[House Report 117-344]
[From the U.S. Government Publishing Office]


117th Congress   }                                   {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                   {       117-344

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

 
PRODUCING RESPONSIBLE ENERGY AND CONSERVATION INCENTIVES AND SOLUTIONS 
                        FOR THE ENVIRONMENT ACT

                                _______
                                

  June 3, 2022.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. David Scott of Georgia, from the Committee on Agriculture, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 2518]

    The Committee on Agriculture, to whom was referred the bill 
(H.R. 2518) to leverage incentives for the adoption of costly 
precision agriculture technology, and for other purposes, 
having considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                           Brief Explanation

    This legislation, as reported out of Committee, allows for 
the adoption of precision agriculture practices and the 
acquisition of precision agriculture technology to be 
activities included in the Conservation Loan and Guaranteed 
Loan Program. The bill also expands loan eligibility to rural 
entities for precision agriculture and rural broadband. This 
bill also adds the adoption of precision agriculture as an EQIP 
practice and as an additional payment authority of the 
Conservation Stewardship Program.

                    Purpose and Need for Legislation

    The House Agriculture Committee understands that science, 
technology, and innovation are important for the long-term 
success and sustainability of modern agriculture, family farms, 
and rural America. Precision agriculture and countless other 
innovations across the industry have resulted in American 
farmers becoming more efficient producers of food and fiber. 
Among other benefits, precision agriculture helps determine the 
best fertilizer for current soil conditions and where exactly 
on the field it needs to be applied. This allows farmers to 
know the precise amount required, thus, saving money and 
lowering emissions. In addition, improved fertilizer, soil, and 
water use can significantly improve water quality with less 
runoff.
    The expansion of affordable precision agriculture 
technologies and applications could substantially increase crop 
yields, improve distribution, and reduce inputs costs, while 
also reducing emissions and preventing soil degradation. 
However, many of these technologies remain cost prohibitive for 
the average farmer. To help make this technology more feasible 
and accessible to farmers, the Committee reported bill 
leverages incentives for the adoption of costly precision 
agriculture technology by increasing cost-share and practice 
payments under the Environmental Quality Incentives Program 
(EQIP) and the Conservation Stewardship Program (CSP).
    Under the Committee reported bill, this cost-share and 
payments would cover the purchase of precision agriculture 
equipment and systems; incentivize private sector financing of 
precision agriculture equipment through the Conservation Loan 
Guarantee Program and the Business and Industry Loan Guarantee 
Program; and fund 100% of precision agriculture projects 
through joint participation of conservation cost-share programs 
and the Conservation Loan Program.

H.R. 2518, Producing Responsible Energy and Conservation Incentives and 
                   Solutions for the Environment Act


                           SECTION-BY-SECTION

Section 1. Short title

    Section 1 provides the short title of the bill as the 
``Producing Responsible Energy and Conservation Incentives and 
Solutions for the Environment Act,'' or the ``PRECISE Act.''

Section 2. Conservation Loan and Loan Guarantee Program

    Subsection (1) amends section 304 subsection (b)(3) of the 
Consolidated Farm and Rural Development Act to add precision 
agriculture practices and the acquisition of precision 
agriculture technology to the list of conservations plans 
allowed under the conservation loan and loan guarantee program.
    Subsection (2) amends subsection (d) of the Consolidated 
Farm and Rural Development Act to include producers who use the 
loans to adopt precision agriculture practices or acquire 
precision agriculture technology to the list of eligible 
applicants.
    Subsection (3) grants the Secretary the authority to 
guarantee up to 90 percent of the principal amount of the loan 
for socially disadvantaged farmers or ranchers, beginning 
farmers or ranchers, or loans that are used for the purchase of 
precision agriculture technology.
    Subsection (4) amends subsection (f) of section 304 of the 
Consolidated Farm and Rural Development Act to require that the 
Secretary ensure there is coordination between FSA and NRCS to 
make and guarantee loans under the program.

Section 3. Assistance to rural entities

    This section amends section 310B(a)(2) of the Consolidated 
Farm and Rural Development Act to allow the Secretary to make 
and insure loans to rural entities for the purpose of expanding 
precision agriculture practices, which includes financing 
equipment and farm-wide broadband connectivity, to promote 
best-practices, reduce costs, and improve the environment.

Section 4. Environmental Quality Incentives Program

    Subsection (a) amends the definitions section of the Food 
Security Act of 1985 to include the adoption of precision 
agriculture practices and the acquisition of precision 
agriculture technology as an eligible conservation activity 
under the program.
    Subsection (b) amends section 1240B(d)(6) of the Food 
Security Act of 1985 to allow producers receiving payments for 
practices on eligible land under EQIP to also receive a loan or 
loan guarantee under section 304 of the Consolidated Farm and 
Rural Development Act to cover costs for the same practices on 
the same land. This subsection also amends section 1240B(d)(6) 
of the Food Security Act of 1985 and requires the Secretary to 
inform EQIP participants in writing of the availability of a 
loan or loan guarantee under section 304 of the Consolidated 
Farm and Rural Development Act. This subsection provides that 
the Secretary may increase the amount for a practice up to 90 
percent of the cost associated with the adoption of precision 
agriculture practices and acquiring precision agriculture 
technology.
    Subsection (c) includes adoption of precision agriculture 
and acquisition of precision agriculture technology in 
Conservation Incentive Contracts.

Section 5. Conservation Stewardship Program

    Subsection (a) amends section 1240L(c)(3) of the Food 
Security Act of 1985 by excluding payment under the 
Conservation Stewardship Program for a producer who did not 
incur payment or forgo income for conservation activities.
    Subsection (b) amends the Food Security Act of 1985 to 
include precision agriculture in the additional payments of the 
Conservation Stewardship Program.

Section 6. Delivery of Technical Assistance

    This section requires the Secretary to emphasize the use of 
third parties in providing technical assistance for soil health 
planning, including planning related to the use of cover crops, 
precision conservation management, comprehensive nutrient 
management planning, and other innovative plans.

                        Committee Consideration


                            I. SUBCOMMITTEE

    On May 12, 2021, the Subcommittee on Conservation and 
Forestry held a hearing entitled Title II Conservation 
Programs: Exploring Climate-Smart Practices where the following 
witnesses testified on conservation and precision agriculture 
strategies as they relate to climate and agriculture:
           Charles Isbell, Jr, Farmer and Co-Owner, 
        Keenbell Farm, Rockville, VA
           Kimberly Ratcliff, Owner, Caney Creek Ranch, 
        Oakwood, TX
           Dr. Keith Paustian, Distinguished Professor, 
        Dept. of Soil and Crop Science, Colorado State 
        University; Senior Research Scientist, Natural Resource 
        Ecology Laboratory, CSU
           Jamie Johansson, President, California Farm 
        Bureau, Sacramento, CA
    This hearing examined how Title II programs enacted through 
the farm bill encourage conservation measures like planting 
cover crops, reduced- to no-till management and improved 
grazing practices contribute to mitigating climate change and 
allow for more efficient farm production. Studies have shown 
that these practices have helped farmers produce a greater 
annual crop yield and improve the health of surrounding soils 
and adjacent watersheds. Precision agriculture has the 
potential to further improve agricultural relationships to 
long-term soil health. Proven precision methods have shown to 
reduce over-fertilization and runoff. An example of precision 
agriculture as discussed in the hearing is variable rate 
technology, allowing for farmers to specify what sort of 
nutrients and pesticides to use on different plots of the same 
field. New precision technology in conjunction with outlined 
agricultural conservation practices can rapidly improve our 
agricultural landscape and help farmers' bottom line.

                           II. FULL COMMITTEE

    On May 17, 2022, the Committee on Agriculture met pursuant 
to notice, with a quorum present to consider H.R. 2518, 
Producing Responsible Energy and Conservation Incentives and 
Solutions for the Environment. Chairman Scott made an opening 
statement as did Ranking Member Thompson. Chairman Scott 
requested other Members submit their opening statements for the 
record. Without objection, H.R. 2518 was placed before the 
Committee for consideration, a first reading of the bill was 
waived.
    Discussion occurred. Chairman Scott made a motion for 
unanimous consent to discharge H.R. 2518 from the Subcommittee 
on Commodity Exchanges, Energy, and Credit. The motion was 
adopted without objection. Chairman Scott made a motion for 
unanimous consent to adopt and favorably report H.R. 2518 to 
the House. The motion for unanimous consent was adopted without 
objection.
    The Committee recessed until May 18, 2022. At the 
conclusion of the meeting, Chairman Scott advised Members that 
pursuant to the Rules of the House of Representatives, Members 
had until May 20, 2022, at 12:00 p.m. to file any supplemental, 
additional, dissenting, or minority views with the Committee. 
Without objection, staff was given permission to make any 
necessary technical, clarifying, or conforming changes to 
reflect the intent of the Committee. Chairman Scott thanked all 
Members and adjourned the meeting.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the House of 
Representatives, H.R. 2518 was reported by unanimous consent 
with a majority quorum present.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report.

          Cost of Legislation and the Congressional Budget Act

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received a cost estimate for this bill from the 
Director of the Congressional Budget Office. The Committee 
adopts as its own cost estimate the forthcoming cost estimate 
of the Director of the Congressional Budget Office, should such 
cost estimate be made available before House passage of the 
bill.
    The Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether this bill contains any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures. Congressional Budget Office staff 
has informed the Committee on a preliminary, informal, 
nonbinding basis that there does not appear to be any revenue 
effects or direct spending associated with the bill.

                   Constitutional Authority Statement

    The Committee finds the Constitutional authority for this 
legislation in Article I, section 8, clause 3, that grants 
Congress the authority to regulate foreign and interstate 
commerce. The Committee further finds the Constitutional 
authority for this legislation in Article I, section 8, clause 
1, that grants Congress the power to provide for the general 
welfare of the United States.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the House of 
Representatives, the performance goals and objectives of this 
measure are to incentivize the adoption of precision 
agriculture by including such activities in existing programs.

