic distribution of funds, as determined
                    by the Secretary.
      (c) Acreage Enrollment Limitation.--During the period
    beginning on October 1, 2012, and ending on September 30, 2021,
    the Secretary shall, to the maximum extent practicable--
              (1) enroll in the program an additional 9,000,000
            acres for each fiscal year; and
              (2) manage the program to achieve a national average
            rate of $18 per acre, which shall include the costs of
            all financial assistance, technical assistance, and any
            other expenses associated with enrollment or
            participation in the program.
      (d) Conservation Stewardship Payments.--
              (1) Availability of payments.--The Secretary shall
            provide annual payments under the program to compensate
            the producer for--
                      (A) installing and adopting additional
                    conservation activities; and
                      (B) improving, maintaining, and managing
                    conservation activities in place at the
                    agricultural operation of the producer at the
                    time the contract offer is accepted by the
                    Secretary.
              (2) Payment amount.--The amount of the conservation
            stewardship annual payment shall be determined by the
            Secretary and based, to the maximum extent practicable,
            on the following factors:
                      (A) Costs incurred by the producer associated
                    with planning, design, materials, installation,
                    labor, management, maintenance, or training.
                      (B) Income forgone by the producer.
                      (C) Expected conservation benefits.
                      (D) The extent to which priority resource
                    concerns will be addressed through the
                    installation and adoption of conservation
                    activities on the agricultural operation.
                      (E) The level of stewardship in place at the
                    time of application and maintained over the
                    term of the contract.
                      (F) The degree to which the conservation
                    activities will be integrated across the entire
                    agricultural operation for all applicable
                    priority resource concerns over the term of the
                    contract.
                      (G) Such other factors as determined
                    appropriate by the Secretary.
              (3) Exclusions.--A payment to a producer under this
            subsection shall not be provided for--
                      (A) the design, construction, or maintenance
                    of animal waste storage or treatment facilities
                    or associated waste transport or transfer
                    devices for animal feeding operations; or
                      (B) conservation activities for which there
                    is no cost incurred or income forgone to the
                    producer.
              (4) Delivery of payments.--In making payments under
            this subsection, the Secretary shall, to the extent
            practicable--
                      (A) prorate conservation performance over the
                    term of the contract so as to accommodate, to
                    the extent practicable, producers earning equal
                    annual payments in each fiscal year; and
                      (B) make payments as soon as practicable
                    after October 1 of each fiscal year for
                    activities carried out in the previous fiscal
                    year.
      (e) Supplemental Payments for Resource-Conserving Crop
    Rotations.--
              (1) Availability of payments.--The Secretary shall
            provide additional payments to producers that, in
            participating in the program, agree to adopt or improve
            resource-conserving crop rotations to achieve
            beneficial crop rotations as appropriate for the
            eligible land of the producers.
              (2) Beneficial crop rotations.--The Secretary shall
            determine whether a resource-conserving crop rotation
            is a beneficial crop rotation eligible for additional
            payments under paragraph (1) based on whether the
            resource-conserving crop rotation is designed to
            provide natural resource conservation and production
            benefits.
              (3) Eligibility.--To be eligible to receive a payment
            described in paragraph (1), a producer shall agree to
            adopt and maintain beneficial resource-conserving crop
            rotations for the term of the contract.
              (4) Resource-conserving crop rotation.--In this
            subsection, the term ``resource-conserving crop
            rotation'' means a crop rotation that--
                      (A) includes at least 1 resource conserving
                    crop (as defined by the Secretary);
                      (B) reduces erosion;
                      (C) improves soil fertility and tilth;
                      (D) interrupts pest cycles; and
                      (E) in applicable areas, reduces depletion of
                    soil moisture or otherwise reduces the need for
                    irrigation.
      (f) Payment Limitations.--A person or legal entity may not
    receive, directly or indirectly, payments under the program
    that, in the aggregate, exceed $200,000 under all contracts
    entered into during fiscal years 2013 through 2017, excluding
    funding arrangements with Indian tribes, regardless of the
    number of contracts entered into under the program by the
    person or legal entity.
      (g) Specialty Crop and Organic Producers.--The Secretary
    shall ensure that outreach and technical assistance are
    available, and program specifications are appropriate to enable
    specialty crop and organic producers to participate in the
    program.
      (h) Coordination With Organic Certification.--The Secretary
    shall establish a transparent means by which producers may
    initiate organic certification under the Organic Foods
    Production Act of 1990 (7 U.S.C. 6501 et seq.) while
    participating in a contract under the program.
      (i) Regulations.--The Secretary shall promulgate regulations
    that--
              (1) prescribe such other rules as the Secretary
            determines to be necessary to ensure a fair and
            reasonable application of the limitations established
            under subsection (f); and
              (2) otherwise enable the Secretary to carry out the
            program.

                   [CHAPTER 3--ENVIRONMENTAL EASEMENT PROGRAM

    [SEC. 1239. ENVIRONMENTAL EASEMENT PROGRAM.

      [(a) Establishment.--The Secretary shall, during the 1991
    through 1995 calendar years, formulate and carry out an
    environmental easement program (hereafter in this chapter
    referred to as the ``easement program'') in accordance with
    this chapter, through the acquisition of permanent easements or
    easements for the maximum term permitted under applicable State
    law from willing owners of eligible farms or ranches in order
    to ensure the continued long-term protection of environmentally
    sensitive lands or reduction in the degradation of water
    quality on such farms or ranches through the continued
    conservation and improvement of soil and water resources.
      [(b) Eligibility; Termination.--
              [(1) In general.--The Secretary may acquire easements
            under this section on land placed in the conservation
            reserve under this subtitle (other than such land that
            is likely to continue to remain out of production and
            that does not pose an off-farm environmental threat),
            land under the Water Bank Act (16 U.S.C. 1301), or
            other cropland that--
                      [(A) contains riparian corridors;
                      [(B) is an area of critical habitat for
                    wildlife, especially threatened or endangered
                    species; or
                      [(C) contains other environmentally sensitive
                    areas, as determined by the Secretary, that
                    would prevent a producer from complying with
                    other Federal, State, or local environmental
                    goals if commodities were to be produced on
                    such land.
              [(2) Ineligible land.--The Secretary may not acquire
            easements on--
                      [(A) land that contains timber stands
                    established under the conservation reserve
                    under subtitle D; or
                      [(B) pasture land established to trees under
                    the conservation reserve under subtitle D.
              [(3) Termination of existing contract.--The Secretary
            may terminate or modify any existing contract entered
            into under section 1231(a) if eligible land that is
            subject to such contract is transferred into the
            program established by this chapter.

    [SEC. 1239A. DUTIES OF OWNERS; COMPONENTS OF PLAN.

      [(a) Duties of Owners.--
              [(1) Plan.--In conjunction with the creation of an
            easement on any lands under this chapter, the owner of
            the farm or ranch wherein such lands are located must
            agree to implement a natural resource conservation
            management plan under subsection (b) approved by the
            Secretary in consultation with the Secretary of the
            Interior.
              [(2) Agreement.--In return for the creation of an
            easement on any lands under this chapter, the owner of
            the farm or ranch wherein such lands are located must
            agree to the following:
                      [(A) To the creation and recordation of an
                    appropriate deed restriction in accordance with
                    applicable State law to reflect the easement
                    agreed to under this chapter with respect to
                    such lands.
                      [(B) To provide a written statement of
                    consent to such easement signed by those
                    holding a security interest in the land.
                      [(C) To comply with such additional
                    provisions as the Secretary determines are
                    desirable and are included in the easement to
                    carry out this chapter or to facilitate the
                    practical administration thereof.
                      [(D) To specify the location of any timber
                    harvesting on land subject to the easement.
                    Harvesting and commercial sales of Christmas
                    trees and nuts shall be prohibited on such
                    land, except that no such easement or related
                    agreement shall prohibit activities consistent
                    with customary forestry practices, such as
                    pruning, thinning, or tree stand improvement on
                    lands converted to forestry uses.
                      [(E) To limit the production of any
                    agricultural commodity on such lands only to
                    production for the benefit of wildlife.
                      [(F) Not to conduct any harvesting or
                    grazing, nor otherwise make commercial use of
                    the forage, on land that is subject to the
                    easement unless specifically provided for in
                    the easement or related agreement.
                      [(G) Not to adopt any other practice that
                    would tend to defeat the purposes of this
                    chapter, as determined by the Secretary.
              [(3) Violation.--On the violation of the terms or
            conditions of the easement or related agreement entered
            into under this section, the easement shall remain in
            force and the Secretary may require the owner to refund
            all or part of any payments received by the owner under
            this chapter, together with interest thereon as
            determined appropriate by the Secretary.
      [(b) Components of Plan.--The natural resource conservation
    management plan referred to in subsection (a)(1) (hereafter
    referred to as the ``plan'')--
              [(1) shall set forth--
                      [(A) the conservation measures and practices
                    to be carried out by the owner of the land
                    subject to the easement; and
                      [(B) the commercial use, if any, to be
                    permitted on such land during the term of the
                    easement; and
              [(2) shall provide for the permanent retirement of
            any existing cropland base and allotment history for
            such land under any program administered by the
            Secretary.

    [SEC. 1239B. DUTIES OF THE SECRETARY.

      [In return for the granting of an easement by an owner under
    this chapter, the Secretary shall--
              [(1) share the cost of carrying out the establishment
            of conservation measures and practices set forth in the
            plan for which the Secretary determines that cost
            sharing is appropriate and in the public interest;
              [(2) pay for a period not to exceed 10 years annual
            easement payments in the aggregate not to exceed the
            lesser of--
                      [(A) $250,000; or
                      [(B) the difference in the value of the land
                    with and without an easement;
              [(3) provide necessary technical assistance to assist
            owners in complying with the terms and conditions of
            the easement and the plan; and
              [(4) permit the land to be used for wildlife
            activities, including hunting and fishing, if such use
            is permitted by the owner.

    [SEC. 1239C. PAYMENTS.

      [(a) Time of Payment.--The Secretary shall provide payment
    for obligations incurred by the Secretary under this chapter--
              [(1) with respect to any cost sharing obligation as
            soon as possible after the obligation is incurred; and
              [(2) with respect to any annual easement payment
            obligation incurred by the Secretary as soon as
            possible after October 1 of each calendar year.
      [(b) Cost Sharing Payments.--In making cost sharing payments
    to owners under this chapter, the Secretary may pay up to 100
    percent of the cost of establishing conservation measures and
    practices pursuant to this chapter.
      [(c) Easement Payments; Acceptability of Offers.--
              [(1) Determination of amount.--The Secretary shall
            determine the amount payable to owners in the form of
            easement payments under this chapter, and in making
            such determination may consider, among other things,
            the amount necessary to encourage owners to participate
            in the easement program.
              [(2) Acceptability of offers.--In determining the
            acceptability of easement offers, the Secretary may
            take into consideration--
                      [(A) the extent to which the purposes of the
                    easement program would be achieved on the land;
                      [(B) the productivity of the land; and
                      [(C) the on-farm and off-farm environmental
                    threats if the land is used for the production
                    of agricultural commodities.
      [(d) Form of Payment.--Except as otherwise provided in this
    section, payments under this chapter--
              [(1) shall be made in cash in such amount and at such
            time as is agreed on and specified in the easement or
            related agreement; and
              [(2) may be made in advance of a determination of
            performance.
      [(e) Payments to Others.--If an owner who is entitled to a
    payment under this chapter dies, becomes incompetent, is
    otherwise unable to receive such payment, or is succeeded by
    another person who renders or completes the required
    performance, the Secretary shall make such payment, in
    accordance with regulations prescribed by the Secretary and
    without regard to any other provision of law, in such manner as
    the Secretary determines is fair and reasonable in light of all
    of the circumstances.
      [(f) Payment Limitation.--
              [(1) In general.--The total amount of easement
            payments made to a person under this chapter for any
            year may not exceed $50,000.
              [(2) Regulations.--The Secretary shall issue
            regulations prescribing such rules as the Secretary
            determines necessary to ensure a fair and reasonable
            application of the limitation contained in this
            subsection.
              [(3) Other payments.--Easement payments received by
            an owner shall be in addition to, and not affect, the
            total amount of payments that such owner is otherwise
            eligible to receive under this Act, the Food,
            Agriculture, Conservation, and Trade Act of 1990, or
            the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).
              [(4) State environmental enhancement.--The provisions
            of this subsection that limit payments to any person,
            and section 1305(d) of the Agricultural Reconciliation
            Act of 1987 (7 U.S.C. 1308 note), shall not be
            applicable to payments received by a State, political
            subdivision, or agency thereof in connection with
            agreements entered into under an environmental easement
            enhancement program carried out by that entity that has
            been approved by the Secretary. The Secretary may enter
            into such agreements for payments to States, political
            subdivisions, or agencies thereof that the Secretary
            determines will advance the purposes of this chapter.
      [(g) Exemption From Automatic Sequester.--Notwithstanding any
    other provision of law, no order issued under section 252 of
    the Balanced Budget and Emergency Deficit Control Act of 1985,
    as amended (2 U.S.C. 902) shall affect any payment under this
    chapter.

    [SEC. 1239D. CHANGES IN OWNERSHIP; MODIFICATION OF EASEMENT.

      [(a) Limitations.--No easement shall be created under this
    chapter on land that has changed ownership in the preceding 12
    months unless--
              [(1) the new ownership was acquired by will or
            succession as a result of the death of the previous
            owner;
              [(2) the new ownership was acquired before January 1,
            1990; or
              [(3) the Secretary determines that the land was
            acquired under circumstances that give adequate
            assurances that such land was not acquired for the
            purposes of placing it in the program established by
            this chapter.
      [(b) Modification; Termination.--
              [(1) Modification.--The Secretary may modify an
            easement acquired from, or a related agreement with, an
            owner under this chapter if--
                      [(A) the current owner of the land agrees to
                    such modification; and
                      [(B) the Secretary determines that such
                    modification is desirable--
                              [(i) to carry out this chapter;
                              [(ii) to facilitate the practical
                            administration of this chapter; or
                              [(iii) to achieve such other goals as
                            the Secretary determines are
                            appropriate and consistent with this
                            chapter.
              [(2) Termination.--
                      [(A) In general.--The Secretary may terminate
                    an easement created with an owner under this
                    chapter if--
                              [(i) the current owner of the land
                            agrees to such termination; and
                              [(ii) the Secretary determines that
                            such termination would be in the public
                            interest.
                      [(B) Notice.--At least 90 days before taking
                    any action to terminate under subparagraph (A)
                    all easements entered into under this chapter,
                    the Secretary shall provide written notice of
                    such action to the Committee on Agriculture of
                    the House of Representatives and the Committee
                    on Agriculture, Nutrition, and Forestry of the
                    Senate.]

              CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

    SEC. 1240. PURPOSES.

      The purposes of the environmental quality incentives program
    established by this chapter are to promote agricultural
    production, forest management, and environmental quality as
    compatible goals, and to optimize environmental benefits, by--
              (1) * * *

               *       *       *       *       *       *       *

              (3) providing flexible assistance to producers to
            install and maintain conservation practices that
            sustain food and fiber production while--
                      (A) enhancing soil, water, and related
                    natural resources, including grazing land,
                    forestland, wetland, and wildlife; [and]
                      (B) developing and improving wildlife
                    habitat; and
                      [(B)] (C) conserving energy; and
              (4) assisting producers to make beneficial, cost
            effective changes to production systems (including
            conservation practices related to organic production),
            grazing management, fuels management, forest
            management, nutrient management associated with
            livestock, pest or irrigation management, or other
            practices on agricultural and forested land[; and].
              [(5) consolidating and streamlining conservation
            planning and regulatory compliance processes to reduce
            administrative burdens on producers and the cost of
            achieving environmental goals.]

               *       *       *       *       *       *       *

    SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION.

      (a) Establishment.--During each of the 2002 through [2014]
    2017 fiscal years, the Secretary shall provide payments to
    producers that enter into contracts with the Secretary under
    the program.
      (b) Practices and Term.--
              (1) * * *
              [(2) Term.--A contract under the program shall have a
            term that--
                      [(A) at a minimum, is equal to the period
                    beginning on the date on which the contract is
                    entered into and ending on the date that is one
                    year after the date on which all practices
                    under the contract have been implemented; but
                      [(B) not to exceed 10 years.]
              (2) Term.--A contract under the program shall have a
            term that does not exceed 10 years.

               *       *       *       *       *       *       *

      (d) Payments.--
              (1) * * *

               *       *       *       *       *       *       *

              (4) Increased payments for certain producers.--
                      (A) In general.--Notwithstanding paragraph
                    (2), in the case of a producer that is a
                    limited resource, socially disadvantaged farmer
                    or rancher, veteran farmer or rancher (as
                    defined in section 2501(e) of the Food,
                    Agriculture, Conservation, and Trade Act of
                    1990 (7 U.S.C. 2279(e))), or a beginning farmer
                    or rancher, the Secretary shall increase the
                    amount that would otherwise be provided to a
                    producer under this subsection--
                              (i) * * *

               *       *       *       *       *       *       *

                      [(B) Advance payments.--Not more than 30
                    percent of the amount determined under
                    subparagraph (A) may be provided in advance for
                    the purpose of purchasing materials or
                    contracting.]
                      (B) Advance payments.--
                              (i) In general.--Not more than 50
                            percent of the amount determined under
                            subparagraph (A) may be provided in
                            advance for the purpose of purchasing
                            materials or contracting.
                              (ii) Return of funds.--If funds
                            provided in advance are not expended
                            during the 90-day period beginning on
                            the date of receipt of the funds, the
                            funds shall be returned within a
                            reasonable time frame, as determined by
                            the Secretary.

               *       *       *       *       *       *       *

      [(f) Allocation of Funding.--For each of fiscal years 2002
    through 2012, 60 percent of the funds made available for
    payments under the program shall be targeted at practices
    relating to livestock production.]
      (f) Allocation of Funding.--
              (1) Livestock.--For each of fiscal years 2013 through
            2017, at least 60 percent of the funds made available
            for payments under the program shall be targeted at
            practices relating to livestock production.
              (2) Wildlife habitat.--For each of fiscal years 2013
            through 2017, 5 percent of the funds made available for
            payments under the program shall be targeted at
            practices benefitting wildlife habitat.
      (g) Funding for [Federally Recognized Native American Indian
    Tribes and Alaska Native Corporations] Indian Tribes.--The
    Secretary may enter into alternative funding arrangements with
    [federally recognized Native American Indian Tribes and Alaska
    Native Corporations (including their affiliated membership
    organizations)] Indian tribes if the Secretary determines that
    the goals and objectives of the program will be met by such
    arrangements, and that statutory limitations regarding
    contracts with individual producers will not be exceeded by any
    Tribal [or Native Corporation] member.

               *       *       *       *       *       *       *

      (j) Wildlife Habitat Incentive Practice.--The Secretary shall
    provide payments under the program for conservation practices
    that support the restoration, development, and improvement of
    wildlife habitat on eligible land, including--
              (1) upland wildlife habitat;
              (2) wetland wildlife habitat;
              (3) habitat for threatened and endangered species;
              (4) fish habitat;
              (5) habitat on pivot corners and other irregular
            areas of a field; and
              (6) other types of wildlife habitat, as determined
            appropriate by the Secretary.

    SEC. 1240C. EVALUATION OF APPLICATIONS.

      (a) * * *
      (b) Prioritization of Applications.--In evaluating
    applications under this chapter, the Secretary shall prioritize
    applications--
              (1) based on their overall level of cost-
            effectiveness to ensure that the conservation practices
            and approaches proposed are the most efficient means of
            achieving the anticipated [environmental] conservation
            benefits of the project;

               *       *       *       *       *       *       *

              (3) that best fulfill the [purpose of the
            environmental quality incentives program specified in
            section 1240(1)] purposes of the program; and

               *       *       *       *       *       *       *

    SEC. 1240D. DUTIES OF PRODUCERS.

      To receive payments under the program, a producer shall
    agree--
              (1) * * *
              (2) not to conduct any practices on the [farm, ranch,
            or forest] enrolled land that would tend to defeat the
            purposes of the program;

               *       *       *       *       *       *       *

    [SEC. 1240G. LIMITATION ON PAYMENTS.

      [(a) limitation.--Subject to subsection (b), a person or
    legal entity may not receive, directly or indirectly, cost-
    share or incentive payments under this chapter that, in the
    aggregate, exceed $300,000 for all contracts entered into under
    this chapter by the person or entity during any six-year
    period, (excluding funding arrangements with federally
    recognized Native American Indian Tribes or Alaska Native
    Corporations under section 1240B(h)) regardless of the number
    of contracts entered into under this chapter by the person or
    entity.
      [(b) Waiver Authority.--In the case of contracts under this
    chapter for projects of special environmental significance
    (including projects involving methane digesters), as determined
    by the Secretary, the Secretary may--
              [(1) waive the limitation otherwise applicable under
            subsection (a); and
              [(2) raise the limitation to not more than $450,000
            during any six-year period.]

    SEC. 1240G. LIMITATION ON PAYMENTS.

      A person or legal entity may not receive, directly or
    indirectly, cost share or incentive payments under this chapter
    that, in aggregate, exceed $450,000 for all contracts entered
    into under this chapter by the person or legal entity during
    the period of fiscal years 2013 through 2017, regardless of the
    number of contracts entered into under this chapter by the
    person or legal entity.

    SEC. 1240H. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

      (a) Competitive Grants for Innovative Conservation
    Approaches.--
              (1) * * *
              (2) Use.--The Secretary may provide grants under this
            subsection to governmental and non-governmental
            organizations and persons, on a competitive basis, to
            carry out projects that--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) ensure efficient and effective transfer
                    of innovative technologies and approaches
                    demonstrated through projects that receive
                    funding under this section, such as market
                    systems for pollution reduction and practices
                    for the storage of carbon in soil[; and];
                      (D) provide environmental and resource
                    conservation benefits through increased
                    participation by producers of specialty
                    crops[.];
                      (E) facilitate on-farm conservation research
                    and demonstration activities; and
                      (F) facilitate pilot testing of new
                    technologies or innovative conservation
                    practices.
      [(b) Air Quality Concerns From Agricultural Operations.--
              [(1) Implementation assistance.--The Secretary shall
            provide payments under this subsection to producers to
            implement practices to address air quality concerns
            from agricultural operations and to meet Federal,
            State, and local regulatory requirements. The funds
            shall be made available on the basis of air quality
            concerns in a State and shall be used to provide
            payments to producers that are cost effective and
            reflect innovative technologies.
              [(2) Funding.--Of the funds made available to carry
            out this chapter, the Secretary shall carry out this
            subsection using $37,500,000 for each of fiscal years
            2009 through 2012.]
      (b) Reporting.--Not later than December 31, 2013, and every
    two years thereafter, the Secretary shall submit to the
    Committee on Agriculture, Nutrition, and Forestry of the Senate
    and the Committee on Agriculture of the House of
    Representatives a report on the status of projects funded under
    this section, including--
              (1) funding awarded;
              (2) project results; and
              (3) incorporation of project findings, such as new
            technology and innovative approaches, into the
            conservation efforts implemented by the Secretary.

    [SEC. 1240I. AGRICULTURAL WATER ENHANCEMENT PROGRAM.

      [(a) Definitions.--In this section:
              [(1) Agricultural water enhancement activity.--The
            term ``agricultural water enhancement activity''
            includes the following activities carried out with
            respect to agricultural land:
                      [(A) Water quality or water conservation plan
                    development, including resource condition
                    assessment and modeling.
                      [(B) Water conservation restoration or
                    enhancement projects, including conversion to
                    the production of less water-intensive
                    agricultural commodities or dryland farming.
                      [(C) Water quality or quantity restoration or
                    enhancement projects.
                      [(D) Irrigation system improvement and
                    irrigation efficiency enhancement.
                      [(E) Activities designed to mitigate the
                    effects of drought.
                      [(F) Related activities that the Secretary
                    determines will help achieve water quality or
                    water conservation benefits on agricultural
                    land.
              [(2) Partner.--The term ``partner'' means an entity
            that enters into a partnership agreement with the
            Secretary to carry out agricultural water enhancement
            activities on a regional basis, including--
                      [(A) an agricultural or silvicultural
                    producer association or other group of such
                    producers;
                      [(B) a State or unit of local government; or
                      [(C) a federally recognized Indian tribe.
              [(3) Partnership agreement.--The term ``partnership
            agreement'' means an agreement between the Secretary
            and a partner.
              [(4) Program.--The term ``program'' means the
            agricultural water enhancement program established
            under subsection (b).
      [(b) Establishment of Program.--Beginning in fiscal year
    2009, the Secretary shall carry out, in accordance with this
    section and using such procedures as the Secretary determines
    to be appropriate, an agricultural water enhancement program as
    part of the environmental quality incentives program to promote
    ground and surface water conservation and improve water quality
    on agricultural lands--
              [(1) by entering into contracts with, and making
            payments to, producers to carry out agricultural water
            enhancement activities; or
              [(2) by entering into partnership agreements with
            partners, in accordance with subsection (c), on a
            regional level to benefit working agricultural land.
      [(c) Partnership Agreements.--
              [(1) Agreements authorized.--The Secretary may enter
            into partnership agreements to meet the objectives of
            the program described in subsection (b).
              [(2) Applications.--An application to the Secretary
            to enter into a partnership agreement under paragraph
            (1) shall include the following:
                      [(A) A description of the geographical area
                    to be covered by the partnership agreement.
                      [(B) A description of the agricultural water
                    quality or water conservation issues to be
                    addressed by the partnership agreement.
                      [(C) A description of the agricultural water
                    enhancement objectives to be achieved through
                    the partnership.
                      [(D) A description of the partners
                    collaborating to achieve the project objectives
                    and the roles, responsibilities, and
                    capabilities of each partner.
                      [(E) A description of the program resources,
                    including payments the Secretary is requested
                    to make.
                      [(F) Such other such elements as the
                    Secretary considers necessary to adequately
                    evaluate and competitively select applications
                    for partnership agreements.
              [(3) Duties of partners.--A partner under a
            partnership agreement shall--
                      [(A) identify producers participating in the
                    project and act on their behalf in applying for
                    the program;
                      [(B) leverage funds provided by the Secretary
                    with additional funds to help achieve project
                    objectives;
                      [(C) conduct monitoring and evaluation of
                    project effects; and
                      [(D) at the conclusion of the project, report
                    to the Secretary on project results.
      [(d) Agricultural Water Enhancement Activities by
    Producers.--The Secretary shall select agricultural water
    enhancement activities proposed by producers according to
    applicable requirements under the environmental quality
    incentives program.
      [(e) Agricultural Water Enhancement Activities by Partners.--
              [(1) Competitive process.--The Secretary shall
            conduct a competitive process to select partners. In
            carrying out the process, the Secretary shall make
            public the criteria used in evaluating applications.
              [(2) Authority to give priority to certain
            proposals.--The Secretary may give a higher priority to
            proposals from partners that--
                      [(A) include high percentages of agricultural
                    land and producers in a region or other
                    appropriate area;
                      [(B) result in high levels of applied
                    agricultural water quality and water
                    conservation activities;
                      [(C) significantly enhance agricultural
                    activity;
                      [(D) allow for monitoring and evaluation; and
                      [(E) assist producers in meeting a regulatory
                    requirement that reduces the economic scope of
                    the producer's operation.
              [(3) Priority to proposals from states with water
            quantity concerns.--The Secretary shall give a higher
            priority to proposals from partners that--
                      [(A) include the conversion of agricultural
                    land from irrigated farming to dryland farming;
                      [(B) leverage Federal funds provided under
                    the program with funds provided by partners;
                    and
                      [(C) assist producers in States with water
                    quantity concerns, as determined by the
                    Secretary.
              [(4) Administration.--In carrying out this
            subsection, the Secretary shall--
                      [(A) accept qualified applications--
                              [(i) directly from partners applying
                            on behalf of producers; or
                              [(ii) from producers applying through
                            a partner as part of a regional
                            agricultural water enhancement project;
                            and
                      [(B) ensure that resources made available for
                    regional agricultural water enhancement
                    activities are delivered in accordance with
                    applicable program rules.
      [(f) Areas Experiencing Exceptional Drought.--Notwithstanding
    the purposes described in section 1240, the Secretary shall
    consider as an eligible agricultural water enhancement activity
    the use of a water impoundment to capture surface water runoff
    on agricultural land if the agricultural water enhancement
    activity--
              [(1) is located in an area that is experiencing or
            has experienced exceptional drought conditions during
            the previous two calendar years; and
              [(2) will capture surface water runoff through the
            construction, improvement, or maintenance of irrigation
            ponds or small, on-farm reservoirs.
      [(g) Waiver Authority.--To assist in the implementation of
    agricultural water enhancement activities under the program,
    the Secretary shall waive the applicability of the limitation
    in section 1001D(b)(2)(B) of this Act for participating
    producers if the Secretary determines that the waiver is
    necessary to fulfill the objectives of the program.
      [(h) Payments Under Program.--
              [(1) In general.--The Secretary shall provide
            appropriate payments to producers participating in
            agricultural water enhancement activities in an amount
            determined by the secretary to be necessary to achieve
            the purposes of the program described in subsection
            (b).
              [(2) Payments to producers in states with water
            quantity concerns.--The Secretary shall provide
            payments for a period of five years to producers
            participating in agricultural water enhancement
            activities under proposals described in subsection
            (e)(3) in an amount sufficient to encourage producers
            to convert from irrigated farming to dryland farming.
      [(i) Consistency With State Law.--Any agricultural water
    enhancement activity conducted under the program shall be
    conducted in a manner consistent with State water law.
      [(j) Funding.--
              [(1) Availability of funds.--In addition to funds
            made available to carry out this chapter under section
            1241(a), the Secretary shall carry out the program
            using, of the funds of the Commodity Credit
            Corporation--
                      [(A) $73,000,000 for each of fiscal years
                    2009 and 2010;
                      [(B) $74,000,000 for fiscal year 2011; and
                      [(C) $60,000,000 for fiscal year 2012 and
                    each fiscal year thereafter.
              [(2) Limitation on administrative expenses.--None of
            the funds made available for regional agricultural
            water conservation activities under the program may be
            used to pay for the administrative expenses of
            partners.]

                     CHAPTER 5--OTHER CONSERVATION PROGRAMS

    SEC. 1240M. CONSERVATION OF PRIVATE GRAZING LAND.

      (a) * * *

               *       *       *       *       *       *       *

      (e) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $60,000,000 for each
    of fiscal years 2002 through [2012] 2017.

    [SEC. 1240N. WILDLIFE HABITAT INCENTIVE PROGRAM.

      [(a) In General.--The Secretary, in consultation with the
    State technical committees established under section 1261,
    shall establish within the Natural Resources Conservation
    Service a program to be known as the wildlife habitat incentive
    program (referred to in this section as the ``program'') for
    the development of wildlife habitat on private agricultural
    land, nonindustrial private forest land, and tribal lands.
      [(b) Cost-Share Payments.--
              [(1) In general.--Under the program, the Secretary
            shall make cost-share payments to owners of lands
            referred to in subsection (a) to develop--
                      [(A) upland wildlife habitat;
                      [(B) wetland wildlife habitat;
                      [(C) habitat for threatened and endangered
                    species;
                      [(D) fish habitat; and
                      [(E) other types of wildlife habitat approved
                    by the Secretary, including habitat developed
                    on pivot corners and irregular areas.
              [(2) Increased cost share for long-term agreements.--
                      [(A) In general.--In a case in which the
                    Secretary enters into an agreement or contract
                    to protect and restore plant and animal habitat
                    that has a term of at least 15 years, the
                    Secretary may provide cost-share payments in
                    addition to amounts provided under paragraph
                    (1).
                      [(B) Funding limitation.--The Secretary may
                    use, for a fiscal year, not more than 25
                    percent of funds made available under section
                    1241(a)(7) for the fiscal year to carry out
                    contracts and agreements described in
                    subparagraph (A).
      [(c) Regional Equity.--In carrying out this section, the
    Secretary shall, to the maximum extent practicable, ensure that
    regional issues of concern relating to wildlife habitat are
    addressed in an appropriate manner.
      [(d) Priority for Certain Conservation Initiatives.--In
    carrying out this section, the Secretary may give priority to
    projects that would address issues raised by State, regional,
    and national conservation initiatives.
      [(e) Payment Limitation.--Payments made to a person or legal
    entity, directly or indirectly, under the program may not
    exceed, in the aggregate, $50,000 per year.]

    SEC. 1240O. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

      (a) * * *
      [(b) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $20,000,000 for each
    of fiscal years 2008 through 2012.]
      (b) Funding.--
              (1) Authorization of appropriations.--There is
            authorized to be appropriated to carry out this section
            $20,000,000 for each of fiscal years 2008 through 2017.
              (2) Availability of funds.--In addition to funds made
            available under paragraph (1), of the funds of the
            Commodity Credit Corporation, the Secretary shall use
            $5,000,000, to remain available until expended.

    [SEC. 1240P. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT
                        CONTROL.

      [(a) Program Authorized.--The Secretary may carry out the
    Great Lakes basin program for soil erosion and sediment control
    (referred to in this section as the ``program''), including
    providing assistance to implement the recommendations of the
    Great Lakes Regional Collaboration Strategy to Restore and
    Protect the Great Lakes.
      [(b) Consultation and Cooperation.--The Secretary shall carry
    out the program in consultation with the Great Lakes Commission
    created by Article IV of the Great Lakes Basin Compact (82
    Stat. 415) and in cooperation with the Administrator of the
    Environmental Protection Agency and the Secretary of the Army.
      [(c) Assistance.--In carrying out the program, the Secretary
    may--
              [(1) provide project demonstration grants, provide
            technical assistance, and carry out information and
            educational programs to improve water quality in the
            Great Lakes basin by reducing soil erosion and
            improving sediment control; and
              [(2) establish a priority for projects and activities
            that--
                      [(A) directly reduce soil erosion or improve
                    sediment control;
                      [(B) reduce soil loss in degraded rural
                    watersheds; or
                      [(C) improve water quality for downstream
                    watersheds.
      [(d) Authorization of Appropriations.--There is authorized to
    be appropriated to the Secretary to carry out the program
    $5,000,000 for each of fiscal years 2008 through 2012.

    [SEC. 1240Q. CHESAPEAKE BAY WATERSHED.

      [(a) Chesapeake Bay Watershed Defined.--In this section, the
    term ``Chesapeake Bay watershed'' means all tributaries,
    backwaters, and side channels, including their watersheds,
    draining into the Chesapeake Bay.
      [(b) Establishment and Purpose.--The Secretary shall assist
    producers in implementing conservation activities on
    agricultural lands in the Chesapeake Bay watershed for the
    purposes of--
              [(1) improving water quality and quantity in the
            Chesapeake Bay watershed; and
              [(2) restoring, enhancing, and preserving soil, air,
            and related resources in the Chesapeake Bay watershed.
      [(c) Conservation Activities.--The Secretary shall deliver
    the funds made available to carry out this section through
    applicable programs under this subtitle to assist producers in
    enhancing land and water resources--
              [(1) by controlling erosion and reducing sediment and
            nutrient levels in ground and surface water; and
              [(2) by planning, designing, implementing, and
            evaluating habitat conservation, restoration, and
            enhancement measures where there is significant
            ecological value if the lands are--
                      [(A) retained in their current use; or
                      [(B) restored to their natural condition.
      [(d) Agreements.--
              [(1) In general.--The Secretary shall--
                      [(A) enter into agreements with producers to
                    carry out the purposes of this section; and
                      [(B) use the funds made available to carry
                    out this section to cover the costs of the
                    program involved with each agreement.
              [(2) Special considerations.--In entering into
            agreements under this subsection, the Secretary shall
            give special consideration to, and begin evaluating,
            applications with producers in the following river
            basins:
                      [(A) The Susquehanna River.
                      [(B) The Shenandoah River.
                      [(C) The Potomac River (including North and
                    South Potomac).
                      [(D) The Patuxent River.
      [(e) Duties of the Secretary.--In carrying out the purposes
    in this section, the Secretary shall--
              [(1) where available, use existing plans, models, and
            assessments to assist producers in implementing
            conservation activities; and
              [(2) proceed expeditiously with the implementation of
            any agreement with a producer that is consistent with
            State strategies for the restoration of the Chesapeake
            Bay watershed.
      [(f) Consultation.--The Secretary, in consultation with
    appropriate Federal agencies, shall ensure conservation
    activities carried out under this section complement Federal
    and State programs, including programs that address water
    quality, in the Chesapeake Bay watershed.
      [(g) Sense of Congress Regarding Chesapeake Bay Executive
    Council.--It is the sense of Congress that the Secretary should
    be a member of the Chesapeake Bay Executive Council, and is
    authorized to do so under section 1(3) of the Soil Conservation
    and Domestic Allotment Act (16 U.S.C. 590a(3)).
      [(h) Funding.--
              [(1) Availability.--Of the funds of the Commodity
            Credit Corporation, the Secretary shall use, to the
            maximum extent practicable--
                      [(A) $23,000,000 for fiscal year 2009;
                      [(B) $43,000,000 for fiscal year 2010;
                      [(C) $72,000,000 for fiscal year 2011; and
                      [(D) $50,000,000 for fiscal year 2012.
              [(2) Duration of availability.--Funds made available
            under paragraph (1) shall remain available until
            expended.]

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

      (a) * * *

               *       *       *       *       *       *       *

      (f) Funding.--Of the funds of the Commodity Credit
    Corporation, the Secretary shall use, to the maximum extent
    practicable, $50,000,000 for the period of fiscal years 2009
    through 2012 and $30,000,000 for the period of fiscal years
    2013 through 2017.

                     Subtitle E--Funding and Administration

    SEC. 1241. COMMODITY CREDIT CORPORATION.

      [(a) In General.--For each of fiscal years 2002 through 2012
    (and fiscal year 2014 in the case of the programs specified in
    paragraphs (3)(B), (4), (6), and (7)), the Secretary shall use
    the funds, facilities, and authorities of the Commodity Credit
    Corporation to carry out the following programs under subtitle
    D (including the provision of technical assistance):
              [(1) The conservation reserve program under
            subchapter B of chapter 1, including to the maximum
            extent practicable--
                      [(A) $100,000,000 for the period of fiscal
                    years 2009 through 2012 to provide cost share
                    payments under paragraph (3) of section 1234(b)
                    in connection with thinning activities
                    conducted on land described in subparagraph
                    (A)(iii) of such paragraph; and
                      [(B) $25,000,000 for the period of fiscal
                    years 2009 through 2012 to carry out section
                    1235(f) to facilitate the transfer of land
                    subject to contracts from retired or retiring
                    owners and operators to beginning farmers or
                    ranchers and socially disadvantaged farmers or
                    ranchers.
              [(2) The wetlands reserve program under subchapter C
            of chapter 1.
              [(3)(A) Conservation security program.--The
            conservation security program under subchapter A of
            chapter 2, using such sums as are necessary to
            administer contracts entered into before September 30,
            2008.
              [(B) Conservation stewardship program.--The
            conservation stewardship program under subchapter B of
            chapter 2.
              [(4) The farmland protection program under subchapter
            C of chapter 2, using, to the maximum extent
            practicable--
                      [(A) $97,000,000 in fiscal year 2008;
                      [(B) $121,000,000 in fiscal year 2009;
                      [(C) $150,000,000 in fiscal year 2010;
                      [(D) $175,000,000 in fiscal year 2011; and
                      [(E) $200,000,000 in each of fiscal years
                    2012 through 2014.
              [(5) The grassland reserve program under subchapter D
            of chapter 2.
              [(6) The environmental quality incentives program
            under chapter 4, using, to the maximum extent
            practicable--
                      [(A) $1,200,000,000 in fiscal year 2008;
                      [(B) $1,337,000,000 in fiscal year 2009;
                      [(C) $1,450,000,000 in fiscal year 2010;
                      [(D) $1,588,000,000 in fiscal year 2011; and
                      [(E) $1,750,000,000 in each of fiscal years
                    2012 through 2014.
              [(7) The wildlife habitat incentives program under
            section 1240N, using, to the maximum extent
            practicable--
                      [(A) $15,000,000 in fiscal year 2002;
                      [(B) $30,000,000 in fiscal year 2003;
                      [(C) $60,000,000 in fiscal year 2004; and
                      [(D) $85,000,000 in each of fiscal years 2005
                    through 2014.]
      (a) Annual Funding.--For each of fiscal years 2013 through
    2017, the Secretary shall use the funds, facilities, and
    authorities of the Commodity Credit Corporation to carry out
    the following programs under this title (including the
    provision of technical assistance):
              (1) The conservation reserve program under subchapter
            B of chapter 1 of subtitle D, including, to the maximum
            extent practicable, $25,000,000 for the period of
            fiscal years 2013 through 2017 to carry out section
            1235(f) to facilitate the transfer of land subject to
            contracts from retired or retiring owners and operators
            to beginning farmers or ranchers and socially
            disadvantaged farmers or ranchers.
              (2) The agriculture conservation easement program
            under subtitle H, using, to the maximum extent
            practicable--
                      (A) $450,000,000 in fiscal year 2013;
                      (B) $475,000,000 in fiscal year 2014;
                      (C) $500,000,000 in fiscal year 2015;
                      (D) $525,000,000 in fiscal year 2016; and
                      (E) $266,000,000 in fiscal year 2017.
              (3) The conservation security program under
            subchapter A of chapter 2 of subtitle D, using such
            sums as are necessary to administer contracts entered
            into before September 30, 2008.
              (4) The conservation stewardship program under
            subchapter B of chapter 2 of subtitle D.
              (5) The environmental quality incentives program
            under chapter 4 of subtitle D, using, to the maximum
            extent practicable, $1,750,000,000 for each of fiscal
            years 2013 through 2017.
      (b) Availability of Funds.--Amounts made available by
    subsection (a) shall be used by the Secretary to carry out the
    programs specified in such subsection for fiscal years 2013
    through 2017 and shall remain available until expended. Amounts
    made available for the programs specified in such subsection
    during a fiscal year through modifications, cancellations,
    terminations, and other related administrative actions and not
    obligated in that fiscal year shall remain available for
    obligation during subsequent fiscal years, but shall reduce the
    amount of additional funds made available in the subsequent
    fiscal year by an amount equal to the amount remaining
    unobligated.
      [(b) Technical Assistance.--Effective for fiscal year 2005
    and each subsequent fiscal year, Commodity Credit Corporation
    funds made available for each of the programs specified in
    paragraphs (1) through (7) of subsection (a)--
              [(1) shall be available for the provision of
            technical assistance for the programs for which funds
            are made available; and
              [(2) shall not be available for the provision of
            technical assistance for conservation programs
            specified in subsection (a) other than the program for
            which the funds were made available.]
      (c) Technical Assistance.--
              (1) Availability of funds.--Commodity Credit
            Corporation funds made available for a fiscal year for
            each of the programs specified in subsection (a)--
                      (A) shall be available for the provision of
                    technical assistance for the programs for which
                    funds are made available as necessary to
                    implement the programs effectively; and
                      (B) shall not be available for the provision
                    of technical assistance for conservation
                    programs specified in subsection (a) other than
                    the program for which the funds were made
                    available.
              (2) Report.--Not later than December 31, 2012, the
            Secretary shall submit (and update as necessary in
            subsequent years) to the Committee on Agriculture of
            the House of Representatives and the Committee on
            Agriculture, Nutrition, and Forestry of the Senate a
            report--
                      (A) detailing the amount of technical
                    assistance funds requested and apportioned in
                    each program specified in subsection (a) during
                    the preceding fiscal year; and
                      (B) any other data relating to this
                    subsection that would be helpful to such
                    Committees.
      [(c)] (d) Relationship to Other Law.--The use of Commodity
    Credit Corporation funds under subsection (b) to provide
    technical assistance shall not be considered an allotment or
    fund transfer from the Commodity Credit Corporation for
    purposes of the limit on expenditures for technical assistance
    imposed by section 11 of the Commodity Credit Corporation
    Charter Act (15 U.S.C. 714i).
      [(d) Regional Equity.--
              [(1) Priority funding to promote equity.--Before
            April 1 of each fiscal year, the Secretary shall give
            priority for funding under the conservation programs
            under subtitle D (excluding the conservation reserve
            program under subchapter B of chapter 1, the wetlands
            reserve program under subchapter C of chapter 1, and
            the conservation security program under subchapter A of
            chapter 2) to approved applications in any State that
            has not received, for the fiscal year, an aggregate
            amount of at least $15,000,000 for those conservation
            programs.
              [(2) Specific funding allocations.--In determining
            the specific funding allocations for States under
            paragraph (1), the Secretary shall consider the
            respective demand in each State for each program
            covered by such paragraph.]
      (e) Regional Equity.--
              (1) Equitable distribution.--In determining funding
            allocations each fiscal year, the Secretary shall,
            after considering available funding and program demand
            in each State, provide a distribution of funds for
            conservation programs under subtitle D (excluding the
            conservation reserve program under subchapter B of
            chapter 1), subtitle H (excluding wetland easements
            under section 1265C), and subtitle I to ensure
            equitable program participation proportional to
            historical funding allocations and usage by all States.
              (2) Minimum percentage.--In determining the specific
            funding allocations under paragraph (1), the Secretary
            shall--
                      (A) ensure that during the first quarter of
                    each fiscal year each State has the opportunity
                    to establish that the State can use an
                    aggregate allocation amount of at least 0.6
                    percent of the funds made available for those
                    conservation programs; and
                      (B) for each State that can so establish,
                    provide an aggregate amount of at least 0.6
                    percent of the funds made available for those
                    conservation programs.
      [(e)] (f) Acceptance and Use of Contributions.--
              (1) * * *

               *       *       *       *       *       *       *

      [(f)] (g) Allocations Review and Update.--
              (1) * * *

               *       *       *       *       *       *       *

      [(g)] (h) Assistance to Certain Farmers or Ranchers for
    Conservation Access.--
              (1) Assistance.--Of the funds made available for each
            of fiscal years 2009 through [2012] 2017 to carry out
            the environmental quality incentives program and the
            acres made available for each of such fiscal years to
            carry out the conservation stewardship program, the
            Secretary shall use, to the maximum extent
            practicable--
                      (A) * * *

               *       *       *       *       *       *       *

              (4) Preference.--In providing assistance under
            paragraph (1), the Secretary shall give preference to a
            veteran farmer or rancher (as defined in section
            2501(e) of the Food, Agriculture, Conservation, and
            Trade Act of 1990 (7 U.S.C. 2279(e))) that qualifies
            under subparagraph (A) or (B) of paragraph (1).
      [(h)] (i) Report on Program Enrollments and Assistance.--
    Beginning in calendar year 2009, and each year thereafter, the
    Secretary shall submit to the Committee on Agriculture of the
    House of Representatives and the Committee on Agriculture,
    Nutrition, and Forestry of the Senate a semiannual report
    containing statistics by State related to enrollments in
    conservation programs under this subtitle, as follows:
              (1) Payments made under the [wetlands reserve
            program] agricultural conservation easement program for
            easements valued at $250,000 or greater.
              [(2) Payments made under the farmland protection
            program for easements in which the Federal share is
            $250,000 or greater.
              [(3) Payments made under the grassland reserve
            program valued at $250,000 or greater.]
              [(4)] (2) Payments made under the environmental
            quality incentives program for land determined to have
            special environmental significance pursuant to section
            1240G(b).
              [(5)] (3) Payments made under the [agricultural water
            enhancement program] regional conservation partnership
            program subject to the waiver of adjusted gross income
            limitations pursuant to section [1240I(g)] 1271C(c)(3).
              [(6)] (4) Waivers granted by the Secretary under
            section 1001D(b)(2) of this Act in order to protect
            environmentally sensitive land of special significance.

    SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.

      (a) * * *

               *       *       *       *       *       *       *

      (h) Review of Conservation Practice Standards.--
              (1) Review required.--The Secretary shall--
                      (A) review conservation practice standards,
                    including engineering design specifications, in
                    effect on the date of the enactment of [the
                    Food, Conservation, and Energy Act of 2008] the
                    Federal Agriculture Reform and Risk Management
                    Act of 2012;

               *       *       *       *       *       *       *

      (i) Addressing Concerns of [Speciality] Specialty Crop,
    Organic, and Precision Agriculture Producers.--
              (1) * * *

               *       *       *       *       *       *       *

    [SEC. 1243. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

      [(a) Establishment of Initiative.--The Secretary shall
    establish a cooperative conservation partnership initiative (in
    this section referred to as the ``Initiative'') to work with
    eligible partners to provide assistance to producers enrolled
    in a program described in subsection (c)(1) that will enhance
    conservation outcomes on agricultural and nonindustrial private
    forest land.
      [(b) Purposes.--The purposes of a partnership entered into
    under the Initiative shall be--
              [(1) to address conservation priorities involving
            agriculture and nonindustrial private forest land on a
            local, State, multi-State, or regional level;
              [(2) to encourage producers to cooperate in meeting
            applicable Federal, State, and local regulatory
            requirements related to production involving
            agriculture and nonindustrial private forest land;
              [(3) to encourage producers to cooperate in the
            installation and maintenance of conservation practices
            that affect multiple agricultural or nonindustrial
            private forest operations; or
              [(4) to promote the development and demonstration of
            innovative conservation practices and delivery methods,
            including those for specialty crop and organic
            production and precision agriculture producers.
      [(c) Initiative Programs.--
              [(1) Covered programs.--Except as provided in
            paragraph (2), the Initiative applies to all
            conservation programs under subtitle D.
              [(2) Excluded programs.--The Initiative shall not
            include the following programs:
                      [(A) Conservation reserve program.
                      [(B) Wetlands reserve program.
                      [(C) Farmland protection program
                      [(D) Grassland reserve program.
      [(d) Eligible Partners.--The Secretary may enter into a
    partnership under the Initiative with one or more of the
    following:
              [(1) States and local governments.
              [(2) Indian tribes.
              [(3) Producer associations.
              [(4) Farmer cooperatives.
              [(5) Institutions of higher education.
              [(6) Nongovernmental organizations with a history of
            working cooperatively with producers to effectively
            address conservation priorities related to agricultural
            production and nonindustrial private forest land.
      [(e) Implementation Agreements.--The Secretary shall carry
    out the Initiative--
              [(1) by selecting, through a competitive process,
            eligible partners from among applications submitted
            under subsection (f); and
              [(2) by entering into multi-year agreements with
            eligible partners so selected for a period not to
            exceed 5 years.
      [(f) Applications.--
              [(1) Required information.--An application to enter
            into a partnership agreement under the Initiative shall
            include the following:
                      [(A) A description of the area covered by the
                    agreement, conservation priorities in the area,
                    conservation objectives to be achieved, and the
                    expected level of participation by agricultural
                    producers and nonindustrial private forest
                    landowners.
                      [(B) A description of the partner, or
                    partners, collaborating to achieve the
                    objectives of the agreement, and the roles,
                    responsibilities, and capabilities of the
                    partner.
                      [(C) A description of the resources that are
                    requested from the Secretary, and the non-
                    Federal resources that will be leveraged by the
                    Federal contribution.
                      [(D) A description of the plan for
                    monitoring, evaluating, and reporting on
                    progress made towards achieving the objectives
                    of the agreement.
                      [(E) Such other information that may be
                    required by the Secretary.
              [(2) Priorities.--The Secretary shall give priority
            to applications for agreements that--
                      [(A) have a high percentage of producers
                    involved and working agricultural or
                    nonindustrial private forest land included in
                    the area covered by the agreement;
                      [(B) significantly leverage non-Federal
                    financial and technical resources and
                    coordinate with other local, State, or Federal
                    efforts;
                      [(C) deliver high percentages of applied
                    conservation to address water quality, water
                    conservation, or State, regional, or national
                    conservation initiatives;
                      [(D) provide innovation in conservation
                    methods and delivery, including outcome-based
                    performance measures and methods; or
                      [(E) meet other factors, as determined by the
                    Secretary.
      [(g) Relationship to Covered Programs.--
              [(1) Compliance with program rules.--Except as
            provided in paragraph (2), the Secretary shall ensure
            that resources made available under the Initiative are
            delivered in accordance with the applicable rules of
            programs specified in subsection (c)(1) through normal
            program mechanisms relating to program functions,
            including rules governing appeals, payment limitations,
            and conservation compliance.
              [(2) Adjustment.--The Secretary may adjust the
            elements of any program specified in subsection
            (c)(1)--
                      [(A) to better reflect unique local
                    circumstances and purposes if the Secretary
                    determines such adjustments are necessary to
                    achieve the purposes of the Initiative; and
                      [(B) to provide preferential enrollment to
                    producers who are eligible for the applicable
                    program and to participate in the Initiative.
      [(h) Technical and Financial Assistance.--The Secretary shall
    provide appropriate technical and financial assistance to
    producers participating in the Initiative in an amount
    determined to be necessary to achieve the purposes of the
    Initiative.
      [(i) Funding.--
              [(1) Reservation.--Of the funds and acres made
            available for each of fiscal years 2009 through 2012 to
            implement the programs described in subsection (c)(1),
            the Secretary shall reserve 6 percent of the funds and
            acres to ensure an adequate source of funds and acres
            for the Initiative.
              [(2) Allocation requirements.--Of the funds and acres
            reserved for the Initiative for a fiscal year, the
            Secretary shall allocate--
                      [(A) 90 percent of the funds and acres to
                    projects based on the direction of State
                    conservationists, with the advice of State
                    technical committees; and
                      [(B) 10 percent of the funds and acres to
                    projects based on a national competitive
                    process established by the Secretary.
              [(3) Unused funding.--Any funds and acres reserved
            for a fiscal year under paragraph (1) that are not
            obligated by April 1 of that fiscal year may be used to
            carry out other activities under the program that is
            the source of the funds or acres during the remainder
            of that fiscal year.
              [(4) Administrative costs of partners.--Overhead or
            administrative costs of partners may not be covered by
            funds provided through the Initiative.]

    SEC. 1244. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

      (a) Incentives for Certain Farmers and Ranchers and Indian
    Tribes.--
              (1) * * *
              (2) Covered persons.--Incentives authorized by
            paragraph (1) may be provided to the following:
                      (A) * * *

               *       *       *       *       *       *       *

                      (E) Veteran farmers or ranchers (as defined
                    in section 2501(e) of the Food, Agriculture,
                    Conservation, and Trade Act of 1990 (7 U.S.C.
                    2279(e))).

               *       *       *       *       *       *       *

      (c) Plans.--The Secretary shall, to the extent practicable,
    avoid duplication in--
              (1) the conservation plans required for--
                      (A) highly erodible land conservation under
                    subtitle B; and
                      (B) the conservation reserve program
                    established under subchapter B of chapter 1 of
                    subtitle D; [and]
                      [(C) the wetlands reserve program established
                    under subchapter C of chapter 1 of subtitle D;
                    and]
              (2) the agricultural conservation easement program
            established under subtitle H; and
              [(2)] (3) the environmental quality incentives
            program established under chapter 4 of subtitle D.
      (d) Tenant Protection.--Except for a person who is a tenant
    on land that is subject to a conservation reserve contract that
    has been extended by the Secretary, the Secretary shall provide
    adequate safeguards to protect the interests of tenants and
    sharecroppers, including provision for sharing, on a fair and
    equitable basis, in payments under the programs established
    under subtitles B through D, H, and I.

               *       *       *       *       *       *       *

      (f) Acreage Limitations.--
              (1) Limitations.--
                      (A) Enrollments.--The Secretary shall not
                    enroll more than 25 percent of the cropland in
                    any county in the [programs administered under
                    subchapters B and C of chapter 1 of subtitle D]
                    conservation reserve program established under
                    subchapter B of chapter 1 of subtitle D and
                    wetland easements under section 1265C.
                      (B) Easements.--Not more than 10 percent of
                    the cropland in a [country] county may be
                    subject to [an easement acquired under
                    subchapter C of chapter 1 of subtitle D] a
                    wetland easement under section 1265C.

               *       *       *       *       *       *       *

              (3) Waiver to exclude certain acreage.--The Secretary
            may grant a waiver to exclude acreage enrolled under
            [subsection (c)(2)(B) or (f)(4)] subsection
            (c)(2)(A)(ii) or (f)(2) of section 1234 from the
            limitations in paragraph (1)(A) with the concurrence of
            the county government of the county involved.

               *       *       *       *       *       *       *

              (5) Calculation.--In calculating the percentages
            described in paragraph (1), the Secretary shall include
            any acreage that was included in calculations of
            percentages made under such paragraph, as in effect on
            September 30, 2012, and that remains enrolled when the
            calculation is made after that date under paragraph
            (1).

               *       *       *       *       *       *       *

      (j) Improved Administrative Efficiency and Effectiveness.--In
    administrating a conservation program under this title, the
    Secretary shall, to the maximum extent practicable--
              (1) seek to reduce administrative burdens and costs
            to producers by streamlining conservation planning and
            program resources; and
              (2) take advantage of new technologies to enhance
            efficiency and effectiveness.
      (k) Relation to Other Payments.--Any payment received by an
    owner or operator under this title, including an easement
    payment or rental payment, shall be in addition to, and not
    affect, the total amount of payments that the owner or operator
    is otherwise eligible to receive under any of the following:
              (1) This Act.
              (2) The Agricultural Act of 1949 (7 U.S.C. 1421 et
            seq.).
              (3) The Federal Agriculture Reform and Risk
            Management Act of 2012.
              (4) Any law that succeeds a law specified in
            paragraph (1), (2), or (3).

               *       *       *       *       *       *       *

    SEC. 1246. REGULATIONS.

      (a) In General.--The Secretary shall promulgate such
    regulations as are necessary to implement programs under this
    title, including such regulations as the Secretary determines
    to be necessary to ensure a fair and reasonable application of
    the limitations established under section 1244(f).
      (b) Rulemaking Procedure.--The promulgation of regulations
    and administration of programs under this title--
              (1) shall be carried out without regard to--
                      (A) the Statement of Policy of the Secretary
                    effective July 24, 1971 (36 Fed. Reg. 13804),
                    relating to notices of proposed rulemaking and
                    public participation in rulemaking; and
                      (B) chapter 35 of title 44, United States
                    Code (commonly known as the Paperwork Reduction
                    Act); and
              (2) shall be made as an interim rule effective on
            publication with an opportunity for notice and comment.
      (c) Congressional Review of Agency Rulemaking.--In
    promulgating regulations under this section, the Secretary
    shall use the authority provided under section 808 of title 5,
    United States Code.

                   Subtitle F--Other Conservation Provisions

    SEC. 1252. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      [(c) Funding Source.--
              [(1) In general.--Except as provided in paragraph
            (2), the Secretary may carry out the ACES program using
            funds made available to carry out each program under
            this title.
              [(2) Exclusions.--Funds made available to carry out
            the following programs may not be used to carry out the
            ACES program:
                      [(A) The conservation reserve program.
                      [(B) The wetlands reserve program.
                      [(C) The grassland reserve program.
                      [(D) The conservation stewardship program.]
      (c) Funding.--
              (1) In general.--The Secretary may carry out the ACES
            program using funds made available to carry out each
            program under this title.
              (2) Exclusion.--Funds made available to carry out the
            conservation reserve program may not be used to carry
            out the ACES program.

               *       *       *       *       *       *       *

                     Subtitle G--State Technical Committees

    SEC. 1261. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES.

      (a) * * *
      (b) Standards.--[Not later than 180 days after the date of
    enactment of the Food, Conservation, and Energy Act of 2008,
    the Secretary shall develop] The Secretary shall review and
    update as necessary--
              (1) * * *

               *       *       *       *       *       *       *

             Subtitle H--Agricultural Conservation Easement Program

    SEC. 1265. ESTABLISHMENT AND PURPOSES.

      (a) Establishment.--The Secretary shall establish an
    agricultural conservation easement program for the conservation
    of eligible land and natural resources through easements or
    other interests in land.
      (b) Purposes.--The purposes of the program are to--
              (1) combine the purposes and coordinate the functions
            of the wetlands reserve program established under
            section 1237, the grassland reserve program established
            under section 1238N, and the farmland protection
            program established under section 1238I, as such
            sections were in effect on September 30, 2012;
              (2) restore, protect, and enhance wetlands on
            eligible land;
              (3) protect the agricultural use and related
            conservation values of eligible land by limiting
            nonagricultural uses of that land; and
              (4) protect grazing uses and related conservation
            values by restoring and conserving eligible land.

    SEC. 1265A. DEFINITIONS.

      In this subtitle:
              (1) Agricultural land easement.--The term
            ``agricultural land easement'' means an easement or
            other interest in eligible land that--
                      (A) is conveyed for the purpose of protecting
                    natural resources and the agricultural nature
                    of the land; and
                      (B) permits the landowner the right to
                    continue agricultural production and related
                    uses subject to an agricultural land easement
                    plan, as approved by the Secretary.
              (2) Eligible entity.--The term ``eligible entity''
            means--
                      (A) an agency of State or local government or
                    an Indian tribe (including a farmland
                    protection board or land resource council
                    established under State law); or
                      (B) an organization that is--
                              (i) organized for, and at all times
                            since the formation of the organization
                            has been operated principally for, 1 or
                            more of the conservation purposes
                            specified in clause (i), (ii), (iii),
                            or (iv) of section 170(h)(4)(A) of the
                            Internal Revenue Code of 1986;
                              (ii) an organization described in
                            section 501(c)(3) of that Code that is
                            exempt from taxation under section
                            501(a) of that Code; or
                              (iii) described in--
                                      (I) paragraph (1) or (2) of
                                    section 509(a) of that Code; or
                                      (II) section 509(a)(3) of
                                    that Code and is controlled by
                                    an organization described in
                                    section 509(a)(2) of that Code.
              (3) Eligible land.--The term ``eligible land'' means
            private or tribal land that is--
                      (A) in the case of an agricultural land
                    easement, agricultural land, including land on
                    a farm or ranch--
                              (i) that is subject to a pending
                            offer for purchase of an agricultural
                            land easement from an eligible entity;
                              (ii) that--
                                      (I) has prime, unique, or
                                    other productive soil;
                                      (II) contains historical or
                                    archaeological resources; or
                                      (III) the protection of which
                                    will further a State or local
                                    policy consistent with the
                                    purposes of the program; and
                              (iii) that is--
                                      (I) cropland;
                                      (II) rangeland;
                                      (III) grassland or land that
                                    contains forbs, or shrubland
                                    for which grazing is the
                                    predominate use;
                                      (IV) pastureland; or
                                      (V) nonindustrial private
                                    forest land that contributes to
                                    the economic viability of an
                                    offered parcel or serves as a
                                    buffer to protect such land
                                    from development;
                      (B) in the case of a wetland easement, a
                    wetland or related area, including--
                              (i) farmed or converted wetlands,
                            together with adjacent land that is
                            functionally dependent on that land, if
                            the Secretary determines it--
                                      (I) is likely to be
                                    successfully restored in a cost
                                    effective manner; and
                                      (II) will maximize the
                                    wildlife benefits and wetland
                                    functions and values, as
                                    determined by the Secretary in
                                    consultation with the Secretary
                                    of the Interior at the local
                                    level;
                              (ii) cropland or grassland that was
                            used for agricultural production prior
                            to flooding from the natural overflow
                            of--
                                      (I) a closed basin lake and
                                    adjacent land that is
                                    functionally dependent upon it,
                                    if the State or other entity is
                                    willing to provide 50 percent
                                    share of the cost of an
                                    easement;
                                      (II) a pothole and adjacent
                                    land that is functionally
                                    dependent on it;
                              (iii) farmed wetlands and adjoining
                            lands that--
                                      (I) are enrolled in the
                                    conservation reserve program;
                                      (II) have the highest wetland
                                    functions and values, as
                                    determined by the Secretary;
                                    and
                                      (III) are likely to return to
                                    production after they leave the
                                    conservation reserve program;
                              (iv) riparian areas that link
                            wetlands that are protected by
                            easements or some other device that
                            achieves the same purpose as an
                            easement; or
                              (v) other wetlands of an owner that
                            would not otherwise be eligible, if the
                            Secretary determines that the inclusion
                            of such wetlands in a wetland easement
                            would significantly add to the
                            functional value of the easement; or
                      (C) in the case of either an agricultural
                    land easement or wetland easement, other land
                    that is incidental to land described in
                    subparagraph (A) or (B), if the Secretary
                    determines that it is necessary for the
                    efficient administration of the easements under
                    this program.
              (4) Program.--The term ``program'' means the
            agricultural conservation easement program established
            by this subtitle.
              (5) Wetland easement.--The term ``wetland easement''
            means a reserved interest in eligible land that--
                      (A) is defined and delineated in a deed; and
                      (B) stipulates--
                              (i) the rights, title, and interests
                            in land conveyed to the Secretary; and
                              (ii) the rights, title, and interests
                            in land that are reserved to the
                            landowner.

    SEC. 1265B. AGRICULTURAL LAND EASEMENTS.

      (a) Availability of Assistance.--The Secretary shall
    facilitate and provide funding for--
              (1) the purchase by eligible entities of agricultural
            land easements and other interests in eligible land;
            and
              (2) technical assistance to provide for the
            conservation of natural resources pursuant to an
            agricultural land easement plan.
      (b) Cost-Share Assistance.--
              (1) In general.--The Secretary shall protect the
            agricultural use, including grazing, and related
            conservation values of eligible land through cost-share
            assistance to eligible entities for purchasing
            agricultural land easements.
              (2) Scope of assistance available.--
                      (A) Federal share.--An agreement described in
                    paragraph (4) shall provide for a Federal share
                    determined by the Secretary of an amount not to
                    exceed 50 percent of the fair market value of
                    the agricultural land easement or other
                    interest in land, as determined by the
                    Secretary using--
                              (i) the Uniform Standards of
                            Professional Appraisal Practice;
                              (ii) an area-wide market analysis or
                            survey; or
                              (iii) another industry-approved
                            method.
                      (B) Non-federal share.--
                              (i) In general.--Under the agreement,
                            the eligible entity shall provide a
                            share that is at least equivalent to
                            that provided by the Secretary.
                              (ii) Source of contribution.--An
                            eligible entity may include as part of
                            its share a charitable donation or
                            qualified conservation contribution (as
                            defined by section 170(h) of the
                            Internal Revenue Code of 1986) from the
                            private landowner if the eligible
                            entity contributes its own cash
                            resources in an amount that is at least
                            50 percent of the amount contributed by
                            the Secretary.
                      (C) Exception.--In the case of grassland of
                    special environmental significance, as
                    determined by the Secretary, the Secretary may
                    provide an amount not to exceed 75 percent of
                    the fair market value of the agricultural land
                    easement.
              (3) Evaluation and ranking of applications.--
                      (A) Criteria.--The Secretary shall establish
                    evaluation and ranking criteria to maximize the
                    benefit of Federal investment under the
                    program.
                      (B) Considerations.--In establishing the
                    criteria, the Secretary shall emphasize support
                    for--
                              (i) protecting agricultural uses and
                            related conservation values of the
                            land; and
                              (ii) maximizing the protection of
                            areas devoted to agricultural use.
                      (C) Bidding down.--If the Secretary
                    determines that 2 or more applications for
                    cost-share assistance are comparable in
                    achieving the purpose of the program, the
                    Secretary shall not assign a higher priority to
                    any of those applications solely on the basis
                    of lesser cost to the program.
              (4) Agreements with eligible entities.--
                      (A) In general.--The Secretary shall enter
                    into agreements with eligible entities to
                    stipulate the terms and conditions under which
                    the eligible entity is permitted to use cost-
                    share assistance provided under this section.
                      (B) Length of agreements.--An agreement shall
                    be for a term that is--
                              (i) in the case of an eligible entity
                            certified under the process described
                            in paragraph (5), a minimum of five
                            years; and
                              (ii) for all other eligible entities,
                            at least three, but not more than five
                            years.
                      (C) Minimum terms and conditions.--An
                    eligible entity shall be authorized to use its
                    own terms and conditions for agricultural land
                    easements so long as the Secretary determines
                    such terms and conditions--
                              (i) are consistent with the purposes
                            of the program;
                              (ii) permit effective enforcement of
                            the conservation purposes of such
                            easements;
                              (iii) include a right of enforcement
                            for the Secretary, that may be used
                            only if the terms of the easement are
                            not enforced by the holder of the
                            easement;
                              (iv) subject the land in which an
                            interest is purchased to an
                            agricultural land easement plan that--
                                      (I) describes the activities
                                    which promote the long-term
                                    viability of the land to meet
                                    the purposes for which the
                                    easement was acquired;
                                      (II) requires the management
                                    of grasslands according to a
                                    grasslands management plan; and
                                      (III) includes a conservation
                                    plan, where appropriate, and
                                    requires, at the option of the
                                    Secretary, the conversion of
                                    highly erodible cropland to
                                    less intensive uses; and
                              (v) include a limit on the impervious
                            surfaces to be allowed that is
                            consistent with the agricultural
                            activities to be conducted.
                      (D) Substitution of qualified projects.--An
                    agreement shall allow, upon mutual agreement of
                    the parties, substitution of qualified projects
                    that are identified at the time of the proposed
                    substitution.
                      (E) Effect of violation.--If a violation
                    occurs of a term or condition of an agreement
                    under this subsection--
                              (i) the Secretary may terminate the
                            agreement; and
                              (ii) the Secretary may require the
                            eligible entity to refund all or part
                            of any payments received by the entity
                            under the program, with interest on the
                            payments as determined appropriate by
                            the Secretary.
              (5) Certification of eligible entities.--
                      (A) Certification process.--The Secretary
                    shall establish a process under which the
                    Secretary may--
                              (i) directly certify eligible
                            entities that meet established
                            criteria;
                              (ii) enter into long-term agreements
                            with certified eligible entities; and
                              (iii) accept proposals for cost-share
                            assistance for the purchase of
                            agricultural land easements throughout
                            the duration of such agreements.
                      (B) Certification criteria.--In order to be
                    certified, an eligible entity shall demonstrate
                    to the Secretary that the entity will maintain,
                    at a minimum, for the duration of the
                    agreement--
                              (i) a plan for administering
                            easements that is consistent with the
                            purpose of this subtitle;
                              (ii) the capacity and resources to
                            monitor and enforce agricultural land
                            easements; and
                              (iii) policies and procedures to
                            ensure--
                                      (I) the long-term integrity
                                    of agricultural land easements
                                    on eligible land;
                                      (II) timely completion of
                                    acquisitions of such easements;
                                    and
                                      (III) timely and complete
                                    evaluation and reporting to the
                                    Secretary on the use of funds
                                    provided under the program.
                      (C) Review and revision.--
                              (i) Review.--The Secretary shall
                            conduct a review of eligible entities
                            certified under subparagraph (A) every
                            three years to ensure that such
                            entities are meeting the criteria
                            established under subparagraph (B).
                              (ii) Revocation.--If the Secretary
                            finds that the certified eligible
                            entity no longer meets the criteria
                            established under subparagraph (B), the
                            Secretary may--
                                      (I) allow the certified
                                    eligible entity a specified
                                    period of time, at a minimum
                                    180 days, in which to take such
                                    actions as may be necessary to
                                    meet the criteria; and
                                      (II) revoke the certification
                                    of the eligible entity, if
                                    after the specified period of
                                    time, the certified eligible
                                    entity does not meet such
                                    criteria.
      (c) Method of Enrollment.--The Secretary shall enroll
    eligible land under this section through the use of--
              (1) permanent easements; or
              (2) easements for the maximum duration allowed under
            applicable State laws.
      (d) Technical Assistance.--The Secretary may provide
    technical assistance, if requested, to assist in--
              (1) compliance with the terms and conditions of
            easements; and
              (2) implementation of an agricultural land easement
            plan.

