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H.R. 2646 (107th): Farm Security and Rural Investment Act of 2002


The text of the bill below is as of Jul 26, 2001 (Introduced).

Summary of this bill

Source: Wikipedia

The Farm Security and Rural Investment Act of 2002, also known as the 2002 Farm Bill, includes ten titles, addressing a great variety of issues related to agriculture, ecology, energy, trade, and nutrition.

The act directs approximately 16.5 billion dollars of funding toward agricultural subsidies each year. These subsidies have a dramatic effect on the production of grains, oilseeds, and upland cotton. The specialized nature of the farm bill, as well as the size and timing of the bill, made its passage highly contentious.

Debated in the U.S. House of Representatives during the immediate aftermath of the September 11th attacks in 2001, the bill drew criticism from the …


HR 2646 IH

107th CONGRESS

1st Session

H. R. 2646

To provide for the continuation of agricultural programs through fiscal year 2011.

IN THE HOUSE OF REPRESENTATIVES

July 26, 2001

Mr. COMBEST (for himself and Mr. STENHOLM) introduced the following bill; which was referred to the Committee on Agriculture


A BILL

To provide for the continuation of agricultural programs through fiscal year 2011.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘Agricultural Act of 2001’.

    (b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

      Sec. 1. Short title; table of contents.

TITLE I--COMMODITY PROGRAMS

      Sec. 100. Definitions.

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

      Sec. 101. Payments to eligible producers.

      Sec. 102. Establishment of payment yield.

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

      Sec. 104. Availability of fixed, decoupled payments.

      Sec. 105. Availability of counter-cyclical payments.

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

      Sec. 107. Planting flexibility.

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

      Sec. 109. Payment limitations.

      Sec. 110. Period of effectiveness.

Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

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

      Sec. 122. Loan rates for nonrecourse marketing assistance loans.

      Sec. 123. Term of loans.

      Sec. 124. Repayment of loans.

      Sec. 125. Loan deficiency payments.

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

      Sec. 127. Special marketing loan provisions for upland cotton.

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

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

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

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

Subtitle C--Other Commodities

Chapter 1--Dairy

      Sec. 141. Milk price support program.

      Sec. 142. Repeal of recourse loan program for processors.

      Sec. 143. Dairy export incentive program.

      Sec. 144. Fluid milk promotion.

      Sec. 145. Dairy product mandatory reporting.

      Sec. 146. Funding of dairy promotion and research program.

Chapter 2--Sugar

      Sec. 151. Sugar program.

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

      Sec. 153. Storage facility loans.

Chapter 3--Peanuts

      Sec. 161. Definitions.

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

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

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

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

      Sec. 166. Planting flexibility.

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

      Sec. 168. Quality improvement.

      Sec. 169. Payment limitations.

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

Subtitle D--Administration

      Sec. 181. Administration generally.

      Sec. 182. Extension of suspension of permanent price support authority.

      Sec. 183. Limitations.

      Sec. 184. Adjustments of loans.

      Sec. 185. Personal liability of producers for deficiencies.

      Sec. 186. Extension of existing administrative authority regarding loans.

      Sec. 187. Assignment of payments.

TITLE II--CONSERVATION

Subtitle A--Definition

      Sec. 201. Definition of agricultural commodity.

Subtitle B--Wetland Conservation Program

      Sec. 211. Ineligibility for certain loans and payments.

Subtitle C--Environmental Conservation Acreage Reserve Program

      Sec. 221. Elimination of general provisions.

Subtitle D--Conservation Reserve Program

      Sec. 231. Reauthorization.

      Sec. 232. Enrollment.

      Sec. 233. Duties of owners and operators.

      Sec. 234. Duties of the Secretary.

      Sec. 235. Acceptance of contract offers.

      Sec. 236. Contracts.

Subtitle E--Wetlands Reserve Program

      Sec. 241. Enrollment.

      Sec. 242. Easements and agreements.

      Sec. 243. Duties of the Secretary.

      Sec. 244. Payment limitation.

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

Subtitle F--Environmental Quality Incentives Program

      Sec. 251. Purposes.

      Sec. 252. Definitions.

      Sec. 253. Establishment and administration.

      Sec. 254. Evaluation of offers and payments.

      Sec. 255. Duties of producers.

      Sec. 256. Environmental Quality Incentives Program plan.

      Sec. 257. Duties of the Secretary.

      Sec. 258. Limitation on payments.

      Sec. 259. Groundwater conservation.

Subtitle G--Funding and Administration

      Sec. 261. Reauthorization.

      Sec. 262. Funding.

      Sec. 263. Allocation for livestock production.

      Sec. 264. Use of other agencies.

      Sec. 265. Administration and technical assistance.

Subtitle H--Other Programs

      Sec. 271. Wildlife Habitat Incentives Program.

      Sec. 272. Farmland Protection Program.

      Sec. 273. Resource Conservation and Development Program.

      Sec. 274. Grassland Reserve Program.

      Sec. 275. Farmland Stewardship Program.

      Sec. 276. Small Watershed Rehabilitation Program.

Subtitle I--Availability of Funds

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

Subtitle K--Repeals

      Sec. 291. Provisions of Food Security Act of 1985.

TITLE III--TRADE

      Sec. 301. Market Access Program.

      Sec. 302. Food for Progress.

      Sec. 303. Export Enhancement Program.

      Sec. 304. Foreign Market Development Cooperator Program.

      Sec. 305. Export Credit Guarantee Program.

      Sec. 306. PL 480.

      Sec. 307. Emerging markets.

      Sec. 308. Bill Emerson Humanitarian Trust.

      Sec. 309. Technical assistance for specialty crops.

TITLE IV--NUTRITION PROGRAMS

Subtitle A--Food Stamp Program

      Sec. 401. Simplified definition of income.

      Sec. 402. Standard deduction.

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

      Sec. 404. Quality control systems.

      Sec. 405. Simplified application and eligibility determination systems.

      Sec. 406. Authorization of appropriations.

Subtitle B--Commodity Distribution

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

      Sec. 442. Commodity supplemental food program.

      Sec. 443. Emergency food assistance.

Subtitle C--Miscellaneous Provisions

      Sec. 461. Hunger fellowship program.

      Sec. 462. General effective date.

TITLE V--CREDIT

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

      Sec. 502. Suspension of limitation on period for which borrowers are eligible for guaranteed assistance.

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

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

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

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

      Sec. 507. Timing of loan assessments.

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

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

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

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

      Sec. 512. Authorization for loans.

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

      Sec. 514. Extension of Interest Rate Reduction Program.

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

      Sec. 516. Horse breeder loans.

TITLE VI--RURAL DEVELOPMENT

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

      Sec. 602. Value-added agricultural product market development grants.

      Sec. 603. Agriculture innovation center demonstration program.

      Sec. 604. Funding of community water assistance grant program.

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

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

      Sec. 607. Rural business opportunity grants.

      Sec. 608. Grants for water systems for rural and native villages in Alaska.

      Sec. 609. Rural cooperative development grants.

      Sec. 610. National reserve account of Rural Development Trust Fund.

      Sec. 611. Rural venture capital demonstration program.

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

      Sec. 613. Pilot program for development and implementation of strategic regional development plans.

      Sec. 614. Grants to nonprofit organizations to finance the construction, refurbishing, and servicing of individually-owned household water well systems in rural areas for individuals with low or moderate incomes.

      Sec. 615. National Rural Development Partnership.

TITLE VII--RESEARCH AND RELATED MATTERS

Subtitle A--Extensions

      Sec. 700. Market expansion research.

      Sec. 701. National Rural Information Center Clearinghouse.

      Sec. 702. Grants and fellowships for food and agricultural sciences education.

      Sec. 703. Policy research centers.

      Sec. 704. Human nutrition intervention and health promotion research program.

      Sec. 705. Pilot research program to combine medical and agricultural research.

      Sec. 706. Nutrition education program.

      Sec. 707. Continuing animal health and disease research programs.

      Sec. 708. Appropriations for research on national or regional problems.

      Sec. 709. Grants to upgrade agricultural and food sciences facilities at 1890 land-grant colleges, including Tuskegee University.

      Sec. 710. National research and training centennial centers at 1890 land-grant institutions.

      Sec. 711. Hispanic-serving institutions.

      Sec. 712. Competitive grants for international agricultural science and education programs.

      Sec. 713. University research.

      Sec. 714. Extension service.

      Sec. 715. Supplemental and alternative crops.

      Sec. 716. Aquaculture research facilities.

      Sec. 717. Rangeland research.

      Sec. 718. National genetics resources program.

      Sec. 719. High-priority research and extension initiatives.

      Sec. 720. Nutrient management research and extension initiative.

      Sec. 721. Agricultural telecommunications program.

      Sec. 722. Alternative Agricultural Research And Commercialization Revolving Fund.

      Sec. 723. Assistive technology program for farmers with disabilities.

      Sec. 724. Partnerships for high-value agricultural product quality research.

      Sec. 725. Biobased products.

      Sec. 726. Integrated research, education, and extension competitive grants program.

      Sec. 727. Institutional capacity building grants.

      Sec. 728. 1994 Institution research grants.

      Sec. 729. Endowment for 1994 Institutions.

      Sec. 730. Precision agriculture.

      Sec. 731. Thomas Jefferson Initiative for Crop Diversification.

      Sec. 732. Support for research regarding diseases of wheat, triticale, and barley caused by Fusarium graminearum or by Tilletia indica.

      Sec. 733. Office of Pest Management policy.

      Sec. 734. National Agricultural Research, Extension, Education, and Economics Advisory Board.

      Sec. 735. Grants for research on production and marketing of alcohols and industrial hydrocarbons from agricultural commodities and forest products.

      Sec. 736. Biomass research and development.

      Sec. 737. Agricultural experiment stations research facilities.

      Sec. 738. Competitive, Special, and Facilities Research Grants National Research Initiative.

      Sec. 739. Federal agricultural research facilities authorization of appropriations.

Subtitle B--Modifications

      Sec. 741. Equity in Educational Land-Grant Status Act of 1994.

      Sec. 742. National Agricultural Research, Extension, and Teaching Policy Act of 1977.

      Sec. 743. Agricultural Research, Extension, and Education Reform Act of 1998.

      Sec. 744. Food, Agriculture, Conservation, and Trade Act of 1990.

      Sec. 745. National Agricultural Research, Extension, and Teaching Policy Act of 1977.

      Sec. 746. Biomass research and development.

      Sec. 747. Biotechnology risk assessment research.

      Sec. 748. Competitive, special, and facilities research grants.

      Sec. 749. Matching funds requirement for research and extension activities of 1890 Institutions.

      Sec. 750. Initiative for future agriculture and food systems.

      Sec. 751. Carbon cycle research.

      Sec. 752. Definition of food and agricultural sciences.

      Sec. 753. Federal extension service.

Subtitle C--Related Matters

      Sec. 761. Resident instruction at land-grant colleges in United States territories.

      Sec. 762. Declaration of extraordinary emergency and resulting authorities.

Subtitle D--Repeal of Certain Activities and Authorities

      Sec. 771. Food Safety Research Information Office and National Conference.

      Sec. 772. Reimbursement of expenses under Sheep Promotion, Research, and Information Act of 1994.

      Sec. 773. National genetic resources program.

      Sec. 774. National Advisory Board on Agricultural Weather.

      Sec. 775. Agricultural information exchange with Ireland.

      Sec. 776. Pesticide resistance study.

      Sec. 777. Expansion of education study.

      Sec. 778. Support for Advisory Board.

      Sec. 779. Task force on 10-year strategic plan for agricultural research facilities.

Subtitle E--Agriculture Facility Protection

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

TITLE VIII--FORESTRY INITIATIVES

      Sec. 801. Repeal of forestry incentives program and stewardship incentive program.

      Sec. 802. Establishment of forest land enhancement program.

      Sec. 803. Renewable resources extension activities.

      Sec. 804. Enhanced community fire protection.

      Sec. 805. International forestry program.

      Sec. 806. Long-term forest stewardship contracts for hazardous fuels removal and implementation of National Fire Plan.

      Sec. 807. McIntire-Stennis cooperative forestry research program.

TITLE IX--MISCELLANEOUS PROVISIONS

Subtitle A--Tree Assistance Program

      Sec. 901. Eligibility.

      Sec. 902. Assistance.

      Sec. 903. Limitation on assistance.

      Sec. 904. Definitions.

      Sec. 905. Duplicative payments.

Subtitle B--Other Matters

      Sec. 911. Hazardous fuel reduction grants to prevent wildfire disasters and transform hazardous fuels to electric energy, useful heat, or transportation fuels.

      Sec. 912. Bioenergy program.

      Sec. 913. Availability of section 32 funds.

      Sec. 914. Seniors farmers’ market nutrition program.

      Sec. 915. Federal marketing order for cane berries.

TITLE I--COMMODITY PROGRAMS

SEC. 100. DEFINITIONS.

    In this title (other than chapter 3 of subtitle C):

      (1) AGRICULTURAL ACT OF 1949- The term ‘Agricultural Act of 1949’ means the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), as in effect prior to the suspensions under section 171 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7301).

      (2) BASE ACRES- The term ‘base acres’, with respect to a covered commodity on a farm, means

the number of acres established under section 103 with respect to the commodity upon the election made by the producers on the farm under subsection (a) of such section.

      (3) COUNTER-CYCLICAL PAYMENT- The term ‘counter-cyclical payment’ means a payment made to producers under section 105.

      (4) COVERED COMMODITY- The term ‘covered commodity’ means wheat, corn, grain sorghum, barley, oats, upland cotton, rice, soybeans, and other oilseeds.

      (5) EFFECTIVE PRICE- The term ‘effective price’, with respect to a covered commodity for a crop year, means the price calculated by the Secretary under section 105 to determine whether counter-cyclical payments are required to be made for that crop year.

      (6) ELIGIBLE PRODUCER- The term ‘eligible producer’ means a producer described in section 101(a).

      (7) FIXED, DECOUPLED PAYMENT- The term ‘fixed, decoupled payment’ means a payment made to producers under section 104.

      (8) OTHER OILSEED- The term ‘other oilseed’ means a crop of sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, or, if designated by the Secretary, another oilseed.

      (9) PAYMENT ACRES- The term ‘payment acres’ means 85 percent of the base acres of a covered commodity on a farm, as established under section 103, upon which fixed, decoupled payments and counter-cyclical payments are to be made.

      (10) PAYMENT YIELD- The term ‘payment yield’ means the yield established under section 102 for a farm for a covered commodity.

      (11) PRODUCER- The term ‘producer’ means an owner, operator, landlord, tenant, or sharecropper who shares in the risk of producing a crop and who is entitled to share in the crop available for marketing from the farm, or would have shared had the crop been produced. In determining whether a grower of hybrid seed is a producer, the Secretary shall not take into consideration the existence of a hybrid seed contract and shall ensure that program requirements do not adversely affect the ability of the grower to receive a payment under this title.

      (12) SECRETARY- The term ‘Secretary’ means the Secretary of Agriculture.

      (13) STATE- The term ‘State’ means each of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any other territory or possession of the United States.

      (14) TARGET PRICE- The term ‘target price’ means the price per bushel (or other appropriate unit in the case of upland cotton, rice, and other oilseeds) of a covered commodity used to determine the payment rate for counter-cyclical payments.

      (15) UNITED STATES- The term ‘United States’, when used in a geographical sense, means all of the States.

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

SEC. 101. PAYMENTS TO ELIGIBLE PRODUCERS.

    (a) PAYMENTS REQUIRED- Beginning with the 2002 crop of covered commodities, the Secretary shall make fixed decoupled payments and counter-cyclical payments under this subtitle--

      (1) to producers on a farm that were parties to a production flexibility contract under section 111 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7211) for fiscal year 2002; and

      (2) to other producers on farms in the United States as described in section 103(a).

    (b) TENANTS AND SHARECROPPERS- In carrying out this title, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.

    (c) SHARING OF PAYMENTS- The Secretary shall provide for the sharing of fixed, decoupled payments and counter-cyclical payments among the eligible producers on a farm on a fair and equitable basis.

SEC. 102. ESTABLISHMENT OF PAYMENT YIELD.

    (a) ESTABLISHMENT AND PURPOSE- For the purpose of making fixed decoupled payments and counter-cyclical payments under this subtitle, the Secretary shall provide for the establishment of a payment yield for each farm for each covered commodity in accordance with this section.

    (b) USE OF FARM PROGRAM PAYMENT YIELD- Except as otherwise provided in this section, the payment yield for each of the 2002 through 2011 crops of a covered commodity for a farm shall be the farm program payment yield in effect for the 2002 crop of the covered commodity under section 505 of the Agricultural Act of 1949 (7 U.S.C. 1465).

    (c) FARMS WITHOUT FARM PROGRAM PAYMENT YIELD- In the case of a farm for which a farm program payment yield is unavailable for a covered commodity (other than soybeans or other oilseeds), the Secretary shall establish an appropriate payment yield for the covered commodity on the farm taking in consideration the farm program payment yields applicable to the commodity under subsection (b) for similar farms in the area.

    (d) PAYMENT YIELDS FOR OILSEEDS-

      (1) AVERAGE YIELD- In the case of soybeans and each other oilseed, the Secretary shall establish a payment yield for a farm for the oilseed by first determining the average yield for the oilseed on the farm for the 1998 through 2001 crop years, excluding any crop year in which the yield was zero. If, for any of these four crop years in which the oilseed was planted, the farm would have satisfied the eligibility criteria established to carry out section 1102 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999 (Public Law 105-277; 7 U.S.C. 1421 note), the Secretary shall assign a yield for that year equal to 65 percent of the county yield.

      (2) REDUCTION- The Secretary shall reduce the average yield determined under paragraph (1)

for the oilseed by a percentage equal to the percentage increase in national average yields for the oilseed between the following two periods:

        (A) The 1981 through 1985 crops.

        (B) The 1998 through 2001 crops.

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

    (a) ELECTION BY PRODUCERS OF BASE ACRE CALCULATION METHOD- For the purpose of making fixed decoupled payments and counter-cyclical payments with respect to a farm, the Secretary shall give producers on the farm an opportunity to elect one of the following as the method by which the base acres of all covered commodities on the farm are to be determined:

      (1) The four-year average of acreage actually planted on the farm to a covered commodity for harvest, grazing, haying, silage, or other similar purposes during crop years 1998, 1999, 2000, and 2001 and any acreage on the farm that the producers were prevented from planting during such crop years to the covered commodity because of drought, flood, or other natural disaster, or other condition beyond the control of the producer, as determined by the Secretary.

      (2) The contract acreage (as defined in section 102 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7202)) used by the Secretary to calculate the fiscal year 2002 payment that, subject to section 109, would be made under section 114 of such Act (7 U.S.C. 7214) for the covered commodity on the farm.

    (b) SINGLE ELECTION; TIME FOR ELECTION- The opportunity to make the election described in subsection (a) shall be available to producers on a farm only once. The producers shall notify the Secretary of the election made by the producers under such subsection not later than 180 days after the date of the enactment of this Act.

    (c) EFFECT OF FAILURE TO MAKE ELECTION- If the producers on a farm fail to make the election under subsection (a), or fail to timely notify the Secretary of the selected option as required by subsection (b), the producers shall be deemed to have made the election described in subsection (a)(2) to determine base acres for all covered commodities on the farm.

    (d) APPLICATION OF ELECTION TO ALL COVERED COMMODITIES- The election made under subsection (a) or deemed to be made under subsection (c) with respect to a farm shall apply to all of the covered commodities on the farm. Producers may not make the election described in subsection (a)(1) for one covered commodity and the election described in subsection (a)(2) for other covered commodities on the farm.

    (e) TREATMENT OF CONSERVATION RESERVE CONTRACT ACREAGE-

      (1) IN GENERAL- In the case of producers on a farm that make the election described in subsection (a)(2), the Secretary shall provide for an adjustment in the base acres for the farm whenever either of the following circumstances occur:

        (A) A conservation reserve contract entered into under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) with respect to the farm expires or is voluntarily terminated.

        (B) Cropland is released from coverage under a conservation reserve contract by the Secretary.

      (2) SPECIAL PAYMENT RULES- For the fiscal year and crop year in which a base acre adjustment under paragraph (1) is first made, the producers on the farm shall elect to receive either fixed decoupled payments and counter-cyclical payments with respect to the acreage added to the farm under this subsection or a prorated payment under the conservation reserve contract, but not both.

    (f) PAYMENTS ACRES- The payment acres for a covered commodity on a farm shall be equal to 85 percent of the base acres for the commodity.

    (g) PREVENTION OF EXCESS PAYMENT ACRES-

      (1) REQUIRED REDUCTION- If the sum of the base acres for a farm, together with the acreage described in paragraph (2), exceeds the actual cropland acreage of the farm, the Secretary shall make such reductions in the quantity of base acres for the farm as may be necessary so that the sum of the base acres and acreage described in paragraph (2) does not exceed the actual cropland acreage of the farm.

      (2) OTHER ACREAGE- For purposes of paragraph (1), the Secretary shall include the following:

        (A) Any peanut acreage for the farm under chapter 3 of subtitle C.

        (B) Any acreage on the farm enrolled in the conservation reserve program or wetlands reserve program under chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.).

        (C) Any other acreage on the farm enrolled in a conservation program for which payments are made in exchange for not producing an agricultural commodity on the acreage.

SEC. 104. AVAILABILITY OF FIXED, DECOUPLED PAYMENTS.

    (a) PAYMENT REQUIRED- For each of the 2002 through 2011 crop years of each covered commodity, the Secretary shall make fixed, decoupled payments to eligible producers.

    (b) PAYMENT RATE- The payment rates used to make fixed, decoupled payments with respect to covered commodities for a crop year are as follows:

      (1) Wheat, $0.53 per bushel.

      (2) Corn, $0.30 per bushel.

      (3) Grain sorghum, $0.36 per bushel.

      (4) Barley, $0.25 per bushel.

      (5) Oats, $0.025 per bushel.

      (6) Upland cotton, $0.0667 per pound.

      (7) Rice, $2.35 per hundredweight.

      (8) Soybeans, $0.42 per bushel.

      (9) Other oilseeds, $0.0074 per pound.

    (c) PAYMENT AMOUNT- The amount of the fixed, decoupled payment to be paid to the eligible producers on a farm for a covered commodity for a crop year shall be equal to the product of the following:

      (1) The payment rate specified in subsection (b).

      (2) The payment acres of the covered commodity on the farm.

      (3) The payment yield for the covered commodity for the farm.

    (d) TIME FOR PAYMENT-

      (1) GENERAL RULE- Fixed, decoupled payments shall be paid not later than September 30 of each of fiscal years 2002 through 2011. In the case of the 2002 crop, payments may begin to be made on or after December 1, 2001.

      (2) ADVANCE PAYMENTS- At the option of an eligible producer, 50 percent of the fixed, decoupled payment for a fiscal year shall be paid on a date selected by the producer. The selected date shall be on or after December 1 of that fiscal year, and the producer may change the selected date for a subsequent fiscal year by providing advance notice to the Secretary.

      (3) REPAYMENT OF ADVANCE PAYMENTS- If a producer that receives an advance fixed, decoupled payment for a fiscal year ceases to be an eligible producer before the date the fixed, decoupled payment would otherwise have been made by the Secretary under paragraph (1), the producer shall be responsible for repaying the Secretary the full amount of the advance payment.

SEC. 105. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

    (a) PAYMENT REQUIRED- The Secretary shall make counter-cyclical payments with respect to a covered commodity whenever the Secretary determines that the effective price for the commodity is less than the target price for the commodity.

    (b) EFFECTIVE PRICE- For purposes of subsection (a), the effective price for a covered commodity is equal to the sum of the following:

      (1) The higher of the following:

        (A) The national average market price received by producers during the 12-month marketing year for the commodity, as determined by the Secretary.

        (B) The national average loan rate for a marketing assistance loan for the covered commodity in effect for the same period under subtitle B.

      (2) The payment rate in effect for the covered commodity under section 104 for the purpose of making fixed, decoupled payments with respect to the commodity.

    (c) TARGET PRICE- For purposes of subsection (a), the target prices for covered commodities are as follows:

      (1) Wheat, $4.04 per bushel.

      (2) Corn, $2.78 per bushel.

      (3) Grain sorghum, $2.64 per bushel.

      (4) Barley, $2.39 per bushel.

      (5) Oats, $1.47 per bushel.

      (6) Upland cotton, $0.736 per pound.

      (7) Rice, $10.82 per hundredweight.

      (8) Soybeans, $5.86 per bushel.

      (9) Other oilseeds, $0.1036 per pound.

    (d) PAYMENT RATE- The payment rate used to make counter-cyclical payments with respect to a covered commodity for a crop year shall be equal to the difference between--

      (1) the target price for the commodity; and

      (2) the effective price determined under subsection (b) for the commodity.

    (e) PAYMENT AMOUNT- The amount of the counter-cyclical payment to be paid to the eligible producers on a farm for a covered commodity for a crop year shall be equal to the product of the following:

      (1) The payment rate specified in subsection (d).

      (2) The payment acres of the covered commodity on the farm.

      (3) The payment yield for the covered commodity for the farm.

    (f) TIME FOR PAYMENTS-

      (1) GENERAL RULE- The Secretary shall make counter-cyclical payments under this section for a crop of a covered commodity as soon as possible after determining under subsection (a) that such payments are required for that crop year.

      (2) PARTIAL PAYMENT- The Secretary may permit, and, if so permitted, an eligible producer may elect to receive, up to 50 percent of the projected counter-cyclical payment, as determined by the Secretary, to be made under this section for a crop of a covered commodity upon completion of the first six months of the marketing year for that crop. The producer shall repay to the Secretary the amount, if any, by which the partial payment exceeds the actual counter-cyclical payment to be made for that marketing year.

    (g) SPECIAL RULE FOR CURRENTLY UNDESIGNATED OILSEED- If the Secretary uses the authority under section 100(8) to designate another oilseed as an oilseed for which counter-cyclical payments may be made, the Secretary may modify the target price specified in subsection (c)(9) that would otherwise apply to that oilseed as the Secretary considers appropriate.

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

    (a) COMPLIANCE WITH CERTAIN REQUIREMENTS-

      (1) REQUIREMENTS- Before the producers on a farm may receive fixed, decoupled payments or counter-cyclical payments with respect to the farm, the producers shall agree, in exchange for the payments--

        (A) to comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);

        (B) to comply with applicable wetland protection requirements under subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.);

        (C) to comply with the planting flexibility requirements of section 107; and

        (D) to use the land on the farm, in an amount equal to the base acres, for an agricultural or conserving use, and not for a nonagricultural commercial or industrial use, as determined by the Secretary.

      (2) COMPLIANCE- The Secretary may issue such rules as the Secretary considers necessary to ensure producer compliance with the requirements of paragraph (1).

    (b) EFFECT OF FORECLOSURE- A producer may not be required to make repayments to the Secretary of fixed, decoupled payments and counter-cyclical payments if the farm has been foreclosed on and the Secretary determines that forgiving the repayments is appropriate to provide fair and equitable treatment. This subsection shall not void the responsibilities of the producer under subsection (a) if the producer continues or resumes operation, or control, of the farm. On the resumption of operation or control over the farm by the producer, the requirements of subsection (a) in effect on the date of the foreclosure shall apply.

    (c) TRANSFER OR CHANGE OF INTEREST IN FARM-

      (1) TERMINATION- Except as provided in paragraph (4), a transfer of (or change in) the interest of a producer in base acres for which fixed, decoupled payments or counter-cyclical payments are made shall result in the termination of the payments with respect to the base acres, unless the transferee or owner of the acreage agrees to assume all obligations under subsection (a). The termination shall be effective on the date of the transfer or change.

      (2) TRANSFER OF PAYMENT BASE- There is no restriction on the transfer of a farm’s base acres or payment yield as part of a change in the producers on the farm.

      (3) MODIFICATION- At the request of the transferee or owner, the Secretary may modify the requirements of subsection (a) if the modifications are consistent with the objectives of such subsection, as determined by the Secretary.

      (4) EXCEPTION- If a producer entitled to a fixed, decoupled payment or counter-cyclical payment dies, becomes incompetent, or is otherwise unable to receive the payment, the Secretary shall make the payment, in accordance with regulations prescribed by the Secretary.

    (d) ACREAGE REPORTS-

      (1) IN GENERAL- As a condition on the receipt of any benefits under this subtitle or subtitle B, the Secretary shall require producers to submit to the Secretary acreage reports.

      (2) CONFORMING AMENDMENT- Section 15 of the Agricultural Marketing Act (12 U.S.C. 1141j) is amended by striking subsection (d).

    (e) REVIEW- A determination of the Secretary under this section shall be considered to be an adverse decision for purposes of the availability of administrative review of the determination.

SEC. 107. PLANTING FLEXIBILITY.

    (a) PERMITTED CROPS- Subject to subsection (b), any commodity or crop may be planted on base acres on a farm.

    (b) LIMITATIONS AND EXCEPTIONS REGARDING FRUITS AND VEGETABLES-

      (1) LIMITATIONS- The planting of fruits and vegetables (other than lentils, mung beans, and dry peas) shall be prohibited on base acres.

      (2) EXCEPTIONS- Paragraph (1) shall not limit the planting of a fruit or vegetable--

        (A) in any region in which there is a history of double-cropping of covered commodities with fruits or vegetables, as determined by the Secretary, in which case the double-cropping shall be permitted;

        (B) on a farm that the Secretary determines has a history of planting fruits or vegetables on base acres, except that fixed, decoupled payments and counter-cyclical payments shall be reduced by an acre for each acre planted to the fruit or vegetable; or

        (C) by a producer who the Secretary determines has an established planting history of a specific fruit or vegetable, except that--

          (i) the quantity planted may not exceed the producer’s average annual planting history of the fruit or vegetable in the 1991 through 1995 crop years (excluding any crop year in which no plantings were made), as determined by the Secretary; and

          (ii) fixed, decoupled payments and counter-cyclical payments shall be reduced by an acre for each acre planted to the fruit or vegetable.

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

    (a) TERMINATION OF SUPERSEDED PAYMENT AUTHORITY- Notwithstanding section 113(a)(7) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7213(a)(7)) or any other provision of law, the Secretary shall not make payments for fiscal year 2002 after the date of the enactment of this Act under production flexibility contracts entered into under section 111 of such Act (7 U.S.C. 7211).

    (b) CONTRACT PAYMENTS MADE BEFORE ENACTMENT- If, on or before the date of the enactment of this Act, a producer receives all or any portion of the payment authorized for fiscal year 2002 under a production flexibility contract, the Secretary shall reduce the amount of the fixed, decoupled payment otherwise due the producer for that same fiscal year by the amount of the fiscal year 2002 payment previously received by the producer.

SEC. 109. PAYMENT LIMITATIONS.

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

SEC. 110. PERIOD OF EFFECTIVENESS.

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

Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

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

    (a) NONRECOURSE LOANS AVAILABLE-

      (1) AVAILABILITY- For each of the 2002 through 2011 crops of each covered commodity, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for covered commodities produced on the farm. The loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under section 122 for the covered commodity.

      (2) INCLUSION OF EXTRA LONG STAPLE COTTON- In this subtitle, the term ‘covered commodity’ includes extra long staple cotton.

    (b) ELIGIBLE PRODUCTION- Any production of a covered commodity on a farm shall be eligible for a marketing assistance loan under subsection (a).

    (c) TREATMENT OF CERTAIN COMMINGLED COMMODITIES- In carrying out this subtitle, the Secretary shall make loans to a producer that is otherwise eligible to obtain a marketing assistance loan, but for the fact the covered commodity owned by the producer is commingled with covered commodities of other producers in facilities unlicensed for the storage of agricultural commodities by the Secretary or a State licensing authority, if the producer obtaining the loan agrees to immediately redeem the loan collateral in accordance with section 166 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7286).

    (d) COMPLIANCE WITH CONSERVATION AND WETLANDS REQUIREMENTS- As a condition of the receipt of a marketing assistance loan under subsection (a), the producer shall comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection requirements under subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.) during the term of the loan.

    (e) DEFINITION OF EXTRA LONG STAPLE COTTON- In this subtitle, the term ‘extra long staple cotton’ means cotton that--

      (1) is produced from pure strain varieties of the Barbadense species or any hybrid thereof, or other similar types of extra long staple cotton, designated by the Secretary, having characteristics needed for

various end uses for which United States upland cotton is not suitable and grown in irrigated cotton-growing regions of the United States designated by the Secretary or other areas designated by the Secretary as suitable for the production of the varieties or types; and

      (2) is ginned on a roller-type gin or, if authorized by the Secretary, ginned on another type gin for experimental purposes.

    (e) TERMINATION OF SUPERSEDED LOAN AUTHORITY- Notwithstanding section 131 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7231), nonrecourse marketing assistance loans shall not be made for the 2002 crop of covered commodities under subtitle C of title I of such Act.

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

    (a) WHEAT-

      (1) LOAN RATE- Subject to paragraph (2), the loan rate for a marketing assistance loan under section 121 for wheat shall be--

        (A) not less than 85 percent of the simple average price received by producers of wheat, as determined by the Secretary, during the marketing years for the immediately preceding five crops of wheat, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but

        (B) not more than $2.58 per bushel.