                      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

    An estimate of Federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chair of 
the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

                           Earmark Statement

    This measure 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 House of 
Representatives.

                    Duplication of Federal Programs

    This measure does not establish or reauthorize a program of 
the Federal Government known to be duplicative of another 
Federal program, a program that was included in any report from 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program in the most recent Catalog of Federal Domestic 
Assistance.

                  Disclosure of Directed Rule Makings

    The Committee does not believe that the legislation directs 
an Executive Branch official to conduct any specific rule 
making proceedings within the meaning of 5 U.S.C. 551.

         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 italics, and existing law in which no 
change is proposed is shown in roman):

              CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT



           *       *       *       *       *       *       *
TITLE III--AGRICULTURAL CREDIT

           *       *       *       *       *       *       *


Subtitle A--Real Estate Loans

           *       *       *       *       *       *       *


SEC. 304. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

  (a) In General.--The Secretary may make or guarantee 
qualified conservation loans to eligible borrowers under this 
section.
  (b) Definitions.--In this section:
          (1) Qualified conservation loan.--The term 
        ``qualified conservation loan'' means a loan, the 
        proceeds of which are used to cover the costs to the 
        borrower of carrying out a qualified conservation 
        project.
          (2) Qualified conservation project.--The term 
        ``qualified conservation project'' means conservation 
        measures that address provisions of a conservation plan 
        of the eligible borrower.
          (3) Conservation plan.--The term ``conservation 
        plan'' means a plan, approved by the Secretary, that, 
        for a farming or ranching operation, identifies the 
        conservation activities that will be addressed with 
        loan funds provided under this section, including--
                  (A) the installation of conservation 
                structures to address soil, water, and related 
                resources;
                  (B) the establishment of forest cover for 
                sustained yield timber management, erosion 
                control, or shelter belt purposes;
                  (C) the installation of water conservation 
                measures;
                  (D) the installation of waste management 
                systems;
                  (E) the establishment or improvement of 
                permanent pasture;
                  (F) the adoption of precision agriculture 
                practices, and the acquisition of precision 
                agriculture technology;
                  [(F)] (G) compliance with section 1212 of the 
                Food Security Act of 1985; and
                  [(G)] (H) other purposes consistent with the 
                plan, including the adoption of any other 
                emerging or existing conservation practices, 
                techniques, or technologies approved by the 
                Secretary.
  (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, limited 
        liability companies, or such other legal entities as 
        the Secretary considers 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 
        subparagraphs (A) and (B) of section 302(a)(1).
  (d) Priority.--In making or guaranteeing loans under this 
section, the Secretary shall give priority to--
          (1) qualified beginning farmers or ranchers and 
        socially disadvantaged farmers or ranchers;
          (2) owners or tenants who use the loans to convert to 
        sustainable or organic agricultural production systems; 
        [and]
          (3) producers who use the loans to build conservation 
        structures or establish conservation practices to 
        comply with section 1212 of the Food Security Act of 
        1985[.]; and
          (4) producers who use the loans to adopt precision 
        agriculture practices or acquire precision agriculture 
        technology, including adoption or acquisition for the 
        purpose of participating in the environmental quality 
        incentives program under subchapter A of chapter 4 of 
        subtitle D of title XII of the Food Security Act of 
        1985.
  (e) Limitations Applicable to Loan Guarantees.--The portion 
of a loan that the Secretary may guarantee under this section 
shall be--
          (1) 80 percent of the principal amount of the loan; 
        or
          [(2) in the case of a producer that is a qualified 
        socially disadvantaged farmer or rancher or a beginning 
        farmer or rancher, 90 percent of the principal amount 
        of the loan.]
          (2) 90 percent of the principal amount of the loan in 
        the case of--
                  (A) a producer that is a qualified socially 
                disadvantaged farmer or rancher or a beginning 
                farmer or rancher; or
                  (B) loans that are used for the purchase of 
                precision agriculture technology.
  [(f) Administrative Provisions.--The Secretary] (f)  
Administrative Provisions._
          (1) Geographic diversity._The Secretary  shall 
        ensure, to the maximum extent practicable, that loans 
        made or guaranteed under this section are distributed 
        across diverse geographic regions.
          (2) Coordination with nrcs.--In making or 
        guaranteeing loans under this section, the Secretary 
        shall ensure that there is coordination between the 
        Farm Service Agency and the Natural Resources 
        Conservation Service.
  (g) Credit Eligibility.--The provisions of paragraphs (1) and 
(3) of section 333 shall not apply to loans made or guaranteed 
under this section.
  (h) Authorization of Appropriations.--There is authorized to 
be appropriated to the Secretary to carry out this section 
$150,000,000 for each of fiscal years 2014 through 2023.

           *       *       *       *       *       *       *


SEC. 310B. ASSISTANCE FOR RURAL ENTITIES.