    SEC. 1265C. WETLAND EASEMENTS.

      (a) Availability of Assistance.--The Secretary shall provide
    assistance to owners of eligible land to restore, protect, and
    enhance wetlands through--
              (1) wetland easements and related wetland easement
            plans; and
              (2) technical assistance.
      (b) Easements.--
              (1) Method of enrollment.--The Secretary shall enroll
            eligible land under this section through the use of--
                      (A) 30-year easements;
                      (B) permanent easements;
                      (C) easements for the maximum duration
                    allowed under applicable State laws; or
                      (D) as an option for Indian tribes only, 30-
                    year contracts (which shall be considered to be
                    30-year easements for the purposes of this
                    subtitle).
              (2) Limitations.--
                      (A) Ineligible land.--The Secretary may not
                    acquire easements on--
                              (i) land established to trees under
                            the conservation reserve program,
                            except in cases where the Secretary
                            determines it would further the
                            purposes of the program; and
                              (ii) farmed wetlands or converted
                            wetlands where the conversion was not
                            commenced prior to December 23, 1985.
                      (B) Changes in ownership.--No wetland
                    easement shall be created on land that has
                    changed ownership during the preceding 24-month
                    period unless--
                              (i) the new ownership was acquired by
                            will or succession as a result of the
                            death of the previous owner;
                              (ii)(I) the ownership change occurred
                            because of foreclosure on the land; and
                              (II) immediately before the
                            foreclosure, the owner of the land
                            exercises a right of redemption from
                            the mortgage holder in accordance with
                            State law; or
                              (iii) the Secretary determines that
                            the land was acquired under
                            circumstances that give adequate
                            assurances that such land was not
                            acquired for the purposes of placing it
                            in the program.
              (3) Evaluation and ranking of offers.--
                      (A) Criteria.--The Secretary shall establish
                    evaluation and ranking criteria to maximize the
                    benefit of Federal investment under the
                    program.
                      (B) Considerations.--When evaluating offers
                    from landowners, the Secretary may consider--
                              (i) the conservation benefits of
                            obtaining a wetland easement, including
                            the potential environmental benefits if
                            the land was removed from agricultural
                            production;
                              (ii) the cost-effectiveness of each
                            wetland easement, so as to maximize the
                            environmental benefits per dollar
                            expended;
                              (iii) whether the landowner or
                            another person is offering to
                            contribute financially to the cost of
                            the wetland easement to leverage
                            Federal funds; and
                              (iv) such other factors as the
                            Secretary determines are necessary to
                            carry out the purposes of the program.
                      (C) Priority.--The Secretary shall place
                    priority on acquiring wetland easements based
                    on the value of the wetland easement for
                    protecting and enhancing habitat for migratory
                    birds and other wildlife.
              (4) Agreement.--To be eligible to place eligible land
            into the program through a wetland easement, the owner
            of such land shall enter into an agreement with the
            Secretary to--
                      (A) grant an easement on such land to the
                    Secretary;
                      (B) authorize the implementation of a wetland
                    easement plan developed for the eligible land
                    under subsection (f);
                      (C) create and record an appropriate deed
                    restriction in accordance with applicable State
                    law to reflect the easement agreed to;
                      (D) provide a written statement of consent to
                    such easement signed by those holding a
                    security interest in the land;
                      (E) comply with the terms and conditions of
                    the easement and any related agreements; and
                      (F) permanently retire any existing base
                    history for the land on which the easement has
                    been obtained.
              (5) Terms and conditions of easement.--
                      (A) In general.--A wetland easement shall
                    include terms and conditions that--
                              (i) permit--
                                      (I) repairs, improvements,
                                    and inspections on the land
                                    that are necessary to maintain
                                    existing public drainage
                                    systems; and
                                      (II) owners to control public
                                    access on the easement areas
                                    while identifying access routes
                                    to be used for restoration
                                    activities and management and
                                    easement monitoring;
                              (ii) prohibit--
                                      (I) the alteration of
                                    wildlife habitat and other
                                    natural features of such land,
                                    unless specifically authorized
                                    by the Secretary;
                                      (II) the spraying of such
                                    land with chemicals or the
                                    mowing of such land, except
                                    where such spraying or mowing
                                    is authorized by the Secretary
                                    or is necessary--
                                              (aa) to comply with
                                            Federal or State
                                            noxious weed control
                                            laws;
                                              (bb) to comply with a
                                            Federal or State
                                            emergency pest
                                            treatment program; or
                                              (cc) to meet habitat
                                            needs of specific
                                            wildlife species;
                                      (III) any activities to be
                                    carried out on the owner's or
                                    successor's land that is
                                    immediately adjacent to, and
                                    functionally related to, the
                                    land that is subject to the
                                    easement if such activities
                                    will alter, degrade, or
                                    otherwise diminish the
                                    functional value of the
                                    eligible land; and
                                      (IV) the adoption of any
                                    other practice that would tend
                                    to defeat the purposes of the
                                    program, as determined by the
                                    Secretary;
                              (iii) provide for the efficient and
                            effective establishment of wildlife
                            functions and values; and
                              (iv) include such additional
                            provisions as the Secretary determines
                            are desirable to carry out the program
                            or facilitate the practical
                            administration thereof.
                      (B) Violation.--On the violation of the terms
                    or conditions of a wetland easement, the
                    wetland easement shall remain in force and the
                    Secretary may require the owner to refund all
                    or part of any payments received by the owner
                    under the program, together with interest
                    thereon as determined appropriate by the
                    Secretary.
                      (C) Compatible uses.--Land subject to a
                    wetland easement may be used for compatible
                    economic uses, including such activities as
                    hunting and fishing, managed timber harvest, or
                    periodic haying or grazing, if such use is
                    specifically permitted by the wetland easement
                    plan developed for the land under subsection
                    (f) and is consistent with the long-term
                    protection and enhancement of the wetland
                    resources for which the easement was
                    established.
                      (D) Reservation of grazing rights.--The
                    Secretary may include in the terms and
                    conditions of a wetland easement a provision
                    under which the owner reserves grazing rights
                    if--
                              (i) the Secretary determines that the
                            reservation and use of the grazing
                            rights--
                                      (I) is compatible with the
                                    land subject to the easement;
                                      (II) is consistent with the
                                    historical natural uses of the
                                    land and the long-term
                                    protection and enhancement
                                    goals for which the easement
                                    was established; and
                                      (III) complies with the
                                    wetland easement plan developed
                                    for the land under subsection
                                    (f); and
                              (ii) the agreement provides for a
                            commensurate reduction in the easement
                            payment to account for the grazing
                            value, as determined by the Secretary.
              (6) Compensation.--
                      (A) Determination.--
                              (i) Permanent easements.--The
                            Secretary shall pay as compensation for
                            a permanent wetland easement acquired
                            under the program an amount necessary
                            to encourage enrollment in the program,
                            based on the lowest of--
                                      (I) the fair market value of
                                    the land, as determined by the
                                    Secretary, using the Uniform
                                    Standards of Professional
                                    Appraisal Practice or an area-
                                    wide market analysis or survey;
                                      (II) the amount corresponding
                                    to a geographical cap, as
                                    determined by the Secretary in
                                    regulations; or
                                      (III) the offer made by the
                                    landowner.
                              (ii) 30-year easements.--Compensation
                            for a 30-year wetland easement shall be
                            not less than 50 percent, but not more
                            than 75 percent, of the compensation
                            that would be paid for a permanent
                            wetland easement.
                      (B) Form of payment.--Compensation for a
                    wetland easement shall be provided by the
                    Secretary in the form of a cash payment, in an
                    amount determined under subparagraph (A).
                      (C) Payment schedule.--
                              (i) Easements valued at $500,000 or
                            less.--For wetland easements valued at
                            $500,000 or less, the Secretary may
                            provide easement payments in not more
                            than 10 annual payments.
                              (ii) Easements valued at more than
                            $500,000.--For wetland easements valued
                            at more than $500,000, the Secretary
                            may provide easement payments in at
                            least 5, but not more than 10 annual
                            payments, except that, if the Secretary
                            determines it would further the
                            purposes of the program, the Secretary
                            may make a lump sum payment for such an
                            easement.
      (c) Easement Restoration.--
              (1) In general.--The Secretary shall provide
            financial assistance to owners of eligible land to
            carry out the establishment of conservation measures
            and practices and protect wetland functions and values,
            including necessary maintenance activities, as set
            forth in a wetland easement plan developed for the
            eligible land under subsection (f).
              (2) Payments.--The Secretary shall--
                      (A) in the case of a permanent wetland
                    easement, pay an amount that is not less than
                    75 percent, but not more than 100 percent, of
                    the eligible costs, as determined by the
                    Secretary; and
                      (B) in the case of a 30-year wetland
                    easement, pay an amount that is not less than
                    50 percent, but not more than 75 percent, of
                    the eligible costs, as determined by the
                    Secretary.
      (d) Technical Assistance.--
              (1) In general.--The Secretary shall assist owners in
            complying with the terms and conditions of wetland
            easements.
              (2) Contracts or agreements.--The Secretary may enter
            into 1 or more contracts with private entities or
            agreements with a State, non-governmental organization,
            or Indian tribe to carry out necessary restoration,
            enhancement, or maintenance of a wetland easement if
            the Secretary determines that the contract or agreement
            will advance the purposes of the program.
      (e) Wetland Enhancement Option.--The Secretary may enter into
    1 or more agreements with a State (including a political
    subdivision or agency of a State), nongovernmental
    organization, or Indian tribe to carry out a special wetland
    enhancement option that the Secretary determines would advance
    the purposes of program.
      (f) Administration.--
              (1) Wetland easement plan.--The Secretary shall
            develop a wetland easement plan for eligible lands
            subject to a wetland easement, which shall include
            practices and activities necessary to restore, protect,
            enhance, and maintain the enrolled lands.
              (2) Delegation of easement administration.--The
            Secretary may delegate--
                      (A) any of the easement management,
                    monitoring, and enforcement responsibilities of
                    the Secretary to other Federal or State
                    agencies that have the appropriate authority,
                    expertise, and resources necessary to carry out
                    such delegated responsibilities; and
                      (B) any of the easement management
                    responsibilities of the Secretary to other
                    conservation organizations if the Secretary
                    determines the organization has the appropriate
                    expertise and resources.
              (3) Payments.--
                      (A) Timing of payments.--The Secretary shall
                    provide payment for obligations incurred by the
                    Secretary under this section--
                              (i) with respect to any easement
                            restoration obligation under subsection
                            (c), as soon as possible after the
                            obligation is incurred; and
                              (ii) with respect to any annual
                            easement payment obligation incurred by
                            the Secretary, as soon as possible
                            after October 1 of each calendar year.
                      (B) Payments to others.--If an owner who is
                    entitled to a payment under this section dies,
                    becomes incompetent, is otherwise unable to
                    receive such payment, or is succeeded by
                    another person or entity who renders or
                    completes the required performance, the
                    Secretary shall make such payment, in
                    accordance with regulations prescribed by the
                    Secretary and without regard to any other
                    provision of law, in such manner as the
                    Secretary determines is fair and reasonable in
                    light of all of the circumstances.

    SEC. 1265D. ADMINISTRATION.

      (a) Ineligible Land.--The Secretary may not use program funds
    for the purposes of acquiring an easement on--
              (1) lands owned by an agency of the United States,
            other than land held in trust for Indian tribes;
              (2) lands owned in fee title by a State, including an
            agency or a subdivision of a State, or a unit of local
            government;
              (3) land subject to an easement or deed restriction
            which, as determined by the Secretary, provides similar
            protection as would be provided by enrollment in the
            program; or
              (4) lands where the purposes of the program would be
            undermined due to on-site or off-site conditions, such
            as risk of hazardous substances, proposed or existing
            rights of way, infrastructure development, or adjacent
            land uses.
      (b) Priority.--In evaluating applications under the program,
    the Secretary may give priority to land that is currently
    enrolled in the conservation reserve program in a contract that
    is set to expire within 1 year and--
              (1) in the case of an agricultural land easement, is
            grassland that would benefit from protection under a
            long-term easement; and
              (2) in the case of a wetland easement, is a wetland
            or related area with the highest functions and value
            and is likely to return to production after the land
            leaves the conservation reserve program.
      (c) Subordination, Exchange, Modification, and Termination.--
              (1) In general.--The Secretary may subordinate,
            exchange, modify, or terminate any interest in land, or
            portion of such interest, administered by the
            Secretary, either directly or on behalf of the
            Commodity Credit Corporation under the program if the
            Secretary determines that--
                      (A) it is in the Federal Government's
                    interest to subordinate, exchange, modify, or
                    terminate the interest in land;
                      (B) the subordination, exchange,
                    modification, or termination action--
                              (i) will address a compelling public
                            need for which there is no practicable
                            alternative; or
                              (ii) such action will further the
                            practical administration of the
                            program; and
                      (C) the subordination, exchange,
                    modification, or termination action will result
                    in comparable conservation value and equivalent
                    or greater economic value to the United States.
              (2) Consultation.--The Secretary shall work with the
            owner, and eligible entity if applicable, to address
            any subordination, exchange, modification, or
            termination of the interest, or portion of such
            interest, in land.
              (3) Notice.--At least 90 days before taking any
            termination action described in paragraph (1), the
            Secretary shall provide written notice of such action
            to the Committee on Agriculture of the House of
            Representatives and the Committee on Agriculture,
            Nutrition, and Forestry of the Senate.
      (d) Land Enrolled in Conservation Reserve Program.--The
    Secretary may terminate or modify a contract entered into under
    section 1231(a) if eligible land that is subject to such
    contract is transferred into the program.
      (e) Allocation of Funds for Agricultural Land Easements.--Of
    the funds made available under section 1241 to carry out the
    program for a fiscal year, the Secretary shall, to the extent
    practicable, use for agricultural land easements--
              (1) no less than 40 percent in each of fiscal years
            2013 through 2016; and
              (2) no less than 50 percent in fiscal year 2017.

             Subtitle I--Regional Conservation Partnership Program

    SEC. 1271. ESTABLISHMENT AND PURPOSES.

      (a) Establishment.--The Secretary shall establish a regional
    conservation partnership program to implement eligible
    activities on eligible land through--
              (1) partnership agreements with eligible partners;
            and
              (2) contracts with producers.
      (b) Purposes.--The purposes of the program are as follows:
              (1) To use covered programs to accomplish purposes
            and functions similar to those of the following
            programs, as in effect on September 30, 2012:
                      (A) The agricultural water enhancement
                    program established under section 1240I.
                      (B) The Chesapeake Bay watershed program
                    established under section 1240Q.
                      (C) The cooperative conservation partnership
                    initiative established under section 1243.
                      (D) The Great Lakes basin program for soil
                    erosion and sediment control established under
                    section 1240P.
              (2) To further the conservation, restoration, and
            sustainable use of soil, water, wildlife, and related
            natural resources on eligible land on a regional or
            watershed scale.
              (3) To encourage eligible partners to cooperate with
            producers in--
                      (A) meeting or avoiding the need for
                    national, State, and local natural resource
                    regulatory requirements related to production
                    on eligible land; and
                      (B) implementing projects that will result in
                    the carrying out of eligible activities that
                    affect multiple agricultural or nonindustrial
                    private forest operations on a local, regional,
                    State, or multi-State basis.

    SEC. 1271A. DEFINITIONS.

      In this subtitle:
              (1) Covered program.--The term ``covered program''
            means the following:
                      (A) The agricultural conservation easement
                    program.
                      (B) The environmental quality incentives
                    program.
                      (C) The conservation stewardship program.
              (2) Eligible activity.--The term ``eligible
            activity'' means any of the following conservation
            activities:
                      (A) Water quality or quantity conservation,
                    restoration, or enhancement projects relating
                    to surface water and groundwater resources,
                    including--
                              (i) the conversion of irrigated
                            cropland to the production of less
                            water-intensive agricultural
                            commodities or dryland farming; or
                              (ii) irrigation system improvement
                            and irrigation efficiency enhancement.
                      (B) Drought mitigation.
                      (C) Flood prevention.
                      (D) Water retention.
                      (E) Air quality improvement.
                      (F) Habitat conservation, restoration, and
                    enhancement.
                      (G) Erosion control and sediment reduction.
                      (H) Other related activities that the
                    Secretary determines will help achieve
                    conservation benefits.
              (3) Eligible land.--The term ``eligible land'' means
            land on which agricultural commodities, livestock, or
            forest-related products are produced, including--
                      (A) cropland;
                      (B) grassland;
                      (C) rangeland;
                      (D) pastureland;
                      (E) nonindustrial private forest land; and
                      (F) other land incidental to agricultural
                    production (including wetlands and riparian
                    buffers) on which significant natural resource
                    issues could be addressed under the program.
              (4) Eligible partner.--The term ``eligible partner''
            means any of the following:
                      (A) An agricultural or silvicultural producer
                    association or other group of producers.
                      (B) A State or unit of local government.
                      (C) An Indian tribe.
                      (D) A farmer cooperative.
                      (E) A water district, irrigation district,
                    rural water district or association, or other
                    organization with specific water delivery
                    authority to producers on agricultural land.
                      (F) An institution of higher education.
                      (G) An organization with an established
                    history of working cooperatively with producers
                    on agricultural land, as determined by the
                    Secretary, to address--
                              (i) local conservation priorities
                            related to agricultural production,
                            wildlife habitat development, or
                            nonindustrial private forest land
                            management; or
                              (ii) critical watershed-scale soil
                            erosion, water quality, sediment
                            reduction, or other natural resource
                            issues.
              (5) Partnership agreement.--The term ``partnership
            agreement'' means an agreement entered into under
            section 1271B between the Secretary and an eligible
            partner.
              (6) Program.--The term ``program'' means the regional
            conservation partnership program established by this
            subtitle.

    SEC. 1271B. REGIONAL CONSERVATION PARTNERSHIPS.

      (a) Partnership Agreements Authorized.--The Secretary may
    enter into a partnership agreement with an eligible partner to
    implement a project that will assist producers with installing
    and maintaining an eligible activity on eligible land.
      (b) Length.--A partnership agreement shall be for a period
    not to exceed 5 years, except that the Secretary may extend the
    agreement one time for up to 12 months when an extension is
    necessary to meet the objectives of the program.
      (c) Duties of Partners.--
              (1) In general.--Under a partnership agreement, the
            eligible partner shall--
                      (A) define the scope of a project,
                    including--
                              (i) the eligible activities to be
                            implemented;
                              (ii) the potential agricultural or
                            nonindustrial private forest land
                            operations affected;
                              (iii) the local, State, multi-State,
                            or other geographic area covered; and
                              (iv) the planning, outreach,
                            implementation, and assessment to be
                            conducted;
                      (B) conduct outreach to producers for
                    potential participation in the project;
                      (C) at the request of a producer, act on
                    behalf of a producer participating in the
                    project in applying for assistance under
                    section 1271C;
                      (D) leverage financial or technical
                    assistance provided by the Secretary with
                    additional funds to help achieve the project
                    objectives;
                      (E) conduct an assessment of the project's
                    effects; and
                      (F) at the conclusion of the project, report
                    to the Secretary on its results and funds
                    leveraged.
              (2) Contribution.--An eligible partner shall provide
            a significant portion of the overall costs of the scope
            of the project that is the subject of the agreement
            entered into under subsection (a), as determined by the
            Secretary.
      (d) Applications.--
              (1) Competitive process.--The Secretary shall conduct
            a competitive process to select applications for
            partnership agreements and may assess and rank
            applications with similar conservation purposes as a
            group.
              (2) Criteria used.--In carrying out the process
            described in paragraph (1), the Secretary shall make
            public the criteria used in evaluating applications.
              (3) Content.--An application to the Secretary shall
            include a description of--
                      (A) the scope of the project, as described in
                    subsection (c)(1)(A);
                      (B) the plan for monitoring, evaluating, and
                    reporting on progress made towards achieving
                    the project's objectives;
                      (C) the program resources requested for the
                    project, including the covered programs to be
                    used and estimated funding needed from the
                    Secretary;
                      (D) eligible partners collaborating to
                    achieve project objectives, including their
                    roles, responsibilities, capabilities, and
                    financial contribution; and
                      (E) any other elements the Secretary
                    considers necessary to adequately evaluate and
                    competitively select applications for funding
                    under the program.
              (4) Priority to certain applications.--The Secretary
            may give a higher priority to applications that--
                      (A) assist producers in meeting or avoiding
                    the need for a natural resource regulatory
                    requirement;
                      (B) have a high percentage of eligible
                    producers in the area to be covered by the
                    agreement;
                      (C) significantly leverage non-Federal
                    financial and technical resources and
                    coordinate with other local, State, or national
                    efforts;
                      (D) deliver high percentages of applied
                    conservation to address conservation priorities
                    or regional, State, or national conservation
                    initiatives;
                      (E) provide innovation in conservation
                    methods and delivery, including outcome-based
                    performance measures and methods; or
                      (F) meet other factors that are important for
                    achieving the purposes of the program, as
                    determined by the Secretary.

    SEC. 1271C. ASSISTANCE TO PRODUCERS.

      (a) In General.--The Secretary shall enter into contracts
    with producers to provide financial and technical assistance
    to--
              (1) producers participating in a project with an
            eligible partner, as described in section 1271B; or
              (2) producers that fit within the scope of a project
            described in section 1271B or a critical conservation
            area designated under section 1271F, but who are
            seeking to implement an eligible activity on eligible
            land independent of a partner.
      (b) Terms and Conditions.--
              (1) Consistency with program rules.--Except as
            provided in paragraph (2), the Secretary shall ensure
            that the terms and conditions of a contract under this
            section are consistent with the applicable rules of the
            covered programs to be used as part of the project, as
            described in the application under section
            1271B(d)(3)(C).
              (2) Adjustments.--Except with respect to statutory
            program requirements governing appeals, payment
            limitations, and conservation compliance, the Secretary
            may adjust the discretionary program rules of a covered
            program--
                      (A) to provide a simplified application and
                    evaluation process; and
                      (B) to better reflect unique local
                    circumstances and purposes if the Secretary
                    determines such adjustments are necessary to
                    achieve the purposes of the program.
      (c) Payments.--
              (1) In general.--In accordance with statutory
            requirements of the covered programs involved, the
            Secretary may make payments to a producer in an amount
            determined by the Secretary to be necessary to achieve
            the purposes of the program.
              (2) Payments to producers in states with water
            quantity concerns.--The Secretary may provide payments
            to producers participating in a project that addresses
            water quantity concerns for a period of five years in
            an amount sufficient to encourage conversion from
            irrigated farming to dryland farming.
              (3) Waiver authority.--To assist in the
            implementation of the program, the Secretary may waive
            the applicability of the limitation in section
            1001D(b)(2) of this Act for participating producers if
            the Secretary determines that the waiver is necessary
            to fulfill the objectives of the program.

    SEC. 1271D. FUNDING.

      (a) Availability of Funds.--The Secretary shall use
    $100,000,000 of the funds of the Commodity Credit Corporation
    for each of fiscal years 2013 through 2017 to carry out the
    program.
      (b) Duration of Availability.--Funds made available under
    subsection (a) shall remain available until expended.
      (c) Additional Funding and Acres.--
              (1) In general.--In addition to the funds made
            available under subsection (a), the Secretary shall
            reserve 6 percent of the funds and acres made available
            for a covered program for each of fiscal years 2013
            through 2017 in order to ensure additional resources
            are available to carry out this program.
              (2) Unused funds and acres.--Any funds or acres
            reserved under paragraph (1) for a fiscal year from a
            covered program that are not obligated under this
            program by April 1 of that fiscal year shall be
            returned for use under the covered program.
      (d) Allocation of Funding.--Of the funds and acres made
    available for the program under subsections (a) and (c), the
    Secretary shall allocate--
              (1) 25 percent of the funds and acres to projects
            based on a State competitive process administered by
            the State Conservationist, with the advice of the State
            technical committee established under subtitle G;
              (2) 50 percent of the funds and acres to projects
            based on a national competitive process to be
            established by the Secretary; and
              (3) 25 percent of the funds and acres to projects for
            the critical conservation areas designated under
            section 1271F.
      (e) Limitation on Administrative Expenses.--None of the funds
    made available under the program may be used to pay for the
    administrative expenses of eligible partners.

    SEC. 1271E. ADMINISTRATION.

      (a) Disclosure.--In addition to the criteria used in
    evaluating applications as described in section 1271B(d)(2),
    the Secretary shall make publicly available information on
    projects selected through the competitive process described in
    section 1271B(d)(1).
      (b) Reporting.--Not later than December 31, 2013, and every
    two years thereafter, the Secretary shall submit to the
    Committee on Agriculture of the House of Representatives and
    the Committee on Agriculture, Nutrition, and Forestry of the
    Senate a report on the status of projects funded under the
    program, including--
              (1) the number and types of eligible partners and
            producers participating in the partnership agreements
            selected;
              (2) the number of producers receiving assistance; and
              (3) total funding committed to projects, including
            from Federal and non-Federal resources.

    SEC. 1271F. CRITICAL CONSERVATION AREAS.

      (a) In General.--In administering funds under section
    1271D(d)(3), the Secretary shall select applications for
    partnership agreements and producer contracts within critical
    conservation areas designated under this section.
      (b) Critical Conservation Area Designations.--
              (1) Priority.--In designating critical conservation
            areas under this section, the Secretary shall give
            priority to geographical areas based on the degree to
            which the geographical area--
                      (A) includes multiple States with significant
                    agricultural production;
                      (B) is covered by an existing regional,
                    State, binational, or multistate agreement or
                    plan that has established objectives, goals,
                    and work plans and is adopted by a Federal,
                    State, or regional authority;
                      (C) would benefit from water quality
                    improvement, including through reducing
                    erosion, promoting sediment control, and
                    addressing nutrient management activities
                    affecting large bodies of water of regional,
                    national, or international significance;
                      (D) would benefit from water quantity
                    improvement, including improvement relating
                    to--
                              (i) groundwater, surface water,
                            aquifer, or other water sources; or
                              (ii) a need to promote water
                            retention and flood prevention; or
                      (E) contains producers that need assistance
                    in meeting or avoiding the need for a natural
                    resource regulatory requirement that could have
                    a negative economic impact on agricultural
                    operations within the area.
              (2) Limitation.--The Secretary may not designate more
            than 8 geographical areas as critical conservation
            areas under this section.
      (c) Administration.--
              (1) In general.--Except as provided in paragraph (2),
            the Secretary shall administer any partnership
            agreement or producer contract under this section in a
            manner that is consistent with the terms of the
            program.
              (2) Relationship to existing activity.--The Secretary
            shall, to the maximum extent practicable, ensure that
            eligible activities carried out in critical
            conservation areas designated under this section
            complement and are consistent with other Federal and
            State programs and water quality and quantity
            strategies.
              (3) Additional authority.--For a critical
            conservation area described in subsection (b)(1)(D),
            the Secretary may use authorities under the Watershed
            Protection and Flood Prevention Act (16 U.S.C. 1001 et
            seq.), other than section 14 of such Act (16 U.S.C.
            1012), to carry out projects for the purposes of this
            section.

               *       *       *       *       *       *       *

    TITLE XIII--CREDIT

               *       *       *       *       *       *       *

          NONPROFIT NATIONAL RURAL DEVELQPMENT AND FINANCECORPORATIONS

      Sec. 1323. (a) * * *
      (b)(1) * * *
      (2) All funds authorized under the Rural Development Loan
    Fund, including those on deposit and available upon date of
    enactment, under sections 623 and 633 of the Community Economic
    Development Act of 1981 (42 U.S.C. 9801 et seq.) shall be
    transferred to the Secretary provided that--
              (A) all funds on deposit and available on date of
            enactment shall be used for the purpose of making
            grants under paragraph(1) and shall remain available
            until expended; and
              (B) notwithstanding any other provision of law, all
            loans tointermediary borrowers made prior to date of
            enactment, shallupon date of enactment, for the life of
            such loan, bear a rate ofinterest not to exceed that in
            effect upon the date of issuance ofsuch loans; [and].
              [(C) notwithstanding paragraph (1), all funds other
            than funds to which subparagraph (A) applies shall be
            used by the Secretary to make loans--
                      [(i) to the entities;
                      [(ii) for the purposes; and
                      [(iii) subject to the terms and conditions;]

               *       *       *       *       *       *       *

                                  ----------

    SECTION 902 OF THE TRADE SANCTIONS REFORM AND EXPORT ENHANCEMENT ACT OF
                                      2000

    SEC. 902. DEFINITIONS

      In this title:
              (1) * * *
              (2) Agricultural program..--The term ``agricultural
            program'' means--
                      (A) * * *

               *       *       *       *       *       *       *

                      [(D) the dairy export incentive program
                    administered under section 153 of the Food
                    Security Act of 1985 (15 U.S.C. 713a-14);]
                      [(E)] (D) any commercial export sale of
                    agricultural commodities; or
                      [(F)] (E) any export financing (including
                    credits or credit guarantees) provided by the
                    United States Government for agricultural
                    commodities.

               *       *       *       *       *       *       *

                                  ----------

                    SECTION 3 OF THE ACT OF AUGUST 13, 1968

                              (Public Law 90-484)

             AN ACT To provide indemnity payments to dairy farmers.

      Sec. 3.The authority granted under this Act shall expire on
    September 30, [2012] 2017.

               *       *       *       *       *       *       *

                                  ----------

                   DAIRY PRODUCTION STABILIZATION ACT OF 1983

    TITLE I--DAIRY

               *       *       *       *       *       *       *

    Subtitle B--Dairy Promotion Program

               *       *       *       *       *       *       *

                            REQUIRED TERMS IN ORDERS

      Sec. 113. Any order issued under this subtitle shall contain
    terms and conditions as follows:
      (a) * * *

               *       *       *       *       *       *       *

      (e) Budgets.--
              (1) * * *
              (2) Foreign market efforts.--The order shall
            authorize the Board to expend in the maintenance and
            expansion of foreign markets an amount not to exceed
            the amount collected from United States producers for a
            fiscal year. Of those funds, for each of the 2002
            through [2012] 2017 fiscal years, the Board's budget
            may provide for the expenditure of revenues available
            to the Board to develop international markets for, and
            to promote within such markets, the consumption of
            dairy products produced or manufactured in the United
            States.

               *       *       *       *       *       *       *

                                  ----------

                            ACT OF FEBRUARY 20, 2003

                               (Public Law 108-7)

     AN ACT Making consolidated appropriations for the fiscal year ending
                  September 30, 2003, and for other purposes.

               *       *       *       *       *       *       *
           DIVISION A--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG
    ADMINISTRATION, AND RELATED AGENCIES PROGRAMS APPROPRIATIONS, 2003

               *       *       *       *       *       *       *

    TITLE VII--GENERAL PROVISIONS

               *       *       *       *       *       *       *

      SEC. 767. (a) Notwithstanding any other provision of law, for
    purposes of administering [sections 1101 and 1102 of Public Law
    107-171] subtitle A of title I of the Federal Agriculture
    Reform and Risk Management Act of 2012, acreage planted to, or
    prevented from being planted to, popcorn shall be considered as
    acreage planted to, or prevented from being planted to, corn:
    Provided, That if a farm program payment yield for corn is
    otherwise established for a farm under [such section 1102] such
    subtitle, the same yield shall be used for the acreage on the
    farm planted to, or prevented from being planted to, popcorn:
    Provided further, That with respect to all other farms, the
    farm program payment yield for such popcorn acreage shall be
    established by the Secretary on a fair and equitable basis to
    reflect the farm program payment yields for corn on similar
    farms in the area.
      [(b) This section shall take effect on October 1, 2003.]
      (b) This section, as amended by section 1608(c) of the
    Federal Agriculture Reform and Risk Management Act of 2012,
    shall take effect beginning with the 2013 crop year.

               *       *       *       *       *       *       *

                                  ----------

                 WATERSHED PROTECTION AND FLOOD PREVENTION ACT

               *       *       *       *       *       *       *
    SEC. 14. REHABILITATION OF STRUCTURAL MEASURES NEAR, AT, OR PAST THEIR
                        EVALUATED LIFE EXPECTANCY.

      (a) * * *

               *       *       *       *       *       *       *

      (h) Funding.--
              (1) Funds of commodity credit corporation.--In
            carrying out this section, of the funds of the
            Commodity Credit Corporation, the Secretary shall make
            available, to remain available until expended--
                      (A) * * *

               *       *       *       *       *       *       *

                      (E) $65,000,000 for fiscal year 2007[; and];
                      (F) $0 for fiscal year 2008[.];
                      (G) $100,000,000 for fiscal year 2009, to be
                    available until expended[.]; and
                      (H) $250,000,000 for fiscal year 2013, to
                    remain available until expended.
              (2) Authorization of appropriations.--In addition to
            amounts made available under paragraph (1), there are
            authorized to be appropriated to the Secretary to carry
            out this section, to remain available until expended--
                      (A) * * *

               *       *       *       *       *       *       *

                      (E) $85,000,000 for each of fiscal years 2008
                    through [2012] 2017.

               *       *       *       *       *       *       *

                                  ----------

                           FEDERAL CROP INSURANCE ACT

    Subtitle A--Federal Crop Insurance Act

               *       *       *       *       *       *       *

    SEC. 502. PURPOSE AND DEFINITIONS.

      (a) * * *
      (b) Definitions.--As used in this subtitle:
              (1) * * *

               *       *       *       *       *       *       *

              (3) Beginning farmer or rancher.--The term
            ``beginning farmer or rancher'' means a farmer or
            rancher who has not actively operated and managed a
            farm or ranch with a bona fide insurable interest in a
            crop or livestock as an owner-operator, landlord,
            tenant, or sharecropper for more than 5 crop years, as
            determined by the Secretary.
              [(3)] (4) Board.--The term ``Board'' means the Board
            of Directors of the Corporation established under
            section 505(a).
              [(4)] (5) Corporation.--The term ``Corporation''
            means the Federal Crop Insurance Corporation
            established under section 503.
              [(5)] (6) Department.--The term ``Department'' means
            the United States Department of Agriculture.
              [(6)] (7) Loss ratio.--The term ``loss ratio'' means
            the ratio of all sums paid by the Corporation as
            indemnities under any eligible crop insurance policy to
            that portion of the premium designated for anticipated
            losses and a reasonable reserve, other than that
            portion of the premium designated for operating and
            administrative expenses.
              [(7)] (8) Organic crop.--The term ``organic crop''
            means an agricultural commodity that is organically
            produced consistent with section 2103 of the Organic
            Foods Production Act of 1990 (7 U.S.C. 6502).
              [(8)] (9) Secretary.--The term ``Secretary'' means
            the Secretary of Agriculture.
              [(9)] (10) Transitional yield.--The term
            ``transitional yield'' means the maximum average
            production per acre or equivalent measure that is
            assigned to acreage for a crop year by the Corporation
            in accordance with the regulations of the Corporation
            whenever the producer fails--
                      (A) * * *

               *       *       *       *       *       *       *

      (c) Protection of Confidential Information.--
              (1) * * *

               *       *       *       *       *       *       *

              (4) Information.--
                      (A) Request.--Subject to subparagraph (B),
                    the Farm Service Agency shall, in a timely
                    manner, provide to an agent or an approved
                    insurance provider authorized by the producer
                    any information (including Farm Service Agency
                    Form 578s (or any successor form) or maps (or
                    any corrections to those forms or maps) that
                    may assist the agent or approved insurance
                    provider in insuring the producer under a
                    policy or plan of insurance under this
                    subtitle.
                      (B) Privacy.--Except as provided in
                    subparagraph (C), an agent or approved
                    insurance provider that receives the
                    information of a producer pursuant to
                    subparagraph (A) shall treat the information in
                    accordance with paragraph (1).
                      (C) Sharing.--Nothing in this section
                    prohibits the sharing of the information of a
                    producer pursuant to subparagraph (A) between
                    the agent and the approved insurance provider
                    of the producer.

               *       *       *       *       *       *       *

    SEC. 508. CROP INSURANCE.

      (a) Authority to Offer Insurance.--
              (1) * * *

               *       *       *       *       *       *       *

              (9) Premium adjustments.--
                      (A) * * *
                      (B) Exceptions.--Subparagraph (A) does not
                    apply with respect to--
                              (i) a payment authorized under
                            subsection (b)(5)(B); or
                              [(ii) a performance-based discount
                            authorized under subsection (d)(3); or]
                              [(iii)] (ii) a patronage dividend, or
                            similar payment, that is paid--
                                      (I) * * *

               *       *       *       *       *       *       *

                      (C) Publication of violations.--
                              (i) Publication required.--Subject to
                            clause (ii), the Corporation shall
                            publish in a timely manner on the
                            website of the Risk Management Agency
                            information regarding each violation of
                            this paragraph, including any sanctions
                            imposed in response to the violation,
                            in sufficient detail so that the
                            information may serve as effective
                            guidance to approved insurance
                            providers, agents, and producers.
                              (ii) Protection of privacy.--In
                            providing information under clause (i)
                            regarding violations of this paragraph,
                            the Corporation shall redact the
                            identity of the persons and entities
                            committing the violations in order to
                            protect their privacy.

               *       *       *       *       *       *       *

      (b) Catastrophic Risk Protection.--
              (1) * * *

               *       *       *       *       *       *       *

              (5) Administrative fee.--
                      (A) * * *

               *       *       *       *       *       *       *

                      (E) Waiver of fee.--The Corporation shall
                    waive the amounts required under this paragraph
                    for limited resource farmers and beginning
                    farmers or ranchers, as defined by the
                    Corporation.

               *       *       *       *       *       *       *

              [(7) Eligibility for department programs.--
                      [(A) In general.--Effective for the spring-
                    planted 1996 and subsequent crops (and fall-
                    planted 1996 crops at the option of the
                    Secretary), to be eligible for any payment or
                    loan under the Agricultural Market Transition
                    Act, for the conservation reserve program, or
                    for any benefit described in section 371 of the
                    Consolidated Farm and Rural Development Act (7
                    U.S.C. 2008f), a person shall--
                              [(i) obtain at least the catastrophic
                            level of insurance for each crop of
                            economic significance in which the
                            person has an interest; or
                              [(ii) provide a written waiver to the
                            Secretary that waives any eligibility
                            for emergency crop loss assistance in
                            connection with the crop.
                      [(B) Definition of crop of economic
                    significance.--As used in this paragraph, the
                    term ``crop of economic significance'' means a
                    crop that has contributed, or is expected to
                    contribute, 10 percent or more of the total
                    expected value of all crops grown by the
                    producer.]
              [(8)] (7) Limitation due to risk.--The Corporation
            may limit catastrophic risk coverage in any county or
            area, or on any farm, on the basis of the insurance
            risk concerned.
              [(9)] (8) Transitional coverage for 1995 crops.--
            Effective only for a 1995 crop planted or for which
            insurance attached prior to January 1, 1995, the
            Corporation shall allow producers of the crops until
            not later than the end of the 180-day period beginning
            on the date of enactment of the Federal Crop Insurance
            Reform Act of 1994 to obtain catastrophic risk
            protection for the crop. On enactment of such Act, a
            producer who made timely purchases of a crop insurance
            policy before the date of enactment of such Act, under
            the provisions of this subtitle then in effect, shall
            be eligible for the same benefits to which a producer
            would be entitled under comparable additional coverage
            under subsection (c).
              [(10)] (9) Simplification.--
                      (A) * * *

               *       *       *       *       *       *       *

              [(11)] (10) Loss adjustment.--The rate for
            reimbursing an approved insurance provider or agent for
            expenses incurred by the approved insurance provider or
            agent for loss adjustment in connection with a policy
            of catastrophic risk protection shall not exceed 6
            percent of the premium for catastrophic risk protection
            that is used to define loss ratio.
      (c) General Coverage Levels.--
              (1) * * *

               *       *       *       *       *       *       *

              [(3) Yield and loss basis.--A producer shall have the
            option of purchasing additional coverage based on an
            individual yield and loss basis or on an area yield and
            loss basis, if both options are offered by the
            Corporation.
              [(4) Level of coverage.--The level of coverage shall
            be dollar denominated and may be purchased at any level
            not to exceed 85 percent of the individual yield or 95
            percent of the area yield (as determined by the
            Corporation). Not later than the beginning of the 1996
            crop year, the Corporation shall provide producers with
            information on catastrophic risk and additional
            coverage in terms of dollar coverage (within the
            allowable limits of coverage provided in this
            paragraph).]
              (3) Yield and loss basis options.--A producer shall
            have the option of purchasing additional coverage based
            on--
                      (A)(i) an individual yield and loss basis; or
                      (ii) an area yield and loss basis;
                      (B) an individual yield and loss basis,
                    supplemented with coverage based on an area
                    yield and loss basis to cover a part of the
                    deductible under the individual yield and loss
                    policy, as described in paragraph (4)(C); or
                      (C) a margin basis alone or in combination
                    with the coverages available in subparagraph
                    (A) or (B).
              (4) Level of coverage.--
                      (A) Dollar denomination and percentage of
                    yield.--Except as provided in subparagraph (C),
                    the level of coverage--
                              (i) shall be dollar denominated; and
                              (ii) may be purchased at any level
                            not to exceed 85 percent of the
                            individual yield or 95 percent of the
                            area yield (as determined by the
                            Corporation).
                      (B) Information.--The Corporation shall
                    provide producers with information on
                    catastrophic risk and additional coverage in
                    terms of dollar coverage (within the allowable
                    limits of coverage provided in this paragraph).
                      (C) Supplemental coverage option.--
                              (i) In general.--Notwithstanding
                            subparagraph (A), in the case of the
                            supplemental coverage option described
                            in paragraph (3)(B), the Corporation
                            shall offer producers the opportunity
                            to purchase coverage in combination
                            with a policy or plan of insurance
                            offered under this subtitle that would
                            allow indemnities to be paid to a
                            producer equal to a part of the
                            deductible under the policy or plan of
                            insurance--
                                      (I) at a county-wide level to
                                    the fullest extent practicable;
                                    or
                                      (II) in counties that lack
                                    sufficient data, on the basis
                                    of such larger geographical
                                    area as the Corporation
                                    determines to provide
                                    sufficient data for purposes of
                                    providing the coverage.
                              (ii) Trigger.--Coverage offered under
                            paragraph (3)(B) and clause (i) shall
                            be triggered only if the losses in the
                            area exceed 10 percent of normal levels
                            (as determined by the Corporation).
                              (iii) Coverage.--Subject to the
                            trigger described in clause (ii),
                            coverage offered under paragraph (3)(B)
                            and clause (i) shall not exceed the
                            difference between--
                                      (I) 90 percent; and
                                      (II) the coverage level
                                    selected by the producer for
                                    the underlying policy or plan
                                    of insurance.
                              (iv) Ineligible crops and acres.--
                            Crops for which the producer has
                            elected under section 1107(c)(1) of the
                            Federal Agriculture Reform and Risk
                            Management Act of 2012 to receive
                            revenue loss coverage and acres that
                            are enrolled in the stacked income
                            protection plan under section 508B
                            shall not be eligible for supplemental
                            coverage under this subparagraph.
                              (v) Calculation of premium.--
                            Notwithstanding subsection (d), the
                            premium for coverage offered under
                            paragraph (3)(B) and clause (i) shall--
                                      (I) be sufficient to cover
                                    anticipated losses and a
                                    reasonable reserve; and
                                      (II) include an amount for
                                    operating and administrative
                                    expenses established in
                                    accordance with subsection
                                    (k)(4)(F).

               *       *       *       *       *       *       *

      (d) Premiums.--
              (1) * * *
              (2) Premium amounts.--The premium amounts for
            catastrophic risk protection under subsection (b) and
            additional coverage under subsection (c) shall be fixed
            as follows:
                      [(A) In the case of catastrophic risk
                    protection, the amount of the premium shall be
                    sufficient to cover anticipated losses and a
                    reasonable reserve.]
                      (A) In the case of catastrophic risk
                    protection, the amount of the premium
                    established by the Corporation for each crop
                    for which catastrophic risk protection is
                    available shall be reduced by the percentage
                    equal to the difference between the average
                    loss ratio for the crop and 100 percent, plus a
                    reasonable reserve.

               *       *       *       *       *       *       *

              [(3) Performance-based discount.--The Corporation may
            provide a performance-based premium discount for a
            producer of an agricultural commodity who has good
            insurance or production experience relative to other
            producers of that agricultural commodity in the same
            area, as determined by the Corporation.]
              [(4)] (3) Billing date for premiums.--Effective
            beginning with the 2012 reinsurance year, the
            Corporation shall establish August 15 as the billing
            date for premiums.
      (e) Payment of Portion of Premium by Corporation.--
              (1) * * *
              (2) Amount of payment.--Subject to paragraph (3), the
            amount of the premium to be paid by the Corporation
            shall be as follows:
                      (A) * * *

               *       *       *       *       *       *       *

                      (H) In the case of the supplemental coverage
                    option authorized in subsection (c)(4)(C), the
                    amount shall be equal to the sum of--
                              (i) 70 percent of the additional
                            premium associated with the coverage;
                            and
                              (ii) the amount determined under
                            subsection (c)(4)(C)(vi)(II), subject
                            to subsection (k)(4)(F), for the
                            coverage to cover operating and
                            administrative expenses.

               *       *       *       *       *       *       *

              (5) Enterprise and whole farm units.--
                      [(A) In general.--The Corporation may carry
                    out a pilot program under which the Corporation
                    pays a portion of the premiums for plans or
                    policies of insurance for which the insurable
                    unit is defined on a whole farm or enterprise
                    unit basis that is higher than would otherwise
                    be paid in accordance with paragraph (2).]
                      (A) In general.--The Corporation may pay a
                    portion of the premiums for plans or policies
                    of insurance for which the insurable unit is
                    defined on a whole farm or enterprise unit
                    basis that is higher than would otherwise be
                    paid in accordance with paragraph (2).

               *       *       *       *       *       *       *

                      (D) Nonirrigated crops.--Beginning with the
                    2013 crop year, the Corporation shall make
                    available separate enterprise units for
                    irrigated and nonirrigated acreage of crops in
                    counties.

               *       *       *       *       *       *       *

              (8) Premium for beginning farmers or ranchers.--
            Notwithstanding any other provision of this subsection
            regarding payment of a portion of premiums, a beginning
            farmer or rancher shall receive premium assistance that
            is 10 percentage points greater than premium assistance
            that would otherwise be available under paragraphs (2)
            (except for subparagraph (A) of that paragraph), (5),
            (6), and (7) for the applicable policy, plan of
            insurance, and coverage level selected by the beginning
            farmer or rancher.

               *       *       *       *       *       *       *

      (g) Yield Determinations.--
              (1) * * *
              (2) Yield coverage plans.--
                      (A) * * *
                      (B) Assigned yield.--If the producer does not
                    provide satisfactory evidence of the yield of a
                    commodity under subparagraph (A), the producer
                    shall be assigned--
                              (i) a yield that is not less than 65
                            percent of the transitional yield of
                            the producer (adjusted to reflect
                            actual production reflected in the
                            records acceptable to the Corporation
                            for continuous years), as specified in
                            regulations issued by the Corporation
                            based on production history
                            requirements; [or]
                              (ii) a yield determined by the
                            Corporation, in the case of--
                                      (I) * * *

               *       *       *       *       *       *       *

                                      (III) a producer that rotates
                                    a crop produced on a farm to a
                                    crop that has not been produced
                                    on the farm[.]; or
                              (iii) if the producer is a beginning
                            farmer or rancher who was previously
                            involved in a farming or ranching
                            operation, including involvement in the
                            decisionmaking or physical involvement
                            in the production of the crop or
                            livestock on the farm, for any acreage
                            obtained by the beginning farmer or
                            rancher, a yield that is the higher
                            of--
                                      (I) the actual production
                                    history of the previous
                                    producer of the crop or
                                    livestock on the acreage
                                    determined under subparagraph
                                    (A); or
                                      (II) a yield of the producer,
                                    as determined in clause (i).

               *       *       *       *       *       *       *

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

               *       *       *       *       *       *       *

              (4) Adjustment in actual production history to
            establish insurable yields.--
                      (A) * * *
                      (B) Election to use percentage of
                    transitional yield.--If, for one or more of the
                    crop years used to establish the producer's
                    actual production history of an agricultural
                    commodity, the producer's recorded or appraised
                    yield of the commodity was less than [60] 70
                    percent of the applicable transitional yield,
                    as determined by the Corporation, the
                    Corporation shall, at the election of the
                    producer--
                              (i) * * *
                              (ii)(I) replace each excluded yield
                            with a yield equal to [60] 70 percent
                            of the applicable transitional
                            yield[.]; or
                              (II) in the case of beginning farmers
                            or ranchers, replace each excluded
                            yield with a yield equal to 80 percent
                            of the applicable transitional yield.

               *       *       *       *       *       *       *

      (h) Submission of Policies and Materials to Board.--
              [(1) In general.--In addition]
              (1) Authority to submit.--
                      (A) In general.--In addition to any standard
                    forms or policies that the Board may require be
                    made available to producers under subsection
                    (c), a person (including an approved insurance
                    provider, a college or university, a
                    cooperative or trade association, or any other
                    person) may prepare for submission or propose
                    to the Board--
                              [(A)] (i) other crop insurance
                            policies and provisions of policies;
                            and
                              [(B)] (ii) rates of premiums for
                            multiple peril crop insurance
                            pertaining to wheat, soybeans, field
                            corn, and any other crops determined by
                            the Secretary.
                      (B) Review and submission by corporation.--
                    The Corporation shall review any policy
                    developed under section 522(c) or any pilot
                    program developed under section 523 and submit
                    the policy or program to the Board under this
                    subsection if the Corporation, at the sole
                    discretion of the Corporation, finds that the
                    policy or program--
                              (i) will likely result in a viable
                            and marketable policy consistent with
                            this subsection;
                              (ii) would provide crop insurance
                            coverage in a significantly improved
                            form; and
                              (iii) adequately protects the
                            interests of producers.

               *       *       *       *       *       *       *

              (3) Review and approval by the board.--[A policy]
                      (A) In general.--A policy or other material
                    submitted to the Board under this subsection
                    shall be reviewed by the Board and, if the
                    Board finds that the interests of producers are
                    adequately protected and that any premiums
                    charged to the producers are actuarially
                    appropriate, shall be approved by the Board for
                    reinsurance and for sale by approved insurance
                    providers to producers as an additional choice
                    at actuarially appropriate rates and under
                    appropriate terms and conditions. The
                    Corporation may enter into more than 1
                    reinsurance agreement with the approved
                    insurance provider simultaneously to facilitate
                    the offering of the new policies.
                      (B) Specified review and approval
                    priorities.--In reviewing policies and other
                    materials submitted to the Board under this
                    subsection for approval, the Board--
                              (i) shall make the development and
                            approval of a revenue policy for peanut
                            producers a priority so that a revenue
                            policy is available to peanut producers
                            in time for the 2013 crop year;
                              (ii) shall make the development and
                            approval of a downed rice policy and
                            margin coverage policy for rice
                            producers a priority so that each
                            policy is available to rice producers
                            in time for the 2013 crop year; and
                              (iii) may approve a submission that
                            is made pursuant to this subsection
                            that would, beginning with the 2013
                            crop year, allow producers that
                            purchase policies in accordance with
                            subsection (e)(5)(A) to separate
                            enterprise units by risk rating for
                            acreage of crops in counties.

               *       *       *       *       *       *       *

      (k) Reinsurance.--
              (1) * * *

               *       *       *       *       *       *       *

              (4) Rate.--
                      (A) * * *

               *       *       *       *       *       *       *

                      (F) Reimbursement rate for area policies and
                    plans of insurance.--Notwithstanding
                    subparagraphs (A) through (E), for each of the
                    2009 and subsequent reinsurance years, the
                    reimbursement rate for area policies and plans
                    of insurance widely available as of the date of
                    enactment of this subparagraph or authorized
                    under subsection (c)(4)(C) or section 508B
                    shall be 12 percent of the premium used to
                    define loss ratio for that reinsurance year.

               *       *       *       *       *       *       *

      (o) Crop Production on Native Sod.--
              (1) Definition of native sod.--In this subsection,
            the term ``native sod'' means land--
                      (A) * * *
                      (B) that has never been tilled, or the
                    producer cannot substantiate that the ground
                    has ever been tilled, for the production of an
                    annual crop as of the date of enactment of this
                    subsection.
              (2) [Ineligibility for] Reduction in benefits.--
                      (A) In general.--Subject to subparagraph (B)
                    and paragraph (3), native sod acreage that has
                    been tilled for the production of an annual
                    crop after the date of enactment of this
                    subsection shall be ineligible during the first
                    5 crop years of planting, as determined by the
                    Secretary, [for benefits under--
                              [(i) this subtitle; and
                              [(ii) section 196 of the Federal
                            Agriculture Improvement and Reform Act
                            of 1996 (7 U.S.C. 7333).] for--
                              (i) a portion of crop insurance
                            premium subsidies under this subtitle
                            in accordance with paragraph (3);
                              (ii) benefits under section 196 of
                            the Federal Agriculture Improvement and
                            Reform Act of 1996 (7 U.S.C. 7333); and
                              (iii) payments described in
                            subsection (b) or (c) of section 1001
                            of the Food Security Act of 1985 (7
                            U.S.C. 1308).

               *       *       *       *       *       *       *

              [(3) Application.--Paragraph (2) may apply to native
            sod acreage in the Prairie Pothole National Priority
            Area at the election of the Governor of the respective
            State.]
              (3) Administration.--
                      (A) In general.--During the first 4 crop
                    years of planting on native sod acreage by a
                    producer described in paragraph (2)--
                              (i) paragraph (2) shall apply to 65
                            percent of the transitional yield of
                            the producer; and
                              (ii) the crop insurance premium
                            subsidy provided for the producer under
                            this subtitle shall be 50 percentage
                            points less than the premium subsidy
                            that would otherwise apply.
                      (B) Yield substitution.--During the period
                    native sod acreage is covered by this
                    subsection, a producer may not substitute
                    yields for the native sod acreage.
              (4) Application.--This subsection shall only apply to
            native sod in the Prairie Pothole National Priority
            Area.

               *       *       *       *       *       *       *

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

      (a) Availability.--Beginning not later than the 2013 crop of
    upland cotton, the Corporation shall make available to
    producers of upland cotton an additional policy (to be known as
    the ``Stacked Income Protection Plan''), which shall provide
    coverage consistent with the Group Risk Income Protection Plan
    (and the associated Harvest Revenue Option Endorsement) offered
    by the Corporation for the 2011 crop year.
      (b) Required Terms.--The Corporation may modify the Stacked
    Income Protection Plan on a program-wide basis, except that the
    Stacked Income Protection Plan shall comply with the following
    requirements:
              (1) Provide coverage for revenue loss of not less
            than 10 percent and not more than 30 percent of
            expected county revenue, specified in increments of 5
            percent. The deductible is the minimum percent of
            revenue loss at which indemnities are triggered under
            the plan, not to be less than 10 percent of the
            expected county revenue.
              (2) Be offered to producers of upland cotton in all
            counties with upland cotton production--
                      (A) at a county-wide level to the fullest
                    extent practicable; or
                      (B) in counties that lack sufficient data, on
                    the basis of such larger geographical area as
                    the Corporation determines to provide
                    sufficient data for purposes of providing the
                    coverage.
              (3) Be purchased in addition to any other individual
            or area coverage in effect on the producer's acreage or
            as a stand-alone policy, except that if a producer has
            an individual or area coverage for the same acreage,
            the maximum coverage available under the Stacked Income
            Protection Plan shall not exceed the deductible for the
            individual or area coverage.
              (4) Establish coverage based on--
                      (A) an expected price that is the higher of--
                              (i) the expected price established
                            under existing Group Risk Income
                            Protection or area wide policy offered
                            by the Corporation for the applicable
                            county (or area) and crop year; or
                              (ii) $0.6861 per pound; and
                      (B) an expected county yield that is the
                    higher of--
                              (i) the expected county yield
                            established for the existing area-wide
                            plans offered by the Corporation for
                            the applicable county (or area) and
                            crop year (or, in geographic areas
                            where area-wide plans are not offered,
                            an expected yield determined in a
                            manner consistent with those of area-
                            wide plans); or
                              (ii) the average of the applicable
                            yield data for the county (or area) for
                            the most recent 5 years, excluding the
                            highest and lowest observations, from
                            the Risk Management Agency or the
                            National Agricultural Statistics
                            Service (or both) or, if sufficient
                            county data is not available, such
                            other data considered appropriate by
                            the Secretary.
              (5) Use a multiplier factor to establish maximum
            protection per acre (referred to as a ``protection
            factor'') of not less than the higher of the level
            established on a program wide basis or 120 percent.
              (6) Pay an indemnity based on the amount that the
            expected county revenue exceeds the actual county
            revenue, as applied to the individual coverage of the
            producer. Indemnities under the Stacked Income
            Protection Plan shall not include or overlap the amount
            of the deductible selected under paragraph (1).
              (7) In all counties for which data are available,
            establish separate coverage levels for irrigated and
            non-irrigated practices.
      (c) Reinsurance.--When the $0.6861 reference price is equal
    to or greater than the expected price established under the
    existing Group Risk Income Protection or area wide policy
    offered by the Corporation for the applicable county (or area)
    and crop year or the yield established under subsection
    (b)(4)(B) is used to establish the expected county yield, the
    Corporation shall reinsure at 100 percent that portion of the
    indemnity that is attributable to the difference between--
              (1) the $0.6861 reference price and the expected
            price established under the existing Group Risk Income
            Protection or area wide policy offered by the
            Corporation for the applicable county (or area) and
            crop year; and
              (2) the yield established under subsection (b)(4)(B).
      (d) Premium.--Notwithstanding section 508(d), the premium for
    the Stacked Income Protection Plan shall--
              (1) be sufficient to cover anticipated losses and a
            reasonable reserve; and
              (2) include an amount for operating and
            administrative expenses established in accordance with
            section 508(k)(4)(F).
      (e) Payment of Portion by Corporation.--Subject to section
    508(e)(4), the amount of premium paid by the Corporation for
    all qualifying coverage levels of the Stacked Income Protection
    Plan shall be--
              (1) 80 percent of the amount of the premium
            established under subsection (d) for the coverage level
            selected; and
              (2) the amount determined under subsection (d)(2),
            subject to section 508(k)(4)(F), for the coverage to
            cover administrative and operating expenses.
      (f) Relation to Other Coverages.--The Stacked Income
    Protection Plan is in addition to all other coverages available
    to producers of upland cotton.

    SEC. 508C. PEANUT REVENUE CROP INSURANCE.

      (a) In General.--Effective beginning with the 2013 crop year,
    the Risk Management Agency and the Corporation shall make
    available to producers of peanuts a revenue crop insurance
    program for peanuts.
      (b) Effective Price.--Subject to subsection (c), for purposes
    of the revenue crop insurance program and the multiperil crop
    insurance program under this Act, the effective price for
    peanuts shall be equal to the Rotterdam price index for
    peanuts, as adjusted to reflect the farmer stock price of
    peanuts in the United States.
      (c) Adjustments.--
              (1) In general.--The effective price for peanuts
            established under subsection (b) may be adjusted by the
            Risk Management Agency and the Corporation to correct
            distortions.
              (2) Administration.--If an adjustment is made under
            paragraph (1), the Risk Management Agency and the
            Corporation shall--
                      (A) make the adjustment in an open and
                    transparent manner; and
                      (B) submit to the Committee on Agriculture of
                    the House of Representatives and the Committee
                    on Agriculture, Nutrition, and Forestry of the
                    Senate a report that describes the reasons for
                    the adjustment.

               *       *       *       *       *       *       *

    SEC. 515. PROGRAM COMPLIANCE AND INTEGRITY.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Reconciling Producer Information.--[The Secretary]
              (1) In general.--The Secretary shall develop and
            implement a coordinated plan for the Corporation and
            the Farm Service Agency to reconcile all relevant
            information received by the Corporation or the Farm
            Service Agency from a producer who obtains crop
            insurance coverage under this subtitle. [Beginning
            with]
              (2) Frequency.--Beginning with the 2001 crop year,
            the Secretary shall require that the Corporation and
            the Farm Service Agency reconcile such producer-derived
            information on at least an annual basis in order to
            identify and address any discrepancies.
              (3) Corrections.--
                      (A) In general.--In addition to the
                    corrections permitted by the Corporation as of
                    the date of enactment of the Federal
                    Agriculture Reform and Risk Management Act of
                    2012, the Corporation shall allow an agent or
                    an approved insurance provider, subject to
                    subparagraph (B)--
                              (i) within a reasonable amount of
                            time following the applicable sales
                            closing date, to correct unintentional
                            errors in information that is provided
                            by a producer for the purpose of
                            obtaining coverage under any policy or
                            plan of insurance made available under
                            this subtitle to ensure that the
                            eligibility information is correct;
                              (ii) within a reasonable amount of
                            time following--
                                      (I) the acreage reporting
                                    date, to correct unintentional
                                    errors in factual information
                                    that is provided by a producer
                                    after the sales closing date to
                                    reconcile the information with
                                    the information reported by the
                                    producer to the Farm Service
                                    Agency; or
                                      (II) the date of any
                                    subsequent correction of data
                                    by the Farm Service Agency made
                                    as a result of the verification
                                    of information; and
                              (iii) at any time, to correct
                            unintentional errors that were made by
                            the Farm Service Agency or an agent or
                            approved insurance provider in
                            transmitting the information provided
                            by the producer to the approved
                            insurance provider or the Corporation.
                      (B) Limitation.--In accordance with the
                    procedures of the Corporation, correction to
                    the information described in clauses (i) and
                    (ii) of subparagraph (A) may only be made if
                    the corrections do not allow the producer--
                              (i) to avoid ineligibility
                            requirements for insurance;
                              (ii) to obtain, enhance, or increase
                            an insurance guarantee or indemnity, or
                            avoid premium owed, if a cause of loss
                            exists or has occurred before any
                            correction has been made; or
                              (iii) to avoid an obligation or
                            requirement under any Federal or State
                            law.
                      (C) Exception to late filing sanctions.--Any
                    corrections made pursuant to this paragraph
                    shall not be subject to any late filing
                    sanctions authorized in the reinsurance
                    agreement with the Corporation.

               *       *       *       *       *       *       *

      (j) Information Management.--
              [(1) Systems upgrades.--The Secretary shall upgrade
            the information management systems of the Corporation
            used in the administration and enforcement and this
            subtitle. In upgrading the systems, the Secretary shall
            ensure that new hardware and software are compatible
            with the hardware and software used by other agencies
            of the Department to maximize data sharing and promote
            the purpose of this section.]
              (1) Systems maintenance and upgrades.--
                      (A) In general.--The Secretary shall maintain
                    and upgrade the information management systems
                    of the Corporation used in the administration
                    and enforcement of this subtitle.
                      (B) Requirement.--
                              (i) In general.--In maintaining and
                            upgrading the systems, the Secretary
                            shall ensure that new hardware and
                            software are compatible with the
                            hardware and software used by other
                            agencies of the Department to maximize
                            data sharing and promote the purposes
                            of this section.
                              (ii) Acreage report streamlining
                            initiative project.--As soon as
                            practicable, the Secretary shall
                            develop and implement an acreage report
                            streamlining initiative project to
                            allow producers to report acreage and
                            other information directly to the
                            Department.

               *       *       *       *       *       *       *

      (k) Funding.--
              [(1) Information technology.--To carry out subsection
            (j)(1), the Corporation may use, from amounts made
            available from the insurance fund established under
            section 516(c), not more than $15,000,000 for each of
            fiscal years 2008 through 2010, and not more than
            $9,000,000 for fiscal year 2011.]
              (1) Information technology.--
                      (A) In general.--For purposes of subsection
                    (j)(1), the Corporation may use, from amounts
                    made available from the insurance fund
                    established under section 516(c), not more
                    than--
                              (i)(I) for fiscal year 2013,
                            $25,000,000; and
                              (II) for each of fiscal years 2014
                            through 2017, $10,000,000; or
                              (ii) if the Acreage Crop Reporting
                            Streamlining Initiative (ACRSI) project
                            is substantially completed by September
                            30, 2014, not more than $15,000,000 for
                            each of the fiscal years 2014 through
                            2017.
                      (B) Notification.--The Secretary shall notify
                    the Committee on Agriculture of the House of
                    Representatives and the Committee on
                    Agriculture, Nutrition, and Forestry of the
                    Senate of the substantial completion of the
                    Acreage Crop Reporting Streamlining Initiative
                    (ACRSI) project not later than July 1, 2014.

               *       *       *       *       *       *       *

    SEC. 522. RESEARCH AND DEVELOPMENT.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Research and Development Contracting Authority.--
              (1) * * *

               *       *       *       *       *       *       *

              (6) Research and development priorities.--The
            Corporation shall establish as one of the highest
            research and development priorities of the Corporation
            the development of [a pasture, range, and forage
            program] policies that increase participation by
            producers of underserved agricultural commodities,
            including sweet sorghum, biomass sorghum, rice,
            peanuts, and sugarcane.

               *       *       *       *       *       *       *

              (10) Contracts for organic production coverage
            improvements.--
                      (A) Contracts required.--Not later than 180
                    days after the date of enactment of [the Food,
                    Conservation, and Energy Act of 2008] the
                    Federal Agriculture Reform and Risk Management
                    Act of 2012, the Corporation shall enter into 1
                    or more contracts for the development of
                    improvements in Federal crop insurance policies
                    covering crops produced in compliance with
                    standards issued by the Department of
                    Agriculture under the national organic program
                    established under the Organic Foods Production
                    Act of 1990 (7 U.S.C. 6501 et seq.).
                      (B) Review of underwriting risk and loss
                    experience.--
                              (i) * * *

               *       *       *       *       *       *       *

                              (iii) Annual updates.--Beginning with
                            the [2009] 2013 crop year, the review
                            under this subparagraph shall be
                            updated on an annual basis as data is
                            accumulated by the Secretary and other
                            sources, so that the Corporation may
                            make determinations regarding
                            adjustments to the surcharge in a
                            timely manner as quickly as evolving
                            practices and data trends allow.
                      (C) Additional price election.--
                              (i) * * *
                              (ii) Timing.--The development of the
                            procedure shall be completed in a
                            timely manner to allow the Corporation
                            to begin offering the additional price
                            election for organic crops with
                            sufficient data for the [2010] 2013
                            crop year.
                              (iii) Expansion.--The procedure shall
                            be expanded as quickly as practicable
                            as additional data on prices of organic
                            crops collected by the Secretary and
                            other sources of information becomes
                            available, with a goal of applying this
                            procedure to all organic crops not
                            later than the fifth full crop year
                            that begins after the date of enactment
                            of [Food, Conservation, and Energy Act
                            of 2008] the Federal Agriculture Reform
                            and Risk Management Act of 2012.

               *       *       *       *       *       *       *

              (17) Margin coverage for catfish.--
                      (A) In general.--The Corporation shall offer
                    to enter into a contract with a qualified
                    entity to conduct research and development
                    regarding a policy to insure producers against
                    reduction in the margin between the market
                    value of catfish and selected costs incurred in
                    the production of catfish.
                      (B) Eligibility.--Eligibility for the policy
                    described in subparagraph (A) shall be limited
                    to freshwater species of catfish that are
                    propagated and reared in controlled or selected
                    environments.
                      (C) Implementation.--The Board shall review
                    the policy described in subparagraph (B) under
                    subsection 508(h) and approve the policy if the
                    Board finds that the policy--
                              (i) will likely result in a viable
                            and marketable policy consistent with
                            this subsection;
                              (ii) would provide crop insurance
                            coverage in a significantly improved
                            form;
                              (iii) adequately protects the
                            interests of producers; and
                              (iv) the proposed policy meets other
                            requirements of this subtitle
                            determined appropriate by the Board.
              (18) Biomass and sweet sorghum energy crop insurance
            policies.--
                      (A) Authority.--The Corporation shall offer
                    to enter into 1 or more contracts with
                    qualified entities to carry out research and
                    development regarding--
                              (i) a policy to insure biomass
                            sorghum that is grown expressly for the
                            purpose of producing a feedstock for
                            renewable biofuel, renewable
                            electricity, or biobased products; and
                              (ii) a policy to insure sweet sorghum
                            that is grown for a purpose described
                            in clause (i).
                      (B) Research and development.--Research and
                    development with respect to each of the
                    policies required in subparagraph (A) shall
                    evaluate the effectiveness of risk management
                    tools for the production of biomass sorghum or
                    sweet sorghum, including policies and plans of
                    insurance that--
                              (i) are based on market prices and
                            yields;
                              (ii) to the extent that insufficient
                            data exist to develop a policy based on
                            market prices and yields, evaluate the
                            policies and plans of insurance based
                            on the use of weather indices,
                            including excessive or inadequate
                            rainfall, to protect the interest of
                            crop producers; and
                              (iii) provide protection for
                            production or revenue losses, or both.
              (19) Study on swine catastrophic disease program.--
                      (A) In general.--The Corporation shall
                    contract with a qualified person to conduct a
                    study to determine the feasibility of insuring
                    swine producers for a catastrophic event.
                      (B) Report.--Not later than 1 year after the
                    date of the enactment of this paragraph, the
                    Corporation shall submit to the Committee on
                    Agriculture of the House of Representatives and
                    the Committee on Agriculture, Nutrition, and
                    Forestry of the Senate a report that describes
                    the results of the study conducted under
                    subparagraph (A).
              (20) Whole farm diversified risk management insurance
            plan.--
                      (A) In general.--The Corporation shall
                    conduct activities or enter into contracts to
                    carry out research and development to develop a
                    whole farm risk management insurance plan, with
                    a liability limitation of $1,000,000, that
                    allows a diversified crop or livestock producer
                    the option to qualify for an indemnity if
                    actual gross farm revenue is below 85 percent
                    of the average gross farm revenue or the
                    expected gross farm revenue that can reasonably
                    be expected of the producer, as determined by
                    the Corporation.
                      (B) Eligible producers.--The Corporation
                    shall permit producers (including direct-to-
                    consumer marketers and producers servicing
                    local and regional and farm identity-preserved
                    markets) who produce multiple agricultural
                    commodities, including specialty crops,
                    industrial crops, livestock, and aquaculture
                    products, to participate in the plan in lieu of
                    any other plan under this subtitle.
                      (C) Diversification.--The Corporation may
                    provide diversification-based additional
                    coverage payment rates, premium discounts, or
                    other enhanced benefits in recognition of the
                    risk management benefits of crop and livestock
                    diversification strategies for producers that
                    grow multiple crops or that may have income
                    from the production of livestock that uses a
                    crop grown on the farm.
                      (D) Market readiness.--The Corporation may
                    include coverage for the value of any packing,
                    packaging, or any other similar on-farm
                    activity the Corporation determines to be the
                    minimum required in order to remove the
                    commodity from the field.
                      (E) Report.--Not later than 2 years after the
                    date of enactment of this paragraph, the
                    Corporation shall submit to the Committee on
                    Agriculture of the House of Representatives and
                    the Committee on Agriculture, Nutrition, and
                    Forestry of the Senate a report that describes
                    the results and feasibility of the research and
                    development conducted under this paragraph,
                    including an analysis of potential adverse
                    market distortions.
              (21) Study of food safety insurance.--
                      (A) In general.--The Corporation shall offer
                    to enter into a contract with 1 or more
                    qualified entities to conduct a study to
                    determine whether offering policies that
                    provide coverage for specialty crops from food
                    safety and contamination issues would benefit
                    agricultural producers.
                      (B) Subject.--The study described in
                    subparagraph (A) shall evaluate policies and
                    plans of insurance coverage that provide
                    protection for production or revenue impacted
                    by food safety concerns including, at a
                    minimum, government, retail, or national
                    consumer group announcements of a health
                    advisory, removal, or recall related to a
                    contamination concern.
                      (C) Report.--Not later than 1 year after the
                    date of enactment of this paragraph, the
                    Corporation shall submit to the Committee on
                    Agriculture of the House of Representatives and
                    the Committee on Agriculture, Nutrition, and
                    Forestry of the Senate a report that describes
                    the results of the study conducted under
                    subparagraph (A).
              (22) Study on poultry catastrophic disease program.--
                      (A) In general.--The Corporation shall
                    contract with a qualified person to conduct a
                    study to determine the feasibility of insuring
                    poultry producers for a catastrophic event.
                      (B) Report.--Not later than 1 year after the
                    date of the enactment of this paragraph, the
                    Corporation shall submit to the Committee on
                    Agriculture of the House of Representatives and
                    the Committee on Agriculture, Nutrition, and
                    Forestry of the Senate a report that describes
                    the results of the study conducted under
                    subparagraph (A).
              (23) Poultry business interruption insurance
            policy.--
                      (A) Authority.--The Corporation shall offer
                    to enter into a contract or cooperative
                    agreement with a university or other legal
                    entity to carry out research and development
                    regarding a policy to insure the commercial
                    production of poultry against business
                    interruptions caused by integrator bankruptcy.
                      (B) Research and development.--As part of the
                    research and development conducted pursuant to
                    a contract or cooperative agreement entered
                    into under subparagraph (A), the entity shall--
                              (i) evaluate the market place for
                            business interruption insurance that is
                            available to poultry growers;
                              (ii) determine what statutory
                            authority would be necessary to
                            implement a business interruption
                            insurance through the Corporation;
                              (iii) assess the feasibility of a
                            policy or plan of insurance offered
                            under this subtitle to insure against
                            losses due to the bankruptcy of an
                            business integrator; and
                              (iv) analyze the costs to the Federal
                            Government of a Federal business
                            interruption insurance program for
                            poultry growers.
                      (C) Definitions.--In this paragraph, the
                    terms ``poultry'' and ``poultry grower'' have
                    the meanings given those terms in section 2(a)
                    of the Packers and Stockyards Act, 1921 (7
                    U.S.C. 182(a)).
                      (D) Deadline for contract or cooperative
                    agreement.--Not later than six months after the
                    date of the enactment of this paragraph, the
                    Corporation shall enter into the contract or
                    cooperative agreement required by subparagraph
                    (A).
                      (E) Deadline for completion of research and
                    development.--Not later than one year after the
                    date of the enactment of this paragraph, the
                    Corporation shall submit to the Committee on
                    Agriculture of the House of Representatives and
                    the Committee on Agriculture, Nutrition, and
                    Forestry of the Senate a report that describes
                    the results of the research and development
                    conducted pursuant to the contract or
                    cooperative agreement entered into under
                    subparagraph (A).
              [(17)] (24) Relation to limitations.--A policy
            developed under this subsection may be prepared without
            regard to the limitations of this subtitle, including--
                      (A) * * *

               *       *       *       *       *       *       *

    SEC. 523. PILOT PROGRAMS.