      (2) STOCKS TO USE RATIO ADJUSTMENT- If the Secretary estimates for any marketing year that the ratio of ending stocks of wheat to total use for the marketing year will be--

        (A) equal to or greater than 30 percent, the Secretary may reduce the loan rate for wheat for the corresponding crop by an amount not to exceed 10 percent in any year;

        (B) less than 30 percent but not less than 15 percent, the Secretary may reduce the loan rate for wheat for the corresponding crop by an amount not to exceed 5 percent in any year; or

        (C) less than 15 percent, the Secretary may not reduce the loan rate for wheat for the corresponding crop.

    (b) FEED GRAINS-

      (1) LOAN RATE FOR CORN AND GRAIN SORGHUM- Subject to paragraph (2), the loan rate for a marketing assistance loan under section 121 for corn and grain sorghum shall be--

        (A) not less than 85 percent of the simple average price received by producers of corn or grain sorghum, respectively, as determined by the Secretary, during the marketing years for the immediately preceding five crops of the covered commodity, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but

        (B) not more than $1.89 per bushel.

      (2) STOCKS TO USE RATIO ADJUSTMENT- If the Secretary estimates for any marketing year that the ratio of ending stocks of corn or grain sorghum to total use for the marketing year will be--

        (A) equal to or greater than 25 percent, the Secretary may reduce the loan rate for the covered commodity for the corresponding crop by an amount not to exceed 10 percent in any year;

        (B) less than 25 percent but not less than 12.5 percent, the Secretary may reduce the loan rate for the covered commodity for the corresponding crop by an amount not to exceed 5 percent in any year; or

        (C) less than 12.5 percent, the Secretary may not reduce the loan rate for the covered commodity for the corresponding crop.

      (3) OTHER FEED GRAINS- The loan rate for a marketing assistance loan under section 121 for barley and oats shall be--

        (A) established at such level as the Secretary determines is fair and reasonable in relation to the rate that loans are made available for corn, taking into consideration the feeding value of the commodity in relation to corn, but

        (B) not more than--

          (i) $1.65 per bushel for barley; and

          (ii) $1.21 per bushel for oats.

    (c) UPLAND COTTON-

      (1) LOAN RATE- Subject to paragraph (2), the loan rate for a marketing assistance loan under section 121 for upland cotton shall be established by the Secretary at such loan rate, per pound, as will reflect for the base quality of upland cotton, as determined by the Secretary, at average locations in the United States a rate that is not less than the smaller of--

        (A) 85 percent of the average price (weighted by market and month) of the base quality of cotton as quoted in the designated United States spot markets during three years of the five-year period ending July 31 of the year preceding the year in which the crop is planted, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; or

        (B) 90 percent of the average, for the 15-week period beginning July 1 of the year preceding the year in which the crop is planted, of the five lowest-priced growths of the growths quoted for Middling 1 3/32 -inch cotton C.I.F. Northern Europe (adjusted downward by the average difference during the period April 15 through October 15 of the year preceding the year in which the crop is planted between the average Northern European price quotation of such quality of cotton and the market quotations in the designated United States spot markets for the base quality of upland cotton), as determined by the Secretary.

      (2) LIMITATIONS- The loan rate for a marketing assistance loan for upland cotton shall not be less than $0.50 per pound or more than $0.5192 per pound.

    (d) EXTRA LONG STAPLE COTTON- The loan rate for a marketing assistance loan under section 121 for extra long staple cotton shall be--

      (1) not less than 85 percent of the simple average price received by producers of extra long staple cotton, as determined by the Secretary, during three years of the five-year period ending July 31 of the year preceding the year in which the crop is planted, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but

      (2) not more than $0.7965 per pound.

    (e) RICE- The loan rate for a marketing assistance loan under section 121 for rice shall be $6.50 per hundredweight.

    (f) OILSEEDS-

      (1) SOYBEANS- The loan rate for a marketing assistance loan under section 121 for soybeans shall be--

        (A) not less than 85 percent of the simple average price received by producers of soybeans, as determined by the Secretary, during the marketing years for the immediately preceding five crops of soybeans, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but

        (B) not more than $4.92 per bushel.

      (2) OTHER OILSEEDS- The loan rate for a marketing assistance loan under section 121 for other oilseeds shall be--

        (A) not less than 85 percent of the simple average price received by producers of the other oilseed, as determined by the Secretary, during the marketing years for the immediately preceding five crops of the other oilseed, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but

        (B) not more than $0.087 per pound.

SEC. 123. TERM OF LOANS.

    (a) TERM OF LOAN- In the case of each covered commodity (other than upland cotton or extra long staple cotton), a marketing assistance loan under section 121 shall have a term of nine months beginning on the first day of the first month after the month in which the loan is made.

    (b) SPECIAL RULE FOR COTTON- A marketing assistance loan for upland cotton or extra long staple cotton shall have a term of 10 months beginning on the first day of the month in which the loan is made.

    (c) EXTENSIONS PROHIBITED- The Secretary may not extend the term of a marketing assistance loan for any covered commodity.

SEC. 124. REPAYMENT OF LOANS.

    (a) REPAYMENT RATES FOR WHEAT, FEED GRAINS, AND OILSEEDS- The Secretary shall permit a producer to repay a marketing assistance loan under section 121 for wheat, corn, grain sorghum, barley, oats, and oilseeds at a rate that is the lesser of--

      (1) the loan rate established for the commodity under section 122, plus interest (as determined by the Secretary); or

      (2) a rate that the Secretary determines will--

        (A) minimize potential loan forfeitures;

        (B) minimize the accumulation of stocks of the commodity by the Federal Government;

        (C) minimize the cost incurred by the Federal Government in storing the commodity; and

        (D) allow the commodity produced in the United States to be marketed freely and competitively, both domestically and internationally.

    (b) REPAYMENT RATES FOR UPLAND COTTON AND RICE- The Secretary shall permit producers to repay a marketing assistance loan under section 121 for upland cotton and rice at a rate that is the lesser of--

      (1) the loan rate established for the commodity under section 122, plus interest (as determined by the Secretary); or

      (2) the prevailing world market price for the commodity (adjusted to United States quality and location), as determined by the Secretary.

    (c) REPAYMENT RATES FOR EXTRA LONG STAPLE COTTON- Repayment of a marketing assistance loan for extra long staple cotton shall be at the loan rate established for the commodity under section 122, plus interest (as determined by the Secretary).

    (d) PREVAILING WORLD MARKET PRICE- For purposes of this section and section 127, the Secretary shall prescribe by regulation--

      (1) a formula to determine the prevailing world market price for each covered commodity, adjusted to United States quality and location; and

      (2) a mechanism by which the Secretary shall announce periodically the prevailing world market price for each covered commodity.

    (e) ADJUSTMENT OF PREVAILING WORLD MARKET PRICE FOR UPLAND COTTON-

      (1) IN GENERAL- During the period beginning on the date of the enactment of this Act and ending July 31, 2012, the prevailing world market price for upland cotton (adjusted to United States quality and location) established under subsection (d) shall be further adjusted if--

        (A) the adjusted prevailing world market price is less than 115 percent of the loan rate for upland cotton established under section 122, as determined by the Secretary; and

        (B) the Friday through Thursday average price quotation for the lowest-priced United States growth as quoted for Middling (M) 1 3/32 -inch cotton delivered C.I.F. Northern Europe is greater than the Friday through Thursday average price of the 5 lowest-priced growths of upland cotton, as quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern Europe (referred to in this section as the ‘Northern Europe price’).

      (2) FURTHER ADJUSTMENT- Except as provided in paragraph (3), the adjusted prevailing world market price for upland cotton shall be further adjusted on the basis of some or all of the following data, as available:

        (A) The United States share of world exports.

        (B) The current level of cotton export sales and cotton export shipments.

        (C) Other data determined by the Secretary to be relevant in establishing an accurate prevailing world market price for upland cotton (adjusted to United States quality and location).

      (3) LIMITATION ON FURTHER ADJUSTMENT- The adjustment under paragraph (2) may not exceed the difference between--

        (A) the Friday through Thursday average price for the lowest-priced United States growth as quoted for Middling 1 3/32 -inch cotton delivered C.I.F. Northern Europe; and

        (B) the Northern Europe price.

SEC. 125. LOAN DEFICIENCY PAYMENTS.

    (a) AVAILABILITY OF LOAN DEFICIENCY PAYMENTS- Except as provided in subsection (d), the Secretary may make loan deficiency payments available to producers who, although eligible to obtain a marketing assistance loan under section 121 with respect to a covered commodity, agree to forgo obtaining the loan for the commodity in return for payments under this section.

    (b) COMPUTATION- A loan deficiency payment under this section shall be computed by multiplying--

      (1) the loan payment rate determined under subsection (c) for the covered commodity; by

      (2) the quantity of the covered commodity produced by the eligible producers, excluding any quantity for which the producers obtain a loan under section 121.

    (c) LOAN PAYMENT RATE- For purposes of this section, the loan payment rate shall be the amount by which--

      (1) the loan rate established under section 122 for the covered commodity; exceeds

      (2) the rate at which a loan for the commodity may be repaid under section 124.

    (d) EXCEPTION FOR EXTRA LONG STAPLE COTTON- This section shall not apply with respect to extra long staple cotton.

    (e) TIME FOR PAYMENT- The Secretary shall make a payment under this section to a producer with respect to a quantity of a covered commodity as of the earlier of the following:

      (1) The date on which the producer marketed or otherwise lost beneficial interest in the commodity, as determined by the Secretary.

      (2) The date the producer requests the payment.

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

    (a) ELIGIBLE PRODUCERS- Effective for the 2002 through 2011 crop years, in the case of a producer that would be eligible for a loan deficiency payment under section 125 for wheat, barley, or oats, but that elects to use acreage planted to the wheat, barley, or oats for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of the wheat, barley, or oats on that acreage.

    (b) PAYMENT AMOUNT- The amount of a payment made to a producer on a farm under this section shall be equal to the amount determined by multiplying--

      (1) the loan deficiency payment rate determined under section 125(c) in effect, as of the date of the agreement, for the county in which the farm is located; by

      (2) the payment quantity determined by multiplying--

        (A) the quantity of the grazed acreage on the farm with respect to which the producer elects to forgo harvesting of wheat, barley, or oats; and

        (B) the payment yield for that covered commodity on the farm.

    (c) TIME, MANNER, AND AVAILABILITY OF PAYMENT-

      (1) TIME AND MANNER- A payment under this section shall be made at the same time and in the same manner as loan deficiency payments are made under section 125.

      (2) AVAILABILITY- The Secretary shall establish an availability period for the payment authorized by this section that is consistent with the availability period for wheat, barley, and oats established by the Secretary for marketing assistance loans authorized by this subtitle.

    (d) PROHIBITION ON CROP INSURANCE OR NONINSURED CROP ASSISTANCE- A 2002 through 2011 crop of wheat, barley, or oats planted on acreage that a producer elects, in the agreement required by subsection (a), to use for the grazing of livestock in lieu of any other harvesting of the crop shall not be eligible for insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).

SEC. 127. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.

    (a) Cotton User Marketing Certificates-

      (1) ISSUANCE- During the period beginning on the date of the enactment of this Act and ending July 31, 2012, the Secretary shall issue marketing certificates or cash payments, at the option of the recipient, to domestic users and exporters for documented purchases by domestic users and sales for export by exporters made in the week following a consecutive four-week period in which--

        (A) the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern Europe exceeds the Northern Europe price by more than 1.25 cents per pound; and

        (B) the prevailing world market price for upland cotton (adjusted to United States quality and location) does not exceed 134 percent of the loan rate for upland cotton established under section 122.

      (2) VALUE OF CERTIFICATES OR PAYMENTS- The value of the marketing certificates or cash payments shall be based on the amount of the difference (reduced by 1.25 cents per pound) in the prices during the fourth week of the consecutive four-week period multiplied by the quantity of upland cotton included in the documented sales.

      (3) ADMINISTRATION OF MARKETING CERTIFICATES-

        (A) REDEMPTION, MARKETING, OR EXCHANGE- The Secretary shall establish procedures for redeeming marketing certificates for cash or marketing or exchange of the certificates for agricultural commodities owned by the Commodity Credit Corporation or pledged to the Commodity Credit Corporation as collateral for a loan in such manner, and at such price levels, as the Secretary determines will best effectuate the purposes of cotton user marketing certificates, including enhancing the competitiveness and marketability of United States cotton. Any price restrictions that would otherwise apply to the disposition of agricultural commodities by the Commodity Credit Corporation shall not apply to the redemption of certificates under this subsection.

        (B) DESIGNATION OF COMMODITIES AND PRODUCTS- To the extent practicable, the Secretary shall permit owners of certificates to designate the commodities and products, including storage sites, the owners would prefer to receive in exchange for certificates.

        (C) TRANSFERS- Marketing certificates issued to domestic users and exporters of upland cotton may be transferred to other persons in accordance with regulations issued by the Secretary.

    (b) Special Import Quota-

      (1) ESTABLISHMENT-

        (A) IN GENERAL- The President shall carry out an import quota program during the period beginning on the date of the enactment of this Act and ending July 31, 2012, as provided in this subsection.

        (B) PROGRAM REQUIREMENTS- Except as provided in subparagraph (C), whenever the Secretary determines and announces that for any consecutive four-week period, the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern Europe, adjusted for the value of any certificate issued under subsection (a), exceeds the Northern Europe price by more than 1.25 cents per pound, there shall immediately be in effect a special import quota.

        (C) TIGHT DOMESTIC SUPPLY- During any month for which the Secretary estimates the season-ending United States upland cotton stocks-to-use ratio, as determined under subparagraph (D), to be below 16 percent, the Secretary, in making the determination under subparagraph (B), shall not adjust the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern Europe, for the value of any certificates issued under subsection (a).

        (D) SEASON-ENDING UNITED STATES STOCKS-TO-USE RATIO- For the purposes of making estimates under subparagraph (C), the Secretary shall, on a monthly basis, estimate and report the season-ending United States upland cotton stocks-to-use ratio, excluding projected raw cotton imports but including the quantity of raw cotton that has been imported into the United States during the marketing year.

      (2) QUANTITY- The quota shall be equal to one week’s consumption of upland cotton by domestic mills at the seasonally adjusted average rate of the most recent three months for which data are available.

      (3) APPLICATION- The quota shall apply to upland cotton purchased not later than 90 days after the date of the Secretary’s announcement under paragraph (1) and entered into the United States not later than 180 days after the date.

      (4) OVERLAP- A special quota period may be established that overlaps any existing quota period if required by paragraph (1), except that a special quota period may not be established under this subsection if a quota period has been established under subsection (c).

      (5) PREFERENTIAL TARIFF TREATMENT- The quantity under a special import quota shall be considered to be an in-quota quantity for purposes of--

        (A) section 213(d) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(d));

        (B) section 204 of the Andean Trade Preference Act (19 U.S.C. 3203);

        (C) section 503(d) of the Trade Act of 1974 (19 U.S.C. 2463(d)); and

        (D) General Note 3(a)(iv) to the Harmonized Tariff Schedule.

      (6) DEFINITION- In this subsection, the term ‘special import quota’ means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.

      (7) LIMITATION- The quantity of cotton entered into the United States during any marketing year under the special import quota established under this subsection may not exceed the equivalent of five week’s consumption of upland cotton by domestic mills at the seasonally adjusted average rate of the three months immediately preceding the first special import quota established in any marketing year.

    (c) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND COTTON-

      (1) IN GENERAL- The President shall carry out an import quota program that provides that whenever the Secretary determines and announces that the average price of the base quality of upland

cotton, as determined by the Secretary, in the designated spot markets for a month exceeded 130 percent of the average price of such quality of cotton in the markets for the preceding 36 months, notwithstanding any other provision of law, there shall immediately be in effect a limited global import quota subject to the following conditions:

        (A) QUANTITY- The quantity of the quota shall be equal to 21 days of domestic mill consumption of upland cotton at the seasonally adjusted average rate of the most recent three months for which data are available.

        (B) QUANTITY IF PRIOR QUOTA- If a quota has been established under this subsection during the preceding 12 months, the quantity of the quota next established under this subsection shall be the smaller of 21 days of domestic mill consumption calculated under subparagraph (A) or the quantity required to increase the supply to 130 percent of the demand.

        (C) PREFERENTIAL TARIFF TREATMENT- The quantity under a limited global import quota shall be considered to be an in-quota quantity for purposes of--

          (i) section 213(d) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(d));

          (ii) section 204 of the Andean Trade Preference Act (19 U.S.C. 3203);

          (iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 2463(d)); and

          (iv) General Note 3(a)(iv) to the Harmonized Tariff Schedule.

        (D) DEFINITIONS- In this subsection:

          (i) SUPPLY- The term ‘supply’ means, using the latest official data of the Bureau of the Census, the Department of Agriculture, and the Department of the Treasury--

            (I) the carry-over of upland cotton at the beginning of the marketing year (adjusted to 480-pound bales) in which the quota is established;

            (II) production of the current crop; and

            (III) imports to the latest date available during the marketing year.

          (ii) DEMAND- The term ‘demand’ means--

            (I) the average seasonally adjusted annual rate of domestic mill consumption during the most recent three months for which data are available; and

            (II) the larger of--

(aa) average exports of upland cotton during the preceding six marketing years; or

(bb) cumulative exports of upland cotton plus outstanding export sales for the marketing year in which the quota is established.

          (iii) LIMITED GLOBAL IMPORT QUOTA- The term ‘limited global import quota’ means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.

        (E) QUOTA ENTRY PERIOD- When a quota is established under this subsection, cotton may be entered under the quota during the 90-day period beginning on the date the quota is established by the Secretary.

      (2) NO OVERLAP- Notwithstanding paragraph (1), a quota period may not be established that overlaps an existing quota period or a special quota period established under subsection (b).

SEC. 128. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE COTTON.

    (a) COMPETITIVENESS PROGRAM- Notwithstanding any other provision of law, during the period beginning on the date of the enactment of this Act and ending on July 31, 2012, the Secretary shall carry out a program to maintain and expand the domestic use of extra long staple cotton produced in the United States, to increase exports of extra long staple cotton produced in the United States, and to ensure that extra long staple cotton produced in the United States remains competitive in world markets.

    (b) PAYMENTS UNDER PROGRAM; TRIGGER- Under the program, the Secretary shall make payments available under this section whenever--

      (1) for a consecutive four-week period, the world market price for the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is below the prevailing

United States price for a competing growth of extra long staple cotton; and

      (2) the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is less than 134 percent of the loan rate for extra long staple cotton.

    (c) ELIGIBLE RECIPIENTS- The Secretary shall make payments available under this section to domestic users of extra long staple cotton produced in the United States and exporters of extra long staple cotton produced in the United States who enter into an agreement with the Commodity Credit Corporation to participate in the program under this section.

    (d) PAYMENT AMOUNT- Payments under this section shall be based on the amount of the difference in the prices referred to in subsection (b)(1) during the fourth week of the consecutive four-week period multiplied by the amount of documented purchases by domestic users and sales for export by exporters made in the week following such a consecutive four-week period.

    (e) FORM OF PAYMENT- Payments under this section shall be made through the issuance of cash or marketing certificates, at the option of eligible recipients of the payments.

SEC. 129. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS AND SEED COTTON AND OTHER FIBERS.

    (a) HIGH MOISTURE FEED GRAINS-

      (1) RECOURSE LOANS AVAILABLE- For each of the 2002 through 2011 crops of corn and grain sorghum, the Secretary shall make available recourse loans, as determined by the Secretary, to producers on a farm who--

        (A) normally harvest all or a portion of their crop of corn or grain sorghum in a high moisture state;

        (B) present--

          (i) certified scale tickets from an inspected, certified commercial scale, including a licensed warehouse, feedlot, feed mill, distillery, or other similar entity approved by the Secretary, pursuant to regulations issued by the Secretary; or

          (ii) field or other physical measurements of the standing or stored crop in regions of the United States, as determined by the Secretary, that do not have certified commercial scales from which certified scale tickets may be obtained within reasonable proximity of harvest operation;

        (C) certify that they were the owners of the feed grain at the time of delivery to, and that the quantity to be placed under loan under this subsection was in fact harvested on the farm and delivered to, a feedlot, feed mill, or commercial or on-farm high-moisture storage facility, or to a facility maintained by the users of corn and grain sorghum in a high moisture state; and

        (D) comply with deadlines established by the Secretary for harvesting the corn or grain sorghum and submit applications for loans under this subsection within deadlines established by the Secretary.

      (2) ELIGIBILITY OF ACQUIRED FEED GRAINS- A loan under this subsection shall be made on a quantity of corn or grain sorghum of the same crop acquired by the producer equivalent to a quantity determined by multiplying--

        (A) the acreage of the corn or grain sorghum in a high moisture state harvested on the producer’s farm; by

        (B) the lower of the farm program payment yield or the actual yield on a field, as determined by the Secretary, that is similar to the field from which the corn or grain sorghum was obtained.

      (3) HIGH MOISTURE STATE DEFINED- In this subsection, the term ‘high moisture state’ means corn or grain sorghum having a moisture content in excess of Commodity Credit Corporation standards for marketing assistance loans made by the Secretary under section 121.

    (b) RECOURSE LOANS AVAILABLE FOR SEED COTTON- For each of the 2002 through 2011 crops of upland cotton and extra long staple cotton, the Secretary shall make available recourse seed cotton loans, as determined by the Secretary, on any production.

    (c) REPAYMENT RATES- Repayment of a recourse loan made under this section shall be at the loan rate established for the commodity by the Secretary, plus interest (as determined by the Secretary).

    (d) TERMINATION OF SUPERSEDED LOAN AUTHORITY- Notwithstanding section 137 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7237), recourse loans shall not be made for the 2002 crop of corn, grain sorghum, and seed cotton under such section.

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

    (a) NONRECOURSE LOANS AVAILABLE- During the 2002 through 2011 marketing years for wool and mohair, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for wool and mohair produced on the farm during that marketing year.

    (b) LOAN RATE- The loan rate for a loan under subsection (a) shall be not more than--

      (1) $1.00 per pound for graded wool;

      (2) $0.40 per pound for nongraded wool; and

      (3) $4.20 per pound for mohair.

    (c) TERM OF LOAN- A loan under subsection (a) shall have a term of one year beginning on the first day of the first month after the month in which the loan is made.

    (d) REPAYMENT RATES- The Secretary shall permit a producer to repay a marketing assistance loan under subsection (a) for wool or mohair at a rate that is the lesser of--

      (1) the loan rate established for the commodity under subsection (b), plus interest (as determined by the Secretary); or

      (2) a rate that the Secretary determines will--

        (A) minimize potential loan forfeitures;

        (B) minimize the accumulation of stocks of the commodity by the Federal Government;

        (C) minimize the cost incurred by the Federal Government in storing the commodity; and

        (D) allow the commodity produced in the United States to be marketed freely and competitively, both domestically and internationally.

    (e) LOAN DEFICIENCY PAYMENTS-

      (1) AVAILABILITY- The Secretary may make loan deficiency payments available to producers that, although eligible to obtain a marketing assistance loan under this section, agree to forgo obtaining the loan in return for payments under this section.

      (2) COMPUTATION- A loan deficiency payment under this subsection shall be computed by multiplying--

        (A) the loan payment rate in effect under paragraph (3) for the commodity; by

        (B) the quantity of the commodity produced by the eligible producers, excluding any quantity for which the producers obtain a loan under this subsection.

      (3) LOAN PAYMENT RATE- For purposes of this subsection, the loan payment rate for wool or mohair shall be the amount by which--

        (A) the loan rate in effect for the commodity under subsection (b); exceeds

        (B) the rate at which a loan for the commodity may be repaid under subsection (d).

      (4) TIME FOR PAYMENT- The Secretary shall make a payment under this subsection to a producer with respect to a quantity of a wool or mohair as of the earlier of the following:

        (A) The date on which the producer marketed or otherwise lost beneficial interest in the wool or mohair, as determined by the Secretary.

        (B) The date the producer requests the payment.

    (f) LIMITATIONS- The marketing assistance loan gains and loan deficiency payments that a person may receive for wool and mohair under this section shall be subject to a separate payment limitation, but in the same dollar amount, as the payment limitation that applies to marketing assistance loans and loan deficiency payments received by producers of other agricultural commodities in the same marketing year.

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

    (a) NONRECOURSE LOANS AVAILABLE- During the 2002 through 2011 crop years for honey, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for honey produced on the farm during that crop year.

    (b) LOAN RATE- The loan rate for a marketing assistance loan for honey under subsection (a) shall be equal to $0.60 cents per pound.

    (c) TERM OF LOAN- A marketing assistance loan under subsection (a) shall have a term of one year beginning on the first day of the first month after the month in which the loan is made.

    (d) REPAYMENT RATES- The Secretary shall permit a producer to repay a marketing assistance loan for honey under subsection (a) at a rate that is the lesser of--

      (1) the loan rate for honey, plus interest (as determined by the Secretary); or

      (2) the prevailing domestic market price for honey, as determined by the Secretary.

    (e) LOAN DEFICIENCY PAYMENTS-

      (1) AVAILABILITY- The Secretary may make loan deficiency payments available to any producer of honey that, although eligible to obtain a marketing assistance loan under subsection (a), agrees to forgo obtaining the loan in return for a payment under this subsection.

      (2) COMPUTATION- A loan deficiency payment under this subsection shall be determined by multiplying--

        (A) the loan payment rate determined under paragraph (3); by

        (B) the quantity of honey that the producer is eligible to place under loan, but for which the producer forgoes obtaining the loan in return for a payment under this subsection.

      (3) LOAN PAYMENT RATE- For the purposes of this subsection, the loan payment rate shall be the amount by which--

        (A) the loan rate established under subsection (b); exceeds

        (B) the rate at which a loan may be repaid under subsection (d).

      (4) TIME FOR PAYMENT- The Secretary shall make a payment under this subsection to a producer with respect to a quantity of a honey as of the earlier of the following:

        (A) The date on which the producer marketed or otherwise lost beneficial interest in the honey, as determined by the Secretary.

        (B) The date the producer requests the payment.

    (f) LIMITATIONS- The marketing assistance loan gains and loan deficiency payments that a person may receive for a crop of honey under this section shall be subject to a separate payment limitation, but in the same dollar amount, as the payment limitation that applies to marketing assistance loans and loan deficiency payments received by producers of other agricultural commodities in the same crop year.

    (g) PREVENTION OF FORFEITURES- The Secretary shall carry out this section in such a manner as to minimize forfeitures of honey marketing assistance loans.

Subtitle C--Other Commodities

CHAPTER 1--DAIRY

SEC. 141. MILK PRICE SUPPORT PROGRAM.

    (a) SUPPORT ACTIVITIES- During the period beginning on January 1, 2002, and ending on December 31, 2011, the Secretary of Agriculture shall support the price of milk produced in the 48 contiguous States through the purchase of cheese, butter, and nonfat dry milk produced from the milk.

    (b) RATE- During the period specified in subsection (a), the price of milk shall be supported at a rate equal

to $9.90 per hundredweight for milk containing 3.67 percent butterfat.

    (c) PURCHASE PRICES- The support purchase prices under this section for each of the products of milk (butter, cheese, and nonfat dry milk) announced by the Secretary shall be the same for all of that product sold by persons offering to sell the product to the Secretary. The purchase prices shall be sufficient to enable plants of average efficiency to pay producers, on average, a price that is not less than the rate of price support for milk in effect under subsection (b).

    (d) SPECIAL RULE FOR BUTTER AND NONFAT DRY MILK PURCHASE PRICES-

      (1) ALLOCATION OF PURCHASE PRICES- The Secretary may allocate the rate of price support between the purchase prices for nonfat dry milk and butter in a manner that will result in the lowest level of expenditures by the Commodity Credit Corporation or achieve such other objectives as the Secretary considers appropriate. Not later than 10 days after making or changing an allocation, the Secretary shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate of the allocation. Section 553 of title 5, United States Code, shall not apply with respect to the implementation of this section.

      (2) TIMING OF PURCHASE PRICE ADJUSTMENTS- The Secretary may make any such adjustments in the purchase prices for nonfat dry milk and butter the Secretary considers to be necessary not more than twice in each calendar year.

    (e) COMMODITY CREDIT CORPORATION- The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation.

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

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

SEC. 143. DAIRY EXPORT INCENTIVE PROGRAM.

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

SEC. 144. FLUID MILK PROMOTION.

    (a) DEFINITION OF FLUID MILK PRODUCT- Section 1999C of the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402) is amended by striking paragraph (3) and inserting the following new paragraph:

      ‘(3) FLUID MILK PRODUCT- The term ‘fluid milk product’ has the meaning given such term--

        ‘(A) in section 1000.15 of title 7, Code of Federal Regulations, subject to such amendments as may be made from time to time; or

        ‘(B) in any successor regulation providing a definition of such term that is promulgated pursuant to the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937.’.

    (b) DEFINITION OF FLUID MILK PROCESSOR- Section 1999C(4) of the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402(4)) is amended by striking ‘500,000’ and inserting ‘3,000,000’.

    (c) ELIMINATION OF ORDER TERMINATION DATE- Section 1999O of the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6414) is amended--

      (1) by striking subsection (a); and

      (2) by redesignating subsections (b) and (c) as subsections (a) and (b), respectively.

SEC. 145. DAIRY PRODUCT MANDATORY REPORTING.

    Section 273(b)(1)(B) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b(b)(1)(B)) is amended--

      (1) by inserting ‘and substantially identical products designated by the Secretary’ after ‘dairy products’ the first place it appears; and

      (2) by inserting ‘and such substantially identical products’ after ‘dairy products’ the second place it appears.

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

    (a) DEFINITIONS- Section 111 of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4502) is amended--

      (1) in subsection (k), by striking ‘and’ at the end;

      (2) in subsection (l), by striking the period at the end and inserting a semicolon; and

      (3) by adding at the end the following:

      ‘(m) the term ‘imported dairy product’ means any dairy product that is imported into the United States, including dairy products imported into the United States in the form of--

        ‘(1) milk, cream, and fresh and dried dairy products;

        ‘(2) butter and butterfat mixtures;

        ‘(3) cheese; and

        ‘(4) casein and mixtures;

      ‘(n) the term ‘importer’ means a person that imports an imported dairy product into the United States; and

      ‘(o) the term ‘Customs’ means the United States Customs Service.’.

    (b) REPRESENTATION OF IMPORTERS ON BOARD- Section 113(b) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(b)) is amended--

      (1) by inserting ‘NATIONAL DAIRY PROMOTION AND RESEARCH BOARD- ’ after ‘(b)’;

      (2) by designating the first through ninth sentences as paragraphs (1) through (5) and paragraphs (7) through (10), respectively, and indenting the paragraphs appropriately;

      (3) in paragraph (2) (as so designated), by striking ‘Members’ and inserting ‘Except as provided in paragraph (6), the members’; and

      (4) by inserting after paragraph (5) (as so designated) the following:

      ‘(6) IMPORTERS-

        ‘(A) REPRESENTATION- The Secretary shall appoint not more than 2 members who represent importers of dairy products and are subject to assessments under the order, to reflect the proportion of domestic production and imports supplying the United States market, which shall be based on the Secretary’s determination of the average volume of domestic production of dairy products proportionate to the average volume of imports of dairy products in the United States over the previous three years.

        ‘(B) ADDITIONAL MEMBERS; NOMINATIONS- The members appointed under this paragraph--

          ‘(i) shall be in addition to the total number of members appointed under paragraph (2); and

          ‘(ii) shall be appointed from nominations submitted by importers under such procedures as the Secretary determines to be appropriate.’.

    (c) IMPORTER ASSESSMENT- Section 113(g) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(g)) is amended--

      (1) by inserting ‘ASSESSMENTS- ’ after ‘(g)’;

      (2) by designating the first through fifth sentences as paragraphs (1) through (5), respectively, and indenting appropriately; and

      (3) by adding at the end the following:

      ‘(6) IMPORTERS-

        ‘(A) IN GENERAL- The order shall provide that each importer of imported dairy products shall pay an assessment to the Board in the manner prescribed by the order.

        ‘(B) TIME FOR PAYMENT- The assessment on imported dairy products shall be paid by the importer to Customs at the time of the entry of the products into the United States and shall be remitted by Customs to the Board. For purposes of this subparagraph, entry of the products into the United States shall be deemed to have occurred when the products are released from custody of Customs and introduced into the stream of commerce within the United States. Importers include persons who hold title to foreign-produced dairy products immediately upon release by Customs, as well as persons who act on behalf of others, as agents, brokers, or consignees, to secure the release of dairy products from Customs and the introduction of the released dairy products into the stream of commerce.

        ‘(C) RATE- The rate of assessment on imported dairy products shall be determined in the same manner as the rate of assessment per hundredweight or the equivalent of milk.

        ‘(D) VALUE OF PRODUCTS- For the purpose of determining the assessment on imported dairy products under subparagraph (C), the value to be placed on imported dairy products shall be established by the Secretary in a fair and equitable manner.

        ‘(E) USE OF ASSESSMENTS ON IMPORTED DAIRY- Assessments collected on imported dairy products shall not be used for foreign market promotion.’.

    (d) RECORDS- Section 113(k) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(k)) is amended in the first sentence by striking ‘person receiving’ and inserting ‘importer of imported dairy products, each person receiving’.

    (e) IMPORTER ELIGIBILITY TO VOTE IN REFERENDUM- Section 116(b) of the Dairy Promotion Stabilization Act of 1983 (7 U.S.C. 4507(b)) is amended--

      (1) in the first sentence--

        (A) by inserting after ‘of producers’ the following: ‘and importers’; and

        (B) by inserting after ‘the producers’ the following: ‘and importers’; and

      (2) in the second sentence, by inserting after ‘commercial use’ the following: ‘and importers voting in the referendum (who have been engaged in the importation of dairy products during the same representative period, as determined by the Secretary).’.