  (a) Loans to Private Business Enterprises.--
          (1) Definitions.--In this subsection:
                  (A) Aquaculture.--The term ``aquaculture'' 
                means the culture or husbandry of aquatic 
                animals or plants by private industry for 
                commercial purposes including the culture and 
                growing of fish by private industry for the 
                purpose of creating or augmenting publicly 
                owned and regulated stocks of fish.
                  (B) Solar energy.--The term ``solar energy'' 
                means energy derived from sources (other than 
                fossil fuels) and technologies included in the 
                Federal Nonnuclear Energy Research and 
                Development Act of 1974, as amended.
          (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 
                through the financing of working capital) and 
                improving the economic and environmental 
                climate in rural communities, including 
                pollution abatement and control;
                  (B) the conservation, development, and use of 
                water for aquaculture purposes in rural areas;
                  (C) reducing the reliance on nonrenewable 
                energy resources by encouraging the development 
                and construction of solar energy systems and 
                other renewable energy systems (including wind 
                energy systems and anaerobic digestors for the 
                purpose of energy generation), including the 
                modification of existing systems, in rural 
                areas; [and]
                  (D) to facilitate economic opportunity for 
                industries undergoing adjustment from 
                terminated Federal agricultural price and 
                income support programs or increased 
                competition from foreign trade[.]; and
                  (E) expanding precision agriculture 
                practices, including by financing equipment and 
                farm-wide broadband connectivity, in order to 
                promote best-practices, reduce costs, and 
                improve the environment.
          (3) Loan guarantees.--Loans described in paragraph 
        (2), when originated, held, and serviced by other 
        lenders, may be guaranteed by the Secretary under this 
        section without regard to paragraphs (1) and (4) of 
        section 333.
          (4) Maximum amount of principal.--No loan may be 
        made, insured, or guaranteed under this subsection that 
        exceeds $25,000,000 in principal amount.
  (b) Solid Waste Management Grants.--
          (1) In general.--The Secretary may make grants to 
        nonprofit organizations for the provision of regional 
        technical assistance to local and regional governments 
        and related agencies for the purpose of reducing or 
        eliminating pollution of water resources and improving 
        the planning and management of solid waste disposal 
        facilities. Grants made under this paragraph for the 
        provision of technical assistance shall be made for 100 
        percent of the cost of such assistance.
          (2) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        subsection $10,000,000 for each of fiscal years 2014 
        through 2023.
  (c) Rural Business Development Grants.--
          (1) In general.--The Secretary may make grants under 
        this subsection to eligible entities described in 
        paragraph (2) in rural areas that primarily serve rural 
        areas for purposes described in paragraph (3).
          (2) Eligible entities.--The Secretary may make grants 
        under this subsection to--
                  (A) governmental entities;
                  (B) Indian tribes; and
                  (C) nonprofit entities.
          (3) Eligible purposes for grants.--Eligible entities 
        that receive grants under this subsection may use the 
        grant funds for--
                  (A) business opportunity projects that--
                          (i) identify and analyze business 
                        opportunities;
                          (ii) identify, train, and provide 
                        technical assistance to existing or 
                        prospective rural entrepreneurs and 
                        managers;
                          (iii) assist in the establishment of 
                        new rural businesses and the 
                        maintenance of existing businesses, 
                        including through business support 
                        centers;
                          (iv) conduct regional, community, and 
                        local economic development planning and 
                        coordination, and leadership 
                        development; and
                          (v) establish centers for training, 
                        technology, and trade that will provide 
                        training to rural businesses in the use 
                        of interactive communications 
                        technologies to develop international 
                        trade opportunities and markets; or
                  (B) projects that support the development of 
                business enterprises that finance or 
                facilitate--
                          (i) the development of small and 
                        emerging private business enterprise;
                          (ii) the establishment, expansion, 
                        and operation of rural distance 
                        learning networks;
                          (iii) the development of rural 
                        learning programs that provide 
                        educational instruction or job training 
                        instruction related to potential 
                        employment or job advancement to adult 
                        students; and
                          (iv) the provision of technical 
                        assistance and training to rural 
                        communities for the purpose of 
                        improving passenger transportation 
                        services or facilities.
          (4) Authorization of appropriations.--
                  (A) In general.--There is authorized to be 
                appropriated to the Secretary to carry out this 
                subsection $65,000,000 for each of fiscal years 
                2014 through 2023, to remain available until 
                expended.
                  (B) Allocation.--Of the funds made available 
                under subparagraph (A) for a fiscal year, not 
                more than 10 percent shall be used for the 
                purposes described in paragraph (3)(A).
  (d)(1) The Secretary may participate in joint financing to 
facilitate development of private business enterprises in rural 
areas with the Economic Development Administration, the Small 
Business Administration, and the Department of Housing and 
Urban Development and other Federal and State agencies and with 
private and quasi-public financial institutions, through joint 
loans to applicants eligible under subsection (a) for the 
purpose of improving, developing, or financing business, 
industry, and employment and improving the economic and 
environmental climate in rural areas or through joint grants to 
applicants eligible under subsection (c) for such purposes, 
including in the case of loans or grants the development, 
construction, or acquisition of land, buildings, plants, 
equipment, access streets and roads, parking areas, utility 
extensions, necessary water supply and waste disposal 
facilities, refining, service and fees.
  (2) No financial or other assistance shall be extended under 
any provision of this section, except for cases in which such 
assistance does not exceed $1,000,000 or for cases in which 
direct employment will not be increased by more than fifty 
employees, that is calculated to or is likely to result in the 
transfer from one area to another of any employment or business 
activity provided by operations of the applicant, but this 
limitation shall not be construed to prohibit assistance for 
the expansion of an existing business entity through the 
establishment of a new branch, affiliate, or subsidiary of such 
entity if the establishment of such branch, affiliate, or 
subsidiary will not result in an increase in unemployment in 
the area of original location or in any other area where such 
entity conducts business operations unless there is reason to 
believe that such branch, affiliate, or subsidiary is being 
established with the intention of closing down the operations 
of the existing business entity in the area of its original 
location or in any other area where it conducts such 
operations.
  (3) No financial or other assistance shall be extended under 
any provision of this section, except for cases in which such 
assistance does not exceed $1,000,000 or for cases in which 
direct employment will not be increased by more than fifty 
employees, which is calculated to or likely to result in an 
increase in the production of goods, materials, or commodities, 
or the availability of services or facilities in the area, when 
there is not sufficient demand for such goods, materials, 
commodities, services, or facilities, to employ the efficient 
capacity of existing competitive commercial or industrial 
enterprises, unless such financial or other assistance will not 
have an adverse effect upon existing competitive enterprises in 
the area.
  (4) No financial or other assistance shall be extended under 
any provision of this section, except for cases in which such 
assistance does not exceed $1,000,000 or for cases in which 
direct employment will not be increased by more than fifty 
employees, if the Secretary of Labor certifies within 30 days 
after the matter has been submitted to him by the Secretary of 
Agriculture that the provisions of paragraphs (2) and (3) of 
this subsection have not been complied with. The Secretary of 
Labor shall, in cooperation with the Secretary of Agriculture, 
develop a system of certification which will insure the 
expeditious processing of requests for assistance under this 
section.
  (5) No grant or loan authorized to be made under this title 
shall require or be subject to the prior approval of any 
officer, employee, or agency of any State.
  (6) No loan commitment issued under this section shall be 
conditioned upon the applicant investing in excess of 10 per 
centum in the business or industrial enterprise for which 
purpose the loan is to be made unless the Secretary determines 
there are special circumstances which necessitate an equity 
investment by the applicant greater than 10 per centum.
  (7) No provision of law shall prohibit issuance by the 
Secretary of certificates evidencing beneficial ownership in a 
block of notes insured or guaranteed under this title or Title 
V of the Housing Act of 1949; any sale by the Secretary of such 
certificates shall be treated as a sale of assets for the 
purposes of the Budget and Accounting Act of 1921. Any security 
representing beneficial ownership in a block of notes 
guaranteed or insured under this title or Title V of the 
Housing Act of 1949 issued by a private entity shall be exempt 
from laws administered by the Securities and Exchange 
Commission, except sections 17, 22, and 24 of the Securities 
Act of 1933, as amended; however, the Secretary shall require 
(i) that the issuer place such notes in the custody of an 
institution chartered by a Federal or State agency to act as 
trustee and (ii) that the issuer provide such periodic reports 
of sales as the Secretary deems necessary.
  (e) Rural Cooperative Development Grants.--
          (1) Definitions.--In this subsection:
                  (A) Nonprofit institution.--The term 
                ``nonprofit institution'' means any 
                organization or institution, including an 
                accredited institution of higher education, no 
                part of the net earnings of which inures, or 
                may lawfully inure, to the benefit of any 
                private shareholder or individual.
                  (B) United states.--The term ``United 
                States'' means the several States, the District 
                of Columbia, the Commonwealth of Puerto Rico, 
                the Virgin Islands, Guam, American Samoa, and 
                the other territories and possessions of the 
                United States.
          (2) Grants.--The Secretary shall make grants 
        effective October 1, 1996, under this subsection to 
        nonprofit institutions for the purpose of enabling the 
        institutions to establish and operate centers for rural 
        cooperative development.
          (3) Goals.--The goals of a center funded under this 
        subsection shall be to facilitate the creation of jobs 
        in rural areas through the development of new rural 
        cooperatives, value added processing, and rural 
        businesses.
          (4) Application.--Any nonprofit institution seeking a 
        grant under paragraph (2) shall submit to the Secretary 
        an application containing a plan for the establishment 
        and operation by the institution of a center or centers 
        for cooperative development. The Secretary may approve 
        the application if the plan contains the following:
                  (A) A provision that substantiates that the 
                center will effectively serve rural areas in 
                the United States.
                  (B) A provision that the primary objective of 
                the center will be to improve the economic 
                condition of rural areas through cooperative 
                development.
                  (C) A description of the activities that the 
                center will carry out to accomplish the 
                objective. The activities may include the 
                following:
                          (i) Programs for applied research and 
                        feasibility studies that may be useful 
                        to individuals, cooperatives, small 
                        businesses, and other similar entities 
                        in rural areas served by the center.
                          (ii) Programs for the collection, 
                        interpretation, and dissemination of 
                        information that may be useful to 
                        individuals, cooperatives, small 
                        businesses, and other similar entities 
                        in rural areas served by the center.
                          (iii) Programs providing training and 
                        instruction for individuals, 
                        cooperatives, small businesses, and 
                        other similar entities in rural areas 
                        served by the center.
                          (iv) Programs providing loans and 
                        grants to individuals, cooperatives, 
                        small businesses, and other similar 
                        entities in rural areas served by the 
                        center.
                          (v) Programs providing technical 
                        assistance, research services, and 
                        advisory services to individuals, 
                        cooperatives, small businesses, and 
                        other similar entities in rural areas 
                        served by the center.
                          (vi) Programs providing for the 
                        coordination of services and sharing of 
                        information among the center.
                  (D) A description of the contributions that 
                the activities are likely to make to the 
                improvement of the economic conditions of the 
                rural areas for which the center will provide 
                services.
                  (E) Provisions that the center, in carrying 
                out the activities, will seek, where 
                appropriate, the advice, participation, 
                expertise, and assistance of representatives of 
                business, industry, educational institutions, 
                the Federal Government, and State and local 
                governments.
                  (F) Provisions that the center will take all 
                practicable steps to develop continuing sources 
                of financial support for the center, 
                particularly from sources in the private 
                sector.
                  (G) Provisions for--
                          (i) monitoring and evaluating the 
                        activities by the nonprofit institution 
                        operating the center; and
                          (ii) accounting for money received by 
                        the institution under this section.
          (5) Awarding grants.--Grants made under paragraph (2) 
        shall be made on a competitive basis. In making grants 
        under paragraph (2), the Secretary shall give 
        preference to grant applications providing for the 
        establishment of centers for rural cooperative 
        development that--
                  (A) demonstrate a proven track record in 
                carrying out activities to promote and assist 
                the development of cooperatively and mutually 
                owned businesses;
                  (B) demonstrate previous expertise in 
                providing technical assistance in rural areas 
                to promote and assist the development of 
                cooperatively and mutually owned businesses;
                  (C) demonstrate the ability to assist in the 
                retention of businesses, facilitate the 
                establishment of cooperatives and new 
                cooperative approaches, and generate employment 
                opportunities that will improve the economic 
                conditions of rural areas;
                  (D) commit to providing technical assistance 
                and other services to underserved and 
                economically distressed areas in rural areas of 
                the United States;
                  (E) demonstrate a commitment to--
                          (i) networking with and sharing the 
                        results of the efforts of the center 
                        with other cooperative development 
                        centers and other organizations 
                        involved in rural economic development 
                        efforts; and
                          (ii) developing multiorganization and 
                        multistate approaches to addressing the 
                        economic development and cooperative 
                        needs of rural areas; and
                  (F) commit to providing a 25 percent matching 
                contribution with private funds and in-kind 
                contributions, except that the Secretary shall 
                not require non-Federal financial support in an 
                amount that is greater than 5 percent in the 
                case of a 1994 institution (as defined in 
                section 532 of the Equity in Educational Land-
                Grant Status Act of 1994 (7 U.S.C. 301 note; 
                Public Law 103-382)).
          (6) Grant period.--
                  (A) In general.--A grant awarded to a center 
                that has received no prior funding under this 
                subsection shall be made for a period of 1 
                year.
                  (B) Multiyear grants.--If the Secretary 
                determines it to be in the best interest of the 
                program, the Secretary shall award grants for a 
                period of more than 1 year, but not more than 3 
                years, to a center that has successfully met 
                the parameters described in paragraph (5), as 
                determined by the Secretary.
          (7) Authority to extend grant period.--The Secretary 
        may extend for 1 additional 12-month period the period 
        in which a grantee may use a grant made under this 