      (a) General Provisions.--
              (1) Authority.--Except as otherwise provided in this
            section, the Corporation may, at the sole discretion of
            the Corporation, conduct a pilot program submitted to
            and approved by the Board under section 508(h), or that
            is developed under subsection (b) or section 522, to
            evaluate whether a proposal or new risk management tool
            tested by the pilot program is suitable for the
            marketplace and addresses the needs of producers of
            agricultural commodities.

               *       *       *       *       *       *       *

              [(5) Evaluation.--
                      [(A) Requirement.--After the completion of
                    any pilot program under this section, the
                    Corporation shall evaluate the pilot program
                    and submit to the Committee on Agriculture of
                    the House of Representatives and the Committee
                    on Agriculture, Nutrition, and Forestry of the
                    Senate a report on the operations of the pilot
                    program.
                      [(B) Evaluation and recommendations.--The
                    report shall include an evaluation by the
                    Corporation of the pilot program and the
                    recommendations of the Corporation with respect
                    to implementing the program on a national
                    basis.]
      (b) Livestock Pilot Programs.--
              (1) * * *

               *       *       *       *       *       *       *

              (10) Limitation on expenditures.--The Corporation
            shall conduct all livestock programs under this
            subtitle so that, to the maximum extent practicable,
            all costs associated with conducting the livestock
            programs (other than research and development costs
            covered by section 522) are not expected to exceed the
            following:
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) $20,000,000 for [fiscal year 2004 and
                    each subsequent fiscal year] each of fiscal
                    years 2004 through 2012.
                      (D) $50,000,000 for fiscal year 2013 and each
                    subsequent fiscal year.

               *       *       *       *       *       *       *

    SEC. 524. EDUCATION AND RISK MANAGEMENT ASSISTANCE.

      (a) * * *
      (b) Agricultural Management Assistance.--
              (1) * * *
              (2) Uses.--A producer may use financial assistance
            provided under this subsection to--
                      (A) * * *
                      [(B) plant trees to form windbreaks or to
                    improve water quality;]
                      [(C)] (B) mitigate financial risk through
                    production or marketing diversification [or
                    resource conservation practices], including--
                              [(i) soil erosion control;]
                              [(ii)] (i) integrated pest
                            management;
                              [(iii)] (ii) organic farming; or
                              [(iv)] (iii) to develop and implement
                            a plan to create marketing
                            opportunities for the producer,
                            including through value-added
                            processing;
                      [(D)] (C) enter into futures, hedging, or
                    options contracts in a manner designed to help
                    reduce production, price, or revenue risk;
                      [(E)] (D) enter into agricultural trade
                    options as a hedging transaction to reduce
                    production, price, or revenue risk; or
                      [(F)] (E) conduct any other activity relating
                    to an activity described in subparagraphs (A)
                    through (E), as determined by the Secretary.

               *       *       *       *       *       *       *

              (4) Commodity credit corporation.--
                      (A) * * *
                      [(B) Funding.--
                              [(i) In general.--Except as provided
                            in clause (ii), the Commodity Credit
                            Corporation shall make available to
                            carry out this subsection not less than
                            $10,000,000 for each fiscal year.
                              [(ii) Exception for certain fiscal
                            years.--For each of fiscal years 2008
                            through 2014, the Commodity Credit
                            Corporation shall make available to
                            carry out this subsection $15,000,000.]
                      (B) Funding.--The Commodity Credit
                    Corporation shall make available to carry out
                    this subsection not less than $10,000,000 for
                    each fiscal year.
                      (C) Certain uses.--Of the amounts made
                    available to carry out this subsection for a
                    fiscal year, the Commodity Credit Corporation
                    shall use not less than--
                              (i) [50] 30 percent to carry out
                            subparagraphs [(A), (B), and (C)] (A)
                            and (B) of paragraph (2) through the
                            Natural Resources Conservation Service;

               *       *       *       *       *       *       *

                              (iii) [40] 60 percent to conduct
                            activities to carry out subparagraph
                            (F) of paragraph (2) through the Risk
                            Management Agency.

           Subtitle B--Supplemental Agricultural Disaster Assistance

    SEC. 531. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

      (a) * * *

               *       *       *       *       *       *       *

      (d) Livestock Forage Disaster Program.--
              (1) * * *

               *       *       *       *       *       *       *

              (3) Assistance for losses due to drought
            conditions.--
                      [(A) Eligible losses.--
                              [(i) In general.--An eligible]
                      (A) Eligible losses.--An eligible livestock
                    producer may receive assistance under this
                    subsection only for grazing losses for covered
                    livestock that occur on land that--
                              [(I)] (i) is native or improved
                            pastureland with permanent vegetative
                            cover; or
                              [(II)] (ii) is planted to a crop
                            planted specifically for the purpose of
                            providing grazing for covered
                            livestock.
                              [(ii) Exclusions.--An eligible
                            livestock producer may not receive
                            assistance under this subsection for
                            grazing losses that occur on land used
                            for haying or grazing under the
                            conservation reserve program
                            established under subchapter B of
                            chapter 1 of subtitle D of title XII of
                            the Food Security Act of 1985 (16
                            U.S.C. 3831 et seq.).]

               *       *       *       *       *       *       *

                                  ----------

                               FOOD FOR PEACE ACT

               *       *       *       *       *       *       *
              TITLE II--EMERGENCY AND PRIVATE ASSISTANCE PROGRAMS

    SEC. 201. GENERAL AUTHORITY.

      The President shall establish a program under this title (to
    be implemented by the Administrator) to provide agricultural
    commodities to foreign countries on behalf of the people of the
    United States to--
              (1) * * *

               *       *       *       *       *       *       *

              [(7) promote economic and nutritional security by
            increasing educational, training, and other productive
            activities.
    Such program shall be implemented by the Administrator.]
              (7) build resilience to mitigate and prevent food
            crises and reduce the future need for emergency aid.

    SEC. 202. PROVISION OF AGRICULTURAL COMMODITIES.

      (a) * * *

               *       *       *       *       *       *       *

      (e) Support for Eligible Organizations.--
              (1) In general.--Of the funds made available in each
            fiscal year under this title to the Administrator, not
            less than 7.5 percent nor more than [13 percent] 11
            percent of the funds shall be made available in each
            fiscal year to eligible organizations described in
            subsection (d), to assist the organizations in--
                      (A) * * *

               *       *       *       *       *       *       *

      (h) Food Aid Quality.--
              (1) In general.--[The Administrator] In consultation
            with the Secretary, the Administrator shall use funds
            made available for fiscal year 2009 and subsequent
            fiscal years to carry out this title to establish a
            mechanism--
                      (A) * * *
                      (B) to adjust products and formulations
                    (including the potential introduction of new
                    fortificants and products) as necessary to
                    cost-effectively meet nutrient needs of target
                    populations; [and]
                      [(C) to test prototypes.]
                      (C) to evaluate, as necessary, the use of
                    current and new agricultural commodities and
                    products thereof in different program settings
                    and for particular recipient groups, including
                    the testing of prototypes;
                      (D) to establish and implement appropriate
                    protocols for quality assurance of food
                    products procured by the Secretary for food aid
                    programs; and
                      (E) to periodically update program guidelines
                    on the recommended use of agricultural
                    commodities and food products in food aid
                    programs to reflect findings from the
                    implementation of this subsection and other
                    relevant information.
              (2) Administration.--[The Administrator] In
            consultation with the Secretary, the Administrator--
                      (A) * * *

               *       *       *       *       *       *       *

              (3) Funding limitation.--Of the funds made available
            under section 207(f), for [fiscal years 2009 through
            2011, not more than $4,500,000] fiscal years 2013
            through 2017, not more than $1,000,000 may be used to
            carry out this subsection.

               *       *       *       *       *       *       *

    SEC. 204. LEVELS OF ASSISTANCE.

      (a) Minimum Levels.--
              (1) Minimum assistance.--Except as provided in
            paragraph (3), the Administrator shall make
            agricultural commodities available for food
            distribution under this title in an amount that for
            each of fiscal years 2008 through [2012] 2017 is not
            less than 2,500,000 metric tons.
              (2) Minimum non-emergency assistance.--Of the amounts
            specified in paragraph (1), and except as provided in
            paragraph (3), the Administrator shall make
            agricultural commodities available for non-emergency
            food distribution through eligible organizations under
            section 202 in an amount that for each of fiscal years
            2008 through [2012] 2017 is not less than 1,875,000
            metric tons.

               *       *       *       *       *       *       *

    SEC. 205. FOOD AID CONSULTATIVE GROUP.

      (a) * * *
      (b) Membership.--The Group shall be composed of--
              (1) * * *

               *       *       *       *       *       *       *

              (6) representatives from agricultural producer groups
            in the United States; [and]
              (7) representatives from the United States
            agricultural processing sector involved in providing
            agricultural commodities for programs under this Act;
            and
              [(7)] (8) representatives from the maritime
            transportation sector involved in transporting
            agricultural commodities overseas for programs under
            this Act.

               *       *       *       *       *       *       *

      (d) Consultations.--[In preparing regulations, handbooks, or
    guidelines implementing this title, or significant revisions
    thereto, the Administrator shall provide such proposals to the
    Group for review and comment.]
              (1) Consultation in advance of issuance of
            implementation regulations, handbooks, and
            guidelines.--Not later than 45 days before a proposed
            regulation, handbook, or guideline implementing this
            title, or a proposed significant revision to a
            regulation, handbook, or guideline implementing this
            title, becomes final, the Administrator shall provide
            the proposal to the Group for review and comment. The
            Administrator shall consult and, when appropriate (but
            at least twice per year), meet with the Group regarding
            such proposed regulations, handbooks, guidelines, or
            revisions thereto prior to the issuance of such.
              (2) Consultation regarding food aid quality
            efforts.--The Administrator shall seek input from and
            consult with the Group on the implementation of section
            202(h).

               *       *       *       *       *       *       *

      (f) Termination.--The Group shall terminate on December 31,
    [2012] 2017.

               *       *       *       *       *       *       *

    SEC. 207. ADMINISTRATION.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Regulations and Guidance.--
              (1) In general.--The Administrator shall promptly
            issue all necessary regulations and make revisions to
            agency guidelines with respect to changes in the
            operation or implementation of the program established
            under this title. Not later than 270 days after the
            date of the enactment of the Federal Agriculture Reform
            and Risk Management Act of 2012, the Administrator
            shall issue all regulations and revisions to agency
            guidance necessary to implement the amendments made to
            this title by such Act.
              (2) Requirements.--The Administrator shall develop
            regulations and guidance with the intent of--
                      (A) * * *

               *       *       *       *       *       *       *

      (f) Program Oversight, Monitoring, and Evaluation.--
              (1) * * *
              (2) Requirements of systems and activities.--The
            systems and activities described in paragraph (1) shall
            include--
                      (A) * * *

               *       *       *       *       *       *       *

                      (D) the evaluation of monetization programs;
                    and
                      (E) early warning assessments and systems to
                    help prevent famines[; and].
                      [(F) upgraded information technology
                    systems.]
              [(3) Implementation report.--Not later than 180 days
            after the date of enactment of the Food, Conservation,
            and Energy Act of 2008, the Administrator shall submit
            to the appropriate committees of Congress a report on
            efforts undertaken by the Administrator to conduct
            oversight of nonemergency programs under this title.
              [(4) Government accountability office report.--Not
            later than 270 days after the date of submission of the
            report under paragraph (3), the Comptroller General of
            the United States shall submit to the appropriate
            committees of Congress a report that contains--
                      [(A) a review of, and comments addressing,
                    the report described in paragraph (3); and
                      [(B) recommendations relating to any
                    additional actions that the Comptroller General
                    of the United States determines to be necessary
                    to improve the monitoring and evaluation of
                    assistance provided under this title.]
              [(5)] (3) Contract authority.--
                      (A) * * *

               *       *       *       *       *       *       *

              [(6)] (4) Funding.--
                      (A) In general.--Subject to section
                    202(h)(3), in addition to other funds made
                    available to the Administrator to carry out the
                    monitoring of emergency food assistance, the
                    Administrator may implement this subsection
                    using up to $22,000,000 of the funds made
                    available under this title for each of fiscal
                    years 2009 through 2012[, except for paragraph
                    (2)(F), for which only $2,500,000 shall be made
                    available during fiscal year 2009] and up to
                    $10,000,000 of such funds for each of fiscal
                    years 2013 through 2017.
                      (B) Limitations.--
                              (i) In general.--Subject to clause
                            (ii), of the funds made available under
                            subparagraph (A), for each of fiscal
                            years 2009 through [2012] 2017, not
                            more than $8,000,000 may be used by the
                            Administrator to carry out paragraph
                            (2)(E).

               *       *       *       *       *       *       *

    SEC. 208. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION,
                        DELIVERY, AND DISTRIBUTION OF SHELF-STABLE
                        PREPACKAGED FOODS.

      (a) * * *

               *       *       *       *       *       *       *

      (f) Authorization of Appropriations.--There is authorized to
    be appropriated to the Administrator to carry out this section,
    in addition to amounts otherwise available to carry out this
    section, $8,000,000 for each of fiscal years 2001 through
    [2012] 2017, to remain available until expended.

               *       *       *       *       *       *       *

    TITLE IV--GENERAL AUTHORITIES AND REQUIREMENTS

               *       *       *       *       *       *       *

    SEC. 403. GENERAL PROVISIONS.

      (a) * * *
      (b) Impact on Local Farmers and Economy.--The Secretary or
    the Administrator, as appropriate, shall ensure that the
    importation of United States agricultural commodities and the
    use of local currencies for development purposes will not have
    a disruptive impact on the farmers or the local economy of the
    recipient country. The Secretary or the Administrator, as
    appropriate, shall seek information, as part of the regular
    proposal and submission process, from implementing agencies on
    the potential benefits to the local economy of sales of
    agricultural commodities within the recipient country.

               *       *       *       *       *       *       *

      (e) World Prices.--
              (1) * * *
              (2) Sale price.--Sales of agricultural commodities
            described in paragraph (1) shall be made at a
            [reasonable market price] fair market value in the
            economy where the agricultural commodity is to be sold,
            as determined by the Secretary or the Administrator, as
            appropriate.
              (3) Coordination on assessments.--The Secretary and
            the Administrator shall coordinate in assessments to
            carry out paragraph (1) and in the development of
            approaches to be used by implementing agencies for
            determining the fair market value described in
            paragraph (2).

               *       *       *       *       *       *       *

      (m) Report on Use of Funds.--Not later than 180 days after
    the date of the enactment of the Federal Agriculture Reform and
    Risk Management Act of 2012, and annually thereafter, the
    Administrator shall submit to Congress a report--
              (1) specifying the amount of funds (including funds
            for administrative costs, indirect cost recovery, and
            internal transportation, storage and handling, and
            associated distribution costs) provided to each
            eligible organization that received assistance under
            this Act in the previous fiscal year; and
              (2) describing how those funds were used by the
            eligible organization.

               *       *       *       *       *       *       *

    SEC. 407. ADMINISTRATIVE PROVISIONS.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Title II and III Program.--
              (1) * * *

               *       *       *       *       *       *       *

              (4) Prepositioning.--
                      (A) In general.--Funds made available for
                    fiscal years 2001 through [2012] 2017 to carry
                    out titles II and III may be used by the
                    Administrator to procure, transport, and store
                    agricultural commodities for prepositioning
                    within the United States and in foreign
                    countries, except that [for each such fiscal
                    year not more than $10,000,000 of such funds]
                    for each of fiscal years 2001 through 2012 not
                    more than $10,000,000 of such funds and for
                    each of fiscal years 2013 through 2017 not more
                    than $15,000,000 of such funds may be used to
                    store agricultural commodities for
                    prepositioning in foreign countries.
                      [(B) Additional prepositioning sites.--
                              [(i) Feasibility assessments.--The
                            Administrator may carry out assessments
                            for the establishment of not less than
                            2 sites to determine the feasibility
                            of, and costs associated with, using
                            the sites to store and handle
                            agricultural commodities for
                            prepositioning in foreign countries.
                              [(ii) Establishment of sites.--Based
                            on the results of each assessment
                            carried out under clause (i), the
                            Administrator may establish additional
                            sites for prepositioning in foreign
                            countries.]
                      (B) Additional prepositioning sites.--The
                    Administrator may establish additional sites
                    for prepositioning in foreign countries or
                    change the location of current sites for
                    prepositioning in foreign countries after
                    conducting, and based on the results of,
                    assessments of need, feasibility, and cost.

               *       *       *       *       *       *       *

      (f) Annual Reports.--
              (1) Annual report regarding [agricultural trade] food
            aid programs and activities.--
                      (A) * * *
                      (B) Contents.--An annual report described in
                    subparagraph (A) shall include, with respect to
                    the prior fiscal year--
                              (i) * * *
                              (ii) a general description of each
                            project and activity implemented under
                            this Act (including each activity
                            funded through the use of local
                            currencies) and the intended
                            beneficiaries of the project or
                            activity;
                              (iii) a statement describing the
                            quantity of agricultural commodities
                            made available to each country pursuant
                            to--
                                      (I) section 416(b) of the
                                    Agricultural Act of 1949 (7
                                    U.S.C. 1431(b)); [and]
                                      (II) the Food for Progress
                                    Act of 1985 (7 U.S.C. 1736o);
                                    and
                                      (III) the McGovern-Dole
                                    International Food for
                                    Education and Child Nutrition
                                    Program established by section
                                    3107 of the Farm Security and
                                    Rural Investment Act of 2002 (7
                                    U.S.C. 1736o-1);

               *       *       *       *       *       *       *

    SEC. 408. EXPIRATION DATE.

      No agreements to finance sales or to provide other assistance
    under this Act shall be entered into after December 31, [2012]
    2017.

               *       *       *       *       *       *       *

    SEC. 412. AUTHORIZATION OF APPROPRIATIONS.

      (a) Authorization of Appropriations.--There are authorized to
    be appropriated--
              (1) [for fiscal year 2008 and each fiscal year
            thereafter, $2,500,000,000] $2,500,000,000 for each of
            fiscal years 2008 through 2012 and $2,000,000,000 for
            each of fiscal years 2013 through 2017 to carry out the
            emergency and nonemergency food assistance programs
            under title II; and

               *       *       *       *       *       *       *

      (e) Minimum Level of Nonemergency Food Assistance.--
              [(1) Funds and commodities.--Of the amounts made
            available to carry out emergency and nonemergency food
            assistance programs under title II, not less than
            $375,000,000 for fiscal year 2009, $400,000,000 for
            fiscal year 2010, $425,000,000 for fiscal year 2011,
            and $450,000,000 for fiscal year 2012 shall be expended
            for nonemergency food assistance programs under title
            II.]
              (1) Funds and commodities.--For each of fiscal years
            2013 through 2017, of the amounts made available to
            carry out emergency and nonemergency food assistance
            programs under title II, not less than $400,000,000
            shall be expended for nonemergency food assistance
            programs under such title.

               *       *       *       *       *       *       *

    SEC. 415. MICRONUTRIENT FORTIFICATION PROGRAMS.

      (a) In General.--
              (1) * * *
              (2) Purpose.--The purpose of a program shall be to--
                      (A) * * *
                      (B) assess and apply technologies and systems
                    to improve and ensure the quality, shelf life,
                    bioavailability, and safety of fortified food
                    aid agricultural commodities, and products of
                    those agricultural commodities[, using
                    recommendations included in the report entitled
                    ``Micronutrient Compliance Review of Fortified
                    Public Law 480 Commodities'', published in
                    October 2001, with implementation by
                    independent entities with proven experience and
                    expertise in food aid commodity quality
                    enhancements].

               *       *       *       *       *       *       *

      (c) Termination of Authority.--The authority to carry out
    programs established under this section shall terminate on
    September 30, [2012] 2017.

               *       *       *       *       *       *       *

                       TITLE V--FARMER-TO-FARMER PROGRAM

    SEC. 501. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (d) Minimum Funding.--Notwithstanding any other provision of
    law, in addition to any funds that may be specifically
    appropriated to carry out this section, not less than the
    greater of $10,000,000 or 0.5 percent of the amounts made
    available for each of fiscal years 2008 through 2012, and not
    less than the greater of $15,000,000 or 0.5 percent of the
    amounts made available for each of fiscal years 2013 through
    2017, to carry out this Act shall be used to carry out programs
    under this section, with--
              (1) * * *

               *       *       *       *       *       *       *

      (e) Authorization of Appropriations.--
              (1) In general.--There are authorized to be
            appropriated for each of fiscal years 2008 through
            [2012] 2017 to carry out the programs under this
            section--
                      (A) * * *

               *       *       *       *       *       *       *

                                  ----------

                         AGRICULTURAL TRADE ACT OF 1978

               *       *       *       *       *       *       *
    TITLE II--AGRICULTURAL EXPORT PROGRAMS

               *       *       *       *       *       *       *

                           Subtitle B--Implementation

    SEC. 211. FUNDING LEVELS.

      (a) * * *
      (b) Export Credit Guarantee Programs.--The Commodity Credit
    Corporation shall make available for each of fiscal years 1996
    through [2012] 2017 credit guarantees under section 202(a) in
    an amount equal to but not more than the lesser of--
              (1) * * *

               *       *       *       *       *       *       *

      (c) Market Access Programs.--
              (1) In general.--The Commodity Credit Corporation or
            the Secretary shall make available for market access
            activities authorized to be carried out by the
            Commodity Credit Corporation under section 203--
                      (A) in addition to any funds that may be
                    specifically appropriated to implement a market
                    access program, not more than $90,000,000 for
                    fiscal year 2001, $100,000,000 for fiscal year
                    2002, $110,000,000 for fiscal year 2003,
                    $125,000,000 for fiscal year 2004, $140,000,000
                    for fiscal year 2005, and $200,000,000 for each
                    of fiscal years 2008 through [2012] 2017, of
                    the funds of, or an equal value of commodities
                    owned by, the Commodity Credit Corporation; and

               *       *       *       *       *       *       *

    TITLE VII--FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM

               *       *       *       *       *       *       *

    SEC. 703. FUNDING.

      (a) In General.--To carry out this title, the Secretary shall
    use funds of the Commodity Credit Corporation, or commodities
    of the Commodity Credit Corporation of a comparable value, in
    the amount of $34,500,000 for each of fiscal years 2008 through
    [2012] 2017.

               *       *       *       *       *       *       *

                                  ----------

                         FOOD FOR PROGRESS ACT OF 1985

      Sec. 1110. (a) * * *

               *       *       *       *       *       *       *

      (f) Provision of Eligible Commodities to Developing
    Countries.--(1) * * *

               *       *       *       *       *       *       *

      (3) No funds of the Corporation in excess of $40,000,000
    (exclusive of the cost of eligible commodities) may be used for
    each of fiscal years 1996 through [2012] 2017 to carry out this
    section with respect to eligible commodities made available
    under section 416(b) of the Agricultural Act of 1949 unless
    authorized in advance in appropriation Acts.

               *       *       *       *       *       *       *

              [(6) Project in malawi.--
                      [(A) In general.--In carrying out this
                    section during fiscal year 2009, the President
                    shall approve not less than 1 multiyear project
                    for Malawi--
                              [(i) to promote sustainable
                            agriculture; and
                              [(ii) to increase the number of women
                            in leadership positions.
                      [(B) Use of eligible commodities.--Of the
                    eligible commodities used to carry out this
                    section during the period in which the project
                    described in subparagraph (A) is carried out,
                    the President shall carry out the project using
                    eligible commodities with a total value of not
                    less than $3,000,000 during the course of the
                    project.]
      (g) Minimum Tonnage.--Subject to subsection (f)(3), not less
    than 400,000 metric tons of eligible commodities may be
    provided under this section for the program for each of fiscal
    years 2002 through [2012] 2017.

               *       *       *       *       *       *       *

      (k) Effective and Termination Dates.--This section shall be
    effective during the period beginning October 1, 1985, and
    ending December 31, [2012] 2017.
      (l) Administrative Expenses.--(1) To enhance the development
    of private sector agriculture in countries receiving assistance
    under this section the President may, in each of the fiscal
    years 1996 through [2012] 2017, use in addition to any amounts
    or eligible commodities otherwise made available under this
    section for such activities, not to exceed $$15,000,000 (or, in
    the case of fiscal year 1999, $12,000,000) of Corporation funds
    (or eligible commodities of an equal value owned by the
    Corporation), to provide assistance in the administration,
    sale, and monitoring of food assistance programs, and to
    provide technical assistance for monetization programs, to
    strengthen private sector agriculture in recipient countries.

               *       *       *       *       *       *       *

                                  ----------

                      BILL EMERSON HUMANITARIAN TRUST ACT

    TITLE III--BILL EMERSON HUMANITARIAN TRUST

               *       *       *       *       *       *       *

    SEC. 302. ESTABLISHMENT OF COMMODITY TRUST.

      (a) * * *
      (b) Commodities or Funds in Trust.--
              (1) * * *
              (2) Replenishment of trust.--
                      (A) * * *
                      (B) Funds.--Any funds used to acquire
                    eligible commodities through purchases from
                    producers or in the market to replenish the
                    trust shall be derived--
                              (i) with respect to fiscal years 2000
                            through [2012] 2017 from funds made
                            available to carry out the Food for
                            Peace Act (7 U.S.C. 1691 et seq.) that
                            are used to repay or reimburse the
                            Commodity Credit Corporation for the
                            release of eligible commodities under
                            subsections (c)(1) and (f)(2), except
                            that, of such funds, not more than
                            $20,000,000 may be expended for this
                            purpose in each of the fiscal years
                            2000 through [2012] 2017;

               *       *       *       *       *       *       *

      (h) Termination of Authority.--
              (1) In general.--The authority to replenish stocks of
            eligible commodities to maintain the trust established
            under this section shall terminate on September 30,
            [2012] 2017.
              (2) Disposal of eligible commodities.--Eligible
            commodities remaining in the trust after September 30,
            [2012] 2017, shall be disposed of by release for use in
            providing for emergency humanitarian food needs in
            developing countries as provided in this section.
                                  ----------

             FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT OF 1990

               *       *       *       *       *       *       *
    TITLE XV--AGRICULTURAL TRADE

               *       *       *       *       *       *       *

    Subtitle D--General Provisions

               *       *       *       *       *       *       *

    SEC. 1542. PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING MARKETS.

      (a) Funding.--The Commodity Credit Corporation shall make
    available for fiscal years 1996 through [2012] 2017 not less
    than $1,000,000,000 of direct credits or export credit
    guarantees for exports to emerging markets under section 201 or
    202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5621 and
    5622), in addition to the amounts acquired or authorized under
    section 211 of the Act (7 U.S.C. 5641) for the program.

               *       *       *       *       *       *       *

      (d) E (Kika) de la Garza Agricultural Fellowship Program.--
    The Secretary of Agriculture (hereafter in this section
    referred to as the ``Secretary'') shall establish a program, to
    be known as the ``E (Kika) de la Garza Agricultural Fellowship
    Program'', to develop agricultural markets in emerging markets
    and to promote cooperation and exchange of information between
    agricultural institutions and agribusinesses in the United
    States and emerging markets, as follows:
              (1) Development of agricultural systems.--
                      (A) In general.--
                              (i) Establishment of program.--For
                            each of the fiscal years 1991 through
                            [2012] 2017, the Secretary of
                            Agriculture (hereafter in this section
                            referred to as the ``Secretary''), in
                            order to develop, maintain, or expand
                            markets for United States agricultural
                            exports, is directed to make available
                            to emerging markets the expertise of
                            the United States to make assessments
                            of the food and rural business systems
                            needs of such democracies, make
                            recommendations on measures necessary
                            to enhance the effectiveness of the
                            systems, including potential reductions
                            in trade barriers, and identify and
                            carry out specific opportunities and
                            projects to enhance the effectiveness
                            of those systems.

               *       *       *       *       *       *       *

    TITLE XVI--RESEARCH

               *       *       *       *       *       *       *

    Subtitle B--Sustainable Agriculture Research and Education

               *       *       *       *       *       *       *

    CHAPTER 1--BEST UTILIZATION OF BIOLOGICAL APPLICATIONS

               *       *       *       *       *       *       *

    SEC. 1624. AUTHORIZATION OF APPROPRIATIONS.

      There are authorized to be appropriated [$40,000,000 for each
    fiscal year] to carry out this chapter $40,000,000 for each of
    fiscal years 2012 through 2017. Of amounts appropriated to
    carry out this chapter for a fiscal year, not less than
    $15,000,000, or not less than two thirds of any such
    appropriation, whichever is greater, shall be used to carry out
    sections 1621 and 1622.

                    CHAPTER 2--INTEGRATED MANAGEMENT SYSTEMS

    SEC. 1627. INTEGRATED MANAGEMENT SYSTEMS.

      (a) * * *

               *       *       *       *       *       *       *

      [(d) Authorization of Appropriations.--There are authorized
    to be appropriated for each fiscal year $20,000,000 to carry
    out this section through the National Institute of Food and
    Agriculture.]
      (d) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section through the National
    Institute of Food and Agriculture $20,000,000 for each of
    fiscal years 2012 through 2017.

    CHAPTER 3--SUSTAINABLE AGRICULTURE TECHNOLOGY DEVELOPMENT AND TRANSFER
                                    PROGRAM

    SEC. 1628. TECHNICAL GUIDES AND HANDBOOKS.

      (a) * * *

               *       *       *       *       *       *       *

      [(f) Authorization of Appropriations.--There are authorized
    to be appropriated such sums as may be necessary to carry out
    the provisions of this section.]
      (f) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section--
              (1) such sums as are necessary for fiscal year 2012;
            and
              (2) $5,000,000 for each of fiscal years 2013 through
            2017.

    SEC. 1629. NATIONAL TRAINING PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      [(i) Authorization of Appropriations.--There are authorized
    to be appropriated $20,000,000 for each fiscal year to carry
    out the National Training Program.]
      (i) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out the National Training Program
    $20,000,000 for each of fiscal years 2012 through 2017.

    Subtitle C--National Genetic Resources Program

               *       *       *       *       *       *       *

    SEC. 1635. DEFINITIONS AND AUTHORIZATION OF APPROPRIATIONS.

      (a) * * *
      (b) Authorization of Appropriations.--There are authorized to
    be appropriated [such funds as may be necessary] to carry out
    this [subtitle for each of the fiscal years 1991 through 2012.]
    subtitle--
              (1) such sums as are necessary for each of fiscal
            years 1991 through 2012; and
              (2) $1,000,000 for each of fiscal years 2013 through
            2017.

         [Subtitle D--National Agricultural Weather Information System

    [SEC. 1637. SHORT TITLE AND PURPOSES.

      [(a) Short Title.--This subtitle may be cited as the
    ``National Agricultural Weather Information System Act of
    1990''.
      [(b) Purposes.--The purposes of this subtitle are--
              [(1) to provide a nationally coordinated agricultural
            weather information system, based on the participation
            of universities, State programs, Federal agencies, and
            the private weather consulting sector, and aimed at
            meeting the weather and climate information needs of
            agricultural producers;
              [(2) to facilitate the collection, organization, and
            dissemination of advisory weather and climate
            information relevant to agricultural producers, through
            the participation of the private sector and otherwise;
              [(3) to provide for research and education on
            agricultural weather and climate information, aimed at
            improving the quality and quantity of weather and
            climate information available to agricultural
            producers, including research on short-term forecasts
            of thunderstorms and on extended weather forecasting
            techniques and models;
              [(4) to encourage, where feasible, greater private
            sector participation in providing agricultural weather
            and climate information, to encourage private sector
            participation in educating and training farmers and
            others in the proper utilization of agricultural
            weather and climate information, and to strengthen
            their ability to provide site-specific weather
            forecasting for farmers and the agricultural sector in
            general; and
              [(5) to ensure that the weather and climate data
            bases needed by the agricultural sector are of the
            highest scientific accuracy and thoroughly documented,
            and that such data bases are easily accessible for
            remote computer access.

    [SEC. 1638. AGRICULTURAL WEATHER OFFICE.

      [(a) Establishment of the Office and Administration of the
    System.--
              [(1) Establishment required.--The Secretary of
            Agriculture shall establish in the Department of
            Agriculture an Agricultural Weather Office to plan and
            administer the National Agricultural Weather
            Information System. The system shall be comprised of
            the office established under this section and the
            activities of the State agricultural weather
            information systems described in section 1640.
              [(2) Director.--The Secretary shall appoint a
            Director to manage the activities of the Agricultural
            Weather Office and to advise the Secretary on
            scientific and programmatic coordination for climate,
            weather, and remote sensing.
      [(b) Authority.--The Secretary, acting through the Office,
    may undertake the following activities to carry out this
    subtitle:
              [(1) Enter into cooperative projects with the
            National Weather Service to--
                      [(A) support operational weather forecasting
                    and observation useful in agriculture;
                      [(B) sponsor joint workshops to train
                    agriculturalists about the optimum utilization
                    of agricultural weather and climate data;
                      [(C) jointly develop improved computer models
                    and computing capacity; and
                      [(D) enhance the quality and availability of
                    weather and climate information needed by
                    agriculturalists.
              [(2) Obtain standardized weather observation data
            collected in near real time through State agricultural
            weather information systems.
              [(3) Make, through the National Institute of Food and
            Agriculture, competitive grants under subsection (c)
            for research in atmospheric sciences and climatology.
              [(4) Make grants to eligible States under section
            1640 to plan and administer State agricultural weather
            information systems.
              [(5) Coordinate the activities of the Office with the
            weather and climate research activities of the National
            Institute of Food and Agriculture, the National Academy
            of Sciences, the National Science Foundation
            Atmospheric Services Program, and the National Climate
            Program.
              [(6) Encourage private sector participation in the
            National Agricultural Weather Information System
            through mutually beneficial cooperation with the
            private sector, particularly in generating weather and
            climatic data useful for site-specific agricultural
            weather forecasting.
      [(c) Competitive Grants Program.--
              [(1) Grants authorized.--With funds allocated to
            carry out this subsection, the Secretary of Agriculture
            may make grants to State agricultural experiment
            stations, all colleges and universities, other research
            institutions and organizations, Federal agencies,
            private organizations and corporations, and individuals
            to carry out research in all aspects of atmospheric
            sciences and climatology that can be shown to be
            important in both a basic and developmental way to
            understanding, forecasting, and delivering agricultural
            weather information.
              [(2) Competitive basis.--Grants made under this
            subsection shall be made on a competitive basis.
      [(d) Priority.--In selecting among applications for grants
    under subsection (c), the Secretary shall give priority to
    proposals which emphasize--
              [(1) techniques and processes that relate to weather-
            induced agricultural losses, and to improving the
            advisory information on weather extremes such as
            drought, floods, freezes, and storms well in advance of
            their actual occurrence;
              [(2) the improvement of site-specific weather data
            collection and forecasting; or
              [(3) the impact of weather on economic and
            environmental costs in agricultural production.

    [SEC. 1640. STATE AGRICULTURAL WEATHER INFORMATION SYSTEMS.

      [(a) Advisory Program Grants.--
              [(1) Grants required.--With funds allocated to carry
            out this section, the Secretary of Agriculture shall
            make grants to not fewer than 10 eligible States to
            plan and administer, in cooperation with persons
            described in paragraph (2), advisory programs for State
            agricultural weather information systems.
              [(2) Persons described.--The persons referred to in
            paragraph (1) are the Director of the Agricultural
            Weather Office, the Director of the National Institute
            of Food and Agriculture, and other persons as
            appropriate (such as the directors of the appropriate
            State agricultural experiment stations and State
            extension programs).
      [(b) Consultation.--For purposes of selecting among
    applications submitted by States for grants under this section,
    the Secretary shall consult with the Director.
      [(c) Eligibility Requirements.--To be eligible to receive a
    grant under this section, the chief executive officer of a
    State shall submit to the Secretary an application that
    contains--
              [(1) assurances that the State will expend such grant
            to plan and administer a State agricultural weather
            system that will--
                      [(A) collect observational weather data
                    throughout the State and provide such data to
                    the National Weather Service and the
                    Agricultural Weather Office;
                      [(B) develop methods for packaging
                    information received from the national system
                    for use by agricultural producers (with State
                    Cooperative Extension Services and the private
                    sector to serve as the primary conduit of
                    agricultural weather forecasts and climatic
                    information to producers); and
                      [(C) develop programs to educate agricultural
                    producers on how to best use weather and
                    climate information to improve management
                    decisions; and
              [(2) such other assurances and information as the
            Secretary may require by rule.

    [SEC. 1641. FUNDING.

      [(a) Allocation of Funds.--
              [(1) Cooperative work.--Not less than 15 percent and
            not more than 25 percent of the funds appropriated for
            a fiscal year to carry out this subtitle shall be used
            for cooperative work with the National Weather Service
            entered into under section 1638(b)(1).
              [(2) Competitive grants program.--Not less than 15
            percent and not more than 25 percent of such funds
            shall be used by the National Institute of Food and
            Agriculture for a competitive grants program under
            section 1638(c).
              [(3) Weather information systems.--Not less than 25
            percent and not more than 35 percent of such funds
            shall be divided equally between the participating
            States selected for that fiscal year under section
            1640.
              [(4) Other purposes.--The remaining funds shall be
            allocated for use by the Agricultural Weather Office
            and the National Institute of Food and Agriculture in
            carrying out generally the provisions of this subtitle.
      [(b) Limitations on Use of Funds.--Funds provided under the
    authority of this subtitle shall not be used for the
    construction of facilities. Each State or agency receiving
    funds shall not use more than 30 percent of such funds for
    equipment purchases. Any use of the funds in facilitating the
    distribution of agricultural and climate information to
    producers shall be done with consideration for the role that
    the private meteorological sector can play in such information
    delivery.
      [(c) Authorization of Appropriations.--There are authorized
    to be appropriated $5,000,000 to carry out this subtitle for
    each of the fiscal years 2008 through 2012.]

               *       *       *       *       *       *       *

    Subtitle H--Miscellaneous Research Provisions

               *       *       *       *       *       *       *

    [SEC. 1670. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.

      [(a) Definitions.--In this section:
              [(1) Development center.--The term ``development
            center'' means--
                      [(A) the North Central Regional Center for
                    Rural Development;
                      [(B) the Northeast Regional Center for Rural
                    Development or its designee;
                      [(C) the Southern Rural Development Center;
                    and
                      [(D) the Western Rural Development Center or
                    its designee.
              [(2) Extension program.--The term ``extension
            program'' means the rural electronic commerce extension
            program established under subsection (b).
              [(3) Microenterprise.--The term ``microenterprise''
            means a commercial enterprise that has 5 or fewer
            employees, 1 or more of whom own the enterprise.
              [(4) Secretary.--The term ``Secretary'' means the
            Secretary of Agriculture, acting through the Director
            of the National Institute of Food and Agriculture.
              [(5) Small business.--The term ``small business'' has
            the meaning given the term ``small-business concern''
            by section 3(a) of the Small Business Act (15 U.S.C.
            632(a)).
      [(b) Establishment.--The Secretary shall establish a rural
    electronic commerce extension program to expand and enhance
    electronic commerce practices and technology to be used by
    small businesses and microenterprises in rural areas.
      [(c) Grants.--
              [(1) In general.--The Secretary shall carry out the
            program established under subsection (b) by making--
                      [(A) grants to each of the development
                    centers; and
                      [(B) competitive grants to land-grant
                    colleges and universities (or consortia of
                    land-grant colleges and universities) and to
                    colleges and universities (including community
                    colleges) with agricultural or rural
                    development programs--
                              [(i) to develop and facilitate
                            innovative rural electronic commerce
                            business strategies; and
                              [(ii) to assist small businesses and
                            microenterprises in identifying,
                            adapting, implementing, and using
                            electronic commerce business practices
                            and technologies.
              [(2) Eligibility.--The selection criteria established
            for grants awarded under paragraph (1)(B) shall
            include--
                      [(A) the ability of an applicant to provide
                    training and education on best practices,
                    technology transfer, adoption, and use of
                    electronic commerce in rural communities by
                    small businesses and microenterprises;
                      [(B) the extent and geographic diversity of
                    the area served by the proposed project or
                    activity under the extension program;
                      [(C) in the case of a land-grant college or
                    university, the extent of participation of the
                    land-grant college or university in the
                    extension program (including any economic
                    benefits that would result from that
                    participation);
                      [(D) the percentage of funding and in-kind
                    commitments from non-Federal sources that would
                    be needed by and available for a proposed
                    project or activity under the extension
                    program; and
                      [(E) the extent of participation of low-
                    income and minority businesses or
                    microenterprises in a proposed project or
                    activity under the extension program.
              [(3) Non-federal share.--
                      [(A) In general.--As a condition of the
                    receipt of funds under this section, a
                    development center or grant applicant shall
                    agree to obtain from non-Federal sources
                    (including State, local, nonprofit, or private
                    sector sources) contributions of an amount
                    equal to 50 percent of the grant amount.
                      [(B) Form.--The non-Federal share required
                    under subparagraph (A) may be provided in the
                    form of in-kind contributions.
                      [(C) Exception.--The non-Federal share
                    required under subparagraph (A) may be reduced
                    to 25 percent if the grant recipient serves
                    low-income or minority-owned businesses or
                    microenterprises, as determined by the
                    Secretary.
      [(d) Report.--Not later than 2 years after the date of
    enactment of this section, the Secretary shall submit to the
    Committee on Agriculture of the House of Representatives and
    the Committee on Agriculture, Nutrition, and Forestry of the
    Senate a report that describes--
              [(1) the policies, practices, and procedures used to
            assist rural communities in efforts to adopt and use
            electronic commerce techniques; and
      [(e) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $60,000,000 for each
    of fiscal years 2002 through 2007, of which not less than \1/3\
    of the amount made available for each fiscal year shall be used
    to carry out activities under subsection (c)(1)(A).

    [SEC. 1671. AGRICULTURAL GENOME INITIATIVE.

      [(a) Goals.--The goals of this section are--
              [(1) to expand the knowledge of public and private
            sector entities and persons concerning genomes for
            species of importance to the food and agriculture
            sectors in order to maximize the return on the
            investment in genomics of agriculturally important
            species;
              [(2) to focus on the species that will yield
            scientifically important results that will enhance the
            usefulness of many agriculturally important species;
              [(3) to build on genomic research, such as the Human
            Genome Initiative and the Arabidopsis Genome Project,
            to understand gene structure and function that is
            expected to have considerable payoffs in agriculturally
            important species;
              [(4) to develop improved bioinformatics to enhance
            both sequence or structure determination and analysis
            of the biological function of genes and gene products;
              [(5) to encourage Federal Government participants to
            maximize the utility of public and private partnerships
            for agricultural genome research;
              [(6) to allow resources developed under this section,
            including data, software, germplasm, and other
            biological materials, to be openly accessible to all
            persons, subject to any confidentiality requirements
            imposed by law; and
              [(7) to encourage international partnerships with
            each partner country responsible for financing its own
            strategy for agricultural genome research.
      [(b) Duties of Secretary.--The Secretary of Agriculture
    (referred to in this section as the ``Secretary'') shall
    conduct a research initiative (to be known as the
    ``Agricultural Genome Initiative'') for the purpose of--
              [(1) studying and mapping agriculturally significant
            genes to achieve sustainable and secure agricultural
            production;
              [(2) ensuring that current gaps in existing
            agricultural genetics knowledge are filled;
              [(3) identifying and developing a functional
            understanding of genes responsible for economically
            important traits in agriculturally important species,
            including emerging plant and animal pathogens and
            diseases causing economic hardship;
              [(4) ensuring future genetic improvement of
            agriculturally important species;
              [(5) supporting preservation of diverse germplasm;
              [(6) ensuring preservation of biodiversity to
            maintain access to genes that may be of importance in
            the future;
              [(7) reducing the economic impact of plant pathogens
            on commercially important crop plants; and
              [(8) otherwise carrying out this section.
      [(c) Grants and Cooperative Agreements.--
              [(1) Authority.--The Secretary may make grants or
            enter into cooperative agreements with individuals and
            organizations in accordance with section 1472 of the
            National Agricultural Research, Extension, and Teaching
            Policy Act of 1977 (7 U.S.C. 3318).
              [(2) Competitive basis.--A grant or cooperative
            agreement under this subsection shall be made or
            entered into on a competitive basis.
      [(d) Administration.--Paragraphs (4), (7), (8), and (11)(B)
    of subsection (b) of the Competitive, Special, and Facilities
    Research Grant Act (7 U.S.C. 450i) shall apply with respect to
    the making of a grant or cooperative agreement under this
    section.
      [(e) Matching of Funds.--
              [(1) General requirement.--If a grant or cooperative
            agreement under this section provides a particular
            benefit to a specific agricultural commodity, the
            Secretary shall require the recipient to provide funds
            or in-kind support to match the amount of funds
            provided by the Secretary under the grant or
            cooperative agreement.
              [(2) Waiver.--The Secretary may waive the matching
            funds requirement of paragraph (1) with respect to a
            research project if the Secretary determines that--
                      [(A) the results of the project, while of
                    particular benefit to a specific agricultural
                    commodity, are likely to be applicable to
                    agricultural commodities generally; or
                      [(B) the project involves a minor commodity,
                    the project deals with scientifically important
                    research, and the recipient is unable to
                    satisfy the matching funds requirement.
      [(f) Consultation With National Academy of Sciences.--The
    Secretary may use funds made available under this section to
    consult with the National Academy of Sciences regarding the
    administration of the Agricultural Genome Initiative.]

    SEC. 1672. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

      (a) Competitive Specialized Research and Extension Grants
    Authorized.--The Secretary of Agriculture (referred to in this
    section as the ``Secretary'') may make competitive grants to
    support research and extension activities specified in
    [subsections (e) through (i)] subsections (e) through (g). The
    Secretary shall make the grants in consultation with the
    National Agricultural Research, Extension, Education, and
    Economics Advisory Board.
      (b) Administration.--
              (1) * * *
              (2) Use of task forces.--To facilitate the making of
            research and extension grants under this section in the
            research and extension areas specified in [subsections
            (e) through (i)] subsections (e) through (g), the
            Secretary may appoint a task force for each such area
            to make recommendations to the Secretary. The Secretary
            may not incur costs in excess of $1,000 for any fiscal
            year in connection with each task force established
            under this paragraph.
      (c) Matching Funds Required.--
              (1) * * *
              (2) Waiver authority.--The Secretary may waive the
            matching funds requirement specified in paragraph (1)
            with respect to a research project if the Secretary
            determines that--
                      (A) the results of the project, while of
                    particular benefit to a specific agricultural
                    commodity, are likely to be applicable to
                    agricultural commodities generally; [or]
                      (B) the project involves a minor commodity,
                    the project deals with scientifically important
                    research, and the grant recipient is unable to
                    satisfy the matching funds requirement[.]; or
                      (C) the project involves a pest that has been
                    designated as a pest of public health
                    significance by the Environmental Protection
                    Agency and the Centers for Disease Control and
                    Prevention, as described in section 2(nn) of
                    the Federal Insecticide, Fungicide, and
                    Rodenticide Act (7 U.S.C. 136(nn)).

               *       *       *       *       *       *       *

      [(e) High-Priority Research and Extension Areas.--
              [(1) Ethanol research and extension.--Research and
            extension grants may be made under this section for the
            purpose of carrying out or enhancing research on
            ethanol derived from agricultural crops as an
            alternative fuel source.
              [(2) Aflatoxin research and extension.--Research and
            extension grants may be made under this section for the
            purpose of identifying, improving, and eventually
            commercializing, alfatoxin controls in corn and other
            affected agricultural products and crops.
              [(3) Prickly pear research and extension.--Research
            and extension grants may be made under this section for
            the purpose of investigating enhanced genetic selection
            and processing techniques of prickly pears.
              [(4) Deer tick ecology research and extension.--
            Research and extension grants may be made under this
            section for the purpose of studying the population
            ecology of deer ticks and other insects and pests that
            transmit Lyme disease.
              [(5) Peanut market enhancement research and
            extension.--Research and extension grants may be made
            under this section for the purpose of evaluating the
            economics of applying innovative technologies for
            peanut processing in a commercial environment.
              [(6) Dairy financial risk management research and
            extension.--Research and extension grants may be made
            under this section for the purpose of providing
            research, development, or education materials,
            information, and outreach programs regarding risk
            management strategies for dairy producers and for dairy
            cooperatives and other processors and marketers of
            milk.
              [(7) Cotton research and extension.--Research and
            extension grants may be made under this section for the
            purpose of improving pest management, fiber quality
            enhancement, economic assessment, textile production,
            and optimized production systems for short staple
            cotton.
              [(8) Methyl bromide research and extension.--Research
            and extension grants may be made under this section for
            the purpose of--
                      [(A) developing and evaluating chemical and
                    nonchemical alternatives, and use and emission
                    reduction strategies, for pre-planting and
                    post-harvest uses of methyl bromide; and
                      [(B) transferring the results of the research
                    for use by agricultural producers.
              [(9) Potato research and extension.--Research and
            extension grants may be made under this section for the
            purpose of developing and evaluating new strains of
            potatoes that are resistant to blight and other
            diseases, as well as insects. Emphasis may be placed on
            developing potato varieties that lend themselves to
            innovative marketing approaches.
              [(10) Wood use research and extension.--Research and
            extension grants may be made under this section for the
            purpose of developing new uses for wood from underused
            tree species as well as investigating methods of
            modifying wood and wood fibers to produce better
            building materials.
              [(11) Wetlands use research and extension.--Research
            and extension grants may be made under this section for
            the purpose of better use of wetlands in diverse ways
            to provide various economic, agricultural, and
            environmental benefits.
              [(12) Food safety, including pathogen detection and
            limitation, research and extension.--Research and
            extension grants may be made under this section for the
            purpose of increasing food safety, including the
            identification of advanced detection and processing
            methods to limit the presence of pathogens (including
            hepatitis A and E. coli 0157:H7) in domestic and
            imported foods.
              [(13) Financial risk management research and
            extension.--Research and extension grants may be made
            under this section for the purpose of providing
            research, development, or education materials,
            information, and outreach programs regarding financial
            risk management strategies for agricultural producers
            and for cooperatives and other processors and marketers
            of any agricultural commodity.
              [(14) Ornamental tropical fish research and
            extension.--Research and extension grants may be made
            under this section for the purpose of meeting the needs
            of commercial producers of ornamental tropical fish and
            aquatic plants for improvements in the areas of fish
            reproduction, health, nutrition, predator control,
            water use, water quality control, and farming
            technology.
              [(15) Gypsy moth research and extension.--Research
            and extension grants may be made under this section for
            the purpose of developing biological control,
            management, and eradication methods against nonnative
            insects, including Lymantria dispar (commonly known as
            the ``gypsy moth''), that contribute to significant
            agricultural, economic, or environmental harm.
              [(16) Tomato spotted wilt virus research and
            extension.--Research and extension grants may be made
            under this section for the purpose of control,
            management, and eradication of tomato spotted wilt
            virus.
              [(17) Genetically modified agriculture products
            (gmap) research.--Research grants may be made under
            this section for the purposes of providing unbiased,
            science-based evaluation of the risks and benefits to
            the public and the environment of specific genetically
            modified plant and animal products. Grants may be used
            to form interdisciplinary teams to review and conduct
            research on scientific, social, economic, and ethical
            issues during the review process, to answer questions
            raised by the release of new genetically modified
            agriculture products, to conduct fundamental studies on
            the health and environmental safety of genetically
            modified agriculture products (including quantitative
            risk assessment, the effect of specific genetically
            modified agriculture products on human health, and gene
            flow studies), to communicate the risk of genetically
            modified agriculture products through extension and
            education programs, and to engage the public and
            industry in relevant issues.
              [(18) 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.
              [(19) 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.
              [(20) 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.
              [(21) 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 of agrotourism.
              [(22) 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.
              [(23) 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.
              [(24) 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.
              [(25) Plant gene expression.--Research 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.
              [(26) Animal infectious diseases research.--Research
            and extension grants may be made under this section for
            the purpose of developing prevention and control
            methodologies for animal infectious diseases (including
            evaluation under field conditions in countries in which
            an animal disease occurs) such as laboratory tests for
            quicker detection of infected animals and presence of
            disease, prevention strategies (including vaccination
            programs), and rapid diagnostic techniques for animal
            disease agents considered to be risks for agricultural
            bioterrorism attack.
              [(27) Program to combat childhood obesity.--Research
            and extension grants may be made under this section to
            institutions of higher education with demonstrated
            capacity in basic and clinical obesity research,
            nutrition research, and community health education
            research to develop and evaluate community-wide
            strategies that catalyze partnerships between families
            and health care, education, recreation, mass media, and
            other community resources to reduce the incidence of
            childhood obesity.
              [(28) Integrated pest management.--Research and
            extension grants may be made under this section to
            coordinate and improve research, education, and
            outreach on, and implementation on farms of, integrated
            pest management.
              [(29) Sugarcane genetics.--Research grants may be
            made under this section for the purpose of maintaining
            acceptable yields under reduced production inputs,
            implementing marker-assisted breeding strategies and
            other basic plant genomic technologies to screen for
            improved plant resistance to diseases, weeds, and
            insects toward minimizing pesticide use, enhancing
            food, fiber and energy production, and developing
            varieties for maximum performance under prevailing
            conditions, including management for improved soil and
            water conservation.
              [(30) Air emissions from livestock operations.--
            Research and extension grants may be made under this
            section for the purpose of conducting field
            verification tests and developing mitigation options
            for air emissions from animal feeding operations.
              [(31) Swine genome project.--Research grants may be
            made under this section to conduct swine genome
            research, including the mapping of the swine genome.
              [(32) Cattle fever tick program.--Research and
            extension grants may be made under this section to
            study cattle fever ticks to facilitate understanding of
            the role of wildlife in the persistence and spread of
            cattle fever ticks, to develop advanced methods for
            eradication of cattle fever ticks, and to improve
            management of diseases relating to cattle fever ticks
            that are associated with wildlife, livestock, and human
            health.
              [(33) Synthetic gypsum.--Research and extension
            grants may be made under this section to study the uses
            of synthetic gypsum from electric power plants to
            remediate soil and nutrient losses.
              [(34) Cranberry research program.--Research and
            extension grants may be made under this section to
            study new technologies to assist cranberry growers in
            complying with Federal and State environmental
            regulations, increase production, develop new growing
            techniques, establish more efficient growing
            methodologies, and educate cranberry producers about
            sustainable growth practices.
              [(35) Sorghum research initiative.--Research and
            extension grants may be made under this section to
            study the use of sorghum as a bioenergy feedstock,
            promote diversification in, and the environmental
            benefits of sorghum production, and promote water
            conservation through the use of sorghum.
              [(36) Marine shrimp farming program.--Research and
            extension grants may be made under this section to
            establish a research program to advance and maintain a
            domestic shrimp farming industry in the United States.
              [(37) Turfgrass research initiative.--Research and
            extension grants may be made under this section to
            study the production of turfgrass (including the use of
            water, fertilizer, pesticides, fossil fuels, and
            machinery for turf establishment and maintenance) and
            environmental protection and enhancement relating to
            turfgrass production.
              [(38) Agricultural worker safety research
            initiative.--Research and extension grants may be made
            under this section--
                      [(A) to study and demonstrate methods to
                    minimize exposure of farm and ranch owners and
                    operators, pesticide handlers, and agricultural
                    workers to pesticides, including research
                    addressing the unique concerns of farm workers
                    resulting from long-term exposure to
                    pesticides; and
                      [(B) to develop rapid tests for on-farm use
                    to better inform and educate farmers, ranchers,
                    and farm and ranch workers regarding safe field
                    re-entry intervals.
              [(39) High plains aquifer region.--Research and
            extension grants may be made under this section to
            carry out interdisciplinary research relating to
            diminishing water levels and increased demand for water
            in the High Plains aquifer region.
              [(40) Deer initiative.--Research and extension grants
            may be made under this section to support collaborative
            research focusing on the development of viable
            strategies for the prevention, diagnosis, and treatment
            of infectious, parasitic, and toxic diseases of farmed
            deer and the mapping of the deer genome.
              [(41) Pasture-based beef systems research
            initiative.--Research and extension grants may be made
            under this section to study the development of forage
            sequences and combinations for cow-calf, heifer
            development, stocker, and finishing systems, to deliver
            optimal nutritive value for efficient production of
            cattle for pasture finishing, to optimize forage
            systems to improve marketability of pasture-finished
            beef, and to assess the effect of forage quality on
            reproductive fitness.
              [(42) Agricultural practices relating to climate
            change.--Research and extension grants may be made
            under this section for field and laboratory studies
            that examine the ecosystem from gross to minute scales
            and for projects that explore the relationship of
            agricultural practices to climate change.
              [(43) Brucellosis control and eradication.--Research
            and extension grants may be made under this section to
            conduct research relating to the development of
            vaccines and vaccine delivery systems to effectively
            control and eliminate brucellosis in wildlife, and to
            assist with the controlling of the spread of
            brucellosis from wildlife to domestic animals.
              [(44) Bighorn and domestic sheep disease
            mechanisms.--Research and extension grants may be made
            under this section to conduct research relating to the
            health status of (including the presence of infectious
            diseases in) bighorn and domestic sheep under range
            conditions.
              [(45) Agricultural development in the american-
            pacific region.--Research and extension grants may be
            made under this section to support food and
            agricultural science at a consortium of land-grant
            institutions in the American-Pacific region.
              [(46) Tropical and subtropical agricultural
            research.--Research grants may be made under this
            section, in equal dollar amounts to the Caribbean and
            Pacific Basins, to support tropical and subtropical
            agricultural research, including pest and disease
            research, at the land-grant institutions in the
            Caribbean and Pacific regions.
              [(47) Viral hemorrhagic septicemia.--Research and
            extension grants may be made under this section to
            study--
                      [(A) the effects of viral hemorrhagic
                    septicemia (referred to in this paragraph as
                    ``VHS'') on freshwater fish throughout the
                    natural and expanding range of VHS; and
                      [(B) methods for transmission and human-
                    mediated transport of VHS among waterbodies.
              [(48) Farm and ranch safety.--Research and extension
            grants may be made under this section to carry out
            projects to decrease the incidence of injury and death
            on farms and ranches, including--
                      [(A) on-site farm or ranch safety reviews;
                      [(B) outreach and dissemination of farm
                    safety research and interventions to
                    agricultural employers, employees, youth, farm
                    and ranch families, seasonal workers, or other
                    individuals; and
                      [(C) agricultural safety education and
                    training.
              [(49) Women and minorities in stem fields.--Research
            and extension grants may be made under this section to
            increase participation by women and underrepresented
            minorities from rural areas in the fields of science,
            technology, engineering, and mathematics, with priority
            given to eligible institutions that carry out
            continuing programs funded by the Secretary.
              [(50) Alfalfa and forage research program.--Research
            and extension grants may be made under this section for
            the purpose of studying improvements in alfalfa and
            forage yields, biomass and persistence, pest pressures,
            the bioenergy potential of alfalfa and other forages,
            and systems to reduce losses during harvest and
            storage.
              [(51) Food systems veterinary medicine.--Research
            grants may be made under this section to address health
            issues that affect food-producing animals, food safety,
            and the environment, and to improve information
            resources, curriculum, and clinical education of
            students with respect to food animal veterinary
            medicine and food safety.
              [(52) Biochar research.--Grants may be made under
            this section for research, extension, and integrated
            activities relating to the study of biochar production
            and use, including considerations of agronomic and
            economic impacts, synergies of coproduction with
            bioenergy, and the value of soil enhancements and soil
            carbon sequestration.
      [(f) Imported Fire Ant Control, Management, and
    Eradication.--
              [(1) Task force.--The Secretary shall establish a
            task force pursuant to subsection (b)(2) regarding the
            control, management, and eradication of imported fire
            ants. The Secretary shall solicit and evaluate grant
            proposals under this subsection in consultation with
            the task force.
              [(2) Initial grants.--
                      [(A) Request for proposals.--The Secretary
                    shall publish a request for proposals for
                    grants for research or demonstration projects
                    related to the control, management, and
                    possible eradication of imported fire ants.
                      [(B) Selection.--Not later than 1 year after
                    the date of publication of the request for
                    proposals, the Secretary shall evaluate the
                    grant proposals submitted in response to the
                    request and may select meritorious research or
                    demonstration projects related to the control,
                    management, and possible eradication of
                    imported fire ants to receive an initial grant
                    under this subsection.
              [(3) Subsequent grants.--
                      [(A) Evaluation of initial grants.--If the
                    Secretary awards grants under paragraph (2)(B),
                    the Secretary shall evaluate all of the
                    research or demonstration projects conducted
                    under the grants for their use as the basis of
                    a national plan for the control, management,
                    and possible eradication of imported fire ants
                    by the Federal Government, State and local
                    governments, and owners and operators of land.
                      [(B) Selection.--On the basis of the
                    evaluation under subparagraph (A), the
                    Secretary may select the projects that the
                    Secretary considers most promising for
                    additional research or demonstration related to
                    preparation of a national plan for the control,
                    management, and possible eradication of
                    imported fire ants. The Secretary shall notify
                    the task force of the projects selected under
                    this subparagraph.
              [(4) Selection and submission of national plan.--
                      [(A) Evaluation of subsequent grants.--If the
                    Secretary awards grants under paragraph (3)(B),
                    the Secretary shall evaluate all of the
                    research or demonstration projects conducted
                    under the grants for use as the basis of a
                    national plan for the control, management, and
                    possible eradication of imported fire ants by
                    the Federal Government, State and local
                    governments, and owners and operators of land.
                      [(B) Selection.--On the basis of the
                    evaluation under subparagraph (A), the
                    Secretary shall select 1 project funded under
                    paragraph (3)(B), or a combination of those
                    projects, for award of a grant for final
                    preparation of the national plan.
                      [(C) Submission.--The Secretary shall submit
                    to Congress the final national plan prepared
                    under subparagraph (B) for the control,
                    management, and possible eradication of
                    imported fire ants.]
      [(g)] (e) Formosan Termite, Bed Bugs, and Other Pests
    Research and Eradication.--
              (1) Research program.--The Secretary may make
            competitive research grants under this subsection to
            regional and multijurisdictional entities, local
            government planning organizations, and local
            governments for the purpose of conducting research for
            the control, management, and possible eradication of
            Formosan termites, bed bugs, and other pests, including
            pests that the Secretary determines are a risk to
            public health in the United States.
              (2) Eradication program.--The Secretary may enter
            into cooperative agreements with regional and
            multijurisdictional entities, local government planning
            organizations, and local governments for the purposes
            of--
                      (A) conducting projects for the control,
                    management, and possible eradication of
                    Formosan termites, bed bugs, and other pests,
                    including pests that the Secretary determines
                    are a risk to public health in the United
                    States; and

               *       *       *       *       *       *       *

              (3) Funding priority.--In allocating funds made
            available to carry out paragraph (2), the Secretary
            shall provide a higher priority for regions or
            locations with the highest historical rates of
            infestation of Formosan termites, bed bugs, and other
            pests, including pests that the Secretary determines
            are a risk to public health.

               *       *       *       *       *       *       *

      [(h)] (f) Pollinator Protection.--
              (1) Research and extension.--
                      (A) * * *
                      (B) Authorization of appropriations.--There
                    is authorized to be appropriated to carry out
                    this paragraph $10,000,000 for each of fiscal
                    years 2008 through [2012] 2017.
              (2) Department of agriculture capacity and
            infrastructure.--
                      (A) * * *
                      (B) Authorization of appropriations.--There
                    is authorized to be appropriated to carry out
                    this paragraph $7,250,000 for each of fiscal
                    years 2008 through [2012] 2017.
              (3) Honey bee pest and pathogen surveillance.--There
            is authorized to be appropriated to conduct a
            nationwide honey bee pest and pathogen surveillance
            program $2,750,000 for each of fiscal years 2008
            through [2012] 2017.
              (4) Annual report on response to honey bee colony
            collapse disorder.--The Secretary shall submit to the
            Committee on Agriculture of the House of
            Representatives and the Committee on Agriculture,
            Nutrition, and Forestry of the Senate an annual report
            describing the progress made by the Department of
            Agriculture in--
                      (A) investigating the cause or causes of
                    honey bee colony collapse and honey bee health
                    disorders; and
                      (B) finding appropriate strategies, including
                    best management practices to reduce colony
                    loss.
      [(i) Regional Centers of Excellence.--
              [(1) Esptablishment.--The Secretary shall prioritize
            regional centers of excellence established for specific
            agricultural commodities for the receipt of funding
            under this section.
              [(2) Composition.--A regional center of excellence
            shall be composed of 1 or more colleges and
            universities (including land-grant institutions,
            schools of forestry, schools of veterinary medicine, or
            NLGCA Institutions (as defined in section 1404 of the
            National Agricultural Research, Extension, and Teaching
            Policy Act of 1977 (7 U.S.C. 3103))) that provide
            financial support to the regional center of excellence.
              [(3) Criteria for regional centers of excellence.--
            The criteria for consideration to be a regional center
            of excellence shall include efforts--
                      [(A) to ensure coordination and cost-
                    effectiveness by reducing unnecessarily
                    duplicative efforts regarding research,
                    teaching, and extension;
                      [(B) to leverage available resources by using
                    public/private partnerships among agricultural
                    industry groups, institutions of higher
                    education, and the Federal Government;
                      [(C) to implement teaching initiatives to
                    increase awareness and effectively disseminate
                    solutions to target audiences through extension
                    activities;
                      [(D) to increase the economic returns to
                    rural communities by identifying, attracting,
                    and directing funds to high-priority
                    agricultural issues; and
                      [(E) to improve teaching capacity and
                    infrastructure at colleges and universities
                    (including land-grant institutions, schools of
                    forestry, and schools of veterinary medicine).]
      (g) Bed Bug Control.--
              (1) Authorization and use of grants.--The Secretary,
            in consultation with a task force appointed under
            subsection (b)(2), shall award grants under this
            subsection for purposes of--
                      (A) developing more efficacious methods of
                    detecting, preventing, and managing bed bugs;
                    and
                      (B) conducting basic and applied bed bug
                    biology research.
              (2) Grants.--
                      (A) Requests for proposals.--The Secretary
                    shall, not later than 180 days after the date
                    of the enactment of this subsection and in
                    consultation with the task force, publish a
                    request for openly competitive grant proposals
                    for research projects for the purposes
                    described in paragraph (1).
                      (B) Award of grants.--Not later than 180 days
                    after the date of such publication, the
                    Secretary shall--
                              (i) evaluate the grant proposals
                            referred to in subparagraph (A) in
                            consultation with the task force; and
                              (ii) award grants to entities that
                            submitted grant proposals for research
                            projects the Secretary determines are
                            meritorious for the purposes described
                            in paragraph (1).
                      (C) Notification requirement.--The Secretary
                    shall notify the task force of any award made
                    under subparagraph (B) not later than 30 days
                    after awarding such grant.
              (3) Consultation and coordination.--To expedite the
            approval or registration under section 3, section 18,
            or section 24 of the Federal Insecticide, Fungicide and
            Rodenticide Act (7 U.S.C. 136a, 136p, and 136v) of the
            methods identified or discovered through research
            projects funded under this subsection, the Secretary
            shall consult and coordinate with the Administrator of
            the Environmental Protection Agency regarding--
                      (A) the awarding of grants under this
                    subsection; and
                      (B) the evaluation of the results of such
                    research projects.
      [(j)] (h) Authorization of Appropriations.--There are
    authorized to be appropriated such sums as are necessary to
    carry out this section for each of fiscal years 1999 through
    [2012] 2017.

    [SEC. 1672A. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.