    (f) CONFORMING AMENDMENTS TO REFLECT ADDITION OF IMPORTERS- Section 110(b) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4501(b)) is amended--

      (1) in the first sentence--

        (A) by inserting after ‘commercial use’ the following: ‘and on imported dairy products’; and

        (B) by striking ‘products produced in the United States.’ and inserting ‘products.’; and

      (2) in the second sentence, by inserting after ‘produce milk’ the following: ‘or the right of any person to import dairy products’.

CHAPTER 2--SUGAR

SEC. 151. SUGAR PROGRAM.

    (a) CONTINUATION OF PROGRAM- Subsection (i) of section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7251) is amended--

      (1) by striking ‘(other than subsection (f))’; and

      (2) by striking ‘2002 crops’ and inserting ‘2011 crops’.

    (b) TERMINATION OF MARKETING ASSESSMENT- Effective as of October 1, 2001, subsection (f) of such section is repealed.

    (c) LOAN RATE ADJUSTMENTS- Subsection (c) of such section is amended--

      (1) by striking ‘REDUCTION IN LOAN RATES’ and inserting ‘LOAN RATE ADJUSTMENTS’; and

      (2) in paragraph (1)--

        (A) by striking ‘REDUCTION REQUIRED’ and inserting ‘POSSIBLE REDUCTION’; and

        (B) by striking ‘shall’ and inserting ‘may’.

    (d) NOTIFICATION- Subsection (e) of such section is amended by adding at the end the following new paragraph:

      ‘(3) PREVENTION OF ONEROUS NOTIFICATION REQUIREMENTS- The Secretary may not impose or enforce any prenotification or similar administrative requirement that has the effect of preventing a processor from choosing to forfeit the loan collateral upon the maturity of the loan.’.

    (e) IN PROCESS SUGAR- Such section is further amended by inserting after subsection (e) the following new subsection (f):

    ‘(f) LOANS FOR IN-PROCESS SUGAR-

      ‘(1) AVAILABILITY; RATE- The Secretary shall make nonrecourse loans available to processors of domestically grown sugarcane and sugar beets for in-process sugars and syrups derived from such crops. The loan rate shall be equal to 80 percent of the loan rate applicable to raw cane sugar or refined beet sugar, depending on the source material for the in-process sugars and syrups.

      ‘(2) FURTHER PROCESSING UPON FORFEITURE- As a condition on the forfeiture of in-process sugars and syrups serving as collateral for a loan under paragraph (1), the processor shall, within such reasonable time period as the Secretary may prescribe and at no cost to the Commodity Credit Corporation, convert the in-process sugars and syrups into raw cane sugar or refined beet sugar of acceptable grade and quality for sugars eligible for loans under subsection (a) or (b). Once the in-process sugars and syrups are fully processed into raw cane sugar or refined beet sugar, the processor shall transfer the sugar to the Corporation, which shall make a payment to the processor in an amount equal to the difference between the loan rate for raw cane sugar or refined beet sugar, whichever applies, and the loan rate the processor received under paragraph (1).

      ‘(3) LOAN CONVERSION- If the processor does not forfeit the collateral as described in paragraph (2), but instead further processes the in-process sugars and syrups into raw cane sugar or refined beet sugar and repays the loan on the in-process sugars and syrups, the processor may then obtain a loan under subsection (a) or (b) on the raw cane sugar or refined beet sugar, as appropriate.

      ‘(4) DEFINITION- In this subsection the term ‘in-process sugars and syrups’ does not include raw sugar, liquid sugar, invert sugar, invert syrup, or other finished products that are otherwise eligible for loans under subsection (a) or (b).’.

    (f) ADMINISTRATION OF PROGRAM- Such section is further amended by adding at the end the following new subsection:

    ‘(j) AVOIDING FORFEITURES; CORPORATION INVENTORY DISPOSITION-

      ‘(1) NO COST- To the maximum extent practicable, the Secretary shall operate the sugar program established under this section at no cost to the Federal Government by avoiding the forfeiture of sugar to the Commodity Credit Corporation.

      ‘(2) INVENTORY DISPOSITION- In support of the objective specified in paragraph (1), the Commodity Credit Corporation may accept bids for commodities in the inventory of the Corporation from (or otherwise make available such commodities, on appropriate terms and conditions, to) processors of sugarcane and processors of sugar beets (when the processors are acting in conjunction with the producers of the sugarcane or sugar beets processed by such processors) in return for the reduction of production of raw cane sugar or refined beet sugar, as appropriate. The authority provided under this paragraph is in addition to any authority of the Corporation under any other law.’.

    (g) INFORMATION REPORTING- Subsection (h) of such section is amended--

      (1) by redesignating paragraphs (2) and (3) as paragraphs (4) and (5), respectively;

      (2) by inserting after paragraph (1) the following new paragraphs:

      ‘(2) DUTY OF PRODUCERS TO REPORT-

        ‘(A) PROPORTIONATE SHARE STATES- The Secretary shall require a producer of sugarcane located in a State (other than Puerto Rico) in which there are in excess of 250 sugarcane producers to report, in the manner prescribed by the Secretary, the producer’s sugarcane yields and acres planted to sugarcane.

        ‘(B) OTHER STATES- The Secretary may require producers of sugarcane or sugar beets not covered by paragraph (1) to report, in the manner prescribed by the Secretary, each producer’s sugarcane or sugar beet yields and acres planted to sugarcane or sugar beets, respectively.

      ‘(3) DUTY OF IMPORTERS TO REPORT- The Secretary shall require an importer of sugars, syrups or molasses to be used for human consumption or to be used for the extraction of sugar for human consumption, except such sugars, syrups, or molasses that are within the quantities of tariff-rate quotas that are at the lower rate of duties, to report, in the manner prescribed by the Secretary, the quantities of such products imported and the sugar content or equivalent of such products.’; and

      (3) in paragraph (5), as so redesignated, by striking ‘paragraph (1)’ and inserting ‘this subsection’.

    (h) INTEREST RATE- Section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283) is amended by adding at the end the following new sentence: ‘For purposes of this section, raw cane sugar, refined beet sugar, and in process sugar eligible for a loan under section 156 shall not be considered an agricultural commodity.’.

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

    (a) INFORMATION REPORTING- Section 359a of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) is repealed.

    (b) ESTIMATES- Section 359b of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is amended:

      (1) in the section heading--

        (A) by inserting ‘flexible’ before ‘marketing’; and

        (B) by striking ‘and crystalline fructose’;

      (2) in subsection (a)--

        (A) in paragraph (1)--

          (i) by striking ‘Before’ and inserting ‘Not later than August 1 before’;

          (ii) by striking ‘1992 through 1998’ and inserting ‘2002 through 2011’;

          (iii) in subparagraph (A), by striking ‘(other than sugar’ and all that follows through ‘stocks’;

          (iv) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (E), respectively;

          (v) by inserting after subparagraph (A) the following:

        ‘(B) the quantity of sugar that would provide for reasonable carryover stocks;’;

          (vi) in subparagraph (C), as so redesignated--

            (I) by striking ‘or’ through ‘beets’; and

            (II) by striking the ‘and’ following the semicolon;

          (vii) by inserting after subparagraph (C), as so redesignated, the following:

        ‘(D) the quantity of sugar that will be available from the domestic processing of sugarcane and sugar beets; and’; and

          (viii) in subparagraph (E), as so redesignated--

            (I) by striking ‘quantity of sugar’ and inserting ‘quantity of sugars, syrups, and molasses’;

            (II) by inserting ‘human’ after ‘imported for’;

            (III) by inserting after ‘consumption’ the following: ‘or to be used for the extraction of sugar for human consumption’;

            (IV) by striking ‘year’ and inserting ‘year, whether such articles are under a tariff-rate quota or are in excess or outside of a tariff rate quota’; and

            (V) by striking ‘in (other than sugar’ and all that follows through ‘carry-in stocks’;

        (B) by redesignating paragraph (2) as paragraph (3);

        (C) by inserting after paragraph (1) the following new paragraph:

      ‘(2) EXCLUSION- The estimates in this section shall not include sugar imported for the production of polyhydric alcohol or to be refined and re-exported in refined form or in sugar containing products.’;

        (D) in paragraph (3), as so redesignated--

          (i) by amending the heading to read ‘REESTIMATES’; and

          (ii) by inserting ‘as necessary, but’ after ‘a fiscal year’;

      (3) in subsection (b)--

        (A) by striking paragraph (1) and inserting the following new paragraph:

      ‘(1) IN GENERAL- By the beginning of each fiscal year, the Secretary shall establish for that fiscal year appropriate allotments under section 359c for the marketing by processors of sugar processed from sugar beets and from domestically-produced sugarcane at a level that the Secretary estimates will result in no forfeitures of sugar to the Commodity Credit Corporation under the loan program for sugar.’; and

        (B) in paragraph (2), by striking ‘or crystalline fructose’;

      (4) by striking subsection (c);

      (5) by redesignating subsection (d) as subsection (c); and

      (6) in subsection (c), as so redesignated--

        (A) by striking paragraph (2);

        (B) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively; and

        (C) in paragraph (2), as so redesignated--

          (i) by striking ‘or manufacturer’ through ‘(2)’; and

          (ii) by striking ‘or crystalline fructose’.

    (c) ESTABLISHMENT- Section 359c of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc) is amended--

      (1) in the section heading by inserting ‘flexible’ after ‘of’;

      (2) in subsection (a), by inserting ‘flexible’ after ‘establish’;

      (3) in subsection (b)--

        (A) in paragraph (1)(A), by striking ‘1,250,000’ and inserting ‘1,532,000’; and

        (B) in paragraph (2), by striking ‘to the maximum extent practicable’;

      (4) by striking subsection (c) and inserting the following new subsection:

    ‘(c) MARKETING ALLOTMENT FOR SUGAR DERIVED FROM SUGAR BEETS AND MARKETING ALLOTMENT FOR SUGAR DERIVED FROM SUGARCANE- The overall allotment quantity for the fiscal year shall be allotted among--

      ‘(1) sugar derived from sugarbeets by establishing a marketing allotment for a fiscal year at a quantity equal to the product of multiplying the overall allotment quantity for the fiscal year by the percentage of 54.35; and

      ‘(2) sugar derived from sugarcane by establishing a marketing allotment for a fiscal year at a quantity equal to the product of multiplying the overall allotment quantity for the fiscal year by the percentage of 45.65.’;

      (5) by amending subsection (d) to read as follows:

    ‘(d) FILLING CANE SUGAR AND BEET SUGAR ALLOTMENTS- Each marketing allotment for cane sugar established under this section may only be filled with sugar processed from domestically grown sugarcane, and each marketing allotment for beet sugar established under this section may only be filled with sugar domestically processed from sugar beets.’;

      (6) by striking subsection (e);

      (7) by redesignating subsection (f) as subsection (e);

      (8) in subsection (e), as so redesignated--

        (A) by inserting ‘(1) IN GENERAL- ’ before ‘The allotment for sugar’ and indenting such paragraph appropriately;

        (B) in such paragraph (1)--

          (i) by striking ‘the 5’ and inserting ‘the’;

          (ii) by inserting after ‘sugarcane is produced,’ the following: ‘after a hearing, if requested by the affected sugar cane processors and growers, and on such notice as the Secretary by regulation may prescribe,’;

          (iii) by striking ‘on the basis of past marketings’ and all that follows through ‘allotments’, and inserting ‘as provided in this subsection and section 359(d)(a)(2)(A)(iv)’; and

        (C) by inserting after paragraph (1) the following new paragraphs:

      ‘(2) OFFSHORE ALLOTMENT-

        ‘(A) COLLECTIVELY- Prior to the allotment of sugar derived from sugarcane to any other State, 325,000 short tons, raw value shall be allotted to the offshore States.

        ‘(B) INDIVIDUALLY- The collective offshore State allotment provided for under subparagraph (A) shall be further allotted among the offshore States in which sugarcane is produced, after a hearing if requested by the affected sugar cane processors and growers, and on such notice as the Secretary by regulation may prescribe, in a fair and equitable manner on the basis of--

          ‘(i) past marketings of sugar, based on the average of the 2 highest years of production of raw cane sugar from the 1996 through 2000 crops;

          ‘(ii) the ability of processors to market the sugar covered under the allotments for the crop year; and

          ‘(iii) past processings of sugar from sugarcane based on the 3 year average of the crop years 1998 through 2000.

      ‘(3) MAINLAND ALLOTMENT- The allotment for sugar derived from sugarcane, less the amount provided for under paragraph (2), shall be allotted among the mainland States in the United States in which sugarcane is produced, after a hearing if requested by the affected sugar cane processors and

growers, and on such notice as the Secretary by regulation may prescribe, in a fair and equitable manner on the basis of--

        ‘(A) past marketings of sugar, based on the average of the 2 highest years of production of raw cane sugar from the 1996 through 2000 crops;

        ‘(B) the ability of processors to market the sugar covered under the allotments for the crop year; and

        ‘(C) past processings of sugar from sugarcane, based on the 3 crop years with the greatest processings (in the mainland States collectively) during the 1991 through 2000 crop years.’;

      (9) by inserting after subsection (e), as so redesignated, the following new subsection (f):

    ‘(f) FILLING CANE SUGAR ALLOTMENTS- Except as otherwise provided in section 359e, a State cane sugar allotment established under subsection (e) for a fiscal year may be filled only with sugar processed from sugarcane grown in the State covered by the allotment.’;

      (10) in subsection (g)--

        (A) in paragraph (1), by striking ‘359b(a)(2)--’ through the end of subparagraph (C) and inserting ‘359b(a)(3), adjust upward or downward marketing allotments in a fair and equitable manner’;

        (B) in paragraph (2) by striking ‘359f(b)’ and inserting ‘359f(c)’; and

        (C) in paragraph (3)--

          (i) by striking ‘REDUCTIONS’ and inserting ‘CARRY-OVER OF REDUCTIONS’;

          (ii) by inserting after ‘this subsection, if’ the following: ‘at the time of the reduction’;

          (iii) by striking ‘price support’ and inserting ‘nonrecourse’;

          (iv) by striking ‘206’ through ‘the allotment’ and inserting ‘156 of the Agricultural Market Transition Act (7 U.S.C. 7272),’; and

          (v) by striking ‘, if any,’; and

      (11) by amending subsection (h) to read as follows:

    ‘(h) SUSPENSION OF ALLOTMENTS- Whenever the Secretary estimates, or reestimates, under section 359b(a), or has reason to believe that imports of sugars, syrups or molasses for human consumption or to be used for the extraction of sugar for human consumption, whether under a tariff-rate quota or in excess or outside of a tariff-rate quota, will exceed 1.532 million short tons, raw value equivalent, and that such imports would lead to a reduction of the overall allotment quantity, the Secretary shall suspend the marketing allotments until such time as such imports have been restricted, eliminated, or otherwise reduced to or below the level of 1.532 million tons.’.

    (d) ALLOCATION- Section 359d of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd) is amended--

      (1) in subsection (a)(2)(A)--

        (A) by inserting ‘(i) IN GENERAL- ’ before ‘The Secretary shall’ and indenting such clause appropriately;

        (B) in clause (i), as so designated--

          (ii) by striking ‘interested parties’ and inserting ‘the affected sugar cane processors and growers’;

          (iii) by striking ‘by taking’ through ‘allotment allocated.’ and inserting ‘with this subparagraph.’; and

          (iv) by inserting at the end the following new sentence: ‘Each such allocation shall be subject to adjustment under section 359c(g).’;

        (C) by inserting after clause (i) the following new clause:

          ‘(ii) MULTIPLE PROCESSOR STATES- Except as provided in clause (iii), the Secretary shall allocate the allotment for cane sugar among multiple cane sugar processors in a single State based upon--

            ‘(I) past marketings of sugar, based on the average of the 2 highest years of production of raw cane sugar from among the 1996 through 2000 crops;

            ‘(II) the ability of processors to market sugar covered by that portion of the allotment allocated for the crop year;

            ‘(III) past processings of sugar from sugarcane, based on the average of the 3 highest years from among crop years 1996 through 2000; and

            ‘(IV) however, only with respect to allotments under subclauses (I), (II), and (III) attributable to the former operations of the Talisman processing facility, shall be allocated among processors in the State coincident with the provisions of the agreements of March 25 and March 26, 1999, between the affected processors and the Department of the Interior.

          ‘(iii) PROPORTIONATE SHARE STATES- In the case of States subject to section 359f(c), the Secretary shall allocate the allotment for cane sugar among multiple cane sugar processors in a single state based upon--

            ‘(I) past marketings of sugar, based on the average of the two highest years of production of raw cane sugar from among the 1997 through 2001 crop years;

            ‘(II) the ability of processors to market sugar covered by that portion of the allotments allocated for the crop year; and

            ‘(III) past processings of sugar from sugarcane, based on the average of the two highest crop years from the five crop years 1997 through 2001.

          ‘(iv) NEW ENTRANTS- Notwithstanding clauses (ii) and (iii), the Secretary, on application of any processor that begins processing sugarcane on or after the date of enactment of this clause, and after a hearing if requested by the affected sugarcane processors and growers, and on such notice as the Secretary by regulation may prescribe, may provide such processor with an allocation which provides a fair, efficient and equitable distribution of the allocations from the allotment for the State in which the processor is located and, in the case of proportionate share States, shall establish proportionate shares in an amount sufficient to produce the sugarcane required to satisfy such allocations. However, the allotment for a new processor under this clause shall not exceed 50,000 short tons, raw value.

    ‘(v) TRANSFER OF OWNERSHIP- Except as otherwise provided in section 359f(c)(8), in the event that a sugarcane processor is sold or otherwise transferred to another owner, or closed as part of an affiliated corporate group processing consolidation, the Secretary shall transfer the allotment allocation for the processor to the purchaser, new owner, or successor in interest, as applicable, of the processor.’; and

      (2) in subsection (a)(2)(B)--

        (A) by striking ‘interested parties’ and inserting ‘the affected sugar beet processors and growers’; and

        (B) by striking ‘processing capacity’ through ‘allotment allocated’ and inserting the following: ‘the marketings of sugar processed from sugar beets of any or all of the 1996 through 2000 crops, and such other factors as the Secretary may deem appropriate after consultation with the affected sugar beet processors and growers. However, in the case of any processor which has started processing sugar beets after January 1, 1996, the Secretary shall provide such processor with an allocation which provides a fair, efficient and equitable distribution of the allocations.’.

    (e) REASSIGNMENT- Section 359e(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is amended--

      (1) in paragraph (1)--

        (A) in subparagraph (B) by striking the ‘and’ after the semicolon;

        (B) by redesignating subparagraph (C) as subparagraph (D);

        (C) by inserting after subparagraph (B) the following new subparagraph:

        ‘(C) if after the reassignments, the deficit cannot be completely eliminated, the Secretary shall reassign the estimated quantity of the deficit to the sale of any inventories of sugar held by the Commodity Credit Corporation; and’; and

        (D) in subparagraph (D), as so redesignated, by inserting ‘and sales’ after ‘reassignments’; and

      (2) in paragraph (2)--

        (A) in subparagraph (A) by striking the ‘and’ after the semicolon;

        (B) in subparagraph (B), by striking ‘reassign the remainder to imports.’ and inserting ‘use the estimated quantity of the deficit for the sale of any inventories of sugar held by the Commodity Credit Corporation; and’; and

        (C) by inserting after subparagraph (B) the following new subparagraph:

        ‘(C) if after such reassignments and sales, the deficit cannot be completely eliminated, the Secretary shall reassign the remainder to imports.’.

    (f) PRODUCER PROVISIONS- Section 359f of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff) is amended--

      (1) in subsection (a)--

        (A) by striking ‘processor’s allocation’ in the second sentence and inserting ‘allocation to the processor’; and

        (B) by inserting after ‘request of either party’ the following: ‘, and such arbitration should be completed within 45 days, but not more than 60 days, of the request’;

      (2) by redesignating subsection (b) as subsection (c);

      (3) by inserting after subsection (a) the following new subsection:

    ‘(b) SUGAR BEET PROCESSING FACILITY CLOSURES- In the event that a sugar beet processing facility is closed and the sugar beet growers who previously delivered beets to such facility desire to deliver their beets to another processing company:

      ‘(1) Such growers may petition the Secretary to modify existing allocations to accommodate such a transition; and

      ‘(2) The Secretary may increase the allocation to the processing company to which the growers desire to deliver their sugar beets, and which the processing company agrees to accept, not to exceed its processing capacity, to accommodate the change in deliveries.

      ‘(3) Such increased allocation shall be deducted from the allocation to the company that owned the processing facility that has been closed and the remaining allocation will be unaffected.

      ‘(4) The Secretary’s determination on the issues raised by the petition shall be made within 60 days of the filing of the petition.’;

      (4) in subsection (c), as so redesignated--

        (A) in paragraph (3)(A), by striking ‘the preceding five years’ and inserting ‘the two highest years from among the years 1999, 2000, and 2001’;

        (B) in paragraph (4), subparagraph (A), by striking ‘each’ through ‘in effect’ and inserting ‘the two highest of the three (3) crop years 1999, 2000, and 2001’; and

        (C) by inserting after paragraph (7) the following new paragraph:

      ‘(8) PROCESSING FACILITY CLOSURES- In the event that a sugarcane processing facility subject to this subsection is closed and the sugarcane growers who previously delivered sugarcane to such facility desire to deliver their sugarcane to another processing company--

        ‘(A) such growers may petition the Secretary to modify existing allocations to accommodate such a transition;

        ‘(B) the Secretary may increase the allocation to the processing company to which the growers desire to deliver the sugarcane, and which the processing company agrees to accept, not to exceed its processing capacity, to accommodate the change in deliveries;

        ‘(C) such increased allocation shall be deducted from the allocation to the company that owned the processing facility that has been closed and the remaining allocation will be unaffected; and

        ‘(D) the Secretary’s determination on the issues raised by the petition shall be made within 60 days of the filing of the petition.’.

    (g) CONFORMING AMENDMENTS- (1) The heading of part VII of subtitle B of Title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 359aa et seq.) is amended to read as follows:

‘PART VII--FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR’.

    (2) Section 359g of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359gg) is amended--

      (A) by striking ‘359f’ each place it appears and inserting ‘359f(c);

      (B) in subsection (b), by striking ‘3 consecutive’ and inserting ‘5 consecutive’; and

      (C) in subsection (c), by inserting ‘or adjusted’ after ‘share established’.

    (3) Section 359j(c) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359jj) is amended--

      (2) by amending the heading to read ‘DEFINITIONS- ’;

        (B) by striking ‘Notwithstanding’ and inserting the following:

      ‘(1) UNITED STATES AND STATE- Notwithstanding’; and

        (C) by inserting after such paragraph (1) the following new paragraph:

      ‘(2) OFFSHORE STATES- For purposes of this part, the term ‘offshore States’ means the sugarcane producing States located outside of the continental United States.’.

    (h) LIFTING OF SUSPENSION- Section 171(a)(1)(E) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7301(a)(1)(E)) is amended by inserting before the period at the end the following: ‘, but only with respect to sugar marketings through fiscal year 2002’.

SEC. 153. STORAGE FACILITY LOANS.

    (a) STORAGE FACILITY LOAN PROGRAM- Notwithstanding any other provision of law and as soon as practicable after the date of enactment of this section, the Commodity Credit Corporation shall amend part 1436 of title 7, Code of Federal Regulations, to establish a sugar storage facility loan program to provide financing for processors of domestically-produced sugarcane and sugar beets to build or upgrade storage and handling facilities for raw sugars and refined sugars.

    (b) ELIGIBLE PROCESSORS- Storage facility loans shall be made available to any processor of domestically produced sugarcane or sugar beets that has a satisfactory credit history, determines a need for increased storage capacity (taking into account the effects of marketing allotments), and demonstrates an ability to repay the loan.

    (c) TERM OF LOANS- Storage facility loans shall be for a minimum of seven years, and shall be in such amounts and on such terms and conditions (including down payment, security requirements, and eligible equipment) as are normal, customary, and appropriate for the size and commercial nature of the borrower.

    (d) ADMINISTRATION- The sugar storage facility loan program shall be administered using the services, facilities, funds, and authorities of the Commodity Credit Corporation.

CHAPTER 3--PEANUTS

SEC. 161. DEFINITIONS.

    In this chapter:

      (1) COUNTER-CYCLICAL PAYMENT- The term ‘counter-cyclical payment’ means a payment made to producers under section 164.

      (2) EFFECTIVE PRICE- The term ‘effective price’ means the price calculated by the Secretary under section 164 for peanuts to determine whether counter-cyclical payments are required to be made under such section for a crop year.

      (3) ELIGIBLE PEANUT PRODUCER- The term ‘eligible producer’ means a producer on a farm in the United States that produced or attempted to produce peanuts during any or all of crop years 1998, 1999, 2000, and 2001.

      (4) FIXED, DECOUPLED PAYMENT- The term ‘fixed, decoupled payment’ means a payment made to producers under section 163.

      (5) PAYMENT ACRES- The term ‘payment acres’ means 85 percent of the peanut acres on a farm, as established under section 162, upon which fixed, decoupled payments and counter-cyclical payments are to be made.

      (6) PEANUT ACRES- The term ‘peanut acres’ means the number of acres planted and prevented from being planted to peanuts for harvest on the farm over a certain number of crop years, as established under section 162.

      (7) PAYMENT YIELD- The term ‘payment yield’ means the yield established under section 162 for a farm for peanuts.

      (8) PRODUCER- The term ‘producer’ means an owner, operator, landlord, tenant, or sharecropper who shares in the risk of producing a crop of peanuts and who is entitled to share in the crop available for marketing from the farm, or would have shared had the crop been produced.

      (9) SECRETARY- The term ‘Secretary’ means the Secretary of Agriculture.

      (10) STATE- The term ‘State’ means each of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any other territory or possession of the United States.

      (11) TARGET PRICE- The term ‘target price’ means the price per ton of peanuts used to determine the payment rate for counter-cyclical payments.

      (12) UNITED STATES- The term ‘United States’, when used in a geographical sense, means all of the States.

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

    (a) ESTABLISHMENT OF PAYMENT YIELD-

      (1) ESTABLISHMENT AND PURPOSE- For the purpose of making fixed decoupled payments and counter-cyclical payments to eligible peanut producers under this chapter, the Secretary shall provide for the establishment of a payment yield for each peanut farm in accordance with this subsection.

      (2) AVERAGE YIELD- The Secretary shall establish a payment yield for peanuts on a farm by first determining the average yield for peanuts on the farm for the 1998 through 2001 crop years, excluding any crop year in which the yield was zero. If, for any of these four crop years in which peanuts were planted, the farm would have satisfied the eligibility criteria established to carry out section 1102 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999 (7 U.S.C. 1421 note; Public Law 105-277), the Secretary shall assign a yield for that year equal to 65 percent of the county yield, as determined by the Secretary.

    (b) PEANUTS ACRES- The peanut acres for a farm shall be equal to the four-year average of acreage actually planted on the farm in peanuts for harvest during crop years 1998, 1999, 2000, and 2001 and any acreage on the farm that the producers were prevented from planting to peanuts during such crop years because of drought, flood, or other natural disaster, or other condition beyond the control of the producer, as determined by the Secretary.

    (c) PAYMENTS ACRES- The payment acres for peanuts on a farm shall be equal to 85 percent of the peanut acres for the farm.

    (d) PREVENTION OF EXCESS PAYMENT ACRES-

      (1) REQUIRED REDUCTION- If the sum of the peanut acres for a farm, together with the acreage described in paragraph (2), exceeds the actual cropland acreage of the farm, the Secretary shall make such reductions in the quantity of peanut acres for the farm as may be necessary so that the sum of the peanut acres and acreage described in paragraph (2) does not exceed the actual cropland acreage of the farm.

      (2) OTHER ACREAGE- For purposes of paragraph (1), the Secretary shall include the following:

        (A) Any base acres for the farm under subtitle A.

        (B) Any acreage on the farm enrolled in the conservation reserve program or wetlands reserve program under chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.).

        (C) Any other acreage on the farm enrolled in a conservation program for which payments are made in exchange for not producing an agricultural commodity on the acreage.

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

    (a) PAYMENT REQUIRED- For each of the 2002 through 2011 crop years, the Secretary shall make fixed, decoupled payments to eligible peanut producers on a farm.

    (b) PAYMENT RATE- The payment rate used to make fixed, decoupled payments with respect to peanuts for a crop year shall be equal to $36 per ton.

    (c) PAYMENT AMOUNT- The amount of the fixed, decoupled payment to be paid to the eligible peanut producers on a farm for a covered commodity for a crop year shall be equal to the product of the following:

      (1) The payment rate specified in subsection (b).

      (2) The payment acres on the farm.

      (3) The payment yield for the farm.

    (d) TIME FOR PAYMENT-

      (1) GENERAL RULE- Fixed, decoupled payments shall be paid not later than September 30 of each of fiscal years 2002 through 2011. In the case of the 2002 crop, payments may begin to be made on or after December 1, 2001.

      (2) ADVANCE PAYMENTS- At the option of an eligible peanut producer, 50 percent of the fixed, decoupled payment for a fiscal year shall be paid on a date selected by the producer. The selected date shall be on or after December 1 of that fiscal year, and the producer may change the selected date for a subsequent fiscal year by providing advance notice to the Secretary.

      (3) REPAYMENT OF ADVANCE PAYMENTS- If a producer that receives an advance fixed, decoupled payment for a fiscal year ceases to be an eligible peanut producer before the date the fixed, decoupled payment would otherwise have been made by the Secretary under paragraph (1), the producer shall be responsible for repaying the Secretary the full amount of the advance payment.

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

    (a) PAYMENT REQUIRED- During the 2002 through 2011 crop years for peanuts, the Secretary shall make counter-cyclical payments with respect to peanuts whenever the Secretary determines that the effective price for peanuts is less than the target price.

    (b) EFFECTIVE PRICE- For purposes of subsection (a), the effective price for peanuts is equal to the sum of the following:

      (1) The higher of the following:

        (A) The national average market price received by producers during the 12-month marketing year for peanuts, as determined by the Secretary.

        (B) The national average loan rate for a marketing assistance loan for peanuts in effect for the same period under this chapter.

      (2) The payment rate in effect under section 163 for the purpose of making fixed, decoupled payments.

    (c) TARGET PRICE- For purposes of subsection (a), the target price for peanuts shall be equal to $480 per ton.

    (d) PAYMENT RATE- The payment rate used to make counter-cyclical payments for a crop year shall be equal to the difference between--

      (1) the target price; and

      (2) the effective price determined under subsection (b).

    (e) PAYMENT AMOUNT- The amount of the counter-cyclical payment to be paid to the eligible peanut producers on a farm for a crop year shall be equal to the product of the following:

      (1) The payment rate specified in subsection (d).

      (2) The payment acres on the farm.

      (3) The payment yield for the farm.

    (f) TIME FOR PAYMENTS-

      (1) GENERAL RULE- The Secretary shall make counter-cyclical payments under this section for a peanut crop as soon as possible after determining under subsection (a) that such payments are required for that crop year.

      (2) PARTIAL PAYMENT- The Secretary may permit, and, if so permitted, an eligible peanut producer may elect to receive, up to 50 percent of the projected counter-cyclical payment, as determined by the Secretary, to be made under this section for a peanut crop upon completion of the first six months of the marketing year for that crop. The producer shall repay to the Secretary the amount, if any, by which the partial payment exceeds the actual counter-cyclical payment to be made for that crop.

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

    (a) COMPLIANCE WITH CERTAIN REQUIREMENTS-

      (1) REQUIREMENTS- Before the producers on a farm may receive fixed, decoupled payments or counter-cyclical payments with respect to the farm, the producers shall agree, in exchange for the payments--

        (A) to comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);

        (B) to comply with applicable wetland protection requirements under subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.);

        (C) to comply with the planting flexibility requirements of section 166; and

        (D) to use the land on the farm, in an amount equal to the peanut acres, for an agricultural or conserving use, and not for a nonagricultural commercial or industrial use, as determined by the Secretary.

      (2) COMPLIANCE- The Secretary may issue such rules as the Secretary considers necessary to ensure producer compliance with the requirements of paragraph (1).

    (b) EFFECT OF FORECLOSURE- A producer may not be required to make repayments to the Secretary of fixed, decoupled payments and counter-cyclical payments if the farm has been foreclosed on and the Secretary determines that forgiving the repayments is appropriate to provide fair and equitable treatment. This subsection shall not void the responsibilities of the producer under subsection (a) if the producer continues or resumes operation, or control, of the farm. On the resumption of operation or control over the farm by the producer, the requirements of subsection (a) in effect on the date of the foreclosure shall apply.

    (c) TRANSFER OR CHANGE OF INTEREST IN FARM-

      (1) TERMINATION- Except as provided in paragraph (4), a transfer of (or change in) the interest of a producer in peanut acres for which fixed, decoupled payments or counter-cyclical payments are made shall result in the termination of the payments with respect to the peanut acres, unless the transferee or owner of the acreage agrees to assume all obligations under subsection (a). The termination shall be effective on the date of the transfer or change.

      (2) TRANSFER OF PAYMENT BASE- There is no restriction on the transfer of a farm’s peanut acres or payment yield as part of a change in the producers on the farm.