        subsection.
          (8) Technical assistance to prevent excessive 
        unemployment or underemployment.--In carrying out this 
        subsection, the Secretary may provide technical 
        assistance to alleviate or prevent conditions of 
        excessive unemployment, underemployment, outmigration, 
        or low employment growth in economically distressed 
        rural areas that the Secretary determines have a 
        substantial need for the assistance. The assistance may 
        include planning and feasibility studies, management 
        and operational assistance, and studies evaluating the 
        need for development potential of projects that 
        increase employment and improve economic growth in the 
        areas.
          (9) Grants to defray administrative costs.--The 
        Secretary may make grants to defray not to exceed 75 
        percent of the costs incurred by organizations and 
        public bodies to carry out projects for which grants or 
        loans are made under this subsection. For purposes of 
        determining the non-Federal share of the costs, the 
        Secretary shall consider contributions in cash and in 
        kind, fairly evaluated, including premises, equipment, 
        and services.
          (10) Cooperative research program.--The Secretary 
        shall enter into a cooperative research agreement with 
        1 or more qualified academic institutions in each 
        fiscal year to conduct research (including research and 
        analysis based on data from the latest available 
        Economic Census conducted by the Bureau of the Census) 
        on the effects of all types of cooperatives on the 
        national economy.
          (11) Addressing needs of minority communities.--
                  (A) Definition of socially disadvantaged 
                group.--In this paragraph, the term ``socially 
                disadvantaged group'' has the meaning given the 
                term in section 355(e).
                  (B) Reservation of funds.--
                          (i) In general.--If the total amount 
                        appropriated under paragraph (13) for a 
                        fiscal year exceeds $7,500,000, the 
                        Secretary shall reserve an amount equal 
                        to 20 percent of the total amount 
                        appropriated for grants for cooperative 
                        development centers, individual 
                        cooperatives, or groups of 
                        cooperatives--
                                  (I) that serve socially 
                                disadvantaged groups; and
                                  (II) a majority of the boards 
                                of directors or governing 
                                boards of which are comprised 
                                of individuals who are members 
                                of socially disadvantaged 
                                groups.
                          (ii) Insufficient applications.--To 
                        the extent there are insufficient 
                        applications to carry out clause (i), 
                        the Secretary shall use the funds as 
                        otherwise authorized by this 
                        subsection.
          (12) Interagency working group.--Not later than 90 
        days after the date of enactment of the Agricultural 
        Act of 2014, the Secretary shall coordinate and chair 
        an interagency working group to foster cooperative 
        development and ensure coordination with Federal 
        agencies and national and local cooperative 
        organizations that have cooperative programs and 
        interests.
          (13) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection $40,000,000 for each of fiscal years 2014 
        through 2023.
  (g) Business and Industry Direct and Guaranteed Loans.--
          (1) Definition of business and industry loan.--In 
        this subsection, the term ``business and industry 
        loan'' means a business and industry direct or 
        guaranteed loan that is made or guaranteed by the 
        Secretary under subsection (a)(2)(A), including 
        guarantees described in paragraph (3)(A)(ii).
          (2) Loan guarantees for the purchase of cooperative 
        stock.--
                  (A) In general.--The Secretary may guarantee 
                a business and industry loan to individual 
                farmers or ranchers for the purpose of 
                purchasing capital stock of a farmer or rancher 
                cooperative established for the purpose of 
                processing an agricultural commodity.
                  (B) Processing contracts during initial 
                period.--A cooperative described in 
                subparagraph (A) for which a farmer or rancher 
                receives a guarantee to purchase stock under 
                subparagraph (A) may contract for services to 
                process agricultural commodities, or otherwise 
                process value-added agricultural products, 
                during the 5-year period beginning on the date 
                of the startup of the cooperative in order to 
                provide adequate time for the planning and 
                construction of the processing facility of the 
                cooperative.
                  (C) Financial information.--Financial 
                information required by the Secretary from a 
                farmer or rancher as a condition of making a 
                business and industry loan guarantee under this 
                paragraph shall be provided in the manner 
                generally required by commercial agricultural 
                lenders in the area.
          (3) Loans to cooperatives.--
                  (A) Eligibility.--
                          (i) In general.--The Secretary may 
                        make or guarantee a business and 
                        industry loan to a cooperative 
                        organization that is headquartered in a 
                        metropolitan area if the loan is used 
                        for a project or venture described in 
                        subsection (a) that is located in a 
                        rural area or a loan guarantee that 
                        meets the requirements of paragraph 
                        (6).
                          (ii) Equity.--The Secretary may 
                        guarantee a loan made for the purchase 
                        of preferred stock or similar equity 
                        issued by a cooperative organization or 
                        a fund that invests primarily in 
                        cooperative organizations, if the 
                        guarantee significantly benefits 1 or 
                        more entities eligible for assistance 
                        for the purposes described in 
                        subsection (a)(1), as determined by the 
                        Secretary.
                  (B) Refinancing.--A cooperative organization 
                that is eligible for a business and industry 
                loan shall be eligible to refinance an existing 
                business and industry loan with a lender if--
                          (i) the cooperative organization--
                                  (I) is current and performing 
                                with respect to the existing 
                                loan; and
                                  (II) is not, and has not 
                                been, in payment default, or 
                                the collateral of which has not 
                                been converted, with respect to 
                                the existing loan; and
                          (ii) there is adequate security or 
                        full collateral for the refinanced 
                        loan.
          (4) Loan appraisals.--The Secretary may require that 
        any appraisal made in connection with a business and 
        industry loan be conducted by a specialized appraiser 
        that uses standards that are similar to standards used 
        for similar purposes in the private sector, as 
        determined by the Secretary.
          (5) Fees.--The Secretary may assess a 1-time fee for 
        any guaranteed business and industry loan in an amount 
        that does not exceed 2 percent of the guaranteed 
        principal portion of the loan.
          (6) Loan guarantees in nonrural areas.--
                  (A) In general.--The Secretary may guarantee 
                a business and industry loan to a cooperative 
                organization for a facility that is not located 
                in a rural area if--
                          (i) the primary purpose of the loan 
                        guarantee is for a facility to provide 
                        value-added processing for agricultural 
                        producers that are located within 80 
                        miles of the facility;
                          (ii) the applicant demonstrates to 
                        the Secretary that the primary benefit 
                        of the loan guarantee will be to 
                        provide employment for residents of a 
                        rural area; and
                          (iii) the total amount of business 
                        and industry loans guaranteed for a 
                        fiscal year under this paragraph does 
                        not exceed 10 percent of the business 
                        and industry loans guaranteed for the 
                        fiscal year under subsection (a)(2)(A).
                  (B) Principal amounts.--The principal amount 
                of a business and industry loan guaranteed 
                under this paragraph may not exceed 
                $25,000,000.
          (7) Intangible assets.--
                  (A) In general.--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.
                  (B) Accounts receivable.--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 accounts receivable as 
                security for the obligations entered into in 
                connection with loans and a borrower may use 
                accounts receivable as collateral to secure a 
                loan made or guaranteed under this subsection.
          (8) Limitations on loan guarantees for cooperative 
        organizations.--
                  (A) Principal amount.--
                          (i) In general.--Subject to clause 
                        (ii), the principal amount of a 
                        business and industry loan made to a 
                        cooperative organization and guaranteed 
                        under this subsection shall not exceed 
                        $40,000,000.
                          (ii) Use.--To be eligible for a 
                        guarantee under this subsection for a 
                        business and industry loan made to a 
                        cooperative organization, the principal 
                        amount of the any such loan in excess 
                        of $25,000,000 shall be used to carry 
                        out a project that--
                                  (I)(aa) is in a rural area; 
                                and
                                  (bb) provides for the value-
                                added processing of 
                                agricultural commodities; or
                                  (II) significantly benefits 1 
                                or more entities eligible for 
                                assistance for the purposes 
                                described in subsection (a)(1), 
                                as determined by the Secretary.
                  (B) Applications.--If a cooperative 
                organization submits an application for a 
                guarantee under this subsection of a business 
                and industry loan with a principal amount that 
                is in excess of $25,000,000, the Secretary--
                          (i) shall review and, if appropriate, 
                        approve the application; and
                          (ii) may not delegate the approval 
                        authority.
                  (C) Maximum amount.--The total amount of 
                business and industry loans made to cooperative 
                organizations and guaranteed for a fiscal year 
                under this subsection with principal amounts 
                that are in excess of $25,000,000 may not 
                exceed 10 percent of the business and industry 
                loans guaranteed for the fiscal year under 
                subsection (a)(2)(A).
          (9) Locally or regionally produced agricultural food 
        products.--
                  (A) Definitions.--In this paragraph:
                          (i) Locally or regionally produced 
                        agricultural food product.--The term 
                        ``locally or regionally produced 
                        agricultural food product'' means any 
                        agricultural food product that is 
                        raised, produced, and distributed in--
                                  (I) the locality or region in 
                                which the final product is 
                                marketed, so that the total 
                                distance that the product is 
                                transported is less than 400 
                                miles from the origin of the 
                                product; or
                                  (II) the State in which the 
                                product is produced.
                          (ii) Underserved community.--The term 
                        ``underserved community'' means a 
                        community (including an urban or rural 
                        community and an Indian tribal 
                        community) that has, as determined by 
                        the Secretary--
                                  (I) limited access to 
                                affordable, healthy foods, 
                                including fresh fruits and 
                                vegetables, in grocery retail 
                                stores or farmer-to-consumer 
                                direct markets; and
                                  (II) a high rate of hunger or 
                                food insecurity or a high 
                                poverty rate.
                  (B) Loan and loan guarantee program.--
                          (i) In general.--The Secretary shall 
                        make or guarantee loans to individuals, 
                        cooperatives, cooperative 
                        organizations, businesses, and other 
                        entities to establish and facilitate 
                        enterprises that process, distribute, 
                        aggregate, store, and market locally or 
                        regionally produced agricultural food 
                        products to support community 
                        development and farm and ranch income.
                          (ii) Requirement.--The recipient of a 
                        loan or loan guarantee under clause (i) 
                        shall include in an appropriate 
                        agreement with retail and institutional 
                        facilities to which the recipient sells 
                        locally or regionally produced 
                        agricultural food products a 
                        requirement to inform consumers of the 
                        retail or institutional facilities that 
                        the consumers are purchasing or 
                        consuming locally or regionally 
                        produced agricultural food products.
                          (iii) Priority.--In making or 
                        guaranteeing a loan under clause (i), 
                        the Secretary shall give priority to 
                        projects that have components 
                        benefitting underserved communities.
                          (iv) Reservation of funds.--
                                  (I) In general.--For each of 
                                fiscal years 2008 through 2023, 
                                the Secretary shall reserve not 
                                less than 5 percent of the 
                                funds made available to carry 
                                out this subsection to carry 
                                out this subparagraph.
                                  (II) Availability of funds.--
                                Funds reserved under subclause 
                                (I) for a fiscal year shall be 
                                reserved until April 1 of the 
                                fiscal year.
  (h) Loan Guarantees for Certain Loans.--The Secretary may 
guarantee loans made under subsection (a) to finance the 
issuance of bonds for the projects described in section 
306(a)(24).
  (i) Appropriate Technology Transfer for Rural Areas 
Program.--
          (1) Definition of national nonprofit agricultural 
        assistance institution.--In this subsection, the term 
        ``national nonprofit agricultural assistance 
        institution'' means an organization that--
                  (A) is described in section 501(c)(3) of the 
                Internal Revenue Code of 1986 and exempt from 
                taxation under 501(a) of that Code;
                  (B) has staff and offices in multiple regions 
                of the United States;
                  (C) has experience and expertise in operating 
                national agriculture technical assistance 
                programs;
                  (D) expands markets for the agricultural 
                commodities produced by producers through the 
                use of practices that enhance the environment, 
                natural resource base, and quality of life; and
                  (E) improves the economic viability of 
                agricultural operations.
          (2) Establishment.--The Secretary shall establish a 
        national appropriate technology transfer for rural 
        areas program to assist agricultural producers that are 
        seeking information to--
                  (A) reduce input costs;
                  (B) conserve energy resources;
                  (C) diversify operations through new energy 
                crops and energy generation facilities; and
                  (D) expand markets for agricultural 
                commodities produced by the producers by using 
                practices that enhance the environment, natural 
                resource base, and quality of life.
          (3) Implementation.--
                  (A) In general.--The Secretary shall carry 
                out the program under this subsection by making 
                a grant to, or offering to enter into a 
                cooperative agreement with, a national 
                nonprofit agricultural assistance institution.
                  (B) Grant amount.--A grant made, or 
                cooperative agreement entered into, under 
                subparagraph (A) shall provide 100 percent of 
                the cost of providing information described in 
                paragraph (2).
          (4) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection $5,000,000 for each of fiscal years 2008 
        through 2023.
  (j) Rural Economic Area Partnership Zones.--Effective 
beginning on the date of enactment of this subsection through 
September 30, 2023, the Secretary shall carry out those rural 
economic area partnership zones administratively in effect on 
the date of enactment of this subsection in accordance with the 
terms and conditions contained in the memorandums of agreement 
entered into by the Secretary for the rural economic area 
partnership zones, except as otherwise provided in this 
subsection.