      [(a) Competitive Research and Extension Grants Authorized.--
    The Secretary of Agriculture (referred to in this section as
    the ``Secretary'') may make competitive grants to support
    research and extension activities specified in subsection (e).
    The Secretary shall make the grants in consultation with the
    National Agricultural Research, Extension, Education, and
    Economics Advisory Board.
      [(b) Administration.--
              [(1) In general.--Paragraphs (4), (7), (8), and
            (11)(B) of subsection (b) of the Competitive, Special,
            and Facilities Research Grant Act (7 U.S.C. 450i) shall
            apply with respect to the making of grants under this
            section.
              [(2) Use of task forces.--To facilitate the making of
            research and extension grants under this section in the
            research and extension areas specified in subsection
            (e), the Secretary may appoint a task force for each
            such area to make recommendations to the Secretary. The
            Secretary may not incur costs in excess of $1,000 for
            any fiscal year in connection with each task force
            established under this paragraph.
      [(c) Matching Funds Required.--
              [(1) In general.--The Secretary shall require the
            recipient of a grant under this section to provide
            funds or in-kind support from non-Federal sources in an
            amount at least equal to the amount provided by the
            Federal Government.
              [(2) Waiver authority.--The Secretary may waive the
            matching funds requirement specified in paragraph (1)
            with respect to a research project if the Secretary
            determines that--
                      [(A) the results of the project, while of
                    particular benefit to a specific agricultural
                    commodity, are likely to be applicable to
                    agricultural commodities generally; or
                      [(B) the project involves a minor commodity,
                    the project deals with scientifically important
                    research, and the grant recipient is unable to
                    satisfy the matching funds requirement.
      [(d) Priority.--Following the completion of a peer review
    process for grant proposals received under this section, the
    Secretary shall give priority to those grant proposals that
    involve--
              [(1) the cooperation of multiple entities; and
              [(2) States or regions with a high concentration of
            livestock, dairy, or poultry operations.
      [(e) Nutrient Management Research and Extension Areas.--
              [(1) Animal waste and odor management.--Research and
            extension grants may be made under this section for the
            purpose of--
                      [(A) identifying, evaluating, and
                    demonstrating innovative technologies for
                    animal waste management and related air quality
                    management and odor control;
                      [(B) investigating the unique microbiology of
                    specific animal wastes, such as swine waste and
                    dairy and beef cattle waste, to develop
                    improved methods to effectively manage air and
                    water quality; and
                      [(C) conducting information workshops to
                    disseminate the results of the research.
              [(2) Water quality and aquatic ecosystems.--Research
            and extension grants may be made under this section for
            the purpose of investigating the impact on aquatic food
            webs, especially commercially important aquatic species
            and their habitats, of microorganisms of the genus
            Pfiesteria and other microorganisms that are a threat
            to human or animal health.
              [(3) Rural and urban interface.--Research and
            extension grants may be made under this section for the
            purpose of identifying, evaluating, and demonstrating
            innovative technologies to be used for animal waste
            management (including odor control) in rural areas
            adjacent to urban or suburban areas in connection with
            waste management activities undertaken in urban or
            suburban areas.
              [(4) Animal feed.--Research and extension grants may
            be made under this section for the purpose of
            maximizing nutrition management for livestock, while
            limiting risks, such as mineral bypass, associated with
            livestock feeding practices.
              [(5) Alternative uses and renewable energy.--Research
            and extension grants may be made under this section for
            the purpose of finding innovative methods and
            technologies to allow agricultural operators to make
            use of animal waste, such as use as fertilizer, methane
            digestion, composting, and other useful byproducts.
      [(f) Authorization of Appropriations.--There are authorized
    to be appropriated such sums as are necessary to carry out this
    section for each of fiscal years 1999 through 2012.]

    SEC. 1672B. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.

      (a) * * *

               *       *       *       *       *       *       *

      [(e) Funding.--On October 1, 2003, and each October 1
    thereafter through October 1, 2007, out of any funds in the
    Treasury not otherwise appropriated, the Secretary of the
    Treasury shall transfer $3,000,000 to the Secretary of
    Agriculture for this section.]
      (e) Farm Business Management Encouraged.--Following the
    completion of a peer review process for grant proposals
    received under this section, the Secretary shall provide a
    priority to grant proposals found in the review process to be
    scientifically meritorious using the same criteria the
    Secretary uses to give priority to grants under section
    1672D(b).
      (f) Funding.--
              (1) In general.--Of the funds of the Commodity Credit
            Corporation, the Secretary shall make available to
            carry out this section--
                      (A) $18,000,000 for fiscal year 2009; [and]
                      (B) $20,000,000 for each of fiscal years 2010
                    through 2012[.]; and
                      (C) $16,000,000 for each of fiscal years 2013
                    through 2017.
              (2) Additional funding.--In addition to amounts made
            available under paragraph (1), there is authorized to
            be appropriated to carry out this section $25,000,000
            for each of fiscal years 2009 through [2012] 2017.

    [SEC. 1672C. AGRICULTURAL BIOENERGY FEEDSTOCK AND ENERGY EFFICIENCY
                        RESEARCH AND EXTENSION INITIATIVE.

      [(a) Establishment and Purpose.--There is established within
    the Department of Agriculture an agricultural bioenergy
    feedstock and energy efficiency research and extension
    initiative (referred to in this section as the ``Initiative'')
    for the purpose of enhancing the production of biomass energy
    crops and the energy efficiency of agricultural operations.
      [(b) Competitive Research and Extension Grants Authorized.--
    In carrying out this section, the Secretary shall make
    competitive grants to support research and extension activities
    specified in subsections (c) and (d).
      [(c) Agricultural Bioenergy Feedstock Research and Extension
    Areas.--
              [(1) In general.--Agricultural bioenergy feedstock
            research and extension activities funded under the
            Initiative shall focus on improving agricultural
            biomass production, biomass conversion in
            biorefineries, and biomass use by--
                      [(A) supporting on-farm research on crop
                    species, nutrient requirements, management
                    practices, environmental impacts, and
                    economics;
                      [(B) supporting the development and operation
                    of on-farm, integrated biomass feedstock
                    production systems;
                      [(C) leveraging the broad scientific
                    capabilities of the Department of Agriculture
                    and other entities in--
                              [(i) plant genetics and breeding;
                              [(ii) crop production;
                              [(iii) soil and water science;
                              [(iv) use of agricultural waste; and
                              [(v) carbohydrate, lipid, protein,
                            and lignin chemistry, enzyme
                            development, and biochemistry; and
                      [(D) supporting the dissemination of any of
                    the research conducted under this subsection
                    that will assist in achieving the goals of this
                    section.
              [(2) Selection criteria.--In selecting grant
            recipients for projects under paragraph (1), the
            Secretary shall consider--
                      [(A) the capabilities and experiences of the
                    applicant, including--
                              [(i) research in actual field
                            conditions; and
                              [(ii) engineering and research
                            knowledge relating to biofuels or the
                            production of inputs for biofuel
                            production;
                      [(B) the range of species types and cropping
                    practices proposed for study (including species
                    types and practices studied using side-by-side
                    comparisons of those types and practices);
                      [(C) the need for regional diversity among
                    feedstocks;
                      [(D) the importance of developing multiyear
                    data relevant to the production of biomass
                    feedstock crops;
                      [(E) the extent to which the project involves
                    direct participation of agricultural producers;
                      [(F) the extent to which the project proposal
                    includes a plan or commitment to use the
                    biomass produced as part of the project in
                    commercial channels; and
                      [(G) such other factors as the Secretary may
                    determine.
      [(d) Energy-Efficiency Research and Extension Areas.--On-farm
    energy-efficiency research and extension activities funded
    under the Initiative shall focus on developing and
    demonstrating technologies and production practices relating
    to--
              [(1) improving on-farm renewable energy production;
              [(2) encouraging efficient on-farm energy use;
              [(3) promoting on-farm energy conservation;
              [(4) making a farm or ranch energy-neutral; and
              [(5) enhancing on-farm usage of advanced technologies
            to promote energy efficiency.
      [(e) Best Practices Database.--The Secretary shall develop a
    best-practices database that includes information, to be
    available to the public, on--
              [(1) the production potential of a variety of biomass
            crops; and
              [(2) best practices for production, collection,
            harvesting, storage, and transportation of biomass
            crops to be used as a source of bioenergy.
      [(f) Administration.--
              [(1) In general.--Paragraphs (4), (7), (8), and
            (11)(B) of subsection (b) of the Competitive, Special,
            and Facilities Research Grant Act (7 U.S.C. 450i(b))
            shall apply with respect to making grants under this
            section.
              [(2) Consultation and coordination.--The Secretary
            shall--
                      [(A) make the grants in consultation with the
                    National Agricultural Research, Extension,
                    Education, and Economics Advisory Board; and
                      [(B) coordinate projects and activities
                    carried out under the Initiative with projects
                    and activities under section 9008 of the Farm
                    Security and Rural Investment Act of 2002 to
                    ensure, to the maximum extent practicable,
                    that--
                              [(i) unnecessary duplication of
                            effort is eliminated or minimized; and
                              [(ii) the respective strengths of the
                            Department of Agriculture and the
                            Department of Energy are appropriately
                            used.
              [(3) Grant priority.--The Secretary shall give
            priority to grant applications that integrate research
            and extension activities established under subsections
            (c) and (d), respectively.
              [(4) Matching funds required.--As a condition of
            receiving a grant under this section, the Secretary
            shall require the recipient of the grant to provide
            funds or in-kind support from non-Federal sources in an
            amount that is at least equal to the amount provided by
            the Federal Government.
              [(5) Partnerships encouraged.--Following the
            completion of a peer review process for grant proposals
            received under this section, the Secretary may provide
            a priority to those grant proposals found as a result
            of the peer review process--
                      [(A) to be scientifically meritorious; and
                      [(B) that involve cooperation--
                              [(i) among multiple entities; and
                              [(ii) with agricultural producers.
      [(g) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $50,000,000 for each
    of fiscal years 2008 through 2012.]

    SEC. 1672D. FARM BUSINESS MANAGEMENT.

      (a) * * *

               *       *       *       *       *       *       *

      (d) Authorization of Appropriations.--There are authorized to
    be appropriated [such sums as are necessary to carry out this
    section.] to carry out this section--
              (1) such sums as are necessary for fiscal year 2012;
            and
              (2) $5,000,000 for each of fiscal years 2013 through
            2017.

    SEC. 1673. REGIONAL CENTERS OF EXCELLENCE.

      (a) Funding Priorities.--The Secretary shall prioritize
    regional centers of excellence established for specific
    agricultural commodities for the receipt of funding for any
    competitive research or extension program administered by the
    Secretary.
      (b) Composition.--A regional center of excellence is composed
    of 1 or more of the eligible entities specified in section
    2(b)(7) of the Competitive, Special, and Facilities Research
    Grant Act (7 U.S.C. 450i(b)(7)).
      (c) Criteria for Regional Centers of Excellence.--The
    criteria for consideration to be recognized as a regional
    center of excellence shall include efforts--
              (1) to ensure coordination and cost effectiveness by
            reducing unnecessarily duplicative efforts regarding
            research, teaching, and extension;
              (2) to leverage available resources by using public/
            private partnerships among agricultural industry
            groups, institutions of higher education, and the
            Federal Government;
              (3) to implement teaching initiatives to increase
            awareness and effectively disseminate solutions to
            target audiences through extension activities;
              (4) to increase the economic returns to rural
            communities by identifying, attracting, and directing
            funds to high-priority agricultural issues; and
              (5) to improve teaching capacity and infrastructure
            at colleges and universities (including land-grant
            institutions, schools of forestry, schools of
            veterinary medicine, and NLGCA Institutions).

               *       *       *       *       *       *       *

    [SEC. 1676. RED MEAT SAFETY RESEARCH CENTER.

      [(a) Establishment of Center.--The Secretary of Agriculture
    shall award a grant, on a competitive basis, to a research
    facility described in subsection (b) to establish a red meat
    safety research center.
      [(b) Eligible Research Facility Described.--A research
    facility eligible for a grant under subsection (a) is a
    research facility that--
              [(1) is part of a land-grant college or university,
            or other federally supported agricultural research
            facility, located in close proximity to a livestock
            slaughter and processing facility; and
              [(2) is staffed by professionals with a wide
            diversity of scientific expertise covering all aspects
            of meat science.
      [(c) Research Conducted.--The red meat safety research center
    established under subsection (a) shall carry out research
    related to general food safety, including--an
              [(1) the development of intervention strategies that
            reduce microbiological contamination of carcass
            surfaces;
              [(2) research regarding microbiological mapping of
            carcass surfaces; and
              [(3) the development of model hazard analysis and
            critical control point plans.
      [(d) Administration of Funds.--The Secretary of Agriculture
    shall administer funds appropriated to carry out this section.
      [(e) Authorization of Appropriations.--There are authorized
    to be appropriated such sums as are necessary for fiscal year
    1997 to carry out this section.]

               *       *       *       *       *       *       *

    SEC. 1680. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Authorization of Appropriations.--
              (1) In general.--Subject to paragraph (2), there [is]
            are authorized to be appropriated to carry out this
            [section $6,000,000 for each of fiscal years 1999
            through 2012.] section--
                      (A) $6,000,000 for each of fiscal years 1999
                    through 2012; and
                      (B) $3,000,000 for each of fiscal years 2013
                    through 2017.

               *       *       *       *       *       *       *

    TITLE XXIII--RURAL DEVELOPMENT

               *       *       *       *       *       *       *

    Subtitle D--Enhancing Human Resources

               *       *       *       *       *       *       *

    SEC. 2335A. AUTHORIZATION OF APPROPRIATIONS.

      There are authorized to be appropriated to carry out this
    chapter [$100,000,000 for each of fiscal years 2008 through
    2012] $65,000,000 for each of fiscal years 2013 through 2017.

               *       *       *       *       *       *       *

               Subtitle G--Rural Revitalization Through Forestry

                    Chapter 1--Forestry Rural Revitalization

    SEC. 2371. FORESTRY RURAL REVITALIZATION.

      (a) * * *

               *       *       *       *       *       *       *

      (d) Rural Revitalization Technologies.--
              (1) * * *
              (2) Authorization of appropriations.--There is
            authorized to be appropriated to carry out this
            subsection $5,000,000 for each of fiscal years 2008
            through [2012] 2017.

               *       *       *       *       *       *       *

    SEC. 2381. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

      (a) * * *

               *       *       *       *       *       *       *

      (e) Limitation on Authorization of Appropriations.--To carry
    out this section, there are authorized to be appropriated
    $500,000 for each of the fiscal years 1991 through [2012] 2017.

               *       *       *       *       *       *       *

                      TITLE XXV--OTHER RELATED PROVISIONS

    SEC. 2501. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS
                        AND RANCHERS AND VETERAN FARMERS AND RANCHERS.

      (a) Outreach and Assistance.--
              (1) Program.--The Secretary of Agriculture shall
            carry out an outreach and technical assistance program
            to encourage and assist socially disadvantaged farmers
            and ranchers and veteran farmers or ranchers--
                      (A) * * *

               *       *       *       *       *       *       *

              (2) Requirements.--The outreach and technical
            assistance program under paragraph (1) shall be used
            exclusively--
                      (A) * * *
                      (B) to assist the Secretary in--
                              (i) reaching current and prospective
                            socially disadvantaged farmers or
                            ranchers and veteran farmers or
                            ranchers in a linguistically
                            appropriate manner; and

               *       *       *       *       *       *       *

              (4) Funding.--
                      (A) In general.--Of the funds of the
                    Commodity Credit Corporation, the Secretary
                    shall make available to carry out this
                    section--
                              (i) $15,000,000 for fiscal year 2009;
                            [and]
                              (ii) $20,000,000 for each of fiscal
                            years 2010 through 2012[.]; and
                              (iii) $10,000,000 for each of fiscal
                            years 2013 through 2017.

               *       *       *       *       *       *       *

                      (D) Authorization of appropriations.--There
                    is authorized to be appropriated to carry out
                    this section $20,000,000 for each of fiscal
                    years 2013 through 2017.
      (b) Designation of Federal Personnel.--
              (1) * * *
              (2) Additional personnel.--In counties or regions in
            which the number of socially disadvantaged farmers and
            ranchers or veteran farmers and ranchers exceeds 25
            percent of the total number of farmers and ranchers in
            the county or region, the Secretary shall designate
            additional personnel to implement the policies and
            programs established or modified in accordance with
            this section.
      (c) Report to Congress.--
              (1) In general.--Not later than September 30, 1992,
            and every two years thereafter, the Secretary shall
            report to the Committee on Agriculture of the House of
            Representatives and the Committee on Agriculture,
            Nutrition, and Forestry of the Senate, regarding--
                      (A) the efforts of the Secretary to enhance
                    participation by veteran farmers or ranchers
                    and members of socially disadvantaged groups in
                    agricultural programs;

               *       *       *       *       *       *       *

              (2) Contents.--In addition to the information
            specified in paragraph (1), the report required by
            paragraph (1) shall include--
                      (A) a comparison of the participation goals
                    and the actual participation rates of veteran
                    farmers or ranchers and members of socially
                    disadvantaged groups in each agricultural
                    program;

               *       *       *       *       *       *       *

      (e) Definitions.--
              (1) * * *

               *       *       *       *       *       *       *

              (5) Eligible entity.--The term ``eligible entity''
            means any of the following:
                      (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 and veteran farmers or
                            ranchers;
                              (ii) has provided to the Secretary
                            documentary evidence of work with, and
                            on behalf of, socially disadvantaged
                            farmers or ranchers and veteran farmers
                            or ranchers during the 3-year period
                            preceding the submission of an
                            application for assistance under
                            subsection (a); and

               *       *       *       *       *       *       *

              (7) Veteran farmer or rancher.--The term ``veteran
            farmer or rancher'' means a farmer or rancher who
            served in the active military, naval, or air service,
            and who was discharged or released from the service
            under conditions other than dishonorable.

               *       *       *       *       *       *       *

                                  ----------

                 FARM SECURITY AND RURAL INVESTMENT ACT OF 2002

               *       *       *       *       *       *       *
    TITLE III--TRADE

               *       *       *       *       *       *       *

    Subtitle B--Agricultural Trade Act of 1978

               *       *       *       *       *       *       *

    SEC. 3107. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD
                        NUTRITION PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (d) General Authorities.--The Secretary shall [to]--
              (1) * * *

               *       *       *       *       *       *       *

      (l) Funding.--
              (1) * * *
              (2) Authorization of appropriations.--There are
            authorized to be appropriated such sums as are
            necessary to carry out this section for each of fiscal
            years 2008 through [2012] 2017.

               *       *       *       *       *       *       *

    Subtitle C--Miscellaneous

               *       *       *       *       *       *       *

    SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

      (a) * * *
      (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] technical
    barriers to trade.

               *       *       *       *       *       *       *

      (e) Funding.--
              (1) * * *
              (2) Funding amounts.--Of the funds of the Commodity
            Credit Corporation, the Secretary shall use to carry
            out this section--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) $8,000,000 for fiscal year 2010; and
                      [(D) $9,000,000 for fiscal year 2011; and
                      [(E) $9,000,000 for fiscal year 2012.]
                      (D) $9,000,000 for each of fiscal years 2011
                    through 2017.

    TITLE IV--NUTRITION PROGRAMS

               *       *       *       *       *       *       *

    Subtitle D--Miscellaneous

               *       *       *       *       *       *       *

    SEC. 4402. [SENIORS] FARMERS' MARKET NUTRITION PROGRAM

      [(a) Establishment.--The Secretary of Agriculture shall use
    $5,000,000 for fiscal year 2002, and $15,000,000 for each of
    fiscal years 2003 through 2007, of the funds available to the
    Commodity Credit Corporation to carry out and expand a seniors
    farmers' market nutrition program.]
      (a) Funding.--
              (1) In general.--Of the funds of the Commodity Credit
            Corporation, the Secretary of Agriculture shall use to
            carry out and expand the farmers market nutrition
            program $20,600,000 for each of fiscal years 2013
            through 2017.
              (2) Additional funding.--There is authorized to be
            appropriated such sums as are necessary to carry out
            this subsection for each of fiscal years 2013 through
            2017.
      (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, and low-income families who are
            determined to be at nutritional risk;

               *       *       *       *       *       *       *

      (c) State Grants and Other Assistance.--The Secretary shall
    carry out the Program through grants and other assistance
    provided in accordance with agreements made with States, for
    implementation through State agencies and local agencies, that
    include provisions--
              (1) for the issuance of coupons or vouchers to
            participating individuals;
              (2) establishing an appropriate annual percentage
            limitation on the use of funds for administrative
            costs; and
              (3) specifying other terms and conditions as the
            Secretary deems appropriate to encourage expanding the
            participation of small scale farmers in Federal
            nutrition programs.
      [(c)] (d) Exclusion of benefits in determining eligibility
    for other programs.--The value of any benefit provided to any
    eligible [seniors] farmers' market nutrition program recipient
    under this section shall not be considered to be income or
    resources for any purposes under any Federal, State, or local
    law.
      [(d)] (e) Prohibition on collection of sales tax.--Each State
    shall ensure that no State or local tax is collected within the
    State on a purchase of food with a benefit distributed under
    the [seniors] farmers' market nutrition program.
      [(e)] (f) Regulations.--The Secretary may issue such
    regulations as the Secretary considers necessary to carry out
    the [seniors] farmers' market nutrition program.
      [(f)] (g) Federal Law Not Applicable.--Section 920 of the
    Electronic Fund Transfer Act shall not apply to electronic
    benefit transfer systems established under this section.

    [SEC. 4403. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

      [(a) Establishment.--The Secretary of Agriculture may
    establish, in not more than 5 States, for a period not to
    exceed 4 years for each participating State, a pilot program to
    increase the domestic consumption of fresh fruits and
    vegetables.
      [(b) Purpose.--
              [(1) In general.--Subject to paragraph (2), the
            purpose of the program shall be to provide funds to
            States solely for the purpose of assisting eligible
            public and private sector entities with cost-share
            assistance to carry out demonstration projects--
                      [(A) to increase fruit and vegetable
                    consumption; and
                      [(B) to convey related health promotion
                    messages.
              [(2) Limitation.--Funds made available to a State
            under the program shall not be used to disparage any
            agricultural commodity.
      [(c) Selection of States.--
              [(1) In general.--In selecting States to participate
            in the program, the Secretary shall take into
            consideration, with respect to projects and activities
            proposed to be carried out under the program--
                      [(A) experience in carrying out similar
                    projects or activities;
                      [(B) innovative approaches; and
                      [(C) the ability of the State to promote and
                    track increases in levels of fruit and
                    vegetable consumption.
              [(2) Enhancement of existing state programs.--The
            Secretary may use the pilot program to enhance existing
            State programs that are consistent with the purpose of
            the pilot program specified in subsection (b).
      [(d) Eligible Public and Private Sector Entities.--
              [(1) In general.--A participating State shall
            establish eligibility criteria under which the State
            may select public and private sector entities to carry
            out demonstration projects under the program.
              [(2) Limitation.--No funds made available to States
            under the program shall be provided by a State to any
            foreign for-profit corporation.
      [(e) Federal Share.--The Federal share of the cost of any
    project or activity carried out using funds provided under this
    section shall be 50 percent.
      [(f) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $10,000,000 for each
    of fiscal years 2002 through 2007.]

               *       *       *       *       *       *       *

    TITLE VI--RURAL DEVELOPMENT

               *       *       *       *       *       *       *

                           Subtitle E--Miscellaneous

    SEC. 6402. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (i) Authorization of Appropriations.--There is authorized to
    be appropriated to the Secretary to carry out this section
    [$6,000,000 for each of fiscal years 2008 through 2012]
    $1,000,000 for each of fiscal years 2013 through 2017.

               *       *       *       *       *       *       *

    TITLE VII--RESEARCH AND RELATED MATTERS

               *       *       *       *       *       *       *

    Subtitle D--New Authorities

               *       *       *       *       *       *       *

    SEC. 7405. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Grants.--
              (1) In general.--In carrying out this section, the
            Secretary shall make competitive grants to support new
            and established local and regional training, education,
            outreach, and technical assistance initiatives for
            beginning farmers or ranchers, including programs and
            services (as appropriate) relating to--
                      [(A) mentoring, apprenticeships, and
                    internships;
                      [(B) resources and referral;
                      [(C) assisting beginning farmers or ranchers
                    in acquiring land from retiring farmers and
                    ranchers;
                      [(D) innovative farm and ranch transfer
                    strategies;
                      [(E) entrepreneurship and business training;
                      [(F) model land leasing contracts;
                      [(G) financial management training;
                      [(H) whole farm planning;
                      [(I) conservation assistance;
                      [(J) risk management education;
                      [(K) diversification and marketing
                    strategies;
                      [(L) curriculum development;
                      [(M) understanding the impact of
                    concentration and globalization;
                      [(N) basic livestock and crop farming
                    practices;
                      [(O) the acquisition and management of
                    agricultural credit;
                      [(P) environmental compliance;
                      [(Q) information processing; and
                      [(R) other similar subject areas of use to
                    beginning farmers or ranchers.]
                      (A) basic livestock, forest management, and
                    crop farming practices;
                      (B) innovative farm, ranch, and private,
                    nonindustrial forest land transfer strategies;
                      (C) entrepreneurship and business training;
                      (D) financial and risk management training
                    (including the acquisition and management of
                    agricultural credit);
                      (E) natural resource management and planning;
                      (F) diversification and marketing strategies;
                      (G) curriculum development;
                      (H) mentoring, apprenticeships, and
                    internships;
                      (I) resources and referral;
                      (J) farm financial benchmarking;
                      (K) assisting beginning farmers or ranchers
                    in acquiring land from retiring farmers and
                    ranchers;
                      (L) agricultural rehabilitation and
                    vocational training for veterans; and
                      (M) other similar subject areas of use to
                    beginning farmers or ranchers.

               *       *       *       *       *       *       *

              (7) Priority.--In making grants under this
            subsection, the Secretary shall give priority to
            partnerships and collaborations that are led by or
            include nongovernmental [and community-based
            organizations], community-based organizations, and
            school-based agricultural educational organizations
            with expertise in new agricultural producer training
            and outreach.
              [(8) Set-aside.--Not less than 25 percent of funds
            used to carry out this subsection for a fiscal year
            shall be used to support programs and services that
            address the needs of--
                      [(A) limited resource beginning farmers or
                    ranchers (as defined by the Secretary);
                      [(B) socially disadvantaged beginning farmers
                    or ranchers (as defined in section 355(e) of
                    the Consolidated Farm and Rural Development Act
                    (7 U.S.C. 2003(e)); and
                      [(C) farmworkers desiring to become farmers
                    or ranchers.]
              (8) Military veteran beginning farmers and
            ranchers.--
                      (A) In general.--Not less than 5 percent of
                    the funds used to carry out this subsection for
                    a fiscal year shall be used to support programs
                    and services that address the needs of military
                    veteran beginning farmers and ranchers.
                      (B) Coordination permitted.--A recipient of a
                    grant under this section using the grant as
                    described in subparagraph (A) may coordinate
                    with a recipient of a grant under section 1680
                    of the Food, Agriculture, Conservation, and
                    Trade Act of 1990 (7 U.S.C. 5933) in addressing
                    the needs of military veteran beginning farmers
                    and ranchers with disabilities.

               *       *       *       *       *       *       *

              (11) Limitation on indirect costs.--A recipient of a
            grant under this section may not use more than 10
            percent of the funds provided by the grant for the
            indirect costs of carrying out the initiatives
            described in paragraph (1).

               *       *       *       *       *       *       *

      (h) Funding.--
              (1) In general.--Of the funds of the Commodity Credit
            Corporation, the Secretary shall make available to
            carry out this section--
                      (A) $18,000,000 for fiscal year 2009; [and]
                      (B) $19,000,000 for each of fiscal years 2010
                    through 2012[.]; and
                      (C) $10,000,000 for each of fiscal years 2013
                    through 2017, to remain available until
                    expended.
              (2) Authorization of appropriations.--In addition to
            funds provided under paragraph (1), there is authorized
            to be appropriated to carry out this section
            $30,000,000 for each of fiscal years 2008 through
            [2012] 2017.

               *       *       *       *       *       *       *

    SEC. 7407. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.

      (a) * * *

               *       *       *       *       *       *       *

      (d) Funding.--
              (1) In general.--Of the funds of the Commodity Credit
            Corporation, the Secretary shall use to carry out this
            section $5,000,000, to remain available until expended.
              (2) Mandatory funding.--In addition to funds made
            available under paragraph (1), of the funds of the
            Commodity Credit Corporation, the Secretary shall use
            to carry out this section $5,000,000, to remain
            available until expended.
              [(2)] (3) Additional funding.--In addition to funds
            made available under [paragraph (1)] paragraphs (1) and
            (2), there are authorized to be appropriated to carry
            out this section not more than $5,000,000 for each of
            fiscal years 2008 through [2012] 2017, to remain
            available until expended.

               *       *       *       *       *       *       *

    [SEC. 7409. REPORT ON PRODUCERS AND HANDLERS OF ORGANIC AGRICULTURAL
                        PRODUCTS.

      [Not later than 1 year after funds are made available to
    carry out this section, the Secretary shall submit to Congress
    a report that--
              [(1) describes--
                      [(A) the extent to which producers and
                    handlers of organic agricultural products are
                    contributing to research and promotion programs
                    of the Department;
                      [(B) the extent to which producers and
                    handlers of organic agricultural products are
                    surveyed for ideas for research and promotion;
                      [(C) ways in which the programs reflect the
                    contributions made by producers and handlers of
                    organic agricultural products and directly
                    benefit the producers and handlers; and
                      [(D) the implementation of initiatives that
                    directly benefit organic producers and
                    handlers; and
              [(2) evaluates industry and other proposals for
            improving the treatment of certified organic
            agricultural products under Federal marketing orders,
            including proposals to target additional resources for
            research and promotion of organic products and to
            differentiate between certified organic and other
            products in new or existing volume limitations or other
            orderly marketing requirements.

    [SEC. 7410. REPORT ON GENETICALLY MODIFIED PEST-PROTECTED PLANTS.

      [It is the sense of Congress that, not later than 1 year
    after the date of enactment of this Act, the Secretary should--
              [(1) review the recommendations of the Committee on
            Genetically Modified Pest-Protected Plants of the Board
            on Agriculture and Natural Resources of the National
            Research Council made during 2000 and the Committee on
            Environmental Impacts Associated with Commercialization
            of Transgenic Plants made during 2002, concerning food
            safety, ecological research, monitoring needs for
            transgenic crops with plant incorporated protectants,
            and the environmental effects of transgenic plants; and
              [(2) submit to the Committee on Agriculture of the
            House of Representatives and the Committee on
            Agriculture, Nutrition, and Forestry of the Senate a
            report that describes actions taken to implement those
            recommendations by agencies within the Department,
            including agencies that develop or implement programs
            or objectives relating to marketing, regulation, food
            safety, research, education, or economics.

    [SEC. 7411. STUDY OF NUTRIENT BANKING.

      [(a) In General.--The Secretary may conduct a study to
    evaluate nutrient banking for the purpose of enhancing the
    health and viability of watersheds in areas with large
    concentrations of animal producing units.
      [(b) Components.--In conducting any study under subsection
    (a), the Secretary shall evaluate the costs, needs, and means
    by which litter may be collected and distributed outside the
    applicable watershed to reduce potential point source and
    nonpoint source phosphorous pollution.
      [(c) Report.--The Secretary shall submit to the Committee on
    Agriculture of the House of Representatives and the Committee
    on Agriculture, Nutrition, and Forestry of the Senate a report
    that describes the results of any study conducted under
    subsection (a).]

               *       *       *       *       *       *       *

                              TITLE VIII--FORESTRY

    Subtitle A--Cooperative Forestry Assistance Act of 1978

               *       *       *       *       *       *       *

    SEC. 8002. ESTABLISHMENT OF FOREST LAND ENHANCEMENT PROGRAM.

      [(a) Purposes.--The purposes of this section are--
              [(1) to strengthen the commitment of the Secretary of
            Agriculture to sustainable forest management to enhance
            the productivity of timber, fish and wildlife habitat,
            soil and water quality, wetland, recreational
            resources, and aesthetic values of forest land; and
              [(2) to establish a coordinated and cooperative
            Federal, State, and local sustainable forestry program
            for the establishment, management, maintenance,
            enhancement, and restoration of forests on
            nonindustrial private forest land.]

               *       *       *       *       *       *       *

                                TITLE IX--ENERGY

    SEC. 9001. DEFINITIONS.

      Except as otherwise provided, in this title:
              (1) * * *

               *       *       *       *       *       *       *

              [(4) Biobased product.--The term ``biobased product''
            means a product determined by the Secretary to be a
            commercial or industrial product (other than food or
            feed) that is--
                      [(A) composed, in whole or in significant
                    part, of biological products, including
                    renewable domestic agricultural materials and
                    forestry materials; or
                      [(B) an intermediate ingredient or
                    feedstock.]
              (4) Biobased product.--
                      (A) In general.-- The term ``biobased
                    product'' means a product determined by the
                    Secretary to be a commercial or industrial
                    product (other than food or feed) that is--
                              (i) composed, in whole or in
                            significant part, of biological
                            products, including renewable domestic
                            agricultural materials and forestry
                            materials; or
                              (ii) an intermediate ingredient or
                            feedstock.
                      (B) Inclusion.-- The term ``biobased
                    product'', with respect to forestry materials,
                    includes forest products that meet biobased
                    content requirements, notwithstanding the
                    market share the product holds, the age of the
                    product, or whether the market for the product
                    is new or emerging.

               *       *       *       *       *       *       *

              (9) Forest product.--
                      (A) In general.--The term ``forest product''
                    means a product made from materials derived
                    from the practice of forestry or the management
                    of growing timber.
                      (B) Inclusions.--The term ``forest product''
                    includes--
                              (i) pulp, paper, paperboard, pellets,
                            and wood products; and
                              (ii) any recycled products derived
                            from forest materials.
              [(9)] (10) Indian tribe.--The term ``Indian tribe''
            has the meaning given the term in section 4 of the
            Indian Self-Determination and Education Assistance Act
            (25 U.S.C. 450b).
              [(10)] (11) Institution of higher education.--The
            term ``institution of higher education'' has the
            meaning given the term in section 102(a) of the Higher
            Education Act of 1965 (20 U.S.C. 1002(a)).
              [(11)] (12) Intermediate ingredient or feedstock.--
            The term ``intermediate ingredient or feedstock'' means
            a material or compound made in whole or in significant
            part from biological products, including renewable
            agricultural materials (including plant, animal, and
            marine materials) or forestry materials, that are
            subsequently used to make a more complex compound or
            product.
              [(12)] (13) Renewable biomass.--The term ``renewable
            biomass'' means--
                      (A) * * *

               *       *       *       *       *       *       *

              [(13)] (14) Renewable energy.--The term ``renewable
            energy'' means energy derived from--
                      (A) * * *

               *       *       *       *       *       *       *

              (15) Renewable energy system.--
                      (A) In general.--Subject to subparagraph (B),
                    the term ``renewable energy system'' means a
                    system that--
                              (i) produces usable energy from a
                            renewable energy source; and
                              (ii) may include distribution
                            components necessary to move energy
                            produced by such system to the initial
                            point of sale.
                      (B) Limitation.--A system described in
                    subparagraph (A) may not include a mechanism
                    for dispensing energy at retail.
              [(14)] (16) Secretary.--The term ``Secretary'' means
            the Secretary of Agriculture.

    SEC. 9002. BIOBASED MARKETS PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (h) Funding.--
              (1) Mandatory funding for fiscal years 2008 through
            2012.--Of the funds of the Commodity Credit
            Corporation, the Secretary shall use to provide
            mandatory funding for biobased products testing and
            labeling as required to carry out this section--
                      (A) * * *

               *       *       *       *       *       *       *

              (2) Discretionary funding for fiscal years 2009
            through 2012.--In addition to any other funds made
            available to carry out this section, there is
            authorized to be appropriated to carry out this section
            $2,000,000 for each of fiscal years 2009 through 2012.
              (3) Fiscal years 2013 through 2017.--There are
            authorized to be appropriated to carry out this section
            $2,000,000 for each of fiscal years 2013 through 2017.

    SEC. 9003. BIOREFINERY ASSISTANCE.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Assistance.--The Secretary shall make available [to
    eligible entities--
              [(1) grants to assist in paying the costs of the
            development and construction of demonstration-scale
            biorefineries to demonstrate the commercial viability
            of 1 or more processes for converting renewable biomass
            to advanced biofuels; and]
              [(2) guarantees for loans] to eligible entities
            guarantees for loans made to fund the development,
            construction, and retrofitting of commercial-scale
            biorefineries using eligible technology.
      [(d) Grants.--
              [(1) Competitive basis.--The Secretary shall award
            grants under subsection (c)(1) on a competitive basis.
              [(2) Selection criteria.--
                      [(A) In general.--In approving grant
                    applications, the Secretary shall establish a
                    priority scoring system that assigns priority
                    scores to each application and only approve
                    applications that exceed a specified minimum,
                    as determined by the Secretary.
                      [(B) Feasibility.--In approving a grant
                    application, the Secretary shall determine the
                    technical and economic feasibility of the
                    project based on a feasibility study of the
                    project described in the application conducted
                    by an independent third party.
                      [(C) Scoring system.--In determining the
                    priority scoring system, the Secretary shall
                    consider--
                              [(i) the potential market for the
                            advanced biofuel and the byproducts
                            produced;
                              [(ii) the level of financial
                            participation by the applicant,
                            including support from non-Federal and
                            private sources;
                              [(iii) whether the applicant is
                            proposing to use a feedstock not
                            previously used in the production of
                            advanced biofuels;
                              [(iv) whether the applicant is
                            proposing to work with producer
                            associations or cooperatives;
                              [(v) whether the applicant has
                            established that the adoption of the
                            process proposed in the application
                            will have a positive impact on resource
                            conservation, public health, and the
                            environment;
                              [(vi) the potential for rural
                            economic development;
                              [(vii) whether the area in which the
                            applicant proposes to locate the
                            biorefinery has other similar
                            facilities;
                              [(viii) whether the project can be
                            replicated; and
                              [(ix) scalability for commercial use.
              [(3) Cost sharing.--
                      [(A) Limits.--The amount of a grant awarded
                    for development and construction of a
                    biorefinery under subsection (c)(1) shall not
                    exceed an amount equal to 30 percent of the
                    cost of the project.
                      [(B) Form of grantee share.--
                              [(i) In general.--The grantee share
                            of the cost of a project may be made in
                            the form of cash or material.
                              [(ii) Limitation.--The amount of the
                            grantee share that is made in the form
                            of material shall not exceed 15 percent
                            of the amount of the grantee share
                            determined under subparagraph (A).]
      [(e)] (d) Loan Guarantees.--
              (1) Selection criteria.--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) Scoring system.--In determining the
                    priority scoring system for loan guarantees
                    under [subsection (c)(2)] subsection (c), the
                    Secretary shall consider--
                              (i) * * *

               *       *       *       *       *       *       *

              (2) Limitations.--
                      (A) Maximum amount of loan guaranteed.--The
                    principal amount of a loan guaranteed under
                    [subsection (c)(2)] subsection (c) may not
                    exceed $250,000,000.
                      (B) Maximum percentage of loan guaranteed.--
                              (i) In general.--Except as otherwise
                            provided in this subparagraph, a loan
                            guaranteed under [subsection (c)(2)]
                            subsection (c) shall be in an amount
                            not to exceed 80 percent of the project
                            costs, as determined by the Secretary.
                              (ii) Other direct federal funding.--
                            The amount of a loan guaranteed for a
                            project under [subsection (c)(2)]
                            subsection (c) shall be reduced by the
                            amount of other direct Federal funding
                            that the eligible entity receives for
                            the same project.
                              (iii) Authority to guarantee the
                            loan.--The Secretary may guarantee up
                            to 90 percent of the principal and
                            interest due on a loan guaranteed under
                            [subsection (c)(2)] subsection (c).
                      (C) Loan guarantee fund distribution.--Of the
                    funds made available for loan guarantees for a
                    fiscal year under [subsection (h)] subsection
                    (g), 50 percent of the funds shall be reserved
                    for obligation during the second half of the
                    fiscal year.
      [(f)] (e) Consultation.--In carrying out this section, the
    Secretary shall consult with the Secretary of Energy.
      [(g)] (f) Condition on Provision of Assistance.--
              (1) * * *

               *       *       *       *       *       *       *

      [(h)] (g) Funding.--
              (1) Mandatory funding for fiscal years 2009 and
            2010.--Of the funds of the Commodity Credit
            Corporation, the Secretary shall use for the cost of
            loan guarantees under this section, to remain available
            until expended--
                      (A) * * *

               *       *       *       *       *       *       *

              (2) Discretionary funding for fiscal years 2009
            through 2012.--In addition to any other funds made
            available to carry out this section, there is
            authorized to be appropriated to carry out this section
            $150,000,000 for each of fiscal years 2009 through
            2012.
              (3) Fiscal years 2013 through 2017.--There are
            authorized to be appropriated to carry out this section
            $75,000,000 for each of fiscal years 2013 through 2017.

    [SEC. 9004. REPOWERING ASSISTANCE.

      [(a) In General.--The Secretary shall carry out a program to
    encourage biorefineries in existence on the date of enactment
    of the Food, Conservation, and Energy Act of 2008 to replace
    fossil fuels used to produce heat or power to operate the
    biorefineries by making payments for--
              [(1) the installation of new systems that use
            renewable biomass; or
              [(2) the new production of energy from renewable
            biomass.
      [(b) Payments.--
              [(1) In general.--The Secretary may make payments
            under this section to any biorefinery that meets the
            requirements of this section for a period determined by
            the Secretary.
              [(2) Amount.--The Secretary shall determine the
            amount of payments to be made under this section to a
            biorefinery after considering--
                      [(A) the quantity of fossil fuels a renewable
                    biomass system is replacing;
                      [(B) the percentage reduction in fossil fuel
                    used by the biorefinery that will result from
                    the installation of the renewable biomass
                    system; and
                      [(C) the cost and cost effectiveness of the
                    renewable biomass system.
      [(c) Eligibility.--To be eligible to receive a payment under
    this section, a biorefinery shall demonstrate to the Secretary
    that the renewable biomass system of the biorefinery is
    feasible based on an independent feasibility study that takes
    into account the economic, technical and environmental aspects
    of the system.
      [(d) Funding.--
              [(1) Mandatory funding.--Of the funds of the
            Commodity Credit Corporation, the Secretary shall use
            to make payments under this section $35,000,000 for
            fiscal year 2009, to remain available until expended.
              [(2) Discretionary funding.--In addition to any other
            funds made available to carry out this section, there
            is authorized to be appropriated to carry out this
            section $15,000,000 for each of fiscal years 2009
            through 2012.]

    SEC. 9005. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.

      (a) * * *

               *       *       *       *       *       *       *

      (g) Funding.--
              (1) Mandatory funding for fiscal years 2009 through
            2012.--Of the funds of the Commodity Credit
            Corporation, the Secretary shall use to carry out this
            section, to remain available until expended--
                      (A) * * *

               *       *       *       *       *       *       *

              (2) Discretionary funding for fiscal years 2009
            through 2012.--In addition to any other funds made
            available to carry out this section, there is
            authorized to be appropriated to carry out this section
            $25,000,000 for each of fiscal years 2009 through 2012.
              (3) Fiscal years 2013 through 2017.--There are
            authorized to be appropriated to carry out this section
            $50,000,000 for each of fiscal years 2013 through 2017.
              [(3)] (4) Limitation.--Of the funds provided for each
            fiscal year, not more than 5 percent of the funds shall
            be made available to eligible producers for production
            at facilities with a total refining capacity exceeding
            150,000,000 gallons per year.

    SEC. 9006. BIODIESEL FUEL EDUCATION PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      [(d) Funding.--Of the funds of the Commodity Credit
    Corporation, the Secretary shall use to carry out this section
    $1,000,000 for each of fiscal years 2008 through 2012.]
      (d) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section $2,000,000 for each
    of fiscal years 2013 through 2017.

    SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Financial Assistance for Energy Efficiency Improvements
    and Renewable Energy Systems.--
              (1) * * *
              (2) Tiered application process.--In carrying out this
            subsection, the Secretary shall establish a three-
            tiered application, evaluation, and oversight process
            that varies based on the cost of the proposed project
            with the process most simplified for projects referred
            to in subparagraph (A), more comprehensive for projects
            referred to in subparagraph (B), and most comprehensive
            for projects referred to in subparagraph (C). The three
            tiers for such process shall be as follows:
                      (A) Tier 1.--Projects for which the cost of
                    the project funded under this subsection is not
                    more than $80,000.
                      (B) Tier 2.--Projects for which the cost of
                    the project funded under this subsection is
                    more than $80,000 but less than $200,000.
                      (C) Tier 3.--Projects for which the cost of
                    the project funded under this subsection is
                    $200,000 or more.
              [(2)] (3) Award considerations.--In determining the
            amount of a loan guarantee or grant provided under this
            section, the Secretary shall take into consideration,
            as applicable--
                      (A) * * *

               *       *       *       *       *       *       *

              [(3) Feasibility studies.--
                      [(A) In general.--The Secretary may provide
                    assistance in the form of grants to an
                    agricultural producer or rural small business
                    to conduct a feasibility study for a project
                    for which assistance may be provided under this
                    subsection.
                      [(B) Limitation.--The Secretary shall use not
                    more than 10 percent of the funds made
                    available to carry out this subsection to
                    provide assistance described in subparagraph
                    (A).
                      [(C) Avoidance of duplicative assistance.--An
                    entity shall be ineligible to receive
                    assistance to carry out a feasibility study for
                    a project under this paragraph if the entity
                    has received other Federal or State assistance
                    for a feasibility study for the project.]

               *       *       *       *       *       *       *

      (g) Funding.--
              (1) Mandatory funding for fiscal years 2009 through
            2012.--Of the funds of the Commodity Credit
            Corporation, the Secretary shall use to carry out this
            section, to remain available until expended--
                      (A) * * *

               *       *       *       *       *       *       *

              (2) Audit and technical assistance funding for fiscal
            years 2009 through 2012.--
                      (A) * * *

               *       *       *       *       *       *       *

              (3) Discretionary funding for fiscal years 2009
            through 2012.--In addition to any other funds made
            available to carry out this section, there is
            authorized to be appropriated to carry out this section
            $25,000,000 for each of fiscal years 2009 through 2012.
              (4) Fiscal years 2013 through 2017.--There are
            authorized to be appropriated to carry out this section
            $45,000,000 for each of fiscal years 2013 through 2017.

    SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT.

      (a) * * *

               *       *       *       *       *       *       *

      (h) Funding.--
              (1) Mandatory funding for fiscal years 2009 through
            2012.--Of the funds of the Commodity Credit
            Corporation, the Secretary of Agriculture shall use to
            carry out this section, to remain available until
            expended--
                      (A) * * *

               *       *       *       *       *       *       *

              (2) Discretionary funding for fiscal years 2009
            through 2012.--In addition to any other funds made
            available to carry out this section, there is
            authorized to be appropriated to carry out this section
            $35,000,000 for each of fiscal years 2009 through 2012.
              (3) Fiscal years 2013 through 2017.--There are
            authorized to be appropriated to carry out this section
            $20,000,000 for each of fiscal years 2013 through 2017.

               *       *       *       *       *       *       *

    SEC. 9010. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.

      (a) * * *
      (b) Feedstock Flexibility Program.--
              (1) In general.--
                      (A) Purchases and sales.--For each of the
                    2008 through [2012] 2017 crops, the Secretary
                    shall purchase eligible commodities from
                    eligible entities and sell such commodities to
                    bioenergy producers for the purpose of
                    producing bioenergy in a manner that ensures
                    that section 156 of the Federal Agriculture
                    Improvement and Reform Act (7 U.S.C. 7272) is
                    operated at no cost to the Federal Government
                    by avoiding forfeitures to the Commodity Credit
                    Corporation.

               *       *       *       *       *       *       *

              (2) Notice.--
                      (A) In general.--As soon as practicable after
                    the date of enactment of the Food,
                    Conservation, and Energy Act of 2008 and each
                    September 1 thereafter through September 1,
                    [2012] 2017, the Secretary shall provide notice
                    to eligible entities and bioenergy producers of
                    the quantity of eligible commodities that shall
                    be made available for purchase and sale for the
                    crop year following the date of the notice
                    under this section.

               *       *       *       *       *       *       *

    SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM.

      (a) Definitions.--In this section:
              (1) * * *

               *       *       *       *       *       *       *

              [(6) Eligible material.--
                      [(A) In general.--The term ``eligible
                    material'' means renewable biomass.
                      [(B) Exclusions.--The term ``eligible
                    material'' does not include--
                              [(i) any crop that is eligible to
                            receive payments under title I of the
                            Food, Conservation, and Energy Act of
                            2008 or an amendment made by that
                            title;
                              [(ii) animal waste and byproducts
                            (including fats, oils, greases, and
                            manure);
                              [(iii) food waste and yard waste; or
                              [(iv) algae.]
              [(7)] (6) Producer.--The term ``producer'' means an
            owner or operator of contract acreage that is
            physically located within a BCAP project area.
              [(8)] (7) Project sponsor.--The term ``project
            sponsor'' means--
                      (A) * * *

               *       *       *       *       *       *       *

      (b) Establishment and Purpose.--The Secretary shall establish
    and administer a Biomass Crop Assistance [Program to--
              [(1) support the establishment] Program to support
            the establishment and production of eligible crops for
            conversion to bioenergy in selected BCAP project
            areas[; and].
              [(2) assist agricultural and forest land owners and
            operators with collection, harvest, storage, and
            transportation of eligible material for use in a
            biomass conversion facility.]
      (c) BCAP Project Area.--
              (1) * * *
              (2) Selection of project areas.--
                      (A) * * *
                      (B) BCAP project area selection criteria.--In
                    selecting BCAP project areas, the Secretary
                    shall consider--
                              (i) * * *

               *       *       *       *       *       *       *

                              (viii) the range of eligible crops
                            among project areas[; and];
                              (ix) existing project areas that have
                            received funding under this section and
                            the continuation of funding of such
                            project areas to advance the maturity
                            of such project areas; and
                              [(ix)] (x) any additional
                            information, as determined by the
                            Secretary.

               *       *       *       *       *       *       *

              (5) Payments.--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) Amount of annual payments.--
                              (i) * * *
                              (ii) Reduction.--The Secretary shall
                            reduce an annual payment by an amount
                            determined to be appropriate by the
                            Secretary, if--
                                      (I) * * *

               *       *       *       *       *       *       *

                                      [(III) the producer receives
                                    a payment under subsection
                                    (d);]
                                      [(IV)] (III) the producer
                                    violates a term of the
                                    contract; or
                                      [(V)] (IV) there are such
                                    other circumstances, as
                                    determined by the Secretary to
                                    be necessary to carry out this
                                    section.
      [(d) Assistance With Collection, Harvest, Storage, and
    Transportation.--
              [(1) In general.--The Secretary shall make a payment
            for the delivery of eligible material to a biomass
            conversion facility to--
                      [(A) a producer of an eligible crop that is
                    produced on BCAP contract acreage; or
                      [(B) a person with the right to collect or
                    harvest eligible material.
              [(2) Payments.--
                      [(A) Costs covered.--A payment under this
                    subsection shall be in an amount described in
                    subparagraph (B) for--
                              [(i) collection;
                              [(ii) harvest;
                              [(iii) storage; and
                              [(iv) transportation to a biomass
                            conversion facility.
                      [(B) Amount.--Subject to paragraph (3), the
                    Secretary may provide matching payments at a
                    rate of $1 for each $1 per ton provided by the
                    biomass conversion facility, in an amount equal
                    to not more than $45 per ton for a period of 2
                    years.
              [(3) Limitation on assistance for bcap contract
            acreage.--As a condition of the receipt of annual
            payment under subsection (c), a producer receiving a
            payment under this subsection for collection, harvest,
            storage or transportation of an eligible crop produced
            on BCAP acreage shall agree to a reduction in the
            annual payment.]
      [(e)] (d) Report.--Not later than 4 years after the date of
    enactment of the Food, Conservation, and Energy Act of 2008,
    the Secretary shall submit to the Committee on Agriculture of
    the House of Representatives and the Committee on Agriculture,
    Nutrition, and Forestry of the Senate a report on the
    dissemination by the Secretary of the best practice data and
    information gathered from participants receiving assistance
    under this section.
      [(f) Funding.--Of the funds] (e)  Funding.--
              (1) Fiscal years 2008 through 2012.--Of the funds of
            the Commodity Credit Corporation, the Secretary shall
            use to carry out this section such sums as are
            necessary for each of fiscal years 2008 through 2012.
              (2) Fiscal years 2013 Through 2017.--
                      (A) In general.--Subject to subparagraph (B),
                    there are authorized to be appropriated to
                    carry out this section $75,000,000 for each of
                    fiscal years 2013 through 2017.
                      (B) Multiyear contracts.--For each multiyear
                    contract entered into by the Secretary during a
                    fiscal year under this section, the Secretary
                    shall ensure that sufficient funds are
                    obligated from the appropriation for that
                    fiscal year to fully cover all payments
                    required by the contract for all years of the
                    contract.

               *       *       *       *       *       *       *

    SEC. 9013. COMMUNITY WOOD ENERGY PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (e) Authorization of Appropriations.--There is authorized to
    be appropriated to [carry out this section $5,000,000 for each
    of fiscal years 2009 through 2012.] carry out this section--
              (1) $5,000,000 for each of fiscal years 2009 through
            2012; and
              (2) $2,000,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

    TITLE X--MISCELLANEOUS

               *       *       *       *       *       *       *

    Subtitle G--Specialty Crops

               *       *       *       *       *       *       *

    SEC. 10603. PURCHASE OF SPECIALTY CROPS.

      (a) * * *
      (b) Purchase of Fresh Fruits and Vegetables for Distribution
    to Schools and Service Institutions.--The Secretary of
    Agriculture shall purchase fresh fruits and vegetables for
    distribution to schools and service institutions in accordance
    with section 6(a) of the Richard B. Russell National School
    Lunch Act (42 U.S.C. 1755(a)) using, of the amount specified in
    subsection (a), not less than $50,000,000 for each of fiscal
    years 2008 through [2012] 2017.
      (c) Pilot Grant Program for Purchase of Fresh Fruits and
    Vegetables.--
              (1) In general.--Using amounts made available to
            carry out subsection (b), the Secretary of Agriculture
            shall conduct a pilot program under which the Secretary
            will give not more than five participating States the
            option of receiving a grant in an amount equal to the
            value of the commodities that the participating State
            would otherwise receive under this section for each of
            fiscal years 2013 through 2017.
              (2) Use of grant funds.--A participating State
            receiving a grant under this subsection may use the
            grant funds solely to purchase fresh fruits and
            vegetables for distribution to schools and service
            institutions in the State that participate in the food
            service programs under the Richard B. Russell National
            School Lunch Act (42 U.S.C. 1751 et seq.) and the Child
            Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
              (3) Selection of participating states.--The Secretary
            shall select participating States from applications
            submitted by the States.
              (4) Reporting requirements.--
                      (A) School and service institution
                    requirement.--Schools and service institutions
                    in a participating State shall keep records of
                    purchases of fresh fruits and vegetables made
                    using the grant funds and report such records
                    to the State.
                      (B) State requirement.--Each participating
                    State shall submit to the Secretary a report on
                    the success of the pilot program in the State,
                    including information on--
                              (i) the amount and value of each type
                            of fresh fruit and vegetable purchased
                            by the State; and
                              (ii) the benefit provided by such
                            purchases in conducting the school food
                            service in the State, including meeting
                            school meal requirements.
      [(c)] (d) Definitions.--In this section, the terms
    ``fruits'', ``vegetables'', and ``other specialty food crops''
    shall have the meaning given the terms by the Secretary of
    Agriculture.

               *       *       *       *       *       *       *

    [SEC. 10606. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.

      [(a) In General.--Of funds of the Commodity Credit
    Corporation, the Secretary of Agriculture (acting through the
    Agricultural Marketing Service) shall use $5,000,000 for fiscal
    year 2002, to remain available until expended, to establish a
    national organic certification cost-share program to assist
    producers and handlers of agricultural products in obtaining
    certification under the national organic production program
    established under the Organic Foods Production Act of 1990 (7
    U.S.C. 6501 et seq.).
      [(b) Federal Share.--
              [(1) In general.--Subject to paragraph (2), the
            Secretary shall pay under this section not more than 75
            percent of the costs incurred by a producer or handler
            in obtaining certification under the national organic
            production program, as certified to and approved by the
            Secretary.
              [(2) Maximum amount.--The maximum amount of a payment
            made to a producer or handler under this section shall
            be $500.]

               *       *       *       *       *       *       *

                                  ----------

              DEPARTMENT OF AGRICULTURE REORGANIZATION ACT OF 1994

               *       *       *       *       *       *       *
    TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION

               *       *       *       *       *       *       *

    Subtitle A--General Reorganization Authorities

               *       *       *       *       *       *       *

    SEC. 219. MILITARY VETERANS AGRICULTURAL LIAISON.

      (a) Authorization.--The Secretary shall establish in the
    Department the position of Military Veterans Agricultural
    Liaison.
      (b) Duties.--The Military Veterans Agricultural Liaison
    shall--
              (1) provide information to returning veterans about,
            and connect returning veterans with, beginning farmer
            training and agricultural vocational and rehabilitation
            programs appropriate to the needs and interests of
            returning veterans, including assisting veterans in
            using Federal veterans educational benefits for
            purposes relating to beginning a farming or ranching
            career;
              (2) provide information to veterans concerning the
            availability of and eligibility requirements for
            participation in agricultural programs, with particular
            emphasis on beginning farmer and rancher programs;
              (3) serve as a resource for assisting veteran farmers
            and ranchers, and potential farmers and ranchers, in
            applying for participation in agricultural programs;
            and
              (4) advocate on behalf of veterans in interactions
            with employees of the Department.

               *       *       *       *       *       *       *

               Subtitle B--Farm and Foreign Agricultural Services

    SEC. 225. UNDER SECRETARY OF AGRICULTURE FOR FARM AND FOREIGN
                        AGRICULTURAL SERVICES.

      (a) Authorization.--The Secretary is authorized to establish
    in the Department the position of [Under Secretary of
    Agriculture for Farm and Foreign Agricultural Services] Under
    Secretary of Agriculture for Farm Services.
      (b) Confirmation Required.--If the Secretary establishes the
    position of [Under Secretary of Agriculture for Farm and
    Foreign Agricultural Services] Under Secretary of Agriculture
    for Farm Services authorized under subsection (a), the Under
    Secretary shall be appointed by the President, by and with the
    advice and consent of the Senate.
      (c) Functions of Under Secretary.--
              (1) Principal functions.--Upon establishment, the
            Secretary shall delegate to the [Under Secretary of
            Agriculture for Farm and Foreign Agricultural Services]
            Under Secretary of Agriculture for Farm Services those
            functions under the jurisdiction of the Department that
            are related to farm [and foreign agricultural]
            services.
              (2) Additional functions.--The [Under Secretary of
            Agriculture for Farm and Foreign Agricultural Services]
            Under Secretary of Agriculture for Farm Services shall
            perform such other functions as may be required by law
            or prescribed by the Secretary.

               *       *       *       *       *       *       *

    SEC. 225A. UNDER SECRETARY OF AGRICULTURE FOR FOREIGN AGRICULTURAL
                        SERVICES.

      (a) Authorization.--The Secretary is authorized to establish
    in the Department the position of Under Secretary of
    Agriculture for Foreign Agricultural Services.
      (b) Confirmation Required.--If the Secretary establishes the
    position of Under Secretary of Agriculture for Foreign
    Agricultural Services under subsection (a), the Under Secretary
    shall be appointed by the President, by and with the advice and
    consent of the Senate.
      (c) Functions of Under Secretary.--
              (1) Principal functions.--Upon establishment, the
            Secretary shall delegate to the Under Secretary of
            Agriculture for Foreign Agricultural Services those
            functions under the jurisdiction of the Department that
            are related to foreign agricultural services.
              (2) Additional functions.--The Under Secretary of
            Agriculture for Foreign Agricultural Services shall
            perform such other functions as may be required by law
            or prescribed by the Secretary.
      (d) Succession.--Any official who is serving as Under
    Secretary of Agriculture for Farm and Foreign Agricultural
    Services on the date of the enactment of this section and who
    was appointed by the President, by and with the advice and
    consent of the Senate, shall not be required to be reappointed
    under subsection (b) or section 225(b) to the successor
    position authorized under subsection (a) or section 225(a) if
    the Secretary establishes the position, and the official
    occupies the new position, with 180 days after the date of the
    enactment of this section (or such later date set by the
    Secretary if litigation delays rapid succession).

               *       *       *       *       *       *       *

    SEC. 226B. OFFICE OF ADVOCACY AND OUTREACH.

      (a) * * *

               *       *       *       *       *       *       *

      (f) Farmworker Coordinator.--
              (1) * * *

               *       *       *       *       *       *       *

              [(3) Authorization of appropriations.--There are
            authorized to be appropriated such sums as are
            necessary to carry out this subsection for each of
            fiscal years 2009 through 2012.]
              (3) Authorization of appropriations.--There are
            authorized to be appropriated to carry out this
            subsection--
                      (A) such sums as are necessary for each of
                    fiscal years 2009 through 2012; and
                      (B) $2,000,000 for each of fiscal years 2013
                    through 2017.

               *       *       *       *       *       *       *

                 Subtitle F--Research, Education, and Economics

    SEC. 251. UNDER SECRETARY OF AGRICULTURE FOR RESEARCH, EDUCATION, AND
                        ECONOMICS.

      (a) * * *

               *       *       *       *       *       *       *

      (f) National Institute of Food and Agriculture.--
              (1) Definitions.--In this subsection:
                      (A) * * *

               *       *       *       *       *       *       *

                      (D) Competitive program.--The term
                    ``competitive program'' means each of the
                    following agricultural research, extension,
                    education, and related programs for which the
                    Secretary has administrative or other authority
                    as of the day before the date of enactment of
                    the Food, Conservation, and Energy Act of 2008:
                              (i) * * *

               *       *       *       *       *       *       *

                              [(xi) The administration and
                            management of the Agricultural
                            Bioenergy Feedstock and Energy
                            Efficiency Research and Extension
                            Initiative carried out under section
                            1672C of the Food, Agriculture,
                            Conservation, and Trade Act of 1990.]
                              [(xii) The research, extension, and
                            education programs authorized by
                            section 407 of the Agricultural
                            Research, Extension, and Education
                            Reform Act of 1998 (7 U.S.C. 7627)
                            relating to the competitiveness,
                            viability and sustainability of small-
                            and medium-sized dairy, livestock, and
                            poultry operations.]
                              [(xiii)] (xi) Other programs that are
                            competitive programs, as determined by
                            the Secretary.

               *       *       *       *       *       *       *

    Subtitle J--Miscellaneous Reorganization Provisions

               *       *       *       *       *       *       *

    SEC. 296. TERMINATION OF AUTHORITY.

      (a) * * *
      (b) Functions.--Subsection (a) shall not affect--
              (1) * * *

               *       *       *       *       *       *       *

              (6) the authority of the Secretary to establish in
            the Department, under section 251--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) the National Institute of Food and
                    Agriculture; [or]
              (7) the authority of the Secretary to establish in
            the Department the Office of Advocacy and Outreach in
            accordance with section 226B[.];
              (8) the authority of the Secretary to establish in
            the Department the position of Under Secretary of
            Agriculture for Foreign Agricultural Services in
            accordance with section 225A;
              (9) the authority of the Secretary to establish in
            the Office of the Secretary the Office of Tribal
            Relations in accordance with section 309; and
              (10) the authority of the Secretary to establish in
            the Department the position of Military Veterans
            Agricultural Liaison in accordance with section 219.

    TITLE III--MISCELLANEOUS

               *       *       *       *       *       *       *

    SEC. 309. OFFICE OF TRIBAL RELATIONS.

      The Secretary shall establish in the Office of the Secretary
    an Office of Tribal Relations to advise the Secretary on
    policies related to Indian tribes.

               *       *       *       *       *       *       *

                                  ----------

                         FOOD AND NUTRITION ACT OF 2008

               *       *       *       *       *       *       *
                                  DEFINITIONS

      Sec. 3. As used in this Act, the term:
      (a) * * *

               *       *       *       *       *       *       *

      (g) ``Coupon'' means any coupon, stamp, type of certificate,
    authorization card, cash or check issued in lieu of a [coupon,]
    coupon.

               *       *       *       *       *       *       *

      (k) ``Food'' means (1) any food or food product for home
    consumption except alcoholic beverages, tobacco, and hot foods
    or hot food products ready for immediate consumption other than
    those authorized pursuant to clauses (3), (4), (5), (7), (8),
    and (9) of this subsection, (2) seeds and plants for use in
    gardens to produce food for the personal consumption of the
    eligible household, (3) in the case of those persons who are
    sixty years of age or over or who receive supplemental security
    income benefits or disability or blindness payments under title
    I, II, X, XIV, or XVI of the Social Security Act, and their
    spouses, meals prepared by and served in senior citizens'
    centers, apartment buildings occupied primarily by such
    persons, public or private nonprofit establishments (eating or
    otherwise) that feed such persons, private establishments that
    contract with the appropriate agency of the State to offer
    meals for such persons at concessional prices subject to
    section 9(h), and meals prepared for and served to residents of
    federally subsidized housing for the elderly, (4) in the case
    of persons sixty years of age or over and persons who are
    physically or mentally handicapped or otherwise so disabled
    that they are unable adequately to prepare all of their meals,
    meals prepared for and delivered to them (and their spouses) at
    their home by a public or private nonprofit organization or by
    a private establishment that contracts with the appropriate
    State agency to perform such services at concessional prices
    subject to section 9(h), (5) in the case of narcotics addicts
    or alcoholics, and their children, served by drug addiction or
    alcoholic treatment and rehabilitation programs, meals prepared
    and served under such programs, (6) in the case of certain
    eligible households living in Alaska, equipment for procuring
    food by hunting and fishing, such as nets, hooks, rods,
    harpoons, and knives (but not equipment for purposes of
    transportation, clothing, or shelter, and not firearms,
    ammunition, and explosives) if the Secretary determines that
    such households are located in an area of the State where it is
    extremely difficult to reach stores selling food and that such
    households depend to a substantial extent upon hunting and
    fishing for subsistence, (7) in the case of disabled or blind
    recipients of benefits under title I, II, X, XIV, or XVI of the
    Social Security Act, [or are] and individuals described in
    paragraphs (2) through (7) of subsection (j), who are residents
    in a public or private nonprofit group living arrangement that
    serves no more than sixteen residents and is certified by the
    appropriate State agency or agencies under regulations issued
    under section 1616(e) of the Social Security Act or under
    standards determined by the Secretary to be comparable to
    standards implemented by appropriate State agencies under such
    section, meals prepared and served under such arrangement, (8)
    in the case of women and children temporarily residing in
    public or private nonprofit shelters for battered women and
    children, meals prepared and served, by such shelters, and (9)
    in the case of households that do not reside in permanent
    dwellings and households that have no fixed mailing addresses,
    meals prepared for and served by a public or private nonprofit
    establishment (approved by an appropriate State or local
    agency) that feeds such individuals and by private
    establishments that contract with the appropriate agency of the
    State to offer meals for such individuals at concessional
    prices subject to section 9(h).
      [(l) ``Food stamp program'' means the program operated
    pursuant to the provisions of this Act.]
      [(m)] (l) ``Homeless individual'' means--
              (1) * * *

               *       *       *       *       *       *       *

      [(n)] (m)(1) * * *

               *       *       *       *       *       *       *

      [(o)] (n) ``Reservation'' means the geographically defined
    area or areas over which a tribal organization exercises
    governmental jurisdiction.
      [(p)] (o) ``Retail food store'' means--
              (1) an establishment or house-to-house trade route
            that sells food for home preparation and consumption
            and--
                      (A) offers for sale, on a continuous basis, a
                    variety of foods in each of the 4 categories of
                    staple foods specified in subsection (r)(1),
                    including perishable foods in [at least 2] at
                    least 3 of the categories; or

               *       *       *       *       *       *       *

              (3) a store purveying the hunting and fishing
            equipment described in subsection (k)(6); [and]
              (4) any private nonprofit cooperative food purchasing
            venture, including those in which the members pay for
            food purchased prior to the receipt of such food[.];
            and
              (5) a governmental or private nonprofit food
            purchasing and delivery service that--
                      (A) purchases food for, and delivers such
                    food to, individuals who are--
                              (i) unable to shop for food; and
                              (ii)(I) not less than 60 years of
                            age; or
                              (II) physically or mentally
                            handicapped or otherwise disabled;
                      (B) clearly notifies the participating
                    household at the time such household places a
                    food order--
                              (i) of any delivery fee associated
                            with the food purchase and delivery
                            provided to such household by such
                            service; and
                              (ii) that a delivery fee cannot be
                            paid with benefits provided under
                            supplemental nutrition assistance
                            program; and
                      (C) sells food purchased for such household
                    at the price paid by such service for such food
                    and without any additional cost markup.
      [(q)] (p) ``Secretary'' means the Secretary of Agriculture.
      [(r)] (q)(1) * * *

               *       *       *       *       *       *       *

      [(s)] (r) ``State'' means the fifty States, the District of
    Columbia, Guam, the Virgin Islands of the United States, and
    the reservations of an Indian tribe whose tribal organization
    meets the requirements of this Act for participation as a State
    agency.
      [(t)] (s) ``State agency'' means (1) the agency of State
    government, including the local offices thereof, which has the
    responsibility for the administration of the federally aided
    public assistance programs within such State, and in those
    States where such assistance programs are operated on a
    decentralized basis, the term shall include the counterpart
    local agencies administering such programs, and (2) the tribal
    organization of an Indian tribe determined by the Secretary to
    be capable of effectively administering a food distribution
    program under section 4(b) of this Act or a supplemental
    nutrition assistance program under section 11(d) of this Act.
      (t) ``Supplemental nutritional assistance program'' means the
    program operated pursuant to this Act.

               *       *       *       *       *       *       *

         ESTABLISHMENT OF THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

      Sec. 4. (a) Subject to the availability of funds appropriated
    under section 18 of this Act, the Secretary is authorized to
    formulate and administer a supplemental nutrition assistance
    program under which, at the request of the State agency,
    eligible households within the State shall be provided an
    opportunity to obtain a more nutritious diet through the
    issuance to them of an allotment, except that a State may not
    participate in the supplemental nutrition assistance program if
    the Secretary determines that State or local sales taxes are
    collected within that State on purchases of food made with
    benefits issued under this Act. The benefits so received by
    such households shall be used only to purchase food from retail
    food stores which have been approved for participation in the
    supplemental nutrition assistance program. [benefits] Benefits
    issued and used as provided in this Act shall be redeemable at
    face value by the Secretary through the facilities of the
    Treasury of the United States.
      (b) Food Distribution Program on Indian Reservations.--
              (1) * * *

               *       *       *       *       *       *       *

              (6) Traditional and locally-grown food fund.--
                      (A) * * *

               *       *       *       *       *       *       *

                      (F) Authorization of appropriations.--There
                    is authorized to be appropriated to the
                    Secretary to carry out this paragraph
                    $5,000,000 for each of fiscal years 2008
                    through [2012] 2017.

               *       *       *       *       *       *       *

                              ELIGIBLE HOUSEHOLDS

      Sec. 5. (a) Participation in the supplemental nutrition
    assistance program shall be limited to those households whose
    incomes and other financial resources, held singly or in joint
    ownership, are determined to be a substantial limiting factor
    in permitting them to obtain a more nutritious diet.
    Notwithstanding any other provisions of this Act except
    [sections 6(b), 6(d)(2), and 6(g)] subsections (b), (d)(2),
    (g), and (r) of section 6 and section 3(n)(4), [households in
    which each member receives benefits] households in which each
    member receives 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.), supplemental security income benefits under title
    XVI of the Social Security Act, or aid to the aged, blind, or
    disabled under title I, X, XIV, or XVI of the Social Security
    Act, shall be eligible to participate in the supplemental
    nutrition assistance program. Except for sections 6, 16(e)(1),
    and section 3(n)(4), households in which each member receives
    benefits under a State or local general assistance program that
    complies with standards established by the Secretary for
    ensuring that the program is based on income criteria
    comparable to or more restrictive than those under subsection
    (c)(2), and not limited to one-time emergency payments that
    cannot be provided for more than one consecutive month, shall
    be eligible to participate in the supplemental nutrition
    assistance program. Assistance under this program shall be
    furnished to all eligible households who make application for
    such participation.