      (3) MODIFICATION- At the request of the transferee or owner, the Secretary may modify the requirements of subsection (a) if the modifications are consistent with the objectives of such subsection, as determined by the Secretary.

      (4) EXCEPTION- If a producer entitled to a fixed, decoupled payment or counter-cyclical payment dies, becomes incompetent, or is otherwise unable to receive the payment, the Secretary shall make the payment, in accordance with regulations prescribed by the Secretary.

    (d) ACREAGE REPORTS- As a condition on the receipt of any benefits under this chapter, the Secretary shall require producers to submit to the Secretary acreage reports.

    (e) TENANTS AND SHARECROPPERS- In carrying out this chapter, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.

    (f) SHARING OF PAYMENTS- The Secretary shall provide for the sharing of fixed, decoupled payments and counter-cyclical payments among the eligible peanut producers on a farm on a fair and equitable basis.

SEC. 166. PLANTING FLEXIBILITY.

    (a) PERMITTED CROPS- Subject to subsection (b), any commodity or crop may be planted on peanut acres on a farm.

    (b) LIMITATIONS AND EXCEPTIONS REGARDING FRUITS AND VEGETABLES-

      (1) LIMITATIONS- The planting of fruits and vegetables (other than lentils, mung beans, and dry peas) shall be prohibited on peanut acres.

      (2) EXCEPTIONS- Paragraph (1) shall not limit the planting of a fruit or vegetable--

        (A) in any region in which there is a history of double-cropping of peanuts with fruits or vegetables, as determined by the Secretary, in which case the double-cropping shall be permitted;

        (B) on a farm that the Secretary determines has a history of planting fruits or vegetables on peanut acres, except that fixed, decoupled payments and counter-cyclical payments shall be reduced by an acre for each acre planted to the fruit or vegetable; or

        (C) by a producer who the Secretary determines has an established planting history of a specific fruit or vegetable, except that--

          (i) the quantity planted may not exceed the producer’s average annual planting history of the fruit or vegetable in the 1991 through 1995 crop years (excluding any crop year in which no plantings were made), as determined by the Secretary; and

          (ii) fixed, decoupled payments and counter-cyclical payments shall be reduced by an acre for each acre planted to the fruit or vegetable.

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

    (a) NONRECOURSE LOANS AVAILABLE-

      (1) AVAILABILITY- For each of the 2002 through 2011 crops of peanuts, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for peanuts produced on the farm. The loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under subsection (b).

      (2) ELIGIBLE PRODUCTION- Any production of peanuts on a farm shall be eligible for a marketing assistance loan under this subsection.

      (3) TREATMENT OF CERTAIN COMMINGLED COMMODITIES- In carrying out this subsection, the Secretary shall make loans to a producer that is otherwise eligible to obtain a marketing assistance loan, but for the fact the peanuts owned by the producer are commingled with other peanuts in facilities unlicensed for the storage of agricultural commodities by the Secretary or a State licensing authority, if the producer obtaining the loan agrees to immediately redeem the loan collateral in accordance with section 166 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7286).

      (4) OPTIONS FOR OBTAINING LOAN- A marketing assistance loan under this subsection, and loan deficiency payments under subsection (e), may be obtained at the option of the producer through--

        (A) a designated marketing association of peanut producers that is approved by the Secretary;

        (B) a loan servicing agent approved by the Secretary; or

        (C) the Farm Service Agency.

      (5) LOAN SERVICING AGENT- As a condition of the Secretary’s approval of an entity to serve as a loan servicing agent or to handle or store peanuts for producers that receive any marketing loan benefits, the entity shall agree to provide adequate storage (if available) and handling of peanuts at the commercial rate to other approved loan servicing agents and marketing associations.

    (b) LOAN RATE- The loan rate for a marketing assistance loan under for peanuts subsection (a) shall be equal to $350 per ton.

    (c) TERM OF LOAN-

      (1) IN GENERAL- A marketing assistance loan for peanuts under subsection (a) shall have a term of nine months beginning on the first day of the first month after the month in which the loan is made.

      (2) EXTENSIONS PROHIBITED- The Secretary may not extend the term of a marketing assistance loan under subsection (a).

    (d) REPAYMENT RATE- The Secretary shall permit producers to repay a marketing assistance loan for peanuts under subsection (a) at a rate that is the lesser of--

      (1) the loan rate established for the commodity under subsection (b), plus interest (as determined by the Secretary); or

      (2) a rate that the Secretary determines will--

        (A) minimize potential loan forfeitures;

        (B) minimize the accumulation of stocks of peanuts by the Federal Government;

        (C) minimize the cost incurred by the Federal Government in storing peanuts; and

        (D) allow peanuts produced in the United States to be marketed freely and competitively, both domestically and internationally.

    (e) LOAN DEFICIENCY PAYMENTS-

      (1) AVAILABILITY- The Secretary may make loan deficiency payments available to producers who, although eligible to obtain a marketing assistance loan for peanuts under subsection (a), agree to forgo obtaining the loan for the peanuts in return for payments under this subsection.

      (2) COMPUTATION- A loan deficiency payment under this subsection shall be computed by multiplying--

        (A) the loan payment rate determined under paragraph (3) for peanuts; by

        (B) the quantity of the peanuts produced by the eligible producers, excluding any quantity for which the producers obtain a loan under subsection (a).

      (3) LOAN PAYMENT RATE- For purposes of this subsection, the loan payment rate shall be the amount by which--

        (A) the loan rate established under subsection (b); exceeds

        (B) the rate at which a loan may be repaid under subsection (d).

      (4) TIME FOR PAYMENT- The Secretary shall make a payment under this subsection to a producer with respect to a quantity of peanuts as of the earlier of the following:

        (A) The date on which the producer marketed or otherwise lost beneficial interest in the peanuts, as determined by the Secretary.

        (B) The date the producer requests the payment.

    (f) COMPLIANCE WITH CONSERVATION AND WETLANDS REQUIREMENTS- As a condition of the receipt of a marketing assistance loan under subsection (a), the producer shall comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection requirements under subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.) during the term of the loan.

    (g) REIMBURSABLE AGREEMENTS AND PAYMENT OF EXPENSES- To the extent practicable, the Secretary shall implement any reimbursable agreements or provide for the payment of expenses under this chapter in a manner that is consistent with such activities in regard to other commodities.

    (h) TERMINATION OF SUPERSEDED PRICE SUPPORT AUTHORITY-

      (1) REPEAL- Section 155 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7271) is repealed.

      (2) CONFORMING AMENDMENTS- The Agricultural Act of 1949 (7 U.S.C. 1441 et seq.) is amended--

        (A) in section 101(b) (7 U.S.C. 1441(b)), by striking ‘and peanuts’; and

        (B) in section 408(c) (7 U.S.C. 1428(c)), by striking ‘peanuts,’.

SEC. 168. QUALITY IMPROVEMENT.

    (a) OFFICIAL INSPECTION-

      (1) MANDATORY INSPECTION- All peanuts placed under a marketing assistance loan under section 167 shall be officially inspected and graded by Federal or State inspectors.

      (2) OPTIONAL INSPECTION- Peanuts not placed under a marketing assistance loan may be graded at the option of the producer.

    (b) TERMINATION OF PEANUT ADMINISTRATIVE COMMITTEE- The Peanut Administrative Committee established under Marketing Agreement No. 1436, which regulates the quality of domestically produced peanuts under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is terminated.

    (c) ESTABLISHMENT OF PEANUT STANDARDS BOARD- The Secretary shall establish a Peanut Standards Board for the purpose of assisting in the establishment of quality standards with respect to peanuts. The authority of the Board is limited to assisting in the establishment of quality standards for peanuts. The members of the Board should fairly reflect all segments of the peanut industry.

    (d) EFFECTIVE DATE- This section shall take effect with the 2002 crop of peanuts.

SEC. 169. PAYMENT LIMITATIONS.

    For purposes of sections 1001 through 1001C of the Food Security Act of 1985 (7 U.S.C. 1308 through 1308-3), separate payment limitations shall apply to peanuts with respect to--

      (1) fixed, decoupled payments;

      (2) counter-cyclical payments; and

      (3) limitations on marketing loan gains and loan deficiency payments.

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

    (a) REPEAL OF MARKETING QUOTA- Part VI of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1357-1359a), relating to peanuts, is repealed.

    (b) COMPENSATION REQUIRED- During fiscal years 2002 through 2006, the Secretary shall make payments under this section to eligible peanut quota holders to compensate them for the lost value of the quota on account of the repeal of the marketing quota program for peanuts under subsection (a).

    (c) TIME FOR PAYMENT- The payments required by this section shall be provided in five equal installments not later than September 30 of each of fiscal years 2002 through 2006.

    (d) PAYMENT AMOUNT- The amount of the payment for a fiscal year to a peanut quota holder under this section shall be equal to the product obtained by multiplying--

      (1) $0.10 per pound; by

      (2) the actual farm poundage quota (excluding seed and experimental peanuts) established for the peanut quota holder’s farm under section 358-1(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(b)) for the 2001 marketing year.

    (e) ASSIGNMENT OF PAYMENTS- The provisions of section 8(g) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating to assignment of payments, shall apply to the payments made to peanut quota holders under this section. The peanut quota holder making the assignment, or the assignee, shall provide the Secretary with notice, in such manner as the Secretary may require, of any assignment made under this subsection.

    (f) PEANUT QUOTA HOLDER DEFINED- In this section, the term ‘peanut quota holder’ means a person or enterprise that owns a farm that--

      (1) was eligible, immediately before the date of the enactment of this Act, to have a peanut quota established upon it;

      (2) if there are not quotas currently established, would be eligible to have a quota established upon it for the succeeding crop year, in the absence of the amendment made by subsection (a); or

      (3) is otherwise a farm that was eligible for such a quota at the time the general quota establishment authority was repealed.

    The Secretary shall apply this definition without regard to temporary leases or transfers or quotas for seed or experimental purposes.

Subtitle D--Administration

SEC. 181. ADMINISTRATION GENERALLY.

    (a) USE OF COMMODITY CREDIT CORPORATION- The Secretary shall carry out this title through the Commodity Credit Corporation.

    (b) DETERMINATIONS BY SECRETARY- A determination made by the Secretary under this title shall be final and conclusive.

    (c) REGULATIONS- Not later than 90 days after the date of the enactment of this Act, the Secretary and the Commodity Credit Corporation, as appropriate, shall issue such regulations as are necessary to implement this title. The issuance of the regulations shall be made without regard to--

      (1) the notice and comment provisions of section 553 of title 5, United States Code;

      (2) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804) relating to notices of proposed rulemaking and public participation in rulemaking; and

      (3) chapter 35 of title 44, United States Code (commonly know as the ‘Paperwork Reduction Act’).

    (d) PROTECTION OF PRODUCERS- The protection afforded producers that elect the option to accelerate the receipt of any payment under a production flexibility contract payable under the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7212 note) shall also apply to the advance payment of fixed, decoupled payments and counter-cyclical payments.

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

    (a) AGRICULTURAL ADJUSTMENT ACT OF 1938- Section 171(a)(1) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7301(a)(1)) is amended by striking ‘2002’ both places it appears and inserting ‘2011’.

    (b) AGRICULTURAL ACT OF 1949- Section 171(b)(1) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7301(b)(1)) is amended by striking ‘2002’ both places it appears and inserting ‘2011’.

    (c) SUSPENSION OF CERTAIN QUOTA PROVISIONS- Section 171(c) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7301(c)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 183. LIMITATIONS.

    (a) LIMITATION ON AMOUNTS RECEIVED- Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended--

      (1) in paragraph (1)--

        (A) by striking ‘PAYMENTS UNDER PRODUCTION FLEXIBILITY CONTRACTS’ and inserting ‘FIXED, DECOUPLED PAYMENTS’;

        (B) by striking ‘contract payments made under the Agricultural Market Transition Act to a person under 1 or more production flexibility contracts’ and inserting ‘fixed, decoupled payments made to a person’;

        (C) by striking ‘4’ and inserting ‘5’;

      (2) in paragraphs (2) and (3)--

        (A) by striking ‘payments specified’ and all that follows through ‘and oilseeds’ and inserting ‘following payments that a person shall be entitled to receive’;

        (B) by striking the period at the end of paragraph (2) and all that follows through ‘the following’ in paragraph (3);

        (C) by striking ‘section 131’ and all that follows through ‘section 132’ and inserting ‘section 121 of the Agricultural Act of 2001 for a crop of any covered commodity at a lower level than the original loan rate established for the commodity under section 122’; and

        (D) by striking ‘section 135’ and inserting ‘section 125’; and

      (3) by inserting after paragraph (2) the following new paragraph (3):

      ‘(3) LIMITATION ON COUNTER-CYCLICAL PAYMENTS- The amount specified in paragraph (2) is the limit on the total amount of counter-cyclical payments that a person may receive during any crop year.’.

    (b) DEFINITIONS- Paragraph (4) of section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended to read as follows:

      ‘(4) DEFINITIONS- In this title, the terms ‘covered commodity’, ‘counter-cyclical payment’, and ‘fixed, decoupled payment’ have the meaning given those terms in section 100 of the Agricultural Act of 2001.’.

    (c) TRANSITION- Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308), as in effect on the day before the date of the enactment of this Act, shall continue to apply with respect to fiscal year 2001 and the 2001 crop of any covered commodity.

SEC. 184. ADJUSTMENTS OF LOANS.

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

SEC. 185. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

    Section 164 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7284) is amended by striking ‘this title’ both places it appears and inserting ‘this title and title I of the Agricultural Act of 2001’.

SEC. 186. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY REGARDING LOANS.

    Section 166 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7286) is amended by striking ‘subtitle C’ both places it appears and inserting ‘subtitle C of this title and title I of the Agricultural Act of 2001’.

SEC. 187. ASSIGNMENT OF PAYMENTS.

    The provisions of section 8(g) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating to assignment of payments, shall apply to payments

made under the authority of this Act. The producer making the assignment, or the assignee, shall provide the Secretary with notice, in such manner as the Secretary may require, of any assignment made under this section.

TITLE II--CONSERVATION

Subtitle A--Definition

SEC. 201. DEFINITION OF AGRICULTURAL COMMODITY.

    Section 1201(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3801(a)(1)) is amended to read as follows:

    ‘(1) AGRICULTURAL COMMODITY- The term ‘agricultural commodity’ means any agricultural commodity planted or produced in a State.’.

Subtitle B--Wetland Conservation Program

SEC. 211. INELIGIBILITY FOR CERTAIN LOANS AND PAYMENTS.

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

Subtitle C--Environmental Conservation Acreage Reserve Program

SEC. 221. ELIMINATION OF GENERAL PROVISIONS.

    Chapter 1 of subtitle D of title XII of the Food Security Act of 1985 is amended--

      (1) by striking the heading for subchapter A;

      (2) by striking section 1230 (16 U.S.C. 3830);

      (3) in section 1230A (16 U.S.C. 3830a), by striking ‘chapter’ each place it appears and inserting ‘title’;

      (4) by redesignating section 1230A as section 1244; and

      (5) by transferring section 1244 (as so redesignated) to the end of subtitle E.

Subtitle D--Conservation Reserve Program

SEC. 231. REAUTHORIZATION.

    Section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended in each of subsections (a), (b)(3), and (d), by striking ‘2002’ and inserting ‘2011’.

SEC. 232. ENROLLMENT.

    (a) ELIGIBILITY- Section 1231(b) of the Food Security Act of 1985 (16 U.S.C. 3831(b)) is amended--

      (1) by striking paragraphs (2) and (3) and inserting the following:

      ‘(2) marginal pasturelands devoted to natural vegetation in or near riparian areas or for similar water quality purposes;’;

      (2) in paragraph (4)--

        (A) by striking subparagraph (A) and inserting the following:

        ‘(A) if the Secretary determines that--

          ‘(i) the lands contribute to the degradation of soil, water, or air quality, or would pose an on-site or off-site environmental threat to soil, water, or air quality if permitted to remain in agricultural production; and

          ‘(ii) soil, water, and air quality objectives with respect to the land cannot be achieved under the environmental quality incentives program established under chapter 4;’;

        (B) by striking ‘or’ at the end of subparagraph (C);

        (C) by striking the period at the end of subparagraph (D) and inserting ‘; or’; and

        (D) by adding at the end the following:

        ‘(E) if the Secretary determines that enrollment of such lands would contribute to conservation of ground or surface water.’; and

      (3) by redesignating paragraph (4) as paragraph (3).

    (b) INCREASE IN MAXIMUM ENROLLMENT- Section 1231(d) of such Act (16 U.S.C. 3831(d)) is amended by striking ‘36,400,000’ and inserting ‘40,000,000’.

    (c) ELIGIBILITY ON CONTRACT EXPIRATION- Section 1231(f) of such Act (16 U.S.C. 3831(f)) is amended to read as follows:

    ‘(f) ELIGIBILITY ON CONTRACT EXPIRATION- On the expiration of a contract entered into under this subchapter, the land subject to the contract shall be eligible to be re-enrolled in the conservation reserve.’.

    (d) BALANCE AMONG CONTRACTS AWARDED-

      (1) IN GENERAL- Section 1231 of such Act (16 U.S.C. 3831) is amended by adding at the end the following:

    ‘(i) BALANCE AMONG CONTRACTS AWARDED- In determining the acceptability of contract offers under this subchapter, the Secretary shall balance conservation interests in soil erosion, water quality, and wildlife habitat.’.

      (2) REGULATIONS- Not later than 180 days after the date of the enactment of this Act, the Secretary of Agriculture shall issue final regulations implementing section 1231(i) of the Food Security Act of 1985, as added by paragraph (1) of this subsection.

SEC. 233. DUTIES OF OWNERS AND OPERATORS.

    Section 1232 of the Food Security Act of 1985 (16 U.S.C. 3832) is amended--

      (1) in subsection (a)--

        (A) in paragraph (3), by inserting ‘as described in section 1232(a)(7) or for other purposes’ before ‘as permitted’;

        (B) in paragraph (4), by inserting ‘where practicable, or maintain existing cover’ before ‘on such land’; and

        (C) in paragraph (7), by striking ‘Secretary--’ and all that follows and inserting ‘Secretary may permit--

        ‘(A) managed grazing and limited haying, in which case the Secretary shall reduce the rental payment otherwise payable under the contract by an amount commensurate with the economic value of the activity;

        ‘(B) wind turbines for the provision of wind energy, whether or not commercial in nature; and

        ‘(C) land subject to the contract to be harvested for recovery of biomass used in energy production, in which case the Secretary shall reduce the rental payment otherwise payable under the contract by an amount commensurate with the economic value of such activity;’; and

      (2) by striking subsections (c) and (d) and redesignating subsection (e) as subsection (c).

SEC. 234. DUTIES OF THE SECRETARY.

    Section 1233 of the Food Security Act of 1985 (16 U.S.C. 3833) is amended--

      (1) in paragraph (1), by adding ‘and’ at the end;

      (2) in paragraph (2), by striking ‘; and’ and inserting a period; and

      (3) striking paragraph (3).

SEC. 235. ACCEPTANCE OF CONTRACT OFFERS.

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

SEC. 236. CONTRACTS.

    (a) IN GENERAL- Section 1235 of the Food Security Act of 1985 (16 U.S.C. 3835) is amended--

      (1) in subsection (a)(1)--

        (A) in subparagraph (A), by adding ‘or’ at the end;

        (B) by striking subparagraphs (B) and (C); and

        (C) by redesignating subparagraph (D) and subparagraph (B).

      (2) by adding at the end the following:

    ‘(f) RESTORATION OF BASE- On the expiration of a contract entered into under this subchapter, the Secretary shall restore the base, contract acreage, quota, or allotment history applicable to the land when the contract was entered into.’.

    (b) CONSERVATION RESERVE PAYMENT- Subchapter B of chapter 1 of subtitle D of title XII of such Act (16 U.S.C. 3831-3836) is amended by striking ‘rental payment’ each place it appears and inserting ‘conservation reserve payment’.

Subtitle E--Wetlands Reserve Program

SEC. 241. ENROLLMENT.

    (a) MAXIMUM- Section 1237(b) of the Food Security Act of 1985 (16 U.S.C. 3837(b)) is amended by striking paragraph (1) and inserting the following:

      ‘(1) ANNUAL ENROLLMENT- In addition to any acres enrolled in the wetlands reserve program as of the end of a calendar year, the Secretary may in the succeeding calendar year enroll in the program a number of additional acres equal to--

        ‘(A) if the succeeding calendar year is calendar year 2002, 150,000;

        ‘(B) if the succeeding calendar year is a calendar year after calendar year 2002--

          ‘(i) 150,000; plus

          ‘(ii) the amount (if any) by which 150,000, multiplied by the number of calendar years in the period that begins with calendar year 2002 and ends with the calendar year preceding such succeeding calendar year, exceeds the total number of acres added to the reserve during the period.’.

    (b) METHODS- Section 1237(b)(2) of such Act (16 U.S.C. 3837(b)(2)) is amended to read as follows:

      ‘(2) METHODS OF ENROLLMENT- The Secretary shall enroll acreage into the wetlands reserve program through the use of easements, restoration cost share agreements, or both.’.

    (c) ELIGIBILITY- Section 1237 of such Act (16 U.S.C. 3837) is amended by striking subsections (c), (d), and (e) and inserting the following:

    ‘(c) PRIORITY- For purposes of enrolling acreage in the wetlands reserve program, the Secretary shall give priority to land that maximizes wetland functions and values.

    ‘(d) INELIGIBLE LAND- The Secretary may not acquire an easement under this chapter on land which is--

      ‘(1) enrolled in the conservation reserve program established under subchapter B; or

      ‘(2) subject to a contract under the environmental quality incentives program established by chapter 4.’.

    (d) CONFORMING AMENDMENTS- Section 1237 of such Act (16 U.S.C. 3837) is amended--

      (1) by redesignating subsection (f) as subsection (e); and

      (2) by striking subsection (g).

SEC. 242. EASEMENTS AND AGREEMENTS.

    Section 1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) is amended--

      (1) in subsection (b), by striking paragraph (2) and inserting the following:

      ‘(2) prohibits the alteration of wildlife habitat and other natural features of such land, unless specifically permitted by the plan;’;

      (2) in subsection (e), by striking paragraph (2) and inserting the following:

      ‘(2) shall be consistent with applicable State law.’;

      (3) by striking subsections (c) and (h) and redesignating subsections (d) through (g) as subsections (c) through (f), respectively.

SEC. 243. DUTIES OF THE SECRETARY.

    Section 1237C of the Food Security Act of 1985 (16 U.S.C. 3837c) is amended--

      (1) in subsection (a)--

        (A) by striking ‘shall--’ and all that follows through ‘(1)’ and inserting ‘shall’; and

        (B) by striking ‘interest;’ and all that follows and inserting ‘interest.’; and

      (2) by striking subsection (d).

SEC. 244. PAYMENT LIMITATION.

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

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

    Section 1237E(a) of the Food Security Act of 1985 (16 U.S.C. 3837e(a)) is amended to read as follows:

    ‘(a) LIMITATIONS- No easement shall be created under this subchapter on land that has changed ownership in the preceding 12 months unless--

      ‘(1) the new ownership was acquired by will or succession as a result of the death of the previous owner; or

      ‘(2) the ownership change occurred due to foreclosure on the land and the owner of the land immediately before the foreclosure exercises a right of redemption from the mortgage holder in accordance with State law.’.

Subtitle F--Environmental Quality Incentives Program

SEC. 251. PURPOSES.

    Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is amended--

      (1) by striking ‘to--’ and all that follows through ‘provides--’ and inserting ‘provide--’;

      (2) by striking ‘that face the most serious threats to’ and inserting ‘to address environmental needs and provide benefits to air,’;

      (3) by redesignating the subparagraphs (A) through (D) that follow the matter amended by paragraph (2) of this section as paragraphs (1) through (4), respectively;

        (4) by moving each of such redesignated provisions 2 ems to the left; and

        (5) by striking ‘farmers and ranchers’ each place it appears and inserting ‘producers’.

SEC. 252. DEFINITIONS.

    Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1) is amended--

      (1) in paragraph (1)--

        (A) by inserting ‘non-industrial private forest land,’ before ‘and other land’; and

        (B) by striking ‘poses a serious threat’ and all that follows and inserting ‘provides increased environmental benefits to air, soil, water, or related resources.’;

      (2) in paragraph (4), by inserting ‘, including non-industrial private forestry’ before the period; and

      (3) in paragraph (5), by striking ‘permanent wildlife habitat,’.

SEC. 253. ESTABLISHMENT AND ADMINISTRATION.

    (a) REAUTHORIZATION- Section 1240B(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3839aa-2(a)(1)) is amended by striking ‘2002’ and inserting ‘2011’.

    (b) TERM OF CONTRACTS- Section 1240B(b)(2) of such Act (16 U.S.C. 3839aa-2(b)(2)) is amended by striking ‘not less than 5, nor more than 10, years’ and inserting ‘not less than 1 year, nor more than 10 years’.

    (c) STRUCTURAL PRACTICES- Section 1240B(c)(1)(B) of such Act (16 U.S.C. 3839aa-2(c)(1)(B)) is amended to read as follows:

        ‘(B) achieving the purposes established under this subtitle.’.

    (d) ELIMINATION OF CERTAIN LIMITATIONS ON ELIGIBILITY FOR COST-SHARE PAYMENTS- Section 1240B(e)(1) of such Act (16 U.S.C. 3839aa-2(e)(1)) is amended--

      (1) by striking subparagraph (B) and redesignating subparagraph (C) as subparagraph (B); and

      (2) in subparagraph (B) (as so redesignated), by striking ‘or 3’.

    (e) INCENTIVE PAYMENTS- Section 1240B of such Act (16 U.S.C. 3839aa-2) is amended--

      (1) in subsection (e)--

        (A) in the subsection heading, by striking ‘, INCENTIVE PAYMENTS,’; and

        (B) by striking paragraph (2); and

      (2) by redesignating subsection (f) as subsection (g) and inserting after subsection (e) the following:

    ‘(f) FARMLAND CONSERVATION INCENTIVE PAYMENTS-

      ‘(1) IN GENERAL- The Secretary may make incentive payments in an amount and at a rate determined by the Secretary to be necessary to encourage a producer to perform multiple land management practices and to promote the enhancement of soil, water, air, and related resources.

      ‘(2) SPECIAL RULE- In determining the amount and rate of incentive payments, the Secretary may accord great weight to those practices that include residue, nutrient, pest, invasive species, and air quality management.’.

SEC. 254. EVALUATION OF OFFERS AND PAYMENTS.

    Section 1240C of the Food Security Act of 1985 (16 U.S.C. 3839aa-3) is amended by striking paragraphs (1) through (3) and inserting the following:

      ‘(1) aid farmers and ranchers in complying with this title and Federal and State environmental laws, and encourage environmental enhancement and conservation; and

      ‘(2) maximize the beneficial usage of animal manure and other similar soil amendments which improve soil health, tilth, and water-holding capacity.’.

SEC. 255. DUTIES OF PRODUCERS.

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

SEC. 256. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

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

SEC. 257. DUTIES OF THE SECRETARY.

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

SEC. 258. LIMITATION ON PAYMENTS.

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

      (1) in subsection (a)--

        (A) in paragraph (1), by striking ‘$10,000’ and inserting ‘$50,000’; and

        (B) in paragraph (2), by striking ‘$50,000’ and inserting ‘$200,000’;

      (2) in subsection (b), by striking ‘the maximization of environmental benefits per dollar expended and’; and

      (3) by striking subsection (c).

SEC. 259. GROUNDWATER CONSERVATION.

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

‘SEC. 1240H. GROUNDWATER CONSERVATION.

    ‘The Secretary may use $67,500,000 of the funds of the Commodity Credit Corporation in each of fiscal years 2002 through 2011 to provide cost-share payments and low-interest loans to encourage groundwater conservation, including irrigation system improvement, and to provide incentive payments for capping wells, reducing use of water for irrigation, and switching from irrigation to dryland farming.’.

Subtitle G--Funding and Administration

SEC. 261. REAUTHORIZATION.

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

SEC. 262. FUNDING.

    Section 1241(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3841(b)(1)) is amended--

      (1) by striking ‘and’ the 1st place it appears;

      (2) by striking ‘$130,000,000’ and all that follows through ‘2002’ and inserting ‘$200,000,000 for fiscal year 2001, and $1,200,000,000 for each of fiscal years 2002 through 2011’.

SEC. 263. ALLOCATION FOR LIVESTOCK PRODUCTION.

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

SEC. 264. USE OF OTHER AGENCIES.

    Section 1242(a) of the Food Security Act of 1985 (16 U.S.C. 3842(a)) is amended to read as follows:

    ‘(a) PRINCIPAL AGENCY- The Secretary shall use the Farm Service Agency in carrying out subtitles B and C, and subchapter B of chapter 1, and chapters 2 and 4, of subtitle D.’.

SEC. 265. ADMINISTRATION AND TECHNICAL ASSISTANCE.

    (a) BROADENING OF EXCEPTION TO ACREAGE LIMITATION- Section 1243(b)(2) of the Food Security Act of 1985 (16 U.S.C. 3843(b)(2)) is amended by striking ‘that--’ and all that follows and inserting ‘that the action would not adversely affect the local economy of the county.’.

    (b) RULES GOVERNING PROVISION OF TECHNICAL ASSISTANCE- Section 1243(d) of the Food Security Act of 1985 (16 U.S.C. 3843(d)) is amended to read as follows:

    ‘(d) RULES GOVERNING PROVISION OF TECHNICAL ASSISTANCE-

      ‘(1) IN GENERAL- The Secretary shall provide technical assistance under this title to a producer eligible for such assistance, by providing the assistance directly or, at the option of the producer, through an approved third party if available.

      ‘(2) AMOUNT- The Secretary shall determine the amount of technical assistance to be provided to a producer under this title, and on making the determination, shall make the amount available to--

        ‘(A) if the producer has selected an approved third party to provide the assistance, such approved third party; or

        ‘(B) otherwise, the Natural Resources Conservation Service.

      ‘(3) FUNDING SOURCE; LIMITATION-

        ‘(A) USE OF CCC FUNDS- Subject to subparagraph (B), the Secretary may use not more than $100,000,000 of funds of the Commodity Credit Corporation for each of fiscal years 2002 through 2011 to carry out this subsection.

        ‘(B) LIMITATION- The total amount expended under this subsection for fiscal years 2002 through 2011 may not exceed $850,000,000.

      ‘(4) CERTIFICATION OF THIRD-PARTY PROVIDERS-

        ‘(A) IN GENERAL- Not later than 6 months after the date of the enactment of this Act, the Secretary of Agriculture shall, by regulation, establish a system for approving persons to provide technical assistance pursuant to this title. In the system, the Secretary shall give priority to a person who has a memorandum of understanding regarding the provision of technical assistance in place with the Secretary before the date of the enactment of this subsection.

        ‘(B) EXPERTISE REQUIRED- In prescribing such regulations, the Secretary shall ensure that persons with expertise in the technical aspects of conservation planning, watershed planning, environmental engineering, including commercial entities, nonprofit entities, State or local governments or agencies, and other Federal agencies, are eligible to become approved providers of such technical assistance.’.

    (b) CONFORMING AMENDMENTS-

      (1) HIGHLY ERODIBLE LAND CONSERVATION- Section 1213(e) of such Act (16 U.S.C. 3812a(e)) is amended to read as follows:

    ‘(e) TECHNICAL ASSISTANCE- A producer who is receiving a benefit under this subtitle shall be eligible to receive technical assistance in accordance with section 1243(d) throughout the development, revision, and application of the conservation plan and any conservation system of the producer.’.

      (2) CONSERVATION RESERVE PROGRAM- Section 1233 of such Act (16 U.S.C. 3833) is amended--

        (A) by inserting ‘(a) IN GENERAL- ’ before ‘In return’;

        (B) by adding ‘and’ at the end of paragraph (1);

        (C) by striking ‘; and’ at the end of paragraph (2)(B) and inserting a period;

        (D) by striking paragraph (3); and

        (E) by adding after and below the end the following:

    ‘(b) TECHNICAL ASSISTANCE- An owner or operator who is receiving a benefit under this subtitle shall be eligible to receive technical assistance in accordance with section 1243(d) to assist the owner or operator in carrying out a contract entered into under section 1232.’.

      (3) WETLANDS RESERVE PROGRAM- Section 1237C(b) of such Act (16 U.S.C. 3837c(b)) is amended--

        (A) in the subsection heading, by striking ‘AND TECHNICAL ASSISTANCE’; and

        (B) by striking paragraph (3) and inserting the following:

      ‘(2) TECHNICAL ASSISTANCE- A producer who is receiving a benefit under this subtitle shall be eligible to receive technical assistance in accordance with section 1243(d) to assist the producer in complying with the terms of easements and restoration cost share agreements under this subchapter.’.

      (4) ENVIRONMENTAL QUALITY INCENTIVES PROGRAM-

        (A) IN GENERAL- Section 1240B of such Act (16 U.S.C. 3839aa-2) is amended--

          (i) in subsection (a)(1), by striking ‘technical assistance,’; and

          (ii) in subsection (e)--

            (I) in the subsection heading, by striking ‘AND TECHNICAL ASSISTANCE’; and

            (II) by striking paragraph (3) and inserting the following:

      ‘(2) TECHNICAL ASSISTANCE- A producer who is receiving a benefit under this subtitle shall be eligible to receive technical assistance in accordance with section 1243(d) to assist the producer in writing and developing proposals and plans for contracts under this chapter, and in the implementation of structural practices and land management practices covered by such contracts.’.