           *       *       *       *       *       *       *

                              ----------                              


                       FOOD SECURITY ACT OF 1985



           *       *       *       *       *       *       *
TITLE XII--CONSERVATION

           *       *       *       *       *       *       *


Subtitle D--Agricultural Resources Conservation Program

           *       *       *       *       *       *       *


 CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM AND CONSERVATION 
                          STEWARDSHIP PROGRAM

Subchapter A--Environmental Quality Incentives Program

           *       *       *       *       *       *       *


SEC. 1240A. DEFINITIONS.

   In this subchapter:
          (1) Conservation planning assessment.--The term 
        ``conservation planning assessment'' means a report, as 
        determined by the Secretary, that--
                  (A) is developed by--
                          (i) a State or unit of local 
                        government (including a conservation 
                        district);
                          (ii) a Federal agency; or
                          (iii) a third-party provider 
                        certified under section 1242(e) 
                        (including a certified rangeland 
                        professional);
                  (B) assesses rangeland or cropland function 
                and describes conservation activities to 
                enhance the economic and ecological management 
                of that land; and
                  (C) can be incorporated into a comprehensive 
                planning document required by the Secretary for 
                enrollment in a conservation program of the 
                Department of Agriculture.
          (2) Eligible land.--
                  (A) In general.--The term ``eligible land'' 
                means land on which agricultural commodities, 
                livestock, or forest-related products are 
                produced.
                  (B) Inclusions.--The term ``eligible land'' 
                includes the following:
                          (i) Cropland.
                          (ii) Grassland.
                          (iii) Rangeland.
                          (iv) Pasture land.
                          (v) Nonindustrial private forest 
                        land.
                          (vi) Other agricultural land 
                        (including cropped woodland, marshes, 
                        environmentally sensitive areas, and 
                        agricultural land used for the 
                        production of livestock) on which 
                        identified or expected resource 
                        concerns related to agricultural 
                        production could be addressed through a 
                        contract under the program, as 
                        determined by the Secretary.
          (3) Incentive practice.--The term ``incentive 
        practice'' means a practice or set of practices 
        approved by the Secretary that, when implemented and 
        maintained on eligible land, address 1 or more priority 
        resource concerns.
          (4) Organic system plan.--The term ``organic system 
        plan'' means an organic plan approved under the 
        national organic program established under the Organic 
        Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).
          (5) Payment.--The term ``payment'' means financial 
        assistance provided to a producer for performing 
        practices under this subchapter, including compensation 
        for--
                  (A) incurred costs associated with planning, 
                design, materials, equipment, installation, 
                labor, management, maintenance, or training; 
                and
                  (B) income forgone by the producer.
          (6) Practice.--The term ``practice'' means 1 or more 
        improvements and conservation activities that are 
        consistent with the purposes of the program under this 
        subchapter, as determined by the Secretary, including--
                  (A) improvements to eligible land of the 
                producer, including--
                          (i) structural practices;
                          (ii) land management practices;
                          (iii) vegetative practices;
                          (iv) forest management;
                          (v) soil testing;
                          (vi) soil remediation to be carried 
                        out by the producer; and
                          (vii) other practices that the 
                        Secretary determines would further the 
                        purposes of the program; and
                  (B) conservation activities involving the 
                development of plans appropriate for the 
                eligible land of the producer, including--
                          (i) comprehensive nutrient management 
                        planning;
                          (ii) planning for resource-conserving 
                        crop rotations (as defined in section 
                        1240L(d)(1));
                          (iii) soil health planning, including 
                        increasing soil organic matter and the 
                        use of cover crops;
                          (iv) a conservation planning 
                        assessment;
                          (v) precision conservation management 
                        planning (including the adoption of 
                        precision agriculture practices and the 
                        acquisition of precision agriculture 
                        technology); and
                          (vi) other plans that the Secretary 
                        determines would further the purposes 
                        of the program under this subchapter.
          (7) 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; and
                  (B) represents a significant concern in a 
                State or region.
          (8) Program.--The term ``program'' means the 
        environmental quality incentives program established by 
        this subchapter.
          (9) Soil remediation.--The term ``soil remediation'' 
        means scientifically based practices that--
                  (A) ensure the safety of producers from 
                contaminants in soil;
                  (B) limit contaminants in soil from entering 
                agricultural products for human or animal 
                consumption; and
                  (C) regenerate and sustain the soil.
          (10) Soil testing.--The term ``soil testing'' means 
        the evaluation of soil health, including testing for--
                  (A) the optimal level of constituents in the 
                soil, such as organic matter, nutrients, and 
                the potential presence of soil contaminants, 
                including heavy metals, volatile organic 
                compounds, polycyclic aromatic hydrocarbons, or 
                other contaminants; and
                  (B) the biological and physical 
                characteristics indicative of proper soil 
                functioning.

SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION.