               *       *       *       *       *       *       *

      (e) Deductions From Income.--
              (1) * * *

               *       *       *       *       *       *       *

              (5) Excess medical expense deduction.--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) Exclusion of medical marijuana.--The
                    Secretary shall promulgate rules to ensure that
                    medical marijuana is not treated as a medical
                    expense for purposes of this paragraph.
              (6) Excess shelter expense deduction.--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) Standard utility allowance.--
                              (i) In general.--In computing the
                            excess shelter expense deduction, a
                            State agency may use a standard utility
                            allowance in accordance with
                            regulations promulgated by the
                            Secretary, subject to clause (iv),
                            except that a State agency may use an
                            allowance that does not fluctuate
                            within a year to reflect seasonal
                            variations.

               *       *       *       *       *       *       *

                              (iv) Availability of allowance to
                            recipients of energy assistance.--
                                      (I) In general.--Subject to
                                    subclause (II), if a State
                                    agency elects to use a standard
                                    utility allowance that reflects
                                    heating or cooling costs, the
                                    standard utility allowance
                                    shall be made available to
                                    households receiving a payment,
                                    or on behalf of which a payment
                                    is made, under the Low-Income
                                    Home Energy Assistance Act of
                                    1981 (42 U.S.C. 8621 et seq.)
                                    or other similar energy
                                    assistance program, if [the
                                    household still incurs out-of-
                                    pocket heating or cooling
                                    expenses in excess of any
                                    assistance paid on behalf of
                                    the household to an energy
                                    provider.] the payment received
                                    by, or made on behalf of, the
                                    household exceeds $10 or a
                                    higher amount annually, as
                                    determined by the Secretary.

               *       *       *       *       *       *       *

      (i)(1) * * *
      (2)(A) * * *

               *       *       *       *       *       *       *

      (D) Any sponsor of an alien, and such alien, shall be jointly
    and severably liable for an amount equal to any overpayment
    made to such alien during the period of three years after such
    alien's entry into the United States, on account of such
    sponsor's failure to provide correct information under the
    provisions of this section, except where such sponsor was
    without fault, or where good cause for such failure existed.
    Any such overpayment which is not repaid shall be recovered in
    accordance with the provisions of [section 13(b)(2)] section
    13(b) of this Act.

               *       *       *       *       *       *       *

      (j) Notwithstanding subsections (a) through (i), a State
    agency shall consider a household member who receives
    supplemental security income benefits under title XVI of the
    Social Security Act (42 U.S.C. 1382 et seq.), aid to the aged,
    blind, or disabled under title I, II, X, XIV, or XVI of such
    Act (42 U.S.C. 301 et seq.), [or who receives benefits under a
    State program] or who receives cash assistance under a State
    program funded under part A of title IV of the Act (42 U.S.C.
    601 et seq.) to have satisfied the resource limitations
    prescribed under subsection (g).
      (k)(1) * * *

               *       *       *       *       *       *       *

              (4) Third party energy assistance payments.--
                      (A) Energy assistance payments.--For purposes
                    of subsection (d)(1), a payment made under a
                    State law (other than a law referred to in
                    [paragraph (2)(H)] paragraph (2)(G)) to provide
                    energy assistance to a household shall be
                    considered money payable directly to the
                    household.

               *       *       *       *       *       *       *

                         ELIGIBILITY DISQUALIFICATIONS

      Sec. 6. (a) * * *

               *       *       *       *       *       *       *

      (d) Conditions of Participation.--
              (1) * * *

               *       *       *       *       *       *       *

              (4) Employment and training.--
                      (A) * * *
      (B) For purposes of this Act, an ``employment and training
    program'' means a program that contains one or more of the
    following components, except that the State agency shall retain
    the option to apply employment requirements prescribed under
    this subparagraph to a program applicant at the time of
    application:
              (i) * * *

               *       *       *       *       *       *       *

              (vii) Programs intended to ensure job retention by
            providing job retention services, if the job retention
            services are provided for a period of not more than 90
            days after an individual who received employment and
            training services under this paragraph gains
            employment.

               *       *       *       *       *       *       *

      (F)(i) * * *

               *       *       *       *       *       *       *

      (iii) Any individual voluntarily electing to participate in a
    program under this paragraph shall not be subject to the
    limitations described in clauses (i) and (ii).

               *       *       *       *       *       *       *

      (e) No individual who is a member of a household otherwise
    eligible to participate in the supplemental nutrition
    assistance program under this section shall be eligible to
    participate in the supplemental nutrition assistance program as
    a member of that or any other household if the individual is
    enrolled at least half-time in an institution of higher
    education, unless the individual--
              (1) * * *

               *       *       *       *       *       *       *

              (3) is assigned to or placed in an institution of
            higher education through or in compliance with the
            requirements of--
                      (A) * * *
                      (B) an employment and training program under
                    this [section;] section, subject to the
                    condition that the course or program of study--
                              (i) is part of a program of career
                            and technical education (as defined in
                            section 3 of the Carl D. Perkins Career
                            and Technical Education Act of 2006 (20
                            U.S.C. 2302)) that may be completed in
                            not more than 4 years at an institution
                            of higher education (as defined in
                            section 102 of the Higher Education Act
                            of 1965 (20 U.S.C. 1002)); or
                              (ii) is limited to remedial courses,
                            basic adult education, literacy, or
                            English as a second language;

               *       *       *       *       *       *       *

      (r) Ineligibility for Benefits Due to Receipt of Substantial
    Lottery or Gambling Winnings.--
              (1) In general.--Any household in which a member
            receives substantial lottery or gambling winnings, as
            determined by the Secretary, shall lose eligibility for
            benefits immediately upon receipt of the winnings.
              (2) Duration of ineligibility.--A household described
            in paragraph (1) shall remain ineligible for
            participation until the household meets the allowable
            financial resources and income eligibility requirements
            under subsections (c), (d), (e), (f), (g), (i), (k),
            (l), (m), and (n) of section 5.
              (3) Agreements.--As determined by the Secretary, each
            State agency, to the maximum extent practicable, shall
            establish agreements with entities responsible for the
            regulation or sponsorship of gaming in the State to
            determine whether individuals participating in the
            supplemental nutrition assistance program have received
            substantial lottery or gambling winnings.

    SEC. 7. ISSUANCE AND USE OF PROGRAM BENEFITS.

      (a) * * *

               *       *       *       *       *       *       *

      (f) Alternative Benefit Delivery.--
              (1) * * *
              [(2) No imposition of costs.--The cost of documents
            or systems that may be required by this subsection may
            not be imposed upon a retail food store participating
            in the supplemental nutrition assistance program.]
              (2) Imposition of costs.--
                      (A) In general.--Except as provided in
                    subparagraph (B), the Secretary shall require
                    participating retailers (including restaurants
                    participating in a State option restaurant
                    program intended to serve the elderly,
                    disabled, and homeless) to pay 100 percent of
                    the costs of acquiring, and arrange for the
                    implementation of, electronic benefit transfer
                    point-of-sale equipment and supplies.
                      (B) Exemptions.--The Secretary may exempt
                    from subparagraph (A)--
                              (i) farmers' markets, military
                            commissaries, nonprofit food buying
                            cooperatives, and establishments,
                            organizations, programs, or group
                            living arrangements described in
                            paragraphs (5), (7), and (8) of section
                            3(k); and
                              (ii) establishments described in
                            paragraphs (3), (4), and (9) of section
                            3(k), other than restaurants
                            participating in a State option
                            restaurant program.

               *       *       *       *       *       *       *

              (4) Termination of manual vouchers.--
                      (A) In general.--Effective beginning on the
                    effective date of this paragraph, except as
                    provided in subparagraph (B), no State shall
                    issue manual vouchers to a household that
                    receives supplemental nutrition assistance
                    under this Act or allow retailers to accept
                    manual vouchers as payment, unless the
                    Secretary determines that the manual vouchers
                    are necessary, such as in the event of an
                    electronic benefit transfer system failure or a
                    disaster situation.
                      (B) Exemptions.--The Secretary may exempt
                    categories of retailers or individual retailers
                    from subparagraph (A) based on criteria
                    established by the Secretary.
              (5) Unique identification number required.--In an
            effort to enhance the antifraud protections of the
            program, the Secretary shall require all parties
            providing electronic benefit transfer services to
            provide for and maintain a unique terminal
            identification number information through the
            supplemental nutrition assistance program electronic
            benefit transfer transaction routing system. In
            developing the regulations implementing this paragraph,
            the Secretary shall consider existing commercial
            practices for other point-of-sale debit transactions.
            The Secretary shall issue proposed regulations
            implementing this paragraph not earlier than 2 years
            after the date of enactment of this paragraph.

               *       *       *       *       *       *       *

      (h) Electronic Benefit Transfers.--
              (1) * * *

               *       *       *       *       *       *       *

      (3) In the case of a system described in paragraph (1) in
    which participation is not optional for households, the
    Secretary shall not approve such a system unless--
              (A) * * *
              (B) any special equipment necessary to allow
            households to purchase food with the benefits issued
            under this Act [is operational--
                      [(i) in the case of a participating retail
                    food store in which coupons are used to
                    purchase 15 percent or more of the total dollar
                    amount of food sold by the store (as determined
                    by the Secretary), at all registers in the
                    store; and
                      [(ii) in the case of other participating
                    stores,] is operational at a sufficient number
                    of registers to provide service that is
                    comparable to service provided individuals who
                    are not members of households receiving
                    supplemental nutrition assistance program
                    benefits, as determined by the Secretary.

               *       *       *       *       *       *       *

              (8) Replacement [card fee] of cards.--[A State]
                      (A) Fees.--A State agency may collect a
                    charge for replacement of an electronic benefit
                    transfer card by reducing the monthly allotment
                    of the household receiving the replacement
                    card.
                      (B) Purposeful loss of cards.--
                              (i) In general.--Subject to terms and
                            conditions established by the Secretary
                            in accordance with clause (ii), if a
                            household makes excessive requests for
                            replacement of the electronic benefit
                            transfer card of the household, the
                            Secretary may require a State agency to
                            decline to issue a replacement card to
                            the household unless the household,
                            upon request of the State agency,
                            provides an explanation for the loss of
                            the card.
                              (ii) Requirements.--The terms and
                            conditions established by the Secretary
                            shall provide that--
                                      (I) the household be given
                                    the opportunity to provide the
                                    requested explanation and meet
                                    the requirements under this
                                    paragraph promptly;
                                      (II) after an excessive
                                    number of lost cards, the head
                                    of the household shall be
                                    required to review program
                                    rights and responsibilities
                                    with State agency personnel
                                    authorized to make
                                    determinations under section
                                    5(a); and
                                      (III) any action taken,
                                    including actions required
                                    under section 6(b)(2), other
                                    than the withholding of the
                                    electronic benefit transfer
                                    card until an explanation
                                    described in subclause (I) is
                                    provided, shall be consistent
                                    with the due process
                                    protections under section 6(b)
                                    or 11(e)(10), as appropriate.
                      (C) Protecting vulnerable persons.--In
                    implementing this paragraph, a State agency
                    shall act to protect homeless persons, persons
                    with disabilities, victims of crimes, and other
                    vulnerable persons who lose electronic benefit
                    transfer cards but are not intentionally
                    committing fraud.
                      (D) Effect on eligibility.--While a State may
                    decline to issue an electronic benefits
                    transfer card until a household satisfies the
                    requirements under this paragraph, nothing in
                    this paragraph shall be considered a denial of,
                    or limitation on, the eligibility for benefits
                    under section 5.

               *       *       *       *       *       *       *

              [(12)] (13) Interchange fees.--No interchange fees
            shall apply to electronic benefit transfer transactions
            under this subsection.

               *       *       *       *       *       *       *

              (14) Demonstration projects on acceptance of benefits
            of mobile transactions.--
                      (A) In general.--The Secretary shall pilot
                    the use of mobile technologies determined by
                    the Secretary to be appropriate to test the
                    feasibility and implications for program
                    integrity, by allowing retail food stores,
                    farmers markets, and other direct producer-to-
                    consumer marketing outlets to accept benefits
                    from recipients of supplemental nutrition
                    assistance through mobile transactions.
                      (B) Demonstration projects.--To be eligible
                    to participate in a demonstration project under
                    subsection (a), a retail food store, farmers
                    market, or other direct producer-to-consumer
                    marketing outlet shall submit to the Secretary
                    for approval a plan that includes--
                              (i) a description of the technology;
                              (ii) the manner by which the retail
                            food store, farmers market or other
                            direct producer-to-consumer marketing
                            outlet will provide proof of the
                            transaction to households;
                              (iii) the provision of data to the
                            Secretary, consistent with requirements
                            established by the Secretary, in a
                            manner that allows the Secretary to
                            evaluate the impact of the
                            demonstration on participant access,
                            ease of use, and program integrity; and
                              (iv) such other criteria as the
                            Secretary may require.
                      (C) Date of completion.--The demonstration
                    projects under this paragraph shall be
                    completed and final reports submitted to the
                    Secretary by not later than July 1, 2015.
                      (D) Report to congress.--The Secretary shall
                    submit a report to the Committee on Agriculture
                    of the House of Representatives and the
                    Committee on Agriculture, Nutrition, and
                    Forestry of the Senate that includes a finding,
                    based on the data provided under subparagraph
                    (C) whether or not implementation in all States
                    is in the best interest of the supplemental
                    nutrition assistance program.

               *       *       *       *       *       *       *

           APPROVAL OF RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS

      Sec. 9. (a)(1) Regulations issued pursuant to this Act shall
    provide for the submission of applications for approval by
    retail food stores and wholesale food concerns which desire to
    be authorized to accept and redeem benefits under the
    supplemental nutrition assistance program and for the approval
    of those applicants whose participation will effectuate the
    purposes of the supplemental nutrition assistance program. In
    determining the qualifications of applicants, there shall be
    considered among such other factors as may be appropriate, the
    following: (A) the nature and extent of the food business
    conducted by the applicant; (B) the volume of benefit
    transactions which may reasonably be expected to be conducted
    by the applicant food store or wholesale food concern[; and
    (C)]; (C) whether the applicant is located in an area with
    significantly limited access to food; and (D) the business
    integrity and reputation of the applicant. Approval of an
    applicant shall be evidenced by the issuance to such applicant
    of a nontransferable certificate of approval. No retail food
    store or wholesale food concern of a type determined by the
    Secretary, based on factors that include size, location, and
    type of items sold, shall be approved to be authorized or
    reauthorized for participation in the supplemental nutrition
    assistance program unless an authorized employee of the
    Department of Agriculture, a designee of the Secretary, or, if
    practicable, an official of the State or local government
    designated by the Secretary has visited the store or concern
    for the purpose of determining whether the store or concern
    should be approved or reauthorized, as appropriate.

               *       *       *       *       *       *       *

              (3) Authorization periods.--The Secretary shall
            establish specific time periods during which
            authorization to accept and redeem benefits shall be
            valid under the supplemental nutrition assistance
            program.
      (b)(1) * * *

               *       *       *       *       *       *       *

              (3) Retail food stores with significant sales of
            excluded items.--
                      (A) In general.--No retail food store for
                    which at least 45 percent of the total sales of
                    the retail food store is from the sale of
                    excluded items described in section 3(k)(1) may
                    be authorized to accept and redeem benefits
                    unless the Secretary determines that the
                    participation of the retail food store is
                    required for the effective and efficient
                    operation of the supplemental nutrition
                    assistance program.
                      (B) Application.--Subparagraph (A) shall be
                    effective--
                              (i) in the case of retail food stores
                            applying to be authorized for the 1st
                            time, beginning on the date that is 1
                            year after the effective date of this
                            paragraph; and
                              (ii) in the case of retail food
                            stores participating in the program on
                            the effective date of this paragraph,
                            during periodic reauthorization in
                            accordance with subsection (a)(2)(A).

               *       *       *       *       *       *       *

      (g) EBT Service Requirement.--An approved retail food store
    shall provide adequate EBT service as described in section
    7(h)(3)(B).
      (h) Private Establishments.--
              (1) In general.--Subject to paragraph (2), no private
            establishment that contracts with a State agency to
            offer meals at concessional prices as described in
            paragraphs (3), (4), and (9) of section 3(k) may be
            authorized to accept and redeem benefits unless the
            Secretary determines that the participation of the
            private establishment is required to meet a documented
            need in accordance with section 11(e)(24).
              (2) Existing contracts.--
                      (A) In general.--If, on the day before the
                    effective date of this subsection, a State has
                    entered into a contract with a private
                    establishment described in paragraph (1) and
                    the Secretary has not determined that the
                    participation of the private establishment is
                    necessary to meet a documented need in
                    accordance with section 11(e)(24), the
                    Secretary shall allow the operation of the
                    private establishment to continue without that
                    determination of need for a period not to
                    exceed 180 days from the date on which the
                    Secretary establishes determination criteria,
                    by regulation, under section 11(e)(24).
                      (B) Justification.--If the Secretary
                    determines to terminate a contract with a
                    private establishment that is in effect on the
                    effective date of this subsection, the
                    Secretary shall provide justification to the
                    State in which the private establishment is
                    located for that termination.
              (3) Report to congress.--Not later than 90 days after
            September 30, 2013, and 90 days after the last day of
            each fiscal year thereafter, the Secretary shall report
            to the Committee on Agriculture of the House of
            Representatives and the Committee on Agriculture,
            Nutrition, and Forestry of the Senate on the
            effectiveness of a program under this subsection using
            any information received from States under section
            11(e)(24) as well as any other information the
            Secretary may have relating to the manner in which
            benefits are used.

    SEC. 10. REDEMPTION OF PROGRAM BENEFITS.

      Regulations issued pursuant to this Act shall provide for the
    redemption of benefits accepted by retail food stores through
    approved wholesale food concerns or through financial
    institutions which are insured by the Federal Deposit Insurance
    Corporation or the Federal Savings and Loan Insurance
    Corporation, or which are insured under the Federal Credit
    Union Act and have retail food stores or wholesale food
    concerns in their field of membership, with the cooperation of
    the Treasury Department, except that retail food stores defined
    in section 3(p)(4) shall be authorized to redeem their members'
    food benefits prior to receipt by the members of the food so
    purchased, agricultural producers who market agricultural
    products directly to consumers shall be authorized to redeem
    benefits for the initial cost of the purchase of a community-
    supported agriculture share, and publicly operated community
    mental health centers or private nonprofit organizations or
    institutions which serve meals to narcotics addicts or
    alcoholics in drug addiction or alcoholic treatment and
    rehabilitation programs, public and private nonprofit shelters
    that prepare and serve meals for battered women and children,
    and public or private nonprofit group living arrangements that
    serve meals to disabled or blind residents shall not be
    authorized to redeem benefits through financial institutions
    which are insured by the Federal Deposit Insurance Corporation
    or the Federal Savings and Loan Insurance Corporation or the
    Federal Credit Union Act. Notwithstanding the preceding
    sentence, a center, organization, institution, shelter, group
    living arrangement, or establishment described in that sentence
    may be authorized to redeem benefits through a financial
    institution described in that sentence if the center,
    organization, institution, shelter, group living arrangement,
    or establishment is equipped with 1 or more point-of-sale
    devices and is operating in an area in which an electronic
    benefit transfer system described in section 7(h) has been
    implemented. No financial institution may impose on or collect
    from a retail food store a fee or other charge for the
    redemption of benefits that are submitted to the financial
    institution in a manner consistent with the requirements, other
    than any requirements relating to cancellation of benefits, for
    the presentation of coupons by financial institutions to the
    Federal Reserve banks.

    SEC. 11. ADMINISTRATION.

      (a) * * *

               *       *       *       *       *       *       *

      (e) The State plan of operation required under subsection (d)
    of this section shall provide, among such other provisions as
    may be required by regulation--
              (1) * * *

               *       *       *       *       *       *       *

              (22) the guidelines the State agency uses in carrying
            out section 6(i); [and]
              (23) if a State elects to carry out a Simplified
            Supplemental Nutrition Assistance Program under section
            26, the plans of the State agency for operating the
            program, including--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) a description of the method by which the
                    State agency will carry out a quality control
                    system under section 16(c)[.]; and
              (24) if the State elects to carry out a program to
            contract with private establishments to offer meals at
            concessional prices, as described in paragraphs (3),
            (4), and (9) of section 3(k)--
                      (A) the plans of the State agency for
                    operating the program, including--
                              (i) documentation of a need that
                            eligible homeless, elderly, and
                            disabled clients are underserved in a
                            particular geographic area;
                              (ii) the manner by which the State
                            agency will limit participation to only
                            those private establishments that the
                            State determines necessary to meet the
                            need identified in clause (i); and
                              (iii) any other conditions the
                            Secretary may prescribe, such as the
                            level of security necessary to ensure
                            that only eligible recipients
                            participate in the program; and
                      (B) a report by the State agency to the
                    Secretary annually, the schedule of which shall
                    be established by the Secretary, that
                    includes--
                              (i) the number of households and
                            individual recipients authorized to
                            participate in the program, including
                            any information on whether the
                            individual recipient is elderly,
                            disabled, or homeless; and
                              (ii) an assessment of whether the
                            program is meeting an established need,
                            as documented under subparagraph
                            (A)(i).

               *       *       *       *       *       *       *

      [(p) State Verification Option.--Notwithstanding any other
    provision of law, in carrying out the supplemental nutrition
    assistance program, a State agency shall not be required to use
    an income and eligibility or an immigration status verification
    system established under section 1137 of the Social Security
    Act (42 U.S.C. 1320b-7).]
      (p) State Verification Option.--In carrying out the
    supplemental nutrition assistance program, a State agency shall
    be required to use an income and eligibility, or an immigration
    status, verification system established under section 1137 of
    the Social Security Act (42 U.S.C. 1320b-7), in accordance with
    standards set by the Secretary.

               *       *       *       *       *       *       *

      [(t) Grants for Simple Application and Eligibility
    Determination Systems and Improved Access to Benefits.--
              [(1) In general.--Subject to the availability of
            appropriations under section 18(a), for each fiscal
            year, the Secretary shall use not more than $5,000,000
            of funds made available under section 18(a)(1) to make
            grants to pay 100 percent of the costs of eligible
            entities approved by the Secretary to carry out
            projects to develop and implement--
                      [(A) simple supplemental nutrition assistance
                    program application and eligibility
                    determination systems; or
                      [(B) measures to improve access to
                    supplemental nutrition assistance program
                    benefits by eligible households.
              [(2) Types of projects.--A project under paragraph
            (1) may consist of--
                      [(A) coordinating application and eligibility
                    determination processes, including verification
                    practices, under the supplemental nutrition
                    assistance program and other Federal, State,
                    and local assistance programs;
                      [(B) establishing methods for applying for
                    benefits and determining eligibility that--
                              [(i) more extensively use--
                                      [(I) communications by
                                    telephone; and
                                      [(II) electronic alternatives
                                    such as the Internet; or
                              [(ii) otherwise improve the
                            administrative infrastructure used in
                            processing applications and determining
                            eligibility;
                      [(C) developing procedures, training
                    materials, and other resources aimed at
                    reducing barriers to participation and reaching
                    eligible households;
                      [(D) improving methods for informing and
                    enrolling eligible households; or
                      [(E) carrying out such other activities as
                    the Secretary determines to be appropriate.
              [(3) Limitation.--A grant under this subsection shall
            not be made for the ongoing cost of carrying out any
            project.
              [(4) Eligible entities.--To be eligible to receive a
            grant under this subsection, an entity shall be--
                      [(A) a State agency administering the
                    supplemental nutrition assistance program;
                      [(B) a State or local government;
                      [(C) an agency providing health or welfare
                    services;
                      [(D) a public health or educational entity;
                    or
                      [(E) a private nonprofit entity such as a
                    community-based organization, food bank, or
                    other emergency feeding organization.
              [(5) Selection of eligible entities.--The Secretary--
                      [(A) shall develop criteria for the selection
                    of eligible entities to receive grants under
                    this subsection; and
                      [(B) may give preference to any eligible
                    entity that consists of a partnership between a
                    governmental entity and a nongovernmental
                    entity.]

               *       *       *       *       *       *       *

      (v) Data Exchange Standardization for Improved
    Interoperability.--
              (1) Data exchange standards.--
                      (A) Designation.--The Secretary, in
                    consultation with an interagency work group
                    which shall be established by the Office of
                    Management and Budget, and considering State
                    perspectives, shall, by rule, designate a data
                    exchange standard for any category of
                    information required to be reported under this
                    Act.
                      (B) Data exchange standards must be
                    nonproprietary and interoperable.--The data
                    exchange standard designated under subparagraph
                    (A) shall, to the extent practicable, be
                    nonproprietary and interoperable.
                      (C) Other requirements.--In designating data
                    exchange standards under this subsection, the
                    Secretary shall, to the extent practicable,
                    incorporate--
                              (i) interoperable standards developed
                            and maintained by an international
                            voluntary consensus standards body, as
                            defined by the Office of Management and
                            Budget, such as the International
                            Organization for Standardization;
                              (ii) interoperable standards
                            developed and maintained by
                            intergovernmental partnerships, such as
                            the National Information Exchange
                            Model; and
                              (iii) interoperable standards
                            developed and maintained by Federal
                            entities with authority over
                            contracting and financial assistance,
                            such as the Federal Acquisition
                            Regulatory Council.
              (2) Data exchange standards for reporting.--
                      (A) Designation.--The Secretary, in
                    consultation with an interagency work group
                    established by the Office of Management and
                    Budget, and considering State perspectives,
                    shall, by rule, designate data exchange
                    standards to govern the data reporting required
                    under this part.
                      (B) Requirements.--The data exchange
                    standards required by subparagraph (A) shall,
                    to the extent practicable--
                              (i) incorporate a widely-accepted,
                            nonproprietary, searchable, computer-
                            readable format;
                              (ii) be consistent with and implement
                            applicable accounting principles; and
                              (iii) be capable of being continually
                            upgraded as necessary.
                      (C) Incorporation of nonproprietary
                    standards.--In designating reporting standards
                    under this subsection, the Secretary shall, to
                    the extent practicable, incorporate existing
                    nonproprietary standards, such as the
                    eXtensible Markup Language.

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

      (a) * * *
      (b) Period of Disqualification.--Subject to subsection (c), a
    disqualification under subsection (a) shall be--
              (1) * * *

               *       *       *       *       *       *       *

              (3) permanent upon--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) a finding of the sale of firearms,
                    ammunition, explosives, or controlled substance
                    (as defined in section 802 of title 21, United
                    States Code) for coupons, except that the
                    Secretary shall have the discretion to impose a
                    civil penalty of up to $20,000 for each
                    violation (except that the amount of [civil
                    money penalties] civil penalties imposed for
                    violations occurring during a single
                    investigation may not exceed $40,000) in lieu
                    of disqualification under this subparagraph if
                    the Secretary determines that there is
                    substantial evidence (including evidence that
                    neither the ownership nor management of the
                    store or food concern was aware of, approved,
                    benefited from, or was involved in the conduct
                    or approval of the violation) that the store or
                    food concern had an effective policy and
                    program in effect to prevent violations of this
                    Act; and

               *       *       *       *       *       *       *

      (g) Disqualification of Retailers Who Are Disqualified Under
    the WIC Program.--
              (1) In general.--The Secretary shall issue
            regulations providing criteria for the disqualification
            under this Act of an approved retail food store or a
            wholesale food concern that is disqualified from
            accepting benefits under the special supplemental
            nutrition program for women, infants, and children
            established under section 17 of the Child Nutrition Act
            of 1966 [(7 U.S.C. 1786)] (42 U.S.C. 1786).

               *       *       *       *       *       *       *

                           VIOLATIONS AND ENFORCEMENT

      Sec. 15. (a) * * *
      (b)(1) Subject to the provisions of paragraph (2) of this
    subsection, whoever knowingly uses, transfers, acquires,
    alters, or possesses benefits in any manner contrary to this
    Act or the regulations issued pursuant to this Act shall, if
    such benefits are of a value of $5,000 or more, be guilty of a
    felony and shall be fined not more than $250,000 or imprisoned
    for not more than twenty years, or both, and shall, if such
    benefits are of a value of $100 or more, but less than $5,000,
    or if the item used, transferred, acquired, altered, or
    possessed is [an benefit] a benefit that has a value of $100 or
    more, but less than $5,000, be guilty of a felony and shall,
    upon the first conviction thereof, be fined not more than
    $10,000 or imprisoned for not more than five years, or both,
    and, upon the second and any subsequent conviction thereof,
    shall be imprisoned for not less than six months nor more than
    five years and may also be fined not more than $10,000 or, if
    such benefits are of a value of less than $100, or if the item
    used, transferred, acquired, altered, or processed is an
    benefit that has a value of less than $100, shall be guilty of
    a misdemeanor, and, upon the first conviction thereof, shall be
    fined not more than $1,000 or imprisoned for not more than one
    year, or both, and upon the second and any subsequent
    conviction thereof, shall be imprisoned for not more than one
    year and may also be fined not more than $1,000. In addition to
    such penalties, any person convicted of a felony or misdemeanor
    violation under this subsection may be suspended by the court
    from participation in the supplemental nutrition assistance
    program for an additional period of up to eighteen months
    consecutive to that period of suspension mandated by section
    6(b)(1) of this Act.

               *       *       *       *       *       *       *

                ADMINISTRATIVE COST-SHARING AND QUALITY CONTROL

      Sec. 16. (a) Subject to subsection (k), the Secretary is
    authorized to pay to each State agency an amount equal to 50
    per centum of all administrative costs involved in each State
    agency's operation of the supplemental nutrition assistance
    program, which costs shall include, but not be limited to, the
    cost of (1) the certification of applicant households, (2) the
    acceptance, storage, protection, control, and accounting of
    benefits after their delivery to receiving points within the
    State, (3) the issuance of benefits to all eligible households,
    (4) informational activities relating to the supplemental
    nutrition assistance program, including those undertaken under
    section 11(e)(1)(A), but not including recruitment activities,
    (5) fair hearings, (6) automated data processing and
    information retrieval systems subject to the conditions set
    forth in subsection (g), (7) supplemental nutrition assistance
    program investigations and prosecutions, and (8) implementing
    and operating the immigration status verification system
    established under section 1137(d) of the Social Security Act
    (42 U.S.C. 1320b-7(d)): Provided, That the Secretary is
    authorized at the Secretary's discretion to pay any State
    agency administering the supplemental nutrition assistance
    program on all or part of an Indian reservation under section
    11(d) of this Act or in a Native village within the State of
    Alaska identified in section 11(b) of Public Law 92-203[, as
    amended.] such amounts for administrative costs as the
    Secretary determines to be necessary for effective operation of
    the supplemental nutrition assistance program, as well as to
    permit each State to retain 35 percent of the value of all
    funds or allotments recovered or collected pursuant to sections
    6(b) and 13(c) and 20 percent of the value of any other funds
    or allotments recovered or collected, except the value of funds
    or allotments recovered or collected that arise from an error
    of a State agency. The officials responsible for making
    determinations of ineligibility under this Act shall not
    receive or benefit from revenues retained by the State under
    the provisions of this subsection.

               *       *       *       *       *       *       *

      [(d) Bonuses for States That Demonstrate High or Most
    Improved Performance.--
              [(1) Fiscal years 2003 and 2004.--
                      [(A) Guidance.--With respect to fiscal years
                    2003 and 2004, the Secretary shall establish,
                    in guidance issued to State agencies not later
                    than October 1, 2002--
                              [(i) performance criteria relating
                            to--
                                      [(I) actions taken to correct
                                    errors, reduce rates of error,
                                    and improve eligibility
                                    determinations; and
                                      [(II) other indicators of
                                    effective administration
                                    determined by the Secretary;
                                    and
                              [(ii) standards for high and most
                            improved performance to be used in
                            awarding performance bonus payments
                            under subparagraph (B)(ii).
                      [(B) Performance bonus payments.--With
                    respect to each of fiscal years 2003 and 2004,
                    the Secretary shall--
                              [(i) measure the performance of each
                            State agency with respect to the
                            criteria established under subparagraph
                            (A)(i); and
                              [(ii) subject to paragraph (3), award
                            performance bonus payments in the
                            following fiscal year, in a total
                            amount of $48,000,000 for each fiscal
                            year, to State agencies that meet
                            standards for high or most improved
                            performance established by the
                            Secretary under subparagraph (A)(ii).
              [(2) Fiscal years 2005 and thereafter.--
                      [(A) Regulations.--With respect to fiscal
                    year 2005 and each fiscal year thereafter, the
                    Secretary shall--
                              [(i) establish, by regulation,
                            performance criteria relating to--
                                      [(I) actions taken to correct
                                    errors, reduce rates of error,
                                    and improve eligibility
                                    determinations; and
                                      [(II) other indicators of
                                    effective administration
                                    determined by the Secretary;
                              [(ii) establish, by regulation,
                            standards for high and most improved
                            performance to be used in awarding
                            performance bonus payments under
                            subparagraph (B)(ii); and
                              [(iii) before issuing proposed
                            regulations to carry out clauses (i)
                            and (ii), solicit ideas for performance
                            criteria and standards for high and
                            most improved performance from State
                            agencies and organizations that
                            represent State interests.
                      [(B) Performance bonus payments.--With
                    respect to fiscal year 2005 and each fiscal
                    year thereafter, the Secretary shall--
                              [(i) measure the performance of each
                            State agency with respect to the
                            criteria established under subparagraph
                            (A)(i); and
                              [(ii) subject to paragraph (3), award
                            performance bonus payments in the
                            following fiscal year, in a total
                            amount of $48,000,000 for each fiscal
                            year, to State agencies that meet
                            standards for high or most improved
                            performance established by the
                            Secretary under subparagraph (A)(ii).
              [(3) Prohibition on receipt of performance bonus
            payments.--A State agency shall not be eligible for a
            performance bonus payment with respect to any fiscal
            year for which the State agency has a liability amount
            established under subsection (c)(1)(C).
              [(4) Payments not subject to judicial review.--A
            determination by the Secretary whether, and in what
            amount, to award a performance bonus payment under this
            subsection shall not be subject to administrative or
            judicial review.]

               *       *       *       *       *       *       *

      (h) Funding of Employment and Training Programs.--
              (1) In general.--
                      (A) Amounts.--To carry out employment and
                    training programs, the Secretary shall reserve
                    for allocation to State agencies, to remain
                    available for 15 months, from funds made
                    available for each fiscal year under section
                    18(a)(1), [$90,000,000] $79,000,000 for each
                    fiscal year.

               *       *       *       *       *       *       *

      [(5) The Secretary shall monitor the employment and training
    programs carried out by State agencies under section 6(d)(4) to
    measure their effectiveness in terms of the increase in the
    numbers of household members who obtain employment and the
    numbers of such members who retain such employment as a result
    of their participation in such employment and training
    programs.]
              (5)(A) In general.--The Secretary shall monitor the
            employment and training programs carried out by State
            agencies under section 6(d)(4) and assess their
            effectiveness in--
                      (i) preparing members of households
                    participating in the supplemental nutrition
                    assistance program for employment, including
                    the acquisition of basic skills necessary for
                    employment; and
                      (ii) increasing the numbers of household
                    members who obtain and retain employment
                    subsequent to their participation in such
                    employment and training programs.
              (B) Reporting measures.--The Secretary, in
            consultation with the Secretary of Labor, shall develop
            reporting measures that identify improvements in the
            skills, training education or work experience of
            members of households participating in the supplemental
            nutrition assistance program. Measures shall be based
            on common measures of performance for federal workforce
            training programs, so long as they reflect the
            challenges facing the types of members of households
            participating in the supplemental nutrition assistance
            program who participate in a specific employment and
            training component. The Secretary shall require that
            each State employment and training plan submitted under
            section 11(3)(19) identify appropriate reporting
            measures for each of their proposed components that
            serve at least 100 people. Such measures may include:
                      (i) the percentage and number of program
                    participants who received employment and
                    training services and are in unsubsidized
                    employment subsequent to the receipt of those
                    services;
                      (ii) the percentage and number of program
                    participants who obtain a recognized
                    postsecondary credential, including a
                    registered apprenticeship, or a regular
                    secondary school diploma or its recognized
                    equivalent, while participating in or within 1
                    year after receiving employment and training
                    services;
                      (iii) the percentage and number of program
                    participants who are in an education or
                    training program that is intended to lead to a
                    recognized postsecondary credential, including
                    a registered apprenticeship or on-the-job
                    training program, a regular secondary school
                    diploma or its recognized equivalent, or
                    unsubsidized employment;
                      (iv) subject to the terms and conditions set
                    by the Secretary, measures developed by each
                    State agency to assess the skills acquisition
                    of employment and training program participants
                    that reflect the goals of their specific
                    employment and training program components,
                    which may include, but are not limited to--
                              (I) the percentage and number of
                            program participants who are meeting
                            program requirements in each component
                            of the State's education and training
                            program; and
                              (II) the percentage and number of
                            program participants who are gaining
                            skills likely to lead to employment as
                            measured through testing, quantitative
                            or qualitative assessment or other
                            method; and
                      (v) other indicators as approved by the
                    Secretary.
              (C) State report.--Each State agency shall annually
            prepare and submit to the Secretary a report on the
            State's employment and training program that includes
            the numbers of supplemental nutrition assistance
            program participants who have gained skills, training,
            work or experience that will increase their ability to
            obtain regular employment using measures identified in
            subparagraph (B).
              (D) Modifications to the state employment and
            training plan.--Subject to the terms and conditions
            established by the Secretary, if the Secretary
            determines that the state agency's performance with
            respect to employment and training outcomes is
            inadequate, the Secretary may require the State agency
            to make modifications to their employment and training
            plan to improve such outcomes.
              (E) Periodic evaluation.--
                      (i) In general.--Subject to terms and
                    conditions established by the Secretary, not
                    later than October 1, 2015, and not less
                    frequently than once every 5 years thereafter,
                    the Secretary shall conduct a study to review
                    existing practice and research to identify
                    employment and training program components and
                    practices that--
                              (I) effectively assist members of
                            households participating in the
                            supplemental nutrition assistance
                            program in gaining skills, training,
                            work, or experience that will increase
                            their ability to obtain regular
                            employment, and
                              (II) are best integrated with
                            statewide workforce development
                            systems.
                      (ii) Report to congress.--The Secretary shall
                    submit a report that describes the results of
                    the study under clause (i) to the Committee on
                    Agriculture in the House of Representatives,
                    and the Committee on Agriculture, Nutrition and
                    Forestry in the Senate.

               *       *       *       *       *       *       *

                    RESEARCH, DEMONSTRATION, AND EVALUATIONS

      Sec. 17. (a) * * *

               *       *       *       *       *       *       *

      (l) Cooperation With Program Research and Evaluation.--
    States, State agencies, local agencies, institutions,
    facilities such as data consortiums, and contractors
    participating in programs authorized under this Act shall
    cooperate with officials and contractors acting on behalf of
    the Secretary in the conduct of evaluations and studies under
    this Act and shall submit information at such time and in such
    manner as the Secretary may require.

                        AUTHORIZATION FOR APPROPRIATIONS

      Sec. 18. (a)(1) To carry out this Act, there are authorized
    to be appropriated such sums as are necessary for each of
    fiscal years 2008 through [2012] 2017. Not to exceed one-fourth
    of 1 per centum of the previous year's appropriation is
    authorized in each such fiscal year to carry out the provisions
    of section 17 of this Act, subject to paragraph (3).

               *       *       *       *       *       *       *

      (e) Funds collected from claims against households or State
    agencies, including claims collected pursuant to [sections
    7(f)] section 7(f), subsections (g) and (h) of section 11,
    subsections (b) and (c) of section 13, and section 16(c)(1),
    claims resulting from resolution of audit findings, and claims
    collected from households receiving overissuances, shall be
    credited to the supplemental nutrition assistance program
    appropriation account for the fiscal year in which the
    collection occurs. Funds provided to State agencies under
    section 16(c) of this Act shall be paid from the appropriation
    account for the fiscal year in which the funds are provided.

               *       *       *       *       *       *       *

    SEC. 19. CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO AND AMERICAN SAMOA.

      (a) Payments to Governmental Entities.--
              (1) * * *
              (2) Block grants.--
                      (A) * * *
                      (B) Payments to commonwealth of puerto
                    rico.--
                              (i) * * *

               *       *       *       *       *       *       *

                              (iii) Limitation on use of funds.--
                            None of the funds made available to the
                            Commonwealth of Puerto Rico under this
                            subparagraph may be used to provide
                            nutrition assistance in the form of
                            cash benefits.

               *       *       *       *       *       *       *

                      MINNESOTA FAMILY INVESTMENT PROJECT

      Sec. 22. (a) * * *
      (b) Required Terms and Conditions of the Project.--The
    application submitted by the State under subsection (a) shall
    provide an assurance that the Project shall satisfy all of the
    following requirements:
              (1) * * *

               *       *       *       *       *       *       *

              (10)(A) * * *
              (B)(i) Following the standards specified in
            subparagraph (C), the State shall ensure that benefits
            under the supplemental nutrition assistance program are
            provided to participating families in case the Project
            is terminated or to participating families or family
            members that are determined ineligible for the Project
            because of income, resources, or change in household
            composition, if such families or individuals are
            determined eligible for the supplemental nutrition
            assistance program. [Food benefits] Benefits shall be
            issued to eligible families and individuals described
            in this clause retroactive to the date of termination
            from the Project; and

               *       *       *       *       *       *       *

    SEC. 25. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

      (a) Definitions.--In this section:
              (1) Community food project.--In this section, the
            term ``community food project'' means a community-based
            project that--
                      (A) * * *
                      (B) is designed--
                              (i)(I) * * *
                              (II) to increase the self-reliance of
                            communities in providing for the food
                            needs of the communities; [and]
                              (III) to promote comprehensive
                            responses to local food, farm, and
                            nutrition issues; [or] and
                                      (IV) to provide incentives
                                    for the consumption of fruits
                                    and vegetables among low-income
                                    individuals; or

               *       *       *       *       *       *       *

      (b) Authority To Provide Assistance.--
              (1) * * *

               *       *       *       *       *       *       *

              (3) Funding.--
                      (A) In general.--Out of any funds in the
                    Treasury not otherwise appropriated, the
                    Secretary of the Treasury shall transfer to the
                    Secretary to carry out this section not less
                    than $10,000,000 for fiscal year 2013 and each
                    fiscal year thereafter. Of the amount made
                    available under this subparagraph for each such
                    fiscal year, $5,000,000 shall be available to
                    carry out subsection (a)(1)(B)(I)(IV).
                      (B) Receipt and acceptance.--The Secretary
                    shall be entitled to receive, shall accept, and
                    shall use to carry out this section, the funds
                    transferred under subparagraph (A) without
                    further appropriation.
                      (C) Maintenance of funding.--The funding
                    provided under subparagraph (A) shall
                    supplement (and not supplant) other Federal
                    funding made available to the Secretary to
                    carry out this section.

               *       *       *       *       *       *       *

    SEC. 26. SIMPLIFIED SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (f) Rules and Procedures.--
              (1) * * *

               *       *       *       *       *       *       *

              (3) Requirements.--In operating a Program, a State or
            political subdivision shall comply with the
            requirements of--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) [subsection] subsections (b) and (d) of
                    section 8;

               *       *       *       *       *       *       *

    SEC. 27. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD ASSISTANCE
                        PROGRAM.

      (a) Purchase of Commodities.--
              (1) In general.--From amounts made available to carry
            out this Act, for each of the fiscal years [2008
            through 2012] 2012 through 2017, the Secretary shall
            purchase a dollar amount described in paragraph (2) of
            a variety of nutritious and useful commodities of the
            types that the Secretary has the authority to acquire
            through the Commodity Credit Corporation or under
            section 32 of the Act entitled ``An Act to amend the
            Agricultural Adjustment Act, and for other purposes'',
            approved August 24, 1935 (7 U.S.C. 612c), and
            distribute the commodities to States for distribution
            in accordance with section 214 of the Emergency Food
            Assistance Act of 1983 [(Public Law 98-8; 7 U.S.C. 612c
            note)] (7 U.S.C. 7515).
              (2) Amounts.--The Secretary shall use to carry out
            paragraph (1)--
                      [(A) for fiscal year 2008, $190,000,000;
                      [(B) for fiscal year 2009, $250,000,000; and]
                      (A) for fiscal year 2012, $260,250,000;
                      (B) for fiscal year 2013 the dollar amount of
                    commodities specified in subparagraph (A)
                    adjusted by the percentage by which the thrifty
                    food plan has been adjusted under section
                    3(u)(4) between June 30, 2011 and June 30,
                    2012, and subsequently increased by
                    $20,000,000;
                      (C) for each of fiscal years [2010 through
                    2012, the dollar amount of commodities
                    specified in] 2014 through 2017, the total
                    amount of commodities under subparagraph (B)
                    adjusted by the percentage by which the thrifty
                    food plan has been adjusted under section
                    3(u)(4) between June 30, [2008] 2012, and June
                    30 of the immediately preceding fiscal year[.];
                    and
                      (D) for fiscal year 2013 the dollar amount of
                    commodities specified in subparagraph (B), and
                    for each of the fiscal years 2014 through 2017
                    the respective dollar amount of commodities
                    specified in subparagraph (C), increased by
                    $5,000,000.

               *       *       *       *       *       *       *

    SEC. 28. NUTRITION EDUCATION AND OBESITY PREVENTION GRANT PROGRAM.

      (a) * * *
      (b) Programs.--Consistent with the terms and conditions of
    grants awarded under this section, State agencies may implement
    a nutrition education and obesity prevention program for
    eligible individuals that promotes healthy food choices and
    physical activity consistent with the most recent Dietary
    Guidelines for Americans published under section 301 of the
    National Nutrition Monitoring and Related Research Act of 1990
    (7 U.S.C. 5341).

               *       *       *       *       *       *       *

    SEC. 29. RETAILER TRAFFICKING.

      (a) Purpose.--The purpose of this section is to provide the
    Department of Agriculture with additional resources to prevent
    trafficking in violation of this Act by strengthening recipient
    and retailer program integrity. Additional funds are provided
    to supplement the Department's payment accuracy, and retailer
    and recipient integrity activities.
      (b) Funding.--
              (1) In general.--Out of any funds in the Treasury not
            otherwise appropriated, the Secretary of the Treasury
            shall transfer to the Secretary to carry out this
            section not less than $5,000,000 for fiscal year 2013
            and each fiscal year thereafter.
              (2) Receipt and acceptance.--The Secretary shall be
            entitled to receive, shall accept, and shall use to
            carry out this section the funds transferred under
            paragraph (1) without further appropriation.
              (3) Maintenance of funding.--The funding provided
            under paragraph (1) shall supplement (and not supplant)
            other Federal funding for programs carried out under
            this Act.

               *       *       *       *       *       *       *

                                  ----------

                 LOW-INCOME HOME ENERGY ASSISTANCE ACT OF 1981

               *       *       *       *       *       *       *
    TITLE XXVI--LOW-INCOME HOME ENERGY ASSISTANCE

               *       *       *       *       *       *       *

                         APPLICATIONS AND REQUIREMENTS

      Sec. 2605. (a) * * *

               *       *       *       *       *       *       *

      (f)(1) * * *
      (2) For purposes of paragraph (1) of this subsection and for
    purposes of determining any excess shelter expense deduction
    under section 5(e) of the Food and Nutrition Act of 2008 (7
    U.S.C. 2014(e))--
              (A) the full amount of such payments or allowances
            shall be deemed to be expended by such household for
            heating or cooling expenses, without regard to whether
            such payments or allowances are provided directly to,
            or indirectly for the benefit of, such household,
            except that, for purposes of the supplemental nutrition
            assistance program established under the Food and
            Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), such
            payments or allowances exceed $10 or a higher amount
            annually, as determined by the Secretary of Agriculture
            in accordance with section 5(e)(6)(C)(iv)(I) of that
            Act (7 U.S.C. 2014(e)(6)(C)(iv)(I)); and

               *       *       *       *       *       *       *

                                  ----------

                     EMERGENCY FOOD ASSISTANCE ACT OF 1983

               *       *       *       *       *       *       *
    TITLE II--EMERGENCY FOOD ASSISTANCE ACT OF 1983

               *       *       *       *       *       *       *

    SEC. 209. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.

      (a) * * *

               *       *       *       *       *       *       *

      (d) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $15,000,000 for each
    of fiscal years 2008 through [2012] 2017.

               *       *       *       *       *       *       *

                                  ----------

                          OLDER AMERICANS ACT OF 1965

               *       *       *       *       *       *       *
    TITLE V--COMMUNITY SERVICE SENIOR OPPORTUNITIES ACT

               *       *       *       *       *       *       *

    SEC. 509. EMPLOYMENT ASSISTANCE AND FEDERAL HOUSING AND [FOOD STAMP
                        PROGRAMS] SUPPLEMENTAL NUTRITION ASSISTANCE
                        PROGRAM.

      Funds received by eligible individuals from projects carried
    out under the program established under this title shall not be
    considered to be income of such individuals for purposes of
    determining the eligibility of such individuals, or of any
    other individuals, to participate in any housing program for
    which Federal funds may be available or for any income
    determination under the Food and Nutrition Act of 2008 (7
    U.S.C. 2011 et seq.).

               *       *       *       *       *       *       *

                                  ----------

                       TITLE 31 OF THE UNITED STATES CODE

               *       *       *       *       *       *       *
    SUBTITLE III--FINANCIAL MANAGEMENT

               *       *       *       *       *       *       *

    CHAPTER 38--ADMINISTRATIVE REMEDIES FOR FALSE CLAIMS AND STATEMENTS

               *       *       *       *       *       *       *

    Sec. 3803. Hearing and determinations

      (a) * * *

               *       *       *       *       *       *       *

                                  ----------

    SECTION 115 OF THE PERSONAL RESPONSIBILITY AND WORKFORCE INVESTMENT ACT
                                    OF 1996

    SEC. 115. DENIAL OF ASSISTANCE AND BENEFITS FOR CERTAIN DRUG-RELATED
                        CONVICTIONS.

      (a) In General.--An individual convicted (under Federal or
    State law) of any offense which is classified as a felony by
    the law of the jurisdiction involved and which has as an
    element the possession, use, or distribution of a controlled
    substance (as defined in section 102(6) of the Controlled
    Substances Act (21 U.S.C. 802(6))) shall not be eligible for--
              (1) * * *
              (2) benefits under the food stamp program (as defined
            in [section 3(l)] section 3(s) of the Food Stamp Act of
            1977) or any State program carried out under the Food
            Stamp Act of 1977.
      (b) Effects on Assistance and Benefits for Others.--
              (1) * * *
              (2) Benefits under the food stamp act of 1977.--The
            amount of benefits otherwise required to be provided to
            a household under the food stamp program (as defined in
            [section 3(l)] section 3(s) of the Food Stamp Act of
            1977), or any State program carried out under the Food
            Stamp Act of 1977, shall be determined by considering
            the individual to whom subsection (a) applies not to be
            a member of such household, except that the income and
            resources of the individual shall be considered to be
            income and resources of the household.

               *       *       *       *       *       *       *

                                  ----------

                AGRICULTURE AND CONSUMER PROTECTION ACT OF 1973

               *       *       *       *       *       *       *
                         COMMODITY DISTRIBUTION PROGRAM

      Sec. 4. (a) Notwithstanding any other provision of law, the
    Secretary may, during fiscal years 2008 through [2012] 2017,
    purchase and distribute sufficient agricultural commodities
    with funds appropriated from the general fund of the Treasury
    to maintain the traditional level of assistance for food
    assistance programs as are authorized by law, including but not
    limited to distribution to institutions (including hospitals
    and facilities caring for needy infants and children),
    supplemental feeding programs serving women, infants, and
    children or elderly persons, or both, wherever located,
    disaster areas, summer camps for children, the United States
    Trust Territory of the Pacific Islands, and Indians, whenever a
    tribal organization requests distribution of federally donated
    foods pursuant to section 4(b) of the [Food Stamp Act of 1977]
    Food and Nutrition Act of 2008 (section 2013(b) of this title).
    In providing for commodity distribution to Indians, the
    Secretary shall improve the variety and quantity of commodities
    supplied to Indians in order to provide them an opportunity to
    obtain a more nutritious diet.

               *       *       *       *       *       *       *

                      COMMODITY SUPPLEMENTAL FOOD PROGRAM

      Sec. 5. (a) Grants Per Assigned Caseload Slot.--
              (1) In general.--In carrying out the program under
            section 4 (referred to in this section as the
            ``commodity supplemental food program''), for each of
            fiscal years 2008 through [2012] 2017, the Secretary
            shall provide to each State agency from funds made
            available to carry out that section (including any such
            funds remaining available from the preceding fiscal
            year), a grant per assigned caseload slot for
            administrative costs incurred by the State agency and
            local agencies in the State in operating the commodity
            supplemental food program.
              (2) Amount of grants.--
                      (A) * * *
                      (B) Subsequent fiscal years.--For each of
                    fiscal years 2004 through [2012] 2017, the
                    amount of each grant per assigned caseload slot
                    shall be equal to the amount of the grant per
                    assigned caseload slot for the preceding fiscal
                    year, adjusted by the percentage change
                    between--
                              (i) * * *

               *       *       *       *       *       *       *

      (d)(1) * * *
      (2) Notwithstanding any other provision of law, the Commodity
    Credit Corporation shall, to the extent that the Commodity
    Credit Corporation inventory levels permit, provide not less
    than 9,000,000 pounds of cheese and not less than 4,000,000
    pounds of nonfat dry milk in each of fiscal years 2008 through
    [2012] 2017 to the Secretary of Agriculture. The Secretary
    shall use such amounts of cheese and nonfat dry milk to carry
    out the commodity supplemental food program before the end of
    each fiscal year.

               *       *       *       *       *       *       *

      [(g) Prohibition.--Notwithstanding any other provision of law
    (including regulations), the Secretary may not require a State
    or local agency to prioritize assistance to a particular group
    of individuals that are--
              [(1) low-income persons aged 60 and older; or
              [(2) women, infants, and children.]
      (g) Eligibility.--Except as provided in subsection (m), the
    States shall only provide assistance under the commodity
    supplemental food program to low-income individuals aged 60 and
    older.

               *       *       *       *       *       *       *

      (i) Each State agency administering a commodity supplemental
    food program serving elderly persons shall ensure that written
    information is provided on at least one occasion to each
    elderly participant in or applicant for the commodity
    supplemental food program for the elderly concerning--
              (1) food stamps provided under the [Food Stamp Act of
            1977] Food and Nutrition Act of 2008 (7 U.S.C. 2011 et
            seq.);

               *       *       *       *       *       *       *

      (l) Use of Approved Food Safety Technology.--
              (1) * * *
              (2) Programs.--A program referred to in paragraph (1)
            is a program authorized under--
                      (A) * * *
                      (B) the [Food Stamp Act of 1977] Food and
                    Nutrition Act of 2008 (7 U.S.C. 2011 et seq.);

               *       *       *       *       *       *       *

      (m) Phase-out.--Notwithstanding any other provision of law,
    an individual who receives assistance under the commodity
    supplemental food program on the day before the effective date
    of this subsection shall continue to receive that assistance
    until the date on which the individual no longer qualifies for
    assistance under the eligibility criteria for the program in
    effect on the day before the effective date of this subsection.
                                  ----------

                              SOCIAL SECURITY ACT

               *       *       *       *       *       *       *
    TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH
    CHILDREN AND FOR CHILD-WELFARE SERVICES

               *       *       *       *       *       *       *

    Part D--Child Support and Establishment of Paternity

               *       *       *       *       *       *       *

                         FEDERAL PARENT LOCATOR SERVICE

      Sec. 453. (a) * * *

               *       *       *       *       *       *       *

      (j) Information Comparisons and Other Disclosures.--
              (1) * * *

               *       *       *       *       *       *       *

              (10) Information comparisons and disclosure to assist
            in administration of [food stamp] supplemental
            nutrition assistance programs.--
                      (A) * * *

               *       *       *       *       *       *       *

         TITLE XI--GENERAL PROVISIONS, PEER REVIEW, AND ADMINISTRATIVE
                                 SIMPLIFICATION

    Part A--General Provisions

               *       *       *       *       *       *       *

                   INCOME AND ELIGIBILITY VERIFICATION SYSTEM

      Sec. 1137. (a) In order to meet the requirements of this
    section, a State must have in effect an income and eligibility
    verification system which meets the requirements of subsection
    (d) and under which--
              (1) * * *

               *       *       *       *       *       *       *

              (5) adequate safeguards are in effect so as to assure
            that--
                      (A) * * *
                      (B) the information is adequately protected
                    against unauthorized disclosure for other
                    purposes, as provided in regulations
                    established by the Secretary of Health and
                    Human Services, or, in the case of the
                    unemployment compensation program, the
                    Secretary of Labor, or, in the case of the
                    [food stamp] supplemental nutrition assistance
                    program, the Secretary of Agriculture, or in
                    the case of information released pursuant to
                    section 6103(l) of the Internal Revenue Code of
                    1954, the Secretary of the Treasury;

               *       *       *       *       *       *       *

      (b) The programs which must participate in the income and
    eligibility verification system are--
              (1) * * *

               *       *       *       *       *       *       *

              (4) the [food stamp program under the Food Stamp Act
            of 1977] supplemental nutrition assistance program
            under the Food and Nutrition Act of 2008; and

               *       *       *       *       *       *       *

       TITLE XVI--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND
    DISABLED

               *       *       *       *       *       *       *

                   Part B--Procedural and General Provisions

                            PAYMENTS AND PROCEDURES

                              Payment of Benefits

      Sec. 1631. (a) * * *

               *       *       *       *       *       *       *

       CONCURRENT SSI AND [FOOD STAMP] SUPPLEMENTAL NUTRITION ASSISTANCE
                 APPLICATIONS BY INSTITUTIONALIZED INDIVIDUALS

      (n) The Commissioner of Social Security and the Secretary of
    Agriculture shall develop a procedure under which an individual
    who applies for supplemental security income benefits under
    this title shall also be permitted to apply at the same time
    for participation in the supplemental nutrition assistance
    program authorized under the Food and Nutrition Act of 2008 (7
    U.S.C. 2011 et seq.).

               *       *       *       *       *       *       *

                                  ----------

                        AGRICULTURE AND FOOD ACT OF 1981

        DISTRIBUTION OF SURPLUS COMMODITIES; SPECIAL NUTRITION PROJECTS

      Sec. 1114. (a)(1) * * *
      (2)(A) For each of fiscal years 2008 through [2012] 2017,
    whenever a commodity is made available without charge or credit
    under any nutrition program administered by the Secretary of
    Agriculture, 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. The expense of reprocessing shall
    be paid by such eligible recipient agencies.

               *       *       *       *       *       *       *

                                  ----------

          COMMODITY DISTRIBUTION REFORM ACT AND WIC AMENDMENTS OF 1987

               *       *       *       *       *       *       *
    SEC. 3. COMMODITY DISTRIBUTION PROGRAM REFORMS.

      (a) Commodities Specifications.--
              (1) * * *
              (2) Applicability.--Paragraph (1) shall apply to--
                      (A) * * *
                      [(B) the program established under section
                    4(b) of the Food Stamp Act of 1977 (7 U.S.C.
                    2013(b));]
                      (B) the program established under section
                    4(b) of the Food and Nutrition Act of 2008 (7
                    U.S.C. 2013(b));

               *       *       *       *       *       *       *

              (3) Advisory council.--(A) * * *

               *       *       *       *       *       *       *

              (D) The council shall report annually to the
            Secretary of Agriculture, [the Committee on Education
            and Labor] the Committee on Education and the Workforce
            and the Committee on Agriculture of the House of
            Representatives, and the Committee on Agriculture,
            Nutrition, and Forestry of the Senate.

               *       *       *       *       *       *       *

      (b) Duties of Secretary With Respect to Provision of
    Commodities.--With respect to the provision of commodities to
    recipient agencies, the Secretary shall--
              (1) before the end of the 270-day period beginning on
            the date of the enactment of this Act [Jan. 8, 1988]--
                      (A) implement a system to provide recipient
                    agencies with options with respect to package
                    sizes and forms of such commodities, based on
                    information received from such agencies under
                    subsection (f)(2), taking into account the duty
                    of the Secretary--
                              (i) * * *
                              (ii) to purchase surplus agriculture
                            commodities through [section 32 of the
                            Agricultural Adjustment Act (7 U.S.C.
                            601 et seq.)] section 32 of the Act of
                            August 24, 1935 (7 U.S.C. 612c); and

               *       *       *       *       *       *       *

      (e) Regulations.--
              (1) In general.--The Secretary shall provide by
            regulation for--
                      (A) * * *

               *       *       *       *       *       *       *

                      (D) delivery schedules for the distribution
                    of commodities and products that are consistent
                    with the needs of eligible recipient agencies,
                    taking into account the duty of the Secretary--
                              (i) * * *

               *       *       *       *       *       *       *

                              (iii) to make direct purchases of
                            agricultural commodities and other
                            foods for distribution to recipient
                            agencies under--
                                      (I) * * *
                                      [(II) the program established
                                    under section 4(b) of the Food
                                    Stamp Act of 1977 (7 U.S.C.
                                    2013(b)); and]
                                      (II) the program established
                                    under section 4(b) of the Food
                                    and Nutrition Act of 2008 (7
                                    U.S.C. 2013(b));

               *       *       *       *       *       *       *

      (k) Report.--Not later than January 1, 1989, the Secretary
    shall submit to [the Committee on Education and Labor] the
    Committee on Education and the Workforce and the Committee on
    Agriculture of the House of Representatives and to the
    Committee on Agriculture, Nutrition, and Forestry of the Senate
    a report on the implementation and operation of this section.

               *       *       *       *       *       *       *

    SEC. 17. [COMMODITY DONATIONS] COMMODITY DONATIONS AND PROCESSING.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Processing.--For any program included in subsection (b),
    the Secretary may, notwithstanding any other provision of State
    or Federal law relating to the procurement of goods and
    services--
              (1) retain title to commodities delivered to a
            processor, on behalf of a State (including a State
            distributing agency and a recipient agency), until such
            time as end products containing such commodities, or
            similar commodities as approved by the Secretary, are
            delivered to a State distributing agency or to a
            recipient agency; and
              (2) promulgate regulations to ensure accountability
            for commodities provided to a processor for processing
            into end products, and to facilitate processing of
            commodities into end products for use by recipient
            agencies. Such regulations may provide that--
                      (A) a processor that receives commodities for
                    processing into end products, or provides a
                    service with respect to such commodities or end
                    products, in accordance with its agreement with
                    a State distributing agency or a recipient
                    agency, provide to the Secretary a bond or
                    other means of financial assurance to protect
                    the value of such commodities; and
                      (B) in the event a processor fails to deliver
                    to a State distributing agency or a recipient
                    agency an end product in conformance with the
                    processing agreement entered into under this
                    Act, the Secretary take action with respect to
                    the bond or other means of financial assurance
                    pursuant to regulations promulgated under this
                    paragraph and distribute any proceeds obtained
                    by the Secretary to one or more State
                    distributing agencies and recipient agencies as
                    determined appropriate by the Secretary.

    SEC. 18. DEFINITIONS.

      For purposes of this Act:
              [(1) The term ``donated commodities'' means
            agricultural commodities and their products that are
            donated by the Secretary to recipient agencies.
              [(2) The term ``entitlement commodities'' means
            agricultural commodities and their products that are
            donated and charged by the Secretary against
            entitlements established under programs authorized by
            statute to receive such commodities.]
              (1) The term ``commodities'' means agricultural
            commodities and their products that are donated by the
            Secretary for use by recipient agencies.
              (2) The term ``end product'' means a food product
            that contains processed commodities.
                                  ----------

                  RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

               *       *       *       *       *       *       *
    SEC. 19. [FRESH] FRUIT AND VEGETABLE PROGRAM.

      (a) In General.--For the school year beginning July 2008 and
    each subsequent school year, the Secretary shall provide grants
    to States to carry out a program to make free [fresh] fruits
    and vegetables available in elementary schools (referred to in
    this section as the ``program'').
      (b) Program.--A school participating in the program shall
    make free [fresh] fruits and vegetables available to students
    throughout the school day (or at such other times as are
    considered appropriate by the Secretary) in 1 or more areas
    designated by the school.

               *       *       *       *       *       *       *

      (e) Notice of Availability.--If selected to participate in
    the program, a school shall widely publicize within the school
    the availability of free [fresh] fruits and vegetables under
    the program.

               *       *       *       *       *       *       *

                                  ----------

                  CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT

               *       *       *       *       *       *       *
    TITLE III--AGRICULTURAL CREDIT

               *       *       *       *       *       *       *

    Subtitle A--Real Estate Loans

               *       *       *       *       *       *       *

    SEC. 302. PERSONS ELIGIBLE FOR REAL ESTATE LOANS.

      [(a) In General.--The]
      (a) In General.--
              (1) Eligibility requirements.--The Secretary may make
            and insure loans under this subtitle to farmers and
            ranchers in the United States, and to farm cooperatives
            and private domestic corporations, partnerships, joint
            operations, trusts, and limited liability companies,
            and such other legal entities as the Secretary deems
            appropriate, that are controlled by farmers and
            ranchers and engaged primarily and directly in farming
            or ranching in the United States, subject to the
            conditions specified in this section. To be eligible
            for such loans, applicants who are individuals, or, in
            the case of cooperatives, corporations, partnerships,
            joint operations, trusts, [and limited liability
            companies] limited liability companies, and such other
            legal entities, individuals holding a majority interest
            in such entity, must [(1)] (A) be citizens of the
            United States, [(2)] (B) for direct loans only, have
            either training or farming experience that the
            Secretary determines is sufficient to assure reasonable
            prospects of success in the proposed farming
            operations, taking into consideration all farming
            experience of the applicant, without regard to any
            lapse between farming experiences, [(3)] (C) be or will
            become owner-operators of not larger than family farms
            (or in the case of cooperatives, corporations,
            partnerships, joint operations, trusts, [and limited
            liability companies] limited liability companies, and
            such other legal entities in which a majority interest
            is held by individuals who are related by blood or
            marriage, as defined by the Secretary, such individuals
            must be or will become either owners or operators of
            not larger than a family farm and at least one such
            individual must be or will become an operator of not
            larger than a family farm or, in the case of holders of
            the entire interest who are related by blood or
            marriage and all of whom are or will become farm
            operators, the ownership interest of each such holder
            separately constitutes not larger than a family farm,
            even if their interests collectively constitute larger
            than a family farm, as defined by the Secretary), and
            [(4)] (D) be unable to obtain sufficient credit
            elsewhere to finance their actual needs at reasonable
            rates and terms, taking into consideration prevailing
            private and cooperative rates and terms in the
            community in or near which the applicant resides for
            loans for similar purposes and periods of time. In
            addition to the foregoing requirements of this section,
            in the case of corporations, partnerships, joint
            operations, trusts, [and limited liability companies]
            limited liability companies, and such other legal
            entities, the family farm requirement of clause [(3)]
            (C) of the preceding sentence shall apply as well to
            the farm or farms in which the entity has an ownership
            and operator interest and the requirement of clause
            [(4)] (D) of the preceding sentence shall apply as well
            to the entity in the case of cooperatives,
            corporations, partnerships, joint operations, trusts,
            [and limited liability companies] limited liability
            companies, and such other legal entities.
              (2) Special deeming rules.--
                      (A) Eligibility of certain operating-only
                    entities.--An entity that is or will become
                    only the operator of a family farm is deemed to
                    meet the owner-operator requirements of
                    paragraph (1) if the individuals that are the
                    owners of the family farm own more than 50
                    percent (or such other percentage as the
                    Secretary determines is appropriate) of the
                    entity.
                      (B) Eligibility of certain embedded
                    entities.--An entity that is an owner-operator
                    described in paragraph (1), or an operator
                    described in subparagraph (A) of this paragraph
                    that is owned, in whole or in part, by other
                    entities, is deemed to meet the direct
                    ownership requirement imposed under paragraph
                    (1) if at least 75 percent of the ownership
                    interests of each embedded entity of such
                    entity is owned directly or indirectly by the
                    individuals that own the family farm.
      (b) Direct Loans.--
              (1) In general.--Subject to paragraph (3), the
            Secretary may make a direct loan under this subtitle
            only to a farmer or rancher who has participated in the
            business operations of a farm or ranch for not less
            than 3 years or has other acceptable experience for a
            period of time, as determined by the Secretary, and--
                      (A) * * *

               *       *       *       *       *       *       *

    SEC. 304. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Eligibility.--
              (1) In general.--The Secretary may make or guarantee
            loans to farmers or ranchers in the United States, farm
            cooperatives, private domestic corporations,
            partnerships, joint operations, trusts, or limited
            liability companies, or such other legal entities as
            the Secretary deems appropriate, that are controlled by
            farmers or ranchers and engaged primarily and directly
            in agricultural production in the United States.
              (2) Requirements.--To be eligible for a loan under
            this section, applicants shall meet the requirements in
            [paragraphs (1) and (2) of section 302(a)] clauses (A)
            and (B) of section 302(a)(1).

               *       *       *       *       *       *       *

      (e) Limitations Applicable to Loan Guarantees.--The portion
    of a loan that the Secretary may guarantee under this section
    shall be [75 percent] 90 percent of the principal amount of the
    loan.

               *       *       *       *       *       *       *

      (h) Authorization of Appropriations.--For each of fiscal
    years 2008 through [2012] 2017, there are authorized to be
    appropriated to the Secretary such funds as are necessary to
    carry out this section.

               *       *       *       *       *       *       *

      Sec. 306. (a)(1) * * *
              (2) Water, waste disposal, and wastewater facility
            grants.--
                      (A) * * *
                      (B) Revolving funds for financing water and
                    wastewater projects.--
                              (i) * * *

               *       *       *       *       *       *       *

                              (vii) Authorization of
                            appropriations.--There are authorized
                            to be appropriated to carry out this
                            subparagraph [$30,000,000 for each of
                            fiscal years 2008 through 2012]
                            $15,000,000 for each of fiscal years
                            2013 through 2017.

               *       *       *       *       *       *       *

              (11) Rural business opportunity grants.--
                      (A) * * *

               *       *       *       *       *       *       *

                      (D) Authorization of appropriations.--There
                    are authorized to be appropriated to carry out
                    this paragraph [$15,000,000 for each of fiscal
                    years 2008 through 2012] $15,000,000 for each
                    of fiscal years 2013 through 2017.

               *       *       *       *       *       *       *

              (19) Community facilities grant program.--
                      (A) * * *

               *       *       *       *       *       *       *

                      [(C) Reservation of funds for child day care
                    facilities.--
                              [(i) In general.--For each fiscal
                            year, not less than 10 percent of the
                            funds made available to carry out this
                            paragraph shall be reserved for grants
                            to pay the Federal share of the cost of
                            developing and constructing day care
                            facilities for children in rural areas.
                              [(ii) Release.--Funds reserved under
                            clause (i) for a fiscal year shall be
                            reserved only until June 1 of the
                            fiscal year.]