        (B) CONFORMING AMENDMENTS- Section 1241(b) of such Act (16 U.S.C. 3841(b)) is amended--

          (i) in paragraph (1), by striking ‘technical assistance,’; and

          (ii) in paragraph (2), by striking ‘technical assistance’ and all that follows through ‘education’ and inserting ‘cost-share payments and incentive payments’.

Subtitle H--Other Programs

SEC. 271. WILDLIFE HABITAT INCENTIVES PROGRAM.

    Section 387(c) of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 3836a(c)) is amended to read as follows:

    ‘(c) FUNDING- To carry out this section, there shall be made available $25,000,000 for each of fiscal years 2002 through 2011, from funds made available from the Commodity Credit Corporation.’.

SEC. 272. FARMLAND PROTECTION PROGRAM.

    Section 388 of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 3830 note) is amended to read as follows:

    ‘(c) FUNDING- The Secretary shall use not more than $50,000,000 of the funds of the Commodity Credit Corporation in each of fiscal years 2002 through 2011 to carry out this section.’.

SEC. 273. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

    (a) PURPOSE- Section 1528 of the Agriculture and Food Act of 1981 (16 U.S.C. 3451) is amended--

      (1) by striking the section heading and all that follows through ‘SEC. 1528. It is the purpose’ and inserting the following:

‘SEC. 1528. STATEMENT OF PURPOSE.

    ‘It is the purpose’; and

      (2) by inserting ‘through designated RC&D councils’ before ‘in rural areas’.

    (b) DEFINITIONS- Section 1529 of such Act (16 U.S.C. 3452) is amended--

      (1) by striking the section heading and all that follows through ‘SEC. 1529. As used in this subtitle--’ and inserting the following:

‘SEC. 1529. DEFINITIONS.

    ‘In this title:’;

      (2) in paragraph (1)--

        (A) in the matter preceding subparagraph (A), by inserting ‘RC&D council’ before ‘area plan’;

        (B) in subparagraph (B), by striking ‘through control of nonpoint sources of pollution’;

        (C) in subparagraph (C)--

          (i) by striking ‘natural resources based’ and inserting ‘resource-based’;

          (ii) by striking ‘development of aquaculture,’;

          (iii) by striking ‘and satisfaction’ and inserting ‘satisfaction’; and

          (iv) by inserting ‘food security, economic development, and education’ before the semicolon; and

        (D) in subparagraph (D), by striking ‘other’ and inserting ‘land management’;

      (3) in paragraph (3), by striking ‘any State, local unit of government, or local nonprofit organization’ and inserting ‘the designated RC&D council’;

      (4) by striking paragraphs (4) through (6) and inserting the following:

      ‘(4)(A) The term ‘financial assistance’ means the Secretary may--

        ‘(i) provide funds directly to RC&D councils or associations of RC&D councils through grants, cooperative agreements, and interagency agreements that directly implement RC&D area plans; and

        ‘(ii) may join with other federal agencies through interagency agreements and other arrangements as needed to carry out the program’s purpose.

      ‘(B) Funds may be used for such things as--

        ‘(i) technical assistance;

        ‘(ii) financial assistance in the form of grants for planning, analysis and feasibility studies, and business plans;

        ‘(iii) training and education; and

        ‘(iv) all costs associated with making such services available to RC&D councils or RC&D associations.

      ‘(5) The term ‘RC&D council’ means the responsible leadership of the RC&D area. RC&D councils and associations are non-profit entities whose members are volunteers and include local civic and elected officials. Affiliations of RC&D councils are formed in states and regions.’;

      (5) in paragraph (8), by inserting ‘and federally recognized Indian tribes’ before the period;

      (6) in paragraph (9), by striking ‘works of improvement’ and inserting ‘projects’;

      (7) by redesignating paragraphs (7) through (9) as paragraphs (6) through (8), respectively; and

      (8) by striking paragraph (10) and inserting the following:

      ‘(9) The term ‘project’ means any action taken by a designated RC&D council that achieves any of the elements identified under paragraph (1).’.

    (c) ESTABLISHMENT AND SCOPE- Section 1530 of such Act (16 U.S.C. 3453) is amended--

      (1) by striking the section heading and all that follows through ‘SEC. 1530. The Secretary’ and inserting the following:

‘SEC. 1530. ESTABLISHMENT AND SCOPE.

    ‘The Secretary’; and

      (2) by striking ‘the technical and financial assistance necessary to permit such States, local units of government, and local nonprofit organizations’ and inserting ‘through designated RC&D councils the technical and financial assistance necessary to permit such RC&D Councils’.

    (d) SELECTION OF DESIGNATED AREAS- Section 1531 of such Act (16 U.S.C. 3454) is amended by striking the section heading and all that follows through ‘SEC. 1531. The Secretary’ and inserting the following:

‘SEC. 1531. SELECTION OF DESIGNATED AREAS.

    ‘The Secretary’.

    (e) AUTHORITY OF SECRETARY- Section 1532 of such Act (16 U.S.C. 3455) is amended--

      (1) by striking the section heading and all that follows through ‘SEC. 1532. In carrying’ and inserting the following:

‘SEC. 1532. AUTHORITY OF SECRETARY.

    ‘In carrying’;

      (2) in each of paragraphs (1) and (3)--

        (A) by striking ‘State, local unit of government, or local nonprofit organization’ and inserting ‘RC&D council’; and

        (B) by inserting ‘RC&D council’ before ‘area plan’;

      (3) in paragraph (2), by inserting ‘RC&D council’ before ‘area plans’; and

      (4) in paragraph (4), by striking ‘States, local units of government, and local nonprofit organizations’ and inserting ‘RC&D councils or affiliations of RC&D councils’.

    (f) TECHNICAL AND FINANCIAL ASSISTANCE- Section 1533 of such Act (16 U.S.C. 3456) is amended--

      (1) by striking the section heading and all that follows through ‘SEC. 1533. (a) Technical’ and inserting the following:

‘SEC. 1533. TECHNICAL AND FINANCIAL ASSISTANCE.

    ‘(a) Technical’;

      (2) in subsection (a)--

        (A) by striking ‘State, local unit of government, or local nonprofit organization to assist in carrying out works of improvement specified in an’ and inserting ‘RC&D councils or affiliations of RC&D councils to assist in carrying out a project specified in a RC&D council’;

        (B) in paragraph (1)--

          (i) by striking ‘State, local unit of government, or local nonprofit organization’ and inserting ‘RC&D council or affiliate’; and

          (ii) by striking ‘works of improvement’ each place it appears and inserting ‘project’;

        (C) in paragraph (2)--

          (i) by striking ‘works of improvement’ and inserting ‘project’; and

          (ii) by striking ‘State, local unit of government, or local nonprofit organization’ and inserting ‘RC&D council’;

        (D) in paragraph (3), by striking ‘works of improvement’ and all that follows and inserting ‘project concerned is necessary to accomplish and RC&D council area plan objective’;

        (E) in paragraph (4), by striking ‘the works of improvement provided for in the’ and inserting ‘the project provided for in the RC&D council’;

        (F) in paragraph (5), by inserting ‘federally recognized Indian tribe’ before ‘or local’ each place it appears; and

        (G) in paragraph (6), by inserting ‘RC&D council’ before ‘area plan’;

      (3) in subsection (b), by striking ‘works of improvement’ and inserting ‘project’; and

      (4) in subsection (c), by striking ‘any State, local unit of government, or local nonprofit organization to carry out any’ and inserting ‘RC&D council to carry out any RC&D council’.

    (g) RESOURCE CONSERVATION AND DEVELOPMENT POLICY BOARD- Section 1534(b) of such Act (16 U.S.C. 3457(b)) is amended--

      (1) by striking the section heading and all that follows through ‘SEC. 1534. (a) The Secretary’ and inserting the following:

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

    ‘(a) The Secretary’; and

      (2) by striking ‘seven’.

    (h) PROGRAM EVALUATION- Section 1535 of such Act (16 U.S.C. 3458) is amended--

      (1) by striking the section heading and all that follows through ‘SEC. 1535. The Secretary’ and inserting the following:

‘SEC. 1535. PROGRAM EVALUATION.

    ‘The Secretary’;

      (2) by inserting ‘with assistance from RC&D councils’ before ‘provided’;

      (3) by inserting ‘federally recognized Indian tribes,’ before ‘local units’; and

      (4) by striking ‘1986’ and inserting ‘2007’.

    (i) LIMITATION ON ASSISTANCE- Section 1536 of such Act (16 U.S.C. 3458) is amended by striking the section heading and all that follows through ‘SEC. 1536. The program’ and inserting the following:

‘SEC. 1536. LIMITATION ON ASSISTANCE.

    ‘The program’.

    (j) SUPPLEMENTAL AUTHORITY OF THE SECRETARY- Section 1537 of such Act (16 U.S.C. 3460) is amended--

      (1) by striking the section heading and all that follows through ‘SEC. 1537. The authority’ and inserting the following:

‘SEC. 1537. SUPPLEMENTAL AUTHORITY OF SECRETARY.

    ‘The authority’; and

      (2) by striking ‘States, local units of government, and local nonprofit organizations’ and inserting ‘RC&D councils’.

    (k) AUTHORIZATION OF APPROPRIATIONS- Section 1538 of such Act (16 U.S.C. 3461) is amended--

      (1) by striking the section heading and all that follows through ‘SEC. 1538. There are’ and inserting the following:

‘SEC. 1537. AUTHORIZATION OF APPROPRIATIONS.

    ‘There are’; and

      (2) by striking ‘for each of the fiscal years 1996 through 2002’.

SEC. 274. GRASSLAND RESERVE PROGRAM.

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

‘Subchapter D--Grassland Reserve Program

‘SEC. 1238. GRASSLAND RESERVE PROGRAM.

    ‘(a) ESTABLISHMENT- The Secretary, acting through the Farm Service Agency, shall establish a grassland reserve program (referred to in this subchapter as the ‘program’) to assist owners in restoring and conserving eligible land described in subsection (c).

    ‘(b) ENROLLMENT CONDITIONS-

      ‘(1) MAXIMUM ENROLLMENT- The total number of acres enrolled in the program shall not exceed 2,000,000 acres, not more than 1,000,000 of which shall be restored grassland, and not more than 1,000,000 of which shall be virgin (never cultivated) grassland.

      ‘(2) METHODS OF ENROLLMENT- The Secretary shall enroll in the program for a willing owner not less than 100 contiguous acres of land west of the 90th meridian or not less than 50 contiguous acres of land east of the 90th meridian through 10-year, 15-year, or 20-year contracts.

    ‘(c) ELIGIBLE LAND- Land shall be eligible to be enrolled in the program if the Secretary determines that--

      ‘(1) the land is natural grass or shrubland; or

      ‘(2) the land--

        ‘(A) is located in an area that has been historically dominated by natural grass or shrubland; and

        ‘(B) has potential to serve as habitat for animal or plant populations of significant ecological value if the land is restored to natural grass or shrubland.

‘SEC. 1238A. CONTRACTS AND AGREEMENTS.

    ‘(a) REQUIREMENTS OF LANDOWNER- To be eligible to enroll land in the program, the owner of the land shall--

      ‘(1) agree to comply with the terms of the contract and related restoration agreements; and

      ‘(2) agree to the suspension of any existing cropland base and allotment history for the land under any program administered by the Secretary.

    ‘(b) TERMS OF CONTRACT- A contract under subsection (a) shall--

      ‘(1) permit--

        ‘(A) common grazing practices on the land in a manner that is consistent with maintaining the viability of natural grass and shrub species indigenous to that locality;

        ‘(B) haying, mowing, or haying for seed production, except that such uses shall not be permitted until after the end of the nesting season for birds in the local area which are in significant decline or are conserved pursuant to State or Federal law, as determined by the Natural Resources Conservation Service State conservationist; and

        ‘(C) construction of fire breaks and fences, including placement of the posts necessary for fences;

      ‘(2) prohibit--

        ‘(A) the production of row-crops, fruit trees, vineyards, or any other agricultural commodity that requires breaking the soil surface; and

        ‘(B) the conduct of any other activities that would disturb the surface of the land covered by the contract, including--

          ‘(i) plowing; and

          ‘(ii) disking; and

      ‘(3) include such additional provisions as the Secretary determines are appropriate to carry out or facilitate the administration of this subchapter.

    ‘(c) RANKING CONTRACT APPLICATIONS-

      ‘(1) ESTABLISHMENT OF CRITERIA- The Secretary shall establish criteria to evaluate and rank applications for contracts under this subchapter.

      ‘(2) EMPHASIS- In establishing the criteria, the Secretary shall emphasize support for native grass and shrubland, grazing operations, and plant and animal biodiversity.

    ‘(d) RESTORATION AGREEMENTS- The Secretary shall prescribe the terms by which grassland that is subject to a contract under the program shall be restored. The agreement shall include duties of the land owner and the Secretary, including the Federal share of restoration payments and technical assistance.

    ‘(e) VIOLATIONS- On the violation of the terms or conditions of a contract or restoration agreement entered into under this section--

      ‘(1) the contract shall remain in force; and

      ‘(2) the Secretary may require the owner to refund all or part of any payments received by the owner under this subchapter, with interest on the payments as determined appropriate by the Secretary.

‘SEC. 1238B. DUTIES OF SECRETARY.

    ‘(a) IN GENERAL- In return for the granting of a contract by an owner under this subchapter, the Secretary shall make contract payments and payments of the Federal share of restoration and provide technical assistance to the owner in accordance with this section.

    ‘(b) CONTRACT PAYMENTS- In return for the granting of contract by an owner under this subchapter, the Secretary shall make annual contract payments to the owner in an amount that is not more than 75 percent of the grazing value of the land.

    ‘(c) FEDERAL SHARE OF RESTORATION- The Secretary shall make payments to the owner of not more than--

      ‘(1) in the case of virgin (never cultivated) grassland, 90 percent of the costs of carrying out measures and practices necessary to restore grassland functions and values; or

      ‘(2) in the case of restored grassland, 75 percent of such costs.

    ‘(d) TECHNICAL ASSISTANCE- A landowner who is receiving a benefit under this subchapter shall be eligible to receive technical assistance in accordance with section 1243(d) to assist the owner or operator in carrying out a contract entered into under this subchapter.

    ‘(e) PAYMENTS TO OTHERS- If an owner who is entitled to a payment under this subchapter dies, becomes incompetent, is otherwise unable to receive the payment, or is succeeded by another person who renders or completes the required performance, the Secretary shall make the payment, in accordance with regulations promulgated by the Secretary and without regard to any other provision of law, in such manner as the Secretary determines is fair and reasonable in light of all the circumstances.’.

SEC. 275. FARMLAND STEWARDSHIP PROGRAM.

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

‘CHAPTER 2--FARMLAND STEWARDSHIP PROGRAM

‘SEC. 1239. DEFINITIONS.

    ‘In this chapter:

      ‘(1) AGREEMENT- The terms ‘farmland stewardship agreement’ and ‘agreement’ mean a stewardship contract authorized by this chapter.

      ‘(2) CONTRACTING AGENCY- The term ‘contracting agency’ means a local conservation district, resource conservation and development district, local office of the Department of Agriculture, other participating government agency, or other nongovernmental organization that is designated by the Secretary to enter into farmland stewardship agreements on behalf of the Secretary.

      ‘(3) ELIGIBLE AGRICULTURAL LANDS- The term ‘eligible agricultural lands’ means private lands that are in primarily native or natural condition or are classified as cropland, pastureland, grazing lands, timberlands, or other lands as specified by the Secretary that--

        ‘(A) contain wildlife habitat, wetlands, or other natural resources; or

        ‘(B) provide benefits to the public at large, such as--

          ‘(i) conservation of soil, water, and related resources;

          ‘(ii) water quality protection or improvement;

          ‘(iii) control of invasive and exotic species;

          ‘(iv) wetland restoration, protection, and creation; and

          ‘(v) wildlife habitat development and protection;

          ‘(vi) preservation of open spaces, or prime, unique, or other productive farm lands; and

          ‘(vii) and other similar conservation purposes.

      ‘(4) FARMLAND STEWARDSHIP PROGRAM; PROGRAM- The terms ‘Farmland Stewardship Program’ and ‘Program’ mean the conservation program of the Department of Agriculture established by this chapter.

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

    ‘(a) ESTABLISHMENT- The Secretary shall establish a conservation program of the Department of Agriculture, to be known as the Farmland Stewardship Program, that is designed to more precisely tailor and target existing conservation programs to the specific conservation needs and opportunities presented by individual parcels of eligible agricultural lands.

    ‘(b) RELATION TO OTHER CONSERVATION PROGRAMS- Under the Farmland Stewardship Program, the Secretary may implement, or combine together, the features of--

      ‘(1) the Wetlands Reserve Program;

      ‘(2) the Wildlife Habitat Incentives Program;

      ‘(3) the Forest Land Enhancement Program;

      ‘(4) the Farmland Protection Program; or

      ‘(5) other conservation programs administered by other Federal agencies and State and local government entities, where feasible and with the consent of the administering agency or government.

    ‘(c) FUNDING SOURCES-

      ‘(1) IN GENERAL- The Farmland Stewardship Program and agreements under the Program shall be funded by the Secretary using--

        ‘(A) the funding authorities of the conservation programs that are implemented in

whole, or in part, through the use of agreements or easements; and

        ‘(B) such funds as are provided to carry out the programs specified in paragraphs (1) through (4) of subsection (b).

      ‘(2) COST-SHARING- It shall be a requirement of the Farmland Stewardship Program that the majority of the funds to carry out the Program must come from other existing conservation programs, which may be Federal, State, regional, local, or private, that are combined into and made a part of an agreement, or from matching funding contributions made by State, regional, or local agencies and divisions of government or from private funding sources.

    ‘(d) PERSONNEL COSTS- The Secretary may use the Natural Resources Conservation Service to carry out the Farmland Stewardship Program.

    ‘(e) TECHNICAL ASSISTANCE- An owner or operator who is receiving a benefit under this chapter shall be eligible to receive technical assistance in accordance with section 1243(d) to assist the owner or operator in carrying out a contract entered into under this chapter.

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

    ‘(a) AGREEMENTS AUTHORIZED- The Secretary shall carry out the Farmland Stewardship Program by entering into stewardship contracts as determined by the Secretary, to be known as farmland stewardship agreements, with the owners or operators of eligible agricultural lands to maintain and protect for the natural and agricultural resources on the lands.

    ‘(b) BASIC PURPOSES- An agreement with the owner or operator of eligible agricultural lands shall be used--

      ‘(1) to negotiate a mutually agreeable set of guidelines, practices, and procedures under which conservation practices will be provided by the owner or operator to protect, maintain, and, where possible, improve, the natural resources on the lands covered by the agreement in return for annual payments to the owner or operator;

      ‘(2) to implement a conservation program or series of programs where there is no such program or to implement conservation management activities where there is no such activity; and

      ‘(3) to expand conservation practices and resource management activities to a property where it is not possible at the present time to negotiate or reach agreement on a public purchase of a fee-simple or less-than-fee interest in the property for conservation purposes.

    ‘(c) MODIFICATION OF OTHER CONSERVATION PROGRAM ELEMENTS- If most, but not all, of the limitations, conditions, and requirements of a conservation program that is implemented in whole, or in part, through the Farmland Stewardship Program are met with respect to a parcel of eligible agricultural lands, and the purposes to be achieved by the agreement to be entered into for such lands are consistent with the purposes of the conservation program, then the Secretary may waive any remaining limitations, conditions, or requirements of the conservation program that would otherwise prohibit or limit the agreement.

    ‘(d) STATE AND LOCAL CONSERVATION PRIORITIES- To the maximum extent practicable, agreements shall address the conservation priorities established by the State and locality in which the eligible agricultural lands are located.

    ‘(e) WATERSHED ENHANCEMENT- To the extent practicable, the Secretary shall encourage the development of Farmland Stewardship Program applications on a watershed basis.

‘SEC. 1239C. PARTNERSHIP APPROACH TO PROGRAM.

    ‘(a) AUTHORITY OF SECRETARY EXERCISED THROUGH PARTNERSHIPS- The Secretary may administer agreements under the Farmland Stewardship Program in partnership with other Federal, State, and local agencies whose programs are incorporated into the Program under section 1239A.

    ‘(b) DESIGNATION AND USE OF CONTRACTING AGENCIES- Subject to subsection (c), the Secretary may authorize a local conservation district, resource conservation & development district, nonprofit organization, or local office of the Department of Agriculture or other participating government agency to enter into and administer agreements under the Program as a contracting agency on behalf of the Secretary.

    ‘(c) CONDITIONS ON DESIGNATION- The Secretary may designate an eligible district or office as a contracting agency under subsection (b) only if the district of office--

      ‘(1) submits a written request for such designation to the Secretary;

      ‘(2) affirms that it is willing to follow all guidelines for executing and administering an agreement, as promulgated by the Secretary;

      ‘(3) demonstrates to the satisfaction of the Secretary that it has established working relationships with owners and operators of eligible agricultural lands, and based on the history of these working relationships, demonstrates that it has the ability to work with owners and operators of eligible agricultural lands in a cooperative manner;

      ‘(4) affirms its responsibility for preparing all documentation for the agreement, negotiating its terms with an owner or operator, monitoring compliance, making annual reports to the Secretary, and administering the agreement throughout its full term; and

      ‘(5) demonstrates to the satisfaction of the Secretary that it has or will have the necessary staff resources and expertise to carry out its responsibilities under paragraphs (3) and (4).

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

    ‘(a) APPLICATION AND APPROVAL PROCESS- To participate in the Farmland Stewardship Program, an owner or operator of eligible agricultural lands shall--

      ‘(1) submit to the Secretary an application indicating interest in the Program and describing the owner’s or operator’s property, its resources, and their ecological and agricultural values;

      ‘(2) submit to the Secretary a list of services to be provided, a management plan to be implemented, or both, under the proposed agreement;

      ‘(3) if the application and list are accepted by the Secretary, enter into an agreement that details the services to be provided, management plan to be implemented, or both, and requires compliance with the other terms of the agreement.

    ‘(b) APPLICATION ON BEHALF OF AN OWNER OR OPERATOR- A designated contracting agency may submit the application required by subsection (a) on behalf of an owner or operator if the contracting agency has secured the consent of the owner or operator to enter into an agreement.’.

SEC. 276. SMALL WATERSHED REHABILITATION PROGRAM.

    Section 14(h) of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1012(h)) is amended--

      (1) by adding ‘and’ at the end of paragraph (1); and

      (2) by striking all that follows paragraph (1) and inserting the following:

      ‘(2) $15,000,000 for fiscal year 2002 and each succeeding fiscal year.’.

Subtitle I--Availability of Funds

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

    Section 6 of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590f) is amended--

      (1) in the 1st undesignated paragraph, by inserting ‘(a)’ before ‘There’;

      (2) in the 2nd undesignated paragraph, by inserting ‘(b)’ before ‘Appropriations’; and

      (3) by adding at the end the following:

    ‘(c) Funds made available to carry out the purposes of this Act may be used, to the extent determined by the Secretary of Agriculture to be necessary, by the agency of the Department of Agriculture to which the funds are appropriated, to provide technical assistance to owners and operators of land to achieve the objectives of any conservation program administered by the Secretary of Agriculture.’.

Subtitle K--Repeals

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

    (a) WETLANDS MITIGATION BANKING PROGRAM- Section 1222 of the Food Security Act of 1985 (16 U.S.C. 3822) is amended by striking subsection (k).

    (b) PAYMENT LIMITATIONS UNDER THE CONSERVATION RESERVE PROGRAM- Section 1234(f) of such Act (16 U.S.C. 3837d(c)) is amended by striking paragraph (3).

    (c) BASE HISTORY PROVISION-

      (1) REPEAL- Section 1236 of such Act (16 U.S.C. 3836) is repealed.

      (2) CONFORMING AMENDMENT- Section 1232(a)(5) of such Act (16 U.S.C. 3832(a)(5)) is amended by striking ‘in addition to the remedies provided under section 1236(d),’.

    (d) PAYMENT LIMITATIONS UNDER THE WETLANDS RESERVE PROGRAM- Section 1237D(c) of such Act (16 U.S.C. 3837d(c)) is amended by striking paragraph (3).

    (e) ENVIRONMENTAL EASEMENT PROGRAM-

      (1) REPEAL- Chapter 3 of subtitle D of title XII of such Act (16 U.S.C. 3839-3839d) is repealed.

      (2) CONFORMING AMENDMENT- Section 1243(a)(3) of such Act (16 U.S.C. 3843(a)(3)) is amended by striking ‘or 3’.

    (f) CONSERVATION FARM OPTION- Chapter 5 of subtitle D of title XII of such Act (16 U.S.C. 3839bb) is repealed.

    (g) TREE PLANTING INITIATIVE- Section 1256 of such Act (16 U.S.C. 2101 note) is repealed.

TITLE III--TRADE

SEC. 301. MARKET ACCESS PROGRAM.

    Section 211(c)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is amended--

      (1) by striking ‘and not more’ and inserting ‘not more’;

      (2) by inserting ‘and not more than $200,000,000 for each of fiscal years 2002 through 2011,’ after ‘2002’; and

      (3) by striking ‘2002’ and inserting ‘2001’.

SEC. 302. FOOD FOR PROGRESS.

    (a) IN GENERAL- Subsections (f)(3), (g), (k), and (l)(1) of section 1110 of the Food Security Act of 1985 (7 U.S.C. 1736o) are each amended by striking ‘2002’ and inserting ‘2011’.

    (b) INCREASE IN FUNDING- Section 1110(l)(1) of the Food Security Act of 1985 (7 U.S.C. 1736o(l)(1)) is amended by striking ‘fiscal year 1999’ and inserting ‘fiscal years 2002 through 2011’.

    (c) EXCLUSION FROM LIMITATION- Section 1110(e)(2) of the Food Security Act of 1985 (7 U.S.C. 1736o(e)(2)) is amended by inserting ‘, and subsection (g) does not apply to such commodities furnished on a grant basis or on credit terms under title I of the Agricultural Trade Development Act of 1954’ before the final period.

    (d) TRANSPORTATION COSTS- Section 1110(f)(3) of the Food Security Act of 1985 (7 U.S.C. 1736o) is amended by striking ‘$30,000,000’ and inserting ‘$35,000,000’.

    (e) MULTIYEAR BASIS- Section 1110(j) of the Food Security Act of 1985 (7 U.S.C. 17360(j)) is amended--

      (1) by striking ‘may’ and inserting ‘is encouraged’; and

      (2) by inserting ‘to’ before ‘approved’.

    (f) NEW PROVISIONS- Section 1110 of the Food Security Act of 1985 (7 U.S.C. 17360) is amended by adding at the end the following:

    ‘(p) The Secretary is encouraged to finalize program agreements and resource requests for programs under this section before the beginning of the relevant fiscal year. By November 1 of the relevant fiscal year, the Secretary shall provide to the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate a list of approved programs, countries, and commodities, and the total amounts of funds approved for transportation and administrative costs, under this section.’.

SEC. 303. EXPORT ENHANCEMENT PROGRAM.

    Section 301(e)(1)(G) of the Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)(1)(G)) is amended by inserting ‘and for each fiscal year thereafter through fiscal year 2011’ after ‘2002’.

SEC. 304. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    Section 703 of the Agricultural Trade Act of 1978 (7 U.S.C. 5723) is amended--

      (1) by inserting ‘(a) PRIOR YEARS- ’;

      (2) by striking ‘2002’ and inserting ‘2001’; and

      (3) by adding at the end the following new subsection:

    ‘(b) Fiscal 2002 and Later- For each of fiscal years 2002 through 2011 there are authorized to be appropriated such sums as may be necessary to carry out this title, and, in addition to any sums so appropriated, the Secretary shall use $35,000,000 of the funds of, or an equal value of the commodities of, the Commodity Credit Corporation to carry out this title.

SEC. 305. EXPORT CREDIT GUARANTEE PROGRAM.

    (a) REAUTHORIZATION- Section 211(b)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(b)(1)) is amended by striking ‘2002’ and inserting ‘2011’.

    (b) PROCESSED AND HIGH VALUE PRODUCTS- Section 202(k)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 5622(k)(1)) is amended by striking ‘, 2001, and 2002’ and inserting ‘through 2011’.

SEC. 306. PL 480.

    The Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) is amended--

      (1) in section 204(a), by striking ‘2002’ each place it appears and inserting ‘2011’;

      (2) in section 208(f), by striking ‘2002’ and inserting ‘2011’;

      (3) in section 407(c)(4), by striking ‘2001 and 2002’ and inserting ‘2001 through 2011’;

      (4) in section 408, by striking ‘2002’ and inserting ‘2011’; and

      (5) in section 501(c), by striking ‘2002’ and inserting ‘2011’.

SEC. 307. EMERGING MARKETS.

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

SEC. 308. BILL EMERSON HUMANITARIAN TRUST.

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

SEC. 309. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

    (a) ESTABLISHMENT- The Secretary of Agriculture shall establish an export assistance program (referred to in this section as the ‘program’) to address unique barriers that prohibit or threaten the export of United States specialty crops.

    (b) PURPOSE- The program shall provide direct assistance through public and private sector projects and technical assistance to remove, resolve, or mitigate sanitary and phytosanitary and related barriers to trade.

    (c) PRIORITY- The program shall address time sensitive and strategic market access projects based on--

      (1) trade effect on market retention, market access, and market expansion; and

      (2) trade impact.

    (d) FUNDING- The Secretary shall make available $3,000,000 for each of fiscal years 2002 through 2011 of the funds of, or an equal value of commodities owned by, the Commodity Credit Corporation.

TITLE IV--NUTRITION PROGRAMS

Subtitle A--Food Stamp Program

SEC. 401. SIMPLIFIED DEFINITION OF INCOME.

    Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is amended--

      (1) in paragraph (3)--

        (A) by striking ‘and (C)’ and inserting ‘(C)’; and

        (B) by inserting after ‘premiums,’ the following:

    ‘(D) to the extent that any other educational loans on which payment is deferred, grants, scholarships, fellowships, veterans’ educational benefits, and the like, are required to be excluded under title XIX of the Social Security Act, the state agency may exclude it under this subsection,’;

      (2) by striking ‘and (15)’ and inserting ‘(15)’;

      (3) by inserting before the period at the end the following:

    ‘; (16) any state complementary assistance program payments that are excluded pursuant to subsections (a) and (b) of section 1931 of title XIX of the Social Security Act; and (17) at the option of the State agency, any types of income that the State agency does not consider when determining eligibility for cash assistance under a program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) or medical assistance under section 1931 of the Social Security Act (42 U.S.C. 1396u-1), except that this paragraph shall not authorize a State agency to exclude earned income, payments under title I, II, IV, X, XIV, or XVI of the Social Security Act, or such other types of income whose consideration the Secretary determines essential to equitable determinations of eligibility and benefit levels except to the extent that those types of income may be excluded under other paragraphs of this subsection’.

SEC. 402. STANDARD DEDUCTION.

    Section 5(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(1)) is amended--

      (1) by striking ‘of $134, $229, $189, $269, and $118’ and inserting ‘equal to 9.7 percent of the eligibility limit established under section 5(c)(1) for fiscal year 2002 but not more than 9.25 percent of the eligibility limit established under section 5(c)(1) for a household of six nor less than $134, $229, $189, $269, and $118’; and

      (2) by inserting before the period at the end the following:

      ‘, except that the standard deduction for Guam shall be determined with reference to 2 times the eligibility limits under section 5(c)(1) for the 48 contiguous states and the District of Columbia’.

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

    (a) IN GENERAL- Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is amended by adding at the end the following:

    ‘(s) TRANSITIONAL BENEFITS OPTION-

      ‘(1) IN GENERAL- A State may provide transitional food stamp benefits to a household that is no longer eligible to receive cash assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.).

      ‘(2) TRANSITIONAL BENEFITS PERIOD- Under paragraph (1), a household may continue to receive food stamp benefits for a period of not more than 6 months after the date on which cash assistance is terminated.

      ‘(3) AMOUNT- During the transitional benefits period under paragraph (2), a household shall receive an amount equal to the allotment received in the month immediately preceding the date on which cash assistance is terminated. A household receiving benefits under this subsection may apply for recertification at any time during the transitional benefit period. If a household reapplies, its allotment shall be determined without regard to this subsection for all subsequent months.

      ‘(4) DETERMINATION OF FUTURE ELIGIBILITY- In the final month of the transitional benefits period under paragraph (2), the State agency may--

        ‘(A) require a household to cooperate in a redetermination of eligibility to receive an authorization card; and

        ‘(B) renew eligibility for a new certification period for the household without regard to whether the previous certification period has expired.

      ‘(5) LIMITATION- A household sanctioned under section 6, or for a failure to perform an action required by Federal, State, or local law relating to such cash assistance program, shall not be eligible for transitional benefits under this subsection.’.

    (b) CONFORMING AMENDMENTS- (1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 2012(c)) is amended by adding at the end the following: ‘The limits in this section may be extended until the end of any transitional benefit period established under section 11(s).’.

    (2) Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 2015(c)) is amended by striking ‘No household’ and inserting ‘Except in a case in which a household is receiving transitional benefits during the transitional benefits period under section 11(s), no household’.

SEC. 404. QUALITY CONTROL SYSTEMS.