  (a) Establishment.--During each of the 2002 through 2023 
fiscal years, the Secretary shall provide payments to producers 
that enter into contracts with the Secretary under the program.
  (b) Practices and Term.--
          (1) Practices.--A contract under the program may 
        apply to the performance of one or more practices.
          (2) Term.--A contract under the program shall have a 
        term that does not exceed 10 years.
  (c) Bidding Down.--If the Secretary determines that the 
environmental values of two or more applications for payments 
are comparable, the Secretary shall not assign a higher 
priority to the application only because it would present the 
least cost to the program.
  (d) Payments.--
          (1) Availability of payments.--Payments are provided 
        to a producer to implement one or more practices under 
        the program.
          (2) Limitation on payment amounts.--A payment to a 
        producer for performing a practice may not exceed, as 
        determined by the Secretary--
                  (A) 75 percent of the costs associated with 
                planning, design, materials, equipment, 
                installation, labor, management, maintenance, 
                or training;
                  (B) 100 percent of income foregone by the 
                producer; or
                  (C) in the case of a practice consisting of 
                elements covered under subparagraphs (A) and 
                (B)--
                          (i) 75 percent of the costs incurred 
                        for those elements covered under 
                        subparagraph (A); and
                          (ii) 100 percent of income foregone 
                        for those elements covered under 
                        subparagraph (B).
          (3) Special rule involving payments for foregone 
        income.--In determining the amount and rate of payments 
        under paragraph (2)(B), the Secretary may accord great 
        significance to a practice that, as determined by the 
        Secretary, promotes--
                  (A) soil health;
                  (B) water quality and quantity improvement;
                  (C) nutrient management;
                  (D) pest management;
                  (E) air quality improvement;
                  (F) wildlife habitat development, including 
                pollinator habitat; or
                  (G) invasive species management.
          (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, a veteran farmer or rancher (as 
                defined in section 2501(e) of the Food, 
                Agriculture, Conservation, and Trade Act of 
                1990 (7 U.S.C. 2279(e))), or a beginning farmer 
                or rancher, the Secretary shall increase the 
                amount that would otherwise be provided to a 
                producer under this subsection--
                          (i) to not more than 90 percent of 
                        the costs associated with planning, 
                        design, materials, equipment, 
                        installation, labor, management, 
                        maintenance, or training; and
                          (ii) to not less than 25 percent 
                        above the otherwise applicable rate.
                  (B) Advance payments.--
                          (i) In general.--On an election by a 
                        producer described in subparagraph (A), 
                        the Secretary shall provide at least 50 
                        percent of the amount determined under 
                        subparagraph (A) in advance for all 
                        costs related to 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 timeframe, as determined by 
                        the Secretary.
                          (iii) Notification and 
                        documentation.--The Secretary shall--
                                  (I) notify each producer 
                                described in subparagraph (A), 
                                at the time of enrollment in 
                                the program, of the option to 
                                receive advance payments under 
                                clause (i); and
                                  (II) document the election of 
                                each producer described in 
                                subparagraph (A) to receive 
                                advance payments under clause 
                                (i) with respect to each 
                                practice that has costs 
                                described in that clause.
          (5) Financial assistance from other sources.--Except 
        as provided in paragraph (6), any payments received by 
        a producer from a State or private organization or 
        person for the implementation of one or more practices 
        on eligible land of the producer shall be in addition 
        to the payments provided to the producer under this 
        subsection.
          (6) Other payments.--[A producer shall]
                  (A) Payments under this subtitle._A producer 
                shall  not be eligible for payments for 
                practices on eligible land under the program if 
                the producer receives payments or other 
                benefits for the same practice on the same land 
                under another program under this subtitle.
                  (B) Conservation loan and loan guarantee 
                program payments.--
                          (i) In general.--A producer receiving 
                        payments for practices on eligible land 
                        under the program may also receive a 
                        loan or loan guarantee under section 
                        304 of the Consolidated Farm and Rural 
                        Development Act to cover costs for same 
                        practices on the same land.
                          (ii) Notice to producer.--The 
                        Secretary shall inform a producer 
                        participating in the program in writing 
                        of the availability of a loan or loan 
                        guarantee under section 304 of the 
                        Consolidated Farm and Rural Development 
                        Act as it relates to costs of 
                        implementing practices under this 
                        program.
          (7) Increased payments for state-determined high-
        priority practices.--
                  (A) State determination.--Each State, in 
                consultation with the State technical committee 
                established under section 1261(a) for the 
                State, may designate not more than 10 practices 
                to be eligible for increased payments under 
                subparagraph (B), on the condition that the 
                practice, as determined by the Secretary--
                          (i) addresses specific causes of 
                        impairment relating to excessive 
                        nutrients in groundwater or surface 
                        water;
                          (ii) addresses the conservation of 
                        water to advance drought mitigation and 
                        declining aquifers;
                          (iii) meets other environmental 
                        priorities and other priority resource 
                        concerns identified in habitat or other 
                        area restoration plans; or
                          (iv) is geographically targeted to 
                        address a natural resource concern in a 
                        specific watershed.
                  (B) Increased payments.--Notwithstanding 
                paragraph (2), in the case of a practice 
                designated under subparagraph (A), the 
                Secretary may increase the amount that would 
                otherwise be provided for a practice under this 
                subsection to not more than 90 percent of the 
                costs associated with planning, design, 
                materials, equipment, installation, labor, 
                management, maintenance, or training.
          (8) Increased payments for precision agriculture.--
        Notwithstanding paragraph (2), the Secretary may 
        increase the amount that would otherwise be provided 
        for a practice under this subsection to not more than 
        90 percent of the costs associated with adopting 
        precision agriculture practices and acquiring precision 
        agriculture technology.
  (e) Modification or Termination of Contracts.--
          (1) Voluntary modification or termination.--The 
        Secretary may modify or terminate a contract entered 
        into with a producer under the program if--
                  (A) the producer agrees to the modification 
                or termination; and
                  (B) the Secretary determines that the 
                modification or termination is in the public 
                interest.
          (2) Involuntary termination.--The Secretary may 
        terminate a contract under the program if the Secretary 
        determines that the producer violated the contract.
  (f) Allocation of Funding.--
          (1) Livestock.--For each of fiscal years 2019 through 
        2023, at least 50 percent of the funds made available 
        for payments under the program shall be targeted at 
        practices relating to livestock production, including 
        grazing management practices.
          (2) Wildlife habitat.--
                  (A) Fiscal years 2014 through 2018.--For each 
                of fiscal years 2014 through 2018, at least 5 
                percent of the funds made available for 
                payments under the program shall be targeted at 
                practices benefitting wildlife habitat under 
                subsection (g).
                  (B) Fiscal years 2019 through 2023.--For each 
                of fiscal years 2019 through 2023, at least 10 
                percent of the funds made available for 
                payments under the program shall be targeted at 
                practices benefitting wildlife habitat under 
                subsection (g).
  (g) Wildlife Habitat Incentive Program.--
          (1) In general.--The Secretary shall provide payments 
        under the environmental quality incentives program for 
        conservation practices that support the restoration, 
        development, protection, and improvement of wildlife 
        habitat on eligible land, including--
                  (A) upland wildlife habitat;
                  (B) wetland wildlife habitat;
                  (C) habitat for threatened and endangered 
                species;
                  (D) fish habitat;
                  (E) habitat on pivot corners and other 
                irregular areas of a field; and
                  (F) other types of wildlife habitat, as 
                determined by the Secretary.
          (2) State technical committee.--In determining the 
        practices eligible for payment under paragraph (1) and 
        targeted for funding under subsection (f), the 
        Secretary shall consult with the relevant State 
        technical committee not less often than once each year.
          (3) Maximum term.--In the case of a contract under 
        the program entered into solely for the establishment 
        of 1 or more annual management practices for the 
        benefit of wildlife as described in paragraph (1), 
        notwithstanding any maximum contract term established 
        by the Secretary, the contract shall have a term that 
        does not exceed 10 years.
          (4) Included practices.--For the purpose of providing 
        seasonal wetland habitat for waterfowl and migratory 
        birds, a practice that is eligible for payment under 
        paragraph (1) and targeted for funding under subsection 
        (f) may include--
                  (A) a practice to carry out postharvest 
                flooding; or
                  (B) a practice to maintain the hydrology of 
                temporary and seasonal wetlands of not more 
                than 2 acres to maintain waterfowl and 
                migratory bird habitat on working cropland.
  (h) Water Conservation or Irrigation Efficiency Practice.--
          (1) Availability of payments.--The Secretary may 
        provide water conservation and system efficiency 
        payments under this subsection to an entity described 
        in paragraph (2) or a producer for--
                  (A) water conservation scheduling, water 
                distribution efficiency, soil moisture 
                monitoring, or an appropriate combination 
                thereof;
                  (B) irrigation-related structural or other 
                measures that conserve surface water or 
                groundwater, including managed aquifer recovery 
                practices; or
                  (C) a transition to water-conserving crops, 
                water-conserving crop rotations, or deficit 
                irrigation.
          (2) Eligibility of certain entities.--
                  (A) In general.--Notwithstanding section 
                1001(f)(6), the Secretary may enter into a 
                contract under this subsection with a State, 
                irrigation district, groundwater management 
                district, acequia, land-grant mercedes, or 
                similar entity under a streamlined contracting 
                process to implement water conservation or 
                irrigation practices under a watershed-wide 
                project that will effectively conserve water, 
                provide fish and wildlife habitat, or provide 
                for drought-related environmental mitigation, 
                as determined by the Secretary.
                  (B) Implementation.--Water conservation or 
                irrigation practices that are the subject of a 
                contract entered into under subparagraph (A) 
                shall be implemented on--
                          (i) eligible land of a producer; or
                          (ii) land that is--
                                  (I) under the control of an 
                                irrigation district, 
                                groundwater management 
                                district, acequia, land-grant 
                                mercedes, or similar entity; 
                                and
                                  (II) adjacent to eligible 
                                land described in clause (i), 
                                as determined by the Secretary.
                  (C) Waiver authority.--The Secretary may 
                waive the applicability of the limitations in 
                section 1001D(b) or section 1240G for a payment 
                made under a contract entered into under this 
                paragraph if the Secretary determines that the 
                waiver is necessary to fulfill the objectives 
                of the project.
                  (D) Contract limitations.--If the Secretary 
                grants a waiver under subparagraph (C), the 
                Secretary may impose a separate payment 
                limitation for the contract with respect to 
                which the waiver applies.
          (3) Priority.--In providing payments under this 
        subsection for a water conservation or irrigation 
        practice, the Secretary shall give priority to 
        applications in which--
                  (A) consistent with the law of the State in 
                which the land on which the practices will be 
                implemented is located, there is a reduction in 
                water use in the operation on that land; or
                  (B) except in the case of an application 
                under paragraph (2), the producer agrees not to 
                use any associated water savings to bring new 
                land, other than incidental land needed for 
                efficient operations, under irrigated 
                production, unless the producer is 
                participating in a watershed-wide project that 
                will effectively conserve water, as determined 
                by the Secretary.
          (4) Effect.--Nothing in this subsection authorizes 
        the Secretary to modify the process for determining the 
        annual allocation of funding to States under the 
        program.
  (i) Payments for Conservation Practices Related to Organic 
Production.--
          (1) Payments authorized.--The Secretary shall provide 
        payments under this subsection for conservation 
        practices, on some or all of the operations of a 
        producer, related--
                  (A) to organic production; and
                  (B) to the transition to organic production.
          (2) Eligibility requirements.--As a condition for 
        receiving payments under this subsection, a producer 
        shall agree--
                  (A) to develop and carry out an organic 
                system plan; or
                  (B) to develop and implement conservation 
                practices for certified organic production that 
                are consistent with an organic system plan and 
                the purposes of this subchapter.
          (3) Payment limitations.--
                  (A) In general.--Payments under this 
                subsection to a person or legal entity, 
                directly or indirectly, may not exceed, in the 
                aggregate--
                          (i) through fiscal year 2018--
                                  (I) $20,000 per year; or
                                  (II) $80,000 during any 6-
                                year period; and
                          (ii) during the period of fiscal 
                        years 2019 through 2023, $140,000.
                  (B) Technical assistance.--In applying the 
                limitations under subparagraph (A), the 
                Secretary shall not take into account payments 
                received for technical assistance.
          (4) Exclusion of certain organic certification 
        costs.--Payments may not be made under this subsection 
        to cover the costs associated with organic 
        certification that are eligible for cost-share payments 
        under section 10606 of the Farm Security and Rural 
        Investment Act of 2002 (7 U.S.C. 6523).
          (5) Termination of contracts.--The Secretary may 
        cancel or otherwise nullify a contract to provide 
        payments under this subsection if the Secretary 
        determines that the producer--
                  (A) is not pursuing organic certification; or
                  (B) is not in compliance with the Organic 
                Foods Production Act of 1990 (7 U.S.C. 6501 et 
                seq).
  (j) Conservation Incentive Contracts.--
          (1) Identification of eligible priority resource 
        concerns for states.--
                  (A) In general.--The Secretary, in 
                consultation with the applicable State 
                technical committee established under section 
                1261(a), shall identify watersheds (or other 
                appropriate regions or areas within a State) 
                and the corresponding priority resource 
                concerns for those watersheds or other regions 
                or areas that are eligible to be the subject of 
                an incentive contract under this subsection.
                  (B) Limitation.--For each of the relevant 
                land uses within the watersheds, regions, or 
                other areas identified under subparagraph (A), 
                the Secretary shall identify not more than 3 
                eligible priority resource concerns.
          (2) Contracts.--
                  (A) Authority.--
                          (i) In general.--The Secretary shall 
                        enter into contracts with producers 
                        under this subsection that require the 
                        implementation, adoption, management, 
                        and maintenance of incentive practices 
                        (which may include the adoption of 
                        precision agriculture practices and the 
                        acquisition of precision agriculture 
                        technology) that effectively address at 
                        least 1 eligible priority resource 
                        concern identified under paragraph (1) 
                        for the term of the contract.
                          (ii) Inclusions.--Through a contract 
                        entered into under clause (i), the 
                        Secretary may provide--
                                  (I) funding, through annual 
                                payments, for certain incentive 
                                practices to attain increased 
                                levels of conservation on 
                                eligible land; or
                                  (II) assistance, through a 
                                practice payment, to implement 
                                an incentive practice.
                  (B) Term.--A contract under this subsection 
                shall have a term of not less than 5, and not 
                more than 10, years.
                  (C) Prioritization.--Notwithstanding section 
                1240C, the Secretary shall develop criteria for 
                evaluating incentive practice applications 
                that--
                          (i) give priority to applications 
                        that address eligible priority resource 
                        concerns identified under paragraph 
                        (1); and
                          (ii) evaluate applications relative 
                        to other applications for similar 
                        agriculture and forest operations.
          (3) Incentive practice payments.--
                  (A) In general.--The Secretary shall provide 
                payments to producers through contracts entered 
                into under paragraph (2) for--
                          (i) adopting and installing incentive 
                        practices; and
                          (ii) managing, maintaining, and 
                        improving the incentive practices for 
                        the duration of the contract, as 
                        determined appropriate by the 
                        Secretary.
                  (B) Payment amounts.--In determining the 
                amount of payments under subparagraph (A), the 
                Secretary shall consider, to the extent 
                practicable--
                          (i) the level and extent of the 
                        incentive practice to be installed, 
                        adopted, completed, maintained, 
                        managed, or improved;
                          (ii) the cost of the installation, 
                        adoption, completion, management, 
                        maintenance, or improvement of the 
                        incentive practice;
                          (iii) income foregone by the 
                        producer, including payments, as 
                        appropriate, to address--
                                  (I) increased economic risk;
                                  (II) loss in revenue due to 
                                anticipated reductions in 
                                yield; and
                                  (III) economic losses during 
                                transition to a resource-
                                conserving cropping system or 
                                resource-conserving land use; 
                                and
                          (iv) the extent to which compensation 
                        would ensure long-term continued 
                        maintenance, management, and 
                        improvement of the incentive practice.
                  (C) Delivery of payments.--In making payments 
                under subparagraph (A), the Secretary shall, to 
                the extent practicable--
                          (i) in the case of annual payments 
                        under paragraph (2)(A)(ii)(I), make 
                        those payments as soon as practicable 
                        after October 1 of each fiscal year for 
                        which increased levels of conservation 
                        are maintained during the term of the 
                        contract; and
                          (ii) in the case of practice payments 
                        under paragraph (2)(A)(ii)(II), make 
                        those payments as soon as practicable 
                        on the implementation of an incentive 
                        practice.