               *       *       *       *       *       *       *

              [(22) Rural water and wastewater circuit rider
            program.--
                      [(A) In general.--The Secretary shall
                    establish a national rural water and wastewater
                    circuit rider program that is based on the
                    rural water circuit rider program of the
                    National Rural Water Association that (as of
                    the date of enactment of this paragraph)
                    receives funding from the Secretary, acting
                    through the Rural Utilities Service.
                      [(B) Relationship to existing program.--The
                    program established under subparagraph (A)
                    shall not affect the authority of the Secretary
                    to carry out the circuit rider program for
                    which funds are made available under the
                    heading ``rural community advancement program''
                    in title III of the Agriculture, Rural
                    Development, Food and Drug Administration, and
                    Related Agencies Appropriations Act, 2002 (115
                    Stat. 719).
                      [(C) Authorization of appropriations.--There
                    is authorized to be appropriated to carry out
                    this paragraph $25,000,000 for fiscal year 2008
                    and each fiscal year thereafter.]
              (22) Rural water and wastewater circuit rider
            program.--
                      (A) In general.--The Secretary shall continue
                    a national rural water and wastewater circuit
                    rider program that--
                              (i) is consistent with the activities
                            and results of the program conducted
                            before the date of enactment of this
                            paragraph, as determined by the
                            Secretary; and
                              (ii) receives funding from the
                            Secretary, acting through the Rural
                            Utilities Service.
                      (B) Authorization of appropriations.--There
                    is authorized to be appropriated to carry out
                    this paragraph $20,000,000 for fiscal year 2013
                    and each fiscal year thereafter.

               *       *       *       *       *       *       *

              (25) Tribal college and university essential
            community facilities.--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) Authorization of appropriations.--There
                    is authorized to be appropriated to carry out
                    this paragraph [$10,000,000 for each of fiscal
                    years 2008 through 2012] $5,000,000 for each of
                    fiscal years 2013 through 2017.

               *       *       *       *       *       *       *

    SEC. 306A. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT
                        PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (i) Funding.--
              (1) * * *
              (2) Authorization of appropriations.--In addition to
            funds made available under paragraph (1), there is
            authorized to be appropriated to carry out this section
            [$35,000,000 for each of fiscal years 2008 through
            2012] $27,000,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

    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) * * *

               *       *       *       *       *       *       *

      (d) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section [$10,000,000 for each
    of fiscal years 2008 through 2012] $5,000,000 for each of
    fiscal years 2013 through 2017.
      Sec. 307. (a) * * *

               *       *       *       *       *       *       *

      [(d) With respect to a farm ownership loan made after the
    date of the enactment of this subsection, unless appraised
    values of the rights to oil, gas, or other minerals are
    specifically included as part of the appraised value of
    collateral securing the loan, the rights to oil, gas, or other
    minerals located under the property shall not be considered
    part of the collateral securing the loan. Nothing in this
    subsection shall prevent the inclusion of, as part of the
    collateral securing the loan, any payment or other compensation
    the borrower may receive for damages to the surface of the
    collateral real estate resulting from the exploration for or
    recovery of minerals.]
      [(e)] (d) The Secretary may not--
              (1) * * *

               *       *       *       *       *       *       *

    SEC. 310B. ASSISTANCE FOR RURAL ENTITIES.

      (a) Loans to Private Business Enterprises.--
              (1) * * *
              (2) Loan purposes.--The Secretary may make and insure
            loans to public, private, or cooperative organizations
            organized for profit or nonprofit and private
            investment funds that invest primarily in cooperative
            organizations, to Indian tribes on Federal and State
            reservations or other federally recognized Indian
            tribal groups, or to individuals for the purposes of--
                      (A) improving, developing, or financing
                    business, industry, and employment including
                    working capital and improving the economic and
                    environmental climate in rural communities,
                    including pollution abatement and control;

               *       *       *       *       *       *       *

      (e) Rural Cooperative Development Grants.--
              (1) * * *

               *       *       *       *       *       *       *

              (12) Authorization of appropriations.--There are
            authorized to be appropriated to carry out this
            subsection [$50,000,000 for each of fiscal years 2008
            through 2012] $40,000,000 for each of fiscal years 2013
            through 2017.

               *       *       *       *       *       *       *

      (g) Business and Industry Direct and Guaranteed Loans.--
              (1) * * *

               *       *       *       *       *       *       *

              (7) Intangible assets.--In determining whether a
            cooperative organization is eligible for a guaranteed
            business and industry loan, the Secretary may consider
            the market value of a properly appraised brand name,
            patent, or trademark of the cooperative. In the
            discretion of the Secretary, if the Secretary
            determines that the action would not create or
            otherwise contribute to an unreasonable risk of default
            or loss to the Federal Government, the Secretary may
            take account receivables as security for the
            obligations entered into in connection with loans and a
            borrower may use account receivables as collateral to
            secure a loan made or guaranteed under this subsection.

               *       *       *       *       *       *       *

              (9) Locally or regionally produced agricultural food
            products.--
                      (A) * * *
                      (B) Loan and loan guarantee program.--
                              (i) * * *

               *       *       *       *       *       *       *

                              (v) Reservation of funds.--
                                      (I) In general.--For each of
                                    fiscal years 2008 through
                                    [2012] 2017, the Secretary
                                    shall reserve not less than 5
                                    percent and not more than 7
                                    percent of the funds made
                                    available to carry out this
                                    subsection to carry out this
                                    subparagraph.

               *       *       *       *       *       *       *

      Sec. 310D. (a) The Secretary is authorized to make and insure
    loans for any of the purposes referred to in section 303(a), or
    paragraphs (1) through (5) of section 304(a), to farmers and
    ranchers in the United States who (1) are citizens of the
    United States, (2) meet the requirements of paragraphs (2)
    through (4) of section 302, (3) are unable to obtain sufficient
    credit under section 302 to finance their actual needs, (4) are
    owners or operators of small or family farms (including new
    owners or operators), (5) are farmers or ranchers with a low
    income, and (6) demonstrate a need to maximize their income
    from farming or ranching operations. The Secretary is also
    authorized to make such loans to any farm cooperative or
    private domestic corporation or partnership, or such other
    legal entities as the Secretary deems appropriate, that is
    controlled by farmers and ranchers and engaged primarily and
    directly in farming or ranching in the United States if all of
    its members, stockholders, [or partners] partners, or owners,
    as applicable, are citizens of the United States and the entity
    and all such members, stockholders, [or partners] partners, or
    owners meet the requirements of paragraphs (2) through (6) of
    the preceding sentence.

               *       *       *       *       *       *       *

    SEC. 310E. DOWN PAYMENT LOAN PROGRAM.

      (a) * * *
      (b) Loan Terms.--
              (1) Principal.--Each loan made under this section
            shall be in an amount that does not exceed 45 percent
            of the least of--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) [$500,000] $667,000.

               *       *       *       *       *       *       *

              [(2) Interest rate.--The interest rate on any loan
            made by the Secretary under this section shall be 4
            percent.]

               *       *       *       *       *       *       *

    SEC. 310H. INTERMEDIARY RELENDING PROGRAM.

      (a) In General.--The Secretary shall make loans to the
    entities, for the purposes, and subject to the terms and
    conditions specified in the 1st, 2nd, and last sentences of
    section 623(a) of the Community Economic Development Act of
    1981 (42 U.S.C. 9812(a)).
      (b) Limitations on Authorization of Appropriations.--For
    loans under subsection (a), there are authorized to be
    appropriated to the Secretary not more than $10,000,000 for
    each of fiscal years 2013 through 2017.

                          Subtitle B--Operating Loans

    SEC. 311. PERSONS ELIGIBLE FOR LOANS.

      [(a) In General.--The]
      (a) In General.--
              (1) Eligibility requirements.--The Secretary may make
            and insure loans under this subtitle to farmers and
            ranchers in the United States, and to farm cooperatives
            and private domestic corporations, partnerships, joint
            operations, trusts, and limited liability companies,
            and such other legal entities as the Secretary deems
            appropriate, that are controlled by farmers and
            ranchers and engaged primarily and directly in farming
            or ranching in the United States, subject to the
            conditions specified in this section. To be eligible
            for such loans, applicants who are individuals, or, in
            the case of cooperatives, corporations, partnerships,
            joint operations, trusts, [and limited liability
            companies] limited liability companies, and such other
            legal entities, individuals holding a majority interest
            in such entity, must [(1)] (A) be citizens of the
            United States, [(2)] (B) for direct loans only, have
            either training or farming experience that the
            Secretary determines is sufficient to assure reasonable
            prospects of success in the proposed farming
            operations, taking into consideration all farming
            experience of the applicant, without regard to any
            lapse between farming experiences, [(3)] (C) be or will
            become operators of not larger than family farms (or in
            the case of cooperatives, corporations, partnerships,
            joint operations, trusts, [and limited liability
            companies] limited liability companies, and such other
            legal entities in which a majority interest is held by
            individuals who are related by blood or marriage, as
            defined by the Secretary, such individuals must be or
            will become either owners or operators of not larger
            than a family farm and at least one such individual
            must be or will become an operator of not larger than a
            family farm or, in the case of holders of the entire
            interest who are related by blood or marriage and all
            of whom are or will become farm operators, the
            ownership interest of each such holder separately
            constitutes not larger than a family farm, even if
            their interests collectively constitute larger than a
            family farm, as defined by the Secretary), and [(4)]
            (D) be unable to obtain sufficient credit elsewhere to
            finance their actual needs at reasonable rates and
            terms, taking into consideration prevailing private and
            cooperative rates and terms in the community in or near
            which the applicant resides for loans for similar
            purposes and periods of time. In addition to the
            foregoing requirements of this subsection, in the case
            of corporations, partnerships, joint operations,
            trusts, [and limited liability companies] limited
            liability companies, and such other legal entities, the
            family farm requirement of clause [(3)] (C) of the
            preceding sentence shall apply as well to the farm or
            farms in which the entity has an operator interest and
            the requirement of clause [(4)] (D) of the preceding
            sentence shall apply as well to the entity in the case
            of cooperatives, corporations, partnerships, joint
            operations, trusts, [and limited liability companies]
            limited liability companies, and such other legal
            entities.
              (2) Special deeming rule.--An entity that is an
            operator described in paragraph (1) that is owned, in
            whole or in part, by other entities, is deemed to meet
            the direct ownership requirement imposed under
            paragraph (1) if at least 75 percent of the ownership
            interests of each embedded entity of such entity is
            owned directly or indirectly by the individuals that
            own the family farm.
      (b)(1) Loans may also be made under this subtitle without
    regard to the requirements of clauses (2) and (3) of subsection
    (a) to youths [who are rural residents] to enable them to
    operate enterprises in connection with their participation in
    4-H Clubs, Future Farmers of America, and similar
    organizations.

               *       *       *       *       *       *       *

      (5) The Secretary may, on a case by case basis, waive the
    personal liability of a borrower for a loan made under this
    subsection if any default on the loan was due to circumstances
    beyond the control of the borrower.
      (c) Direct Loans.--
              (1) * * *
              [(2) Youth loans.--In this subsection, the term
            ``direct operating loan'' shall not include a loan made
            to a youth under subsection (b).]
              (2) Exceptions.--In this subsection, the term
            ``direct operating loan'' shall not include--
                      (A) a loan made to a youth under subsection
                    (b); or
                      (B) a microloan made to a young beginning
                    farmer or rancher or a military veteran farmer,
                    as defined by the Secretary.

               *       *       *       *       *       *       *

    SEC. 312. PURPOSES OF LOANS.

      (a) In General.--A direct loan (including a microloan, as
    defined by the Secretary) may be made under this subtitle only
    for--
              (1) * * *

               *       *       *       *       *       *       *

    SEC. 313. LIMITATIONS ON AMOUNT OF OPERATING LOANS.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Microloans.--
              (1) In general.--Subject to paragraph (2), the
            Secretary may establish a program to make or guarantee
            microloans.
              (2) Limitation.--The Secretary shall not make or
            guarantee a microloan under this subsection that
            exceeds $35,000 or that would cause the total principal
            indebtedness outstanding at any 1 time for microloans
            made under this chapter to any 1 borrower to exceed
            $70,000.
              (3) Applications.--To the maximum extent practicable,
            the Secretary shall limit the administrative burdens
            and streamline the application and approval process for
            microloans under this subsection.
              (4) Cooperative lending projects.--
                      (A) In general.--Subject to subparagraph (B),
                    the Secretary may contract with community-based
                    and nongovernmental organizations, State
                    entities, or other intermediaries, as the
                    Secretary determines appropriate--
                              (i) to make or guarantee a microloan
                            under this subsection; and
                              (ii) to provide business, financial,
                            marketing, and credit management
                            services to borrowers.
                      (B) Requirements.--Before contracting with an
                    entity described in subparagraph (A), the
                    Secretary--
                              (i) shall review and approve--
                                      (I) the loan loss reserve
                                    fund for microloans established
                                    by the entity; and
                                      (II) the underwriting
                                    standards for microloans of the
                                    entity; and
                              (ii) establish such other
                            requirements for contracting with the
                            entity as the Secretary determines
                            necessary.

               *       *       *       *       *       *       *

      Sec. 316. (a)(1) * * *
      (2) The interest rate on a microloan to a beginning farmer or
    rancher or military veteran farmer or any loan (other than a
    guaranteed loan) to a low income, limited resource borrower
    under this subtitle shall not be--
              (A) * * *

               *       *       *       *       *       *       *

                          Subtitle C--Emergency Loans

      Sec. 321. (a) The Secretary shall make and insure loans under
    this subtitle only to the extent and in such amounts as
    provided in advance in appropriation Acts to (1) established
    farmers or ranchers (including equine farmers or ranchers), or
    persons engaged in aquaculture, who are citizens of the United
    States and who are [owner-operators (in the case of loans for a
    purpose under subtitle A) or operators (in the case of loans
    for a purpose under subtitle B)] (in the case of farm ownership
    loans in accordance with subtitle A) owner-operators or
    operators, or (in the case of loans for a purpose under
    subtitle B) operators of not larger than family farms, and (2)
    farm cooperatives, private domestic corporations, partnerships,
    joint operations, trusts, or limited liability companies, or
    such other legal entities as the Secretary deems appropriate
    (A) that are engaged primarily in farming or ranching
    (including equine farming or ranching) or aquaculture, and (B)
    in which a majority interest is held by individuals who are
    citizens of the United States and who are [owner-operators (in
    the case of loans for a purpose under subtitle A) or operators
    (in the case of loans for a purpose under subtitle B)] (in the
    case of farm ownership loans in accordance with subtitle A)
    owner-operators or operators, or (in the case of loans for a
    purpose under subtitle B) operators of not larger than family
    farms (or in the case of such cooperatives, corporations,
    partnerships, joint operations, trusts, or limited liability
    companies, or other legal entities in which a majority interest
    is held by individuals who are related by blood or marriage, as
    defined by the Secretary, such individuals must be either
    owners or operators of not larger than a family farm and at
    least one such individual must be an operator of not larger
    than a family farm), where the Secretary finds that the
    applicants' farming, ranching, or aquaculture operations have
    been substantially affected by 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), a natural
    disaster in the United States, or a major disaster or emergency
    designated by the President under the Robert T. Stafford
    Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et
    seq.): Provided, That they have experience and resources
    necessary to assure a reasonable prospect for successful
    operation with the assistance of such loan and are not able to
    obtain sufficient credit elsewhere. In addition to the
    foregoing requirements of this subsection, in the case of farm
    cooperatives, private domestic corporations, partnerships,
    joint operations, trusts, [and limited liability companies,]
    limited liability companies, and such other legal entities the
    family farm requirement of the preceding sentence shall apply
    as well to all farms in which the entity has an [ownership and
    operator] ownership or operator interest (in the case of loans
    for a purpose under subtitle A) or an operator interest (in the
    case of loans for a purpose under subtitle B). The Secretary
    shall accept applications from, and make or insure loans
    pursuant to the requirements of this subtitle to, applicants,
    otherwise eligible under this subtitle, that conduct farming,
    ranching, or aquaculture operations in any county contiguous to
    a county where the Secretary has found that farming, ranching,
    or aquaculture operations have been substantially affected by 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),
    a natural disaster in the United States, or a major disaster or
    emergency designated by the President under the Robert T.
    Stafford Disaster Relief and Emergency Assistance Act (42
    U.S.C. 5121 et seq.). The Secretary shall accept applications
    for assistance under this subtitle from persons affected by
    such a quarantine or natural disaster at any time during the
    eight-month period beginning (A) on the date on which the
    Secretary determines that farming, ranching, or aquaculture
    operations have been substantially affected by such quarantine
    or natural disaster or (B) on the date the President makes the
    major disaster or emergency designation with respect to such
    natural disaster, as the case may be. An entity that is an
    owner-operator or operator described in this subsection is
    deemed to meet the direct ownership requirement imposed under
    this subsection if at least 75 percent of the ownership
    interests of each embedded entity of such entity is owned
    directly or indirectly by the individuals that own the family
    farm.

               *       *       *       *       *       *       *

    Subtitle D--Administrative Provisions

               *       *       *       *       *       *       *

      Sec. 333A. (a) * * *

               *       *       *       *       *       *       *

      (h) Simplified Application Forms.--Except as provided in
    subsection (g)(2) of this section, the Secretary shall, to the
    maximum extent practicable, develop a simplified application
    process, including a single page application where possible,
    for grants and relending authorized under sections 306, 306C,
    306D, 306E, 310B(b), 310B(c), 310B(e), 310B(f), 310H, 379B, and
    379E.

    SEC. 333B. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS
                        PILOT PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (h) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $5,000,000 for each
    of fiscal years 2008 through [2012] 2017.

               *       *       *       *       *       *       *

      Sec. 343. (a) As used in this title:
              (1) * * *

               *       *       *       *       *       *       *

              (11) The term ``qualified beginning farmer or
            rancher'' means an applicant, regardless of whether the
            applicant is participating in a program under section
            310E--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) in the case of a cooperative,
                    corporation, partnership, or joint operation,
                    or such other legal entity as the Secretary
                    deems appropriate, who has members,
                    stockholders, partners, [or joint operators]
                    joint operators, or owners who are all related
                    to one another by blood or marriage;
                      (D)(i) in the case of an owner and operator
                    of a farm or ranch, who--
                              (I) * * *
                              (II)(aa) in the case of a loan made
                            to a cooperative, corporation,
                            partnership, or joint operation, or
                            such other legal entity, has members,
                            stockholders, partners, [or joint
                            operators] joint operators, or owners,
                            materially and substantially
                            participate in the operation of the
                            farm or ranch; and

               *       *       *       *       *       *       *

                      (ii) in the case of an applicant seeking to
                    own and operate a farm or ranch, who--
                              (I) * * *
                              (II)(aa) in the case of a loan made
                            to a cooperative, corporation,
                            partnership, or joint operation, or
                            such other legal entity, will have
                            members, stockholders, partners, [or
                            joint operators] joint operators, or
                            owners, materially and substantially
                            participate in the operation of the
                            farm or ranch; and

               *       *       *       *       *       *       *

                      (F) who does not own land or who, directly or
                    through interests in family farm corporations,
                    owns land, the aggregate acreage of which does
                    not exceed 30 percent of the [median acreage]
                    average acreage of the farms or ranches, as the
                    case may be, in the county in which the farm or
                    ranch operations of the applicant are located,
                    as reported in the most recent census of
                    agriculture, except that this subparagraph
                    shall not apply to a loan made or guaranteed
                    under subtitle B; and

               *       *       *       *       *       *       *

      Sec. 346. (a) * * *
      (b) Authorization for Loans.--
              (1) In general.--The Secretary may make or guarantee
            loans under subtitles A and B from the Agricultural
            Credit Insurance Fund provided for in section 309 for
            not more than $4,226,000,000 for each of fiscal years
            2008 through [2012] 2017, of which, for each fiscal
            year--
                      (A) * * *

               *       *       *       *       *       *       *

              (2) Beginning farmers and ranchers.--
                      (A) Direct loans.--
                              (i) Farm ownership loans.--
                                      (I) * * *

               *       *       *       *       *       *       *

                                      (III) Priority.--In order to
                                    maximize the number of
                                    borrowers served under this
                                    clause, the Secretary--
                                              (aa) shall give
                                            priority to applicants
                                            who apply under the
                                            down payment loan
                                            program under section
                                            310E or joint financing
                                            arrangements under
                                            section 307(a)(3)(D);
                                            and
                                              (bb) may offer other
                                            financing options under
                                            this subtitle to
                                            applicants only if the
                                            Secretary determines
                                            that down payment or
                                            other participation
                                            loan options are not a
                                            viable approach for the
                                            applicants.
                              (ii) Operating loans.--Of the amounts
                            made available under paragraph (1) for
                            direct operating loans, the Secretary
                            shall reserve for qualified beginning
                            farmers and ranchers--
                                      (I) * * *

               *       *       *       *       *       *       *

                                      (III) for each of fiscal
                                    years 2008 through [2012] 2017,
                                    an amount that is not less than
                                    50 percent [of the total
                                    amount].

               *       *       *       *       *       *       *

    SEC. 359. BORROWER TRAINING.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Eligibility for Loans.--
              (1) * * *
              (2) Loan conditions.--The need of a borrower who
            satisfies the criteria set out in [section 302(a)(2) or
            311(a)(2)] section 302(a)(1)(B) or 311(a)(1)(B) for
            management assistance under this section shall not be
            cause for denial of eligibility of the borrower for a
            direct loan under this title.

               *       *       *       *       *       *       *

    SEC. 375. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

      (a) * * *

               *       *       *       *       *       *       *

      (e) Revolving Fund.--
              (1) * * *

               *       *       *       *       *       *       *

              (6) Funding.--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) Authorization of appropriations.--There
                    is authorized to be appropriated to the
                    Secretary to carry out this section $10,000,000
                    for each of fiscal years 2008 through [2012]
                    2017.

               *       *       *       *       *       *       *

    SEC. 378. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

      (a) * * *

               *       *       *       *       *       *       *

      (h) Termination.--The authority provided under this section
    shall terminate on September 30, [2012] 2017.

               *       *       *       *       *       *       *

    SEC. 379B. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

      (a) * * *

               *       *       *       *       *       *       *

      [(d) Authorization of Appropriations.--There are authorized
    to be appropriated such sums as are necessary to carry out this
    section for each of fiscal years 2008 through 2012.]
      (d) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $1,000,000 for each
    of fiscal years 2013 through 2017.

               *       *       *       *       *       *       *

    SEC. 379E. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (d) Funding.--
              (1) * * *
              (2) Discretionary funding.--In addition to amounts
            made available under paragraph (1), there are
            authorized to be appropriated to carry out this section
            [$40,000,000 for each of fiscal years 2009 through
            2012] $20,000,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

    Subtitle F--Delta Regional Authority

               *       *       *       *       *       *       *

    SEC. 382M. AUTHORIZATION OF APPROPRIATIONS.

      (a) In General.--There is authorized to be appropriated to
    the Authority to carry out this subtitle [$30,000,000 for each
    of fiscal years 2008 through 2012] $12,000,000 for each of
    fiscal years 2013 through 2017, to remain available until
    expended.

               *       *       *       *       *       *       *

    SEC. 382N. TERMINATION OF AUTHORITY.

      This subtitle and the authority provided under this subtitle
    expire on October 1, [2012] 2017.

    Subtitle G--Northern Great Plains Regional Authority

               *       *       *       *       *       *       *

    SEC. 383N. AUTHORIZATION OF APPROPRIATIONS.

      (a) In General.--There is authorized to be appropriated to
    the Authority to carry out this subtitle [$30,000,000 for each
    of fiscal years 2008 through 2012] $2,000,000 for each of
    fiscal years 2013 through 2017, to remain available until
    expended.

               *       *       *       *       *       *       *

    SEC. 383O. TERMINATION OF AUTHORITY.

      The authority provided by this subtitle terminates effective
    October 1, [2012] 2017.

    Subtitle H--Rural Business Investment Program

               *       *       *       *       *       *       *

    SEC. 384S. AUTHORIZATION OF APPROPRIATIONS.

      There is authorized to be appropriated to carry out this
    subtitle [$50,000,000 for the period of fiscal years 2008
    through 2012] $20,000,000 for each of fiscal years 2013 through
    2017.

               *       *       *       *       *       *       *

                                  ----------

                        AGRICULTURAL CREDIT ACT OF 1987

               *       *       *       *       *       *       *
                       TITLE V--STATE MEDIATION PROGRAMS

    Subtitle A--Matching Grants for State Mediation Programs

               *       *       *       *       *       *       *

    SEC. 506. AUTHORIZATION OF APPROPRIATIONS.

      There are authorized to be appropriated to carry out this
    subtitle $7,500,000 for each of the fiscal years 1988 through
    [2015] 2017.

               *       *       *       *       *       *       *

                                  ----------

                               PUBLIC LAW 91-229

    SECTION 1. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.

      (a) * * *
      (b) Highly Fractionated Land.--
              (1) In general.--Subject to paragraph (2), the
            Secretary of Agriculture may make and insure loans in
            accordance with section 309 of the Consolidated Farm
            and Rural Development Act (7 U.S.C. 1929) to eligible
            purchasers of highly fractionated land [pursuant to
            section 205(c) of the Indian Land Consolidation Act (25
            U.S.C. 2204(c))] or to intermediaries in order to
            establish revolving loan funds for the purchase of
            highly fractionated land.

               *       *       *       *       *       *       *

                                  ----------

         SECTION 333 OF THE CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT

      Sec. 333. In connection with loans made or insured under this
    title, the Secretary shall [require]--
              (1) require the applicant (A) to certify in writing,
            and the Secretary shall determine, that he is unable to
            obtain sufficient credit elsewhere to finance his
            actual needs at reasonable rates and terms, taking into
            consideration prevailing private and cooperative rates
            and terms in the community in or near which the
            applicant resides for loans for similar purposes and
            periods of time, and (B) to furnish an appropriate
            written financial statement;
              (2) except with respect to a loan under section 306,
            310B, or 314, require--
                      (A) * * *

               *       *       *       *       *       *       *

              (3) except for guaranteed loans, require an agreement
            by the borrower that if at any time it shall appear to
            the Secretary that the borrower may be able to obtain a
            loan from a production credit association, a Federal
            land bank, or other responsible cooperative or private
            credit source (or, in the case of a borrower under
            section 310D of this title, the borrower may be able to
            obtain a loan under section 302 of this title), at
            reasonable rates and terms for loans for similar
            purposes and periods of time, the borrower will, upon
            request by the Secretary, apply for and accept such
            loan in sufficient amount to repay the Secretary or the
            insured lender, or both, and to pay for any stock
            necessary to be purchased in a cooperative lending
            agency in connection with such loan;
              (4) require such provision for supervision of the
            borrower's operations as the Secretary shall deem
            necessary to achieve the objectives of the loan and
            protect the interests of the United States; [and]
              (5) require the application of a person who is a
            veteran of any war, as defined in section 101(12) of
            title 38, United States Code, for a loan under subtitle
            A or B to be given preference over a similar
            application from a person who is not a veteran of any
            war, if the applications are on file in a county or
            area office at the same time[.]; and
              (6) with respect to water and waste disposal direct
            and guaranteed loans provided under section 306,
            encourage, to the maximum extent practicable, private
            or cooperative lenders to finance rural water and waste
            disposal facilities by--
                      (A) maximizing the use of loan guarantees to
                    finance eligible projects in rural communities
                    where the population exceeds 5,500;
                      (B) maximizing the use of direct loans to
                    finance eligible projects in rural communities
                    where the impact on rate payers will be
                    material when compared to financing with a loan
                    guarantee;
                      (C) establishing and applying a materiality
                    standard when determining the difference in
                    impact on rate payers between a direct loan and
                    a loan guarantee;
                      (D) in the case of projects that require
                    interim financing in excess of $500,000,
                    requiring that such projects initially seek
                    such financing from private or cooperative
                    lenders; and
                      (E) determining if an existing direct loan
                    borrower can refinance with a private or
                    cooperative lender, including with a loan
                    guarantee, prior to providing a new direct
                    loan.
                                  ----------

                       RURAL ELECTRIFICATION ACT OF 1936

    TITLE I

               *       *       *       *       *       *       *

    SEC. 2. GENERAL AUTHORITY OF THE SECRETARY OF AGRICULTURE.

      (a) Loans.--The Secretary of Agriculture (referred to in this
    Act as the ``Secretary'') is authorized and empowered to make
    loans in the several States and Territories of the United
    States for rural electrification and for the purpose of
    furnishing and improving electric and telephone service in
    rural areas, as provided in this Act, and for the purpose of
    assisting electric borrowers to implement demand side
    management, energy efficiency (including relending for this
    purpose as provided in section 4) and conservation programs,
    and on-grid and off-grid renewable energy systems.

               *       *       *       *       *       *       *

      Sec. 4. (a) The Secretary is authorized and empowered, from
    the sums hereinbefore authorized, to make loans for rural
    electrification to persons, corporations, States, Territories,
    and subdivisions and agencies thereof, municipalities, peoples'
    utility districts and cooperative, nonprofit, or limited-
    dividend associations organized under the laws of any State or
    Territory of the United States, for the purpose of financing
    the construction and operation of generating plants, electric
    transmission and distribution lines or systems for the
    furnishing and improving of electric service to persons in
    rural areas, including by assisting electric borrowers to
    implement demand side management, energy efficiency (including
    relending to ultimate consumers for this purpose by borrowers
    enumerated in the proviso in this section) and conservation
    programs, and on-grid and off-grid renewable energy systems,
    and loans, from funds available under section 3, to cooperative
    associations and municipalities for the purpose of enabling
    said cooperative associations, and municipalities to the extent
    that such indebtedness was incurred with respect to electric
    transmission and distribution lines or systems or portions
    thereof serving persons in rural areas, to discharge or
    refinance long-term debts owned by them to the Tennessee Valley
    Authority on account of loans made or credit extended under the
    terms of the Tennessee Valley Authority Act of 1933, as
    amended: Provided, That the Secretary, in making such loans,
    shall give preference to States, Territories, and subdivisions
    and agencies thereof, municipalities, peoples' utility
    districts, and cooperative, nonprofit, or limited-dividend
    associations, the projects of which comply with the
    requirements of this Act.

               *       *       *       *       *       *       *

    SEC. 5. FEES FOR CERTAIN LOAN GUARANTEES.

      (a) In General.--For electrification baseload generation loan
    guarantees, the Secretary shall, at the request of the
    borrower, charge an upfront fee to cover the costs of the loan
    guarantee.
      (b) Fee.--The fee described in subsection (a) for a loan
    guarantee shall be equal to the costs of the loan guarantee
    (within the meaning of section 502(5)(C) of the Federal Credit
    Reform Act of 1990 (2 U.S.C. 661a(5)(C))).
      (c) Limitation.--Funds received from a borrower to pay the
    fee described in this section shall not be derived from a loan
    or other debt obligation that is made or guaranteed by the
    Federal Government.

               *       *       *       *       *       *       *

    TITLE III

               *       *       *       *       *       *       *

    SEC. 313. CUSHION OF CREDIT PAYMENTS PROGRAM.

      (a) * * *
      (b) Uses of Cushion of Credit Payments.--
              (1) * * *
              (2) Rural economic development subaccount.--
                      (A) * * *
                      (B) Grants.--The Secretary (acting through
                    the Rural Utilities Service) is authorized,
                    from the interest differential sums credited
                    this subaccount and from any other funds made
                    available thereto, to provide grants or zero
                    interest loans to borrowers under this Act for
                    the purpose of promoting energy efficiency
                    (including relending to ultimate consumers for
                    this purpose), rural economic development and
                    job creation projects, including funding for
                    project feasibility studies, start-up costs,
                    incubator projects, and other reasonable
                    expenses for the purpose of fostering rural
                    development.

               *       *       *       *       *       *       *

    SEC. 313A. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR
                        TELEPHONE PURPOSES.

      (a) * * *

               *       *       *       *       *       *       *

      (f) Termination.--The authority provided under this section
    shall terminate on September 30, [2012] 2017.

               *       *       *       *       *       *       *

    SEC. 315. EXPANSION OF 911 ACCESS.

      (a) * * *

               *       *       *       *       *       *       *

      (d) Authorization of Appropriations.--The Secretary shall use
    to make loans under this section any funds otherwise made
    available for telephone loans for each of fiscal years 2008
    through [2012] 2017.

               *       *       *       *       *       *       *

                        TITLE VI--RURAL BROADBAND ACCESS

    SEC. 601. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL
                        AREAS.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Loans and Loan Guarantees.--
              (1) * * *
              [(2) Priority.--In making or guaranteeing loans under
            paragraph (1), the Secretary shall give the highest
            priority to applicants that offer to provide broadband
            service to the greatest proportion of households that,
            prior to the provision of the broadband service, had no
            incumbent service provider.]
              (2) Priorities.--In making or guaranteeing loans
            under paragraph (1), the Secretary shall give--
                      (A) the highest priority to applicants that
                    offer to provide broadband service to the
                    greatest proportion of households that, prior
                    to the provision of the broadband service, had
                    no incumbent service provider; and
                      (B) priority to applicants that offer in
                    their applications to provide broadband service
                    not predominantly for business service, but
                    where at least 25 percent of customers in the
                    proposed service territory are commercial
                    interests.
      (d) Eligibility.--
              (1) * * *

               *       *       *       *       *       *       *

              (5) Notice requirement.--The Secretary shall publish
            a notice of each application for a loan or loan
            guarantee under this section describing the
            application, including--
                      (A) * * *
                      (B) each area proposed to be served by the
                    applicant; [and]
                      (C) the estimated number of households
                    without terrestrial-based broadband service in
                    those areas[.];
                      (D) the amount and type of support requested;
                    and
                      (E) a list of the census block groups or
                    tracts proposed to be so served.

               *       *       *       *       *       *       *

              (8) Additional process.--The Secretary shall
            establish a process under which an incumbent service
            provider which, as of the date of the publication of
            notice under paragraph (5) with respect to an
            application submitted by the provider, is providing
            broadband service to a remote rural area, may (but
            shall not be required to) submit to the Secretary, not
            less than 15 and not more than 30 days after that date,
            information regarding the broadband services that the
            provider offers in the proposed service territory, so
            that the Secretary may assess whether the application
            meets the requirements of this section with respect to
            eligible projects.
      (e) Broadband Service.--
              (1) * * *

               *       *       *       *       *       *       *

              (3) Requirement.--In considering the technology needs
            of customers in a proposed service territory, the
            Secretary shall take into consideration the upgrade or
            replacement cost for the construction or acquisition of
            facilities and equipment in the territory.

               *       *       *       *       *       *       *

      (k) Funding.--
              (1) Authorization of appropriations.--There is
            authorized to be appropriated to the Secretary to carry
            out this section $25,000,000 for each of fiscal years
            2008 through [2012] 2017, to remain available until
            expended.

               *       *       *       *       *       *       *

      (l) Termination of Authority.--No loan or loan guarantee may
    be made under this section after September 30, [2012] 2017.

               *       *       *       *       *       *       *

                                  ----------

                               PUBLIC LAW 102-551

    SECTION 1. IMPROVEMENT OF HEALTH CARE SERVICES AND EDUCATIONAL SERVICES
                        THROUGH TELECOMMUNICATIONS.

      (a) * * *
      (b) Extension of Chapter 1.--Notwithstanding any other
    provision of law, chapter 1 of subtitle D of title XXIII of the
    Food, Agriculture, Conservation and Trade Act of 1990 (7 U.S.C.
    950aaa et seq.), including the amendments made by this section,
    shall be effective until September 30, [2012] 2017.

               *       *       *       *       *       *       *

                                  ----------

                    AGRICULTURAL RISK PROTECTION ACT OF 2000

               *       *       *       *       *       *       *
    TITLE II--AGRICULTURAL ASSISTANCE

               *       *       *       *       *       *       *

                              Subtitle C--Research

    [SEC. 221. CARBON CYCLE RESEARCH.

      [(a) In General.--To the extent funds are made available for
    this purpose, the Secretary shall provide a grant to the
    Consortium for Agricultural Soils Mitigation of Greenhouse
    Gases, acting through Kansas State University, to develop,
    analyze, and implement, through the land grant universities
    described in subsection (b), carbon cycle research at the
    national, regional, and local levels.
      [(b) Land Grant Universities.--The land grant universities
    referred to in subsection (a) are the following:
              [(1) Colorado State University.
              [(2) Iowa State University.
              [(3) Kansas State University.
              [(4) Michigan State University.
              [(5) Montana State University.
              [(6) Purdue University.
              [(7) Ohio State University.
              [(8) Texas A&M University.
              [(9) University of Nebraska.
      [(c) Use.--Land grant universities described in subsection
    (b) shall use funds made available under this section--
              [(1) to conduct research to improve the scientific
            basis of using land management practices to increase
            soil carbon sequestration, including research on the
            use of new technologies to increase carbon cycle
            effectiveness, such as biotechnology and
            nanotechnology;
              [(2) to enter into partnerships to identify, develop,
            and evaluate agricultural best practices, including
            partnerships between--
                      [(A) Federal, State, or private entities; and
                      [(B) the Department of Agriculture;
              [(3) to develop necessary computer models to predict
            and assess the carbon cycle;
              [(4) to estimate and develop mechanisms to measure
            carbon levels made available as a result of--
                      [(A) voluntary Federal conservation programs;
                      [(B) private and Federal forests; and
                      [(C) other land uses;
              [(5) to develop outreach programs, in coordination
            with Extension Services, to share information on carbon
            cycle and agricultural best practices that is useful to
            agricultural producers; and
              [(6) to collaborate with the Great Plains Regional
            Earth Science Application Center to develop a space-
            based carbon cycle remote sensing technology program
            to--
                      [(A) provide, on a near-continual basis, a
                    real-time and comprehensive view of vegetation
                    conditions;
                      [(B) assess and model agricultural carbon
                    sequestration; and
                      [(C) develop commercial products.
      [(d) Cooperative Research.--
              [(1) In general.--Subject to the availability of
            appropriations, the Secretary, in cooperation with
            departments and agencies participating in the U.S.
            Global Change Research Program (which may use any of
            their statutory authorities) and with eligible
            entities, may carry out research to promote
            understanding of--
                      [(A) the flux of carbon in soils and plants
                    (including trees); and
                      [(B) the exchange of other greenhouse gases
                    from agriculture.
              [(2) Eligible entities.--Research under this
            subsection may be carried out through the competitive
            awarding of grants and cooperative agreements to
            colleges and universities (as defined in section 1404
            of the National Agricultural Research, Extension, and
            Teaching Policy Act of 1977 (7 U.S.C. 1303)).
              [(3) Cooperative research purposes.--Research
            conducted under this subsection shall encourage
            collaboration among scientists with expertise in the
            areas of soil science, agronomy, agricultural
            economics, forestry, and other agricultural sciences to
            focus on--
                      [(A) developing data addressing carbon losses
                    and gains in soils and plants (including trees)
                    and the exchange of methane and nitrous oxide
                    from agriculture;
                      [(B) understanding how agricultural and
                    forestry practices affect the sequestration of
                    carbon in soils and plants (including trees)
                    and the exchange of other greenhouse gases,
                    including the effects of new technologies such
                    as biotechnology and nanotechnology;
                      [(C) developing cost-effective means of
                    measuring and monitoring changes in carbon
                    pools in soils and plants (including trees),
                    including computer models;
                      [(D) evaluating the linkage between federal
                    conservation programs and carbon sequestration;
                      [(E) developing methods, including remote
                    sensing, to measure the exchange of carbon and
                    other greenhouse gases sequestered, and to
                    evaluate leakage, performance, and permanence
                    issues; and
                      [(F) assessing the applicability of the
                    results of research conducted under this
                    subsection for developing methods to account
                    for the impact of agricultural activities
                    (including forestry) on the exchange of
                    greenhouse gases.
              [(4) Authorization of appropriation.--There are
            authorized to be appropriated such sums as are
            necessary to carry out this subsection for each of
            fiscal years 2002 through 2007.
      [(e) Extension Projects.--
              [(1) In general.--The Secretary, in cooperation with
            departments and agencies participating in the U.S.
            Global Change Research Program (which may use any of
            their statutory authorities), and local extension
            agents, experts from institutions of higher education
            that offer a curriculum in agricultural and biological
            sciences, and other local agricultural or conservation
            organizations, may implement extension projects
            (including on-farm projects with direct involvement of
            agricultural producers) that combine measurement tools
            and modeling techniques into integrated packages to
            monitor the carbon sequestering benefits of
            conservation practices and the exchange of greenhouse
            gas emissions from agriculture which demonstrate the
            feasibility of methods of measuring and monitoring--
                      [(A) changes in carbon content and other
                    carbon pools in soils and plants (including
                    trees); and
                      [(B) the exchange of other greenhouse gases.
              [(2) Extension project results.--The Secretary may
            disseminate to farmers, ranchers, private forest
            landowners, and appropriate State agencies in each
            State information concerning--
                      [(A) the results of projects under this
                    subsection; and
                      [(B) the manner in which the methods used in
                    the projects might be applicable to the
                    operations of the farmers, ranchers, private
                    forest landowners, and State agencies.
              [(3) Authorization of appropriations.--There are
            authorized to be appropriated such sums as are
            necessary to carry out this subsection for each of
            fiscal years 2002 through 2007.
      [(f) Administrative Costs.--Not more than 3 percent of the
    funds made available for this section may be used by the
    Secretary to pay administrative costs incurred in carrying out
    this section.
      [(g) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $15,000,000 for each
    of fiscal years 2007 through 2012.]

               *       *       *       *       *       *       *

                       Subtitle D--Agricultural Marketing

    SEC. 231. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANTS.

      (a) * * *
      (b) Grant Program.--
              (1) * * *

               *       *       *       *       *       *       *

              (7) Funding.--
                      (A) Mandatory funding.--On October 1, [2008]
                    2012, of the funds of the Commodity Credit
                    Corporation, the Secretary shall make available
                    to carry out this subsection [$15,000,000]
                    $50,000,000, to remain available until
                    expended.
                      (B) Discretionary funding.--There is
                    authorized to be appropriated to carry out this
                    subsection $40,000,000 for each of fiscal years
                    2008 through [2012] 2017.

               *       *       *       *       *       *       *

                                  ----------

     NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING POLICY ACT OF
                                      1977

      TITLE XIV--NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING
    POLICY ACT OF 1977

               *       *       *       *       *       *       *

    Subtitle A--Findings, Purposes, and Definitions

               *       *       *       *       *       *       *

                                  DEFINITIONS

      Sec. 1404. When used in this title:
              (1) * * *

               *       *       *       *       *       *       *

              (10) Hispanic-serving agricultural colleges and
            universities.--
                      (A) In general.--The term ``Hispanic-serving
                    agricultural colleges and universities'' means
                    colleges or universities [that]--
                              (i) that qualify as Hispanic-serving
                            institutions; [and]
                              (ii) that offer associate, bachelors,
                            or other accredited degree programs in
                            agriculture-related fields[.]; and
                              (iii) with respect to which the
                            Secretary has not received a statement
                            of the declaration of the intent of a
                            college or university to not be
                            considered a Hispanic-serving
                            agricultural college or university.

               *       *       *       *       *       *       *

        Subtitle B--Coordination and Planning of Agricultural Research,
    Extension, and Teaching

               *       *       *       *       *       *       *

    SEC. 1408. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND
                        ECONOMICS ADVISORY BOARD.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Duties.--The Advisory Board shall--
              (1) * * *

               *       *       *       *       *       *       *

              (3) review and make recommendations to the Under
            Secretary of Agriculture for Research, Education, and
            Economics on the research, extension, education, and
            economics portion of the draft strategic plan required
            under section 306 of title 5, United States Code; [and]
              (4) review the mechanisms of the Department of
            Agriculture for technology assessment (which should be
            conducted by qualified professionals) for the purposes
            of--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) the development of mechanisms for the
                    assessment of emerging public and private
                    agricultural research and technology transfer
                    initiatives[.]; and
              (5) consult with industry groups on agricultural
            research, extension, education, and economics, and make
            recommendations to the Secretary based on that
            consultation.

               *       *       *       *       *       *       *

      (h) Termination.--The Advisory Board shall remain in
    existence until September 30, [2012] 2017.

    SEC. 1408A. SPECIALTY CROP COMMITTEE.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Annual Committee Report.--Not later than 180 days after
    the establishment of the specialty crops committee, and
    annually thereafter, the specialty crops committee shall submit
    to the Advisory Board a report containing the findings of its
    study under subsection (a). The specialty crops committee shall
    include in each report recommendations regarding the following:
              (1) [Measures] Programs designed to improve the
            efficiency, productivity, and profitability of
            specialty crop production in the United States.
              [(2) Measures designed to improve competitiveness in
            research, extension, and economics programs affecting
            the specialty crop industry.]
              [(3) Programs that would] (2) Research, extension,
            and teaching programs designed to improve
            competitiveness in the specialty crop industry,
            including programs that would--
                      (A) * * *

               *       *       *       *       *       *       *

                      (D) develop new products and new uses of
                    specialty crops including improving the quality
                    and taste of processed specialty crops;

               *       *       *       *       *       *       *

                      (G) improve the remote sensing and the
                    mechanization of production practices; and

               *       *       *       *       *       *       *

              [(4)] (3) Analyses of changes in macroeconomic
            conditions, technologies, and policies on specialty
            crop production and consumption, with particular focus
            on the effect of those changes on the financial
            stability of producers.
              [(5)] (4) Development of data that provide applied
            information useful to specialty crop growers, their
            associations, and other interested beneficiaries in
            evaluating that industry from a regional and national
            perspective.

               *       *       *       *       *       *       *

    Subtitle C--Agricultural Research and Education Grants and Fellowships

               *       *       *       *       *       *       *

    SEC. 1415B. VETERINARY SERVICES GRANT PROGRAM.

      (a) Definitions.--In this section:
              (1) Qualified entity.--The term ``qualified entity''
            means--
                      (A) a for-profit or nonprofit entity located
                    in the United States that, or an individual
                    who, operates a veterinary clinic providing
                    veterinary services--
                              (i) in a rural area, as defined in
                            section 343(a) of the Consolidated Farm
                            and Rural Development Act (7 U.S.C.
                            1991(a)); and
                              (ii) in a veterinarian shortage
                            situation;
                      (B) a State, national, allied, or regional
                    veterinary organization or specialty board
                    recognized by the American Veterinary Medical
                    Association;
                      (C) a college or school of veterinary
                    medicine accredited by the American Veterinary
                    Medical Association;
                      (D) a university research foundation or
                    veterinary medical foundation;
                      (E) a department of veterinary science or
                    department of comparative medicine accredited
                    by the Department of Education;
                      (F) a State agricultural experiment station;
                    or
                      (G) a State, local, or tribal government
                    agency.
              (2) Veterinarian shortage situation.--The term
            ``veterinarian shortage situation'' means a
            veterinarian shortage situation as determined by the
            Secretary under section 1415A.
      (b) Establishment.--
              (1) Competitive grants.--The Secretary shall carry
            out a program to make competitive grants to qualified
            entities that carry out programs or activities
            described in paragraph (2) for the purpose of
            developing, implementing, and sustaining veterinary
            services.
              (2) Eligibility requirements.--A qualified entity
            shall be eligible to receive a grant described in
            paragraph (1) if the entity carries out programs or
            activities that the Secretary determines will--
                      (A) substantially relieve veterinarian
                    shortage situations;
                      (B) support or facilitate private veterinary
                    practices engaged in public health activities;
                    or
                      (C) support or facilitate the practices of
                    veterinarians who are providing or have
                    completed providing services under an agreement
                    entered into with the Secretary under section
                    1415A(a)(2).
      (c) Award Processes and Preferences.--
              (1) Application, evaluation, and input processes.--In
            administering the grant program established under this
            section, the Secretary shall--
                      (A) use an appropriate application and
                    evaluation process, as determined by the
                    Secretary; and
                      (B) seek the input of interested persons.
              (2) Coordination preference.--In selecting recipients
            of grants to be used for any of the purposes described
            in subsection (d)(1), the Secretary shall give a
            preference to qualified entities that provide
            documentation of coordination with other qualified
            entities, with respect to any such purpose.
              (3) Consideration of available funds.--In selecting
            recipients of grants to be used for any of the purposes
            described in subsection (d), the Secretary shall take
            into consideration the amount of funds available for
            grants and the purposes for which the grant funds will
            be used.
              (4) Nature of grants.--A grant awarded under this
            section shall be considered to be a competitive
            research, extension, or education grant.
      (d) Use of Grants to Relieve Veterinarian Shortage Situations
    and Support Veterinary Services.--
              (1) In general.--Except as provided in paragraph (2),
            a qualified entity may use funds provided by a grant
            awarded under this section to relieve veterinarian
            shortage situations and support veterinary services for
            any of the following purposes:
                      (A) To promote recruitment (including for
                    programs in secondary schools), placement, and
                    retention of veterinarians, veterinary
                    technicians, students of veterinary medicine,
                    and students of veterinary technology.
                      (B) To allow veterinary students, veterinary
                    interns, externs, fellows, and residents, and
                    veterinary technician students to cover
                    expenses (other than the types of expenses
                    described in section 1415A(c)(5)) to attend
                    training programs in food safety or food animal
                    medicine.
                      (C) To establish or expand accredited
                    veterinary education programs (including
                    faculty recruitment and retention), veterinary
                    residency and fellowship programs, or
                    veterinary internship and externship programs
                    carried out in coordination with accredited
                    colleges of veterinary medicine.
                      (D) To provide continuing education and
                    extension, including veterinary telemedicine
                    and other distance-based education, for
                    veterinarians, veterinary technicians, and
                    other health professionals needed to strengthen
                    veterinary programs and enhance food safety.
                      (E) To provide technical assistance for the
                    preparation of applications submitted to the
                    Secretary for designation as a veterinarian
                    shortage situation under this section or
                    section 1415A.
              (2) Qualified entities operating veterinary
            clinics.--A qualified entity described in subsection
            (a)(1)(A) may only use funds provided by a grant
            awarded under this section to establish or expand
            veterinary practices, including--
                      (A) equipping veterinary offices;
                      (B) sharing in the reasonable overhead costs
                    of such veterinary practices, as determined by
                    the Secretary; or
                      (C) establishing mobile veterinary facilities
                    in which a portion of the facilities will
                    address education or extension needs.
      (e) Special Requirements for Certain Grants.--
              (1) Terms of service requirements.--
                      (A) In general.--Funds provided through a
                    grant made under this section to a qualified
                    entity described in subsection (a)(1)(A) and
                    used by such entity under subsection (d)(2)
                    shall be subject to an agreement between the
                    Secretary and such entity that includes a
                    required term of service for such entity
                    (including a qualified entity operating as an
                    individual), as prospectively established by
                    the Secretary.
                      (B) Considerations.--In establishing a term
                    of service under subparagraph (A), the
                    Secretary shall consider only--
                              (i) the amount of the grant awarded;
                            and
                              (ii) the specific purpose of the
                            grant.
              (2) Breach remedies.--
                      (A) In general.--An agreement under paragraph
                    (1) shall provide remedies for any breach of
                    the agreement by the qualified entity referred
                    to in paragraph (1)(A), including repayment or
                    partial repayment of the grant funds, with
                    interest.
                      (B) Waiver.--The Secretary may grant a waiver
                    of the repayment obligation for breach of
                    contract if the Secretary determines that such
                    qualified entity demonstrates extreme hardship
                    or extreme need.
                      (C) Treatment of amounts recovered.--Funds
                    recovered under this paragraph shall--
                              (i) be credited to the account
                            available to carry out this section;
                            and
                              (ii) remain available until expended
                            without further appropriation.
      (f) Prohibition on Use of Grant Funds for Construction.--
    Except as provided in subsection (d)(2), funds made available
    for grants under this section may not be used--
              (1) to construct a new building or facility; or
              (2) to acquire, expand, remodel, or alter an existing
            building or facility, including site grading and
            improvement and architect fees.
      (g) Regulations.--Not later than 1 year after the date of the
    enactment of this section, the Secretary shall promulgate
    regulations to carry out this section.
      (h) Authorization of Appropriations.--There are authorized to
    be appropriated to the Secretary to carry out this section
    $10,000,000 for fiscal year 2013 and each fiscal year
    thereafter, to remain available until expended.

               *       *       *       *       *       *       *

    SEC. 1417. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES
                        EDUCATION.

      (a) * * *

               *       *       *       *       *       *       *

      (m) Authorization of Appropriations.--There are authorized to
    be appropriated for carrying out this [section $60,000,000 for
    each of the fiscal years 1990 through 2012.] section--
              (1) $60,000,000 for each of fiscal years 1990 through
            2012; and
              (2) $40,000,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

    SEC. 1419A. AGRICULTURAL AND FOOD POLICY RESEARCH CENTERS.

      (a) In General.--Consistent with this section, the [Secretary
    may make grants, competitive grants, and special research
    grants to, and enter into cooperative agreements and other
    contracting instruments with,] Secretary shall, acting through
    the Office of the Chief Economist, make competitive grants to
    or enter into cooperative agreements with policy research
    centers described in subsection (b) with a history of providing
    unbiased, nonpartisan economic analysis to Congress to conduct
    research and education programs that are objective,
    operationally independent, and external to the Federal
    Government and that concern the effect of public policies and
    trade agreements on--
              (1) * * *

               *       *       *       *       *       *       *

      (b) Eligible Recipients.--State agricultural experiment
    stations, colleges and universities, [other research
    institutions and organizations (including the Food Agricultural
    Policy Research Institute, the Agricultural and Food Policy
    Center, the Rural Policy Research Institute, and the National
    Drought Mitigation Center), private organizations,
    corporations, and individuals shall be eligible] and other
    public research institutions and organizations shall be
    eligible to apply for funding under subsection (a).
      (c) Preference.--In awarding grants under this section, the
    Secretary shall give a preference to policy research centers
    that have extensive databases, models, and demonstrated
    experience in providing Congress with agricultural market
    projections, rural development analysis, agricultural policy
    analysis, and baseline projections at the farm, multiregional,
    national, and international levels.
      [(c)] (d) Activities.--Under this section, funding may be
    provided for disciplinary and interdisciplinary research and
    education concerning policy research activities consistent with
    this section, including activities that--
              (1) * * *

               *       *       *       *       *       *       *

      [(d) Authorization of Appropriations.--There are authorized
    to be appropriated such sums as are necessary to carry out this
    section for each of fiscal years 1996 through 2012.]
      (e) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section--
              (1) such sums as are necessary for each of fiscal
            years 1996 through 2012; and
              (2) $5,000,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

     Subtitle D--National Food and Human Nutrition Research and Extension
    Program

               *       *       *       *       *       *       *

    [SEC. 1424. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH
                        PROGRAM.

      [(a) Authority of Secretary.--The Secretary may establish,
    and award grants for projects for, a multi-year research
    initiative on human nutrition intervention and health
    promotion.
      [(b) Emphasis of Initiative.--In administering human
    nutrition research projects under this section, the Secretary
    shall give specific emphasis to--
              [(1) coordinated longitudinal research assessments of
            nutritional status;
              [(2) the implementation of unified, innovative
            intervention strategies; and
              [(3) proposals that examine the efficacy of current
            agriculture policies in promoting the health and
            welfare of economically disadvantaged populations;
    to identify and solve problems of nutritional inadequacy and
    contribute to the maintenance of health, well-being,
    performance, and productivity of individuals, thereby reducing
    the need of the individuals to use the health care system and
    social programs of the United States.
      [(c) Administration of Funds.--The Administrator of the
    Agricultural Research Service shall administer funds made
    available to carry out this section to ensure a coordinated
    approach to health and nutrition research efforts.
      [(d) Authorization of Appropriations.--There are authorized
    to be appropriated such sums as are necessary to carry out this
    section for each of fiscal years 1996 through 2012.

    [SEC. 1424A. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL
                        RESEARCH.

      [(a) Findings.--Congress finds the following:
              [(1) Although medical researchers in recent years
            have demonstrated that there are several naturally
            occurring compounds in many vegetables and fruits that
            can aid in the prevention of certain forms of cancer,
            coronary heart disease, stroke, and atherosclerosis,
            there has been almost no research conducted to enhance
            these compounds in food plants by modern breeding and
            molecular genetic methods.
              [(2) By linking the appropriate medical and
            agricultural research scientists in a highly-focused,
            targeted research program, it should be possible to
            develop new varieties of vegetables and fruits that
            would provide greater prevention of diet-related
            diseases that are a major cause of death in the United
            States.
      [(b) Pilot Research Program.--The Secretary shall conduct,
    through the National Institute of Food and Agriculture, a pilot
    research program to link major cancer and heart and other
    circulatory disease research efforts with agricultural research
    efforts to identify compounds in vegetables and fruits that
    prevent these diseases. Using information derived from such
    combined research efforts, the Secretary shall assist in the
    development of new varieties of vegetables and fruits having
    enhanced therapeutic properties for disease prevention.
      [(c) Agreements.--The Secretary shall carry out the pilot
    program through agreements entered into with land-grant
    colleges or universities, other universities, State
    agricultural experiment stations, the State cooperative
    extension services, nonprofit organizations with demonstrable
    expertise, or Federal or State governmental entities. The
    Secretary shall enter into the agreements on a competitive
    basis.
      [(d) Authorization of Appropriations.--There are authorized
    to be appropriated $10,000,000 for each of fiscal years 1997
    through 2012 to carry out the pilot program.]

    SEC. 1425. NUTRITION EDUCATION PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (f) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out the expanded food and nutrition
    education program established under section 3(d) of the Act of
    May 8, 1914 (7 U.S.C. 343(d)), and this section $90,000,000 for
    each of fiscal years 2009 through [2012] 2017.

               *       *       *       *       *       *       *

                 Subtitle E--Animal Health and Disease Research

       [APPROPRIATIONS FOR CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH
                                    PROGRAMS

      [Sec. 1433. (a) There are authorized to be appropriated such
    funds as Congress may determine necessary to support continuing
    animal health and disease research programs at eligible
    institutions, but not to exceed $25,000,000 for each of the
    fiscal years 1991 through 2012, and not in excess of such sums
    as may after the date of enactment of this title be authorized
    by law for any subsequent fiscal year. Funds appropriated under
    this section shall be used: (1) to meet expenses of conducting
    animal health and disease research, publishing and
    disseminating the results of such research, and contributing to
    the retirement of employees subject to the provisions of the
    Act of March 4, 1940 (54 Stat. 39-40, as amended; 7 U.S.C.
    331); (2) for administrative planning and direction; and (3) to
    purchase equipment and supplies necessary for conducting such
    research.]

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

      (a) Authorization of Appropriations.--
              (1) In general.--There are authorized to be
            appropriated to support continuing animal health and
            disease research programs at eligible institutions--
                      (A) $25,000,000 for each of fiscal years 1991
                    through 2012; and
                      (B) $15,000,000 for each of fiscal years 2013
                    through 2017.
              (2) Use of funds.--Funds made available under this
            section shall be used--
                      (A) to meet the expenses of conducting animal
                    health and disease research, publishing and
                    disseminating the results of such research, and
                    contributing to the retirement of employees
                    subject to the Act of March 4, 1940 (7 U.S.C.
                    331);
                      (B) for administrative planning and
                    direction; and
                      (C) to purchase equipment and supplies
                    necessary for conducting the research described
                    in subparagraph (A).

               *       *       *       *       *       *       *

         [APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL PROBLEMS

      [Sec. 1434. (a) There are authorized to be appropriated such
    funds as Congress may determine necessary to support research
    on specific national or regional animal health or disease
    problems, or national or regional problems relating to pre-
    harvest, on-farm food safety, or animal well-being, but not to
    exceed $35,000,000 for each of the fiscal years 1991 through
    2012, and not in excess of such sums as may after the date of
    enactment of this title be authorized by law for any subsequent
    fiscal year.
      [(b) Notwithstanding the provisions of section 1435 of this
    title, funds appropriated under this section shall be awarded
    in the form of grants, for periods not to exceed five years, to
    State agricultural experiment stations, colleges and
    universities (including 1890 Institutions (as defined in
    section 2 of the Agricultural Research, Extension, and
    Education Reform Act of 1998 (7 U.S.C. 7601))), other research
    institutions and organizations, Federal agencies, private
    organizations or corporations, and individuals.
      [(c) In order to establish a national allocation of funds
    appropriated under this section, the Secretary shall establish
    annually priority lists of animal health and disease, food
    safety, and animal well-being problems of national or regional
    significance. Such lists shall be prepared after consultation
    with the Advisory Board. Any recommendations made in connection
    with such consultation shall not be controlling on the
    Secretary's determination of priorities. In establishing such
    priorities, the Secretary and the Advisory Board shall consider
    the following factors:
              [(1) any health or disease problem which causes or
            may cause significant economic losses to any part of
            the livestock production industry;
              [(2) any food safety problem that has a significant
            pre-harvest (on-farm) component and is recognized as
            posing a significant health hazard to the consuming
            public;
              [(3) issues of animal well-being related to
            production methods that will improve the housing and
            management of animals to improve the well-being of
            livestock production species;
              [(4) whether current scientific knowledge necessary
            to prevent, cure, or abate such a health or disease
            problem is adequate; and
              [(5) whether the status of scientific research is
            such that accomplishments may be anticipated through
            the application of scientific effort to such health or
            disease problem.
      [(d) Without regard to any consultation under subsection (c),
    the Secretary shall, to the extent feasible, award grants on
    the basis of the priorities assigned through a peer review
    system. Grantees shall be selected on a competitive basis in
    accordance with such procedures as the Secretary may establish.
      [(e) In the case of multiyear grants, the Secretary shall
    distribute funds to grant recipients on a schedule which is
    reasonably related to the timetable required for the orderly
    conduct of the research project involved.
      [(f) Applicability of Federal Advisory Committee Act.--The
    Federal Advisory Committee Act (5 U.S.C. App.) and title XVIII
    of this Act shall not apply to a panel or board created solely
    for the purpose of reviewing applications or proposals
    submitted under this subtitle.]

               *       *       *       *       *       *       *

                                 MATCHING FUNDS

      Sec. 1438. No funds in excess of $100,000[, exclusive of the
    funds provided for research on specific national or regional
    animal health and disease problems under the provisions of
    section 1434 of this title,] shall be paid by the Federal
    Government to any State under this subtitle during any fiscal
    year in excess of the amount from non-Federal sources made
    available to and budgeted for expenditure by eligible
    institutions in the State during the same fiscal year for
    animal health and disease research. The Secretary is authorized
    to make such payments in excess of $100,000 on the certificate
    of the appropriate official of the eligible institution having
    charge of the animal health and disease research for which such
    payments are to be made. If any eligible institution certified
    for receipt of matching funds fails to make available and
    budget for expenditure for animal health and disease research
    in any fiscal year sums as least equal to the amount for which
    it is certified, the difference between the Federal matching
    funds available and the funds made available to and budgeted
    for expenditure by the eligible institution shall be
    reapportioned by the Secretary among other eligible
    institutions of the same State, if there are any which qualify
    therefor, and, if there are none, the Secretary shall
    reapportion such difference among the other States.

               *       *       *       *       *       *       *

    Subtitle G--1890 Land-Grant College Funding

               *       *       *       *       *       *       *

    SEC. 1447. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES
                        AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE
                        UNIVERSITY.

      (a) * * *
      (b) Authorization of Appropriations.--There are authorized to
    be appropriated to the Secretary of Agriculture for the
    purposes of carrying out the provisions of this section,
    $25,000,000 for each of fiscal years 2002 through [2012] 2017,
    and such sums shall remain available until expended.

               *       *       *       *       *       *       *

    SEC. 1447B. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES FACILITIES
                        AND EQUIPMENT AND SUPPORT TROPICAL AND SUBTROPICAL
                        AGRICULTURAL RESEARCH AT INSULAR AREA LAND-GRANT
                        [INSTITUTIONS] COLLEGES AND UNIVERSITIES.

      [(a) Purpose.--It is the intent of Congress to assist the
    land-grant institutions in the insular areas in efforts to
    acquire, alter, or repair facilities or relevant equipment
    necessary for conducting agricultural research.]
      (a) Purpose.--It is the intent of Congress to assist the
    land-grant colleges and universities in the insular areas in
    efforts to--
              (1) acquire, alter, or repair facilities or relevant
            equipment necessary for conducting agricultural
            research; and
              (2) support tropical and subtropical agricultural
            research, including pest and disease research.

               *       *       *       *       *       *       *

      (d) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $8,000,000 for each
    of fiscal years 2008 through [2012] 2017.

    [SEC. 1448. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.

      [(a) Competitive Grants Authorized.--The Secretary of
    Agriculture may make a competitive grant to five national
    research and training virtual centers located at colleges (or a
    consortia of such colleges) eligible to receive funds under the
    Act of August 30, 1890 (7 U.S.C. 321 et seq.), including
    Tuskegee University, that--
              [(1) have been designated by the Secretary for the
            fiscal years 1991 through 1995, or fiscal years 1996
            through 2012, as national research and training virtual
            centers; and
              [(2) have the best demonstrable capacity, as
            determined by the Secretary, to provide administrative
            leadership as--
                      [(A) a National Center for Goat Research and
                    Training;
                      [(B) a National Center for Agricultural
                    Engineering Development, Research, and
                    Training;
                      [(C) a National Center for Water Quality and
                    Agricultural Production Research and Training;
                      [(D) a National Center for Sustainable
                    Agriculture Research and Training; and
                      [(E) a National Center for Domestic and
                    International Trade and Development Research
                    and Training.
      [(b) Use of Grants.--A grant made under subsection (a) may be
    expended by a center to--
              [(1) pay expenses incurred in conducting research for
            which the center was designated;
              [(2) print and disseminate the results of such
            research;
              [(3) plan, administer, and direct such research; and
              [(4) alter or repair buildings necessary to conduct
            such research.
      [(c) Priority.--In making a grant determination under
    subsection (a), the Secretary shall give priority to those
    centers that--
              [(1) will assure dissemination of information between
            eligible institutions described in subsection (a) and
            among agricultural producers; and
              [(2) will attract students and needed professionals
            in the food and agricultural sciences.
      [(d) Payments.--(1) Under the terms of a grant made under
    subsection (a), funds appropriated under subsection (f) for a
    fiscal year shall be paid (upon vouchers approved by the
    Secretary) to a center receiving the grant in equal quarterly
    installments beginning on or about the first day of October of
    such year.
      [(2) Not later than 60 days after the end of each fiscal year
    for which funds are paid under this section to a center, the
    research director of such center shall submit to the Secretary
    a detailed statement of the disbursements in such fiscal year
    of funds received by such center under this section.
      [(3) If any of the funds received by a center under this
    section are misapplied, lost, or diminished by any action or
    contingency on the part of the center--
              [(A) the center shall replace such funds; and
              [(B) the Secretary shall not distribute to such
            center any other funds under this subsection until such
            funds are replaced.
      [(e) Prohibited Uses of Funds.--Funds provided under this
    section may not be used--
              [(1) to acquire or construct a building; or
              [(2) to pay the overhead costs of the college (or
            consortia of colleges) receiving the grant.
      [(f) Authorization of Appropriations.--There are authorized
    to be appropriated $2,000,000 for each of the fiscal years 1991
    through 2012 for grants under this section.
      [(g) Center Defined.--For purposes of this section, the term
    ``center'' means a national research and training virtual
    center that receives a grant under this subsection.
      [(h) Coordination of Center Activities.--(1) The center
    designated under subsection (a)(2)(C) shall coordinate its
    activities with the water quality research activities conducted
    under subtitle G of title XIV of the Food, Agriculture,
    Conservation, and Trade Act of 1990.
      [(2) The center designated under subsection (a)(2)(D) shall
    coordinate its activities with the sustainable agriculture
    research and education program established under subtitle B of
    title XVI of the Food, Agriculture, Conservation, and Trade Act
    of 1990.]

               *       *       *       *       *       *       *

             Subtitle H--Programs for Hispanic-Serving Institutions

    SEC. 1455. EDUCATION GRANTS PROGRAMS FOR HISPANIC-SERVING INSTITUTIONS.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Authorization of Appropriations.--There are authorized to
    be appropriated to make grants under this section $40,000,000
    for each of fiscal years 1997 through [2012] 2017.

               *       *       *       *       *       *       *

    Subtitle I--International Research, Extension, and Teaching

               *       *       *       *       *       *       *

    SEC. 1459A. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE
                        AND EDUCATION PROGRAMS.

      (a) * * *

               *       *       *       *       *       *       *

      [(c) Authorization of Appropriations.--There are authorized
    to be appropriated such sums as are necessary to carry out this
    section for each of fiscal years 1999 through 2012.]
      (c) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section--
              (1) such sums as are necessary for each of fiscal
            years 1999 through 2012; and
              (2) $5,000,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

    Subtitle K--Funding and Miscellaneous Provisions

               *       *       *       *       *       *       *

    [SEC. 1462A. RESEARCH EQUIPMENT GRANTS.

      [(a) In General.--The Secretary may make competitive grants
    for the acquisition of special purpose scientific research
    equipment for use in the food and agricultural sciences
    programs of eligible institutions described in subsection (b).
      [(b) Eligible Institutions.--The Secretary may make a grant
    under this section to--
              [(1) a college or university; or
              [(2) a State cooperative institution.
      [(c) Maximum Amount.--The amount of a grant made to an
    eligible institution under this section may not exceed
    $500,000.
      [(d) Prohibition on Charge of Equipment as Indirect Costs.--
    The cost of acquisition or depreciation of equipment purchased
    with a grant under this section shall not be--
              [(1) charged as an indirect cost against another
            Federal grant; or
              [(2) included as part of the indirect cost pool for
            purposes of calculating the indirect cost rate of an
            eligible institution.
      [(e) Authorization of Appropriations.--There are authorized
    to be appropriated to carry out this section such sums as may
    be necessary for each of fiscal years 2002 through 2012.]

               *       *       *       *       *       *       *

         AUTHORIZATION FOR APPROPRIATIONS FOR EXISTING AND CERTAIN NEW
                         AGRICULTURAL RESEARCH PROGRAMS

      Sec. 1463. (a) Notwithstanding any authorization for
    appropriations for agricultural research in any Act enacted
    prior to the date of enactment of this title, there are hereby
    authorized to be appropriated for the purposes of carrying out
    the provisions of this title, except sections 1417, 1420, and
    the competitive grants program provided for in section 1414,
    and except that the authorization for moneys provided under the
    Act of March 2, 1887 (24 Stat. 440-442, as amended; 7 U.S.C.
    361a-361i), is excluded and is provided for in subsection (b)
    of this section, such sums as may be necessary for each of
    fiscal years 1991 through [2012] 2017.
      (b) Notwithstanding any authorization for appropriations for
    agricultural research at State agricultural experiment stations
    in any Act enacted prior to the date of enactment of this
    title, there are hereby authorized to be appropriated for the
    purpose of conducting agricultural research at State
    agricultural experiment stations pursuant to the Act of March
    2, 1887 (24 Stat. 440-442, as amended; 7 U.S.C. 361a-361i),
    such sums as may be necessary for each of fiscal years 1991
    through [2012] 2017.
      (c) Notwithstanding any other provision of law effective
    beginning October 1, 1983, not less than 25 per centum of the
    total funds appropriated to the Secretary in any fiscal year
    for the conduct of the cooperative research program provided
    for under the Act of March 2, 1887, commonly known as the Hatch
    Act (7 U.S.C. 361a et seq.); the cooperative forestry research
    program provided for under the Act of October 10, 1962,
    commonly known as the McIntire-Stennis Act (16 U.S.C. 582a et
    seq.); the special and competitive grants programs provided for
    in sections 2(b) and 2(c) of the Act of August 4, 1965 (7
    U.S.C. 450i); the animal health research program provided for
    under [sections 1433 and 1434] section 1433 of this title; the
    native latex research program provided for in the Native Latex
    Commercialization and Economic Development Act of 1978 (7
    U.S.C. 178 et seq.); and the research provided for under
    various statutes for which funds are appropriated under the
    Agricultural Research heading or a successor heading, shall be
    appropriated for research at State agricultural experiment
    stations pursuant to the provision of the Act of March 2, 1887.