    (a) TARGETED QUALITY CONTROL SYSTEM- Section 16(c) of the Food Stamp Act of 1977 (7 U.S.C. 2025(c)) is amended--

      (1) in paragraph (1)(C)--

        (A) in the matter preceding clause (i), by inserting ‘the Secretary determines that a 95 percent statistical probability exists that for the 3d consecutive year’ after ‘year in which’; and

        (B) in clause (i)(II)(aa) by striking ‘the national performance measure for the fiscal year’ each place it appears and inserting ‘10 percent’;

      (2) in the 1st sentence of paragraph (4)--

        (A) by striking ‘or claim’ and inserting ‘claim’; and

        (B) by inserting ‘or performance under the measures established under paragraph (10),’ after ‘for payment error,’;

      (3) in paragraph (5), by inserting ‘to comply with paragraph (10) and’ before ‘to establish’;

      (4) in the 1st sentence of paragraph (6), by inserting ‘one percentage point more than’ after ‘measure that shall be’; and

      (5) by inserting at the end the following:

    ‘(10)(A) In addition to the measures established under paragraph (1), the Secretary shall measure the performance of State agencies in each of the following regards--

      ‘(i) compliance with the deadlines established under paragraphs (3) and (9) of section 11(e); and

      ‘(ii) the percentage of negative eligibility decisions that are made correctly.

    ‘(B) For each fiscal year, the Secretary shall make excellence bonus payments of $1,000,000 each to the 5 States with the highest combined performance in the 2 measures in subparagraph (A) and to the 5 States whose combined performance under the 2 measures in subparagraph (A) most improved in such fiscal year.

    ‘(C) For any fiscal year in which the Secretary determines that a 95 percent statistical probability exists that a State agency’s performance with respect to any of the 2 performance measures established in subparagraph (A) is substantially worse than a level the Secretary deems reasonable, other than for good cause shown, the Secretary shall investigate that State agency’s administration of the food stamp program. If this investigation determines that the State’s administration has been deficient, the Secretary shall require the State agency to take prompt corrective action.’.

    (b) IMPLEMENTATION- The amendment made by subsection (a)(5) shall apply to all fiscal years beginning on or after October 1, 2001. All other amendments made by this section shall apply to all fiscal years beginning on or after October 1, 1999.

SEC. 405. SIMPLIFIED APPLICATION AND ELIGIBILITY DETERMINATION SYSTEMS.

    Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) is amended by inserting at the end the following:

    ‘(l) The Secretary shall expend up to $10 million in each fiscal year to pay 100 percent of the costs of State agencies to develop and implement simple application and eligibility determination systems.’.

SEC. 406. AUTHORIZATION OF APPROPRIATIONS.

    (a) EMPLOYMENT AND TRAINING PROGRAMS- Section 16(h)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2025(h)(1)) is amended--

      (1) in subparagraph (A)(vii) by striking ‘fiscal year 2002’ and inserting ‘each of the fiscal years 2003 through 2011’; and

      (2) in subparagraph (B) by striking ‘2002’ and inserting ‘2011’.

    (b) COST ALLOCATION- Section 16(k)(3) of the Food Stamp Act of 1977 (7 U.S.C. 2025(k)(3)) is amended--

      (1) in subparagraph (A) by striking ‘2002’ and inserting ‘2011’; and

      (2) in subparagraph (B)(ii) by striking ‘2002’ and inserting ‘2011’.

    (c) CASH PAYMENT PILOT PROJECTS- Section 17(b)(1)(B)(vi) of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(vi)) is amended by striking ‘2002’ and inserting ‘2011’.

    (d) OUTREACH DEMONSTRATION PROJECTS- Section 17(i)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(i)(1)(A)) is amended by striking ‘1992 through 2002’ and inserting ‘2003 through 2011’.

    (e) AUTHORIZATION OF APPROPRIATIONS- Section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by striking‘ ‘1996 through 2002’ and inserting ‘2003 through 2011’.

    (f) PUERTO RICO- Section 19(a)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended--

      (1) in clause (ii) by striking ‘and’ at the end;

      (2) in clause (iii) by adding ‘and’ at the end; and

      (3) by inserting after clause (iii) the following:

      ‘(iv) for each of fiscal years 2003 through 2011, the amount equal to the amount required to be paid under this subparagraph for the preceding fiscal year, as adjusted by the percentage by which the thrifty food plan is adjusted under section 3(o)(4) for the current fiscal year for which the amount is determined under this clause;’.

    (g) TERRITORY OF AMERICAN SAMOA- Section 24 of the Food Stamp Act of 1977 (7 U.S.C. 2033) is amended by striking ‘1996 through 2002’ and inserting ‘2003 through 2011’.

    (h) ASSISTANCE FOR COMMUNITY FOOD PROJECTS- Section 25(b)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2034(b)(2)) is amended--

      (1) in subparagraph (A) by striking ‘and’ at the end;

      (2) in subparagraph (B)--

        (A) by striking ‘2002’ and inserting ‘2001’; and

        (B) by adding ‘and’ at the end; and

      (3) by inserting after subparagraph (B) the following:

        ‘(C) $7,500,000 for each of the fiscal years 2002 through 2011.’.

    (i) AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD ASSISTANCE PROGRAM- Section 27 of the Food Stamp Act of 1977 (7 U.S.C. 2036) is amended--

      (1) in subsection (a)--

        (A) by striking ‘1997 through 2002’ and inserting ‘2002 through 2011’; and

        (B) by striking ‘$100,000,000’ and inserting ‘$140,000,000’; and

      (2) by adding at the end the following:

    ‘(c) USE OF FUNDS FOR RELATED COSTS- For each of the fiscal years 2002 through 2011, the Secretary shall use $10,000,000 of the funds made available under subsection (a) to pay for the direct and indirect costs of the States related to the processing, storing, transporting, and distributing to eligible recipient agencies of commodities purchased by the Secretary under such subsection and commodities secured from other sources, including commodities secured by gleaning (as defined in section 111 of the Hunger Prevention Act of 1988 (7 U.S.C. 612c note)).’.

    (j) SPECIAL EFFECTIVE DATE- The amendments made by subsections (h) and (i) shall take effect of October 1, 2001.

Subtitle B--Commodity Distribution

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

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

SEC. 442. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

    The Agriculture and Consumer Protection Act of 1975 (7 U.S.C. 612c note) is amended--

      (1) in section 4(a) by striking ‘1991 through 2002’ and inserting ‘2003 through 2011’; and

      (2) in subsections (a)(2) and (d)(2) of section 5 by striking ‘1991 through 2002’ and inserting ‘2003 through 2011’.

SEC. 443. EMERGENCY FOOD ASSISTANCE.

    The 1st sentence of section 204(a)(1) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is amended--

      (1) by striking ‘1991 through 2002’ and inserting ‘2003 through 2011’;

      (2) by striking ‘administrative’, and

      (3) by inserting ‘storage,’ after ‘processing,’.

Subtitle C--Miscellaneous Provisions

SEC. 461. HUNGER FELLOWSHIP PROGRAM.

    (a) SHORT TITLE; FINDINGS-

      (1) SHORT TITLE- This section may be cited as the ‘Congressional Hunger Fellows Act of 2001’.

      (2) FINDINGS- The Congress finds as follows:

        (A) There is a critical need for compassionate individuals who are committed to assisting people who suffer from hunger as well as a need for such individuals to initiate and administer solutions to the hunger problem.

        (B) Bill Emerson, the distinguished late Representative from the 8th District of Missouri, demonstrated his commitment to solving the problem of hunger in a bipartisan manner, his commitment to public service, and his great affection for the institution and the ideals of the United States Congress.

        (C) George T. (Mickey) Leland, the distinguished late Representative from the 18th District of Texas, demonstrated his compassion for those in need, his high regard for public service, and his lively exercise of political talents.

        (D) The special concern that Mr. Emerson and Mr. Leland demonstrated during their lives for the hungry and poor was an inspiration for others to work toward the goals of equality and justice for all.

        (E) These 2 outstanding leaders maintained a special bond of friendship regardless of political affiliation and worked together to encourage future leaders to recognize and provide service to others, and therefore it is especially appropriate to honor the memory of Mr. Emerson and Mr. Leland by creating a fellowship program to develop and train the future leaders of the United States to pursue careers in humanitarian service.

    (b) ESTABLISHMENT- There is established as an independent entity of the legislative branch of the United States Government the Congressional Hunger Fellows Program (hereinafter in this section referred to as the ‘Program’).

    (c) BOARD OF TRUSTEES-

      (1) IN GENERAL- The Program shall be subject to the supervision and direction of a Board of Trustees.

      (2) MEMBERS OF THE BOARD OF TRUSTEES-

        (A) APPOINTMENT- The Board shall be composed of 6 voting members appointed under clause (i) and 1 nonvoting ex officio member designated in clause (ii) as follows:

          (i) VOTING MEMBERS- (I) The Speaker of the House of Representatives shall appoint 2 members.

          (II) The minority leader of the House of Representatives shall appoint 1 member.

          (III) The majority leader of the Senate shall appoint 2 members.

          (IV) The minority leader of the Senate shall appoint 1 member.

          (ii) NONVOTING MEMBER- The Executive Director of the program shall serve as a nonvoting ex officio member of the Board.

        (B) TERMS- Members of the Board shall serve a term of 4 years.

        (C) VACANCY-

          (i) AUTHORITY OF BOARD- A vacancy in the membership of the Board does not affect the power of the remaining members to carry out this section.

          (ii) APPOINTMENT OF SUCCESSORS- A vacancy in the membership of the Board shall be filled in the same manner in which the original appointment was made.

          (iii) INCOMPLETE TERM- If a member of the Board does not serve the full term applicable to the member, the individual appointed to fill the resulting vacancy shall be appointed for the remainder of the term of the predecessor of the individual.

        (D) CHAIRPERSON- As the first order of business of the first meeting of the Board, the members shall elect a Chairperson.

        (E) COMPENSATION-

          (i) IN GENERAL- Subject to clause (ii), members of the Board may not receive compensation for service on the Board.

          (ii) TRAVEL- Members of the Board may be reimbursed for travel, subsistence, and other necessary expenses incurred in carrying out the duties of the program.

      (3) DUTIES-

        (A) BYLAWS-

          (i) ESTABLISHMENT- The Board shall establish such bylaws and other regulations as may be appropriate to enable the Board to carry out this section, including the duties described in this paragraph.

          (ii) CONTENTS- Such bylaws and other regulations shall include provisions--

            (I) for appropriate fiscal control, funds accountability, and operating principles;

            (II) to prevent any conflict of interest, or the appearance of any conflict of interest, in the procurement and employment actions taken by the Board or by any officer or employee of the Board and in the selection and placement of individuals in the fellowships developed under the program;

            (III) for the resolution of a tie vote of the members of the Board; and

            (IV) for authorization of travel for members of the Board.

          (iii) TRANSMITTAL TO CONGRESS- Not later than 90 days after the date of the first meeting of the Board, the Chairperson of the Board shall transmit to Congress a copy of such bylaws.

        (B) BUDGET- For each fiscal year the program is in operation, the Board shall determine a budget for the program for that fiscal year. All spending by the program shall be pursuant to such budget unless a change is approved by the Board.

        (C) PROCESS FOR SELECTION AND PLACEMENT OF FELLOWS- The Board shall review and approve the process established by the Executive Director for the selection and placement of individuals in the fellowships developed under the program.

        (D) ALLOCATION OF FUNDS TO FELLOWSHIPS- The Board of Trustees shall determine the priority of the programs to be carried out under this section and the amount of funds to be allocated for the Emerson and Leland fellowships.

    (d) PURPOSES; AUTHORITY OF PROGRAM-

      (1) PURPOSES- The purposes of the program are--

        (A) to encourage future leaders of the United States to pursue careers in humanitarian service, to recognize the needs of people who are hungry and poor, and to provide assistance and compassion for those in need;

        (B) to increase awareness of the importance of public service; and

        (C) to provide training and development opportunities for such leaders through placement in programs operated by appropriate organizations or entities.

      (2) AUTHORITY- The program is authorized to develop such fellowships to carry out the purposes of this section, including the fellowships described in paragraph (3).

      (3) FELLOWSHIPS-

        (A) IN GENERAL- The program shall establish and carry out the Bill Emerson Hunger Fellowship and the Mickey Leland Hunger Fellowship.

        (B) CURRICULUM-

          (i) IN GENERAL- The fellowships established under subparagraph (A) shall provide experience and training to develop the skills and understanding necessary to improve the humanitarian conditions and the lives of individuals who suffer from hunger, including--

            (I) training in direct service to the hungry in conjunction with community-based organizations through a program of field placement; and

            (II) experience in policy development through placement in a governmental entity or nonprofit organization.

          (ii) FOCUS OF BILL EMERSON HUNGER FELLOWSHIP- The Bill Emerson Hunger Fellowship shall address hunger and other humanitarian needs in the United States.

          (iii) FOCUS OF MICKEY LELAND HUNGER FELLOWSHIP- The Mickey Leland Hunger Fellowship shall address international hunger and other humanitarian needs.

          (iv) WORKPLAN- To carry out clause (i) and to assist in the evaluation of the fellowships under paragraph (4), the program shall, for each fellow, approve a work plan that identifies the target objectives for the fellow in the fellowship, including specific duties and responsibilities related to those objectives.

        (C) PERIOD OF FELLOWSHIP-

          (i) EMERSON FELLOW- A Bill Emerson Hunger Fellowship awarded under this paragraph shall be for no more than 1 year.

          (ii) LELAND FELLOW- A Mickey Leland Hunger Fellowship awarded under this paragraph shall be for no more than 2 years.

        (D) SELECTION OF FELLOWS-

          (i) IN GENERAL- A fellowship shall be awarded pursuant to a nationwide competition established by the program.

          (ii) QUALIFICATION- A successful applicant shall be an individual who has demonstrated--

            (I) an intent to pursue a career in humanitarian service and outstanding potential for such a career;

            (II) a commitment to social change;

            (III) leadership potential or actual leadership experience;

            (IV) diverse life experience;

            (V) proficient writing and speaking skills; and

            (VI) an ability to live in poor or diverse communities.

          (iii) AMOUNT OF AWARD-

            (I) IN GENERAL- Each individual awarded a fellowship under this paragraph shall receive a living allowance and, subject to subclause (II), an end-of-service award as determined by the program.

            (II) REQUIREMENT FOR SUCCESSFUL COMPLETION OF FELLOWSHIP- Each individual awarded a fellowship under this paragraph shall be entitled to receive an end-of-service award at an appropriate rate for each month of satisfactory service as determined by the Executive Director.

          (iv) RECOGNITION OF FELLOWSHIP AWARD-

            (I) EMERSON FELLOW- An individual awarded a fellowship from the Bill Emerson Hunger Fellowship shall be known as an ‘Emerson Fellow’.

            (II) LELAND FELLOW- An individual awarded a fellowship from the Mickey Leland Hunger Fellowship shall be known as a ‘Leland Fellow’.

      (4) EVALUATION- The program shall conduct periodic evaluations of the Bill Emerson and Mickey Leland Hunger Fellowships. Such evaluations shall include the following:

        (A) An assessment of the successful completion of the work plan of the fellow.

        (B) An assessment of the impact of the fellowship on the fellows.

        (C) An assessment of the accomplishment of the purposes of the program.

        (D) An assessment of the impact of the fellow on the community.

    (e) TRUST FUND-

      (1) ESTABLISHMENT- There is established the Congressional Hunger Fellows Trust Fund (hereinafter in this section referred to as the ‘Fund’) in the Treasury of the United States, consisting of amounts appropriated to the Fund under subsection (i), amounts credited to it under paragraph (3), and amounts received under subsection (g)(3)(A).

      (2) INVESTMENT OF FUNDS- The Secretary of the Treasury shall invest the full amount of the Fund. Each investment shall be made in an interest bearing obligation of the United States or an obligation guaranteed as to principal and interest by the United States that, as determined by the Secretary in consultation with the Board, has a maturity suitable for the Fund.

      (3) RETURN ON INVESTMENT- Except as provided in subsection (f)(2), the Secretary of the Treasury shall credit to the Fund the interest on, and the proceeds from the sale or redemption of, obligations held in the Fund.

    (f) EXPENDITURES; AUDITS-

      (1) IN GENERAL- The Secretary of the Treasury shall transfer to the program from the amounts described in subsection (e)(3) and subsection (g)(3)(A) such sums as the Board determines are necessary to enable the program to carry out the provisions of this section.

      (2) LIMITATION- The Secretary may not transfer to the program the amounts appropriated to the Fund under subsection (i).

      (3) USE OF FUNDS- Funds transferred to the program under paragraph (1) shall be used for the following purposes:

        (A) STIPENDS FOR FELLOWS- To provide for a living allowance for the fellows.

        (B) TRAVEL OF FELLOWS- To defray the costs of transportation of the fellows to the fellowship placement sites.

        (C) INSURANCE- To defray the costs of appropriate insurance of the fellows, the program, and the Board.

        (D) TRAINING OF FELLOWS- To defray the costs of preservice and midservice education and training of fellows.

        (E) SUPPORT STAFF- Staff described in subsection (g).

        (F) AWARDS- End-of-service awards under subsection (d)(3)(D)(iii)(II).

        (G) ADDITIONAL APPROVED USES- For such other purposes that the Board determines appropriate to carry out the program.

      (4) AUDIT BY GAO-

        (A) IN GENERAL- The Comptroller General of the United States shall conduct an annual audit of the accounts of the program.

        (B) BOOKS- The program shall make available to the Comptroller General all books, accounts, financial records, reports, files, and all other papers, things, or property belonging to or in use by the program and necessary to facilitate such audit.

        (C) REPORT TO CONGRESS- The Comptroller General shall submit a copy of the results of each such audit to the Congress.

    (g) STAFF; POWERS OF PROGRAM-

      (1) EXECUTIVE DIRECTOR-

        (A) IN GENERAL- The Board shall appoint an Executive Director of the program who shall administer the program. The Executive Director shall carry out such other functions consistent with the provisions of this section as the Board shall prescribe.

        (B) RESTRICTION- The Executive Director may not serve as Chairperson of the Board.

        (C) COMPENSATION- The Executive Director shall be paid at a rate not to exceed the rate of basic pay payable for level V of the Executive Schedule under section 5316 of title 5, United States Code.

      (2) STAFF-

        (A) IN GENERAL- With the approval of a majority of the Board, the Executive Director may appoint and fix the pay of additional personnel as the Executive Director considers necessary and appropriate to carry out the functions of the provisions of this section.

        (B) COMPENSATION- An individual appointed under subparagraph (A) shall be paid at a rate not to exceed the rate of basic pay payable for level GS-15 of the General Schedule.

      (3) POWERS- In order to carry out the provisions of this section, the program may perform the following functions:

        (A) GIFTS- The program may solicit, accept, use, and dispose of gifts, bequests, or devises of services or property, both real and personal, for the purpose of aiding or facilitating the work of the program. Gifts, bequests, or devises of money and proceeds from sales of other property received as gifts, bequests, or devises shall be deposited in the Fund and shall be available for disbursement upon order of the Board.

        (B) EXPERTS AND CONSULTANTS- The program may procure temporary and intermittent services under section 3109 of title 5, United States Code, but at rates for individuals not to exceed the daily equivalent of the maximum annual rate of basic pay payable for GS-15 of the General Schedule.

        (C) CONTRACT AUTHORITY- The program may contract, with the approval of a majority of the members of the Board, with and compensate Government and private agencies or persons without regard to section 3709 of the Revised Statutes (41 U.S.C. 5).

        (D) OTHER NECESSARY EXPENDITURES- The program shall make such other expenditures which the program considers necessary to carry out the provisions of this section, but excluding project development.

    (h) REPORT- Not later than December 31 of each year, the Board shall submit to Congress a report on the activities of the program carried out during the previous fiscal year, and shall include the following:

      (1) An analysis of the evaluations conducted under subsection (d)(4) (relating to evaluations of the Emerson and Leland fellowships and accomplishment of the program purposes) during that fiscal year.

      (2) A statement of the total amount of funds attributable to gifts received by the program in that fiscal year (as authorized under subsection (g)(3)(A)), and the total amount of such funds that were expended to carry out the program that fiscal year.

    (i) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated $18,000,000 to carry out the provisions of this section.

SEC. 462. GENERAL EFFECTIVE DATE.

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

TITLE V--CREDIT

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

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

    (b) Section 321(a) of such Act (7 U.S.C. 1961(a)) is amended by striking ‘or joint operations’ each place it appears and inserting ‘joint operations, or limited liability companies’.

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

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

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

    (a) IN GENERAL- Section 331(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981(b)) is amended--

      (1) by redesignating paragraphs (2) through (9) as paragraphs (3) through (10), respectively; and

      (2) by inserting after paragraph (1) the following:

      ‘(2) administer the loan guarantee program under section 339(c) through central offices established in States or in multi-State areas, or through contracts with commercial or cooperative lenders;’.

    (b) CONFORMING AMENDMENT- Section 331(c) of such Act (7 U.S.C. 1981(c)) is amended by striking ‘(b)(5)’ and inserting ‘(b)(6)’.

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

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

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

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

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

    Section 339 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1989) is amended--

      (1) in subsection (c)(4)(A), by inserting ‘, except that the Secretary may guarantee such lesser percentage as the Secretary determines appropriate of such a loan if the income of the borrower is less than the income necessary to meet the requirements of subsection (b)’ before the period; and

      (2) in subsection (d)(4)(A), by inserting ‘, except that the Secretary may guarantee such lesser percentage as the Secretary determines appropriate of such a loan if the income of the borrower is less than the income necessary to meet the requirements of subsection (b)’ before the semicolon.

SEC. 507. TIMING OF LOAN ASSESSMENTS.

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

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

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

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

    ‘The Secretary shall employ personnel of a State, county or area committee established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C 590h(b)(5)) to make and service loans under this title to the extent the personnel have been trained to do so.’.

    (b) INAPPLICABILITY OF FINALITY RULE- Section 281(a)(1) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 7001(a)(1)) is amended by inserting ‘, except functions performed pursuant to section 376 of the Consolidated Farm and Rural Development Act’ before the period.

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

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

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

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

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

    (a) LOAN AUTHORITY- Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended--

      (1) in each of the 1st and 3rd sentences--

        (A) by striking ‘a natural disaster in the United States or by’ and inserting ‘a quarantine imposed by the Secretary under the Plant Protection Act or the animal quarantine laws (as defined in section 2509 of the Food, Agriculture, Conservation, and Trade Act of 1990), an economic emergency resulting from sharply increasing energy costs as described in section 329(b), a natural disaster in the United States, or’; and

        (B) by inserting ‘Robert T. Stafford’ before ‘Disaster Relief and Emergency Assistance Act’; and

      (2) in the 4th sentence--

        (A) by striking ‘a natural disaster’ and inserting ‘such a quarantine, economic emergency, or natural disaster’; and

        (B) by striking ‘by such natural disaster’ and inserting ‘by such quarantine, economic emergency, or natural disaster’.

    (b) CONFORMING AMENDMENT- Section 323 of such Act (7 U.S.C. 1963) is amended--

      (1) by inserting ‘quarantine,’ before ‘natural disaster’; and

      (2) by inserting ‘referred to in section 321(a), including, notwithstanding any other provision of this title, an economic emergency resulting from sharply increasing energy costs as described in section 329(b)’ after ‘emergency’.

    (c) SHARPLY INCREASING ENERGY COSTS- Section 329 of such Act (7 U.S.C. 1969) is amended--

      (1) by striking all that precedes ‘Secretary shall’ and inserting the following:

‘SEC. 329. LOSS CONDITIONS.

    ‘(a) IN GENERAL- Except as provided in subsection (b), the’; and

      (2) by adding after and below the end the following:

    ‘(b) LOSS RESULTING FROM SHARPLY INCREASING ENERGY COSTS- The Secretary shall make financial assistance under this subtitle available to any applicant seeking assistance based on an income loss resulting from

sharply increasing energy costs referred to in section 323 if--

      ‘(1) the price of electricity, gasoline, diesel fuel, natural gas, propane, or other equivalent fuel during any 3-month period is at least 50 percent greater than the average price of the same form of energy during the preceding 5 years, as determined by the Secretary; and

      ‘(2) the income loss of the applicant is directly related to expenses incurred to prevent livestock mortality, the degradation of a perishable agricultural commodity, or damage to a field crop.’.

    (c) MAXIMUM AMOUNT OF LOAN- Section 324(a) of such Act (7 U.S.C. 1964(a)) is amended--

      (1) by striking ‘or’ at the end of paragraph (1);

      (2) by striking the period at the end of paragraph (2) and inserting ‘; or’; and

      (3) by adding at the end the following:

      ‘(3) in the case of a loan made in response to a quarantine or economic emergency referred to in section 321, exceeds $200,000.’.

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

    Section 331(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981(d)) is amended--

      (1) in the heading by striking ‘TEMPORARY’; and

      (2) in paragraph (5), by striking ‘2002’ and inserting ‘2011’.

SEC. 512. AUTHORIZATION FOR LOANS.

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

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

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

SEC. 514. EXTENSION OF INTEREST RATE REDUCTION PROGRAM.

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

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

    (a) IN GENERAL- Section 310E(b)(3) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1935(b)(3)) is amended by striking ‘10’ and inserting ‘15’.

    (b) CONFORMING AMENDMENT- Section 310E(c)(3)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1935(c)(3)(B)) is amended by striking ‘10-year’ and inserting ‘15-year’.

SEC. 516. HORSE BREEDER LOANS.

    (a) DEFINITION OF HORSE BREEDER- In this section, the term ‘horse breeder’ means a person that, as of the date of the enactment of this Act, derives more than 70 percent of the income of the person from the business of breeding, boarding, raising, training, or selling horses, during the shorter of--

      (1) the 5-year period ending on January 1, 2001; or

      (2) the period the person has been engaged in the business.

    (b) LOAN AUTHORIZATION- The Secretary shall make a loan to an eligible horse breeder to assist the breeder for losses suffered as a result of mare reproductive loss syndrome.

    (c) ELIGIBILITY- A horse breeder shall be eligible for a loan under this section if the Secretary determines that, as a result of mare reproductive loss syndrome--

      (1) during the period beginning January 1, 2000, and ending October 1, 2000, or during the period beginning January 1, 2001, and ending October 1, 2001--

        (A) 30 percent or more of the mares owned by the breeder failed to conceive, miscarried, aborted, or otherwise failed to produce a live healthy foal; or

        (B) 30 percent or more of the mares boarded on a farm owned, operated, or leased by the breeder failed to conceive, miscarried, aborted, or otherwise failed to produce a live healthy foal;

      (2) during the period beginning January 1, 2000, and ending on September 30, 2002, the breeder was unable to meet the financial obligations, or pay the ordinary and necessary expenses, of the breeder incurred in connection with breeding, boarding, raising, training, or selling horses; and

      (3) the breeder is not able to obtain sufficient credit elsewhere (within the meaning of section 321(a) of the Consolidated Farm and Rural Development Act).

    (d) AMOUNT-

      (1) IN GENERAL- Subject to paragraph (2), the Secretary shall determine the amount of a loan to be made to a horse breeder under this section, on the basis of the amount of losses suffered by the breeder, and the financial needs of the breeder, as a result of mare reproductive loss syndrome.

      (2) MAXIMUM AMOUNT- The amount of a loan made under this section shall not exceed $500,000.

    (e) TERM-

      (1) IN GENERAL- Subject to paragraph (2), the term for repayment of a loan made to a horse breeder under this section shall be determined by the Secretary based on the ability of the breeder to repay the loan.

      (2) MAXIMUM TERM- The term of a loan made under this section shall not exceed 15 years.

    (f) INTEREST RATE- Interest shall be payable on a loan made under this section, at the rate prescribed under section 324(b)(1) of the Consolidated Farm and Rural Development Act.

    (g) SECURITY- Security shall be required on a loan made under this section, in accordance with section 324(d) of the Consolidated Farm and Rural Development Act.

    (h) APPLICATION- To be eligible to obtain a loan under this section, a horse breeder shall submit to the Secretary an application for the loan not later than September 30, 2002.

    (i) FUNDING- The Secretary shall carry out this section using funds available for emergency loans under subtitle C of the Consolidated Farm and Rural Development Act.

    (j) TERMINATION- The authority provided by this section shall terminate on September 30, 2003.

TITLE VI--RURAL DEVELOPMENT

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

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

SEC. 602. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANTS.

    Section 231(a)(1) of the Agricultural Risk Protection Act of 2000 (Public Law 106-224; 7 U.S.C. 1621 note) is amended by striking ‘Of the amount made available under section 261(a)(2), $15,000,000 shall be used by the Secretary’ and inserting ‘For each of the fiscal years 2002 through 2011, the Secretary shall use $50,000,000 of funds of the Commodity Credit Corporation’.

SEC. 603. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.

    (a) PURPOSES- The purposes of this section are to carry out a demonstration program under which agricultural producers are provided--

      (1) technical assistance, including engineering services, applied research, scale production, and similar services to enable the producers to establish businesses for further processing of agricultural products;

      (2) marketing, market development, and business planning;

      (3) overall organizational, outreach, and development assistance to increase the viability, growth, and sustainability of value-added agricultural businesses.

    (b) NATURE OF PROGRAM- The Secretary of Agriculture (in this section referred to as the ‘Secretary’) shall--

      (1) make grants to eligible applicants for the purposes of enabling the applicants to obtain the assistance described in subsection (a); and

      (2) provide assistance to eligible applicants through the research and technical services of the Department of Agriculture.

    (c) ELIGIBILITY REQUIREMENTS-

      (1) IN GENERAL- An applicant shall be eligible for a grant and assistance described in subsection (b) to establish an Agriculture Innovation Center if--

        (A) the applicant--

          (i) has provided services similar to those described in subsection (a); or

          (ii) shows the capability of providing the services;

        (B) the application of the applicant for the grant and assistance sets forth a plan, in accordance with regulations which shall be prescribed by the Secretary, outlining support of the applicant in the agricultural community, the technical and other expertise of the applicant, and the goals of the applicant for increasing and improving the ability of local producers to develop markets and processes for value-added agricultural products;

        (C) the applicant demonstrates that resources (in cash or in kind) of definite value are available, or have been committed to be made available, to the applicant, to increase and improve the ability of local producers to develop markets and processes for value-added agricultural products; and

        (D) the applicant meets the requirement of paragraph (2).

      (2) BOARD OF DIRECTORS- The requirement of this paragraph is that the applicant shall have a board of directors comprised of representatives of the following groups:

        (A) The 2 general agricultural organizations with the greatest number of members in the State in which the applicant is located.

        (B) The Department of Agriculture or similar State organization or department, for the State.

        (C) Organizations representing the 4 highest grossing commodities produced in the State, according to annual gross cash sales.

    (d) GRANTS AND ASSISTANCE-

      (1) IN GENERAL- Subject to subsection (g), the Secretary shall make annual grants to eligible applicants under this section, each of which grants shall not exceed the lesser of--

        (A) $1,000,000; or

        (B) twice the dollar value of the resources (in cash or in kind) that the applicant has demonstrated are available, or have been committed to be made available, to the applicant in accordance with subsection (c)(1)(C).

      (2) INITIAL LIMITATION- In the first year of the demonstration program under this section, the Secretary shall make grants under this section, on a competitive basis, to not more than 5 eligible applicants.

      (3) EXPANSION OF DEMONSTRATION PROGRAM- In the second year of the demonstration program under this section, the Secretary may make grants under this section to not more than 10 eligible applicants, in addition to any entities to which grants are made under paragraph (2) for such year.

      (4) STATE LIMITATION- In the first 3 years of the demonstration program under this section, the Secretary shall not make an Agricultural Innovation Center Demonstration Program grant under this section to more than 1 entity in a single State.

    (e) USE OF FUNDS- An entity to which a grant is made under this section may use the grant only for the following purposes, but only to the extent that the use is not described in section 231(d) of the Agricultural Risk Protection Act of 2000:

      (1) Applied research.

      (2) Consulting services.

      (3) Hiring of employees, at the discretion of the board of directors of the entity.

      (4) The making of matching grants, each of which shall be not more than $5,000, to agricultural producers, so long as the aggregate amount of all such matching grants shall be not more than $50,000.

      (5) Legal services.

    (f) RULE OF INTERPRETATION- This section shall not be construed to prevent a recipient of a grant under this section from collaborating with any other institution with respect to activities conducted using the grant.

    (g) AVAILABILITY OF FUNDS- Of the amount made available under section 231(a)(1) of the Agricultural Risk Protection Act of 2000 (Public Law 106-224; 7 U.S.C. 1621 note), the Secretary shall use to carry out this section--

      (1) not less than $5,000,000 for fiscal year 2002; and

      (2) not less than $10,000,000 for each of the fiscal years 2003 and 2004.

    (h) REPORT ON BEST PRACTICES-

      (1) EFFECTS ON THE AGRICULTURAL SECTOR- The Secretary shall utilize $300,000 per year of the funds made available pursuant to this section to support research at any university into the effects of value-added projects on agricultural producers and the commodity markets. The research should systematically examine possible effects on demand for agricultural commodities, market prices, farm income, and Federal outlays on commodity programs using linked, long-term, global projections of the agricultural sector.

      (2) DEPARTMENT OF AGRICULTURE- Not later than 3 years after the first 10 grants are made under this section, the Secretary shall prepare and submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and to the Committee on Agriculture of the House of Representatives a written report on the effectiveness of the demonstration program conducted under this section at improving the production of value-added agricultural products and on the effects of the program on the economic viability of the producers, which shall include the best practices and innovations found at each of the Agriculture Innovation Centers established under the demonstration program under this section, and detail the number and type of agricultural projects assisted, and the type of assistance provided, under this section.