           *       *       *       *       *       *       *


Subchapter B--Conservation Stewardship Program

           *       *       *       *       *       *       *


SEC. 1240L. DUTIES OF THE SECRETARY.

  (a) In General.--To achieve the conservation goals of a 
contract under the conservation stewardship program, the 
Secretary shall--
          (1) make the program available to eligible producers 
        on a continuous enrollment basis with 1 or more ranking 
        periods, 1 of which shall occur in the first quarter of 
        each fiscal year;
          (2) identify not less than 5 priority resource 
        concerns in a particular watershed or other appropriate 
        region or area within a State; and
          (3) establish a science-based stewardship threshold 
        for each priority resource concern identified under 
        paragraph (2).
  (b) Allocation to States.--The Secretary shall allocate 
funding 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) 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 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 are 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.]
          (3) Exclusions.--A payment to a producer under this 
        subsection shall not be provided for conservation 
        activities for which there is no cost incurred or 
        income forgone by 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 such payments as soon as practicable 
                after October 1 of each fiscal year for 
                activities carried out in the previous fiscal 
                year.
          (5) Payment for cover crop activities.--The amount of 
        a payment under this subsection for cover crop 
        activities shall be not less than 125 percent of the 
        annual payment amount determined by the Secretary under 
        paragraph (2).
  (d) Supplemental Payments for Resource-Conserving Crop 
Rotations [and Advanced Grazing Management], Advanced Grazing 
Management, and Precision Agriculture.--
          (1) Definitions.--In this subsection:
                  (A) Advanced grazing management.--The 
                term``advanced grazing management'' means the 
                use of a combinationof grazing practices (as 
                determined by the Secretary),which may include 
                management-intensive rotationalgrazing, that 
                provide for--
                          (i) improved soil health and carbon 
                        sequestration;
                          (ii) drought resilience;
                          (iii) wildlife habitat;
                          (iv) wildfire mitigation;
                          (v) control of invasive plants; and
                          (vi) water quality improvement.
                  (B) Management-intensive rotational 
                grazing.--The term ``management-intensive 
                rotational grazing'' means a strategic, 
                adaptively managed multipasture grazing system 
                in which animals are regularly and 
                systematically moved to fresh pasture in a 
                manner that--
                          (i) maximizes the quantity and 
                        quality of forage growth;
                          (ii) improves manure distribution and 
                        nutrient cycling;
                          (iii) increases carbon sequestration 
                        from greater forage harvest;
                          (iv) improves the quality and 
                        quantity of cover for wildlife;
                          (v) provides permanent cover to 
                        protect the soil from erosion; and
                          (vi) improves water quality.
                  (C) Resource-conserving crop rotation.--The 
                term``resource-conserving crop rotation'' means 
                a crop rotation that--
                          (i) includes at least 1 resource-
                        conserving crop (as defined by the 
                        Secretary);
                          (ii) reduces erosion;
                          (iii) improves soil fertility and 
                        tilth;
                          (iv) interrupts pest cycles;
                          (v) builds soil organic matter; and
                          (vi) in applicable areas, reduces 
                        depletion of soil moisture or otherwise 
                        reduces the need for irrigation.
          (2) Availability of payments.--The Secretary shall 
        provide additional payments to producers that, in 
        participating in the program, agree to adopt or 
        improve, manage, and maintain--
                  (A) resource-conserving crop rotations[; or];
                  (B) advanced grazing management[.]; or
                  (C) precision agriculture.
          (3) Eligibility.--To be eligible to receive a payment 
        described in paragraph (2), a producer shall agree to 
        adopt orimprove, manage, and maintain resource-
        conserving crop rotations [or advanced grazing 
        management], advanced grazing management, or precision 
        agriculture for the term of the contract.
          (4) Amount of payment.--An additional payment 
        provided under paragraph (2) shall be not less than 150 
        percent of the annual payment amount determined by the 
        Secretary under subsection (c)(2).
  (e) Payment for Comprehensive Conservation Plan.--
          (1) Definition of comprehensive conservation plan.--
        In this subsection, the term ``comprehensive 
        conservation plan'' means a conservation plan that 
        meets or exceeds the stewardship threshold for each 
        priority resource concern identified by the Secretary 
        under subsection (a)(2).
          (2) Payment for comprehensive conservation plan.--The 
        Secretary shall provide a 1-time payment to a producer 
        that develops a comprehensive conservation plan.
          (3) Amount of payment.--The Secretary shall determine 
        the amount of payment under paragraph (2) based on--
                  (A) the number of priority resource concerns 
                addressed in the comprehensive conservation 
                plan; and
                  (B) the number of types of land uses included 
                in the comprehensive conservation plan.
  (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 2019 through 2023, 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) Organic Certification.--
          (1) Coordination.--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.
          (2) Allocation.--
                  (A) In general.--Using funds made available 
                for the program for each of fiscal years 2019 
                through 2023, the Secretary shall allocate 
                funding to States to support organic production 
                and transition to organic production through 
                paragraph (1).
                  (B) Determination.--The Secretary shall 
                determine the allocation to a State under 
                subparagraph (A) based on--
                          (i) the number of certified and 
                        transitioning organic operations within 
                        the State; and
                          (ii) the number of acres of certified 
                        and transitioning organic production 
                        within the State.
  (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.
  (j) Streamlining and Coordination.--To the maximum extent 
feasible, the Secretary shall provide for streamlined and 
coordinated procedures for the program and the environmental 
quality incentives program under subchapter A, including 
applications, contracting, conservation planning, conservation 
practices, and related administrative procedures.
  (k) Soil Health.--To the maximum extent feasible, the 
Secretary shall manage the program to enhance soil health.
  (l) Annual Report.--Each fiscal year, the Secretary shall 
submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report describing the payment 
rates for conservation activities offered to producers under 
the program and an analysis of whether payment rates can be 
reduced for the most expensive conservation activities.