            AUTHORIZATION FOR APPROPRIATIONS FOR EXTENSION EDUCATION

      Sec. 1464. Notwithstanding any authorization for
    appropriations for the Cooperative Extension Service in any Act
    enacted prior to the date of enactment of this title, there are
    hereby authorized to be appropriated for the purposes of
    carrying out the extension programs of the Department of
    Agriculture such sums as may be necessary for each of fiscal
    years 1991 through [2012] 2017.

               *       *       *       *       *       *       *

    SEC. 1469. AUDITING, REPORTING, BOOKKEEPING, AND ADMINISTRATIVE
                        REQUIREMENTS.

      (a) In General.--Except as provided elsewhere in this Act or
    any other Act of Congress--
              (1) * * *
              (2) the Secretary shall provide that each recipient
            of assistance under this title shall submit an annual
            report, at such times and on such forms as the
            Secretary shall prescribe, stating the accomplishments
            of projects (on a project-by-project basis) for which
            such assistance was used and accounting for the use of
            all such assistance. If the Secretary determines that
            any portion of funds made available under this title
            has been lost or applied in a manner inconsistent with
            the provisions of this title or regulations issued
            thereunder the recipient of such funds shall reimburse
            the Federal Government for the funds lost or so
            applied, and the Secretary shall not make available to
            such recipient any additional funds under this Act
            until the recipient has so reimbursed the Federal
            Government; and
              [(3) the Secretary may retain up to 4 percent of
            amounts made available for agricultural research,
            extension, and teaching assistance programs for the
            administration of those programs authorized under this
            Act or any other Act; and]
              [(4)] (3) the Secretary shall establish appropriate
            criteria for grant and assistance approval and
            necessary regulations pertaining thereto.
      (b) Administrative Expenses.--
              (1) In general.--Except as provided in paragraph (2)
            and notwithstanding any other provision of law, the
            Secretary may retain not more than 4 percent of amounts
            made available for agricultural research, extension,
            and teaching assistance programs for the administration
            of those programs authorized under this Act or any
            other Act.
              (2) Exceptions.--The limitation on administrative
            expenses under paragraph (1) shall not apply to peer
            panel expenses under subsection (d) or any other
            provision of law related to the administration of
            agricultural research, extension, and teaching
            assistance programs that contains a limitation on
            administrative expenses that is less than the
            limitation under paragraph (1).
      [(b)] (c) Community Food Projects.--The Secretary may retain,
    for the administration of community food projects under section
    25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034), 4
    percent of amounts available for the projects, notwithstanding
    the availability of any appropriation for administrative
    expenses of the projects.
      [(c)] (d) Peer Panel Expenses.--Notwithstanding any other
    provision of law regarding a competitive research, education,
    or extension grant program of the Department of Agriculture,
    the Secretary may use grant program funds, as necessary, to
    supplement funds otherwise available for program
    administration, to pay for the costs associated with peer
    review of grant proposals under the program.
      [(d)] (e) Definition of In-Kind Support.--In any law relating
    to agricultural research, education, or extension activities
    administered by the Secretary, the term ``in-kind support'',
    with regard to a requirement that the recipient of funds
    provided by the Secretary match all or part of the amount of
    the funds, means contributions such as office space, equipment,
    and staff support.

               *       *       *       *       *       *       *

                       SUPPLEMENTAL AND ALTERNATIVE CROPS

      Sec. 1473D. (a) Notwithstanding any other provision of law,
    during the period beginning October 1, 1986, and ending
    September 30, [2012] 2017, the Secretary shall develop and
    implement a research project for the development of
    supplemental and alternative crops, using such funds as are
    appropriated to the Secretary each fiscal year under this
    title.

               *       *       *       *       *       *       *

      (c)(1) The Secretary shall [use such research funding,
    special or competitive grants, or other means, as the Secretary
    determines,] make competitive grants to further the purposes of
    this section in the implementation of a comprehensive and
    integrated program.

               *       *       *       *       *       *       *

      (e) There are authorized to be appropriated to carry out this
    section--
              (1) such sums as are necessary for fiscal year 2012;
            and
              (2) $1,000,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

    SEC. 1473F. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.

      (a) * * *
      (b) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section such sums as are
    necessary for each of fiscal years 2008 through [2012] 2017.

               *       *       *       *       *       *       *

    Subtitle L--Aquaculture

               *       *       *       *       *       *       *

                        AQUACULTURE ASSISTANCE PROGRAMS

      Sec. 1475. (a) * * *
      (b) Grants.--The Secretary may make competitive grants to--
              (1) * * *

               *       *       *       *       *       *       *

                       [AUTHORIZATION FOR APPROPRIATIONS

      [Sec. 1477. There is authorized to be appropriated $7,500,000
    for each of the fiscal years 1991 through 2012. Funds
    appropriated under this section or section 1476 may not be used
    to acquire or construct a building.]

    SEC. 1477. AUTHORIZATION OF APPROPRIATIONS.

      (a) In General.--There are authorized to be appropriated to
    carry out this subtitle--
              (1) $7,500,000 for each of fiscal years 1991 through
            2012; and
              (2) $5,000,000 for each of fiscal years 2013 through
            2017.
      (b) Prohibition on Use.--Funds made available under this
    section may not be used to acquire or construct a building.

    Subtitle M--Rangeland Research

               *       *       *       *       *       *       *

                                 APPROPRIATIONS

      Sec. 1483. (a) There are authorized to be appropriated, to
    implement the provisions of this [subtitle, such sums not to
    exceed $10,000,000 for each of the fiscal years 1991 through
    2012.] subtitle--
              (1) $10,000,000 for each of fiscal years 1991 through
            2012; and
              (2) $2,000,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

                            Subtitle N--Biosecurity

    SEC. 1484. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND RESPONSE.

      (a) Authorization of Appropriations.--In addition to amounts
    for agricultural research, extension, and education under this
    Act, there are authorized to be appropriated for agricultural
    research, education, and extension activities for biosecurity
    planning and [response such sums as are necessary for each of
    fiscal years 2002 through 2012.] response--
              (1) such sums as are necessary for each of fiscal
            years 2002 through 2012; and
              (2) $10,000,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

    Subtitle O--Institutions of Higher Education in Insular Areas

               *       *       *       *       *       *       *

    SEC. 1490. DISTANCE EDUCATION GRANTS FOR INSULAR AREAS.

      (a) In General.--The Secretary may make competitive [or
    noncompetitive] grants to eligible institutions in insular
    areas to strengthen the capacity of such institutions to carry
    out distance food and agricultural education programs using
    digital network technologies.

               *       *       *       *       *       *       *

      (f) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this [section such sums as may be
    necessary for each of fiscal years 2002 through 2012.]
    section--
              (1) such sums as are necessary for each of fiscal
            years 2002 through 2012; and
              (2) $2,000,000 for each of fiscal years 2013 through
            2017.

    SEC. 1491. RESIDENT INSTRUCTION GRANTS FOR INSULAR AREAS.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Authorization of appropriations.--There are authorized to
    be appropriated [such sums as are necessary for each of the
    fiscal years 2002 through 2012 to carry out this section.] to
    carry out this section--
              (1) such sums as are necessary for each of fiscal
            years 2002 through 2012; and
              (2) $2,000,000 for each of fiscal years 2013 through
            2017.

                         Subtitle P--General Provisions

    SEC. 1492. MATCHING FUNDS REQUIREMENT.

      (a) Matching Funds Requirement.--The recipient of a
    competitive grant that is awarded by the Secretary under a
    covered law and that involves applied research or extension
    that is commodity-specific or State-specific shall provide
    funds, in-kind contributions, or a combination of both, from
    sources other than funds provided through such grant in an
    amount at least equal to the amount of such grant.
      (b) Waiver Authority.--The Secretary may waive the matching
    funds requirement under subsection (a) with respect to a
    competitive grant that involves applied research or extension
    that the National Agricultural Research, Extension, Education,
    and Economics Advisory Board has determined is a national
    priority under section 1408(c).
      (c) Definitions.--In this section:
              (1) Applied research.--The term ``applied research''
            has the meaning given such term in section 251(f)(1)(B)
            of the Department of Agriculture Reorganization Act of
            1994 (7 U.S.C. 6971(f)(1)(B)).
              (2) Covered law.--The term ``covered law'' means each
            of the following provisions of law:
                      (A) This title.
                      (B) Title XVI of the Food, Agriculture,
                    Conservation, and Trade Act of 1990 (7 U.S.C.
                    5801 et seq.).
                      (C) The Agricultural Research, Extension, and
                    Education Reform Act of 1998 (7 U.S.C. 7601 et
                    seq.).
                      (D) Section 7405 of the Farm Security and
                    Rural Investment Act of 2002 (7 U.S.C. 3319f).
                      (E) Part III of subtitle E of title VII of
                    the Food, Conservation, and Energy Act of 2008
                    (7 U.S.C. 3202 et seq.).
                      (F) The Competitive, Special, and Facilities
                    Research Grant Act (7 U.S.C. 450i).
                                  ----------

            COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANT ACT

               *       *       *       *       *       *       *
    SEC. 2. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS.

      (a) * * *
      (b) Agriculture and Food Research Initiative.--
              (1) * * *
              (2) Priority areas.--The competitive grants program
            established under this subsection shall address the
            following areas:
                      (A) Plant health and production and plant
                    products.--Plant systems, including--
                              (i) * * *

               *       *       *       *       *       *       *

                              (vi) unproved nutrient qualities of
                            plant products; [and]
                              (vii) new food and industrial uses of
                            plant products[.]; and
                              (viii) plant-based foods that are
                            major sources of nutrients of concern
                            (as determined by the Secretary).
                      (B) Animal health and production and animal
                    products.--Animal systems, including--
                              (i) * * *

               *       *       *       *       *       *       *

                              (vii) improved nutrient qualities of
                            animal products and uses; [and]
                              (viii) the development of new and
                            improved animal husbandry and
                            production systems that take into
                            account production efficiency, animal
                            well-being, and animal systems
                            applicable to aquaculture[.];
                              (ix) the research and development of
                            surveillance methods, vaccines,
                            vaccination delivery systems, or
                            diagnostic tests for zoonotic diseases
                            in wildlife reservoirs presenting a
                            potential concern to public health or
                            domestic livestock; and
                              (x) the identification of animal drug
                            needs and the generation and
                            dissemination of data for safe and
                            effective therapeutic applications of
                            animal drugs for minor species and
                            minor uses of such drugs in major
                            species.
                      (C) Food safety, nutrition, and health.--
                    Nutrition, food safety and quality, and health,
                    including--
                              (i) * * *
                              (ii) links between diet and health,
                            including the effects of plant-based
                            foods that are major sources of
                            nutrients of concern on diet and
                            health;
                              (iii) bioavailability of nutrients,
                            including plant-based foods that are
                            major sources of nutrients of concern;
                              (iv) postharvest physiology and
                            practices, including postharvest
                            practices conducted with respect to
                            plant-based foods that are major
                            sources of nutrients of concern; and
                              (v) improved processing technologies,
                            including improving the functionality
                            of plant-based foods that are major
                            sources of nutrients of concern.
                      (D) Renewable energy, natural resources, and
                    environment.--Natural resources and the
                    environment, including--
                              (i) * * *

               *       *       *       *       *       *       *

                              (iv) the effectiveness of
                            conservation practices and technologies
                            designed to address nutrient losses and
                            improve water quality;
                              [(iv)] (v) global climate effects on
                            agriculture;
                              [(v)] (vi) forestry; and
                              [(vi)] (vii) biological diversity.

               *       *       *       *       *       *       *

                      (F) Agriculture economics and rural
                    communities.--Markets, trade, economics, and
                    policy, including--
                              (i) * * *

               *       *       *       *       *       *       *

                              (v) the economic costs, benefits, and
                            viability of producers adopting
                            conservation practices and technologies
                            designed to improve water quality;
                              [(v)] (vi) technology assessment; and
                              [(vi)] (vii) new approaches to rural
                            development, including rural
                            entrepreneurship.

               *       *       *       *       *       *       *

              (4) General administration.--In making grants under
            this subsection, the Secretary shall--
                      (A) * * *

               *       *       *       *       *       *       *

                      (D) solicit and consider input from persons
                    who conduct or use agricultural research,
                    extension, or education in accordance with
                    section 102(b) of the Agricultural Research,
                    Extension, and Education Reform Act of 1998 (7
                    U.S.C. 7612(b)); [and]
                      (E) in seeking proposals for grants under
                    this subsection and in performing peer review
                    evaluations of such proposals, seek the widest
                    participation of qualified individuals in the
                    Federal Government, colleges and universities,
                    State agricultural experiment stations, and the
                    private sector[.]; and
                      (F) establish procedures under which a
                    commodity board established under a commodity
                    promotion law (as such term is defined under
                    section 501(a) of the Federal Agriculture
                    Improvement and Reform Act of 1996 (7 U.S.C.
                    7401(a))) or a State commodity board (or other
                    equivalent State entity) may directly submit to
                    the Secretary proposals for requests for
                    applications to specifically address particular
                    issues related to the priority areas specified
                    in paragraph (2).

               *       *       *       *       *       *       *

              (6) Special considerations.--In making grants under
            this subsection, the Secretary may assist in the
            development of capabilities in the agricultural, food,
            and environmental sciences by providing grants--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) to ensure that the faculty of small, mid-
                    sized, and minority-serving institutions who
                    have not previously been successful in
                    obtaining competitive grants under this
                    subsection receive a portion of the grants;
                    [and]
                      (D) to improve research, extension, and
                    education capabilities in States (as defined in
                    section 1404 of the National Agricultural
                    Research, Extension, and Teaching Policy Act of
                    1977 (7 U.S.C. 3103)) in which institutions
                    have been less successful in receiving funding
                    under this subsection, based on a 3-year
                    rolling average of funding levels[.]; and
                      (E) to eligible entities to carry out the
                    specific research proposals submitted under
                    procedures established under paragraph (4)(F).

               *       *       *       *       *       *       *

              (9) Matching funds for equipment grants.--
                      [(A) Equipment grants.--]
                      [(i)] (A) In general.--Except as provided in
                    clause (ii), in the case of a grant made under
                    paragraph (6)(A), the amount provided under
                    this subsection may not exceed 50 percent of
                    the cost of the special research equipment or
                    other equipment acquired using funds from the
                    grant.
                      [(ii)] (B) Waiver.--The Secretary may waive
                    all or part of the matching requirement under
                    clause (i) in the case of a college,
                    university, or research foundation maintained
                    by a college or university that ranks in the
                    lowest \1/3\ of such colleges, universities,
                    and research foundations on the basis of
                    Federal research funds received, if the
                    equipment to be acquired using funds from the
                    grant costs not more than $25,000 and has
                    multiple uses within a single research project
                    or is usable in more than 1 research project.
                      [(B) Applied research.--As a condition of
                    making a grant under paragraph (5)(B), the
                    Secretary shall require the funding of the
                    grant to be matched with equal matching funds
                    from a non-Federal source if the grant is for
                    applied research that is--
                              [(i) commodity-specific; and
                              [(ii) not of national scope.]

               *       *       *       *       *       *       *

              (11) Authorization of appropriations.--
                      (A) In general.--There is authorized to be
                    appropriated to carry out this subsection
                    $700,000,000 for each of fiscal years 2008
                    through [2012] 2017, of which--
                              (i) * * *

               *       *       *       *       *       *       *

      (e) Inter-Regional Research Project Number 4.--(1) The
    Secretary of Agriculture shall establish an Inter-Regional
    Research Project Number 4 (hereinafter referred to in this
    subsection as the ``IR-4 Program'') to assist in the collection
    of residue and efficacy data in support of--
              (A) the registration or reregistration of [minor use
            pesticides] pesticides for minor agricultural use and
            for use on specialty crops (as defined in section 3 of
            the Specialty Crop Competitiveness Act of 2004 (7
            U.S.C. 1621 note) under the Federal Insecticide,
            Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.);
            and

               *       *       *       *       *       *       *

      (4) As part of carrying out the IR-4 Program, the Secretary
    shall--
              (A) participate in research activities aimed at
            reducing residues of pesticides registered for minor
            agricultural use and for use on specialty crops;
              (B) develop analytical techniques applicable to
            residues of pesticides registered for minor
            agricultural use, including automation techniques and
            validation of analytical methods; [and]
              (C) prioritize potential pest management technology
            for minor agricultural use and for use on specialty
            crops;
              (D) conduct research to develop the data necessary to
            facilitate pesticide registrations, reregistrations,
            and associated tolerances;
              (E) assist in removing trade barriers caused by
            residues of pesticides registered for minor
            agricultural use and for use on domestically grown
            specialty crops;
              (F) assist in the registration and reregistration of
            pest management technologies for minor agricultural use
            and for use on specialty crops; and
              [(C)] (G) coordinate with other programs within the
            Department of Agriculture and the Environmental
            Protection Agency designed to develop and promote
            biological and other alternative control measures.

               *       *       *       *       *       *       *

      [(k) Emphasis on Sustainable Agriculture.--The Secretary of
    Agriculture shall ensure that grants made under subsections (b)
    and (c) are, where appropriate, consistent with the development
    of systems of sustainable agriculture. For purposes of this
    section, the term ``sustainable agriculture'' has the meaning
    given that term in section 1404 of the National Agricultural
    Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
    3103).]
                                  ----------

       AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION REFORM ACT OF 1998

               *       *       *       *       *       *       *
     TITLE I--PRIORITIES, SCOPE, REVIEW, AND COORDINATION OF AGRICULTURAL
    RESEARCH, EXTENSION, AND EDUCATION

               *       *       *       *       *       *       *

    SEC. 103. RELEVANCE AND MERIT OF AGRICULTURAL RESEARCH, EXTENSION, AND
                        EDUCATION FUNDED BY THE DEPARTMENT.

      (a) Review of National Institute of Food and Agriculture.--
              (1) * * *
              (2) [Merit review of extension] Relevance and merit
            review of research, extension, and education grants.--
                      (A) Establishment of procedures.--The
                    Secretary shall establish procedures that
                    provide for relevance and merit review of each
                    agricultural [extension or education] research,
                    extension, or education grant administered, on
                    a competitive basis, by the National Institute
                    of Food and Agriculture.
                      (B) Consultation with advisory board.--The
                    Secretary shall consult with the Advisory Board
                    in establishing the merit review procedures on
                    a continuous basis.

               *       *       *       *       *       *       *

         TITLE IV--NEW AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION
    INITIATIVES

               *       *       *       *       *       *       *

    SEC. 406. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE
                        GRANTS PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (f) Authorization of Appropriations.--There are authorized to
    be appropriated such sums as are necessary to carry out this
    section for each of fiscal years 1999 through [2012] 2017.

    [SEC. 407. COORDINATED PROGRAM OF RESEARCH, EXTENSION, AND EDUCATION TO
                        IMPROVE VIABILITY OF SMALL AND MEDIUM SIZE DAIRY,
                        LIVESTOCK, AND POULTRY OPERATIONS.

      [(a) Program Authorized.--The Secretary of Agriculture may
    carry out a coordinated program of research, extension, and
    education to improve the competitiveness, viability, and
    sustainability of small and medium size dairy, livestock, and
    poultry operations (referred to in this section as
    ``operations'').
      [(b) Components.--To the extent the Secretary elects to carry
    out the program, the Secretary shall conduct--
              [(1) research, development, and on-farm extension and
            education concerning low-cost production facilities and
            practices, management systems, and genetics that are
            appropriate for the operations;
              [(2) in the case of dairy and livestock operations,
            research and extension on management-intensive grazing
            systems for dairy and livestock production to realize
            the potential for reduced capital and feed costs
            through greater use of management skills, labor
            availability optimization, and the natural benefits of
            grazing pastures;
              [(3) research and extension on integrated crop and
            livestock or poultry systems that increase efficiencies
            (including improved use of energy inputs), reduce
            costs, and prevent environmental pollution to
            strengthen the competitive position of the operations;
              [(4) economic analyses and market feasibility studies
            to identify new and expanded opportunities for
            producers on the operations that provide tools and
            strategies to meet consumer demand in domestic and
            international markets, such as cooperative marketing
            and value-added strategies for milk, meat, and poultry
            production and processing; and
              [(5) technology assessment that compares the
            technological resources of large specialized producers
            with the technological needs of producers on the
            operations to identify and transfer existing technology
            across all sizes and scales and to identify the
            specific research and education needs of the producers.
      [(c) Administration.--The Secretary may use the funds,
    facilities, and technical expertise of the Agricultural
    Research Service and the National Institute of Food and
    Agriculture and other funds available to the Secretary (other
    than funds of the Commodity Credit Corporation) to carry out
    this 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
    2012.]

    SEC. 410. GRANTS FOR YOUTH ORGANIZATIONS.

      (a) * * *

               *       *       *       *       *       *       *

      (d) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this [section such sums as are
    necessary for each of fiscal years 2008 through 2012.]
    section--
              (1) such sums as are necessary for each of fiscal
            years 2008 through 2012; and
              (2) $3,000,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

    SEC. 412. SPECIALTY CROP RESEARCH INITIATIVE.

      (a) * * *
      (b) Establishment.--There is established within the
    Department a specialty crop research and extension initiative
    to address the critical needs of the specialty crop industry by
    developing and disseminating science-based tools to address
    needs of specific crops and their regions, including--
              (1) research in plant breeding, genetics, [and
            genomics] genomics, and other methods to improve crop
            characteristics, such as--
                      (A) * * *

               *       *       *       *       *       *       *

              (3) efforts to improve production efficiency,
            handling and processing, productivity, and
            profitability over the long term (including specialty
            crop policy and marketing);

               *       *       *       *       *       *       *

      [(d) Research Projects.--In carrying out this section, the
    Secretary shall award grants on a competitive basis.]
      (d) Research Projects.--In carrying out this section, the
    Secretary shall award competitive grants on the basis of--
              (1) an initial scientific peer review conducted by a
            panel of subject matter experts from Federal agencies,
            non-Federal entities, and the specialty crop industry;
            and
              (2) a final funding determination made by the
            Secretary based on a review and ranking for merit,
            relevance, and impact conducted by a panel of specialty
            crop industry representatives for the specific
            specialty crop.

               *       *       *       *       *       *       *

      (h) Funding.--
              [(1) In general.--Of the funds]
              (1) Mandatory funding.--
                      (A) In general.--Of the funds  of the
                    Commodity Credit Corporation, the Secretary
                    shall make available to carry out this section
                    $30,000,000 for fiscal year 2008 and
                    $50,000,000 for each of fiscal years 2009
                    through 2012, from which activities under each
                    of paragraphs (1) through (5) of subsection (b)
                    shall be allocated not less than 10 percent.
                      (B) Subsequent funding.--Of the funds of the
                    Commodity Credit Corporation, the Secretary
                    shall make available to carry out this
                    section--
                              (i) $25,000,000 for fiscal year 2013;
                              (ii) $30,000,000 for each of fiscal
                            years 2014 and 2015;
                              (iii) $65,000,000 for fiscal year
                            2016; and
                              (iv) $50,000,000 for fiscal year 2017
                            and each fiscal year thereafter.
              (2) Authorization of appropriations.--In addition to
            funds made available under paragraph (1), there is
            authorized to be appropriated to carry out this section
            $100,000,000 for each of fiscal years 2008 through
            [2012] 2017.

               *       *       *       *       *       *       *

                       TITLE VI--MISCELLANEOUS PROVISIONS

    Subtitle A--Existing Authorities

               *       *       *       *       *       *       *

    SEC. 604. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      (e) Authorization of Appropriations.--In addition to any
    other funds available to carry out subsection (c), there is
    authorized to be appropriated to carry out this section
    $2,500,000 for each of fiscal years 2008 through [2012] 2017.

               *       *       *       *       *       *       *

    Subtitle B--New Authorities

               *       *       *       *       *       *       *

    [SEC. 612. NATIONAL SWINE RESEARCH CENTER.

      [Subject to the availability of appropriations to carry out
    this section, or through a reprogramming of funds provided for
    swine research to carry out this section pursuant to
    established procedures, during the period beginning on the date
    of enactment of this Act and ending December 31, 1998, the
    Secretary of Agriculture, acting through the Agricultural
    Research Service, may accept as a gift, and administer, the
    National Swine Research Center located in Ames, Iowa.]

               *       *       *       *       *       *       *

    SEC. 614. OFFICE OF PEST MANAGEMENT POLICY.

      (a) * * *

               *       *       *       *       *       *       *

      (f) Authorization of Appropriations.--There are authorized to
    be appropriated [such sums as are necessary] to carry out this
    [section for each of fiscal years 1999 through 2012.] section--
              (1) such sums as are necessary for each of fiscal
            years 1999 through 2012; and
              (2) $3,000,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

                              [Subtitle C--Studies

    [SEC. 631. EVALUATION AND ASSESSMENT OF AGRICULTURAL RESEARCH,
                        EXTENSION, AND EDUCATION PROGRAMS.

      [(a) Evaluation.--The Secretary of Agriculture shall conduct
    a performance evaluation to determine whether federally funded
    agricultural research, extension, and education programs result
    in public goods that have national or multistate significance.
      [(b) Contract.--The Secretary shall enter into a contract
    with 1 or more entities with expertise in research assessment
    and performance evaluation to provide input and recommendations
    to the Secretary with respect to federally funded agricultural
    research, extension, and education programs.
      [(c) Guidelines for Performance Measurement.--The contractor
    selected under subsection (b) shall develop and propose to the
    Secretary practical guidelines for measuring performance of
    federally funded agricultural research, extension, and
    education programs. The guidelines shall be consistent with the
    Government Performance and Results Act of 1993 (Public Law 103-
    62) and amendments made by that Act.

    [SEC. 632. STUDY OF FEDERALLY FUNDED AGRICULTURAL RESEARCH, EXTENSION,
                        AND EDUCATION.

      [(a) Study.--Not later than January 1, 1999, the Secretary of
    Agriculture shall request the National Academy of Sciences to
    conduct a study of the role and mission of federally funded
    agricultural research, extension, and education.
      [(b) Requirements.--The study shall--
              [(1) evaluate the strength of science conducted by
            the Agricultural Research Service and the relevance of
            the science to national priorities;
              [(2) examine how the work of the Agricultural
            Research Service relates to the capacity of the
            agricultural research, extension, and education system
            of the United States;
              [(3) examine the appropriateness of the formulas for
            the allocation of funds under the Smith-Lever Act (7
            U.S.C. 341 et seq.) and the Hatch Act of 1887 (7 U.S.C.
            361a et seq.) with respect to current conditions of the
            agricultural economy and other factors of the various
            regions and States of the United States and develop
            recommendations to revise the formulas to more
            accurately reflect the current conditions; and
              [(4) examine the system of competitive grants for
            agricultural research, extension, and education.
      [(c) Reports.--The Secretary shall prepare and submit to the
    Committee on Agriculture of the House of Representatives and
    the Committee on Agriculture, Nutrition, and Forestry of the
    Senate--
              [(1) not later than 18 months after the commencement
            of the study, a report that describes the results of
            the study as it relates to paragraphs (1) and (2) of
            subsection (b), including any appropriate
            recommendations; and
              [(2) not later than 3 years after the commencement of
            the study, a report that describes the results of the
            study as it relates to paragraphs (3) and (4) of
            subsection (b), including the recommendations developed
            under paragraph (3) of subsection (b) and other
            appropriate recommendations.]

               *       *       *       *       *       *       *

                                  ----------

                      CRITICAL AGRICULTURAL MATERIALS ACT

               *       *       *       *       *       *       *
      Sec. 16. (a) There are authorized to be appropriated to the
    Secretary of Agriculture [such sums as are necessary] to carry
    out this [Act in each of the fiscal years 1991 through 2012.]
    Act--
              (1) such sums as are necessary for each of fiscal
            years 1991 through 2012; and
              (2) $2,000,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

                                  ----------

              EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994

               *       *       *       *       *       *       *
    TITLE V--MISCELLANEOUS PROVISIONS

               *       *       *       *       *       *       *

    PART C--1994 INSTITUTIONS

               *       *       *       *       *       *       *

    SEC. 532. DEFINITION.

      As used in this part, the term ``1994 Institutions'' means
    any one of the following colleges:
              (1) Aaniih Nakoda College.
              [(1)] (2) Bay Mills Community College.
              [(2)] (3) Blackfeet Community College.
              [(3)] (4) Cankdeska Cikana Community College.
              [(8)] (5) Chief Dull Knife [Memorial] College.
              (6) College of the Muscogee Nation.
              (7) Comanche Nation College.
              [(4)] (8) College of Menominee Nation.
              [(5) Crownpoint Institute of Technology.]
              [(6)] (9) D-Q University.
              [(7)] (10) Dine College.
              [(9)] (11) Fond du Lac Tribal and Community College.
              [(10) Fort Belknap College.]
              [(11)] (12) Fort Berthold Community College.
              [(12)] (13) Fort Peck Community College.
              [(13)] (14) Haskell Indian Nations University.
              [(34)] (15) Ilisagvik College.
              [(14)] (16) Institute of American Indian and Alaska
            Native Culture and Arts Development.
              (17) Keweenaw Bay Ojibwa Community College.
              [(15)] (18) Lac Courte Oreilles Ojibwa Community
            College.
              [(16)] (19) Leech Lake Tribal College.
              [(17)] (20) Little Big Horn College.
              [(18)] (21) Little Priest Tribal College.
              (22) Navajo Technical College.
              [(19)] (23) Nebraska Indian Community College.
              [(20)] (24) Northwest Indian College.
              [(21)] (25) Oglala Lakota College.
              [(22)] (26) Saginaw Chippewa Tribal College.
              [(24)] (27) Salish Kootenai College.
              [(25)] (28) Sinte Gleska University.
              [(26)] (29) Sisseton Wahpeton [Community] College.
              [(27) Si Tanka/Huron University.]
              [(28)] (30) Sitting Bull College.
              [(29)] (31) Southwestern Indian Polytechnic
            Institute.
              [(30)] (32) Stone Child College.
              [(23)] (33) Tohono O`odham Community College.
              [(31)] (34) Turtle Mountain Community College.
              [(32)] (35) United Tribes Technical College.
              [(33)] (36) White Earth Tribal and Community College.

               *       *       *       *       *       *       *

    SEC. 533. LAND-GRANT STATUS FOR 1994 INSTITUTIONS.

      (a) * * *
      (b) Authorization of Appropriations.--There are authorized to
    be appropriated such sums as are necessary to carry out this
    section for each of fiscal years 1996 through [2012] 2017.
    Amounts appropriated pursuant to this section shall be held and
    considered to have been granted to 1994 Institutions to
    establish an endowment pursuant to subsection (c).

               *       *       *       *       *       *       *

    SEC. 535. INSTITUTIONAL CAPACITY BUILDING GRANTS.

      (a) * * *
      (b) In General.--
              (1) Institutional capacity building grants.--For each
            of fiscal years 1996 through [2012] 2017, the Secretary
            shall make two or more institutional capacity building
            grants to assist 1994 Institutions with constructing,
            acquiring, and remodeling buildings, laboratories, and
            other capital facilities (including fixtures and
            equipment) necessary to conduct instructional
            activities more effectively in agriculture and
            sciences.

               *       *       *       *       *       *       *

      (c) Authorization of Appropriations.--There are authorized to
    be appropriated to the Department of Agriculture to carry out
    this section, such sums as are necessary for each of fiscal
    years 2002 through [2012] 2017.

    SEC. 536. RESEARCH GRANTS.

      (a) * * *
      (b) Requirements.--Grant applications submitted under this
    section shall certify that the research to be conducted will be
    performed under a cooperative agreement [with at least 1 other
    land-grant college or university (exclusive of another 1994
    Institution).] with--
              (1) the Agricultural Research Service of the
            Department of Agriculture; or
              (2) at least 1--
                      (A) other land-grant college or university
                    (exclusive of another 1994 Institution);
                      (B) non-land-grant college of agriculture (as
                    defined in section 1404 of the National
                    Agricultural Research, Extension, and Teaching
                    Policy Act of 1977 (7 U.S.C. 3103)); or
                      (C) cooperating forestry school (as defined
                    in that section).
      (c) Authorization of Appropriations.--There are authorized to
    be appropriated such sums as are necessary to carry out this
    section for each of fiscal years 1999 through [2012] 2017.
    Amounts appropriated shall remain available until expended.

               *       *       *       *       *       *       *

                                  ----------

                            RESEARCH FACILITIES ACT

               *       *       *       *       *       *       *
    SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

      (a) In General.--Subject to subsection (b), there are
    authorized to be appropriated such sums as are necessary for
    each of fiscal years 1996 through [2012] 2017 for the study,
    plan, design, structure, and related costs of agricultural
    research facilities under this Act.

               *       *       *       *       *       *       *

                                  ----------

                   RENEWABLE RESOURCES EXTENSION ACT OF 1978

               *       *       *       *       *       *       *
                          APPROPRIATIONS AUTHORIZATION

      Sec. 6. There is authorized to be appropriated to carry out
    this Act $30,000,000 for each of fiscal years 2002 through
    [2012] 2017. Generally, States shall be eligible for funds
    appropriated under this Act according to the respective
    capabilities of their private forests and rangelands for
    yielding renewable resources and relative needs for such
    resources identified in the periodic Renewable Resource
    Assessment provided for in section 3 of the Forest and
    Rangeland Renewable Resources Planning Act of 1974 and the
    periodic appraisal of land and water resources provided for in
    section 5 of the Soil and Water Resources Conservation Act of
    1977.

               *       *       *       *       *       *       *

                                 EFFECTIVE DATE

      Sec. 8. The provisions of this Act shall be effective for the
    period beginning October 1, 1978, and ending September 30,
    [2012] 2017.
                                  ----------

                        NATIONAL AQUACULTURE ACT OF 1980

               *       *       *       *       *       *       *
                       AUTHORIZATIONS FOR APPROPRIATIONS

      Sec. 10. For purposes of carrying out the provisions of this
    Act, there are authorized to be appropriated--
              (1) to the Department of Agriculture, $1,000,000 for
            each of fiscal years 1991 through [2012] 2017;
              (2) to the Department of Commerce, $1,000,000 for
            each of fiscal years 1991 through [2012] 2017; and
              (3) to the Department of Interior, $1,000,000 for
            each of fiscal years 1991 through [2012] 2017.
    Funds authorized by this section shall be in addition to, and
    not in lieu of, funds authorized by any other Act.

               *       *       *       *       *       *       *

                                  ----------

                         SECTION 8 OF PUBLIC LAW 87-788

      Sec. 8. The term ``State'' as used in this subchapter shall
    include Puerto Rico, the Virgin Islands, [and Guam] Guam, and
    the Commonwealth of the Northern Mariana Islands.
                                  ----------

      SECTION 308 OF THE FEDERAL CROP INSURANCE REFORM AND DEPARTMENT OF
                     AGRICULTURE REORGANIZATION ACT OF 1994

    SEC. 308. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.

      (a) * * *
      (b) Requirements.--
              (1) * * *

               *       *       *       *       *       *       *

              (6) Termination of authority.--This section and the
            authority provided by this section terminate--
                      (A) on the date that is [5 years] 9 years
                    after the date of enactment of this section; or

               *       *       *       *       *       *       *

      (d) Administration.--
              (1) * * *
              (2) Reports.--Not later than [1, 3, and 5 years] 5,
            7, and 9 years after the date of enactment of this
            section, the Secretary shall submit to the Committee on
            Agriculture of the House of Representatives and the
            Committee on Agriculture, Nutrition, and Forestry of
            the Senate a report describing the implementation of
            the program under this section, including--
                      (A) * * *

               *       *       *       *       *       *       *

                                  ----------

                              ACT OF MARCH 4, 1927

               *       *       *       *       *       *       *
    SEC. 6. CONCESSIONS, FEES, AND VOLUNTARY SERVICES.

      (a) In General.--Notwithstanding the Federal Property and
    Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) and
    section 321 of the Act of June 30, 1932 (40 U.S.C. 303b), the
    Secretary of Agriculture, in furtherance of the mission of the
    National Arboretum, may--
              (1) negotiate agreements granting concessions at the
            National Arboretum to nonprofit scientific or
            educational organizations the interests of which are
            complementary to the mission of the National Arboretum
            or nonprofit organizations that support the purpose of
            the National Arboretum, except that the net proceeds of
            the organizations from the concessions shall be used
            exclusively for research and educational work for the
            benefit of the National Arboretum;

               *       *       *       *       *       *       *

      (d) Recognition of Donors.--A non-profit organization granted
    a concession under subsection (a)(1) may recognize donors if
    such recognition is approved in advance by the Secretary.

               *       *       *       *       *       *       *

                                  ----------

                  COOPERATIVE FORESTRY ASSISTANCE ACT OF 1978

               *       *       *       *       *       *       *
    [SEC. 4. FOREST LAND ENHANCEMENT PROGRAM.

      [(a) Establishment.--
              [(1) In general.--The Secretary of Agriculture shall
            establish a forest land enhancement program--
                      [(A) to provide financial assistance to State
                    foresters; and
                      [(B) to encourage the long-term
                    sustainability of nonindustrial private forest
                    lands in the United States by assisting the
                    owners of nonindustrial private forest lands,
                    through State foresters, in more actively
                    managing the nonindustrial private forest lands
                    and related resources of those owners through
                    the use of State, Federal, and private sector
                    resource management expertise, financial
                    assistance, and educational programs.
              [(2) Coordination and consultation.--The Secretary,
            acting through State foresters, shall implement the
            program--
                      [(A) in coordination with the State Forest
                    Stewardship Coordinating Committees; and
                      [(B) in consultation with other Federal,
                    State, and local natural resource management
                    agencies, institutions of higher education, and
                    a broad range of private sector interests.
      [(b) Program Objectives.--In implementing the program, the
    Secretary shall target resources to achieve the following
    objectives:
              [(1) Investing 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, soil, water, and air quality, wetlands, and
            riparian buffers.
              [(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) Reducing the risks and helping restore, recover,
            and mitigate the damage to forests caused by fire,
            insects, invasive species, disease, and damaging
            weather.
              [(4) Increasing and enhancing carbon sequestration
            opportunities.
              [(5) Enhancing implementation of agroforestry
            practices.
              [(6) Maintaining and enhancing the forest landbase
            and leverage State and local financial and technical
            assistance to owners that promote the same conservation
            and environmental values.
              [(7) Preserving the aesthetic quality of
            nonindustrial private forest lands and providing
            opportunities for outdoor recreation.
      [(c) State Priority Plan.--
              [(1) Development.--The State Forester and State
            Forest Stewardship Coordinating Committee of a State
            shall jointly develop and submit to the Secretary a
            State priority plan that is intended to promote forest
            management objectives in that State.
              [(2) Report.--Not later than September 30, 2006, each
            State that implemented a State priority plan shall
            submit to the Secretary a report describing the status
            of all activities and practices funded under the
            program as of that date.
      [(d) Owner Eligibility for Assistance.--
              [(1) Eligibility criteria.--To be eligible for cost-
            share assistance under the program, an owner of
            nonindustrial private forest lands shall agree--
                      [(A) to develop and implement, in cooperation
                    with a State forester, another State official,
                    or a professional resources manager, a
                    management plan that--
                              [(i) except as provided in paragraph
                            (2) or (3), provides for the treatment
                            of not more than 1,000 acres of
                            nonindustrial private forest lands;
                              [(ii) is approved by the State
                            forester; and
                              [(iii) addresses site specific
                            activities and practices; and
                      [(B) to implement approved activities and
                    practices in a manner consistent with the
                    management plan for a period of not less than
                    10 years, unless the State forester approves a
                    modification to the plan.
              [(2) Public benefit exception.--The Secretary may
            increase the acreage limitation specified in paragraph
            (1)(A)(i) to not more than 5,000 acres for an owner of
            nonindustrial private forest lands if the Secretary, in
            consultation with the State forester, determines that
            significant public benefits will accrue as a result of
            the provision of cost-share assistance under the
            program for the treatment of the additional acreage.
              [(3) Plan development exception.--An owner may
            receive cost-share assistance under the program for the
            purpose of developing a management plan under
            subsection (e) that provides for the treatment of
            acreage in excess of the acreage limitations specified
            in paragraphs (1)(A)(i) and (2), except that the
            owner's eligibility for cost-share assistance to
            implement approved activities and practices under the
            management plan remains subject to the acreage
            limitation specified in paragraph (1)(A)(i) or, if the
            Secretary makes the determination described in
            paragraph (2), the acreage limitation specified in that
            paragraph.
      [(e) Management Plan.--
              [(1) Submission and content.--An owner of
            nonindustrial private forest lands that seeks to
            participate in the program shall submit to the State
            forester of the State in which the lands are located a
            management plan that--
                      [(A) identifies and describes projects and
                    activities to be carried out by the owner to
                    protect or enhance soil, water, air, range and
                    aesthetic quality, recreation, timber, water,
                    wetland, or fish and wildlife resources on the
                    lands in a manner that is compatible with the
                    objectives of the owner;
                      [(B) addresses any criteria established by
                    the State and the applicable Committee; and
                      [(C) meets the other requirements of this
                    section.
              [(2) Lands covered.--At a minimum, the management
            plan shall apply to those portions of the nonindustrial
            private forest lands of the owner on which any project
            or activity funded under the program will be carried
            out. In a case in which a project or activity may
            affect acreage outside the portion of the land on which
            the project or activity is carried out, the management
            plan shall apply to all lands of the owner that are in
            forest cover and may be affected by the project or
            activity.
      [(f) Approved Activities.--
              [(1) State list.--The Secretary shall develop for
            each State a list of approved forest activities and
            practices eligible for cost-share assistance that meets
            the purposes of the program. The Secretary shall
            develop the list for a State in consultation with the
            State forester and the Committee for that State.
              [(2) Types of activities.--Approved activities and
            practices under paragraph (1) may consist of activities
            and practices for the following purposes:
                      [(A) The establishment, management,
                    maintenance, and restoration of forests for
                    shelterbelts, windbreaks, aesthetic quality,
                    and other conservation purposes.
                      [(B) The sustainable growth and management of
                    forests for timber production.
                      [(C) The restoration, use, and enhancement of
                    forest wetland and riparian areas.
                      [(D) The protection of water quality and
                    watersheds through--
                              [(i) the planting of trees in
                            riparian areas; and
                              [(ii) the enhanced management and
                            maintenance of native vegetation on
                            land vital to water quality.
                      [(E) The management, maintenance,
                    restoration, or development of habitat for
                    plants, fish, and wildlife.
                      [(F) The control, detection, monitoring, and
                    prevention of the spread of invasive species
                    and pests on nonindustrial private forest
                    lands.
                      [(G) The restoration of nonindustrial private
                    forest land affected by invasive species and
                    pests.
                      [(H) The conduct of other management
                    activities, such as the reduction of hazardous
                    fuels, that reduce the risks to forests posed
                    by, and that restore, recover, and mitigate the
                    damage to forests caused by, fire or any other
                    catastrophic event, as determined by the
                    Secretary.
                      [(I) The development of management plans;
                      [(J) The conduct of energy conservation and
                    carbon sequestration activities.
                      [(K) The conduct of other activities approved
                    by the Secretary, in consultation with the
                    State forester and the appropriate Committees.
      [(g) Reimbursement of Eligible Activities.--
              [(1) In general.--In the case of an eligible owner
            that has an approved management plan, the Secretary
            shall share the cost of implementing the approved
            activities and practices that the Secretary determines
            are appropriate.
              [(2) Rate.--The Secretary shall determine the
            appropriate reimbursement rate for cost-share payments
            under paragraph (1) and the schedule for making those
            payments.
              [(3) Maximum cost share.--The Secretary shall not
            make cost-share payments under this subsection to an
            owner in an amount in excess of 75 percent, or a lower
            percentage as determined by the State forester, of the
            total cost to the owner to implement the approved
            activities and practices under the management plan.
              [(4) Aggregate payment limit.--The Secretary shall
            determine the maximum aggregate amount of cost-share
            payments that an owner may receive under the program.
              [(5) Consultation.--The Secretary shall make
            determinations under this subsection in consultation
            with the State forester.
      [(h) 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 an
            approved activity or practice specified in the
            management plan for which the 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.
      [(i) Distribution of Cost-Share Funds.--The Secretary, acting
    through the State foresters, shall distribute funds available
    for cost sharing under the program only after giving
    appropriate consideration to the following factors:
              [(1) The public benefits that would result from the
            distribution.
              [(2) The total acreage of nonindustrial private
            forest lands in each State.
              [(3) The potential productivity of those lands, as
            determined by the Secretary.
              [(4) The number of owners eligible for cost sharing
            in each State.
              [(5) The opportunities to enhance nontimber resources
            on those lands, including--
                      [(A) the protection of riparian buffers and
                    forest wetland;
                      [(B) the preservation of fish and wildlife
                    habitat;
                      [(C) the enhancement of soil, air, and water
                    quality; and
                      [(D) the preservation of aesthetic quality
                    and opportunities for outdoor recreation.
              [(6) The anticipated demand for timber and nontimber
            resources in each State.
              [(7) The need to improve forest health to minimize
            the damaging effects of catastrophic fire, insects,
            disease, or weather.
              [(8) The need and demand for agroforestry practices
            in each State.
              [(9) The need to maintain and enhance the forest
            landbase.
              [(10) The need for afforestation, reforestation, and
            timber stand improvement.
      [(j) Availability of Funds.--The Secretary shall use
    $100,000,000 of funds of the Commodity Credit Corporation to
    carry out the Program during the period beginning on the date
    of enactment of the Farm Security and Rural Investment Act of
    2002 and ending on September 30, 2007.
      [(k) 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 by any nonindustrial private
                    individual, group, association, corporation,
                    Indian tribe, or other private legal entity so
                    long as the individual, group, association,
                    corporation, tribe, or entity has definitive
                    decision-making authority over the lands.
              [(2) Committee.--The terms ``State Forest Stewardship
            Coordinating Committee'' and ``Committee'' means a
            State Forest Stewardship Coordinating Committee
            established under section 19(b).
              [(3) Indian tribe.--The term ``Indian tribe'' has the
            meaning given the term in section 4 of the Indian Self-
            Determination and Education Assistance Act (25 U.S.C.
            450b).
              [(4) Owner.--The term ``owner'' means an owner of
            nonindustrial private forest land.
              [(5) Program.--The term ``program'' means the forest
            land enhancement program established by this section.
              [(6) Secretary.--The term ``Secretary'' means the
            Secretary of Agriculture.
              [(7) State forester.--The term ``State forester''
            means the director or other head of a State Forestry
            Agency or equivalent State official.]

               *       *       *       *       *       *       *

    [SEC. 6. WATERSHED FORESTRY ASSISTANCE PROGRAM.

      [(a) Definition of Nonindustrial Private Forest Land.--In
    this section, the term ``nonindustrial private forest land''
    means rural land, as determined by the Secretary, that--
              [(1) has existing tree cover or that is suitable for
            growing trees; and
              [(2) is owned by any nonindustrial private
            individual, group, association, corporation, or other
            private legal entity, that has definitive
            decisionmaking authority over the land.
      [(b) General Authority and Purpose.--The Secretary, acting
    through the Chief of the Forest Service and (where appropriate)
    through the National Institute of Food and Agriculture, may
    provide technical, financial, and related assistance to State
    foresters, equivalent State officials, or cooperative extension
    officials at land grant colleges and universities and 1890
    institutions for the purpose of expanding State forest
    stewardship capacities and activities through State forestry
    best-management practices and other means at the State level to
    address watershed issues on non-Federal forested land and
    potentially forested land.
      [(c) Technical Assistance To Protect Water Quality.--
              [(1) In general.--The Secretary, in cooperation with
            State foresters or equivalent State officials, shall
            engage interested members of the public, including
            nonprofit organizations and local watershed councils,
            to develop a program of technical assistance to protect
            water quality described in paragraph (2).
              [(2) Purpose of program.--The program under this
            subsection shall be designed--
                      [(A) to build and strengthen watershed
                    partnerships that focus on forested landscapes
                    at the State, regional, and local levels;
                      [(B) to provide State forestry best-
                    management practices and water quality
                    technical assistance directly to owners of
                    nonindustrial private forest land;
                      [(C) to provide technical guidance to land
                    managers and policymakers for water quality
                    protection through forest management;
                      [(D) to complement State and local efforts to
                    protect water quality and provide enhanced
                    opportunities for consultation and cooperation
                    among Federal and State agencies charged with
                    responsibility for water and watershed
                    management; and
                      [(E) to provide enhanced forest resource data
                    and support for improved implementation and
                    monitoring of State forestry best-management
                    practices.
              [(3) Implementation.--In the case of a participating
            State, the program of technical assistance shall be
            implemented by State foresters or equivalent State
            officials.
      [(d) Watershed Forestry Cost-Share Program.--
              [(1) In general.--The Secretary shall establish a
            watershed forestry cost-share program--
                      [(A) which shall be--
                              [(i) administered by the Forest
                            Service; and
                              [(ii) implemented by State foresters
                            or equivalent State officials in
                            participating States; and
                      [(B) under which funds or other support
                    provided to participating States shall be made
                    available for State forestry best-management
                    practices programs and watershed forestry
                    projects.
              [(2) Watershed forestry projects.--The State
            forester, an equivalent State official of a
            participating State, or a Cooperative Extension
            official at a land grant college or university or 1890
            institution, in coordination with the State Forest
            Stewardship Coordinating Committee established under
            section 19(b) (or an equivalent committee) for that
            State, shall make awards to communities, nonprofit
            groups, and owners of nonindustrial private forest land
            under the program for watershed forestry projects
            described in paragraph (3).
              [(3) Project elements and objectives.--A watershed
            forestry project shall accomplish critical forest
            stewardship, watershed protection, and restoration
            needs within a State by demonstrating the value of
            trees and forests to watershed health and condition
            through--
                      [(A) the use of trees as solutions to water
                    quality problems in urban and rural areas;
                      [(B) community-based planning, involvement,
                    and action through State, local, and nonprofit
                    partnerships;
                      [(C) application of and dissemination of
                    monitoring information on forestry best-
                    management practices relating to watershed
                    forestry;
                      [(D) watershed-scale forest management
                    activities and conservation planning; and
                      [(E)(i) the restoration of wetland (as
                    defined by the States) and stream-side forests;
                    and
                      [(ii) the establishment of riparian
                    vegetative buffers.
              [(4) Cost-sharing.--
                      [(A) Federal share.--
                              [(i) Funds under this subsection.--
                            Funds provided under this subsection
                            for a watershed forestry project may
                            not exceed 75 percent of the cost of
                            the project.
                              [(ii) Other federal funds.--The
                            percentage of the cost of a project
                            described in clause (i) that is not
                            covered by funds made available under
                            this subsection may be paid using other
                            Federal funding sources, except that
                            the total Federal share of the costs of
                            the project may not exceed 90 percent.
                      [(B) Form.--The non-Federal share of the
                    costs of a project may be provided in the form
                    of cash, services, or other in-kind
                    contributions.
              [(5) Prioritization.--The State Forest Stewardship
            Coordinating Committee for a State, or equivalent State
            committee, shall prioritize watersheds in that State to
            target watershed forestry projects funded under this
            subsection.
              [(6) Watershed forester.--Financial and technical
            assistance shall be made available to the State
            Forester or equivalent State official to create a State
            watershed or best-management practice forester position
            to--
                      [(A) lead statewide programs; and
                      [(B) coordinate watershed-level projects.
      [(e) Distribution.--
              [(1) In general.--Of the funds made available for a
            fiscal year under subsection (g), the Secretary shall
            use--
                      [(A) at least 75 percent of the funds to
                    carry out the cost-share program under
                    subsection (d); and
                      [(B) the remainder of the funds to deliver
                    technical assistance, education, and planning,
                    at the local level, through the State Forester
                    or equivalent State official.
              [(2) Special considerations.--Distribution of funds
            by the Secretary among States under paragraph (1) shall
            be made only after giving appropriate consideration
            to--
                      [(A) the acres of agricultural land,
                    nonindustrial private forest land, and highly
                    erodible land in each State;
                      [(B) the miles of riparian buffer needed;
                      [(C) the miles of impaired stream segments
                    and other impaired water bodies where forestry
                    practices can be used to restore or protect
                    water resources;
                      [(D) the number of owners of nonindustrial
                    private forest land in each State; and
                      [(E) water quality cost savings that can be
                    achieved through forest watershed management.
      [(f) Willing Owners.--
              [(1) In general.--Participation of an owner of
            nonindustrial private forest land in the watershed
            forestry assistance program under this section is
            voluntary.
              [(2) Written consent.--The watershed forestry
            assistance program shall not be carried out on
            nonindustrial private forest land without the written
            consent of the owner of, or entity having definitive
            decisionmaking over, the nonindustrial private forest
            land.
      [(g) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $15,000,000 for each
    of fiscal years 2004 through 2008.]

    SEC. 7. FOREST LEGACY PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      [(m) Appropriation.--There are authorized to be appropriated
    such sums as may be necessary to carry out this section.]
      (m) Authorization of Appropriations.--To carry out this
    section, there are authorized to be appropriated--
              (1) such sums as are necessary for fiscal year 2012;
            and
              (2) $55,000,000 for each of fiscal years 2013 through
            2017.

    SEC. 7A. COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.

      (a) * * *

               *       *       *       *       *       *       *

      [(g) Authorization of Appropriations.--There are authorized
    to be appropriated such sums as are necessary to carry out this
    section.]
      (g) Authorization of Appropriations.--To carry out this
    section, there are authorized to be appropriated--
              (1) such sums as are necessary for fiscal year 2012;
            and
              (2) $1,500,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

    [SEC. 18. COOPERATIVE NATIONAL FOREST PRODUCTS MARKETING PROGRAM.

      [(a) Findings and Purposes.--
              [(1) Findings.--Congress finds that--
                      [(A) the health and vitality of the domestic
                    forest products industry is important to the
                    well-being of the economy of the United States;
                      [(B) the domestic forest products industry
                    has a significant potential for expansion in
                    both domestic and foreign markets;
                      [(C) many small-sized to medium-sized forest
                    products firms lack the tools that would enable
                    them to meet the increasing challenge of
                    foreign competition in domestic and foreign
                    markets; and
                      [(D) a new cooperative forest products
                    marketing program will improve the
                    competitiveness of the United States forest
                    products industry.
              [(2) Purposes.--The purposes of this section are to--
                      [(A) provide direct technical assistance to
                    the United States forest products industry to
                    improve marketing activities;
                      [(B) provide cost-share grants to States to
                    support State and regional forest products
                    marketing programs; and
                      [(C) target assistance to small-sized and
                    medium-sized producers of solid wood and
                    processed wood products, including pulp.
      [(b) Program Authority.--
              [(1) In general.--The Secretary shall establish a
            cooperative national forest products marketing program
            under this Act that provides--
                      [(A) technical assistance to States,
                    landowners, and small-sized to medium-sized
                    forest products firms on ways to improve
                    domestic and foreign markets for forest
                    products; and
                      [(B) grants of financial assistance with
                    matching requirements to the States to assist
                    in State and regional forest products marketing
                    efforts targeted to aid small-sized to medium-
                    sized forest products firms and private,
                    nonindustrial forest landowners.
              [(2) Interstate cooperative agreements.--Grant
            agreements shall encourage the establishment of
            interstate cooperative agreements by the States for the
            purpose of promoting the development of domestic and
            foreign markets for forest products.
      [(c) Limitations.--
              [(1) Cooperation with other federal agencies.--In
            carrying out this section, the Secretary shall
            cooperate with Federal departments and agencies to
            avoid the duplication of efforts and to increase
            program efficiency.
              [(2) Domestic program.--The program authorized under
            this section shall be carried out within the United
            States and not be extended to Department of Agriculture
            activities in foreign countries.
      [(d) Authorization for Appropriations.--There are authorized
    to be appropriated $5,000,000 for each of the fiscal years 1988
    through 1991, to carry out this section.
      [(e) Program Report.--The Secretary shall report to Congress
    annually on the activities taken under the marketing program
    established under this section. A final report including
    recommendations for program changes and the need and
    desirability of the reauthorization of this authority, and
    required levels of funding, shall be submitted to Congress not
    later than September 30, 1990.]

               *       *       *       *       *       *       *

                                  ----------

                    HEALTHY FORESTS RESTORATION ACT OF 2003

               *       *       *       *       *       *       *
    TITLE III--WATERSHED FORESTRY ASSISTANCE

               *       *       *       *       *       *       *

    [SEC. 303. TRIBAL WATERSHED FORESTRY ASSISTANCE.

      [(a) In General.--The Secretary of Agriculture (referred to
    in this section as the ``Secretary''), acting through the Chief
    of the Forest Service, shall provide technical, financial, and
    related assistance to Indian tribes for the purpose of
    expanding tribal stewardship capacities and activities through
    tribal forestry best-management practices and other means at
    the tribal level to address watershed issues on land under the
    jurisdiction of or administered by the Indian tribes.
      [(b) Technical Assistance To Protect Water Quality.--
              [(1) In general.--The Secretary, in cooperation with
            Indian tribes, shall develop a program to provide
            technical assistance to protect water quality, as
            described in paragraph (2).
              [(2) Purpose of program.--The program under this
            subsection shall be designed--
                      [(A) to build and strengthen watershed
                    partnerships that focus on forested landscapes
                    at the State, regional, tribal, and local
                    levels;
                      [(B) to provide tribal forestry best-
                    management practices and water quality
                    technical assistance directly to Indian tribes;
                      [(C) to provide technical guidance to tribal
                    land managers and policy makers for water
                    quality protection through forest management;
                      [(D) to complement tribal efforts to protect
                    water quality and provide enhanced
                    opportunities for consultation and cooperation
                    among Federal agencies and tribal entities
                    charged with responsibility for water and
                    watershed management; and
                      [(E) to provide enhanced forest resource data
                    and support for improved implementation and
                    monitoring of tribal forestry best-management
                    practices.
      [(c) Watershed Forestry Program.--
              [(1) In general.--The Secretary shall establish a
            watershed forestry program in cooperation with Indian
            tribes.
              [(2) Programs and projects.--Funds or other support
            provided under the program shall be made available for
            tribal forestry best-management practices programs and
            watershed forestry projects.
              [(3) Annual awards.--The Secretary shall annually
            make awards to Indian tribes to carry out this
            subsection.
              [(4) Project elements and objectives.--A watershed
            forestry project shall accomplish critical forest
            stewardship, watershed protection, and restoration
            needs within land under the jurisdiction of or
            administered by an Indian tribe by demonstrating the
            value of trees and forests to watershed health and
            condition through--
                      [(A) the use of trees as solutions to water
                    quality problems;
                      [(B) application of and dissemination of
                    monitoring information on forestry best-
                    management practices relating to watershed
                    forestry;
                      [(C) watershed-scale forest management
                    activities and conservation planning;
                      [(D) the restoration of wetland and stream-
                    side forests and the establishment of riparian
                    vegetative buffers; and
                      [(E) tribal-based planning, involvement, and
                    action through State, tribal, local, and
                    nonprofit partnerships.
              [(5) Prioritization.--An Indian tribe that
            participates in the program under this subsection shall
            prioritize watersheds in land under the jurisdiction of
            or administered by the Indian tribe to target watershed
            forestry projects funded under this subsection.
              [(6) Watershed forester.--The Secretary may provide
            to Indian tribes under this section financial and
            technical assistance to establish a position of tribal
            forester to lead tribal programs and coordinate small
            watershed-level projects.
      [(d) Distribution.--The Secretary shall devote--
              [(1) at least 75 percent of the funds made available
            for a fiscal year under subsection (e) to the program
            under subsection (c); and
              [(2) the remainder of the funds to deliver technical
            assistance, education, and planning in the field to
            Indian tribes.
      [(e) Authorization of Appropriations.--There is authorized to
    be appropriated to carry out this section $2,500,000 for each
    of fiscal years 2004 through 2008.]

               *       *       *       *       *       *       *

    TITLE V--HEALTHY FORESTS RESERVE PROGRAM

               *       *       *       *       *       *       *

    SEC. 508. FUNDING.

      (a) [In General] Fiscal Years 2009 Through 2012.--Of the
    funds of the Commodity Credit Corporation, the Secretary of
    Agriculture shall make available $9,750,000 for each of fiscal
    years 2009 through 2012 to carry out this title.
      (b) Fiscal Years 2013 Through 2017.--There is authorized to
    be appropriated to the Secretary of Agriculture to carry out
    this section $9,750,000 for each of fiscal years 2013 through
    2017.
      (c) Additional Source of Funds.--In addition to funds
    appropriated pursuant to the authorization of appropriations in
    subsection (b) for a fiscal year, the Secretary may use such
    amount of the funds appropriated for that fiscal year to carry
    out the Soil Conservation and Domestic Allotment Act (16 U.S.C.
    590a et seq.) as the Secretary determines necessary to cover
    the cost of technical assistance, management, and enforcement
    responsibilities for land enrolled in the healthy forests
    reserve program pursuant to subsections (a) and (b) of section
    504.
      [(b)] (d) Duration of Availability.--The funds made available
    under subsection (a) shall remain available until expended.

               *       *       *       *       *       *       *

                                  ----------

      SECTION 322 OF THE DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES
                            APPROPRIATIONS ACT, 1993

    [SEC. 322. FOREST SERVICE DECISIONMAKING AND APPEALS REFORM.

      [(a) In General.--In accordance with this section, the
    Secretary of Agriculture, acting through the Chief of the
    Forest Service, shall establish a notice and comment process
    for proposed actions of the Forest Service concerning projects
    and activities implementing land and resource management plans
    developed under the Forest and Rangeland Renewable Resources
    Planning Act of 1974 (16 U.S.C. 1601 et seq.) and shall modify
    the procedure for appeals of decisions concerning such
    projects.
      [(b) Notice and Comment.--
              [(1) Notice.--Prior to proposing an action referred
            to in subsection (a), the Secretary shall give notice
            of the proposed action, and the availability of the
            action for public comment by--
                      [(A) promptly mailing notice about the
                    proposed action to any person who has requested
                    it in writing, and to persons who are known to
                    have participated in the decisionmaking
                    process; and,
                      [(B)(i) in the case of an action taken by the
                    Chief of the Forest Service, publishing notice
                    of action in the Federal Register; or
                      [(ii) in the case of any other action
                    referred to in subsection (a), publishing
                    notice of the action in a newspaper of general
                    circulation that has previously been identified
                    in the Federal Register as the newspaper in
                    which notice under this paragraph may be
                    published.
              [(2) Comment.--The Secretary shall accept comments on
            the proposed action within 30 days after publication of
            the notice in accordance with paragraph (1).
      [(c) Right to Appeal.--Not later than 45 days after the date
    of issuance of a decision of the Forest Service concerning
    actions referred to in subsection (a), a person who was
    involved in the public comment process under subsection (b)
    through submission of written or oral comments or by otherwise
    notifying the Forest Service of their interest in the proposed
    action may file an appeal.
      [(d) Disposition of an Appeal.--
              [(1) Informal disposition.--
                      [(A) In general.--Subject to subparagraph
                    (B), a designated employee of the Forest
                    Service shall offer to meet with each
                    individual who files an appeal in accordance
                    with subsection (c) and attempt to dispose of
                    the appeal.
                      [(B) Time and location of the meeting.--Each
                    meeting in accordance with subparagraph (A)
                    shall take place--
                              [(i) not later than 15 days after the
                            closing date for filing an appeal; and
                              [(ii) at a location designated by the
                            Chief of the Forest Service that is in
                            the vicinity of the lands affected by
                            the decision.
              [(2) Formal review.--If the appeal is not disposed of
            in accordance with paragraph (1), an appeals review
            officer designated by the Chief of the Forest Service
            shall review the appeal and recommend in writing, to
            the official responsible for deciding the appeal, the
            appropriate disposition of the appeal. The official
            responsible for deciding the appeal shall then decide
            the appeal. The appeals review officer shall be a line
            officer at least at the level of the agency official
            who made the initial decision on the project or
            activity that is under appeal, who has not participated
            in the initial decision and will not be responsible for
            implementation of the initial decision after the appeal
            is decided.
              [(3) Time for disposition.--Disposition of appeals
            under this subsection shall be completed not later than
            30 days after the closing date for filing of an appeal,
            provided that the Forest Service may extend the closing
            date by an additional 15 days.
              [(4) If the Secretary fails to decide the appeal
            within the 45-day period, the decision on which the
            appeal is based shall be deemed to be a final agency
            action for the purpose of chapter 7 of title 5, United
            States Code.
      [(e) Stay.--Unless the Chief of the Forest Service determines
    that an emergency situation exists with respect to a decision
    of the Forest Service, implementation of the decision shall be
    stayed during the period beginning on the date of the
    decision--
              [(1) for 45 days, if an appeal is not filed, or
              [(2) for an additional 15 days after the date of the
            disposition of an appeal under this section, if the
            agency action is deemed final under subsection (d)(4).]
                                  ----------

                  GLOBAL CLIMATE CHANGE PREVENTION ACT OF 1990

               *       *       *       *       *       *       *
    TITLE XXIV--GLOBAL CLIMATE CHANGE

               *       *       *       *       *       *       *

    SEC. 2405. OFFICE OF INTERNATIONAL FORESTRY.

      (a) * * *

               *       *       *       *       *       *       *

      [(d) Authorization of Appropriations.--There are authorized
    to be appropriated for each of fiscal years 1996 through 2012
    such sums as are necessary to carry out this section.]
      (d) Authorization of Appropriations.--To carry out this
    section, there are authorized to be appropriated--
              (1) such sums as are necessary for each of fiscal
            years 1996 through 2012; and
              (2) $6,000,000 for each of fiscal years 2013 through
            2017.

               *       *       *       *       *       *       *

                                  ----------

      SECTION 347 OF THE DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES
                            APPROPRIATIONS ACT, 1999

                  STEWARDSHIP END RESULT CONTRACTING PROJECTS

      Sec. 347. (a) In General.--Until September 30, [2013] 2017,
    the Forest Service and the Bureau of Land Management, via
    agreement or contract as appropriate, may enter into
    stewardship contracting projects with private persons or other
    public or private entities to perform services to achieve land
    management goals for the national forests and the public lands
    that meet local and rural community needs.

               *       *       *       *       *       *       *

                                  ----------

                FARMER-TO-CONSUMER DIRECT MARKETING ACT OF 1976

               *       *       *       *       *       *       *
    SEC. 6. FARMERS' MARKET AND LOCAL FOOD PROMOTION PROGRAM.

      (a) Establishment.--The Secretary shall carry out a program,
    to be known as the ``Farmers' Market and Local Food Promotion
    Program'' (referred to in this section as the ``Program''), to
    make grants to eligible entities for projects to establish,
    expand, and promote [farmers' markets and to promote] direct
    producer-to-consumer marketing[.] and assist in the development
    of local food business enterprises.
      (b) Program Purposes.--
              [(1) In general.--The purposes of the Program are--
                      [(A) to increase domestic consumption of
                    agricultural commodities by improving and
                    expanding, or assisting in the improvement and
                    expansion of, domestic farmers' markets,
                    roadside stands, community-supported
                    agriculture programs, agri-tourism activities,
                    and other direct producer-to-consumer market
                    opportunities; and
                      [(B) to develop, or aid in the development
                    of, new farmers' markets, roadside stands,
                    community-supported agriculture programs, agri-
                    tourism activities, and other direct producer-
                    to-consumer marketing opportunities.]
              (1) In general.--The purposes of the Program are to
            increase domestic consumption of, and consumer access
            to, locally and regionally produced agricultural
            products by assisting in the development, improvement,
            and expansion of--
                      (A) domestic farmers' markets, roadside
                    stands, community-supported agriculture
                    programs, agritourism activities, and other
                    direct producer-to-consumer market
                    opportunities; and
                      (B) local and regional food business
                    enterprises that process, distribute,
                    aggregate, and store locally or regionally
                    produced food products.

               *       *       *       *       *       *       *

      (c) Eligible Entities.--An entity shall be eligible to
    receive a grant under the Program if the entity is--
              (1) an agricultural cooperative or other agricultural
            business entity or a producer network or association,
            including a community supported agriculture network or
            association;

               *       *       *       *       *       *       *

      (e) Priority.--In awarding grants under this section, the
    Secretary shall give priority to applications submitted by
    eligible entities that include proposals for projects that--
              (1) benefit underserved communities;
              (2) develop market opportunities for small and mid-
            sized farm and ranch operations; and
              (3) include a strategic plan to maximize the use of
            funds to build capacity for local and regional food
            systems in a community.
      (f) Funds Requirements for Eligible Entities.--
              (1) Matching funds.--An entity receiving a grant
            under this section for a project to carry out a purpose
            described in subsection (b)(1)(B) shall provide
            matching funds in the form of cash or an in-kind
            contribution in an amount equal to 25 percent of the
            total cost of such project.
              (2) Limitation on use of funds.--An eligible entity
            may not use a grant or other assistance provided under
            this section for the purchase, construction, or
            rehabilitation of a building or structure.
      [(e)] (g) Funding.--
              (1) In general.--Of the funds of the Commodity Credit
            Corporation, the Secretary shall use to carry out this
            section--
                      (A) * * *
                      (B) $5,000,000 for each of fiscal years 2009
                    through 2010; [and]
                      (C) $10,000,000 for each of fiscal years 2011
                    and 2012[.]; and
                      (D) $20,000,000 for each of fiscal years 2013
                    through 2017.
              [(2) Use of funds.--Not less than 10 percent of the
            funds used to carry out this section in a fiscal year
            under paragraph (1) shall be used to support the use of
            electronic benefits transfers for Federal nutrition
            programs at farmers' markets.]
              (2) Authorization of appropriations.--There are
            authorized to be appropriated to carry out this section
            $10,000,000 for each of fiscal years 2013 through 2017.
              (3) Use of funds.--Of the funds made available to
            carry out this section for a fiscal year, 50 percent of
            such funds shall be used for the purposes described in
            subparagraph (A) of subsection (b)(1) and 50 percent of
            such funds shall be used for the purposes described in
            subparagraph (B) of such subsection.
              (4) Limitation on administrative expenses.--Not more
            than 5 percent of the total amount made available to
            carry out this section for a fiscal year may be used
            for administrative expenses.
              [(3)] (5) Interdepartmental coordination.--In
            carrying out this subsection, the Secretary shall
            ensure coordination between the various agencies to the
            maximum extent practicable.
              [(4) Limitation.--Funds described in paragraph (2)--
                      [(A) may not be used for the ongoing cost of
                    carrying out any project; and
                      [(B) shall only be provided to eligible
                    entities that demonstrate a plan to continue to
                    provide EBT card access at 1 or more farmers'
                    markets following the receipt of the grant.]