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

    (a) FUNDING- In each of fiscal years 2002 through 2011, the Secretary of Agriculture shall use $30,000,000 of the funds of the Commodity Credit Corporation to carry out section 306A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926a).

    (b) EXTENSION OF PROGRAM- Section 306A(i) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926a(i)) is amended by striking ‘2002’ and inserting ‘2011’.

    (c) MISCELLANEOUS AMENDMENTS- Section 306A of such Act (7 U.S.C. 1926a) is amended--

      (1) in the heading by striking emergency’;

      (2) in subsection (a)(1)--

        (A) by striking ‘after’ and inserting ‘when’; and

        (B) by inserting ‘is imminent’ after ‘communities’; and

      (3) in subsection (c), by striking ‘shall--’ and all that follows and inserting ‘shall be a public or private nonprofit entity.’.

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

    Section 4 of the Rural Electrification Act of 1936 (7 U.S.C. 904) is amended--

      (1) by inserting ‘(a)’ before ‘The Secretary’; and

      (2) by adding after and below the end the following:

    ‘(b) LOAN GUARANTEES FOR THE FINANCING OF THE PURCHASE OF RENEWABLE ENERGY SYSTEMS- The Secretary may provide a loan guarantee, on such terms and conditions as the Secretary deems appropriate, for the purpose of financing the purchase of a renewable energy system, including a wind energy system and anaerobic digestors for the purpose of energy generation, by any person or individual who is a farmer, a rancher, or an owner of a small business (as defined by the Secretary) that is located in a rural area (as defined by the Secretary). In providing guarantees under this subsection, the Secretary shall give priority to loans used primarily for power generation on a farm, ranch, or small business (as so defined).’.

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

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

SEC. 607. RURAL BUSINESS OPPORTUNITY GRANTS.

    Section 306(a)(11)(D) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 608. GRANTS FOR WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    Section 306D(d)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926d(d)(1)) is amended by striking ‘and 2002’ and inserting ‘through 2011’.

SEC. 609. RURAL COOPERATIVE DEVELOPMENT GRANTS.

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

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

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

SEC. 611. RURAL VENTURE CAPITAL DEMONSTRATION PROGRAM.

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

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

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

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

    (a) DEVELOPMENT-

      (1) SELECTION OF STATES- The Secretary of Agriculture (in this section referred to as the ‘Secretary’) shall select 10 States in which to implement strategic regional development plans developed under this subsection.

      (2) GRANTS-

        (A) AUTHORITY-

          (i) IN GENERAL- From the funds made available to carry out this subsection, the Secretary shall make a matching grant to 1 or more entities in each State selected under subsection (a), to develop a strategic regional development plan that provides for rural economic development in a region in the State in which the entity is located.

          (ii) PRIORITY- In making grants under this subsection, the Secretary shall give priority to entities that represent a regional coalition of community-based planning, development, governmental, and business organizations.

        (B) TERMS OF MATCH- In order for an entity to be eligible for a matching grant under this subsection, the entity shall make a commitment to the Secretary to provide funds for the development of a strategic regional development plan of the kind referred to in subparagraph (A) in an amount that is not less than the amount of the matching grant.

        (C) LIMITATION- The Secretary shall not make a grant under this subsection in an amount that exceeds $150,000.

      (3) FUNDING-

        (A) IN GENERAL- The Secretary shall use $2,000,000 of the funds of the Commodity Credit Corporation in each of fiscal years 2002 through 2011 to carry out this subsection.

        (B) AVAILABILITY- Funds made available pursuant to subparagraph (A) shall remain available without fiscal year limitation.

    (b) STRATEGIC PLANNING IMPLEMENTATION-

      (1) The Secretary shall use the authorities provided in the provisions of law specified in section 793(c)(1)(A)(ii) of the Federal Agriculture Improvement and Reform Act of 1996 to implement the strategic regional development plans developed pursuant to subsection (a) of this section.

      (2) FUNDING-

        (A) IN GENERAL- The Secretary shall use $13,000,000 of the funds of the Commodity Credit Corporation in each of fiscal years 2002 through 2011 to carry out this subsection.

        (B) AVAILABILITY- Funds made available pursuant to subparagraph (A) shall remain available without fiscal year limitation.

    (c) USE OF FUNDS- The amounts made available under subsections (a) and (b) may be used as the Secretary deems appropriate to carry out any provision of this section.

SEC. 614. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE CONSTRUCTION, REFURBISHING, AND SERVICING OF INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN RURAL AREAS FOR INDIVIDUALS WITH LOW OR MODERATE INCOMES.

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

‘SEC. 306E. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE CONSTRUCTION, REFURBISHING, AND SERVICING OF INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN RURAL AREAS FOR INDIVIDUALS WITH LOW OR MODERATE INCOMES.

    ‘(a) DEFINITION OF ELIGIBLE INDIVIDUAL- In this section, the term ‘eligible individual’ means an individual who is a member of a household, the combined income of whose members for the most recent 12-month period for which the information is available, is not more than 100 percent of the median nonmetropolitan household income for the State or territory in which the individual resides, according to the most recent decennial census of the United States.

    ‘(b) GRANTS- The Secretary may make grants to private nonprofit organizations for the purpose of assisting eligible individuals in obtaining financing for the construction, refurbishing, and servicing of individual household water well systems in rural areas that are owned (or to be owned) by the eligible individuals.

    ‘(c) USE OF FUNDS- A grant made under this section may be--

      ‘(1) used, or invested to provide income to be used, to carry out subsection (b); and

      ‘(2) used to pay administrative expenses associated with providing the assistance described in subsection (b).

    ‘(d) PRIORITY IN AWARDING GRANTS- In awarding grants under this section, the Secretary shall give priority to an applicant that has substantial expertise and experience in promoting the safe and productive use of individually-owned household water well systems and ground water.’.

    (b) EFFECTIVE DATE- The amendment made by this section takes effect on October 1, 2001.

SEC. 615. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

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

‘SEC. 381P. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

    ‘(a) RURAL AREA DEFINED- In this section, the term ‘rural area’ means such areas as the Secretary may determine.

    ‘(b) ESTABLISHMENT- There is established a National Rural Development Partnership (in this section referred to as the ‘Partnership’), which shall be composed of--

      ‘(1) the National Rural Development Coordinating Committee established in accordance with subsection (c); and

      ‘(2) State rural development councils established in accordance with subsection (d).

    ‘(c) NATIONAL RURAL DEVELOPMENT COORDINATING COMMITTEE-

      ‘(1) COMPOSITION- The National Rural Development Coordinating Committee (in this section referred to as the ‘Coordinating Committee’) may be composed of--

        ‘(A) representatives of all Federal departments and agencies with policies and programs that affect or benefit rural areas;

        ‘(B) representatives of national associations of State, regional, local, and tribal governments and intergovernmental and multi-jurisdictional agencies and organizations;

        ‘(C) national public interest groups; and

        ‘(D) other national nonprofit organizations that elect to participate in the activities of the Coordinating Committee.

      ‘(2) FUNCTIONS- The Coordinating Committee may--

        ‘(A) provide support for the work of the State rural development councils established in accordance with subsection (d); and

        ‘(B) develop and facilitate strategies to reduce or eliminate conflicting or duplicative administrative and regulatory impediments confronting rural areas.

    ‘(d) STATE RURAL DEVELOPMENT COUNCILS-

      ‘(1) COMPOSITION- A State rural development council may--

        ‘(A) be composed of representatives of Federal, State, local, and tribal governments, and nonprofit organizations, the private sector, and other entities committed to rural advancement; and

        ‘(B) have a nonpartisan and nondiscriminatory membership that is broad and representative of the economic, social, and political diversity of the State.

      ‘(2) FUNCTIONS- A State rural development council may--

        ‘(A) facilitate collaboration among Federal, State, local, and tribal governments and the private and non-profit sectors in the planning and implementation of programs and policies that affect the rural areas of the State, and to do so in such a way that provides the greatest degree of flexibility and innovation in responding to the unique needs of the State and the rural areas; and

        ‘(B) in conjunction with the Coordinating Committee, develop and facilitate strategies to reduce or eliminate conflicting or duplicative administrative and regulatory impediments confronting the rural areas of the State.

    ‘(e) ADMINISTRATION OF THE PARTNERSHIP- The Secretary may provide for any additional support staff to the Partnership as the Secretary determines to be necessary to carry out the duties of the Partnership.

    ‘(f) TERMINATION- The authority provided by this section shall terminate on the date that is 5 years after the date of the enactment of this section.’.

TITLE VII--RESEARCH AND RELATED MATTERS

Subtitle A--Extensions

SEC. 700. MARKET EXPANSION RESEARCH.

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

SEC. 701. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

    Section 2381(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking ‘2002’ and inserting ‘2011’.

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

    Section 1417(l) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(l)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 703. POLICY RESEARCH CENTERS.

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

SEC. 704. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH PROGRAM.

    Section 1424(d) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 705. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL RESEARCH.

    Section 1424A(d) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7

U.S.C. 3174a(d)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 706. NUTRITION EDUCATION PROGRAM.

    Section 1425(c)(3) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(3)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 707. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.

    Section 1433(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 708. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL PROBLEMS.

    Section 1434(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 709. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE UNIVERSITY.

    Section 1447(b) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by striking ‘2002’ and inserting ‘2011’.

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

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

SEC. 711. HISPANIC-SERVING INSTITUTIONS.

    Section 1455(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 712. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE AND EDUCATION PROGRAMS.

    Section 1459A(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 713. UNIVERSITY RESEARCH.

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

SEC. 714. EXTENSION SERVICE.

    Section 1464 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 715. SUPPLEMENTAL AND ALTERNATIVE CROPS.

    Section 1473D(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 716. AQUACULTURE RESEARCH FACILITIES.

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

SEC. 717. RANGELAND RESEARCH.

    Section 1483(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 718. NATIONAL GENETICS RESOURCES PROGRAM.

    Section 1635(b) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5844(b)) is amended by striking ‘1995’ and inserting ‘2011’.

SEC. 719. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

    Section 1672(h) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925(h)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 720. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.

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

SEC. 721. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

    Section 1673(h) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5926(h)) is amended by striking ‘2002’ and inserting ‘2011’.

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

    (a) AUTHORIZATION OF APPROPRIATIONS- Section 1664(g)(1) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5908(g)(1)) is amended by striking ‘2002’ and inserting ‘2011’.

    (b) CAPITALIZATION- Section 1664(g)(2) of such Act (7 U.S.C. 5908(g)(2)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 723. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

    Section 1680(c)(1) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 724. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT QUALITY RESEARCH.

    Section 402(g) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 725. BIOBASED PRODUCTS.

    (a) PILOT PROJECT- Section 404(e)(2) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7624(e)(2)) is amended by striking ‘2001’ and inserting ‘2011’.

    (b) AUTHORIZATION OF APPROPRIATIONS- Section 404(h) of such Act (7 U.S.C. 7624(h)) is amended by striking ‘2002’ and inserting ‘2011’.

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

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

SEC. 727. INSTITUTIONAL CAPACITY BUILDING GRANTS.

    (a) GENERALLY- Section 535(b)(1) of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note) is amended by striking ‘2000’ and inserting ‘2011’.

    (b) AUTHORIZATION OF APPROPRIATIONS- Section 535(c) of such Act is amended by striking ‘2000’ and inserting ‘2011’.

SEC. 728. 1994 INSTITUTION RESEARCH GRANTS.

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

SEC. 729. ENDOWMENT FOR 1994 INSTITUTIONS.

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

SEC. 730. PRECISION AGRICULTURE.

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

SEC. 731. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.

    Section 405(h) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 732. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, TRITICALE, AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY TILLETIA INDICA.

    Section 408(e) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 733. OFFICE OF PEST MANAGEMENT POLICY.

    Section 614(f) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by striking ‘2002’ and inserting ‘2011’.

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

    Section 1408(h) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 735. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODITIES AND FOREST PRODUCTS.

    Section 1419(d) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended by striking ‘2002’ and inserting ‘2011’.

SEC. 736. BIOMASS RESEARCH AND DEVELOPMENT.

    Title III of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 7624 note) is amended--

      (1) in section 307(f), by striking ‘2005’ and inserting ‘2011’; and

      (2) in section 310, by striking ‘2005’ and inserting ‘2011’.

SEC. 737. AGRICULTURAL EXPERIMENT STATIONS RESEARCH FACILITIES.

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

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

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

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

    Section 1431 of the National Agricultural Research, Extension, and Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 1556) is amended by striking ‘2002’ and inserting ‘2011’.

Subtitle B--Modifications

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

    (a) AUTHORIZATION OF APPROPRIATIONS- Section 534(a)(1)(A) of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note) is amended by striking ‘$50,000’ and inserting ‘$100,000’.

    (b) WITHDRAWALS AND EXPENDITURES- Section 533(c)(4)(A) of such Act is amended by striking ‘section 390(3)’ and all that follows through ‘1998))’ and inserting ‘section 2(a)(7) of the Tribally Controlled College or University Assistance Act of 1978)’.

    (c) ACCREDITATION- Section 533(a)(3) of such Act is amended by striking ‘under sections 534 and 535’ and inserting ‘under sections 534, 535, and 536’.

    (d) 1994 INSTITUTIONS- Section 532 of such Act is amended by striking paragraphs (1) through (30) and inserting the following:

      ‘(1) Bay Mills Community College.

      ‘(2) Blackfeet Community College.

      ‘(3) Cankdeska Cikana Community College.

      ‘(4) College of Menominee Nation.

      ‘(5) Crownpoint Institute of Technology.

      ‘(6) D-Q University.

      ‘(7) Dine College.

      ‘(8) Dull Knife Memorial College.

      ‘(9) Fond du Lac Tribal and Community College.

      ‘(10) Fort Belknap College.

      ‘(11) Fort Berthold Community College.

      ‘(12) Fort Peck Community College.

      ‘(13) Haskell Indian Nations University.

      ‘(14) Institute of American Indian and Alaska Native Culture and Arts Development.

      ‘(15) Lac Courte Oreilles Ojibwa Community College.

      ‘(16) Leech Lake Tribal College.

      ‘(17) Little Big Horn College.

      ‘(18) Little Priest Tribal College.

      ‘(19) Nebraska Indian Community College.

      ‘(20) Northwest Indian College.

      ‘(21) Oglala Lakota College.

      ‘(22) Salish Kootenai College.

      ‘(23) Sinte Gleska University.

      ‘(24) Sisseton Wahpeton Community College.

      ‘(25) Si Tanka/Huron University.

      ‘(26) Sitting Bull College.

      ‘(27) Southwestern Indian Polytechnic Institute.

      ‘(28) Stone Child College.

      ‘(29) Turtle Mountain Community College.

      ‘(30) United Tribes Technical College.’.

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

    Section 1404(4) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(4)) is amended--

      (1) by striking ‘and’ after subparagraph (D);

      (2) by striking the period at the end of subparagraph (E) and inserting ‘, or’; and

      (3) by adding at the end the following: ‘(F) is one of the 1994 Institutions (as defined in section 532 of the Equity in Educational Land-Grant Status Act of 1994).’.

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

    (a) PRIORITY MISSION AREAS- Section 401(c)(2) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7621(c)(2)) is amended--

      (1) by striking ‘and’ at the end of subparagraph (E);

      (2) by striking the period at the end of subparagraph (F) and inserting ‘; and’; and

      (3) by adding at the end the following new subparagraph:

        ‘(G) alternative fuels and renewable energy sources.’.

    (b) PRECISION AGRICULTURE- Section 403 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7623) is amended--

      (1) in subsection (a)(5)(F), by inserting ‘(including improved use of energy inputs)’ after ‘farm production efficiencies’; and

      (2) in subsection (d)--

        (A) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and

        (B) by inserting after paragraph (3) the following new paragraph:

      ‘(4) Improve on farm energy use efficiencies.’.

    (c) THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION- Section 405(a) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7625(a)) is amended by striking ‘and marketing’ and inserting ‘, marketing, and efficient use’.

    (d) COORDINATED PROGRAM OF RESEARCH, EXTENSION, AND EDUCATION TO IMPROVE VIABILITY OF SMALL- AND MEDIUM-SIZE DAIRY, LIVESTOCK, AND POULTRY OPERATIONS- Section 407(b)(3) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7627(b)(3)) is amended by inserting ‘(including improved use of energy inputs)’ after ‘poultry systems that increase efficiencies’.

    (e) SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, TRITICALE, AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY TILLETIA INDICA-

      (1) RESEARCH GRANT AUTHORIZED- Section 408(a) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7628(a)) is amended to read as follows:

    ‘(a) RESEARCH GRANT AUTHORIZED- The Secretary of Agriculture may make grants to consortia of land-grant colleges and universities to enhance the ability of the consortia to carry out multi-State research projects aimed at understanding and combating diseases of wheat, triticale, and barley caused by Fusarium graminearum and related fungi (referred to in this section as ‘wheat scab’) or by Tilletia indica and related fungi (referred to in this section as ‘Karnal bunt’).’.

      (2) RESEARCH COMPONENTS- Section 408(b) of such Act (7 U.S.C. 7628(b)) is amended--

        (A) in paragraph (1), by inserting ‘or of Karnal bunt,’ after ‘epidemiology of wheat scab’;

        (B) in paragraph (1), by inserting ‘, triticale,’ after ‘occurring in wheat’;

        (C) in paragraph (2), by inserting ‘or Karnal bunt’ after ‘wheat scab’;

        (D) in paragraph (3)(A), by striking ‘and barley for the presence of’ and inserting ‘, triticale, and barley for the presence of Karnal bunt or of’;

        (E) in paragraph (3)(B), by striking ‘and barley infected with wheat scab’ and inserting ‘, triticale, and barley infected with wheat scab or with Karnal bunt’;

        (F) in paragraph (3)(C), by inserting ‘wheat scab’ after ‘to render’;

        (G) in paragraph (4), by striking ‘and barley to wheat scab’ and inserting ‘, triticale, and barley to wheat scab and to Karnal bunt’; and

        (H) in paragraph (5)--

          (i) by inserting ‘and Karnal bunt’ after ‘wheat scab’; and

          (ii) by inserting ‘, triticale,’ after ‘resistant wheat’.

      (3) COMMUNICATIONS NETWORKS- Section 408(c) of such Act (7 U.S.C. 7628(c)) is amended by inserting ‘or Karnal bunt’ after ‘wheat scab’.

      (4) TECHNICAL AMENDMENTS- (A) The section heading for section 408 of such Act is amended by striking ‘and barley caused by fusarium graminearum’ and inserting ‘, triticale, and barley caused by fusarium graminearum or by tilletia indica’.

      (B) The table of sections for such Act is amended by striking ‘and barley caused by fusarium graminearum’ in the item relating to section 408 and inserting ‘, triticale, and barley caused by Fusarium graminearum or by Tilletia indica’.

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

    (a) AGRICULTURAL GENOME INITIATIVE- Section 1671(b) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5924(b)) is amended--

      (1) in paragraph (3), by inserting ‘pathogens and’ before ‘diseases causing economic hardship’;

      (2) in paragraph (6), by striking ‘and’ at the end;

      (3) by redesignating paragraph (7) as paragraph (8); and

      (4) by inserting after paragraph (6) the following new paragraph:

      ‘(7) reducing the economic impact of plant pathogens on commercially important crop plants; and’.

    (b) HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES- Section 1672(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is amended by adding at the end the following new paragraphs:

      ‘(25) RESEARCH TO PROTECT THE UNITED STATES FOOD SUPPLY AND AGRICULTURE FROM BIOTERRORISM- Research grants may be made under this section for the purpose of developing technologies, which support the capability to deal with the threat of agricultural bioterrorism.

      ‘(26) WIND EROSION RESEARCH AND EXTENSION- Research and extension grants may be made under this section for the purpose of validating wind erosion models.

      ‘(27) CROP LOSS RESEARCH AND EXTENSION- Research and extension grants may be made under this section for the purpose of validating crop loss models.

      ‘(28) LAND USE MANAGEMENT RESEARCH AND EXTENSION- Research and extension grants may be made under this section for the purposes of evaluating the environmental benefits of land use management tools such as those provided in the Farmland Protection Program.

      ‘(29) WATER AND AIR QUALITY RESEARCH AND EXTENSION- Research and extension grants may be made under this section for the purpose of better understanding agricultural impacts to air and water quality and means to address them.

      ‘(30) REVENUE AND INSURANCE TOOLS RESEARCH AND EXTENSION- Research and extension grants may be made under this section for the purposes of better understanding the impact of revenue and insurance tools on farm income.

      ‘(31) AGROTOURISM RESEARCH AND EXTENSION- Research and extension grants may be made under this section for the purpose of better understanding the economic, environmental, and food systems impacts on agrotourism.

      ‘(32) HARVESTING PRODUCTIVITY FOR FRUITS AND VEGETABLES- Research and extension grants may be made under this section for the purpose of improving harvesting productivity for fruits and vegetables (including citrus), including the development of mechanical harvesting technologies and effective, economical, and safe abscission compounds.

      ‘(33) NITROGEN-FIXATION BY PLANTS- Research and extension grants may be made under this section for the purpose of enhancing the nitrogen-fixing ability and efficiency of legumes, developing new varieties of legumes that fix nitrogen more efficiently, and developing new varieties of other commercially important crops that potentially are able to fix nitrogen.

      ‘(34) AGRICULTURAL MARKETING- Extension grants may be made under this section for the purpose of providing education materials, information, and outreach programs regarding commodity and livestock marketing strategies for agricultural producers and for cooperatives and other marketers of any agricultural commodity, including livestock.

      ‘(35) ENVIRONMENT AND PRIVATE LANDS RESEARCH AND EXTENSION- Research and extension grants may be made under this section for the purpose of researching the use of computer models to aid in assessment of best management practices on a watershed basis, working with government, industry, and private landowners to help craft industry-led solutions to identified environmental issues, researching and monitoring water, air, or soil environmental quality to aid in the development of new approaches to local environmental concerns, and working with local, State, and federal officials to help craft effective environmental solutions that respect private property rights and agricultural production realities.

      ‘(36) LIVESTOCK DISEASE RESEARCH AND EXTENSION- Research and extension grants may be made under this section for the purpose of identifying possible livestock disease threats, educating the public regarding livestock disease threats, training persons to deal with such threats, and conducting related research.’.

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

    (a) NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND ECONOMIC ADVISORY BOARD- Section 1408 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is amended--

      (1) in subsection (b)(3)--

        (A) by redesignating subparagraphs (R) through (DD) as subparagraphs (S) through (EE), respectively; and

        (B) by inserting after subparagraph (Q) the following new subparagraph:

        ‘(R) 1 member representing a nonland grant college or university with a historic commitment to research in the food and agricultural sciences.’;

      (2) in subsection (c)(1), by striking ‘and land-grant colleges and universities’ and inserting ‘, land-grant colleges and universities, and the Committee on Agriculture of the House of Representatives, the Committee on Agriculture, Nutrition, and Forestry of the Senate, the Subcommittee on Agriculture, Rural Development, Food and Drug Administration and Related Agencies of the Committee on Appropriations of the House of Representatives, and the Subcommittee on Agriculture, Rural Development and Related Agencies of the Committee on Appropriations of the Senate’; and

      (3) in subsection (d)(1), inserting ‘consult with any appropriate agencies of the Department of Agriculture and’ after ‘the Advisory Board shall’.

    (b) GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODITIES AND FOREST PRODUCTS- Section 1419 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154) is amended--

      (1) in subsection (a)(2), by inserting ‘and animal fats and oils’ after ‘industrial oilseed crops’; and

      (2) in subsection (a)(4), by inserting ‘or triglycerides’ after ‘other industrial hydrocarbons’.

    (c) FAS OVERSEAS INTERN PROGRAM- Section 1458(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3291(a)) is amended--

      (1) by striking ‘and’ at the end of paragraph (8);

      (2) by striking the period at the end of paragraph (9) and inserting ‘; and’; and

      (3) by adding at the end the following new paragraph:

      ‘(10) establish a program, to be coordinated by the Cooperative State Research, Education, and Extension Service and the Foreign Agricultural Service, to place interns from United States colleges and universities at Foreign Agricultural Service field offices overseas.’.

SEC. 746. BIOMASS RESEARCH AND DEVELOPMENT.

    Title III of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 7624 note) is amended--

      (1) in section 302(3), by inserting ‘or biodiesel’ after ‘such as ethanol’;

      (2) in section 303(3), by inserting ‘animal byproducts,’ after ‘fibers’; and

      (3) in section 306(b)(1)--

        (A) by redesignating subparagraphs (E) through (J) as subparagraphs (F) through (K), respectively; and

        (B) by inserting after subparagraph (D) the following new subparagraph:

        ‘(E) an individual affiliated with a livestock trade association;’.

SEC. 747. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

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

‘SEC. 1668. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

    ‘(a) PURPOSE- It is the purpose of this section--

      ‘(1) to authorize and support environmental assessment research to help identify and analyze environmental effects of biotechnology; and

      ‘(2) to authorize research to help regulators develop long-term policies concerning the introduction of such technology.

    ‘(b) GRANT PROGRAM- The Secretary of Agriculture shall establish a grant program within the Cooperative State Research, Education, and Extension Service and the Agricultural Research Service to provide the necessary funding for environmental assessment research concerning the introduction of genetically engineered plants and animals into the environment.

    ‘(c) TYPES OF RESEARCH- Types of research for which grants may be made under this section shall include the following:

      ‘(1) Research designed to identify and develop appropriate management practices to minimize physical and biological risks associated with genetically engineered animals and plants once they are introduced into the environment.

      ‘(2) Research designed to develop methods to monitor the dispersal of genetically engineered animals and plants.

      ‘(3) Research designed to further existing knowledge with respect to the characteristics, rates and methods of gene transfer that may occur between genetically engineered plants and animals and related wild and agricultural organisms.

      ‘(4) Environmental assessment research designed to provide analysis, which compares the relative impacts of plants and animals modified through genetic engineering to other types of production systems.

      ‘(5) Other areas of research designed to further the purposes of this section.

    ‘(d) ELIGIBILITY REQUIREMENTS- Grants under this section shall be--

      ‘(1) made on the basis of the quality of the proposed research project; and

      ‘(2) available to any public or private research or educational institution or organization.

    ‘(e) CONSULTATION- In considering specific areas of research for funding under this section, the Secretary of Agriculture shall consult with the Administrator of the Animal and Plant Health Inspection Service and the National Agricultural Research, Extension, Education, and Economics Advisory Board.

    ‘(f) PROGRAM COORDINATION- The Secretary of Agriculture shall coordinate research funded under this section with the Office of Research and Development of the Environmental Protection Agency in order to avoid duplication of research activities.

    ‘(g) AUTHORIZATION OF APPROPRIATIONS-

      ‘(1) IN GENERAL- There are authorized to be appropriated such sums as necessary to carry out this section.

      ‘(2) WITHHOLDINGS FROM BIOTECHNOLOGY OUTLAYS- The Secretary of Agriculture shall withhold from outlays of the Department of Agriculture for research on biotechnology, as defined and determined by the Secretary, at least one percent of such amount for the purpose of making grants under this section for research on biotechnology risk assessment. Except that, funding from this authorization should be collected and applied to the maximum extent practicable to risk assessment research on all categories identified as biotechnology by the Secretary.’.

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

    Section 2(a) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i(a)) is amended by adding at the end the following new paragraph:

      ‘(3) DETERMINATION OF HIGH PRIORITY RESEARCH- Research priorities shall be determined by the Secretary on an annual basis, taking into account input as gathered by the Secretary through the National Agricultural Research, Extension, Education, and Economics Advisory Board.’.

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

    Section 1449 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222d) is amended--

      (1) by amending subsection (c) to read as follows:

    ‘(c) MATCHING FORMULA- For each of fiscal years 2003 through 2011, the State shall provide matching funds from non-Federal sources. Such matching funds shall be for an amount equal to not less than 60 percent of the formula funds to be distributed to the eligible institution, and shall increase by 10 percent each fiscal year thereafter until fiscal year 2007.’;

      (2) by amending subsection (d) to read as follows:

    ‘(d) WAIVER AUTHORITY- Notwithstanding subsection (f), the Secretary may waive the matching funds requirement under subsection (c) above the 50 percent level for fiscal years 2003 through 2011 for an eligible institution of a State if the Secretary determines that the State will be unlikely to satisfy the matching requirement.’; and

      (3) by adding at the end the following new subsection:

    ‘(g) MATCHING FUNDS REQUIREMENT FOR THE LAND-GRANT COLLEGES IN THE UNITED STATES TERRITORIES-

      ‘(1) Land-grant colleges of the United States territories, including the Commonwealth of Puerto Rico, Guam, the Virgin Islands, the Northern Mariana Islands, American Samoa, and Micronesia, shall be excluded from the definition of eligible institution (as defined in subsection (a)(1)).

      ‘(2) MATCHING FORMULA- Notwithstanding any other provision of this subtitle, for fiscal years 2003 through 2011, the State shall provide matching funds from non-Federal sources in an amount equal to not less than 50 percent of the formula funds to be distributed to the eligible institution.

      ‘(3) WAIVER AUTHORITY- Notwithstanding subsection (f), the Secretary may waive the matching funds requirements under subsection (a)(2)(A) for any of fiscal years 2003 through 2011 for an eligible institution of a State if the Secretary determines that the territory will be unlikely to satisfy the matching requirement for that fiscal year.’.

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

    (a) FUNDING- Section 401(b)(1) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7621(b)(1)) is amended to read as follows:

      ‘(1) IN GENERAL- On October 1, 2003, and each October 1 thereafter through September 30, 2011, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer funds into the Account the aggregate of which shall equal $960,000,000. Such funds shall remain available until expended and, to the maximum extent practicable, shall be transferred in equal amounts for each fiscal year.’.

    (b) AVAILABILITY OF FUNDS- Section 401(f)(6) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7621(f)(6)) is amended to read as follows:

      ‘(6) AVAILABILITY OF FUNDS- Funds made available under this section to the Secretary prior to October 1, 2003, for grants under this section shall be available to the Secretary for a 2-year period.’.

SEC. 751. CARBON CYCLE RESEARCH.

    Section 221 of the Agricultural Risk Protection Act of 2000 (Public Law 106-224; 114 Stat. 407) is amended--

      (1) in subsection (a), by striking ‘Of the amount’ and all that follows through ‘to provide’ and inserting ‘To the extent funds are made available for this purpose, the Secretary shall provide’;

      (2) in subsection (d), by striking ‘under subsection (a)’ and inserting ‘for this section’; and

      (3) by adding at the end the following new subsection:

    ‘(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated for fiscal years 2002 through 2011 such sums as may be necessary to carry out this section.’

SEC. 752. DEFINITION OF FOOD AND AGRICULTURAL SCIENCES.

    Section 2(3) of the Research Facilities Act (7 U.S.C. 390(2)(3)) is amended to read as follows:

      ‘(3) FOOD AND AGRICULTURAL SCIENCES- The term ‘food and agricultural sciences’ has the meaning given that term in section 1404(8) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(8)).’.

SEC. 753. FEDERAL EXTENSION SERVICE.

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

Subtitle C--Related Matters

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

    (a) PURPOSE- It is the purpose of this section to promote and strengthen higher education in the food and agricultural sciences at agricultural and mechanical colleges located in the Commonwealth of Puerto Rico, the Virgin Islands of the United States, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau (hereinafter referred to in this section as ‘eligible institutions’) by formulating and administering programs to enhance teaching programs in agriculture, natural resources, forestry, veterinary medicine, home economics, and disciplines closely allied to the food and agriculture production and delivery system.

    (b) GRANTS- The Secretary shall make competitive grants to those eligible institutions having a demonstrable capacity to carry out the teaching of food and agricultural sciences.

    (c) USE OF GRANT FUNDS- Grants made under subsection (b) shall be used to--

      (1) strengthen institutional educational capacities, including libraries, curriculum, faculty, scientific instrumentation, instruction delivery systems, and student recruitment and retention, in order to respond to identified State, regional, national, or international education needs in the food and agricultural sciences;

      (2) attract and support undergraduate and graduate students in order to educate them in identified areas of national need to the food and agriculture sciences;

      (3) facilitate cooperative initiatives between two or more eligible institutions or between eligible institutions and units of State Government, organizational in the private sector, to maximize the development and use of resources such as faculty, facilities, and equipment to improve food and agricultural sciences teaching programs; and

      (4) conduct undergraduate scholarship programs to assist in meeting national needs for training food and agricultural scientists.

    (d) GRANT REQUIREMENTS-

      (1) The Secretary shall ensure that each eligible institution, prior to receiving grant funds under subsection (b), shall have a significant demonstrable commitment to higher educations programs in the food and agricultural sciences and to each specific subject area for which grant funds under this subsection are to be used.

      (2) The Secretary may require that any grant awarded under this section contain provisions that require funds to be targeted to meet the needs identified in section 1402 of the National Agriculture Research, Extension, and Teaching Policy Act of 1977.

    (e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as are necessary for each of the fiscal years 2002 through 2011 to carry out this section.

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

    (a) REVIEW OF PAYMENT OF COMPENSATION- Section 415(e) of the Plant Protection Act (7 U.S.C. 7715(e)) is amended by inserting before the final period the following: ‘or review by any officer of the Government other than the Secretary or the designee of the Secretary’.