           *       *       *       *       *       *       *


Subtitle E--Funding and Administration

           *       *       *       *       *       *       *


SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.

  (a) Definitions.--In this section:
          (1) Eligible participant.--The term ``eligible 
        participant'' means a producer, landowner, or entity 
        that is participating in, or seeking to participate in, 
        programs in which the producer, landowner, or entity is 
        otherwise eligible to participate under this title or 
        the agricultural management assistance program under 
        section 524(b) of the Federal Crop Insurance Act (7 
        U.S.C. 1524(b)).
          (2) Third-party provider.--The term ``third-party 
        provider'' means a commercial entity (including a 
        farmer cooperative, agriculture retailer, or other 
        commercial entity (as defined by the Secretary)), a 
        nonprofit entity, a State or local government 
        (including a conservation district), or a Federal 
        agency, that has expertise in the technical aspect of 
        conservation planning, including nutrient management 
        planning, watershed planning, or environmental 
        engineering.
  (b) Purpose of Technical Assistance.--The purpose of 
technical assistance authorized by this section is to provide 
eligible participants with consistent, science-based, site-
specific practices designed to achieve conservation objectives 
on land active in agricultural, forestry, or related uses.
  (c) Provision of Technical Assistance.--The Secretary shall 
provide technical assistance under this title to an eligible 
participant--
          (1) directly;
          (2) through an agreement with a third-party provider; 
        or
          (3) at the option of the eligible participant, 
        through a payment, as determined by the Secretary, to 
        the eligible participant for an approved third-party 
        provider, if available.
  (d) Non-Federal Assistance.--The Secretary may request the 
services of, and enter into cooperative agreements or contracts 
with, other agencies within the Department or non-Federal 
entities to assist the Secretary in providing technical 
assistance necessary to assist in implementing conservation 
programs under this title.
  (e) Certification of Third-Party Providers.--
          (1) Purpose.--The purpose of the third-party provider 
        program is to increase the availability and range of 
        technical expertise available to eligible participants 
        to plan and implement conservation measures.
          (2) Regulations.--Not later than 180 days after the 
        date of the enactment of the Food, Conservation, and 
        Energy Act of 2008, the Secretary shall promulgate such 
        regulations as are necessary to carry out this section.
          (3) Expertise.--In promulgating such regulations, the 
        Secretary, to the maximum extent practicable, shall--
                  (A) ensure that persons with expertise in the 
                technical aspects of conservation planning, 
                watershed planning, and environmental 
                engineering, including commercial entities, 
                nonprofit entities, State or local governments 
                or agencies, and other Federal agencies, are 
                eligible to become approved providers of the 
                technical assistance;
                  (B) provide national criteria for the 
                certification of third-party providers; and
                  (C) approve any unique certification 
                standards established at the State level.
          (4) Certification process.--The Secretary shall 
        certify a third-party provider through--
                  (A) a certification process administered by 
                the Secretary, acting through the Chief of the 
                Natural Resources Conservation Service; or
                  (B) a non-Federal entity approved by the 
                Secretary to perform the certification.
          (5) Streamlined certification.--The Secretary shall 
        provide a streamlined certification process for a 
        third-party provider that has an appropriate specialty 
        certification, including a sustainability 
        certification.
  (f) Administration.--
          (1) Funding.--Effective for fiscal year 2008 and each 
        subsequent fiscal year, funds of the Commodity Credit 
        Corporation made available to carry out technical 
        assistance for each of the programs specified in 
        section 1241 shall be available for the provision of 
        technical assistance from third-party providers under 
        this section.
          (2) Term of agreement.--An agreement with a third-
        party provider under this section shall have a term 
        that--
                  (A) at a minimum, is equal to the period 
                beginning on the date on which the agreement is 
                entered into and ending on the date that is 1 
                year after the date on which all activities 
                performed pursuant to the agreement have been 
                completed;
                  (B) does not exceed 3 years; and
                  (C) can be renewed, as determined by the 
                Secretary.
          (3) Review of certification requirements.--Not later 
        than 1 year after the date of enactment of the Food, 
        Conservation, and Energy Act of 2008, the Secretary 
        shall--
                  (A) review certification requirements for 
                third-party providers; and
                  (B) make any adjustments considered necessary 
                by the Secretary to improve participation.
          (4) Eligible activities.--
                  (A) Inclusion of activities.--The Secretary 
                may include as activities eligible for payments 
                to a third-party provider--
                          (i) technical services provided 
                        directly to eligible participants, such 
                        as conservation planning, education and 
                        outreach, and assistance with design 
                        and implementation of conservation 
                        practices; and
                          (ii) related technical assistance 
                        services that accelerate conservation 
                        program delivery.
                  (B) Exclusions.--The Secretary shall not 
                designate as an activity eligible for payments 
                to a third-party provider any service that is 
                provided by a business, or equivalent, in 
                connection with conducting business and that is 
                customarily provided at no cost.
          (5) Payment amounts.--The Secretary shall establish 
        fair and reasonable amounts of payments for technical 
        services provided by third-party providers.
          (6) Soil health planning.--The Secretary shall 
        emphasize the use of third-party providers in providing 
        technical assistance for soil health planning, 
        including planning related to the use of cover crops, 
        precision conservation management, comprehensive 
        nutrient management planning, and other innovative 
        plans.
  (g) Availability of Technical Services.--
          (1) In general.--In carrying out the programs under 
        this title and the agricultural management assistance 
        program under section 524 of the Federal Crop Insurance 
        Act (7 U.S.C. 1524), the Secretary shall make technical 
        services available to all eligible participants who are 
        installing an eligible practice.
          (2) Technical service contracts.--In any case in 
        which financial assistance is not provided under a 
        program referred to in paragraph (1), the Secretary may 
        enter into a technical service contract with the 
        eligible participant for the purposes of assisting in 
        the planning, design, or installation of an eligible 
        practice.
  (h) Review of Conservation Practice Standards.--
          (1) Review required.--The Secretary shall--
                  (A) not later than 1 year after the date of 
                enactment of the Agriculture Improvement Act of 
                2018, complete a review of each conservation 
                practice standard, including engineering design 
                specifications, in effect on the day before the 
                date of enactment of that Act;
                  (B) ensure, to the maximum extent 
                practicable, the completeness and relevance of 
                the standards to local agricultural, forestry, 
                and natural resource needs, including specialty 
                crops, native and managed pollinators, 
                bioenergy crop production, forestry, and such 
                other needs as are determined by the Secretary;
                  (C) ensure that the standards provide for the 
                optimal balance between meeting site-specific 
                conservation needs and minimizing risks of 
                design failure and associated costs of 
                construction and installation; and
                  (D) evaluate opportunities to increase 
                flexibility in conservation practice standards 
                in a manner that ensures equivalent natural 
                resource benefits.
          (2) Consultation.--In conducting the review under 
        paragraph (1), the Secretary shall consult with 
        eligible participants, State technical committees 
        established under section 1261(a), crop consultants, 
        cooperative extension and land grant universities, 
        nongovernmental organizations, and other qualified 
        entities.
          (3) Expedited revision of standards.--Not later than 
        1 year after the date of enactment of the Agriculture 
        Improvement Act of 2018, the Secretary shall develop 
        for the programs under this title an administrative 
        process for--
                  (A) expediting the establishment and revision 
                of conservation practice standards;
                  (B) considering conservation innovations and 
                scientific and technological advancements with 
                respect to any establishment or revision under 
                subparagraph (A);
                  (C) allowing local flexibility in the 
                creation of--
                          (i) interim practice standards and 
                        supplements to existing practice 
                        standards to address the considerations 
                        described in subparagraph (B); and
                          (ii) partnership-led proposals for 
                        new and innovative techniques to 
                        facilitate implementing agreements and 
                        grants under this title; and
                  (D) soliciting regular input from State 
                technical committees established under section 
                1261(a) for recommendations that identify 
                innovations or advancements described in 
                subparagraph (B).
          (4) Report.--Not later than 2 years after the date of 
        enactment of the Agriculture Improvement Act of 2018, 
        and every 2 years thereafter, the Secretary shall 
        submit to Congress a report on--
                  (A) the administrative process developed 
                under paragraph (3);
                  (B) conservation practice standards that were 
                established or revised under that process; and
                  (C) conservation innovations that were 
                considered under that process.
  (i) Addressing Concerns of Specialty Crop, Organic, and 
Precision Agriculture Producers.--
          (1) In general.--The Secretary shall--
                  (A) to the maximum extent practicable, fully 
                incorporate specialty crop production, organic 
                crop production, and precision agriculture into 
                the conservation practice standards; and
                  (B) provide for the appropriate range of 
                conservation practices and resource mitigation 
                measures available to producers involved with 
                organic or specialty crop production or 
                precision agriculture.
          (2) Availability of adequate technical assistance.--
                  (A) In general.--The Secretary shall ensure 
                that adequate technical assistance is available 
                for the implementation of conservation 
                practices by producers involved with organic, 
                specialty crop production, or precision 
                agriculture through Federal conservation 
                programs.
                  (B) Requirements.--In carrying out 
                subparagraph (A), the Secretary shall develop--
                          (i) programs that meet specific needs 
                        of producers involved with organic, 
                        specialty crop production or precision 
                        agriculture through cooperative 
                        agreements with other agencies and 
                        nongovernmental organizations; and
                          (ii) program specifications that 
                        allow for innovative approaches to 
                        engage local resources in providing 
                        technical assistance for planning and 
                        implementation of conservation 
                        practices.

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