               *       *       *       *       *       *       *

                                  ----------

                      ORGANIC FOODS PRODUCTION ACT OF 1990

               *       *       *       *       *       *       *
    TITLE XXI--ORGANIC CERTIFICATION

               *       *       *       *       *       *       *

    SEC. 2122. ADMINISTRATION.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Modernization and Technology Upgrade for National Organic
    Program.--The Secretary shall modernize database and technology
    systems of the national organic program.

    SEC. 2122A. INVESTIGATIONS AND ENFORCEMENT.

      (a) Investigation.--
              (1) In general.--The Secretary may take such
            investigative actions as the Secretary considers to be
            necessary to carry out this title--
                      (A) to verify the accuracy of any information
                    reported or made available under this title;
                    and
                      (B) to determine, with regard to actions,
                    practices, or information required under this
                    title, whether a person covered by this title
                    has committed a violation of any provision of
                    this title.
              (2) Investigative powers.--The Secretary may
            administer oaths and affirmations, subpoena witnesses,
            compel attendance of witnesses, take evidence, and
            require the production of any records required to be
            maintained under section 2112(d) or 2116(c) that are
            relevant to the investigation.
      (b) Unlawful Act.--It shall be unlawful and a violation of
    this title for any person covered by this title--
              (1) to refuse to provide information required by the
            Secretary under this title; or
              (2) to violate--
                      (A) a suspension or revocation of the organic
                    certification of a producer or handler; or
                      (B) a suspension or revocation of the
                    accreditation of a certifying agent.
      (c) Enforcement.--
              (1) Suspension.--
                      (A) In general.--The Secretary may, after
                    notice and opportunity for an expedited
                    administrative hearing, suspend the organic
                    certification of a producer or handler, or
                    accreditation of a certifying agent, if the
                    Secretary has reason to believe that a person
                    producing or handling an agricultural product,
                    or a certifying agent, has violated or is
                    violating any provision of this title. The
                    decision to suspend a certification under this
                    subparagraph by the Secretary may be appealed
                    to a United States district court not later
                    than 30 days after such decision is made and
                    shall not take effect until judicial review of
                    such decision is completed.
                      (B) Continuation of suspension through
                    appeal.--If the Secretary determines subsequent
                    to an investigation that a violation of this
                    title by a person covered by this title has
                    occurred, the suspension shall remain in effect
                    until the Secretary issues a revocation of the
                    certification of the person or of the
                    accreditation of the certifying agent, covered
                    by this title, after an expedited
                    administrative appeal under section 2121 has
                    been completed.
              (2) Revocation.--After notice and opportunity for an
            administrative appeal under section 2121, if a
            violation of this title is determined to have occurred,
            the Secretary shall revoke the organic certification of
            the producer or handler, or the accreditation of the
            certifying agent.
      (d) Appeal.--
              (1) In general.--A revocation of a certification or
            an accreditation under subsection (c)(2) shall be final
            and conclusive unless the affected person files an
            appeal of the revocation, if the affected person so
            elects, to a United States district court as provided
            in section 2121(b) not later than 30 days after the
            date of the revocation under subsection (c)(2).
              (2) Standard.--A revocation of a certification or an
            accreditation under subsection (c)(2) shall be set
            aside only if the revocation of such certification or
            such accreditation is clearly erroneous.
      (e) Noncompliance.--
              (1) In general.--If a person covered by this title
            fails to obey a revocation of a certification or an
            accreditation under subsection (c)(2) after such
            revocation has become final and conclusive or after the
            appropriate United States district court has entered a
            final judgment in favor of the Secretary, the United
            States may apply to the appropriate United States
            district court for enforcement of such revocation.
              (2) Enforcement.--If the court determines that the
            revocation was lawfully made and duly served and that
            the person violated the revocation, the court shall
            enforce the revocation.
              (3) Civil penalty.--If the court finds that the
            person violated the revocation of a certification or an
            accreditation under subsection (c)(2), the person shall
            be subject to one or more of the penalties provided in
            subsections (a) and (b) of section 2120.

    SEC. 2123. AUTHORIZATION OF APPROPRIATIONS.

      (a) * * *
      (b) National Organic Program.--Notwithstanding any other
    provision of law, in order to carry out activities under the
    national organic program established under this title, there
    are authorized to be appropriated--
              (1) * * *

               *       *       *       *       *       *       *

              (5) $11,000,000 for fiscal year 2012; [and]
              (6) $11,000,000 for each of fiscal years 2013 through
            2017; and
              [(6)] (7) in addition to those amounts, such
            additional sums as are necessary for fiscal year 2009
            and each fiscal year thereafter.
      (c) Modernization and Technology Upgrade for National Organic
    Program.--Of the funds of the Commodity Credit Corporation and
    in addition to any other funds made available to carry out
    section 2122(c), the Secretary shall use to carry out such
    section $5,000,000 for fiscal year 2013, to remain available
    until expended.
                                  ----------

                  SPECIALTY CROPS COMPETITIVENESS ACT OF 2004

               *       *       *       *       *       *       *
                 TITLE I--STATE ASSISTANCE FOR SPECIALTY CROPS

    SEC. 101. SPECIALTY CROP BLOCK GRANTS.

      (a) Availability and Purpose of Grants.--Using the funds made
    available under [subsection (j)] subsection (l), the Secretary
    of Agriculture shall make grants to States for each of the
    fiscal years 2005 through [2012] 2017 to be used by State
    departments of agriculture solely to enhance the
    competitiveness of specialty crops.
      [(b) Grants Based on Value of Production.--Subject to
    subsection (c), the amount of the grant for a fiscal year to a
    State under this section shall bear the same ratio to the total
    amount made available under subsection (j) for that fiscal year
    as the value of specialty crop production in the State during
    the preceding calendar year bears to the value of specialty
    crop production during the preceding calendar year in all
    States whose application for a grant for that fiscal year is
    accepted by the Secretary under subsection (f).]
      (b) Grants Based on Value and Acreage.--Subject to subsection
    (c), for each State whose application for a grant for a fiscal
    year that is accepted by the Secretary under subsection (f),
    the amount of the grant for such fiscal year to the State under
    this section shall bear the same ratio to the total amount made
    available under subsection (l)(1) for such fiscal year as--
              (1) the average of the most recent available value of
            specialty crop production in the State and the acreage
            of specialty crop production in the State, as
            demonstrated in the most recent Census of Agriculture
            data; bears to
              (2) the average of the most recent available value of
            specialty crop production in all States and the acreage
            of specialty crop production in all States, as
            demonstrated in the most recent Census of Agriculture
            data.

               *       *       *       *       *       *       *

      (j) Multistate Projects.--Not later than 180 days after the
    effective date of the Federal Agriculture Reform and Risk
    Management Act of 2012, the Secretary of Agriculture shall
    issue guidance for the purpose of making grants to multistate
    projects under this section for projects involving--
              (1) food safety;
              (2) plant pests and disease;
              (3) research;
              (4) crop-specific projects addressing common issues;
            and
              (5) any other area that furthers the purposes of this
            section, as determined by the Secretary.
      (k) Administration.--
              (1) Department.--The Secretary of Agriculture may not
            use more than 3 percent of the funds made available to
            carry out this section for a fiscal year for
            administrative expenses.
              (2) States.--A State receiving a grant under this
            section may not use more than 8 percent of the funds
            received under the grant for a fiscal year for
            administrative expenses.
      [(j)] (l) Funding.--[Of the funds]
              (1) In general.--Of the funds of the Commodity Credit
            Corporation, the Secretary of Agriculture shall make
            grants under this section, using--
                      [(1)] (A) $10,000,000 for fiscal year 2008;
                      [(2)] (B) $49,000,000 for fiscal year 2009;
                    [and]
                      [(3)] (C) $55,000,000 for each of fiscal
                    years 2010 through 2012[.]; and
                      (D) $70,000,000 for fiscal year 2013 and each
                    fiscal year thereafter.
              (2) Multistate projects.--Of the funds made available
            under paragraph (1), the Secretary may use to carry out
            subsection (j), to remain available until expended--
                      (A) $1,000,000 for fiscal year 2013;
                      (B) $2,000,000 for fiscal year 2014;
                      (C) $3,000,000 for fiscal year 2015;
                      (D) $4,000,000 for fiscal year 2016; and
                      (E) $5,000,000 for fiscal year 2017.

               *       *       *       *       *       *       *

                                  ----------

                                EXPORT APPLE ACT

               *       *       *       *       *       *       *
      Sec. 4. [Apples in] (a) Apples in less than carload lots as
    defined by the Secretary may, in his discretion, be shipped to
    any foreign country without complying with the provisions of
    this Act.
      (b) Apples may be shipped to Canada in bulk bins without
    complying with the provisions of this Act.

               *       *       *       *       *       *       *

      Sec. 9. That when used in this Act--
      (1) * * *

               *       *       *       *       *       *       *

      (5) The term ``bulk bin'' means a bin that contains a
    quantity of apples weighing more than 100 pounds.

               *       *       *       *       *       *       *

                                  ----------

                          AGRICULTURAL ADJUSTMENT ACT

    TITLE I--AGRICULTURAL ADJUSTMENT

               *       *       *       *       *       *       *

    Part 2--Commodity Benefits

               *       *       *       *       *       *       *

      Sec. 8e. (a) Subject to the provisions of subsections (c) and
    (d) and notwithstanding any other provision of law, whenever a
    marketing order issued by the Secretary of Agriculture pursuant
    to section 8c of this Act contains any terms or conditions
    regulating the grade, size, quality, or maturity of tomatoes,
    raisins, olives (other than Spanish-style green olives), olive
    oil, prunes, avocados, mangoes, limes, grapefruit, green
    peppers, Irish potatoes, cucumbers, oranges, onions, walnuts,
    dates, filberts, table grapes, eggplants, kiwifruit,
    nectarines, clementines, plums, pistachios, apples, or
    caneberries (including raspberries, blackberries, and
    loganberries) produced in the United States the importation
    into the United States of any such commodity, other than dates
    for processing, during the period of time such order is in
    effect shall be prohibited unless it complies with the grade,
    size, quality, and maturity provisions of such order or
    comparable restrictions promulgated hereunder: Provided, That
    this prohibition shall not apply to such commodities when
    shipped into continental United States from the Commonwealth of
    Puerto Rico or any Territory or possession of the United States
    where this Act has force and effect: Provided further, That
    whenever two or more such marketing orders regulating the same
    agricultural commodity produced in different areas of the
    United States are concurrently in effect, the importation into
    the United States of any such commodity, other than dates for
    processing, shall be prohibited unless it complies with the
    grade, size, quality, and maturity provisions of the order
    which, as determined by the Secretary of Agriculture, regulates
    the commodity produced in the area with which the imported
    commodity is in most direct competition. Such prohibition shall
    not become effective until after the giving of such notice as
    the Secretary of Agriculture determines reasonable, which shall
    not be less than three days. In determining the amount of
    notice that is reasonable in the case of tomatoes the Secretary
    of Agriculture shall give due consideration to the time
    required for their transportation and entry into the United
    States after picking. Whenever the Secretary of Agriculture
    finds that the application of the restrictions under a
    marketing order to an imported commodity is not practicable
    because of variations in characteristics between the domestic
    and imported commodity he shall establish with respect to the
    imported commodity, other than dates for processing, such
    grade, size, quality, and maturity restrictions by varieties,
    types, or other classifications as he finds will be equivalent
    or comparable to those imposed upon the domestic commodity
    under such order. The Secretary of Agriculture may promulgate
    such rules and regulations as he deems necessary, to carry out
    the provisions of this section. Any person who violates any
    provision if this section or of any rule, regulation, or order
    promulgated hereunder shall be subject to a forfeiture in the
    amount prescribed in section 8a(5) or, upon conviction, a
    penalty in the amount prescribed in section 8c(14) of the Act,
    or to both such forfeiture and penalty.

               *       *       *       *       *       *       *

                                  ----------

                              PLANT PROTECTION ACT

    TITLE IV--PLANT PROTECTION ACT

               *       *       *       *       *       *       *

                          Subtitle A--Plant Protection

    SEC. 411. REGULATION OF MOVEMENT OF PLANT PESTS.

      (a) * * *

               *       *       *       *       *       *       *

      (c) Limitation on Analyses and Procedures for Permits.--
    Notwithstanding any other provision of law, the analyses or
    procedures required under the regulations issued by the
    Secretary under the Federal Plant Pest Act and continued in
    effect in accordance with section 438(c) shall be the only
    analyses or procedures required or authorized by law with
    respect to reviewing and taking action on an application for a
    permit submitted under subsection (a).
      (d) Environmental Analysis Applicable to Certain Permits.--
    Notwithstanding any other provision of law, in reviewing an
    application for a permit submitted under subsection (a) that is
    not excluded from environmental review under regulations issued
    by the Secretary in effect on the date of the enactment of this
    subsection (or any successor regulations), the Secretary shall
    conduct an environmental analysis described in section
    411A(b)(1)(B). Such analysis shall be the only environmental
    analysis or procedure required or authorized by law with
    respect to reviewing and taking action on such an application.
      [(c)] (e) Authorization of Movement of Plant Pests by
    Regulation.--
              (1) * * *

               *       *       *       *       *       *       *

      [(d)] (f) Prohibition of Unauthorized Mailing of Plant
    Pests.--
              (1) * * *

               *       *       *       *       *       *       *

      [(e)] (g) Regulations.--Regulations issued by the Secretary
    to implement subsections (a), (c), and (d) may include
    provisions requiring that any plant pest imported, entered, to
    be exported, moved in interstate commerce, mailed, or delivered
    from any post office--
              (1) * * *

               *       *       *       *       *       *       *

    SEC. 411A. PETITION TO DETERMINE ORGANISM NOT A PLANT PEST.

      (a) Petition.--A person may petition the Secretary for a
    determination that an organism that is subject to regulation by
    the Secretary as a plant pest under this Act is not a plant
    pest for purposes of this Act.
      (b) Review of Petition.--
              (1) Assessment and analysis required.--In reviewing a
            petition submitted under subsection (a), the Secretary
            shall conduct the following with respect to an organism
            that is the subject of the petition:
                      (A) Plant pest risk assessment.--An
                    assessment of the likelihood that such organism
                    is a plant pest.
                      (B) Environmental analysis.--An analysis of
                    any likely adverse effects of such organism on
                    the soil, water, air quality, non-target
                    organisms, and listed threatened and endangered
                    species and the critical habitat of such
                    species for the environment in which such
                    organism is likely to be grown or otherwise
                    used under the conditions specified in such
                    petition.
              (2) Determination.--The Secretary shall issue a
            determination that an organism is not a plant pest for
            purposes of this Act if the Secretary determines, based
            on sound science and the plant pest risk assessment
            conducted under paragraph (1)(A), that an organism is
            not likely to be a plant pest.
              (3) Review period.--
                      (A) Initial review period.--Not later than
                    one year after the date on which the Secretary
                    determines that a petition submitted under
                    subsection (a) is complete, the Secretary shall
                    complete the plant pest risk assessment and the
                    environmental analysis required under paragraph
                    (1) and issue a determination with respect to
                    such petition under paragraph (2).
                      (B) Extension.--The Secretary may extend the
                    one-year review period referred to in
                    subparagraph (A) for a petition for one
                    additional period of not more than 180 days if
                    the Secretary determines that additional review
                    is necessary. The Secretary shall notify the
                    person who submitted the petition, in writing,
                    of the reasons for the extension and an
                    estimate of the time period necessary to
                    complete the review.
              (4) Effect of failure to meet time period.--
            Notwithstanding any other provision of law, if after
            completing the plant pest risk assessment, but not the
            environmental analysis, required under paragraph (1),
            the Secretary finds that there is no reason to believe
            that an organism is a plant pest and does not grant or
            deny a petition submitted under subsection (a) with
            respect to such organism within the time period
            required under paragraph (3), such organism shall be
            deemed not to be a plant pest for purposes of this Act.
              (5) Effect on pesticide registration.--In the case of
            an organism containing a plant-incorporated protectant
            (as defined in section 174.3 of title 40, Code of
            Federal Regulations, or any successor regulation) with
            respect to which an application for registration of the
            plant-incorporated protectant is pending under the
            Federal Insecticide, Fungicide, and Rodenticide Act (7
            U.S.C. 136a et seq.), a determination made under
            paragraph (2) that an organism is not a plant pest or
            the deeming that an organism is not a plant pest under
            paragraph (4) shall not be effective until the
            registration of the plant-incorporated protectant
            contained in such organism is approved under the
            Federal Insecticide, Fungicide, and Rodenticide Act (7
            U.S.C. 136a et seq.). If such registration is not
            approved, a determination made under paragraph (2) that
            an organism is not a plant pest or a deeming that an
            organism is not a plant pest under paragraph (4) shall
            not become effective.
              (6) Subsequent authority to regulate.--
            Notwithstanding a determination that an organism is not
            a plant pest under paragraph (2) or that such organism
            has been deemed not to be a plant pest under paragraph
            (4), the Secretary may issue a determination, based on
            information discovered after the date of such
            determination or the date on which the organism was so
            deemed and sound science, that an organism is a plant
            pest for purposes of this Act.
              (7) Public notice.--
                      (A) Notice.--The Secretary shall publish
                    notice in the Federal Register of--
                              (i) the grant or denial of a petition
                            submitted under subsection (a) with
                            respect to an organism; or
                              (ii) the deeming that such organism
                            is not a plant pest under paragraph
                            (4).
                      (B) Risk assessments and environmental
                    analysis.--The Secretary shall provide to the
                    person who submitted a petition under
                    subsection (a), and make available to the
                    public, the risk assessment and environmental
                    analysis prepared under paragraph (1) with
                    respect to such petition.
      (c) Applicability of Environmental Analysis Conducted for
    Petition to Determine Organism Not a Plant Pest.--
              (1) Exclusive analysis performed.--Notwithstanding
            any other provision of law, the environmental analysis
            required under subsection (b)(1) and as specifically
            described in such subsection shall be the only analysis
            or procedure regarding the effects on the environment
            of an organism that is the subject of a petition
            submitted under subsection (a) required or authorized
            by law with respect to reviewing and taking action on
            such a petition.
              (2) Prohibition on use of funds for other analyses.--
            No funds made available by any Act shall be obligated,
            expended, or used for any analysis or procedure
            regarding the effects on the environment of an organism
            conducted for purposes of this section other than the
            environmental analysis required under subsection
            (b)(1).
              (3) Prohibition on solicitation of funds for
            environmental analysis.--The Secretary shall not
            require or solicit any financial assistance from a
            person submitting a petition under subsection (a) for
            any analysis or procedure regarding the effects on the
            environment of an organism or for any other analysis or
            procedure not specifically authorized by subsection
            (b)(1).
      (d) Use of Data From Permits for Purposes of Petition for a
    Determination That an Organism Not a Plant Pest.--
    Notwithstanding any other provision of law, the Secretary shall
    use data collected under a permit issued by the Secretary under
    section 411(a) with respect to an organism, among other
    relevant data, for purposes of the review of a petition
    submitted under subsection (a) with respect to such organism.

               *       *       *       *       *       *       *

    SEC. 420. PLANT PEST AND DISEASE MANAGEMENT AND DISASTER PREVENTION.

      (a) * * *

               *       *       *       *       *       *       *

      (e) National Clean Plant Network.--
              (1) In general.--The Secretary shall establish a
            program to be known as the ``National Clean Plant
            Network'' (referred to in this subsection as the
            ``Program'').
              (2) Requirements.--Under the Program, the Secretary
            shall establish a network of clean plant centers for
            diagnostic and pathogen elimination services--
                      (A) to produce clean propagative plant
                    material; and
                      (B) to maintain blocks of pathogen-tested
                    plant material in sites located throughout the
                    United States.
              (3) Availability of clean plant source material.--
            Clean plant source material produced or maintained
            under the Program may be made available to--
                      (A) a State for a certified plant program of
                    the State; and
                      (B) private nurseries and producers.
              (4) Consultation and collaboration.--In carrying out
            the Program, the Secretary shall--
                      (A) consult with--
                              (i) State departments of agriculture;
                            and
                              (ii) land-grant colleges and
                            universities and NLGCA Institutions (as
                            those terms are defined in section 1404
                            of the National Agricultural Research,
                            Extension, and Teaching Policy Act of
                            1977 (7 U.S.C. 3103)); and
                      (B) to the extent practicable and with input
                    from the appropriate State officials and
                    industry representatives, use existing Federal
                    or State facilities to serve as clean plant
                    centers.
      [(e)] (f) Funding.--Of the funds of the Commodity Credit
    Corporation, the Secretary shall make available to carry out
    this section--
              (1) * * *

               *       *       *       *       *       *       *

              (3) $50,000,000 for fiscal year 2011; [and]
              (4) $50,000,000 for fiscal year 2012 [and each fiscal
            year thereafter.]; and
              (5) $71,500,000 for fiscal year 2013 and each fiscal
            year thereafter.
      (g) Relationship to Other Law.--The use of Commodity Credit
    Corporation funds under this section to provide technical
    assistance shall not be considered an allotment or fund
    transfer from the Commodity Credit Corporation for purposes of
    the limit on expenditures for technical assistance imposed by
    section 11 of the Commodity Credit Corporation Charter Act (15
    U.S.C. 714i).

               *       *       *       *       *       *       *

                                  ----------

              FEDERAL INSECTICIDE, FUNGICIDE, AND RODENTICIDE ACT

               *       *       *       *       *       *       *
    SEC. 2. DEFINITIONS.

      For purposes of this Act--
      (a) * * *

               *       *       *       *       *       *       *

      (oo) Vector.--The term ``vector'' means any organism capable
    of transmitting the causative agent of human disease or capable
    of producing human discomfort or injury, including mosquitoes,
    flies, fleas, cockroaches, bed bugs, or other insects and
    ticks, mites, or rats.

    SEC. 3. REGISTRATION OF PESTICIDES.

      (a) * * *

               *       *       *       *       *       *       *

      (f) Miscellaneous.--
              (1) * * *

               *       *       *       *       *       *       *

              (5) Use of authorized pesticides.--Except as provided
            in section 402(s) of the Federal Water Pollution
            Control Act, the Administrator or a State may not
            require a permit under such Act for a discharge from a
            point source into navigable waters of a pesticide
            authorized for sale, distribution, or use under this
            Act, or the residue of such a pesticide, resulting from
            the application of such pesticide.

               *       *       *       *       *       *       *

    SEC. 4. REREGISTRATION OF REGISTERED PESTICIDES.

      (a) * * *

               *       *       *       *       *       *       *

      (i) Fees.--
              [(1) Initial fee for food or feed use pesticide
            active ingredients.--The registrants of pesticides that
            contain an active ingredient that is listed under
            subparagraph (B), (C), or (D) of subsection (c)(2) and
            that is an active ingredient of any pesticide
            registered for a major food or feed use shall
            collectively pay a fee of $50,000 on submission of
            information under paragraphs (2) and (3) of subsection
            (d) for such ingredient.
              [(2) Final fee for food or feed use pesticide active
            ingredients.--
                      [(A) The registrants of pesticides that
                    contain an active ingredient that is listed
                    under subparagraph (B), (C), or (D) of
                    subsection (c)(2) and that is an active
                    ingredient of any pesticide registered for a
                    major food or feed use shall collectively pay a
                    fee of $100,000--
                              [(i) on submission of information for
                            such ingredient under subsection (e)(1)
                            if data are reformatted under
                            subsection (e)(1)(C); or
                              [(ii) on submission of data for such
                            ingredient under subsection (e)(2)(B)
                            if data are not reformatted under
                            subsection (e)(1)(C).
                      [(B) The registrants of pesticides that
                    contain an active ingredient that is listed
                    under subsection (c)(2)(A) and that is an
                    active ingredient of any pesticide registered
                    for a major food or feed use shall collectively
                    pay a fee of $150,000 at such time as the
                    Administrator shall prescribe.
              [(3) Fees for other pesticide active ingredients.--
                      [(A) The registrants of pesticides that
                    contain an active ingredient that is listed
                    under subparagraph (B), (C), or (D) of
                    subsection (c)(2) and that is not an active
                    ingredient of any pesticide registered for a
                    major food or feed use shall collectively pay
                    fees in amounts determined by the
                    Administrator. Such fees may not be less than
                    one-half of, nor greater than, the fees
                    required by paragraphs (1) and (2). A
                    registrant shall pay such fees at the times
                    corresponding to the times fees prescribed by
                    paragraphs (1) and (2) are to be paid.
                      [(B) The registrants of pesticides that
                    contain an active ingredient that is listed
                    under subsection (c)(2)(A) and that is not an
                    active ingredient of any pesticide that is
                    registered for a major food or feed use shall
                    collectively pay a fee of not more than
                    $100,000 and not less than $50,000 at such time
                    as the Administrator shall prescribe.
              [(4) Reduction or waiver of fees for minor use and
            other pesticides.--
                      [(A) An active ingredient that is contained
                    only in pesticides that are registered solely
                    for agricultural or nonagricultural minor uses,
                    or a pesticide the value or volume of use of
                    which is small, shall be exempt from the fees
                    prescribed by paragraph (3).
                      [(B) The Administrator shall exempt any
                    public health pesticide from the payment of the
                    fee prescribed under paragraph (3) if, in
                    consultation with the Secretary of Health and
                    Human Services, the Administrator determines,
                    based on information supplied by the
                    registrant, that the economic return to the
                    registrant from sales of the pesticide does not
                    support the registration or reregistration of
                    the pesticide.
                      [(C) An antimicrobial active ingredient, the
                    production level of which does not exceed
                    1,000,000 pounds per year, shall be exempt from
                    the fees prescribed by paragraph (3). For
                    purposes of this subparagraph, the term
                    ``antimicrobial active ingredient'' means any
                    active ingredient that is contained only in
                    pesticides that are not registered for any food
                    or feed use and that are--
                              [(i) sanitizers intended to reduce
                            the number of living bacteria or viable
                            virus particles on inanimate surface or
                            in water or air;
                              [(ii) bacteriostats intended to
                            inhibit the growth of bacteria in the
                            presence of moisture;
                              [(iii) disinfectants intended to
                            destroy or irreversibly inactivate
                            bacteria, fungi, or viruses on surfaces
                            or inanimate objects;
                              [(iv) sterilizers intended to destroy
                            viruses and all living bacteria, fungi,
                            and their spores on inanimate surfaces;
                            or
                              [(v) fungicides or fungistats.
                      [(D)(i) Notwithstanding any other provision
                    of this subsection, in the case of a small
                    business registrant of a pesticide, the
                    registrant shall pay a fee for the
                    reregistration of each active ingredient of the
                    pesticide that does not exceed an amount
                    determined in accordance with this
                    subparagraph.
                      [(ii) If during the 3-year period prior to
                    reregistration the average annual gross revenue
                    of the registrant from pesticides containing
                    such active ingredient is--
                              [(I) less than $5,000,000, the
                            registrant shall pay 0.5 percent of
                            such revenue;
                              [(II) $5,000,000 or more but less
                            than $10,000,000, the registrant shall
                            pay 1 percent of such revenue; or
                              [(III) $10,000,000 or more, the
                            registrant shall pay 1.5 percent of
                            such revenue, but not more than
                            $150,000.
                      [(iii) For the purpose of this subparagraph,
                    a small business registrant is a corporation,
                    partnership, or unincorporated business that--
                              [(I) has 150 or fewer employees; and
                              [(II) during the 3-year period prior
                            to reregistration, had an average
                            annual gross revenue from chemicals
                            that did not exceed $40,000,000.]
              [(5)] (1) Maintenance fee.--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) Total amount of fees.--The amount of each
                    fee prescribed under subparagraph (A) shall be
                    adjusted by the Administrator to a level that
                    will result in the collection under this
                    paragraph of, to the extent practicable, an
                    [aggregate amount of $22,000,000 for each of
                    fiscal years 2008 through 2012] aggregate
                    amount of $27,800,000 for each of fiscal years
                    2013 through 2017.
                      (D) Maximum amount of fees for registrants.--
                    The maximum annual fee payable under this
                    paragraph by--
                              (i) a registrant holding not more
                            than 50 pesticide registrations [shall
                            be $71,000 for each of fiscal years
                            2008 through 2012;] shall be $115,500
                            for each of fiscal years 2013 through
                            2017; and
                              (ii) a registrant holding over 50
                            registrations [shall be $123,000 for
                            each of fiscal years 2008 through
                            2012.] shall be $184,800 for each of
                            fiscal years 2013 through 2017.
                      (E) Maximum amount of fees for small
                    businesses.--
                              (i) In general.--For a small
                            business, the maximum annual fee
                            payable under this paragraph by--
                                      (I) a registrant holding not
                                    more than 50 pesticide
                                    registrations [shall be $50,000
                                    for each of fiscal years 2008
                                    through 2012;] shall be $70,600
                                    for each of fiscal years 2013
                                    through 2017; and
                                      (II) a registrant holding
                                    over 50 pesticide registrations
                                    [shall be $86,000 for each of
                                    fiscal years 2008 through
                                    2012.] shall be $122,100 for
                                    each of fiscal years 2013
                                    through 2017.

               *       *       *       *       *       *       *

                      (F) Fee reduction for certain small
                    businesses.--
                              (i) Waiver.--Except as provided in
                            clause (ii), the Administrator shall
                            waive 25 percent of the fee under this
                            paragraph applicable to the first
                            registration of any qualified small
                            business entity under this paragraph.
                              (ii) Limitation.--The Administrator
                            shall not grant a waiver under clause
                            (i) to a qualified small business
                            entity if the Administrator determines
                            that the entity has been formed or
                            manipulated primarily for the purpose
                            of qualifying for the waiver.
                              (iii) Definition.--For purposes of
                            this subparagraph, the term ``qualified
                            small business entity'' means a
                            corporation, partnership, or
                            unincorporated business that--
                                      (I) has 500 or fewer
                                    employees;
                                      (II) during the 3-year period
                                    prior to the most recent
                                    maintenance fee billing cycle,
                                    had an average annual global
                                    gross revenue from all sources
                                    that did not exceed
                                    $10,000,000; and
                                      (III) holds not more than 5
                                    pesticide registrations under
                                    this paragraph.
                      [(F)] (G) The Administrator shall exempt any
                    public health pesticide from the payment of the
                    fee prescribed under [paragraph (3)] this
                    paragraph if, in consultation with the
                    Secretary of Health and Humans Services, the
                    Administrator determines, based on information
                    supplied by the registrant, that the economic
                    return to the registrant from sales of the
                    pesticide does not support the registration or
                    reregistration of the pesticide.
                      [(G)] (H) If any fee prescribed by this
                    paragraph with respect to the registration of a
                    pesticide is not paid by a registrant by the
                    time prescribed, the Administrator, by order
                    and without hearing, may cancel the
                    registration.
                      [(H)] (I) The authority provided under this
                    paragraph shall terminate on September 30,
                    [2012] 2017.
              [(6)] (2) Other fees.--Except as provided in section
            33, during the period beginning on the date of
            enactment of this section and ending on September 30,
            [2014] 2019, the Administrator may not levy any other
            fees for the registration of a pesticide under this Act
            except as provided in [paragraphs (1) through (5)]
            paragraph (5).
              [(7) Apportionment.--
                      [(A) If two or more registrants are required
                    to pay any fee prescribed by paragraph (1),
                    (2), or (3) with respect to a particular active
                    ingredient, the fees for such active ingredient
                    shall be apportioned among such registrants on
                    the basis of the market share in United States
                    sales of the active ingredient for the 3
                    calendar years preceding the date of payment of
                    such fee, except that--
                              [(i) small business registrants that
                            produce the active ingredient shall pay
                            fees in accordance with paragraph
                            (4)(C); and
                              [(ii) registrants who have no market
                            share but who choose to reregister a
                            pesticide containing such active
                            ingredient shall pay the lesser of--
                                      [(I) 15 percent of the
                                    reregistration fee; or
                                      [(II) a proportionate amount
                                    of such fee based on the lowest
                                    percentage market share held by
                                    any registrant active in the
                                    marketplace.
                            In no event shall registrants who have
                            no market share but who choose to
                            reregister a pesticide containing such
                            active ingredient collectively pay more
                            than 25 percent of the total active
                            ingredient reregistration fee.
                      [(B) The Administrator, by order, may require
                    any registrant to submit such reports as the
                    Administrator determines to be necessary to
                    allow the Administrator to determine and
                    apportion fees under this subsection, to
                    determine the registrant's eligibility for a
                    reduction or waiver of a fee, or to determine
                    the volume usage for public health pesticides.
                      [(C) If any such report is not submitted by a
                    registrant after receiving notice of such
                    report requirement, or if any fee prescribed by
                    this subsection (other than paragraph (5)) for
                    an active ingredient is not paid by a
                    registrant to the Administrator by the time
                    prescribed under this subsection, the
                    Administrator, by order and without hearing,
                    may cancel each registration held by such
                    registrant of a pesticide containing the active
                    ingredient with respect to which the fee is
                    imposed. The Administrator shall reapportion
                    the fee among the remaining registrants and
                    notify the registrants that the registrants are
                    required to pay to the Administrator any unpaid
                    balance of the fee within 30 days after receipt
                    of such notice.]

               *       *       *       *       *       *       *

      (k) Reregistration and Expedited Processing Fund.--
              (1) * * *
              (2) Source and use.--
                      (A) All moneys derived from fees collected by
                    the Administrator under subsection (i) shall be
                    deposited in the fund and shall be available to
                    the Administrator, without fiscal year
                    limitation, specifically to offset the costs of
                    reregistration and expedited processing of the
                    applications specified in paragraph (3), to
                    enhance the information systems capabilities to
                    improve the tracking of pesticide registration
                    decisions, and to offset the costs of
                    registration review under section 3(g). Such
                    moneys derived from fees may not be expended in
                    any fiscal year to the extent such moneys
                    derived from fees would exceed money
                    appropriated for use by the Administrator and
                    expended in such year for such costs of
                    reregistration and expedited processing of such
                    applications. The Administrator shall, prior to
                    expending any such moneys derived from fees--
                              (i) effective October 1, 1997, adopt
                            specific and cost accounting rules and
                            procedures as approved by the General
                            Accounting Office and the Inspector
                            General of the Environmental Protection
                            Agency to ensure that moneys derived
                            from fees are allocated solely to
                            offset the costs of reregistration and
                            expedited processing of the
                            applications specified in paragraph
                            (3), to enhance the information systems
                            capabilities to improve the tracking of
                            pesticide registration decisions, and
                            to offset the costs of registration
                            review under section 3(g) [in the same
                            portion as appropriated funds];
                              (ii) prohibit the use of such moneys
                            derived from fees to pay for any costs
                            other than those necessary to achieve
                            reregistration and expedited processing
                            of the applications specified in
                            paragraph (3), to enhance the
                            information systems capabilities to
                            improve the tracking of pesticide
                            registration decisions, and to offset
                            the costs of registration review under
                            section 3(g); and

               *       *       *       *       *       *       *

              (3) Review of inert ingredients; expedited processing
            of similar applications.--
                      (A) The Administrator shall use for each of
                    the fiscal years 2004 through 2006,
                    approximately $3,300,000, and for each of
                    fiscal years [2008 through 2012, between \1/8\
                    and \1/7\] 2013 through 2017, between \1/9\ and
                    \1/8\, of the maintenance fees collected in
                    such fiscal year to obtain sufficient personnel
                    and resources--
                              (i) to review and evaluate [new]
                            inert ingredients; and

               *       *       *       *       *       *       *

              (4) Enhancements of information technology systems
            for improvement in review of pesticide applications.--
                      (A) In general.--For each of fiscal years
                    2013 through 2017, the Administrator shall use
                    not more than $800,000 of the amounts made
                    available to the Administrator in the
                    Reregistration and Expedited Processing Fund
                    for the activities described in subparagraph
                    (B).
                      (B) Activities.--The Administrator shall use
                    amounts made available from such Fund to
                    improve the information systems capabilities
                    for the Office of Pesticide Programs to enhance
                    tracking of pesticide registration decisions,
                    which shall include--
                              (i) the electronic tracking of--
                                      (I) registration submissions;
                                    and
                                      (II) the status of
                                    conditional registrations;
                              (ii) enhancing the database for
                            information regarding endangered
                            species assessments for registration
                            review;
                              (iii) implementing the capability to
                            electronically review labels submitted
                            with registration actions; and
                              (iv) acquiring and implementing the
                            capability to electronically assess and
                            evaluate confidential statements of
                            formula submitted with registration
                            actions.
              [(4)] (5) Unused funds.--Money in the fund not
            currently needed to carry out this section shall be--
                      (A) * * *

               *       *       *       *       *       *       *

              [(5)] (6) Accounting and performance.--The
            Administrator shall take all steps necessary to ensure
            that expenditures from fees authorized by subsection
            (i)(5)(C)(ii) are used only [to carry out the goals
            established under subsection (l)] for the purposes
            described in paragraphs (2), (3), and (4) and to carry
            out the goals established under subsection (l). The
            Reregistration and Expedited Processing Fund shall be
            designated as an Environmental Protection Agency
            component for purposes of section 3515(c) of title 31,
            United States Code. The annual audit required under
            section 3521 of such title of the financial statements
            of activities under this Act under section 3515(b) of
            such title shall include an audit of the fees collected
            under subsection (i)(5)(C) and disbursed, of the amount
            appropriated to match such fees, and of the
            Administrator's attainment of performance measures and
            goals established under subsection (l). Such an audit
            shall also include a review of the reasonableness of
            the overhead allocation and adequacy of disclosures of
            direct and indirect costs associated with carrying out
            the reregistration and expedited processing of the
            applications specified in paragraph (3), and the basis
            for and accuracy of all costs paid with moneys derived
            from such fees. The Inspector General shall conduct the
            annual audit and report the findings and
            recommendations of such audit to the Administrator and
            to the Committees on Agriculture of the House of
            Representatives and the Senate. The cost of such audit
            shall be paid for out of the fees collected under
            subsection (i)(5)(C).

               *       *       *       *       *       *       *

    SEC. 25. AUTHORITY OF ADMINISTRATOR.

      (a) * * *
      (b) Exemption of Pesticides.--The Administrator may exempt
    from the requirements of this Act by regulation any pesticide
    which the Administrator determines either (1) to be adequately
    regulated by another Federal agency, or (2) to be of a
    character which is unnecessary to be subject to this Act in
    order to carry out the purposes of this Act. Notwithstanding
    the exemption of a pesticide under this subsection, the
    Administrator shall require the submission of efficacy data
    (and evaluate such data) if the pesticide is labeled for or
    proposed to be labeled for the control of a pest of public
    health significance. The Administrator shall not permit the
    sale or distribution of any product that is marketed,
    distributed, or sold with a claim that such product will
    control a public health pest if the efficacy data submitted
    under this subsection does not support such claim.

               *       *       *       *       *       *       *

    SEC. 33. PESTICIDE REGISTRATION SERVICE FEES.

      (a) * * *
      (b) Fees.--
              (1) * * *

               *       *       *       *       *       *       *

              (3) Schedule of covered applications and registration
            service fees.--
                      (A) In general.--Not later than 30 days after
                    the effective date of the [Pesticide
                    Registration Improvement Renewal Act] Federal
                    Agriculture Reform and Risk Management Act of
                    2012, the Administrator shall publish in the
                    Federal Register a schedule of covered
                    pesticide registration applications and
                    corresponding registration service fees.
                      (B) Report.--Subject to paragraph (6), the
                    schedule shall be the same as the applicable
                    schedule appearing in the Congressional Record
                    on pages [S10409 through S10411, dated July 31,
                    2007.] S___ through S___, dated ___.

               *       *       *       *       *       *       *

              (6) Fee adjustment.--
                      (A) In general.--Effective for a covered
                    pesticide registration application received
                    during the period beginning on [October 1,
                    2008] October 1, 2013, and ending on [September
                    30, 2010] September 30, 2015, the Administrator
                    shall increase by 5 percent the registration
                    service fee payable for the application under
                    paragraph (3).
                      (B) Additional adjustment.--Effective for a
                    covered pesticide registration application
                    received on or after [October 1, 2010] October
                    1, 2015, the Administrator shall increase by an
                    additional 5 percent the registration service
                    fee in effect as of [September 30, 2010]
                    September 30, 2015.

               *       *       *       *       *       *       *

              (8) Refunds.--
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) Discretionary refunds.--
                              (i) * * *
                              (ii) Basis.--The Administrator may
                            provide a refund for an application
                            under this subparagraph--
                                      (I) on the basis that, in
                                    reviewing the application, the
                                    Administrator has considered
                                    data submitted in support of
                                    another pesticide registration
                                    application; [or]
                                      (II) on the basis that the
                                    Administrator completed
                                    portions of the review of the
                                    application before the
                                    effective date of this
                                    section[.]; or
                                      (III) on the basis that the
                                    Administrator rejected the
                                    application under subsection
                                    (f)(4)(B).

               *       *       *       *       *       *       *

      (c) Pesticide Registration Fund.--
              (1) * * *

               *       *       *       *       *       *       *

              (3) Expenditures from fund.--
                      (A) * * *
                      (B) Worker protection.--
                              (i) In general.--For each of fiscal
                            years [2008 through 2012] 2013 through
                            2017, the Administrator shall use
                            approximately \1/17\ of the amount in
                            the Fund (but not less than $1,000,000)
                            to enhance scientific and regulatory
                            activities relating to worker
                            protection.
                              (ii) Partnership grants.--Of the
                            amounts in the Fund, the Administrator
                            shall use for partnership [grants--
                                      [(I) for each of fiscal years
                                    2008 and 2009, $750,000; and
                                      [(II) for each of fiscal
                                    years 2010 through 2012,
                                    $500,000.] grants, for each of
                                    fiscal years 2013 through 2017,
                                    $500,000.
                              (iii) Pesticide safety education
                            program.--Of the amounts in the Fund,
                            the Administrator shall use $500,000
                            for each of fiscal years [2008 through
                            2012] 2013 through 2017 to carry out
                            the pesticide safety education program.

               *       *       *       *       *       *       *

      (d) Assessment of Fees.--
              (1) * * *
              (2) Minimum amount of appropriations.--Registration
            service fees may not be assessed for a fiscal year
            under this section unless the amount of appropriations
            for salaries, contracts, and expenses for the functions
            (as in existence in fiscal year [2002] 2012) of the
            Office of Pesticide Programs of the Environmental
            Protection Agency for the fiscal year (excluding the
            amount of any fees appropriated for the fiscal year)
            are equal to or greater than the amount of
            appropriations for covered functions for fiscal year
            [2002] 2012 (excluding the amount of any fees
            appropriated for the fiscal year).

               *       *       *       *       *       *       *

              [(4) Compliance.--The requirements of paragraph (2)
            shall have been considered to have been met for any
            fiscal year if the amount of appropriations for
            salaries, contracts, and expenses for the functions (as
            in existence in fiscal year 2002) of the Office of
            Pesticide Programs of the Environmental Protection
            Agency for the fiscal year (excluding the amount of any
            fees appropriated for the fiscal year) is not more than
            3 percent below the amount of appropriations for
            covered functions for fiscal year 2002 (excluding the
            amount of any fees appropriated for the fiscal year).]
              [(5)] (4) Subsequent authority.--If the Administrator
            does not assess registration service fees under
            subsection (b) during any portion of a fiscal year as
            the result of paragraph (2) and is subsequently
            permitted to assess the fees under subsection (b)
            during the fiscal year, the Administrator shall assess
            and collect the fees, without any modification in rate,
            at any time during the fiscal year, notwithstanding any
            provisions of subsection (b) relating to the date fees
            are to be paid.
      (e) Reforms to Reduce Decision Time Review Periods.--To the
    maximum extent practicable consistent with the degrees of risk
    presented by pesticides and the type of review appropriate to
    evaluate risks, the Administrator shall identify and evaluate
    reforms to the pesticide registration process under this Act
    with the goal of reducing decision review periods in effect on
    the effective date of the [Pesticide Registration Improvement
    Act of 2003] Federal Agriculture Reform and Risk Management Act
    of 2012 for pesticide registration actions for covered
    pesticide registration applications (including reduced risk
    applications).
      (f) Decision Time Review Periods.--
              (1) In general.--Not later than 30 days after the
            effective date of the [Pesticide Registration
            Improvement Renewal Act] Federal Agriculture Reform and
            Risk Management Act of 2012, the Administrator shall
            publish in the Federal Register a schedule of decision
            review periods for covered pesticide registration
            actions and corresponding registration service fees
            under this Act.
              (2) Report.--The schedule shall be the same as the
            applicable schedule appearing in the Congressional
            Record on pages [S10409 through S10411, dated July 31,
            2007.] S__ through S___, dated ___.

               *       *       *       *       *       *       *

              (4) Start of decision time review period.--
                      (A) In general.--Except as provided in
                    subparagraphs (C), (D), and (E), in the case of
                    a pesticide registration application
                    accompanied by the registration service fee
                    required under this section, the decision time
                    review period begins 21 days after the date on
                    which the Administrator receives the covered
                    pesticide registration application and fee.
                      (B) [Completeness of application] Initial
                    content and preliminary technical screenings.--
                              (i) In general.--[Not later]
                                      (I) Not later than 21 days
                                    after receiving an application
                                    and the required registration
                                    service fee, the Administrator
                                    shall conduct an initial
                                    screening of the contents of
                                    the application in accordance
                                    with clause (iii).
                                      (II) After conducting the
                                    initial content screening
                                    described in subclause (I) and
                                    in accordance with clause (iv),
                                    the Administrator shall conduct
                                    a preliminary technical
                                    screening--
                                              (aa) not later than
                                            45 days after the date
                                            on which the decision
                                            time review period
                                            begins (for
                                            applications with
                                            decision time review
                                            periods of not more
                                            than 180 days); and
                                              (bb) not later than
                                            90 days after the date
                                            on which the decision
                                            time review period
                                            begins (for
                                            applications with
                                            decision time review
                                            periods greater than
                                            180 days).
                              (ii) Rejection.--If the Administrator
                            determines [under clause (i) that the
                            application does not pass the initial
                            screening and cannot be corrected
                            within the 21-day period, the
                            Administrator shall reject the
                            application not later than 10 days
                            after making the determination.] at any
                            time before the Administrator completes
                            the preliminary technical screening
                            under clause (i)(II) that the
                            application failed the initial content
                            or preliminary technical screening and
                            the applicant does not correct such
                            failure before the date that is 10
                            business days after the applicant
                            receives a notification of the failure,
                            the Administrator shall reject the
                            application. The Administrator shall
                            make every effort to provide a written
                            notification of such rejection during
                            the 10-day period that begins on the
                            date the Administrator completes the
                            preliminary technical screening.
                              (iii) Requirements of initial content
                            screening.--In conducting an initial
                            content screening of an application,
                            the Administrator shall determine
                            whether--
                                      (I) * * *
                                      (II) the application
                                    [contains] appears to contain
                                    all the necessary forms, data,
                                    and draft labeling, formatted
                                    in accordance with guidance
                                    published by the Administrator.
                              (iv) Requirements of preliminary
                            technical screening.--In conducting a
                            preliminary technical screening of an
                            application, the Administrator shall
                            determine if--
                                      (I) the application and the
                                    data and information submitted
                                    with such application are
                                    accurate and complete; and
                                      (II) the application, data,
                                    and information are consistent
                                    with the proposed labeling and
                                    any proposal for a tolerance or
                                    exemption from the requirement
                                    for a tolerance under section
                                    408 of the Federal Food, Drug,
                                    and Cosmetic Act, and are such
                                    that, subject to full review
                                    under the standards of this
                                    Act, could result in the
                                    granting of the application.

               *       *       *       *       *       *       *

      (k) Reports.--
              (1) In general.--Not later than March 1, 2005, and
            each March 1 thereafter through [March 1, 2014] March
            1, 2017, the Administrator shall publish an annual
            report describing actions taken under this section.
              (2) Contents.--The report shall include--
                      (A) a review of the progress made in carrying
                    out each requirement of subsections (e) and
                    (f), including--
                              (i) * * *

               *       *       *       *       *       *       *

                              (vi) to the extent determined
                            appropriate by the Administrator and
                            consistent with the authorities of the
                            Administrator and limitations on
                            delegation of functions by the
                            Administrator, recommendations for--
                                      (I) * * *

               *       *       *       *       *       *       *

                                      (V) the allowance and use of
                                    summaries of acute toxicity
                                    studies; [and]
                              (vii) the use of performance-based
                            contracts, other contracts, and
                            procurement to ensure that--
                                      (I) * * *
                                      (II) the registration program
                                    is administered in the most
                                    productive and cost effective
                                    manner practicable; and
                              (viii) the number of extensions of
                            decision time review periods agreed to
                            under subsection (f)(5) along with a
                            description of the reason that the
                            Administrator was unable to make a
                            decision within the initial decision
                            time review period;

               *       *       *       *       *       *       *

                      (E) a review of the progress in meeting the
                    timeline requirements for the review of
                    antimicrobial pesticide products under section
                    3(h); [and]
                      (F) a review of the progress in carrying out
                    the review of inert ingredients, including the
                    number of applications pending, the number of
                    new applications, the number of applications
                    reviewed, staffing, and resources devoted to
                    the review of inert ingredients and
                    recommendations to improve the timeliness of
                    review of inert ingredients[.];
                      (G) a review of the progress made toward--
                              (i) carrying out section 4(k)(4) and
                            the amounts from the Reregistration and
                            Expedited Processing Fund used for the
                            purposes described in such section;
                              (ii) implementing systems for the
                            electronic tracking of registration
                            submissions by December 31, 2013;
                              (iii) implementing a system for
                            tracking the status of conditional
                            registrations, including making non-
                            confidential information related to
                            such conditional registrations publicly
                            available by December 31, 2013;
                              (iv) implementing enhancements to the
                            endangered species knowledge database,
                            including making non-confidential
                            information related to such database
                            publicly available;
                              (v) implementing the capability to
                            electronically submit and review labels
                            submitted with registration actions;
                              (vi) acquiring and implementing the
                            capability to electronically assess and
                            evaluate confidential statements of
                            formula submitted with registration
                            actions by December 31, 2014; and
                              (vii) facilitating public
                            participation in certain registration
                            actions and the registration review
                            process by providing electronic
                            notification to interested parties of
                            additions to the public docket;
                      (H) the number of applications rejected by
                    the Administrator under the initial content and
                    preliminary technical screening conducted under
                    subsection (f)(4);
                      (I) a review of the progress made in updating
                    the Pesticide Incident Data System, including
                    progress toward making the information
                    contained in such System available to the
                    public (as the Administrator determines is
                    appropriate); and
                      (J) an assessment of the public availability
                    of summary pesticide usage data.

               *       *       *       *       *       *       *

      (m) Termination of Effectiveness.--
              (1) In general.--Except as provided in paragraph (2),
            the authority provided by this section terminates on
            September 30, [2012] 2017.
              (2) Phase out.--
                      (A) Fiscal year [2013] 2018.--During fiscal
                    year [2013,] 2018, the requirement to pay and
                    collect registration service fees applies,
                    except that the level of registration service
                    fees payable under this section shall be
                    reduced 40 percent below the level in effect on
                    [September 30, 2012] September 30, 2017.
                      (B) Fiscal year [2014] 2019.--During fiscal
                    year [2014,] 2019, the requirement to pay and
                    collect registration service fees applies,
                    except that the level of registration service
                    fees payable under this section shall be
                    reduced 70 percent below the level in effect on
                    [September 30, 2012] September 30, 2017.
                      (C) September 30, [2014] 2019.--Effective
                    [September 30, 2014] September 30, 2019, the
                    requirement to pay and collect registration
                    service fees terminates.
                      (D) Decision review periods.--
                              (i) Pending applications.--In the
                            case of an application received under
                            this section before September 30,
                            [2012] 2017, the application shall be
                            reviewed in accordance with subsection
                            (f).
                              (ii) New applications.--In the case
                            of an application received under this
                            section on or after September 30,
                            [2012] 2017, subsection (f) shall not
                            apply to the application.

               *       *       *       *       *       *       *

                                  ----------

                      FEDERAL FOOD, DRUG, AND COSMETIC ACT

               *       *       *       *       *       *       *
    CHAPTER IV--FOOD

               *       *       *       *       *       *       *

           TOLERANCES AND EXEMPTIONS FOR PESTICIDE CHEMICAL RESIDUES

      Sec. 408. (a) * * *

               *       *       *       *       *       *       *

      (m) Fees.--
              (1) * * *

               *       *       *       *       *       *       *

              (3) Prohibition.--During the period beginning on the
            effective date of the Pesticide Registration
            Improvement Renewal Act and ending on [September 30,
            2012] September 30, 2017, the Administrator shall not
            collect any tolerance fees under paragraph (1).

               *       *       *       *       *       *       *

                                  ----------

                      FEDERAL WATER POLLUTION CONTROL ACT

               *       *       *       *       *       *       *
    TITLE IV--PERMITS AND LICENSES

               *       *       *       *       *       *       *

                NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM

      Sec. 402. (a) * * *

               *       *       *       *       *       *       *

      (s) Discharges of Pesticides.--
              (1) No permit requirement.--Except as provided in
            paragraph (2), a permit shall not be required by the
            Administrator or a State under this Act for a discharge
            from a point source into navigable waters of a
            pesticide authorized for sale, distribution, or use
            under the Federal Insecticide, Fungicide, and
            Rodenticide Act, or the residue of such a pesticide,
            resulting from the application of such pesticide.
              (2) Exceptions.--Paragraph (1) shall not apply to the
            following discharges of a pesticide or pesticide
            residue:
                      (A) A discharge resulting from the
                    application of a pesticide in violation of a
                    provision of the Federal Insecticide,
                    Fungicide, and Rodenticide Act that is relevant
                    to protecting water quality, if--
                              (i) the discharge would not have
                            occurred but for the violation; or
                              (ii) the amount of pesticide or
                            pesticide residue in the discharge is
                            greater than would have occurred
                            without the violation.
                      (B) Stormwater discharges subject to
                    regulation under subsection (p).
                      (C) The following discharges subject to
                    regulation under this section:
                              (i) Manufacturing or industrial
                            effluent.
                              (ii) Treatment works effluent.
                              (iii) Discharges incidental to the
                            normal operation of a vessel, including
                            a discharge resulting from ballasting
                            operations or vessel biofouling
                            prevention.

               *       *       *       *       *       *       *

                                  ----------

             SECTION 508 OF THE FEDERAL CROP INSURANCE ACT OF 1938

    SEC. 508. CROP INSURANCE.

      (a) * * *

               *       *       *       *       *       *       *

      (k) Reinsurance.--
              (1) * * *

               *       *       *       *       *       *       *

              (8) Renegotiation of standard reinsurance
            agreement.--
                      (A) * * *

               *       *       *       *       *       *       *

                      (E) 2011 reinsurance year.--
                              (i) * * *

               *       *       *       *       *       *       *

                              (iii) Equitable relief for specialty
                            crop policies.--
                                      (I) In general.--For each of
                                    the 2011 through 2015
                                    reinsurance years, in addition
                                    to the total amount of funding
                                    for reimbursement of
                                    administrative and operating
                                    costs that is otherwise
                                    required to be made available
                                    in each such reinsurance year
                                    pursuant to an agreement
                                    entered into by the
                                    Corporation, the Corporation
                                    shall use $41,000,000 to
                                    provide additional
                                    reimbursement with respect to
                                    eligible insurance contracts
                                    for any agricultural commodity
                                    that is not eligible for a
                                    benefit under subtitles A, B or
                                    C of title I of the Federal
                                    Agriculture Reform and Risk
                                    Management Act of 2012.
                                      (II) Treatment.--Additional
                                    reimbursements made under this
                                    clause shall be included as
                                    part of the base level of
                                    administrative and operating
                                    expense reimbursement to which
                                    any limit on compensation to
                                    persons involved in the direct
                                    sale and service of any
                                    eligible crop insurance
                                    contract required under an
                                    agreement entered into by the
                                    Corporation is applied.
                                      (III) Rule of construction.--
                                    Nothing in this clause shall be
                                    construed as statutory assent
                                    to the limit described in
                                    subclause (II).
                      (F) Budget.--
                              (i) In general.--The Board shall
                            ensure that any Standard Reinsurance
                            Agreement negotiated under subparagraph
                            (A)(ii), as compared to the previous
                            Standard Reinsurance Agreement--
                                      (I) to the maximum extent
                                    practicable, shall be budget
                                    neutral; and
                                      (II) in no event, may
                                    significantly depart from
                                    budget neutrality.
                              (ii) Use of savings.--To the extent
                            that any budget savings is realized in
                            the renegotiation of a Standard
                            Reinsurance Agreement under
                            subparagraph (A)(ii), and the savings
                            are determined not to be a significant
                            departure from budget neutrality under
                            clause (i), the savings shall be used
                            to increase the obligations of the
                            Corporation under subsections (e)(2) or
                            (k)(4) or section 523.

               *       *       *       *       *       *       *

      (p) Coverage Levels by Practice.--Beginning with the 2014
    crop year, a producer that produces an agricultural commodity
    on both dry land and irrigated land may elect a different
    coverage level for each production practice.
                                  ----------

                               TRADE ACT OF 1974

               *       *       *       *       *       *       *
            TITLE IX--SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE

    SEC. 901. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

      (a) * * *

               *       *       *       *       *       *       *

      (d) Livestock Forage Disaster Program.--
              (1) * * *

               *       *       *       *       *       *       *

              (3) Assistance for losses due to drought
            conditions.--
                      [(A) Eligible losses.--
                              [(i) In general.--An eligible] (A)
                            Eligible losses.--An eligible livestock
                            producer may receive assistance under
                            this subsection only for grazing losses
                            for covered livestock that occur on
                            land that--
                              [(I)] (i) is native or improved
                            pastureland with permanent vegetative
                            cover; or
                              [(II)] (ii) is planted to a crop
                            planted specifically for the purpose of
                            providing grazing for covered
                            livestock.
                              [(ii) Exclusions.--An eligible
                            livestock producer may not receive
                            assistance under this subsection for
                            grazing losses that occur on land used
                            for haying or grazing under the
                            conservation reserve program
                            established under subchapter B of
                            chapter 1 of subtitle D of title XII of
                            the Food Security Act of 1985 (16
                            U.S.C. 3831 et seq.).]

               *       *       *       *       *       *       *

                                  ----------

               SECTION 10405 OF THE ANIMAL HEALTH PROTECTION ACT

    Subtitle E--Animal Health Protection

               *       *       *       *       *       *       *

    SEC. 10405. EXPORTATION.

      (a) * * *

               *       *       *       *       *       *       *

      (d) Authorization of Appropriations.--
              (1) In general.--There is authorized to be
            appropriated--
                      (A) $1,500,000 for each of fiscal years 2008
                    through [2012] 2017 to carry out section 11010
                    of the Food, Conservation, and Energy Act of
                    2008; and
                      (B) such sums as may be necessary for each of
                    fiscal years 2008 through [2012] 2017 to carry
                    out this section.

               *       *       *       *       *       *       *

                                  ----------

                      SECTION 26 OF THE ANIMAL WELFARE ACT

               *       *       *       *       *       *       *
      Sec. 26. (a) Sponsoring or Exhibiting an Animal in an Animal
    Fighting Venture.--
              (1) In general.--Except as provided in paragraph (2),
            it shall be unlawful for any person to knowingly
            sponsor or exhibit an animal in an animal fighting
            venture[.] or to knowingly attend or knowingly cause a
            minor to attend an animal fighting venture.

               *       *       *       *       *       *       *

                                ADDITIONAL VIEWS

        We greatly appreciate the work done by the Chairman and
    Ranking Member to advance a bipartisan farm bill. This bill
    makes important reforms to our agriculture and conservation
    policy and maintains our investment in rural communities. One
    item of concern, however, involves a provision that is a step
    toward imposing a non-tariff trade barrier to imports of olive
    oil. We are concerned that this provision will invite
    retaliation from the European Union and others against U.S.
    agricultural exports, negatively impacting companies around the
    United States.
        Section 10010 of the bill amends Section 8e(a) of the
    Agricultural Adjustment Act to add the words ``olive oil'' to a
    list of products for which it is permissible to apply a
    marketing order to imports. The United States does not
    currently have a marketing order on olive oil. Such a change
    will enable certain producer groups to establish a marketing
    order on olive oil, and apply to have the provisions pertain to
    olive oil imports.
        We are concerned because the United States produces little
    olive oil relative to what we import. The United States imports
    approximately ninety-eight percent of the olive oil that
    Americans consume. That would make olive oil unique among
    Section 8e commodities. For virtually every other commodity
    listed in Section 8e, domestic growers produce at least thirty
    percent of the U.S. market in that commodity, and in most cases
    much more. For a market that is dominated by imports, a
    marketing order has the potential to serve as a significant
    barrier.
        When applied to imports, marketing orders require 100%
    inspection of all imports of the subject commodity. For olive
    oil, that would require expensive chemical and even taste
    testing of each of the estimated fifteen to twenty thousand
    lots of olive oil that the United States imports every year.
    This would represent a significant regulatory burden that could
    endanger U.S. jobs and do little to address any fraud involving
    olive oil labeling.
        In addition to the effects new regulations would have on
    domestic companies, we remained concerned about the potential
    for trade retaliation. Roughly four-fifths of U.S. olive oil
    imports come from the European Union, a total of around $720
    million last year. In the longterm, provoking the European
    Union and others, including nations we have trade agreements
    with, runs the risk of harming our growing agricultural export
    market.
        As this legislation moves through the process, we look
    forward to working with the Chairman and Ranking Member on this
    important issue.
                                       Chris Gibson.
                                       Tim Johnson.
                                       Randy Hultgren.

                                DISSENTING VIEWS

        Ensuring robust support for our nation's rural communities
    is one of our committee's most important, and challenging,
    tasks. As our committee and USDA continues to evaluate ways to
    achieve this goal, it is important that any effort to further
    define the eligibility of a community as ``rural'' for USDA's
    rural development programs retains the flexibility and
    understanding that currently exists for communities in the
    northeast.
        Under current law, the definition of ``rural'' and ``rural
    area'' includes a city, town, or unincorporated area that has a
    population of no more than 10,000 inhabitants in the case of
    Water and Waste Water Disposal Grants and Direct and Guaranteed
    Loans or 20,000 inhabitants for Community Facility Loans and
    Grants. In the absence of an explicit definition for these
    areas the U.S. Department of Agriculture has traditionally
    interpreted the statute to include as eligible distinct
    population centers such as boroughs, villages, or other areas
    as unincorporated areas. These areas resulted from the unique
    development of the Northeast and reflect the fact that
    municipalities, not counties, are the prevailing jurisdictions
    of local governments. Villages and other such areas in the
    Northeast are often quasi-municipal jurisdictions whose status
    has been recognized by the Census Bureau as Census Designated
    Places within larger towns.
        In 2009, the USDA's Office of General Counsel issued a
    legal opinion and an Administrative Notice that would have
    prevented these unique entities within municipalities from
    receiving rural grants, loans, and loan guarantees. While the
    USDA ultimately withdrew their findings, there is still the
    possibility that communities in our area may be faced with loss
    of eligibility for these critical programs with no explicit
    definition for unincorporated areas.
        In the absence of an explicit definition of ``rural,'' USDA
    has stated that they would like to create a national policy for
    rural development program eligibility definitions. Should the
    USDA succeed with enacting such an approach, communities in the
    northeast could be disproportionally affected as a result of
    their unique character. Given the short distance between
    population centers previously eligible entities would likely
    lose their access to critical programs, most specifically Water
    and Waste Water Disposal Grants and Direct and Guaranteed Loans
    or Community Facility Loans and Grants. Water grants and loans
    ensure safe drinking water, sanity sewer, and solid waste and
    storm drainage facilities for rural entities that otherwise
    would not have the financial strength to unilaterally build or
    upgrade such facilities. Likewise, the Community Facility Loans
    and Grants assist in developing essential community facilities
    for public use in rural areas including hospitals, fire
    protection, safety, as well as many other community-based
    initiatives that otherwise might not be possible.
        During the committee's consideration of H.R. 6083, I
    offered an amendment that would have further clarified term
    ``unincorporated area'' to include state or municipally
    designated townships, villages, or boroughs as well as state,
    county, or municipal subdivisions such as a water and waste
    water or fire district, or any other separately identifiable
    unincorporated place that independently portrays the
    characteristics of a unit of general local government. Much
    like the current USDA guidance on the matter, my amendment
    would have ensured that the unique historic and rural character
    of northeast communities would have been maintained for the
    purposes of USDA's rural development programs.
        While I withdrew my amendment during mark up in order to
    provide additional time for the committee and USDA to continue
    to evaluate this issue, it is our expectation that should the
    department move forward with an explicit definition of
    ``rural'' that it will take into consideration the unique set
    of circumstances of communities in the Northeast. Moving
    forward with a one-size-fits-all classification without the
    flexibility to address the needs of differing regions of the
    country would do irreparable damage to rural segments of the
    Northeast. If USDA moves forward, it should take into
    consideration that municipalities, not counties, are the
    prevailing jurisdictions of local governments. Further, any
    definition of ``rural'' should ensure that any new definition
    of the ``unincorporated areas'' retains the flexibility needed
    to address the needs of unique communities of regions across
    the country.

                                       Joe Courtney.
                                       James McGovern.

                                DISSENTING VIEWS

        Title IV of H.R. 6083, the Federal Agriculture Reform and
    Risk Management Act (FARRM), represents poor policy and will
    result in less food for the most vulnerable people in the
    United States. Known as the Nutrition Title, the programs that
    make up Title IV are the safety net programs that provide food
    for the 44 million people that have difficulty feeding
    themselves and their families. The largest program in the
    Nutrition Title is the Supplemental Nutrition Assistance
    Program (SNAP), formerly known as Food Stamps.
        SNAP is the most effective and efficient federal program.
    The error rate was 3.81 % in 2010, the lowest in the history of
    the program. And that rate continues to decrease. Yet H.R. 6083
    cuts $16.5 billion from SNAP, a total that is nearly half of
    the cuts made in the entire bill. Indeed, these cuts directly
    affect the SNAP benefit because SNAP has such a low error rate,
    which means the vast majority of funding goes directly for food
    purchases. These cuts are detrimental, unnecessary and cruel,
    and we oppose them.
        Supporters of these cuts claim that they do not affect
    benefits; that they are merely closing loopholes. But the facts
    show that these cuts will result in less food for hungry
    Americans.
        This bill cuts three different SNAP provisions--Categorical
    Eligibility, the Standard Utility Allowance (SUA)/Low Income
    Home Energy Assistance Program (LIHEAP) connection, and the
    State Performance Fund.
        Categorical Eligibility (CAT-EL) is a paperwork
    simplification process that allows states to treat poor people
    the same for purposes of enrollment in our safety net programs.
    Specifically, CAT-EL allows low-income individuals or families
    who are already enrolled in the Temporary Assistance for Needy
    Families (TANF) program, commonly referred to as welfare, to be
    made automatically eligible for SNAP. This means that TANF
    recipients do not have to go through a separate SNAP
    eligibility determination process. However, this does not mean
    that everyone enrolled in SNAP via CAT-EL actually receives a
    SNAP benefit. Under this program, people do not get one dollar
    of SNAP that they do not qualify for; instead they are simply
    enrolled in the program and their benefit levels are determined
    through the standard process.
        CAT-EL saves critical time and money for the 40 states that
    currently participate in it, because people who are already
    eligible for similarly-administered benefits do not have to
    reapply for SNAP and states do not have to waste valuable
    worker hours processing paperwork for people who are already
    eligible based on their incomes. CAT-EL came about because of
    specific concerns states had about administrative procedures.
    Prior to the 2002 Farm Bill, states expressed concerns about
    the administrative burdens of administering TANF and SNAP to
    similar populations. USDA and the states worked together to
    allow states more options for administrative flexibility,
    including CAT-EL. H.R. 6083 includes significant cuts to CAT-
    EL. Specifically, H.R. 6083 prevents states from using broad-
    based CAT-EL, a policy change that will result in 2 to 3
    million people being cut from SNAP entirely.
        The current Standard Utility Allowance and LIHEAP policy
    allows states to use LIHEAP and SNAP to ensure that poor people
    are getting access to the SNAP benefits. States provide a
    nominal amount of LIHEAP funds to SNAP households. SNAP
    households are then able to claim these LIHEAP funds as part of
    the SNAP deductions as set in law for decades. These deductions
    are used to calculate the amount of the benefit for each person
    or household.
        Utilizing SUA the way states currently do simply
    streamlines a difficult and burdensome process. Under this
    program, people do not get one dollar of SNAP that they do not
    qualify for; instead, they are simply enrolled in the program
    and their benefit levels are determined through the standard
    process. The connection between the two programs reduces
    unnecessary paperwork for states and helps poor households
    claim a deduction. Without this connection, families would have
    to provide copies of all their utility bills, caseworkers would
    have to sift through them, and the entire effort would be more
    complicated and burdensome for states and families alike. The
    Standard Utility Allowance provisions in H.R. 6083 will cause
    500,000 households to see their SNAP benefits cut by an average
    of $90 a month.
        The State Performance Fund was created as a results-base
    program to reward states that reduce their incidents of fraud,
    waste and abuse and increase participation in SNAP. H.R. 6083
    eliminates the State Performance Fund, ending a program that
    has resulted in fewer errors and more low-income eligible
    people being enrolled in SNAP.
        The cuts in H.R. 6083 will deprive low-income Americans of
    nearly 1 billion meals in 2014 alone--but these cuts do not
    just impact SNAP. It is important to recognize that the SNAP
    cuts included in H.R. 6083 will cause 280,000 low-income
    children to be cut out of the free school lunch program.
        In order to prevent these devastating cuts, we sponsored
    and voted for the McGovern, Baca, Pingree, Courtney, Welch,
    Fudge, and Sewell amendment that would have repealed $16.5
    billion in cuts to SNAP included in H.R. 6083. Unfortunately,
    this amendment was defeated 15 to 31.
        Opponents of SNAP talk about a ``culture of dependency,''
    as if getting on SNAP is a lifelong goal for some. Yet 85% of
    families on SNAP are making less than $24,000 a year for a
    family of four. The average SNAP benefit is $1.50 per meal per
    day, an amount that will go down in September, 2013 even
    without the cuts included in H.R. 6083. And the SNAP benefit
    does not provide one hundred percent of the food necessary to
    feed a hungry family in a month. In fact, the benefit is
    designed to be a supplement to the monthly income that a family
    earns. For many, SNAP is a last resort for those who have no
    place else to turn. To call it a ``culture of dependency''
    implies that people are poor by choice and enjoy needing this
    help.
        And the cuts to Title IV included in H.R. 6083 would harm
    Americans beyond SNAP beneficiaries. These cuts would eliminate
    19,000 jobs at time when we need to be creating jobs. Food
    banks and charities, including many faith-based institutions,
    are the first line of defense against hunger and simply cannot
    keep up with current demand.
        Millions of Americans--after spending down most of their
    savings, selling cars, and making other serious cuts to their
    own budgets--put their pride aside and accept SNAP as a way to
    feed their families. Yet the answer to those struggling
    families today, the response to the call of hunger as laid out
    in H.R. 6083, is to continue the outrageous practice of preying
    on the poor.
        These cuts are immoral. They are hurtful. And they are
    exactly the wrong answer for people who struggle with hunger.
    H.R. 6083 continues the 112th Congress' practice of picking
    winners and losers based on income. Unfortunately, these
    policies will result in more hunger in America and will cause
    real harm to the men, women, seniors and children who rely on
    SNAP to put food on their tables.
                                       James P. McGovern.
                                       Marcia L. Fudge.
                                       David Scott.
                                       Peter Welch.
                                       Chellie Pingree.
                                       Joe Courtney.