    (b) REVIEW OF CERTAIN DECISIONS-

      (1) PLANT PROTECTION ACT- Section 442 of the Plant Protection Act (7 U.S.C. 7772) is amended by adding at the end following new subsection:

    ‘(f) SECRETARIAL DISCRETION- The action of any officer, employee, or agent of the Secretary in carrying out this section, including determining the amount of and making any payment authorized to be made under this section, shall not be subject to review by any officer of the Government other than the Secretary or the designee of the Secretary.’.

      (2) OTHER PLANT AND ANIMAL PEST AND DISEASE LAWS- Section 11 of the Act of May 29, 1884 (21 U.S.C. 114a; commonly known as the ‘Animal Industry Act’) and the first section of the Act of September 25, 1981 (7 U.S.C. 147b), are each amended by adding at the end the following new sentence: ‘The action of any officer, employee, or agent of the Secretary in carrying out this section, including determining the amount of and making any payment authorized to be made under this section, shall not be subject to review by any officer of the Government other than the Secretary or the designee of the Secretary.’.

    (c) METHYL BROMIDE- The Plant Protection Act (7 U.S.C. 7701 et seq.) is amended by inserting after section 418 the following new section:

‘SEC. 419. METHYL BROMIDE.

    ‘(a) IN GENERAL- The Secretary, upon request of State, local, or tribal authorities, shall determine whether methyl bromide treatments or applications required by

State, local, or tribal authorities to prevent the introduction, establishment, or spread of plant pests (including diseases) or noxious weeds should be authorized as an official control or official requirement.

    ‘(b) ADMINISTRATION-

      ‘(1) TIMELINE FOR DETERMINATION- The Secretary shall make the determination required by subsection (a) not later than 90 days after receiving the request for such a determination.

      ‘(2) REGULATIONS- The promulgation of regulations for and the administration of this section shall be made without regard to--

        ‘(A) the notice and comment provisions of section 553 of title 5, United States Code;

        ‘(B) the Statement of Policy of the Secretary of Agriculture, effective July 24, 1971 (36 Fed. Reg. 13804; relating to notices of proposed rulemaking and public participation in rulemaking); and

        ‘(C) chapter 35 of title 44, United States Code (commonly known as the ‘Paperwork Reduction Act’).

    ‘(c) REGISTRY- Not later than 180 days after the date of the enactment of this section, the Secretary shall publish, and thereafter maintain, a registry of State, local, and tribal requirements authorized by the Secretary under this section.’.

Subtitle D--Repeal of Certain Activities and Authorities

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

    (a) REPEAL- Subsections (b) and (c) of section 615 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7654(b) and (c)) are repealed.

    (b) CONFORMING AMENDMENTS-

      (1) GENERALLY- Section 615 of such Act is amended--

        (A) in the section heading, by striking ‘and national conference’;

        (B) by striking ‘(a) FOOD SAFETY RESEARCH INFORMATION OFFICE- ’;

        (C) by redesignating paragraphs (1), (2), and (3) as subsections (a), (b), and (c), respectively, and moving the margins 2 ems to the left;

        (D) in subsection (b) (as so redesignated), by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively, and moving the margins 2 ems to the left; and

        (E) in subsection (c) (as so redesignated), by striking ‘this subsection’ and inserting ‘this section’.

      (2) TABLE OF SECTIONS- The table of sections for such Act is amended by striking ‘and National Conference’ in the item relating to section 617.

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

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

SEC. 773. NATIONAL GENETIC RESOURCES PROGRAM.

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

SEC. 774. NATIONAL ADVISORY BOARD ON AGRICULTURAL WEATHER.

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

SEC. 775. AGRICULTURAL INFORMATION EXCHANGE WITH IRELAND.

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

SEC. 776. PESTICIDE RESISTANCE STUDY.

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

SEC. 777. EXPANSION OF EDUCATION STUDY.

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

SEC. 778. SUPPORT FOR ADVISORY BOARD.

    (a) REPEAL- Section 1412 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) is repealed.

    (b) CONFORMING AMENDMENT- Section 1413(c) of such Act (7 U.S.C. 3128(c)) is amended by striking ‘section 1412 of this title and’.

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

    (a) REPEAL- Section 4 of the Research Facilities Act (7 U.S.C. 390b) is repealed.

    (b) CONFORMING AMENDMENT- Section 2 of such Act (7 U.S.C. 390) is amended by striking paragraph (5).

Subtitle E--Agriculture Facility Protection

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

    (a) DEFINITIONS- The Research Facilities Act (7 U.S.C. 390 et seq.) is amended--

      (1) by redesignating section 6 as section 7; and

      (2) by inserting after section 5 the following new section:

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

    ‘(a) DEFINITIONS- For the purposes of this section, the following definitions apply:

      ‘(1) ANIMAL OR AGRICULTURAL ENTERPRISE- The term ‘animal or agricultural enterprise’ means any of the following:

        ‘(A) A commercial, governmental, or academic enterprise that uses animals, plants, or other biological materials for food or fiber production, breeding, processing, research, or testing.

        ‘(B) A zoo, aquarium, circus, rodeo, or other entity that exhibits or uses animals, plants, or other biological materials for educational or entertainment purposes.

        ‘(C) A fair or similar event intended to advance agricultural arts and sciences.

        ‘(D) A facility managed or occupied by an association, federation, foundation, council, or other group or entity of food or fiber producers, processors, or agricultural or biomedical researchers intended to advance agricultural or biomedical arts and sciences.

      ‘(2) ECONOMIC DAMAGE- The term ‘economic damage’ means the replacement of the following:

        ‘(A) The cost of lost or damaged property (including all real and personal property) of an animal or agricultural enterprise.

        ‘(B) The cost of repeating an interrupted or invalidated experiment.

        ‘(C) The loss of revenue (including costs related to business recovery) directly related to the disruption of an animal or agricultural enterprise.

        ‘(D) The cost of the tuition and expenses of any student to complete an academic program that was disrupted, or to complete a replacement program, when the tuition and expenses are incurred as a result of the damage or loss of the property of an animal or agricultural enterprise.

      ‘(3) PROPERTY OF AN ANIMAL OR AGRICULTURAL ENTERPRISE- The term ‘property of an animal or agricultural enterprise’ means real and personal property of or used by any of the following:

        ‘(A) An animal or agricultural enterprise.

        ‘(B) An employee of an animal or agricultural enterprise.

        ‘(C) A student attending an academic animal or agricultural enterprise.

      ‘(4) DISRUPTION- The term ‘disruption’ does not include any lawful disruption that results from lawful public, governmental, or animal or agricultural enterprise employee reaction to the disclosure of information about an animal or agricultural enterprise.

    ‘(b) VIOLATION- A person may not recklessly, knowingly, or intentionally cause, or contribute to, the disruption of the functioning of an animal or agricultural enterprise by damaging or causing the loss of any property of the animal or agricultural enterprise that results in economic damage, as determined by the Secretary.

    ‘(c) ASSESSMENT OF CIVIL PENALTY-

      ‘(1) IN GENERAL- The Secretary may impose on any person that the Secretary determines violates subsection (b) a civil penalty in an amount determined under paragraphs (2) and (3). The civil penalty may be assessed only on the record after an opportunity for a hearing.

      ‘(2) RECOVERY OF DEPARTMENT COSTS- The civil penalty assessed by the Secretary against a person for a violation of subsection (b) shall be not less than the total cost incurred by the Secretary for investigation of the violation, conducting any hearing regarding the violation, and assessing the civil penalty.

      ‘(3) RECOVERY OF ECONOMIC DAMAGE- In addition to the amount determined under paragraph (2), the amount of the civil penalty shall include the an amount not less than the total cost (or, in the case of knowing or intentional disruption, not less than 150 percent of the total cost) of the economic damage incurred by the animal or agricultural enterprise, any employee of the animal or agricultural enterprise, or any student attending an academic animal or agricultural enterprise as a result of the damage or loss of the property of an animal or agricultural enterprise.

    ‘(d) IDENTIFICATION- The Secretary shall identify for each civil penalty assessed under subsection (c), the portion of the amount of the civil penalty that represents the recovery of Department costs and the portion that represents the recovery of economic losses.

    ‘(e) OTHER FACTORS IN DETERMINING PENALTY- In determining the amount of a civil penalty under subsection (c), the Secretary shall consider the following:

      ‘(1) The nature, circumstance, extent, and gravity of the violation or violations.

      ‘(2) The ability of the injured animal or agricultural enterprise to continue to operate, costs incurred by the animal or agricultural enterprise to recover lost business, and the effect of the violation on earnings of employees of the animal or agricultural enterprise.

      ‘(3) The interruptions experienced by students attending an academic animal or agricultural enterprise.

      ‘(4) Whether the violator has previously violated subsection (a).

      ‘(5) The violator’s degree of culpability.

    ‘(f) FUND TO ASSIST VICTIMS OF DISRUPTION-

      ‘(1) FUND ESTABLISHED- There is established in the Treasury a fund which shall consist of that portion of each civil penalty collected under subsection (c) that represents the recovery of economic damages.

      ‘(2) USE OF AMOUNTS IN FUND- The Secretary of Agriculture shall use amounts in the fund to compensate animal or agricultural enterprises, employees of an animal or agricultural enterprise, and student attending an academic animal or agricultural enterprise for economic losses incurred as a result of the disruption of the functioning of an animal or agricultural enterprise in violation of subsection (b).’.

TITLE VIII--FORESTRY INITIATIVES

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

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

    (b) CONFORMING AMENDMENT- Section 246(b) of the Department of Agriculture Reorganization Act of

1994 (7 U.S.C. 6962(b)) is amended by striking paragraph (2).

SEC. 802. ESTABLISHMENT OF FOREST LAND ENHANCEMENT PROGRAM.

    (a) FINDINGS- Congress finds the following:

      (1) There is a growing dependence on private nonindustrial forest lands to supply the necessary market commodities and nonmarket values, such as habitat for fish and wildlife, aesthetics, outdoor recreation opportunities, and other forest resources, required by a growing population.

      (2) There is a strong demand for expanded assistance programs for owners of nonindustrial private forest land since the majority of the wood supply of the United States comes from nonindustrial private forest land.

      (3) The soil, carbon stores, water and air quality of the United States can be maintained and improved through good stewardship of nonindustrial private forest lands.

      (4) The products and services resulting from stewardship of nonindustrial private forest lands provide income and employment that contribute to the economic health and diversity of rural communities.

      (5) Wildfires threaten human lives, property, forests, and other resources, and Federal and State cooperation in forest fire prevention and control has proven effective and valuable, in that properly managed forest stands are less susceptible to catastrophic fire, as dramatized by the catastrophic fire seasons of 1998 and 2000.

      (6) Owners of private nonindustrial forest lands are being faced with increased pressure to convert their forestland to development and other uses.

      (7) Complex, long-rotation forest investments, including sustainable hardwood management, are often the most difficult commitment for small, nonindustrial private forest landowners and, thus, should receive equal consideration under cost-share programs.

      (8) The investment of one Federal dollar in State and private forestry programs is estimated to leverage $9 on average from State, local, and private sources.

    (b) PURPOSE- It is the purpose of this section to strengthen the commitment of the Department of Agriculture to sustainable forestry and to establish a coordinated and cooperative Federal, State, and local sustainable forest program for the establishment, management, maintenance, enhancement, and restoration of forests on nonindustrial private forest lands in the United States.

    (c) FOREST LAND ENHANCEMENT PROGRAM- The Cooperative Forestry Assistance Act of 1978 is amended by inserting after section 3 (16 U.S.C. 2102) the following new section 4:

‘SEC. 4. FOREST LAND ENHANCEMENT PROGRAM.

    ‘(a) ESTABLISHMENT-

      ‘(1) ESTABLISHMENT; PURPOSE- The Secretary shall establish a Forest Land Enhancement Program (in this section referred to as the ‘Program’) for the purpose of providing financial, technical, educational, and related assistance to State foresters to encourage the long-term sustainability of nonindustrial private forest lands in the United States by assisting the owners of such lands in more actively managing their forest and related resources by utilizing existing State, Federal, and private sector resource management expertise, financial assistance, and educational programs.

      ‘(2) ADMINISTRATION- The Secretary shall carry out the Program within, and administer the Program through, the Farm Service Agency.

      ‘(3) COORDINATION- The Secretary shall implement the Program in coordination with State foresters.

    ‘(b) PROGRAM OBJECTIVES- In implementing the Program, the Secretary shall target resources to achieve the following objectives:

      ‘(1) Investment in practices to establish, restore, protect, manage, maintain, and enhance the health and productivity of the nonindustrial private forest lands in the United States for timber, habitat for flora and fauna, water quality, and wetlands.

      ‘(2) Ensuring that afforestation, reforestation, improvement of poorly stocked stands, timber stand improvement, practices necessary to improve seedling growth and survival, and growth enhancement practices occur where needed to enhance and sustain the long-term productivity of timber and nontimber forest resources to help meet future public demand for all forest resources and provide environmental benefits.

      ‘(3) Reduce the risks and help restore, recover, and mitigate the damage to forests caused by fire, insects, invasive species, disease, and damaging weather.

      ‘(4) Increase and enhance carbon sequestration opportunities.

      ‘(5) Enhance implementation of agroforestry practices.

      ‘(6) Maintain and enhance the forest landbase and leverage State and local financial and technical assistance to owners that promote the same conservation and environmental values.

    ‘(c) ELIGIBILITY-

      ‘(1) IN GENERAL- An owner of nonindustrial private forest land is eligible for cost-sharing assistance under the Program if the owner--

        ‘(A) agrees to develop and implement an individual stewardship, forest, or stand management plan addressing site specific activities and practices in cooperation with, and approved by, the State forester, state official, or private sector program in consultation with the State forester;

        ‘(B) agrees to implement approved activities in accordance with the plan for a period of not less than 10 years, unless the State forester approves a modification to such plan; and

        ‘(C) meets the acreage restrictions as determined by the State forester in conjunction

with the State Forest Stewardship Coordinating Committee established under section 19.

      ‘(2) STATE PRIORITIES- The Secretary, in consultation with the State forester and the State Forest Stewardship Coordinating Committee may develop State priorities for cost sharing under the Program that will promote forest management objectives in that State.

      ‘(3) DEVELOPMENT OF PLAN- An owner shall be eligible for cost-share assistance for the development of the individual stewardship, forest, or stand management plan required by paragraph (1).

    ‘(d) APPROVED ACTIVITIES-

      ‘(1) DEVELOPMENT- The Secretary, in consultation with the State Forest Stewardship Coordinating Committee, shall develop a list of approved forest activities and practices that will be eligible for cost-share assistance under the Program within each State.

      ‘(2) TYPE OF ACTIVITIES- In developing a list of approved activities and practices under paragraph (1), the Secretary shall attempt to achieve the establishment, restoration, management, maintenance, and enhancement of forests and trees for the following:

        ‘(A) The sustainable growth and management of forests for timber production.

        ‘(B) The restoration, use, and enhancement of forest wetlands and riparian areas.

        ‘(C) The protection of water quality and watersheds through the application of State-developed forestry best management practices.

        ‘(D) Energy conservation and carbon sequestration purposes.

        ‘(E) Habitat for flora and fauna.

        ‘(F) The control, detection, and monitoring of invasive species on forestlands as well as preventing the spread and providing for the restoration of lands affected by invasive species.

        ‘(G) Hazardous fuels reduction and other management activities that reduce the risks and help restore, recover, and mitigate the damage to forests caused by fire.

        ‘(H) The development of forest or stand management plans.

        ‘(I) Other activities approved by the Secretary, in coordination with the State Forest Stewardship Coordinating Committee.

    ‘(e) COOPERATION- In implementing the Program, the Secretary shall cooperate with other Federal, State, and local natural resource management agencies, institutions of higher education, and the private sector.

    ‘(f) REIMBURSEMENT OF ELIGIBLE ACTIVITIES-

      ‘(1) IN GENERAL- The Secretary shall share the cost of implementing the approved activities that the Secretary determines are appropriate, in the case of an owner that has entered into an agreement to place nonindustrial private forest lands of the owner in the Program.

      ‘(2) RATE- The Secretary shall determine the appropriate reimbursement rate for cost-share payments under paragraph (1) and the schedule for making such payments.

      ‘(3) MAXIMUM- The Secretary shall not make cost-share payments under this subsection to an owner in an amount in excess of 75 percent of the total cost, or a lower percentage as determined by the State forester, to such owner for implementing the practices under an approved plan. The maximum payments to any one owner shall be determined by the Secretary.

      ‘(4) CONSULTATION- The Secretary shall make determinations under this subsection in consultation with the State forester.

    ‘(g) RECAPTURE-

      ‘(1) IN GENERAL- The Secretary shall establish and implement a mechanism to recapture payments made to an owner in the event that the owner fails to implement any approved activity specified in the individual stewardship, forest, or stand management plan for which such owner received cost-share payments.

      ‘(2) ADDITIONAL REMEDY- The remedy provided in paragraph (1) is in addition to any other remedy available to the Secretary.

    ‘(h) DISTRIBUTION- The Secretary shall distribute funds available for cost sharing under the Program among the States only after giving appropriate consideration to--

      ‘(1) the total acreage of nonindustrial private forest land in each State;

      ‘(2) the potential productivity of such land;

      ‘(3) the number of owners eligible for cost sharing in each State;

      ‘(4) the opportunities to enhance non-timber resources on such forest lands;

      ‘(5) the anticipated demand for timber and nontimber resources in each State;

      ‘(6) the need to improve forest health to minimize the damaging effects of catastrophic fire, insects, disease, or weather; and

      ‘(7) the need and demand for agroforestry practices in each State.

    ‘(i) DEFINITIONS- In this section:

      ‘(1) NONINDUSTRIAL PRIVATE FOREST LANDS- The term ‘nonindustrial private forest lands’ means rural lands, as determined by the Secretary, that--

        ‘(A) have existing tree cover or are suitable for growing trees; and

        ‘(B) are owned or controlled by any nonindustrial private individual, group, association, corporation, Indian tribe, or other private legal entity (other than a nonprofit private legal entity) so long as the individual, group, association, corporation, tribe, or entity has definitive decision-making authority over the lands, including through long-term leases and other land tenure systems, for a period of time long enough to ensure compliance with the Program.

      ‘(2) OWNER- The term ‘owner’ includes a private individual, group, association, corporation, Indian tribe, or other private legal entity (other than a nonprofit private legal entity) that has definitive decision-making authority over nonindustrial private

forest lands through a long-term lease or other land tenure systems.

      ‘(3) SECRETARY- The term ‘Secretary’ means the Secretary of Agriculture.

      ‘(4) STATE FORESTER- The term ‘State forester’ means the director or other head of a State Forestry Agency or equivalent State official.

    ‘(j) AVAILABILITY OF FUNDS- The Secretary shall use $150,000,000 of funds of the Commodity Credit Corporation to carry out the Program during the period beginning on October 1, 2001, and ending on September 30, 2011.’.

SEC. 803. RENEWABLE RESOURCES EXTENSION ACTIVITIES.

    (a) EXTENSION AND AUTHORIZATION INCREASE- Section 6 of the Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is amended--

      (1) by striking ‘$15,000,000’ and inserting ‘$30,000,000’; and

      (2) by striking ‘2002’ and inserting ‘2011’.

    (b) SUSTAINABLE FORESTRY OUTREACH INITIATIVE- The Renewable Resources Extension Act of 1978 is amended by inserting after section 5A (16 U.S.C. 1674a) the following new section:

‘SEC. 5B. SUSTAINABLE FORESTRY OUTREACH INITIATIVE.

    ‘The Secretary shall establish a program to be known as the ‘Sustainable Forestry Outreach Initiative’ for the purpose of educating landowners regarding the following:

      ‘(1) The value and benefits of practicing sustainable forestry.

      ‘(2) The importance of professional forestry advice in achieving their sustainable forestry objectives.

      ‘(3) The variety of public and private sector resources available to assist them in planning for and practicing sustainable forestry.’.

SEC. 804. ENHANCED COMMUNITY FIRE PROTECTION.

    (a) FINDINGS- Congress finds the following:

      (1) The severity and intensity of wildland fires has increased dramatically over the past few decades as a result of past fire and land management policies.

      (2) The record 2000 fire season is a prime example of what can be expected if action is not taken.

      (3) These wildfires threaten not only the nation’s forested resources, but the thousands of communities intermingled with the wildlands in the wildland-urban interface.

      (4) The National Fire Plan developed in response to the 2000 fire season is the proper, coordinated, and most effective means to address this wildfire issue.

      (5) Whereas adequate authorities exist to tackle the wildfire issues at the landscape level on Federal lands, there lacks strong authority to take action on most private lands where the largest threat to life and property lies.

      (6) There is a significant Federal interest in enhancing community protection from wildfire.

    (b) ENHANCED PROTECTION- The Cooperative Forestry Assistance Act of 1978 is amended by inserting after section 10 (16 U.S.C. 2106) the following new section:

‘SEC. 10A. ENHANCED COMMUNITY FIRE PROTECTION.

    ‘(a) COOPERATIVE MANAGEMENT RELATED TO WILDFIRE THREATS- The Secretary may cooperate with State foresters and equivalent State officials in the management of lands in the United States for the following purposes:

      ‘(1) Aid in wildfire prevention and control;

      ‘(2) Protect communities from wildfire threats;

      ‘(3) Enhance the growth and maintenance of trees and forests that promote overall forest health.

      ‘(4) Ensure the continued production of all forest resources, including timber, outdoor recreation opportunities, wildlife habitat, and clean water, through conservation of forest cover on watersheds, shelterbelts, and windbreaks.

    ‘(b) COMMUNITY AND PRIVATE LAND FIRE ASSISTANCE PROGRAM-

      ‘(1) ESTABLISHMENT; PURPOSE- The Secretary shall establish a Community and Private Land Fire Assistance program--

        ‘(A) to focus the Federal role in promoting optimal firefighting efficiency at the Federal, State, and local levels;

        ‘(B) to augment Federal projects that establish landscape level protection from wildfires;

        ‘(C) to expand outreach and education programs to homeowners and communities about fire prevention; and

        ‘(D) to establish defensible space around private landowners homes and property against wildfires.

      ‘(2) COMPONENTS- In coordination with existing authorities under this Act, the Secretary may undertake on both Federal and non-Federal lands--

        ‘(A) fuel hazard mitigation and prevention;

        ‘(B) invasive species management;

        ‘(C) multi-resource wildfire planning;

        ‘(D) community protection planning;

        ‘(E) community and landowner education enterprises, including the program known as FIREWISE;

        ‘(F) market development and expansion;

        ‘(G) improved wood utilization;

        ‘(H) special restoration projects.

      ‘(3) CONSIDERATIONS- The Secretary shall use local contract personnel wherever possible to carry out projects under the Program.

    ‘(c) AUTHORIZATION OF APPROPRIATIONS- There are hereby authorized to be appropriated to the Secretary $35,000,000 for each of fiscal years 2002 through 2011, and such sums as may be necessary thereafter, to carry out this section.’.

SEC. 805. INTERNATIONAL FORESTRY PROGRAM.

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

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

    (a) ANNUAL ASSESSMENT OF TREATMENT ACREAGE- Not later than March 1 of each of fiscal years 2002

through 2006, the Secretary concerned shall submit to Congress an assessment of the number of acres of forested Federal lands recommended to be treated during the next fiscal year using stewardship end result contracts authorized by subsection (c). The assessment shall be based on the treatment schedules contained in the report entitled ‘Protecting People and Sustaining Resources in Fire-Adapted Ecosystems’, dated October 13, 2000, and incorporated into the National Fire Plan. The assessment shall identify the acreage by condition class, type of treatment, and treatment year to achieve the restoration goals outlined in the report within 10-, 15-, and 20-year time periods. The assessment shall also include changes in the restoration goals based on the effects of fire, hazardous fuel treatments pursuant to the National Fire Plan, or updates in data.

    (b) FUNDING RECOMMENDATION- The Secretary concerned shall include in the annual assessment a request for funds sufficient to implement the recommendations contained in the assessment using stewardship end result contracts under subsection (c) when the Secretary concerned determines that the objectives of the National Fire Plan are best accomplished through forest stewardship end result contracting.

    (c) STEWARDSHIP END RESULT CONTRACTING-

      (1) AUTHORITY- Subject to the amount of funds made available pursuant to subsection (b), the Secretary concerned may enter into stewardship end result contracts to implement the National Fire Plan on Federal lands based upon the stewardship treatment schedules provided in the annual assessments under subsection (a). The contracting goals and authorities described in subsections (b) through (f) of section 347 of the Department of the Interior and Related Agencies Appropriations Act, 1999 (as contained in section 101(e) of division A of Public Law 105-277; 16 U.S.C. 2104 note; commonly known as the Stewardship End Result Contracting Demonstration Project) shall apply to contracts entered into under this subsection, except that the period of the contract shall be 10 years.

      (2) DURATION- The authority of the Secretary concerned to enter into contracts under this subsection expires September 30, 2007.

    (d) STATUS REPORT- Beginning with the assessment required under subsection (a) in 2003, the Secretary concerned shall include in the annual assessment a status report of the stewardship end result contracts entered into under the authority of this section.

    (e) DEFINITIONS- In this section:

    In this Act:

      (1) FEDERAL LANDS- The term ‘Federal lands’ means--

        (A) National Forest System lands;

        (B) public lands administered by the Secretary of the Interior, acting through the Bureau of Land Management; and

        (C) Indian lands.

      (2) INDIAN LANDS- The term ‘Indian lands’ means--

        (A) lands held in trust by the United States for the benefit of an Indian tribe;

        (B) lands held by an Indian tribe subject to restriction by the United States against alienation; and

        (C) lands held by an incorporated Alaska Native group, regional corporation, or village corporation under the provisions of the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.).

      (3) SECRETARY CONCERNED- The term ‘Secretary concerned’ means--

        (A) the Secretary of Agriculture or the designee of the Secretary of Agriculture with respect to the Federal lands described in paragraph (1)(A); and

        (B) the Secretary of the Interior or the designee of the Secretary of the Interior with respect to the Federal lands described in paragraphs (1)(B) and (1)(C).

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

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

TITLE IX--MISCELLANEOUS PROVISIONS

Subtitle A--Tree Assistance Program

SEC. 901. ELIGIBILITY.

    (a) LOSS- Subject to the limitation in subsection (b), the Secretary of Agriculture shall provide assistance, as specified in section 902, to eligible orchardists that planted trees for commercial purposes but lost such trees as a result of a natural disaster, as determined by the Secretary.

    (b) LIMITATION- An eligible orchardist shall qualify for assistance under subsection (a) only if such orchardist’s tree mortality, as a result of the natural disaster, exceeds 15 percent (adjusted for normal mortality).

SEC. 902. ASSISTANCE.

    The assistance provided by the Secretary of Agriculture to eligible orchardists for losses described in section 901 shall consist of either--

      (1) reimbursement of 75 percent of the cost of replanting trees lost due to a natural disaster, as determined by the Secretary, in excess of 15 percent mortality (adjusted for normal mortality); or

      (2) at the discretion of the Secretary, sufficient seedlings to reestablish the stand.

SEC. 903. LIMITATION ON ASSISTANCE.

    (a) LIMITATION- The total amount of payments that a person shall be entitled to receive under this subtitle may not exceed $50,000, or an equivalent value in tree seedlings.

    (b) REGULATIONS- The Secretary of Agriculture shall issue regulations--

      (1) defining the term ‘person’ for the purposes of this subtitle, which shall conform, to the extent practicable, to the regulations defining the term ‘person’ issued under section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) and the Disaster Assistance Act of 1988 (7 U.S.C. 1421 note); and

      (2) prescribing such rules as the Secretary determines necessary to ensure a fair and reasonable application of the limitation established under this section.

SEC. 904. DEFINITIONS.

    In this subtitle:

      (1) ELIGIBLE ORCHARDIST- The term ‘eligible orchardist’ means a person who produces annual crops from trees for commercial purposes and owns 500 acres or less of such trees.

      (2) NATURAL DISASTER- The term ‘natural disaster’ includes plant disease, insect infestation, drought, fire, freeze, flood, earthquake, and other occurrences, as determined by the Secretary.

      (3) TREE- The term ‘tree’ includes trees, bushes, and vines.

SEC. 905. DUPLICATIVE PAYMENTS.

    The Secretary of Agriculture shall establish guidelines to ensure that no person receives duplicative payments under this subtitle and the forestry incentives program, agricultural conservation program, or other Federal program.

Subtitle B--Other Matters

SEC. 911. HAZARDOUS FUEL REDUCTION GRANTS TO PREVENT WILDFIRE DISASTERS AND TRANSFORM HAZARDOUS FUELS TO ELECTRIC ENERGY, USEFUL HEAT, OR TRANSPORTATION FUELS.

    (a) FINDINGS- Congress finds the following:

      (1) The damages caused by wildfire disasters have been equivalent in magnitude to the damage resulting from the Northridge earthquake, Hurricane Andrew, and the recent flooding of the Mississippi River and the Red River.

      (2) More than 20,000 communities in the United States are at risk to wildfire and approximately 11,000 of these communities are located near Federal lands. More than 72,000,000 acres of National Forest System lands and 57,000,000 acres of lands managed by the Secretary of the Interior are at risk of catastrophic fire in the near future. The accumulation of heavy forest fuel loads continues to increase as a result of disease, insect infestations, and drought, further raising the risk of fire each year.

      (3) Modification of forest fuel load conditions through the removal of hazardous fuels will minimize catastrophic damage from wildfires, reducing the need for emergency funding to respond to wildfires and protecting lives, communities, watersheds, and wildlife habitat.

      (4) The hazardous fuels removed from forest lands represent an abundant renewable resource as well as a significant supply of biomass for biomass-to-energy facilities.

    (b) HAZARDOUS FUELS TO ENERGY GRANT PROGRAM- The Secretary concerned may make a grant to a person that operates a biomass-to-energy facility to offset the costs incurred to purchase hazardous fuels from forest lands for use by the facility in the production of electric energy, useful heat, or transportation fuels. The Secretary concerned shall select grant recipients on the basis of their planned purchases of hazardous fuels and the level of anticipated benefits to reduced wildfire risk.

    (c) GRANT AMOUNTS- A grant under this section shall be equal to at least $5 per ton of hazardous fuels delivered, but not to exceed $10 per ton of hazardous fuels delivered, based on the distance of the hazardous fuels from the biomass-to-energy facility.

    (d) MONITORING OF GRANT RECIPIENT ACTIVITIES- As a condition on a grant under this section, the grant recipient shall keep such records as the Secretary concerned may require to fully and correctly disclose the use of the grant funds and all transactions involved in the purchase of hazardous fuels derived from forest lands. Upon notice by a duly authorized representative of the Secretary concerned, the operator of a biomass-to-energy facility that purchases or uses the resulting hazardous fuels shall afford the representative reasonable access to the facility and an opportunity to examine the inventory and records of the facility.

    (e) MONITORING OF EFFECT OF TREATMENTS- The Secretary concerned shall monitor Federal lands from which hazardous fuels are removed and sold to a biomass-to-energy facility to determine and document the reduction in fire hazards on such lands.

    (f) DEFINITIONS- In this section:

      (1) BIOMASS-TO-ENERGY FACILITY- The term ‘biomass-to-energy facility’ means a facility that uses forest biomass as a raw material to produce electric energy, useful heat, or transportation fuels.

      (2) FOREST BIOMASS- The term ‘forest biomass’ means hazardous fuels and biomass accumulations from precommercial thinnings, slash, and brush on forest lands that do not satisfy the definition of hazardous fuels.

      (3) HAZARDOUS FUELS- The term ‘hazardous fuels’ means any unnaturally excessive accumulation of organic material, particularly in areas designated as condition class 2 or condition class 3 (as defined in the report entitled ‘Protecting People and Sustainable Resources in Fire-Adapted Ecosystems’, prepared by the Forest Service, and dated October 13, 2000), on forest lands that the Secretary concerned determines poses a substantial present or potential hazard to forest ecosystems, wildlife, human, community, or firefighter safety in the case of a wildfire, particularly a wildfire in a drought year.

      (4) SECRETARY CONCERNED- The term ‘Secretary concerned’ means--

        (A) the Secretary of Agriculture or the designee of the Secretary of Agriculture with respect to the National Forest System lands and private lands.

        (B) the Secretary of the Interior or the designee of the Secretary of the Interior with respect to Federal lands under the jurisdiction of the Secretary of the Interior and Indian lands.

    (g) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated $50,000,000 for each fiscal year to carry out this section.

SEC. 912. BIOENERGY PROGRAM.

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

SEC. 913. AVAILABILITY OF SECTION 32 FUNDS.

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

SEC. 914. SENIORS FARMERS’ MARKET NUTRITION PROGRAM.

    For each of the fiscal years 2002 through 2011, the Secretary of Agriculture shall use $15,000,000 of the funds available to the Commodity Credit Corporation to carry out and expand a seniors farmers’ market nutrition program. The purposes of the seniors farmers’ market nutrition program are--

      (1) to provide resources in the form of fresh, nutritious, unprepared, locally grown fruits, vegetables, and herbs from farmers’ markets, roadside stands and community supported agriculture programs to low-income seniors;

      (2) to increase the domestic consumption of agricultural commodities by expanding or aiding in the expansion of domestic farmers’ markets, roadside stands, and community supported agriculture programs; and

      (3) to develop or aid in the development of new and additional farmers’ markets, roadside stands, and community supported agriculture programs.

SEC. 915. FEDERAL MARKETING ORDER FOR CANE BERRIES.

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